ELMIRA, N.Y. Nov. 9, 2011
/PRNewswire/ -- Hardinge Inc. (NASDAQ: HDNG), a leading
international provider of advanced metal-cutting solutions, today
announced net income of $4.3 million,
or $0.36 per diluted share, on sales
of $90.4 million for the quarter
ended September 30, 2011.
Third Quarter 2011 Highlights:
- Net Income was $4.3 million,
compared to a net loss of $1.2
million in the prior year
- Net Sales increased 26% compared to the prior year
- Sales in North America and
Europe increased 75% and 83%,
respectively, compared to the prior year
"Our overall performance was very solid for the third quarter,
characterized by positive earnings momentum, substantial sales
growth, and effective expense control," said Richard L. Simons, President and Chief Executive
Officer. "Global manufacturing activity remains relatively
strong as evidenced by the Company's significant sales growth for
North America and Europe during the quarter. Hardinge's global
manufacturing and sales presence remains an effective platform from
which to compete for machine tool orders."
The following tables summarize orders and sales by geographic
region for the three and nine months ended September 30, 2011
and 2010:
|
|
|
Three Months
Ended
|
|
|
|
Three Months
Ended
|
|
|
|
September
30,
(in
thousands)
|
|
|
|
September
30,
(in
thousands)
|
|
|
Orders from
Customers
in:
|
2011
|
2010
|
%
Change
|
|
Sales to
Customers
in:
|
2011
|
2010
|
%
Change
|
|
North America
|
$ 20,167
|
$ 15,462
|
30%
|
|
North America
|
$ 22,480
|
$ 12,877
|
75%
|
|
Europe
|
29,735
|
22,366
|
33%
|
|
Europe
|
33,293
|
18,230
|
83%
|
|
Asia & Other
|
31,572
|
32,735
|
(4)%
|
|
Asia & Other
|
34,616
|
40,824
|
(15)%
|
|
|
$81,474
|
$ 70,563
|
15%
|
|
|
$ 90,389
|
$ 71,931
|
26%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
(in
thousands)
|
|
|
|
September
30,
(in
thousands)
|
|
|
Orders from
Customers
in:
|
2011
|
2010
|
%
Change
|
|
Sales to
Customers
in:
|
2011
|
2010
|
%
Change
|
|
North America
|
$
72,788
|
$
48,052
|
51%
|
|
North America
|
$ 58,204
|
$ 43,124
|
35%
|
|
Europe
|
93,490
|
58,591
|
60%
|
|
Europe
|
78,376
|
44,161
|
77%
|
|
Asia & Other
|
137,099
|
107,071
|
28%
|
|
Asia & Other
|
113,947
|
87,714
|
30%
|
|
|
$ 303,377
|
$213,714
|
42%
|
|
|
$250,527
|
$ 174,999
|
43%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Order activity remained solid in the third quarter, up 15% in
comparison to 2010. Year-to-date, order activity remains robust in
comparison to 2010 with significant increases in each region. Third
quarter orders for North America
were up 30% over 2010 and year-to-date orders were up more than 50%
in comparison to the prior year. This activity continues to reflect
manufacturing growth in the region and the growing effectiveness of
the Company's new distribution partners. Orders for Europe were up 33% for third quarter, compared
with last year, and year-to-date orders were up nearly 60% compared
to 2010 mainly due to an improved manufacturing environment.
Asia & Other orders grew by 28% through the first three
quarters of 2011, but were down 4% in the third quarter compared to
2010. Third quarter 2010 included multiple orders from a
China-based supplier to the
consumer electronics industry.
"Our third quarter orders were lower than the very strong pace
the Company achieved in the first half of 2011, but were within our
expectations. We believe that first and second quarter order volume
was driven by customer reaction to anticipated price increases,
along with the expectation of longer delivery lead times. Machine
tool industry economists project continued growth in worldwide
demand in 2012, and we remain confident that the Company will
continue to participate in this global growth." Mr. Simons
said.
