SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 19, 2004
HURCO COMPANIES, INC.
(Exact name of registrant as specified in its charter)
INDIANA 0-9143 35-1150732
(State or other jurisdiction (Commission File No.) (I.R.S. Employer
of incorporation or organization) Identification No.)
ONE TECHNOLOGY WAY
INDIANAPOLIS, INDIANA 46268
(Address of principal executive offices and zip code)
(317) 293-5309
(Registrants' telephone number, including area code)
NOT APPLICABLE
(Former name or former address, if changed since last report)
ITEM 12. RESULTS OF OPERATION AND FINANCIAL CONDITION
On May 19, 2004, Hurco Companies, Inc. (the "Registrant") reported its
results of operations for the second quarter ended April 30, 2004. The
Registrant's earnings release for the quarter is attached as Exhibit 99(a) and
the information set forth therein is incorporated herein by reference and
constitutes a part of this report. The attached Exhibit is furnished pursuant to
Item 12 of Form 8-K.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: May 19, 2004
HURCO COMPANIES, INC.
By: /s/ Roger J. Wolf
--------------------------
Roger J. Wolf
Senior Vice President and
Chief Financial Officer
EXHIBIT 99
FOR IMMEDIATE RELEASE
Wednesday, MAY 19, 2004
HURCO REPORTS SECOND QUARTER 2004 RESULTS
INDIANAPOLIS, INDIANA, -- May 19, 2004--Hurco Companies, Inc. (Nasdaq:HURC)
today announced that for its second fiscal quarter, which ended April 30, 2004,
it recorded net income of $1,737,000, or $.29 per share, compared to $139,000,
or $.02 per share, for the corresponding quarter of 2003. For the first six
months of fiscal 2004, Hurco recorded net income of $2,406,000, or $.41 per
share, compared to a net loss of $443,000, or $.08 per share, for the
corresponding 2003 period.
The Company attributed the dramatic improvement in its operating
results to a substantial increase in its sales of computerized machine tools,
due primarily to strong demand for its new machine tool models introduced over
the past 18 months. The improved results also reflected the favorable effects of
stronger European currencies in relation to the U.S. dollar.
Sales and service fees for the second quarter of fiscal 2004 were
$24,255,000, an increase of 39% from the $17,453,000 recorded in the
corresponding quarter of 2003. Approximately 70% of Hurco's sales during the
2004 period were made outside the United States and were denominated in local
currencies (primarily the Euro and Pound Sterling) and translated to U.S.
dollars for financial reporting purposes. Approximately $1,800,000 of the
increase in sales and service fees was attributable to the favorable effects of
translating foreign sales to U.S. dollars at higher exchange rates than those
prevailing during the prior year period.
New order bookings for the second quarter of fiscal 2004 were
$22,345,000, an increase of 9% from the $20,550,000 recorded in the second
quarter of 2003. When measured at constant exchange rates, orders for the second
fiscal quarter reflected only a slight increase over the prior year period.
Orders recorded in the quarter increased significantly in the United States and
Asia, but these increases were substantially offset by reduced orders in Europe.
For the six months ended April 30, 2004, new orders increased $11,456,000, or
33% over the 2003 period; $3,475,000 of the increase was attributable to the
favorable translation effects of higher foreign currency exchange rates. Backlog
was $7,392,000 at April 30, 2004, compared to $9,483,000 at January 31, 2004,
and $8,153,000 at October 31, 2003.
Gross margin for the second quarter of fiscal 2004 was 30.6% compared
to 29.4% for the prior year period. The improvement is due to a combination of
increased machine sales volume and the favorable effects of stronger European
currencies. Selling, general and administrative expenses were $5,127,000 for the
2004 period, an increase of $564,000 over the amount recorded for the
corresponding 2003 period, due in large part to the effects of stronger European
currencies when operating expenses incurred in foreign currencies are translated
to U.S. dollars.
Total debt was $5,330,000 at April 30, 2004, as compared to $6,463,000
at January 31, 2004, and represented 14% of the Company's total capitalization,
which aggregated $38,677,000. As of April 30, 2004, the Company had unutilized
credit facilities of $10,919,000 available for direct borrowing or commercial
letters of credit.
