EX-99.1 2 pressrel0511.txt PRESS RELEASE NU HORIZONS ---------------------------- 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 FISCAL YEAR END 2005 AND FOURTH QUARTER FISCAL 2005 EARNINGS MELVILLE, NY, May 11, 2005--- Nu Horizons Electronics Corp. (Nasdaq/NM: NUHC), a leading distributor of active and passive electronic components today reported financial and operating results for the fourth quarter and year ended February 28, 2005. For the fiscal year ended February 28, 2005, net sales from continuing operations increased to $467.8 million from $345.9 million in the comparable period last year, an increase of 35%. Net income for fiscal 2005 was $3.0 million or $.18 per share on 16,877,147 basic shares outstanding, ($.17 per share on 17,768,649 diluted shares outstanding) compared with a net loss of $848,000, or $.05 per share on 16,729,163 shares outstanding in the year-earlier period. Net sales for the fourth quarter increased to $114.20 million from $102.0 million for the comparable period last year, an increase of 12%. Net income for the current quarter was $116,000 or $0.01 per share on 16,891,647 basic shares outstanding ($.01 per share on 17,689,764 diluted shares outstanding), compared with a net income of $409,000 or $.02 per share on 16,859,766 basic shares outstanding ($.02 per share on 17,928,342 diluted shares outstanding) in the same period last year. Arthur Nadata, Chairman of the Board and Chief Executive Officer of Nu Horizons states, "We are pleased to report a 35% increase in revenue year over year. Strong team execution across all major business units continues to penetrate new markets, resulting in design wins and transfer business to production sites around the world. Although the electronics industry appears to have flattened out, we remain optimistic that our design creation model will increase our customer base globally." Mr. Nadata continued, "We continue to experience margin pressure, and, are taking the appropriate steps to mitigate this ongoing challenge. Our strategy of maintaining reasonable inventory levels and expanding into new territories, combined with continually improving our line card, support our continuous effort to increase shareholder value. We are quite pleased by the escalated global awareness and appeal for our business model and we believe our long term strategy is firmly on track. Management remains committed to managing the company to achieve long term growth objectives and we will not overreact to transient events, either positive or negative, that could veer us from this path." NUHC REPORTS FOURTH QUARTER FISCAL 2005 RESULTS PAGE 2 Mr. Nadata concluded, "I remain optimistic about our future growth prospects. We have made excellent progress in developing and executing on our Asian initiatives this past year. Sales in Asia increased to $100.9 million as compared to $59.3 million for the prior year's fiscal period, an increase of 70%. We believe Nu Horizons Asia is gaining traction with our suppliers and our multi-national and local customers. The Nu Horizons enhanced value, design creation model is being well accepted in the Asian market and we anticipate steady progress in this dynamic growth region." A conference call to further discuss earnings will be held today at 4:15 pm ET. The call can be accessed by dialing 1-800-231-9012, (international, dial 1-719-457-2617). A rebroadcast of the call will be available beginning at 7:00 pm ET at (888)-203-1112 (international, dial 1- 719-457-0820) Please refer to confirmation code 6990084. A webcast of the call will also be available, online (both live and after the call), at www.nuhorizons.com. 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 Follows) NUHC REPORTS FOURTH QUARTER FISCAL 2005 RESULTS PAGE 3
NU HORIZONS ELECTRONICS CORP. Consolidated Statement of Operations For The Year Ended For The Three Months Ended ------------------ -------------------------- 02/28/05 02/29/04 02/28/05 02/29/04 NET SALES $ 467,849,374 $ 345,863,877 $ 114,222,492 $ 102,023,822 ----------------------------------------------------------------------------- COSTS AND EXPENSES Cost of sales 390,267,994 284,903,097 95,383,758 85,249,298 Operating expenses 70,138,119 62,435,993 18,016,075 16,120,339 ----------------------------------------------------------------------------- 460,406,113 347,339,090 113,399,833 101,369,637 ------------------------------------------------------------------ ---------- INCOME (LOSS) FROM OPERATIONS 7,443,261 (1,475,213) 822,659 654,185 ----------------------------------------------------------------------------- OTHER (INCOME) EXPENSE Interest expense 1,920,449 139,630 565,259 27,458 Interest income (57,342) (345,782) (15,391) (2,563) ----------------------------------------------------------------------------- 1,863,107 (206,152) 549,868 24,895 ----------------------------------------------------------------------------- INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES AND MINORITY INTEREST 5,580,154 (1,269,061) 272,791 629,290 Provision (credit) for income taxes 2,022,752 (704,275) 39,543 176,395 ----------------------------------------------------------------------------- INCOME (LOSS) BEFORE MINORITY INTERESTS 3,557,402 (564,786) 233,248 452,895 Minority interest in earnings of subsidiary 483,993 283,213 116,642 43,636 ----------------------------------------------------------------------------- NET INCOME (LOSS) $ 3,073,409 $ (847,999) $ 116,606 $ 409,259 ============================================================================= NET INCOME (LOSS) PER COMMON SHARE: Basic $.18 $(.05) $.01 $.02 ============================================================================= Diluted $.17 * $(.05) $.01 $.02 ============================================================================= WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 16,877,147 16,729,163 16,891,647 16,859,766 Diluted 17,768,649 * 16,729,163 17,689,764 17,928,342
Due to loss, the effect of stock options would be antidilutive for the 2004 fiscal year. (more) NUHC REPORTS FOURTH QUARTER FISCAL 2005 RESULTS PAGE 4
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES ---------------------------------------------- CONSOLIDATED BALANCE SHEETS --------------------------- -ASSETS- ------ February 28, February 29, CURRENT ASSETS: 2005 2004 -------------- --------------- Cash $ 7,024,203 $ 12,469,973 Accounts receivable - net of allowance for doubtful accounts of $4,581,812and $4,089,801 for 2005 and 2004, respectively 79,679,565 68,230,405 Inventories 81,696,415 68,729,081 Prepaid expenses and other current assets 1,782,872 794,086 ------------- --------------- TOTAL CURRENT ASSETS 170,183,055 150,223,545 PROPERTY, PLANT AND EQUIPMENT - NET 3,928,058 4,401,898 OTHER ASSETS: Subordinated note receivable 2,000,000 2,000,000 Other assets 1,688,187 1,552,728 ------------- -------------- $ 177,799,300 $ 58,178,171 ================ =============== -LIABILITIES AND SHAREHOLDERS' EQUITY- ------------------------------------ CURRENT LIABILITIES: Accounts payable $ 20,251,746 $ 21,479,465 Accrued expenses 3,446,226 5,250,006 ---------------- --------------- TOTAL CURRENT LIABILITIES 23,697,972 26,729,471 ---------------- --------------- LONG-TERM LIABILITIES: Revolving credit line 22,800,000 5,300,000 Deferred income taxes 2,168,766 280,495 ----------------- --------------- TOTAL LONG-TERM LIABILITIES 24,968,766 5,580,495 ----------------- --------------- MINORITY INTEREST IN SUBSIDIARIES 1,199,655 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; 16,891,647 and 16,859,766 shares issued and outstanding for 2005 and 2004, respectively 111,485 111,275 Additional paid-in capital 44,089,809 43,934,877 Retained earnings 83,724,169 80,650,760 Other accumulated comprehensive income (loss) 7,444 (294,369) --------------- --------------- TOTAL SHAREHOLDERS'EQUITY 127,932,907 124,402,543 --------------- --------------- $ 177,799,300 $ 158,178,171 =============== ===============
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