Crawford United Corporation Announces First Quarter 2022 Results

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  • Revenue of $31.0 million, an increase of 29%
  • Completed the acquisitions of Reverso Pumps and Separ Filters of America
  • Earnings per share of $0.31

CLEVELAND, May 13, 2022 (GLOBE NEWSWIRE) -- Crawford United Corporation (OTC: CRAWA), a growth-oriented holding company serving diverse markets, today reported results for the three-month period ended March 31, 2022.

For the quarter ended March 31, 2022, sales were $31.0 million compared to $24.0 million in the same period last year, an increase of 29%. In this quarter, the Company recorded operating income of $1.4 million compared to $2.3 million in the same period last year. Net income was $1.1 million, or $0.31 per fully diluted share, compared to $3.1 million, or $0.93 per fully diluted share in the same period last year.

The increase in revenue was primarily attributable to the acquisitions of Global-Tek Manufacturing in March 2021 and Emergency Hydraulics in July 2021, as well as Reverso Pumps and Separ Filters of America in January 2022. The decrease in net income was due in part to non-cash stock awards valued at $0.9 million in the current quarter compared to $0.3 million in same quarter last year, based on the substantially higher share price this year. In addition, net income in the first quarter of 2021 was higher due to forgiveness of debt in the amount of $1.5 million under the CARES Act.

Brian Powers, President and CEO, stated “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 Reverso Pumps and Separ Filters of America will positively impact our levels of sales and earnings for the remainder of 2022. 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, 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, primarily for hospitals and universities. 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, 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
216-243-2449
bpowers@crawfordunited.com

“Crawford United has a great future behind it.”

 
CRAWFORD UNITED CORPORATION
Consolidated Income Statement (Unaudited)
 
  Three Months Ended
  March 31,
            
  2022   2021  
Sales $31,002,746  100% $23,994,004  100%
Cost of Sales  24,636,341  79%  17,991,083  75%
Gross Profit  6,366,405  21%  6,002,921  25%
            
Operating Expenses:           
Selling, general and administrative expenses  4,969,084  16%  3,677,461  15%
Operating Income  1,397,321  5%  2,325,460  10%
            
Other (Income) Expenses:           
Interest charges  261,016  1%  218,618  1%
Other (income) expense  (504,786) -2%  (1,562,117) -6%
Total Other (Income) and Expenses  (243,770) -1%  (1,343,499) -5%
Income before Income Taxes  1,641,091  5%  3,668,959  15%
Income tax expense  575,216  2%  525,542  2%
Net income $1,065,875  3% $3,143,417  13%
            
Net income per common share           
Basic $0.31    $0.93   
Diluted $0.31    $0.93   
            
Weighted average shares outstanding           
Basic  3,433,995     3,392,839   
Diluted  3,433,995     3,393,720   


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