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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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 second quarter 2014 financial results.
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Date: January 28, 2014
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Twin Disc, Inc.
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_/s/ JEFFREY S. KNUTSON
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Jeffrey S. Knutson
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Corporate Controller & Secretary
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· North American Pressure-Pumping Sector Remains Weak
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· Sales to Asia Continued at Record Levels
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· Net Cash at December 27, 2013 was $6,059,000
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· Six-Month Backlog at December 27, 2013 was $56,161,000
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME
(In thousands, except per-share data; unaudited)
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||||||||||||||||
Three Months Ended
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Six Months Ended
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|||||||||||||||
27-Dec
2013
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28-Dec
2012
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27-Dec
2013
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28-Dec
2012
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|||||||||||||
Net sales
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$ | 63,212 | $ | 72,325 | $ | 129,638 | $ | 141,118 | ||||||||
Cost of goods sold
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44,668 | 50,014 | 90,427 | 99,391 | ||||||||||||
Gross profit
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18,544 | 22,311 | 39,211 | 41,727 | ||||||||||||
Marketing, engineering and
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||||||||||||||||
administrative expenses
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17,185 | 16,770 | 32,702 | 33,390 | ||||||||||||
Restructuring of operations
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- | - | 1,094 | - | ||||||||||||
Earnings from operations
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1,359 | 5,541 | 5,415 | 8,337 | ||||||||||||
Interest expense
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223 | 329 | 477 | 635 | ||||||||||||
Other (income) expense, net
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(119 | ) | (22 | ) | (153 | ) | 105 | |||||||||
Earnings before income
taxes and noncontrolling interest
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1,255 | 5,234 | 5,091 | 7,597 | ||||||||||||
Income taxes
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689 | 1,815 | 3,161 | 2,912 | ||||||||||||
Net earnings
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566 | 3,419 | 1,930 | 4,685 | ||||||||||||
Less: Net earnings attributable to
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||||||||||||||||
noncontrolling interest, net of tax
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(48 | ) | (59 | ) | (135 | ) | (94 | ) | ||||||||
Net earnings attributable to Twin Disc
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$ | 518 | $ | 3,360 | $ | 1,795 | $ | 4,591 | ||||||||
Earnings per share data:
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||||||||||||||||
Basic earnings per share attributable to
Twin Disc common shareholders
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$ | 0.05 | $ | 0.30 | $ | 0.16 | $ | 0.41 | ||||||||
Diluted earnings per share attributable to
Twin Disc common shareholders
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$ | 0.05 | $ | 0.29 | $ | 0.16 | $ | 0.40 | ||||||||
Weighted average shares outstanding data:
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||||||||||||||||
Basic shares outstanding
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11,264 | 11,366 | 11,251 | 11,368 | ||||||||||||
Diluted shares outstanding
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11,270 | 11,434 | 11,257 | 11,441 | ||||||||||||
Dividends per share
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$ | 0.09 | $ | 0.09 | $ | 0.18 | $ | 0.18 | ||||||||
Comprehensive income:
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||||||||||||||||
Net earnings
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$ | 566 | $ | 3,419 | $ | 1,930 | $ | 4,685 | ||||||||
Other comprehensive income:
Foreign currency translation adjustment
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1,119 | 2,130 | 2,999 | 3,394 | ||||||||||||
Benefit plan adjustments, net
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528 | 652 | 978 | 1,320 | ||||||||||||
Comprehensive income
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2,213 | 6,201 | 5,907 | 9,399 | ||||||||||||
Comprehensive income attributable to
noncontrolling interest
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(48 | ) | (59 | ) | (135 | ) | (94 | ) | ||||||||
Comprehensive income attributable to
Twin Disc
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$ | 2,165 | $ | 6,142 | $ | 5,772 | $ | 9,305 |
RECONCILIATION OF CONSOLIDATED NET EARNINGS TO EBITDA
(In thousands; unaudited)
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|||||||||||||||||
Three Months Ended
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Six Months Ended
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||||||||||||||||
27-Dec
2013
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28-Dec
2012
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27-Dec
2013
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28-Dec
2012
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Net earnings attributable to Twin Disc
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$ | 518 | $ | 3,360 | $ | 1,795 | $ | 4,591 | |||||||||
Interest expense
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223 | 329 | 477 | 635 | |||||||||||||
Income taxes
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689 | 1,815 | 3,161 | 2,912 | |||||||||||||
Depreciation and amortization
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2,595 | 2,713 | 5,198 | 5,345 | |||||||||||||
Earnings before interest, taxes,
depreciation and amortization
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$ | 4,025 | $ | 8,217 | $ | 10,631 | $ | 13,483 |
CONDENSED CONSOLIDATED BALANCE SHEETS
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||||||||
(In thousands, except share amounts; unaudited)
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||||||||
December 27,
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June 30,
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|||||||
