SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): May 22, 2003 HURCO COMPANIES, INC. (Exact name of registrant as specified in its charter) INDIANA 0-9143 35-1150732 (State or other jurisdiction (Commission File No.) (I.R.S. Employer of incorporation or organization) Identification No.) ONE TECHNOLOGY WAY INDIANAPOLIS, INDIANA 46268 (Address of principal executive offices and zip code) (317) 293-5309 (Registrant telephone number, including area code) NOT APPLICABLE (Former name or former address, if changed since last report) ITEM 9. REGULATION FD DISCLOSURE Results of Operations and Financial Condition On May 22, 2003, Hurco Companies, Inc. (the "Registrant") reported its results of operations for the second quarter ended April 30, 2003. The Registrant's earnings release for the quarter is attached as Exhibit 99(a) and the information set forth therein is incorporated herein by reference and constitutes a part of this report. The attached Exhibit is furnished pursuant to Item 9 and Item 12 of Form 8-K. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: May 22, 2003 HURCO COMPANIES, INC. By: /s/ ROGER J. WOLF ----------------- Roger J. Wolf Senior Vice President and Chief Financial Officer EXHIBIT 99 HURCO REPORTS SECOND QUARTER 2003 RESULTS INDIANAPOLIS, INDIANA, -- May 22, 2003--Hurco Companies, Inc. (Nasdaq:HURC) today announced that for its second fiscal quarter, which ended April 30, 2003, the Company recorded a profit of $139,000, or $.02 per share, compared to a loss of $4,211,000, or $.75 per share, for the corresponding period a year ago. For the first six months of fiscal 2003, the Company recorded a loss of $443,000, or $.08 per share, compared to a loss of $5,852,000, or $1.05 per share, for the corresponding 2002 period. Sales and service fees for the second quarter were $17,453,000, approximately $2,458,000 (or 16%) higher than in the corresponding 2002 period. Sales and service fees reported in U.S. dollars benefited from significantly stronger European currencies, when translating foreign sales for financial reporting purposes. When measured at constant exchange rates, sales and service fees increased $521,000, or 3.5%, from the prior year period. New order bookings for the second quarter of fiscal 2003 were $20,550,000, an increase of 25% from the $16,461,000 recorded in the second quarter of 2002. Backlog was $7,250,000 at April 30, 2003, compared to $3,904,000 at January 31, 2003, and $5,315,000 at October 31, 2002. Gross margin for the quarter increased to 29.4% from 19.8% (exclusive of an inventory write-down of $1,083,000) in the prior year period, due to a combination of cost cutting initiatives carried out in 2002 and stronger European currencies in relation to the US dollar in the 2003 period. Selling, general and administrative expenses were $4,563,000, $28,000 more than the second quarter of 2002. Total debt was $8,516,000 at April 30, 2003, as compared to $9,867,000 at January 31, 2003, and constituted 23.7% of total capitalization. As of April 30, 2003, the Company had unutilized credit facilities of $6,648,000 available for direct borrowing or commercial letters of credit. Michael Doar, Chief Executive Officer, stated "We are encouraged by the small profit earned in the second quarter. However, competition in our worldwide markets remains very stiff. We believe we are seeing signs of a slow recovery in our US market, but in Germany the economy continues to weaken. Our outlook is guarded for the balance of fiscal 2003." Hurco Companies, Inc. is an industrial technology company that designs and produces interactive computer controls, software and computerized machine tools for the worldwide metal cutting and metal forming industry. The end market for the Company's products consists primarily of independent job shops and short-run manufacturing operations within large corporations in industries such as the aerospace, defense, medical equipment, energy, transportation and computer equipment. The Company is based in Indianapolis, Indiana, and has sales, application engineering and service subsidiaries in High Wycombe, England; Munich, Germany; Paris, France; Milan, Italy; Shanghai, China and Singapore, along with manufacturing operations in Taiwan. Products are sold through independent agents and distributors in the United States, Europe and Asia. The Company also has direct sales forces in the United Kingdom, Germany, France, Italy, and Asia. Web Site: www.hurco.com This news release contains forward looking statements which involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors include, among others, changes in general economic and business conditions that affect demand for computerized machine systems, computer numerical control systems and software products, changes in manufacturing markets, innovations by competitors, quality and delivery performance by our contract manufacturers and governmental actions and initiatives including import and export restrictions and tariffs. Hurco Companies, Inc. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except per-share data) Three Months Ended Six Months Ended April 30, April 30, 2003 2002 2003 2002 (unaudited) (unaudited) Sales and service fees $ 17,453 $ 14,995 $33,406 $ 33,515 Cost of sales and service 12,325 12,029 24,284 26,546 Cost of sales - restructuring - 1,083 - 1,083 --------- --------- --------- --------- Gross profit 5,128 1,883 9,122 5,886 Selling, general and administrative expenses 4,563 4,535 8,991 9,749 Restructuring expense (credit) and other - 1,395 - 1,751 --------- --------- --------- --------- Operating income (loss) 565 (4,047) 131 (5,614) License fee income, net - - - 163 Interest expense 150 133 309 310 Other income (expense), net (68) (2) 48 37 --------- --------- --------- --------- Income (loss) before taxes 347 (4,182) (130) (5,724) Provision for income taxes 208 29 313 128 --------- --------- --------- --------- Net income (loss) $ 139 $ (4,211) $ (443) $ (5,852) ========= ========= ========= ========= Earnings (loss) per common share Basic $ 0.02 $ (0.75) $ (0.08) $ (1.05) ========= ========= ========= ========= Diluted $ 0.02 $ (0.75) $ (0.08) $ (1.05) ========= ========= ========= ========= Weighted average common shares outstanding Basic 5,583 5,583 5,583 5,583 ========= ========= ========= ========= Diluted 5,583 5,583 5,583 5,583 ========= ========= ========= ========= OTHER CONSOLIDATED FINANCIAL DATA Three Months Ended Six Months Ended April 30, April 30, Operating Data: 2003 2002 2003 2002 (unaudited) (unaudited) Gross margin, excluding restructuring charges 29.4% 19.8% 27.3% 20.8% SG&A expense as a percentage of sales 26.1% 30.2% 26.9% 29.1% Operating income (loss) as a percentage of sales 3.2% -27.0% 0.4% -16.8% Pre-tax income (loss) as a percentage of sales 2.0% -27.9% -0.4% -17.1% Depreciation 366 477 715 990 Capital expenditures 329 452 497 901 Balance Sheet Data: 4/30/2003 4/30/2002 Working capital (excluding short term debt) $ 21,108 $24,557 Days sales outstanding 49 53 Inventory turns 2.1 2.3 Net assets per $ of revenue (trailing twelve months) Working capital, net $ 0.26 $ 0.28 All other 0.25 0.23 -------- -------- Total $ 0.51 $ 0.51 ======== ======== Hurco Companies, Inc. CONDENSED CONSOLIDATED BALANCE SHEET (In thousands, except per-share data) April 30, October 31, 2003 2002 (unaudited) (audited) ASSETS Current assets: Cash and cash equivalents $ 2,948 $ 4,358 Cash - restricted 1,150 - Accounts receivable 11,397 13,425 Inventories 26,090 22,548 Other 1,615 1,204 -------- -------- Total current assets 43,200 41,535 -------- -------- Property and equipment: Land 761 761 Building 7,203 7,203 Machinery and equipment 10,390 10,144 Leasehold improvements 483 396 -------- -------- 18,837 18,504 Less accumulated depreciation and amortization (10,236) (9,696) -------- -------- 8,601 8,808 Software development costs, less amortization 1,625 1,604 Investments and other assets 4,933 5,205 -------- -------- $ 58,359 $ 57,152 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 12,065 $ 9,856 Accrued expenses 10,027 10,016 Bank debt - current 2,493 - Current portion of long-term debt 1,316 1,313 -------- -------- Total current liabilities 25,901 21,185 -------- -------- Non-current liabilities: Long-term debt 4,707 7,572 Deferred credits and other obligations 408 378 -------- -------- Total liabilities 31,016 29,135 -------- -------- Shareholders' equity: Preferred stock: no par value per share; 1,000,000 shares - - authorized; no shares issued Common stock: no par value; $.10 stated value per share; 12,500,000 shares authorized; and 5,583,158 and 5,583,158 shares issued, respectively 558 558 Additional paid-in capital 44,717 44,717 Accumulated deficit (10,616) (10,173) Accumulated other comprehensive income (7,316) (7,085) -------- -------- Total shareholders' equity 27,343 28,017 -------- -------- $ 58,359 $ 57,152 ======== ========