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) May 29, 2009
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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):
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o
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Item
2.02. Results of Operation and Financial
Condition
On May 29, 2009, Hurco Companies, Inc.
(the "Registrant") reported its results of operations for the second quarter
ended April 30, 2009. 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 May 29, 2009
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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.
| Dated: May 29, 2009 | ||
| HURCO COMPANIES, INC | ||
| By: |
/s/John G. Oblazney
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John G. Oblazney, 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 May 29, 2009
FOR
IMMEDIATE RELEASE
FRIDAY,
MAY 29, 2009
HURCO
REPORTS SECOND QUARTER RESULTS
INDIANAPOLIS, INDIANA, — May 29,
2009, Hurco Companies, Inc., (Nasdaq, Global Select Market: HURC) today
reported a net loss of $281,000, or $0.04 per share, for its second quarter
ended April 30, 2009, compared to net income of $5,467,000, or $0.85 per share,
for the corresponding period in fiscal 2008. The results for the
second quarter of 2009 included $2,202,000, or $0.34 per diluted share, of net
realized gains on hedge contracts closed before maturity due to forecasted
reductions in production and sales for the next six months. For the
first six months of fiscal 2009, Hurco reported net income of $73,000, or $0.01
per share, compared to $13,272,000, or $2.06 per share, reported for the
corresponding period in fiscal 2008.
Sales and
service fees for the second quarter of fiscal 2009 totaled $20,489,000, a
decrease of $37,796,000, or 65%, from the second quarter of fiscal
2008. Approximately $3,150,000 of the year-over-year decrease, or 5%
of second quarter 2008 sales, reflects the effect of a stronger U.S. Dollar in
2009 when translating foreign sales to U.S. Dollars for financial reporting
purposes. Sales and service fees for the six months ended April 30,
2009, totaled $48,796,000, a decrease of $70,412,000, or 59%, from the
corresponding period in 2008. The impact of currency translation on
the year-over-year sales reduction for the first six months of fiscal 2009 was
approximately $6,046,000, or 5% of year to date sales for the corresponding
period in fiscal 2008.
The
following table sets forth net sales and service fees by geographic region for
the second quarter and first half of fiscal 2009 and 2008,
respectively:
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Three
Months Ended
April
30,
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Six
Months Ended
April
30,
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%
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%
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2009
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2008
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Change
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2009
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2008
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Change
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North
America
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$ | 6,171 | $ | 11,706 | -47 | % | $ | 15,808 | $ | 24,785 | -36 | % | ||||||||||||
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Europe
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13,042 | 42,653 | -69 | % | 31,102 | 87,705 | -65 | % | ||||||||||||||||
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Asia
Pacific
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1,276 | 3,926 | -67 | % | 1,886 | 6,718 | -72 | % | ||||||||||||||||
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Total
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$ | 20,489 | $ | 58,285 | -65 | % | $ | 48,796 | $ | 119,208 | -59 | % | ||||||||||||
Similar
to the first quarter of fiscal 2009, sales were down sharply across all regions
due to the worldwide recession. In addition to declining volume and
the unfavorable impact of currency translation, approximately 29% of the sales
decline was attributable to a decrease in sales of higher priced VMX machines in
the Europe sales region, and competitive pricing pressures
globally.
New order
bookings in the second quarter of fiscal 2009 were $18,135,000, a decrease of
$40,775,000, or 69%, compared to the prior year period. Orders in the
North America, Europe and Asia Pacific regions decreased $6,233,000, or 56%,
$31,527,000, or 72%, and $3,015,000, or 75%, respectively, continuing a decrease
that began in the first quarter as Hurco customers, consisting primarily of
small job shops, reacted to the economic downturn in their
markets. For the first half of fiscal 2009, new orders totaled
$42,651,000, a decrease of $77,406,000, or 65%, from the corresponding period in
2008. Of that decrease, North America, Europe and Asia Pacific orders
decreased $9,888,000, or 42%, $62,281,000, or 69%, and $5,237,000, or 77%,
respectively. The impact of currency translation on new orders booked
in the second quarter and first half of 2009 was consistent with the impact on
sales.
Hurco’s
gross margin for the second quarter of fiscal 2009 was 26%, compared to 35% for
the 2008 period. The decrease in margin as a percentage of sales was
due to the lower sales volume, the decline in sales of higher priced VMX
machines in the European sales region, and competitive pricing pressures on a
global basis. Selling, general and administrative expenses were
$7,518,000, a decrease of $4,158,000, or 36%, from the corresponding period in
2008, reflecting lower sales commissions, the benefit of cost reduction
initiatives and the favorable effect of a stronger U.S. Dollar in 2009 when
translating foreign operating expenses for financial reporting
purposes.
The
increase in other income of $2,144,000 for the second quarter of fiscal 2009
compared to the same period in fiscal 2008 was primarily due to $2,202,000 of
net realized gains on hedge contracts closed before maturity due to forecasted
reductions in production and sales for the next six months.
Cash
decreased by $2,276,000 from January 31, 2009 to $27,850,000 at April 30, 2009,
primarily due to a $1,586,000 increase in inventories. Production
levels are being adjusted downward to bring inventory levels more in line with
current demand.
Michael
Doar, Chief Executive Officer, said, “Although the order pattern this quarter
has stabilized, we will continue our fiscally conservative approach so that the
company will be ready to capitalize on opportunities when conditions improve.
Our lean organizational structure has allowed us to respond quickly to the
current economic contraction. We have implemented cost savings initiatives,
including management and employee pay reductions, workforce reductions, the
suspension of corporate 401K matching contributions, restriction on travel
expenditures, and intensified inventory control, without sacrificing progress on
business critical initiatives. This approach allows us to maintain our product
development schedules and technology innovation efforts.”
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
aerospace, defense, medical equipment, energy, transportation and computer
equipment. The Company is based in Indianapolis, Indiana, with manufacturing
operations in Taiwan and China, and sells its products through direct and
indirect sales forces throughout North America, Europe, and Asia. The company
has sales, application engineering support and service subsidiaries in Canada,
China, England, France, Germany, India, Italy, Poland, Singapore, South Africa,
Spain, and the United States of America. 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, the impact of the
current global economic recession, including disruption in credit markets, other
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.
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Contact:
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John
Oblazney
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Vice
President & Chief Financial Officer
317-293-5309
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HURCO
COMPANIES, INC.
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
(In
thousands, except per-share data)
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Three
Months Ended
April
30,
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Six
Months Ended
April
30,
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2009
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2008
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2009
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2008
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(unaudited)
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(unaudited)
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Sales
and service fees
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$ | 20,489 | $ | 58,285 | $ | 48,796 | $ | 119,208 | ||||||||
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Cost
of sales and service
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15,269 | 37,954 | 35,034 | 74,020 | ||||||||||||
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Gross
profit
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5,220 | 20,331 | 13,762 | 45,188 | ||||||||||||
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Selling,
general and administrative expenses
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7,518 | 11,676 | 15,547 | 24,052 | ||||||||||||
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Operating
income (loss)
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(2,298 | ) | 8,655 | (1,785 | ) | 21,136 | ||||||||||
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Interest
expense
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4 | 10 | 27 | 21 | ||||||||||||
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Interest
income
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45 | 133 | 149 | 282 | ||||||||||||
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Investment
income
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1 | 119 | 29 | 291 | ||||||||||||
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Other
expense (income), net
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(1,768 | ) | 376 | (1,695 | ) | 840 | ||||||||||
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Income
(loss) before taxes
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(488 | ) | 8,521 | 61 | 20,848 | |||||||||||
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Provision
(benefit) for income taxes
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(207 | ) | 3,054 | (12 | ) | 7,576 | ||||||||||
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Net
income (loss)
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$ | (281 | ) | $ | 5,467 | $ | 73 | $ | 13,272 | |||||||
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Earnings
(loss) per common share
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Basic
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$ | (0.04 | ) | $ | 0.85 | $ | 0.01 | $ | 2.07 | |||||||
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Diluted
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$ | (0.04 | ) | $ | 0.85 | $ | 0.01 | $ | 2.06 | |||||||
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Weighted
average common shares outstanding
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Basic
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6,421 | 6,410 | 6,421 | 6,410 | ||||||||||||
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Diluted
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6,421 | 6,444 | 6,430 | 6,442 | ||||||||||||
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OTHER
CONSOLIDATED FINANCIAL DATA
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Three
Months Ended
April
30,
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Six
Months Ended
April
30,
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Operating
Data:
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2009
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2008
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2009
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2008
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(unaudited)
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(unaudited)
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Gross
margin
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25.5 | % | 34.9 | % | 28.2 | % | 37.9 | % | ||||||||
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SG&A
expense as a percentage of sales
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36.7 | % | 20.0 | % | 31.9 | % | 20.2 | % | ||||||||
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Operating
income as a percentage of sales
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-11.2 | % | 14.8 | % | -3.7 | % | 17.7 | % | ||||||||
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Pre-tax
income as a percentage of sales
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-2.4 | % | 14.6 | % | 0.1 | % | 17.5 | % | ||||||||
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Effective
Tax Rate
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42.4 | % | 35.8 | % | -19.7 | % | 36.3 | % | ||||||||
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Depreciation
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814 | 730 | 1,605 | 1,413 | ||||||||||||
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Capital
expenditures
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968 | 767 | 2,319 | 1,914 | ||||||||||||
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Balance
Sheet Data:
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4/30/2009
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4/30/2008
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(unaudited)
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Working
capital (excluding cash)
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$ | 69,526 | $ | 59,624 | ||||
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Days
sales outstanding
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55 | 43 | ||||||
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Inventory
turns
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1.6 | 2.0 | ||||||
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Capitalization
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Total
debt
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$ | - | $ | - | ||||
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Shareholders'
equity
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121,917 | 112,563 | ||||||
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Total
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$ | 121,917 | $ | 112,563 | ||||
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HURCO
COMPANIES, INC.
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CONDENSED
CONSOLIDATED BALANCE SHEET
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(In
thousands, except share and per-share
data)
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April
30,
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October
31,
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2009
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2008
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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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$ | 27,850 | $ | 26,394 | ||||
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Short-term
investments
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- | 6,674 | ||||||
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Accounts
receivable, net
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15,903 | 31,952 | ||||||
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Inventories,
net
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64,880 | 66,368 | ||||||
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Deferred
tax assets, net
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7,856 | 5,444 | ||||||
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Derivative
assets
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1,446 | 12,463 | ||||||
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Other
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2,591 | 2,017 | ||||||
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Total
current assets
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120,526 | 151,312 | ||||||
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Property
and equipment:
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Land
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782 | 782 | ||||||
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Building
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7,127 | 7,127 | ||||||
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Machinery
and equipment
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15,952 | 14,885 | ||||||
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Leasehold
improvements
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1,878 | 1,765 | ||||||
| 25,739 | 24,559 | |||||||
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Less
accumulated depreciation and amortization
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(11,900 | ) | (10,961 | ) | ||||
| 13,839 | 13,598 | |||||||
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Non-current
assets:
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Software
development costs, less accumulated amortization
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6,097 | 5,711 | ||||||
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Other
assets
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7,438 | 6,823 | ||||||
| $ | 147,900 | $ | 177,444 | |||||
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LIABILITIES
AND SHAREHOLDERS' EQUITY
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Current
liabilities:
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Accounts
payable
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$ | 10,678 | $ | 28,303 | ||||
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Derivative
liabilities
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1,452 | 2,692 | ||||||
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Accrued
expenses
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11,020 | 20,134 | ||||||
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Total
current liabilities
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23,150 | 51,129 | ||||||
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Non-current
liabilities:
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Deferred
tax liabilities, net
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2,006 | 2,056 | ||||||
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Deferred
credits and other obligations
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827 | 782 | ||||||
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Total
liabilities
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25,983 | 53,967 | ||||||
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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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13,250,000
shares authorized; and 6,420,851 shares issued
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and
outstanding
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642 | 642 | ||||||
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Additional
paid-in capital
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51,804 | 51,690 | ||||||
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Retained
earnings
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71,962 | 71,889 | ||||||
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Accumulated
other comprehensive income
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(2,491 | ) | (744 | ) | ||||
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Total
shareholders' equity
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121,917 | 123,477 | ||||||
| $ | 147,900 | $ | 177,444 | |||||