FORM 8-K
|
Delaware
|
000-13059
|
33-0055414
|
||
(State or other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
3169 Red Hill Avenue, Costa Mesa, CA
|
92626
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
(d) Exhibits.
|
||
Exhibit Number
|
Description
|
|
99.1
|
Press release of Ceradyne, Inc. dated October 25, 2011.
|
|
SIGNATURES
|
CERADYNE, INC.
|
||
October 25, 2011
|
By:
|
/s/ Jerrold J. Pellizzon
|
Jerrold J. Pellizzon
|
||
Chief Financial Officer and Secretary
|
Exhibit Number
|
Description
|
|
99.1
|
Press release of Ceradyne, Inc. dated October 25, 2011.
|
Jerrold J. Pellizzon
|
Phil Bourdillon/Gene Heller
|
|
Chief Financial Officer
|
Silverman Heller Associates
|
|
(714) 549-0421
|
(310) 208-2550
|
CERADYNE, INC. REPORTS THIRD QUARTER, NINE-MONTH
|
2011 FINANCIAL RESULTS
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
NET SALES
|
$ | 147,974 | $ | 91,766 | $ | 443,452 | $ | 302,219 | ||||||||
COST OF GOODS SOLD
|
94,248 | 68,150 | 278,679 | 227,392 | ||||||||||||
Gross profit
|
53,726 | 23,616 | 164,773 | 74,827 | ||||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Selling, general and administrative
|
19,251 | 14,418 | 57,545 | 43,947 | ||||||||||||
Acquisition related charge (credit)
|
702 | 31 | 2,124 | (88 | ) | |||||||||||
Research and development
|
2,974 | 2,613 | 9,255 | 8,731 | ||||||||||||
Restructuring - plant closure and severance
|
- | - | - | 7 | ||||||||||||
22,927 | 17,062 | 68,924 | 52,597 | |||||||||||||
INCOME FROM OPERATIONS
|
30,799 | 6,554 | 95,849 | 22,230 | ||||||||||||
OTHER INCOME (EXPENSE):
|
||||||||||||||||
Interest income
|
1,069 | 935 | 2,744 | 2,562 | ||||||||||||
Interest expense
|
(1,721 | ) | (1,518 | ) | (4,838 | ) | (4,713 | ) | ||||||||
Gain (loss) on auction rate securities
|
- | - | - | (978 | ) | |||||||||||
Miscellaneous
|
1,081 | (917 | ) | 1,671 | 493 | |||||||||||
429 | (1,500 | ) | (423 | ) | (2,636 | ) | ||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES
|
31,228 | 5,054 | 95,426 | 19,594 | ||||||||||||
PROVISION FOR INCOME TAXES
|
10,819 | 517 | 32,291 | 3,504 | ||||||||||||
NET INCOME
|
$ | 20,409 | $ | 4,537 | $ | 63,135 | $ | 16,090 | ||||||||
BASIC INCOME PER SHARE
|
$ | 0.83 | $ | 0.18 | $ | 2.55 | $ | 0.64 | ||||||||
DILUTED INCOME PER SHARE
|
$ | 0.82 | $ | 0.18 | $ | 2.52 | $ | 0.63 | ||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING:
|
||||||||||||||||
BASIC
|
24,556 | 24,960 | 24,764 | 25,329 | ||||||||||||
DILUTED
|
24,811 | 25,141 | 25,029 | 25,506 |
September 30,
2011
|
December 31,
2010
|
|||||||
(Unaudited)
|
||||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents
|
$ | 31,541 | $ | 53,436 | ||||
Short-term investments
|
227,477 | 192,860 | ||||||
Accounts receivable, net of allowances of $2,408
|
||||||||
and $685 at September 30, 2011 and December 31, 2010, respectively
|
71,541 | 53,019 | ||||||
Other receivables
|
12,478 | 17,553 | ||||||
Inventories, net
|
110,473 | 94,258 | ||||||
Production tooling, net
|
22,486 | 10,037 | ||||||
Prepaid expenses and other
|
38,838 | 38,653 | ||||||
Deferred tax asset
|
8,636 | 6,808 | ||||||
TOTAL CURRENT ASSETS
|
523,470 | 466,624 | ||||||
PROPERTY, PLANT AND EQUIPMENT, net
|
246,826 | 243,681 | ||||||
LONG TERM INVESTMENTS
|
15,997 | 26,187 | ||||||
INTANGIBLE ASSETS, net
|
102,068 | 83,475 | ||||||
GOODWILL
|
51,019 | 43,219 | ||||||
OTHER ASSETS
|
2,118 | 2,127 | ||||||
TOTAL ASSETS
|
$ | 941,498 | $ | 865,313 | ||||
CURRENT LIABILITIES
|
||||||||
Accounts payable
|
$ | 30,281 | $ | 25,738 | ||||
Accrued expenses
|
31,958 | 24,603 | ||||||
Income taxes payable
|
5,297 | 1,869 | ||||||
TOTAL CURRENT LIABILITIES
|
67,536 | 52,210 | ||||||
LONG-TERM DEBT
|
88,341 | 85,599 | ||||||
EMPLOYEE BENEFITS
|
22,556 | 22,269 | ||||||
OTHER LONG TERM LIABILITY
|
57,589 | 41,902 | ||||||
DEFERRED TAX LIABILITY
|
11,164 | 11,124 | ||||||
TOTAL LIABILITIES
|
247,186 | 213,104 | ||||||
COMMITMENTS AND CONTINGENCIES (Note 13)
|
||||||||
SHAREHOLDERS’ EQUITY
|
||||||||
Common stock, $0.01 par value, 100,000,000 authorized, 24,163,124 and 24,713,126 shares issued and outstanding at September 30, 2011 and December 31, 2010, respectively
|
242 | 247 | ||||||
Additional paid-in capital
|
122,120 | 141,973 | ||||||
Retained earnings
|
562,667 | 499,532 | ||||||
Accumulated other comprehensive income
|
9,283 | 10,457 | ||||||
TOTAL SHAREHOLDERS’ EQUITY
|
694,312 | 652,209 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$ | 941,498 | $ | 865,313 |
Nine Months Ended
September 30,
|
||||||||
2011
|
2010
|
|||||||
(Unaudited)
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income
|
$ | 63,135 | $ | 16,090 | ||||
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
|
||||||||
Depreciation and amortization
|
29,438 | 26,979 | ||||||
Amortization of bond premium
|
827 | 273 | ||||||
Non cash interest expense on convertible debt
|
2,742 | 2,550 | ||||||
Deferred income taxes
|
556 | 1,376 | ||||||
Stock compensation
|
3,150 | 2,994 | ||||||
Loss on marketable securities
|
87 | 978 | ||||||
Loss on equipment disposal
|
245 | 510 | ||||||
Change in operating assets and liabilities (net of effect of businesses acquired):
|
||||||||
Accounts receivable, net
|
(15,813 | ) | 2,855 | |||||
Other receivables
|
5,535 | (5,534 | ) | |||||
Inventories, net
|
(13,329 | ) | 15,132 | |||||
Production tooling, net
|
(7,064 | ) | 506 | |||||
Prepaid expenses and other assets
|
(4,945 | ) | 483 | |||||
Accounts payable and accrued expenses
|
11,043 | 2,480 | ||||||
Income taxes payable
|
3,532 | (106 | ) | |||||
Other long term liability
|
3,353 | (1,063 | ) | |||||
Employee benefits
|
633 | 386 | ||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
83,125 | 66,889 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchases of property, plant and equipment
|
(23,833 | ) | (30,665 | ) | ||||
Changes in restricted cash
|
- | 3,130 | ||||||
Purchases of marketable securities
|
(78,607 | ) | (119,956 | ) | ||||
Proceeds from sales and maturities of marketable securities
|
47,757 | 4,489 | ||||||
Cash paid for acquisitions
|
(27,673 | ) | - | |||||
Proceeds from sale of equipment
|
1,440 | 465 | ||||||
NET CASH USED IN INVESTING ACTIVITIES:
|
(80,916 | ) | (142,537 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds from issuance of stock due to exercise of options
|
1,033 | 224 | ||||||
Excess tax benefit due to exercise of stock options
|
2,018 | 7 | ||||||
Shares repurchased
|
(25,775 | ) | (14,837 | ) | ||||
NET CASH (USED) IN FINANCING ACTIVITIES
|
(22,724 | ) | (14,606 | ) | ||||
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS
|
(1,380 | ) | 268 | |||||
DECREASE IN CASH AND CASH EQUIVALENTS
|
(21,895 | ) | (89,986 | ) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
53,436 | 122,154 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$ | 31,541 | $ | 32,168 |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Revenue from External Customers
|
||||||||||||||||
Advanced Ceramic Operations
|
$ | 74,041 | $ | 28,277 | $ | 217,308 | $ | 123,740 | ||||||||
ESK Ceramics
|
39,904 | 32,134 | 125,907 | 94,843 | ||||||||||||
Thermo Materials
|
24,229 | 26,458 | 84,635 | 69,818 | ||||||||||||
Boron
|
13,356 | 9,194 | 32,716 | 23,153 | ||||||||||||
Inter-segment elimination
|
(3,556 | ) | (4,297 | ) | (17,114 | ) | (9,335 | ) | ||||||||
Total
|
$ | 147,974 | $ | 91,766 | $ | 443,452 | $ | 302,219 | ||||||||
Depreciation and Amortization
|
||||||||||||||||
Advanced Ceramic Operations
|
$ | 2,364 | $ | 2,069 | $ | 7,749 | $ | 6,898 | ||||||||
ESK Ceramics
|
3,249 | 3,158 | 9,665 | 9,417 | ||||||||||||
Thermo Materials
|
2,078 | 1,522 | 5,853 | 4,559 | ||||||||||||
Boron
|
2,071 | 1,991 | 6,171 | 6,105 | ||||||||||||
Total
|
$ | 9,762 | $ | 8,740 | $ | 29,438 | $ | 26,979 | ||||||||
Segment Income (Loss) from Operations and Income Before Provision for Income Taxes
|
||||||||||||||||
Advanced Ceramic Operations
|
$ | 14,622 | $ | (9,311 | ) | $ | 45,677 | $ | (10,241 | ) | ||||||
ESK Ceramics
|
6,973 | 6,351 | 23,979 | 13,704 | ||||||||||||
Thermo Materials
|
5,966 | 8,938 | 22,886 | 21,925 | ||||||||||||
Boron
|
2,106 | 1,040 | 2,832 | (2,467 | ) | |||||||||||
Inter-segment elimination
|
1,132 | (464 | ) | 475 | (691 | ) | ||||||||||
Income from Operations
|
30,799 | 6,554 | 95,849 | 22,230 | ||||||||||||
Other Income (Expense)
|
429 | (1,500 | ) | (423 | ) | (2,636 | ) | |||||||||
Income before Provision for Income Taxes
|
$ | 31,228 | $ | 5,054 | $ | 95,426 | $ | 19,594 | ||||||||
Segment Assets
|
||||||||||||||||
Advanced Ceramic Operations
|
$ | 462,544 | $ | 400,008 | $ | 462,544 | $ | 400,008 | ||||||||
ESK Ceramics
|
178,058 | 185,682 | 178,058 | 185,682 | ||||||||||||
Thermo Materials
|
173,245 | 135,995 | 173,245 | 135,995 | ||||||||||||
Boron
|
127,651 | 128,130 | 127,651 | 128,130 | ||||||||||||
Total
|
$ | 941,498 | $ | 849,815 | $ | 941,498 | $ | 849,815 | ||||||||
Expenditures for Property, Plant & Equipment
|
||||||||||||||||
Advanced Ceramic Operations
|
$ | 1,495 | $ | 1,885 | $ | 4,971 | $ | 5,478 | ||||||||
ESK Ceramics
|
1,722 | 429 | 3,704 | 1,416 | ||||||||||||
Thermo Materials
|
1,687 | 8,708 | 11,353 | 21,374 | ||||||||||||
Boron
|
1,831 | 330 | 3,805 | 2,397 | ||||||||||||
Total
|
$ | 6,735 | $ | 11,352 | $ | 23,833 | $ | 30,665 |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
2011
|
2010
|
Change
|
2011
|
2010
|
Change
|
|||||||||||||||||||
Defense
|
$ | 59.1 | $ | 18.7 | 216.8 | % | $ | 179.9 | $ | 98.2 | 83.2 | % | ||||||||||||
Industrial
|
42.5 | 31.3 | 35.4 | % | 126.8 | 96.8 | 30.9 | % | ||||||||||||||||
Energy
|
33.2 | 29.7 | 11.8 | % | 98.2 | 71.6 | 37.3 | % | ||||||||||||||||
Automotive/Diesel
|
10.2 | 9.5 | 8.3 | % | 30.2 | 27.1 | 11.3 | % | ||||||||||||||||
Commercial
|
3.0 | 2.6 | 13.6 | % | 8.4 | 8.5 | (1.4 | %) | ||||||||||||||||
Total
|
$ | 148.0 | $ | 91.8 | 61.3 | % | $ | 443.5 | $ | 302.2 | 46.7 | % |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Defense
|
40.0 | % | 20.4 | % | 40.5 | % | 32.5 | % | ||||||||
Industrial
|
28.7 | 34.2 | 28.6 | 32.0 | ||||||||||||
Energy
|
22.4 | 32.3 | 22.2 | 23.7 | ||||||||||||
Automotive/Diesel
|
6.9 | 10.3 | 6.8 | 9.0 | ||||||||||||
Commercial
|
2.0 | 2.8 | 1.9 | 2.8 | ||||||||||||
Total
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |