News Release
Sales and service fees for the fourth quarter of fiscal 2018 were
The following table sets forth net sales and service fees by geographic region for the fourth quarter and fiscal year ended
Three Months Ended | Fiscal Year Ended | |||||||||||||||||
October 31, | October 31, | |||||||||||||||||
$ | % | $ | % | |||||||||||||||
2018 | 2017 | Change | Change | 2018 | 2017 | Change | Change | |||||||||||
Americas | $ | 28,741 | $ | 23,597 | $ | 5,144 | 22 | % | $ | 90,902 | $ | 75,540 | $ | 15,362 | 20 | % | ||
Europe | 45,492 | 42,714 | 2,778 | 7 | % | 166,202 | 133,671 | 32,531 | 24 | % | ||||||||
Asia Pacific | 8,818 | 9,620 | (802 | ) | -8 | % | 43,567 | 34,456 | 9,111 | 26 | % | |||||||
Total | $ | 83,051 | $ | 75,931 | $ | 7,120 | 9 | % | $ | 300,671 | $ | 243,667 | $ | 57,004 | 23 | % | ||
Sales in the
European sales for the fourth quarter of fiscal 2018 increased by 7%, compared to the corresponding period in fiscal 2017, and included an unfavorable currency impact of less than 1%, when translating foreign sales to U.S. dollars for financial reporting purposes. European sales for fiscal 2018 increased by 24%, compared to fiscal 2017, and included a favorable currency impact of 7%, when translating foreign sales to U.S. dollars for financial reporting purposes. The increases in European sales for the fourth quarter and for fiscal 2018 were primarily due to increased customer demand for
Asian Pacific sales for the fourth quarter of fiscal 2018 decreased by 8%, compared to the corresponding period in fiscal 2017, and included a negative currency impact of 4%, when translating foreign sales to U.S. dollars for financial reporting purposes. The reduction in Asian Pacific sales primarily resulted from a reduction in customer demand for Takumi vertical milling machines in
Orders for the fourth quarter of fiscal 2018 were
The following table sets forth new orders booked by geographic region for the fourth quarter and fiscal year ended
Three Months Ended | Fiscal Year Ended | |||||||||||||||||
October 31, | October 31, | |||||||||||||||||
$ | % | $ | % | |||||||||||||||
2018 | 2017 | Change | Change | 2018 | 2017 | Change | Change | |||||||||||
Americas | $ | 31,255 | $ | 26,526 | $ | 4,729 | 18 | % | $ | 94,160 | $ | 85,070 | $ | 9,090 | 11 | % | ||
Europe | 35,421 | 36,881 | (1,460 | ) | -4 | % | 170,366 | 137,622 | 32,744 | 24 | % | |||||||
Asia Pacific | 6,347 | 10,273 | (3,926 | ) | -38 | % | 41,319 | 37,917 | 3,402 | 9 | % | |||||||
Total | $ | 73,023 | $ | 73,680 | $ | (657 | ) | -1 | % | $ | 305,845 | $ | 260,609 | $ | 45,236 | 17 | % | |
Orders in the
European orders for the fourth quarter of fiscal 2018 decreased by 4%, compared to the corresponding period in fiscal 2017, and included a favorable currency impact of 1%, when translating foreign orders to U.S. dollars. The year-over-year reduction in fourth quarter orders was due primarily to a decrease in customer demand for
Asian Pacific orders for the fourth quarter of fiscal 2018 decreased by 38%, compared to the corresponding prior year period, and included a negative currency impact of 3%, when translating foreign orders to U.S. dollars. The year-over-year decrease in Asian Pacific orders was driven primarily by a reduction in customer demand for
Gross profit for the fourth quarter of fiscal 2018 was
Selling, general and administrative expenses for the fourth quarter of fiscal 2018 were
The effective tax rates for the fourth quarter and fiscal 2018 were 22% and 34%, respectively, compared to 25% and 27% in the corresponding prior year periods. The year-over-year decrease in the effective tax rate for the fourth quarter of fiscal 2018 principally resulted from a shift in geographic mix of income and loss among tax jurisdictions and the impact of a lower U.S. income tax rate compared to the prior year. The year-over-year increase in the effective tax rate for fiscal 2018 was primarily attributable to one-time charges of
Cash and cash equivalents totaled
Certain statements in this news release are forward-looking statements that involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors include, among others, the cyclical nature of the machine tool industry, changes in general economic and business conditions that affect demand for our products, the risks of our international operations, changes in manufacturing markets, innovations by competitors, the ability to protect our intellectual property, breaches of our network and system security measures, fluctuations in foreign currency exchange rates, increases in prices of raw materials, quality and delivery performance by our vendors, our ability to effectively integrate acquisitions, negative or unforeseen tax consequences and governmental actions and initiatives, including import and export restrictions and tariffs.
Contact: | Sonja K. McClelland |
Executive Vice President, Secretary, Treasurer, & Chief Financial Officer | |
317-293-5309 |
Hurco Companies, Inc. | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(In thousands, except per-share data) | |||||||||||||||
Three Months Ended October 31, |
Twelve Months Ended October 31, |
||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(unaudited) | |||||||||||||||
Sales and service fees | $ | 83,051 | $ | 75,931 | $ | 300,671 | $ | 243,667 | |||||||
Cost of sales and service | 55,200 | 52,561 | 208,865 | 173,103 | |||||||||||
Gross profit | 27,851 | 23,370 | 91,806 | 70,564 | |||||||||||
Selling, general and administrative expenses | 16,564 | 14,385 | 58,010 | 49,661 | |||||||||||
Operating income | 11,287 | 8,985 | 33,796 | 20,903 | |||||||||||
Interest expense | 26 | 25 | 100 | 91 | |||||||||||
Interest income | 81 | 9 | 189 | 41 | |||||||||||
Investment income | 159 | 53 | 339 | 138 | |||||||||||
Other expense, net | 860 | 82 | 1,728 | 275 | |||||||||||
Income before taxes | 10,641 | 8,940 | 32,496 | 20,716 | |||||||||||
Provision for income taxes | 2,339 | 2,238 | 11,006 | 5,601 | |||||||||||
Net income | $ | 8,302 | $ | 6,702 | $ | 21,490 | $ | 15,115 | |||||||
Income per common share | |||||||||||||||
Basic | $ | 1.24 | $ | 1.01 | $ | 3.19 | $ | 2.27 | |||||||
Diluted | $ | 1.22 | $ | 1.00 | $ | 3.15 | $ | 2.25 | |||||||
Weighted average common shares outstanding | |||||||||||||||
Basic | 6,719 | 6,635 | 6,700 | 6,615 | |||||||||||
Diluted | 6,792 | 6,723 | 6,771 | 6,680 | |||||||||||
OTHER CONSOLIDATED FINANCIAL DATA | Three Months Ended October 31, |
Twelve Months Ended October 31, |
|||||||||||||
Operating Data: | 2018 | 2017 | 2018 | 2017 | |||||||||||
(unaudited) | |||||||||||||||
Gross margin | 34 | % | 31 | % | 31 | % | 29 | % | |||||||
SG&A expense as a percentage of sales | 20 | % | 19 | % | 19 | % | 20 | % | |||||||
Operating income as a percentage of sales | 14 | % | 12 | % | 11 | % | 9 | % | |||||||
Pre-tax income as a percentage of sales | 13 | % | 12 | % | 11 | % | 9 | % | |||||||
Effective tax rate | 22 | % | 25 | % | 34 | % | 27 | % | |||||||
Depreciation and amortization | $ | 865 | $ | 898 | $ | 3,713 | $ | 3,616 | |||||||
Capital expenditures | $ | 1,289 | $ | 1,078 | $ | 5,863 | $ | 4,445 | |||||||
Balance Sheet Data: | 10/31/2018 | 10/31/2017 | |||||||||||||
Working capital | $ | 194,632 | $ | 175,526 | |||||||||||
Days sales outstanding (unaudited) | 47 | 46 | |||||||||||||
Inventory turns (unaudited) | 1.6 | 1.5 | |||||||||||||
Capitalization | |||||||||||||||
Total debt | $ | 1,434 | $ | 1,507 | |||||||||||
Shareholders' equity | 222,853 | 203,085 | |||||||||||||
Total | $ | 224,287 | $ | 204,592 |
Hurco Companies, Inc. | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(In thousands, except share and per-share data) | |||||||
October 31, | October 31, | ||||||
2018 | 2017 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 77,170 | $ | 66,307 | |||
Accounts receivable, net | 54,414 | 50,094 | |||||
Inventories, net | 137,609 | 119,948 | |||||
Derivative assets | 3,085 | 596 | |||||
Prepaid expenses | 7,332 | 7,913 | |||||
Other | 1,825 | 1,557 | |||||
Total current assets | 281,435 | 246,415 | |||||
Property and equipment: | |||||||
Land | 868 | 841 | |||||
Building | 7,352 | 7,352 | |||||
Machinery and equipment | 26,840 | 25,652 | |||||
Leasehold improvements | 3,801 | 3,503 | |||||
38,861 | 37,348 | ||||||
Less accumulated depreciation and amortization | (25,902 | ) | (25,167 | ) | |||
Total property and equipment | 12,959 | 12,181 | |||||
Non-current assets: | |||||||
Software development costs, less accumulated amortization | 7,452 | 6,226 | |||||
Goodwill | 2,377 | 2,440 | |||||
Intangible assets, net | 938 | 1,076 | |||||
Deferred income taxes | 2,234 | 2,339 | |||||
Investments and other assets, net | 8,012 | 7,131 | |||||
Total non-current assets | 21,013 | 19,212 | |||||
Total assets | $ | 315,407 | $ | 277,808 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 57,518 | $ | 47,638 | |||
Derivative liabilities | 2,020 | 1,732 | |||||
Accrued payroll and employee benefits | 14,032 | 11,210 | |||||
Accrued income taxes | 5,180 | 2,362 | |||||
Accrued expenses | 4,122 | 4,668 | |||||
Accrued warranty | 2,497 | 1,772 | |||||
Short-term debt | 1,434 | 1,507 | |||||
Total current liabilities | 86,803 | 70,889 | |||||
Non-current liabilities: | |||||||
Accrued tax liability | 2,194 | 117 | |||||
Deferred credits and other obligations | 3,557 | 3,717 | |||||
Total non-current liabilities | 5,751 | 3,834 | |||||
Shareholders' equity: | |||||||
Preferred stock: no par value per share; 1,000,000 shares authorized; no shares issued | - | - | |||||
Common stock: no par value; $.10 stated value per share; 12,500,000 shares authorized; | |||||||
6,891,508 and 6,799,006 shares issued; and 6,723,160 and 6,641,197 shares outstanding, | |||||||
as of October 31, 2018 and October 31, 2017, respectively | 672 | 664 | |||||
Additional paid-in capital | 64,185 | 61,344 | |||||
Retained earnings | 167,859 | 149,267 | |||||
Accumulated other comprehensive loss | (9,863 | ) | (8,190 | ) | |||
Total shareholders' equity | 222,853 | 203,085 | |||||
Total liabilities and shareholders' equity | $ | 315,407 | $ | 277,808 |
Source: Hurco Companies, Inc.