Bell Industries Reports First Quarter Results, Declares First Portion of Planned Cash Distribution.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)--May 13, 1999-- Bell Industries, Inc. (NYSE NYSE See: New York Stock Exchange :BI) today 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 first quarter ended March 31, 1999. The company also declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. an initial cash distribution of $5.70 per share, payable June June: see month. 8, 1999 to shareholders of record on May 25, 1999. The payment represents the first portion of the previously announced planned distribution of the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the recent sale of the company's electronics distribution unit and the disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of certain real estate properties. The company plans to distribute additional cash of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.30 per share following the sale of remaining real estate properties associated with the electronics distribution business. For the 1999 first quarter, net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight rose 21% to $54.2 million from $44.9 million last year. Income from continuing operations for the first quarter of 1999 was $530,000, or $.06 per share. In the first quarter of 1998, the Company recorded a loss from continuing operations of $1.9 million, or $.20 per share, which included substantially higher corporate costs and interest expense required to support Bell's former businesses. 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 in February February: see month. , said significant progress was achieved on the company's corporate resizing program during the first quarter with corporate costs down over 70% to $924,000 from $3.2 million a year ago. In addition, net interest expense was $360,000 compared to $3.5 million in the first quarter last year. The company retired its outstanding debt with the proceeds from sale of its electronics distribution business in January January: see month. 1999. On an operating basis, Edwards said the systems integration group, Bell's largest business unit, registered a 26% increase in sales to $38.7 million. 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 this group declined slightly to $1.2 million, principally reflecting continued margin pressures for computer products offset by positive growth in the group's services business. Revenues and profits from services were up over 30% for the first quarter. Edwards noted that the group will continue its strategic shift in building the services business while providing a comprehensive offering of microcomputer microcomputer Small digital computers whose CPU is contained on a single integrated semiconductor chip. As large-scale and then very large-scale integration (VLSI) have progressively increased the number of transistors that can be placed on one chip, the processing capacity and network products for its clients. Bell's recreational products group posted a strong first quarter, with sales rising 13% to $11.1 million and operating income increasing 35% to $545,000. The company's manufacturing segment posted sales of $4.3 million, approximately equal to that of last year, and operating income of $376,000, down from $653,000 a year ago, which reflects the continuing margin pressures 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. . "While much has been accomplished in a relatively short time, many challenges still remain," said Edwards. "With respect to our real estate, we have completed the sale of two properties, and we currently are evaluating offers that have been received on each of our remaining properties. Management is working diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d to reposition the company and further reduce corporate costs, as we thoroughly explore strategies to enhance share value. In addition to these efforts, we are pleased to declare TO DECLARE. To make known or publish. By tho constitution of the United States, congress have power to declare war. In this sense the word, declare, signifies, not merely to make it known that war exists, but also to make war and to carry it on. 4 Dall. 37; 1 Story, Const. Sec. this significant cash distribution arising from the recent sale of Bell's electronics distribution business." 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 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 and strategic shift in its systems integration business, its ability to further reduce corporate expenses and sell certain real estate assets, its success in executing strategies to enhance share value, its plan with respect to the cash distributions to shareholders, and other factors described in its public filings.
Bell Industries, Inc.
Consolidated Condensed Balance Sheet
(In thousands)
(Unaudited)
March 31, December 31,
1999 1998
----------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 51,862 $ 6,699
Accounts receivable, net 35,623 31,340
Inventories 17,172 18,461
Prepaid expenses and other 7,813 8,566
Net assets of
discontinued operations 15,177 179,830
Real estate held for sale 9,826 12,046
---------- ----------
Total current assets 137,473 256,942
---------- ----------
Properties, net 5,705 5,574
Goodwill 1,450 1,468
Other assets 3,589 6,775
---------- ----------
$ 148,217 $ 270,759
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 26,912 $ 27,778
Accrued payroll and liabilities 24,701 35,207
Current portion of
long-term liabilities - 109,000
---------- ----------
Total current liabilities 51,613 171,985
---------- ----------
Long-term liabilities 4,883 8,319
Shareholders' equity 91,721 90,455
---------- ----------
$ 148,217 $ 270,759
========== ==========
Bell Industries, Inc.
Consolidated Operating Results
(In thousands, except per share data)
(Unaudited)
Three months ended March 31 1999 1998
----------------------------------------------------------------------
Net sales $ 54,151 $ 44,857
---------- ----------
Costs and expenses
Cost of products sold 45,026 35,006
Selling and administrative 7,881 10,694
Interest, net 360 3,460
---------- ----------
53,267 49,160
---------- ----------
Income (loss) from
continuing operations
before income taxes 884 (4,303)
Income tax expense (benefit) 354 (2,421)
---------- ----------
Income (loss)
from continuing operations 530 (1,882)
Income from discontinued
operations, net of tax 4,323
---------- ----------
Net income $ 530 $ 2,441
========== ==========
Share and per share data
Income (loss) from
continuing operations
Basic $ 0.06 $ (0.20)
========== ==========
Diluted $ 0.06 $ (0.20)
========== ==========
Net income
Basic $ 0.06 $ 0.26
========== ==========
Diluted $ 0.06 $ 0.26
========== ==========
Weighted average common shares
Basic 9,556 9,330
========== ==========
Diluted 9,576 9,330
========== ==========
----------------------------------------------------------------------
Operating results by business segment
Net sales
Systems Integration $ 38,705 $ 30,703
Recreational Products 11,104 9,793
Electronics Manufacturing 4,342 4,361
---------- ----------
$ 54,151 $ 44,857
========== ==========
Operating income
Systems Integration $ 1,247 $ 1,302
Recreational Products 545 404
Electronics Manufacturing 376 653
Corporate costs (924) (3,202)
---------- ----------
1,244 (843)
Interest, net (360) (3,460)
Income tax (expense) benefit (354) 2,421
---------- ----------
Income (loss) from
continuing operations $ 530 $ (1,882)
========== ==========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion