Press Release Source: Bell Industries, Inc. Bell Industries Reports Financial Results for 2007 Third Quarter, Nine Months Wednesday November 14, 3:08 pm ET INDIANAPOLIS, Nov. 14, 2007 (PRIME NEWSWIRE) — Bell Industries, Inc. (AMEX:BI - News) today reported a 60% increase in net revenues for the third quarter ended September 30, 2007 to $58.7 million from $36.7 million a year ago, principally reflecting approximately $22.2 million in contributions from its SkyTel unit acquired January 31, 2007. Bell recorded a net loss of $1.8 million, or $0.20 per share, for the three months ended September 30, 2007. This compares with a net loss from continuing operations of $1.7 million, or $0.20 per share, in the prior-year third quarter, which included an income tax benefit of $843,000. In the 2006 third quarter, Bell posted a loss on sale of discontinued operations of $710,000, representing income taxes allocated to the company's J.W. Miller division which was sold during the 2006 second quarter. Including discontinued operations, the company incurred a net loss of $2.5 million, or $0.29 per share. SkyTel contributed approximately $22.2 million in revenues for the 2007 third quarter and incurred an operating loss of $495,000, including depreciation, amortization and accretion expense of $1.2 million. Net revenues for Bell's Technology Solutions division were modestly higher at $24.6 million for the 2007 third quarter, compared with $24.4 million in the prior-year period. Product revenues for the three months ended September 30, 2007 rose to $17.8 million from $16.4 million a year earlier. Services revenues totaled $6.8 million in the current third quarter, compared with $8.0 million in the same 2006 period with the decline primarily reflecting the closure of Bell's Springfield, Mo. call center following an unexpected notification from the facility's sole customer, SunRocket, Inc., that it was ceasing operations. Bell's Technology Solutions division posted an operating loss of $140,000 for the 2007 third quarter versus an operating loss of $1.6 million a year ago, which included approximately $1.5 million in losses from start-up and related costs associated with the SunRocket engagement. As previously announced, Bell assigned the Springfield call center lease to an unrelated company effective August 1, 2007 and received $900,000 in proceeds from the sale of certain assets at the facility. Bell's Recreational Products Group posted net revenues of $11.8 million for the 2007 third quarter, compared with $12.3 million a year ago. Operating income increased to $575,000 from $479,000 in the 2006 third quarter, benefiting from improved gross margins and a decrease in selling, general and administrative expenses. For year-to-date period, net revenues rose 73% to $160.8 million from $92.8 million in the prior-year comparable period. Bell sustained a net loss of $8.1 million, equal to $0.94 per share, for the nine months of the current fiscal year, compared with a loss from continuing operations of $3.5 million, equal to $0.41 per share, for the comparable 2006 period or net income of $1.4 million, or $0.16 per diluted share, including income and a gain on sale from discontinued operations. Subsequent to the close of the 2007 third quarter, Bell completed the sale of certain assets to Sprint Nextel Corp. for $13.5 million, receiving $12.5 million in cash, with the remaining balance due in 18 months, subject to certain conditions. The assets represented stock ownership interests in entities that hold Federal Communications Commission (FCC) licenses to operate wireless communications in certain bandwidths. Originally acquired as part of Bell's purchase of SkyTel Corp earlier this year, the company said the assets were not integral to the division's current business operations and have no impact on the services provided to SkyTel customers. About Bell Industries, Inc. Bell Industries is comprised of three diversified operating units, Bell's Technology Solutions business, SkyTel and its Recreational Products Group. The company's Technology Solutions business offers a comprehensive portfolio of customizable and scalable technology solutions ranging from managed technology services to reverse logistics and mobile/wireless solutions. SkyTel provides nationwide wireless data and messaging services, including email, interactive two-way messaging, wireless telemetry services, traditional text and numeric paging and automated vehicle location. Recreational Products Group is a wholesale distributor of aftermarket parts and accessories for the recreational vehicles and other leisure-related vehicle markets, including marine, snowmobile, cycle and ATV.
Bell Industries, Inc.
