INDIANAPOLIS, Aug. 14, 2009 (GLOBE NEWSWIRE) -- Bell Industries, Inc. (Pink Sheets:BLLI) today reported financial results for its second quarter and six months ended June 30, 2009.
Revenues from continuing operations for the 2009 second quarter were $27.5 million, up 5.2% from $26.1 million a year ago, with a $2.3 million increase in revenues related to the company's Bell Techlogix's business partially offset by a $0.9 million decrease in revenues related to its Recreational Products Group. The company had income from continuing operations of $216,000, or $0.49 per basic share for the 2009 second quarter. This reflects a significant improvement over the prior-year second quarter loss from continuing operations of $1.4 million, or $3.30 per share. In the second quarter of 2008, the company also had a loss from discontinued operations of $3.4 million, or $7.81 per share, resulting in a net loss for the prior year second quarter of $4.8 million, or $11.11 per share.
The company announced in February 2008 that it completed the sale of SkyTel's automated vehicle location business to SkyGuard LLC for $7.0 million. On June 13, 2008, the company completed the sale of the remainder of the SkyTel business to Velocita Wireless, LLC ("Velocita") for total consideration of $7.5 million. Subsequent to the closing, Velocita agreed to pay the company additional consideration in the form of a working capital adjustment in the amount of $1.5 million. As a result of these transactions, the SkyTel division has been reflected as a discontinued operation in the company's results of operations for the three and six month periods ended June 30, 2009 and 2008.
For the first half of 2009, revenues from continuing operations were $45.9 million, down 6.9% from $49.2 million a year ago, with the entire decrease in revenues related to the company's Recreational Products Group. The company incurred a loss from continuing operations of $1.7 million, or $3.82 per share, for the year-to-date period. This reflects an improvement over the loss from continuing operations of $2.1 million, or $4.87 per share, for the first half of 2008. In the first half of 2008, the company also had a loss from discontinued operations of $1.9 million, or $4.30 per share, resulting in a net loss for the first six months of 2008 of $3.9 million, or $9.17 per share.
The Bell Techlogix business posted revenues of $16.5 million for the 2009 second quarter, compared with $14.2 million in the 2008 second quarter. This increase was due primarily to hardware and software sales into the K-12 and higher education markets. Operating income for the 2009 second quarter amounted to $438,000, increasing by approximately $404,000 over the prior-year second quarter. This increase was attributed to an increase of gross profit primarily related to higher product revenues and a contract termination fee and a decrease in selling, general and administrative ("SG&A") expenses due primarily to reductions in salaries and wages and shipping costs.
The company's Recreational Products Group reported revenues of $11.0 million for the 2009 second quarter, compared with $11.9 million in the 2008 second quarter. The company attributed the decrease in revenues primarily to lower sales in the recreational vehicle and marine product lines resulting from a continued decline in consumer spending at dealers. The operating income of $1.0 million for the second quarter of 2009 represented a $314,000 increase from the operating income of $688,000 for the second quarter of 2008. Although revenues were down year-over year, there was a 230 basis point improvement in gross profit margins and SG&A expenses decreased from $2.6 million for the 2008 second quarter to $2.3 million for the 2009 second quarter due to reductions in headcount, freight and facility costs.
We are pleased that both of our operating units generated operating income for the quarter on improved results versus the 2008 second quarter, and the fact that our consolidated results for the quarter generated $216,000 of net income," said Kevin J. Thimjon, president and chief financial officer of Bell Industries. "We continue to closely manage our costs and make investments in our businesses where we see the best opportunities for profitable growth."
Bell's corporate costs for the 2009 second quarter totaled $939,000, an increase of approximately $164,000 from the $775,000 for the 2008 second quarter. The 2008 second quarter results benefited from a $200,000 favorable legal settlement.
About Bell Industries, Inc.
Bell Industries is comprised of two operating units, Bell Techlogix and the Recreational Products Group. Bell Techlogix is a provider of integrated technology product and service solutions for organizations throughout the United States. The Recreational Products Group is a wholesale distributor of aftermarket parts and accessories for the recreational vehicles and other leisure-related vehicle markets, including marine, snowmobile, cycle and ATV.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements, including, but not limited to closely managing costs and making investments in our business where we see the best opportunities for profitable growth, are based upon current expectations and speak only as of the date hereof. Actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including uncertainties as to the nature of the company's industry, including changing customer demand, the impact of competitive products and pricing, dependence on existing management and general economic conditions. Bell Industries' Annual Report on Form 10-K, recent and forthcoming Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings discuss some of the important risk factors that may affect the business, results of operations and financial condition. The company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
(Tables Follow)
Bell Industries, Inc.
