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) December 6, 2006
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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
December 6, 2006, Hurco Companies, Inc. (the "Registrant") reported its results
of operations for the fourth quarter ended October 31, 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.
Item
9.01 Financial
Statements and Exhibits.
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99
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Press
Release dated December 6, 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:
December 6, 2006
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HURCO
COMPANIES, INC
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By:
/s/
John G. Oblazney
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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 December 6, 2006
FOR
IMMEDIATE RELEASE
WEDNESDAY,
DECEMBER 6, 2006
HURCO
REPORTS RECORD FULL-YEAR AND FOURTH QUARTER RESULTS
INDIANAPOLIS,
INDIANA, — December 6, 2006—Hurco
Companies, Inc. (Nasdaq, Global Select Market:HURC) announced today that it’s
net sales for fiscal 2006 were the highest in the company’s 37-year history,
totaling $148,517,000, an increase of $23,008,000, or 18%, over fiscal 2005.
Net
sales for the fourth quarter of fiscal 2006 also were a record and totaled
$43,164,000, an increase of $8,446,000, or 24%, over the corresponding 2005
period.
Operating
income for fiscal 2006 was a record $22,628,000, or 15.2% of sales, compared
to
$16,501,000, or 13.1% of sales, in fiscal 2005. Operating income in the fourth
quarter totaled $6,515,000, or 15.1% of sales, compared to $5,318,000, or 15.3%
of sales, in the same period one year ago.
Net
income for fiscal 2006 was $15,479,000, or $2.42 per share reflecting the fact
that Hurco was fully taxable in 2006 and incurred income tax expense of
$7,635,000. In contrast Hurco had no income tax expense in 2005 due to the
utilization of domestic net operating loss carryforwards and therefore, net
income for fiscal 2005 was $16,443,000, or $2.60 per share. Net income for
fourth quarter of fiscal 2006 was $4,714,000, or $.74 per share compared to
net
income of $7,235,000, or $1.13 per share.
New
order
bookings in fiscal 2006, were a record $154,767,000, an increase of $31,905,000,
or 26%, over the prior year. Unit orders increased by 33% in the United States,
29% in Europe and 68% in Asia. New order bookings for the fourth quarter of
fiscal 2006, also a record, totaled $42,087,000, an increase of $7,932,000,
or
23%, over the corresponding 2005 period.
The
financial statement impact of translating foreign currency denominated sales
and
orders to US dollars was an insignificant amount for the fourth quarter and
full
fiscal year.
Hurco’s
gross margin for fiscal 2006 was 35.9% compared to 33.9% for the prior year,
reflecting both higher unit sales and improved mix. Gross margin for the fourth
quarter of fiscal 2006 was 38.0% compared to 35.1% for the corresponding 2005
period. Selling, general and administrative expenses were $30,697,000 for fiscal
2006, an increase of $4,640,000 over the amount for fiscal 2005. Selling,
general and administrative expenses were $9,869,000 for the fourth quarter
of
fiscal 2006, an increase of $2,999,000 over the amount recorded for the same
period in 2005. The increase in selling, general and administrative expenses
for
the fourth quarter and the fiscal year 2006 were primarily attributable to
increased sales and marketing expenses for local and international trade shows,
agent’s commissions, and expansion of sales in emerging markets.
Cash
and
cash equivalents totaled $29,846,000 at October 31, 2006 compared to $17,559,000
at October 31, 2005 and $24,504,000 at the third quarter ending July 31, 2006.
Total debt was $4,010,000 at October 31, 2006 and represented 5.1% of the
company’s total capitalization, which aggregated $79,385,000.
Michael
Doar, Chief Executive Officer, stated, "This was another great year for Hurco
as
we achieved even higher milestones, putting the company in the best financial
position in it’s history. Much of our success is due to the strategic planning
that began in 2001. Focusing on our core competencies, we have centered our
efforts around three objectives: identifying our customers and understanding
how
to best serve them; defining our unique selling proposition by understanding
what we do better than anyone else; and maximizing profits for both the short
term and the long term.
As
a
global company with more than 60 percent of our sales outside of the United
States, understanding emerging markets is an integral part of sustainable
success. Using a disciplined approach to globalization, we have leveraged
technical resources, system platforms, and processes to facilitate a consistent,
yet flexible, brand identity and an ability to conduct global business
efficiently.”
