Nu
Horizons
Nu Horizons Electronics Corp.
70 Maxess Road
Melville, NY 11747
631-396-5000 Fax: 631-396-5060
Company Contact: Paul Durando
Nu Horizons Electronics Corp.
631-396-5000
FOR IMMEDIATE RELEASE
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NU HORIZONS REPORTS FOURTH QUARTER AND
FISCAL YEAR END 2003 EARNINGS
MELVILLE, NY, May 16, 2003--- Nu Horizons Electronics Corp. (Nasdaq/NM: NUHC), a
leading distributor of active and passive electronic components today reported
financial and operating results for the fourth quarter and year ended February
28, 2003.
Net sales from continuing operations for the fourth quarter increased to $70.9
million from $64.0 million for the comparable period last year. Net loss from
continuing operations for the quarter was $1.8 million or $0.11 per share on
16,663,817 shares outstanding, compared with a net loss from continuing
operations of $2.3 million or $0.14 per share on 16,609,005 shares outstanding
in the same period last year.
For the fiscal year ended February 28, 2003, net sales from continuing
operations increased to $302.1 million from $281.9 million in the comparable
period last year. Net loss from continuing operations for fiscal 2003 was $2.5
million or $0.15 per share on 16,663,817 shares outstanding, compared with a net
loss from continuing operations of $2.8 million, or $.17 per share on 16,574,911
shares outstanding in the year-earlier period.
Included in the fourth quarter of fiscal year 2002 results is a one time charge
of $1.1 million representing impairment of the valuation for goodwill. This
impairment accounted for a loss from continuing operations for both the year and
the fourth quarter of fiscal 2002 of $.07 per share. There was no charge in
fiscal 2003 nor is there any remaining goodwill on the balance sheet.
On August 23, 2001, the Company sold its contract-manufacturing subsidiary,
located in Springfield, Mass. Earnings for the reported periods and the gain on
the sale of this operation are reported separately as discontinued operations
for fiscal 2002. The sale of the Company's contract-manufacturing facility
resulted in an approximate after-tax gain of $4.2 million or approximately $0.25
per basic share and $0.24 per diluted share in fiscal 2002.
(more)
NUHC Reports Fourth Quarter Fiscal 2003 Results Page 2
Net income from discontinued operations for the fiscal year ended February 28,
2002 was $799,000 or $0.05 per basic and diluted share. There was no income or
loss from discontinued operations in the fiscal year ended February 28, 2003.
Commenting on the Company's operating results, Arthur Nadata, President and
Chief Executive Officer, stated, "Achieving a modest 7% increase in top line
sales dollars coupled with a 7% reduction in combined operating and interest
expenses was not enough to offset the 3.1% reduction in gross margin percentage
due to continued pricing pressures in the semiconductor component marketplace.
Nevertheless we continued to strengthen our balance sheet by generating
approximately $31 million in free cash flow, using $2,500,000 to reduce our
remaining indebtedness to zero with $28,500,000 being added to cash and cash
equivalents.
Nadata concluded, "Calendar 2002 appears to have been a stabilizing year for the
electronic component industry overall, with calendar 2001 appearing to be the
low point in the down cycle. We saw a moderate increase in sales dollar volume,
albeit accompanied by continued downward margin pressures. We believe this
stability will continue and that we see the beginnings of a moderate improvement
in the components market worldwide, along with a marked improvement in our
current book to bill ratio. Although we cannot predict when the semiconductor
and passive component marketplace will recover to pre-fiscal 2001 levels, we
believe these indicators, coupled with a better than one to one book to bill
ratio for the last several months of our fiscal year, are the first indicators
of a potential gradual segment recovery."
A conference call to further discuss earnings will be held today at 4:15 PM ET.
The call can be accessed by dialing (800) 915-4836, (international, dial
1-973-317-5319), refer to NuHorizons call. A webcast of the call will also be
available online after the call at www.nuhorizons.com. and a transcript of the
webcast will remain available on that website for a period of twelve months
after the call. In connection with the conference call, Nu Horizons has posted
on its website certain information regarding its fourth quarter and fiscal year
financial results.
Nu Horizons is a national distributor of high technology electronic components,
which provide innovative, total semiconductor solutions through products and
technologies that are faster, smaller and lower powered. Nu Horizons was
established in 1982 and currently has 30 branch and subsidiary offices located
in the U.S., Asia and Europe. For more information, visit the Nu Horizons' home
page at http://www.nuhorizons.com. The Company does not undertake any obligation
to update its forward-looking statements.
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Except for historical information contained herein, the matters set forth in
this news release are forward looking statements that involve certain risks and
uncertainties that could cause actual results to differ from those in the
forward-looking statements. Potential risks and uncertainties include such
factors as the level of business and consumer spending for electronic products,
the amount of sales of the Company's products, the competitive environment
within the electronic industry, the ability of the Company to continue to expand
its operations, the level of costs incurred in connection with the Company's
expansion efforts and the financial strength of the Company's customers and
suppliers. Investors are also directed to consider other risks and uncertainties
discussed in documents filed by the Company with the Securities and Exchange
Commission.
(Tables Follows)
NUHC Reports Fourth Quarter Fiscal 2003 Results Page 3
NU HORIZONS ELECTRONICS CORP.
Consolidated Statement of Operations
For The Three Months Ended For The Year Ended
-------------------------- ------------------
02/28/03 02/28/02 02/28/03 02/28/02
NET SALES $ 70,927,941 $ 64,002,942 $ 302,080,809 $ 281,912,508
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COSTS AND EXPENSES:
Cost of sales 58,064,130 51,135,344 246,852,741 221,690,082
Operating expenses 14,602,507 14,048,358 57,439,743 60,377,685
Impairment of goodwill - 1,124,636 - 1,124,636
Interest expense - net (9,693) 179,774 98,068 1,517,262
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TOTAL COSTS AND EXPENSES 72,656,944 66,488,112 304,390,552 284,709,665
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(LOSS) BEFORE PROVISION FOR INCOME
TAXES AND MINORITY INTEREST (1,729,003) (2,485,170) (2,309,743) (2,797,157)
Provision (credit) for income taxes (514,121) (338,176) (539,927) (503,742)
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(LOSS) BEFORE MINORITY INTERESTS (1,214,882) (2,146,994) (1,769,816) (2,293,415)
Minority interest in earnings of subsidiary (560,737) (112,139) (741,822) (469,151)
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(LOSS) FROM CONTINUING OPERATIONS (1,775,619) (2,259,133) (2,511,638) (2,762,566)
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DISCONTINUED OPERATIONS
Income from operations of contract
manufacturing division disposed of -
net of income taxes - - - 798,735
Gain on sale - net of income taxes - - - 4,183,507
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- - - 4,982,242
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NET INCOME (LOSS) $ (1,775,619) $ (2,259,133) $ (2,511,638) $ 2,219,676
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NET INCOME (LOSS) PER COMMON SHARE -
BASIC:
Continuing operations $(.11) $(.14) $(.15) $(.17)
Discontinued operations - - - .30
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$(.11) $(.14) $(.15) $ .13
=========================================================================
NET INCOME (LOSS) PER COMMON SHARE -
DILUTED:
Continuing operations $(.10) $(.13) $(.14) $(.16)
Discontinued operations
- - - .29
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$(.10) $(.13) $(.14) $ .13
=========================================================================
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic 16,663,817 16,609,005 16,663,817 16,574,911
Diluted 17,418,739 17,477,151 17,418,739 17,430,332
(more)
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
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Consolidated Balance Sheets
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NUHC Reports Fourth Quarter Fiscal 2003 Results
-ASSETS-
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CURRENT ASSETS: February February
28, 2003 28, 2002
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Cash $ 31,345,616 $ 2,689,978
Accounts receivable - net of allowance for doubtful accounts
of $4,083,590 and $4,445,901 for 2003 and 2002, respectively 39,092,343 40,018,469
Inventories 66,073,022 95,076,198
Prepaid expenses and other current assets 2,952,665 3,726,568
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TOTAL CURRENT ASSETS 139,463,646 141,511,213
PROPERTY, PLANT AND EQUIPMENT - NET 5,150,499 6,145,476
OTHER ASSETS:
Subordinated note receivable 2,000,000 2,000,000
Other assets 1,485,044 1,661,772
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$ 148,099,189 $ 151,318,461
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-LIABILITIES AND SHAREHOLDERS' EQUITY-
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CURRENT LIABILITIES:
Accounts payable $ 16,732,172 $ 13,637,730
Accrued expenses 5,939,395 7,083,324
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TOTAL CURRENT LIABILITIES 22,671,567 20,721,054
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LONG-TERM LIABILITIES:
Revolving credit line - 2,500,000
Deferred income taxes 252,832 231,598
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TOTAL LONG-TERM LIABILITIES 252,832 2,731,598
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MINORITY INTEREST IN SUBSIDIARIES 1,182,449 1,392,632
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COMMITMENTS AND CONTINGENCIES - -
SHAREHOLDERS' EQUITY:
Preferred stock, $1 par value, 1,000,000 shares authorized;
none issued or outstanding - -
Common stock, $.0066 par value, 50,000,000 shares authorized;
16,663,817 and 16,609,005 shares issued and outstanding for 2003 and
2002, respectively 109,981 109,619
Additional paid-in capital 42,925,545 42,600,827
Retained earnings 81,498,759 84,010,397
Other accumulated comprehensive income (loss) (541,944) (247,666)
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TOTAL SHAREHOLDERS' EQUITY 123,992,341 126,473,177
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$ 148,099,189 $ 151,318,461
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