EX-99.1 2 c89349exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
(BELL INDUSTRIES LOGO)
CONTACT:
Bell Industries, Inc.
Kevin Thimjon, President and CFO
317-704-6000
BELL INDUSTRIES REPORTS FINANCIAL RESULTS
FOR 2009 SECOND QUARTER, SIX MONTHS
INDIANAPOLIS — August 14, 2009 — Bell Industries, Inc. (Pink Sheets: BLLI) today reported financial results for its second quarter and six months ended June 30, 2009.
Revenues from continuing operations for the 2009 second quarter were $27.5 million, up 5.2% from $26.1 million a year ago, with a $2.3 million increase in revenues related to the company’s Bell Techlogix’s business partially offset by a $0.9 million decrease in revenues related to its Recreational Products Group. The company had income from continuing operations of $216,000, or $0.49 per basic share for the 2009 second quarter. This reflects a significant improvement over the prior-year second quarter loss from continuing operations of $1.4 million, or $3.30 per share. In the second quarter of 2008, the company also had a loss from discontinued operations of $3.4 million, or $7.81 per share, resulting in a net loss for the prior year second quarter of $4.8 million, or $11.11 per share.
The company announced in February 2008 that it completed the sale of SkyTel’s automated vehicle location business to SkyGuard LLC for $7.0 million. On June 13, 2008, the company completed the sale of the remainder of the SkyTel business to Velocita Wireless, LLC (“Velocita”) for total consideration of $7.5 million. Subsequent to the closing, Velocita agreed to pay the company additional consideration in the form of a working capital adjustment in the amount of $1.5 million. As a result of these transactions, the SkyTel division has been reflected as a discontinued operation in the company’s results of operations for the three and six month periods ended June 30, 2009 and 2008.
For the first half of 2009, revenues from continuing operations were $45.9 million, down 6.9% from $49.2 million a year ago, with the entire decrease in revenues related to the company’s Recreational Products Group. The company incurred a loss from continuing operations of $1.7 million, or $3.82 per share, for the year-to-date period. This reflects an improvement over the loss from continuing operations of $2.1 million, or $4.87 per share, for the first half of 2008. In the first half of 2008, the company also had a loss from discontinued operations of $1.9 million, or $4.30 per share, resulting in a net loss for the first six months of 2008 of $3.9 million, or $9.17 per share.
The Bell Techlogix business posted revenues of $16.5 million for the 2009 second quarter, compared with $14.2 million in the 2008 second quarter. This increase was due primarily to hardware and software sales into the K-12 and higher education markets. Operating income for the 2009 second quarter amounted to $438,000, increasing by approximately $404,000 over the prior-year second quarter. This increase was attributed to an increase of gross profit primarily related to higher product revenues and a contract termination fee and a decrease in selling, general and administrative (“SG&A”) expenses due primarily to reductions in salaries and wages and shipping costs.
The company’s Recreational Products Group reported revenues of $11.0 million for the 2009 second quarter, compared with $11.9 million in the 2008 second quarter. The company attributed the decrease in revenues primarily to lower sales in the recreational vehicle and marine product lines resulting from a continued decline in consumer spending at dealers. The operating income of $1.0 million for the second quarter of 2009 represented a $314,000 increase from the operating income of $688,000 for the second quarter of 2008. Although revenues were down year-over year, there was a 230 basis point improvement in gross profit margins and SG&A expenses decreased from $2.6 million for the 2008 second quarter to $2.3 million for the 2009 second quarter due to reductions in headcount, freight and facility costs.
“We are pleased that both of our operating units generated operating income for the quarter on improved results versus the 2008 second quarter, and the fact that our consolidated results for the quarter generated $216,000 of net income” said Kevin J. Thimjon, president and chief financial officer of Bell Industries. “We continue to closely manage our costs and make investments in our businesses where we see the best opportunities for profitable growth.”
Bell’s corporate costs for the 2009 second quarter totaled $939,000, an increase of approximately $164,000 from the $775,000 for the 2008 second quarter. The 2008 second quarter results benefited from a $200,000 favorable legal settlement.

 

 

 

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 aftermarket parts and accessories for the recreational vehicles and other leisure-related vehicle markets, including marine, snowmobile, cycle and ATV.
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 where we see the best opportunities for 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 business, results of operations and financial condition. The company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
# # #
(Tables Follow)

 

 

 

Bell Industries, Inc.
Consolidated Condensed Statements of Operations
(Unaudited, in thousands, except per share data)
                                 
    Three months ended     Six months ended  
    June 30,     June 30,  
    2009     2008     2009     2008  
Net revenues:
                                
Products
   $ 21,190     $ 19,569     $ 33,691     $ 35,299  
Services
     6,334       6,585       12,160       13,943  
 
                        
Total net revenues
     27,524       26,154       45,851       49,242  
 
                        
 
                                
Costs and expenses:
                                
Cost of products sold
     16,959       15,513       27,174       28,273  
Cost of services provided
     4,421       4,747       8,818       9,686  
Selling, general and administrative expenses
     5,643       5,947       11,025       11,861  
Interest expense, net
     290       307       498       446  
Loss on extinguishment of debt
     —       1,053       —       1,053  
 
                        
Total costs and expenses
     27,313       27,567       47,515       51,319  
 
                        
Income (loss) from continuing operations before provision for (benefit from) income taxes
     211       (1,413 )     (1,664 )     (2,077 )
Provision for (benefit from) income taxes
     (5 )     17       (7 )     33  
 
                        
Income (loss) from continuing operations
     216       (1,430 )     (1,657 )     (2,110 )
 
                        
Loss from discontinued operations, net of tax
     —       (3,381 )     —       (1,862 )
 
                        
Net income (loss)
   $ 216     $ (4,811 )   $ (1,657 )   $ (3,972 )
 
                        
 
                                
Share and per share data
                                
Basic:
                                
Income (loss) from continuing operations
   $ 0.49     $ (3.30 )   $ (3.82 )   $ (4.87 )
Loss from discontinued operations
     —       (7.81 )     —       (4.30 )
 
                        
Net income (loss)
   $ 0.49     $ (11.11 )   $ (3.82 )   $ (9.17 )
 
                        
Weighted average common shares outstanding
     433       433       433       433  
 
                        
 
                                
Diluted
                                
Income (loss) from continuing operations
   $ 0.06     $ (3.30 )   $ (3.82 )   $ (4.87 )
Loss from discontinued operations
     —       (7.81 )     —       (4.30 )
 
                        
Net income (loss)
   $ 0.06     $ (11.11 )   $ (3.82 )   $ (9.17 )
 
                        
Weighted average common shares outstanding
     3,308       433       433       433  
 
                        
 
                                
OPERATING RESULTS BY BUSINESS SEGMENT
                                
 
                                
Net revenues:
                                
Bell Techlogix
                                
Products
   $ 10,182     $ 7,641     $ 15,336     $ 13,480  
Services
     6,334       6,585       12,160       13,943  
 
                        
Total Bell Techlogix
     16,516       14,226       27,496       27,423  
Recreational Products Group
     11,008       11,928       18,355       21,819  
 
                        
Total net revenues
   $ 27,524     $ 26,154     $ 45,851     $ 49,242  
 
                        
 
                                
Operating income (loss):
                                
Bell Techlogix
   $ 438     $ 34     $ (151 )   $ 458  
Recreational Products Group
     1,002       688       830       876  
Corporate costs
     (939 )     (775 )     (1,845 )     (1,912 )
 
                        
Total operating income (loss)
     501       (53 )     (1,166 )     (578 )
Loss on extinguishment of debt
     —       1,053       —       1,053  
Interest expense, net
     290       307       498       446  
 
                        
Income (loss) from continuing operations before income taxes
   $ 211     $ (1,413 )   $ (1,664 )   $ (2,077 )
 
                        

 

 

 

Bell Industries, Inc.
Consolidated Condensed Balance Sheets
(Dollars in thousands)
                 
    June 30,     December 31,  
    2009     2008  
    (Unaudited)        
ASSETS
               
Current assets
                
Cash and cash equivalents
   $ 39     $ 3,233  
Accounts receivable, net
     12,688       8,096  
Inventories, net
     7,545       8,770  
Notes receivable
     1,000       3,000  
Prepaid expenses and other current assets
     1,259       1,819  
 
            
Total current assets
     22,531       24,918  
 
                
Fixed assets, net
     1,094       1,475  
Other assets
     971       867  
 
            
Total assets
   $ 24,596     $ 27,260  
 
            
 
                
LIABILITIES AND SHAREHOLDERS’ DEFICIT
                
Current liabilities:
                
Floor plan payables
   $ —     $ 291  
Revolving credit facility
     461       —  
Accounts payable
     6,461       7,189  
Accrued payroll
     1,577       1,462  
Other accrued liabilities
     3,277       3,671  
 
            
Total current liabilities
     11,776       12,613  
 
                
Convertible note
     11,091       10,840  
Other long-term liabilities
     3,606       4,063  
 
            
Total liabilities
     26,473       27,516  
 
                
Shareholders’ deficit
     (1,877 )     (256 )
 
            
Total liabilities and shareholders’ deficit
   $ 24,596     $ 27,260