FORM 10-Q |
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE | ||||||||||
SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE | ||||||||||
SECURITIES EXCHANGE ACT OF 1934 |
HAWKINS, INC. | ||
(Exact name of registrant as specified in its charter) |
Minnesota | 41-0771293 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
2381 Rosegate, Roseville, Minnesota | 55113 | ||||
(Address of principal executive offices) | (Zip code) |
(612) 331-6910 | ||
(Registrant’s telephone number, including area code) |
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 |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||||||||||||||
Emerging growth company | ☐ |
CLASS | Shares Outstanding at July | |||||||
Common Stock, par value $.01 per share |
Page | |||||||||||
PART I. | |||||||||||
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
PART II. | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 5. | |||||||||||
Item 6. | |||||||||||
July 3, 2022 | April 3, 2022 | July 2, 2023 | April 2, 2023 | |||||||||||||||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||||||||||||||
CURRENT ASSETS: | CURRENT ASSETS: | CURRENT ASSETS: | ||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 5,995 | $ | 3,496 | Cash and cash equivalents | $ | 7,050 | $ | 7,566 | ||||||||||||||||||
Trade accounts receivables, net | Trade accounts receivables, net | 138,775 | 122,826 | Trade accounts receivables, net | 138,340 | 129,252 | ||||||||||||||||||||||
Inventories | Inventories | 104,988 | 94,985 | Inventories | 76,938 | 88,777 | ||||||||||||||||||||||
Prepaid expenses and other current assets | Prepaid expenses and other current assets | 3,864 | 6,431 | Prepaid expenses and other current assets | 4,127 | 6,449 | ||||||||||||||||||||||
Total current assets | Total current assets | 253,622 | 227,738 | Total current assets | 226,455 | 232,044 | ||||||||||||||||||||||
PROPERTY, PLANT, AND EQUIPMENT: | PROPERTY, PLANT, AND EQUIPMENT: | 313,186 | 304,055 | PROPERTY, PLANT, AND EQUIPMENT: | 354,001 | 344,753 | ||||||||||||||||||||||
Less accumulated depreciation | Less accumulated depreciation | 146,739 | 142,209 | Less accumulated depreciation | 163,379 | 158,950 | ||||||||||||||||||||||
Net property, plant, and equipment | Net property, plant, and equipment | 166,447 | 161,846 | Net property, plant, and equipment | 190,622 | 185,803 | ||||||||||||||||||||||
OTHER ASSETS: | OTHER ASSETS: | OTHER ASSETS: | ||||||||||||||||||||||||||
Right-of-use assets | Right-of-use assets | 9,976 | 10,606 | Right-of-use assets | 11,324 | 10,199 | ||||||||||||||||||||||
Goodwill | Goodwill | 77,401 | 77,401 | Goodwill | 77,401 | 77,401 | ||||||||||||||||||||||
Intangible assets, net of accumulated amortization | Intangible assets, net of accumulated amortization | 78,435 | 80,193 | Intangible assets, net of accumulated amortization | 71,391 | 73,060 | ||||||||||||||||||||||
Deferred compensation plan asset | Deferred compensation plan asset | 7,285 | 6,783 | Deferred compensation plan asset | 9,130 | 7,367 | ||||||||||||||||||||||
Other | Other | 3,238 | 2,761 | Other | 5,640 | 4,661 | ||||||||||||||||||||||
Total other assets | Total other assets | 176,335 | 177,744 | Total other assets | 174,886 | 172,688 | ||||||||||||||||||||||
Total assets | Total assets | $ | 596,404 | $ | 567,328 | Total assets | $ | 591,963 | $ | 590,535 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | LIABILITIES AND SHAREHOLDERS’ EQUITY | LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||
CURRENT LIABILITIES: | CURRENT LIABILITIES: | CURRENT LIABILITIES: | ||||||||||||||||||||||||||
Accounts payable — trade | Accounts payable — trade | $ | 56,376 | $ | 66,693 | Accounts payable — trade | $ | 55,598 | $ | 53,705 | ||||||||||||||||||
Accrued payroll and employee benefits | Accrued payroll and employee benefits | 9,658 | 19,034 | Accrued payroll and employee benefits | 10,690 | 17,279 | ||||||||||||||||||||||
Income tax payable | Income tax payable | 6,684 | 39 | Income tax payable | 11,584 | 3,329 | ||||||||||||||||||||||
Current portion of long-term debt | Current portion of long-term debt | 9,913 | 9,913 | Current portion of long-term debt | 9,913 | 9,913 | ||||||||||||||||||||||
