Delaware (State or Other Jurisdiction of Incorporation) | 001-33155 (Commission File No.) | 04-3444218 (IRS Employer Identification No.) |
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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 July 28, 2015 |
IPG PHOTONICS CORPORATION | ||||
July 28, 2015 | 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 July 28, 2015 |
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 June 30, | Six Months Ended June 30, | |||||||||||||||||||||
(In millions, except per share data) | 2015 | 2014 | % Change | 2015 | 2014 | % Change | ||||||||||||||||
Revenue | $ | 235.1 | $ | 192.2 | 22 | % | $ | 434.1 | $ | 362.8 | 20 | % | ||||||||||
Gross margin | 54.7 | % | 54.2 | % | 54.5 | % | 53.3 | % | ||||||||||||||
Operating income | $ | 87.4 | $ | 68.7 | 27 | % | $ | 169.5 | $ | 126.5 | 34 | % | ||||||||||
Operating margin | 37.2 | % | 35.8 | % | 39.0 | % | 34.9 | % | ||||||||||||||
Net income attributable to IPG Photonics Corporation | $ | 61.3 | $ | 48.3 | 27 | % | $ | 118.7 | $ | 88.8 | 34 | % | ||||||||||
Earnings per diluted share | $ | 1.15 | $ | 0.92 | 25 | % | $ | 2.22 | $ | 1.68 | 32 | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(in thousands, except per share data) | ||||||||||||||||
NET SALES | $ | 235,138 | $ | 192,204 | $ | 434,098 | $ | 362,779 | ||||||||
COST OF SALES | 106,435 | 87,977 | 197,568 | 169,268 | ||||||||||||
GROSS PROFIT | 128,703 | 104,227 | 236,530 | 193,511 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Sales and marketing | 7,962 | 8,047 | 15,511 | 15,212 | ||||||||||||
Research and development | 15,114 | 13,362 | 29,344 | 26,146 | ||||||||||||
General and administrative | 15,017 | 13,124 | 27,795 | 26,040 | ||||||||||||
Loss (gain) on foreign exchange | 3,167 | 945 | (5,585 | ) | (425 | ) | ||||||||||
Total operating expenses | 41,260 | 35,478 | 67,065 | 66,973 | ||||||||||||
OPERATING INCOME | 87,443 | 68,749 | 169,465 | 126,538 | ||||||||||||
OTHER INCOME (EXPENSE), Net: | ||||||||||||||||
Interest expense, net | (112 | ) | — | (296 | ) | (139 | ) | |||||||||
Other income, net | 161 | 239 | 246 | 573 | ||||||||||||
Total other income (expense) | 49 | 239 | (50 | ) | 434 | |||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 87,492 | 68,988 | 169,415 | 126,972 | ||||||||||||
PROVISION FOR INCOME TAXES | (26,249 | ) | (20,705 | ) | (50,825 | ) | (38,158 | ) | ||||||||
NET INCOME | 61,248 | 48,283 | 118,590 | 88,814 | ||||||||||||
LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (55 | ) | — | (68 | ) | — | ||||||||||
NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION | $ | 61,299 | $ | 48,283 | $ | 118,658 | $ | 88,814 | ||||||||
NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION PER SHARE: | ||||||||||||||||
Basic | $ | 1.16 | $ | 0.93 | $ | 2.26 | $ | 1.71 | ||||||||
Diluted | $ | 1.15 | $ | 0.92 | $ | 2.22 | $ | 1.68 | ||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||||||||||||||||
Basic | 52,657 | 52,068 | 52,572 | 52,019 | ||||||||||||
Diluted | 53,442 | 52,769 | 53,355 | 52,747 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Cost of sales | $ | 1,359 | $ | 1,041 | $ | 2,515 | $ | 1,931 | ||||||||
Sales and marketing | 509 | 434 | 944 | 807 | ||||||||||||
Research and development | 993 | 772 | 1,863 | 1,426 | ||||||||||||
General and administrative | 1,874 | 1,658 | 3,540 | 3,008 | ||||||||||||
Total stock-based compensation | 4,735 | 3,905 | 8,862 | 7,172 | ||||||||||||
Tax benefit recognized | (1,565 | ) | (1,250 | ) | (2,908 | ) | (2,295 | ) | ||||||||
Net stock-based compensation | $ | 3,170 | $ | 2,655 | $ | 5,954 | $ | 4,877 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Cost of sales | ||||||||||||||||
Amortization of intangible assets (1) | 410 | 156 | 645 | 312 | ||||||||||||
Total acquisition related costs | $ | 410 | $ | 156 | $ | 645 | $ | 312 |
June 30, | December 31, | |||||||
2015 | 2014 | |||||||
