Bell Industries Reports Financial Results for Year 2000, Fourth Quarter; Company Progressing with Execution of Strategic Plan for Bell Tech.logix
EL SEGUNDO, Calif.--Feb. 8, 2001--Bell Industries, Inc. (AMEX:BI) today reported financial results for the year and fourth quarter ended Dec. 31, 2000.Net sales for the year rose to $251.9 million from $240.4 million in 1999. Net income for 2000 amounted to $2.3 million, or $.26 per diluted share, compared with income from continuing operations of $5.5 million, or $.57 per share, last year. Including a reserve recovery from discontinued operations, net income for 1999 was $6.9 million, or $.71 per diluted share.
For the 2000 fourth quarter, sales rose 29% to $63.2 million from $48.9 million a year ago. Bell reported 2000 fourth quarter net income of $570,000, equal to $.06 per diluted share, compared with income from continuing operations of $1.1 million, or $.12 per diluted share, in 1999. Including the reserve recovery from discontinued operations, net income for the 1999 fourth quarter was $2.5 million, or $.26 per diluted share.
Tracy A. Edwards, chairman, president and chief executive officer, said, "Over the last year, we completed and began to execute a comprehensive strategic plan related to the transformation of our principal operating unit, Bell Tech.logix. We achieved significant progress initiating major organizational changes, bringing in new senior executives, executing branding and marketing strategies, optimizing delivery models and making infrastructure investments. These continuing efforts are expected to position the company well for the long term."
Edwards said, "Bell's earnings continued to be impacted by general economic weakness in the technology sector, along with approximately $900,000 in non-recurring costs, incurred during the third and fourth quarters, related to the company's strategic planning and realignment effort." He attributed the sharp increase in fourth quarter sales to major deployment projects associated with a large customer of Bell Tech.logix.
"Our financial condition remains strong, with no bank borrowings," said Edwards. "We will continue to plan prudently and maintain tight cost controls as we proactively expand our sales and marketing efforts, as well as aggressively implement our strategic initiatives."
Bell's Recreational Products Group posted sales of $49.8 million for 2000, versus $49.0 million last year, and $9.8 million for the 2000 fourth quarter, compared with $9.6 million a year ago. Operating income amounted to $1.7 million for 2000, compared with $3.0 million last year, and $138,000 for the 2000 fourth quarter, compared with $264,000 a year ago. The 2000 results were affected by product mix, margin pressures and increased operating costs, primarily fuel and related delivery costs.
Sales for the company's electronics manufacturing group totaled $13.2 million for 2000, compared with $13.9 million a year ago, including $6.1 million in sales from a business sold in July 1999. For the fourth quarter, sales rose to $3.7 million from $1.9 million. Operating income for the year advanced to $3.3 million from $1.8 million in 1999, and for the fourth quarter rose to $956,000 from $406,000 a year earlier. Record sales and operating results were achieved for the year and fourth quarter of 2000 at the remaining electronics manufacturing business, which experienced generally strong demand for magnetic and related electronic components throughout 2000.
At Dec. 31, 2000, Bell reported net working capital of $24.7 million, including $14.4 million in cash, and had no bank borrowings. The company's cash position at Dec. 31, 2000 reflects favorable collection results principally from major projects during the 2000 fourth quarter and was not indicative of balances maintained throughout 2000. Shareholders' equity totaled $30.5 million, or $3.47 per share, compared with a recent market price of approximately $3.00.
Bell's primary business, Bell Tech.logix, is a multi-regional provider of integrated computer technology solutions for large and middle market organizations. Bell also distributes after-market parts and accessories to the recreational vehicle market and manufactures specialized 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, the success of repositioning Bell Tech.logix, general business and cash trends 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)
Three months ended Year ended
December 31 December 31
2000 1999 2000 1999
Net sales $ 63,178 $ 48,902 $ 251,887 $ 240,420
Costs and expenses
Cost of products sold 53,791 39,795 214,831 199,012
Selling and administrative 8,529 8,245 33,910 33,514
Interest, net (86) (82) (254) (139)
Special items, net (a) - (881) (437) (1,042)
62,234 47,077 248,050 231,345
Income from continuing
operations before income
taxes 944 1,825 3,837 9,075
Income tax expense 374 688 1,518 3,587
Income from continuing
operations 570 1,137 2,319 5,488
Reserve recovery from
discontinued operations - 1,379 - 1,379
Net income $ 570 $ 2,516 $ 2,319 $ 6,867
Share and per share data
Income from continuing
operations
Basic $ .06 $ .12 $ .26 $ .57
Diluted $ .06 $ .12 $ .26 $ .57
Net income
Basic $ .06 $ .26 $ .26 $ .72
Diluted $ .06 $ .26 $ .26 $ .71
Weighted average common
stock
Basic 8,773 9,608 8,999 9,595
Diluted 8,773 9,713 9,025 9,646
OPERATING RESULTS BY BUSINESS SEGMENT
Net sales
Systems Integration $ 49,657 $ 37,426 $ 188,907 $ 177,530
Recreational Products 9,805 9,613 49,799 48,985
Electronics Manufacturing 3,716 1,863 13,181 13,905
$ 63,178 $ 48,902 $ 251,887 $ 240,420
Operating income
Systems Integration (a) $ 807 $ 908 $ 10 $ 5,726
Recreational Products 138 264 1,666 3,029
Electronics
Manufacturing (d) 956 406 3,317 1,765
Special items (a)(c) - 881 2,242 1,497
Corporate costs (b) (1,043) (716) (3,652) (3,081)
858 1,743 3,583 8,936
Interest, net 86 82 254 139
Income tax expense (374) (688) (1,518) (3,587)
Income from continuing
operations $ 570 $ 1,137 $ 2,319 $ 5,488
(a) Operating results for the year ended December 31, 2000 include a
pre-tax charge of $2,405,000 for facilities consolidation and
staff relocation costs, asset write-downs 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.
(b) Corporate costs for the three months and year ended December 31,
2000 include $390,000 and $880,000 of costs associated with the
Company's strategic planning and realignment initiatives.
(c) Operating results for the fourth quarter and year ended 1999
include pretax gains of $881,000 and $1,497,000 on the
disposition of certain real estate assets, respectively.
(d) Operating results for the year ended 1999 include a pretax loss
of $455,000 on the disposition of an electronics manufacturing
division.
Bell Industries, Inc.
Consolidated Condensed Balance Sheet
(In thousands)
December 31 2000 1999
ASSETS
Current assets:
Cash and cash equivalents $ 14,433 $ 8,550
Accounts receivable, net 31,701 33,980
Inventories 15,065 19,588
Prepaid expenses and other 4,012 4,363
Real estate held for sale - 109
Total current assets 65,211 66,590
Properties, net 4,238 4,239
Goodwill 1,540 1,394
Other assets 3,437 3,728
$ 74,426 $ 75,951
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 24,492 $ 23,444
Accrued liabilities and payroll 16,041 17,660
Total current liabilities 40,533 41,104
Long-term liabilities 3,411 4,051
Shareholders' equity 30,482 30,796
$ 74,426 $ 75,951