Hardinge Inc. (NASDAQ: HDNG), a leading international provider of advanced metal-cutting solutions, reported financial results for its fourth quarter and full year ended December 31, 2012.
Net sales (“sales”) were $90.6 million in the fourth quarter of 2012, down $0.4 million from sales of $91.0 million in the prior-year’s fourth quarter. The effect of foreign currency exchange was not significant. When compared with the trailing third quarter of 2012, sales were up $7.7 million, or 9%, during the fourth quarter 2012. Foreign currency translation had a $1.4 million positive impact on sales relative to the trailing quarter.
Net income for the fourth quarter was $7.8 million, or $0.66 per diluted share, compared with $3.2 million, or $0.28 per diluted share, in the prior-year’s fourth quarter. Net income in the 2012 fourth quarter benefited from a $2.7 million reduction in tax valuation allowances which resulted from deferred tax liabilities recorded in conjunction with the acquisition of Usach Technologies in December 2012. Excluding the tax benefit, net income would have been $5.1 million*, or $0.43 per diluted share*.
For the full year, sales declined in 2012 to $334.4 million, down by $7.2 million, or 2%, from sales of $341.6 million in 2011. Foreign currency translation had a negative $4.8 million effect on sales for the year. Excluding this unfavorable impact, 2012 sales were down $2.4 million, or relatively unchanged, compared with the prior year. Net income for the year was $17.9 million, or $1.53 per diluted share, compared with $12.0 million, or $1.02 per diluted share, in 2011. Excluding the tax benefit from the previously mentioned reversal in tax valuation allowances, net income in 2012 was $15.2 million*, or $1.29 per diluted share*.* These are non-GAAP financial measures. Please see the attached table for a reconciliation of GAAP and non-GAAP financial measures. Richard L. Simons, Chairman, President and Chief Executive Officer, commented, “Our strong fourth quarter financial performance reflected favorable product mix, primarily driven by grinding machine orders received in late 2011 and early 2012 that were shipped in the quarter. For the full year, we had strong cash generation from operations which effectively funded the acquisition of Usach Technologies in late December. This was the result of our continued focus on driving operational efficiencies and carefully managing working capital.”
|Sales by Region|
|December 31,||December 31,||September 30,|
|Sales to Customers in||2012||% of Total||2011||% Change||2012||% Change|
|Fiscal Year Ended|
|December 31,||December 31,|
|Sales to Customers in||2012||% of Total||2011||% Change|
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV