Bell Industries Reports 2006 First Quarter Results
May 15 2006 - 5:00PM
Business Wire
Bell Industries, Inc. (AMEX:BI) today reported financial results
for the three months ended March 31, 2006. Revenue for 2006 first
quarter totaled to $27.2 million, compared with $28.7 million in
the comparable 2005 period. The company's net loss amounted to $1.3
million, or $0.15 per share, compared with a net loss of $677,000,
or $0.08 per share, in the year-ago quarter. For the company's
largest operating unit, Bell's Technology Solutions business, 2006
first quarter revenues were $14.3 million, compared with $15.4
million in the prior-year period. Product sales amounted to $6.4
million, compared with $8.2 million in the 2005 first quarter.
Services revenues rose to $7.9 million in the current first quarter
from $7.2 million a year earlier, primarily attributable to
continued strength in reverse logistics and depot repair business.
Bell posted an operating loss of $1.2 million for the 2006 first
quarter, in part, reflecting approximately $600,000 in losses from
continuing higher start-up and related costs associated with a new
depot services contract that commenced in the fourth quarter of
2005. The company had an operating loss of $767,000 in the
corresponding prior-year period. John A. Fellows, chief executive
officer of Bell Industries, said, "Recent operational changes have
been initiated that are designed to enhance the division's
prospects and include, among others, the recruitment of additional
business development executives with strong IT backgrounds and
proven sales track records. While we expect to incur
higher-than-usual expenses near-term as a result of these
initiatives, we believe they will help position this division to
maximize its growth prospects." At Bell's Recreational Products
Group (RPG), net revenues for the 2006 first quarter were $10.7
million, compared with $11.4 million in the year-ago period. The
decline in sales at RPG is attributed to adverse economic
conditions and higher fuel costs and the associated impact on the
recreational vehicle and boating markets. Operating income declined
to $190,000 for the 2006 first quarter from $218,000 a year
earlier. Revenues at J. W. Miller advanced to $2.2 million in the
2006 first quarter from $1.9 million a year earlier. Operating
income increased to $538,000 from $425,000 in the 2005 first
quarter. Bell announced earlier this month the sale of
substantially all of the assets, excluding real estate, of this
division to Bourns, Inc. for $8.5 million in cash, subject to post
closing adjustments. Fellows said, "With the sale of our smallest
business unit, we are now completely focused on the company's core
business operations. As we continue to make progress aligning our
resources to become leaders in the key markets we serve, we believe
we are well positioned to drive profitable revenue growth in each
of our business units." Bell's balance sheet at year-end remained
strong, with no bank debt. At March 31, 2006, cash and cash
equivalents totaled $5.1 million, and net working capital amounted
to $17.8 million. At the end of the 2006 first quarter,
shareholders' equity totaled $19.0 million, or $2.22 per share.
About Bell Industries, Inc. Bell is comprised of two diversified
business units, Bell's Technology Solutions business and
Recreational Products Group. Bell's Technology Solutions business
offers a comprehensive portfolio of technology products and managed
lifecycle services, including planning, product sourcing,
deployment and disposal, and support services. Bell's Recreational
Products Group distributes after-market parts and accessories
primarily to the recreational vehicle and boating markets.
Forward-Looking Statements Certain matters discussed in this news
release are forward looking statements that involve risks and
uncertainties that could cause actual results to differ materially
from current trends. These include, but are not limited to,
incurring higher expenses in the near-term to maximize growth
prospects, as well as other factors described in the company's
public filings from time to time. -0- *T Bell Industries, Inc.
Consolidated Operating Results (In thousands, except per share
data) (Unaudited) Three months ended March 31 2006 2005
---------------------------------------------------
------------------ Net revenues Products $19,287 $21,484 Services
7,870 7,204 -------- --------- 27,157 28,688 -------- ---------
Costs and expenses Cost of products sold 14,876 16,874 Cost of
services provided 6,657 6,012 Selling and administrative 7,004
6,516 Interest, net (75) (52) -------- --------- 28,462 29,350
-------- --------- Loss before income taxes (1,305) (662) Income
tax expense 15 15 -------- --------- Net loss $(1,320) $(677)
======== ========= Basic and diluted share data Net loss per share
$(.15) $(.08) ======== ========= Weighted average common stock
8,563 8,454 ======== =========
---------------------------------------------------
------------------ OPERATING RESULTS BY BUSINESS SEGMENT Net
revenues Technology Solutions Products $6,436 $8,228 Services 7,870
7,204 -------- --------- 14,306 15,432 Recreational Products 10,657
11,391 Electronic Components 2,194 1,865 -------- --------- $27,157
$28,688 ======== ========= Operating income (loss) Technology
Solutions $(1,244) $(767) Recreational Products 190 218 Electronic
Components 538 425 Corporate costs (864) (590) -------- ---------
(1,380) (714) Interest, net 75 52 Income tax expense (15) (15)
-------- --------- Net loss $(1,320) $(677) ======== ========= Bell
Industries, Inc. Consolidated Condensed Balance Sheet (In
thousands) (Unaudited) March December 31, 31, 2006 2005
-----------------------------------------------------------
--------- ASSETS Current assets: Cash and cash equivalents $5,111
$7,331 Accounts receivable 18,117 15,306 Inventories 12,805 12,764
Prepaid expenses and other 2,627 2,701 --------- --------- Total
current assets 38,660 38,102 --------- --------- Fixed assets, net
2,591 3,143 Other assets 3,054 3,108 --------- --------- $44,305
$44,353 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities: Floor plan payables $31 $68 Accounts payable
12,109 11,023 Accrued payroll and liabilities 8,760 8,440 ---------
--------- Total current liabilities 20,900 19,531 ---------
--------- Long-term liabilities 4,407 4,518 Shareholders' equity
18,998 20,304 --------- --------- $44,305 $44,353 =========
========= *T
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