<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
May 31, 1999 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.)
70 Maxess Road, Melville, New York 11747
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(516) 396-5000
- --------------------------------------------------------------------------------
(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
- ----
Indicated 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 8,753,076
- ----------------------------------------- -----------------------------------
Class Outstanding Shares
<PAGE>
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
----------------------------------------------
INDEX
-----
<TABLE>
<CAPTION>
PART I. Financial Information Page(s)
<S> <C> <C>
ITEM 1. Financial Statements
Consolidated Condensed Balance Sheets -
May 31, 1999 (unaudited) and February 28, 1999 3.
Consolidated Condensed Statements of Income (unaudited) -
Three Months Ended May 31, 1999 and 1998 4.
Consolidated Condensed Statements of Cash Flows (unaudited) -
Three Months Ended May 31, 1999 and 1998 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 13.
SIGNATURES 14.
INDEX TO EXHIBITS 15.
Exhibit 11 - Computation of Earnings per Common Share
Exhibit 27 - Financial Data Schedule
</TABLE>
2
<PAGE>
PART 1. FINANCIAL INFORMATION
ITEM 1. Financial Statements
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
----------------------------------------------
CONSOLIDATED CONDENSED BALANCE SHEETS
-------------------------------------
-ASSETS-
--------
<TABLE>
<CAPTION>
MAY FEBRUARY
31, 1999 28, 1999
------------------ ------------------
(unaudited)
<S> <C> <C>
CURRENT ASSETS:
Cash (including time deposits) $ 911,310 $ 504,320
Accounts receivable-net of allowance for doubtful
accounts of $2,752,918 and $2,630,984 for May 31,
1999 and February 28, 1999, respectively 45,212,354 41,920,403
Inventories 56,125,237 45,113,894
Prepaid expenses and other current assets 3,012,019 2,355,255
------------------ ------------------
TOTAL CURRENT ASSETS 105,260,920 89,893,872
PROPERTY, PLANT AND EQUIPMENT NET (Note 2) 6,942,489 7,130,794
OTHER ASSETS:
Cost in excess of net assets acquired-net 1,556,177 1,595,408
Other assets 1,153,622 1,138,821
------------------ ------------------
$114,913,208 $99,758,895
================== ==================
-LIABILITIES AND SHAREHOLDERS' EQUITY-
--------------------------------------
CURRENT LIABILITIES:
Accounts payable $ 16,376,959 $14,369,712
Accrued expenses 7,289,488 6,674,263
Income taxes payable 255,975 -
------------------ ------------------
TOTAL CURRENT LIABILITIES 23,922,422 21,043,975
------------------ ------------------
LONG TERM LIABILITIES:
Deferred income taxes 482,755 418,852
Revolving credit line (Note 3) 25,500,000 14,900,000
Subordinated convertible notes (Note 4) 7,059,000 7,059,000
------------------ ------------------
33,041,755 22,377,852
------------------ ------------------
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;
8,753,076 shares issued and outstanding for
May 31, 1999 and February 28, 1999 57,770 57,770
Additional paid-in capital 19,042,230 19,042,230
Retained earnings 39,603,687 38,076,840
------------------ ------------------
58,703,687 57,176,840
Less: loan to ESOP 754,656 839,772
------------------ ------------------
57,949,031 56,337,068
------------------ ------------------
$114,913,208 $99,758,895
================== ==================
</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 THREE MONTHS ENDED
-----------------------------------------------
MAY 31, 1999 MAY 31, 1998
------------------- -------------------
<S> <C> <C>
NET SALES $74,141,612 $60,231,919
------------------- -------------------
COSTS AND EXPENSES:
Cost of sales 59,167,472 46,593,041
Operating expenses 11,988,784 11,209,218
Interest expense 418,073 529,355
------------------- -------------------
71,574,329 58,331,614
------------------- -------------------
INCOME BEFORE PROVISION FOR INCOME TAXES 2,567,283 1,900,305
Provision for income taxes 1,040,436 778,954
------------------- -------------------
NET INCOME $ 1,526,847 $ 1,121,351
=================== ===================
NET INCOME PER SHARE (Note 5):
Basic $.17 $.13
==== ====
Diluted $.14 $.11
==== ====
</TABLE>
See notes to interim consolidated condensed financial statements
4
<PAGE>
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
----------------------------------------------
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
-----------------------------------------------
