<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT
Under Section 13 or 15(d) of the Securities Exchange Act of 1934
For Quarter Ended Commission file number
November 30, 1996 1-8798
- ------------------------- -------------------------
Nu Horizons Electronics Corp.
- --------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 11-2621097
- ----------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
6000 New Horizons Blvd., Amityville, New York 11701
- --------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(516) 226-6000
- --------------------------------------------------------------------------
(Registrant's telephone number, including area code)
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report.)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. YES X
---
NO ___
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the close of the period covered by this
report.
Common Stock - Par Value $.0066 8,732,299
------------------------------- -------------------
Class Outstanding Shares
<PAGE>
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
----------------------------------------------
INDEX
-----
Page(s)
PART I. Financial Information:
ITEM 1. Financial Statements
Consolidated Condensed Balance Sheets -
November 30, 1996 (Unaudited) and February 29, 1996 3.
Consolidated Condensed Statements of Income (Unaudited) -
Nine Months and Three Months Ended November 30, 1996
and 1995 4.
Consolidated Condensed Statements of Cash Flows (Unaudited) -
Nine Months Ended November 30, 1996 and 1995 5. - 6.
Notes to Interim Consolidated Condensed Financial
Statements (Unaudited) 7. - 8.
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9. - 12.
PART II. Other Information
ITEM 6. Exhibits and Reports on Form 8-K 13.
SIGNATURES 14.
INDEX TO EXHIBITS
Exhibit 11 - Computation of Earnings per Common Share
Exhibit 27 - Financial Data Schedule
2
<PAGE>
PART 1. FINANCIAL INFORMATION
ITEM 1. Financial Statements
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
----------------------------------------------
CONSOLIDATED CONDENSED BALANCE SHEETS
-------------------------------------
-ASSETS-
--------
<TABLE>
<CAPTION>
NOVEMBER FEBRUARY
30, 1996 29, 1996
----------- -----------
(unaudited)
<S> <C> <C>
CURRENT ASSETS:
Cash $ 1,330,341 $ 874,267
Accounts receivable-net of allowance for doubtful
accounts of $1,937,947 and $1,509,802 for November
30, 1996 and February 29, 1996, respectively 29,263,322 30,005,182
Inventories 37,001,112 36,808,915
Prepaid expenses and other current assets 3,216,293 1,013,923
----------- -----------
TOTAL CURRENT ASSETS 70,811,068 68,702,287
PROPERTY, PLANT AND EQUIPMENT - NET (Note 2) 3,292,729 3,439,804
OTHER ASSETS
Costs in excess of net assets acquired - Net 1,948,487 2,066,180
Other Assets 1,292,280 1,251,315
----------- -----------
$77,344,564 $75,459,586
=========== ===========
</TABLE>
-LIABILITIES AND SHAREHOLDERS' EQUITY-
--------------------------------------
<TABLE>
<S> <C> <C>
CURRENT LIABILITIES:
Accounts payable $ 5,257,778 $ 7,898,757
Accrued expenses 5,579,778 2,254,878
Current portion of long-term debt 324,171 373,930
Income taxes - 220,288
Other current liabilities 50,327 -
----------- -----------
TOTAL CURRENT LIABILITIES 11,212,054 10,747,853
----------- -----------
LONG-TERM LIABILITIES:
Deferred income taxes 200,288 115,577
Revolving credit line (Note 3) 13,000,000 17,300,000
Long-term debt 482,977 678,453
Subordinated convertible notes (Note 4) 7,059,000 9,000,000
----------- -----------
TOTAL LONG-TERM LIABILITIES 20,742,265 27,094,030
----------- -----------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY :
Preferred stock, $1 par value, 1,000,000 shares
authorized; none issued or outstanding - -
Common stock, $.0066 par value, 20,000,000 shares
authorized; 8,732,299 and 8,423,137 shares
issued and outstanding for November 30, 1996
and February 29, 1996, respectively 57,632 55,593
Additional paid-in capital (Note 4) 18,938,985 16,821,502
Retained earnings 26,708,516 21,160,458
----------- -----------
45,705,133 38,037,553
Less: loan to ESOP 314,888 419,850
----------- -----------
45,390,245 37,617,703
----------- -----------
$77,344,564 $75,459,586
=========== ===========
</TABLE>
See notes to interim consolidated condensed financial statements.
