Bell Industries Posts Higher Net Income for 2005 Third Quarter.EL SEGUNDO El Segundo (ĕl sēgŭn`dō), industrial city (1990 pop. 15,223), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1917. Its products include navigation and computer systems, aircraft parts, office machines, telephone apparatus, and , Calif. -- Bell Industries, Inc. (AMEX AMEX See: American Stock Exchange :BI) today reported financial results for the three and nine months ended September September: see month. 30, 2005. For the 2005 third quarter, net income totaled $423,000, equal to $0.05 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. This compares with a net loss of $314,000, or $0.04 per share, in the prior-year period. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net revenues for the quarter amounted to $39.2 million, compared with $39.5 million a year earlier. Third quarter results for 2005 and 2004 include severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when charges of $325,000 and $700,000, respectively, for former executives. For the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. period, net income totaled $694,000, or $0.08 per diluted share, versus a net loss of $186,000, or $0.02 per share, for the corresponding 2004 period. Consolidated net revenues amounted to $105.2 million for the current nine-month period, compared with $117.7 million a year earlier. John A. Fellows, who recently was elected e·lect v. e·lect·ed, e·lect·ing, e·lects v.tr. 1. To select by vote for an office or for membership. 2. To pick out; select: elect an art course. president and chief executive officer after serving on Bell's board of directors since May 2005, commented, "While I'm I'm Contraction of I am. Our Living Language Speakers of some scattered varieties of American English sometimes use I'm instead of I've or I have in present perfect constructions, as in confident in the level of talent within our different business groups, I'm even more encouraged by what we'll we'll Contraction of we will. we'll we will or we shall we'll will ~shall be able to accomplish in the days ahead now that we are succinctly suc·cinct adj. suc·cinct·er, suc·cinct·est 1. Characterized by clear, precise expression in few words; concise and terse: a succinct reply; a succinct style. 2. focused on becoming the recognized leader in each of our respective markets." For the 2005 third quarter, Bell's largest operating unit operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon , the Tech.logix Group (BTL BTL Between the Lines BTL Battle BTL Bottle BTL Buy To Let BTL Below The Line (advertising) BTL Biomass-to-Liquids BTL Bubba the Love Sponge BTL Between the Lions (PBS children's TV show) ), posted net revenues of $25.0 million, compared with $25.8 million in the prior-year period. Product sales amounted to $17.2 million, compared with $18.6 million in the 2004 third quarter. Services revenues advanced 8% to $7.8 million in the 2005 third quarter from $7.2 million a year earlier, reflecting continued strength in BTL's reverse logistics This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. and depot depot /de·pot/ (de´po) (dep´o) a body area in which a substance, e.g., a drug, can be accumulated, deposited, or stored and from which it can be distributed. repair business. Benefiting from cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. efforts and the revenue increase in reverse logistics and depot repair business, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the division increased to $418,000 for the 2005 third quarter from $177,000 in the prior-year period. At Bell's Recreational Products Group, net revenues for the 2005 third quarter rose modestly to $12.1 million from $11.9 million last year. Operating income increased to $478,000 from $432,000 in the same period a year ago. Net revenues at Bell's electronic components operation, J.W. Miller, grew 18% to $2.1 million in the third quarter of 2005 from $1.8 million a year earlier. Operating income increased 40% to $468,000 from $335,000 a year ago. Bell continues to maintain a strong balance sheet with no bank debt. At September 30, 2005, cash and cash equivalents totaled $12.0 million, and net working capital amounted to $19.9 million, compared with $10.8 million and $19.1 million, respectively, at December December: see month. 31, 2004. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. totaled $21.6 million, or $2.55 per share, compared with $20.8 million, or $2.47 per share, at December 31, 2004. About Bell Industries, Inc. Bell's primary business, the Tech.logix Group, offers a comprehensive portfolio of technology products and managed lifecycle services, including planning, product sourcing, deployment and disposal, and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services . Support services include help desk support, desk side support, technical maintenance services, and reverse logistics and depot services. Bell also distributes after-market af·ter-mar·ket n. The market for parts and accessories used in the upkeep or enhancement of a previous purchase, as of a car or computer. af parts and accessories to the recreational vehicle market and manufactures and sells standard and custom magnetic components used in electronic applications for computer, medical, lighting and telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. equipment. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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, future accomplishments, as well as other factors described in the company's public filings from time to time.
Bell Industries, Inc.
Consolidated Operating Results
(In thousands, except per share data)
(Unaudited)
Three months Nine months
ended ended
September 30 September 30
2005 2004 2005 2004
---------------------------------------------------------------------
Net revenues
Products $31,424 $32,300 $82,804 $94,645
Services 7,772 7,190 22,438 23,091
------ ------ ------ ------
39,196 39,490 105,242 117,736
------ ------ ------ ------
Costs and expenses
Cost of products sold 25,436 26,445 65,684 77,833
Cost of services provided 6,185 5,687 18,032 18,419
Selling and administrative 6,905 6,980 20,628 21,002
Interest, net (93) (39) (181) (107)
Special items (1) 325 700 325 700
------ ------ ------ ------
38,758 39,773 104,488 117,847
------ ------ ------ ------
Income (loss) before income
taxes 438 (283) 754 (111)
Income tax expense 15 31 60 75
------ ------ ------ ------
Net income (loss) $423 $(314) $694 $(186)
====== ====== ====== ======
Basic and diluted share data
Net income (loss)
Basic $.05 $(.04) $.08 $(.02)
====== ====== ====== ======
Diluted $.05 $(.04) $.08 $(.02)
====== ====== ====== ======
Weighted average common stock
Basic 8,460 8,378 8,458 8,375
====== ====== ====== ======
Diluted 8,479 8,378 8,502 8,375
====== ====== ====== ======
OPERATING RESULTS BY BUSINESS SEGMENT
Net revenues
Technology Solutions
Products $17,182 $18,629 $39,305 $50,530
Services 7,772 7,190 22,438 23,091
------ ------ ------ ------
24,954 25,819 61,743 73,621
Recreational Products 12,122 11,878 37,433 38,049
Electronic Components 2,120 1,793 6,066 6,066
------ ------ ------ ------
$39,196 $39,490 $105,242 $117,736
====== ====== ====== ======
Operating income (loss)
Technology Solutions $418 $177 $(42) $(311)
Recreational Products 478 432 1,530 1,540
Electronic Components 468 335 1,403 1,237
Corporate costs (694) (566) (1,993) (1,984)
Special items (1) (325) (700) (325) (700)
------ ------ ------ ------
345 (322) 573 (218)
Interest, net 93 39 181 107
Income tax expense (15) (31) (60) (75)
------ ------ ------ ------
Net income (loss) $423 $(314) $694 $(186)
====== ====== ====== ======
(1) Special item in 2005 represents costs associated with a severance
agreement for a former executive. Special item in 2004 represents
costs associated with an employment agreement for another former
executive.
Bell Industries, Inc.
Consolidated Condensed Balance Sheet
(In thousands)
(Unaudited)
September December
30 31
2005 2004
---------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $11,955 $10,801
Accounts receivable 15,680 11,455
Inventories 10,181 14,364
Prepaid expenses and other 2,235 1,813
------ ------
Total current assets 40,051 38,433
------ ------
Fixed assets, net 3,137 3,139
Other assets 3,374 3,617
------ ------
$46,562 $45,189
====== ======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $11,363 $11,170
Accrued payroll and liabilities 8,827 8,178
------ ------
Total current liabilities 20,190 19,348
------ ------
Long-term liabilities 4,807 5,025
Shareholders' equity 21,565 20,816
------ ------
$46,562 $45,189
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