Delaware (State or Other Jurisdiction of Incorporation) | 001-33155 (Commission File No.) | 04-3444218 (IRS Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1 | Press Release issued by IPG Photonics Corporation on November 1, 2013 |
IPG PHOTONICS CORPORATION | ||||
November 1, 2013 | By: | /s/ Timothy P.V. Mammen | ||
Timothy P.V. Mammen | ||||
Senior Vice President and Chief Financial Officer |
EXHIBIT NUMBER | DESCRIPTION | ||
99.1 | Press Release issued by IPG Photonics Corporation on November 1, 2013 |
CONTACT: | Tim Mammen | David Calusdian | ||||
Chief Financial Officer | Executive Vice President | |||||
IPG Photonics Corporation | Sharon Merrill | |||||
(508) 373-1100 | (617) 542-5300 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
(In millions, except per share data) | 2013 | 2012 | % Change | 2013 | 2012 | % Change | ||||||||||||||||
Revenue | $ | 172.2 | $ | 156.4 | 10 | % | $ | 482.2 | $ | 417.5 | 15 | % | ||||||||||
Gross margin | 53.9 | % | 55.0 | % | 53.6 | % | 55.0 | % | ||||||||||||||
Operating income | $ | 59.8 | $ | 60.0 | — | % | $ | 169.3 | $ | 161.6 | 5 | % | ||||||||||
Operating margin | 34.7 | % | 38.4 | % | 35.1 | % | 38.7 | % | ||||||||||||||
Net income attributable to IPG Photonics Corporation | $ | 42.3 | $ | 42.4 | — | % | $ | 119.2 | $ | 110.1 | 8 | % | ||||||||||
Earnings per diluted share | $ | 0.81 | $ | 0.81 | — | % | $ | 2.28 | $ | 2.16 | 6 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in thousands, except per share data) | ||||||||||||||||
NET SALES | $ | 172,152 | $ | 156,379 | $ | 482,175 | $ | 417,498 | ||||||||
COST OF SALES | 79,339 | 70,420 | 223,799 | 187,945 | ||||||||||||
GROSS PROFIT | 92,813 | 85,959 | 258,376 | 229,553 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Sales and marketing | 6,801 | 5,785 | 19,514 | 16,771 | ||||||||||||
Research and development | 11,501 | 7,762 | 30,782 | 22,131 | ||||||||||||
General and administrative | 13,175 | 10,609 | 37,814 | 29,294 | ||||||||||||
Loss (gain) on foreign exchange | 1,563 | 1,796 | 972 | (272 | ) | |||||||||||
Total operating expenses | 33,040 | 25,952 | 89,082 | 67,924 | ||||||||||||
OPERATING INCOME | 59,773 | 60,007 | 169,294 | 161,629 | ||||||||||||
OTHER INCOME (EXPENSE), NET: | ||||||||||||||||
Interest income (expense), net | 63 | 55 | (25 | ) | 541 | |||||||||||
Other income (expense), net | 218 | 205 | 49 | (981 | ) | |||||||||||
Total other income (expense) | 281 | 260 | 24 | (440 | ) | |||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 60,054 | 60,267 | 169,318 | 161,189 | ||||||||||||
PROVISION FOR INCOME TAXES | (17,716 | ) | (17,832 | ) | (50,133 | ) | (48,357 | ) | ||||||||
NET INCOME | 42,338 | 42,435 | 119,185 | 112,832 | ||||||||||||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | — | — | — | 2,740 | ||||||||||||
NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION | $ | 42,338 | $ | 42,435 | $ | 119,185 | $ | 110,092 | ||||||||
NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION PER SHARE: | ||||||||||||||||
Basic | $ | 0.82 | $ | 0.83 | $ | 2.32 | $ | 2.20 | ||||||||
Diluted | $ | 0.81 | $ | 0.81 | $ | 2.28 | $ | 2.16 | ||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||||||||||||||||
Basic | 51,495 | 51,090 | 51,474 | 50,204 | ||||||||||||
Diluted | 52,367 | 52,102 | 52,346 | 51,281 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Cost of sales | $ | 842 | $ | 563 | $ | 2,324 | $ | 1,590 | ||||||||
Sales and marketing | 327 | 289 | 928 | 827 | ||||||||||||
Research and development | 512 | 334 | 1,377 | 976 | ||||||||||||
General and administrative | 1,450 | 973 | 3,975 | 2,965 | ||||||||||||
Total stock-based compensation | 3,131 | 2,159 | 8,604 | 6,358 | ||||||||||||
Tax benefit recognized | (996 | ) | (655 | ) | (2,772 | ) | (1,938 | ) | ||||||||
Net stock-based compensation | $ | 2,135 | $ | 1,504 | $ | 5,832 | $ | 4,420 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Cost of sales | ||||||||||||||||
Step-up of inventory (1) | $ | 456 | $ | — | $ | 1,318 | $ | — | ||||||||
Amortization of intangible assets (2) | 179 | 360 | 541 | 1,024 | ||||||||||||
Total acquisition related costs | $ | 635 | $ | 360 | $ | 1,859 | $ | 1,024 |
(1) | Amount relates to Microsystems step-up adjustment on inventory sold during the period |
