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
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April 30, 2015
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Date of report (Date of earliest event reported)
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HUTCHINSON TECHNOLOGY INCORPORATED
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(Exact Name of Registrant as Specified in its Charter)
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Minnesota
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001-34838
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41-0901840
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(State of Incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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40 West Highland Park Drive N.E.,
Hutchinson, Minnesota
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55350
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(Registrant’s Telephone Number, Including Area Code)
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(Former Name or Former Address, if Changed Since Last Report)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 1.01 Entry into a Material Definitive Agreement.
On April 30, 2015, we entered into Amendment No. 8 to Revolving Credit and Security Agreement with PNC Bank, National Association (“PNC”), as agent and lender. The amendment modifies the fixed charge coverage covenant under our existing Revolving Credit and Security Agreement dated as of September 16, 2011, as previously amended, to (i) eliminate the requirement for our fiscal quarter ended March 29, 2015 and fiscal quarters ending June 28, 2015 and September 27, 2015 and change the measurement periods starting with our fiscal quarter ending December 27, 2015 by excluding from such measurement periods all fiscal quarters ended on or prior to September 27, 2015, and (ii) implement an additional earnings before interest, taxes, depreciation and amortization (EBITDA) requirement for our fiscal quarter ended March 29, 2015 and fiscal quarters ending June 28, 2015 and September 27, 2015. The amendment also requires us to transfer all funds in our existing money market account to a new money market account at PNC.
A copy of the amendment is attached as Exhibit 10.1 to this current report on Form 8-K and is incorporated herein by reference.
Item 2.02 Results of Operations and Financial Condition.
On April 30, 2015, we issued a press release regarding our financial results for the fiscal quarter ended March 29, 2015, which is furnished as Exhibit 99.1 hereto.
The press release includes certain “non-GAAP financial measures” within the meaning of the rules of the Securities and Exchange Commission. With respect to such non-GAAP financial measures, we have disclosed in the press release the most directly comparable financial measure calculated and presented in accordance with generally accepted accounting principles (“GAAP”) and have provided a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measure. Management believes that the non-GAAP measures provide useful information to investors regarding our results of operations and financial condition because they eliminate unusual items impacting earnings and facilitate a more meaningful comparison and understanding of our operating performance for the current, past and future periods.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
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10.1
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Amendment No. 8 to Revolving Credit and Security Agreement, dated as of April 30, 2015, between Hutchinson Technology Incorporated and PNC Bank, National Association, as Agent and Lender.
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99.1
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Press Release dated April 30, 2015, regarding our financial results for the fiscal quarter ended March 29, 2015.
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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.
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HUTCHINSON TECHNCOLOGY INCORPORATED
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Date: April 30, 2015
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/s/ David P. Radloff
David P. Radloff
Vice President and Chief Financial Officer
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EXHIBIT INDEX
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No.
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Description
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Manner of Filing
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10.1
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Amendment No. 8 to Revolving Credit and Security Agreement, dated as of April 30, 2015, between Hutchinson Technology Incorporated and PNC Bank, National Association, as Agent and Lender.
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Filed Electronically
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99.1
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Press Release dated April 30, 2015, regarding our financial results for the fiscal quarter ended March 29, 2015.
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Furnished Electronically
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Exhibit 10.1
AMENDMENT NO. 8
TO
REVOLVING CREDIT AND SECURITY AGREEMENT
THIS AMENDMENT NO. 8 (this “Amendment”) is entered into as of April 30, 2015, by and among HUTCHINSON TECHNOLOGY INCORPORATED, a corporation organized under the laws of the State of Minnesota (“HTI”) (HTI and each other Person who becomes a Borrower under the Loan Agreement referred to below, each a “Borrower,” and collectively “Borrowers”), the financial institutions set forth on the signature pages hereto (each a “Lender” and collectively, “Lenders”) and PNC Bank, National Association as agent for Lenders (in such capacity, “Agent”).
