ELMIRA, N.Y., May 6, 2011 /PRNewswire/ -- Hardinge Inc.
(Nasdaq: HDNG), a leading international provider of advanced
metal-cutting solutions, today announced increased net income,
sales and orders for the Company's first quarter ended March 31, 2011.
First Quarter 2011 Performance Summary:
- Orders increased 98%, to $113.8
million, compared to the prior year
- Sales were $73.5 million, a 70%
increase compared to the prior year
- Net income was $1.4 million, or
$0.12 per diluted share, compared
with a net loss of ($5.2) million, or
($0.45) per diluted share for the
same period of 2010.
"The worldwide market recovery for machine tools continues, led
by very strong growth in China,"
said Richard L. Simons, President
and Chief Executive Officer. "Our global organizations
continue to provide an effective platform for Hardinge to
participate appreciably in this growth."
"As expected, our first quarter sales were significantly
stronger than first quarter 2010, and we remain encouraged by the
prospects for a strong and profitable 2011. First quarter
2011 sales growth, like order activity, was driven by strong demand
across all of the Company's geographic markets," said Mr.
Simons.
"We began the year with a substantial backlog and our first
quarter orders of $113.8 million were
a record for the Company. This activity included another
large order, of $11.0 million, from a
Chinese supplier to the consumer electronics industry. In
addition, we experienced strong order activity from several
industries in China, resulting in
new unprecedented order levels. The positive momentum we
experienced in the United States
was driven by order activity from our new distribution partners,
and orders in Europe reflected
stronger distributor demand and their increased confidence in the
vitality of the economic recovery. This combined activity
helped to push our order volume up 37% over an already strong
$83 million in fourth quarter 2010,"
Mr. Simons added.
The following tables summarize orders and sales by geographic
region for the quarters ended March 31,
2011 and 2010:
|
Quarter
Ended
|
|
|
|
Quarter
Ended
|
|
|
|
March
31,
(in
thousands)
|
|
|
|
March
31,
(in
thousands)
|
|
|
|
Orders from
Customers
in:
|
2011
|
2010
|
%
Change
|
|
Sales to
Customers
in:
|
2011
|
2010
|
%
Change
|
|
|
North America
|
$ 23,205
|
$ 12,820
|
81%
|
|
North America
|
$ 17,214
|
$ 11,550
|
49%
|
|
|
Europe
|
29,425
|
18,422
|
60%
|
|
Europe
|
19,815
|
12,418
|
60%
|
|
|
Asia & Other
|
61,128
|
26,245
|
133%
|
|
Asia & Other
|
36,453
|
19,202
|
90%
|
|
|
$113,758
|
$ 57,487
|
98%
|
|
|
$ 73,482
|
$ 43,170
|
70%
|
|
|
|
|
|
|
|
|
|
|
"We will sound one note of caution in regard to an otherwise
very satisfying period of customer activity," said Mr. Simons.
"We remain concerned with the potential for component
shortages which could affect the timing of shipments in the short
to medium term. These industry wide shortages are related to
the accelerated ramp up of global demand for machine tools, as well
as production disruptions for suppliers of these components
resulting from the earthquake that impacted Japan. Currently, this situation remains
fluid, and we continue to monitor potential changes to component
availability very closely."
The Company's gross profit was $19.1
million for first quarter 2011, an increase of $10.1 million, or 113%, compared to the prior
year first quarter. Gross margin for the quarter was 26.0%,
up from 20.7% for the same period in 2010. The improvement in
the Company's first quarter 2011 gross margin was driven by the
significant increase in volume against fixed expenses, cost
management initiatives and reduced price discounting compared with
early 2010.
Selling, general and administrative expenses were $16.7 million, or 22.7% of net sales, for first
quarter 2011 compared to $14.4
million, or 33.4% of net sales, for the prior year first
quarter. The $2.3 million
increase is primarily related to increased variable selling
expenses on the higher sales volume.
Dividend Declared
The Company's Board of Directors declared a cash dividend of
$0.005 per share on the Company's
common stock, payable on June 10,
2011 to stockholders of record as of June 1, 2011.
Conference Call
The Company will host a conference call today at 11:00 a.m. Eastern Time to discuss the results
for the quarter. The call can be accessed live at
1-866-790-1863 (904-520-5759 for calls originating outside the U.S.
and Canada) or via the internet at
http://www.videonewswire.com/event.asp?id=78143. A recording
of the call will be available approximately one hour after its
conclusion at 888-284-7564 (904-596-3174 outside the U.S. &
Canada) using the reference
number: 2633581. This telephone recording will be available
through June 30, 2011. A
transcript of the call will be available from the "Investor
Relations" section of the Company's website, www.hardinge.com, for
one year.
