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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 August 4, 2014. |
SUN HYDRAULICS CORPORATION | ||
By: | /s/ Tricia L. Fulton | |
Tricia L. Fulton | ||
Chief Financial Officer (Principal Financial and Accounting Officer) |
June 28, 2014 | June 29, 2013 | Increase | ||||||||
Three Months Ended | ||||||||||
Net sales | $ | 61.1 | $ | 55.8 | 9 | % | ||||
Net income | $ | 12.2 | $ | 11.8 | 3 | % | ||||
Net income per share: | ||||||||||
Basic | $ | 0.46 | $ | 0.45 | 2 | % | ||||
Diluted | $ | 0.46 | $ | 0.45 | 2 | % | ||||
Six Months Ended | ||||||||||
Net sales | $ | 117.9 | $ | 106.8 | 10 | % | ||||
Net income | $ | 23.6 | $ | 21.4 | 10 | % | ||||
Net income per share: | ||||||||||
Basic | $ | 0.89 | $ | 0.82 | 9 | % | ||||
Diluted | $ | 0.89 | $ | 0.82 | 9 | % |
Three months ended | |||||||
June 28, 2014 | June 29, 2013 | ||||||
(unaudited) | (unaudited) | ||||||
Net sales | $ | 61,050 | $ | 55,788 | |||
Cost of sales | 35,294 | 32,387 | |||||
Gross profit | 25,756 | 23,401 | |||||
Selling, engineering and administrative expenses | 7,379 | 6,640 | |||||
Operating income | 18,377 | 16,761 | |||||
Interest (income) expense, net | (284 | ) | (242 | ) | |||
Foreign currency transaction (gain) loss, net | (37 | ) | (29 | ) | |||
Miscellaneous (income) expense, net | 274 | (484 | ) | ||||
Income before income taxes | 18,424 | 17,516 | |||||
Income tax provision | 6,238 | 5,726 | |||||
Net income | $ | 12,186 | $ | 11,790 | |||
Basic net income per common share | $ | 0.46 | $ | 0.45 | |||
Weighted average basic shares outstanding | 26,444 | 26,236 | |||||
Diluted net income per common share | $ | 0.46 | $ | 0.45 | |||
Weighted average diluted shares outstanding | 26,444 | 26,236 | |||||
Dividends declared per share | $ | 0.090 | $ | 0.090 |
Six months ended | |||||||
June 28, 2014 | June 29, 2013 | ||||||
(unaudited) | (unaudited) | ||||||
Net sales | $ | 117,859 | $ | 106,848 | |||
Cost of sales | 68,036 | 62,943 | |||||
Gross profit | 49,823 | 43,905 | |||||
Selling, engineering and administrative expenses | 14,720 | 13,212 | |||||
Operating income | 35,103 | 30,693 | |||||
Interest income, net | (596 | ) | (438 | ) | |||
Foreign currency transaction gain, net | (30 | ) | (149 | ) | |||
Miscellaneous (income) expense, net | 358 | (390 | ) | ||||
Income before income taxes | 35,371 | 31,670 | |||||
Income tax provision | 11,800 | 10,305 | |||||
Net income | $ | 23,571 | $ | 21,365 | |||
Basic net income per common share | $ | 0.89 | $ | 0.82 | |||
Weighted average basic shares outstanding | 26,409 | 26,185 | |||||
Diluted net income per common share | $ | 0.89 | $ | 0.82 | |||
Weighted average diluted shares outstanding | 26,409 | 26,185 | |||||
Dividends declared per share | $ | 0.27 | $ | 0.27 |
June 28, 2014 | December 28, 2013 | ||||||
(unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 72,139 | $ | 54,912 | |||
Restricted cash | 354 | 334 | |||||
Accounts receivable, net of allowance for doubtful accounts of $117 and $117 | 22,666 | 16,984 | |||||
Inventories | 14,709 | 13,853 | |||||
Income taxes receivable | — | 954 | |||||
Deferred income taxes | 486 | 474 | |||||
Short-term investments | 38,501 | 38,729 | |||||
Other current assets | 4,417 | 2,816 | |||||
Total current assets | 153,272 | 129,056 | |||||
Property, plant and equipment, net | 77,424 | 75,731 | |||||
Goodwill | 5,329 | 5,221 | |||||
Other assets | 3,218 | 3,470 | |||||
Total assets | $ | 239,243 | $ | 213,478 | |||
Liabilities and shareholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 5,976 | $ | 4,630 | |||
Accrued expenses and other liabilities | 6,542 | 7,016 | |||||
Income taxes payable | 21 | — | |||||
Dividends payable | 2,380 | 2,372 | |||||
Total current liabilities | 14,919 | 14,018 | |||||
Deferred income taxes | 7,809 | 7,747 | |||||
Other noncurrent liabilities | 302 | 285 | |||||
Total liabilities | 23,030 | 22,050 | |||||
Commitments and contingencies | — | — | |||||
Shareholders’ equity: | |||||||
Preferred stock, 2,000,000 shares authorized, par value $0.001, no shares outstanding | — | — | |||||
Common stock, 50,000,000 shares authorized, par value $0.001, 26,448,374 and 26,352,692 shares outstanding | 26 | 26 | |||||
Capital in excess of par value | 70,879 | 65,391 | |||||
Retained earnings | 139,854 | 123,420 | |||||
Accumulated other comprehensive income (loss) | 5,454 | 2,591 | |||||
Total shareholders’ equity | 216,213 | 191,428 | |||||
Total liabilities and shareholders’ equity | $ | 239,243 | $ | 213,478 |
Six months ended | |||||||
June 28, 2014 | June 29, 2013 | ||||||
(unaudited) | (unaudited) | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 23,571 | $ | 21,365 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 4,212 | 3,565 | |||||
(Gain)Loss on disposal of assets | 134 | 15 | |||||
Gain on investment in business | — | (528 | ) | ||||
Provision for deferred income taxes | 50 | (14 | ) | ||||
Allowance for doubtful accounts | — | (29 | ) | ||||
Stock-based compensation expense | 1,853 | 1,416 | |||||
(Increase) decrease in, net of assets acquired: | |||||||
Accounts receivable | (5,682 | ) | (6,740 | ) | |||
Inventories | (856 | ) | 186 | ||||
Income taxes receivable | 954 | 728 | |||||
Other current assets | (1,601 | ) | (677 | ) | |||
Other assets | (99 | ) | 258 | ||||
Increase (decrease) in, net of liabilities assumed: | |||||||
Accounts payable | 1,346 | 864 | |||||
Accrued expenses and other liabilities | 2,752 | 1,617 | |||||
Income taxes payable | 21 | 1,430 | |||||
Other noncurrent liabilities | 17 | (1 | ) | ||||
Net cash provided by operating activities | 26,672 | 23,455 | |||||
Cash flows from investing activities: | |||||||
Investment in business, net of cash acquired | — | (923 | ) | ||||
Capital expenditures | (5,057 | ) | (9,518 | ) | |||
Purchases of short-term investments | (18,990 | ) | (11,888 | ) | |||
Proceeds from sale of short-term investments | 19,149 | 11,744 | |||||
Net cash used in investing activities | (4,898 | ) | (10,585 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from stock issued | 409 | 466 | |||||
Dividends to shareholders | (7,129 | ) | (4,710 | ) | |||
Change in restricted cash | (20 | ) | 21 | ||||
Net cash used in financing activities | (6,740 | ) | (4,223 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 2,193 | (1,439 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 17,227 | 7,208 | |||||
Cash and cash equivalents, beginning of period | 54,912 | 34,478 | |||||
Cash and cash equivalents, end of period | $ | 72,139 | $ | 41,686 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid: | |||||||
Income taxes | $ | 10,775 | $ | 8,161 | |||
Supplemental disclosure of noncash transactions: | |||||||
Common stock issued for shared distribution through accrued expenses and other liabilities | $ | 3,226 | $ | 3,486 | |||
Common stock issued for deferred director’s compensation through other noncurrent liabilities | $ | — | $ | 294 |