INDIANAPOLIS, May 14, 2010 (GLOBE NEWSWIRE) -- Bell Industries, Inc. (Pink Sheets:BLLI) today reported financial results for its first quarter ended March 31, 2010.
Revenues from continuing operations for the 2010 first quarter were $19.7 million, up 7.6% from $18.3 million a year ago, with a $1.2 million increase in revenues related to the company's Recreation Products Group segment and a $0.2 million increase in revenues related to the company's Bell Techlogix business. The company had a loss from continuing operations of $1.5 million, or $3.39 per share, for the 2010 first quarter, an improvement over the prior-year first quarter loss from continuing operations of $1.9 million, or $4.32 per share.
The company's Recreational Products Group reported revenues of $8.5 million for the 2010 first quarter, compared with $7.3 million in the 2009 first quarter. The increase in revenues was attributed primarily to higher sales in the marine and RV product lines generated by increased pre-season RV and marine product orders. The operating income of $40,000 for the first quarter of 2010 represented a $212,000 increase from the operating loss of $172,000 for the first quarter of 2009. This increase was attributed primarily to the $1.2 million increase in net revenues.
The Bell Techlogix business reported revenues of $11.2 million for the 2010 first quarter, compared with $11.0 million in the 2009 first quarter. This increase was attributed primarily to growth in depot and contact center service revenue partially offset by shortfalls in product revenue. Operating loss for the 2010 first quarter amounted to $407,000, an improvement of approximately $182,000 over the prior-year first quarter. This increase was attributed primarily to a decrease in overhead expenses due to the consolidation of certain overhead and support functions.
Bell's corporate costs for the 2010 first quarter totaled $859,000, a decrease of $47,000 from the $906,000 in costs for the 2009 first quarter. The decrease in costs was primarily related to reductions in headcount and the related benefits and travel costs.
"Many areas of our operations are experiencing an improving trend due to the stabilization and, in some cases, improvement of the overall economic environment," said Clinton J. Coleman, Chief Executive Officer of Bell Industries. "We anticipate that the Recreational Products Group will continue to perform strongly compared to the prior year as the RV and marine businesses trends improve. Bell Techlogix has been adding new customers and expanding engagements with existing customers, a trend that we also expect to continue."
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 replacement parts and accessories for recreational vehicles and other leisure-related vehicles, including boats, snowmobiles, motorcycles, all terrain vehicles and utility vehicles.
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 to drive 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 company's 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 Operating Results | |||
| (Unaudited) (In thousands, except per share data) | |||
|
Three months ended March 31, |
|||
| 2010 | 2009 | ||
| Net revenues: | |||
| Products | $ 13,549 | $ 12,501 | |
| Services | 6,164 | 5,826 | |
| Total net revenues | 19,713 | 18,327 | |
| Costs and expenses: | |||
| Cost of products sold | 11,013 | 10,215 | |
| Cost of services provided | 4,664 | 4,397 | |
| Selling, general and administrative | 5,262 | 5,382 | |
| Loss on sale of assets | (1) | -- | |
| Operating loss | (1,225) | (1,667) | |
| Interest expense, net | 244 | 208 | |
| Loss from continuing operations before benefit from income taxes | (1,469) | (1,875) | |
| Benefit from income taxes | -- | (2) | |
| Net loss | (1,469) | (1,873) | |
| Share and per share data | |||
| Basic and diluted: | |||
| Net loss | $ (3.39) | $ (4.32) | |
| Weighted average common shares outstanding | 433 | 433 | |
| OPERATING RESULTS BY BUSINESS SEGMENT | |||
| Net revenues: | |||
| Bell Techlogix | |||
| Products | $ 5,075 | $ 5,154 | |
| Services | 6,164 | 5,826 | |
| Total Bell Techlogix | 11,239 | 10,980 | |
| Recreational Products Group | 8,474 | 7,347 | |
| Total net revenues | $ 19,713 | $ 18,327 | |
| Operating income (loss): | |||
| Bell Techlogix | $ (407) | $ (589) | |
| Recreational Products Group | 40 | (172) | |
| Corporate costs | (859) | (906) | |
| Gain on sale of assets | (1) | -- | |
| Total operating loss | (1,225) | (1,667) | |
| Interest expense, net | 244 | 208 | |
| Loss from continuing operations before benefit from income taxes | $ (1,469) | $ (1,875) | |
| Bell Industries, Inc. | |||
| Consolidated Condensed Balance Sheets | |||
| (Unaudited) (In thousands, except per share data) | |||
|
March 31, 2010 |
December 31, 2009 |
||
| ASSETS | (Unaudited) | ||
| Current assets: | |||
| Cash and cash equivalents | $ 1,233 | $ 2,608 | |
| Accounts receivable, net | 11,537 | 9,210 | |
| Inventories, net | 8,366 | 8,012 | |
| Notes receivable | 100 | 300 | |
| Prepaid expenses and other current assets | 838 | 846 | |
| Total current assets | 22,074 | 20,976 | |
| Fixed assets, net | 691 | 802 | |
| Other assets | 840 | 775 | |
| Acquisition deposits | |||
| Total assets | $ 23,605 | $ 22,553 | |
| LIABILITIES AND SHAREHOLDERS' DEFICIT | |||
| Current liabilities: | |||
| Revolving credit facility | $ 1,599 | $ -- | |
| Accounts payable | 6,014 | 5,382 | |
| Accrued payroll | 2,389 | 1,882 | |
| Other accrued liabilities | 2,242 | 2,440 | |
| Total current liabilities | 12,244 | 9,704 | |
| Convertible note | 11,468 | 11,345 | |
| Other long-term liabilities | 3,438 | 3,592 | |
| Total liabilities | 27,150 | 24,641 | |
| Shareholders' deficit | (3,545) | (2,088) | |
| Total liabilities and shareholders' deficit | $ 23,605 | $ 22,553 | |