WISCONSIN
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001-7635
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39-0667110
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(State or other jurisdiction
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(Commission
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(IRS Employer
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of incorporation)
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File Number)
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Identification No.)
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02
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Results of Operations and Financial Condition
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Votes For
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Percent(1)
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Votes Withheld
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Percent(1)
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Broker Non-Votes
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David B. Rayburn
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7,768,907
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88.85%
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975,386
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11.15%
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1,577,389
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Malcolm F. Moore
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8,534,533
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97.60%
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209,760
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2.40%
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1,577,389
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Votes For
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Votes Against
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Abstentions
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Broker Non-Votes
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Number of
Votes Cast:
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7,417,015
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343,328
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984,950
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1,577,389
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Votes For
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Votes Against
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Abstentions
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Number of
Votes Cast:
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10,147,868
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119,379
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54,435
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(1)
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Percentages shown for election of Directors (Proposal No. 1) are based on totals of votes cast for and votes withheld from each indicated Director. Abstentions and broker non-votes were not considered as part of the totals on which percentages were based.
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Item 7.01
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Regulation FD Disclosure
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Item 9.01
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Financial Statements and Exhibits
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(c)
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Exhibits
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EXHIBIT NUMBER
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DESCRIPTION
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99.1
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Press Release announcing first quarter 2013 financial results.
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Date: October 23, 2012
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Twin Disc, Inc.
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_/s/ THOMAS E. VALENTYN
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Thomas E. Valentyn
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General Counsel & Secretary
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· First Quarter Sales and Profitability Decline Compared to Record 2012 First Quarter
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· Management Cautious for Fiscal 2013 as Slowdown in Pressure Pumping Sector Continues
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· Balance Sheet Remains Strong
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except per-share data; unaudited)
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||||||||
Three Months Ended
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||||||||
September 28,
2012
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September 30,
2011
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|||||||
Net sales
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$ | 68,793 | $ | 81,330 | ||||
Cost of goods sold
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49,377 | 50,562 | ||||||
Gross profit
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19,416 | 30,768 | ||||||
Marketing, engineering and
administrative expenses
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16,620 | 15,909 | ||||||
Earnings from operations
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2,796 | 14,859 | ||||||
Interest expense
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306 | 359 | ||||||
Other expense (income), net
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127 | (394 | ) | |||||
Earnings before income
taxes and noncontrolling interest
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2,363 | 14,894 | ||||||
Income taxes
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1,077 | 5,259 | ||||||
Net earnings
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1,286 | 9,635 | ||||||
Less: Net earnings attributable to noncontrolling
interest, net of tax
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(35 | ) | (54 | ) | ||||
Net earnings attributable to Twin Disc
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$ | 1,251 | $ | 9,581 | ||||
Earnings per share:
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||||||||
Basic earnings per share attributable to
Twin Disc common shareholders
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$ | 0.11 | $ | 0.84 | ||||
Diluted earnings per share attributable to
Twin Disc common shareholders
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$ | 0.11 | $ | 0.83 | ||||
Weighted average shares outstanding:
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||||||||
Basic
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11,368 | 11,396 | ||||||
Diluted
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11,446 | 11,541 | ||||||
Dividends per share
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$ | 0.09 | $ | 0.08 | ||||
Net earnings
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$ | 1,286 | $ | 9,635 | ||||
Other comprehensive income:
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||||||||
Foreign currency translation adjustment
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1,264 | (2,275 | ) | |||||
Benefit plan adjustments, net
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668 | 474 | ||||||
Other comprehensive income (loss), net
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1,932 | (1,801 | ) | |||||
Comprehensive income
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3,218 | 7,834 | ||||||
Less: comprehensive income attributable to
noncontrolling interest
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(35 | ) | (54 | ) | ||||
Comprehensive income attributable to Twin Disc
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$ | 3,183 | $ | 7,780 |
RECONCILIATION OF CONSOLIDATED NET EARNINGS TO EBITDA
(In thousands; unaudited)
