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 25, 2005
|
Hurco
Companies, Inc. | ||
|
(Exact
Name of Registrant as Specified in Its Charter | ||
|
Indiana | ||
|
(State
or Other Jurisdiction of Incorporation | ||
|
0-9143 |
35-1150732 | |
|
(Commission
File Number) |
(I.R.S.
Employer Identification Number) | |
|
One
Technology Way |
||
|
Indianapolis,
Indiana |
46268 | |
|
(Address
of principal executive offices) |
(Zip
code) | |
|
(317)
293-5309 | ||
|
(Registrant’s
Telephone Number, Including Area Code | ||
|
Not
Applicable | ||
|
(Former
Name or Former Address, if Changed Since Last
Report) | ||
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 May
25, 2005, Hurco Companies, Inc. (the "Registrant") reported its results of
operations for the second quarter ended April 30, 2005. 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.
|
99 |
Press
Release dated May 25, 2005 |
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 25, 2005 | |
|
HURCO
COMPANIES, INC | |
|
By:
/s/
Stephen J. Alesia | |
|
Vice
President and | |
|
Chief
Financial Officer |
EXHIBIT
INDEX
Exhibit
99 Press
Release of Hurco Companies, Inc. dated May 25, 2005
EXHIBIT 99
FOR
IMMEDIATE RELEASE
WEDNESDAY,
MAY 25, 2005
HURCO
REPORTS RECORD ORDERS, SALES AND OPERATING INCOME IN ITS SECOND QUARTER 2005
RESULTS
INDIANAPOLIS,
INDIANA, — May 25, 2005—Hurco Companies, Inc. (Nasdaq:HURC) today
announced that for its second fiscal quarter, which ended April 30, 2005, it
recorded net income of $3,299,000, or $.52 per share, compared to $1,737,000, or
$.29 per share, for the corresponding quarter of 2004. For the first six months
of fiscal 2005, Hurco recorded net income of $6,329,000 or $1.00 per share,
compared to $2,406,000, or $.41 per share, for the corresponding 2004
period.
Sales and
service fees for the second quarter of fiscal 2005 were the highest in the
Company’s history and totaled $30,990,000, an increase of $6,735,000, or 28%,
from the amount recorded in the corresponding quarter of 2004. The Company
attributed the significant growth in its revenues to a 27% increase in unit
sales of its computerized machine tools. Hurco has introduced several new
machine tool models over the past two and one half years and shipments of those
models represented 70% of all units shipped during the quarter. In addition,
approximately $1,200,000, or 18%, of the revenue increase was attributable to
the favorable effects of stronger European currencies in relation to the U.S.
dollar. Approximately 68% of Hurco’s sales during the 2005 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.
New order
bookings for the second quarter of fiscal 2005 were also the highest in the
company’s history and totaled $32,932,000, an increase of $10,587,000, or 47%,
from the amount recorded in the second quarter of 2004. Approximately
$1,300,000, or 12%, of the increase was attributable to currency translation.
For the six months ended April 30, 2005, new orders totaled $59,816,000 and
increased $13,925,000, or 31%, over the 2004 period of which $2,500,000, or 18%,
of the increase was attributable to currency translation. Backlog was
$11,473,000 at April 30, 2005, compared to $9,629,000 at January 31, 2005, and
$12,746,000 at October 31, 2004.
Gross
margin for the second quarter of fiscal 2005 was 34.7% compared to 30.6% for the
prior year period. The improvement was due to the combined effects of increased
unit sales and the favorable effects of stronger European currencies. Selling,
general and administrative expenses were $6,363,000 for the 2005 period, an
increase of $1,236,000, or 24%, over the amount recorded for the corresponding
2004 period, due to increased research and development spending and sales and
marketing expenses.
Operating
income for the second quarter of fiscal 2005 was a record for Hurco and totaled
$4,404,000, or 14% of sales and service fees, compared to $2,286,000, or 9% of
sales and service fees, for the same period in the prior year.
