NU HORIZONS ELECTRONICS CORP.
70 Maxess Road, Melville, NY 11747
631-396-5000 Fax: 631-396-5060
Company Contact: Andrew Barwicki
Nu Horizons Electronics Corp.
631-396-5000
FOR IMMEDIATE RELEASE
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NU HORIZONS REPORTS FINANCIAL AND OPERATING RESULTS FOR THE THIRD QUARTER
OF FISCAL YEAR 2005
MELVILLE, NY, January 6, 2005 --- 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, 2004.
Net sales for the third quarter ended November 30, 2004 increased to $116.2
million from $91.1 million for the comparable period last year. Net income for
the current quarter was $585,000 or $.03 per share on 16,891,647 basic shares
outstanding ($.03 per share on 17,506,975 diluted shares), compared with a net
income of $197,000 or $.01 per share on 16,700,700 basic shares outstanding
($.01per share on 17,641,150 diluted shares) in the same period last year.
For the nine months ended November 30, 2004, net sales increased to $353.6
million from $243.8 million in the comparable period last year. Net income for
the first three quarters of fiscal 2005 was $2,957,000 or $.18 per share on
16,886,647 basic shares outstanding ($.17 per share on 17,816,056 diluted
shares), compared to a net loss of $1,257,000 or $.08 per share on 16,685,628
shares outstanding in the year-earlier period.
Arthur Nadata, Chairman of the Board and Chief Executive Officer of Nu Horizons,
said, "Sales for the quarter were up 27% versus last year's third quarter. While
the U.S. economy and end markets are continuing to show modest signs of
improvement, Nu Horizons has positioned itself for strong growth in Asia. Our
sales in Asia for the first nine months of fiscal 2005 increased 100% as
compared to the same period last year."
Nadata continued, "The additions to our line card throughout 2004 have improved
and strengthened our demand creation model. More importantly, we are considering
adding new suppliers, which we expect to compliment our current line card and
result in increased market share throughout Asia."
Nadata concluded, "Our primary focus and commitment is on market penetration and
service excellence. The combination of our strong financial condition, strategic
positioning and long-term fundamentals leave us well-positioned for gaining
market share and improving overall results."
A conference call to further discuss earnings will be held today at 4:15 pm ET.
The call can be accessed by dialing (800) 210-9006, (international, dial
1-719-457-2621). A rebroadcast of the call will be available beginning at 7:00
pm ET at (888)-203-1112 confirmation code 299454 (international, dial 1-
719-457-0820). A webcast of the call will also be available, online (both live
and after the call), at www.nuhorizons.com.
ABOUT NU HORIZONS ELECTRONICS CORP.
Nu Horizons is a leading distributor of high technology active components,
including analog, communications, discretes, optical, logic & peripherals,
memory, microcontrollers, system on chip (SOC), board level and computer system
products to a wide variety of commercial original equipment manufacturers
(OEMs). With sales facilities in thirty-three locations across North America and
Asia, and logistics centers in centralized locations throughout the globe, Nu
Horizons partners with a limited number of best-in-class suppliers to provide
in-depth product and solutions expertise to its customers. Information on Nu
Horizons and its services is available at http://www.nuhorizons.com. The Company
does not undertake any obligation to update its forward-looking statements.
Except for historical information contained herein, the matters set forth in
this news release are forward looking statements. When used in this press
release, words such as "anticipate," "believe," "estimate," "expect," "intend"
and similar expressions, as they relate to Nu Horizons or its management,
identify forward-looking statements. Such forward-looking statements are based
on the current beliefs of Nu Horizons' management, as well as assumptions made
by and information currently available to its management. Forward-looking
statements 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 electronics 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. Such statements reflect our current view
with respect to the future and are subject to these and other risks,
uncertainties and assumptions relating to Nu Horizons' financial condition,
results of operations, growth strategy and liquidity. The Company does not
undertake any obligation to update its forward-looking statements.
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(Tables Follow)
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
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CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
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(unaudited)
For the Nine Months Ended For the Three Months Ended
November 30, November 30, November 30, November 30,
2004 2003 2004 2003
NET SALES $ 353,626,883 $ 243,840,055 $ 116,218,925 $ 91,071,802
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COSTS AND EXPENSES
Cost of sales 294,884,235 199,653,799 96,829,764 75,312,065
Operating expenses 52,122,045 46,315,653 17,687,355 15,560,035
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347,006,280 245,969,452 114,517,119 90,872,100
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OPERATING INCOME (LOSS) 6,620,603 (2,129,397) 1,701,806 199,702
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OTHER (INCOME) EXPENSE:
Interest expense 1,355,191 112,172 569,502 25,361
Interest income (41,951) (343,218) (12,031) (232,238)
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1,313,240 (231,046) 557,471 (206,877)
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INCOME (LOSS) BEFORE PROVISION
FOR INCOME TAXES AND MINORITY
INTERESTS 5,307,363 (1,898,351) 1,144,335 406,579
Provision (credit) for income taxes 1,983,209 (880,674) 405,028 136,931
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INCOME (LOSS) BEFORE MINORITY
INTERESTS 3,324,154 (1,017,677) 739,307 269,648
Minority interest in earnings of
subsidiaries 367,351 239,577 154,459 72,682
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NET INCOME (LOSS) $ 2,956,803 $ (1,257,254) $ 584,848 $ 196,966
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NET INCOME (LOSS) PER COMMON
SHARE:
Basic $ .18 $ (.08) $ .03 $ .01
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Diluted $ .17 $ (.08) $ .03 $ .01
============= ============== ============== ============
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic 16,886,647 16,685,628 16,891,647 16,700,700
Diluted 17,816,056 16,685,628 17,506,975 17,641,150
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NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
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November 30, February 29,
2004 2004
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(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 16,790,466 $ 12,469,973
Accounts receivable - net of allowance for doubtful accounts
of $4,316,935 and $4,089,801 for November 30, 2004 and
February 29, 2004, respectively 73,970,426 68,230,405
Inventories 100,224,832 68,729,081
Prepaid expenses and other current assets
878,057 794,086
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191,863,781 150,223,545
TOTAL CURRENT ASSETS
PROPERTY, PLANT AND EQUIPMENT - NET 4,103,726 4,401,898
OTHER ASSETS:
Subordinated note receivable 2,000,000 2,000,000
Other assets 1,622,813 1,552,728
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$ 199,590,320 158,178,171
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 21,687,445 $ 21,479,465
Accrued expenses 7,573,303 5,250,006
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TOTAL CURRENT LIABILITIES 29,260,748 26,729,471
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LONG TERM LIABILITIES:
Revolving credit line 40,200,000 5,300,000
Deferred income taxes 425,146 280,495
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TOTAL LONG-TERM LIABILITIES 40,625,146 5,580,495
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MINORITY INTEREST IN SUBSIDIARIES 1,833,013 1,465,662
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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, $.0066 par value, 50,000,000 shares authorized;
16,891,647 and 16,859,766 shares issued and outstanding for
November 30, 2004 and February 29, 2004, respectively 111,485 111,275
Additional paid-in capital 44,076,058 43,934,877
Retained earnings 83,607,563 80,650,760
Other accumulated comprehensive income (loss) 76,307 (294,369)
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TOTAL SHAREHOLDERS' EQUITY 127,871,413 124,402,543
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$ 199,590,320 $ 158,178,171
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