Short-term lease liability | 1,456 | 1,657 | ||||||||||||||||||||||||||
Container deposits | 1,557 | 1,558 | ||||||||||||||||||||||||||
Other current liabilities | Other current liabilities | 2,519 | 2,572 | Other current liabilities | 6,518 | 6,645 | ||||||||||||||||||||||
Total current liabilities | Total current liabilities | 88,163 | 101,466 | Total current liabilities | 94,303 | 90,871 | ||||||||||||||||||||||
LONG-TERM DEBT, LESS CURRENT PORTION | LONG-TERM DEBT, LESS CURRENT PORTION | 149,166 | 115,644 | LONG-TERM DEBT, LESS CURRENT PORTION | 78,353 | 101,731 | ||||||||||||||||||||||
LONG-TERM LEASE LIABILITY | LONG-TERM LEASE LIABILITY | 8,665 | 9,143 | LONG-TERM LEASE LIABILITY | 9,597 | 8,687 | ||||||||||||||||||||||
PENSION WITHDRAWAL LIABILITY | PENSION WITHDRAWAL LIABILITY | 4,186 | 4,276 | PENSION WITHDRAWAL LIABILITY | 3,819 | 3,912 | ||||||||||||||||||||||
DEFERRED INCOME TAXES | DEFERRED INCOME TAXES | 23,594 | 23,422 | DEFERRED INCOME TAXES | 24,077 | 23,800 | ||||||||||||||||||||||
DEFERRED COMPENSATION LIABILITY | DEFERRED COMPENSATION LIABILITY | 8,082 | 8,402 | DEFERRED COMPENSATION LIABILITY | 10,117 | 9,343 | ||||||||||||||||||||||
OTHER LONG-TERM LIABILITIES | OTHER LONG-TERM LIABILITIES | 1,271 | 2,374 | OTHER LONG-TERM LIABILITIES | 696 | 2,175 | ||||||||||||||||||||||
Total liabilities | Total liabilities | 283,127 | 264,727 | Total liabilities | 220,962 | 240,519 | ||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES | 0 | 0 | COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||||||
SHAREHOLDERS’ EQUITY: | SHAREHOLDERS’ EQUITY: | SHAREHOLDERS’ EQUITY: | ||||||||||||||||||||||||||
Common stock; authorized: 60,000,000 shares of $0.01 par value; 20,807,338 and 20,889,777 shares issued and outstanding as of July 3, 2022 and April 3, 2022, respectively | 208 | 209 | ||||||||||||||||||||||||||
Common stock; authorized: 60,000,000 shares of $0.01 par value; 20,942,857 and 20,850,454 shares issued and outstanding as of July 2, 2023 and April 2, 2023, respectively | Common stock; authorized: 60,000,000 shares of $0.01 par value; 20,942,857 and 20,850,454 shares issued and outstanding as of July 2, 2023 and April 2, 2023, respectively | 209 | 209 | |||||||||||||||||||||||||
Additional paid-in capital | Additional paid-in capital | 40,192 | 46,717 | Additional paid-in capital | 44,409 | 44,443 | ||||||||||||||||||||||
Retained earnings | Retained earnings | 271,121 | 254,384 | Retained earnings | 322,694 | 302,424 | ||||||||||||||||||||||
Accumulated other comprehensive income | Accumulated other comprehensive income | 1,756 | 1,291 | Accumulated other comprehensive income | 3,689 | 2,940 | ||||||||||||||||||||||
Total shareholders’ equity | Total shareholders’ equity | 313,277 | 302,601 | Total shareholders’ equity | 371,001 | 350,016 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | Total liabilities and shareholders’ equity | $ | 596,404 | $ | 567,328 | Total liabilities and shareholders’ equity | $ | 591,963 | $ | 590,535 |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 3, 2022 | June 27, 2021 | July 2, 2023 | July 3, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
Sales | Sales | $ | 246,543 | $ | 181,241 | Sales | $ | 251,120 | $ | 246,543 | ||||||||||||||||||||||||||||||||||||||||||
Cost of sales | Cost of sales | (199,794) | (142,267) | Cost of sales | (199,129) | (199,794) | ||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | Gross profit | 46,749 | 38,974 | Gross profit | 51,991 | 46,749 | ||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | Selling, general and administrative expenses | (18,885) | (16,856) | Selling, general and administrative expenses | (19,504) | (18,885) | ||||||||||||||||||||||||||||||||||||||||||||||
Operating income | Operating income | 27,864 | 22,118 | Operating income | 32,487 | 27,864 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | Interest expense, net | (929) | (349) | Interest expense, net | (1,148) | (929) | ||||||||||||||||||||||||||||||||||||||||||||||