BACKGROUND
Borrowers, Agent and Lenders are parties to a Revolving Credit and Security Agreement dated as of September 16, 2011 (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”) pursuant to which Agent and Lenders provide Borrowers with certain financial accommodations.
Borrowers have requested that Agent and Lenders agree to certain amendments to the Loan Agreement, and Agent and Lenders are willing to do so on the terms and conditions hereafter set forth.
NOW, THEREFORE, in consideration of any loan or advance or grant of credit heretofore or hereafter made to or for the account of Borrowers by Agent and Lenders, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
1. Definitions. All capitalized terms not otherwise defined herein shall have the meanings given to them in the Loan Agreement.
2. Amendment to Loan Agreement. Subject to satisfaction of the conditions precedent set forth in Section 3 below, the Loan Agreement is hereby amended as follows:
(a) Section 6.5(a) is hereby amended in its entirety to provide as follows:
(a) Fixed Charge Coverage Ratio. Cause to be maintained a Fixed Charge Coverage Ratio as of the end of each period set forth below of not less than the corresponding Fixed Charge Coverage Ratio for such period set forth below:
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Period
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Fixed Charge Coverage Ratio
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For the fiscal quarter ending on or about December 31, 2015
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1.05 : 1.00
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For the two fiscal quarters ending on or about March 31, 2016
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1.05 : 1.00
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For the three fiscal quarters ending on or about June 30, 2016
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1.05 : 1.00
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For the four fiscal quarters ending on or about September 30, 2016 and for each four fiscal quarter period ending on the last day of each fiscal quarter thereafter
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1.05 : 1.00
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(b) Section 6.5(b) is hereby amended in its entirety to provide as follows:
(b) Minimum EBITDA. Cause EBITDA to be not less than the amount set forth below for the corresponding period set forth below:
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Period
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EBITDA
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For the four fiscal quarters ending on or about March 31, 2015
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$16,000,000
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For the four fiscal quarters ending on or about June 30, 2015
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$12,000,000
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For the four fiscal quarters ending on or about September 30, 2015
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$12,000,000
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3. Conditions of Effectiveness. This Amendment shall become effective upon satisfaction of the following conditions precedent. Agent shall have received:
(a) a copy of this Amendment executed by Borrowers, Agent and Lenders; and
(b) an amendment fee of $25,000 which shall be charged by Agent to Borrowers’ Account.
4. Conditions Subsequent. As soon as practical, but in any event no later than July 30, 2015 (or such later date as Agent may agree to in its sole discretion), HTI shall have closed its existing money market account at JP Morgan Asset Management and transferred all funds therein to a new money market account at PNC Bank, National Association.
5. Representations and Warranties. Each Borrower hereby represents and warrants as follows:
(a) This Amendment and the Loan Agreement, as amended hereby, constitute legal, valid and binding obligations of Borrowers and are enforceable against Borrowers in accordance with their respective terms (except as such enforceability may be limited by any applicable bankruptcy, insolvency, moratorium or similar laws affecting creditors’ rights generally or general principles of equity).
(b) Upon the effectiveness of this Amendment, each Borrower hereby reaffirms all covenants, representations and warranties made in the Loan Agreement to the extent the same are not amended hereby and agrees that all such covenants, representations and warranties shall be deemed to have been remade as of the effective date of this Amendment.
(c) The execution, delivery and performance of this Amendment and all other documents in connection therewith has been duly authorized by all necessary corporate action on the part of the Borrowers, and do not contravene, violate or cause the breach of any agreement, judgment, order, law or regulation applicable to any Borrower.
(d) Upon the effectiveness of this Amendment, no Event of Default or Default has occurred and is continuing.
(e) No Borrower has any defense, counterclaim or offset with respect to the Loan Agreement.
6. Representation by Agent. Agent hereby represents that, as of the date hereof, PNC Bank, National Association is the only Lender party to the Loan Agreement.
7. Effect on the Loan Agreement.
(a) Upon the effectiveness of this Amendment, each reference in the Loan Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import shall mean and be a reference to the Loan Agreement as amended hereby.
(b) Except as specifically amended herein, the Loan Agreement, and all other documents, instruments and agreements executed and/or delivered in connection therewith, shall remain in full force and effect, and are hereby ratified and confirmed.
(c) Except as otherwise expressly contemplated hereby, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of Agent or Lenders, nor constitute a waiver of any provision of the Loan Agreement, or any other documents, instruments or agreements executed and/or delivered under or in connection therewith.
(d) This Amendment shall be an Other Document for all purposes under the Loan Agreement.
8. Release. The Borrowers hereby acknowledge and agree that: (a) to their knowledge neither they nor any of their Subsidiaries have any claim or cause of action against Agent or any Lender (or any of Agent’s or any Lender’s Affiliates, officers, directors, employees, attorneys, consultants or agents) under the Loan Agreement or the Other Documents and (b) to their knowledge Agent and each Lender have heretofore properly performed and satisfied in a timely manner all of their respective obligations to the Borrowers under the Loan Agreement and the Other Documents. Notwithstanding the foregoing, Agent and each Lender wish (and the Borrowers agree) to eliminate any possibility that any past conditions, acts, omissions, events or circumstances would impair or otherwise adversely affect any of Agent’s or such Lender’s rights, interests, security and/or remedies under the Loan Agreement and the Other Documents. Accordingly, for and in consideration of the agreements contained in this Agreement and other good and valuable consideration, the Borrowers (for themselves and their respective Subsidiaries and the successors, assigns, heirs and representatives of each of the foregoing) (each a “Releasor” and collectively, the “Releasors”) do hereby fully, finally, unconditionally and irrevocably release and forever discharge Agent, each Lender and each of their respective Affiliates, officers, directors, employees, attorneys, consultants and agents (each a “Released Party” and collectively, the “Released Parties”) from any and all debts, claims, obligations, damages, costs, attorneys’ fees, suits, demands, liabilities, actions, proceedings and causes of action, in each case, whether known or unknown, contingent or fixed, direct or indirect, and of whatever nature or description, and whether in law or in equity, under contract, tort, statute or otherwise, which any Releasor has heretofore had or now or hereafter can, shall or may have against any Released Party by reason of any act, omission or thing whatsoever done or omitted to be done, except for a Released Party’s gross negligence or willful misconduct as finally determined by a court of competent jurisdiction, prior to the date hereof arising out of, connected with or related in any way to the Loan Agreement or any Other Document, or any act, event or transaction related or attendant thereto, or Agent’s or any Lender’s agreements contained therein, or the possession, use, operation or control in connection therewith of any of the assets of the Borrowers, or the making of any advance thereunder, or the management of such advance or the Collateral.
9. Governing Law. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns and shall be governed by and construed in accordance with the laws of the State of New York.
10. Costs and Expenses. Borrowers hereby agree to pay the Agent, on demand, all reasonable costs and expenses (including reasonable attorneys’ fees and legal expenses) incurred by Agent in connection with this Agreement and any instruments or documents contemplated hereunder.
11. Headings. Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.
12. Counterparts; Electronic Transmission. This Amendment may be executed by the parties hereto in one or more counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same agreement. Any signature delivered by a party by facsimile transmission or other electronic transmission (including transmission of a PDF file) shall be deemed to be an original signature hereto.
IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first written above.
