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.
<PAGE>
HARDINGE INC. AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
<S> <C> <C> <C>
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
</TABLE>
2
<PAGE>
PART I, ITEM 1.
HARDINGE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
SEPT. 30, DEC. 31,
1995 1994
-------- ---------
(UNAUDITED)
<S> <C> <C>
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
======== ========
</TABLE>
See accompanying notes.
3
<PAGE>
HARDINGE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
SEPT. 30, DEC. 31,
1995 1994
-------- ---------
(UNAUDITED)
<S> <C> <C>
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
======== ========
</TABLE>
See accompanying notes.
4
<PAGE>
HARDINGE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT. 30, SEPT. 30,
1995 1994 1995 1994
------- ------- -------- -------
<S> <C> <C> <C> <C>
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
======= ======= ======== =======
</TABLE>
See accompanying notes.
5
<PAGE>
HARDINGE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPT. 30,
1995 1994
--------- --------
<S> <C> <C>
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)
========= ========
</TABLE>
6
<PAGE>
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):
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1995 1994
------------ ------------
<S> <C> <C>
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
======= =======
</TABLE>
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
<PAGE>
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
<PAGE>
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.
<TABLE>
<CAPTION>
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)
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
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
</TABLE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<TABLE>
<CAPTION>
<S> <C> <C>
A. Exhibits
Item Description
27.1 Financial Data Schedule
</TABLE>
12
<PAGE>
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
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
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.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 4,701
<SECURITIES> 0
<RECEIVABLES> 48,383
<ALLOWANCES> 0
<INVENTORY> 67,886
<CURRENT-ASSETS> 113,030
<PP&E> 83,673
<DEPRECIATION> 48,778
<TOTAL-ASSETS> 160,453
<CURRENT-LIABILITIES> 19,565
<BONDS> 3,013
<COMMON> 65
0
0
<OTHER-SE> 131,736
<TOTAL-LIABILITY-AND-EQUITY> 160,453
<SALES> 124,405
<TOTAL-REVENUES> 124,405
<CGS> 81,846
<TOTAL-COSTS> 26,311
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,145
<INCOME-PRETAX> 16,051
<INCOME-TAX> 6,290
<INCOME-CONTINUING> 9,761
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,761
<EPS-PRIMARY> 2.11
<EPS-DILUTED> 2.11
</TABLE>
