EX-99.1 2 c01183exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
(BELL INDUSTRIES LOGO)
CONTACT:
Bell Industries, Inc.
Clinton Coleman, Chief Executive Officer
317-704-6000
BELL INDUSTRIES REPORTS 2010 FIRST QUARTER RESULTS
INDIANAPOLIS — May 14, 2010 — 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.
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(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
(In thousands)
                 
    March 31,     December 31,  
    2010     2009  
    (unaudited)        
ASSETS
                
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