Hardinge Inc. (Nasdaq:HDNG), a leading international provider of
advanced metal-cutting solutions and accessories, reported
financial results for its first quarter ended March 31, 2014. 2014
results include the Forkardt operations ("Forkardt"), acquired on
May 9, 2013.
Net sales ("sales") for the quarter were up 5.4% to $70.9
million, compared with sales of $67.2 million in the prior year's
first quarter. Forkardt contributed $8.9 million of sales in the
first quarter of 2014. Orders of $81.0 million show organic growth
over both the prior year first quarter as well as the sequential
fourth quarter of 2013.
Net loss was $0.5 million, or $0.04 per diluted share. The prior
year's first quarter net income was breakeven.
Richard L. Simons, Chairman, President and Chief Executive
Officer, commented, "First quarter sales were as we expected, given
the backlog with which we entered the year. Our first quarter is
historically a weak quarter as it is affected by the Chinese New
Year and the spending patterns of our customers. The Forkardt
acquisition helped to offset the effect of the softness in machine
tool solutions sales and provides a steadier base of revenue less
affected by the cyclicality of capital goods. Gross margin was
negatively impacted by sales mix as well as under absorption in one
of our European factories as a result of lower production levels,
yet we managed our discretionary costs."
Quarterly Sales by
Region ($ in thousands) |
|
|
|
Quarter
Ended |
|
March 31,
2014 |
March 31,
2013 |
December 31,
2013 |
|
Sales to Customers
in |
$ |
% of
Total |
$ |
Year-over-Year % Change |
$ |
Sequential %
Change |
|
|
North America |
23,203 |
33% |
24,848 |
(7)% |
36,473 |
(36)% |
|
Europe |
25,305 |
36% |
20,996 |
21% |
28,867 |
(12)% |
|
Asia |
22,342 |
31% |
21,375 |
5% |
37,762 |
(41)% |
|
Total |
70,850 |
|
67,219 |
5% |
103,102 |
(31)% |
|
|
|
|
First Quarter Review
Fluctuations in Hardinge's consolidated sales among geographic
locations and industries can vary from quarter to quarter based on
the timing and magnitude of orders and projects. Hardinge does not
believe that such quarter-to-quarter fluctuations are necessarily
indicative of larger business trends. Rather, the Company believes
that such business trends can be discerned from the Company's
performance during a longer period of time, such as a trailing
twelve-month period.
Compared with the prior-year period, sales improved in Europe
and Asia. The Forkardt acquisition drove the higher sales in
Europe. Improving business activity in the Asian markets served by
the Company resulted in higher sales to that region. Lower organic
sales in North America were partially offset by the addition of the
Forkardt business. Sales decreased in all regions when compared
with the trailing fourth quarter, which experienced an
exceptionally strong level of shipments of higher dollar machine
solution projects.
Gross profit was $19.2 million, up $0.2 million over the
prior-year period. Gross margin was 27.1% compared with the prior
year's 28.2%. Gross margin was affected by lower machine
production, as a result of lower order levels in the second half of
2013.
Selling, general and administrative ("SG&A") expense was up
by $0.9 million, compared with the prior-year period, to $19.1
million, or 27.0% of sales. The increase included $2.0 million
of incremental SG&A associated with the Forkardt businesses,
partially offset by cost containment in the Company's organic
business.
Loss from operations was $0.3 million, compared with income from
operations of $0.5 million in the prior-year period.
Solid Balance Sheet
Cash and cash equivalents at March 31, 2014 were $32.5 million.
Total debt was $20.9 million at March 31, 2014, a reduction of $5.7
million compared with the $26.6 million balance at December 31,
2013. Through May 2, 2014, the Company has raised $14.6
million from the sale of 1,014,252 of Hardinge shares under the
Company's at-the-market program, which has been used to reduce
outstanding debt, strengthening the Company's balance sheet to
allow for future strategic investments. Cash used in
operations was $1.0 million in the first quarter of 2014, impacted
by temporary fluctuations in working capital.
Capital expenditures were $0.3 million in the 2014 first quarter
and are expected to be in the $5 million to $6 million range for
the year, primarily for general maintenance purposes.
Orders by Region
($ in thousands) |
|
|
|
Quarter
Ended |
|
March 31,
2014 |
March 31,
2013 |
December 31,
2013 |
|
Orders from Customers
in |
$ |
% of
Total |
$ |
Year-over-Year %
Change |
$ |
Sequential %
Change |
|
|
North America |
24,361 |
30% |
17,448 |
40% |
24,598 |
(1)% |
|
Europe |
28,437 |
35% |
22,824 |
25% |
23,818 |
19% |
|
Asia |
28,241 |
35% |
26,499 |
7% |
25,498 |
11% |
|
Total |
81,039 |
|
66,771 |
21% |
73,914 |
10% |
|
|
|
|
Net orders ("orders") during the quarter were $81.0 million,
reflecting solid improvement over both the prior-year period as
well as the trailing fourth quarter. Forkardt contributed
$9.5 million of orders in the first quarter of 2014. The Company's
order backlog at March 31, 2014 was $101.3 million.