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||||||||
Three Months Ended
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||||||||
September 28,
2012
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September 30,
2011
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|||||||
Net earnings attributable to Twin Disc
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$ | 1,251 | $ | 9,581 | ||||
Interest expense
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306 | 359 | ||||||
Income taxes
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1,077 | 5,259 | ||||||
Depreciation and amortization
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2,632 | 2,573 | ||||||
Earnings before interest, taxes,
depreciation and amortization
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$ | 5,266 | $ | 17,772 |
CONDENSED CONSOLIDATED BALANCE SHEETS
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||||||||
(In thousands; unaudited)
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||||||||
September 28,
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June 30,
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|||||||
2012
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2012
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|||||||
ASSETS
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||||||||
Current assets:
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||||||||
Cash
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$ | 21,493 | $ | 15,701 | ||||
Trade accounts receivable, net
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47,115 | 63,438 | ||||||
Inventories, net
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112,811 | 103,178 | ||||||
Deferred income taxes
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3,870 | 3,745 | ||||||
Other
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11,050 | 11,099 | ||||||
Total current assets
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196,339 | 197,161 | ||||||
Property, plant and equipment, net
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65,315 | 66,356 | ||||||
Goodwill, net
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13,135 | 13,116 | ||||||
Deferred income taxes
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12,377 | 14,335 | ||||||
Intangible assets, net
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4,840 | 4,996 | ||||||
Other assets
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8,093 | 7,868 | ||||||
TOTAL ASSETS
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$ | 300,099 | $ | 303,832 | ||||
LIABILITIES AND EQUITY
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||||||||
Current liabilities:
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||||||||
Short-term borrowings and current maturities of long-term debt
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$ | 3,656 | $ | 3,744 | ||||
Accounts payable
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25,923 | 23,550 | ||||||
Accrued liabilities
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29,845 | 39,331 | ||||||
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||||||||
Total current liabilities
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59,424 | 66,625 | ||||||
Long-term debt
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35,338 | 28,401 | ||||||
Accrued retirement benefits
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60,315 | 64,009 | ||||||
Deferred income taxes
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3,235 | 3,340 | ||||||
Other long-term liabilities
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2,200 | 4,171 | ||||||
Total liabilities
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160,512 | 166,546 | ||||||
Twin Disc shareholders’ equity:
Common shares authorized: 30,000,000;
Issued: 13,099,468; no par value
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11,929 | 12,759 | ||||||
Retained earnings
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185,308 | 185,083 | ||||||
Accumulated other comprehensive loss
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(32,903 | ) | (34,797 | ) | ||||
164,334 | 163,045 | |||||||
Less treasury stock, at cost
(1,689,722 and 1,794,981 shares, respectively)
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25,638 | 26,781 | ||||||
Total Twin Disc shareholders' equity
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138,696 | 136,264 | ||||||
Noncontrolling interest
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891 | 1,022 | ||||||
Total equity
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139,587 | 137,286 | ||||||
TOTAL LIABILITIES AND EQUITY
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$ | 300,099 | $ | 303,832 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands; unaudited)
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||||||||
Three Months Ended
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||||||||
September 28,
2012
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September 30,
2011
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|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
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Net earnings
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$ | 1,286 | $ | 9,635 | ||||
Adjustments to reconcile net earnings to net cash provided
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||||||||
(used) by operating activities:
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||||||||
Depreciation and amortization
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2,632 | 2,573 | ||||||
Other non-cash changes, net
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155 | 2,505 | ||||||
Net change in working capital,
excluding cash and debt, and other
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(1,991 | ) | (16,354 | ) | ||||
Net cash provided (used) by operating activities
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2,082 | (1,641 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES:
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Acquisitions of fixed assets
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(1,337 | ) | (3,587 | ) | ||||
Proceeds from sale of fixed assets
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31 | - | ||||||
Other, net
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(293 | ) | (293 | ) | ||||
Net cash used by investing activities
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(1,599 | ) | (3,880 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
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||||||||
Principal payments of notes payable
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(88 | ) | (53 | ) | ||||
Proceeds from long-term debt
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6,935 | 11,164 | ||||||
Proceeds from exercise of stock options
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129 | 169 | ||||||
Dividends paid to shareholders
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(1,026 | ) | (914 | ) | ||||
Dividends paid to noncontrolling interest
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(204 | ) | (132 | ) | ||||
Excess tax benefits from stock compensation
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1,316 | 445 | ||||||
Other
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(1,700 | ) | (183 | ) | ||||
Net cash provided by financing activities
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5,362 | 10,496 | ||||||
Effect of exchange rate changes on cash
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(53 | ) | (444 | ) | ||||
Net change in cash
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5,792 | 4,531 | ||||||
Cash:
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||||||||
Beginning of period
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15,701 | 20,167 | ||||||
End of period
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$ | 21,493 | $ | 24,698 |