Crawford United Corporation Announces Third Quarter 2022 Results

Rhea-AI Summary

Crawford United Corporation (OTC: CRAWA) reported Q3 2022 sales of $32.2 million, up 22.0% year-over-year, and $95.1 million for the nine months, increasing 23.8%. Operating income for Q3 rose to $2.0 million, while net income increased slightly to $1.3 million, or $0.36 per diluted share. Nine-month net income dropped to $3.5 million, or $1.01 per share, affected by $0.9 million in stock awards and a lack of $1.5 million debt forgiveness seen in 2021. The demand surge is attributed to organic growth and recent acquisitions.

Positive

• Sales increased by 22.0% year-over-year in Q3 2022.
• Nine-month sales reached $95.1 million, up 23.8%.
• Operating income for Q3 2022 improved to $2.0 million.
• Recent acquisitions contributed to revenue growth.

Negative

• Net income for the nine-month period decreased to $3.5 million.
• Earnings per share fell to $1.01, down from $1.64 in 2021.
• Non-cash stock awards increased to $0.9 million this year.

• Sales of $32.2 million for the quarter, an increase of 22.0% over Q3 2021
• Sales of $95.1 million for the nine-month period, an increase of 23.8% over 2021

CLEVELAND, Nov. 09, 2022 (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, 2022.

For the quarter ended September 30, 2022, sales were $32.2 million compared to $26.4 million in the same period last year, an increase of 22.0%.  In this quarter, the Company recorded operating income of $2.0 million compared to $1.9 million in the same period last year, an increase of 5.2%. Net income was $1.3 million, or $0.36 per fully diluted share, compared to $1.2 million, or $0.35 per fully diluted share in the third quarter of last year. For the quarter, net income and earnings per share were negatively impacted by $0.1 million of unrealized losses on non-operating strategic investments in equity securities.

For the nine months ended September 30, 2022, sales were $95.1 million compared to $76.8 million in the same period last year, an increase of 23.8%.  For the nine-month period, the Company recorded operating income of $5.8 million compared to $6.3 million in the same period last year. Net income was $3.5 million, or $1.01 per fully diluted share, compared to $5.6 million, or $1.64 per fully diluted share in the first nine months of last year. The decreases in operating income, net income and earnings per share for the nine-month period were due in part to non-cash stock awards valued at $0.9 million in the current year compared to $0.4 million in the same period last year, based on the substantially higher share price this year. In addition, net income and earnings per share in the first half of 2021 were higher due in part to forgiveness of debt in the amount of $1.5 million under the CARES Act.

For the quarter and the nine months ended September 30, 2022, the increase in revenue was attributable to organic growth in each of the company’s operating segments, as well as the acquisitions of Reverso Pumps and Separ America in January of 2022 and Knitting Machinery Company of America in May of 2022.

Brian Powers, President and CEO, stated, “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.”

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
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,
		2022						2021						2022						2021
Sales		$	32,189,623		100	%		$	26,397,857		100	%		$	95,094,396		100	%		$	76,841,745		100	%
Cost of Sales			25,879,820		80	%			21,000,148		80	%			75,649,696		80	%			59,660,823		78	%
Gross Profit			6,309,803		20	%			5,397,709		20	%			19,444,700		20	%			17,180,922		22	%
Selling, general and administrative expenses			4,310,125		14	%			3,528,928		13	%			13,672,173		14	%			10,866,884		14	%
Operating Income			1,999,678		6	%			1,868,781		7	%			5,772,527		6	%			6,314,038		8	%
Interest charges			331,156		1	%			236,535		1	%			746,237		1	%			693,850		1	%
Other (income) expense, net			(93,676	)	0	%			140,846		0	%			27,331		0	%			(1,134,627	)	-2	%
Income before Income Taxes			1,762,198		5	%			1,491,400		6	%			4,998,959		5	%			6,754,815		9	%
Income tax expense			507,653		1	%			293,523		1	%			1,507,275		1	%			1,166,216		2	%
Net income		$	1,254,545		4	%		$	1,197,877		5	%		$	3,491,684		4	%		$	5,558,599		7	%
Net income (loss) per common share
Basic		$	0.36					$	0.35					$	1.01					$	1.64
Diluted		$	0.36					$	0.35					$	1.01					$	1.64
Weighted average shares outstanding
Basic			3,476,087						3,408,906						3,458,437						3,403,609
Diluted			3,476,087						3,409,819						3,458,437						3,404,507

Contact:
Brian E. Powers, Chief Executive Officer
CRAWFORD UNITED CORPORATION
10514 Dupont Avenue, Suite 200
Cleveland, Ohio 44108
216-243-2449

FAQ

What were Crawford United Corporation's Q3 2022 sales figures?

Crawford United Corporation reported Q3 2022 sales of $32.2 million, a 22.0% increase over Q3 2021.

How much did net income decrease for the nine-month period in 2022?

Net income for the nine months ended September 30, 2022, decreased to $3.5 million, down from $5.6 million in 2021.

What factors contributed to Crawford United's revenue growth in 2022?

Revenue growth was attributed to organic growth in operating segments and acquisitions of Reverso Pumps, Separ America, and Knitting Machinery Company of America.

What was the impact of stock awards on net income for Crawford United?

Non-cash stock awards valued at $0.9 million negatively impacted net income during the nine-month period.

How did Crawford United's earnings per share change in 2022?

Earnings per share decreased to $1.01 for the nine-month period, down from $1.64 in the same period last year.