Bell Industries Reports Second 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)--Aug. 2, 2000 Bell Industries, Inc. (Amex:BI) today reported results for the second quarter and six months ended June June: see month. 30, 2000. 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 2000 three-month period rose to $61.1 million from $60.8 million last year. Net income for the second quarter was $958,000, or $.11 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, versus $2.1 million, or $.22 per diluted share, for the same period last year. Results for the 2000 quarter include a net, before-tax gain of $437,000 ($264,000 after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. ) in non-recurring items which included a $2.4 million charge in connection with facilities consolidation, staff relocations and costs associated with a new corporate identity program, offset by a $2.8 million gain from the disposition of a real estate asset in Mountain View, Calif. 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, said results for the second quarter continued to be affected by softness in demand for certain technology services, as well as sustained pressure on product margins in the company's largest business unit, Bell Tech.logix, formerly known as Bell's Systems Integration Group. He said the company is transitioning its services toward a total solutions orientation and has committed substantial resources to developing and leveraging its new brand. Bell Tech.logix had sales of $43.2 million for the 2000 second quarter, compared with $40.5 million last year. Excluding a $1.8 million special charge that was allocated to this business unit for facilities consolidation and staff relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. costs, income for the group totaled $440,000. Including the charge, the group 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 $1.4 million, versus 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 $1.4 million last year. The Recreational Products Group posted sales of $15.1 million for the 2000 second quarter and operating income of $835,000, compared with sales of $15.2 million and operating income of $1.5 million last year. The 2000 results reflect a shift in the sales mix sales mix See product mix. toward lower margin product lines and generally higher selling and administrative expenses. The 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 reported sales of $2.8 million versus $5.0 million a year ago, which included approximately $2.9 million in sales from a business that was sold in the third quarter of 1999. This group recorded operating income of $683,000, compared with $892,000 in the prior year, which included operating income of $430,000 from the sold business. For the first six months of 2000, Bell's net sales rose to $116.0 million from $114.9 million the previous year. Net income, including the $437,000 net, pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gain related to non-recurring items, amounted to $1.2 million, or $.13 per share, compared with $2.7 million, or $.28 per share, last year. At June 30, 2000, the company had net working capital of $24.1 million and no long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. 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 $29.4 million, or $3.34 per share, compared with a recent market price of $2.50. "Thus far, the year 2000 has been a period of significant transformation for Bell Industries," said Edwards. "We completed the 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. of the Bell Tech.logix 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 operations, completed the sale of the company's remaining real estate asset, installed a new board of directors and began to execute a comprehensive strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. and marketing process. While many challenges still exist, we are headed in the right direction and remain confident about Bell's long term future." Bell's primary business, Bell Tech.logix, is 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 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, current trends in its Tech.logix business, the success of its strategic planning and marketing process and other factors described in its public filings from time to time.
Bell Industries, Inc.
Consolidated Condensed Balance Sheet
(In thousands)
(Unaudited)
June 30, Dec. 31,
2000 1999
Assets
Current assets:
Cash and cash equivalents $ 11,713 $ 8,550
Accounts receivable, net 32,994 33,980
Inventories 15,168 19,588
Prepaid expenses and other 3,451 4,363
Real estate held for sale 109
Total current assets 63,326 66,590
Properties, net 4,216 4,239
Goodwill 1,573 1,394
Other assets 3,336 3,728
$ 72,451 $ 75,951
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 23,532 $ 23,444
Accrued payroll and liabilities 15,683 17,660
Total current liabilities 39,215 41,104
Long-term liabilities 3,811 4,051
Shareholders' equity 29,425 30,796
$ 72,451 $ 75,951
-0-
Bell Industries, Inc.
Consolidated Operating Results
(In thousands, except per share data)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
Net Sales $ 61,064 $ 60,781 $ 115,991 $ 114,932
Cost and expenses
Cost of products sold 51,327 49,460 98,054 94,486
Selling and
administrative 8,611 8,179 16,387 16,060
Interest, net (21) (418) (64) (58)
Special items, net(1) (437) (437)
59,480 57,221 113,940 110,488
Income before income
taxes 1,584 3,560 2,051 4,444
Income tax expense 626 1,423 811 1,777
Net income $ 958 $ 2,137 $ 1,240 $ 2,667
Share and per share data
Net income
Basic $ .11 $ .22 $ .13 $ .28
Diluted $ .11 $ .22 $ .13 $ .28
Weighted average
common stock
Basic 8,860 9,608 9,195 9,582
Diluted 8,860 9,624 9,245 9,600
Operating results by business segment
Net sales
Systems Integration $ 43,226 $ 40,535 $ 83,930 $ 79,240
Recreational Products 15,088 15,201 26,976 26,305
Electronics Manufacturing 2,750 5,045 5,085 9,387
$ 61,064 $ 60,781 $115,991 $114,932
Operating income
Systems Integration(1) $ (1,365) $ 1,406 $ (1,248) $ 2,653
Recreational Products 835 1,518 1,273 2,063
Electronics Manufacturing 683 892 1,264 1,268
Special items, net(1) 2,242 2,242
Corporate costs (832) (674) (1,544) (1,598)
1,563 3,142 1,987 4,386
Interest, net 21 418 64 58
Income tax expense (626) (1,423) (811) (1,777)
Net income $ 958 $ 2,137 $ 1,240 $ 2,667
(1) Operating results for the three and six month periods ended June
30, 2000 include a pre-tax charge of $2,405,000 for facilities
consolidation and staff relocation costs and a corporate identity
program. Approximately, $1,805,000 of the charge has been included in
the operating results of Systems Integration. Additionally, the 2000
operating results include a pre-tax gain of $2,842,000 from the
disposition of a real estate asset.
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