2014 Expectations
Mr. Simons concluded, "We feel good about the order level of $81
million, our highest order quarter since the first part of 2012.
Our global order activity and pipeline are developing,
especially in the U.S. and China. Orders for our higher end
grinding and turning machines did not materialize as we had hoped
in the first quarter, but we are somewhat encouraged by recent
increased quote activity. Nevertheless, we recognize that
improvement in the cycle could take somewhat longer than previously
anticipated. This leads us to expectations of 2014 sales slightly
below 2013 levels, with the magnitude dependent upon second quarter
order levels of longer lead time products."
Webcast and Conference Call
Hardinge will host a conference call and webcast today at 11:00
a.m. ET. During the conference call and webcast, Richard L.
Simons, Chairman, President and CEO, and Douglas J. Malone, Vice
President and CFO, will review the financial and operating results
for the quarter and year, as well as the Company's strategy and
outlook. A question and answer session will follow the formal
discussion. Their review will be accompanied by a slide
presentation which will be available on Hardinge's website at
www.hardinge.com/ir/events.
The conference call can be accessed by calling (201)
689-8560. The listen-only audio webcast can be monitored at
www.hardinge.com/ir/events.
A telephonic replay will be available from 2:00 p.m. ET the day
of the call through Thursday, May 15, 2014. To listen to the
archived call, dial (858) 384-5517 and enter conference ID number
13579862. Alternatively, the archive can be heard on the
Company's website at www.hardinge.com/ir/events. A transcript
will also be posted to the website, once available.
About Hardinge
Hardinge is a leading global designer and manufacturer of high
precision, computer-controlled machine tool solutions developed for
critical, hard to machine metal parts and of technologically
advanced workholding accessories. The Company's strategy is
to leverage its global brand strength to further penetrate global
market opportunities where customers will benefit from the
technologically advanced, high quality, reliable products Hardinge
produces. With approximately 67% of its sales outside of
North America, Hardinge serves the worldwide metal working
market. Hardinge's machine tool and accessory solutions can
also be found in a broad base of industries to include aerospace,
agricultural, automotive, construction, consumer products, defense,
energy, medical, technology and transportation.
Hardinge applies its engineering design and manufacturing
expertise in high performance machining centers, high-end
cylindrical and jig grinding machines, SUPER-PRECISION® and
precision CNC lathes and technologically advanced workholding
accessories. Hardinge has manufacturing operations in China,
France, Germany, Switzerland, Taiwan, the United Kingdom and the
United States.
The Company regularly posts information on its website:
http://www.hardinge.com.
Safe Harbor Statement
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.
FINANCIAL TABLES FOLLOW.
|
|
|
HARDINGE INC. AND
SUBSIDIARIES |
Consolidated Statements
of Operations |
(in thousands except per share
data) |
|
|
|
|
Quarter Ended March 31, |
|
2014 |
2013 |
|
(unaudited) |
|
|
|
Sales |
$ 70,850 |
$ 67,219 |
Cost of sales |
51,630 |
48,246 |
Gross profit |
19,220 |
18,973 |
Gross profit
margin |
27.1% |
28.2% |
|
|
|
Selling, general and administrative
expenses |
19,120 |
18,245 |
Other expense, net |
391 |
276 |
(Loss) income from operations |
(291) |
452 |
Operating
margin |
-0.4% |
0.7% |
|
|
|
Interest expense |
243 |
205 |
Interest income |
(20) |
(15) |
(Loss) income from continuing operations
before taxes |
(514) |
262 |
|
|
|
Income taxes |
157 |
222 |
Net (loss) income from continuing
operations |
(671) |
40 |
|
|
|
Gain from disposal of discontinued
operations, net of tax |
218 |
-- |
Net (loss) income |
$ (453) |
$ 40 |
|
|
|
Basic loss per share: |
|
|
Continuing operations |
$ (0.05) |
$ -- |
Disposal of discontinued operations |
0.01 |
-- |
Loss per share |
$ (0.04) |
$ -- |
|
|
|
Diluted loss per share: |
|
|
Continuing operations |
$ (0.05) |
$ -- |
Disposal of discontinued operations |