Other (expense) income | (763) | 232 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense) | Other income (expense) | 337 | (763) | |||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 26,172 | 22,001 | Income before income taxes | 31,676 | 26,172 | ||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | (6,477) | (5,373) | Income tax expense | (8,246) | (6,477) | ||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 19,695 | $ | 16,628 | Net income | $ | 23,430 | $ | 19,695 | ||||||||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding - basic | Weighted average number of shares outstanding - basic | 20,908,823 | 21,034,302 | Weighted average number of shares outstanding - basic | 20,907,724 | 20,908,823 | ||||||||||||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding - diluted | Weighted average number of shares outstanding - diluted | 21,033,549 | 21,178,320 | Weighted average number of shares outstanding - diluted | 21,012,788 | 21,033,549 | ||||||||||||||||||||||||||||||||||||||||||||||
Basic earnings per share | Basic earnings per share | $ | 0.94 | $ | 0.79 | Basic earnings per share | $ | 1.12 | $ | 0.94 | ||||||||||||||||||||||||||||||||||||||||||
Diluted earnings per share | Diluted earnings per share | $ | 0.94 | $ | 0.79 | Diluted earnings per share | $ | 1.12 | $ | 0.94 | ||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared per common share | Cash dividends declared per common share | $ | 0.1400 | $ | 0.1225 | Cash dividends declared per common share | $ | 0.15 | $ | 0.14 |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 3, 2022 | June 27, 2021 | July 2, 2023 | July 3, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 19,695 | $ | 16,628 | Net income | $ | 23,430 | $ | 19,695 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax: | Other comprehensive income, net of tax: | Other comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on interest rate swap | Unrealized gain on interest rate swap | 465 | — | Unrealized gain on interest rate swap | 749 | 465 | ||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | Total comprehensive income | $ | 20,160 | $ | 16,628 | Total comprehensive income | $ | 24,179 | $ | 20,160 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE — April 2, 2023 | BALANCE — April 2, 2023 | 20,850,454 | $ | 209 | $ | 44,443 | $ | 302,424 | $ | 2,940 | $ | 350,016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared and paid ($0.15 per share) | Cash dividends declared and paid ($0.15 per share) | — | — | — | (3,160) | — | (3,160) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | Share-based compensation expense | — | — | 959 | — | — | 959 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock | Vesting of restricted stock | 105,600 | 1 | (1) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares surrendered for payroll taxes | Shares surrendered for payroll taxes | (48,478) | (1) | (2,139) | — | — | (2,140) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESPP shares issued | ESPP shares issued | 35,281 | — | 1,147 | — | — | 1,147 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | Other comprehensive income, net of tax | — | — | — | — | 749 | 749 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 23,430 | — | 23,430 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE — July 2, 2023 | BALANCE — July 2, 2023 | 20,942,857 | $ | 209 | $ | 44,409 | $ | 322,694 | $ | 3,689 | $ | 371,001 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE — April 3, 2022 | BALANCE — April 3, 2022 | 20,889,777 | $ | 209 | $ | 46,717 | $ | 254,384 | $ | 1,291 | $ | 302,601 | BALANCE — April 3, 2022 | 20,889,777 | $ | 209 | $ | 46,717 | $ | 254,384 | $ | 1,291 | $ | 302,601 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared and paid ($0.14 per share) | Cash dividends declared and paid ($0.14 per share) | — | — | — | (2,958) | — | (2,958) | Cash dividends declared and paid ($0.14 per share) | — | — | — | (2,958) | — | (2,958) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | Share-based compensation expense | — | — | 595 | — | — | 595 | Share-based compensation expense | — | — | 595 | — | — | 595 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock | Vesting of restricted stock | 102,860 | 1 | (1) | — | — | — | Vesting of restricted stock | 102,860 | 1 | (1) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares surrendered for payroll taxes | Shares surrendered for payroll taxes | (36,410) | — | (1,550) | — | — | (1,550) | Shares surrendered for payroll taxes | (36,410) | — | (1,550) | — | — | (1,550) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ESPP shares issued | ESPP shares issued | 32,768 | — | 986 | — | — | 986 | ESPP shares issued | 32,768 | — | 986 | — | — | 986 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares repurchased | Shares repurchased | (181,657) | (2) | (6,555) | — | — | (6,557) | Shares repurchased | (181,657) | (2) | (6,555) | — | — | (6,557) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | Other comprehensive income, net of tax | — | — | — | — | 465 | 465 | Other comprehensive income, net of tax | — | — | — | — | 465 | 465 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 19,695 | — | 19,695 | Net income | — | — | — | 19,695 | — | 19,695 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE — July 3, 2022 | BALANCE — July 3, 2022 | 20,807,338 | $ | 208 | $ | 40,192 | $ | 271,121 | $ | 1,756 | $ | 313,277 | BALANCE — July 3, 2022 | 20,807,338 | $ | 208 | $ | 40,192 | $ | 271,121 | $ | 1,756 | $ | 313,277 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE — March 28, 2021 | 20,969,746 | $ | 210 | $ | 51,138 | $ | 213,898 | $ | — | $ | 265,246 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared and paid ($0.1225 per share) | — | — | — | (2,600) | — | (2,600) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | 799 | — | — | 799 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock | 123,002 | 1 | (1) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares surrendered for payroll taxes | (45,390) | — | (1,467) | — | — | (1,467) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares repurchased | (100,954) | (1) | (3,400) | — | — | (3,401) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | 16,628 | — | 16,628 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE — June 27, 2021 | 20,946,404 | $ | 210 | $ | 47,069 | $ | 227,926 | $ | — | $ | 275,205 |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||
July 3, 2022 | June 27, 2021 | July 2, 2023 | July 3, 2022 | |||||||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | CASH FLOWS FROM OPERATING ACTIVITIES: | CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||||||||||||
Net income | Net income | $ | 19,695 | $ | 16,628 | Net income | $ | 23,430 | $ | 19,695 | ||||||||||||||||||
Reconciliation to cash flows: | Reconciliation to cash flows: | Reconciliation to cash flows: | ||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 6,558 | 5,935 | Depreciation and amortization | 7,107 | 6,558 | ||||||||||||||||||||||
Operating leases | Operating leases | 476 | 481 | Operating leases | 534 | 476 | ||||||||||||||||||||||
Loss (Gain) on deferred compensation assets | 763 | (232) | ||||||||||||||||||||||||||
(Gain) loss on deferred compensation assets | (Gain) loss on deferred compensation assets | (337) | 763 | |||||||||||||||||||||||||
Stock compensation expense | Stock compensation expense | 595 | 799 | Stock compensation expense | 959 | 595 | ||||||||||||||||||||||
Other | Other | 273 | 67 | Other | 26 | 273 | ||||||||||||||||||||||
Changes in operating accounts providing (using) cash: | Changes in operating accounts providing (using) cash: | Changes in operating accounts providing (using) cash: | ||||||||||||||||||||||||||
Trade receivables | Trade receivables | (15,857) | (316) | Trade receivables | (9,055) | (15,857) | ||||||||||||||||||||||
Inventories | Inventories | (10,003) | (4,079) | Inventories | 11,839 | (10,003) | ||||||||||||||||||||||
Accounts payable | Accounts payable | (8,442) | 868 | Accounts payable | (537) | (8,442) | ||||||||||||||||||||||
Accrued liabilities | Accrued liabilities | (11,043) | (10,159) | Accrued liabilities | (9,075) | (11,043) | ||||||||||||||||||||||
Lease liabilities | Lease liabilities | (521) | (572) | Lease liabilities | (580) | (521) | ||||||||||||||||||||||
Income taxes | Income taxes | 6,645 | 5,393 | Income taxes | 8,255 | 6,645 | ||||||||||||||||||||||
Other | Other | 1,466 | 8 | Other | 2,300 | 1,466 | ||||||||||||||||||||||
Net cash (used in) provided by operating activities | (9,395) | 14,821 | ||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | Net cash provided by (used in) operating activities | 34,866 | (9,395) | |||||||||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | CASH FLOWS FROM INVESTING ACTIVITIES: | CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||||||||
Purchases of property, plant, and equipment | Purchases of property, plant, and equipment | (11,640) | (2,155) | Purchases of property, plant, and equipment | (7,873) | (11,640) | ||||||||||||||||||||||
Other | Other | 113 | 26 | Other | 44 | 113 | ||||||||||||||||||||||
Net cash used in investing activities | Net cash used in investing activities | (11,527) | (2,129) | Net cash used in investing activities | (7,829) | (11,527) | ||||||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | CASH FLOWS FROM FINANCING ACTIVITIES: | CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||||||||
Cash dividends declared and paid | Cash dividends declared and paid | (2,958) | (2,600) | Cash dividends declared and paid | (3,160) | (2,958) | ||||||||||||||||||||||
New shares issued | New shares issued | 986 | — | New shares issued | 1,147 | 986 | ||||||||||||||||||||||
Payroll taxes paid in exchange for shares withheld | Payroll taxes paid in exchange for shares withheld | (1,550) | (1,467) | Payroll taxes paid in exchange for shares withheld | (2,140) | (1,550) | ||||||||||||||||||||||
Shares repurchased | Shares repurchased | (6,557) | (3,401) | Shares repurchased | — | (6,557) | ||||||||||||||||||||||
Payments on revolving loan | Payments on revolving loan | (6,500) | (3,000) | Payments on revolving loan | (23,400) | (6,500) | ||||||||||||||||||||||
Proceeds from revolving loan borrowings | Proceeds from revolving loan borrowings | 40,000 | — | Proceeds from revolving loan borrowings | — | 40,000 | ||||||||||||||||||||||
Net cash provided by (used in) financing activities | 23,421 | (10,468) | ||||||||||||||||||||||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 2,499 | 2,224 | ||||||||||||||||||||||||||
Net cash (used in) provided by financing activities | Net cash (used in) provided by financing activities | (27,553) | 23,421 | |||||||||||||||||||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (516) | 2,499 | |||||||||||||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 3,496 | 2,998 | CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 7,566 | 3,496 | ||||||||||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 5,995 | $ | 5,222 | CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 7,050 | $ | 5,995 | ||||||||||||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||||||||||||||||||||
Cash paid for interest | Cash paid for interest | $ | 721 | $ | 292 | Cash paid for interest | $ | 1,221 | $ | 721 | ||||||||||||||||||
Noncash investing activities - capital expenditures in accounts payable | Noncash investing activities - capital expenditures in accounts payable | $ | 1,858 | $ | 497 | Noncash investing activities - capital expenditures in accounts payable | $ | 4,771 | $ | 1,858 |
Three months ended July 3, 2022 | Three months ended July 2, 2023 | |||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | Industrial | Water Treatment | Health and Nutrition | Total | (In thousands) | Industrial | Water Treatment | Health and Nutrition | Total | ||||||||||||||||||||||||||||||||||||
Manufactured, blended or repackaged products (1) | Manufactured, blended or repackaged products (1) | $ | 101,612 | $ | 70,357 | $ | 11,961 | $ | 183,930 | Manufactured, blended or repackaged products (1) | $ | 102,675 | $ | 84,785 | $ | 10,241 | $ | 197,701 | ||||||||||||||||||||||||||||
Distributed specialty products (2) | Distributed specialty products (2) | — | — | 31,089 | 31,089 | Distributed specialty products (2) | — | — | 26,154 | 26,154 | ||||||||||||||||||||||||||||||||||||
Bulk products (3) | Bulk products (3) | 20,455 | 6,790 | — | 27,245 | Bulk products (3) | 15,210 | 7,521 | — | 22,731 | ||||||||||||||||||||||||||||||||||||
Other | Other | 2,643 | 1,343 | 293 | 4,279 | Other | 2,988 | 1,345 | 201 | 4,534 | ||||||||||||||||||||||||||||||||||||
Total external customer sales | Total external customer sales | $ | 124,710 | $ | 78,490 | $ | 43,343 | $ | 246,543 | Total external customer sales | $ | 120,873 | $ | 93,651 | $ | 36,596 | $ | 251,120 | ||||||||||||||||||||||||||||
Three months ended June 27, 2021 | Three months ended July 3, 2022 | |||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | Industrial | Water Treatment | Health and Nutrition | Total | (In thousands) | Industrial | Water Treatment | Health and Nutrition | Total | ||||||||||||||||||||||||||||||||||||
Manufactured, blended or repackaged products (1) | Manufactured, blended or repackaged products (1) | $ | 72,566 | $ | 51,228 | $ | 8,051 | $ | 131,845 | Manufactured, blended or repackaged products (1) | $ | 101,612 | $ | 70,357 | $ | 11,961 | $ | 183,930 | ||||||||||||||||||||||||||||
Distributed specialty products (2) | Distributed specialty products (2) | — | — | 30,942 | 30,942 | Distributed specialty products (2) | — | — | 31,089 | 31,089 | ||||||||||||||||||||||||||||||||||||
Bulk products (3) | Bulk products (3) | 11,843 | 4,553 | — | 16,396 | Bulk products (3) | 20,455 | 6,790 | — | 27,245 | ||||||||||||||||||||||||||||||||||||
Other | Other | 1,441 | 457 | 160 | 2,058 | Other | 2,643 | 1,343 | 293 | 4,279 | ||||||||||||||||||||||||||||||||||||
Total external customer sales | Total external customer sales | $ | 85,850 | $ | 56,238 | $ | 39,153 | $ | 181,241 | Total external customer sales | $ | 124,710 | $ | 78,490 | $ | 43,343 | $ | 246,543 |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 03, 2022 | June 27, 2021 | July 02, 2023 | July 03, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average common shares outstanding—basic | Weighted-average common shares outstanding—basic | 20,908,823 | 21,034,302 | Weighted-average common shares outstanding—basic | 20,907,724 | 20,908,823 | ||||||||||||||||||||||||||||||||||||||||||||||
Dilutive impact of performance units and restricted stock | Dilutive impact of performance units and restricted stock | 124,726 | 144,018 | Dilutive impact of performance units and restricted stock | 105,064 | 124,726 | ||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average common shares outstanding—diluted | Weighted-average common shares outstanding—diluted | 21,033,549 | 21,178,320 | Weighted-average common shares outstanding—diluted | 21,012,788 | 21,033,549 |
(In thousands) | July 3, 2022 | April 3, 2022 | ||||||||||||||||||
Assets | ||||||||||||||||||||
Deferred compensation plan assets | Level 1 | $ | 7,632 | $ | 7,038 | |||||||||||||||
Interest rate swap | Level 2 | $ | 2,406 | $ | 1,769 | |||||||||||||||
(In thousands) | July 2, 2023 | April 2, 2023 | ||||||||||||||||||
Assets | ||||||||||||||||||||
Deferred compensation plan assets | Level 1 | $ | 9,454 | $ | 7,659 | |||||||||||||||
Interest rate swap | Level 2 | $ | 5,053 | $ | 4,028 | |||||||||||||||
July 3, 2022 | April 3, 2022 | July 2, 2023 | April 2, 2023 | |||||||||||||||||||||||||
(In thousands) | (In thousands) | (In thousands) | ||||||||||||||||||||||||||
Inventory (FIFO basis) | Inventory (FIFO basis) | $ | 130,107 | $ | 116,325 | Inventory (FIFO basis) | $ | 116,501 | $ | 128,589 | ||||||||||||||||||
LIFO reserve | LIFO reserve | (25,119) | (21,340) | LIFO reserve | (39,563) | (39,812) | ||||||||||||||||||||||
Net inventory | Net inventory | $ | 104,988 | $ | 94,985 | Net inventory | $ | 76,938 | $ | 88,777 |
July 3, 2022 | April 3, 2022 | July 2, 2023 | April 2, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | Gross Amount | Accumulated Amortization | Net | Gross Amount | Accumulated Amortization | Net | (In thousands) | Gross Amount | Accumulated Amortization | Net | Gross Amount | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finite-life intangible assets | Finite-life intangible assets | Finite-life intangible assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer relationships | Customer relationships | $ | 109,644 | $ | (33,976) | $ | 75,668 | $ | 109,644 | $ | (32,399) | $ | 77,245 | Customer relationships | $ | 109,107 | $ | (39,946) | $ | 69,161 | $ | 109,107 | $ | (38,377) | $ | 70,730 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Trademarks and trade names | Trademarks and trade names | 6,370 | (4,886) | 1,484 | 6,370 | (4,746) | 1,624 | Trademarks and trade names | 6,370 | (5,367) | 1,003 | 6,370 | (5,267) | 1,103 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other finite-life intangible assets | 3,904 | (3,848) | 56 | 3,904 | (3,807) | 97 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total finite-life intangible assets | Total finite-life intangible assets | 119,918 | (42,710) | 77,208 | 119,918 | (40,952) | 78,966 | Total finite-life intangible assets | 115,477 | (45,313) | 70,164 | 115,477 | (43,644) | 71,833 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indefinite-life intangible assets | Indefinite-life intangible assets | 1,227 | — | 1,227 | 1,227 | — | 1,227 | Indefinite-life intangible assets | 1,227 | — | 1,227 | 1,227 | — | 1,227 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total intangible assets | Total intangible assets | $ | 121,145 | $ | (42,710) | $ | 78,435 | $ | 121,145 | $ | (40,952) | $ | 80,193 | Total intangible assets | $ | 116,704 | $ | (45,313) | $ | 71,391 | $ | 116,704 | $ | (43,644) | $ | 73,060 |
July 3, 2022 | April 3, 2022 | July 2, 2023 | April 2, 2023 | |||||||||||||||||||||||||||||||||||||
July 2, 2023 | April 2, 2023 | |||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | (In thousands) | ||||||||||||||||||||||||||||||||||||||
Senior secured revolving loan | Senior secured revolving loan | $ | 159,500 | $ | 126,000 | Senior secured revolving loan | $ | 88,600 | $ | 112,000 | ||||||||||||||||||||||||||||||
Less: unamortized debt issuance costs | Less: unamortized debt issuance costs | (421) | (443) | Less: unamortized debt issuance costs | (334) | (356) | ||||||||||||||||||||||||||||||||||
Total debt, net of debt issuance costs | Total debt, net of debt issuance costs | 159,079 | 125,557 | Total debt, net of debt issuance costs | 88,266 | 111,644 | ||||||||||||||||||||||||||||||||||
Less: current portion of long-term debt | Less: current portion of long-term debt | (9,913) | (9,913) | Less: current portion of long-term debt | (9,913) | (9,913) | ||||||||||||||||||||||||||||||||||
Total long-term debt | Total long-term debt | $ | 149,166 | $ | 115,644 | Total long-term debt | $ | 78,353 | $ | 101,731 |
July 3, 2022 | April 3, 2022 | ||||||||||
Lease Term and Discount Rate | |||||||||||
Weighted average remaining lease term (years) | 8.93 | 8.91 | |||||||||
Weighted average discount rate | 2.5 | % | 2.6 | % |
Shares | Weighted- Average Grant Date Fair Value | Shares | Weighted- Average Grant Date Fair Value | |||||||||||||||||||||||||
Unvested at beginning of period | Unvested at beginning of period | 214,478 | $ | 25.48 | Unvested at beginning of period | 189,258 | $ | 34.64 | ||||||||||||||||||||
Granted | Granted | 88,524 | 38.31 | Granted | 61,819 | 43.06 | ||||||||||||||||||||||
Vested | Vested | (102,860) | 18.69 | Vested | (105,600) | 31.74 | ||||||||||||||||||||||
Forfeited or expired | (10,884) | 34.68 | ||||||||||||||||||||||||||
Unvested at end of period | Unvested at end of period | 189,258 | $ | 34.64 | Unvested at end of period | 145,477 | $ | 40.33 |
(In thousands) | (In thousands) | Industrial | Water Treatment | Health and Nutrition | Total | (In thousands) | Industrial | Water Treatment | Health and Nutrition | Total | ||||||||||||||||||||||||||||||||||||||||||
Three months ended July 3, 2022: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended July 2, 2023: | Three months ended July 2, 2023: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | Sales | $ | 124,710 | $ | 78,490 | $ | 43,343 | $ | 246,543 | Sales | $ | 120,873 | $ | 93,651 | $ | 36,596 | $ | 251,120 | ||||||||||||||||||||||||||||||||||
Gross profit | Gross profit | 20,009 | 18,953 | 7,787 | 46,749 | Gross profit | 19,306 | 26,408 | 6,277 | 51,991 | ||||||||||||||||||||||||||||||||||||||||||
Selling, general, and administrative expenses | Selling, general, and administrative expenses | 6,385 | 8,701 | 3,799 | 18,885 | Selling, general, and administrative expenses | 6,575 | 9,126 | 3,803 | 19,504 | ||||||||||||||||||||||||||||||||||||||||||
Operating income | Operating income | 13,624 | 10,252 | 3,988 | 27,864 | Operating income | 12,731 | 17,282 | 2,474 | 32,487 | ||||||||||||||||||||||||||||||||||||||||||