(unaudited)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED
------------------------------------------------
MAY 31, 1999 MAY 31, 1998
------------------- -------------------
<S> <C> <C>
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS:
Cash flows from operating activities:
Cash received from customers $ 70,729,661 $ 62,730,421
Cash paid to suppliers and employees (79,334,731) (65,446,008)
Interest paid (418,073) (529,355)
Income taxes paid (1,002,650) (92,000)
------------------- -------------------
Net cash (used in) operating activities (10,025,793) (3,336,942)
------------------- -------------------
Cash flows from investing activities:
Capital expenditures (167,217) (609,387)
------------------- -------------------
Net cash (used in) investing activities (167,217) (609,387)
------------------- -------------------
Cash flows from financing activities:
Borrowings under revolving credit line 35,700,000 13,600,000
Repayments under revolving credit line (25,100,000) (10,100,000)
------------------- -------------------
Net cash provided by financing activities 10,600,000 3,500,000
------------------- -------------------
Net increase (decrease) in cash and cash equivalents 406,990 (446,329)
Cash and cash equivalents, beginning of year 504,320 4,333,669
------------------- -------------------
Cash and cash equivalents, end of period $ 911,310 $ 3,887,340
=================== ===================
</TABLE>
See notes to interim consolidated condensed financial statements
5
<PAGE>
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
----------------------------------------------
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Continued)
-----------------------------------------------------------
(unaudited)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED
------------------------------------------------
MAY 31, 1999 MAY 31, 1998
------------------ ------------------
<S> <C> <C>
RECONCILIATION OF NET INCOME TO NET
CASH (USED IN) OPERATING ACTIVITIES:
Net income $ 1,526,847 $ 1,121,351
------------------- -------------------
Adjustments to reconcile net income to net cash
(used in) operating activities:
Depreciation and amortization 355,522 244,620
Contribution to ESOP 85,116 34,983
Bad debt provision 120,000 -
Changes in assets and liabilities
Decrease (increase) in accounts receivable (3,411,951) 2,498,502
(Increase) in inventories (11,011,343) (5,776,783)
(Increase) decrease in prepaid expenses and other (656,764) 1,449,295
current assets
Decrease (increase) in other assets 24,430 (52,697)
Increase (decrease) in accounts payable and 2,622,472 (2,937,678)
accrued expenses
Increase in income taxes 255,975 167,025
(Decrease) increase in deferred taxes 63,903 (85,560)
------------------- -------------------
Total Adjustments (11,552,640) (4,458,293)
------------------- -------------------
Net cash (used in) operating activities $(10,025,793) $(3,336,942)
=================== ===================
</TABLE>
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, Nu Horizons Eurotech
Limited, NIC Eurotech Limited, Titan Logistics Corp. and Nu Visions
Manufacturing, Inc.) contain all adjustments necessary to present fairly the
Company's financial position as of May 31, 1999 and February 28, 1999 and
the results of its operations and cash flows for the three month periods
ended May 31, 1999 and 1998.
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 28, 1999, 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 three-month period ended May 31, 1999 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:
<TABLE>
<CAPTION>
May February
31, 1999 28, 1999
------------------- -------------------
<S> <C> <C>
Furniture, fixtures and office equipment $ 7,885,997 $ 7,839,268
Computer equipment 3,583,578 3,499,524
Assets held under capitalized leases 919,834 919,834
Leasehold improvements 1,274,092 1,254,364
------------------- -------------------
13,663,501 13,512,990
Less: accumulated depreciation and amortization 6,721,012 6,382,196
------------------- -------------------
$ 6,942,489 $ 7,130,794
=================== ===================
</TABLE>
3. BANK LINE OF CREDIT:
On May 23, 1997, the Company entered into an unsecured revolving line of
credit with two banks, which as amended, provides for maximum borrowings of
$35,000,000 at either (i) the lead bank's prime rate or (ii) LIBOR plus 57.5
to 112.5 basis points depending on the ratio of the Company's debt to its
earnings before interest, taxes, depreciation and amortization, at the
option of the Company through May 23, 2001.