(In thousands, except share and per share data) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 571,508 | $ | 522,150 | ||||
Accounts receivable, net | 169,828 | 143,109 | ||||||
Inventories | 190,848 | 171,009 | ||||||
Prepaid income taxes | 27,822 | 20,967 | ||||||
Prepaid expenses and other current assets | 24,241 | 21,295 | ||||||
Deferred income taxes, net | 18,123 | 15,308 | ||||||
Total current assets | 1,002,370 | 893,838 | ||||||
DEFERRED INCOME TAXES, NET | 7,495 | 5,438 | ||||||
GOODWILL | 516 | 455 | ||||||
INTANGIBLE ASSETS, NET | 14,013 | 9,227 | ||||||
PROPERTY, PLANT AND EQUIPMENT, NET | 288,553 | 275,082 | ||||||
OTHER ASSETS | 21,594 | 26,847 | ||||||
TOTAL | $ | 1,334,541 | $ | 1,210,887 | ||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Revolving line-of-credit facilities | $ | 1,600 | $ | 2,631 | ||||
Current portion of long-term debt | 2,000 | 13,333 | ||||||
Accounts payable | 21,537 | 17,141 | ||||||
Accrued expenses and other liabilities | 68,274 | 64,057 | ||||||
Deferred income taxes, net | 3,670 | 3,241 | ||||||
Income taxes payable | 28,690 | 21,672 | ||||||
Total current liabilities | 125,771 | 122,075 | ||||||
DEFERRED INCOME TAXES AND OTHER LONG-TERM LIABILITIES | 26,348 | 22,584 | ||||||
LONG-TERM DEBT, NET OF CURRENT PORTION | 18,667 | 19,667 | ||||||
Total liabilities | 170,786 | 164,326 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
IPG PHOTONICS CORPORATION STOCKHOLDERS' EQUITY: | ||||||||
Common stock, $0.0001 par value, 175,000,000 shares authorized; 52,721,014 shares issued and outstanding at June 30, 2015; 52,369,688 shares issued and outstanding at December 31, 2014 | 5 | 5 | ||||||
Additional paid-in capital | 591,718 | 567,617 | ||||||
Retained earnings | 709,860 | 591,202 | ||||||
Accumulated other comprehensive loss | (139,262 | ) | (112,263 | ) | ||||
Total IPG Photonics Corporation stockholders' equity | 1,162,321 | 1,046,561 | ||||||
NONCONTROLLING INTERESTS | 1,434 | — | ||||||
Total equity | $ | 1,163,755 | $ | 1,046,561 | ||||
TOTAL | $ | 1,334,541 | $ | 1,210,887 |
Six Months Ended June 30, | ||||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 118,590 | $ | 88,814 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 20,176 | 17,088 | ||||||
Provisions for inventory, warranty & bad debt | 18,804 | 12,207 | ||||||
Other | 3,427 | 389 | ||||||
Changes in assets and liabilities that used cash: | ||||||||
Accounts receivable/payable | (27,326 | ) | (23,404 | ) | ||||
Inventories | (33,211 | ) | (14,988 | ) | ||||
Other | 950 | (3,231 | ) | |||||
Net cash provided by operating activities | 101,410 | 76,875 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchases of property, plant and equipment and intangible assets | (32,606 | ) | (45,781 | ) | ||||
Proceeds from sales of property, plant and equipment | 139 | 254 | ||||||
Acquisition of businesses, net of cash acquired | (4,958 | ) | — | |||||
Other | 86 | 42 | ||||||
Net cash used in investing activities | (37,339 | ) | (45,485 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Line-of-credit facilities | (777 | ) | (535 | ) | ||||
Principal payments on long-term borrowings | (12,333 | ) | (667 | ) | ||||
Tax benefits from exercise of employee stock options | 5,665 | 2,426 | ||||||
Exercise of employee stock options and issuances under employee stock purchase plan | 9,574 | 3,379 | ||||||
Net cash provided by financing activities | 2,129 | 4,603 | ||||||
EFFECT OF CHANGES IN EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | (16,842 | ) | (1,337 | ) | ||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 49,358 | 34,656 | ||||||
CASH AND CASH EQUIVALENTS — Beginning of period | 522,150 | 448,776 | ||||||
CASH AND CASH EQUIVALENTS — End of period | $ | 571,508 | $ | 483,432 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
Cash paid for interest | $ | 533 | $ | 223 | ||||
Cash paid for income taxes | $ | 44,728 | $ | 41,525 |