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HUTCHINSON TECHNOLOGY
INCORPORATED
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By: |
/s/ David P. Radloff ___________________ |
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Name: |
David P. Radloff |
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Title: |
Vice President and Chief Financial Officer |
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PNC BANK, NATIONAL ASSOCIATION, as
Agent and Lender
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By: |
/s/ Robert Anchundia__________________ |
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Name: |
Robert Anchundia |
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Title: |
Senior Vice President |
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Signature Page to Amendment No. 8 to Revolving Credit and Security Agreement
Exhibit 99.1
HUTCHINSON TECHNOLOGY REPORTS SECOND QUARTER RESULTS
Seasonally Lower Volume and Higher OIS Development Costs Reduce Profitability
Hutchinson, Minn., April 30, 2015 -- Hutchinson Technology Incorporated (NASDAQ: HTCH) today reported a net loss of $9.7 million, or $0.29 per share, on net sales of $62.4 million, for its fiscal second quarter ended March 29, 2015. The net loss included $430,000 of non-cash interest expense and a $140,000 foreign currency gain. Excluding these items, the company’s net loss for the fiscal 2015 second quarter was $9.4 million, or $0.28 per share.
In the preceding quarter, the company reported a net loss of $9.9 million, or $0.32 per share, on net sales of $72.4 million. The net loss included a $4.3 million loss on debt extinguishment, $860,000 of non-cash interest expense, $640,000 of foreign currency losses and $160,000 of site consolidation costs. Excluding these items, the company’s net loss for the fiscal 2015 first quarter was $3.9 million, or $0.13 per share.
Compared with the preceding quarter, the company’s suspension assembly shipments declined 17% to 101.1 million. “We had anticipated a seasonal decline in shipments in our second quarter, but the decline was steeper than we expected, primarily due to weakness in the personal computer market,” said Rick Penn, Hutchinson Technology’s president and chief executive officer. “While our current demand is still heavily weighted toward PC applications, cloud and hyperscale applications are expected to provide future growth for suspension assembly demand,” said Penn.
Gross profit in the fiscal 2015 second quarter totaled $6.3 million, or 10.0% of net sales, compared with $11.5 million, or 15.8% of net sales, in the preceding quarter. The decline resulted from the lower volume in the quarter which reduced operating leverage as the company curtailed production and managed inventory down. Despite the reduced operating leverage, Penn said that operating efficiency in the quarter remained strong in its component and assembly operations. The company’s Thailand assembly operation accounted for 85% of assembly production in the second quarter, up from 77% in the preceding quarter.
Regarding its shape memory alloy (SMA) optical image stabilization (OIS) actuator, Penn said the company continues to focus on optimizing manufacturing processes and refining product designs in order to increase acceptance among smartphone and camera module manufacturers. “As we work to win new programs, customer interest in our SMA technology is encouraging,” said Penn. “The smartphone camera market is in the early phases of adopting OIS technology, and as we’ve stated previously, we are still in the initial stages of developing this new opportunity.” Total research and development expenses increased to $7.1 million in the fiscal 2015 second quarter compared to $6.0 million in the preceding quarter, with the increase attributable to additional costs for OIS product and process development.
Cash and investments at the end of the fiscal 2015 second quarter totaled $43.6 million compared with $34.5 million at the end of the preceding quarter. Cash generated by operations in the quarter totaled $15.6 million and included the remainder of an advance payment from a customer and other working capital improvements. Capital spending totaled $8.2 million in the second quarter.
“The seasonal weakness that we saw in the March quarter has continued into the June quarter, with an extremely slow start to the quarter as customers have reacted to lower disk drive demand by reducing their build plans and their levels of suspension inventory,” said Penn. As a result, the company currently expects fiscal 2015 third quarter suspension assembly shipments to be down approximately 10% compared with the second quarter and average selling price to be 58 to 59 cents per part. Due to the lower volume, third quarter gross profit is also expected to decline compared to the second quarter.
“The current weakness in demand is disappointing but consistent with seasonal demand and production in the disk drive industry and, in particular, the weight that personal computing applications still carry in our mix of business,” said Penn. “In the second half of the calendar year, we expect higher volume due to increased worldwide suspension assembly demand and an improving position on customers’ disk drive programs. We’re also encouraged by the level of development activity that is occurring with our customers across all of the disk drive segments. Beyond our core business, our SMA OIS product presents an attractive opportunity to extend our precision manufacturing expertise into a new market.”
Hutchinson Technology to Host Conference Call
The company will conduct a conference call and webcast for investors beginning at 4:00 p.m. Central Time today. Individual investors and news media may participate in the conference call live via the webcast, which will be available through the Investor Relations page on Hutchinson Technology’s web site at www.htch.com/investors. Webcast participants will need to complete a brief registration form and should allow extra time before the webcast begins to register and, if necessary, download and install audio software.
About Hutchinson Technology
Hutchinson Technology is a global supplier of critical precision component technologies. As a key supplier of suspension assemblies for disk drives, we help customers improve overall disk drive performance and meet the demands of an ever-expanding digital universe. Through our new business development initiatives, we focus on leveraging our unique precision manufacturing capabilities in new markets to improve product performance, reduce size, lower cost, and reduce time to market.
Cautionary Note Regarding Forward-Looking Statements
This announcement contains forward-looking statements regarding demand for and shipments of suspension assemblies, product mix, pricing, market position, operating performance, market adoption and production of OIS actuators and financial results. The company does not undertake to update its forward-looking statements. These statements involve risks and uncertainties. The company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of changes in market demand and market consumption of disk drives or suspension assemblies, changes in demand for our products, market acceptance of new products, the company’s ability to produce suspension assemblies at levels of precision, quality, volume and cost its customers require, changes in product mix, changes in customers yields, changes in storage capacity requirements, changes in expected data density, changes in the company’s ability to operate its assembly operation in Thailand and other factors described from time to time in the company's reports filed with the Securities and Exchange Commission.
| INVESTOR CONTACT: |
MEDIA CONTACT: |
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| Chuck Ives |
Connie Pautz |
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| Hutchinson Technology Inc. |
Hutchinson Technology Inc. |
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| 320-587-1605 |
320-587-1823 |
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Hutchinson Technology Incorporated
Condensed Consolidated Statements of Operations - Unaudited
(In thousands, except per share data)
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Thirteen Weeks Ended
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Twenty-Six Weeks Ended
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March 29,
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March 30,
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March 29,
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March 30,
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2015
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2014
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2015
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2014
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Net sales
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$ |
62,359 |
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$ |
60,699 |
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$ |
134,782 |
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$ |
131,011 |
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Cost of sales
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56,097 |
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54,836 |
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117,056 |
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119,618 |
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Gross profit
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6,262 |
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5,863 |
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17,726 |
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11,393 |
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Research and development expenses
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7,097 |
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4,389 |
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13,139 |
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8,331 |
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Selling, general and administrative expenses
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5,848 |
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6,212 |
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11,833 |
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12,075 |
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Severance and site consolidation expenses
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- |
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650 |
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159 |
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1,242 |
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Asset impairment
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- |
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- |
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- |
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4,470 |
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Loss from operations
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(6,683 |
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(5,388 |
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(7,405 |
