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)) |
10.1 | Amendment to the IPG Photonics Corporation 2006 Incentive Compensation Plan, as amended | ||
99.1 | Press Release issued by IPG Photonics Corporation on October 27, 2015 |
IPG PHOTONICS CORPORATION | ||||
October 27, 2015 | By: | /s/ Timothy P.V. Mammen | ||
Timothy P.V. Mammen | ||||
Senior Vice President and Chief Financial Officer |
EXHIBIT NUMBER | DESCRIPTION | ||
10.1 | Amendment to the IPG Photonics Corporation 2006 Incentive Compensation Plan, as amended | ||
99.1 | Press Release issued by IPG Photonics Corporation on October 27, 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 September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
(In millions, except per share data) | 2015 | 2014 | % Change | 2015 | 2014 | % Change | ||||||||||||||||
Revenue | $ | 243.5 | $ | 199.7 | 22 | % | $ | 677.6 | $ | 562.4 | 20 | % | ||||||||||
Gross margin | 54.7 | % | 54.6 | % | 54.6 | % | 53.8 | % | ||||||||||||||
Operating income | $ | 89.6 | $ | 77.6 | 15 | % | $ | 259.0 | $ | 204.1 | 27 | % | ||||||||||
Operating margin | 36.8 | % | 38.9 | % | 38.2 | % | 36.3 | % | ||||||||||||||
Net income attributable to IPG Photonics Corporation | $ | 62.8 | $ | 55.2 | 14 | % | $ | 181.5 | $ | 144.0 | 26 | % | ||||||||||
Earnings per diluted share | $ | 1.18 | $ | 1.05 | 12 | % | $ | 3.40 | $ | 2.73 | 25 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(in thousands, except per share data) | ||||||||||||||||
NET SALES | $ | 243,541 | $ | 199,651 | $ | 677,639 | $ | 562,430 | ||||||||
COST OF SALES | 110,237 | 90,561 | 307,805 | 259,829 | ||||||||||||
GROSS PROFIT | 133,304 | 109,090 | 369,834 | 302,601 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Sales and marketing | 7,717 | 7,496 | 23,228 | 22,708 | ||||||||||||
Research and development | 16,221 | 13,447 | 45,565 | 39,593 | ||||||||||||
General and administrative | 14,679 | 14,172 | 42,474 | 40,212 | ||||||||||||
Loss (gain) on foreign exchange | 5,125 | (3,614 | ) | (460 | ) | (4,039 | ) | |||||||||
Total operating expenses | 43,742 | 31,501 | 110,807 | 98,474 | ||||||||||||
OPERATING INCOME | 89,562 | 77,589 | 259,027 | 204,127 | ||||||||||||
OTHER INCOME (EXPENSE), Net: | ||||||||||||||||
Interest expense, net | (40 | ) | (4 | ) | (335 | ) | (143 | ) | ||||||||
Other income, net | 132 | 162 | 378 | 735 | ||||||||||||
Total other income (expense) | 92 | 158 | 43 | 592 | ||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 89,654 | 77,747 | 259,070 | 204,719 | ||||||||||||
PROVISION FOR INCOME TAXES | (26,897 | ) | (22,547 | ) | (77,721 | ) | (60,705 | ) | ||||||||
NET INCOME | 62,757 | 55,200 | 181,349 | 144,014 | ||||||||||||
LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (34 | ) | — | (101 | ) | — | ||||||||||
NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION | $ | 62,791 | $ | 55,200 | $ | 181,450 | $ | 144,014 | ||||||||
NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION PER SHARE: | ||||||||||||||||
Basic | $ | 1.19 | $ | 1.06 | $ | 3.45 | $ | 2.77 | ||||||||
Diluted | $ | 1.18 | $ | 1.05 | $ | 3.40 | $ | 2.73 | ||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||||||||||||||||
Basic | 52,675 | 52,088 | 52,628 | 52,060 | ||||||||||||
Diluted | 53,392 | 52,792 | 53,390 | 52,780 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Cost of sales | $ | 1,404 | $ | 1,091 | $ | 3,919 | $ | 3,022 | ||||||||
Sales and marketing | 522 | 318 | 1,466 | 1,125 | ||||||||||||
Research and development | 1,077 | 803 | 2,940 | 2,229 | ||||||||||||
General and administrative | 2,010 | 1,683 | 5,550 | 4,691 | ||||||||||||
Total stock-based compensation | 5,013 | 3,895 | 13,875 | 11,067 | ||||||||||||
Tax benefit recognized | (1,542 | ) | (1,265 | ) | (4,450 | ) | (3,560 | ) | ||||||||
Net stock-based compensation | $ | 3,471 | $ | 2,630 | $ | 9,425 | $ | 7,507 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Cost of sales | ||||||||||||||||
Amortization of intangible assets (1) | 387 | 157 | 1,033 | 469 | ||||||||||||
Total acquisition related costs | $ | 387 | $ | 157 | $ | 1,033 | $ | 469 |
