-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Rnds4c8V6d3jo8bG9Db3nQZ+clLIGIXelzLTy6yVOXUNus14QizIEWNoFaCcrQdg pq10K9y82JkaMr3y+rdsPg== 0000950146-95-000668.txt : 19951106 0000950146-95-000668.hdr.sgml : 19951106 ACCESSION NUMBER: 0000950146-95-000668 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951103 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARDINGE INC CENTRAL INDEX KEY: 0000313716 STANDARD INDUSTRIAL CLASSIFICATION: METALWORKING MACHINERY & EQUIPMENT [3540] IRS NUMBER: 160470200 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-15760 FILM NUMBER: 95587091 BUSINESS ADDRESS: STREET 1: ONE HARDING DRIVE CITY: ELMIRA STATE: NY ZIP: 14902 BUSINESS PHONE: 6077342281 MAIL ADDRESS: STREET 1: ONE HARDINGE DRIVE STREET 2: ONE HARDINGE DRIVE CITY: ELMIRA STATE: NY ZIP: 14902 FORMER COMPANY: FORMER CONFORMED NAME: HARDINGE BROTHERS INC DATE OF NAME CHANGE: 19920703 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) [x] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Period Ended September 30, 1995 --------------- or [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From to Commission File No. 0-15760 --------------- HARDINGE INC. -------------------------------- (Exact Name of Registrant as specified in its charter) NEW YORK 16-0470200 - ------------------------------------- ------------------------------------- (State or other jurisdiction of (I.R.S. Employer Indentification No.) incorporation or organization) ONE HARDINGE DRIVE, ELMIRA, NEW YORK 14902 - ---------------------------------------- ----------------------------- (Address of principal executive offices) (Zip Code) (607) 734-2281 ----------------------------- (Registrant's telephone number, including area code) Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No At September 30, 1995, there were 6,408,722 shares of Common Stock of the Registrant outstanding. HARDINGE INC. AND SUBSIDIARIES INDEX
Part I Financial Information Page Item 1. Financial Statements Consolidated Balance Sheets at September 30, 1995 and December 31, 1994. 3 Consolidated Statements of Income and Retained Earnings for the three months ended September 30, 1995 and 1994 and the nine months ended September 30, 1995 and 1994. 5 Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 1995 and 1994. 6 Notes to Consolidated Financial Statements. 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 9 Part II Other Information Item 1. Legal Proceedings 12 Item 2. Changes in Securities 12 Item 3. Default upon Senior Securities 12 Item 4. Submission of Matters to a Vote of Security Holders 12 Item 5. Other Information 12 Item 6. Exhibits and Reports on Form 8-K 12 Signatures 13
2 PART I, ITEM 1. HARDINGE INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (DOLLARS IN THOUSANDS)
SEPT. 30, DEC. 31, 1995 1994 -------- --------- (UNAUDITED) Assets Current assets: Cash $ 4,701 $ 3,783 Accounts receivable 32,920 20,237 Notes receivable 5,060 4,935 Inventories 67,886 50,698 Deferred income taxes 981 981 Prepaid expenses 1,482 630 -------- -------- Total current assets 113,030 81,264 Property, plant and equipment: Property, plant and equipment 83,673 76,078 Less accumulated depreciation 48,778 45,812 -------- -------- 34,895 30,266 Other assets: Notes receivable 10,403 7,744 Deferred income taxes 1,365 1,439 Other 760 1,013 -------- -------- 12,528 10,196 -------- -------- Total assets $160,453 $121,726 ======== ========
See accompanying notes. 3 HARDINGE INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - CONTINUED (DOLLARS IN THOUSANDS)
SEPT. 30, DEC. 31, 1995 1994 -------- --------- (UNAUDITED) Liabilities and shareholders' equity Current liabilities: Accounts payable $ 9,131 $ 9,415 Notes payable to bank 0 3,500 Accrued expenses 8,675 4,571 Accrued pension plan expense 368 339 Dividends payable 0 959 Accrued income taxes 677 1,246 Current portion long-term debt 714 714 -------- -------- Total current liabilities 19,565 20,744 Other liabilities: Long-term debt 3,013 15,164 Employee stock ownership plan obligation 0 150 Accrued pension plan expense 1,101 1,055 Accrued postretirement benefits 4,973 4,837 -------- -------- 9,087 21,206 Shareholders' equity Common stocks, $5 par value: Class A: Authorized shares - 3,000,000 Issued shares at December 31, 1994 - 975,912 4,880 Class B: Authorized shares - 3,000,000 Issued shares at December 31, 1994 - 912,910 4,564 Common stocks, $.01 par value: Authorized shares - 20,000,000 Issued shares at Sept. 30, 1995 - 6,458,703 65 Additional paid-in capital 54,933 655 Retained earnings 82,543 74,853 Treasury shares (627) (361) Cumulative foreign currency translation adjustment (1,640) (1,874) Deferred employee benefits (3,473) (2,941) -------- -------- Total shareholders' equity 131,801 79,776 -------- -------- Total liabilities and shareholders' equity $160,453 $121,726 ======== ========
