SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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 22, 2003
HURCO COMPANIES, INC.
(Exact name of registrant as specified in its charter)
INDIANA 0-9143 35-1150732
(State or other jurisdiction (Commission File No.) (I.R.S. Employer
of incorporation or organization) Identification No.)
ONE TECHNOLOGY WAY
INDIANAPOLIS, INDIANA 46268
(Address of principal executive offices and zip code)
(317) 293-5309
(Registrant telephone number, including area code)
NOT APPLICABLE
(Former name or former address, if changed since last report)
ITEM 9. REGULATION FD DISCLOSURE
Results of Operations and Financial Condition
On May 22, 2003, Hurco Companies, Inc. (the "Registrant") reported its
results of operations for the second quarter ended April 30, 2003. The
Registrant's earnings release for the quarter is attached as Exhibit 99(a) 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 9 and Item 12 of Form 8-K.
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 22, 2003
HURCO COMPANIES, INC.
By: /s/ ROGER J. WOLF
-----------------
Roger J. Wolf
Senior Vice President and
Chief Financial Officer
EXHIBIT 99
HURCO REPORTS SECOND QUARTER 2003 RESULTS
INDIANAPOLIS, INDIANA, -- May 22, 2003--Hurco Companies, Inc. (Nasdaq:HURC)
today announced that for its second fiscal quarter, which ended April 30, 2003,
the Company recorded a profit of $139,000, or $.02 per share, compared to a loss
of $4,211,000, or $.75 per share, for the corresponding period a year ago. For
the first six months of fiscal 2003, the Company recorded a loss of $443,000, or
$.08 per share, compared to a loss of $5,852,000, or $1.05 per share, for the
corresponding 2002 period.
Sales and service fees for the second quarter were $17,453,000, approximately
$2,458,000 (or 16%) higher than in the corresponding 2002 period. Sales and
service fees reported in U.S. dollars benefited from significantly stronger
European currencies, when translating foreign sales for financial reporting
purposes. When measured at constant exchange rates, sales and service fees
increased $521,000, or 3.5%, from the prior year period.
New order bookings for the second quarter of fiscal 2003 were $20,550,000, an
increase of 25% from the $16,461,000 recorded in the second quarter of 2002.
Backlog was $7,250,000 at April 30, 2003, compared to $3,904,000 at January 31,
2003, and $5,315,000 at October 31, 2002.
Gross margin for the quarter increased to 29.4% from 19.8% (exclusive of an
inventory write-down of $1,083,000) in the prior year period, due to a
combination of cost cutting initiatives carried out in 2002 and stronger
European currencies in relation to the US dollar in the 2003 period. Selling,
general and administrative expenses were $4,563,000, $28,000 more than the
second quarter of 2002.
Total debt was $8,516,000 at April 30, 2003, as compared to $9,867,000 at
January 31, 2003, and constituted 23.7% of total capitalization. As of April 30,
2003, the Company had unutilized credit facilities of $6,648,000 available for
direct borrowing or commercial letters of credit.
Michael Doar, Chief Executive Officer, stated "We are encouraged by the small
profit earned in the second quarter. However, competition in our worldwide
markets remains very stiff. We believe we are seeing signs of a slow recovery in
our US market, but in Germany the economy continues to weaken. Our outlook is
guarded for the balance of fiscal 2003."
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.
Hurco Companies, Inc.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per-share data)
Three Months Ended Six Months Ended
April 30, April 30,
2003 2002 2003 2002
(unaudited) (unaudited)
Sales and service fees $ 17,453 $ 14,995 $33,406 $ 33,515
Cost of sales and service 12,325 12,029 24,284 26,546
Cost of sales - restructuring - 1,083 - 1,083
--------- --------- --------- ---------
Gross profit 5,128 1,883 9,122 5,886
Selling, general and administrative expenses 4,563 4,535 8,991 9,749
Restructuring expense (credit) and other - 1,395 - 1,751
--------- --------- --------- ---------
Operating income (loss) 565 (4,047) 131 (5,614)
License fee income, net - - - 163
Interest expense 150 133 309 310
Other income (expense), net (68) (2) 48 37
--------- --------- --------- ---------
Income (loss) before taxes 347 (4,182) (130) (5,724)
Provision for income taxes 208 29 313 128
--------- --------- --------- ---------
Net income (loss) $ 139 $ (4,211) $ (443) $ (5,852)
========= ========= ========= =========
Earnings (loss) per common share
Basic $ 0.02 $ (0.75) $ (0.08) $ (1.05)
========= ========= ========= =========
Diluted $ 0.02 $ (0.75) $ (0.08) $ (1.05)
========= ========= ========= =========
Weighted average common shares outstanding
Basic 5,583 5,583 5,583 5,583
========= ========= ========= =========
Diluted 5,583 5,583 5,583 5,583
========= ========= ========= =========
OTHER CONSOLIDATED FINANCIAL DATA Three Months Ended Six Months Ended
April 30, April 30,
Operating Data: 2003 2002 2003 2002
(unaudited) (unaudited)
Gross margin, excluding restructuring charges 29.4% 19.8% 27.3% 20.8%
SG&A expense as a percentage of sales 26.1% 30.2% 26.9% 29.1%
Operating income (loss) as a percentage of sales 3.2% -27.0% 0.4% -16.8%
Pre-tax income (loss) as a percentage of sales 2.0% -27.9% -0.4% -17.1%
Depreciation 366 477 715 990
Capital expenditures 329 452 497 901
Balance Sheet Data: 4/30/2003 4/30/2002
Working capital (excluding short term debt) $ 21,108 $24,557
Days sales outstanding 49 53
Inventory turns 2.1 2.3
Net assets per $ of revenue (trailing twelve months)
Working capital, net $ 0.26 $ 0.28
All other 0.25 0.23
-------- --------
Total $ 0.51 $ 0.51
======== ========
Hurco Companies, Inc.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands, except per-share data)
April 30, October 31,
2003 2002
(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 2,948 $ 4,358
Cash - restricted 1,150 -
Accounts receivable 11,397 13,425
Inventories 26,090 22,548
Other 1,615 1,204
-------- --------
Total current assets 43,200 41,535
-------- --------
Property and equipment:
Land 761 761
Building 7,203 7,203
Machinery and equipment 10,390 10,144
Leasehold improvements 483 396
-------- --------
18,837 18,504
Less accumulated depreciation and amortization (10,236) (9,696)
-------- --------
8,601 8,808
Software development costs, less amortization 1,625 1,604
Investments and other assets 4,933 5,205
-------- --------
$ 58,359 $ 57,152
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 12,065 $ 9,856
Accrued expenses 10,027 10,016
Bank debt - current 2,493 -
Current portion of long-term debt 1,316 1,313
-------- --------
Total current liabilities 25,901 21,185
-------- --------
Non-current liabilities:
Long-term debt 4,707 7,572
Deferred credits and other obligations 408 378
-------- --------
Total liabilities 31,016 29,135
-------- --------
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 5,583,158 and
5,583,158 shares issued, respectively 558 558
Additional paid-in capital 44,717 44,717
Accumulated deficit (10,616) (10,173)
Accumulated other comprehensive income (7,316) (7,085)
-------- --------
Total shareholders' equity 27,343 28,017
-------- --------
$ 58,359 $ 57,152
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