Crawford United Corporation Announces Third Quarter 2020 Results

Crawford United Corporation Announces Third Quarter 2020 Results




Crawford United Corporation Announces Third Quarter 2020 Results

CLEVELAND, Nov. 10, 2020 (GLOBE NEWSWIRE) — Crawford United Corporation (OTC: CRAWA), a growth-oriented holding company serving diverse markets, today reported results for the three-month and nine-month periods ended September 30, 2020.

For the quarter, sales were $21.3 million compared to $22.2 million in the same period last year, a decrease of 4.3%. In this quarter, the Company recorded operating income of $2.1 million compared to operating income of $2.6 million in the same quarter last year.  Net income was $1.4 million, or $0.43 per fully diluted share, compared to $1.7 million, or $0.52 per fully diluted share in the same quarter last year.

For the nine months ended September 30, 2020, sales were $65.1 million compared to $68.6 million in the same period last year, a decrease of 5.0%. In this nine-month period, the Company recorded operating income of $5.8 million compared to operating income of $7.9 million in the same period last year.  Net income was $3.7 million, or $1.12 per fully diluted share, compared to $5.3 million, or $1.64 per fully diluted share in the same period last year.

For the quarter and the nine months ended September 30, 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 the second quarter. In the third quarter, sales and net income increased 14.5% and 520.8% respectively compared to the second quarter, demonstrating a strong recovery in customer demand.

Brian Powers, Chairman and CEO, stated “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.”

About Crawford United Corporation. Crawford United Corporation is a growth-oriented holding company providing specialty industrial products to diverse markets, including healthcare, aerospace, education, transportation, and petrochemical. The company currently operates three business segments. The Aerospace Components business specializes in highly complex precision components for customers in the commercial and military aviation industry, offering complete end-to-end engineering, machining, grinding, welding, brazing, heat treat, and assembly solutions. The Commercial Air Handling business is a leader in designing, manufacturing, and installing highly customized, large-scale commercial, institutional, and industrial air handling solutions. The Industrial Hose business is a premier manufacturer of flexible interlocking metal hoses and a distributor of a full line of branded 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, including the acquisition of MPI Products Inc. (dba Marine Products International), 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, 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 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, general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth, 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
Chairman & CEO
216-243-2449
bpowers@crawfordunited.com 

“Crawford United has a great future behind it.”

CRAWFORD UNITED CORPORATION
Consolidated Income Statement (Unaudited)
           
  Three Months Ended     Nine Months Ended  
  September 30,     September 30,  
                                               
  2020         2019         2020         2019      
Sales $ 21,277,797   100 %   $ 22,244,681   100 %   $ 65,135,959   100 %   $ 68,595,404   100 %
Cost of Sales   16,425,380   77 %     17,257,118   78 %     50,576,360   78 %     53,551,020   78 %
Gross Profit   4,852,417   23 %     4,987,563   22 %     14,559,599   22 %     15,044,384   22 %
                                               
Selling, general and administrative expenses   2,726,000   13 %     2,428,784   11 %     8,764,513   13 %     7,122,981   10 %
Operating Income   2,126,417   10 %     2,558,779   12 %     5,795,086   9 %     7,921,403   12 %
                                               
Interest charges   208,030   1 %     321,994   1 %     740,740   1 %     872,646   1 %
Other (income) expense, net   13,966   0 %     3   0 %     72,933   0 %     1,664   0 %
Income before Income Taxes   1,904,421   9 %     2,336,782   10 %     4,981,413   8 %     7,047,093   10 %
Income tax expense   478,331   2 %     541,914   2 %     1,250,916   2 %     1,775,288   3 %
Net income $ 1,426,090   7 %   $ 1,694,868   8 %   $ 3,730,497   6 %   $ 5,271,805   8 %
                                               
Net income (loss) per common share                                              
Basic $ 0.43         $ 0.59         $ 1.12         $ 1.89      
Diluted $ 0.43         $ 0.52         $ 1.12         $ 1.64      
                                               
Weighted average shares outstanding                                              
Basic   3,324,380           2,850,958           3,317,864           2,787,845      
Diluted   3,326,003           3,249,233           3,319,501           3,223,004