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8-K - FORM 8-K - CRAWFORD UNITED Corphicka20181112_8k.htm

Exhibit 99.1

 

Contact:

Brian E. Powers, Chairman and Chief Executive Officer
HICKOK INCORPORATED
10514 Dupont Avenue
Cleveland, Ohio 44108
216-496-3238

 

 

 

November 12, 2018
FOR IMMEDIATE RELEASE

 

 

 



HICKOK INCORPORATED REPORTS THIRD QUARTER 2018 RESULTS

 

CLEVELAND, OH, NOVEMBER 12, 2018. Hickok Incorporated (OTC Pink: HICKA), a Cleveland-based holding company serving diverse markets, today reported results for the three-month and nine-month periods ended September 30, 2018.

 

For the quarter ended September 30, 2018, sales were $19.8 million compared with $10.9 million in the same period last year, an increase of 82%. In this same period, the Company recorded operating income of $2.5 million compared with operating income of $1.4 million in the same period last year, an increase of 75%. The Company’s net income in this period was $1.5 million, or $0.48 per fully diluted share, compared with net income of $0.6 million, or $0.18 per fully diluted share last year, an increase of 161% in net income. The increases in sales, operating income and net income were primarily a result of the acquisition of CAD Enterprises, Inc. (“CAD”) effective July 1, 2018.

 

The Company previously announced it sold certain assets comprising its Test and Measurement business segment effective June 1, 2018 to Hickok Waekon, LLC in exchange for shares of Class A and Class B Common Stock. As a result of the sale, the Company recorded a one-time loss on the sale of the business segment of $1.2 million.

 

For the nine months ended September 30, 2018, sales were $45.2 million compared with $21.5 million in the same period last year, an increase of 111%. The Company’s operating income in this period was $4.9 million compared with operating income of $3.0 million in the same period last year, an increase of 65%. In this same period, net income after recording the one-time loss on the sale of the business segment was $2.3 million, or $0.71 per fully diluted share, compared with net income of $1.7 million, or $0.56 per fully diluted share last year. Excluding the $1.2 million one-time loss on the sale of the business segment, adjusted net income in this period was $3.4 million compared with net income of $1.7 million last year, an increase of 98%. The increases in sales, operating income, net income and adjusted net income were primarily a result of the acquisitions of CAD effective July 1, 2018 and Air Enterprises effective June 1, 2017.

 

The Company previously announced it had changed its fiscal year end from September 30 to December 31, effective October 1, 2017. The change in the Company’s fiscal year has not impacted the Company’s results for the period ended September 30, 2018.

 

The Company has included adjusted net income because we believe this information is useful for our investors to understand the results of our operations for the quarter in light of the disposition of the Test and Measurement business segment. Adjusted net income should not be regarded as an alternative or replacement to any measurement of performance under GAAP.

 

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About Hickok Incorporated. Hickok Incorporated is a publicly-traded holding company serving diverse markets, including healthcare, aerospace, education, and petrochemical.

 

Information about Forward Looking Statements. This press release contains forward-looking statements within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements made regarding the company’s future results. Actual results and events may differ significantly from those anticipated as a result of risks and uncertainties, including the company’s ability to successfully integrate the acquired CAD Enterprises business in a timely and cost-effective manner and add revenue from the CAD Enterprises business in the amounts and within the time frames currently anticipated, the impact on the company’s Industrial Hose and Commercial Air Handling segments and the impact on the company’s 2018 financial results of the previously announced divestiture of the Test and Measurement segment as well as the risks described from time to time in the company’s reports as filed with the Securities and Exchange Commission.

 

Investor Contact. Brian Powers, Chairman and Chief Executive Officer, 216-496-3238

 

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HICKOK INCORPORATED

Consolidated Income Statement (Unaudited)

 

 

   

Three Months Ended

   

Nine Months Ended

 
   

September 30,

   

September 30,

 
                                                                 
   

2018

           

2017

           

2018

           

2017

         

Sales

  $ 19,771,137       100 %   $ 10,892,868       100 %   $ 45,243,029       100 %   $ 21,459,809       100 %

Cost of Sales

    15,320,915       77 %     7,858,489       72 %     34,287,788       76 %     14,018,770       65 %

Gross Profit

    4,450,222       23 %     3,034,379       28 %     10,955,241       24 %     7,441,039       35 %
                                                                 

Operating Expenses:

                                                               

Product development

    -       0 %     159,791       1 %     220,418       0 %     556,947       3 %

Selling, general and administrative expenses

    1,978,943       10 %     1,460,126       13 %     5,803,514       13 %     3,894,809       18 %

Operating Income

    2,471,279       12 %     1,414,462       13 %     4,931,309       11 %     2,989,283       14 %
                                                                 

Other (Income) Expenses:

                                                               

Interest charges

    286,684       1 %     116,992       1 %     453,372       1 %     231,879       1 %

Loss on sale of business

    -       0 %     -       0 %     1,160,574       3 %     -       0 %

Other (income) expense

    97,412       0 %     3,167       0 %     205,678       0 %     262,938       1 %

Total Other (Income) and Expenses

    384,096       2 %     120,159       1 %     1,819,624       4 %     494,817       2 %

Income before Income Taxes

    2,087,183       11 %     1,294,303       12 %     3,111,685       7 %     2,494,466       12 %

Income tax expense

    590,104       3 %     726,864       7 %     846,229       2 %     772,364       4 %

Net income

  $ 1,497,079       8 %   $ 567,439       5 %   $ 2,265,456       5 %   $ 1,722,102       8 %
                                                                 

Net income per common share

                                                               

Basic

  $ 0.55             $ 0.20             $ 0.80             $ 0.60          

Diluted

  $ 0.48             $ 0.18             $ 0.71             $ 0.56          
                                                                 

Weighted average shares outstanding

                                                               

Basic

    2,720,654               2,888,502               2,826,347               2,888,278          

Diluted

    3,092,520               3,161,975               3,186,946               3,101,106          

 

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