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
NU HORIZONS REPORTS IMPROVED FINANCIAL AND OPERATING RESULTS FOR THE
THIRD QUARTER OF FISCAL YEAR 2004
MELVILLE, NY, January 8, 2004 --- Nu Horizons Electronics Corp. (Nasdaq/NM:
NUHC), a leading distributor of active and passive electronic components today
reported financial and operating results for the third quarter and nine months
ended November 30, 2003.
Net sales for the third quarter ended November 30, 2003 increased to $91.1
million from $75.8 million for the comparable period last year. Net income for
the current quarter was $197,000 or $0.01 per share on 16,700,700 basic shares
outstanding ($0.01 per share on 17,641,150 diluted shares), compared with a net
loss of $998,000 or $0.06 per share on 16,663,817 shares outstanding in the same
period last year.
For the nine months ended November 30, 2003, net sales increased to $243.8
million from $231.2 million in the comparable period last year. Net loss for the
first three quarters of fiscal 2003 was $1,257,000 or $0.08 per share on
16,685,628 shares outstanding, compared to a net loss of $736,000 or $0.04 per
share on 16,649,037 shares outstanding in the year-earlier period.
Arthur Nadata, president and chief executive officer of Nu Horizons, said,
"Sales for the quarter were up 20% versus last year's third quarter. More
importantly, we have now reported three sequential quarters of sales growth,
with the current quarter experiencing a 13.8% sequential increase in sales over
this year's second quarter. While we hesitate to be overly optimistic following
the difficult market conditions of the recent past, we are encouraged by what we
believe to be the beginnings of a modest recovery."
(more)
Nadata concluded, "Our entire industry continues to experience uncertain market
and economic conditions. The combination of our strong financial condition,
continued focus on `design in' component sales strategies along with our ongoing
efforts to expand our global capabilities in the Asian marketplace, should leave
us well positioned to profit from an eventual market recovery. We believe this
market recovery has begun and should continue into calendar 2004."
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). A rebroadcast of the call will be available beginning at 7:00
pm ET at (800)-428-6051 confirmation code 322906 (international, dial 1-
973-709-2089). A webcast of the call will also be available, online (both live
and after the call), at www.nuhorizons.com.
Nu Horizons is a national distributor of high technology electronic components,
which provide innovative, total semiconductor and passive component solutions
through products and technologies that are faster, smaller and lower powered. Nu
Horizons was established in 1982 and currently has 29 branch and subsidiary
offices located in the U.S., Asia and Europe. For more information, visit Nu
Horizons' home page at http://www.nuhorizons.com.
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.
(more)
(Tables Follow)
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
----------------------------------------------
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
-----------------------------------------------
(UNAUDITED)
For the Nine Months Ended For the Three Months Ended
------------------------- --------------------------
November 30, 2003 November 30, 2002 November 30, 2003 November 30, 2002
----------------- ----------------- ----------------- -----------------
NET SALES $ 243,840,055 $ 231,152,869 $ 91,071,802 $ 75,830,874
------------------ ---------------- -------------------- -----------------
COSTS AND EXPENSES:
Cost of sales 199,653,799 188,788,612 75,312,065 62,492,563
Operating expenses 46,315,653 42,837,236 15,560,035 14,501,397
Interest expense 112,172 107,762 25,361 38,269
Interest income (343,218) - (232,238) -
------------------ ----------------- -------------------- -----------------
245,738,406 231,733,610 90,665,223 77,032,229
------------------ ----------------- -------------------- -----------------
INCOME (LOSS) BEFORE PROVISION
FOR INCOME TAXES AND MINORITY
INTERESTS (1,898,351) (580,741) 406,579 (1,201,355)
Provision (credit) for income
taxes (880,674) (25,806) 136,931 (238,897)
------------------- ------------------ -------------------- ------------------
INCOME (LOSS) BEFORE MINORITY
INTERESTS (1,017,677) (554,935) 269,648 (962,458)
Minority interest in earnings of
subsidiaries 239,577 181,085 72,682 35,592
------------------- ------------------ -------------------- ------------------
NET INCOME (LOSS) $ (1,257,254) $ (736,020) $ 196,966 $ (998,050)
=================== ================== ==================== ==================
NET INCOME (LOSS) PER COMMON SHARE:
Basic $ (.08) $ (.04) $ .01 $ (.06)
=================== ================== ==================== ==================
Diluted $ (.08) $ (.04) $ .01 $ (.06)
=================== ================== ==================== ==================
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic 16,685,628 16,649,037 16,700,700 16,663,817
Diluted 16,685,628 16,649,037 17,641,150 16,663,817
(more)
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
----------------------------------------------
CONSOLIDATED CONDENSED BALANCE SHEETS
-------------------------------------
November 30, February 28,
2003 2003
------------------- ------------------
(unaudited)
- ASSETS -
CURRENT ASSETS:
Cash and cash equivalents $ 17,632,558 $ 31,345,616
Accounts receivable - net of allowance of doubtful
accounts of $4,133,129 and $4,083,590 for
November 30, 2003 and February 28, 2003, respectively 55,543,178 39,092,343
Inventories 66,968,859 66,073,022
Prepaid expenses and other current assets 1,790,595 2,952,665
-------------------- --------------------
TOTAL CURRENT ASSETS 141,935,190 139,463,646
PROPERTY, PLANT AND EQUIPMENT - NET 4,522,688 5,150,499
OTHER ASSETS:
Subordinated note receivable 2,000,000 2,000,000
Other assets 1,514,615 1,485,044
-------------------- --------------------
$ 149,972,493 $ 148,099,189
==================== ====================
- LIABILITIES AND SHAREHOLDERS' EQUITY -
CURRENT LIABILITIES:
Accounts payable $ 21,547,667 $ 16,732,172
Accrued expenses 3,569,370 5,939,395
-------------------- --------------------
TOTAL CURRENT LIABILITIES 25,117,037 22,671,567
==================== ====================
LONG-TERM LIABILITIES:
Deferred income taxes 276,646 252,832
Revolving credit line - -
-------------------- --------------------
276,646 252,832
TOTAL LONG-TERM LIABILITIES
-------------------- --------------------
MINORITY INTEREST IN SUBSIDIARIES 1,422,026 1,182,449
-------------------- --------------------
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;
16,700,700 and 16,663,817 shares issued and outstanding for
November 30, 2003 and February 28, 2003, respectively 110,224 109,981
Additional paid-in capital 43,065,963 42,925,545
Retained earnings 80,241,505 81,498,759
Other accumulated comprehensive (loss) (220,475) (541,944)
------------------- --------------------
123,197,217 123,992,341
LESS: LOAN TO ESOP ( 40,433) -
------------------- --------------------
TOTAL SHAREHOLDERS' EQUITY 123,156,784 123,992,341
------------------- --------------------
$ 149,972,493 $ 148,099,189
=================== ====================
###