NU
HORIZONS
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NU HORIZONS ELECTRONICS CORP.
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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 FISCAL YEAR END 2005 AND
FOURTH QUARTER FISCAL 2005 EARNINGS
MELVILLE, NY, May 11, 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 fourth quarter and year ended February
28, 2005.
For the fiscal year ended February 28, 2005, net sales from continuing
operations increased to $467.8 million from $345.9 million in the comparable
period last year, an increase of 35%. Net income for fiscal 2005 was $3.0
million or $.18 per share on 16,877,147 basic shares outstanding, ($.17 per
share on 17,768,649 diluted shares outstanding) compared with a net loss of
$848,000, or $.05 per share on 16,729,163 shares outstanding in the year-earlier
period.
Net sales for the fourth quarter increased to $114.20 million from $102.0
million for the comparable period last year, an increase of 12%. Net income for
the current quarter was $116,000 or $0.01 per share on 16,891,647 basic shares
outstanding ($.01 per share on 17,689,764 diluted shares outstanding), compared
with a net income of $409,000 or $.02 per share on 16,859,766 basic shares
outstanding ($.02 per share on 17,928,342 diluted shares outstanding) in the
same period last year.
Arthur Nadata, Chairman of the Board and Chief Executive Officer of Nu Horizons
states, "We are pleased to report a 35% increase in revenue year over year.
Strong team execution across all major business units continues to penetrate new
markets, resulting in design wins and transfer business to production sites
around the world. Although the electronics industry appears to have flattened
out, we remain optimistic that our design creation model will increase our
customer base globally."
Mr. Nadata continued, "We continue to experience margin pressure, and, are
taking the appropriate steps to mitigate this ongoing challenge. Our strategy of
maintaining reasonable inventory levels and expanding into new territories,
combined with continually improving our line card, support our continuous effort
to increase shareholder value. We are quite pleased by the escalated global
awareness and appeal for our business model and we believe our long term
strategy is firmly on track. Management remains committed to managing the
company to achieve long term growth objectives and we will not overreact to
transient events, either positive or negative, that could veer us from this
path."
NUHC REPORTS FOURTH QUARTER FISCAL 2005 RESULTS PAGE 2
Mr. Nadata concluded, "I remain optimistic about our future growth prospects. We
have made excellent progress in developing and executing on our Asian
initiatives this past year. Sales in Asia increased to $100.9 million as
compared to $59.3 million for the prior year's fiscal period, an increase of
70%. We believe Nu Horizons Asia is gaining traction with our suppliers and our
multi-national and local customers. The Nu Horizons enhanced value, design
creation model is being well accepted in the Asian market and we anticipate
steady progress in this dynamic growth region."
A conference call to further discuss earnings will be held today at 4:15 pm ET.
The call can be accessed by dialing 1-800-231-9012, (international, dial
1-719-457-2617). A rebroadcast of the call will be available beginning at 7:00
pm ET at (888)-203-1112 (international, dial 1- 719-457-0820) Please refer to
confirmation code 6990084. 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 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.
(Tables Follows)
NUHC REPORTS FOURTH QUARTER FISCAL 2005 RESULTS PAGE 3
NU HORIZONS ELECTRONICS CORP.
Consolidated Statement of Operations
For The Year Ended For The Three Months Ended
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02/28/05 02/29/04 02/28/05 02/29/04
NET SALES $ 467,849,374 $ 345,863,877 $ 114,222,492 $ 102,023,822
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COSTS AND EXPENSES
Cost of sales 390,267,994 284,903,097 95,383,758 85,249,298
Operating expenses 70,138,119 62,435,993 18,016,075 16,120,339
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460,406,113 347,339,090 113,399,833 101,369,637
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INCOME (LOSS) FROM OPERATIONS 7,443,261 (1,475,213) 822,659 654,185
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OTHER (INCOME) EXPENSE
Interest expense 1,920,449 139,630 565,259 27,458
Interest income (57,342) (345,782) (15,391) (2,563)
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1,863,107 (206,152) 549,868 24,895
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INCOME (LOSS) BEFORE PROVISION FOR
INCOME TAXES AND MINORITY INTEREST 5,580,154 (1,269,061) 272,791 629,290
Provision (credit) for income taxes 2,022,752 (704,275) 39,543 176,395
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INCOME (LOSS) BEFORE MINORITY
INTERESTS 3,557,402 (564,786) 233,248 452,895
Minority interest in earnings of
subsidiary 483,993 283,213 116,642 43,636
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NET INCOME (LOSS) $ 3,073,409 $ (847,999) $ 116,606 $ 409,259
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NET INCOME (LOSS) PER COMMON SHARE:
Basic $.18 $(.05) $.01 $.02
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Diluted
$.17 * $(.05) $.01 $.02
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WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic 16,877,147 16,729,163 16,891,647 16,859,766
Diluted 17,768,649 * 16,729,163 17,689,764 17,928,342
Due to loss, the effect of stock options would be antidilutive for the 2004
fiscal year.
(more)
NUHC REPORTS FOURTH QUARTER FISCAL 2005 RESULTS PAGE 4
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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-ASSETS-
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February 28, February 29,
CURRENT ASSETS: 2005 2004
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Cash $ 7,024,203 $ 12,469,973
Accounts receivable - net of allowance for doubtful accounts of
$4,581,812and $4,089,801 for 2005 and 2004, respectively 79,679,565 68,230,405
Inventories 81,696,415 68,729,081
Prepaid expenses and other current assets 1,782,872 794,086
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TOTAL CURRENT ASSETS 170,183,055 150,223,545
PROPERTY, PLANT AND EQUIPMENT - NET 3,928,058 4,401,898
OTHER ASSETS:
Subordinated note receivable 2,000,000 2,000,000
Other assets 1,688,187 1,552,728
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$ 177,799,300 $ 58,178,171
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-LIABILITIES AND SHAREHOLDERS' EQUITY-
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CURRENT LIABILITIES:
Accounts payable $ 20,251,746 $ 21,479,465
Accrued expenses 3,446,226 5,250,006
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TOTAL CURRENT LIABILITIES 23,697,972 26,729,471
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LONG-TERM LIABILITIES:
Revolving credit line 22,800,000 5,300,000
Deferred income taxes 2,168,766 280,495
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TOTAL LONG-TERM LIABILITIES 24,968,766 5,580,495
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MINORITY INTEREST IN SUBSIDIARIES 1,199,655 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, $.0066 par value, 50,000,000 shares authorized;
16,891,647 and 16,859,766 shares issued and outstanding for
2005 and 2004, respectively 111,485 111,275
Additional paid-in capital 44,089,809 43,934,877
Retained earnings 83,724,169 80,650,760
Other accumulated comprehensive income (loss) 7,444 (294,369)
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TOTAL SHAREHOLDERS'EQUITY 127,932,907 124,402,543
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$ 177,799,300 $ 158,178,171
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