0000046250FALSE00000462502025-01-292025-01-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 29, 2025
  
Hawkins, Inc.
(Exact name of registrant as specified in its charter)
 
Minnesota 0-7647 41-0771293
(State of Incorporation) (Commission File Number) (IRS Employer Identification No.)
2381 Rosegate,Roseville,Minnesota55113
(Address of Principal Executive Offices)(Zip Code)

Registrant’s Telephone Number, Including Area Code (612) 331-6910
  
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $.01 per share
HWKN
Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act (17 CFR 230.405) or Rule 12b-2 of the Exchange Act (17 CFR 240.12b 2).

Emerging growth company ¨
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨



Item 2.02. Results of Operations and Financial Condition.
On January 29, 2025, Hawkins, Inc. issued a press release announcing financial results for its fiscal 2025 third quarter ended December 29, 2024. A copy of the press release issued by the Registrant is furnished herewith as Exhibit 99.1 hereto and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.
(d)Exhibits.
Exhibit No.  Description  Method of Filing
  
Press Release, dated January 29, 2025, announcing financial results of Hawkins, Inc. for its fiscal 2025 third quarter ended December 29, 2024.
  Filed Electronically
104 Cover Page Interactive Data File (embedded within the inline XBRL document)Filed Electronically



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 HAWKINS, INC.
Date: January 29, 2025
 By: /s/ Jeffrey P. Oldenkamp
  Jeffrey P. Oldenkamp
  Executive Vice President and Chief Financial Officer



Exhibit 99.1
Hawkins, Inc. Reports
Third Quarter Fiscal 2025 Results

Roseville, Minn., January 29, 2025 – Hawkins, Inc. (Nasdaq: HWKN) today announced results for the nine months ended December 29, 2024, its third quarter of fiscal 2025.

Third Quarter Fiscal Year 2025 Highlights:

•Record third quarter results for revenue, gross profit, operating income, and adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“adjusted EBITDA”), a non-GAAP measure.
•Overall revenue growth of 8%, once again driven by the Water Treatment segment growth of 22% over the same period of the prior year.
•Gross profit growth of 15% over the same period of the prior year, with double-digit percentage growth for both the Water Treatment and Health and Nutrition segments.
•Third quarter operating income of $21.1 million, our 27th consecutive quarter of year-over-year operating income growth.
•Income before income taxes grew 12% over the same period of the prior year.
•Diluted earnings per share (“EPS”) of $0.72 compared to $0.71 in the prior year.
•Adjusted EBITDA, a non-GAAP measure, of $33.6 million, a 13% increase over the same period of the prior year. Trailing 12-month adjusted EBITDA was $162 million.
•Year to date, revenue was up 5% over the prior year and EPS was up 11%.

Executive Commentary – Patrick H. Hawkins, Chief Executive Officer and President:

“For each of the last four quarters, we have achieved record year-over-year performance for several of our key metrics. In the third quarter, our record performance was once again driven by the Water Treatment business, as we realized the benefits of the seven acquisitions we have completed over the last 18 months. Within the quarter we saw strong revenue growth of 22% in our Water Treatment business, with this growth driven by both revenue from our recent acquisitions as well as strong organic volume growth of 9%. Revenue in our Industrial segment declined year over year, as expected, due primarily to reduced selling prices driven by lower commodity costs and product mix, offset slightly by overall volumes being up. Health and Nutrition revenues increased due to growth of our manufactured product sales. Overall, we saw 8% revenue growth with gross profit increasing 15%, operating income increasing 14% and pretax income increasing 12%.”

Mr. Hawkins continued, “Our balance sheet continues to be strong. In the quarter, our net borrowings of $10 million helped fund our acquisition of Water Guard, our first water treatment site in North Carolina. Our leverage ratio was 0.7x trailing 12-month proforma adjusted EBITDA at the end of the quarter. As we close out our fiscal year, we expect continued growth within the Water Treatment and Health and Nutrition segments. We expect to see our Industrial segment continue to perform similar to the first nine months of fiscal 2025.”

Third Quarter Financial Highlights:

NET INCOME
For the third quarter of fiscal 2025, the Company reported net income of $15.0 million, or $0.72 per diluted share, compared to net income for the third quarter of fiscal 2024 of $14.9 million, or $0.71 per diluted share. The prior year EPS was positively impacted by $0.08 per share due to an unusual favorable tax adjustment.
REVENUE
Sales were $226.2 million for the third quarter of fiscal 2025, an increase of $17.7 million, or 8%, from sales of $208.5 million in the same period a year ago. Water Treatment segment sales increased $17.8 million, or 22%, to $99.8 million for the current quarter, from $82.0 million in the same period a year ago. Water Treatment sales increased as a result of added sales from our acquired businesses as well as increased sales volumes in our legacy business. Despite showing sequential improvement, Industrial segment sales decreased $1.0 million, or 1%, to $92.0 million for the current quarter, from $93.0 million in the same period a year ago. Sales decreased as a result of lower selling prices on certain products, driven by lower raw material costs and product mix changes. Health and Nutrition segment sales increased $1.0 million, or 3%, to $34.5 million for the current quarter, from $33.5 million in the same period a year ago. Health and Nutrition sales increased due to increased sales of our manufactured products.