See accompanying notes. 4 HARDINGE INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS (UNAUDITED) (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED SEPT. 30, SEPT. 30, 1995 1994 1995 1994 ------- ------- -------- ------- Net Sales $42,217 $29,449 $124,405 $85,951 Cost of sales 27,778 19,055 81,846 55,998 ------- ------- -------- ------- Gross profit 14,439 10,394 42,559 29,953 Selling, general and administrative expenses 9,490 7,419 26,311 20,643 ------- ------- -------- ------- Income from operations 4,949 2,975 16,248 9,310 Interest expense 172 347 1,145 1,074 Interest (income) (326) (61) (622) (321) (Gain) on sale of asset (326) ------- ------- -------- ------- Income before income taxes 5,103 2,689 16,051 8,557 Income taxes 1,921 1,081 6,290 3,518 ------- ------- -------- ------- Net income 3,182 1,608 9,761 5,039 Retained earnings at beginning of period 79,361 73,513 74,853 71,206 Less dividends declared 562 2,071 1,686 ------- ------- -------- ------- Retained earnings at end of period $82,543 $74,559 $ 82,543 $74,559 ======= ======= ======== ======= Weighted average number of common shares outstanding 6,176 3,586 4,634 3,586 ======= ======= ======== ======= Per share data: Net Income $ .52 $ .45 $ 2.11 $ 1.41 ======= ======= ======== ======= Dividends Declared $ .00 $ .15 $ .45 $ .45 ======= ======= ======== =======
See accompanying notes. 5 HARDINGE INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (DOLLARS IN THOUSANDS)
NINE MONTHS ENDED SEPT. 30, 1995 1994 --------- -------- Net cash (used in) provided by operating activities ($ 16,143) $ 6,304 Investing activities: Capital expenditures (8,120) (4,875) Proceeds from sale of assets 497 479 --------- -------- Net cash (used in) investing activities (7,623) (4,396) Financing activities: (Decrease) in short-term notes payable to bank (3,500) (88) (Decrease) increase in long-term debt (12,152) 786 (Purchase) of treasury stock (266) (395) Dividends paid (3,022) (2,437) Proceeds from stock offering 43,457 --------- -------- Net cash provided by (used in) financing activities 24,517 (2,134) Effect of exchange rate changes on cash 167 6 --------- -------- Net increase (decrease) in cash $ 918 ($ 220) ========= ========
6 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) HARDINGE INC. AND SUBSIDIARIES SEPTEMBER 30, 1995 NOTE A--BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine month periods ended September 30, 1995, are not necessarily indicative of the results that may be expected for the year ended December 31, 1995. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report for the year ended December 31, 1994. NOTE B--INVENTORIES Inventories are summarized as follows (dollars in thousands):
SEPTEMBER 30, DECEMBER 31, 1995 1994 ------------ ------------ Finished products $22,656 $20,024 Work-in-process 27,249 19,439 Raw materials and purchased components 17,981 11,235 ------- ------- $67,886 $50,698 ======= =======
NOTE C--CHANGES IN SHAREHOLDERS' EQUITY At the annual meeting on May 16, 1995, shareholders approved amendments to the Company's Certificate of Incorporation (a) authorizing a new class of Preferred Stock consisting of 2,000,000 shares; (b) converting each Class A common share into 2.00 shares of a new single class of Common Stock, representing a 2-for-1 stock split and each Class B common share into 2.05 shares of a new single class of Common Stock, representing a 2.05-for-1 stock split; and (c) increasing the number of shares of Common Stock the Company is authorized to issue from 6,000,000 to 20,000,000 shares and reducing the par value of all Common Stock from $5 to $0.01 per share. Approval of (b) and (c) was conditioned upon the approval by the Board of Directors, or a committee thereof, just prior to the effective date of a registration statement, of the final terms of an underwriting agreement with respect to a public offering. Such approval and offering occurred, and the amendments to the Certificate