This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Hardinge Inc. Reports Net Income Grows 69% On 11% Increase In Sales For Fourth Quarter 2011

Stocks in this article: HDNG

Mr. Simons concluded, “During the latter half of 2010 and the first half of 2011, the machine tool industry realized an extremely exaggerated recovery. We saw rapid expansion of sales as early recovery demand was strong and customers reacted to the sudden constraints on the machine tool supply chain due to the significant demand. Given this and the macro-economic pressures that exist, we believe the rate of growth will be tempered during the first half of the year in 2012, but should still be strong and more representative of long-term industry fundamentals.

“When final numbers are published, it is expected that worldwide machine tool consumption in 2011 will have surpassed its 2008 historic peak, and industry analysts estimate that by 2014 Asia’s consumption of machine tools alone will surpass the world’s historic peak consumption. We believe our high quality brands and continually expanding channels to market will enable us to fully capitalize on the industry’s expansion.”

Webcast and Conference Call

Hardinge will host a conference call and webcast today at 11:00 a.m. Eastern Time. During the conference call and webcast, Richard Simons, Chairman, President and CEO, and Edward Gaio, Vice President and CFO, will review the financial and operating results for the quarter and full 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.

The conference call can be accessed by dialing (201) 689-8560. The listen-only audio webcast can be monitored at www.hardinge.com.

A telephonic replay will be available from 2:00 p.m. ET the day of the call through Thursday, February 23, 2012. To listen to the archived call, dial (858) 384-5517 and enter conference ID number 386498. Alternatively, an archive of the webcast will be available on the Company’s website at www.hardinge.com. A transcript will also be posted to the website, once available.

About Hardinge

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 75% of its 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.

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.

 
HARDINGE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per share data)
 
    Quarter Ended    

Fiscal Year Ended

December 31, December 31,
2011       2010   2011       2010  
 
Net sales $ 91,046     $ 82,008 $ 341,573     $ 257,007
Cost of sales   67,946     62,266     250,545     195,717  
Gross profit   23,100     19,742     91,028     61,290  
Gross profit margin 25.4 % 24.1 % 26.6 % 23.8 %
 
Selling, general and administrative expenses 18,990 16,494 73,599 65,650
Loss (gain) on sale of assets 69 (85 ) 46 (1,045 )
Other expense (income)   397     67     786     (585 )
Income (loss) from operations   3,644     3,266     16,597     (2,730 )
Operating margin 4.0 % 4.0 % 4.9 % (1.1 )%
 
Interest expense 102 92 339 426
Interest income   -     (3 )   (101 )   (90 )
Income (loss) before income taxes 3,542 3,177 16,359 (3,066 )
 
Income tax expense   300     1,253     4,373     2,168  
Net income (loss) $ 3,242   $ 1,924   $ 11,986   $ (5,234 )
 
 
Per share data:
 
Basic earnings (loss) per share $ 0.28   $ 0.17   $ 1.03   $ (0.46 )
 
Diluted earnings (loss) per share $ 0.28   $ 0.17   $ 1.02   $ (0.46 )
 
Cash dividends declared per share $ 0.02   $ 0.005   $ 0.05   $ 0.02  
 
Weighted avg. shares outstanding: Basic 11,467 11,409 11,463 11,409
Weighted avg. shares outstanding: Diluted 11,552 11,586 11,548 11,409
 
       
HARDINGE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands except share and per share data)
 
December 31, December 31,
  2011         2010  
Assets
Cash and cash equivalents $ 21,736 $ 30,945
Restricted cash 4,575 5,225
Accounts receivable, net 65,909 47,572
Inventories, net 122,782 105,306
Other current assets   13,338         12,882  
Total current assets 228,340 201,930
 
Property, plant and equipment, net 68,204 56,628
Intangible assets, net 12,765 13,642
Other non-current assets   2,360         2,647  
Total non-current assets   83,329         72,917  
Total assets $ 311,669       $ 274,847  
 
Liabilities and shareholders' equity
Accounts payable $ 36,952 $ 33,533
Notes payable to bank 12,969 1,650
Accrued expenses 25,103 22,791
Customer deposits 18,881 10,468
Accrued income taxes 3,480 3,656
Deferred income taxes 2,556 2,546
Current portion of long-term debt   1,548         617  
Total current liabilities 101,489 75,261
 
Long-term debt 7,020 2,777
Pension and postretirement liabilities 49,310 32,223
Deferred income taxes 2,391 2,516
Other liabilities   4,436         4,168  
Total non-current liabilities 63,157 41,684
 
Common stock ($0.01 par value, 12,472,992 issued) 125 125
Additional paid-in capital 114,369 114,183
Retained earnings 65,041 53,637
Treasury shares (10,379 ) (11,022 )
Accumulated other comprehensive (loss) income   (22,133 )       979  
Total shareholders' equity   147,023         157,902  
Total liabilities and shareholders' equity $ 311,669       $ 274,847  
 
   
HARDINGE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 
Fiscal Year Ended
December 31,
  2011       2010  
Operating activities  
Net income (loss) $ 11,986 $ (5,234 )
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Impairment charge - (25 )
Depreciation and amortization 7,736 7,042
Debt issuance amortization 124 310
Provision for deferred income taxes (361 ) (1,983 )
Loss (gain) on sale of assets 46 (1,045 )
(Gain) on purchase of Jones & Shipman - (647 )
Unrealized intercompany foreign currency transaction (gain) loss (862 ) 615
Changes in operating assets and liabilities:
Accounts receivable (18,589 ) (609 )
Inventories (18,123 ) 622
Other assets 444 (3,077 )
Accounts payable 3,990 12,520
Customer deposits 8,469 5,691
Accrued expenses (1,277 ) 3,697
Accrued postretirement benefits   (715 )     (741 )
Net cash (used in) provided by operating activities (7,132 ) 17,136
 
Investing activities
Capital expenditures (19,217 ) (3,728 )
Proceeds on sale of assets 900 1,576
Purchase of land use rights - (2,594 )
Purchase of Jones & Shipman, net of cash acquired   -       (3,014 )
Net cash used in investing activities (18,317 ) (7,760 )
 
Financing activities
Proceeds from short-term notes payable to bank 29,987 10,416
Repayments of short-term notes payable to bank (18,299 ) (10,272 )
Proceeds from long-term debt 6,011 -
Payments on long-term debt (614 ) (571 )
Dividends paid (581 ) (232 )
Other financing activities   (41 )     (111 )
Net cash provided by (used in) financing activities 16,463 (770 )
 
Effect of exchange rate changes on cash   (223 )     1,920  
Net (decrease) increase in cash (9,209 ) 10,526
Cash and cash equivalents at beginning of year   30,945       20,419  
Cash and cash equivalents at end of year $ 21,736     $ 30,945  
 
   
HARDINGE INC. AND SUBSIDIARIES

Reconciliation of Net Income (Loss) to EBITDA

(in thousands)

 

The following table provides a reconciliation of the Company’s reported net income (loss) to EBITDA for the fourth quarter and fiscal year ended December 31, 2011 and 2010, respectively:

 
Quarter Ended Fiscal Year Ended
December 31, December 31,
  2011   2010

 

$ Change

  2011   2010  

 

$ Change

GAAP net income (loss)

$

3,242

$

1,924

$

1,318

$

11,986

$

(5,234

)

$

17,220

Plus: Interest expense, net 102 89 13 238 336

(98

)

Income tax expense 300 1,253

(953

)

4,373

2,168 2,205
Depreciation and amortization   1,851   1,678   173     7,736   7,042     694  
EBITDA (1)

$

5,495

$

4,944

$

551

 

$

24,333

$

4,312

 

$

20,021

 
 
(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.




5 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,100.24 +125.93 0.74%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,528.6790 -20.5470 -0.45%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs