BLLI Bell Industries Inc (GM)

Bell Industries, Inc. (Pink Sheets:BLLI) today reported financial results for its fourth quarter and fiscal year ended December 31, 2009.

Revenues from continuing operations for the 2009 fourth quarter were $19.8 million, up 4.8% from $18.9 million a year ago, with a $1.3 million increase in revenues related to the company's Bell Techlogix business, partially offset by a $0.4 million decrease in revenues related to its Recreational Products Group. The company had a loss from continuing operations of $945,000, or $2.18 per share for the 2009 fourth quarter, an improvement over the prior-year fourth quarter loss from continuing operations of $1.1 million, or $2.61 per share. The company also had a loss from discontinued operations of $36,000, or $0.08 per share, in the 2009 fourth quarter, resulting in a net loss for the fourth quarter of $981,000 or $2.27 per share. In the fourth quarter of 2008, the company had income from discontinued operations of $0.2 million, or $0.46 per share, resulting in a net loss for the prior year fourth quarter of $928,000, or $2.14 per share. 

For the 2009 full year, revenues from continuing operations were $100.6 million, down 1.3% from $101.9 million a year ago, with a $4.6 million decrease in revenues related to the company's Recreational Products Group, partially offset by a $3.3 million increase in revenues related to the company's Bell Techlogix business. The company incurred a loss from continuing operations of $1.9 million, or $4.32 per share, for 2009, an improvement over the loss from continuing operations of $3.4 million, or $7.86 per share, for 2008. The company incurred a net loss of $1.9 million, or $4.40 per share, for 2009, including a loss from discontinued operations, net of tax, of $36,000, or $0.08 per share.  This compared to a net loss of $4.9 million, or $11.24 per share, including a loss from discontinued operations, net of tax, of $1.5 million, or $3.38 per share, in 2008. 

The Bell Techlogix business reported revenues of $14.0 million for the 2009 fourth quarter, compared with $12.7 million in the 2008 fourth quarter.  This increase was attributed primarily to an increase in product revenue to the education market and an increase in services project revenue.  Operating income for the 2009 fourth quarter amounted to $425,000, an increase of approximately $271,000 over the prior-year fourth quarter.  This increase was attributed primarily to a decrease in overhead expenses due to the consolidation of certain overhead and support functions.

The company's Recreational Products Group reported revenues of $5.9 million for the 2009 fourth quarter, compared with $6.2 million in the 2008 fourth quarter.  The decrease in revenues was attributed primarily to a 17.2% decrease in marine revenue resulting from a decline in both consumer spending and dealer inventory stocking during the off-season, partially offset by a 2.6% increase in revenues in the recreational vehicle product line.  The operating loss of $254,000 for the fourth quarter of 2009 represented a $9,000 decrease from the operating loss of $245,000 for the fourth quarter of 2008.

Bell's corporate costs for the 2009 fourth quarter totaled $823,000, a decrease of $75,000 from the $898,000 in costs for the 2008 fourth quarter. The decrease in costs was primarily related to reductions in headcount and the related benefits and travel costs and reductions in insurance and telecommunications costs.

"The fourth quarter is typically a soft seasonal period for our operating businesses, but we were still able to improve our net loss as compared to the previous year," said Clinton J. Coleman, Chief Executive Officer of Bell Industries. "Some areas of our operations are experiencing an improving trend due to the stabilization of the overall economic environment, and we continue to evaluate opportunities to make investments in our business to drive profitable growth while we closely manage our costs."

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.

Bell Industries, Inc.

Consolidated Condensed Statements of Operations

(Unaudited, in thousands, expect per share data)

 

 

 

 

 

 

Three months ended

Twelve months ended

 

December 31, 

December 31, 

 

2009

2008

2009

2008

 

(Unaudited)

(Unaudited)

(Audited)

(Audited)

Net revenues:

 

 

 

 

Products

 $ 12,903

 $ 12,519

 $ 74,325

 $ 75,379

Services

 6,939

 6,374

 26,252

  26,525

Total net revenues

 19,842

 18,893

 100,577

 101,904

 

 

 

 

 

Costs and expenses:

 

 

 

 