of Incorporation were filed with the Secretary of State of New York on May 24, 1995. All historical per share data has been restated giving effect to the amendments discussed above. On June 2, 1995 the Company received proceeds from the public offering and sale of 2,250,000 shares of common stock. Together with the underwriters' over-allotment option exercised at the end of June for 290,000 additional shares, the Company raised a net $43,500,000 from the offering. A portion of the net proceeds of the offering were used to pay down debt existing at that time. As of September 30, 1995, the remainder of the funds have been used to finance expenditures on the expansion of the Company's Elmira manufacturing facility and to fund growth in working capital. NOTE D--EARNINGS PER SHARE AND WEIGHTED SHARES OUTSTANDING Earnings per share are calculated using a monthly weighted average shares outstanding and include common stock equivalents related to restricted stock. Historical numbers have been restated to reflect the conversion of stock mentioned above. Third quarter and year to date 1995 averages have been calculated treating the 2,250,000 shares sold in the public offering as outstanding as of the month of the June. The shares sold upon exercise of the over-allotment option were included as of July. NOTE E--DIVIDENDS DECLARED The third quarter 1995 dividends paid were declared in the second quarter of 1995, where the dividends paid in the third quarter of 1994 were declared in the third quarter of 1994. 7 PART I, ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following are management's comments relating to significant changes in the results of operations for the three month and nine month periods ended September 30, 1995 and 1994 and in the Company's financial condition during the nine month period ended September 30, 1995. RESULTS OF OPERATIONS Net Sales. Net sales for the quarter ended September 30, 1995 increased by 43.4% to $42,217,000 from $29,449,000 in the corresponding 1994 period. Year to date net sales of $124,405,000 for the first nine months of 1995 represent a 44.7% increase over the $85,951,000 net sales for the same 1994 period. Unit volumes increased in substantially all of the Company's Computer Numerically Controlled (CNC) machine tool lines. Shipments of the Company's newly introduced vertical CNC lathes and vertical CNC machining centers have met expectations and accounted for 20% of net sales for the third quarter. Shipments to the automobile industry of those new models, as well as horizontal CNC lathes, contributed to increased sales in the third quarter and year to date periods. Sales to the Big Three US automobile manufacturers accounted for an unusually high 27% of the Company's sales in the third quarter. Year to date, such sales accounted for approximately 22% of net sales as compared to 3% of net sales in the same period of 1994. Sales of lathes and other machine tool equipment accounted for $27,568,000 of net sales for the third quarter of 1995, representing a 67.1% increase from the same 1994 period. Year to date, September 30, 1995 sales in the same product grouping accounted for $78,339,000 or a 63.2% increase over the $47,991,000 in the same 1994 period. Sales of non-machine products and services in the third quarter of 1995 increased to $14,649,000, a 13.1% increase over sales in the same 1994 period, while year to date sales of this product group increased to $46,066,000, a 21.4% increase over the previous year. Sales of lathes and other machine tool equipment accounted for 65.3% and 63.0% of total net sales for the third quarter and first nine months of 1995, respectively. In 1994, sales of this product group accounted for 56.0% and 55.8% of third quarter and year to date total net sales, respectively. The Company experienced improvements in each of its significant geographical markets during the first nine months of 1995. The largest dollar amount increase came in the U.S. market, where net sales increased 47.6% to $31,915,000 in the third quarter and 43.7% to $97,306,000 in the nine month period ended September 30, 1995, when compared to the sales in the same 1994 period. Net sales in the Western European market, primarily the United Kingdom and France, increased by $2,313,000 or 78.1% in the third quarter of 1995 over net sales in the same markets for the third quarter of 1994. On a year to date comparison, net sales in Western Europe resulted in a growth of $6,203,000, or 71.9%. Gross Profit. Gross profit in the third quarter of 1995, as a percentage of sales, was 34.2% compared to gross margin of 35.3% for the same period in 1994. On a year to date basis, 1995 gross margin was 34.2% compared to 34.8% in the first nine months of 1994. Sales in the lathe and other machine tool product group traditionally have generated lower gross margins than the non-machine products and services group. Therefore, overall gross margin, as a percentage of sales, is negatively affected when sales in the lathe and other machine tool lines product group increase as a proportion of total net sales, as it has in the first nine months of 1995. Year to date gross margin was also negatively affected by production startup costs for the Company's vertical CNC lathes and vertical CNC machining centers. These negative impacts were partially offset by the Company's ability to spread its overhead costs over a larger number of units sold. The decline of the dollar against the Japanese yen did not have a significant impact on year to year comparisons of gross margin due to the Company's foreign currency arrangements and lower level of discounts. Selling, General, and Administrative Expenses. Selling, general and administrative ("SG&A") expenses decreased as a percent of net sales to 22.5% and 21.1% in the third quarter and first nine months of 1995, respectively, compared to 25.2% and 24.0% in the same 1994 periods. This improvement indicates the success of the Company's cost control strategy. Increases in the dollar amount of expenditures in this area were primarily in commission and other expenses that vary with sales levels, and advertising and show expenses to promote new products. 8 Income from Operations. Income from operations as a percentage of net sales increased in the three and nine month periods ended September 30, 1995, to 11.7% and 13.1%, respectively, from the same 1994 periods, which were 10.1% and 10.8%, respectively. Interest Expense. Interest expense decreased to $172,000 in the third quarter of 1995 from $347,000 in the same 1994 period. Interest expense in the first nine months of 1995 increased to $1,145,000 compared to $1,074,000 in the same 1994 period. Higher average borrowings in the first five months of 1995 resulting from increases in working capital caused the majority of this increase in the year to date comparison. The third quarter was positively affected by a reduction in short term debt, payment of a $5,000,000 long term note payable and a reduction in borrowings under the revolving loan agreement during the second quarter with proceeds from the public offering discussed below. Interest Income. Interest income increased to $326,000 in the third quarter of 1995 from $61,000 in the same 1994 period, while year to date interest income increased to $622,000 from $321,000 in 1994 primarily due to interest earned on cash from the public offering. Gain on Sale of Assets. Results for the first nine months of 1995 included a gain of $326,000 (approximately $198,000 on an after-tax basis) on the sale of a building in Los Angeles during the first quarter. The Company's sales and demonstrations office formerly located there was relocated to a leased facility. Income Taxes. The provision for income taxes as a percentage of net income was 37.6% and 39.2% for the third quarter and first nine months of 1995, respectively, compared to 40.2% and 41.1% for the same 1994 periods. The 1995 consolidated tax rates were lower due to profits in the Company's Western European operations for which no tax provision was recorded because of the availability of net operating loss carryforwards. Net Income. Net income for the third quarter of 1995 was $3,182,000, an increase of $1,574,000 or 98.0% from the same 1994 period. Year to date 1995 net income was $9,761,000, an increase of 93.7% or $4,722,000 from the same 1994 period. These increases represent an accumulation of the factors discussed above. Geographically, operations in North America continue to show significant improvements, while operations in Western Europe for the third quarter and first nine months of 1995 have returned to profitability after net losses in the same 1994 periods. QUARTERLY INFORMATION The following table sets forth certain quarterly financial data for each of the periods indicated.
THREE MONTHS ENDED --------------------------------------------------------------------------------------------- MARCH 31, JUNE 30, SEPT. 30, DEC. 31, MARCH 31, JUNE 30, SEPT. 30, 1994 1994 1994 1994 1995 1995 1995 -------- ------- -------- ------- -------- ------- --------- (IN THOUSANDS, EXCEPT PER SHARE DATA) -------------------------------------------------------------------------------------------- Net Sales $27,479 $29,023 $29,449 $31,385 $40,687 $41,501 $42,217 Gross Profit 9,549 10,010 10,394 10,446 13,913 14,207 14,439 Income from operations 2,977 3,358 2,975 3,207 5,498 5,801 4,949 Net income 1,612 1,819 1,608 1,680 3,304 3,275 3,182 Net income per share .45 .51 .45 .47 .92 .75 .52 Weighted average share outstanding 3,545 3,545 3,586 3,586 3,584 4,349 6,176
LIQUIDITY AND CAPITAL RESOURCES At the annual meeting on May 16, 1995, shareholders approved amendments to the Company's Certificate of Incorporation (a) authorizing a new class of Preferred Stock consisting of 2,000,000 shares; (b) converting each Class A common share into 2.00 shares of a new single class of Common Stock, representing a 2-for-1 stock split and each Class B common share into 2.05 shares of a new single class of Common Stock, representing a 2.05-for-1 stock split; and (c) increasing the number of shares of Common Stock the Company is authorized to issue from 6,000,000 to 20,000,000 shares and reducing the par value of all Common Stock from $5 to $0.01 per share. Approval of (b) and (c) was conditioned upon the approval by the Board of Directors, or a committee thereof, just prior to the effective date of a registration statement, of the final terms of an underwriting agreement with respect 9 to a public offering. Such approval and offering occurred and the amendments to the Certificate of Incorporation were filed with the Secretary of State of New York on May 24, 1995. On June 2, 1995, the Company received proceeds from the public offering and sale of 2,250,000 shares of common stock. Together with the underwriters' over-allotment option exercised at the end of June for 290,000 additional shares, the Company raised a net $43,500,000 from the offering. A portion of the net proceeds of the offering were used to pay down debt existing at that time. As of September 30, 1995, the remainder of the funds have been used to finance expenditures on the expansion of the Company's Elmira manufacturing facility and to fund growth in working capital. The Company's current ratio at September 30, 1995 was 5.78:1 compared to 3.92:1 at December 31, 1994. Current assets increased by $31,766,000 during the first nine months of 1995. Inventory increased by $17,188,000 as the Company continues to purchase materials to increase production of new products and to meet customer delivery requirements. Accounts receivable increased by $12,683,000 from year end because of the high level of sales at the end of the third quarter. In the first nine months of 1995, operating activities used $16,143,000 of cash, while operating activities in the same period of 1994 generated $6,304,000 of cash. Operating activities used cash in the 1995 period, notwithstanding the Company's improved net income, primarily because of the increases in accounts receivable and inventory. Operating activities in 1994 provided cash, primarily because working capital requirements remained flat during the period. In its investing and financing activities, the Company has required cash for capital expenditures and dividend payments. As is common in its industry, the Company provides long-term financing for the purchase of its equipment by qualified customers. The Company regards this program as an important part of its marketing efforts, particularly to independent machine shops. Customer financing is offered for a term of up to seven years, with the Company retaining a security interest in the purchased equipment. In response to competitive pressures, the Company occasionally offers this financing at below market interest rates or with deferred payment terms. The present value of the difference between the actual interest charged on customer notes for periods during which finance charges are waived or reduced and the estimated rate at which the notes could be sold to financial institutions is accounted for as a reduction of the Company's net sales. The amount of such reductions has not been material to the Company's results of operations or financial condition. In the event of a customer default and foreclosure, it is the practice of the Company to recondition and resell the equipment. It has been the Company's experience that such equipment resales have realized the approximate remaining contract value. In order to reduce debt and finance current operations, the Company has, for many years, periodically sold a substantial portion of its underlying customer notes receivable to various financial institutions. In the first nine months of 1995, the Company sold $7,700,000 of customer notes compared to $19,554,000 sold during the