Consolidated Condensed Statements of Operations
(Unaudited, in thousands, except per share data)
Three months ended Six months ended
June 30, June 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Net revenues:
Products $ 21,190 $ 19,569 $ 33,691 $ 35,299
Services 6,334 6,585 12,160 13,943
-------- -------- -------- --------
Total net revenues 27,524 26,154 45,851 49,242
-------- -------- -------- --------
Costs and expenses:
Cost of products sold 16,959 15,513 27,174 28,273
Cost of services provided 4,421 4,747 8,818 9,686
Selling, general and
administrative expenses 5,643 5,947 11,025 11,861
Interest expense, net 290 307 498 446
Loss on extinguishment
of debt -- 1,053 -- 1,053
-------- -------- -------- --------
Total costs and expenses 27,313 27,567 47,515 51,319
-------- -------- -------- --------
Income (loss) from continuing
operations before provision
for (benefit from) income
taxes 211 (1,413) (1,664) (2,077)
Provision for (benefit from)
income taxes (5) 17 (7) 33
-------- -------- -------- --------
Income (loss) from continuing
operations 216 (1,430) (1,657) (2,110)
-------- -------- -------- --------
Loss from discontinued
operations, net of tax -- (3,381) -- (1,862)
-------- -------- -------- --------
Net income (loss) $ 216 $ (4,811) $ (1,657) $ (3,972)
======== ======== ======== ========
Share and per share data
Basic:
Income (loss) from
continuing operations $ 0.49 $ (3.30) $ (3.82) $ (4.87)
Loss from discontinued
operations -- (7.81) -- (4.30)
-------- -------- -------- --------
Net income (loss) $ 0.49 $ (11.11) $ (3.82) $ (9.17)
======== ======== ======== ========
Weighted average common
shares outstanding 433 433 433 433
======== ======== ======== ========
Diluted
Income (loss) from
continuing operations $ 0.06 $ (3.30) $ (3.82) $ (4.87)
Loss from discontinued
operations -- (7.81) -- (4.30)
-------- -------- -------- --------
Net income (loss) $ 0.06 $ (11.11) $ (3.82) $ (9.17)
======== ======== ======== ========
Weighted average common
shares outstanding 3,308 433 433 433
======== ======== ======== ========
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OPERATING RESULTS BY BUSINESS SEGMENT
Net revenues:
Bell Techlogix
Products $ 10,182 $ 7,641 $ 15,336 $ 13,480
Services 6,334 6,585 12,160 13,943
-------- -------- -------- --------
Total Bell Techlogix 16,516 14,226 27,496 27,423
Recreational Products Group 11,008 11,928 18,355 21,819
-------- -------- -------- --------
Total net revenues $ 27,524 $ 26,154 $ 45,851 $ 49,242
======== ======== ======== ========
Operating income (loss):
Bell Techlogix $ 438 $ 34 $ (151) $ 458
Recreational Products
Group 1,002 688 830 876
Corporate costs (939) (775) (1,845) (1,912)
-------- -------- -------- --------
Total operating income
(loss) 501 (53) (1,166) (578)
Loss on extinguishment
of debt -- 1,053 -- 1,053
Interest expense, net 290 307 498 446
-------- -------- -------- --------
Income (loss) from
continuing operations
before income taxes $ 211 $ (1,413) $ (1,664) $ (2,077)
======== ======== ======== ========
Bell Industries, Inc.
Consolidated Condensed Balance Sheets
(Dollars in thousands)
June 30, Dec. 31,
2009 2008
--------- ---------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 39 $ 3,233
Accounts receivable, net 12,688 8,096
Inventories, net 7,545 8,770
Notes receivable 1,000 3,000
Prepaid expenses and other current assets 1,259 1,819
--------- ---------
Total current assets 22,531 24,918
Fixed assets, net 1,094 1,475
Other assets 971 867
--------- ---------
Total assets $ 24,596 $ 27,260
========= =========
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities:
Floor plan payables $ -- $ 291
Revolving credit facility 461 --
Accounts payable 6,461 7,189
Accrued payroll 1,577 1,462
Other accrued liabilities 3,277 3,671
--------- ---------
Total current liabilities 11,776 12,613
Convertible note 11,091 10,840
Other long-term liabilities 3,606 4,063
--------- ---------
Total liabilities 26,473 27,516
Shareholders' deficit (1,877) (256)
--------- ---------
Total liabilities and shareholders' deficit $ 24,596 $ 27,260
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