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(14,725 |
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Other income (expense), net
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267 |
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656 |
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(288 |
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(2,417 |
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Loss on extinguishment of long-term debt
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- |
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- |
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(4,318 |
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- |
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Interest income
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15 |
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10 |
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19 |
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35 |
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Interest expense
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(3,270 |
) |
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(3,959 |
) |
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(7,723 |
) |
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(7,736 |
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Loss before income taxes
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(9,671 |
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(8,681 |
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(19,715 |
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(24,843 |
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Provision (benefit) for income taxes
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32 |
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25 |
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(113 |
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(791 |
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Net loss
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$ |
(9,703 |
) |
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$ |
(8,706 |
) |
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$ |
(19,602 |
) |
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$ |
(24,052 |
) |
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Basic loss per share
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$ |
(0.29 |
) |
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$ |
(0.31 |
) |
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$ |
(0.61 |
) |
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$ |
(0.86 |
) |
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Diluted loss per share
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|
$ |
(0.29 |
) |
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$ |
(0.31 |
) |
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$ |
(0.61 |
) |
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$ |
(0.86 |
) |
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Weighted-average common shares outstanding
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33,270 |
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28,047 |
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31,910 |
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27,923 |
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Weighted-average diluted shares outstanding
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33,270 |
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28,047 |
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31,910 |
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|
27,923 |
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Hutchinson Technology Incorporated
Condensed Consolidated Balance Sheets - Unaudited
(In thousands, except shares data)
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March 29,
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September 28,
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2015
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2014
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ASSETS
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Current assets:
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Cash and cash equivalents
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$ |
42,596 |
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$ |
37,939 |
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Short-term investments - restricted
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965 |
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965 |
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Trade receivables, net
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15,781 |
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23,971 |
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Other receivables
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2,451 |
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2,894 |
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Inventories
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47,402 |
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48,978 |
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Other current assets
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4,258 |
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|
4,323 |
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Total current assets
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113,453 |
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119,070 |
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Property, plant and equipment, net
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152,074 |
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153,169 |