(2) | Amount relates to intangible amortization expense during periods presented including amortization of acquired patents |
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
(In thousands, except share and per share data) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 398,355 | $ | 384,053 | ||||
Accounts receivable, net | 120,640 | 96,630 | ||||||
Inventories | 171,268 | 139,618 | ||||||
Prepaid income taxes and income taxes receivable | 17,326 | 13,071 | ||||||
Prepaid expenses and other current assets | 30,072 | 18,639 | ||||||
Deferred income taxes, net | 11,547 | 12,948 | ||||||
Total current assets | 749,208 | 664,959 | ||||||
DEFERRED INCOME TAXES, NET | 6,100 | 2,107 | ||||||
GOODWILL | 455 | 2,898 | ||||||
INTANGIBLE ASSETS, NET | 10,131 | 7,510 | ||||||
PROPERTY, PLANT AND EQUIPMENT, NET | 236,507 | 210,563 | ||||||
OTHER ASSETS | 7,395 | 7,461 | ||||||
TOTAL | $ | 1,009,796 | $ | 895,498 | ||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Revolving line-of-credit facilities | $ | 1,547 | $ | 2,442 | ||||
Current portion of long-term debt | 1,333 | 1,505 | ||||||
Accounts payable | 14,293 | 17,783 | ||||||
Accrued expenses and other liabilities | 59,553 | 51,451 | ||||||
Deferred income taxes, net | 2,050 | 9,831 | ||||||
Income taxes payable | 27,031 | 42,443 | ||||||
Total current liabilities | 105,807 | 125,455 | ||||||
DEFERRED INCOME TAXES AND OTHER LONG-TERM LIABILITIES | 16,635 | 13,102 | ||||||
LONG-TERM DEBT, NET OF CURRENT PORTION | 11,667 | 14,014 | ||||||
Total liabilities | 134,109 | 152,571 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
IPG PHOTONICS CORPORATION STOCKHOLDERS’ EQUITY: | ||||||||
Common stock, $0.0001 par value, 175,000,000 shares authorized; 51,604,568 shares issued and outstanding at September 30, 2013; 51,359,247 shares issued and outstanding at December 31, 2012 | 5 | 5 | ||||||
Additional paid-in capital | 526,481 | 511,039 | ||||||
Retained earnings | 354,162 | 234,977 | ||||||
Accumulated other comprehensive loss | (4,961 | ) | (3,094 | ) | ||||
Total IPG Photonics Corporation stockholders’ equity | 875,687 | 742,927 | ||||||
TOTAL | $ | 1,009,796 | $ | 895,498 |
Nine Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 119,185 | $ | 112,832 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 23,414 | 19,168 | ||||||
Provisions for inventory, warranty & bad debt | 18,203 | 14,762 | ||||||
Other | 2,354 | 10,585 | ||||||
Changes in assets and liabilities that (used) provided cash: | ||||||||
Accounts receivable/payable | (28,950 | ) | (34,344 | ) | ||||
Inventories | (43,705 | ) | (17,050 | ) | ||||
Other | (29,540 | ) | 10,552 | |||||
Net cash provided by operating activities | 60,961 | 116,505 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchases of property, plant and equipment | (48,333 | ) | (51,715 | ) | ||||
Proceeds from sales of property, plant and equipment | 202 | — | ||||||
Proceeds from short-term investments | — | 25,452 | ||||||
Acquisition of businesses | (5,555 | ) | (11,596 | ) | ||||
Other | 442 | (313 | ) | |||||
Net cash used in investing activities | (53,244 | ) | (38,172 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Line-of-credit facilities | (895 | ) | (1,958 | ) | ||||
Principal payments on long-term borrowings | (2,519 | ) | (1,848 | ) | ||||
Purchase of noncontrolling interests | — | (700 | ) | |||||
Purchase of redeemable noncontrolling interests | — | (55,400 | ) | |||||
Tax benefits from exercise of employee stock options | 3,610 | 3,870 | ||||||
Exercise of employee stock options and issuances under employee stock purchase plan | 3,228 | 4,275 | ||||||
Proceeds from follow-on public offering, net of offering expenses | — | 167,963 | ||||||
Net cash provided by financing activities | 3,424 | 116,202 | ||||||
EFFECT OF CHANGES IN EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | 3,161 | (2,200 | ) | |||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 14,302 | 192,335 | ||||||
CASH AND CASH EQUIVALENTS — Beginning of period | 384,053 | 180,234 | ||||||
CASH AND CASH EQUIVALENTS — End of period | $ | 398,355 | $ | 372,569 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
Cash paid for interest | $ | 190 | $ | 553 | ||||
Cash paid for income taxes | $ | 74,107 | $ | 20,967 |