The Company's gross profit for third quarter 2011 was
$25.5 million, a 42.4% increase over
gross profit of $17.9 million for
third quarter 2010. The gross margin for the third quarter was
28.3%, up from 24.9% for the same period in 2010. The improvement
in the Company's third quarter 2011 gross margin was driven by our
product mix along with the continued favorable impact of volume
against fixed expenses, cost management initiatives and lower
competitive price discounting compared with 2010.
Selling, general and administrative expenses were $18.9 million, or 21.0% of net sales, for third
quarter 2011 compared to $18.7
million, or 26.0% of net sales, for the prior year third
quarter. The improvement in SG&A as a percent of net
sales reflects increasing sales volume as well as the continued
favorable impact of the Company's comprehensive restructuring
program and the corresponding reduction in fixed expenses.
For the nine months ended September 30, 2011, Hardinge
generated net income of $8.7 million,
or $0.75 per share, compared with a
net loss of $7.2 million, or
($0.63) per share for the same period
in 2010.
Dividend Declared
The Company's Board of Directors declared a cash dividend of
$0.02 per share on the Company's
common stock, payable on December 9, 2011 to stockholders of
record as of November 30, 2011.
EMO Hannover
2011
Hardinge exhibited at EMO Hannover, one of the world's largest machine
tool exhibitions which was held in Hannover, Germany from September 19th to the 24th. Ten new
machines were showcased at EMO between the Company's milling and
turning booth and its grinding products display area. With
approximately 138,000 visitors touring the exhibit area this year,
the Company considers EMO to be an important opportunity to
showcase the quality and capability of Hardinge Group products and
solutions.
Non-GAAP Measures
This release contains the non-GAAP measure EBITDA (Earnings
Before Interest Tax Depreciation and Amortization). Refer to
the accompanying schedules for a discussion of this non-GAAP
measure and reconciliation to the reported GAAP measure.
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 1-866-838-2057 (904-520-5768 for calls
originating outside the U.S. and Canada) or via the internet at
http://www.videonewswire.com/event.asp?id=82666. 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: 2700101. This telephone recording and
related transcript will be available through December 31, 2011
on the "Investor Relations" section of the Company's website,
www.hardinge.com.
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.
Contact:
Edward Gaio
Vice President and CFO
(607) 378-4207
– Financial
Tables Follow –
|
|
|
|
|
HARDINGE INC. AND
SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance
Sheets
|
|
|
|
|
|
|
(In Thousands Except Share and
Per Share Data)
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
21,261
|
|
$
|
30,945
|
|
Restricted cash
|
|
6,510
|
|
|
5,225
|
|
Accounts receivable,
net
|
|
58,678
|
|
|
47,572
|
|
Inventories,
net
|
|
125,788
|
|
|
105,306
|
|
Deferred income
taxes
|
|
1,423
|
|
|
1,364
|
|
Prepaid
expenses
|
|
13,727
|
|
|
11,518
|
|
Total current assets
|
|
227,387
|
|
|
