Tag Archives: Quarterly Results

Hawkins, Inc. reports Fourth Quarter and FY2020 Results

May 21, 2020 Guenther Eberhard Leave a comment

Hawkins with lower Sales but higher Adjusted EBITDA

United States chemical distributor Hawkins, Inc. (Roseville (Minneapolis), MN, United States) yesterday published results for Q4-FY2020 and Fiscal 2020. Sales for the three months ended on 31.3.2020 were USD 132.4 mn, virtaully flat when compared wth the same period in fiscal 2019 at USD 133.1. Adjusted EBITDA was USD 13.1 mn, an increase of 10.3% compared to the USD 11.9 mn realised in Q4-FY2019.

Sales for the full fiscal year 2020 were 540.2 mn, a decline of 2.9% when compared with the USD 556.3 mn realised in FY2019. Hawkins said the The decrease in sales was driven primarily by lower pricing due to lower costs of one of the major commodities, offset by increased volumes sold of certain manufactured, blended and re-packaged products. Sales in the Industrial segment were USD 275.2 mn, down USD 6.7 mn or 2.4%. Sales in Water Treatment increased USD 10.4 mn or 7% to USD 159.9 mn. Sales in Health and Nutrition decreased by USD 19.9 mn or 15.9% to USD 105.1mn

Gross Profit in FY2020 was USD 100.9 mn (equivalent to 18.7% of sales), an increase of USD 5.0 mn over the USD 95.9 mn or 17.2% of sales in FY2019. Adjusted EBITDA was USD 65.3 mn (12.9% of sales), which compares with USD 60.7 mn or 9.8% of sales achieved in FY2019.

Net Income was USD 28.4 mn or USD 2.66 per diluted share. This compares with a figures of USD 24.4 mn and USD 2.29 for fiscal 2019, respectively.

Hawkins said it has used USD 25 mn from the record operating cash flow of USD 58.9 mn for the full year to pay down debt. The company now has a debt level of USD 55.7 mn, resulting in a leverage ration below 1.0x.

Regarding COVID-19, the company notes that the “pandemic has created tremendous uncertainty in the economy. The financial impact … has been mixed, as sales to certain end-markets such as Food, Bottled Bleach and Health & Nutrition have benefited [certain] reporting segments, while decreased sales to other end-markets such as Ethanol, Pools & Resorts have negatively impacted them. As uncertainty continues with this pandemic, the company expects mixed results to continue for the foreseeable future.”

Source: Hawkins press releases

HGE – DCG / 21.05.2020

IMCD’s EBITA Growth continues in Q1-2020

April 24, 2020 Guenther Eberhard Leave a comment

Acquisitions contribute significantly to Revenue Growth at IMCD

Specialty Chemicals distributor IMCD N.V. (Rotterdam, The Netherlands) reported data for Q1-2020 earlier this week. Sales (or revenues as IMCD calls it) were EUR 748.8 mn, up 6% from EUR 704.8 mn in the same period of 2019 (+6% on a constant currency basis). IMCD said with 5%, the growth comes from mainly from the effect of acquisitions concluded in 2019 and Q1-2020, and 1% from organic growth.

Gross Profit increased by 12% to EUR 176.4 mn (+12% on a constant currency basis), equivalent to 23.6% of sales, up from 22.4% in Q1-2019. Operating EBITA increased by 11% to EUR 70.9 mn (+11% on a constant currency basis) . This represents a return on sales of 9.5% (compared to the 9.0% realised in Q1 of the previous year), and a conversion marging (= Operating EBITA as percentage of Gross Profit) of 40.2% (virtually uncahnged from 40.2% in Q1-2019).

The resulting in Cash Earnings per Share (i.e. before amortisation) were EUR 0.94 per share, an increase of 13% when compared with the result for Q1-2019 at EUR 0.83 per share. Free cash flow was EUR 33.3 mn, a decrease of 26%, from EUR 45.0 mn in Q1-2019. This also led to a small increase of reported debt by EUR 6.4 mn to a total of EUR 741.6 mn (compared to a total of EUR 735.2 mn at the end of 2019). The Net Debt / Operating EBITDA ratio at the ened of March remained constant at 2.8, when compered with 31. December 2019.

In view of the ongoing COVID-19 crisis and its unpredictability, with severity of the effects on global economy yet unknown, IMCD said it was unable to quantify the impact on the company’s results in the coming months and for the rest of the year 2020.

The original press release, which also provides a breakdown by geographic region (or Operating Segment in IMCD’s terminology) can be accessed via the link below: https://www.imcdgroup.com/sites/default/files/PRESS%20RELEASE_IMCD%20reports%2011%25%20EBITA%20growth%20in%20the%20first%20three%20months%20of%202020_1.pdf

Source: IMCD press release

HGE / DCG – 24.04.2020

Hawkins, Inc. reports Third Quarter FY2020 Results

February 14, 2020 Guenther Eberhard Leave a comment

Hawkins with lower Sales but higher Net Income

United States chemical distributor Hawkins, Inc. (Roseville (Minneapolis), MN, United States) last week published results for Q3-FY2020. Sales for the three months ended on 30.12.2019 were USD 120.4 mn, a decrease of 6% over the same period in fiscal 2019. Sales in the Industrial segment were USD 63.0 mn, down USD 6 mn or 9%. Sales in Water Treatment increased USD 2.2 mn or 7% to USD 34.9 mn. Sales in Health and Nutrition decreased by USD 3.9 mn or 15% to USD 22.5 mn

Gross Profit was USD 21.5 mn (equivalent to 18% of sales), an increase of USD 0.5 mn over the USD 21.0 mn or 16% of sales in the third quarter of the prior year. EBITDA was USD 13.0 mn (10.8% of sales), which compares with USD 12.5 mn or 9.7% of sales in the same period of FY2019.

Net Income was USD 4,6 mn or USD 0.43 per diluted share. This compares with a figures of USD 4.1 mn and USD 0.39 for the same period in fiscal 2019, respectively. Hawkins also said the company now has a debt level of USD 68 mn, resulting in a leverage ration below 1.1x.

At its recent meeting the Bord of Director of Hawkins declared a quarterly cash dividend of USD 0.2325 per share, payable on 06.03.2020 to shareholders of record at the close of business on 21.02.2020. Hawkins said this will be the 35th consecutive year of dividend payment, since its initial payout in 1985.

Source: Hawkins press releases

HGE – DCG / 14.02.2020

IMCD reports continued EBITA Growth in Q1-2019

May 8, 2019 Guenther Eberhard Leave a comment

Acquisitions contribute to strong Growth in Revenue, Gross Profit and Operating EBITA

Specialty Chemicals distributor IMCD N.V. (Rotterdam, The Netherlands) reported data for Q1-2019 this morning. Sales (or revenues as IMCD calls it) were EUR 704.8 mn, up 24% from EUR 566.3 mn in the same period of 2018 (+24% on a constant currency basis). IMCD says the growth comes from mainly from the effect of acquisitions with 20% and 4% from organic growth.

Gross Profit grew by 23% to EUR 157.9 mn (+22% on a constant currency basis), equivalent to 22.4% of sales. Operating EBITA increased by 28% to EUR 63.7 mn (+27% on a constant currency basis) . This represents a return on sales of 9.0%, up slightly from the 8.8% realised in Q1 of the previous year, and a conversion marging (= Operating EBITA as percentage of Gross Profit) of 40.4% (up from 38.9%).

The resulting in Cash Earnings per Share (i.e. before amortisation) were EUR 0.83 per share, an increase of 25% when compared with the result for Q1-2018 at EUR 0.67 per share. Free cash flow increased by 54%, from EUR 32.4 mn in Q1-2018 to EUR 48.9 mn. This includes a positive effect of EUR 4.9 mn resulting from the adoption of a new lease accounting standard under IFRS 16. This also led to an increase of reported debt by EUR 63 mn to a total of EUR 653 mn (compared to a total of EUR 611 mn at the end of 2018). The Net Debt / Operating EBITDA ratio remained constant at 2.8 when compered with 31. December 2018.

IMCD expects Operating EBITA growth for 2019, based on the performance in the first three month and the “strong fundamentals of the business”.

Driven by strong M&A activities, mainly in EMEA and the Americas, the (geographical) operating segments showed a mixed picture. EMEA (defined as Europe, Turkey and Africa) posted revenues of EUR 358.0 mn (up 13% as reported or 15% on a constant currency basis). Operating EBITA in the region grew from EUR 34.3 mn to EUR 36.5 mn, up 6% as reported and 8 % when adjusted for currency effects, as the acquisition of Velox in September with lower than IMCD’s average margins is being felt. Asia-Pacific generated revenues of EUR 96.0 mn (up from EUR 80.8 mn, or +19% as reported, +19% in constant currency). Operating EBITA in that region came in at EUR 8.9 mn, which compares with EUR 7.6 mn in Q1-2018, up 18% as reported and 18% when adjusted for currency effects. In the Americas the effect of the acquisition of E.T. Horn completed in July 2018 was significant. Revenues were EUR 250.8 mn, up from EUR 169.9 mn or +48% as reported (or +42% adjusted for currency effects) in Q1-2018. Operating EBITA was EUR 21.8 mn, up 76% from the EUR 12.4 mn in the previous year (a growth of 67% at constant currency).

Structural cost decreased, mainly due to the change in lease acoounting policies (see above), resulting in a Operating EBITA for the “holding companies” (i.e. the head office in Rotterdam and regional head offices in Sinagpore and New Jersey, United States of America) of EUR -3.05 mn (compared to EUR -4.7 mn in Q1-2018).

The original press release can be accessed via the link below: https://www.imcdgroup.com/media/news/imcd-reports-28-ebita-growth-first-three-months-2019