Hurco Reports Third Quarter Results for Fiscal Year 2024
Hurco Companies reported a net loss of $9.6 million ($1.47 per diluted share) for Q3 FY2024, compared to net income of $260,000 in Q3 FY2023. The loss included an $8.16 million non-cash tax valuation allowance. Sales decreased 20% to $42.65 million. For the nine-month period, Hurco reported a net loss of $15.17 million on sales of $132.88 million, down 18% year-over-year.
Despite sales declines, Q3 orders improved to $52.82 million, up 26% year-over-year and exceeding sales by over $10 million. The company implemented global cost reductions and is focusing on technological innovations, including new control designs and robotic automation integration. Hurco maintains a strong balance sheet to navigate the cyclical machine tool market.
Le aziende Hurco hanno riportato una perdita netta di 9,6 milioni di dollari (1,47 dollari per azione diluita) per il terzo trimestre dell'anno fiscale 2024, rispetto a un utile netto di 260.000 dollari nel terzo trimestre dell'anno fiscale 2023. La perdita ha incluso un accantonamento fiscale non monetario di 8,16 milioni di dollari. Le vendite sono diminuite del 20% a 42,65 milioni di dollari. Nel periodo di nove mesi, Hurco ha riportato una perdita netta di 15,17 milioni di dollari su vendite di 132,88 milioni di dollari, in calo del 18% rispetto all'anno precedente.
Nonostante il calo delle vendite, gli ordini del terzo trimestre sono aumentati a 52,82 milioni di dollari, in crescita del 26% rispetto all'anno precedente e superiori alle vendite di oltre 10 milioni di dollari. L'azienda ha implementato riduzioni dei costi a livello globale e si sta concentrando su innovazioni tecnologiche, inclusi nuovi design di controllo e integrazione dell'automazione robotica. Hurco mantiene un solido bilancio per affrontare il mercato ciclico degli utensili da taglio.
Hurco Companies reportó una pérdida neta de 9,6 millones de dólares (1,47 dólares por acción diluida) para el tercer trimestre del año fiscal 2024, en comparación con una ganancia neta de 260,000 dólares en el tercer trimestre del año fiscal 2023. La pérdida incluyó un provisionamiento fiscal no monetario de 8,16 millones de dólares. Las ventas disminuyeron un 20% a 42,65 millones de dólares. Durante el período de nueve meses, Hurco reportó una pérdida neta de 15,17 millones de dólares con ventas de 132,88 millones de dólares, lo que representa una caída del 18% interanual.
A pesar de la disminución en las ventas, los pedidos del tercer trimestre mejoraron a 52,82 millones de dólares, lo que representa un aumento del 26% interanual y superando las ventas en más de 10 millones de dólares. La compañía implementó reducciones de costos a nivel global y se está enfocando en innovaciones tecnológicas, incluyendo nuevos diseños de controles e integración de automatización robótica. Hurco mantiene un sólido balance para navegar el mercado cíclico de herramientas de corte.
Hurco Companies는 2024 회계 연도 3분기에 960만 달러의 순손실 (희석 주당 1.47달러)를 보고했으며, 이는 2023 회계 연도 3분기의 260,000 달러의 순이익과 비교됩니다. 이번 손실에는 816만 달러의 비현금 세금 평가 수당이 포함되어 있습니다. 매출은 20% 감소하여 4265만 달러를 기록했습니다. 9개월 기간 동안 Hurco는 1억 3288만 달러의 매출에 대해 1517만 달러의 순손실을 보고 했으며, 이는 전년 대비 18% 감소한 수치입니다.
판매 감소에도 불구하고, 3분기 주문은 5282만 달러로 증가하여 전년 대비 26% 상승하고 매출을 1000만 달러 이상 초과했습니다. 회사는 글로벌 비용 절감 조치를 시행하고 있으며, 새로운 제어 설계 및 로봇 자동화 통합을 포함하여 기술 혁신에 집중하고 있습니다. Hurco는 순환 기계 공구 시장을 이겨내기 위해 강력한 재무 상태를 유지하고 있습니다.
Les entreprises Hurco ont enregistré une perte nette de 9,6 millions de dollars (1,47 dollar par action diluée) pour le troisième trimestre de l'exercice 2024, contre un bénéfice net de 260 000 dollars au troisième trimestre de l'exercice 2023. La perte comprenait une provision fiscale non monétaire de 8,16 millions de dollars. Les ventes ont diminué de 20% pour atteindre 42,65 millions de dollars. Pour la période de neuf mois, Hurco a enregistré une perte nette de 15,17 millions de dollars sur un chiffre d'affaires de 132,88 millions de dollars, en baisse de 18% par rapport à l'année précédente.
Malgré la baisse des ventes, les commandes du troisième trimestre ont augmenté à 52,82 millions de dollars, soit une hausse de 26% par rapport à l'année précédente, dépassant les ventes de plus de 10 millions de dollars. L'entreprise a mis en œuvre des réductions de coûts à l'échelle mondiale et se concentre sur les innovations technologiques, y compris de nouveaux designs de contrôle et l'intégration de l'automatisation robotique. Hurco maintient un bilan solide pour naviguer sur le marché cyclique des machines-outils.
Hurco Companies meldete einen Nettoverlust von 9,6 Millionen Dollar (1,47 Dollar pro verwässerter Aktie) für das dritte Quartal des Geschäftsjahres 2024, verglichen mit einem Nettogewinn von 260.000 Dollar im dritten Quartal des Geschäftsjahres 2023. Der Verlust beinhaltete eine nicht liquide Steuerbewertung von 8,16 Millionen Dollar. Der Umsatz sank um 20% auf 42,65 Millionen Dollar. Für den Neunmonatszeitraum meldete Hurco einen Nettoverlust von 15,17 Millionen Dollar bei einem Umsatz von 132,88 Millionen Dollar, was einem Rückgang von 18% im Jahresvergleich entspricht.
Trotz des Rückgangs der Verkäufe verbesserte sich die Anzahl der Bestellungen im dritten Quartal auf 52,82 Millionen Dollar, was einem Anstieg von 26% im Jahresvergleich entspricht und die Verkaufszahlen um mehr als 10 Millionen Dollar überstieg. Das Unternehmen hat globale Kostenreduzierungen umgesetzt und konzentriert sich auf technologische Innovationen, einschließlich neuer Steuerungsdesigns und der Integration der Robotautomatisierung. Hurco hat eine starke Bilanz, um sich im zyklischen Maschinenwerkzeugmarkt zu behaupten.
- Q3 orders improved to $52.82 million, up 26% year-over-year
- Orders exceeded sales by over $10 million in Q3
- Implemented global cost reductions to improve future results
- Focusing on technological innovations like new control designs and robotic automation
- Maintains strong balance sheet to navigate market cycles
- Reported net loss of $9.6 million for Q3 FY2024, compared to net income in Q3 FY2023
- Q3 sales decreased 20% year-over-year to $42.65 million
- Nine-month sales down 18% to $132.88 million
- Recorded $8.16 million non-cash tax valuation allowance
- Gross profit margin declined from 25% to 18% in Q3
Insights
Hurco's Q3 FY2024 results reveal significant challenges, with a net loss of
- A
$8.16 million non-cash tax valuation allowance - A
20% decrease in sales to$42.65 million - Gross profit margin compression from
25% to18%
While orders improved by
Hurco's results reflect broader trends in the global manufacturing sector. The regional performance breakdown is telling:
- Americas:
16% decline, with a shift towards higher-end 5-axis machines - Europe:
23% decline, impacted by weakness in key markets like Germany and Italy - Asia Pacific: Mixed results, with growth in India offset by declines in China
The increased orders for higher-performing machines, especially in the Americas and Europe, suggest a potential shift in customer preferences towards more advanced, automated solutions. This aligns with Hurco's strategy to integrate robotics and advanced controls, as showcased in their upcoming IMTS exhibition. However, the overall market contraction and pricing pressures indicate a challenging environment that may persist in the short term.
Hurco's emphasis on technological innovation amid market challenges is noteworthy. Key developments include:
- Next-generation control systems for Hurco and Milltronics machines
- Integration of ProCobots collaborative robotic systems
- Partnership with Kawasaki Robotics for advanced automation
These initiatives position Hurco at the forefront of the Industry 4.0 transition, potentially differentiating them in a competitive market. The focus on simplifying complex robot programming could be particularly appealing to small and medium-sized manufacturers looking to automate. However, the immediate impact on financials may be , as adoption cycles in the industry tend to be long. The true test will be whether these innovations can drive order growth and margin improvement in the coming quarters.
