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 FISCAL YEAR END 2006 AND
FOURTH QUARTER FISCAL 2006 EARNINGS
MELVILLE, NY, May 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 fourth quarter and year ended February
28, 2006.
For the fiscal year ended February 28, 2006, net sales from continuing
operations increased to $561.3 million from $467.8 million in the comparable
period last year, an increase of 20%. Net income for fiscal 2006 was $4.9
million or $.28 per diluted share compared with a net income of $3.1million or
$.17 per diluted share in the year-earlier period.
Net sales for the fourth quarter increased to $164.1 million from $114.2 million
for the comparable period last year, an increase of 44%. Net income for the
current quarter was $2.1 million or $.11 per diluted share, compared with a net
income of $116,000 or $.01 per diluted shares 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 significant increase in top line revenues
and improved earnings. Our worldwide investments in adding and upgrading sales
and engineering personnel have greatly contributed to this growth. We now have
seventeen sales offices in Asia, including new facilities in Thailand and
Australia as well as additional branches in mainland China. In addition, our new
and geographically expanded franchised semiconductor lines are fueling sales
increases and new customer penetration. Design activity continues to be robust
and we believe our customers continue to see the value of our design creation
model."
Mr. Nadata concluded, "As the semiconductor distribution industry and its
customers continue to respond to the rapid consolidation experienced over the
last ten years, Nu Horizons has benefited from increased visibility, a focus on
high technology semiconductor products and engineering expertise."
NUHC Reports Fourth Quarter And Fiscal Year End 2006 Results Page 2
A conference call to further discuss earnings will be held today at 4:15 pm ET.
The call can be accessed by dialing 1-888-208-1812, (international, dial
1-719-457-2654). 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 1227493. 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 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 And Fiscal Year End 2006 Results Page 3
NU HORIZONS ELECTRONICS CORP.
Consolidated Statement of Operations
For The Year Ended For The Three Months Ended
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02/28/06 02/28/05 02/28/06 02/28/05
NET SALES $ 561,291,000 $ 467,849,000 $ 164,092,000 $ 114,222,000
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COSTS AND EXPENSES
Cost of sales 472,542,000 390,268,000 138,700,000 95,383,000
Operating expenses 78,091,000 70,138,000 21,483,000 18,016,000
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550,633,000 460,406,000 160,183,000 113,400,000
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INCOME FROM OPERATIONS 10,658,000 7,443,000 3,909,000 823,000
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OTHER (INCOME) EXPENSE
Interest expense 3,298,000 1,920,000 1,191,000 565,000
Interest income (371,000) (57,000) (124,000) (15,000)
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2,927,000 1,863,000 1,067,000 550,000
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INCOME BEFORE PROVISION FOR INCOME TAXES AND MINORITY
INTEREST 7,731,000 5,580,000 2,842,000 273,000
Provision for income taxes 2,560,000 2,023,000 735,000 40,000
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INCOME BEFORE MINORITY INTERESTS
5,171,000 3,557,000 2,107,000 233,000
Minority interest in earnings of subsidiary 287,000 484,000 18,000 117,000
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NET INCOME $ 4,884,000 $ 3,073,000 $ 2,089,000 $ 116,000
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NET INCOME PER COMMON SHARE:
Basic $.29 $.18 $.12 $.01
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Diluted
$.28 $.17 $.11 $.01
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WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 17,111,102 16,877,147 17,431,482 16,891,647
Diluted 17,704,373 17,768,649 18,276,162 17,689,764
(more)
NUHC Reports Fourth Quarter And Fiscal Year End 2006 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 28,
CURRENT ASSETS: 2006 2005
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Cash $ 10,873,000 $ 7,024,000
Accounts receivable - net of allowance for doubtful accounts of
$4,702,000 and $4,582,000 for 2006 and 2005, respectively 98,418,000 79,680,000
Inventories 125,178,000 81,696,000
Prepaid expenses and other current assets 1,746,000 1,783,000
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TOTAL CURRENT ASSETS 236,215,000 170,183,000
PROPERTY, PLANT AND EQUIPMENT - NET 3,614,000 3,928,000
OTHER ASSETS:
Subordinated note receivable 2,000,000 2,000,000
Other assets 1,645,000 1,688,000
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$ 243,474,000 $ 177,799,000
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-LIABILITIES AND SHAREHOLDERS' EQUITY-
------------------------------------
CURRENT LIABILITIES:
Accounts payable $ 48,352,000 $ 20,252,000
Accrued expenses 4,515,000 4,446,000
Income taxes payable 1,525,000 -
TOTAL CURRENT LIABILITIES 54,392,000 24,698,000
LONG-TERM LIABILITIES:
Revolving credit line 50,600,000 22,800,000
Deferred income taxes 1,339,000 1,169,000
TOTAL LONG-TERM LIABILITIES 51,939,000 23,969,000
MINORITY INTEREST IN SUBSIDIARIES 1,487,000 1,200,000
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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, $.0066 par value, 50,000,000 shares authorized;
17,431,482 and 16,891,647 shares issued and outstanding for 2006 and
2005, respectively 115,000 111,000
Additional paid-in capital 46,924,000 44,090,000
Retained earnings 88,608,000 83,724,000
Other accumulated comprehensive income (loss) 9,000 7,000
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TOTAL SHAREHOLDERS' EQUITY 135,656,000 127,932,000
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$ 243,474,000 $ 177,799,000
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