7
<PAGE>
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
----------------------------------------------
NOTES TO INTERIM CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Continued)
------------------------------------------------------------------------
(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 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 which was amortized over
three years. As of May 31, 1999, $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:
Basic and diluted earnings per share have been computed in accordance with
the adoption of SFAS No. 128. In addition, prior period per share data has
been restated in accordance with SFAS No. 128.
The following average shares were used in the computation of basic and
diluted earnings per share:
May May
31, 1999 31, 1998
--------------- ---------------
Basic 8,753,076 8,753,076
Diluted 11,462,359 10,898,859
A detailed computation of earnings per common share appears in Exhibit 11 to
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"), Nu Horizons International Corp.
("International"), Nu Horizons Eurotech Limited, NIC Eurotech Limited
and Titan Logistics Corp., 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, consists 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 wholly-owned subsidiary of the Company, is a
contract assembler of circuit boards and related electromechanical
devices for various OEM's.
The financial information presented herein includes: (i) Consolidated
Condensed Balance Sheets as of May 31, 1999 and February 28, 1999; (ii)
Consolidated Condensed Statements of Income for the three month periods
ended May 31, 1999 and 1998 and (iii) Consolidated Condensed Statements
of Cash Flows for the three month periods ended May 31, 1999 and 1998.
Results of Operations:
----------------------
Sales for the three-month period ended May 31, 1999 were $74,141,612 as
compared to $60,231,919 for the comparable period of the prior year, an
increase of approximately 23%, and $66,579,269 for the immediately
preceding quarter ended February 28, 1999, an increase of approximately
11%. Management attributes these increases to the core semiconductor
distribution business. The ability to generate a greater market
penetration to a larger account base, providing larger orders, has
contributed to the Company's ability to increase sales performance by
substantial amounts for both the year-to-year and sequential
comparisons. While the Company believes it can continue to successfully
implement this approach, no assurances can be given in this regard.
The gross profit margin for the quarter ended May 31, 1999 was 20.2% as
compared to 22.6% for the quarter ended May 31, 1998 and 20.8% for the
immediately preceding quarter ended February 28, 1999. This overall
decrease in gross margin compared to the prior period is due to a
greater percentage of larger orders from larger customers, which
requires a lower gross margin marketing approach on that business,
thereby imposing a downward effect on margins overall. The Company
expects this type of margin pressure to continue in concert with an
aggressive incremental sales approach.
9
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS (Continued):
----------------------------------
Results of Operations (Continued):
----------------------------------
Operating expenses were approximately $11,989,000 for the three months
ended May 31, 1999 as compared to $11,209,000 for the three months
ended May 31, 1998, an increase of approximately $780,000 or 7%.
Operating expenses as a percentage of sales dropped from 18.6% of sales
for the quarter ended May 31, 1998, to 16.2% of sales for the current
quarter ended May 31, 1999. Management is encouraged by the fact that
sales volume is increasing at a greater rate than operating expenses
which is beginning to provide the economies of scale required to
produce an enhanced bottom line performance. Management believes that
this trend should continue through the remainder of the fiscal year,
although no assurances can be given in this regard.
Interest expense decreased from $529,355 for the three months ended May
31, 1998 to $418,073 for the three months ended May 31, 1999 as a
result of lower average levels of bank debt as compared to the prior
comparable period. The decrease in bank debt was primarily due to a
decrease in average borrowings due to an increase in the Company's
current asset levels, which were more than offset by the increase in
current liabilities.
