Bell Industries Reports 2005 First Quarter Results
May 05 2005 - 6:20AM
Business Wire
Bell Industries, Inc. (AMEX:BI) today reported financial results
for the three months ended March 31, 2005. Consolidated net
revenues for the 2005 first quarter totaled $28.7 million, compared
with $34.4 million in the prior-year period. Bell's net loss
amounted to $677,000, or $0.08 per share, compared with $699,000,
also equal to $0.08 per share, in the first quarter of 2004. "A
realigned cost structure enabled us to reduce the company's net
loss for the period, in spite of lower revenues resulting from
reduced technology product sales and the previously communicated
ending of an outsourcing engagement last year, as well as the
ending of a help desk engagement in the current year first
quarter," said Russell A. Doll, acting president and chief
executive officer. "Operating efficiencies were achieved while we
continued to invest in business development and strategic growth
initiatives. While first quarter results were negatively impacted
by the termination of certain engagements, heightened business
development activities at Bell's largest operating unit, the
Tech.logix Group (BTL), resulted in new and expanded engagements
during April in the areas of depot repair, reverse logistics and
wireless device management, despite the extremely challenging and
competitive IT services environment. We believe these engagements
serve as a good foundation for attracting similar business in the
future," Doll added. For the 2005 first quarter, BTL posted total
revenues of $15.4 million, compared with $20.8 million in the same
period a year ago. Products and services revenues declined to $8.2
million and $7.2 million, respectively, from approximately $12.5
million and $8.3 million in the 2004 first quarter. These decreases
in revenues are attributable to reduced technology product sales
and the ending of certain services engagements, partially offset by
revenues from new and expanded engagements. Product sales continue
to experience significant volatility due to direct sales models,
intense competition and technology purchasing cycles. BTL sustained
an operating loss for the 2005 first quarter of $767,000, compared
with a $563,000 operating loss a year ago. Sales at Bell's
Recreational Products Group (RPG) amounted to $11.4 million for the
three months ended March 31, 2005, compared with $11.5 million in
the prior-year period. Benefiting from increases in pricing and a
shift in product mix, RPG posted higher margins, and operating
income more than doubled to $218,000 from $106,000 in the year-ago
first quarter. Doll said additional efficiencies are expected to be
realized in 2005 from technology investments made last year to
enhance sales, order and inventory processes. J.W. Miller, Bell's
electronic components operation, recorded sales of $1.9 million in
the 2005 first quarter, compared with $2.1 million a year earlier.
Operating income was moderately lower at $425,000, compared with
$438,000 in the same 2004 period. Although the market softened in
the first quarter 2005 compared with 2004, increased sales of
custom products led to a higher overall gross margin percentage
during the 2005 period. Bell continues to maintain a strong balance
sheet with no bank debt. At March 31, 2005, cash and cash
equivalents totaled $ 7.0 million and net working capital amounted
to $18.6 million, compared with $7.2 million and $17.5 million,
respectively, at March 31, 2004. Shareholders' equity totaled $20.2
million, or $2.39 per share, at March 31, 2005. Bell's primary
business, the Tech.logix Group, offers a comprehensive portfolio of
technology products and managed lifecycle services, including
planning, product sourcing, deployment and disposal, and support
services. Support services include help desk support, desk side
support, technical maintenance services, and reverse logistics and
depot services. Bell also distributes after-market 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, lighting, and telecommunication 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 new engagements
and strengthened business development activities by BTL, benefits
from technology investments at RPG, and other factors described in
the company's public filings from time to time. -0- *T Bell
Industries, Inc. Consolidated Operating Results (In thousands,
except per share data) (Unaudited) Three months ended March 31 2005
2004 Net revenues: Products $ 21,484 $ 26,095 Services 7,204 8,333
------------ ------------ 28,688 34,428 ------------ ------------
Costs and expenses Cost of products sold 16,874 21,415 Cost of
services provided 6,012 6,732 Selling and administrative 6,516
7,010 Interest, net (52) (30) ------------ ------------ 29,350
35,127 ------------ ------------ Loss before income taxes (662)
(699) Income tax expense 15 ------------ ------------ Net loss $
(677) $ (699) ============ ============ Basic and diluted share
data Net loss per share $ (.08) $ (.08) ============ ============
Weighted average common stock 8,454 8,371 ============ ============
OPERATING RESULTS BY BUSINESS SEGMENT Net revenues: Technology
Solutions Products $ 8,228 $ 12,442 Services 7,204 8,333
------------ ------------ 15,432 20,775 Recreational Products
11,391 11,520 Electronic Components 1,865 2,133 ------------
------------ $ 28,688 $ 34,428 ============ ============ Operating
income (loss): Technology Solutions $ (767) $ (563) Recreational
Products 218 106 Electronic Components 425 438 Corporate costs
(590) (710) ------------ ------------ (714) (729) Interest, net 52
30 Income tax expense (15) ------------ ------------ Net loss $
(677) $ (699) ============ ============ Bell Industries, Inc.
Consolidated Condensed Balance Sheet (In thousands) (Unaudited)
March 31, December 31, 2005 2004 ASSETS Current assets: Cash and
cash equivalents $ 7,064 $ 10,801 Accounts receivable, net 16,656
11,455 Inventories 14,633 14,364 Prepaid expenses and other 1,764
1,813 ------------ ------------ Total current assets 40,117 38,433
------------ ------------ Fixed assets, net 3,002 3,139 Other
assets 3,505 3,617 $ 46,624 $ 45,189 ============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts
payable $ 13,717 $ 11,170 Accrued payroll and liabilities 7,837
8,178 ------------ ------------ Total current liabilities 21,554
19,348 ------------ ------------ Long-term liabilities 4,876 5,025
Shareholders' equity 20,194 20,816 ------------ ------------ $
46,624 $ 45,189 ============ ============ *T
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