8-K 1 a20075e8vk.htm BELL INDUSTRIES, INC. e8vk
 

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 28, 2006
Bell Industries, Inc.
(Exact name of registrant as specified in its charter)
         
California   001-11471   95-2039211
         
(State or other jurisdiction
of incorporation) 		  (Commission
File Number) 		  (I.R.S. Employer
Identification No.)
     
1960 E. Grand Avenue, Suite #560, El
Segundo, California 		  90245
     
(Address of principal executive offices)   (Zip Code)
     
Registrant’s telephone number, including area code:   310-563-2355
Not applicable
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 

Item 1.01 – Entry into a Material Definitive Agreement
     On April 28, 2006, Bell Industries, Inc. (the “Company”), as seller, entered into an Asset Purchase Agreement (the “Agreement”) with Bourns, Inc., as buyer, and simultaneously closed the asset purchase and sale transaction contemplated by the Agreement, thereby completing the sale of substantially all of the assets, excluding real estate, of its J.W. Miller division. Pursuant to the Agreement, the Company received $8.5 million in cash, subject to post closing adjustments and indemnification obligations.
     The description of the terms and conditions of the Agreement set forth herein does not purport to be complete and is qualified in its entirety by reference to the full text of the Agreement which is attached hereto as Exhibit 10.1 and is incorporated by reference.
     A copy of the press release announcing the sale is attached hereto as Exhibit 99.1 and is also incorporated by reference.
Item 2.01 – Completion of Acquisition or Disposition of Assets
     The information set forth under Item 1.01 of this current report on Form 8-K is hereby incorporated by reference in this Item 2.01.
Item 9.01 Financial Statements and Exhibits
(b) Pro Forma Financial Information
     The accompanying unaudited pro forma consolidated financial information of the Company reflects the sale of substantially all of the assets of the J.W. Miller division, excluding real estate, on April 28, 2006 in accordance with the Agreement and has been prepared pursuant to rules and regulations of the United States Securities and Exchange Commission. The unaudited pro forma consolidated financial statements are presented for illustrative purposes only and, therefore, are not necessarily indicative of the operating results and financial position that might have been achieved had the sale occurred as of an earlier date, nor are they necessarily indicative of operating results and financial position that may occur in the future. The unaudited pro forma consolidated financial statements do not reflect the use of the estimated net cash proceeds in the Company’s ongoing operations or the effect on the Company’s future financial position. The unaudited pro forma consolidated financial statements should be read in conjunction with the historical consolidated financial statements and notes thereto in the Annul Report on Form 10-K for the year ended December 31, 2005.
BELL INDUSTRIES, INC.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
For the year ended December 31, 2005
(In thousands, except per share data)
The following presentation assumes the sale of the J.W. Miller division had been completed on January 1, 2005.
                         
            Pro Forma        
    As Reported     Adjustments(a)     Pro Forma  
Net revenues
                        
Products
   $ 100,266     $ (8,373 )   $ 91,893  
Services
     30,670               30,670  
 
                  
 
     130,936       (8,373 )     122,563  
 
                  
 
                        
Costs and expenses
                        
Cost of products sold
     79,097       (4,483 )     74,614  
Cost of services provided
     25,184               25,184  
Selling and administrative
     26,024       (1,943 )     24,081  
Depreciation and amortization
     1,307       (24 )     1,283  
Interest, net
     (275 )             (275 )
Special item
     325               325  
 
                  
 
     131,662       (6,450 )     125,212  
 
                  
Loss before income taxes
     (726 )     (1,923 )     (2,649 )
Income tax provision
     73               73  
 
                  
Net loss
   $ (799 )   $ (1,923 )   $ (2,722 )
 
                  
Share and per share data
                        
Basic and diluted
                        
Net loss
   $ (.09 )   $ (.23 )   $ (.32 )
 
                  
Weighted average common shares
     8,466       8,466       8,466  
 
                  
 
(a)   Represents the elimination of the historical accounts of the J.W. Miller division.

 

 

BELL INDUSTRIES, INC.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
For the year ended December 31, 2004
(In thousands, except per share data)
The following presentation assumes the sale of the J.W. Miller division had been completed on January 1, 2004.
                         
            Pro Forma        
    As Reported     Adjustments(a)     Pro Forma  
Net revenues
                        
Products
   $ 113,832     $ (7,776 )   $ 106,056  
Services
     30,122               30,122  
 
                  
 
     143,954       (7,776 )     136,178  
 
                  
 
                        
Costs and expenses
                        
Cost of products sold
     92,879       (4,295 )     88,584  
Cost of services provided
     24,227               24,227  
Selling and administrative
     25,477       (1,932 )     23,545  
Depreciation and amortization
     1,710       (23 )     1,687  
Interest, net
     (161 )             (161 )
Special item
     700               700  
 
                  
 
     144,832       (6,250 )     138,582  
 
                  
 
                        
Loss before income taxes
     (878 )     (1,526 )     (2,404 )
Income tax provision
     75               75  
 
                  
Net loss
   $ (953 )   $ (1,526 )   $ (2,479 )
 
                  
Share and per share data
                        
Basic and diluted
                        
Net loss
   $ (.11 )   $ (.18 )   $ (.29 )
 
                  
Weighted average common shares
     8,385       8,385       8,385  
 
                  
 
(a)   Represents the elimination of the historical accounts of the J.W. Miller division.
BELL INDUSTRIES, INC.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
For the year ended December 31, 2003
(In thousands, except per share data)
The following presentation assumes the sale of the J.W. Miller division had been completed on January 1, 2003.
                         
