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OMB Number: | 3235-0060 | |||
Expires: | April 30, 2015 | |||
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hours per response …. | 5.71 |
Florida | 0-21835 | 59-2754337 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
1500 West University Parkway, Sarasota, Florida | 34243 | |
(Address of principal executive offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits. | ||
99.1 | Press release dated November 4, 2013. |
SUN HYDRAULICS CORPORATION | ||
By: | /s/ Tricia L. Fulton | |
Tricia L. Fulton | ||
Chief Financial Officer (Principal Financial and Accounting Officer) |
September 28, 2013 | September 29, 2012 | Increase/(Decrease) | ||||||||
Three Months Ended | ||||||||||
Net sales | $ | 49.4 | $ | 48.8 | 1 | % | ||||
Net income | $ | 8.3 | $ | 8.8 | (6 | )% | ||||
Net income per share: | ||||||||||
Basic | $ | 0.32 | $ | 0.34 | (6 | )% | ||||
Diluted | $ | 0.32 | $ | 0.34 | (6 | )% | ||||
Nine Months Ended | ||||||||||
Net sales | $ | 156.2 | $ | 161.1 | (3 | )% | ||||
Net income | $ | 29.6 | $ | 30.7 | (3 | )% | ||||
Net income per share: | ||||||||||
Basic | $ | 1.13 | $ | 1.19 | (5 | )% | ||||
Diluted | $ | 1.13 | $ | 1.18 | (4 | )% |
Three months ended | |||||||
September 28, 2013 | September 29, 2012 | ||||||
(unaudited) | (unaudited) | ||||||
Net sales | $ | 49,369 | $ | 48,825 | |||
Cost of sales | 29,755 | 29,428 | |||||
Gross profit | 19,614 | 19,397 | |||||
Selling, engineering and administrative expenses | 6,540 | 6,202 | |||||
Operating income | 13,074 | 13,195 | |||||
Interest (income) expense, net | (272 | ) | (406 | ) | |||
Foreign currency transaction (gain) loss, net | 82 | 2 | |||||
Miscellaneous (income) expense, net | 470 | 6 | |||||
Income before income taxes | 12,794 | 13,593 | |||||
Income tax provision | 4,519 | 4,758 | |||||
Net income | $ | 8,275 | $ | 8,835 | |||
Basic net income per common share | $ | 0.32 | $ | 0.34 | |||
Weighted average basic shares outstanding | 26,247 | 25,989 | |||||
Diluted net income per common share | $ | 0.32 | $ | 0.34 | |||
Weighted average diluted shares outstanding | 26,247 | 25,999 | |||||
Dividends declared per share | $ | 0.090 | $ | 0.090 |
Nine months ended | |||||||
September 28, 2013 | September 29, 2012 | ||||||
(unaudited) | (unaudited) | ||||||
Net sales | $ | 156,218 | $ | 161,131 | |||
Cost of sales | 92,699 | 96,546 | |||||
Gross profit | 63,519 | 64,585 | |||||
Selling, engineering and administrative expenses | 19,752 | 19,662 | |||||
Operating income | 43,767 | 44,923 | |||||
Interest (income) expense, net | (709 | ) | (1,041 | ) | |||
Foreign currency transaction (gain) loss, net | (68 | ) | (75 | ) | |||
Miscellaneous (income) expense, net | 80 | (158 | ) | ||||
Income before income taxes | 44,464 | 46,197 | |||||
Income tax provision | 14,824 | 15,493 | |||||
Net income | $ | 29,640 | $ | 30,704 | |||
Basic net income per common share | $ | 1.13 | $ | 1.19 | |||
Weighted average basic shares outstanding | 26,206 | 25,904 | |||||
Diluted net income per common share | $ | 1.13 | $ | 1.18 | |||
Weighted average diluted shares outstanding | 26,206 | 25,937 | |||||
Dividends declared per share | $ | 0.360 | $ | 0.390 |
September 28, 2013 | December 29, 2012 | ||||||
(unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 46,490 | $ | 34,478 | |||
Restricted cash | 328 | 329 | |||||
Accounts receivable, net of allowance for doubtful accounts of $132 and $124 | 18,273 | 13,754 | |||||
Inventories | 12,778 | 12,559 | |||||
Income taxes receivable | — | 728 | |||||
Deferred income taxes | 440 | 248 | |||||
Short-term investments | 40,644 | 37,700 | |||||
Other current assets | 3,174 | 2,649 | |||||
Total current assets | 122,127 | 102,445 | |||||
