Bell Industries Reports First Quarter Results; Progress Continues in Corporate Transition, Executing Plan for Bell Tech.logix.Business Editors 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 8, 2001 Bell Industries Inc. (AMEX AMEX See: American Stock Exchange :BI) today reported financial results for the first quarter ended March 31, 2001. 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 for the most recent three-month period were $53.0 million compared with $54.9 million for the same period in 2000. Net income amounted to $108,000, or $0.01 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, compared with $282,000, or $0.03 per diluted share, for the prior year's first quarter. Tracy A. Edwards, chairman, president and chief executive officer, said Bell's first quarter performance was affected primarily by softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. economic conditions, resulting in diminished customer spending in the company's core business markets. "Despite widespread weakness in the U.S. economy, our results held up reasonably well, as we continue to invest in our future," said Edwards. "We are taking proactive measures In antiterrorism, measures taken in the preventive stage of antiterrorism designed to harden targets and detect actions before they occur. to counter external trends and are making good progress executing our strategic plan for Bell Tech.logix (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) ), our primary business unit." BTL sales were $39.6 million for the quarter ended March 31, 2001 compared with $40.7 million in the prior year's corresponding period. 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. was approximately $100,000 for both periods. The operating results for the first quarter were impacted by the general economic weakness in the technology sector. "During the quarter, and as part of our strategy, we recruited a number of experienced executives for the BTL team to strengthen our capabilities. In addition, we began operation of a new, state-of-the-art technology center in Indiana, which includes Bell's contact center services team. A similar center is scheduled to open later this summer in Virginia," Edwards said. In March, Bell acquired Project Support Systems (PSS See EPSS. ), a privately owned firm engaged in management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects and technology project management. This acquisition is expected to significantly augment aug·ment v. aug·ment·ed, aug·ment·ing, aug·ments v.tr. 1. To make (something already developed or well under way) greater, as in size, extent, or quantity: BTL's project management service capabilities and further enhance BTL's overall service offerings. The integration of PSS into BTL has been completed. Bell's Recreational Products Group recorded sales of $10.9 million for the quarter ended March 31, 2001 versus $11.9 million for the same period last year. Operating income amounted to $142,000 for the first quarter 2001 compared with $438,000 last year. Results were impacted by shifts in gross margin on sales mix sales mix See product mix. , escalating fuel costs and reduced consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. in this sector. Sales for the company's 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. group rose slightly to $2.4 million from $2.3 million a year ago. Operating income was slightly below the prior year's first quarter, amounting to $559,000 compared with $581,000 a year earlier. At March 31, 2001, Bell reported net working capital of $23.4 million, including $9.4 million in cash, and had no bank borrowings. 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 $30.7 million, or $3.48 per share. "Our financial condition remains strong. We continue to invest in what we believe to be a large and growing outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. market for IT technology support and solutions," Edwards added. Bell's primary business, Bell Tech.logix, is a multi-regional provider of integrated computer technology solutions for middle market organizations. Bell also distributes after-market 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 are 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. that involve risks and uncertainties that could cause actual results to differ materially from current trends. These include, but are not limited to, the benefits to be derived from the company's new technology centers, success in executing the strategic plan for Bell Tech.logix, cash trends and 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 2001 2000
Net sales $ 52,986 $ 54,927
Costs and expenses
Cost of sales 44,622 46,729
Selling and administrative 8,350 7,774
Interest, net (164) (43)
52,808 54,460
Income before income taxes 178 467
Income tax expense 70 185
Net income $ 108 $ 282
Share and per share data
Net income
Basic $ 0.01 $ 0.03
Diluted $ 0.01 $ 0.03
Weighted average common shares
Basic 8,823 9,529
Diluted 8,879 9,631
Operating results by business segment
Net sales
Systems Integration $ 39,628 $ 40,704
Recreational Products 10,925 11,888
Electronics Manufacturing 2,433 2,335
$ 52,986 $ 54,927
Operating income
Systems Integration $ 101 $ 117
Recreational Products 142 438
Electronics Manufacturing 559 581
Corporate costs (788) (712)
14 424
Interest, net 164 43
Income tax expense (70) (185)
Net income $ 108 $ 282
Bell Industries Inc.
Consolidated Condensed Balance Sheet
(In thousands)
(Unaudited)
March 31, Dec. 31,
2001 2000
Assets
Current assets:
Cash and cash equivalents $ 9,365 $ 14,433
Accounts receivable, net 29,422 31,701
Inventories 15,505 15,065
Prepaid expenses and other 4,033 4,012
Total current assets 58,325 65,211
Fixed assets, net 5,154 4,238
Goodwill 2,206 1,540
Other assets 3,122 3,437
$ 68,807 $ 74,426
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 21,114 $ 24,492
Accrued payroll and liabilities 13,775 16,041
Total current liabilities 34,889 40,533
Long-term liabilities 3,182 3,411
Shareholders' equity 30,736 30,482
$ 68,807 $ 74,426
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