Bell Industries Reports 1998 Financial Results; Updates Transition Plans for Continuing Operations.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.--(BUSINESS WIRE)--March 5, 1999--Bell Industries Inc. (NYSE NYSE See: New York Stock Exchange :BI) Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant reported results from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the year and fourth quarter ended Dec. 31, 1998. The company said results are not indicative indicative: see mood. of current operations due to the inclusion of certain losses and corporate expenses associated with Bell's electronics distribution business, which was sold subsequent to the close of 1998, along with special charges related to the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of the SAP sap, fluid in plants consisting of water and dissolved substances. Cell sap refers to this fluid present in the large vacuole, or cell cavity, that occupies most of the central portion of mature plant cells. business system and corporate resizing recorded earlier in 1998. For the full year, sales from continuing operations rose to $212.5 million from $194.6 million in 1997. 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. from continuing operations, before corporate costs, interest expense and special charges, was $11.7 million compared with $13.0 million in 1997. After including corporate costs, interest expense and a special pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charge of $9.9 million recorded during the third quarter, the company registered a loss from continuing operations, before extraordinary items, of $13.2 million, or $1.40 per share, compared with a loss of $6.1 million, or $.67 per share, in 1997. Income from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. was $7.3 million, or $.77 per share, compared with $16.2 million, or $1.77 per share, in 1997. After including the loss on the disposal of discontinued operations of $56.8 million, or $6.04 per share, including a significant write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of goodwill, Bell posted a net loss of $62.8 million, or $6.67 per share, compared with net income of $9.4 million, or $1.03 per share, for 1997. Results for 1997 included an extraordinary charge of $675,000, or $.07 per share, recorded in the first quarter. For the fourth quarter, sales from continuing operations rose to $51.6 million from $44.4 million in 1997. Operating income from continuing operations, before corporate costs and interest expense, was $2.1 million compared with $2.7 million in 1997. After corporate costs and interest expense, the company reported a net loss from continuing operations of $2.0 million, or $.21 per share, compared with a net loss of $2.1 million, or $.22 per share, in 1997. Income from discontinued operations was $443,000, or $.05 per share, compared with $4.0 million, or $.44 per share in 1997. The 1997 fourth quarter includes income of $660,000 from the discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: Graphics business which was sold in the third quarter of 1998. After including the loss from the disposal of the discontinued electronics distribution business of $58.6 million, or $6.18 per share, Bell reported a net loss of $60.1 million, or $6.34 per share, compared with net income of $2.0 million, or $.21 per share, in 1997. Tracy Tracy, city (1990 pop. 33,558), San Joaquin co., central Calif., in the San Joaquin valley; inc. 1910. It is a railroad junction in a cattle and dairying region. A. Edwards, who 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 of Bell in early February February: see month. 1999, said operating results for 1998 included interest expense of $12.0 million and corporate costs of $10.4 million, the majority of which supported the company's recently sold electronics distribution group. He said interest expense is expected to decrease significantly as a result of the repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of Bell's bank debt at the end of January January: see month. 1999. Commenting on 1998 results for the company's continuing businesses, Edwards noted that operating improvements in Bell's systems integration and recreational products groups were offset by poor results in electronics manufacturing This article presents a typical manufacturing process of an electronic assembly. Component manufacturing Components such as resistors, capacitors and integrated circuits are generally made by specialized contractors. . He said the company is making steady progress with its downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing program to streamline streamline, path of a fluid flowing steadily and without appreciable turbulence. A body is said to be streamlined if its shape offers the least possible resistance to a current of air, water, or other fluid. the corporate structure and eliminate overhead expenses that no longer are required. "We are implementing an aggressive transition plan and already have reduced corporate overhead costs overhead costs see fixed costs. substantially," said Edwards. "In addition, we have entered escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. on the sale of certain real estate properties and are continuing to pursue a number of strategic alternatives in connection with the company's continuing businesses. "After a challenging year, our goal is to reposition Bell to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. shareholder value. Bell's new management team is working diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d toward meeting this objective, and I am confident that the pace of our accomplishments will be swift and evident in the months immediately ahead," Edwards added. As previously announced, Bell plans to make a cash distribution to shareholders of around $7.00 per share from the proceeds of the sale of its electronics distribution group and certain real estate assets during the second quarter. Bell's primary business is the systems integration group, a multi-regional provider of integrated computer technology solutions for large and medium-sized Me´di`um-sized` a. 1. Having a medium size; as, a medium-sized man s>. Adj. 1. medium-sized - intermediate in size medium-size, moderate-size, moderate-sized organizations. 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 specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. products for the computer and electronics industry. Certain matters discussed in this news release contain forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information that involves risks and uncertainties that could cause actual results to differ materially from current trends. These include, but are not limited to, the timing and execution of the company's transition plan, its ability to further reduce corporate expenses and sell certain real estate assets, its success in achieving strategic alternatives for the remaining businesses, its plan with respect to the cash distribution to shareholders, and other factors. -0-
Bell Industries Inc.
Consolidated Balance Sheet
(In thousands)
Dec. 31,
1998 1997
ASSETS
Current assets:
Cash and cash equivalents $ 6,699 $ 5,377
Accounts receivable, net 31,340 120,900
Inventories 18,461 173,801
Prepaid expenses and other 8,566 8,990
Net assets of discontinued operations 179,830 --
Real estate held for sale 12,046 --
Total current assets 256,942 309,068
Properties, net 5,574 42,079
Goodwill 1,756 72,758
Other assets 6,775 7,328
$271,047 $431,233
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 27,777 $ 67,121
Accrued payroll and liabilities 35,495 26,435
Current portion of long-term liabilities 109,000 7,500
Total current liabilities 172,272 101,056
Long-term liabilities 8,319 178,825
Shareholders' equity 90,456 151,352
$271,047 $431,233
Bell Industries Inc.
Consolidated Operating Results
(In thousands, except per share data)
(Unaudited)
Three months ended
Dec. 31,
1998 1997
Net sales $ 51,633 $ 44,442
Costs and expenses
Cost of products sold 42,223 34,097
Selling and administrative 9,288 10,638
Interest 2,371 3,499
53,882 48,234
Loss from continuing operations
before income taxes (2,249) (3,792)
Income tax benefit (280) (1,732)
Loss from continuing operations (1,969) (2,060)
Income from discontinued operations,
net of tax 443 4,035
Loss on sale of discontinued operations,
net of tax (58,597) --
Net income (loss) $(60,123) $ 1,975
Share and per share data
Loss from continuing operations
Basic $ (0.21) $ (0.22)
Diluted $ (0.21) $ (0.22)
Net income (loss)
Basic $ (6.34) $ 0.21
Diluted $ (6.34) $ 0.21
Weighted average common shares
Basic 9,488 9,274
Diluted 9,488 9,274
Operating results by business segment
Net sales
Systems Integration $ 38,869 $ 30,122
Recreational Products 9,173 9,846
Electronics Manufacturing 3,591 4,474
$ 51,633 $ 44,442
Operating income
Systems Integration $ 1,377 $ 1,417
Recreational Products 572 428
Electronics Manufacturing 193 818
Corporate costs (2,020) (2,956)
122 (293)
Interest (2,371) (3,499)
Income tax benefit 280 1,732
Loss from continuing operations $ (1,969) $ (2,060)
Year ended
Dec. 31,
1998 1997
Net sales $ 212,468 $ 194,641
Costs and expenses
Cost of products sold 170,244 150,755
Selling and administrative 40,971 42,379
Business systems and
corporate resizing charges (a) 9,900 --
Interest 12,038 12,309
233,153 205,443
Loss from continuing operations
before income taxes and
extraordinary loss (20,685) (10,802)
Income tax benefit (7,496) (4,667)
Loss from continuing operations
before extraordinary loss (13,189) (6,135)
Income from discontinued operations,
net of tax 7,275 16,216
Loss on sale of discontinued operations,
net of tax (56,849) --
Loss on early retirement of debt -- (675)
Net income (loss) $ (62,763) $ 9,406
Share and per share data
Loss from continuing operations
before extraordinary loss
Basic $ (1.40) $ (0.67)
Diluted $ (1.40) $ (0.67)
Net income (loss)
Basic $ (6.67) $ 1.03
Diluted $ (6.67) $ 1.03
Weighted average common shares
Basic 9,411 9,157
Diluted 9,411 9,157
Operating results by business segment
Net sales
Systems Integration $ 149,158 $ 124,680
Recreational Products 47,070 46,234
Electronics Manufacturing 16,240 23,727
$ 212,468 $ 194,641
Operating income
Systems Integration $ 6,604 $ 5,933
Recreational Products 3,289 2,880
Electronics Manufacturing 1,790 4,230
Corporate costs (10,430) (11,536)
1,253 1,507
Interest expense (12,038) (12,309)
Business system and
corporate resizing charges (a) (9,900) --
Income tax benefit 7,496 4,667
Loss from continuing operations
before extraordinary loss $ (13,189) $ (6,135)
(a) Represents before-tax resizing charge ($1,900) and business
system charge ($8,000) in 1998.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion