EX-99.1 2 release930.txt PRESS RELEASE Nu Horizons Electronics Corp. 70 Maxess Road, Melville, NY 11747 631-396-5000 Fax: 631-396-5060 Company Contact: Paul Durando Nu Horizons Electronics Corp. 631-396-5000 FOR IMMEDIATE RELEASE --------------------- NU HORIZONS REPORTS FINANCIAL AND OPERATING RESULTS FOR THE SECOND QUARTER OF FISCAL YEAR 2005 MELVILLE, NY, September 30, 2004 --- Nu Horizons Electronics Corp. (Nasdaq/NM: NUHC), a leading distributor of active and passive electronic components today reported financial and operating results for the second quarter and six months ended August 31, 2004. Net sales for the quarter ended August 31, 2004 were $119.2 million compared to $80.0 million for the comparable period last year, an increase of 49%. Net income for the quarter was $1,186,000 or $0.07 per share on 16,884,147 basic shares outstanding [$.07 per share on 17,663,839 diluted shares], compared to a net loss of $(623,000) or $(0.04) per share on 16,681,145 basic and diluted shares outstanding in the same period last year. For the six months ended August 31, 2004, net sales increased to $237.4 million from $152.8 million in the comparable period last year, an increase of 55%. Net income for the first half of fiscal 2005 was $2,372,000 or $0.14 per share on 16,884,147 basic shares outstanding [$0.13 per share on 17,875,443 diluted shares], compared with a net loss of $(1,454,000), or $(0.09) per share on 16,678,093 basic and diluted shares outstanding in the year-earlier period. Arthur Nadata, chairman of the board and chief executive officer of Nu Horizons, said, "Sales and net income, year over year and quarter over quarter, showed substantial gains as our industry continued its recovery from the downturn experienced a few years ago. While we were able to report a slight increase in sequential sales for the quarter ended August 31, 2004, $119.2 million as compared to $118.2 million for the quarter ended May 31, 2004, in practical terms sales remained relatively flat after five quarters of substantial sequential sales increases." Nadata continued, "This slowing in our sequential rate of growth appears to be an industry-wide phenomenon, which also coincides with the historically slower sales activity in the summer period. The question is whether it is a temporary pause or a more permanent slowing of industry growth. We believe that the next six to nine months will result in a more modest sequential industry growth rate than was experienced over the past eighteen months." (more) NUHC Reports Second Quarter Fiscal 2005 Results Page 2 Nadata concluded, "Our gross margins appear to have stabilized and have actually improved modestly over the past two quarters. We believe that our overall sales growth should continue to be positively impacted by our demand creation model approach which should allow us to maintain margins as well as continue to increase our market share although no assurances can be given in this regard." A conference call to further discuss earnings will be held today at 4:15 pm ET. The call can be accessed by dialing (800) 915 - 4836, (international, dial (973) 317 - 5319) and refer to the Nu Horizons call. A webcast of the call will be available on line (both live and after the call, beginning at 7:00 pm ET) at www.nuhorizons.com. A rebroadcast of the call will be available, beginning at 7:00 pm ET at (800) 428 - 6051 (international, dial (973) 709 - 2089) confirmation code 307564. A transcript of the webcast will remain available on the website for a period of twelve months, beginning one week after the call. In connection with the conference call, Nu Horizons has posted on its website certain information regarding its second quarter results. About Nu Horizons Electronics Corp. Nu Horizons is a leading distributor of high technology active components, including analog, communications, discretes, optical, logic & peripherals, memory, microcontrollers, system on chip (SOC), board level and computer system products to a wide variety of commercial original equipment manufacturers (OEMs). With sales facilities in thirty-three locations across North America and Asia, and logistics centers in centralized locations throughout the globe, Nu Horizons partners with a limited number of best-in-class suppliers to provide in-depth product and solutions expertise to its customers. Information on Nu Horizons and its services is available at www.nuhorizons.com. The Company does not undertake any obligation to update its forward-looking statements. Except for historical information contained herein, the matters set forth in this news release are forward looking statements. When used in this press release, words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to Nu Horizons or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of Nu Horizons' management, as well as assumptions made by and information currently available to its management. Forward-looking statements involve certain risks and uncertainties that could cause actual results to differ from those in the forward looking-statements. Potential risks and uncertainties include such factors as the level of business and consumer spending for electronic products, the amount of sales of the Company's products, the competitive environment within the electronics industry, the ability of the Company to continue to expand its operations, the level of costs incurred in connection with the Company's expansion efforts and the financial strength of the Company's customers and suppliers. Investors are also directed to consider other risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission. Such statements reflect our current view with respect to the future and are subject to these and other risks, uncertainties and assumptions relating to Nu Horizons' financial condition, results of operations, growth strategy and liquidity. The Company does not undertake any obligation to update its forward-looking statements. (Tables Follow) NUHC Reports Second Quarter Fiscal 2005 Results Page 3
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES ---------------------------------------------- CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS ----------------------------------------------- (unaudited) For the Six Months Ended For the Three Months Ended ------------------------------------- ------------------------------------- August 31, 2004 August 31, 2003 August 31, 2004 August 31, 2003 --------------- --------------- --------------- --------------- NET SALES $ 237,407,958 $ 152,768,252 $ 119,231,880 $ 79,965,110 ----------------- ----------------- ----------------- ----------------- COSTS AND EXPENSES: Cost of sales 198,054,472 124,341,742 99,493,834 65,570,341 Operating expenses 34,434,691 30,755,068 17,250,611 15,401,486 Interest expense 785,686 77,588 452,992 57,066 Interest income (29,919) (101,217) (26,188) (92,313) ----------------- ----------------- ----------------- ----------------- 233,244,930 155,073,181 117,171,249 80,936,580 ----------------- ----------------- ----------------- ------------------ INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES AND MINORITY INTERESTS 4,163,028 (2,304,929) 2,060,631 (971,470) Provision (credit) for income taxes 1,578,181 (1,017,601) 787,413 (432,497) ----------------- ----------------- ----------------- ----------------- INCOME (LOSS) BEFORE MINORITY INTERESTS 2,584,847 (1,287,328) 1,273,218 (538,973) Minority interest in earnings of subsidiaries 212,892 166,895 87,181 83,879 ----------------- ----------------- ----------------- ----------------- NET INCOME (LOSS) $ 2,371,955 $ (1,454,223) $ 1,186,037 $ (622,852) ================= ================= ================= ================= NET INCOME (LOSS) PER COMMON SHARE: Basic $ .14 $ (.09) $ .07 $ (.04) ================= ================= ================= ================= Diluted $ .13 $ (.09) $ .07 $ (.04) ================= ================= ================= ================= WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 16,884,147 16,678,093 16,884,147 16,681,145 Diluted 17,875,443 16,678,093 17,663,839 16,681,145
NUHC Reports Second Quarter Fiscal 2005 Results Page 4
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES ---------------------------------------------- CONSOLIDATED CONDENSED BALANCE SHEETS ------------------------------------- August 31, February 29, ------------------- ------------------- 2004 2004 (unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 10,230,728 $ 12,469,973 Accounts receivable - net of allowance for doubtful accounts of $4,621,311 and $4,089,801 for August 31, 2004 and February 29, 2004, respectively 70,557,912 68,230,405 Inventories 116,618,873 68,729,081 Prepaid expenses and other current assets 1,528,897 794,086 -------------------- -------------------- TOTAL CURRENT ASSETS 198,936,410 150,223,545 PROPERTY, PLANT AND EQUIPMENT - NET 4,214,669 4,401,898 OTHER ASSETS: Subordinated note receivable 2,000,000 2,000,000 Other assets 1,660,138 1,552,728 -------------------- -------------------- $ 206,811,217 $ 158,178,171 ==================== ==================== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 28,121,860 $ 21,479,465 Accrued expenses 4,196,978 5,250,006 -------------------- -------------------- TOTAL CURRENT LIABILITIES 32,318,838 26,729,471 -------------------- -------------------- LONG TERM LIABILITIES: Revolving credit line 46,100,000 5,300,000 Deferred income taxes 390,566 280,495 -------------------- -------------------- TOTAL LONG-TERM LIABILITIES 46,490,566 5,580,495 -------------------- -------------------- MINORITY INTEREST IN SUBSIDIARIES 1,678,554 1,465,662 -------------------- -------------------- COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY: Preferred stock, $1 par value, 1,000,000 shares authorized; none issued or outstanding - - Common stock, $.0066 par value, 50,000,000 shares authorized; 16,884,147 and 16,859,766 shares issued and outstanding for August 31, 2004 and February 29, 2004, respectively 111,435 111,275 Additional paid-in capital 44,054,608 43,934,877 Retained earnings 83,022,715 80,650,760 Other accumulated comprehensive income (loss) (865,499) (294,369) -------------------- -------------------- TOTAL SHAREHOLDERS' EQUITY 126,323,259 124,402,543 -------------------- -------------------- $ 206,811,217 $ 158,178,171 ==================== ====================