Michael Doar, Chief Executive Officer, stated, "We are encouraged by
the financial results achieved in the second quarter. Nearly 60% of the machine
tool units shipped in the quarter were models introduced in the last 18 months,
demonstrating the benefits of our efforts during the past two years to focus on
our core product line and invest in new products. We plan to introduce
additional new machine tool products at the International Manufacturing
Technology Show in September, which will further broaden our product line and
available market. While our European markets are slow, machine tool demand in
the United States and our Asian markets is recovering from the depressed levels
of the past three years. Our strong balance sheet positions us well to take
advantage of the opportunities for profitable growth which are available as
world markets continue to improve."
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: Roger J. Wolf
Sr. Vice President & CFO 317-293-5309
Hurco Companies, Inc.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per-share data)
Three Months Ended April 30, Six Months Ended April 30,
2004 2003 2004 2003
------ ------ ------ ------
(unaudited) (unaudited)
Sales and service fees $ 24,255 $ 17,453 $46,973 $33,406
Cost of sales and service 16,842 12,325 33,029 24,284
---------- ---------- ---------- ----------
Gross profit 7,413 5,128 13,944 9,122
Selling, general and administrative expenses 5,127 4,563 10,054 8,991
---------- ---------- ---------- ----------
Operating income 2,286 565 3,890 131
Interest expense 117 150 261 309
Variable Option Expense 67 - 322 -
Other income (expense), net 23 (68) (147) 48
---------- ---------- ---------- ----------
Income (loss) before taxes 2,125 347 3,160 (130)
Provision for income taxes 388 208 754 313
---------- ---------- ---------- ----------
Net income (loss) $ 1,737 $ 139 $ 2,406 $ (443)
========== ========== ========== ==========
Earnings (loss) per common share
Basic $ 0.31 $ 0.02 $ 0.43 $ (0.08)
========== ========== ========== ==========
Diluted $ 0.29 $ 0.02 $ 0.41 $ (0.08)
========== ========== ========== ==========
Weighted average common shares outstanding
Basic 5,695 5,583 5,641 5,583
========== ========== ========== ==========
Diluted 5,976 5,583 5,838 5,583
========== ========== ========== ==========
OTHER CONSOLIDATED FINANCIAL DATA Three Months Ended April 30, Six Months Ended April 30,
Operating Data: 2004 2003 2004 2003
------ ------ ------ ------
(unaudited) (unaudited)
Gross margin 30.6% 29.4% 29.7% 27.3%
SG&A expense as a percentage of sales 21.1% 26.1% 21.4% 26.9%
Operating income as a percentage of sales 9.4% 3.2% 8.3% 0.4%
Income (loss) before taxes as a percentage of sales 8.8% 2.0% 6.7% -0.4%
Depreciation 310 366 641 715
Capital expenditures 519 329 990 497
Balance Sheet Data: 4/30/2004 4/30/2003
---------- ----------
Working capital (excluding short term debt) $ 23,057 $ 21,108
Days sales outstanding 47 49
Inventory turns 2.6 2.1
Capitalization
Total debt $ 5,330 $ 8,516
Shareholders' equity 33,347 27,343
-------- --------
Total $ 38,677 $35,859
======== ========
Hurco Companies, Inc.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands, except per-share data)
April 30, October 31,
2004 2003
(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 6,193 $ 5,289
Cash - restricted - 622
Accounts receivable 14,725 12,823
Inventories 24,439 22,247
Other 2,135 1,409
-------- --------
Total current assets 47,492 42,390
Property and equipment:
Land 761 761
Building 7,242 7,239
Machinery and equipment 10,605 10,568
Leasehold improvements 601 544
-------- --------
19,209 19,112
Less accumulated depreciation and amortization (10,928) (10,730)
-------- --------
8,281 8,382
Software development costs, less amortization 2,412 1,922
Investments and other assets 5,476 5,264
-------- --------
$ 63,661 $ 57,958
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 15,506 $ 9,461
Accrued expenses 8,929 10,048
Current portion of long-term debt 313 645
-------- --------
Total current liabilities 24,748 20,154
Non-current liabilities:
Long-term debt 5,017 8,577
Deferred credits and other obligations 549 486
-------- --------
Total liabilities 30,314 29,217
Shareholders' equity:
Preferred stock: no par value per share; 1,000,000 shares - -
authorized; no shares issued
Common stock: no par value; $.10 stated value per share;
12,500,000 shares authorized; and 5,826,927 and
5,575,987 shares issued, respectively 583 557
Additional paid-in capital 45,960 44,695
Accumulated deficit (7,305) (9,711)
Accumulated other comprehensive income (5,891) (6,800)
-------- --------
Total shareholders' equity 33,347 28,741
-------- --------
$ 63,661 $ 57,958
======== ========