Cost of products sold

 10,587

 10,253

 61,420

 61,606

Cost of services provided

 4,962

 4,331

 19,011

 18,459

Selling, general and administrative

 4,945

 5,298

 20,930

 23,741

Operating loss

 (652)

 (989)

 (784)

 (1,902)

Interest expense, net

 289

 173

 1,093

 844

Loss on extinguishment of debt

 -- 

 -- 

 -- 

 1,053

Loss on sale of assets

 -- 

 28

 -- 

 28

Loss from continuing operations before provision (benefit from) income taxes

 (941)

 (1,190)

 (1,877)

 (3,827)

Provision for (benefit from) income taxes

 4

 (62)

 (7)

 (422)

Loss from continuing operations

 (945)

 (1,128)

 (1,870)

 (3,405)

Income (loss) from discontinued operations, net of tax

 (36)

 200

 (36)

 (1,462)

Net loss

 $ (981)

 $ (928)

 $ (1,906)

 $ (4,867)

 

 

 

 

 

Share and per share data

 

 

 

 

Basic and diluted:

 

 

 

 

Loss from continuing operations

 $ (2.18)

 $ (2.61)

 $ (4.32)

 $ (7.86)

Income (loss) from discontinued operations

 (0.08)

 0.46

 (0.08)

 (3.38)

Net loss

 $ (2.27)

 $ (2.14)

 $ (4.40)

 $ (11.24)

Weighted average common shares outstanding

 433

 433

 433

 433

 

 

 

 

 

OPERATING RESULTS BY BUSINESS SEGMENT

 

 

 

 

 

 

 

 

 

Net revenues:

 

 

 

 

Bell Techlogix

 

 

 

 

Products

 $ 7,014

 $ 6,296

 $ 39,882

 $ 36,364

Services

 6,939

 6,374

 26,252

 26,525

Total Bell Techlogix

 13,953

 12,670

 66,134

 62,889

Recreational Products Group

 5,889

 6,223

 34,443

 39,015

Total net revenues

 $ 19,842

 $ 18,893

 $ 100,577

 $ 101,904

 

 

 

 

 

Operating income (loss):

 

 

 

 

Bell Techlogix

 $ 425

 $ 154

 $ 1,558

 $ 1,010

Recreational Products Group

 (254)

 (245)

 1,191

 972

Corporate costs

 (823)

 (898)

 (3,533)

 (3,884)

Total operating loss

 (652)

 (989)

 (784)

 (1,902)

Loss on sale of assets

--

 (28)

--

 (28)

Loss on extinguishment of debt

 -- 

 -- 

 -- 

 (1,053)

Interest expense, net

 289

 173

 1,093

 844

Loss from continuing operations before income taxes

 $ (941)

 $ (1,190)

 $ (1,877)

 $ (3,827)

 

Bell Industries, Inc.

Consolidated Condensed Balance Sheets

(Dollars in thousands)

 

 

 

 

 

 

 

December 31,

December 31,

 

2009

2008

ASSETS

 

 

Current assets:

 

 

Cash and cash equivalents

 $ 2,608

 $ 3,233

Accounts receivable, net

 9,210

 8,096

Inventories, net

 8,012

 8,770

Notes receivable

 300

 3,000

Prepaid expenses and other current assets

 846

 1,819

Total current assets

 20,976

 24,918

 

 

 

Fixed assets, net

 802

 1,475

Other assets

 775

 867

Total assets

 $ 22,553

 $ 27,260

 

 

 

LIABILITIES AND SHAREHOLDERS' DEFICIT

 

 

Current liabilities:

 

 

Floor plan payables

 $ -- 

 $ 291

Accounts payable

 5,382

 7,189

Accrued payroll

 1,882

 1,462

Other accrued liabilities

 2,440

 3,671

Total current liabilities

 9,704

 12,613

 

 

 

Convertible note

 11,345

 10,840

Other long-term liabilities

 3,592

 4,063

Total liabilities

 24,641

 27,516

 

 

 

Shareholders' deficit

 (2,088)

 (256)

Total liabilities and shareholders' deficit

 $ 22,553

 $ 27,260

CONTACT: Bell Industries, Inc.

Clinton Coleman, Chief Executive Officer

317-704-6000