SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): August 20, 2003
HURCO COMPANIES, INC.
(Exact name of registrant as specified in its charter)
INDIANA 0-9143 35-1150732
(State or other jurisdiction (Commission File No.) (I.R.S. Employer
of incorporation or organization) Identification No.)
ONE TECHNOLOGY WAY
INDIANAPOLIS, INDIANA 46268
(Address of principal executive offices and zip code)
(317) 293-5309
(Registrants' telephone number, including area code)
NOT APPLICABLE
(Former name or former address, if changed since last report)
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On August 20, 2003, Hurco Companies, Inc. (the "Registrant") reported
its results of operations for the third quarter ended July 31, 2003. The
Registrant's earnings release for the quarter is attached as Exhibit 99(a) 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 12 of Form 8-K.
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: August 20, 2003
HURCO COMPANIES, INC.
By: /s/ Roger J. Wolf
--------------------------
Roger J. Wolf
Senior Vice President and
Chief Financial Officer
Exhibit 99(a)
FOR IMMEDIATE RELEASE
Wednesday, August 20, 2003
HURCO REPORTS THIRD QUARTER 2003 RESULTS
INDIANAPOLIS, INDIANA, -- August 20, 2003 -- Hurco Companies, Inc. (Nasdaq:HURC)
today announced that, for its third fiscal quarter, which ended July 31, 2003,
the Company recorded a profit of $331,000, or $.06 per share, compared to a loss
of $651,000, or $.12 per share, for the corresponding period a year ago. For the
first nine months of fiscal 2003, the Company recorded a loss of $112,000, or
$.02 per share, compared to a loss of $6,503,000, or $1.16 per share, for the
corresponding 2002 period.
Sales and service fees for the third fiscal quarter were $18,354,000,
slightly higher than the $18,204,000 recorded in the corresponding 2002 period.
Sales and service fees reported in U.S. dollars benefited from significantly
stronger European currencies, when translating foreign sales for financial
reporting purposes. When measured at constant exchange rates, sales and service
fees decreased $1,485,000, or 8.2%, from the prior year period, due primarily to
reduced shipments in Europe. For the first nine months of fiscal 2003, sales and
service fees were $51,760,000, slightly better than the $51,719,000 recorded a
year ago. When measured at constant exchange rates, sales and service fees for
the nine months declined approximately $4,800,000, or 9.3%, from the 2002
period, due to reduced shipments in Europe.
New order bookings were $18,909,000, an increase of 7.3% from the
$17,629,000 recorded in the third quarter of fiscal 2002. Backlog was $7,280,000
at July 31, 2003, compared to $6,760,000 at April 30, 2003, and $5,316,000 at
October 31, 2002.
Gross margins increased to 27.6% from 24.1% in the comparable prior
year period. Selling, general and administrative expenses were $4,332,000, a
reduction of $340,000, or 7.3%, from the third quarter of fiscal 2002.
Total debt was $10,334,000 at July 31, 2003, as compared to $8,516,000
at April 30, 2003, and constituted 27% of total capitalization. As of July 31,
2003, the Company had unutilized credit facilities of $4,921,000 available for
direct borrowing or commercial letters of credit.
Michael Doar, Chief Executive Officer stated, "We continue to be
encouraged by earning a small profit in the third quarter. We see evidence of
the start of an economic recovery in the U.S., but we believe it will take
several more quarters before we see a significant improvement in machine tool
orders. As the U.S. orders begin to improve, we believe our European orders will
also improve, although not as quickly as in the U.S.
While we are pleased to post two consecutive profitable quarters, we
are not satisfied that year to date we are still showing a loss. We believe a
major reason that we have been profitable the last two quarters is our on-going
focus on reducing operating expenses. Operating expenses year to date are
$1,098,000 less than for the same three quarters last year. We will continue to
look for ways to reduce expenses."
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 High Wycombe,
England; Munich, Germany; Paris, France; Milan, Italy; Shanghai, China and
Singapore, along with manufacturing operations in Taiwan. Products are sold
primarily through independent agents and distributors in the United States,
Europe and Asia. The Company also has direct sales forces in the United Kingdom,
Germany, France, Italy, and Asia.
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, 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, quality and
delivery performance by our contract manufacturers and governmental actions and
initiatives including import and export restrictions and tariffs.
Hurco Companies, Inc.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per-share data)
Three Months Ended Nine Months Ended
July 31, July 31,
2003 2002 2003 2002
(unaudited) (unaudited)
Sales and service fees $ 18,354 $ 18,204 $ 51,760 $ 51,719
Cost of sales and service 13,280 13,823 37,564 40,369
Cost of sales - restructuring - - - 1,083
--------- --------- --------- ---------
Gross profit 5,074 4,381 14,196 10,267
Selling, general and administrative expenses 4,332 4,672 13,323 14,421
Restructuring expense (credit) and other - - - 1,751
--------- --------- --------- ---------
Operating income (loss) 742 (291) 873 (5,905)
License fee income, net - - - 163
Interest expense 167 159 476 469
Other income (expense), net (43) (47) 5 (10)
--------- --------- --------- ---------
Income (loss) before taxes 532 (497) 402 (6,221)
Provision for income taxes 201 154 514 282
--------- --------- --------- ---------
Net income (loss) $ 331 $ (651) $ (112) $ (6,503)
========= ========= ========= =========
Earnings (loss) per common share
Basic $ 0.06 $ (0.12) $ (0.02) $ (1.16)
========= ========= ========= =========
Diluted $ 0.06 $ (0.12) $ (0.02) $ (1.16)
========= ========= ========= =========
Weighted average common shares outstanding
Basic 5,583 5,583 5,583 5,583
========= ========= ========= =========
Diluted 5,630 5,583 5,583 5,583
========= ========= ========= =========
OTHER CONSOLIDATED FINANCIAL DATA Three Months Ended Nine Months Ended
July 31, July 31,
Operating Data: 2003 2002 2003 2002
(unaudited) (unaudited)
Gross margin, excluding restructuring charges 27.6% 24.1% 27.4% 21.9%
SG&A expense as a percentage of sales 23.6% 25.7% 25.7% 27.9%
Operating income (loss) as a percentage of sales 4.0% -1.6% 1.7% -11.4%
Pre-tax income (loss) as a percentage of sales 2.9% -2.7% 0.8% -12.0%
Depreciation 358 485 1,073 1,475
Capital expenditures 338 612 835 1,513
Balance Sheet Data: 7/31/2003 7/31/2002
Working capital (excluding short term debt) $23,448 $22,476
Days sales outstanding 45 51
Inventory turns 1.9 2.4
Net assets per $ of revenue (trailing twelve months)
Working capital, net $ 0.33 $ 0.27
All other 0.21 0.23
------- -------
Total $ 0.54 $ 0.50
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Hurco Companies, Inc.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands, except per-share data)
July 31, 2003 October 31, 2002
(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 3,227 $ 4,358
Cash - restricted 521 -
Accounts receivable 11,545 13,425
Inventories 26,018 22,548
Other 1,851 1,204
------- -------
Total current assets 43,162 41,535
Property and equipment:
Land 761 761
Building 7,221 7,203
Machinery and equipment 10,469 10,144
Leasehold improvements 503 396
------- -------
18,954 18,504
Less accumulated depreciation and amortization (10,494) (9,696)
------- -------
8,460 8,808
Software development costs, less amortization 1,787 1,604
Investments and other assets 5,071 5,205
------- -------
$ 58,480 $ 57,152
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 11,318 $ 9,856
Accrued expenses 8,396 10,016
Bank debt - current 4,673 -
Current portion of long-term debt 981 1,313
------- -------
Total current liabilities 25,368 21,185
Non-current liabilities:
Long-term debt 4,680 7,572
Deferred credits and other obligations 446 378
------- -------
Total liabilities 30,494 29,135
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; and 5,583,158 and
5,583,158 shares issued, respectively 558 558
Additional paid-in capital 44,717 44,717
Accumulated deficit (10,285) (10,173)
Accumulated other comprehensive income (7,004) (7,085)
------- -------
Total shareholders' equity 27,986 28,017
------- -------
$ 58,480 $ 57,152
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