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Other assets
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4,744 |
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|
2,926 |
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Total assets
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$ |
270,271 |
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$ |
275,165 |
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LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Current debt, net of discount
|
|
$ |
3,000 |
|
|
$ |
48,731 |
|
|
Current portion of capital lease obligation
|
|
|
2,470 |
|
|
|
2,109 |
|
|
Accounts payable
|
|
|
17,245 |
|
|
|
19,055 |
|
|
Accrued expenses
|
|
|
12,809 |
|
|
|
6,406 |
|
|
Accrued compensation
|
|
|
9,575 |
|
|
|
9,312 |
|
|
Total current liabilities
|
|
|
45,099 |
|
|
|
85,613 |
|
|
Long-term debt, net of discount
|
|
|
122,983 |
|
|
|
87,168 |
|
|
Capital lease obligation
|
|
|
5,294 |
|
|
|
4,464 |
|
|
Other long-term liabilities
|
|
|
3,718 |
|
|
|
3,092 |
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
|
|
Common stock $.01 par value, 100,000,000 shares
|
|
|
|
|
|
|
|
|
|
authorized, 33,465,000 and 28,102,000
|
|
|
|
|
|
|
|
|
|
issued and outstanding
|
|
|
335 |
|
|
|
281 |
|
|
Additional paid-in capital
|
|
|
451,388 |
|
|
|
433,308 |
|
|
Accumulated other comprehensive loss
|
|
|
(726 |
) |
|
|
(543 |
) |
|
Accumulated loss
|
|
|
(357,820 |
) |
|
|
(338,218 |
) |
|
Total shareholders' equity
|
|
|
93,177 |
|
|
|
94,828 |
|
|
Total liabilities and shareholders' equity
|
|
$ |
270,271 |
|
|
$ |
275,165 |
|
Hutchinson Technology Incorporated
Condensed Consolidated Statements of Cash Flows - Unaudited
| |
|
Twenty-Six Weeks Ended
|
| |
|
March 29,
|
|
|
March 30,
|
|
| |
|
2015
|
|
|
2014
|
|
|
Operating activities:
|
|
|
|
|
|
|
|
Net loss
|
|
$ |
(19,602 |
) |
|
$ |
(24,052 |
) |
|
Adjustments to reconcile net loss to
|
|
|
|
|
|
|
|
|
|
cash provided by (used for) operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
16,419 |
|
|
|
19,927 |
|
|
Stock-based compensation
|
|
|
661 |
|
|
|
592 |
|
|
Loss on disposal of assets
|
|
|
39 |
|
|
|
76 |
|
|
Asset impairment charge
|
|
|
- |
|
|
|
4,470 |
|
|
Non-cash interest expense
|
|
|
1,290 |
|
|
|
1,633 |
|
|
Loss on extinguishment of debt
|
|
|
4,318 |
|
|
|
- |
|
|
Severance and site consolidation expenses
|
|
|
(27 |
) |
|
|
366 |
|
|
Changes in operating assets and liabilities
|
|
|
15,599 |
|
|
|
(3,200 |
) |
|
Cash provided by (used for) operating activities
|
|
|
18,697 |
|
|
|
(188 |
) |
| |
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(14,505 |
) |
|
|
(10,480 |
) |
|
Proceeds from sale / leaseback of equipment
|
|
|
2,408 |
|
|
|
6,395 |
|
|
Proceeds from sale of building
|
|
|
- |
|
|
|
4,364 |
|
|
Change in restricted cash
|
|
|
(974 |
) |
|
|
1,549 |
|
|
Purchases of marketable securities
|
|
|
(965 |
) |
|
|
(1,200 |
) |
|
Sales / maturities of marketable securities
|
|
|
965 |
|
|
|
1,200 |
|
|
Cash (used for) provided by investing activities
|
|
|
(13,071 |
) |
|
|
1,828 |
|
| |
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
|
60 |
|
|
|
26 |
|
|
Repayments of capital lease
|
|
|
(1,113 |
) |
|
|
(732 |
) |
|
Repayments of revolving credit line
|
|
|
(76,523 |
) |
|
|
(116,252 |
) |
|
Proceeds from revolving credit line
|
|
|
66,990 |
|
|
|
114,272 |
|
|
Repayments of debt
|
|
|
(39,822 |
) |
|
|
- |
|
|
Proceeds from private placement of debt
|
|
|
37,500 |
|
|
|
- |
|
|
Proceeds from term loan
|
|
|
15,000 |
|
|
|
- |
|
|
Debt refinancing costs
|
|
|
(3,175 |
) |
|
|
- |
|
|
Cash used for financing activities
|
|
|
(1,083 |
) |
|
|
(2,686 |
) |
| |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
114 |
|
|
|
679 |
|
| |
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
4,657 |
|
|
|
(367 |
) |
| |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
37,939 |
|
|
|
39,403 |
|
| |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
$ |
42,596 |
|
|
$ |
39,036 |
|
Hutchinson Technology Incorporated
Reconciliation of Non-GAAP to GAAP Financial Measures - Unaudited
(In thousands, except per share data)
| |
|
Thirteen Weeks Ended
|
| |
|
March 29,
|
|
|
December 28,
|
|
|
March 30,
|
|
| |
|
2015
|
|
|
2014
|
|
|
2014
|
|
| |
|
|
|
|
|
|
|
|
|
|
Net loss - GAAP
|
|
$ |
(9,703 |
) |
|
$ |
(9,898 |
) |
|
$ |
(8,706 |
) |
|
Subtract foreign currency gain
|
|
|
(139 |
) |
|
|
- |
|
|
|
(576 |
) |
|
Add foreign currency loss
|
|
|
- |
|
|
|
640 |
|
|
|
- |
|
|
Add loss on debt extinguishment
|
|
|
- |
|
|
|
4,318 |
|
|
|
- |
|
|
Add non-cash interest expenses
|
|
|
431 |
|
|
|
858 |
|
|
|
834 |
|
|
Add site consolidation and severance expenses
|
|
|
- |
|
|
|
159 |
|
|
|
650 |
|
|
Net loss - Adjusted
|
|
$ |
(9,411 |
) |
|
$ |
(3,923 |
) |
|
$ |
(7,798 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share – GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss income per share
|
|
$ |
(0.29 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.31 |
) |
|
Diluted loss income per share
|
|
$ |
(0.29 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.31 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share – Adjusted:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per share
|
|
$ |
(0.28 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.28 |
) |
|
Diluted loss per share
|
|
$ |
(0.28 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.28 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common and common equivalent shares outstanding:
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
33,267 |
|
|
|
30,548 |
|
|
|
28,047 |
|
|
Diluted
|
|
|
33,267 |
|
|
|
30,548 |
|
|
|
28,047 |
|
|
Net loss per common share basic and diluted, is calculated by dividing net loss by weighted average common and common equivalent shares outstanding basic and diluted, respectively.
|
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