GROSS PROFIT
Gross profit increased $6.2 million, or 15%, to $48.4 million, or 21% of sales, for the current quarter, from $42.2 million, or 20% of sales, in the same period a year ago. During the current quarter, the LIFO reserve decreased, and gross profit increased, by $0.8 million, primarily due to lower anticipated year-end prices on certain products. In the same quarter a year ago, the LIFO reserve decreased, and gross profit increased, by $2.5 million.
Gross profit for the Water Treatment segment increased $5.8 million, or 29%, to $26.0 million, or 26% of sales, for the current quarter, from $20.2 million, or 25% of sales, in the same period a year ago. During the current quarter, the LIFO reserve decreased, and gross profit increased, by $0.1 million. In the same quarter a year ago, the LIFO reserve decreased, and gross profit increased, by $0.4 million. Water Treatment segment gross profit increased as a result of increased sales, including the incremental sales from our acquired businesses.
Gross profit for the Industrial segment decreased $1.3 million, or 8%, to $15.2 million, or 17% of sales, for the current quarter, from $16.5 million, or 18% of sales, in the same period a year ago. During the current quarter, the LIFO reserve decreased, and gross profit increased, by $0.6 million. In the same quarter a year ago, the LIFO reserve decreased, and gross profit increased, by $2.1 million. Industrial segment gross profit decreased primarily as a result of product mix changes and the change in the LIFO reserve.
Gross profit for our Health and Nutrition segment increased $1.7 million, or 31%, to $7.2 million, or 21% of sales, for the current quarter, from $5.5 million, or 16% of sales, in the same period a year ago. Health and Nutrition segment gross profit increased as a result of the increased sales.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses increased $3.6 million, or 15%, to $27.4 million, or 12% of sales, for the current quarter, from $23.8 million, or 11% of sales, in the same period a year ago. Expenses increased primarily due to $1.9 million in added costs from the acquired businesses in our Water Treatment segment, including amortization of intangibles of $0.8 million, as well as other increased variable costs.
ADJUSTED EBITDA
Adjusted EBITDA, a non-GAAP financial measure, is an important performance indicator and a key compliance measure under the terms of our credit agreement. An explanation of the computation of adjusted EBITDA is presented below. Adjusted EBITDA for the three months ended December 29, 2024 was $33.6 million, an increase of $3.9 million, or 13%, from $29.7 million in the same period a year ago.
INCOME TAXES
Our effective income tax rate was 26% for the current quarter and 18% for the same period a year ago. The effective tax rate in the third quarter of both years was impacted by favorable tax provision adjustments recorded, with the prior year being unusually beneficial and the current year being more in line with expectations. The effective tax rate is impacted by projected levels of annual taxable income, permanent items, and state taxes. Our effective tax rate for the full year is currently expected to be approximately 26-27%.
BALANCE SHEET
At the end of the third quarter, our working capital was $27 million higher than the end of fiscal 2024 due primarily to seasonally lower liabilities as well as increased inventories. During the quarter, we paid down $10 million on our line of credit. Our total debt outstanding at the end of the third quarter was $114.0 million and our leverage ratio was 0.70x our trailing 12-month proforma adjusted EBITDA, as compared to 0.66x of trailing twelve-month adjusted EBITDA at the end of fiscal 2024.

About Hawkins, Inc.

Hawkins, Inc. was founded in 1938 and is a leading water treatment and specialty ingredients company that formulates, distributes, blends, and manufactures products for its Industrial, Water Treatment, and Health & Nutrition customers. Headquartered in Roseville, Minnesota, the Company has 61 facilities in 28 states and creates value for its customers through superb customer service and support, quality products and personalized applications. Hawkins, Inc. generated $919 million of revenue in fiscal 2024 and has approximately 1,000 employees. For more information, including registering to receive email alerts, please visit www.hawkinsinc.com/investors.




Reconciliation of Non-GAAP Financial Measures
We report our consolidated financial results in accordance with U.S. generally accepted accounting principles (GAAP). To assist investors in understanding our financial performance between periods, we have provided certain financial measures not computed according to GAAP, including adjusted EBITDA. This non-GAAP financial measure is not meant to be considered in isolation or as a substitute for comparable GAAP measures. The method we use to produce non-GAAP results is not computed according to GAAP and may differ from the methods used by other companies.
Management uses this non-GAAP financial measure internally to understand, manage and evaluate our business and to make operating decisions. Management believes that this non-GAAP financial measure reflects an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provides a more complete understanding of the factors and trends affecting our financial condition and results of operations.
We define adjusted EBITDA as GAAP net income adjusted for the impact of the following: net interest expense resulting from our net borrowing position; income tax expense; non-cash expenses including amortization of intangibles, depreciation and charges for the employee stock purchase plan and restricted stock grants; and non-recurring items of income or expense, if applicable.

Adjusted EBITDAThree Months EndedNine months endedTrailing 12-months ended
(In thousands)December 29, 2024December 31, 2023December 29, 2024December 31, 2023December 29, 2024
Net Income (GAAP)$15,021 $14,885 $68,018 $61,531 $81,851 
Interest expense, net1,216 1,168 3,906 3,033 5,155 
Income tax expense5,262 3,274 23,943 20,289 29,435 
Amortization of intangibles3,213 2,392 9,211 5,786 11,963 
Depreciation expense6,899 5,951 20,157 17,063 26,358 
Non-cash compensation expense1,723 1,287 5,022 3,506 6,396 
Non-recurring acquisition expenses 298 710 580 832 664 
Adjusted EBITDA$33,632 $29,667 $130,837 $112,040 $161,822 




 
HAWKINS, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except share and per-share data)
Three Months EndedNine Months Ended
December 29, 2024December 31, 2023December 29, 2024December 31, 2023
Sales$226,205 $208,496 $729,113 $696,142 
Cost of sales(177,781)(166,248)(555,812)(548,017)
Gross profit48,424 42,248 173,301 148,125 
Selling, general and administrative expenses(27,361)(23,774)(78,702)(64,173)
Operating income21,063 18,474 94,599 83,952 
Interest expense, net(1,216)(1,168)(3,906)(3,033)
Other income436 853 1,268 901 
Income before income taxes20,283 18,159 91,961 81,820 
Income tax expense(5,262)(3,274)(23,943)(20,289)
Net income$15,021 $14,885 $68,018 $61,531 
Weighted average number of shares outstanding - basic20,766,764 20,781,632 20,780,213 20,864,349 
Weighted average number of shares outstanding - diluted20,875,387 20,907,321 20,902,456 21,004,077 
Basic earnings per share$0.72 $0.72 $3.27 $2.95 
Diluted earnings per share$0.72 $0.71 $3.25 $2.93 
Cash dividends declared per common share$0.18 $0.16 $0.52 $0.47 
 





HAWKINS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except share data)
December 29,
2024		March 31,
2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$8,305 $7,153 
Trade accounts receivables, net111,521 114,477 
Inventories81,634 74,600 
Prepaid expenses and other current assets8,895 6,596 
Total current assets210,355 202,826 
PROPERTY, PLANT, AND EQUIPMENT:410,427 386,648 
Less accumulated depreciation189,984 177,774 
Net property, plant, and equipment220,443 208,874 
OTHER ASSETS:
Right-of-use assets13,096 11,713 
Goodwill116,738 103,399 
Intangible assets, net of accumulated amortization130,474 116,626 
Deferred compensation plan asset11,892 9,584 
Other4,242 4,912 
Total other assets276,442 246,234 
Total assets$707,240 $657,934 
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable — trade$39,891 $56,387 
Accrued payroll and employee benefits18,371 19,532 
Income tax payable— 1,943 
Current portion of long-term debt9,913 9,913 
Environmental remediation7,700 7,700 
Other current liabilities8,379 7,832 
Total current liabilities84,254 103,307 
LONG-TERM LIABILITIES:
Long-term debt, less current portion103,884 88,818 
Long-term lease liability10,613 9,530 
Pension withdrawal liability3,252 3,538 
Deferred income taxes22,120 22,406 
Deferred compensation liability13,413 11,764 
Earnout liability12,262 11,235 
Other long-term liabilities461 1,310 
Total long-term liabilities166,005 148,601 
Total liabilities250,259 251,908 
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Common stock; authorized: 60,000,000 shares of $0.01 par value; 20,766,764 and 20,790,261 shares issued and outstanding as of December 29, 2024 and March 31, 2024, respectively
208 208 
Additional paid-in capital32,783 38,154 
Retained earnings421,682 364,549 
Accumulated other comprehensive income2,308 3,115 
Total shareholders’ equity456,981 406,026 
Total liabilities and shareholders’ equity$707,240 $657,934 



HAWKINS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
 
 Nine Months Ended
 December 29,
2024		December 31,
2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$68,018 $61,531 
Reconciliation to cash flows:
Depreciation and amortization29,368 22,849 
Change in fair value of earnout liability1,027 — 
Operating leases2,557 1,884 
Gain on deferred compensation assets(1,268)(901)
Stock compensation expense5,022 3,506 
Other(4)70 
Changes in operating accounts providing (using) cash:
Trade receivables6,157 22,500 
Inventories(5,682)25,665 
Accounts payable(16,026)(14,334)
Accrued liabilities(1,698)(610)
Lease liabilities(2,565)(1,804)
Income taxes(2,636)(1,824)
Other(2,018)(922)
Net cash provided by operating activities80,252 117,610 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment(30,008)(28,248)
Acquisitions(43,400)(78,855)
Other 586 723 
Net cash used in investing activities(72,822)(106,380)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash dividends declared and paid(10,885)(9,886)
New shares issued1,297 2,243 
Payroll taxes paid in exchange for shares withheld(2,541)(2,140)
Shares repurchased(9,149)(11,272)
Payments on revolving loan(50,000)(67,000)
Proceeds from revolving loan borrowings65,000 75,000 
Net cash used in financing activities(6,278)(13,055)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS1,152 (1,825)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD7,153 7,566 
CASH AND CASH EQUIVALENTS, END OF PERIOD$8,305 $5,741 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for income taxes$26,566 $22,125 
Cash paid for interest$4,208 $3,252 
Noncash investing activities - capital expenditures in accounts payable$1,152 $2,887 



HAWKINS, INC.
REPORTABLE SEGMENTS (UNAUDITED)
(In thousands)

Water
Treatment		IndustrialHealth and NutritionTotal
Three months ended December 29, 2024:
Sales$99,752 $91,997 $34,456 $226,205 
Gross profit26,027 15,180 7,217 48,424 
Selling, general, and administrative expenses16,054 7,058 4,249 27,361 
Operating income9,973 8,122 2,968 21,063 
Three months ended December 31, 2023:
Sales$82,019 $92,990 $33,487 $208,496 
Gross profit20,241 16,495 5,512 42,248 
Selling, general, and administrative expenses12,470 7,292 4,012 23,774 
Operating income 7,771 9,203 1,500 18,474 
Nine months ended December 29, 2024:
Sales$341,456 $285,135 $102,522 $729,113 
Gross profit96,572 55,324 21,405 173,301 
Selling, general and administrative expenses45,732 20,649 12,321 78,702 
Operating income50,840 34,675 9,084 94,599 
Nine months ended December 31, 2023:
Sales$276,595 $312,398 $107,149 $696,142 
Gross profit75,957 53,645 18,523 148,125 
Selling, general and administrative expenses31,741 20,673 11,759 64,173 
Operating income 44,216 32,972 6,764 83,952 


Forward-Looking Statements. Various remarks in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include those relating to consumer demand for products containing our ingredients and the impacts of those demands, expectations for results in our business segments and the timing of our filings with the Securities and Exchange Commission. These statements are not historical facts, but rather are based on our current expectations, estimates and projections, and our beliefs and assumptions. Forward-looking statements may be identified by terms, including “anticipate,” “believe,” “can,” “could,” “expect,” “intend,” “may,” “predict,” “should,” or “will” or the negative of these terms or other comparable terms. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Actual results may vary materially from those contained in forward looking statements based on a number of factors, including, but not limited to, changes in competition and price pressures, changes in demand and customer requirements or processes for our products, availability of product and disruptions to supplies, interruptions in production resulting from hazards, transportation limitations or other extraordinary events outside our control that may negatively impact our business or the supply chains in which we participate, changes in imported products and tariff levels, the availability of products and the prices at which they are available, the acceptance of new products by our customers and the timing of any such acceptance, and changes in product supplies. Additional information concerning potential factors that could affect future financial results is included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024, as updated from time to time in amendments and subsequent reports filed with the SEC. Investors should take such risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on forward-looking statements, which reflect our management’s view only as of the date hereof. We do not undertake any obligation to update any forward-looking statements.

Contacts:    Jeffrey P. Oldenkamp
Executive Vice President and Chief Financial Officer
612/331-6910
ir@HawkinsInc.com


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Cover
Jan. 29, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jan. 29, 2025
Entity Registrant Name Hawkins, Inc.
Entity Incorporation, State or Country Code MN
Entity File Number 0-7647
Entity Tax Identification Number 41-0771293
Entity Address, Address Line One 2381 Rosegate,
Entity Address, City or Town Roseville,
Entity Address, State or Province MN
Entity Address, Postal Zip Code 55113
City Area Code 612
Local Phone Number 331-6910
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Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $.01 per share
Trading Symbol HWKN
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0000046250
Amendment Flag false
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