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Hurco Reports Third Quarter Results for Fiscal Year 2024

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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.

Positive
  • 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
Negative
  • 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 $9.6 million compared to a $260,000 profit in Q3 FY2023. The key factors driving this downturn include:

  • A $8.16 million non-cash tax valuation allowance
  • A 20% decrease in sales to $42.65 million
  • Gross profit margin compression from 25% to 18%

While orders improved by 26% to $52.82 million, outpacing sales by $10 million, this positive trend hasn't yet translated to financial performance. The company's cost-cutting measures and focus on higher-end machines may help stabilize performance, but the near-term outlook remains challenging given the cyclical nature of the machine tool industry.

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 $9,596,000, or $(1.47) per diluted share, in the third quarter of fiscal year 2024, which included a non-cash tax valuation allowance of $8,158,000 recorded in provision for income taxes. This net loss of $9,596,000 for the third quarter of fiscal 2024 compares to net income of $260,000, or $0.04 per diluted share, for the corresponding period in fiscal year 2023. For the nine months of fiscal year 2024, Hurco reported a net loss of $15,166,000, or $(2.33) per diluted share, compared to net income of $1,967,000, or $0.30 per diluted share, for the corresponding period in fiscal year 2023. The net loss for the nine months of fiscal 2024 also included the $8,158,000 non-cash tax valuation allowance recorded in provision for income taxes.

Sales and service fees for the third quarter of fiscal year 2024 were $42,651,000, a decrease of $10,550,000, or 20%, compared to the corresponding prior year period, and included an unfavorable currency impact of $42,000, or less than 1%, when translating foreign sales to U.S. dollars for financial reporting purposes. Sales and service fees for the nine months of fiscal year 2024 were $132,882,000, a decrease of $28,820,000, or 18%, compared to the corresponding prior year period, and included a favorable currency impact of $796,000, or less than 1%, when translating foreign sales to U.S. dollars for financial reporting purposes.

Greg Volovic, Chief Executive Officer, stated, “While sales declined this quarter orders were positive. Global orders for this quarter exceeded $52,000,000 and improved both year-over-year and compared to the previous two fiscal quarters. Orders this quarter also outpaced sales by more than $10,000,000. We are hopeful that this positive order growth is representative of a trend and are prepared to meet new order growth. The global cost reductions we implemented this quarter will continue to impact results going forward. We remain focused on advancing the future of Hurco with many technological innovations. In September, IMTS attendees will have the unique opportunity to engage with the latest concept designs of Hurco's next-generation control and Milltronics’ new INSPIRE+ control and software. We will also showcase all of our CNC machines with ProCobots collaborative robotic systems. Hurco's advanced control software is now integrated with industrial robot automation from Kawasaki Robotics and Hurco Automation, powered by ProCobots, eliminating the need for complex robot programming. We believe that our strong balance sheet and focus on future technological advancement differentiates Hurco from our competitors, helping us navigate cyclical periods and emerge stronger. We look forward to an exciting exhibition at IMTS and market improvement for machine tools as we close out fiscal 2024.”

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,
 20242023$ Change% Change 20242023$ Change% Change
Americas$15,389$18,272($2,883)(16)% $48,986$58,609($9,623)(16)%
Europe24,06831,162(7,094)(23)% 69,53889,745(20,207)(23)%
Asia Pacific3,1943,767(573)(15)% 14,35813,3481,010 8%
Total$42,651$53,201($10,550)(20)% $132,882$161,702($28,820)(18)%
 

Sales in the Americas for each of the third quarter and nine months of fiscal year 2024 decreased by 16%, compared to the corresponding periods in fiscal year 2023, primarily due to decreased shipments of Hurco and Takumi machines. The decrease in sales of these machines was mainly attributable to decreased shipments of Hurco and Takumi 3-axis vertical machines, partially offset by increased sales of higher-performing Hurco 5-axis machines and Milltronics 3-axis vertical machines.

European sales for each of the third quarter and nine months of fiscal year 2024 decreased by 23%, compared to the corresponding periods in fiscal year 2023, and each period included a favorable currency impact of 1%, when translating foreign sales to U.S. dollars for financial reporting purposes. The year-over-year decreases in European sales were primarily attributable to a decreased volume of shipments of Hurco and Takumi machines in Germany, Italy, and the United Kingdom, as well as decreased shipments of electro-mechanical components and accessories manufactured by our wholly-owned subsidiary, LCM Precision Technology S.r.l. (“LCM”).

Asian Pacific sales for the third quarter of fiscal year 2024 decreased by 15%, compared to the corresponding period in fiscal year 2023, and included an unfavorable currency impact of 2%, when translating foreign sales to U.S. dollars for financial reporting purposes. The third quarter of fiscal year 2024 decrease in Asian Pacific sales was mainly due to decreased shipments of Takumi machines in China and Hurco machines in Southeast Asia, partially offset by increased shipments of Hurco machines in India and to one customer with multiple machine orders in China. Asian Pacific sales for the nine months of fiscal year 2024 increased by 8%, compared to the corresponding prior year period, and included an unfavorable currency impact of 2%, when translating foreign sales to U.S. dollars for financial reporting purposes. The year-over-year increase in Asian Pacific sales in the nine-month period was primarily attributable to increased shipments of Hurco machines in India and to one customer with multiple machine orders in China, partially offset by decreased shipments of Takumi machines in China and Hurco machines in Southeast Asia.

Orders for the third quarter of fiscal year 2024 were $52,815,000, an increase of $10,733,000, or 26%, compared to the corresponding period in fiscal year 2023, and included an unfavorable currency impact of $47,000, or less than 1%, when translating foreign orders to U.S. dollars. Orders for the nine months of fiscal year 2024 were $147,225,000, a decrease of $8,310,000, or 5%, compared to the corresponding period in fiscal year 2023, and included a favorable currency impact of $846,000, or less than 1%, when translating foreign orders to U.S. dollars.

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,
 20242023$ Change
% Change 20242023$ Change% Change
Americas$17,625$14,607$3,018 21% $55,490$56,548($1,058)(2)%
Europe28,34924,7523,597 15% 75,75787,632(11,875)(14)%
Asia Pacific6,8412,7234,118 151% 15,97811,3554,623 41%
Total$52,815$42,082$10,733 26% $147,225$155,535($8,310)(5)%
 

Orders in the Americas for the third quarter of fiscal year 2024 increased by 21%, compared to the corresponding period in fiscal year 2023. The increase in orders was primarily due to increased customer demand for Hurco higher-performing 5-axis machines, Hurco and Milltronics lathes, and Milltronics 3-axis vertical machines. Orders in the Americas for the nine months of fiscal year 2024 decreased by 2%, compared to the corresponding period in fiscal year 2023. The decrease in orders was primarily due to decreased customer demand for Hurco 3-axis vertical machines, partially offset by increased demand for Hurco higher-performing 5-axis machines and Milltronics 3-axis vertical machines. The decrease in orders was also impacted by a reduction in average net selling prices for certain machines designed to penetrate key markets and reduce inventories.

European orders for the third quarter of fiscal year 2024 increased by 15%, compared to the corresponding prior year period, and included a favorable currency impact of less than 1%, when translating foreign orders to U.S. dollars. The increase in orders was driven primarily by increased customer demand for Hurco machines in the United Kingdom, France and Italy, particularly Hurco lathes and higher-performing 5-axis machines. European orders for the nine months of fiscal year 2024 decreased by 14%, compared to the corresponding prior year period, and included a favorable currency impact of 1%, when translating foreign orders to U.S. dollars. The year-over-year decrease was mainly due to decreased customer demand for Hurco machines across the European region where our customers are located and for electro-mechanical components and accessories manufactured by LCM.

Asian Pacific orders for the third quarter of fiscal year 2024 increased by 151%, compared to the corresponding prior year period, and included an unfavorable currency impact of 5%, when translating foreign orders to U.S. dollars. The increase in Asian Pacific orders was driven primarily by increased customer demand for Hurco and Takumi machines in China, India, and Southeast Asia. Orders for the nine months of fiscal year 2024 increased by 41%, compared to the corresponding prior year period, and included an unfavorable currency impact of 3%, when translating foreign orders to U.S. dollars. The year-over-year increase in Asian Pacific orders was driven primarily by increased customer demand for Hurco machines in China and Hurco and Takumi machines in India, partially offset by decreased demand for Takumi machines in China. The increased customer demand for Hurco machines in China and India for both periods related primarily to two customers with multiple machine orders.

Gross profit for the third quarter of fiscal year 2024 was $7,843,000, or 18% of sales, compared to $13,448,000, or 25% of sales, for the corresponding prior year period. Gross profit for the nine months of fiscal year 2024 was $25,557,000, or 19% of sales, compared to $38,749,000, or 24% of sales, for the corresponding prior year period. The year-over-year decreases were primarily due to the lower volume of vertical milling machine sales in the Americas and Europe. Additionally, the second and third quarters of fiscal year 2024 included decreases in average net selling prices for certain machines, designed to penetrate key markets and reduce inventories. The decreases in both sales volume and pricing unfavorably impacted gross profit in dollars and as a percentage of sales, reducing our leverage of fixed costs, in comparison to the corresponding prior year periods. Further, certain cost reductions were implemented in the third quarter of fiscal 2024 in an effort to help offset the impact of lower sales volumes and pricing.

Selling, general, and administrative expenses for the third quarter of fiscal year 2024 were $10,376,000, or 24% of sales, compared to $12,436,000, or 23% of sales, in the corresponding fiscal year 2023 period, and included a favorable currency impact of $27,000, when translating foreign expenses to U.S. dollars for financial reporting purposes. Selling, general, and administrative expenses for the nine months of fiscal year 2024 were $33,352,000, or 25% of sales, compared to $35,512,000, or 22% of sales, in the corresponding fiscal year 2023 period, and included an unfavorable currency impact of $155,000, when translating foreign expenses to U.S. dollars for financial reporting purposes. The year-over-year reductions in selling, general, and administrative expenses were primarily due to cost reductions implemented in the third quarter of fiscal year 2024 in an effort to help offset the impact of lower sales volume. Despite reductions from an absolute dollar perspective, selling, general, and administrative expenses increased as a percentage of sales in the third quarter and nine months of fiscal year 2024, compared to each of the corresponding prior year periods, due to the lower volume of sales year-over-year.

Income tax expenses during the third quarter and nine months of fiscal year 2024 was $6,999,000 and $6,438,000, respectively, compared to $385,000 and $1,286,000 for the corresponding periods in 2023. The year-over-year increases in income tax expense for the third quarter and nine months of fiscal year 2024 were primarily due to an $8,158,000 non-cash valuation allowance on U.S. deferred tax assets and changes in geographic mix of income and loss that includes jurisdictions with differing tax rates, and, specifically for the nine months of fiscal year 2024, discrete items related to unvested stock compensation. Because we have a valuation allowance recorded against our U.S. deferred tax assets, we did not record a tax benefit for our U.S. net losses for the nine months ended July 31, 2024. The valuation allowance recorded during the third quarter of fiscal 2024 reflects a full valuation allowance of the U.S. deferred tax assets and was recorded after evaluating changes to tax laws, statutory tax rates, and our cumulative historical three-year income levels for the U.S. as of July 31, 2024.

Cash and cash equivalents totaled $36,054,000 at July 31, 2024, compared to $41,784,000 at October 31, 2023. Working capital was $181,979,000 at July 31, 2024, compared to $193,257,000 at October 31, 2023. The decrease in working capital was primarily driven by decreases in accounts receivable, net and cash and cash equivalents, partially offset by increases in inventories, net and decreases in accounts payable and accrued payroll and employee benefits.

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$42,651 $53,201 $132,882 $161,702
Cost of sales and service34,808 39,753 107,325 122,953
        
Gross profit7,843 13,448 25,557 38,749
Selling, general and administrative expenses10,376 12,436 33,352 35,512
        
Operating (loss) income-2,533 1,012 -7,795 3,237
        
Interest expense159 88 426 159
Interest income172 122 492 259
Investment income59 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 taxes6,999 385 6,438 1,286
Net (loss) income($9,596) $260 ($15,166) $1,967
        
(Loss) income per common share       
Basic($1.47) $0.04 ($2.33) $0.30
Diluted($1.47) $0.04 ($2.33) $0.30
Weighted average common shares outstanding       
Basic6,513 6,462 6,505 6,511
Diluted6,513 6,469 6,505 6,538
        
Dividends per share$ - $0.16 $0.32 $0.47
        
        
OTHER CONSOLIDATED FINANCIAL DATA       
 Three Months Ended Nine Months Ended
 July 31,   July 31,  
Operating Data:2024 2023 2024 2023
 (unaudited)   (unaudited)  
Gross margin18% 25% 19% 24%
SG&A expense as a percentage of sales24% 23% 25% 22%
Operating (loss) income as a percentage of sales-6% 2% -6% 2%
Pre-tax (loss) income as a percentage of sales-6% 1% -7% 2%
Effective tax rate-270% 60% -74% 40%
Depreciation and amortization$888 $1,037 $2,678 $3,141
Capital expenditures$735 $345 $2,046 $1,751
        
Balance Sheet Data:7/31/2024 10/31/2023    
Working capital$181,979 $193,257    
Days sales outstanding46 41    
Inventory turns1 1.1    
Capitalization       
Total debt-- --    
Shareholders' equity206,625 222,231    
Total$206,625 $222,231    
        


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$36,054 $41,784
Accounts receivable, net25,128 39,965
Inventories, net164,170 157,952
Derivative assets83 740
Prepaid and other assets7,777 7,789
Total current assets233,212 248,230
Property and equipment:   
Land1,046 1,046
Building7,387 7,387
Machinery and equipment26,056 26,779
Leasehold improvements4,545 4,473
 39,034 39,685
Less accumulated depreciation and amortization-31,843 -30,826
Total property and equipment, net7,191 8,859
Non-current assets:   
Software development costs, less accumulated amortization7,076 7,030
Intangible assets, net798 994
Operating lease - right of use assets, net12,158 10,971
Deferred income taxes1,237 4,749
Investments and other assets10,704 9,756
Total non-current assets31,973 33,500
Total assets$272,376 $290,589
    
LIABILITIES AND SHAREHOLDERS' EQUITY   
Current liabilities:   
Accounts payable$26,938 $29,661
Customer deposits4,341 2,827
Derivative liabilities1,856 1,821
Operating lease liabilities3,924 3,712
Accrued payroll and employee benefits7,985 9,853
Accrued income taxes830 1,713
Accrued expenses4,283 4,092
Accrued warranty expenses1,076 1,294
Total current liabilities51,233 54,973
Non-current liabilities:   
Deferred income taxes59 83
Accrued tax liability701 1,293
Operating lease liabilities8,602 7,606
Deferred credits and other5,156 4,403
Total non-current liabilities14,518 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, respectively649 646
Additional paid-in capital61,919 61,665
Retained earnings162,865 180,124
Accumulated other comprehensive loss-18,808 -20,204
Total shareholders' equity206,625 222,231
Total liabilities and shareholders' equity$272,376 $290,589
    



FAQ

What were Hurco's (HURC) Q3 FY2024 financial results?

Hurco reported a net loss of $9.6 million ($1.47 per diluted share) on sales of $42.65 million for Q3 FY2024. This included an $8.16 million non-cash tax valuation allowance.

How did Hurco's (HURC) Q3 FY2024 orders compare to sales?

Hurco's Q3 FY2024 orders were $52.82 million, exceeding sales by over $10 million and representing a 26% increase year-over-year.

What cost-saving measures has Hurco (HURC) implemented?

Hurco implemented global cost reductions in Q3 FY2024, which are expected to impact results going forward. The company aims to offset the impact of lower sales volumes.

What technological innovations is Hurco (HURC) focusing on?

Hurco is focusing on new control designs, including next-generation Hurco control and Milltronics' INSPIRE+ control. They're also integrating CNC machines with ProCobots collaborative robotic systems and Kawasaki Robotics automation.

Hurco Cos Inc

NASDAQ:HURC

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152.32M
5.95M
7.76%
70.48%
0.38%
Specialty Industrial Machinery
Industrial Instruments for Measurement, Display, and Control
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United States of America
INDIANAPOLIS