2013
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2013
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|||||||
ASSETS
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Current assets:
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Cash
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$ | 27,124 | $ | 20,724 | ||||
Trade accounts receivable, net
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34,907 | 46,331 | ||||||
Inventories, net
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102,590 | 102,774 | ||||||
Deferred income taxes
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5,283 | 5,280 | ||||||
Other
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11,183 | 13,363 | ||||||
Total current assets
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181,087 | 188,472 | ||||||
Property, plant and equipment, net
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61,100 | 62,315 | ||||||
Goodwill
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13,438 | 13,232 | ||||||
Deferred income taxes
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6,782 | 7,614 | ||||||
Intangible assets, net
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3,028 | 3,149 | ||||||
Other assets
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9,094 | 10,676 | ||||||
TOTAL ASSETS
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$ | 274,529 | $ | 285,458 | ||||
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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$ | 3,643 | $ | 3,681 | ||||
Accounts payable
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19,890 | 20,651 | ||||||
Accrued liabilities
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34,188 | 39,171 | ||||||
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||||||||
Total current liabilities
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57,721 | 63,503 | ||||||
Long-term debt
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17,422 | 23,472 | ||||||
Accrued retirement benefits
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46,865 | 48,290 | ||||||
Deferred income taxes
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2,666 | 2,925 | ||||||
Other long-term liabilities
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3,923 | 3,706 | ||||||
Total liabilities
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128,597 | 141,896 | ||||||
Twin Disc shareholders’ equity:
Common shares authorized: 30,000,000;
Issued: 13,099,468; no par value
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11,368 | 13,183 | ||||||
Retained earnings
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183,874 | 184,110 | ||||||
Accumulated other comprehensive loss
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(21,882 | ) | (25,899 | ) | ||||
173,360 | 171,394 | |||||||
Less treasury stock, at cost
(1,834,595 and 1,886,516 shares, respectively)
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28,095 | 28,890 | ||||||
Total Twin Disc shareholders' equity
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145,265 | 142,504 | ||||||
Noncontrolling interest
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667 | 1,058 | ||||||
Total equity
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145,932 | 143,562 | ||||||
TOTAL LIABILITIES AND EQUITY
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$ | 274,529 | $ | 285,458 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
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||||||||
Six Months Ended
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||||||||
December 27,
2013
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December 28,
2012
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CASH FLOWS FROM OPERATING ACTIVITIES:
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Net earnings
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$ | 1,930 | $ | 4,685 | ||||
Adjustments to reconcile to net earnings to cash provided
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||||||||
by operating activities:
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Depreciation and amortization
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5,198 | 5,345 | ||||||
Restructuring of operations
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1,094 | - | ||||||
Other non-cash changes, net
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(18 | ) | 1,599 | |||||
Net change in working capital, excluding cash
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11,413 | 463 | ||||||
Net cash provided by operating activities
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19,617 | 12,092 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
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Acquisitions of fixed assets
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(3,004 | ) | (3,529 | ) | ||||
Proceeds from sale of fixed assets
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46 | 35 | ||||||
Other, net
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(244 | ) | (293 | ) | ||||
Net cash used by investing activities
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(3,202 | ) | (3,787 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
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Principal payments of notes payable
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(39 | ) | (51 | ) | ||||
(Payments of) proceeds from long-term debt
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(6,052 | ) | 1,892 | |||||
Proceeds from exercise of stock options
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- | 189 | ||||||
Dividends paid to shareholders
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(2,031 | ) | (2,055 | ) | ||||
Acquisition of treasury stock
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- | (3,069 | ) | |||||
Dividends paid to noncontrolling interest
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(486 | ) | (204 | ) | ||||
Excess tax benefits from stock compensation
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524 | 1,276 | ||||||
Payments of withholding taxes on stock compensation
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(2,170 | ) | (1,700 | ) | ||||
Net cash used by financing activities
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(10,254 | ) | (3,722 | ) | ||||
Effect of exchange rate changes on cash
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239 | 286 | ||||||
Net change in cash
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6,400 | 4,869 | ||||||
Cash:
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Beginning of period
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20,724 | 15,701 | ||||||
End of period
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$ | 27,124 | $ | 20,570 |