HUTCHINSON TECHNOLOGY INC

CIK:0000772897|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 26, 2016	Jun. 28, 2015	Jun. 26, 2016	Jun. 28, 2015
Net sales	$ 53,196	$ 54,675	$ 171,283	$ 189,457
Cost of sales	46,062	49,846	146,716	166,902
Gross profit	7,134	4,829	24,567	22,555
Research and development expenses	5,577	5,165	17,036	18,304
Selling, general and administrative expenses	4,724	5,726	15,836	17,559
Merger related expenses	444	0	4,819	0
Severance and site consolidation expenses (Note 11)	0	0	503	159
Loss from operations	(3,611)	(6,062)	(13,627)	(13,467)
Other income (expense), net	30	(1,004)	1,118	(1,292)
Loss on extinguishment of debt (Note 7)	0	0	0	(4,318)
Interest income	20	7	52	26
Interest expense	(3,303)	(3,086)	(9,945)	(10,809)
Loss before income taxes	(6,864)	(10,145)	(22,402)	(29,860)
(Benefit) provision for income taxes (Note 13)	(17)	15	(630)	(98)
Net loss	$ (6,847)	$ (10,160)	$ (21,772)	$ (29,762)
Basic loss per share	$ (0.2)	$ (0.3)	$ (0.64)	$ (0.92)
Diluted loss per share	$ (0.2)	$ (0.3)	$ (0.64)	$ (0.92)
Weighted-average common shares outstanding	33,917	33,493	33,832	32,437
Weighted-average diluted shares outstanding	33,917	33,493	33,832	32,437

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 26, 2016	Jun. 28, 2015
OPERATING ACTIVITIES:
Net loss	$ (21,772)	$ (29,762)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization	21,749	24,134
Stock-based compensation	931	1,041
(Gain) loss on disposal of assets	(473)	63
Non-cash interest expense	1,088	1,622
Loss on extinguishment of debt (Note 7)	0	4,318
Severance and site consolidation expenses (Note 11)	153	(27)
Changes in operating assets and liabilities	13,063	9,463
Cash provided by operating activities	14,739	10,852
INVESTING ACTIVITIES:
Capital expenditures	(5,684)	(17,344)
Proceeds from the sale and sale/leaseback of equipment	816	3,111
Change in restricted cash (Note 3)	(447)	19
Purchases of marketable securities	(1,012)	(965)
Sales/maturities of marketable securities	1,471	965
Cash used for investing activities	(4,856)	(14,214)
FINANCING ACTIVITIES:
Proceeds from issuance of common stock	69	60
Repayments of capital lease	(1,845)	(1,749)
Repayments of revolving credit line	(38,494)	(100,389)
Proceeds from revolving credit line	38,494	93,856
Repayments of debt	(2,250)	(40,572)
Proceeds from private placement of debt	0	37,500
Proceeds from term loan	0	15,000
Debt refinancing costs	0	(3,175)
Cash (used for) provided by financing activities	(4,026)	531
Effect of exchange rate changes on cash	1,944	279
Net increase (decrease) in cash and cash equivalents	7,801	(2,552)
Cash and cash equivalents at beginning of period	39,454	37,939
Cash and cash equivalents at end of period	47,255	35,387
Supplemental cash flow disclosure:
Cash interest paid (net of amount capitalized)	7,322	7,267
Income taxes paid	25	9
Assets acquired through capital lease	263	3,051
Non-cash exchange of debt for equity (Note 7)	$ 0	$ 15,000

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 26, 2016	Sep. 27, 2015
Current assets:
Cash and cash equivalents (Note 3)	$ 47,255	$ 39,454
Short-term investments restricted (Note 4)	506	965
Trade receivables, net	11,664	15,860
Other receivables	1,486	2,707
Inventories	32,586	40,148
Other current assets	3,535	3,588
Total current assets	97,032	102,722
Property, plant and equipment, net	117,280	134,509
Other assets	3,508	4,281
Total assets	217,820	241,512
Current liabilities:
Current debt, net of discount (Note 7)	86,494	3,000
Current portion of capital lease obligation	2,178	2,188
Accounts payable	14,818	19,877
Accrued compensation	8,908	9,388
Accrued expenses and other	7,560	4,239
Accrued interest	3,639	2,838
Total current liabilities	123,597	41,530
Long-term debt, net of discount (Note 7)	37,500	122,156
Capital lease obligation	2,793	4,220
Other long-term liabilities	3,028	2,731
Commitments and contingencies (Notes 7, 8, and 14)
Shareholders’ equity:
Common stock, $.01 par value, 100,000,000 shares authorized, 33,922,000 and 33,540,000 issued and outstanding	339	335
Additional paid-in capital (Note 7)	453,161	452,165
Accumulated other comprehensive loss	(3,510)	(4,309)
Accumulated loss	(399,088)	(377,316)
Total shareholders’ equity	50,902	70,875
Total liabilities and shareholders’ equity	$ 217,820	$ 241,512