Hawkins(US:HWKN)2025-01-29 21:15Sales 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].