Hardinge is a global designer, manufacturer and distributor of
machine tools, specializing in SUPER PRECISION™ and precision CNC
Lathes, high performance Machining Centers, high-end cylindrical
and jig Grinding Machines, and technologically advanced Workholding
& Rotary Products. The Company's products are distributed
to most of the industrialized markets around the world with
approximately 77% of the 2010 sales outside of North America. Hardinge has a very
diverse international customer base and serves a wide variety of
end-user markets. This customer base includes metalworking
manufacturers which make parts for a variety of industries, as well
as a wide range of end users in the aerospace, agricultural,
transportation, basic consumer goods, communications and
electronics, construction, defense, energy, pharmaceutical and
medical equipment, and recreation industries, among others.
The Company has manufacturing operations in Switzerland, Taiwan, the United
States, China and the
United Kingdom. Hardinge's
common stock trades on the NASDAQ Global Select Market under the
symbol, "HDNG." For more information, please visit
http://www.hardinge.com.
This news release contains forward-looking statements (within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended). Such statements are based on management's current
expectations that involve risks and uncertainties. Any statements
that are not statements of historical fact or that are about future
events may be deemed to be forward-looking statements. For example,
words such as "may," "will," "should," "estimates," "predicts,"
"potential," "continue," "strategy," "believes," "anticipates,"
"plans," "expects," "intends," and similar expressions are intended
to identify forward-looking statements. The Company's actual
results or outcomes and the timing of certain events may differ
significantly from those discussed in any forward-looking
statements. The Company undertakes no obligation to publicly update
any forward-looking statement, whether as a result of new
information, future events, or otherwise.
|
HARDINGE INC. AND
SUBSIDIARIES
|
|
|
|
Consolidated Balance
Sheets
|
March
31,
|
December
31,
|
|
|
(In Thousands Except Share and
Per Share Data)
|
2011
|
2010
|
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$ 24,945
|
$ 30,945
|
|
|
Restricted cash
|
5,144
|
5,225
|
|
|
Accounts receivable,
net
|
46,567
|
45,819
|
|
|
Notes receivable,
net
|
3,669
|
1,753
|
|
|
Inventories,
net
|
115,786
|
105,306
|
|
|
Deferred income
taxes
|
1,383
|
1,364
|
|
|
Prepaid
expenses
|
12,777
|
11,518
|
|
|
Total current assets
|
210,271
|
201,930
|
|
|
Net property, plant and
equipment
|
59,945
|
56,628
|
|
|
Deferred income
taxes
|
618
|
451
|
|
|
Intangible
assets
|
13,422
|
13,642
|
|
|
Pension assets
|
2,228
|
2,111
|
|
|
Other long-term
assets
|
51
|
85
|
|
|
Total non-current
assets
|
76,264
|
72,917
|
|
|
Total assets
|
$ 286,535
|
$ 274,847
|
|
|
Liabilities and shareholders'
equity
|
|
|
|
|
Accounts
payable
|
$ 34,599
|
$ 33,533
|
|
|
Notes payable to
bank
|
7,000
|
1,650
|
|
|
Accrued
expenses
|
21,200
|
22,791
|
|
|
Customer
deposits
|
15,681
|
10,468
|
|
|
Accrued income
taxes
|
3,487
|
3,656
|
|
|
Deferred income
taxes
|
2,686
|
2,546
|
|
|
Current portion of
long-term debt
|
612
|
617
|
|
|
Total current
liabilities
|
85,265
|
75,261
|
|
|
Long-term debt
|
2,602
|
2,777
|
|
|
Accrued pension
liability
|
28,553
|
29,949
|
|
|
Accrued postretirement
benefits
|
2,210
|
2,274
|
|
|
Accrued income
taxes
|
2,187
|
2,106
|
|
|
Deferred income
taxes
|
2,549
|
2,516
|
|
|
Other
liabilities
|
1,974
|
2,062
|
|
|
Total non-current
liabilities
|
40,075
|
41,684
|
|
|
Common Stock - $0.01
par value, 12,472,992 issued
|
125
|
125
|
|
|
Additional paid-in
capital
|
114,200
|
114,183
|
|
|
Retained
earnings
|
54,960
|
53,637
|
|
|
Treasury shares –
854,980 shares at March 31, 2011 and 865,703 shares at
December 31, 2010
|
(10,890)
|
(11,022)
|
|
|
Accumulated other
comprehensive income
|
2,800
|
979
|
|
|
Total shareholders'
equity
|
161,195
|
157,902
|
|
|
Total liabilities and
shareholders' equity