<TABLE>
<CAPTION>
INTEREST EXPENSE
FOR THE THREE MONTHS ENDED
----------------------------------------------
May May
31, 1999 31, 1998
------------------- -------------------
<S> <C> <C>
Revolving Bank Credit $ 272,481 $ 383,763
Sub. Convert. Notes 145,592 145,592
------------------- -------------------
Total Interest Expense $ 418,073 $ 529,355
=================== ===================
</TABLE>
Net income for the three month period ended May 31, 1999 was $1,526,847
or $ .17 per share as compared to $1,121,351 or $.13 per share for the
three month period ended May 31, 1998. Management attributes the
increase in earnings to increased sales volume net of higher operating
expenses for the May 1999 period as compared to the May 1998 period.
Liquidity and Capital Resources:
--------------------------------
At May 31, 1999, the Company's current ratio was 4.4:1 as compared to
4.3:1 at February 28, 1999. Working capital increased from
approximately $68,850,00 at February 28, 1999 to approximately
$81,338,000 at May 31, 1999, while cash increased from February 28,
1999 to May 31, 1999 by approximately $407,000. The primary reasons for
the increase in working capital was an increase in inventories and
accounts receivable financed primarily through long term debt during
the current period.
10
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
-----------------------------------------------------------------------
OF OPERATIONS (Continued):
--------------------------
Liquidity and Capital Resources (Continued):
--------------------------------------------
On May 23, 1997, the Company entered into an unsecured revolving line
of credit with two banks, which as amended, currently provides for
maximum borrowings of $35,000,000 at either (I) the lead bank's prime
rate or (ii) LIBOR plus 57.5 to 112.5 basis points depending on the
ratio of the Company's debt to its earnings before interest, taxes,
depreciation and amortization, at the option of the Company through May
23, 2001.
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 subordinated 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 $9.00 per share. The cost of issuing these notes was $521,565 and
was amortized over three years. As of May 31, 1999, $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.
The Company anticipates that its capital resources provided by its bank
line of credit will be sufficient to meet its financing requirements
for at least the next twelve-month period.
Impact of Year 2000 Issue:
The year 2000 issue is the result of computer programs being written
using two digits rather than four to define the applicable year. Any of
the Company's computer programs that have date-sensitive software may
recognize a date using "00" as the year 1900 rather than the year 2000.
This could potentially result in a system failure or miscalculations
causing disruptions of operations, including, among other things, a
temporary inability to process transactions, send invoices, or engage
in other similar normal business activities.
Assessment. The Year 2000 problem could affect computers, software and
other equipment which the Company uses, operates or maintains.
Accordingly, the Company reviewed its internal computer programs and
systems to ensure that the programs and systems will be Year 2000
compliant. The Company has ensured that its software is already year
2000 compliant.
Vendors. The Company has initiated communications, including surveys,
with its vendors (and customers) to identify and, to the extent
possible, to resolve issues involving the Year 2000 problem. However,
the Company has limited or no control over responses to its inquiries
and the actions of these third parties. Approximately 95% of the
Company's vendors have responded indicating that they are or will be
Year 2000 compliant in a timely fashion. Thus, while the Company does
not anticipate any significant Year 2000 problems with its vendors,
there can be no assurance that these vendors in fact have no Year 2000
problems. To the extent that these vendors may have unrecognized Year
2000 problems, there can be no assurance that they will resolve any and
all of such problems before the occurrence of a disruption to their
business or that of their customers. Since there are many suppliers of
alternative products, the Company does not anticipate that the failure
of its vendors to resolve Year 2000 problems with their systems in a
timely manner will have a material adverse effect on the Company's
business, financial condition, and results of operation; however no
assurances can be given in this regard.
11
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
-----------------------------------------------------------------------
OF OPERATIONS (Continued):
--------------------------
Impact of Year 2000 Issue (continued):
Most Likely Consequences of Year 2000 Problems. The Company believes it
has identified and resolved all potential internal Year 2000 problems
that could materially adversely affect its business operations.
However, the Company does not believe that it is possible to determine
with complete certainty that all Year 2000 problems which affect it
have been identified or corrected. The number of devices that could be
affected and the interactions among these devices are simply too
numerous. In addition, one cannot accurately predict how many Year 2000
problem-related failures will occur or the severity, duration or
financial consequences of these perhaps inevitable failures. In
addition, the Company is unable to determine with any degree of
certainty, the changes in buying habits of its current and potential
customers due to their concerns over Year 2000 issues and whether its
vendors will be Year 2000 compliant. As a result, the Company expects
that it could likely experience a significant number of operational
inconveniences and inefficiencies for it and its customers that may
divert management's time and attention and financial and human
resources from its ordinary business activities.
Contingency Plans. Since the Company has ensured that its software is
Year 2000 compliant, it does not believe that it needs to develop
contingency plans to identify and correct Year 2000 problems affecting
its internal systems. The Company expects to develop contingency plans
to deal with any Year 2000 problems identified by its vendors. If the
Company is required to implement any of these contingency plans, it
could have a material adverse effect on the Company's financial
condition and results of operations.
Disclaimer. The discussion of the Company's efforts, and management's
expectations , relating to Year 2000 compliance are forward-looking
statements. The Company's ability to achieve Year 2000 compliance and
the level of incremental costs associated with such compliance, could
be adversely impacted by, among other things, the availability and cost
of programming and testing resources, vendors' ability to modify
proprietary software, and unanticipated problems identified in our
ongoing compliance review.
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 may be 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, 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
None
ITEM 6. Exhibits and Reports:
(a) Exhibits:
11. Statement re: Computation of Per Share Earnings (See Notes to
Consolidated Financial Statements Note 5)
27. Financial Data Schedule
(b) Reports on Form 8-K
Form 8-K Dated May 26, 1999 Item 5 Regarding Distribution of
Preferred Share Purchase Rights.
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.
<TABLE>
<S> <C> <C>
Nu Horizons Electronics Corp.
-------------------------------------------------
Registrant
/s/ Arthur Nadata
-------------------------------------------------
Date: July 6, 1999 Arthur Nadata, President and
Chief Executive Officer
/s/ Paul Durando
-------------------------------------------------
Date: July 6, 1999 Paul Durando, Vice President-Finance
and Chief Financial Officer
</TABLE>
14
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-------------------------------
EXHIBIT INDEX
To
FORM 10-Q
FOR THE FISCAL QUARTER ENDED MAY 31, 1999
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT 1934
-------------------------------
NU HORIZONS ELECTRONICS CORP.
(Exact Name of Registrant as Specified in Its Charter)
EXHIBIT
NUMBER DESCRIPTION
- --------------------------------------------------------------------------------
11 Computation of Per Share Earnings
27 Financial Data Schedule
15
<PAGE>
NU HORIZONS ELECTRONICS CORP.
EXHIBIT 11
COMPUTATION OF EARNINGS PER COMMON SHARE
----------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED
----------------------------------------------
May May
31, 1999 31, 1998
--------------- ----------------
<S> <C> <C>
BASIC EARNINGS:
- ---------------
NET INCOME $ 1,526,847 $ 1,121,351
=============== ================
Weighted average number of common shares outstanding 8,753,076 8,753,076
--------------- ----------------
BASIC EARNINGS PER COMMON SHARE $.17 $.13
==== ====
DILUTED EARNINGS:
- -----------------
Net income $ 1,526,847 $ 1,121,351
Net (after tax) interest expense related to convertible debt 85,000 85,000
--------------- ----------------
NET INCOME AS ADJUSTED $ 1,611,847 $ 1,206,351
=============== ================
SHARES:
Weighted average number of common shares outstanding 8,753,076 8,753,076
Stock options 1,924,950 1,361,450
Assuming conversion of convertible debt 784,333 784,333
--------------- ----------------
Weighted average number of common shares outstanding
as adjusted 11,462,359 10,898,859
=============== ================
DILUTED EARNINGS PER COMMON SHARE $.14 $.11
==== ====
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MAY 31, 1999 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> FEB-28-2000
<PERIOD-START> MAR-01-1999
<PERIOD-END> MAY-31-1999
<CASH> 911,310
<SECURITIES> 0
<RECEIVABLES> 47,965,272
<ALLOWANCES> 2,752,918
<INVENTORY> 56,125,237
<CURRENT-ASSETS> 105,260,920
<PP&E> 13,663,501
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0
0
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</TABLE>
