- Sales of $32.7 million for the quarter, an increase of 19.5%
- Sales of $127.8 million for the year, an increase of 22.6%
- Net Income of $6.6 million for the year and earnings per share of $1.89
- EBITDA of $4.1 million for the quarter, an increase of 150.6%
- EBITDA of $13.7 million for the year, an increase of 27.1%
CLEVELAND, March 21, 2023 (GLOBE NEWSWIRE) — Crawford United Corporation (OTC: CRAWA), a growth-oriented holding company serving diverse markets, today reported results for the three-month and twelve-month periods ended December 31, 2022.
For the quarter ended December 31, 2022, sales were $32.7 million compared with $27.3 million in the same period last year, an increase of 19.5%. In this quarter, the Company recorded operating income of $2.7 million compared with operating income of $0.7 million in the same period last year. Net income was $3.1 million, or $0.88 per fully diluted share, compared to $0.1 million, or $0.02 per fully diluted share in the fourth quarter of the prior year. EBITDA, as defined, was $4.1 million in the fourth quarter compared to $1.6 million in the same period of last year.
For the twelve months ended December 31, 2022, sales were $127.8 million compared with $104.2 million in the same period last year, an increase of 22.6%. In this twelve-month period, the Company recorded operating income of $8.5 million compared with operating income of $7.0 million last year. Net income was $6.6 million, or $1.89 per fully diluted share, compared with net income of $5.7 million, or $1.66 per fully diluted share last year. EBITDA, as defined, was $13.7 million compared to 10.8 million last year.
For the quarter and the twelve months ended December 31, 2022, the increases in sales were primarily due to the acquisitions during 2022 of Reverso Pumps, Separ America and Knitting Machinery. For the twelve months ended December 31, 2022, the increase in sales was also attributable to a full twelve months from Komtek and Emergency Hydraulics as compared to less than twelve months in 2021, as well as organic growth and a recovery in customer demand as we emerged from the global pandemic. Net income for the quarter was impacted by lower cost of sales as percentage of revenue driven by improved supply chain reliability and a favorable adjustment in income tax expense.
Brian Powers, President and CEO, stated “Although our margins have been impacted by labor shortages and supply chain pressures, we are pleased with the ongoing success of our business model. Crawford United is continuing to explore opportunities for increased revenue and improved profitability, always with an eye towards additional acquisitions.”
About Crawford United Corporation.
Crawford United Corporation is a growth-oriented holding company providing specialty industrial products to diverse markets, including healthcare, education, aerospace, defense, and transportation. The company currently operates two business segments. The Commercial Air Handling Equipment segment is a leader in designing, manufacturing, and installing highly customized, large-scale commercial, institutional, and industrial air handling solutions, primarily for hospitals and universities. The Industrial & Transportation Products segment provides highly complex precision components to customers in the aerospace and defense industries, as well as a full line of branded metal, silicone, plastic, rubber, hydraulic, marine and fuel hose products. For more information, go to www.crawfordunited.com.
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. Generally, these statements can be identified by the use of words such as “guidance,” “outlook,” “believes,” “estimates,” “anticipates,” “expects,” “forecasts,” “seeks,” “projects,” “intends,” “plans,” “may,” “will,” “should,” “could,” “would” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements, or other statements made by the Company, are made based upon management’s expectations and beliefs concerning future events impacting the Company and are subject to uncertainties and factors (including, but not limited to, those specified below) which are difficult to predict and, in many instances, are beyond the control of the Company. As a result, actual results of the Company could differ materially from those expressed in or implied by such forward looking statements. These uncertainties and factors include the Company’s ability to successfully integrate acquisitions, and manage the larger operations of the combined businesses, the Company’s dependence upon a limited number of customers in the aerospace industry, the highly competitive industry in which the Company operates, which includes several competitors with greater financial resources and larger sales organizations, the Company’s ability to capitalize on market opportunities in certain sectors, the Company’s ability to obtain cost effective financing and the Company’s ability to satisfy obligations under its financing arrangements, shortages in supply or increased costs of freight, labor or necessary products, components or raw materials, statements related to the expected effects on the Company’s business of the COVID-19 pandemic, the duration and scope of the COVID-19 pandemic and impact on the demand for the Company’s products, actions that governments, businesses and individuals take in response to the pandemic, including mandatory business closures and restrictions on onsite commercial interactions and any re-imposed public health measures or tightened public health restrictions in response to any increased spread of new strains of COVID-19 in the Company’s markets, the impact of the pandemic and actions taken in response to the pandemic on global and regional economies and economic activity, the pace of recovery when the COVID-19 pandemic subsides, efforts made to combat COVID-19, including vaccine development and distribution, general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth, including the economic impact of inflation and Russia’s invasion of Ukraine, as well as the risks described from time to time in the Company’s reports as filed with the Securities and Exchange Commission. Further information on potential factors that could affect the financial results of the Company and its forward-looking statements is included in its most recent Form 10-K and subsequent filings with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statement, except as may be required by law. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement.
Brian E. Powers
President & CEO
“Crawford United has a great future behind it.”
|CRAWFORD UNITED CORPORATION|
|Consolidated Income Statement (Unaudited)|
|Three Months Ended||Twelve Months Ended|
|December 31,||December 31,|
|Cost of Sales||25,072,450||77||%||22,588,935||83||%||100,722,146||79||%||82,249,762||79||%|
|Selling, general and administrative expenses||4,827,136||15||%||4,055,332||15||%||18,499,309||14||%||14,922,213||14||%|
|Other (Income) Expenses:|
|Other (income) expense||(364,276||)||-1||%||(119,805||)||-1||%||(336,945||)||0||%||(1,254,432||)||-1||%|
|Total Other (Income) and Expenses||27,711||0||%||68,087||0||%||801,279||1||%||(372,690||)||0||%|
|Income before Income Taxes||2,733,235||8||%||608,127||2||%||7,732,194||6||%||7,362,942||7||%|
|Income tax expense||(336,484||)||-1||%||543,429||2||%||1,170,791||1||%||1,709,644||2||%|
|Net income per common share|
|Weighted average shares outstanding|
CRAWFORD UNITED CORPORATION
Supplemental Non-GAAP Financial Measures (Unaudited)
EBITDA, as defined is a non-GAAP financial measure that the Company is providing in this press release. EBITDA, as defined reflects net income before interest expense, income taxes, depreciation and amortization, and also excludes certain charges and corporate-level expenses as defined in the Company’s current revolving credit facility. The Company presents this non-GAAP financial measure because management uses EBITDA, as defined to assess the Company’s performance and believes that EBITDA is useful to investors as an indication of the Company’s compliance with its financial covenants in its revolving credit facility. Additionally, EBITDA, as defined is a measure used under the Company’s revolving credit facility to determine whether the Company may incur additional debt under such facility. EBITDA, as defined is not a measure of performance under GAAP and should not be considered in isolation from, or as a substitute for, net income or cash flow information calculated in accordance with GAAP. EBITDA, as defined herein may not be comparable to similarly titled measures of other companies. The following table reconciles net income to EBITDA, as defined:
|Three Months Ended||Twelve Months Ended|
|December 31,||December 31,|
|Income tax expense||(336,484||)||543,429||1,170,791||1,709,645|
|Depreciation and amortization||950,526||753,332||3,750,805||2,986,599|
|Non-cash stock-based compensation expense||19,807||6,382||957,728||429,344|
|Forgiveness of PPP loan||–||–||–||(1,453,837||)|
|Non-recurring transaction charges||30,000||87,641||170,476||613,951|
|EBITDA, as defined||$||4,125,555||$||1,646,374||$||13,534,405||$||10,820,741|