201,930
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
64,996
|
|
|
56,628
|
|
Deferred income
taxes
|
|
966
|
|
|
451
|
|
Intangible assets,
net
|
|
12,837
|
|
|
13,642
|
|
Pension assets
|
|
2,406
|
|
|
2,111
|
|
Other long-term
assets
|
|
62
|
|
|
85
|
|
Total non-current
assets
|
|
81,267
|
|
|
72,917
|
|
Total assets
|
$
|
308,654
|
|
$
|
274,847
|
|
|
|
|
|
|
|
|
Liabilities and shareholders'
equity
|
|
|
|
|
|
|
Accounts
payable
|
$
|
38,811
|
|
$
|
33,533
|
|
Notes payable to
bank
|
|
12,000
|
|
|
1,650
|
|
Accrued
expenses
|
|
30,704
|
|
|
22,791
|
|
Customer
deposits
|
|
14,819
|
|
|
10,468
|
|
Accrued income
taxes
|
|
3,144
|
|
|
3,656
|
|
Deferred income
taxes
|
|
2,769
|
|
|
2,546
|
|
Current portion of
long-term debt
|
|
1,214
|
|
|
617
|
|
Total current
liabilities
|
|
103,461
|
|
|
75,261
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
3,225
|
|
|
2,777
|
|
Accrued pension
liability
|
|
26,499
|
|
|
29,949
|
|
Accrued postretirement
liability
|
|
2,116
|
|
|
2,274
|
|
Accrued income
taxes
|
|
2,746
|
|
|
2,106
|
|
Deferred income
taxes
|
|
2,718
|
|
|
2,516
|
|
Other
liabilities
|
|
2,013
|
|
|
2,062
|
|
Total non-current
liabilities
|
|
39,317
|
|
|
41,684
|
|
|
|
|
|
|
|
|
Common stock ( $0.01 par
value, 12,472,992 issued)
|
|
125
|
|
|
125
|
|
Additional paid-in
capital
|
|
114,118
|
|
|
114,183
|
|
Retained
earnings
|
|
62,032
|
|
|
53,637
|
|
Treasury shares (813,980
and 865,703 shares at September 30, 2011 and December 31, 2010,
respectively)
|
|
(10,379)
|
|
|
(11,022)
|
|
Accumulated other
comprehensive (loss) income
|
|
(20)
|
|
|
979
|
|
Total shareholder's
equity
|
|
165,876
|
|
|
157,902
|
|
Total liabilities and
shareholders' equity
|
$
|
308,654
|
|
$
|
274,847
|
|
|
|
|
|
|
|
|
|
HARDINGE INC. AND
SUBSIDIARIES
|
|
|
|
Consolidated Statements of
Operations
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands Except Per Share
Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Net sales
|
|
$
|
90,389
|
|
$
|
71,931
|
|
$
|
250,527
|
|
$
|
174,999
|
|
Cost of sales
|
|
|
64,840
|
|
|
53,994
|
|
|
182,599
|
|
|
133,451
|
|
Gross profit
|
|
|
25,549
|
|
|
17,937
|
|
|
67,928
|
|
|
41,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
18,943
|
|
|
18,717
|
|
|
54,609
|
|
|
49,156
|
|
Gain on sale of
assets
|
|
(5)
|
|
|
(732)
|
|
|
(23)
|
|
|
(960)
|
|
Impairment charge
recovery
|
|
|
-
|
|
|
(25)
|
|
|
-
|
|
|
(25)
|
|
Other expense
(income)
|
|
|
284
|
|
|
16
|
|
|
389
|
|
|
(627)
|
|
Income (loss) from
operations
|
|
6,327
|
|
|
(39)
|
|
|
12,953
|
|
|
(5,996)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
97
|
|
|
103
|
|
|
268
|
|
|
334
|
|
Interest income
|
|
|
(45)
|
|
|
(18)
|
|
|
(132)
|
|
|
(87)
|
|
Income (loss) before income
taxes
|
|
6,275
|
|
|
(124)
|
|
|
12,817
|
|
|
(6,243)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
2,025
|
|
|
1,074
|
|
|
4,073
|
|
|
915
|
|
Net income (loss)
|
|
$
|
4,250
|
|
$
|
(1,198)
|
|
$
|
8,744
|
|
$
|
(7,158)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per
share
|
$
|
0.37
|
|
$
|
(0.11)
|
|
$
|
0.75
|
|
$
|
(0.63)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per
share
|
$
|
0.36
|
|
$
|
(0.11)
|
|
$
|
0.75
|
|
$
|
(0.63)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per
share
|
$
|
0.02
|
|
$
|
0.005
|
|
$
|
0.03
|
|
$
|
0.015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HARDINGE INC. AND
SUBSIDIARIES
|
|
|
|
Consolidated Statements of Cash
Flows
|
|
|
|
|
|
|
(In Thousands)
|
|
|
|
|
|
|
|
Nine Months
Ended
September
30,
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
Operating
activities
|
|
|
|
|
|
|
Net income (loss)
|
$
|
8,744
|
|
$
|
(7,158)
|
|
Adjustment to reconcile net
income (loss) to net cash (used in) provided by operating
activities:
|
|
|
|
|
|
|
Impairment charge
(recovery)
|
|
-
|
|
|
(25)
|
|
Depreciation and
amortization
|
|
5,885
|
|
|
5,364
|
|
Debt issuance
amortization
|
|
78
|
|
|
234
|
|
Provision for deferred
income taxes
|
|
(411)
|
|
|
856
|
|
Gain on sale of
assets
|
|
(23)
|
|
|
(960)
|
|
Gain on purchase of Jones
& Shipman
|
|
-
|
|
|
(647)
|
|
|
Unrealized intercompany foreign
currency translation loss
|
|
(748)
|
|
|
94
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
(11,362)
|
|
|
(7,215)
|
|
Inventories
|
|
(20,485)
|
|
|
(11,049)
|
|
Prepaids and other
assets
|
|
(2,700)
|
|
|
(4,121)
|
|
Accounts
payable
|
|
6,051
|
|
|
15,395
|
|
Customer
deposits
|
|
4,209
|
|
|
5,847
|
|
Accrued
expenses
|
|
2,190
|
|
|
706
|
|
Accrued postretirement
benefits
|
|
(423)
|
|
|
(441)
|
|
Net cash used in operating
activities
|
|
(8,995)
|
|
|
(3,120)
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
Capital expenditures
|
|
(13,520)
|
|
|
(2,154)
|
|
Proceeds from sale of
assets
|
|
908
|
|
|
1,469
|
|
Purchase of Jones &
Shipman
|
|
-
|
|
|
(2,949)
|
|
Net cash used in investing
activities
|
|
(12,612)
|
|
|
(3,634)
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
Proceeds from short-term notes
payable to bank
|
|
20,447
|
|
|
8,666
|
|
Repayments of short-term notes
payable to bank
|
|
(9,504)
|
|
|
(4,799)
|
|
Proceeds from long-term
debt
|
|
1,616
|
|
|
-
|
|
Payments on long-term
debt
|
|
(464)
|
|
|
(423)
|
|
Dividends paid
|
|
(349)
|
|
|
(174)
|
|
Other financing
activities
|
|
42
|
|
|
(97)
|
|
Net cash provided by financing
activities
|
|
11,788
|
|
|
3,173
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes
on cash
|
|
135
|
|
|
451
|
|
Net decrease in cash and cash
equivalents
|
|
(9,684)
|
|
|
(3,130)
|
|
|
|
|
|
|
|
|
Cash and cash equivalent at
beginning of period
|
|
30,945
|
|
|
20,419
|
|
|
|
|
|
|
|
|
Cash and cash equivalent at end
of period
|
$
|
21,261
|
|
$
|
17,289
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to
EBITDA
|
|
|
|
|
Three months
ended
|
|
|
Nine months
ended
|
|
|
September
30,
|
|
|
September
30,
|
|
|
2011
|
2010
|
$
Change
|
|
|
2011
|
2010
|
$
Change
|
|
|
(in
thousands)
|
|
GAAP net income
(loss)
|
$ 4,250
|
$ (1,198)
|
$ 5,448
|
|
|
$ 8,744
|
$ (7,158)
|
$ 15,902
|
|
Plus: Interest expense, net
|
52
|
85
|
(33)
|
|
|
136
|
247
|
(111)
|
|
Income tax expense
|
2,025
|
1,074
|
951
|
|
|
4,073
|
915
|
3,158
|
|
Depreciation and amortization
|
1,989
|
1,755
|
234
|
|
|
5,885
|
5,364
|
521
|
|
EBITDA (1)
|
$ 8,316
|
$ 1,716
|
$ 6,600
|
|
|
$ 18,838
|
$ (632)
|
$ 19,470
|
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
SOURCE Hardinge Inc.