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, 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
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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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October
31,
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October
31,
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2006
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2005
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(audited)
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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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29,846
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$
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17,559
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Accounts
receivable
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22,248
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20,100
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Inventories
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43,343
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29,530
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Deferred
tax assets
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2,768
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3,043
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Other
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2,677
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3,586
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Total
current assets
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100,882
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73,818
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Property
and equipment:
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Land
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761
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761
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Building
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7,234
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7,205
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Machinery
and equipment
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12,952
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13,170
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Leasehold
improvements
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1,147
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1,102
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22,094
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22,238
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Less
accumulated depreciation and amortization
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(12,944
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)
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(13,187
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)
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9,150
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9,051
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Deferred
tax assets
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1,121
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1,346
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Software
development costs, less amortization
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5,580
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3,752
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Investments
and other assets
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7,381
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6,147
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$
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124,114
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$
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94,114
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LIABILITIES
AND SHAREHOLDERS' EQUITY
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Current
liabilities:
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Accounts
payable
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$
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26,605
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$
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17,051
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Accrued
expenses
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17,599
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13,584
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Current
portion of long-term debt
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136
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126
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Total
current liabilities
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44,340
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30,761
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Non-current
liabilities:
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Long-term
debt
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3,874
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4,010
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Deferred
credits and other obligations
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525
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399
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Total
liabilities
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48,739
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35,170
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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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-
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-
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authorized;
no shares issued
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Common
stock: no par value; $.10 stated value per share;
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12,500,000
shares authorized; and 6,346,020 and
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6,220,220
shares issued, respectively
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635
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622
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Additional
paid-in capital
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50,011
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48,701
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Retained
earnings (deficit)
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27,998
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13,001
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Accumulated
other comprehensive income
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(3,269
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)
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(3,380
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)
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Total
shareholders' equity
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75,375
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58,944
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$
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124,114
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$
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94,114
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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
October
31,
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Twelve
Months Ended
October
31,
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2006
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2005
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2006
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2005
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(audited)
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(audited)
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Sales
and service fees
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$
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43,164
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$
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34,718
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$
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148,517
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$
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125,509
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Cost
of sales and service
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26,780
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22,530
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95,192
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82,951
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Gross
profit
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16,384
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12,188
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53,325
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42,558
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Selling,
general and administrative expenses
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9,869
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6,870
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30,697
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26,057
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Severance
expense
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-
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-
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-
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-
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|||||||||
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Operating
income
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6,515
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5,318
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22,628
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16,501
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|||||||||
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Interest
expense
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18
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107
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259
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355
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|||||||||
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Other
income (expense), net
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337
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196
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745
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(64
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)
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Income
before taxes
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6,834
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5,407
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23,114
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16,082
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|||||||||
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Provision
(benefit) for income taxes
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2,120
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(1,828
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)
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7,635
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(361
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)
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Net
income
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$
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4,714
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$
|
7,235
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$
|
15,479
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$
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16,443
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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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0.75
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$
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1.16
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$
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2.45
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$
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2.66
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Diluted
|
$
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0.74
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$
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1.13
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$
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2.42
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$
|
2.60
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|||||
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Weighted
average common shares outstanding
|
|||||||||||||
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Basic
|
6,317
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6,216
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6,317
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6,171
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|||||||||
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Diluted
|
6,396
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6,384
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6,397
|
6,336
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|||||||||
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OTHER
CONSOLIDATED FINANCIAL DATA
|
Three
Months Ended
October
31,
|
Twelve
Months Ended
October
31,
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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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(audited)
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(audited)
|
||||||||||||
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Gross
margin
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38.0
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%
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35.1
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%
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35.9
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%
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33.9
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%
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|||||
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SG&A
expense as a percentage of sales
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22.9
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%
|
19.8
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%
|
20.7
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%
|
20.8
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%
|
|||||
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Operating
income as a percentage of sales
|
15.1
|
%
|
15.3
|
%
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15.2
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%
|
13.1
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%
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|||||
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Income
before taxes as a percentage of sales
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15.8
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%
|
15.6
|
%
|
15.6
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%
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12.8
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%
|
|||||
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Depreciation
|
387
|
387
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1,504
|
1,332
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|||||||||
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Capital
expenditures
|
1,183
|
1,284
|
3,301
|
3,040
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|||||||||
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Balance
Sheet Data:
|
10/31/2006
|
10/31/2005
|
|||||||||||
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Working
capital (excluding short term debt)
|
$
|
56,678
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$
|
43,183
|
|||||||||
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Days
sales outstanding
|
41
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41
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|||||||||||
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Inventory
turns
|
2.2
|
2.6
|
|||||||||||
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Capitalization
|
|||||||||||||
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Total
debt
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$
|
4,010
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$
|
4,136
|
|||||||||
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Shareholders'
equity
|
75,375
|
58,944
|
|||||||||||
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Total
|
$
|
79,385
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$
|
63,080
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