Bell Industries Reports First Quarter Results.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, 2002 Bell Industries, Inc. (AMEX AMEX See: American Stock Exchange :BI) today reported financial results for the first quarter ended March 31, 2002. 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 totaled $32.1 million, compared with $53.0 million a year earlier. The company said the sales decline primarily reflects a shift at its 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) ), to a direct purchase model for the sourcing and delivery of computer hardware from manufacturers, as well as sharply curtailed information technology spending by business enterprises. Bell recorded a net loss of $930,000, or $0.10 per share, for the first quarter of 2002, compared with net income of $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, a year ago. BTL recorded net sales of $21.1 million for the 2002 first quarter, compared with $39.6 million last year. BTL recorded 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 $1.0 million, compared with 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. of $101,000 in 2001. "While business spending on IT products continues at a lower pace, BTL is making good progress with its strategy of providing customers with technology life cycle services to enhance the efficiencies of their operations," said 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, chairman, president and chief executive officer. "Our services revenues have remained relatively steady year over year as we have strengthened our offerings and further penetrated our target markets." "During the quarter, BTL continued 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. its operations, primarily in the Midwest Midwest or Middle West, region of the United States centered on the western Great Lakes and the upper-middle Mississippi valley. It is a somewhat imprecise term that has been applied to the northern section of the land between the Appalachians , in response to the lower product sales," said Edwards. "The economic environment, particularly in the technology sector, continues to be extremely challenging. While we have reacted to these conditions, our operating results reflect ongoing strategic commitments to our service practices. We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about business opportunities as we develop new relationships and alliances in connection with our strategy. Although spending has declined, technology products will continue to be an important part of a total solution for our clients. We will continue to implement new tools and methodologies to 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: our product support operations." 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. ) posted net sales of $9.8 million for the quarter ended March 31, 2002, compared with $10.9 million for the same period a year ago. Operating income amounted to $75,000 for the 2002 first quarter, compared with $142,000 last year. The reduction reflects lower snow product sales attributed to one of the warmest winter seasons in the past decade. Current indications point to increasing demand for recreational vehicle and marine products, reflecting the positive outlook in these markets. Decreased demand for electronic components in the computer and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. sectors resulted in lower sales for J.W. Miller, 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. business. Net sales for the 2002 first quarter totaled $1.2 million, compared with net sales of $2.4 million a year earlier, and $1.3 million in the immediately preceding fourth quarter. Operating income was $76,000, compared with $559,000 a year earlier, and $223,000 in the fourth quarter of 2001. Bell's balance sheet reflects net working capital of $20.9 million, including $8.0 million in cash. 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. at March 31, 2002 totaled $28.7 million. Book value, excluding goodwill, was $3.00 per share. The company has no bank debt. Bell's primary business, the Tech.logix Group, is a middle market provider of information technology lifecycle Most new technologies follow a similar technology lifecycle describing the technological maturity of a product. This is not similar to a product life cycle, but applies to an entire technology, or a generation of a technology. management services including strategic sourcing, technology integration, and product support. 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 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, success in executing the strategic initiatives, BTL's ability to forge forge Open furnace for heating metal ore and metal for working and forming, or a workshop containing forge hearths and related equipment. From earliest times, smiths (see smithing) heated iron in forges and formed it by hammering on an anvil. new alliances and realize business opportunities later in 2002, continued positive trends for RPG, cash and working capital trends, the ability to attract experienced professionals 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 2002 2001
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Net sales $ 32,117 $ 52,986
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Cost of sales 26,357 44,885
Selling and administrative 7,352 8,087
Interest, net (56) (164)
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33,653 52,808
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Income (loss) before income taxes (1,536) 178
Income tax expense (benefit) (606) 70
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Net income (loss) $ (930) $ 108
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Share and per share data
Net income (loss)
Basic $ (.10) $ .01
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Diluted $ (.10) $ .01
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Weighted average common shares
Basic 8,890 8,823
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Diluted 8,890 8,879
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Operating results by business segment
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Net sales
Systems Integration $ 21,106 $ 39,628
Recreational Products 9,784 10,925
Electronics Manufacturing 1,227 2,433
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$ 32,117 $ 52,986
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Operating income (loss)
Systems Integration $ (1,019) $ 101
Recreational Products 75 142
Electronics Manufacturing 76 559
Corporate costs (724) (788)
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(1,592) 14
Interest, net 56 164
Income tax benefit (expense) 606 (70)
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Net income (loss) $ (930) $ 108
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Bell Industries, Inc.
Consolidated Condensed Balance Sheet
(In thousands)
(Unaudited)
March 31, December 31,
2002 2001
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Assets
Current assets:
Cash and cash equivalents $ 8,008 $10,418
Accounts receivable, net 20,182 17,827
Inventories 13,610 13,608
Prepaid expenses and other 3,907 3,879
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Total current assets 45,707 45,732
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Fixed assets, net 5,785 6,319
Goodwill 2,116 2,116
Other assets 2,716 2,739
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$56,324 $56,906
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Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $14,118 $11,833
Accrued payroll and liabilities 10,646 12,585
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Total current liabilities 24,764 24,418
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Long-term liabilities 2,812 2,810
Shareholders' equity 28,748 29,678
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$56,324 $56,906
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