INDIANAPOLIS, Sept. 06, 2024 (GLOBE NEWSWIRE) -- Hurco Companies, Inc. (Nasdaq: HURC) today reported results for the third fiscal quarter ended July 31, 2024. Hurco recorded a net loss of
Sales and service fees for the third quarter of fiscal year 2024 were
Greg Volovic, Chief Executive Officer, stated, “While sales declined this quarter orders were positive. Global orders for this quarter exceeded
The following table sets forth net sales and service fees by geographic region for the third fiscal quarter and nine months ended July 31, 2024, and 2023 (dollars in thousands):
Three Months Ended | Nine Months Ended | ||||||||||
July 31, | July 31, | ||||||||||
2024 | 2023 | $ Change | % Change | 2024 | 2023 | $ Change | % Change | ||||
Americas | ( | ) | (16)% | ( | ) | (16)% | |||||
Europe | 24,068 | 31,162 | (7,094 | ) | (23)% | 69,538 | 89,745 | (20,207 | ) | (23)% | |
Asia Pacific | 3,194 | 3,767 | (573 | ) | (15)% | 14,358 | 13,348 | 1,010 | |||
Total | ( | ) | (20)% | ( | ) | (18)% | |||||
Sales in the Americas for each of the third quarter and nine months of fiscal year 2024 decreased by
European sales for each of the third quarter and nine months of fiscal year 2024 decreased by
Asian Pacific sales for the third quarter of fiscal year 2024 decreased by
Orders for the third quarter of fiscal year 2024 were
The following table sets forth new orders booked by geographic region for the third fiscal quarter and nine months ended July 31, 2024, and 2023 (dollars in thousands):
Three Months Ended | Nine Months Ended | ||||||||||
July 31, | July 31, | ||||||||||
2024 | 2023 | $ Change | % Change | 2024 | 2023 | $ Change | % Change | ||||
Americas | ( | ) | (2)% | ||||||||
Europe | 28,349 | 24,752 | 3,597 | 75,757 | 87,632 | (11,875 | ) | (14)% | |||
Asia Pacific | 6,841 | 2,723 | 4,118 | 15,978 | 11,355 | 4,623 | |||||
Total | ( | ) | (5)% | ||||||||
Orders in the Americas for the third quarter of fiscal year 2024 increased by
European orders for the third quarter of fiscal year 2024 increased by
Asian Pacific orders for the third quarter of fiscal year 2024 increased by
Gross profit for the third quarter of fiscal year 2024 was
Selling, general, and administrative expenses for the third quarter of fiscal year 2024 were
Income tax expenses during the third quarter and nine months of fiscal year 2024 was
Cash and cash equivalents totaled
Hurco Companies, Inc. is an international, industrial technology company that sells its three brands of computer numeric control (“CNC”) machine tools to the worldwide metal cutting and metal forming industry. Two of the Company’s brands of machine tools, Hurco and Milltronics, are equipped with interactive controls that include software that is proprietary to each respective brand. The Company designs these controls and develops the software. The third brand of CNC machine tools, Takumi, is equipped with industrial controls that are produced by third parties, which allows the customer to decide the type of control added to the Takumi CNC machine tool. The Company also produces high-value machine tool components and accessories and provides automation solutions that can be integrated with any machine tool. The end markets for the Company's products are independent job shops, short-run manufacturing operations within large corporations, and manufacturers with production-oriented operations. The Company’s customers manufacture precision parts, tools, dies, and/or molds for industries such as aerospace, defense, medical equipment, energy, transportation, and computer equipment. The Company is based in Indianapolis, Indiana, with manufacturing operations in Taiwan, Italy, the U.S., and China, and sells its products through direct and indirect sales forces throughout the Americas, Europe, and Asia. The Company has sales, application engineering support and service subsidiaries in China, the Czech Republic, England, France, Germany, India, Italy, the Netherlands, Poland, Singapore, the U.S., and Taiwan. Web Site: www.hurco.com
Certain statements in this news release are forward-looking statements that involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, among others, the cyclical nature of the machine tool industry; uncertain economic conditions, which may adversely affect overall demand, in the Americas, Europe and Asia Pacific markets; the risks of our international operations; governmental actions, initiatives and regulations, including import and export restrictions, duties and tariffs and changes to tax laws; the effects of changes in currency exchange rates; competition with larger companies that have greater financial resources; our dependence on new product development; the need and/or ability to protect our intellectual property assets; the limited number of our manufacturing and supply chain sources; increases in the prices of raw materials, especially steel and iron products; the effect of the loss of members of senior management and key personnel; our ability to integrate acquisitions; acquisitions that could disrupt our operations and affect operating results; failure to comply with data privacy and security regulations; breaches of our network and system security measures; possible obsolescence of our technology and the need to make technological advances; impairment of our assets; negative or unforeseen tax consequences; uncertainty concerning our ability to use tax loss carryforwards; changes in the SOFR rate; the impact of the COVID-19 pandemic and other public health epidemics and pandemics on the global economy, our business and operations, our employees and the business, operations and economies of our customers and suppliers; and other risks and uncertainties discussed more fully under the caption “Risk Factors” in our filings with the Securities and Exchange Commission. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact: | Sonja K. McClelland |
Executive Vice President, Treasurer, & Chief Financial Officer | |
317-293-5309 | |
Hurco Companies, Inc. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(In thousands, except per share data) | |||||||
Three Months Ended | Nine Months Ended | ||||||
July 31, | July 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(unaudited) | (unaudited) | ||||||
Sales and service fees | |||||||
Cost of sales and service | 34,808 | 39,753 | 107,325 | 122,953 | |||
Gross profit | 7,843 | 13,448 | 25,557 | 38,749 | |||
Selling, general and administrative expenses | 10,376 | 12,436 | 33,352 | 35,512 | |||
Operating (loss) income | -2,533 | 1,012 | -7,795 | 3,237 | |||
Interest expense | 159 | 88 | 426 | 159 | |||
Interest income | 172 | 122 | 492 | 259 | |||
Investment income | 59 | 11 | 126 | 47 | |||
Other (expense) income, net | -136 | -412 | -1,125 | -131 | |||
(Loss) income before taxes | -2,597 | 645 | -8,728 | 3,253 | |||
Provision for income taxes | 6,999 | 385 | 6,438 | 1,286 | |||
Net (loss) income | ( | ( | |||||
(Loss) income per common share | |||||||
Basic | ( | ( | |||||
Diluted | ( | ( | |||||
Weighted average common shares outstanding | |||||||
Basic | 6,513 | 6,462 | 6,505 | 6,511 | |||
Diluted | 6,513 | 6,469 | 6,505 | 6,538 | |||
Dividends per share | $ - | ||||||
OTHER CONSOLIDATED FINANCIAL DATA | |||||||
Three Months Ended | Nine Months Ended | ||||||
July 31, | July 31, | ||||||
Operating Data: | 2024 | 2023 | 2024 | 2023 | |||
(unaudited) | (unaudited) | ||||||
Gross margin | |||||||
SG&A expense as a percentage of sales | |||||||
Operating (loss) income as a percentage of sales | - | - | |||||
Pre-tax (loss) income as a percentage of sales | - | - | |||||
Effective tax rate | - | - | |||||
Depreciation and amortization | |||||||
Capital expenditures | |||||||
Balance Sheet Data: | 7/31/2024 | 10/31/2023 | |||||
Working capital | |||||||
Days sales outstanding | 46 | 41 | |||||
Inventory turns | 1 | 1.1 | |||||
Capitalization | |||||||
Total debt | -- | -- | |||||
Shareholders' equity | 206,625 | 222,231 | |||||
Total | |||||||
Hurco Companies, Inc. | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(In thousands, except share and per share data) | |||
July 31, | October 31, | ||
2024 | 2023 | ||
ASSETS | (unaudited) | ||
Current assets: | |||
Cash and cash equivalents | |||
Accounts receivable, net | 25,128 | 39,965 | |
Inventories, net | 164,170 | 157,952 | |
Derivative assets | 83 | 740 | |
Prepaid and other assets | 7,777 | 7,789 | |
Total current assets | 233,212 | 248,230 | |
Property and equipment: | |||
Land | 1,046 | 1,046 | |
Building | 7,387 | 7,387 | |
Machinery and equipment | 26,056 | 26,779 | |
Leasehold improvements | 4,545 | 4,473 | |
39,034 | 39,685 | ||
Less accumulated depreciation and amortization | -31,843 | -30,826 | |
Total property and equipment, net | 7,191 | 8,859 | |
Non-current assets: | |||
Software development costs, less accumulated amortization | 7,076 | 7,030 | |
Intangible assets, net | 798 | 994 | |
Operating lease - right of use assets, net | 12,158 | 10,971 | |
Deferred income taxes | 1,237 | 4,749 | |
Investments and other assets | 10,704 | 9,756 | |
Total non-current assets | 31,973 | 33,500 | |
Total assets | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | |||
Customer deposits | 4,341 | 2,827 | |
Derivative liabilities | 1,856 | 1,821 | |
Operating lease liabilities | 3,924 | 3,712 | |
Accrued payroll and employee benefits | 7,985 | 9,853 | |
Accrued income taxes | 830 | 1,713 | |
Accrued expenses | 4,283 | 4,092 | |
Accrued warranty expenses | 1,076 | 1,294 | |
Total current liabilities | 51,233 | 54,973 | |
Non-current liabilities: | |||
Deferred income taxes | 59 | 83 | |
Accrued tax liability | 701 | 1,293 | |
Operating lease liabilities | 8,602 | 7,606 | |
Deferred credits and other | 5,156 | 4,403 | |
Total non-current liabilities | 14,518 | 13,385 | |
Shareholders' equity: | |||
Preferred stock: no par value per share, 1,000,000 shares authorized; no shares issued | - | - | |
Common stock: no par value, $.10 stated value per share, 12,500,000 shares authorized; 6,607,060 and 6,553,673 shares issued and 6,493,846 and 6,462,138 shares outstanding, as of July 31, 2024 and October 31, 2023, respectively | 649 | 646 | |
Additional paid-in capital | 61,919 | 61,665 | |
Retained earnings | 162,865 | 180,124 | |
Accumulated other comprehensive loss | -18,808 | -20,204 | |
Total shareholders' equity | 206,625 | 222,231 | |
Total liabilities and shareholders' equity | |||
FAQ
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