Three months ended June 27, 2021: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended July 3, 2022: | Three months ended July 3, 2022: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | Sales | $ | 85,850 | $ | 56,238 | $ | 39,153 | $ | 181,241 | Sales | $ | 124,710 | $ | 78,490 | $ | 43,343 | $ | 246,543 | ||||||||||||||||||||||||||||||||||
Gross profit | Gross profit | 14,254 | 16,234 | 8,486 | 38,974 | Gross profit | 20,009 | 18,953 | 7,787 | 46,749 | ||||||||||||||||||||||||||||||||||||||||||
Selling, general, and administrative expenses | Selling, general, and administrative expenses | 6,241 | 7,062 | 3,553 | 16,856 | Selling, general, and administrative expenses | 6,385 | 8,701 | 3,799 | 18,885 | ||||||||||||||||||||||||||||||||||||||||||
Operating income | Operating income | 8,013 | 9,172 | 4,933 | 22,118 | Operating income | 13,624 | 10,252 | 3,988 | 27,864 |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
July 3, 2022 | June 27, 2021 | July 2, 2023 | July 3, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
Sales | Sales | 100.0 | % | 100.0 | % | Sales | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||
Cost of sales | Cost of sales | (81.0) | % | (78.5) | % | Cost of sales | (79.3) | % | (81.0) | % | ||||||||||||||||||||||||||||||||||||||||||
Gross profit | Gross profit | 19.0 | % | 21.5 | % | Gross profit | 20.7 | % | 19.0 | % | ||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | Selling, general and administrative expenses | (7.7) | % | (9.3) | % | Selling, general and administrative expenses | (7.8) | % | (7.7) | % | ||||||||||||||||||||||||||||||||||||||||||
Operating income | Operating income | 11.3 | % | 12.2 | % | Operating income | 12.9 | % | 11.3 | % | ||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | Interest expense, net | (0.4) | % | (0.2) | % | Interest expense, net | (0.5) | % | (0.4) | % | ||||||||||||||||||||||||||||||||||||||||||
Other (expense) income | Other (expense) income | (0.3) | % | 0.1 | % | Other (expense) income | 0.1 | % | (0.3) | % | ||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 10.6 | % | 12.1 | % | Income before income taxes | 12.5 | % | 10.6 | % | ||||||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | (2.6) | % | (3.0) | % | Income tax expense | (3.3) | % | (2.6) | % | ||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 8.0 | % | 9.1 | % | Net income | 9.2 | % | 8.0 | % |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of a Publicly Announced Plan or Program | Maximum Number of Shares that May Yet be Purchased under Plans or Programs (2) | ||||||||||||||||||||||
04/04/2022-05/01/2022 | 36,410 | (1) | $ | 42.57 | — | 311,005 | ||||||||||||||||||||
05/02/2022-05/29/2022 | 23,090 | 34.83 | 23,090 | 287,915 | ||||||||||||||||||||||
05/30/2022-07/03/2022 | 158,567 | 36.32 | 158,567 | 129,348 | ||||||||||||||||||||||
Total | 218,067 | 181,657 |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of a Publicly Announced Plan or Program | Maximum Number of Shares that May Yet be Purchased under Plans or Programs | ||||||||||||||||||||||
04/03/2023-04/30/2023 | — | $ | — | — | 1,129,348 | |||||||||||||||||||||
05/01/2023-05/28/2023 | — | — | — | 1,129,348 | ||||||||||||||||||||||
05/29/2023-07/02/2023 | — | — | — | 1,129,348 | ||||||||||||||||||||||
Total | — | — |
Exhibit | Description | Method of Filing | ||||||||||||
3.1 | Incorporated by Reference | |||||||||||||
3.2 | Incorporated by Reference | |||||||||||||
31.1 | Filed Electronically | |||||||||||||
31.2 | Filed Electronically | |||||||||||||
32.1 | Filed Electronically | |||||||||||||
32.2 | Filed Electronically | |||||||||||||
101 | Financial statements from the Quarterly Report on Form 10-Q of Hawkins, Inc. for the period ended July | Filed Electronically | ||||||||||||
104 | Cover Page Interactive Data File (embedded within the inline XBRL document) | Filed Electronically |
HAWKINS, INC. | |||||||||||
By: | /s/ Jeffrey P. Oldenkamp | ||||||||||
Jeffrey P. Oldenkamp | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
(On behalf of the registrant and as principal financial and accounting officer) |