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 2006
MELVILLE, NY, January 9, 2006--- 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, 2005.
Net sales for the quarter ended November 30, 2005 increased to $147.5 million as
compared to $116.2 million for the comparable period last year. Net income for
the quarter was $1.5 million or $0.09 per share on 17,198,133 average basic
shares outstanding ($0.08 per share on 17,760,196 diluted shares) as compared to
net income of $585,000 or $0.03 per share on 16,891,647 average basic shares
outstanding ($0.03 per share on 17,506,975 diluted shares) for the third quarter
of the prior year. Sequentially, net sales for the quarter ended November 30,
2005 increased $19.3 million, or 15%, from $128.2 million and net income
increased from $820,000 to $1.5 million.
For the nine months ended November 30, 2005, net sales increased to $397.2
million from $353.6 million in the comparable period last year, an increase of
12.3%. Net income for the first nine months of fiscal 2006 was $2.8 million or
$0.16 per share on 17,004,309 basic shares outstanding ($0.16 per share on
17,746,808 diluted shares), compared to net income of $2.9 million or $0.18
per share on 16,886,647 basic shares outstanding ($0.17 per share on 17,816,056
diluted shares) in the same period last year.
Arthur Nadata, Chairman of the Board and Chief Executive Officer stated, "The
third quarter was a very exciting and busy period for us. New additions to our
line card, combined with the expansion of certain partnerships, enabled our
sales force to penetrate into new markets and provide enhanced system solutions
for customers. More importantly, the addition of approximately one hundred new
sales and engineering personnel should enable Nu Horizons to better execute our
demand creation business model, with customers and suppliers as the primary
beneficiaries."
Mr. Nadata concluded, "We have focused our efforts on creating opportunities to
produce sustainable growth and believe these efforts will continue to show
positive results. We are pleased that, notwithstanding our significant
investment in personnel, our results have shown continued growth. Our goal is
to further increase our revenue, stabilize our margins and increase earnings per
share."
A conference call to further discuss earnings will be held today at 4:15 pm ET.
The call can be accessed by dialing 1-800-946-0706, (international, dial
1-719-457-2638). 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 1531334. A webcast of the call will also be available, online
(both live and after the call), at www.nuhorizons.com.
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About Nu Horizons Electronics Corp.
Nu Horizons Electronics Corp. is a leading global distributor of advanced
technology active components and systems to a wide variety of commercial
original equipment manufacturers (OEMs) and Electronic Manufacturing Services
providers (EMS). With sales facilities in forty-five locations across North
America and Asia and regional logistics centers throughout the globe, Nu
Horizons partners with a limited number of best-in-class suppliers to provide
in-depth product development, custom logistics and life-cycle support to its
customers. Information on Nu Horizons and its services is available at
http://www.nuhorizons.com.
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)
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
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November 30, 2005 November 30, 2004 November 30, 2005 November 30, 2004
NET SALES $ 397,199,800 $ 353,626,883 $ 147,514,721 $ 116,218,925
----------------- ----------------- ----------------- -----------------
COSTS AND EXPENSES:
Cost of sales 333,842,696 294,884,235 124,271,270 96,829,764
Operating expenses 56,608,050 52,122,045 20,054,010 17,687,355
----------------- ----------------- ----------------- ----------------
390,450,746 347,006,280 144,325,280 114,517,119
----------------- ----------------- ----------------- ----------------
OPERATING INCOME
----------------- ------------------ -----------------
6,749,054 6,620,603 3,189,441 1,701,806
----------------- ------------------ ----------------- ----------------
OTHER (INCOME) EXPENSE
Interest expense 2,107,187 1,355,191 714,700 569,502
Interest income (247,584) (41,951) (73,220) (12,031)
------------------ ------------------ ------------------ -----------------
1,859,603 1,313,240 641,480 557,471
----------------- ----------------- ----------------- -----------------
INCOME BEFORE PROVISION FOR INCOME
TAXES AND MINORITY INTERESTS 4,889,451 5,307,363 2,547,961 1,144,335
Provision for income taxes 1,825,085 1,983,209 992,473 405,028
----------------- ----------------- ----------------- -----------------
INCOME BEFORE MINORITY INTERESTS 3,064,366 3,324,154 1,555,488 739,307
Minority interest in earnings of
subsidiaries 269,182 367,351 55,279 154,459
----------------- ----------------- ----------------- -----------------
NET INCOME $ 2,795,184 $ 2,956,803 $ 1,500,209 $ 584,848
================= ================= ================= =================
NET INCOME PER COMMON SHARE:
Basic $ .16 $ .18 $ .09 $ .03
================= ================= ================= =================
Diluted $ .16 $ .17 $ .08 $ .03
================= ================= ================= =================
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 17,004,309 16,886,647 17,198,133 16,891,647
Diluted 17,746,808 17,816,056 17,760,196 17,506,975
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
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CONSOLIDATED CONDENSED BALANCE SHEETS
-------------------------------------
November 30, February 28,
2005 2005
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(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 12,798,134 $ 7,024,203
Accounts receivable - net of allowance for doubtful accounts
of $5,155,929 and $4,581,812 as of November 30, 2005 and
February 28, 2005, respectively 94,520,418 79,679,565
Inventories 93,779,781 81,696,415
Prepaid expenses and other current assets 2,282,077 1,782,872
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TOTAL CURRENT ASSETS 203,380,410 170,183,055
PROPERTY, PLANT AND EQUIPMENT - NET 3,759,182 3,928,058
OTHER ASSETS:
Subordinated note receivable 2,000,000 2,000,000
Other assets 1,619,730 1,688,187
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$ 210,759,322 $ 177,799,300
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LIABILITIES AND SHAREHOLDERS' EQUITY:
CURRENT LIABILITIES:
Accounts payable $ 29,466,288 $ 20,251,746
Accrued expenses and other liabilities 6,066,327 4,446,226
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TOTAL CURRENT LIABILITIES: 35,532,615 24,697,972
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LONG TERM LIABILITIES:
Revolving credit line 39,300,000 22,800,000
Deferred income taxes 2,253,249 1,168,766
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TOTAL LONG-TERM LIABILITIES 41,553,249 23,968,766
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MINORITY INTEREST IN SUBSIDIARIES 1,468,837 1,199,655
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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, $.0066 par value, 50,000,000 shares authorized;
17,198,133 and 16,891,647 shares issued and outstanding as
of November 30, 2005 and February 28, 2005, respectively 113,508 111,485
Additional paid-in capital 45,384,288 44,089,809
Retained earnings 86,519,353 83,724,169
Other accumulated comprehensive income 187,472 7,444
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TOTAL SHAREHOLDERS' EQUITY 132,204,621 127,932,907
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$ 210,759,322 $ 177,799,300
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