Bell Industries Reports 2006 First Quarter Results.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 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 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 , 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 attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to continued strength in 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. Bell posted an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $1.2 million for the 2006 first quarter, in part, reflecting approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $600,000 in losses from continuing higher start-up Start-up The earliest stage of a new business venture. 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 recruitment /re·cruit·ment/ (re-krldbomact´ment) 1. the gradual increase to a maximum in a reflex when a stimulus of unaltered intensity is prolonged. 2. of additional business development executives with strong IT backgrounds and proven sales track records. While we expect to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. higher-than-usual expenses near-term near-term adj. Of, for, or involving a short period of time in the near future. 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 (Report Program Generator) One of the first program generators designed for business reports, introduced in 1964 by IBM. In 1970, RPG II added enhancements that made it a mainstay programming language for business applications on IBM's System/3x midrange computers. ), 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 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. 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 Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . As we continue to make progress aligning a·lign v. a·ligned, a·lign·ing, a·ligns v.tr. 1. To arrange in a line or so as to be parallel: align the tops of a row of pictures; aligned the car with the curb. 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 year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 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 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 $19.0 million, or $2.22 per share. About Bell Industries, Inc. Bell is comprised of two diversified diversified (di·verˑ·s 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 support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services . Bell's Recreational Products Group 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 primarily to the recreational vehicle and boating markets. 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, incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. 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.
Bell Industries, Inc.
Consolidated Operating Results
(In thousands, except per share data)
(Unaudited)
Three months ended March 31 2006 2005
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Net revenues
Products $19,287 $21,484
Services 7,870 7,204
-------- ---------
27,157 28,688
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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
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Loss before income taxes (1,305) (662)
Income tax expense 15 15
-------- ---------
Net loss $(1,320) $(677)
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Basic and diluted share data
Net loss per share $(.15) $(.08)
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Weighted average common stock 8,563 8,454
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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
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$27,157 $28,688
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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)
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Net loss $(1,320) $(677)
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Bell Industries, Inc.
Consolidated Condensed Balance Sheet
(In thousands)
(Unaudited)
March December
31, 31,
2006 2005
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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
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Total current assets 38,660 38,102
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Fixed assets, net 2,591 3,143
Other assets 3,054 3,108
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$44,305 $44,353
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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
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$44,305 $44,353
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