0.01 |
-- |
Loss per share |
$ (0.04) |
$ -- |
|
|
|
Cash dividends declared per share |
$ 0.02 |
$ 0.02 |
|
|
|
Weighted avg. shares outstanding: Basic |
12,499 |
11,660 |
Weighted avg. shares outstanding:
Diluted |
12,499 |
11,743 |
|
|
|
|
|
|
HARDINGE INC. AND
SUBSIDIARIES |
Consolidated Balance
Sheets |
(in thousands except share and
per share data) |
|
|
|
|
March 31, |
December 31, |
|
2014 |
2013 |
|
(unaudited) |
|
Assets |
|
|
Cash and cash equivalents |
$ 32,498 |
$ 34,722 |
Restricted cash |
3,939 |
4,124 |
Accounts receivable, net |
51,480 |
57,137 |
Inventories, net |
112,089 |
114,064 |
Other current assets |
12,947 |
11,486 |
Total current assets |
212,953 |
221,533 |
|
|
|
Property, plant and equipment, net |
72,965 |
74,656 |
Goodwill |
9,888 |
9,864 |
Other intangible assets, net |
31,442 |
32,063 |
Other non-current assets |
6,306 |
5,852 |
Total non-current assets |
120,601 |
122,435 |
Total assets |
$ 333,554 |
$ 343,968 |
|
|
|
Liabilities and shareholders'
equity |
|
|
Accounts payable |
$ 22,605 |
$ 24,418 |
Accrued expenses |
29,011 |
33,825 |
Customer deposits |
13,381 |
15,166 |
Accrued income taxes |
597 |
830 |
Deferred income taxes |
2,556 |
2,569 |
Current portion of long-term debt |
4,199 |
7,850 |
Total current liabilities |
72,349 |
84,658 |
|
|
|
Long-term debt |
16,710 |
18,785 |
Pension and postretirement
liabilities |
27,941 |
28,188 |
Deferred income taxes |
5,047 |
4,968 |
Other liabilities |
3,825 |
3,775 |
Total non-current liabilities |
53,523 |
55,716 |
|
|
|
Common stock ($0.01 par value, 12,790,476
issued and outstanding as of March 31, 2014, and 12,472,992 issued
and outstanding as of December 31, 2013) |
128 |
125 |
Additional paid-in capital |
119,778 |
114,951 |
Retained earnings |
90,234 |
90,937 |
Treasury shares (at cost, none as of
March 31, 2014, and 75,125 as of December 31, 2013) |
-- |
(806) |
Accumulated other comprehensive loss |
(2,458) |
(1,613) |
Total shareholders' equity |
207,682 |
203,594 |
Total liabilities and shareholders'
equity |
$ 333,554 |
$ 343,968 |
|
|
|
HARDINGE INC. AND
SUBSIDIARIES |
Consolidated Statements
of Cash Flows |
(in thousands) |
|
|
|
|
Quarter Ended
March 31, |
|
2014 |
2013 |
|
(unaudited) |
Operating activities |
|
|
Net (loss) income |
$ (453) |
$ 40 |
Adjustments to reconcile net (loss) income to
net cash used in operating activities: |
|
|
Depreciation and amortization |
2,531 |
1,981 |
Debt issuance amortization |
14 |
22 |
Provision for deferred income taxes |
205 |
143 |
Gain on sale of assets |
(42) |
(42) |
Gain on sale of Forkardt Switzerland |
(218) |
-- |
Unrealized intercompany foreign currency
transaction gain |
(121) |
(595) |
Changes in operating assets and
liabilities: |
|
|
Accounts receivable |
5,468 |
3,231 |
Inventories |
1,705 |
(211) |
Other assets |
(1,389) |
(1,467) |
Accounts payable |
(1,540) |
(4,061) |
Customer deposits |
(1,683) |
3,477 |
Accrued expenses |
(5,453) |
(9,109) |
Accrued postretirement
benefits |
(22) |
(100) |
Net cash used in operating activities |
(998) |
(6,691) |
|
|
|
Investing activities |
|
|
Capital expenditures |
(325) |
(851) |
Proceeds on sale of assets |
48 |
69 |
Net cash used in investing activities |
(277) |
(782) |
|
|
|
Financing activities |
|
|
Proceeds from short-term notes payable to
bank |
4,455 |
15,449 |
Repayments of short-term notes payable to
bank |
(4,455) |
(13,687) |
Repayments of long-term debt |
(5,792) |
(1,117) |
Dividends paid |
(249) |
(233) |
Net proceeds from sale of common stock |
5,202 |
-- |
Net cash (used in) provided by financing
activities |
(839) |
412 |
|
|
|
Effect of exchange rate changes on cash |
(110) |
(387) |
Net decrease in cash |
(2,224) |
(7,448) |
Cash and cash equivalents at beginning of
period |
34,722 |
26,855 |
Cash and cash equivalents at end of
period |
$ 32,498 |
$ 19,407 |
CONTACT: For more information contact:
Company:
Douglas J. Malone
Chief Financial Officer
Phone: (607) 378-4140
Investor Relations:
Deborah K. Pawlowski, Kei Advisors LLC
Phone: (716) 843-3908
Email: dpawlowski@keiadvisors.com
Hardinge Inc. (delisted) (NASDAQ:HDNG)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Hardinge Inc. (delisted) (NASDAQ:HDNG)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024