first nine months of 1994. The amount of shipments financed through the Company's program have decreased in the first nine months of 1995 compared to the same period of 1994. In the sales of customer notes, recourse against the Company from customer defaults is limited to 10% of the then outstanding balance thereof and is effected in the form of a hold back of that percentage of funds at the time of the sale. The 10% portion of customer notes retained by the Company, as well as all customer notes that have not been sold by the Company, are included in notes receivable in its consolidated balance sheet. Although the Company has no formal arrangements with financial institutions to purchase its customer notes receivable, it has not experienced difficulty in arranging such sales. While the Company's customer financing program has an impact on its month-to-month borrowings from time-to-time, it has had little long-term impact on its working capital because of the sales of the underlying customer notes receivable. The amount of long-term customer notes receivable held by the Company increased to $10,403,000 at September 30, 1995 from $7,744,000 at December 31, 1994. In April 1995, the Company began construction of three additions to its manufacturing facility, which, when completed and fully operational, will increase its machine making capacity by approximately 25%. Construction of the building is expected to be completed by early 1996 and the equipment portion of the project is expected to be fully productive by mid-year 1996. The Company estimates that the cost of these additions, together with the necessary machinery and equipment, will be approxi- 10 mately $15,000,000. As of September 30, 1995, approximately $5,000,000 of this amount has been paid. The Company expects to spend approximately $7,000,000 of this amount during the fourth quarter of 1995 and the balance in 1996. These amounts will be funded through cash generated from operations and funds available through the revolving loan agreement. The Company currently estimates that other capital expenditures will total $3,000,000 in 1995. These other capital expenditures will primarily be made to improve operating efficiencies at the Elmira manufacturing facility. The Board of Directors past practice had been to pay five dividends in respect of each year--four quarterly dividends during the year and a fifth "extra" dividend in January of the following year. The Board communicated to its shareholders in the second quarter of 1995 its present intent to discontinue the payment of a fifth dividend. The Company paid total dividends of $3,022,000 during the first nine months of 1995. At its meeting on October 24, 1995, the Board of Directors declared a regular quarterly dividend payable on December 8, 1995 to shareholders of record as of November 24, 1995 of $.17 per share. This represented a 13.3% increase from the previous regular quarterly dividend rate of $.15 per share. The Company has a revolving loan agreement with three banks providing for borrowing up to $30,000,000 on a revolving basis through August 1, 1997. At that time, the outstanding amounts convert to a term loan payable quarterly over four years through 2001. This facility, along with a $5,000,000 short term line with another bank, provide for immediate access of up to $35,000,000. At September 30, 1995, outstanding borrowings under these arrangements totaled $1,585,000. The Company currently intends to use its improved financial condition to seek growth opportunities in new products, international markets and strategic acquisitions. Management believes that the currently available funds and credit facilities, along with internally generated funds, will provide sufficient financial resources for its ongoing operations. 11 PART II OTHER INFORMATION ITEM 1. Legal Proceedings None ITEM 2. Changes in Securities None ITEM 3. Default upon Senior Securities None ITEM 4. Submission of Matters to a Vote of Security Holders None ITEM 5. Other Information None ITEM 6. Exhibits and Reports on Form 8-K
A. Exhibits Item Description 27.1 Financial Data Schedule
12 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused the Report to be signed on its behalf by the undersigned, thereunto duly authorized. HARDINGE INC. -------------------------------------- Robert E. Agan President and Chief Executive Officer -------------------------------------- Malcolm L. Gibson Senior Vice President, Chief Financial Officer and Assistant Secretary (Principal Financial Officer) -------------------------------------- Richard L. Simons Controller (Principal Accounting Officer) DATE: 13 EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED FROM THE COMPANY'S UNAUDITED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS DEC-31-1995 SEP-30-1995 4,701 0 48,383 0 67,886 113,030 83,673 48,778 160,453 19,565 3,013 65 0 0 131,736 160,453 124,405 124,405 81,846 26,311 0 0 1,145 16,051 6,290 9,761 0 0 0 9,761 2.11 2.11
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