Hawkins Inc

We continue to generate strong cash flow, which allowed us to reduce our debt level by $20 million during the quarter.

SEC original ↗Hawkins Inc — Earnings release (8-K exhibit)EX-99Oct 29, 2025

Our total debt outstanding at the end of the second quarter was $279.0 million and our leverage ratio was 1.53x our trailing 12-month proforma adjusted EBITDA, as compared to 0.86x of trailing twelve-month adjusted EBITDA at the end of fiscal 2025.

SEC original ↗Hawkins Inc — Earnings release (8-K exhibit)EX-99Oct 29, 2025

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.

SEC original ↗Hawkins Inc — Earnings release (8-K exhibit)EX-99Oct 29, 2025

Because of the variable-rate nature of our debt under our credit facility, the carrying value of our debt also approximates fair value.

SEC original ↗Hawkins Inc — 10-Q Quarterly report10-QOct 26, 2026

We may use other proceeds from the Revolving Loan Facility for working capital, capital expenditures, share repurchases, restricted payments and other acquisitions permitted under the Credit Agreement, and other general corporate purposes.

SEC original ↗Hawkins Inc — 10-Q Quarterly report10-QOct 26, 2026

Borrowings under the Revolving Loan Facility bear interest at a variable rate based on term SOFR plus a margin.

SEC original ↗Hawkins Inc — 10-Q Quarterly report10-QOct 26, 2026

Our record second quarter revenue of $280 million and record second quarter adjusted EBITDA of $50.4 million are both a result of our ongoing strategy of investing in high-margin business that drives topline growth and enhances our margins.

SEC original ↗Hawkins Inc — Earnings release (8-K exhibit)EX-99Oct 29, 2025

We will continue to deliver on our strategy of investing in our higher margin businesses, acquiring companies that are accretive to Hawkins, all while servicing the needs of our customers to the highest level possible.

SEC original ↗Hawkins Inc — Earnings release (8-K exhibit)EX-99Oct 29, 2025

In fiscal 2024, we recorded a liability of $ 7.7 million related to estimated remediation expenses associated with perchlorinated biphenyls ("PCBs") discovered in the soil at our Rosemount, Minnesota facility during an expansion project.

SEC original ↗Hawkins Inc — 10-Q Quarterly report10-QOct 26, 2026

The CODM also uses segment operating income for evaluating pricing strategy, to assess the performance of each segment by comparing the results of each segment with one another, and in determining the compensation of certain employees.

SEC original ↗Hawkins Inc — 10-Q Quarterly report10-QOct 26, 2026

Financial Results We focus on total operating income when evaluating our financial results as opposed to profitability as a percentage of sales, as sales dollars tend to fluctuate as raw material prices rise and fall, particularly in our Water Treatment and Industrial Solutions segments.

SEC original ↗Hawkins Inc — 10-Q Quarterly report10-QOct 26, 2026

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.

SEC original ↗Hawkins Inc — Earnings release (8-K exhibit)EX-99Oct 29, 2025

Legal Proceedings 19 Item 1A.

SEC original ↗Hawkins Inc — 10-Q Quarterly report10-QOct 26, 2026

Given the many uncertainties involved in assessing environmental matters, actual remediation expenses could differ from our estimates.

SEC original ↗Hawkins Inc — 10-Q Quarterly report10-QOct 26, 2026

The $1.6 million year-over-year impact of the unfavorable LIFO reserve was partially offset by $1.3 million of refunds of previously paid tariffs, which were recorded as a reduction of cost of sales.

SEC original ↗Hawkins Inc — 10-Q Quarterly report10-QOct 26, 2026

The refunded tariffs related to products for which customer pricing had not been increased in response to tariffs.

SEC original ↗Hawkins Inc — 10-Q Quarterly report10-QOct 26, 2026

The $0.5 million year-over-year impact of the unfavorable LIFO reserve increase was more than offset by $1.2 million of refunds of previously paid tariffs, which were recorded as a reduction of cost of sales.

SEC original ↗Hawkins Inc — 10-Q Quarterly report10-QOct 26, 2026