3
<PAGE>
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
----------------------------------------------
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
-------------------------------------------
(unaudited)
<TABLE>
<CAPTION>
FOR THE NINE MONTHS ENDED FOR THE THREE MONTHS ENDED
--------------------------- --------------------------
NOVEMBER NOVEMBER NOVEMBER NOVEMBER
30, 1996 30, 1995 30, 1996 30, 1995
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
NET SALES $162,414,223 $149,874,502 $53,958,639 $55,066,644
------------ ------------ ----------- -----------
COSTS AND EXPENSES:
Cost of sales 126,053,270 114,584,192 41,894,971 41,983,941
Operating expenses 25,715,806 22,186,588 8,606,684 7,699,044
Interest expense 1,341,656 1,479,951 532,285 545,290
Interest income (8,132) (2,537) - -
------------ ------------ ----------- -----------
153,102,600 138,248,194 51,033,940 50,228,275
------------ ------------ ----------- -----------
INCOME BEFORE PROVISION
FOR INCOME TAXES 9,311,623 11,626,308 2,924,699 4,838,369
Provision for
income taxes 3,763,565 4,755,160 1,182,805 2,004,226
------------ ------------ ----------- -----------
NET INCOME $ 5,548,058 $ 6,871,148 $ 1,741,894 $ 2,834,143
============ ============ =========== ===========
NET INCOME
PER SHARE (Note 5):
Primary $ .61 $ .85 $ .20 $ .34
============ ============ =========== ===========
Fully diluted $ .54 $ .71 $ .17 $ .29
============ ============ =========== ===========
</TABLE>
See notes to interim consolidated condensed financial statements.
4
<PAGE>
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
----------------------------------------------
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
-----------------------------------------------
(unaudited)
FOR THE NINE MONTHS ENDED
------------------------------------
NOVEMBER 30, 1996 NOVEMBER 30, 1995
----------------- -----------------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS:
Cash flows from operating activities:
Cash received from customers $ 162,717,083 $ 141,605,743
Cash paid to suppliers and employees (150,544,749) (145,064,324)
Interest received 8,132 2,537
Interest paid (1,341,656) (1,479,951)
Income taxes paid (5,568,042) (3,008,216)
------------- -------------
Net cash provided by (used-in)
operating activities 5,270,768 (7,944,211)
------------- -------------
Cash flows from investing activities:
Capital expenditures (447,981) (708,005)
Purchase of stock for ESOP - (559,800)
------------- -------------
Net cash (used in) investing activities (447,981) (1,267,805)
------------- -------------
Cash flows from financing activities:
Borrowings under revolving credit line 21,150,000 50,200,000
Repayments under revolving credit line (25,450,000) (40,600,000)
Principal payments of long-term debt (245,235) (225,325)
Proceeds from stock options 178,522 54,313
Proceeds from long-term debt - 559,800
------------- -------------
Net cash (used in) provided by
financing activities (4,366,713) 9,988,788
------------- -------------
Net increase in cash and cash equivalents 456,074 776,772
Cash and cash equivalents, beginning
of year 874,267 498,919
------------- -------------
Cash and cash equivalents, end of period $ 1,330,341 $ 1,275,691
============= =============
See notes to interim consolidated condensed financial statements.
5
<PAGE>
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
----------------------------------------------
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (CONTINUED)
-----------------------------------------------------------
(unaudited)
FOR THE NINE MONTHS ENDED
-------------------------------------
NOVEMBER 30, 1996 NOVEMBER 30, 1995
----------------- -----------------
RECONCILIATION OF NET INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Net income $ 5,548,058 $ 6,871,148
----------- ------------
Adjustments to reconcile net income to
net cash provided by (used in) operating
activities:
Depreciation and amortization 904,813 844,366
Contribution to ESOP 104,962 104,962
Bad debt provision 439,000 635,000
Changes in assets and liabilities:
Decrease (increase) in accounts receivabl 302,860 (8,268,759)
(Increase) in inventories (192,197) (13,463,183)
(Increase) decrease in prepaid expenses
and other current assets (2,202,370) 824,752
(Increase) in other assets (233,029) (226,921)
Increase in accounts payable and
accrued expenses 683,921 3,528,411
(Decrease) increase in income taxes (220,288) 708,798
Increase in current liabilities 50,327 -
Increase in deferred taxes 84,711 497,215
----------- ------------
Total adjustments (277,290) (14,815,359)
----------- ------------
Net cash provided by (used in)
operating activities $ 5,270,768 $ (7,944,211)
=========== ============
See notes to interim consolidated condensed financial statements.
6
<PAGE>
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
----------------------------------------------
NOTES TO INTERIM CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
------------------------------------------------------------
(unaudited)
1. In the opinion of management, the accompanying unaudited interim consolidated
condensed financial statements of Nu Horizons Electronics Corp. (the
"Company") and its subsidiaries (Nu Horizons/Merit Electronics Corp., NIC
Components Corp., Nu Horizons International Corp. and Nu Visions
Manufacturing, Inc.) contain all adjustments necessary to present fairly the
Company's financial position as of November 30, 1996 and February 29, 1996
and the results of its operations for the nine and three month periods ended
November 30, 1996 and 1995 and cash flows for the nine month periods ended
November 30, 1996 and 1995.
The accounting policies followed by the Company are set forth in Note 2 to
the Company's consolidated financial statements included in its Annual Report
on Form 10-K for the year ended February 29, 1996, which is incorporated
herein by reference. Specific reference is made to this report for a
description of the Company's securities and the notes to consolidated
financial statements included therein.
The results of operations for the nine and three month periods ended November
30, 1996 are not necessarily indicative of the results to be expected for the
full year.
2. PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment consists of the following:
NOVEMBER FEBRUARY
30, 1996 29, 1996
---------- ----------
Land $ 266,301 $ 266,301
Building and improvements 1,738,764 1,747,930
Furniture, fixtures and
office equipment 2,349,865 2,037,183
Computer equipment 2,423,047 2,278,582
Assets held under capitalized leases 919,834 919,834
---------- ----------
7,697,811 7,249,830
Less: accumulated depreciation
and amortization 4,405,082 3,810,026
---------- ----------
$3,292,729 $3,439,804
========== ==========
3. BANK LINE OF CREDIT:
In February, 1988 the Company entered into a revolving credit agreement, as
amended, with its bank which provides for a $25,000,000 unsecured revolving
line of credit at the bank's prime rate through April 8, 2000. Direct
borrowings under the line of credit were $13,000,000 and $17,300,000 at
November 30, 1996 and February 29, 1996, respectively.
7
<PAGE>
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
----------------------------------------------
NOTES TO INTERIM CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
------------------------------------------------------------
(unaudited)
4. SUBORDINATED CONVERTIBLE NOTES:
In a private placement completed on August 31, 1994, the Company issued $15
million principal amount of Subordinated Convertible Notes, which are due
in $5,000,000 increments on August 31, 2000, 2001 and 2002. The notes are
subordinate in right of payment to all existing and future senior
indebtedness of the Company. The notes bear interest at 8.25%, payable
quarterly on November 30, February 28, May 31 and August 31. The notes are
convertible into shares of common stock at a conversion price of $9.00 per
share. The cost of issuing these notes was $521,565 and is being amortized
over the life of the notes. As of November 30, 1996, $7,941,000 of the
notes have been converted into 882,333 shares of common stock and
$7,059,000 principal amount of subordinated convertible notes remained
outstanding and are due in increments of $2,353,000 on August 31, 2000,
2001 and 2002.
5. NET INCOME PER SHARE:
Net income per share has been computed on the basis of the weighted
average number of common shares and common equivalent shares outstanding
during each period presented. Fully diluted earnings per share has been
computed assuming conversion of all dilutive stock options.
The following average shares were used in the computation of primary and
fully diluted earnings per share:
Nine Months Ended Three Months Ended
November 30, November 30,
1996 1995 1996 1995
------------ ---------- ---------- ----------
Primary 9,141,531 8,098,973 8,887,610 8,310,144
Fully diluted 10,843,359 10,410,189 10,843,359 10,416,109
All per share amounts have been retroactively restated as a result of stock
dividends and a three for two stock split.
