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) July 31, 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
August
22, 2006, Hurco Companies, Inc. (the "Registrant") reported its results of
operations for the third quarter ended July 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 August 22, 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:
August 22, 2006
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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 22, 2006
FOR
IMMEDIATE RELEASE EXHIBIT
99
TUESDAY,
AUGUST 22, 2006
HURCO
REPORTS THIRD QUARTER 2006 RESULTS
INDIANAPOLIS,
INDIANA, — August 22, 2006—Hurco Companies, Inc. (Nasdaq:HURC)
today
announced that for its third fiscal quarter, which ended July 31, 2006, it
recorded net income of $3,802,000, or $.59 per share, compared $2,879,000,
or
$.45 per share, for the corresponding quarter of 2005. For the first nine months
of fiscal 2006, Hurco recorded net income of $10,764,000 or $1.68 per share,
compared to $9,208,000 or $1.46 per share, for the corresponding 2005 period.
The
company noted that its provision for income taxes for the third quarter and
first nine months of fiscal 2006 increased by approximately $1,300,000 and
$4,000,000, respectively, over the amounts recorded for the corresponding
periods of fiscal 2005, due primarily to its prior utilization of substantially
all of its domestic net operating loss carryforwards. Income before taxes for
the latest quarter was $5,448,000, an increase of 70% over the $3,196,000
reported for the same period one year ago.
Sales
and
service fees for the third quarter of fiscal 2006 were $36,597,000, an increase
of $7,042,000, or 24%, over the corresponding quarter of 2005. The increase
was
most pronounced in Europe and Asia, where sales and service fees rose 35% and
36%, respectively, and accounted for approximately 69% of total sales for the
2006 quarter, as compared to 63% for the corresponding quarter of fiscal 2005.
These results reflected a significant improvement in demand as well as increased
shipments of the company’s larger and more highly-priced models in overseas
markets, and, to a lesser extent, the favorable effects of a weakened U.S.
Dollar in the 2006 third quarter when translating foreign sales into U.S.
Dollars for financial reporting purposes. In contrast, for the full nine months
ended July 31, 2006, the U.S. Dollar was stronger than in the corresponding
period of fiscal 2005, and total sales and service fees increased by only 16%
to
$105,352,000.
New
orders booked in the third quarter of fiscal 2006 were $38,010,000, an increase
of $9,118,000, or 32%, over the third quarter of 2005. The dollar value of
orders booked was a record for the company and benefited from a significant
increase in orders of higher-priced machines from customers in the United
Kingdom and Germany, as well as the favorable currency translation effects
of
the weakened U.S. Dollar during the 2006 third quarter, which accounted for
$1,333,000, or 14.6%, of the increase. For the nine months ended July 31, 2006,
new orders booked totaled $112,680,000, an increase of $23,972,000, or 27%,
over
the corresponding 2005 period. As was the case with sales and service fees,
the
greater strength of the U.S. Dollar on an average basis during the nine-month
period in 2006 compared to its level in the 2005 period had an unfavorable
impact on the amount of orders recorded in the 2006 period after giving effect
to currency translation. Orders booked for the first nine months of fiscal
2006
were unfavorably affected by approximately $2,535,000 due to currency
translation.
Hurco’s
gross margin for the third quarter of fiscal 2006 was 35.1% compared to 33.4%
for the prior year period. The improvement was primarily the result of increased
unit volume.
Operating
income for the third quarter of fiscal 2006 totaled $5,443,000, or 15% of sales
and service fees, compared to $3,226,000, or 11% of sales and service fees,
for
the same period in the prior year.
