|By Marketwired .||
|August 4, 2014 05:00 PM EDT||
SARASOTA, FL -- (Marketwired) -- 08/04/14 -- Sun Hydraulics Corporation (NASDAQ: SNHY) today reported financial results for the second quarter of 2014 as follows:
June 28, June 29, 2014 2013 Increase Three Months Ended Net sales $ 61.1 $ 55.8 9% Net income $ 12.2 $ 11.8 3% Net income per share: Basic $ 0.46 $ 0.45 2% Diluted $ 0.46 $ 0.45 2% Six Months Ended Net sales $ 117.9 $ 106.8 10% Net income $ 23.6 $ 21.4 10% Net income per share: Basic $ 0.89 $ 0.82 9% Diluted $ 0.89 $ 0.82 9%
"Sun's second quarter sales reached record levels," said Allen Carlson, Sun's President and CEO. "Demand was bolstered by European and North American end markets, with Europe up 15%, and North America 10%. Asia/Pacific sales were comparable with the same period last year."
"As anticipated, second quarter earnings were affected by investments, including sales and marketing efforts in Asia and costs associated with our new facility," added Carlson. "These strategic investments support Sun's long-term profitable growth. Earnings were also impacted by non-recurring expenses in the quarter, totaling approximately $0.02 per share."
"We continue to make investments to bring new products to market," continued Carlson. "Earlier this year we expanded our offering of electrically-actuated cartridge valves. This quarter we also enhanced our automated integrated package design tool -- Quick Design. This tool is available on our website and allows customers to create custom integrated package solutions and receive designs in a matter of minutes. Product development efforts are on-going and we expect to release innovative products in the second half of the year."
Concluding, Carlson commented, "Demand in the first half of the year was strong. Estimated third quarter sales follow our normal seasonal pattern and show growth over the same period last year. The U.S. PMI released last week registered 57.1, which is the highest indication of growth in the manufacturing sector since April 2011. This represents positive near-term business conditions for Sun. We stand ready to capitalize on this growth and deliver value to our stakeholders."
Third quarter 2014 revenues are expected to be approximately $55 million, up 11% from the third quarter of 2013. Earnings per share are estimated to be $0.36 to $0.38 compared to $0.32 in the same period a year ago.
Sun Hydraulics Corporation will broadcast its 2014 second quarter financial results conference call live over the Internet at 9:00 A.M. E.T. tomorrow, August 5, 2014. To listen to the webcast, go to the Investor Relations section of www.sunhydraulics.com.
If an individual wishes to ask questions directly during the webcast, the conference call may be accessed by dialing 1-888-455-2296 and using 2093210 as the access code. Questions also may be submitted to the Company via email by going to the Sun Hydraulics website, www.sunhydraulics.com, and clicking on Investor Relations on the top menu. Scroll down to the bottom of the page and click on contact email: [email protected], which will open an email window to type in your message. Sun management will then answer these and other questions during the Company's webcast. A copy of this earnings release is posted on the Investor Relations page of our website under "Press Releases."
Sun Hydraulics Corporation is a leading designer and manufacturer of high performance screw-in hydraulic cartridge valves and manifolds for worldwide industrial and mobile markets. For more information about Sun, please visit our website at www.sunhydraulics.com.
Certain oral statements made by management from time to time and certain statements contained herein that are not historical facts are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and, because such statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements, including those in Management's Discussion and Analysis of Financial Condition and Results of Operations are statements regarding the intent, belief or current expectations, estimates or projections of the Company, its Directors or its Officers about the Company and the industry in which it operates, and assumptions made by management, and include among other items, (i) the Company's strategies regarding growth, including its intention to develop new products; (ii) the Company's financing plans; (iii) trends affecting the Company's financial condition or results of operations; (iv) the Company's ability to continue to control costs and to meet its liquidity and other financing needs; (v) the declaration and payment of dividends; and (vi) the Company's ability to respond to changes in customer demand domestically and internationally, including as a result of standardization. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that the anticipated results will occur.
Important factors that could cause the actual results to differ materially from those in the forward-looking statements include, among other items, (i) the economic cyclicality of the capital goods industry in general and the hydraulic valve and manifold industry in particular, which directly affect customer orders, lead times and sales volume; (ii) conditions in the capital markets, including the interest rate environment and the availability of capital; (iii) changes in the competitive marketplace that could affect the Company's revenue and/or cost bases, such as increased competition, lack of qualified engineering, marketing, management or other personnel, and increased labor and raw materials costs; (iv) changes in technology or customer requirements, such as standardization of the cavity into which screw-in cartridge valves must fit, which could render the Company's products or technologies noncompetitive or obsolete; (v) new product introductions, product sales mix and the geographic mix of sales nationally and internationally; and (vi) changes relating to the Company's international sales, including changes in regulatory requirements or tariffs, trade or currency restrictions, fluctuations in exchange rates, and tax and collection issues. Further information relating to factors that could cause actual results to differ from those anticipated is included but not limited to information under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Form 10-Q for the quarter ended June 28, 2014, and under the heading "Business" and particularly under the subheading, "Business Risk Factors" in the Company's Form 10-K for the year ended December 28, 2013. The Company disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.
SUN HYDRAULICS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands except per share data) Three months ended June 28, June 29, 2014 2013 (unaudited) (unaudited) Net sales $ 61,050 $ 55,788 Cost of sales 35,294 32,387 ----------- ----------- Gross profit 25,756 23,401 Selling, engineering and administrative expenses 7,379 6,640 ----------- ----------- Operating income 18,377 16,761 Interest (income) expense, net (284) (242) Foreign currency transaction (gain) loss, net (37) (29) Miscellaneous (income) expense, net 274 (484) ----------- ----------- Income before income taxes 18,424 17,516 Income tax provision 6,238 5,726 ----------- ----------- Net income $ 12,186 $ 11,790 =========== =========== Basic net income per common share $ 0.46 $ 0.45 Weighted average basic shares outstanding 26,444 26,236 Diluted net income per common share $ 0.46 $ 0.45 Weighted average diluted shares outstanding 26,444 26,236 Dividends declared per share $ 0.090 $ 0.090 SUN HYDRAULICS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands except per share data) Six months ended June 28, June 29, 2014 2013 (unaudited) (unaudited) Net sales $ 117,859 $ 106,848 Cost of sales 68,036 62,943 ----------- ----------- Gross profit 49,823 43,905 Selling, engineering and administrative expenses 14,720 13,212 ----------- ----------- Operating income 35,103 30,693 Interest income, net (596) (438) Foreign currency transaction gain, net (30) (149) Miscellaneous (income) expense, net 358 (390) ----------- ----------- Income before income taxes 35,371 31,670 Income tax provision 11,800 10,305 ----------- ----------- Net income $ 23,571 $ 21,365 =========== =========== Basic net income per common share $ 0.89 $ 0.82 Weighted average basic shares outstanding 26,409 26,185 Diluted net income per common share $ 0.89 $ 0.82 Weighted average diluted shares outstanding 26,409 26,185 Dividends declared per share $ 0.27 $ 0.27 SUN HYDRAULICS CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands) June 28, December 28, 2014 2013 (unaudited) Assets Current assets: Cash and cash equivalents $ 72,139 $ 54,912 Restricted cash 354 334 Accounts receivable, net of allowance for doubtful accounts of $117 and $117 22,666 16,984 Inventories 14,709 13,853 Income taxes receivable -- 954 Deferred income taxes 486 474 Short-term investments 38,501 38,729 Other current assets 4,417 2,816 ------------ ------------ Total current assets 153,272 129,056 Property, plant and equipment, net 77,424 75,731 Goodwill 5,329 5,221 Other assets 3,218 3,470 ------------ ------------ Total assets $ 239,243 $ 213,478 ============ ============ Liabilities and shareholders' equity Current liabilities: Accounts payable $ 5,976 $ 4,630 Accrued expenses and other liabilities 6,542 7,016 Income taxes payable 21 -- Dividends payable 2,380 2,372 ------------ ------------ Total current liabilities 14,919 14,018 Deferred income taxes 7,809 7,747 Other noncurrent liabilities 302 285 ------------ ------------ Total liabilities 23,030 22,050 Commitments and contingencies -- -- Shareholders' equity: Preferred stock, 2,000,000 shares authorized, par value $0.001, no shares outstanding -- -- Common stock, 50,000,000 shares authorized, par value $0.001, 26,448,374 and 26,352,692 shares outstanding 26 26 Capital in excess of par value 70,879 65,391 Retained earnings 139,854 123,420 Accumulated other comprehensive income (loss) 5,454 2,591 ------------ ------------ Total shareholders' equity 216,213 191,428 ------------ ------------ Total liabilities and shareholders' equity $ 239,243 $ 213,478 ============ ============ SUN HYDRAULICS CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS (in thousands) Six months ended June 28, June 29, 2014 2013 (unaudited) (unaudited) Cash flows from operating activities: Net income $ 23,571 $ 21,365 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,212 3,565 (Gain)Loss on disposal of assets 134 15 Gain on investment in business -- (528) Provision for deferred income taxes 50 (14) Allowance for doubtful accounts -- (29) Stock-based compensation expense 1,853 1,416 (Increase) decrease in, net of assets acquired: Accounts receivable (5,682) (6,740) Inventories (856) 186 Income taxes receivable 954 728 Other current assets (1,601) (677) Other assets (99) 258 Increase (decrease) in, net of liabilities assumed: Accounts payable 1,346 864 Accrued expenses and other liabilities 2,752 1,617 Income taxes payable 21 1,430 Other noncurrent liabilities 17 (1) ----------- ----------- Net cash provided by operating activities 26,672 23,455 Cash flows from investing activities: Investment in business, net of cash acquired -- (923) Capital expenditures (5,057) (9,518) Purchases of short-term investments (18,990) (11,888) Proceeds from sale of short-term investments 19,149 11,744 ----------- ----------- Net cash used in investing activities (4,898) (10,585) Cash flows from financing activities: Proceeds from stock issued 409 466 Dividends to shareholders (7,129) (4,710) Change in restricted cash (20) 21 ----------- ----------- Net cash used in financing activities (6,740) (4,223) Effect of exchange rate changes on cash and cash equivalents 2,193 (1,439) ----------- ----------- Net increase (decrease) in cash and cash equivalents 17,227 7,208 Cash and cash equivalents, beginning of period 54,912 34,478 ----------- ----------- Cash and cash equivalents, end of period $ 72,139 $ 41,686 =========== =========== Supplemental disclosure of cash flow information: Cash paid: Income taxes $ 10,775 $ 8,161 Supplemental disclosure of noncash transactions: Common stock issued for shared distribution through accrued expenses and other liabilities $ 3,226 $ 3,486 Common stock issued for deferred director's compensation through other noncurrent liabilities $ -- $ 294
Chief Financial Officer
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
Aug. 27, 2016 04:45 PM EDT Reads: 1,613
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Aug. 27, 2016 04:00 PM EDT Reads: 541
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Aug. 27, 2016 03:15 PM EDT Reads: 725
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Aug. 27, 2016 02:45 PM EDT Reads: 3,440
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Aug. 27, 2016 12:45 PM EDT Reads: 2,335
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Aug. 27, 2016 12:30 PM EDT Reads: 3,610
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Aug. 27, 2016 12:00 PM EDT Reads: 495
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Aug. 27, 2016 12:00 PM EDT Reads: 629
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
Aug. 27, 2016 12:00 PM EDT Reads: 638
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Aug. 27, 2016 11:00 AM EDT Reads: 2,353
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Aug. 27, 2016 11:00 AM EDT Reads: 3,966
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Aug. 27, 2016 10:30 AM EDT Reads: 1,961
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Aug. 27, 2016 10:15 AM EDT Reads: 1,895
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
Aug. 27, 2016 08:45 AM EDT Reads: 771
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Aug. 27, 2016 08:00 AM EDT Reads: 615