HispanicBusiness

SUN HYDRAULICS CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONS(in thousands except per share data)                                                       Three Months Ended                                                      March 30,   March 31,                                                        2013        2012Net sales                                            $   51,060  $   55,274Cost of sales                                            30,556      33,056                                                     ----------  ----------Gross profit                                             20,504      22,218Selling, engineering and administrative expenses          6,572       6,954                                                     ----------  ----------Operating income                                         13,932      15,264Interest income, net                                       (196)       (341)Foreign currency transaction gain, net                     (120)        (11)Miscellaneous (income) expense, net                          94        (125)                                                     ----------  ----------Income before income taxes                               14,154      15,741Income tax provision                                      4,579       5,118                                                     ----------  ----------Net income                                           $    9,575  $   10,623                                                     ==========  ==========Basic net income per common share                    $     0.37  $     0.41Weighted average basic shares outstanding                26,131      25,785Diluted net income per common share                  $     0.37  $     0.41Weighted average diluted shares outstanding              26,132      25,834Dividends declared per share                         $    0.180  $    0.210SUN HYDRAULICS CORPORATIONCONSOLIDATED BALANCE SHEETS(in thousands)                                                                   December                                                     March 30,       31,                                                        2013         2012AssetsCurrent assets:  Cash and cash equivalents                         $    40,575  $    34,478  Restricted cash                                   $       315          329  Accounts receivable, net of allowance for   doubtful accounts of $127 and $124                    18,926       14,394  Inventories                                            12,510       12,559  Income taxes receivable                                     -          728  Deferred income taxes                                     412          248  Marketable securities                                  35,367       37,700  Other current assets                                    3,084        2,009                                                    -----------  -----------    Total current assets                                111,189      102,445Property, plant and equipment, net                       65,948       64,672Goodwill                                                  4,402        4,472Other assets                                              3,341        3,532                                                    -----------  -----------Total assets                                        $   184,880  $   175,121                                                    ===========  ===========Liabilities and Shareholders' EquityCurrent liabilities:  Accounts payable                                  $     5,163  $     4,606  Accrued expenses and other liabilities                  3,944        7,641  Income taxes payable                                    3,430            -  Dividends payable                                       2,360            -                                                    -----------  -----------    Total current liabilities                            14,897       12,247Deferred income taxes                                     7,397        7,230Other liabilities                                           373          371                                                    -----------  -----------    Total liabilities                                    22,667       19,848Shareholders' equity:  Common stock                                               26           26  Capital in excess of par value                         61,901       57,402  Retained earnings                                     102,106       97,242  Accumulated other comprehensive income (loss)          (1,820)         603                                                    -----------  -----------    Total shareholders' equity                          162,213      155,273                                                    -----------  -----------Total liabilities and shareholders' equity          $   184,880  $   175,121                                                    ===========  ===========SUN HYDRAULICS CORPORATIONCONSOLIDATED STATEMENT OF CASH FLOWS(in thousands)                                                       Three Months Ended                                                      March 30,   March 31,                                                        2013        2012Cash flows from operating activities:Net income                                           $    9,575  $   10,623Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization                             1,796       1,793(Gain) loss on disposal of assets                            (2)        (21)Unrealized foreign exchange gain                              -         (19)Stock-based compensation expense                            691         641Allowance for doubtful accounts                               3          18Provision for deferred income taxes                           3           3(Increase) decrease in:  Accounts receivable                                    (4,535)     (5,493)  Inventories                                                49      (1,370)  Income taxes receivable                                   728         120  Other current assets                                   (1,075)       (646)  Other assets, net                                         136          93Increase (decrease) in:  Accounts payable                                          557       1,233  Accrued expenses and other liabilities                   (156)        701  Income taxes payable                                    3,430       3,964  Other noncurrent liabilities                                2          84                                                     ----------  ----------Net cash from operating activities                       11,202      11,724Cash flows used in investing activities:Capital expenditures                                     (3,365)     (1,786)Proceeds from dispositions of equipment                       -          21Purchases of marketable securities                       (6,997)     (4,638)Proceeds from sale of marketable securities               8,809         712                                                     ----------  ----------Net cash used in investing activities                    (1,553)     (5,691)Cash flows used in financing activities:Proceeds from stock issued                                  267         142Dividends to shareholders                                (2,351)     (5,437)Change in restricted cash                                    14           2                                                     ----------  ----------Net cash used in financing activities                    (2,070)     (5,293)Effect of exchange rate changes on cash andcash equivalents                                         (1,482)      1,335                                                     ----------  ----------Net increase (decrease) in cash and cash equivalents      6,097       2,075Cash and cash equivalents, beginning of period           34,478      51,262                                                     ----------  ----------Cash and cash equivalents, end of period             $   40,575  $   53,337                                                     ==========  ==========Supplemental disclosure of cash flow information:Cash paid:  Income taxes                                       $      418  $    1,032Supplemental disclosure of noncash transactions:Common stock issued for shared distribution through accrued expenses and other liabilities              $    3,247  $    3,753Common stock issued for deferred director's compensation through other noncurrent liabilities   $      294  $        -