A detailed computation of earnings per common share appears in Exhibit 11
of this Form 10-Q.
8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
-----------------------------------------------------------
AND RESULTS OF OPERATIONS:
--------------------------
Introduction:
-------------
Nu Horizons Electronics Corp. (the "Company") and its wholly-owned
subsidiaries, Nu Horizons/Merit Electronics Corp. ("Merit"), NIC
Components Corp. ("NIC") and Nu Horizons International Corp.
("International"), are engaged in the distribution of high technology
active and passive electronic components to a wide variety of original
equipment manufacturers ("OEMs") of electronic products. Active
components distributed by the Company include semiconductor products
such as memory chips, microprocessors, digital and linear circuits,
microwave/RF and fiberoptic components, transistors and diodes. Passive
components distributed by NIC, principally to OEMs and other
distributors nationally, consist of a high technology line of chip and
leaded components including capacitors, resistors and related networks.
Nu Visions Manufacturing, Inc. ("NUV") located in Springfield,
Massachusetts, another subsidiary of the Company, is a contract
assembler of circuit boards, harnesses and related electromechanical
devices for various OEM's.
The financial information presented herein includes: (i) Consolidated
condensed balance sheets as of November 30, 1996 and February 29, 1996;
(ii) Consolidated condensed statements of income for the nine and three
month periods ended November 30, 1996 and 1995 and (iii) Consolidated
condensed statements of cash flows for the nine month periods ended
November 30, 1996 and 1995.
Results of Operations:
----------------------
Sales for the nine month period ended November 30, 1996 were
$162,414,223 as compared to $149,874,502 for the comparable period of
the prior year, an increase of $12,539,721 or 8.4% However,
approximately $12,956,000 or 103% of the nine month increase relates to
the first fiscal quarter of 1997, ended May 31, 1996, as compared to the
first fiscal quarter of 1996, ended May 31, 1995. Sales for the three
month period ended May 31, 1996 were a record $57,672,540 as compared to
$44,716,053 for the comparable period of the prior year, an increase of
approximately 29%. Management attributes the increase in sales for that
period to the following sales categories: Approximately $2,006,000 or
16% of the overall increase resulted from incremental sales generated by
the West Coast distribution group which consists of the San Jose,
Irvine, Los Angeles and San Diego branches. Approximately $934,000 or 7%
of the increase was generated by the Nu Visions Manufacturing
subsidiary. The balance of the increase, approximately $10,016,000 or
77% resulted from incremental sales generated by the core distribution
business through greater market penetration and overall strength in the
electronic industry at that time.
9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
-----------------------------------------------------------
AND RESULTS OF OPERATIONS (Continued):
--------------------------------------
Results of Operations (Continued):
----------------------------------
Sales for the six month period ended November 30, 1996 were $104,741,683
as compared to $105,158,449 for the comparable period of the prior year,
a nominal decrease of approximately $417,000. Sales for the three month
period ended November 30, 1996 were $53,958,639 as compared to
$55,066,644 for the comparable period of the prior year. Management
attributes these reductions in sales entirely to the core semiconductor
distribution business which experienced excess inventory levels at the
semiconductor manufacturing (supplier) level which resulted in reduced
unit pricing and lower overall sales volume. Management believes that
this situation is temporary and is now in the process of correction;
however, no assurance can be given in this regard.
Gross profit margins for the three and nine months ended November 30,
1996 were 22.4% and 22.4% as compared to 23.8% and 23.5% respectively
for the comparable periods of the prior year. Management attributes this
lower profit margin primarily to a general downward correction of
selling prices in the marketplace, for both semiconductors and passive
components, during the periods ended November 30, 1996, and a greater
volume of larger orders at lower gross profit margins.
Operating expenses have increased from approximately $22,187,000 for the
nine months ended November 30, 1995 to approximately $25,716,000 for the
nine months ended November 30, 1996, an increase of 16% or approximately
$3,529,000. For the three months ended November 30, 1995 as compared to
the three months ended November 30, 1996 operating expenses increased
from approximately $7,699,000 to $8,607,000, an increase of 12%, or
approximately $908,000. As a percentage of sales, operating expenses for
the nine and three month periods increased from 14.8% and 14.0%
respectively to 15.8% and 15.9% respectively. The dollar increases in
operating expenses were due to increases in the following expense
categories: Approximately $3,108,000 or 88% of the increase for the nine
month period and approximately $582,000 or 64% of the increase for the
three month period, were for personnel related costs - commissions,
salaries, travel, fringe benefits. These increases were required to
produce the increased sales in the first quarter and planned increased
sales levels in the second and third quarters which did not materialize
as discussed above. The remaining increases of approximately $421,000
and $326,000 for the nine and three month periods respectively are a
result of increases in various other operating expenses.
Interest expense decreased from $1,479,951 to $1,341,656 when comparing
the nine month periods and from $545,290 to $532,285 when comparing the
three month periods ended November 30, 1995 and 1996. This decrease was
primarily due to the interest on higher levels of bank debt during the
nine month period being more than offset by the lower amount of
outstanding subordinated convertible debt (see Note 4 of the
Consolidated Financial Statements). The increase in bank debt levels
during the nine month period was primarily due to an increase in
borrowings, resulting from an increase in the Company's accounts
receivable and inventory levels, required to support the increased sales
volume in the current nine month period.
10
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
-----------------------------------------------------------
AND RESULTS OF OPERATIONS (Continued):
--------------------------------------
Results of Operations (Continued):
----------------------------------
INTEREST EXPENSE
----------------
FOR THE NINE MONTHS ENDED FOR THE THREE MONTHS ENDED
------------------------- --------------------------
NOVEMBER NOVEMBER NOVEMBER NOVEMBER
30, 1996 30, 1995 30, 1996 30, 1995
---------- ---------- --------- ---------
Revolving Bank Credit $ 878,286 $ 613,701 $ 386,693 $ 297,790
Sub. Convert. Notes 463,370 866,250 145,592 247,500
---------- ---------- --------- ---------
Total Interest Expense $1,341,656 $1,479,951 $ 532,285 545,290
========== ========== ========= =========
Net income for the nine month period ended November 30, 1996 was $5,548,058 or
$.54 per share fully diluted as compared to $6,871,148 or $.71 per share fully
diluted for the nine month period ended November 30, 1995. Net income for the
three month period ended November 30, 1996 was $1,741,894 or $.17 per share
fully diluted as compared to $2,834,143 or $.29 per share fully diluted for
the corresponding period of the prior year. The decreases in earnings were
primarily due to lower gross profit margins and higher operating expenses net
of lower interest expense for the periods.
Liquidity and Capital Resources:
--------------------------------
At November 30, 1996 the Company's current ratio was 6.3:1 as compared to
6.4:1 at the fiscal year ended February 29, 1996. Working capital increased
from approximately $57,954,000 as of February 29, 1996 to approximately
$59,599,000 at November 30, 1996, while cash increased from February 29, 1996
to November 30, 1996 by approximately $456,000. The primary reasons for the
increase in working capital was the increase in cash and an increase in
inventories financed primarily through long term debt during the current
period. These increases were required to support the increased sales activity
over the nine month period.
In February 1988, the Company entered into an unsecured revolving line of
credit agreement, as amended, which provides for maximum borrowings of
$25,000,000 at the bank's prime rate with payments of interest only through
April 8, 2000. At November 30, 1996 $13,000,000 was outstanding under this
line of credit as compared to $17,300,000 at February 29, 1996.
In a private placement completed on August 31, 1994, the Company issued $15
million principal amount of Subordinated Convertible Notes, which are due in
$5,000,000 increments on August 31, 2000, 2001 and 2002. The notes are
subordinate in right of payment to all existing and future senior indebtedness
of the Company. The notes bear interest at 8.25%, payable quarterly on
November 15, February 15, May 15 and August 15. The notes are convertible
into shares of common stock at a conversion price of $9.00 per share. The
cost of issuing these notes was $521,565 and is being amortized over the life
of the notes. The Company has registered, under the Securities Act of 1933,
for the resale by the holders thereof, 117,666 shares of common stock,
representing the number of shares of common stock obtainable by such holders
upon conversion of $1,059,000 of the outstanding principal amount of such
notes. As of November 30, 1996, $7,941,000 of the notes have been converted
into 882,333 shares of common stock and $7,059,000 principal amount of
subordinated convertible notes remained outstanding and are due in increments
of $2,353,000 on August 31, 2000, 2001 and 2002. No assurance can be given
that the notes will be converted or that the shares of common stock underlying
the notes will be sold by the holders thereof.
11
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
-----------------------------------------------------------
AND RESULTS OF OPERATIONS (Continued):
--------------------------------------
Liquidity and Capital Resources:
--------------------------------
The Company anticipates that its resources provided by its cash flow
from operations and its bank line of credit will be sufficient to meet
its financing requirements for at least the next twelve month period.
Inflationary Impact:
--------------------
Since the inception of operations, inflation has not significantly
affected the operating results of the Company. However, inflation and
changing interest rates have had a significant effect on the economy in
general and therefore could affect the operating results of the Company
in the future.
Other:
------
Except for historical information contained herein, the matters set
forth above 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 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, economic
conditions in the semiconductor industry 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.
12
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings
There are no material legal proceedings against the Company or in which
any of their property is subject.
ITEM 2. Changes in Securities
None
ITEM 3. Defaults upon Senior Securities
None
ITEM 4. Submission of Matters to a Vote of Security Holders
None
ITEM 5. Other Information
On October 16, 1996, David Siegel resigned as a director of the Company
ITEM 6. Exhibits and Reports:
(a) Exhibits:
Exhibit 11 - Computation of Earnings per Common Share
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K
None
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Nu Horizons Electronics Corp.
-----------------------------
Registrant
/s/ Arthur Nadata
----------------------------------------
Date: January 13, 1997 Arthur Nadata, President and
Chief Executive Officer
/s/ Paul Durando
----------------------------------------
Date: January 13, 1997 Paul Durando, Vice President-Finance
and Chief Financial Officer
14
<PAGE>
NU HORIZONS ELECTRONICS CORP.
EXHIBIT 11
COMPUTATION OF EARNINGS PER COMMON SHARE
----------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
FOR THE NINE MONTHSENDED FOR THE THREE MONTHS ENDED
-------------------------- ----------------------------
NOVEMBER NOVEMBER NOVEMBER NOVEMBER
30, 1995 30, 1996 30, 1995 30, 1996
------------ ----------- ------------- -------------
<S> <C> <C> <C> <C>
PRIMARY EARNINGS:
- ----------------
NET INCOME $ 5,548,058 $ 6,871,148 $ 1,741,894 $ 2,834,143
=========== =========== =========== ===========
WEIGHTED AVERAGE SHARES:
Common shares
outstanding 8,732,299 8,081,844 8,732,299 8,081,844
Common share
equivalents 409,232 17,129 155,311 228,300
----------- ----------- ----------- -----------
Weighted average
number of common
shares and common
share equivalents
outstanding 9,141,531 8,098,973 8,887,610 8,310,144
=========== =========== =========== ===========
PRIMARY EARNINGS PER
COMMON SHARE: $ .61 $ .85 $ .20 $ .34
=========== =========== =========== ===========
FULLY DILUTED EARNINGS:
- --------------------------
Net Income $ 5,548,058 $ 6,871,148 $ 1,741,894 $ 2,834,143
Net (after tax)
interest expense
related to
convertible debt 273,389 534,764 85,900 170,825
----------- ----------- ----------- -----------
NET INCOME AS ADJUSTED $ 5,821,447 $ 7,405,912 $ 1,827,794 $ 3,004,968
=========== =========== =========== ===========
SHARES:
Weighted average
number of common
shares and common
share equivalents
outstanding 9,141,531 8,098,973 8,887,610 8,310,144
Additional options
not included above 917,495 681,587 1,171,416 550,410
Assuming conversion
of convertible debt 784,333 1,629,629 784,333 1,555,555
----------- ----------- ----------- -----------
Weighted average
number of common
shares outstanding
as adjusted 10,843,359 10,410,189 10,843,359 10,416,109
=========== =========== =========== ===========
FULLY DILUTED EARNINGS
PER COMMON SHARE $ .54 $ .71 $ .17 $ .29
=========== =========== =========== ===========
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS FOR THE THIRD QUARTER ENDED NOVEMBER 30, 1996
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH STATEMENTS.
</LEGEND>
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