Bell Industries Reports Improved Operating Results for 2004.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 improved operating results for the year and fourth quarter ended December December: see month. 31, 2004. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net revenues for the year increased to $144.0 million from $141.9 million in 2003. Bell's net loss for 2004 was sharply reduced to $953,000, or $0.11 per share, including a $700,000 charge in connection with an employment agreement for a former executive, from a loss of $3.8 million, or $0.45 per share, a year ago. The $3.8 million loss in 2003 included income tax expense of $1.2 million, principally arising from a valuation allowance for deferred tax benefits. "Consistent progress was achieved throughout the year, as we continued to align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. cost structures and focus on investments in business development and selective growth initiatives," said Russell Russell, English noble family. It first appeared prominently in the reign of Henry VIII when John Russell, 1st earl of Bedford, 1486?–1555, rose to military and diplomatic importance. A. Doll doll, small figure of a human being, usually used as a child's toy. The many types of dolls found among the relics of primitive peoples were cult objects. Egypt, Greece, and Rome have left well-preserved dolls of wood, clay, bone, ivory, and bronze that were used , acting president and chief executive officer. "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) ), Bell'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 , made great strides in improving cost structures and expanding its geographic market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" , despite a highly competitive IT services environment where multiple vendors are vying vy·ing v. Present participle of vie. vying vie for contracts. While business development activities are opening doors to potential new business opportunities as 2005 unfolds, the near term environment for product sales and margins and certain services such as help desk will be challenging." For the 2004 fourth quarter, Bell posted consolidated net revenues of $26.2 million, compared with $30.9 million in the prior-year period. The net loss for the 2004 fourth quarter totaled $767,000, or $0.09 per share, compared with a net loss of $2.6 million, or $0.31 per share, a year ago, which included the income tax expense of $1.2 million described above. Total revenues at BTL amounted to $16.6 million for the 2004 fourth quarter, compared with $21.4 million last year, reflecting the previously reported ending of an 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. engagement and generally stronger 2003 fourth quarter product sales. Product and services revenues totaled $9.6 million and $7.0 million, respectively, compared with $12.9 million and $8.5 million in the 2003 fourth quarter. BTL posted a lower 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. for the 2004 fourth quarter of $469,000, compared with an operating loss of $866,000 in the year-ago fourth quarter. Sales 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. ) were slightly lower at $7.9 million for 2004 fourth quarter, compared with $8.0 million in corresponding year-ago period. The unit sustained an operating loss for the seasonally slower fourth quarter of $221,000, compared with $108,000 a year earlier. Doll said that during the year, RPG invested in technology designed to enhance sales, order and inventory processes, the benefits of which are expected to be realized in 2005. Benefiting from an expanded client base, new product offerings and a better business environment, J.W. Miller, Bell's electronic components operation, posted higher sales of $1.7 million, up 14 percent from the prior-year's fourth quarter sales of $1.5 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. improved to $289,000 from $204,000 a year earlier. "While our corporate costs were reduced significantly during 2004, the savings are expected to be reduced in 2005 by added expenses in connection with the commencement of Bell's Sarbanes-Oxley compliance efforts," Doll said. Bell continues to maintain a strong balance sheet with no bank debt. 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. 2004, the company had cash of $10.8 million and net working capital of $19.1 million. 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 $20.8 million, or $2.47 per share, at December 31, 2004. Bell's primary business, the Tech.logix Group, provides 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. services, including planning, product sourcing, migration, support, and disposal services. Recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services include help desk, 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. , and on-site on-site adj. Done or located at the site, as of a particular activity: on-site monitoring of a production run; an on-site film shoot. expertise for desktop and mobile devices, business software applications, and network infrastructures. 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. In addition, Bell manufactures and distributes a variety of standard and custom magnetic components used in electronic applications for computer, medical and telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. equipment. 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, potential opportunities resulting from strengthened business development activities by BTL, benefits from technology investments at RPG, additional cost for Sarbanes-Oxley compliance, 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 Year ended
December 31 December 31
2004 2003 2004 2003
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Net revenues
Products $19,187 $22,365 $113,832 $106,956
Services 7,031 8,510 30,122 34,949
-------- -------- -------- --------
26,218 30,875 143,954 141,905
-------- -------- -------- --------
Costs and expenses
Cost of products sold 15,046 18,175 92,879 87,181
Cost of services provided 5,808 7,221 24,227 28,449
Selling and administrative 6,185 6,896 27,187 29,019
Interest, net (54) (41) (161) (166)
Special item (1) 700
-------- -------- -------- --------
26,985 32,251 144,832 144,483
-------- -------- -------- --------
Loss before income taxes (767) (1,376) (878) (2,578)
Income tax expense 1,209 75 1,209
-------- -------- -------- --------
Net loss $ (767) $(2,585) $ (953) $ (3,787)
======== ======== ======== ========
Basic and diluted share data
Net loss per share $ (.09) $ (.31) $ (.11) $ (.45)
======== ======== ======== ========
Weighted average common stock 8,418 8,367 8,385 8,367
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OPERATING RESULTS BY BUSINESS SEGMENT
Net revenues
Technology Solutions
Products $ 9,619 $12,895 $ 60,149 $ 55,826
Services 7,031 8,510 30,122 34,949
-------- -------- -------- --------
16,650 21,405 90,271 90,775
Recreational Products 7,858 7,969 45,907 44,804
Electronic Components 1,710 1,501 7,776 6,326
-------- -------- -------- --------
$26,218 $30,875 $143,954 $141,905
======== ======== ======== ========
Operating income (loss)
Technology Solutions $ (469) $ (866) $ (780) $ (2,135)
Recreational Products (221) (108) 1,319 1,321
Electronic Components 289 204 1,526 939
Corporate costs (420) (647) (2,404) (2,869)
Special item (1) (700)
-------- -------- -------- --------
(821) (1,417) (1,039) (2,744)
Interest, net 54 41 161 166
Income tax expense (1,209) (75) (1,209)
-------- -------- -------- --------
Net loss $ (767) $(2,585) $ (953) $ (3,787)
======== ======== ======== ========
(1) Special item represents costs associated with an employment
agreement for a former executive.
Bell Industries, Inc.
Consolidated Condensed Balance Sheet
(In thousands)
(Unaudited)
December 31 2004 2003
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ASSETS
Current assets:
Cash and cash equivalents $10,801 $12,203
Accounts receivable, net 11,455 16,164
Inventories 14,364 11,286
Prepaid expenses and other 1,813 689
-------- --------
Total current assets 38,433 40,342
-------- --------
Fixed assets, net 3,139 4,206
Other assets 3,617 2,085
-------- --------
$45,189 $46,633
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $11,170 $12,882
Accrued payroll and liabilities 8,178 9,634
-------- --------
Total current liabilities 19,348 22,516
-------- --------
Long-term liabilities 5,025 2,520
Shareholders' equity 20,816 21,597
-------- --------
$45,189 $46,633
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