Core Insights - Hawkins, Inc. reported earnings of 72 cents per share for Q3 fiscal 2025, a slight increase from 71 cents in the same quarter last year, but below the Zacks Consensus Estimate of 78 cents [1] - The company achieved revenues of $226.2 million, representing an 8% year-over-year increase, and surpassed the Zacks Consensus Estimate of $219.2 million [2] Segment Performance - The Water Treatment segment saw a significant sales increase of 22% year over year, reaching $99.8 million, driven by acquisitions and higher sales volumes [3] - The Industrial segment experienced a 1% decline in sales to $92 million, impacted by lower selling prices and changes in product mix [4] - Sales in the Health and Nutrition segment rose by 3% year over year to $34.5 million, attributed to increased sales of manufactured products [4] Financial Overview - At the end of the quarter, Hawkins had cash and cash equivalents of approximately $8.3 million, a 10% increase sequentially, while long-term debt rose to about $103.9 million, an 11% increase from the previous quarter [5] - The company generated an operating cash flow of around $80.3 million for the nine months ending December 29, 2024 [5] Future Outlook - Hawkins anticipates continued growth in the Water Treatment and Health and Nutrition segments, while expecting the Industrial segment to perform similarly to the first nine months of fiscal 2025 [6] Stock Performance - Hawkins' shares have increased by 89.9% over the past year, contrasting with a 14.5% decline in the Zacks Chemicals Specialty industry [7]

Core Viewpoint - Hawkins has successfully acquired all assets of Amerochem, a rival water treatment chemicals and equipment company, leading to a 5.6% increase in its stock despite a market downturn [1]. Company Acquisition - The acquisition of Amerochem is seen as a strategic move, with Hawkins CEO highlighting the strong relationships Amerochem has built over 30 years with customers, suppliers, and employees, which Hawkins aims to maintain and expand [2]. - Details regarding the financial terms of the acquisition were not disclosed, leaving investors without specific information to assess the deal's value [3]. Market Expansion - Hawkins indicated that the acquisition will expand its market presence, particularly in North Carolina, although no specifics on market size or profitability were provided [3]. Investor Sentiment - Investors appear to be optimistic about the acquisition, trusting that Hawkins made a sound decision, although they lack detailed information [4]. - The stock is currently trading at over 27 times earnings, with analysts projecting a modest annual earnings growth of around 7% over the next five years [5]. Financial Health - Hawkins reported strong free cash flow of $80 million over the last 12 months, aligning with its earnings, and maintains a manageable debt level of less than $120 million against a market capitalization of $2.2 billion [5]. Overall Assessment - The company is viewed as a solid business, but its stock is considered overpriced given the lack of detailed information on the Amerochem acquisition [6].

Core Insights - Hawkins, Inc. has completed the acquisition of Amerochem Corporation, a distributor of water treatment chemicals and equipment primarily in North Carolina [1][2] - This acquisition marks Hawkins' second in North Carolina and expands its Water Treatment locations to 50 across the U.S. [2] - The CEO of Hawkins expressed confidence in maintaining and expanding relationships built by Amerochem over the past 30 years [2] Company Overview - Hawkins, Inc. was founded in 1938 and specializes in water treatment and specialty ingredients, providing products for Industrial, Water Treatment, and Health & Nutrition sectors [3] - The company is headquartered in Roseville, Minnesota, operates 62 facilities in 28 states, and generated $919 million in revenue for fiscal 2024 [3] - Hawkins employs approximately 1,000 people and focuses on delivering value through customer service, quality products, and personalized applications [3]

Core Viewpoint - Hawkins experienced a significant decline in stock price despite posting record third-quarter numbers, indicating a disconnect between market expectations and actual performance [1][2]. Financial Performance - Hawkins reported over $226 million in sales for the third quarter, an 8% increase compared to the same period in fiscal 2024 [2]. - GAAP net income increased by less than 1% to slightly more than $15 million, translating to $0.72 per share [2]. - Analyst estimates projected sales of nearly $233 million and earnings of $0.76 per share, which Hawkins did not meet [3]. Segment Performance - The sales growth was primarily driven by the water treatment segment, which saw a 22% improvement in revenue, contributing just under $100 million [4]. - The segment's growth was supported by seven acquisitions made in less than two years, alongside strong organic growth [4]. Management Perspective - The company did not provide guidance in its earnings release, leaving investors without future performance expectations [4]. - There is a positive outlook on the company's strategy to enhance the water treatment segment, which shows significant potential for further improvement [5].

分组1 - Hawkins reported quarterly earnings of $0.72 per share, missing the Zacks Consensus Estimate of $0.78 per share, representing an earnings surprise of -7.69% [1] - The company posted revenues of $226.21 million for the quarter, surpassing the Zacks Consensus Estimate by 3.19%, compared to year-ago revenues of $208.5 million [2] - Over the last four quarters, Hawkins has surpassed consensus revenue estimates three times, but only once for EPS estimates [2] 分组2 - The current consensus EPS estimate for the coming quarter is $0.81 on revenues of $229.6 million, and for the current fiscal year, it is $4.12 on revenues of $951.73 million [7] - The Zacks Industry Rank for Chemical - Specialty is currently in the bottom 14% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Hawkins shares have underperformed the market, losing about 5.1% since the beginning of the year, while the S&P 500 has gained 3.2% [3]