            Pro Forma        
    As Reported     Adjustments(a)     Pro Forma  
Net revenues
                        
Products
   $ 106,956     $ (6,326 )   $ 100,630  
Services
     34,949               34,949  
 
                  
 
     141,905       (6,326 )     135,579  
 
                  
 
                        
Costs and expenses
                        
Cost of products sold
     87,181       (3,596 )     83,585  
Cost of services provided
     28,449               28,449  
Selling and administrative
     26,914       (1,760 )     25,154  
Depreciation and amortization
     2,105       (31 )     2,074  
Interest, net
     (166 )             (166 )
 
                  
 
     144,483       (5,387 )     139,096  
 
                  
 
                        
Loss before income taxes
     (2,578 )     (939 )     (3,517 )
Income tax provision
     1,209               1,209  
 
                  
Net loss
   $ (3,787 )   $ (939 )   $ (4,726 )
 
                  
Share and per share data
                        
Basic and diluted
                        
Net loss
   $ (.45 )   $ (.11 )   $ (.56 )
 
                  
Weighted average common shares
     8,367       8,367       8,367  
 
                  
 
(a)   Represents the elimination of the historical accounts of the J.W. Miller division.

 

 

BELL INDUSTRIES, INC.
PRO FORMA CONSOLIDATED BALANCE SHEET
December 31, 2005
(Dollars in thousands)
The following presentation assumes the sale of the J.W. Miller division had been completed on December 31, 2005.
                                 
                    Pro Forma        
    As Reported     J.W. Miller(a)     Adjustments     Pro Forma  
ASSETS
                                
Current assets
                                
Cash and cash equivalents
   $ 7,331     $ —     $ 8,500   (b)   $ 15,831  
Accounts receivable
     15,306       (1,143 )             14,163  
Inventories
     12,764       (1,208 )             11,556  
Prepaid expenses and other
     2,701       (16 )             2,685  
 
                        
Total current assets
     38,102       (2,367 )     8,500       44,235  
 
                        
Fixed assets, net
     3,143       (61 )             3,082  
 
                        
Other assets
     3,108       (2 )             3,106  
 
                        
 
   $ 44,353     $ (2,430 )   $ 8,500     $ 50,423  
 
                        
 
                                
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                
Current liabilities
                                
Floor plan payables
   $ 68     $ —     $ —     $ 68  
Accounts payable
     11,023       (538 )             10,485  
Accrued payroll
     1,885       (193 )             1,692  
Accrued liabilities
     6,555       (54 )     1,000   (b)     7,501  
 
                        
Total current liabilities
     19,531       (785 )     1,000       19,746  
 
                        
Deferred compensation, environmental matters and other
     4,518                       4,518  
 
                        
Commitments and contingencies
                                
Shareholders’ equity
                                
Preferred stock
                                
Authorized — 1,000,000 shares, outstanding — none
                                
Common stock
                                
Authorized — 35,000,000 shares, outstanding — 8,559,224 shares
     32,832                       32,832  
Investment in J.W. Miller division
             (1,645 )     1,645   (c)        
Accumulated deficit
     (12,528 )             5,855   (b)     (6,673 )
 
                        
Total shareholders’ equity
     20,304       (1,645 )     7,500       26,159  
 
                        
 
   $ 44,353     $ (2,430 )   $ 8,500     $ 50,423  
 
                        
 
(a)   Represents the elimination of the historical accounts of the J.W. Miller division.
 
(b)   Represents the receipt of $8.5 million in cash proceeds and the gain on sale of the J.W. Miller division, net of estimated selling costs and expenses and taxes. The final purchase price is subject to post closing adjustments.
 
    The estimated gain on sale is determined as follows:
         
Cash proceeds from sale
   $ 8,500  
Assets sold
     (1,645 )
Selling costs and expenses
     (850 )
Income taxes
     (150 )
 
      
 
   $ 5,855  
 
      
(c)   Eliminates the investment in J.W. Miller division.
(c) Exhibits
     The following exhibits are furnished with this current report on Form 8-K
     
Exhibit No.   Description
 
    
10.1
  Asset Purchase Agreement dated as of April 28, 2006 between Bell Industries, Inc. and Bourns, Inc.
 
    
99.1
  Press release dated May 1, 2006, “Bell Industries Sells J.W. Miller Unit to Bourns In a $8.5 million Cash Transaction”

 

 

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  Bell Industries, Inc.
 		  
May 3, 2006  By:   /s/ John A. Fellows    
  Name: John A. Fellows  
  Title: President & Chief Executive Officer