INDIANAPOLIS, Aug. 16, 2010 (GLOBE NEWSWIRE) -- Bell Industries, Inc. (Pink Sheets:BLLI) today reported financial results for its second quarter ended June 30, 2010.
Revenues from continuing operations for the 2010 second quarter were $30.2 million, up 9.7% from $27.5 million a year ago, with a $1.6 million increase in revenues related to the company's Recreation Products Group segment and a $1.1 million increase in revenues related to the company's Bell Techlogix business. The company had net income of $0.6 million, or $1.44 per share, for the 2010 second quarter, an improvement over the prior-year second quarter net income of $0.2 million, or $0.49 per share.
The company's Recreational Products Group reported revenues of $12.6 million for the 2010 second quarter, compared with $11.0 million in the 2009 second quarter. The 14.6% increase in revenues was attributed primarily to increased in-season sales of marine and RV product lines. RPG's operating income of $1.2 million for the second quarter of 2010 represented a $0.2 million increase from the operating income of $1.0 million for the second quarter of 2009. This increase was attributed primarily to the increase in net revenues.
The Bell Techlogix business reported revenues of $17.6 million for the 2010 second quarter, compared with $16.5 million in the 2009 second quarter. This 6.5% increase was attributed primarily to growth in product sales and managed service engagements. Bell Techlogix's operating income for the 2010 second quarter was $0.5 million, representing a slight improvement over the second quarter of 2009. This increase was attributed primarily to the increase in revenue and a decrease in overhead expenses, partially offset by the benefit of certain non-recurring fees and billing accruals in the prior year period.
Bell's corporate holding company costs for the 2010 second quarter totaled $0.8 million, an 18% decrease from the prior year period. The decrease in costs was primarily related to reductions in headcount and the related costs. The corporate holding company costs have declined as the company continues to transfer the administrative functions previously performed by the holding company to the business units, which generally operate independently of each other.
"While the gradually improving economic environment has continued to support our business trends, each of our operating businesses are also successfully executing their specific growth strategies," said Clinton J. Coleman, Chief Executive Officer of Bell Industries. "We anticipate that the Recreational Products Group will continue to experience growth over the prior year as a result of improved trends in the RV and marine segments. Bell Techlogix is renewing and expanding existing engagements while adding significant new managed service customers, the combination of which is expected to drive further earnings growth."
About Bell Industries, Inc.
Bell Industries is a holding company for two operating businesses, 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.
| Bell Industries, Inc. | ||||||||||
| Consolidated Condensed Operating Results | ||||||||||
| (In thousands, except per share data) | ||||||||||
|
Three months ended June 30, |
Six months ended June 30, |
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| 2010 | 2009 | 2010 | 2009 | |||||||
| Net revenues: | ||||||||||
| Products | $ 23,589 | $ 21,190 | $ 37,138 | $ 33,691 | ||||||
| Services | 6,608 | 6,334 | 12,772 | 12,160 | ||||||
| Total net revenues | 30,197 | 27,524 | 49,910 | 45,851 | ||||||
| Costs and expenses: | ||||||||||
| Cost of products sold | 18,872 | 16,959 | 29,885 | 27,174 | ||||||
| Cost of services provided | 4,831 | 4,421 | 9,495 | 8,818 | ||||||
| Selling, general and administrative | 5,578 | 5,643 | 10,840 | 11,025 | ||||||
| Gain on sale of assets | (15) | -- | (16) | -- | ||||||
| Operating income (loss) | 931 | 501 | (294) | (1,166) | ||||||
| Interest expense, net | 309 | 290 | 553 | 498 | ||||||
| Income (loss) from continuing operations before benefit from income taxes | 622 | 211 | (847) | (1,664) | ||||||
| Benefit from income taxes | -- | (5) | -- | (7) | ||||||
| Net income (loss) | 622 | 216 | (847) | (1,657) | ||||||
| Share and per share data | ||||||||||
| Basic: | ||||||||||
| Net income (loss) | $ 1.44 | $ 0.49 | $ (1.96) | $ (3.82) | ||||||
| Weighted average common shares outstanding | 433 | 433 | 433 | 433 | ||||||
| Diluted: | ||||||||||
| Net income (loss) | $ 0.18 | $ 0.06 | $ (1.96) | $ (3.82) | ||||||
| Weighted average common shares outstanding | 3,425 | 3,308 | 433 | 433 | ||||||
| OPERATING RESULTS BY BUSINESS SEGMENT | ||||||||||
| Net revenues: | ||||||||||
| Bell Techlogix | ||||||||||
| Products | $ 10,974 | $ 10,182 | $ 16,049 | $ 15,336 | ||||||
| Services | 6,608 | 6,334 | 12,772 | 12,160 | ||||||
| Total Bell Techlogix | 17,582 | 16,516 | 28,821 | 27,496 | ||||||
| Recreational Products Group | 12,615 | 11,008 | 21,089 | 18,355 | ||||||
| Total net revenues | $ 30,197 | $ 27,524 | $ 49,910 | $ 45,851 | ||||||
| Operating income (loss): | ||||||||||
| Bell Techlogix | $ 467 | $ 438 | $ 60 | $ (151) | ||||||
| Recreational Products Group | 1,224 | 1,002 | 1,264 | 830 | ||||||
| Corporate costs | (775) | (939) | (1,634) | (1,845) | ||||||
| Gain on sale of assets | (15) | -- | (16) | -- | ||||||
| Total operating income (loss) | 931 | 501 | (294) | (1,166) | ||||||
| Interest expense, net | 309 | 290 | 553 | 498 | ||||||
| Income (loss) from continuing operations before benefit from income taxes | $ 622 | $ 211 | $ (847) | $ (1,664) | ||||||
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Bell Industries, Inc. |
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| Consolidated Condensed Balance Sheet | ||
| (In thousands) | ||
|
June 30, 2010 |
December 31, 2009 |
|
| ASSETS | (Unaudited) | |
| Current assets: | ||
| Cash and cash equivalents | $ 694 | $ 2,608 |
| Accounts receivable, net | 13,063 | 9,210 |
| Inventories, net | 7,878 | 8,012 |
| Notes receivable | -- | 300 |
| Prepaid expenses and other current assets | 1,584 | 846 |
| Total current assets | 23,219 | 20,976 |
| Fixed assets, net | 630 | 802 |
| Other assets | 798 | 775 |
| Acquisition deposits | ||
| Total assets | $ 24,647 | $ 22,553 |
| LIABILITIES AND SHAREHOLDERS' DEFICIT | ||
| Current liabilities: | ||
| Revolving credit facility | $ 2,635 | $ -- |
| Accounts payable | 6,222 | 5,382 |
| Accrued payroll | 1,713 | 1,882 |
| Other accrued liabilities | 2,017 | 2,440 |
| Total current liabilities | 12,587 | 9,704 |
| Convertible note | 11,593 | 11,345 |
| Other long-term liabilities | 3,381 | 3,592 |
| Total liabilities | 27,561 | 24,641 |
| Shareholders' deficit | (2,914) | (2,088) |
| Total liabilities and shareholders' deficit | $ 24,647 | $ 22,553 |