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) May 18, 2006
|
Hurco
Companies, Inc.
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(Exact
Name of Registrant as Specified in Its
Charter
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Indiana
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(State
or Other Jurisdiction of
Incorporation
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0-9143
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35-1150732
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(Commission
File Number)
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(I.R.S.
Employer Identification Number)
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One
Technology Way
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||
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Indianapolis,
Indiana
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46268
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(Address
of principal executive offices)
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(Zip
code)
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(317)
293-5309
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(Registrant’s
Telephone Number, Including Area
Code
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Not
Applicable
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(Former
Name or Former Address, if Changed Since Last
Report)
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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))
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Item
2.02.
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Results
of Operation and Financial
Condition
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On
May
18, 2006, Hurco Companies, Inc. (the "Registrant") reported its results of
operations for the second quarter ended April 30, 2006. 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.
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Item
9.01
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Financial
Statements and Exhibits.
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99
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Press
Release dated May 18, 2006
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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.
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Dated:
May 18, 2006
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HURCO
COMPANIES, INC
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|||
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By:
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/s/
Stephen J. Alesia
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Vice
President and
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|||
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Chief
Financial Officer
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EXHIBIT
INDEX
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Press
Release of Hurco Companies, Inc. dated May 18,
2006
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FOR
IMMEDIATE RELEASE
THURSDAY,
MAY 18, 2006
HURCO
REPORTS RECORD SALES AND OPERATING INCOME IN ITS SECOND QUARTER 2006
RESULTS
INDIANAPOLIS,
INDIANA, — May 18, 2006—Hurco Companies, Inc. (Nasdaq:HURC)
today
announced that for its second fiscal quarter, which ended April 30, 2006, it
recorded net income of $3,929,000, or $.62 per share, compared to $3,299,000,
or
$.52 per share, for the corresponding quarter of 2005. For the first six months
of fiscal 2006, Hurco recorded net income of $6,962,000 or $1.09 per share,
compared to $6,329,000 or $1.00 per share, for the corresponding 2005
period.
The
company noted that its provision for income taxes increased from prior periods
by approximately $1,500,000 during the second quarter of fiscal 2006 and
$2,700,000 for the six month period, due primarily to the company’s prior
utilization of substantially all of its domestic net operating loss
carryforwards. Income before taxes for the latest quarter was $6,179,000, an
increase of 51% over the $4,080,000 reported in the same period one year ago.
Sales
and
service fees for the second quarter of fiscal 2006 were the highest in the
company’s history and totaled $36,861,000, an increase of $5,871,000, or 19%,
from the amount recorded in the corresponding quarter of 2005, which was also
a
record at that time. Due to the effects of a stronger U.S. Dollar when
translating foreign sales for financial reporting purposes, sales and service
fees for the second quarter of fiscal 2006 were approximately $1,600,000 less
than would have been the case if foreign sales had been translated at the same
rate of exchange that was utilized for the second quarter of 2005. The company
attributed the significant growth in its second quarter revenues to a 27%
increase in unit sales of its higher margin VMX computerized machine tools,
which was most pronounced in the United States and Europe. Sales and Service
fees for the six months ended April 30, 2006 totaled $68,755,000, an increase
of
$7,519,000, or 12%. Sales and service fees for the six months were unfavorably
affected by approximately $3,400,000 due to currency translation.
New
orders booked in the second quarter of fiscal 2006 totaled $36,990,000, an
increase of $4,058,000, or 12%, from the amount recorded in the second quarter
of 2005. For the six months ended April 30, 2006, new orders totaled
$74,721,000, an increase of $14,904,000, or 25%, over the 2005 amount. The
impact of currency translation on new orders booked was consistent with the
impact on sales and service fees.
Gross
margin for the second quarter of fiscal 2006 was 35.8% compared to 34.7% for
the
prior year period. The improvement was primarily due to the increased unit
sales
partially offset by the unfavorable effects of a strengthening U.S. Dollar
compared to the prior year period. Selling, general and administrative expenses
were $7,140,000 for the 2006 period, an increase of $777,000, or 12%, over
the
amount recorded for the corresponding 2005 period, primarily due to increased
sales and marketing expenses.
Operating
income for the second quarter of fiscal 2006 was a record for Hurco and totaled
$6,039,000 or 16% of sales and service fees, compared to $4,404,000, or 14%
of
sales and service fees, for the same period in the prior year.
Michael
Doar, Chief Executive Officer, stated, "The financial results for our second
quarter are very satisfying. Our sales and service fees reached record levels
and orders remained strong. We are continuing to increase our production
capacity to fulfill orders received in the first half of fiscal 2006 and future
orders.”
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 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 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.
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Contact:
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Stephen
J. Alesia
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Vice
President & CFO
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317-293-5309
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Hurco
Companies, Inc.
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
(In
thousands, except per-share data)
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Three
Months Ended
April
30,
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Six
Months Ended
April
30,
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||||||||||||
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2006
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2005
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2006
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2005
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|||||||||
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(unaudited)
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(unaudited)
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||||||||||||
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Sales
and service fees
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$
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36,861
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$
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30,990
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$
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68,755
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$
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61,236
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|||||
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Cost
of sales and service
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23,682
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20,223
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44,649
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40,729
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|||||||||
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Gross
profit
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13,179
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10,767
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24,106
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20,507
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|||||||||
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Selling,
general and administrative expenses
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7,140
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6,363
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13,436
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12,550
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|||||||||
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Operating
income
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6,039
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4,404
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10,670
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7,957
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|||||||||
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Interest
expense
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80
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86
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164
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169
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|||||||||
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Other
income (expense), net
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220
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(238
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)
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325
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(309
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)
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|||||||
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Income
before taxes
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6,179
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4,080
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10,831
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7,479
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|||||||||
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Provision
for income taxes
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2,250
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781
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3,869
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1,150
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|||||||||
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Net
income
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$
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3,929
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$
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3,299
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$
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6,962
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$
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6,329
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|||||
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Earnings
per common share
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|||||||||||||
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Basic
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$
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0.62
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$
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0.53
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$
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1.11
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$
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1.03
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|||||
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Diluted
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$
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0.62
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$
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0.52
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$
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1.09
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$
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1.00
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|||||
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Weighted
average common shares outstanding
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|||||||||||||
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Basic
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6,291
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6,193
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6,291
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6,131
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|||||||||
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Diluted
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6,377
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6,370
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6,377
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6,307
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|||||||||
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OTHER
CONSOLIDATED FINANCIAL DATA
|
Three
Months Ended
April
30,
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Six
Months Ended
April
30,
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|||||||||||
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Operating
Data:
|
2006
|
2005
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2006
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2005
|
|||||||||
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(unaudited)
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(unaudited)
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||||||||||||
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Gross
margin
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35.8
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%
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34.7
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%
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35.1
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%
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33.5
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%
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|||||
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SG&A
expense as a percentage of sales
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19.4
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%
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20.5
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%
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19.5
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%
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20.5
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%
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|||||
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Operating
income as a percentage of sales
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16.4
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%
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14.2
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%
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15.5
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%
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13.0
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%
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|||||
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Income
before taxes as a percentage of sales
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16.8
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%
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13.2
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%
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15.8
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%
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12.2
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%
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|||||
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Effective
Tax Rate
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36.4
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%
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19.1
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%
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35.7
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%
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15.4
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%
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|||||
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Depreciation
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367
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305
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732
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622
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|||||||||
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Capital
expenditures
|
704
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452
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1,196
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1,075
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|||||||||
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Balance
Sheet Data:
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4/30/2006
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4/30/2005
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|||||||||||
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Working
capital (excluding short term debt)
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$
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50,761
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$
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35,504
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|||||||||
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Days
sales outstanding
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45
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44
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|||||||||||
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Inventory
turns
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2.5
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2.3
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|||||||||||
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Capitalization
|
|||||||||||||
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Total
debt
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$
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4,074
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$
|
4,395
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|||||||||
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Shareholders'
equity
|
67,624
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48,246
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|||||||||||
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Total
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$
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71,698
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$
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52,641
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|||||||||
Hurco
Companies, Inc.
CONDENSED
CONSOLIDATED BALANCE SHEET
(In
thousands, except per-share data)
|
April
30,
|
October
31,
|
||||||
|
|
2006
|
2005
|
|||||
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(unaudited)
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(audited)
|
||||||
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ASSETS
|
|||||||
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Current
assets:
|
|||||||
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Cash
and cash equivalents
|
$
|
24,210
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$
|
17,559
|
|||
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Accounts
receivable
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24,631
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20,100
|
|||||
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Inventories
|
36,308
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29,530
|
|||||
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Deferred
tax assets, net
|
2,267
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3,043
|
|||||
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Other
|
4,072
|
3,586
|
|||||
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Total
current assets
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91,488
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73,818
|
|||||
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Property
and equipment:
|
|||||||
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Land
|
761
|
761
|
|||||
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Building
|
7,234
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7,205
|
|||||
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Machinery
and equipment
|
13,533
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13,170
|
|||||
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Leasehold
improvements
|
1,111
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1,102
|
|||||
|
22,639
|
22,238
|
||||||
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Less
accumulated depreciation and amortization
|
(13,765
|
)
|
(13,187
|
)
|
|||
|
8,874
|
9,051
|
||||||
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Deferred
tax assets, net
|
1,303
|
1,346
|
|||||
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Software
development costs, less amortization
|
4,471
|
3,752
|
|||||
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Investments
and other assets
|
6,796
|
6,147
|
|||||
|
$
|
112,932
|
$
|
94,114
|
||||
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|||||||
|
Current
liabilities:
|
|||||||
|
Accounts
payable
|
$
|
28,023
|
$
|
17,051
|
|||
|
Accrued
expenses
|
12,704
|
13,584
|
|||||
|
Current
portion of long-term debt
|
131
|
126
|
|||||
|
Total
current liabilities
|
40,858
|
30,761
|
|||||
|
Non-current
liabilities:
|
|||||||
|
Long-term
debt
|
3,943
|
4,010
|
|||||
|
Deferred
credits and other obligations
|
507
|
399
|
|||||
|
Total
liabilities
|
45,308
|
35,170
|
|||||
|
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 6,341,020 and 6,220,220 shares issued,
respectively
|
634
|
622
|
|||||
|
Additional
paid-in capital
|
49,727
|
48,701
|
|||||
|
Retained
earnings
|
19,962
|
13,001
|
|||||
|
Accumulated
other comprehensive income
|
(2,699
|
)
|
(3,380
|
)
|
|||
|
Total
shareholders' equity
|
67,624
|
58,944
|
|||||
|
$
|
112,932
|
$
|
94,114
|
||||