Property, plant and equipment, net | 74,105 | 64,672 | |||||
Goodwill | 5,188 | 4,472 | |||||
Other assets | 3,602 | 3,532 | |||||
Total assets | $ | 205,022 | $ | 175,121 | |||
Liabilities and shareholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 5,721 | $ | 4,606 | |||
Accrued expenses and other liabilities | 6,067 | 7,641 | |||||
Income taxes payable | 679 | — | |||||
Dividends payable | 2,363 | — | |||||
Total current liabilities | 14,830 | 12,247 | |||||
Deferred income taxes | 7,399 | 7,230 | |||||
Other noncurrent liabilities | 392 | 371 | |||||
Total liabilities | 22,621 | 19,848 | |||||
Commitments and contingencies | — | — | |||||
Shareholders’ equity: | |||||||
Preferred stock, 2,000,000 shares authorized, par value $0.001, no shares outstanding | — | — | |||||
Common stock, 40,000,000 shares authorized, par value $0.001, 26,250,999 and 26,094,580 shares outstanding | 26 | 26 | |||||
Capital in excess of par value | 63,956 | 57,402 | |||||
Retained earnings | 117,447 | 97,242 | |||||
Accumulated other comprehensive income (loss) | 972 | 603 | |||||
Total shareholders’ equity | 182,401 | 155,273 | |||||
Total liabilities and shareholders’ equity | $ | 205,022 | $ | 175,121 |
Nine months ended | |||||||
September 28, 2013 | September 29, 2012 | ||||||
(unaudited) | (unaudited) | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 29,640 | $ | 30,704 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 5,393 | 5,353 | |||||
(Gain)Loss on disposal of assets | 324 | 84 | |||||
Gain on investment in business | (528 | ) | — | ||||
Provision for deferred income taxes | (23 | ) | 4 | ||||
Allowance for doubtful accounts | 8 | 44 | |||||
Stock-based compensation expense | 2,124 | 1,639 | |||||
(Increase) decrease in, net of assets acquired: | |||||||
Accounts receivable | (4,514 | ) | (2,119 | ) | |||
Inventories | (151 | ) | (147 | ) | |||
Income taxes receivable | 728 | 120 | |||||
Other current assets | (525 | ) | (104 | ) | |||
Other assets | 284 | (92 | ) | ||||
Increase (decrease) in, net of liabilities assumed: | |||||||
Accounts payable | 1,115 | 65 | |||||
Accrued expenses and other liabilities | 2,206 | 3,722 | |||||
Income taxes payable | 679 | 1,047 | |||||
Other noncurrent liabilities | 21 | (219 | ) | ||||
Net cash provided by operating activities | 36,781 | 40,101 | |||||
Cash flows from investing activities: | |||||||
Investment in business, net of cash acquired | (923 | ) | — | ||||
Capital expenditures | (14,569 | ) | (6,703 | ) | |||
Proceeds from dispositions of equipment | 70 | 56 | |||||
Purchases of short-term investments | (22,945 | ) | (25,774 | ) | |||
Proceeds from sale of short-term investments | 19,327 | 6,821 | |||||
Net cash used in investing activities | (19,040 | ) | (25,600 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from stock issued | 651 | 506 | |||||
Dividends to shareholders | (7,072 | ) | (10,107 | ) | |||
Change in restricted cash | 1 | 3 | |||||
Net cash used in financing activities | (6,420 | ) | (9,598 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 691 | 759 | |||||
Net increase (decrease) in cash and cash equivalents | 12,012 | 5,662 | |||||
Cash and cash equivalents, beginning of period | 34,478 | 45,080 | |||||
Cash and cash equivalents, end of period | $ | 46,490 | $ | 50,742 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid: | |||||||
Income taxes | $ | 13,440 | $ | 14,323 | |||
Supplemental disclosure of noncash transactions: | |||||||
Common stock issued for shared distribution through accrued expenses and other liabilities | $ | 3,486 | $ | 4,407 | |||
Common stock issued for deferred director’s compensation through other noncurrent liabilities | $ | 294 | $ | 930 |