Total
debt was $4,395,000 at April 30, 2005, as compared to $4,600,000 at October 31,
2004, and represented 8% of the Company’s total capitalization, which aggregated
$52,641,000. As of April 30, 2005, the Company had unutilized credit facilities
of $11,047,000 available for direct borrowing or commercial letters of
credit.
Michael
Doar, Chief Executive Officer, stated, "The financial results for our second
quarter are very rewarding because they reflect what our company can do when we
focus our efforts on designing and building the best machine tools and software
for the markets we serve. We recorded record orders in the second quarter
indicating the growing enthusiasm for our expanded line of machine tools all
over the world. Even in Europe, where the economy has been somewhat soft, the
dollar value of orders increased 29% in the second quarter of 2005 compared to
the first quarter of 2005.”
“The
customer response to our machines at the shows we attended in China and
Singapore were very positive. In addition, the introduction of our lathe product
line continues to be on schedule and positive as lathe sales totaled
approximately $1,400,000 during the second quarter and has contributed
$2,200,000 to sales for the full fiscal year.”
“We are
building momentum and making the most of our strengths and opportunities. We
want to continue to gain market share in the U.S. and we are expanding our
presence in China. We also have begun to explore our opportunities in
India.”
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 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
317-293-5309
|
Hurco
Companies, Inc. |
|||||||||||||
|
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS |
|||||||||||||
|
(In
thousands, except per-share data) |
|||||||||||||
|
Three
Months Ended April 30, |
Six
Months Ended April 30, |
||||||||||||
|
2005 |
|
2004 |
|
2005 |
|
2004 |
|||||||
|
(unaudited)
|
(unaudited) |
||||||||||||
|
Sales
and service fees |
$ |
30,990 |
$ |
24,255 |
$ |
61,236 |
$ |
46,973 |
|||||
|
Cost
of sales and service |
20,223
|
16,842
|
40,729
|
33,029
|
|||||||||
|
Gross
profit |
10,767
|
7,413
|
20,507
|
13,944
|
|||||||||
|
Selling,
general and administrative expenses |
6,363
|
5,127
|
12,550
|
10,054
|
|||||||||
|
Operating
income |
4,404
|
2,286
|
7,957
|
3,890
|
|||||||||
|
Interest
expense |
86
|
117
|
169
|
261
|
|||||||||
|
Variable
Option Expense |
-
|
67
|
-
|
322
|
|||||||||
|
Other
income (expense), net |
(238 |
) |
23
|
(309 |
) |
(147 |
) | ||||||
|
Income
before taxes |
4,080
|
2,125
|
7,479
|
3,160
|
|||||||||
|
Provision
for income taxes |
781
|
388
|
1,150
|
754
|
|||||||||
|
Net
income |
$ |
3,299 |
$ |
1,737 |
$ |
6,329 |
$ |
2,406 |
|||||
|
Earnings
per common share |
|||||||||||||
|
Basic |
$ |
0.53 |
$ |
0.31 |
$ |
1.03 |
$ |
0.43 |
|||||
|
Diluted |
$ |
0.52 |
$ |
0.29 |
$ |
1.00 |
$ |
0.41 |
|||||
|
Weighted
average common shares outstanding |
|||||||||||||
|
Basic |
6,193
|
5,695
|
6,131
|
5,641
|
|||||||||
|
Diluted |
6,370
|
5,976
|
6,307
|
5,838
|
|||||||||
|
OTHER
CONSOLIDATED FINANCIAL DATA |
Three
Months Ended April 30, |
Six
Months Ended April 30, |
|||||||||||
|
Operating
Data: |
2005 |
|
|
2004 |
|
|
2005 |
|
|
2004 |
|||
|
(unaudited) |
(Unaudited) |
||||||||||||
|
Gross
margin |
34.7 |
% |
30.6 |
% |
33.5 |
% |
29.7 |
% | |||||
|
SG&A
expense as a percentage of sales |
20.5 |
% |
21.1 |
% |
20.5 |
% |
21.4 |
% | |||||
|
Operating
income as a percentage of sales |
14.2 |
% |
9.4 |
% |
13.0 |
% |
8.3 |
% | |||||
|
Income
before taxes as a percentage of sales |
13.2 |
% |
8.8 |
% |
12.2 |
% |
6.7 |
% | |||||
|
Depreciation |
305
|
310
|
622
|
641
|
|||||||||
|
Capital
expenditures |
452
|
519
|
1,075
|
990
|
|||||||||
|
Balance
Sheet Data: |
4/30/2005 |
|
|
4/30/2004 |
|||||||||
|
Working
capital (excluding short term debt) |
$ |
35,504 |
$ |
23,057 |
|||||||||
|
Days
sales outstanding |
44
|
47
|
|||||||||||
|
Inventory
turns |
2.3
|
2.6
|
|||||||||||
|
Capitalization |
|||||||||||||
|
Total
debt |
$ |
4,395 |
$ |
5,330 |
|||||||||
|
Shareholders'
equity |
48,246
|
33,347
|
|||||||||||
|
Total |
$ |
52,641 |
$ |
38,677 |
|||||||||
|
Hurco
Companies, Inc. |
|||||||
|
CONDENSED
CONSOLIDATED BALANCE SHEET |
|||||||
|
(In
thousands, except per-share data) |
|||||||
|
April
30, |
October
31, |
||||||
|
|
|
2005 |
|
2004 |
|||
|
(unaudited)
|
(audited)
|
||||||
ASSETS |
|||||||
Current
assets: |
|||||||
|
Cash
and cash equivalents |
$ |
11,669 |
$ |
8,249 |
|||
|
Cash
- restricted |
-
|
277
|
|||||
|
Accounts
receivable |
18,195
|
17,337
|
|||||
|
Inventories |
33,828
|
28,937
|
|||||
|
Other |
3,494
|
1,672
|
|||||
|
Total
current assets |
67,186
|
56,472
|
|||||
|
Property
and equipment: |
|||||||
|
Land |
761
|
761
|
|||||
|
Building |
7,218
|
7,205
|
|||||
|
Machinery
and equipment |
12,880
|
12,106
|
|||||
|
Leasehold
improvements |
712
|
676
|
|||||
|
21,571
|
20,748
|
||||||
|
Less
accumulated depreciation and amortization |
(13,003 |
) |
(12,512 |
) | |||
|
8,568
|
8,236
|
||||||
|
Software
development costs, less amortization |
3,098
|
2,920
|
|||||
|
Investments
and other assets |
5,825
|
5,818
|
|||||
$ |
84,677 |
$ |
73,446 |
||||
|
LIABILITIES
AND SHAREHOLDERS' EQUITY |
|||||||
|
Current
liabilities: |
|||||||
|
Accounts
payable |
$ |
20,189 |
$ |
18,361 |
|||
|
Accrued
expenses |
11,493
|
11,447
|
|||||
|
Current
portion of long-term debt |
321
|
317
|
|||||
|
Total
current liabilities |
32,003
|
30,125
|
|||||
|
Non-current
liabilities: |
|||||||
|
Long-term
debt |
4,074
|
4,283
|
|||||
|
Deferred
credits and other obligations |
354
|
583
|
|||||
|
Total
liabilities |
36,431
|
34,991
|
|||||
|
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 6,201,920 and |
|||||||
|
6,019,594
shares issued, respectively |
620
|
602
|
|||||
|
Additional
paid-in capital |
47,487
|
46,778
|
|||||
|
Retained
earnings (deficit) |
2,887
|
(3,442 |
) | ||||
|
Accumulated
other comprehensive income |
(2,748 |
) |
(5,483 |
) | |||
|
Total
shareholders' equity |
48,246
|
38,455
|
|||||
$ |
84,677 |
$ |
73,446 |
||||