Crawford United Corp (OTC:CRAWA)

Crawford United Corp (OTC:CRAWA) ($30.00 $105.1M market cap) (formerly HICKA), a holding company serving diverse markets, announced Q3 2023 results:

• Sales of $33.6 million vs $32.2 million in the prior year, and below analyst estimates of $35.1 million
• EPS of $0.80.vs $0.36 in the prior year, and ahead of analyst estimates of $0.61

“We are pleased with the ongoing success of our business model and remain confident in our ability to achieve long-term strategic priorities. Net income in the trailing twelve months is a record $13.1 million and our total debt was reduced to $13.5 million. Crawford United is well positioned to pursue opportunities for increased revenue and profitability, always with an eye towards additional acquisitions.”

The quarterly comps begin to become much more challenging as it heads into Q4 2023 and fiscal 2024. Given the company’s propensity to make acquisitions, the acquisition commentary is something to keep a close eye on as it can have a favorable impact on the financial results moving forward.

Crawford United Corp (OTC:CRAWA) ($16.85; $58.3M market cap) (formerly HICKA), a holding company serving diverse markets, announced Q1 2023 results:

• Sales of $39.4 million vs $31.0 million in the prior year, and ahead of analyst estimates of $36.2 million
• EPS of $0.97.vs $0.31 in the prior year, and ahead of analyst estimates of $0.56

“We are pleased with the ongoing success of our business model, as our overall sales, gross margins and profitability continue to improve. Crawford United is continuing to explore opportunities for increased revenue and improved profitability, always with an eye towards additional acquisitions.”

Shares are now trading at a trailing P/E of 7.4. 

Crawford United Corp (OTC:CRAWA) ($16.61; $57.7M market cap) (formerly HICKA), a holding company serving diverse markets, announced Q3 2022 results:

• Sales of $32.2 million vs $26.4 million in the prior year
• EPS of $0.36 vs $0.35 in the prior year

“We are pleased with the ongoing growth of our company and remain confident in our ability to achieve long-term strategic priorities. Crawford United is continuing to explore opportunities for increased revenue and improved profitability, always with an eye towards additional acquisitions.”

Crawford United Corp (OTC:CRAWA) ($21.47; $73.8M market cap) (formerly HICKA), a holding company serving diverse markets, announced Q2 2022 results:

• Sales of $31.9 million vs $26.4 million in the prior year
• EPS of $0.34 vs $0.37 in the prior year
• Non-GAAP EPS of $0.51 vs $0.45 in the prior year (includes investments in equity securities)

“We are pleased with the ongoing growth of our company and remain confident in our ability to achieve long-term strategic priorities. Crawford United is continuing to explore opportunities for increased revenue and improved profitability, always with an eye towards additional acquisitions.”

Crawford United Corp (OTC:CRAWA) (formerly HICKA) ($27.35; $93.2M market cap), a holding company serving diverse markets, announced Q4 2021 results:

• Sales of $27.3 million vs $19.9 million in the prior year
• Non-GAAP EPS of $031 vs $0.63 in the prior year

“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.”

Crawford United Corp (OTC:CRAWA) (formerly HICKA), a holding company serving diverse markets, announced Q3 2021 results:

• Sales of $26.3 million vs $21.2 million in the prior year

• EPS of $0.35 vs $0.43 in the prior year

At this time the company has not issued a press release. The results were only issued via a 10-Q.  Below are some comments from the filing on the quarterly sales and earnings:

“This increase in sales was primarily attributable to a recovery in demand as COVID-19 pandemic-related restrictions loosened and commercial activity increased, in addition to the acquisitions of Komtek, Global-Tek, Machining Technology and Emergency Hydraulics.

Net income in the current quarter was $1.2 million or $0.35 per diluted share as compared to the net income of $1.4 million or $0.43 per diluted share for the same quarter of the prior year. Unrealized losses related to investments in marketable securities reduced net income by approximately $0.3 million or $0.07 per diluted share in the current quarter.”

Crawford United Corp (OTC:CRAWA) ($34.86; $118.8M market cap) (formerly HICKA), a holding company serving diverse markets, announced Q2 2021 results:

• Sales of $26.4 million vs $18.5 million in the prior year
• EPS of $0.37 vs $0.07 in the prior year

"For the quarter and the six months ended June 30, 2021, the increases in sales and operating income were due to the acquisitions of Komtek Forge and Global-Tek Manufacturing, as well as organic growth and a recovery in customer demand as we emerge from the global pandemic.

...We are pleased with the ongoing success of our business model. Our recent acquisitions of Komtek Forge, Global-Tek Manufacturing and Emergency Hydraulics will positively impact our levels of sales and earnings for the remainder of 2021. Crawford United is continuing to explore opportunities for increased revenue and improved profitability, always with an eye towards additional acquisitions.”

Crawford United Corp (OTC:CRAWA) ($28.10; $95.7M market cap) (formerly HICKA), a holding company serving diverse markets announced Q1 2021 results:

• Sales of $24.0 million vs $25.3 million in the prior year
• Non-GAAP net income of $0.54 vs $0.63 in the prior year

“We are pleased with the ongoing recovery of our business from the pandemic and remain confident in our ability to achieve long-term strategic priorities. Our recent acquisitions of Komtek Forge and Global-Tek Manufacturing will positively impact our levels of sales and earnings for the remainder of 2021. Crawford United is continuing to explore opportunities for growing revenue and improving profitability, with an eye towards additional acquisitions.”

Crawford United Corp (OTC:CRAWA) ($29.80; $99.0M market cap) (formerly HICKA), a holding company serving diverse markets, announced Q4 2020 results:

• Sales of $19.9 million vs $21.1 million in the prior year

• EPS of $0.63 vs $0.51 in the prior year

“We are pleased with the continuing recovery of our business from the pandemic and remain confident in our ability to achieve long-term strategic priorities. The recent acquisitions of Komtek Forge, Global-Tek Manufacturing and Machining Technology are expected to add $15 million in annualized revenue and be immediately accretive to earnings. Crawford United will continue to explore opportunities for growing our revenue and improving our profitability, with an eye towards additional acquisitions.”

Crawford United Corp (OTC:CRAWA) ($26.00; $86.4M market cap) (formerly HICKA), a holding company serving diverse markets, announced the acquisition of Global-Tek Manufacturing and Machining Technology. The acquired businesses provide customers in the defense, aerospace, and medical device markets with highly engineered manufacturing solutions, including CNC machining, die casting, anodizing, electropolishing, and laser marking. 

“Global-Tek and Machining Technology are strategically important to our growing presence in the aerospace and defense markets,” said Brian Powers, CEO of Crawford United.  “These acquisitions will expand our offerings and diversify our customer base in this important market segment,” he added. 

The acquisitions are expected to add approximately $8 million in annualized revenue to Crawford United and be immediately accretive to earnings. Recall that it was past acquisitions that brought us to cover the CRAWA story when the stock was trading at around $5.00 in July of 2017, then shortly thereafter took an initial position at $5.50 on August 9, 2017.

The stock closed at an all-time high of $26.00 yesterday, or a 372% return from our initial disclosure. 

Crawford United Corp (OTC:CRAWA) announced Q3 2020 results:

• Sales of $21.3 million vs $22.2 million in the prior year
• EPS of $0.43 vs $0.52 in the prior year

“We are pleased with the progress made by each of our business segments in this most recent quarter and remain confident in our ability to pursue and achieve long-term strategic priorities. Crawford United has the stability required to explore opportunities for growing our revenue and improving our profitability, with an eye towards future acquisitions.”

Crawford United Corp (OTC:CRAWA) ($15.50; $51.2M market cap) (formerly HICKA), a holding company serving diverse markets, announced Q2 2020 results:

• Sales of $18.6 million vs $24.5 million in the prior year
• EPS of $0.07 vs $0.57 in the prior year

The decreases in sales, operating income and net income were due to the impact of COVID-19. The pandemic significantly weakened customer demand across the Company's business segments, particularly in late April through May. The Company took immediate actions, including aggressive management of working capital, elimination of non-critical capital expenditures, reductions in salaried compensation, cuts in discretionary spending, permanent headcount reductions, and temporary layoffs. In June, consolidated revenue improved as demand from key end markets began to recover, resulting in a positive net income for the month and the quarter.

Although we faced challenging market conditions in the second quarter as a result of the global pandemic, we remain confident in our ability to pursue and achieve long-term strategic priorities. Crawford United has the stability required to explore opportunities for growing our revenue and improving our profitability, with an eye towards future acquisitions.  We will maintain and build upon our strong relationships with key customers and suppliers as we continue to emerge from the current economic situation.”

CLEVELAND, Jan. 06, 2020 (GLOBE NEWSWIRE) -- Federal Hose Manufacturing LLC, an operating company owned by Crawford United Corporation (OTC: CRAWA), today announced the purchase of Marine Products International (MPI), located in Eastlake, Ohio. The transaction became effective as of January 1, 2020. The acquired business, which will continue to operate under the name MPI, provides rubber and plastic hoses to the recreational marine industry.

The acquisition is expected to add approximately $18 million in annual revenue to the Industrial Hose business segment of Crawford United and be immediately accretive to earnings.

Crawford United Corp (OTC:CRAWA) ($20.04; $53.6M market cap) (formerly HICKA), a holding company serving diverse markets announced Q3 2019 results:

• Sales of $22.2 million vs $19.8 million in the prior year and ahead of analyst estimates of $19.1 million

• EPS of $0.52 vs $0.48 in the prior year and ahead of analyst estimates of $0.45 in the prior year

“We are pleased with the profitable growth of our business during the third quarter and expect business conditions to remain robust for the foreseeable future.  In addition to our focus on organic growth within our existing business segments, Crawford United continues to actively seek strategic and opportunistic acquisitions. To help fund these opportunities, we have increased the principal amount of our revolving credit facility from $12,000,000 to $20,000,000 and extended the maturity date to June 2024.  We continue to maintain low leverage ratios and to pay down debt through free cash flow generation.”

It seems the company is setting the stage for another acquisition opportunity based on management's comments. Recall, it was past acquisitions that brought us to the CRAWA story, when the stock was trading at around $5.00 in July of 2017. 

GB Hickok Inc (PINK:HICKA) ($11.00; $27.5M market cap), a holding company serving diverse markets announced Q3 2018 results:

• Sales of $19.8 million vs $10.9 million in the prior year
• Non-GAAP EPS of $0.86 vs $0.18 in the prior year

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.

We are awaiting the 10-Q to confirm that this $1.2 million expense was all in the third quarter.  Regardless, the company states its adjusted net income for the 9 months ended September 30, 2018 was $3.4 million ($1.10 EPS) compared with net income of $1.7 million ($0.55 EPS) 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.

You can see our past coverage on HICKA here.

GB Hickok Inc (PINK:HICKA) ($8.28; $24.1M market cap), a holding company serving diverse markets, announced the sale of certain assets of its Test and Measurement business segment.  HICKA sold the assets to to Hickok Waekon, LLC in exchange for shares of Class A and Class B Common Stock held previously by an affiliate of Hickok Waekon, LLC.

“The management of Hickok Incorporated does not expect the transaction to have a significant impact on operating income in the current fiscal year, although the company expects to record a one-time loss on the sale of assets.  Concurrent with this asset sale, Robert L. Bauman has resigned from the company’s Board of Directors.”

GBHickok Inc (PINK:HICKA) ($8.56; $24.7M market cap), a holding company serving diverse markets, announced Q1 2018 results:

• Sales of $11.9 million vs $3.3 million in the prior year

• EPS of $0.11 vs $0.07 in the prior year

• Non-GAAP EPS of $0.20 vs $0.11

As usual, the company offered little to no commentary in its press releases.  We will read through the 10-Q to look for any insights. But one thing we are little concerned about is the financial performance of of parts of the company's legacy business and the stability of margins.

GB Hickok Inc (PINK:HICKA) ($9.50; $27.5M market cap), a holding company serving diverse markets, announced its 3 month results for the December 31, 2017 period:

• Sales of $11.8 million vs $2.4 million in the prior year period

• EPS of $0.15 vs a loss of $0.12 in the prior year period

As usual, the company offered little to no commentary in its press releases.  The tax rate for the quarter was 57% (and 50% for September 30, 2017 quarter):

“On December 22, 2017, the Tax Cuts and Jobs Act of 2017 was signed into law.  As a result, the Company remeasured its deferred tax assets and liabilities based upon the decrease in the corporate tax rate from 34% to 21%.  As a result, the Company recorded tax expense at a 57% effective rate for the period”

At the new normal tax rate of 21%, the company would have reported EPS of $0.29.  We will reach out to management to determine what the effective tax rate moving forward will be.

Also, investors should note that the company recently changed its fiscal year end from September 30 to December 31.