EX-99.1 2 c04941exv99w1.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 SECOND QUARTER RESULTS
INDIANAPOLIS — August 13, 2010 — 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.

 

 

 

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(Tables Follow)

 

 

 

Bell Industries, Inc.
Consolidated Condensed Operating Results
(In thousands, except per share data)
                                 
    Three months ended     Six months ended  
    June 30,     June 30,  
    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 )
 
                        

 

 

 

Bell Industries, Inc.
Consolidated Condensed Balance Sheet
(In thousands)
                 
    June 30,     December 31,  
    2010     2009  
    (Unaudited)        
ASSETS
                
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