Hardinge Inc. (HDNG, Financial) filed Quarterly Report for the period ended 2010-03-31.
Hardinge Inc. has a market cap of $108.1 million; its shares were traded at around $9.31 with and P/S ratio of 0.5. The dividend yield of Hardinge Inc. stocks is 0.2%.HDNG is in the portfolios of Chuck Royce of Royce& Associates.
Selling, General and Administrative Expenses & Other. Selling, general and administrative (SG&A) expenses for the quarter decreased by $3.8 million to $14.4 million, or 21% lower when compared to the same quarter of the prior year. First quarter 2010 SG&A included charges of $0.9 million for professional services expenses related to the tender offer and $0.2 million related to Jones and Shipman acquisition costs, while first quarter 2009 SG&A included severance related charges of $1.4 million. Exclusive of these charges, SG&A for the first quarter of 2010 would have been $13.3 million, or 21% below the first quarter of 2009. The reduction is a direct result of transformational changes to the Companys business model as well as reductions in variable expenses given the lower sales levels. Foreign currency translation had an unfavorable impact of approximately $0.6 million during the first quarter compared to the same quarter of 2009.
Net (Loss). Net loss for the three months ended March 31, 2010 was ($5.2) million, or (12.0%) of net sales, compared to a net loss of ($5.4) million, or (10.3%) of net sales for the three months ended March 31, 2009. Basic and diluted loss per share for the three months ended March 31, 2010 were ($0.45) compared to ($0.47) for the three months ended March 31, 2009.
At March 31, 2010 cash and cash equivalents were $28.3 million compared to $24.6 million at December 31, 2009. The $3.7 million increase in cash was driven by cash flow generated by operating activities of $3.6 million. The cash flow from operating activities was generated as a result of net working capital reductions as a result of the global economic business conditions.
Net cash provided by operating activities was $3.6 million for the three months ended March 31, 2010 compared to $10.1 million for the same period in 2009, a decrease of $6.5 million. The primary driver of this decrease is related to the contraction of our balance sheet as a result of reduced sales levels in late 2008 and the first quarter of 2009. As a result of these decreased sales levels, our accounts receivable balances decreased dramatically during the first quarter of 2009 providing $19.7 million in cash flow. These same business conditions existed during the first quarter of 2010, however, as the sales levels had been depressed since late 2008, the magnitude of the decreases in accounts receivable were diminished resulting in $9.2 million in cash flow provided, a year over year decrease in cash flow provided by accounts receivable reductions of $10.5 million. Additionally, during the first quarter of 2010, our purchases of raw materials and parts increased due to the increased order activity, resulting in cash used of $5.9 million, which was offset by an increase in accounts payable of $5.6 million due to the increased inventory purchasing activity.
Cash flow provided by financing activities was $0.6 million for the three months ended March 31, 2010 compared to cash flow used in financing activities of $16.5 million for the same period in 2009. During the first quarter of 2009, we used $24.0 million to repay and terminate our multi-currency debt facility. Dividend payments during the first three months of 2010 decreased by $0.06 million over the same period in 2009 as a result of our decreasing the quarterly dividend payout to $0.005 per share at June 2009. During the first three months of 2010, we paid fees of $0.07 million related to the revolving credit facility compared to $0.6 million paid for the term loan and the multi-currency debt facility during the same period of 2009.
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Hardinge Inc. has a market cap of $108.1 million; its shares were traded at around $9.31 with and P/S ratio of 0.5. The dividend yield of Hardinge Inc. stocks is 0.2%.HDNG is in the portfolios of Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Net sales for the quarter ended March 31, 2010 were $43.2 million, a decrease of $8.9 million or 17% compared to the same quarter in 2009. First quarter 2009 sales in Europe benefited from shipments out of the backlog of orders generated prior to the collapse of worldwide demand. Sales in the first quarter 2010 were negatively influenced by temporary supply chain shortages for computer controls in addition to logistical delays in large turnkey orders that required customer run-offs, which translated to approximately $3.0 million in revenue being deferred to subsequent quarters in 2010. The China market continues to be a strong market with a year over year increase in net sales of 79%. Currency exchange rates had a favorable impact on sales of approximately $1.6 million for the quarter ended March 31, 2010 compared to the same period in 2009.Selling, General and Administrative Expenses & Other. Selling, general and administrative (SG&A) expenses for the quarter decreased by $3.8 million to $14.4 million, or 21% lower when compared to the same quarter of the prior year. First quarter 2010 SG&A included charges of $0.9 million for professional services expenses related to the tender offer and $0.2 million related to Jones and Shipman acquisition costs, while first quarter 2009 SG&A included severance related charges of $1.4 million. Exclusive of these charges, SG&A for the first quarter of 2010 would have been $13.3 million, or 21% below the first quarter of 2009. The reduction is a direct result of transformational changes to the Companys business model as well as reductions in variable expenses given the lower sales levels. Foreign currency translation had an unfavorable impact of approximately $0.6 million during the first quarter compared to the same quarter of 2009.
Net (Loss). Net loss for the three months ended March 31, 2010 was ($5.2) million, or (12.0%) of net sales, compared to a net loss of ($5.4) million, or (10.3%) of net sales for the three months ended March 31, 2009. Basic and diluted loss per share for the three months ended March 31, 2010 were ($0.45) compared to ($0.47) for the three months ended March 31, 2009.
At March 31, 2010 cash and cash equivalents were $28.3 million compared to $24.6 million at December 31, 2009. The $3.7 million increase in cash was driven by cash flow generated by operating activities of $3.6 million. The cash flow from operating activities was generated as a result of net working capital reductions as a result of the global economic business conditions.
Net cash provided by operating activities was $3.6 million for the three months ended March 31, 2010 compared to $10.1 million for the same period in 2009, a decrease of $6.5 million. The primary driver of this decrease is related to the contraction of our balance sheet as a result of reduced sales levels in late 2008 and the first quarter of 2009. As a result of these decreased sales levels, our accounts receivable balances decreased dramatically during the first quarter of 2009 providing $19.7 million in cash flow. These same business conditions existed during the first quarter of 2010, however, as the sales levels had been depressed since late 2008, the magnitude of the decreases in accounts receivable were diminished resulting in $9.2 million in cash flow provided, a year over year decrease in cash flow provided by accounts receivable reductions of $10.5 million. Additionally, during the first quarter of 2010, our purchases of raw materials and parts increased due to the increased order activity, resulting in cash used of $5.9 million, which was offset by an increase in accounts payable of $5.6 million due to the increased inventory purchasing activity.
Cash flow provided by financing activities was $0.6 million for the three months ended March 31, 2010 compared to cash flow used in financing activities of $16.5 million for the same period in 2009. During the first quarter of 2009, we used $24.0 million to repay and terminate our multi-currency debt facility. Dividend payments during the first three months of 2010 decreased by $0.06 million over the same period in 2009 as a result of our decreasing the quarterly dividend payout to $0.005 per share at June 2009. During the first three months of 2010, we paid fees of $0.07 million related to the revolving credit facility compared to $0.6 million paid for the term loan and the multi-currency debt facility during the same period of 2009.
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