Consolidated Operating Results
(In thousands, except per share data)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
2007 2006 2007 2006
=====================================================================
Net revenues
Products $ 29,601 $ 28,654 $ 72,665 $ 70,049
Services 29,055 8,025 88,138 22,754
--------- --------- --------- ---------
58,656 36,679 160,803 92,803
--------- --------- --------- ---------
Costs and expenses
Cost of products sold 24,996 23,867 60,585 57,023
Cost of services provided 19,831 6,695 59,237 18,572
Selling and administrative 14,948 8,826 49,378 22,841
Interest expense
(income), net 672 (166) 1,665 (375)
Gain on sale of assets (39) -- (2,012) --
--------- --------- --------- ---------
60,408 39,222 168,853 98,061
--------- --------- --------- ---------
Loss from continuing
operations before income tax (1,752) (2,543) (8,050) (5,258)
Income tax expense (benefit) 8 (843) 40 (1,720)
--------- --------- --------- ---------
Income (loss) from
continuing operations (1,760) (1,700) (8,090) (3,538)
Income (loss) from
discontinued operations,
net of tax (85) 492
Gain (loss) on sale of
discontinued operations,
net of tax (710) 4,443
--------- --------- --------- ---------
Net income (loss) $ (1,760) $ (2,495) $ (8,090) $ 1,397
========= ========= ========= =========
Basic and diluted share data
Loss from continuing
operations
Basic $ (.20) $ (.20) $ (.94) $ (.41)
========= ========= ========= =========
Diluted $ (.20) $ (.20) $ (.94) $ (.41)
========= ========= ========= =========
Net income (loss)
Basic $ (.20) $ (.29) $ (.94) $ .16
========= ========= ========= =========
Diluted $ (.20) $ (.29) $ (.94) $ .16
========= ========= ========= =========
Weighted average common stock
Basic 8,650 8,568 8,627 8,565
========= ========= ========= =========
Diluted 8,650 8,568 8,627 8,603
========= ========= ========= =========
=====================================================================
OPERATING RESULTS BY BUSINESS SEGMENT
Net revenues
Technology Solutions
Products $ 17,759 $ 16,403 $ 36,185 $ 32,642
Services 6,827 8,025 25,816 22,754
--------- --------- --------- ---------
24,586 24,428 62,001 55,396
SkyTel 22,228 62,322
Recreational Products 11,842 12,251 36,479 37,407
--------- --------- --------- ---------
$ 58,656 $ 36,679 $160,802 $ 92,803
========= ========= ========= =========
Operating income (loss)
Technology Solutions $ (140) $ (1,580) $ (3,983) $ (2,798)
SkyTel (495) 218
Recreational Products 575 479 790 1,695
Corporate costs (1,059) (1,608) (5,422) (4,530)
--------- --------- --------- ---------
(1,119) (2,709) (8,397) (5,633)
Gain on sale of assets (39) (2,012)
Interest expense
(income), net 672 (166) 1,665 (375)
Income tax benefit (expense) 8 (843) 40 (1,720)
--------- --------- --------- ---------
Loss from
continuing operations $ (1,760) $ (1,700) $ (8,090) $ (3,538)
========= ========= ========= =========
Bell Industries, Inc.
Consolidated Condensed Balance Sheet
(In thousands)
(Unaudited)
Sept. 30, Dec. 31,
2007 2006
=====================================================================
ASSETS
Current assets:
Cash and cash equivalents $ 254 $ 3,637
Accounts receivable 26,954 16,835
Inventories 9,661 9,548
Assets held for sale 12,526
Prepaid expenses and other 6,253 2,761
--------- ---------
Total current assets 55,648 32,781
--------- ---------
Fixed assets, net 19,373 3,553
Intangible assets 3,097
Acquisition deposit 3,450
Acquisition related costs 1,689
Other assets 2,565 1,641
--------- ---------
$ 80,683 $ 43,114
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Floor plan payables $ 2,609 $ 213
Revolving credit facility 11,428
Accounts payable 19,515 12,419
Deferred revenue 6,555
Accrued payroll and liabilities 11,845 8,606
--------- ---------
Total current liabilities 51,952 21,238
--------- ---------
Convertible note 8,760
Long-term liabilities 8,218 3,622
Shareholders' equity 11,753 18,254
--------- ---------
$ 80,683 $ 43,114
========= =========
| Contacts: | Bell Industries, Inc.
Kevin Thimjon, Chief Financial Officer
317-704-6000 | | | PondelWilkinson Inc.
Roger S. Pondel
Angie H. Yang
310-279-5980 |
|
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