Michael
Doar, Chief Executive Officer, stated, "We are pleased with the financial
results achieved in the third quarter. Order intake in the Europe and Asia
continues to be strong while order rates in United States were up only slightly
in the third quarter. We are looking forward to showcasing our new products,
particularly our new Winmax control, in September at the bi-annual Chicago
IMTS
trade show, the largest metal working trade show in the United States, which
I
expect will provide a boost to domestic order activity. 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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||||||||||||||||
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Three
Months Ended
July
31,
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Nine
Months
Ended
July 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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|||||||||||||
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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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36,597
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$
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29,555
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$
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105,352
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$
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90,791
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Cost
of sales and service
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23,762
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19,692
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68,412
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60,421
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||||||||||||
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Gross
profit
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12,835
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9,863
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36,940
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30,370
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Selling,
general and administrative expenses
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7,392
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6,637
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20,828
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19,187
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Operating
income
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5,443
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3,226
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16,112
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11,183
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Interest
expense
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78
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79
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242
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248
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Other
income (expense), net
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83
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49
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408
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(260
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)
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Income
before taxes
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5,448
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3,196
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16,278
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10,675
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Provision
for income taxes
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1,646
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317
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5,514
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1,467
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Net
income
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$
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3,802
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$
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2,879
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$
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10,764
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$
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9,208
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Earnings
per common share
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Basic
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$
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0.60
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$
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0.46
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$
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1.71
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$
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1.50
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Diluted
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$
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0.59
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$
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0.45
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$
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1.68
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$
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1.46
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Weighted
average common shares outstanding
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||||||||||||||||
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Basic
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6,308
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6,206
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6,308
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6,156
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Diluted
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6,392
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6,379
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6,393
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6,325
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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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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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Gross
margin
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35.1
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%
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33.4
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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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SG&A
expense as a percentage of sales
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20.2
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%
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22.5
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%
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19.8
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%
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21.1
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%
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||||||||
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Operating
income as a percentage of sales
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14.9
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%
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10.9
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%
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15.3
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%
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12.3
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%
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Income
before taxes as a percentage of sales
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14.9
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%
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10.8
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%
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15.5
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%
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11.8
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%
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Effective
Tax Rate
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30.2
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%
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9.9
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%
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33.9
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%
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13.7
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%
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Depreciation
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385
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323
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1,117
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945
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Capital
expenditures
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921
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681
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2,117
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1,756
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Balance
Sheet Data:
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7/31/2006
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7/31/2005
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Working
capital (excluding short term debt)
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$
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52,747
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$
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38,687
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Days
sales outstanding
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52
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48
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Inventory
turns
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2.3
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2.4
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Capitalization
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Total
debt
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$
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4,042
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$
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4,365
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Shareholders'
equity
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70,384
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51,872
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Total
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$
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74,426
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$
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56,237
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Hurco
Companies, Inc.
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|||||||
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CONDENSED
CONSOLIDATED BALANCE SHEET
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|||||||
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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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2006
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2005
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||||||
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(unaudited)
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(audited)
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ASSETS
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|||||||
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Current
assets:
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|||||||
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Cash
and cash equivalents
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$
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24,504
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$
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17,559
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|||
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Accounts
receivable
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22,240
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20,100
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|||||
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Inventories
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43,171
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29,530
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|||||
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Deferred
tax
assets, net
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2,325
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3,043
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|||||
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Other
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3,605
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3,586
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|||||
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Total
current assets
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95,845
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73,818
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|||||
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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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|||||
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Building
|
7,234
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7,205
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|||||
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Machinery
and
equipment
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13,385
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13,170
|
|||||
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Leasehold
improvements
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1,136
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1,102
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|||||
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22,516
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22,238
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||||||
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Less
accumulated depreciation and amortization
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(13,681
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)
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(13,187
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)
|
|||
|
8,835
|
9,051
|
||||||
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Deferred
tax assets, net
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1,382
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1,346
|
|||||
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Software
development costs, less amortization
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4,994
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3,752
|
|||||
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Investments
and other assets
|
6,956
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6,147
|
|||||
|
$
|
118,012
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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
|
$
|
28,495
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$
|
17,051
|
|||
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Accrued
expenses
|
14,603
|
13,584
|
|||||
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Current
portion of long-term debt
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133
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126
|
|||||
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Total
current liabilities
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43,231
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30,761
|
|||||
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Non-current
liabilities:
|
|||||||
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Long-term
debt
|
3,909
|
4,010
|
|||||
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Deferred
credits and other obligations
|
488
|
399
|
|||||
|
Total
liabilities
|
47,628
|
35,170
|
|||||
|
Shareholders'
equity:
|
|||||||
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Preferred
stock: no par value per share; 1,000,000 shares
|
-
|
-
|
|||||
|
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 6,341,020 and
|
|||||||
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6,220,220
shares issued, respectively
|
634
|
622
|
|||||
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Additional
paid-in capital
|
49,731
|
48,701
|
|||||
|
Retained
earnings
|
23,765
|
13,001
|
|||||
|
Accumulated
other comprehensive income
|
(3,746
|
)
|
(3,380
|
)
|
|||
|
Total
shareholders' equity
|
70,384
|
58,944
|
|||||
|
$
|
118,012
|
$
|
94,114
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