Sales Performance - Sales for the three months ended December 29, 2024, were $226.2 million, an increase of $17.7 million, or 8%, from $208.5 million in the same period a year ago[65]. - Sales for the nine months ended December 29, 2024, were $729.1 million, an increase of $33.0 million, or 5%, from $696.1 million in the same period a year ago[78]. - Water Treatment segment sales increased $17.8 million, or 22%, to $99.8 million for the three months ended December 29, 2024, from $82.0 million in the same period a year ago[66]. - Water Treatment segment sales for the nine months ended December 29, 2024, increased $64.9 million, or 23%, to $341.5 million from $276.6 million in the same period a year ago[79]. Profitability - Gross profit for the three months ended December 29, 2024, increased $6.2 million, or 15%, to $48.4 million, or 21% of sales, compared to $42.2 million, or 20% of sales, in the same period a year ago[69]. - Gross profit for the nine months ended December 29, 2024, increased $25.2 million, or 17%, to $173.3 million, or 24% of sales, compared to $148.1 million, or 21% of sales, in the same period a year ago[82]. - Operating income for the three months ended December 29, 2024, increased $2.6 million, or 14%, to $21.1 million, or 9% of sales, from $18.5 million, or 9% of sales, in the same period a year ago[74]. - Operating income rose by $10.6 million, or 13%, to $94.6 million, accounting for 13% of sales for the same period[87]. Expenses - Selling, general and administrative expenses increased $3.6 million, or 15%, to $27.4 million, or 12% of sales, for the three months ended December 29, 2024[73]. - SG&A expenses increased by $14.5 million, or 23%, to $78.7 million, representing 11% of sales for the nine months ended December 29, 2024[86]. Tax and Interest - The effective income tax rate was 26% for the three months ended December 29, 2024, compared to 18% for the same period a year ago[77]. - The effective income tax rate was 26% for the nine months ended December 29, 2024, compared to 25% in the same period a year ago[90]. - Interest expense increased to $3.9 million for the nine months ended December 29, 2024, compared to $3.0 million in the prior year[88]. Cash Flow and Investments - Cash provided by operating activities decreased to $80.3 million, down from $117.6 million in the same period a year ago[92]. - Cash used in investing activities was $72.8 million, including acquisition spending of $43.4 million and capital expenditures of $30.0 million[94]. - Cash used in financing activities was $6.3 million, with net debt borrowing of $15.0 million during the nine months ended December 29, 2024[95]. Acquisitions and Share Repurchase - The company completed acquisitions totaling approximately $105 million in annual revenue from seven businesses in fiscal 2024 and fiscal 2025[58]. - The company has authorized the repurchase of up to 2.6 million shares, with 105,541 shares repurchased for $9.1 million during the nine months ended December 29, 2024[97]. - The company plans to pursue acquisitions or strategic relationships to complement or expand its existing businesses[105]. Debt and Financing - The Revolving Loan Facility totals $250 million, with an effective interest rate of 4.2% as of December 29, 2024[99].

Core Insights - Hawkins, Inc. reported record year-over-year performance for several key metrics in the third quarter of fiscal 2025, driven primarily by the Water Treatment business and recent acquisitions [3][6][29] - The company achieved an overall revenue growth of 8%, with gross profit increasing by 15% and operating income rising by 14% compared to the same period last year [6][7][29] Financial Highlights - Net income for the third quarter was $15.0 million, or $0.72 per diluted share, compared to $14.9 million, or $0.71 per diluted share in the same quarter of fiscal 2024 [4][23] - Total sales reached $226.2 million, an increase of $17.7 million, or 8%, from $208.5 million in the prior year [5][21] - The Water Treatment segment saw sales increase by $17.8 million, or 22%, to $99.8 million, while the Industrial segment sales decreased by $1.0 million, or 1%, to $92.0 million [5][29] Segment Performance - Water Treatment segment gross profit increased by $5.8 million, or 29%, to $26.0 million, while the Industrial segment gross profit decreased by $1.3 million, or 8%, to $15.2 million [8][9][10] - Health and Nutrition segment sales increased by $1.0 million, or 3%, to $34.5 million, with gross profit rising by $1.7 million, or 31%, to $7.2 million [10][29] Operational Metrics - Selling, general and administrative expenses rose by $3.6 million, or 15%, to $27.4 million, primarily due to costs from acquired businesses [11][29] - Adjusted EBITDA for the quarter was $33.6 million, a 13% increase from $29.7 million in the same period last year [12][20] Balance Sheet and Cash Flow - At the end of the third quarter, total debt outstanding was $114.0 million, with a leverage ratio of 0.70x trailing 12-month proforma adjusted EBITDA [14][24] - The company paid down $10 million on its line of credit during the quarter, contributing to a strong balance sheet [3][14]

ROSEVILLE, Minn., Jan. 29, 2025 (GLOBE NEWSWIRE) --  The Board of Directors of Hawkins, Inc. (Nasdaq: HWKN), at its meeting on January 29, 2025, declared a quarterly cash dividend of $0.18 per share, payable February 28, 2025, to shareholders of record at the close of business on February 14, 2025. Hawkins has consistently paid out a dividend since 1985. About Hawkins, Inc. Hawkins, Inc. was founded in 1938 and is a leading water treatment and specialty ingredients company that formulates, distributes, ble ...

ROSEVILLE, Minn., Jan. 15, 2025 (GLOBE NEWSWIRE) -- Hawkins, Inc. (Nasdaq: HWKN) announced today that it expects to release financial results for its fiscal 2025 third quarter ended December 29, 2024 after the market closes on January 29, 2025 at approximately 4:10 p.m. Eastern Time. About Hawkins, Inc. Hawkins, Inc. was founded in 1938 and is a leading specialty chemical and ingredients company that formulates, distributes, blends, and manufactures products for its Industrial, Water Treatment, and Health ...

Investors in Hawkins, Inc. (HWKN) need to pay close attention to the stock based on moves in the options market lately. That is because the Dec. 20, 2024 $70 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean ...