UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
8-K
CURRENT
REPORT PURSUANT
TO
SECTION 13 OR 15(D) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date of report (Date of earliest event
reported) February 27, 2009
|
Hurco
Companies, Inc.
|
||
|
(Exact
Name of Registrant as Specified in Its Charter
|
||
|
Indiana
|
||
|
(State
or Other Jurisdiction of Incorporation
|
||
|
0-9143
|
35-1150732
|
|
|
(Commission
File Number)
|
(I.R.S.
Employer Identification Number)
|
|
|
One
Technology Way
|
||
|
Indianapolis,
Indiana
|
46268
|
|
|
(Address
of principal executive offices)
|
(Zip
code)
|
|
|
(317)
293-5309
|
||
|
(Registrant’s
Telephone Number, Including Area Code
|
||
|
Not
Applicable
|
||
|
(Former
Name or Former Address, if Changed Since Last
Report)
|
||
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions (see General Instruction A.2.
below):
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item
2.02. Results
of Operation and Financial Condition
On
February 27, 2009, Hurco Companies, Inc. (the "Registrant") reported its results
of operations for the first quarter ended January 31, 2009. The
Registrant's earnings release for the period is attached as Exhibit 99 and the
information set forth therein is incorporated herein by reference and
constitutes a part of this report. The attached Exhibit is furnished
pursuant to Item 2.02 of Form 8-K.
Item
9.01 Financial
Statements and Exhibits.
|
|
99
|
Press
Release dated February 27, 2009
|
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
Dated: February
27, 2009
|
|
|
HURCO
COMPANIES, INC.
|
|
|
By: /s/John G. Oblazney
|
|
|
John
G. Oblazney,
Vice
President and
|
|
|
Chief
Financial Officer
|
EXHIBIT
INDEX
Exhibit
99 Press
Release of Hurco Companies, Inc. dated February 27, 2009
FOR
IMMEDIATE RELEASE
FRIDAY,
FEBRUARY 27, 2009
HURCO
REPORTS FIRST QUARTER FINANCIAL RESULTS
INDIANAPOLIS, INDIANA, — February 27,
2009, Hurco Companies, Inc., (Nasdaq, Global Select Market: HURC) today
reported net income of $354,000, or $0.05 per diluted share for its first
quarter ended January 31, 2009, which is a decrease of 95% from net income of
$7,805,000, or $1.21 per diluted share, reported for the corresponding period in
fiscal 2008.
Sales and
service fees for the first quarter of fiscal 2009 totaled $28,307,000, a
decrease of $32,616,000, or 54%, compared to the first quarter of fiscal
2008. The effect of a stronger U.S. dollar when translating foreign
sales to U.S. dollars for financial reporting purposes had an unfavorable impact
of approximately 5%, or $2,896,000, on the period-to-period
comparison.
The
following table sets forth net sales and service fees by geographic region for
the first quarter of fiscal 2009 and 2008 (in thousands):
Net Sales
and Service Fees by Geographic Region
|
Three
Months Ended
January
31,
|
||||||||||||
|
2009
|
2008
|
%
Change
|
||||||||||
|
North
America
|
$ | 9,636 | $ | 13,079 | -26 | % | ||||||
|
Europe
|
18,060 | 45,052 | -60 | % | ||||||||
|
Asia
Pacific
|
611 | 2,792 | -78 | % | ||||||||
|
Total
|
$ | 28,307 | $ | 60,923 | -54 | % | ||||||
Sales
were down sharply across all regions due to the current economic disruption that
has had an adverse effect on all markets around the world. In
addition to declining volume and the impact of currency translation,
approximately 15% of the sales decline was attributable to a drop in sales of
VMX machines in the Europe sales region.
New order
bookings in the first quarter of fiscal 2009, were $24,516,000, a decrease of
$36,631,000, or 60%, compared to the prior year period. Orders in the
North America, Europe and Asia Pacific regions decreased $3,655,000, or 30%,
$30,754,000, or 67% and $2,222,000, or 79%, respectively. The decline
in orders we experienced at the end of fiscal 2008 continued and became worse as
our customers, consisting primarily of small job shops, reacted to the sudden
downturn in the markets they serve. The impact of currency
translation on new orders booked for the first quarter was consistent with the
impact on sales.
Hurco’s
gross margin for the first quarter of fiscal 2009 was 30%, compared to 41% for
the 2008 period. The decrease in margin rate was primarily due to
lower volume and the reduction in sales of VMX machines in the Europe sales
region. Selling, general and administrative expenses were $8,029,000
for the first quarter of fiscal 2009, a decrease of $4,347,000, or 35%, from the
2008 period, reflecting lower sales commissions, cost reduction initiatives and
the favorable effect of a stronger U.S. Dollar during the 2009 period when
translating foreign operating expenses for financial reporting
purposes.
Hurco’s
effective tax rate for the first quarter of fiscal 2009 of approximately 36% was
relatively unchanged compared to the same period in the prior year.
Cash and
cash equivalents totaled $30,126,000 as of January 31, 2009, compared to cash
and cash equivalents and short term investments of $33,068,000 as of October 31,
2008. Hurco had no borrowings outstanding on its $30 million
unsecured revolving credit facility.
Michael
Doar, Chief Executive Officer, stated, "The steep drop in sales we experienced
last quarter is a clear reflection of the impact that current economic
conditions are having on a worldwide basis. In a period of economic
uncertainty, investments in capital equipment are being deferred or
cut. In addition, customers who want to purchase capital goods are
finding it difficult to secure financing due to tight credit market
conditions."
"During
this global economic downturn, it’s important to identify what we have done
right and what we can do better. We are fortunate to have weathered past
downturns in our 40-year history. From that experience, we learned
valuable lessons that have eased the impact of current economic conditions. We
learned to embrace our fiscally conservative culture and we learned the value of
strategic planning. Because of this experience, we have a strong balance
sheet with cash reserves that enables us to stay committed to our strategic plan
of product innovation and targeted penetration of developing markets. We
continue to review internal processes to identify new efficiencies that can be
realized through further cost-reduction initiatives. While we can’t
predict the future, we are adequately prepared to adapt to the challenges and
opportunities that may be encountered.”
Hurco
Companies, Inc. is an industrial technology company that designs and produces
interactive computer controls, software and computerized machine tools for the
worldwide metal cutting and metal forming industry. The end market
for the Company's products consists primarily of independent job shops and
short-run manufacturing operations within large corporations in industries such
as the aerospace, defense, medical equipment, energy, transportation and
computer equipment. The Company is based in Indianapolis, Indiana,
and has sales, application engineering and service subsidiaries in Mississauga,
Canada; Shanghai, China; High Wycombe, England; Paris, France; Munich, Germany;
Chennai, India; Milan, Italy; and Singapore, along with manufacturing operations
in Taiwan and China. Products are sold through independent agents and
distributors in North America, Europe and Asia. The Company also has
direct sales forces in the Canada, France, Germany, Italy, Singapore and the
United Kingdom.
Web
Site: www.hurco.com
This
news release contains forward looking statements which 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 impact of the
current global economic crisis, including disruption in credit markets, other
changes in general economic and business conditions that affect demand for
computerized machine systems, computer numerical control systems and software
products, changes in manufacturing markets, innovations by competitors, our
ability to protect our intellectual property, fluctuations in exchange rates,
fluctuations in prices of raw materials, changes in market demands, quality and
delivery performance by our contract manufacturers and governmental actions and
initiatives including import and export restrictions and tariffs.
Contact: John
Oblazney
Vice President
& Chief Financial Officer
317-293-5309
|
HURCO
COMPANIES, INC.
|
||||||||
|
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
|
||||||||
|
(In
thousands, except per-share data)
|
||||||||
|
Three
Months Ended
January
31,
|
||||||||
|
2009
|
2008
|
|||||||
|
(unaudited)
|
||||||||
|
Sales
and service fees
|
$ | 28,307 | $ | 60,923 | ||||
|
Cost
of sales and service
|
19,765 | 36,066 | ||||||
|
Gross
profit
|
8,542 | 24,857 | ||||||
|
Selling,
general and administrative expenses
|
8,029 | 12,376 | ||||||
|
Operating
income
|
513 | 12,481 | ||||||
|
Interest
expense
|
23 | 11 | ||||||
|
Interest
Income
|
104 | 149 | ||||||
|
Investment
Income
|
28 | 172 | ||||||
|
Other
expense, net
|
73 | 464 | ||||||
|
Income
before taxes
|
549 | 12,327 | ||||||
|
Provision
for income taxes
|
195 | 4,522 | ||||||
|
Net
income
|
$ | 354 | $ | 7,805 | ||||
|
Earnings
per common share
|
||||||||
|
Basic
|
$ | 0.06 | $ | 1.22 | ||||
|
Diluted
|
$ | 0.05 | $ | 1.21 | ||||
|
Weighted
average common shares outstanding
|
||||||||
|
Basic
|
6,421 | 6,401 | ||||||
|
Diluted
|
6,438 | 6,433 | ||||||
|
OTHER
CONSOLIDATED FINANCIAL DATA
|
Three
Months Ended January 31,
|
|||||||
|
Operating
Data:
|
2009
|
2008
|
||||||
|
(unaudited)
|
||||||||
|
Gross
margin
|
30.2 | % | 40.8 | % | ||||
|
SG&A
expense as a percentage of sales
|
28.4 | % | 20.3 | % | ||||
|
Operating
income as a percentage of sales
|
1.8 | % | 20.5 | % | ||||
|
Pre-tax
income as a percentage of sales
|
1.9 | % | 20.2 | % | ||||
|
Effective
Tax Rate
|
35.5 | % | 36.7 | % | ||||
|
Depreciation
|
791 | 683 | ||||||
|
Capital
expenditures
|
1,351 | 1,147 | ||||||
|
Balance
Sheet Data:
|
1/31/2009
|
10/31/2008
|
||||||
|
Working
capital (excluding cash and short term debt)
|
$ | 69,170 | $ | 73,789 | ||||
|
Days
sales outstanding
|
57 | 39 | ||||||
|
Inventory
turns
|
1.9 | 2.0 | ||||||
|
Capitalization
|
||||||||
|
Total
debt
|
$ | - | $ | - | ||||
|
Shareholders'
equity
|
123,051 | 123,477 | ||||||
|
Total
|
$ | 123,051 | $ | 123,477 | ||||
|
HURCO
COMPANIES, INC.
|
||||||||
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
||||||||
|
(In
thousands, except share and per-share data)
|
||||||||
|
January
31,
|
October
31,
|
|||||||
|
2009
|
2008
|
|||||||
|
(unaudited)
|
(audited)
|
|||||||
|
ASSETS
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 30,126 | $ | 26,394 | ||||
|
Short-term
investments
|
- | 6,674 | ||||||
|
Accounts
receivable, net
|
18,587 | 31,952 | ||||||
|
Inventories,
net
|
63,294 | 66,368 | ||||||
|
Deferred
tax assets, net
|
6,489 | 5,444 | ||||||
|
Derivative
assets
|
8,762 | 12,463 | ||||||
|
Other
|
1,824 | 2,017 | ||||||
|
Total
current assets
|
129,082 | 151,312 | ||||||
|
Property
and equipment:
|
||||||||
|
Land
|
782 | 782 | ||||||
|
Building
|
7,127 | 7,127 | ||||||
|
Machinery
and equipment
|
15,396 | 14,885 | ||||||
|
Leasehold
improvements
|
1,827 | 1,765 | ||||||
| 25,132 | 24,559 | |||||||
|
Less
accumulated depreciation and amortization
|
(11,300 | ) | (10,961 | ) | ||||
| 13,832 | 13,598 | |||||||
|
Non-current
assets:
|
||||||||
|
Software
development costs, less accumulated amortization
|
5,967 | 5,711 | ||||||
|
Other
assets
|
6,825 | 6,823 | ||||||
| $ | 155,706 | $ | 177,444 | |||||
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable
|
$ | 14,587 | $ | 28,303 | ||||
|
Derivative
liabilities
|
3,094 | 2,692 | ||||||
|
Accrued
expenses
|
12,105 | 20,134 | ||||||
|
Total
current liabilities
|
29,786 | 51,129 | ||||||
|
Non-current
liabilities:
|
||||||||
|
Deferred
tax liability, net
|
2,083 | 2,056 | ||||||
|
Deferred
credits and other obligations
|
786 | 782 | ||||||
|
Total
liabilities
|
32,655 | 53,967 | ||||||
|
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;
|
||||||||
|
13,250,000
shares authorized; and 6,420,851 and
|
||||||||
|
6,392,220
shares issued, respectively
|
642 | 642 | ||||||
|
Additional
paid-in capital
|
51,747 | 51,690 | ||||||
|
Retained
earnings
|
72,243 | 71,889 | ||||||
|
Accumulated
other comprehensive income
|
(1,581 | ) | (744 | ) | ||||
|
Total
shareholders' equity
|
123,051 | 123,477 | ||||||
| $ | 155,706 | $ | 177,444 | |||||