MTS SYSTEMS CORP

CIK:0000068709|SEC Filings

Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Revenue
Revenue	$ 198,804	$ 205,843
Cost of Sales
Total cost of sales	124,389	129,234
Gross profit	74,415	76,609
Operating expenses
Selling and marketing	28,422	32,719
General and administrative	34,159	21,693
Research and development	7,203	7,039
Total operating expenses	69,784	61,451
Income from operations	4,631	15,158
Interest income (expense), net	(8,467)	(8,272)
Other income (expense), net	6,413	(431)
Income before income taxes	2,577	6,455
Income tax provision (benefit)	862	1,149
Net income	$ 1,715	$ 5,306
Basic
Earnings per share (in dollars per share)	$ 0.09	$ 0.28
Weighted average common shares outstanding (in shares)	19,312	19,146
Diluted
Earnings per share (in dollars per share)	$ 0.09	$ 0.27
Weighted average common shares outstanding (in shares)	19,476	19,369
Dividends declared per share (in dollars per share)	$ 0	$ 0.30
Product
Revenue
Revenue	$ 174,740	$ 178,858
Cost of Sales
Cost of goods and services sold	109,558	111,639
Service
Revenue
Revenue	24,064	26,985
Cost of Sales
Cost of goods and services sold	$ 14,831	$ 17,595

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Cash Flows from Operating Activities
Net income	$ 1,715	$ 5,306
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Stock-based compensation	2,678	2,167
Fair value adjustment to acquired inventory	0	540
Net periodic pension benefit cost	375	462
Depreciation	5,612	5,662
Amortization	5,655	4,785
Accretion of contingent consideration	468	0
(Gain) loss on sale or disposal of property and equipment and intangible assets	(5,512)	612
Amortization of debt issuance costs	815	867
Deferred income taxes	121	66
Bad debt provision (recovery), net	(109)	(460)
Changes in operating assets and liabilities
Accounts receivable and unbilled accounts receivable	14,132	4,983
Inventories, net	(4,108)	(9,716)
Prepaid expenses	(4,616)	(177)
Accounts payable	7,202	913
Accrued payroll and related costs	2,924	(12,410)
Advance payments from customers	(1,522)	(7,512)
Accrued warranty costs	(60)	572
Other assets and liabilities	(6,516)	(2,403)
Net Cash Provided by (Used in) Operating Activities	19,254	(5,743)
Cash Flows from Investing Activities
Purchases of property and equipment	(2,606)	(10,572)
Proceeds from sale of property and equipment	8,752	0
Net Cash Provided by (Used in) Investing Activities	6,146	(10,572)
Cash Flows from Financing Activities
Payment of long-term debt	(1,335)	(1,283)
Payment of debt issuance costs for long-term debt	0	(88)
Payment of debt issuance costs for revolving credit facility	0	(564)
Receipts under short-term borrowings	25,000	50,000
Payments under short-term borrowings	(32,000)	(20,000)
Cash dividends	0	(5,739)
Proceeds from exercise of stock options and employee stock purchase plan	4,323	41
Payments to purchase and retire common stock	(1,903)	(835)
Net Cash Provided by (Used in) Financing Activities	(5,915)	21,532
Effect of Exchange Rate Changes on Cash and Cash Equivalents	4,186	917
Cash and Cash Equivalents
Increase (decrease) in cash and cash equivalents during the period	23,671	6,134
Cash and cash equivalents balance, beginning of period	88,913	57,937
Cash and cash equivalents balance, end of period	112,584	64,071
Cash paid during the period for
Interest	2,672	1,918
Income taxes	2,509	2,069
Non-cash investing and financing activities
Dividends declared not yet paid	$ 0	$ 5,704

Consolidated Balance Sheets - USD ($)
$ in Thousands

Jan. 02, 2021

Oct. 03, 2020

^[1]

Current assets

Cash and cash equivalents

$ 112,584

$ 88,913

Accounts receivable, net of allowance for doubtful accounts of $3,884 and $4,528, respectively

123,524

128,733

Unbilled accounts receivable, net

80,673

84,685

Inventories, net

179,643

174,241

Prepaid expenses and other current assets

32,020

24,429

Total current assets

528,444

501,001

Property and equipment, net

90,246

95,110

Goodwill

230,623

228,640

Intangible assets, net

292,933

295,095

Other long-term assets

20,671

23,313

Deferred income taxes

5,326

7,072

Total assets

1,168,243

1,150,231

Current liabilities

Short-term borrowings

10,000

17,000

Current maturities of long-term debt, net

25,857

25,843

Accounts payable

59,841

51,562

Accrued payroll and related costs

43,754

39,849

Advance payments from customers

84,491

78,774

Accrued warranty costs

5,926

5,974

Accrued income taxes

4,547

4,782

Contingent consideration

28,131

26,497

Other accrued liabilities

51,113

46,570

Total current liabilities

313,660

296,851

Long-term debt, less current maturities, net

541,228

541,730

Deferred income taxes

34,310

35,513

Non-current accrued income taxes

5,354

4,819

Defined benefit pension plan obligation

15,579

15,982

Non-current accrued payroll and related costs

3,847

5,273

Other long-term liabilities

21,302

28,880

Total liabilities

935,280

929,048

Shareholders' Equity

Common stock, $0.25 par value; 64,000 shares authorized: 19,448 and 19,264 shares issued and outstanding as of January 2, 2021 and October 3, 2020, respectively

4,862

4,816

Additional paid-in capital

194,602

189,580

Retained earnings

33,483

31,768

Accumulated other comprehensive income (loss)

(4,981)

Total shareholders' equity

232,963

221,183

Total liabilities and shareholders' equity

$ 1,168,243

$ 1,150,231

[1]	The Consolidated Balance Sheet as of October 3, 2020 has been derived from the audited consolidated financial statements at that date.The accompanying Notes to Consolidated Financial Statements (Unaudited) are an integral part of these consolidated financial statements.