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 16, 2007
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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 16, 2007, Hurco Companies,
Inc. (the "Registrant") reported its results of operations for the third quarter
ended July 31, 2007. 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 16, 2007
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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
16, 2007
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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 August 16, 2007
FOR
IMMEDIATE RELEASE
THURSDAY,
AUGUST 16, 2007
HURCO
REPORTS STRONG THIRD QUARTER RESULTS – SALES UP 33% AND EARNINGS UP
36%.
INDIANAPOLIS,
INDIANA, — August 16, 2007, Hurco Companies, Inc., (Nasdaq, Global
Select Market: HURC) today reported net income of $5,163,000, or $.80 per share,
for its third fiscal quarter, which ended July 31, 2007, compared to $3,802,000,
or $.59 per share, for the corresponding period in 2006. For the
first nine months of fiscal 2007, Hurco recorded net income of $15,239,000,
or
$2.37 per share, compared to $10,764,000, or $1.68 per share, for the
corresponding period in 2006.
Sales
and
service fees for the third quarter of fiscal 2007 were $48,555,000, an increase
of $11,958,000, or 33%, from the amount for the prior year
period. Approximately 6% of the year-over-year increase reflects the
effect of a weaker U.S. dollar when translating foreign sales to U.S. dollars
for financial reporting purposes. These results reflect increased
demand, primarily driven by the European markets. During the latest
quarter, sales and service fees increased in Europe by $10,987,000, or 50%
and
in North America sales and service fees increased by $1,789,000, or 16%,
compared to the third quarter of 2006. Sales and service fees for
Asia decreased by $818,000, or 25%, primarily due to the timing of two large
non-recurring orders received in the third quarter of last
year. Sales and service fees for the nine months ended July 31, 2007
totaled $137,927,000, an increase of $32,575,000, or 31%, over the corresponding
period in 2006. Approximately 7% of the year-over-year increase
reflects the effect of a weaker U.S. dollar when translating foreign sales
to
U.S. dollars for financial reporting purposes.
New
orders booked during the third quarter of fiscal 2007 totaled $48,645,000,
an
increase of $10,685,000, or 28%, over the amount recorded in the third quarter
of fiscal 2006. During the latest quarter, orders
increased in Europe and North America by $8,392,000, or 35%, and $3,594,000,
or
35%, respectively, compared to the third quarter of 2006. Orders for
Asia decreased by $1,301,000, or 36%, due to the related sales issue described
above. For the nine months ended July 31, 2007, new orders totaled
$144,193,000, an increase of $31,513,000, or 28%, over the corresponding period
in 2006. The impact of currency translation on new orders booked was
consistent with the impact on sales and service fees on a quarter and
year-to-date basis.
Gross
margin for the third quarter of fiscal 2007 was 38% compared to 35% for the
prior year period, as a result of higher volume and a more favorable product
mix. Selling, general and administrative expenses were $10,228,000,
an increase from the $7,392,000 reported in the prior year
period. The increase was due to the effects of foreign currency
translation of foreign operating expenses and expenses related to market
expansion, commissions, and other administrative expenses.
Cash
increased by $2,762,000 for the third quarter to $37,219,000 as working capital
performance remains strong with increased sales.
Michael
Doar, Chairman and Chief Executive Officer, stated, “Our global supply
chain strategy continues to yield operational and financial benefits that
allow us to focus on new product development, efficient worldwide release of
new
products, and targeted growth. The newest technology development for
all of our products is WinMax®, the software that powers our integrated control.
Building on the momentum from the U.S. rollout of WinMax®, we are focused on its
worldwide release”.
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 and China. 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 G. 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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July
31,
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October
31,
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2007
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2006
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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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$ |
37,219
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$ |
29,846
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Accounts
receivable
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26,968
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22,248
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Inventories
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53,836
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43,343
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Deferred
tax assets, net
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3,965
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2,768
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Investments
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2,114
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-
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Other
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6,433
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2,677
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Total
current assets
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130,535
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100,882
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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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7,234
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Machinery
and equipment
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14,111
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12,952
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Leasehold
improvements
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1,291
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1,147
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23,397
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22,094
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Less
accumulated depreciation and amortization
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(13,913 | ) | (12,944 | ) | ||||
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9,484
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9,150
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Deferred
tax assets, net
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966
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1,121
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Software
development costs, less amortization
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6,229
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5,580
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Investments
and other assets
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6,662
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7,381
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| $ |
153,876
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$ |
124,114
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LIABILITIES
AND SHAREHOLDERS' EQUITY
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Current
liabilities:
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Accounts
payable
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$ |
36,036
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$ |
26,605
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Accrued
expenses
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25,215
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17,599
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Current
portion of long-term debt
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-
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136
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Total
current liabilities
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61,251
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44,340
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Non-current
liabilities:
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Long-term
debt
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-
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3,874
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Deferred
credits and other obligations
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645
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525
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Total
liabilities
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61,896
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48,739
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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 6,389,720 and
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6,346,520
shares issued, respectively
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639
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635
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Additional
paid-in capital
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50,847
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50,011
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Retained
earnings
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43,719
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28,480
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Accumulated
other comprehensive income
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(3,225 | ) | (3,751 | ) | ||||
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Total
shareholders' equity
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91,980
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75,375
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| $ |
153,876
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$ |
124,114
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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
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Nine
Months Ended
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July
31,
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July
31,
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|||||||||||||||
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2007
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2006
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2007
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2006
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(unaudited)
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(unaudited)
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Sales
and service fees
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$ |
48,555
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$ |
36,597
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$ |
137,927
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$ |
105,352
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Cost
of sales and service
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30,138
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23,762
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85,838
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68,412
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Gross
profit
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18,417
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12,835
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52,089
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36,940
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Selling,
general and administrative expenses
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10,228
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7,392
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28,883
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20,828
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Operating
income
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8,189
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5,443
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23,206
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16,112
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Interest
expense (income)
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(85 | ) |
78
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(48 | ) |
242
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Other
income (expense), net
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548
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83
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1,406
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408
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Income
before taxes
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8,822
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5,448
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24,660
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16,278
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Provision
for income taxes
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3,659
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1,646
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9,421
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5,514
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Net
income
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$ |
5,163
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$ |
3,802
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$ |
15,239
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$ |
10,764
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Earnings
per common share
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Basic
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$ |
0.81
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$ |
0.60
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$ |
2.39
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$ |
1.71
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Diluted
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$ |
0.80
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$ |
0.59
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$ |
2.37
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$ |
1.68
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Weighted
average common shares outstanding
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||||||||||||||||
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Basic
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6,379
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6,308
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6,379
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6,308
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Diluted
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6,440
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6,392
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6,435
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6,393
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OTHER
CONSOLIDATED FINANCIAL DATA
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Three
Months Ended
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Nine
Months Ended
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||||||||||||||
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July
31,
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July
31,
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|||||||||||||||
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Operating
Data:
|
2007
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2006
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2007
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2006
|
||||||||||||
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(unaudited)
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(unaudited)
|
|||||||||||||||
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Gross
margin
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37.9 | % | 35.1 | % | 37.8 | % | 35.1 | % | ||||||||
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SG&A
expense as a percentage of sales
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21.1 | % | 20.2 | % | 20.9 | % | 19.8 | % | ||||||||
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Operating
income as a percentage of sales
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16.9 | % | 14.9 | % | 16.8 | % | 15.3 | % | ||||||||
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Income
before taxes as a percentage of sales
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18.2 | % | 14.9 | % | 17.9 | % | 15.5 | % | ||||||||
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Effective
Tax Rate
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41.5 | % | 30.2 | % | 38.2 | % | 33.9 | % | ||||||||
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Depreciation
|
589
|
385
|
1,376
|
1,117
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Capital
expenditures
|
656
|
921
|
2,298
|
2,118
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Balance
Sheet Data:
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7/31/2007
|
7/31/2006
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Working
capital (excluding short term debt)
|
$ |
69,284
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$ |
52,747
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||||||||||||
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Days
sales outstanding
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44
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52
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Inventory
turns
|
2.2
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2.3
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Capitalization
|
||||||||||||||||
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Total
debt
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$ |
-
|
$ |
4,042
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||||||||||||
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Shareholders'
equity
|
91,980
|
70,384
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||||||||||||||
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Total
|
$ |
91,980
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$ |
74,426
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