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) August 17, 2005
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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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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))
Item
2.02. Results
of Operation and Financial Condition
On
August
17, 2005, Hurco Companies, Inc. (the "Registrant") reported its results of
operations for the third quarter ended July 31, 2005. 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.
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99
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Press
Release dated August 17, 2005
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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:
August 17, 2005
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HURCO
COMPANIES, INC
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By:
/s/
Stephen J. Alesia
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Vice
President and
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Chief
Financial Officer
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EXHIBIT
INDEX
Exhibit
99 Press
Release of Hurco Companies, Inc. dated August 17, 2005
FOR
IMMEDIATE RELEASE
WEDNESDAY,
AUGUST 17, 2005
HURCO
REPORTS THIRD QUARTER 2005 RESULTS
INDIANAPOLIS,
INDIANA, — August 17, 2005—Hurco Companies, Inc. (Nasdaq:HURC)
today
announced that for its third fiscal quarter, which ended July 31, 2005, it
recorded net income of $2,879,000, or $.45 per share, compared to $1,582,000,
or
$.25 per share, for the corresponding quarter of 2004. For the first nine months
of fiscal 2005, Hurco recorded net income of $9,208,000 or $1.46 per share,
compared to $3,988,000, or $.67 per share, for the corresponding 2004 period.
Foreign
currency exchange rates were not materially different in the third quarter
of
fiscal 2005 compared to the same period in the prior year and as a result,
sales
during the quarter were not impacted by foreign currency translation. However,
sales during the first nine months of fiscal 2005 were impacted by foreign
currency translation due to stronger European currencies during the first and
second quarters.
Sales
and
service fees for the third quarter of fiscal 2005 were $29,555,000, an increase
of $5,807,000, or 24%, over the corresponding quarter of 2004. Sales increased
41%, 13% and 44% in the United States, Europe and Asia, respectively.
Approximately 63% of Hurco’s sales during the 2005 period were made outside the
United States compared to 67% in the prior year. Sales
and
service fees for the nine months ended July 31, 2005 totaled $90,791,000, an
increase of $20,070,000, or 28%, over the amount recorded in the prior year.
Approximately $2,751,000, or 14%, of the increase for the nine-month period
was
attributable to the favorable effects of stronger European currencies in
relation to the U.S. dollar during the first and second quarters.
New
order
bookings for the third quarter of fiscal 2005 were $28,892,000, an increase
of
$1,443,000, or 5%, over the third quarter of 2004. Orders in dollars during
the
third quarter increased 6% in the United States and 41% in Asia over the same
period one year ago. Orders in Europe increased slightly during this same
period. For the nine months ended July 31, 2005, new orders increased
$15,368,000, or 21%, over the 2004 period. Approximately $2,684,000, or 17%,
of
the increase for the nine-month period was attributable to the favorable effects
of stronger European currencies in relation to the U.S. dollar during the first
and second quarters. Backlog was $10,566,000 at July 31, 2005, compared to
$11,473,000 at April 30, 2005, and $12,746,000 at October 31, 2004.
Hurco’s
gross margin for the third quarter of fiscal 2005 was 33.4% compared to 30.8%
for the prior year period. The improvement was primarily the result of higher
unit sales. Selling, general and administrative expenses were $6,637,000 for
the
2005 period, an increase of $1,396,000 over the amount recorded for the
corresponding 2004 period.
Operating
income for the third quarter of fiscal 2005 totaled $3,226,000 or 11% of sales
and service fees, compared to $2,072,000, or 9% of sales and service fees,
for
the same period in the prior year.
Total
debt was $4,365,000 at July 31, 2005, and represented 8% of the Company’s total
capitalization, which aggregated $56,237,000. As of July 31, 2005, the Company
had unutilized credit facilities of $10,645,000 available for direct borrowing
or commercial letters of credit.
Michael
Doar, Chief Executive Officer, stated, "We are pleased with the financial
results achieved in the third quarter. Order intake in the United States and
Asia continues to be strong while order rates in Europe were sluggish in the
third quarter. We are looking forward to showcasing our products in September
at
the EMO trade show, the largest metal working trade show in the world, in
Hanover, Germany. I was also pleased with our recent open house in Indianapolis
where over 300 customers attended the event, which featured product
demonstrations and seminars. The enthusiasm our products have received at recent
trade shows confirms the strength of our product line.”
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 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.
Contact:
Stephen J. Alesia
Vice
President & CFO
317-298-2631
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Hurco
Companies, Inc.
