Hurco Companies Inc. (HURC, Financial) filed Annual Report for the period ended 2011-10-31.
Hurco Companies Inc. has a market cap of $154.7 million; its shares were traded at around $24.02 with a P/E ratio of 19 and P/S ratio of 1.3.
Operating Income (Loss). Operating income for fiscal 2011 was $17.4 million, or 9.6% of sales, compared to an operating loss of $8.0 million, or 7.6% of sales, in fiscal 2010. The substantial improvement in operating income year-over-year was primarily due to the significant increase in sales in fiscal 2011.
Orders and Backlog. New order bookings in fiscal 2010, were $115.3 million, an increase of $34.7 million, or 43.1%, over the prior year. Approximately half of the year-over-year increase in orders occurred in the fourth quarter of fiscal 2010, reflecting strong customer demand in all geographic sales regions. Orders increased in North America by $8.9 million, or 38%, in Europe by $14.8 million, or 28%, and in the Asia Pacific region by $11.0 million, or by 288%, in each case as compared to fiscal 2009. Orders for fiscal 2010 as a whole were unfavorably affected by approximately $281,000, or 0.8%, compared to fiscal 2009 due to changes in currency exchange rates. Unit orders increased 25% in North America, 27% in Europe and 281% in the Asia Pacific region. Backlog was $15.6 million at October 31, 2010, compared to $6.3 million at October 31, 2009. We do not believe backlog is a useful measure of past performance or indicative of future performance. Backlog orders as of October 31, 2010 were fulfilled in fiscal 2011.
Operating Income (Loss). We incurred an operating loss for fiscal 2010 of $8.0 million, or 7.6% of sales, compared to an operating loss of $5.0 million, or 5.5% of sales, in fiscal 2009. The increase in the operating loss year-over-year was primarily the result of higher allocated fixed costs per machine due to reduced production levels. Also contributing to the increase in operating loss was a product mix that included a greater amount of our entry-level machines that were in high demand in the Asia Pacific region.
Inventories were $81.1 million at October 31, 2011, compared to $55.9 million at October 31, 2010. The $25.2 million increase was due to increased finished goods inventory to support the 70% increase in sales. Inventory turns remained relatively stable from 1.5 turns as of October 31, 2010 to 1.6 turns as of October 31, 2011.
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Hurco Companies Inc. has a market cap of $154.7 million; its shares were traded at around $24.02 with a P/E ratio of 19 and P/S ratio of 1.3.
Highlight of Business Operations:
Operating Expenses. Selling, general and administrative expenses were $38.5 million for fiscal 2011, an increase of $8.7 million, or 29.0%, from fiscal 2010. The increase consisted primarily of higher sales commissions due to increased sales volume, higher global sales and marketing expense, and increased wages and compensation paid to employees who had experienced wage reductions when cost containment measures were implemented during fiscal 2009 and 2010. Despite the dollar increase, the increased sales in fiscal 2011 resulted in selling, general and administrative expenses being 21.3% of sales and service fees compared to 28.2% for fiscal 2010.Operating Income (Loss). Operating income for fiscal 2011 was $17.4 million, or 9.6% of sales, compared to an operating loss of $8.0 million, or 7.6% of sales, in fiscal 2010. The substantial improvement in operating income year-over-year was primarily due to the significant increase in sales in fiscal 2011.
Orders and Backlog. New order bookings in fiscal 2010, were $115.3 million, an increase of $34.7 million, or 43.1%, over the prior year. Approximately half of the year-over-year increase in orders occurred in the fourth quarter of fiscal 2010, reflecting strong customer demand in all geographic sales regions. Orders increased in North America by $8.9 million, or 38%, in Europe by $14.8 million, or 28%, and in the Asia Pacific region by $11.0 million, or by 288%, in each case as compared to fiscal 2009. Orders for fiscal 2010 as a whole were unfavorably affected by approximately $281,000, or 0.8%, compared to fiscal 2009 due to changes in currency exchange rates. Unit orders increased 25% in North America, 27% in Europe and 281% in the Asia Pacific region. Backlog was $15.6 million at October 31, 2010, compared to $6.3 million at October 31, 2009. We do not believe backlog is a useful measure of past performance or indicative of future performance. Backlog orders as of October 31, 2010 were fulfilled in fiscal 2011.
Operating Income (Loss). We incurred an operating loss for fiscal 2010 of $8.0 million, or 7.6% of sales, compared to an operating loss of $5.0 million, or 5.5% of sales, in fiscal 2009. The increase in the operating loss year-over-year was primarily the result of higher allocated fixed costs per machine due to reduced production levels. Also contributing to the increase in operating loss was a product mix that included a greater amount of our entry-level machines that were in high demand in the Asia Pacific region.
Inventories were $81.1 million at October 31, 2011, compared to $55.9 million at October 31, 2010. The $25.2 million increase was due to increased finished goods inventory to support the 70% increase in sales. Inventory turns remained relatively stable from 1.5 turns as of October 31, 2010 to 1.6 turns as of October 31, 2011.
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