Bell Industries Reports Second Quarter, Six-Month Results; Company Continues to Make Progress with Strategic Plan, Principal Operating Unit Opens Technology Center.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)--Aug. 2, 2001 Bell Industries Inc. (AMEX AMEX See: American Stock Exchange :BI) today reported financial results for the second quarter and six months ended June June: see month. 30, 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 second quarter were $52.4 million, compared with $61.1 million for the same period in 2000. Bell reported income of $245,000, or $.03 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, before special charges, compared with income of $694,000, or $.08 per share, last year, before special items. The company recorded charges in the 2001 second quarter related to facilities consolidation in connection with the opening of a new technology center, separation costs associated with realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. efforts, and settlement costs associated with an executive change-in-control contract. Including the special charges, Bell sustained a net loss of $659,000, or $.07 per share, for the 2001 period. In 2000, Bell recorded net income of $958,000, or $.11 per share, which included a net pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gain from special items of $437,000. For the first half of 2001, Bell reported net sales of $105.4 million, compared with $116.0 million for the same period last year. Income excluding the special charges amounted to $353,000, or $.04 per diluted share, compared with income of $976,000, equal to $.11 per diluted share, excluding special items, for the comparable prior year period. Including the special items, net loss for the first six months of 2001 was $551,000, or $.06 per share, compared to net income of $1.2 million, or $.13 per share, in the prior year period. "Operating results for the second quarter continued to be impacted by the generally weak economy, which has affected each of our business units," 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. "Nevertheless, we are maintaining the intensity of our efforts to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution the strategic repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. plan of Bell's largest operation, 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) )." Sales of BTL were $36.4 million for the quarter ended June 30, 2001, compared with $43.2 million in the prior year's corresponding period. Excluding a pre-tax charge of $845,000, BTL would have reported breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations operating results for second quarter of 2001, 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 $440,000, before a special charge of $1.8 million, in the prior year second quarter. "Despite the current slowing of our clients' spending on IT hardware and related technology services, we continued to make measurable progress strengthening partnerships, attracting experienced professionals to the organization and enhancing BTL's position as a leading multi-regional provider of integrated IT solutions and services," Edwards said. BTL's accomplishments during the quarter included: -- Launching a world class technology center in Indianapolis, Ind.; -- Enhancing the company's IT outsourcing operations with deployment of Primus eServer and eSupport knowledge enabling software; -- Rolling out the BellCare Services extended warranty program; -- Selection by Sun Microsystems to be its authorized Campus Agent for K-12 in the Atlantic region; and -- Sponsoring JobsINTech, a media program designed to retain and develop technology related jobs in Indiana. Bell's Recreational Products Group recorded sales of $14.2 million for the quarter ended June 30, 2001, versus $15.1 million for the same period last year. Operating income amounted to $802,000 for the 2001 second quarter, compared with $835,000 a year ago. Results were impacted by high 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. . 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 were $1.8 million, compared with $2.8 million a year ago. Operating income was $375,000 in the 2001 second quarter, compared with $683,000 last year. Results were impacted by weak demand for electronic components throughout the period. "Bell's balance sheet and cash position remain strong," said Edwards. "We believe the company is well positioned to weather the current economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. and emerge in an even stronger competitive role. The viability of our long term outlook and confidence in Bell's future was demonstrated recently with our board's action to authorize To empower another with the legal right to perform an action. The Constitution authorizes Congress to regulate interstate commerce. authorize v. to officially empower someone to act. (See: authority) a stock re-purchase program," he added. At June 30, 2001, Bell reported net working capital of $21.7 million, including $8.6 million in cash, and 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 $30.1 million, or $3.40 per share. 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 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 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, success in executing the strategic plan for Bell Tech.logix and the benefits to be derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from such plan, 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 Six months ended
June 30 June 30
2001 2000 2001 2000
Net sales $ 52,401 $ 61,064 $ 105,387 $ 115,991
Cost of sales 43,449 51,327 88,334 98,056
Selling and
administrative 8,655 8,611 16,742 16,385
Interest, net (108) (21) (272) (64)
Special items,
net (a) (b) 1,495 (437) 1,495 (437)
53,491 59,480 106,299 113,940
Income (loss) before
income taxes (1,090) 1,584 (912) 2,051
Income tax
expense (benefit) (431) 626 (361) 811
Net income (loss) $ (659) $ 958 $ (551) $ 1,240
Share and per share data
Net income (loss)
Basic $ (.07) $ .11 $ (.06) $ .13
Diluted $ (.07) $ .11 $ (.06) $ .13
Weighted average common stock
Basic 8,852 8,860 8,838 9,195
Diluted 8,875 8,860 8,877 9,245
Operating results by
business segment
Net sales
Systems Integration $ 36,396 $ 43,226 $ 76,024 $ 83,930
Recreational Products 14,227 15,088 25,152 26,976
Electronics Manufacturing 1,778 2,750 4,211 5,085
$ 52,401 $ 61,064 $ 105,387 $ 115,991
Operating income (loss)
Systems Integration (a) $ (853) $ (1,365) $ (752) $ (1,248)
Recreational Products 802 835 944 1,273
Electronics Manufacturing 375 683 934 1,264
Special items, net (b) (650) 2,242 (650) 2,242
Corporate costs (872) (832) (1,660) (1,544)
(1,198) 1,563 (1,184) 1,987
Interest, net 108 21 272 64
Income tax
benefit (expense) 431 (626) 361 (8,116)
Net income (loss) $ (659) $ 958 $ (551) $ 1,240
Note (a): Systems Integration operating results for the three and
six month periods ended June 30, 2001 and 2000 include pre-tax charges
of $845,000 and $1,805,000 for staff separation and facilities
consolidation costs related to the company's strategy implementation
and realignment efforts.
Note (b): Corporate related special item for the three and six
month periods ended June 30, 2001 represents settlement costs
associated with an executive change-in-control contract. Corporate
related special items for the three and six month periods ended June
30, 2000 include a pre-tax charge of $600,000 for a corporate identity
program offset by a pre-tax gain of $2,842,000 from the disposition of
a real estate asset.
Bell Industries Inc.
Consolidated Condensed Balance Sheet
(In thousands)
(Unaudited)
June 30, Dec. 31,
2001 2000
Assets
Current assets:
Cash and cash equivalents $ 8,646 $ 14,433
Accounts receivable, net 27,186 31,701
Inventories 11,692 15,065
Prepaid expenses and other 4,421 4,012
Total current assets 51,945 65,211
Fixed assets, net 6,225 4,238
Goodwill 2,177 1,540
Other assets 3,184 3,437
$ 63,531 $ 74,426
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 15,678 $ 24,492
Accrued payroll and liabilities 14,590 16,041
Total current liabilities 30,268 40,533
Long-term liabilities 3,146 3,411
Shareholders' equity 30,117 30,482
$ 63,531 $ 74,426
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