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CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
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(In
thousands, except per-share data)
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Three
Months Ended July 31,
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Nine
Months Ended July 31,
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2005
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2004
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2005
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2004
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(unaudited)
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(unaudited)
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Sales
and service fees
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$
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29,555
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$
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23,748
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$
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90,791
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$
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70,721
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Cost
of sales and service
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19,692
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16,435
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60,421
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49,464
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Gross
profit
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9,863
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7,313
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30,370
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21,257
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Selling,
general and administrative expenses
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6,637
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5,241
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19,187
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15,295
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Operating
income
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3,226
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2,072
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11,183
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5,962
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Interest
expense
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79
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113
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248
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374
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Variable
Option Expense
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-
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-
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-
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322
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Other
income (expense), net
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49
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28
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(260
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)
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(119
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)
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Income
before taxes
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3,196
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1,987
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10,675
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5,147
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Provision
for income taxes
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317
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405
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1,467
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1,159
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Net
income
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$
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2,879
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$
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1,582
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$
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9,208
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$
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3,988
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Earnings
per common share
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Basic
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$
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0.46
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$
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0.27
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$
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1.50
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$
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0.70
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Diluted
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$
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0.45
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$
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0.25
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$
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1.46
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$
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0.67
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Weighted
average common shares outstanding
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Basic
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6,206
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5,882
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6,156
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5,722
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Diluted
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6,379
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6,204
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6,325
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5,964
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OTHER
CONSOLIDATED FINANCIAL DATA
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Three
Months Ended July 31,
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Nine
Months Ended July 31,
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|||||||||||
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Operating
Data:
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2005
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2004
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2005
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2004
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(unaudited)
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(unaudited
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)
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Gross
margin
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33.4
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%
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30.8
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%
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33.5
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%
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30.1
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%
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SG&A
expense as a percentage of sales
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22.5
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%
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22.1
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%
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21.1
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%
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21.6
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%
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Operating
income as a percentage of sales
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10.9
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%
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8.7
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%
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12.3
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%
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8.4
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%
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Income
before taxes as a percentage of sales
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10.8
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%
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8.4
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%
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11.8
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%
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7.3
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%
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Depreciation
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323
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291
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945
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932
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Capital
expenditures
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681
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742
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1,756
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1,732
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Balance
Sheet Data:
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7/31/2005
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7/31/2004
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Working
capital (excluding short term debt)
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$
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38,687
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$
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24,698
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Days
sales outstanding
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48
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45
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Inventory
turns
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2.4
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2.5
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Capitalization
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Total
debt
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$
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4,365
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$
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4,953
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Shareholders'
equity
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51,872
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35,906
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Total
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$
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56,237
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$
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40,859
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Hurco
Companies, Inc.
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CONDENSED
CONSOLIDATED BALANCE SHEET
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(In
thousands, except per-share data)
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|||||||
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July
31,
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October
31,
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||||||
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2005
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2004
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||||||
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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
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$
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12,907
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$
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8,249
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Cash
- restricted
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-
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277
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|||||
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Accounts
receivable
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17,563
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17,337
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Inventories
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34,217
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28,937
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Other
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4,049
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1,672
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Total
current assets
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68,736
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56,472
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Property
and equipment:
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|||||||
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Land
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761
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761
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|||||
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Building
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7,240
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7,205
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Machinery
and equipment
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12,986
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12,106
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Leasehold
improvements
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811
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676
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|||||
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21,798
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20,748
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||||||
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Less
accumulated depreciation and amortization
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(13,103
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)
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(12,512
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)
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|||
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8,695
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8,236
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||||||
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Software
development costs, less amortization
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3,279
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2,920
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|||||
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Investments
and other assets
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5,970
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5,818
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|||||
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$
|
86,680
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$
|
73,446
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||||
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LIABILITIES
AND SHAREHOLDERS' EQUITY
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|||||||
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Current
liabilities:
|
|||||||
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Accounts
payable
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$
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18,363
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$
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18,361
|
|||
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Accrued
expenses
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11,686
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11,447
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|||||
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Current
portion of long-term debt
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323
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317
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|||||
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Total
current liabilities
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30,372
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30,125
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Non-current
liabilities:
|
|||||||
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Long-term
debt
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4,042
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4,283
|
|||||
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Deferred
credits and other obligations
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394
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583
|
|||||
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Total
liabilities
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34,808
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34,991
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|||||
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Shareholders'
equity:
|
|||||||
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Preferred
stock: no par value per share; 1,000,000 shares
|
-
|
-
|
|||||
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authorized;
no shares issued
|
|||||||
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Common
stock: no par value; $.10 stated value per share;
|
|||||||
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12,500,000
shares authorized; and 6,213,820 and
|
|||||||
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6,019,594
shares issued, respectively
|
621
|
602
|
|||||
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Additional
paid-in capital
|
47,519
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46,778
|
|||||
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Retained
earnings (deficit)
|
5,766
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(3,442
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)
|
||||
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Accumulated
other comprehensive income
|
(2,034
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)
|
(5,483
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)
|
|||
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Total
shareholders' equity
|
51,872
|
38,455
|
|||||
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$
|
86,680
|
$
|
73,446
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