Hawkins, Inc. Reports Third Quarter Fiscal 2020 Results

About this update from Hawkins, Inc.

[{"type":"text","content":"MINNEAPOLIS, Feb. 05, 2020 (GLOBE NEWSWIRE) -- Hawkins, Inc. (Nasdaq: HWKN) today announced results for the three and nine months ended December 29, 2019, its third quarter of fiscal 2020. Highlights include:\n Third quarter diluted earnings per share (EPS) of $0.43, an increase of $0.04, or 10%, over the third quarter of fiscal 2019.Seventh consecutive quarter of year-over-year growth in operating income, all of which was organic.EPS of $2.22 through the first nine months of fiscal 2020, an increase of $0.29, or 15%, over the first nine months of the prior fiscal year.Record year-to-date operating cash flow of $45.0 million, an improvement of $14.0 million over the prior fiscal year.Total debt of $68 million, ending the third quarter with a leverage ratio of under 1.1x. “We are very pleased with the continued organic improvement in EPS and operating cash flow, as well as the reduction of debt through the third quarter,” said Patrick Hawkins, Chief Executive Officer and President. “We paid down $17 million of debt so far this fiscal year, with net debt $23 million lower than a year ago. Gross profit improved in our Industrial and Water Treatment segments as we continue to benefit from increased sales of certain of our specialty products and favorable cost positions. We also continue making investments to grow these areas of our business, including the purchase of a new facility to expand our Water Treatment reach further east.” Mr. Hawkins continued, “As we said last quarter, we expected Health and Nutrition sales to be down in the second half of fiscal 2020, but not as much as in the first half of this fiscal year. Third quarter sales were down $3.9 million compared to a year ago, compared to a total decline of $13.3 million through the first two quarters. We continued to make progress, with improved margins and cost reductions resulting in operating income increasing 13% sequentially over the results from the second quarter.” For the third quarter of fiscal 2020, sales decreased 6% to $120.4 million from prior year sales of $128.2 million. Industrial segment sales were $63.0 million, a decrease of $6.0 million, or 9%, from the same period of the prior year. Sales dollars decreased from the prior year due to lower overall sales volumes, particularly of lower-priced bulk commodities driven by a weak ethanol industry, as well as ...

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