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) January 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
February 23, 2006, Hurco Companies, Inc. (the "Registrant") reported its results
of operations for the first quarter ended January 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 February 23, 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:
February 23, 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
99
FOR
IMMEDIATE RELEASE
THURSDAY,
FEBRUARY 23, 2006
HURCO
REPORTS RECORD ORDERS IN FIRST QUARTER 2006 RESULTS
INDIANAPOLIS,
INDIANA, — February 23, 2006, Hurco Companies, Inc. (NASDAQ:
HURC)
today
reported net income of $3,033,000 or $.48 per share, for its first fiscal
quarter, which ended January 31, 2006, compared to $3,030,000 or $.48 per share,
for the corresponding period in 2005.
The
Company noted that its provision for income taxes increased by approximately
$1,250,000 during the first quarter of fiscal 2006, due primarily to the
Company’s utilization of substantially all of its domestic net operating loss
carryforwards during the fourth quarter of fiscal 2005. Income before taxes
for
the latest quarter was $4,651,000, an increase of 37% over the $3,399,000
reported in the same period one year ago.
Sales
and
service fees for the first quarter of fiscal 2006 were $31,894,000, an increase
of 5% from the amount for the prior year period. Due to the effects of a
stronger U.S. Dollar when translating foreign sales for financial reporting
purposes, sales and service fees for the first quarter of fiscal 2006 were
approximately $1,800,000 less than would have been the case if foreign sales
had
been translated at the same rate of exchange that was utilized for the first
quarter of 2005. Unit shipments increased by 19% on a quarter-to-quarter basis,
with the largest increase occurring in North America.
New
orders booked during the first quarter of fiscal 2006 totaled $37,790,000,
a new
record and an increase of $10,906,000, or 41%, over the amount recorded in
the
first quarter of fiscal 2005, notwithstanding the adverse effects of currency
translation. Orders were strong worldwide and unit orders increased 59%, 44%
and
86% in North America, Europe and Asia, respectively.
Gross
margin for the first quarter of fiscal 2006 was 34% compared to 32% for the
prior year period. Selling, general and administrative expenses were $6,296,000,
a slight increase from the $6,187,000 reported in the prior year period.
Operating
income for the first quarter was $4,631,000, or 15% of sales and service fees,
compared to $3,553,000, or 12% of sales and service fees in the 2005
period.
Michael
Doar, Chief Executive Officer, stated, “We are pleased with the first quarter
increase in operating income and the record order intake. We are continuing
to
increase production at our wholly-owned manufacturing facility in Taiwan to
meet
the increase in our order rate.”
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.
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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 January 31,
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2006
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2005
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(unaudited)
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Sales
and service fees
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$
31,894
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$
30,246
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Cost
of sales and service
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20,967
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20,506
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Gross
profit
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10,927
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9,740
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Selling,
general and administrative expenses
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6,296
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6,187
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Operating
income
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4,631
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3,553
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Interest
expense
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84
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83
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Other
(income) expense, net
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(103)
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71
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Income
before taxes
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4,651
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3,399
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Provision
for income taxes
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1,618
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369
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Net
income
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$
3,033
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$
3,030
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Earnings
per common share
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Basic
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$
0.49
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$
0.50
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Diluted
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$
0.48
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$
0.48
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Weighted
average common shares outstanding
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Basic
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6,242
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6,071
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Diluted
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6,328
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6,270
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OTHER
CONSOLIDATED FINANCIAL DATA
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Three
Months Ended January 31,
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Operating
Data:
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2006
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2005
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(unaudited)
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Gross
margin
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34.3%
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32.2%
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SG&A
expense as a percentage of sales
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19.7%
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20.5%
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Operating
income as a percentage of sales
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14.5%
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11.7%
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Pre-tax
income as a percentage of sales
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14.6%
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11.2%
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Effective
tax rate
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34.8%
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10.9%
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Depreciation
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365
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317
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Capital
expenditures
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492
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623
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Balance
Sheet Data:
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1/31/2006
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10/31/2005
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Working
capital
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$
48,241
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$
43,183
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Days
sales outstanding
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47
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41
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Inventory
turns
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2.8
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2.6
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Capitalization
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Total
Debt
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$
4,106
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$
4,136
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Shareholders'
Equity
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64,151
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58,944
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Total
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$
68,257
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$
63,080
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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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January
31,
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October
31,
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2006
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2005
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(unaudited)
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(audited)
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ASSETS
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Current
assets:
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Cash
and cash equivalents
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$
21,562
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$
17,559
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Accounts
receivable
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18,686
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20,100
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Inventories
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31,375
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29,530
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Deferred
tax assets, net
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2,686
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3,043
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Other
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4,041
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3,586
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Total
current assets
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78,350
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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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7,205
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7,205
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Machinery
and equipment
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13,286
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13,170
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Leasehold
improvements
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1,140
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1,102
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22,392
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22,238
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Less
accumulated depreciation and amortization
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(13,499)
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(13,187)
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8,893
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9,051
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Non-current
assets:
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Deferred
tax assets, net
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1,307
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1,346
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Software
development costs, less amortization
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4,093
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3,752
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Investments
and other assets
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6,215
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6,147
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$
98,858
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$
94,114
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LIABILITIES
AND SHAREHOLDER'S EQUITY
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Current
liabilities:
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Accounts
payable
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$
19,734
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$
17,051
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Accrued
expenses
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10,375
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13,584
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Current
portion of long-term debt
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128
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126
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Total
current liabilities
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30,237
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30,761
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Non-current
liabilities:
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Long-term
debt
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3,978
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4,010
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Defered
credits and other obligations
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492
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399
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Total
liabilities
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34,707
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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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authorized;
no shares issued
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Common
stock: no par value; $.10 stated value per share;
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12,500,000
shares authorized; and 6,341,020 and
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6,220,220
shares issued, respectively
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634
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622
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Additional
paid-in capital
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49,723
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48,701
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Retained
earnings
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16,034
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13,001
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Accumulated
other comprehensive income
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(2,240)
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(3,380)
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Total
shareholders' equity
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64,151
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58,944
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$
98,858
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$
94,114
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