|
$ 286,535
|
$ 274,847
|
|
|
|
|
|
|
|
HARDINGE INC. AND
SUBSIDIARIES
Consolidated Statements of
Operations
(In Thousands Except Per Share
Data)
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2011
|
2010
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Net sales
|
|
$ 73,482
|
$ 43,170
|
|
|
Cost of sales
|
|
54,406
|
34,230
|
|
|
Gross profit
|
|
19,076
|
8,940
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
16,673
|
14,398
|
|
|
Gain on sale of
assets
|
|
(25)
|
(272)
|
|
|
Other expense
|
|
177
|
71
|
|
|
Income (loss) from
operations
|
|
2,251
|
(5,257)
|
|
|
|
|
|
|
|
Interest expense
|
|
78
|
110
|
|
|
Interest income
|
|
(39)
|
(35)
|
|
|
Income (loss) before income
taxes
|
|
2,212
|
(5,332)
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
831
|
(146)
|
|
|
Net income (loss)
|
|
$ 1,381
|
$ (5,186)
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data:
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per
share:
|
|
$ 0.12
|
$ (0.45)
|
|
|
|
|
|
|
|
Diluted earnings (loss) per
share:
|
|
$ 0.12
|
$ (0.45)
|
|
|
|
|
|
|
|
Cash dividends declared per
share
|
|
$ 0.005
|
$ 0.005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HARDINGE INC. AND
SUBSIDIARIES
Consolidated Statements of Cash
Flows
(In Thousands)
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2011
|
2010
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
Net income (loss)
|
$
1,381
|
$
(5,186)
|
|
|
Adjustments to reconcile net
income (loss) to net cash (used in) provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
1,916
|
1,807
|
|
|
Debt issuance
amortization
|
26
|
80
|
|
|
Provision for
deferred income taxes
|
(1,085)
|
(8)
|
|
|
(Gain) on sale of
assets
|
(25)
|
(273)
|
|
|
Unrealized
intercompany foreign currency transaction (gain) loss
|
(215)
|
59
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
Accounts receivable
|
(449)
|
9,152
|
|
|
Notes
receivable
|
(1,859)
|
(504)
|
|
|
Inventories
|
(9,311)
|
(5,917)
|
|
|
Prepaids and other assets
|
(1,079)
|
(1,071)
|
|
|
Accounts payable
|
1,081
|
5,641
|
|
|
Accrued expenses
|
2,388
|
(346)
|
|
|
Accrued postretirement benefits
|
176
|
(149)
|
|
|
Net cash (used in) provided by
operating activities
|
(7,055)
|
3,285
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Capital expenditures
|
(4,354)
|
(657)
|
|
|
Proceeds on sale of
assets
|
25
|
283
|
|
|
Net cash (used in) investing
activities
|
(4,329)
|
(374)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Borrowings under short-term
notes payable to bank
|
5,380
|
884
|
|
|
(Decrease) in long-term
debt
|
(154)
|
(141)
|
|
|
Purchase of treasury stock,
net
|
33
|
-
|
|
|
Debt issuance fees
paid
|
(13)
|
(67)
|
|
|
Dividends paid
|
(58)
|
(58)
|
|
|
Net cash provided by financing
activities
|
5,188
|
618
|
|
|
|
|
|
|
Effect of exchange rate changes
on cash
|
196
|
(131)
|
|
|
Net (decrease) increase in
cash
|
(6,000)
|
3,398
|
|
|
|
|
|
|
Cash at beginning of
period
|
30,945
|
20,419
|
|
|
|
|
|
|
Cash at end of period
|
$ 24,945
|
$ 23,817
|
|
|
|
|
|
|
|
Reconciliation of net income
(loss) to EBITDA
|
|
|
Three Months
Ended
March
31,
|
|
|
|
2011
|
2010
|
Change
|
|
|
(dollars in
thousands)
|
|
|
GAAP net income
(loss)
|
$ 1,381
|
$ (5,186)
|
$ 6,567
|
|
|
Plus: Interest expense,
net of interest income
|
39
|
75
|
(36)
|
|
|
Income tax expense (benefit)
|
831
|
(146)
|
977
|
|
|
Depreciation and amortization
|
1,916
|
1,807
|
109
|
|
|
EBITDA (1)
|
$ 4,167
|
$ (3,450)
|
$ 7,617
|
|
|
|
|
|
|
|
(1) EBITDA, a non-GAAP
financial measure, is defined as earnings before interest, taxes,
depreciation and amortization. EBITDA is used by management to
internally measure our operating and management performance and by
investors as a supplemental financial measure to evaluate the
performance of our business that, when viewed with our GAAP results
and the accompanying reconciliation, we believe provides additional
information that is useful to gain an understanding of the factors
and trends affecting our business.
|
|
|
|
|
|
|
Contact:
Edward Gaio
Vice President and CFO
(607) 378-4207
SOURCE Hardinge Inc.