Crawford United Corp (CRAWA) Reports Strong Year-Over-Year Growth in 2023
Annual Revenue: Increased by 12.6% to $143.9 million.
Operating Income: Soared by 110.6% for the full year.
Net Income: More than doubled, rising by 101.5% to $13.3 million.
Earnings Per Share (EPS): Jumped from $1.89 to $3.77, a 101.5% increase.
EBITDA As Defined: Grew by 64.1% to $25.6 million for the year.
Debt Reduction: Reduced to $6.4 million at year-end.
Crawford United Corp (CRAWA) released its 8-K filing on March 5, 2024, announcing its financial results for the fourth quarter and full year ended December 31, 2023. The company, which operates in the industrial products sector, has reported a significant increase in its financial metrics, indicating a robust performance across its diverse markets.
Company Overview
Crawford United Corp is a growth-oriented holding company that provides specialty industrial products to a variety of markets, including healthcare, education, automotive, aerospace, trucking, and petrochemical. The company's operations are divided into two segments: Commercial Air Handling Equipment, which focuses on custom air handling solutions, and Industrial & Transportation Products, which is the main revenue driver, producing flexible interlocking metal hoses and distributing silicone and hydraulic hoses. The United States remains the primary market for Crawford United Corp, contributing significantly to its revenue stream.
Financial Performance and Highlights
For the fourth quarter of 2023, Crawford United Corp reported sales of $33.8 million, a 3.4% increase from the same period in 2022. Operating income for the quarter rose by 21.4% to $3.4 million, while net income saw a modest increase of 3.2% to $3.2 million, or $0.91 per fully diluted share. The company also experienced an 18.6% increase in EBITDA As Defined, reaching $5.1 million.
Looking at the full year, the company's sales climbed to $143.9 million, up 12.6% from the previous year. More impressively, operating income more than doubled, with a 110.6% increase to $17.9 million. Net income for the year was $13.3 million, or $3.77 per fully diluted share, representing a 101.5% jump from 2022. EBITDA As Defined for the year was $25.6 million, a significant 64.1% increase from the prior year.
President and CEO Brian Powers expressed satisfaction with the company's performance, highlighting record highs in sales, gross margin, operating income, net income, and EBITDA As Defined. He also noted the company's reduced debt and its strong positioning for future growth and acquisitions.
Financial Statements Insights
The company's income statement reflects the strong performance with a gross profit margin increase to 26% for the year, up from 21% in 2022. Selling, general, and administrative expenses as a percentage of sales decreased slightly, contributing to the substantial growth in operating income. The balance sheet strength is evident in the reduced debt levels, positioning Crawford United Corp for strategic opportunities.
It is important for investors to note that the company's EBITDA As Defined, a non-GAAP financial measure, is used to assess compliance with financial covenants and is not a substitute for GAAP measures. The reconciliation of net income to EBITDA As Defined is provided in the company's financial tables, ensuring transparency and a comprehensive understanding of the financials.
Conclusion and Outlook
Crawford United Corp's 2023 performance showcases the company's ability to grow and generate increased profitability in a competitive industrial products market. With a strategic focus on long-term priorities and potential acquisitions, the company appears well-positioned for continued success. Investors and potential GuruFocus.com members should find Crawford United Corp's financial achievements and outlook compelling as they consider the company's value proposition.
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Explore the complete 8-K earnings release (here) from Crawford United Corp for further details.
This article first appeared on GuruFocus.
