Delaware
(State or Other Jurisdiction
of Incorporation)
|
001-33155
(Commission File No.)
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04-3444218
(IRS Employer
Identification No.)
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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)) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Common Stock, par value $0.0001 per share | IPGP | Nasdaq Global Select Market |
Exhibit Number | Exhibit Description | |||||||
Exhibit 99.1 | ||||||||
Exhibit 104 | Inline XBRL for the cover page of this Current Report on Form 8-K. | |||||||
IPG PHOTONICS CORPORATION | ||||||||||||||
July 30, 2024 | By: | /s/ Timothy P.V. Mammen | ||||||||||||
Timothy P.V. Mammen | ||||||||||||||
Senior Vice President and Chief Financial Officer |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
(In millions, except per share data and percentages) | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||||||||||||||||||||
Revenue | $ | 257.6 | $ | 340.0 | (24) | % | $ | 509.7 | $ | 687.1 | (26) | % | ||||||||||||||||||||||||||
Gross margin | 37.3 | % | 43.4 | % | 38.0 | % | 42.9 | % | ||||||||||||||||||||||||||||||
Operating income | $ | 12.0 | $ | 72.1 | (83) | % | $ | 31.1 | $ | 147.5 | (79) | % | ||||||||||||||||||||||||||
Operating margin | 4.7 | % | 21.2 | % | 6.1 | % | 21.5 | % | ||||||||||||||||||||||||||||||
Net income attributable to IPG Photonics Corporation | $ | 20.2 | $ | 62.3 | (68) | % | $ | 44.3 | $ | 122.5 | (64) | % | ||||||||||||||||||||||||||
Earnings per diluted share | $ | 0.45 | $ | 1.31 | (66) | % | $ | 0.97 | $ | 2.57 | (62) | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||||
Net sales | $ | 257,645 | $ | 339,971 | $ | 509,654 | $ | 687,145 | ||||||||||||||||||
Cost of sales | 161,459 | 192,280 | 315,932 | 392,516 | ||||||||||||||||||||||
Gross profit | 96,186 | 147,691 | 193,722 | 294,629 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Sales and marketing | 22,487 | 20,187 | 45,485 | 41,275 | ||||||||||||||||||||||
Research and development | 27,487 | 23,512 | 56,868 | 46,282 | ||||||||||||||||||||||
General and administrative | 31,602 | 29,660 | 62,760 | 59,788 | ||||||||||||||||||||||
Gain on sale of assets | (674) | — | (7,450) | — | ||||||||||||||||||||||
Restructuring charges, net |
— | 963 | — | 1,144 | ||||||||||||||||||||||
Loss (gain) on foreign exchange | 3,244 | 1,306 | 4,919 | (1,349) | ||||||||||||||||||||||
Total operating expenses | 84,146 | 75,628 | 162,582 | 147,140 | ||||||||||||||||||||||
Operating income | 12,040 | 72,063 | 31,140 | 147,489 | ||||||||||||||||||||||
Other income, net: | ||||||||||||||||||||||||||
Interest income, net | 12,778 | 9,264 | 26,955 | 16,797 | ||||||||||||||||||||||
Other income, net | 194 | 285 | 519 | 616 | ||||||||||||||||||||||
Total other income | 12,972 | 9,549 | 27,474 | 17,413 | ||||||||||||||||||||||
Income before provision of income taxes | 25,012 | 81,612 | 58,614 | 164,902 | ||||||||||||||||||||||
Provision for income taxes | 4,858 | 19,291 | 14,361 | 42,446 | ||||||||||||||||||||||
Net income attributable to IPG Photonics Corporation | $ | 20,154 | $ | 62,321 | $ | 44,253 | $ | 122,456 | ||||||||||||||||||
Net income attributable to IPG Photonics Corporation per share: | ||||||||||||||||||||||||||
Basic | $ | 0.45 | $ | 1.32 | $ | 0.97 | $ | 2.58 | ||||||||||||||||||
Diluted | $ | 0.45 | $ | 1.31 | $ | 0.97 | $ | 2.57 | ||||||||||||||||||
Weighted average common shares outstanding: |
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Basic | 44,918 | 47,316 | 45,439 | 47,429 | ||||||||||||||||||||||
Diluted | 45,012 | 47,453 | 45,601 | 47,618 |
June 30, | December 31, | |||||||||||||
2024 | 2023 | |||||||||||||
(In thousands, except share and per share data) |
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ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 720,540 | $ | 514,674 | ||||||||||
Short-term investments | 343,363 | 662,807 | ||||||||||||
Accounts receivable, net | 176,153 | 219,053 | ||||||||||||
Inventories | 400,839 | 453,874 | ||||||||||||
Prepaid income taxes | 30,208 | 26,038 | ||||||||||||
Prepaid expenses and other current assets | 46,849 | 38,208 | ||||||||||||
Total current assets | 1,717,952 | 1,914,654 | ||||||||||||
Deferred income taxes, net | 88,865 | 88,788 | ||||||||||||
Goodwill | 38,278 | 38,540 | ||||||||||||
Intangible assets, net | 23,423 | 26,234 | ||||||||||||
Property, plant and equipment, net | 593,136 | 602,257 | ||||||||||||
Other assets | 33,777 | 28,425 | ||||||||||||
Total assets | $ | 2,495,431 | $ | 2,698,898 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 26,232 | $ | 28,618 | ||||||||||
Accrued expenses and other current liabilities | 161,229 | 181,350 | ||||||||||||
Income taxes payable | 3,022 | 4,893 | ||||||||||||
Total current liabilities | 190,483 | 214,861 | ||||||||||||
Other long-term liabilities and deferred income taxes | 51,578 | 68,652 | ||||||||||||
Total liabilities | 242,061 | 283,513 | ||||||||||||
Commitments and contingencies | ||||||||||||||
IPG Photonics Corporation equity: | ||||||||||||||
Common stock, $0.0001 par value, 175,000,000 shares authorized; 56,584,223 and 44,225,282 shares issued and outstanding, respectively, at June 30, 2024; 56,317,438 and 46,320,671 shares issued and outstanding, respectively, at December 31, 2023. |
6 | 6 | ||||||||||||
Treasury stock, at cost, 12,358,941 and 9,996,767 shares held at June 30, 2024 and December 31, 2023, respectively. |
(1,373,525) | (1,161,505) | ||||||||||||
Additional paid-in capital | 1,014,094 | 994,020 | ||||||||||||
Retained earnings | 2,839,647 | 2,795,394 | ||||||||||||
Accumulated other comprehensive loss | (226,852) | (212,530) | ||||||||||||
Total IPG Photonics Corporation equity | 2,253,370 | 2,415,385 | ||||||||||||
Total liabilities and equity | $ | 2,495,431 | $ | 2,698,898 |
Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | |||||||||||||
(In thousands) | ||||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ | 44,253 | $ | 122,456 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization | 31,506 | 35,343 | ||||||||||||
Provisions for inventory, warranty & bad debt | 30,365 | 31,846 | ||||||||||||
Other | (8) | 13,615 | ||||||||||||
Changes in assets and liabilities that provided (used) cash, net of acquisitions: |
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Accounts receivable and accounts payable | 39,736 | (31,348) | ||||||||||||
Inventories | 17,041 | (12,103) | ||||||||||||
Other | (54,839) | (55,863) | ||||||||||||
Net cash provided by operating activities | 108,054 | 103,946 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||
Purchases of and deposits on property, plant and equipment | (52,270) | (59,139) | ||||||||||||
Proceeds from sales of property, plant and equipment | 28,274 | 1,740 | ||||||||||||
Purchases of short-term investments | (301,541) | (583,347) | ||||||||||||
Proceeds from short-term investments | 633,993 | 549,879 | ||||||||||||
Other | 188 | 326 | ||||||||||||
Net cash provided by (used in) investing activities |
308,644 | (90,541) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Principal payments on long-term borrowings | — | (16,031) | ||||||||||||
Proceeds from issuance of common stock under employee stock option and purchase plans less payments for taxes related to net share settlement of equity awards | 1,792 | (731) | ||||||||||||
Purchase of treasury stock, at cost | (212,020) | (113,031) | ||||||||||||
Net cash used in financing activities | (210,228) | (129,793) | ||||||||||||
Effect of changes in exchange rates on cash and cash equivalents | (604) | (8,750) | ||||||||||||
Net increase (decrease) in cash and cash equivalents |
205,866 | (125,138) | ||||||||||||
Cash and cash equivalents — Beginning of period | 514,674 | 698,209 | ||||||||||||
Cash and cash equivalents — End of period | 720,540 | 573,071 | ||||||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||
Cash paid for interest | $ | 94 | $ | 947 | ||||||||||
Cash paid for income taxes | $ | 34,165 | $ | 58,178 | ||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Amortization of intangible assets: | ||||||||||||||||||||||||||
Cost of sales | $ | 440 | $ | 564 | $ | 928 | $ | 1,128 | ||||||||||||||||||
Sales and marketing | 937 | 1,457 | 1,874 | 2,914 | ||||||||||||||||||||||
Total amortization of intangible assets | $ | 1,377 | $ | 2,021 | $ | 2,802 | $ | 4,042 | ||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Cost of sales | $ | 2,191 | $ | 2,515 | $ | 4,266 | $ | 5,161 | ||||||||||||||||||
Sales and marketing | 1,455 | 1,390 | 2,957 | 2,683 | ||||||||||||||||||||||
Research and development | 2,451 | 2,045 | 5,082 | 3,841 | ||||||||||||||||||||||
General and administrative | 2,473 | 3,757 | 5,997 | 7,633 | ||||||||||||||||||||||
Total stock-based compensation | 8,570 | 9,707 | 18,302 | 19,318 | ||||||||||||||||||||||
Tax effect of stock-based compensation | (1,847) | (2,148) | (3,987) | (4,244) | ||||||||||||||||||||||
Net stock-based compensation | $ | 6,723 | $ | 7,559 | $ | 14,315 | $ | 15,074 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Excess tax (detriment) benefit on stock-based compensation |
$ | (244) | $ | 22 | $ | (3,893) | $ | (1,686) | ||||||||||||||||||