Thx Lexi! Will check it, CPHI 2.00 again! HURC 29.45 HOD is up big 2nd day in a row after strong earnings yesterday: Hurco Reports Record Full-Year and Fourth Quarter Results
Wednesday December 6, 7:15 pm ET
INDIANAPOLIS--(BUSINESS WIRE)--Hurco Companies, Inc. (Nasdaq:HURC - News) announced today that it's net sales for fiscal 2006 were the highest in the company's 37-year history, totaling $148,517,000, an increase of $23,008,000, or 18%, over fiscal 2005. Net sales for the fourth quarter of fiscal 2006 also were a record and totaled $43,164,000, an increase of $8,446,000, or 24%, over the corresponding 2005 period.
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Operating income for fiscal 2006 was a record $22,628,000, or 15.2% of sales, compared to $16,501,000, or 13.1% of sales, in fiscal 2005. Operating income in the fourth quarter totaled $6,515,000, or 15.1% of sales, compared to $5,318,000, or 15.3% of sales, in the same period one year ago.
Net income for fiscal 2006 was $15,479,000, or $2.42 per share reflecting the fact that Hurco was fully taxable in 2006 and incurred income tax expense of $7,635,000. In contrast Hurco had no income tax expense in 2005 due to the utilization of domestic net operating loss carryforwards and therefore, net income for fiscal 2005 was $16,443,000, or $2.60 per share. Net income for fourth quarter of fiscal 2006 was $4,714,000, or $.74 per share compared to net income of $7,235,000, or $1.13 per share.
New order bookings in fiscal 2006, were a record $154,767,000, an increase of $31,905,000, or 26%, over the prior year. Unit orders increased by 33% in the United States, 29% in Europe and 68% in Asia. New order bookings for the fourth quarter of fiscal 2006, also a record, totaled $42,087,000, an increase of $7,932,000, or 23%, over the corresponding 2005 period.
The financial statement impact of translating foreign currency denominated sales and orders to US dollars was an insignificant amount for the fourth quarter and full fiscal year.
Hurco's gross margin for fiscal 2006 was 35.9% compared to 33.9% for the prior year, reflecting both higher unit sales and improved mix. Gross margin for the fourth quarter of fiscal 2006 was 38.0% compared to 35.1% for the corresponding 2005 period. Selling, general and administrative expenses were $30,697,000 for fiscal 2006, an increase of $4,640,000 over the amount for fiscal 2005. Selling, general and administrative expenses were $9,869,000 for the fourth quarter of fiscal 2006, an increase of $2,999,000 over the amount recorded for the same period in 2005. The increase in selling, general and administrative expenses for the fourth quarter and the fiscal year 2006 were primarily attributable to increased sales and marketing expenses for local and international trade shows, agent's commissions, and expansion of sales in emerging markets.
Cash and cash equivalents totaled $29,846,000 at October 31, 2006 compared to $17,559,000 at October 31, 2005 and $24,504,000 at the third quarter ending July 31, 2006. Total debt was $4,010,000 at October 31, 2006 and represented 5.1% of the company's total capitalization, which aggregated $79,385,000.
Michael Doar, Chief Executive Officer, stated, "This was another great year for Hurco as we achieved even higher milestones, putting the company in the best financial position in it's history. Much of our success is due to the strategic planning that began in 2001. Focusing on our core competencies, we have centered our efforts around three objectives: identifying our customers and understanding how to best serve them; defining our unique selling proposition by understanding what we do better than anyone else; and maximizing profits for both the short term and the long term.
As a global company with more than 60 percent of our sales outside of the United States, understanding emerging markets is an integral part of sustainable success. Using a disciplined approach to globalization, we have leveraged technical resources, system platforms, and processes to facilitate a consistent, yet flexible, brand identity and an ability to conduct global business efficiently."
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, 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.
Hurco Companies, Inc.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per-share data)
Three Months Ended Twelve Months Ended
October 31, October 31,
----------------------- -------------------
2006 2005 2006 2005
-------------------------------------- ----------- --------- ---------
(audited) (audited)
Sales and service fees $43,164 $34,718 $148,517 $125,509
Cost of sales and service 26,780 22,530 95,192 82,951
----------- ----------- --------- ---------
Gross profit 16,384 12,188 53,325 42,558
Selling, general and
administrative expenses 9,869 6,870 30,697 26,057
Severance expense - - - -
----------- ----------- --------- ---------
Operating income 6,515 5,318 22,628 16,501
Interest expense 18 107 259 355
Other income (expense), net 337 196 745 (64)
----------- ----------- --------- ---------
Income before taxes 6,834 5,407 23,114 16,082
Provision (benefit) for
income taxes 2,120 (1,828) 7,635 (361)
----------- ----------- --------- ---------
Net income $4,714 $7,235 $15,479 $16,443
=========== =========== ========= =========
Earnings per common share
Basic $0.75 $1.16 $2.45 $2.66
=========== =========== ========= =========
Diluted $0.74 $1.13 $2.42 $2.60
=========== =========== ========= =========
Weighted average common
shares outstanding
Basic 6,317 6,216 6,317 6,171
=========== =========== ========= =========
Diluted 6,396 6,384 6,397 6,336
=========== =========== ========= =========
OTHER CONSOLIDATED Three Months Ended Twelve Months Ended
FINANCIAL DATA October 31, October 31,
----------------------- -------------------
Operating Data: 2006 2005 2006 2005
----------- ----------- --------- ---------
(audited) (audited)
Gross margin 38.0% 35.1% 35.9% 33.9%
SG&A expense as a
percentage of sales 22.9% 19.8% 20.7% 20.8%
Operating income as a
percentage of sales 15.1% 15.3% 15.2% 13.1%
Income before taxes as a
percentage of sales 15.8% 15.6% 15.6% 12.8%
Depreciation 387 387 1,504 1,332
Capital expenditures 1,183 1,284 3,301 3,040
Balance Sheet Data: 10/31/2006 10/31/2005
----------- -----------
Working capital (excluding
short term debt) $56,678 $43,183
Days sales outstanding 41 41
Inventory turns 2.2 2.6
Capitalization
Total debt $4,010 $4,136
Shareholders' equity 75,375 58,944
----------- -----------
Total $79,385 $63,080
=========== ===========
Hurco Companies, Inc.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands, except per-share data)
October 31, October 31,
2006 2005
---------------------------------------------------------- -----------
(audited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $29,846 $17,559
Accounts receivable 22,248 20,100
Inventories 43,343 29,530
Deferred tax assets 2,768 3,043
Other 2,677 3,586
----------- -----------
Total current assets 100,882 73,818
----------- -----------
Property and equipment:
Land 761 761
Building 7,234 7,205
Machinery and equipment 12,952 13,170
Leasehold improvements 1,147 1,102
----------- -----------
22,094 22,238
Less accumulated depreciation and
amortization (12,944) (13,187)
----------- -----------
9,150 9,051
----------- -----------
Deferred tax assets 1,121 1,346
Software development costs, less amortization 5,580 3,752
Investments and other assets 7,381 6,147
----------- -----------
$124,114 $94,114
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $26,605 $17,051
Accrued expenses 17,599 13,584
Current portion of long-term debt 136 126
----------- -----------
Total current liabilities 44,340 30,761
----------- -----------
Non-current liabilities:
Long-term debt 3,874 4,010
Deferred credits and other obligations 525 399
----------- -----------
Total liabilities 48,739 35,170
----------- -----------
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
6,346,020 and 6,220,220 shares issued,
respectively 635 622
Additional paid-in capital 50,011 48,701
Retained earnings (deficit) 27,998 13,001
Accumulated other comprehensive income (3,269) (3,380)
----------- -----------
Total shareholders' equity 75,375 58,944
----------- -----------
$124,114 $94,114
=========== ===========
Contact:
Hurco Companies, Inc.
John Oblazney, 317-293-5309
Vice President & Chief Financial Officer
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Source: Hurco Companies, Inc. |