September 30, | December 31, | |||||||
2015 | 2014 | |||||||
(In thousands, except share and per share data) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 651,220 | $ | 522,150 | ||||
Accounts receivable, net | 154,814 | 143,109 | ||||||
Inventories | 197,635 | 171,009 | ||||||
Prepaid income taxes | 32,571 | 20,967 | ||||||
Prepaid expenses and other current assets | 23,221 | 21,295 | ||||||
Deferred income taxes, net | 18,611 | 15,308 | ||||||
Total current assets | 1,078,072 | 893,838 | ||||||
DEFERRED INCOME TAXES, NET | 9,237 | 5,438 | ||||||
GOODWILL | 508 | 455 | ||||||
INTANGIBLE ASSETS, NET | 12,744 | 9,227 | ||||||
PROPERTY, PLANT AND EQUIPMENT, NET | 286,514 | 275,082 | ||||||
OTHER ASSETS | 21,131 | 26,847 | ||||||
TOTAL | $ | 1,408,206 | $ | 1,210,887 | ||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Revolving line-of-credit facilities | $ | 248 | $ | 2,631 | ||||
Current portion of long-term debt | 2,000 | 13,333 | ||||||
Accounts payable | 20,862 | 17,141 | ||||||
Accrued expenses and other liabilities | 76,913 | 64,057 | ||||||
Deferred income taxes, net | 8,336 | 3,241 | ||||||
Income taxes payable | 45,084 | 21,672 | ||||||
Total current liabilities | 153,443 | 122,075 | ||||||
DEFERRED INCOME TAXES AND OTHER LONG-TERM LIABILITIES | 20,710 | 22,584 | ||||||
LONG-TERM DEBT, NET OF CURRENT PORTION | 18,167 | 19,667 | ||||||
Total liabilities | 192,320 | 164,326 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
IPG PHOTONICS CORPORATION STOCKHOLDERS' EQUITY: | ||||||||
Common stock, $0.0001 par value, 175,000,000 shares authorized; 52,780,224 shares issued and outstanding at September 30, 2015; 52,369,688 shares issued and outstanding at December 31, 2014 | 5 | 5 | ||||||
Additional paid-in capital | 597,803 | 567,617 | ||||||
Retained earnings | 772,652 | 591,202 | ||||||
Accumulated other comprehensive loss | (155,802 | ) | (112,263 | ) | ||||
Total IPG Photonics Corporation stockholders' equity | 1,214,658 | 1,046,561 | ||||||
NONCONTROLLING INTERESTS | 1,228 | — | ||||||
Total equity | $ | 1,215,886 | $ | 1,046,561 | ||||
TOTAL | $ | 1,408,206 | $ | 1,210,887 |
Nine Months Ended September 30, | ||||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 181,349 | $ | 144,014 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 31,079 | 26,409 | ||||||
Provisions for inventory, warranty & bad debt | 29,414 | 19,906 | ||||||
Other | 3,029 | 1,030 | ||||||
Changes in assets and liabilities that used cash: | ||||||||
Accounts receivable/payable | (15,485 | ) | (36,602 | ) | ||||
Inventories | (52,172 | ) | (30,220 | ) | ||||
Other | 17,397 | (450 | ) | |||||
Net cash provided by operating activities | 194,611 | 124,087 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchases of property, plant and equipment and intangible assets | (50,759 | ) | (72,723 | ) | ||||
Purchase of intangible assets | — | (2,000 | ) | |||||
Proceeds from sales of property, plant and equipment | 231 | 418 | ||||||
Acquisition of businesses, net of cash acquired | (4,958 | ) | — | |||||
Other | 63 | 66 | ||||||
Net cash used in investing activities | (55,423 | ) | (74,239 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Line-of-credit facilities | (2,274 | ) | (785 | ) | ||||
Principal payments on long-term borrowings | (12,833 | ) | (1,000 | ) | ||||
Exercise of employee stock options and issuances under employee stock purchase plan | 10,489 | 3,730 | ||||||
Tax benefits from exercise of employee stock options | 5,822 | 2,696 | ||||||
Net cash provided by financing activities | 1,204 | 4,641 | ||||||
EFFECT OF CHANGES IN EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | (11,322 | ) | (15,747 | ) | ||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 129,070 | 38,742 | ||||||
CASH AND CASH EQUIVALENTS — Beginning of period | 522,150 | 448,776 | ||||||
CASH AND CASH EQUIVALENTS — End of period | $ | 651,220 | $ | 487,518 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
Cash paid for interest | $ | 688 | $ | 302 | ||||
Cash paid for income taxes | $ | 65,376 | $ | 56,730 |