<PAGE>
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, 1998 1-8798
- ---------------------------------------- ----------------------------------
Nu Horizons Electronics Corp.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 11-2621097
- ---------------------------------------- ----------------------------------
(State of 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 ____
-
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 8,753,076
- ---------------------------------------- ----------------------------------
Class Outstanding Shares
<PAGE>
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page(s)
<S> <C>
PART I: Financial Information
ITEM 1. Financial Statements
Consolidated Condensed Balance Sheets -
November 30, 1998 (Unaudited) and February 28, 1998 Page 3.
Consolidated Condensed Statements of Income (Unaudited) -
Nine Months and Three Months Ended November 30, 1998 and 1997 Page 4.
Consolidated Condensed Statements of Cash Flows (Unaudited) -
Nine Months Ended November 30, 1998 and 1997 Pages 5. - 6.
Notes to Interim Consolidated Condensed Financial
Statements (Unaudited) Pages 7. - 8.
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations Pages 9. - 12.
PART II: Other Information
ITEM 6. Exhibits and Reports on Form 8-K Page 13.
Signatures Page 14.
Exhibit Index
Exhibit 11 - Computation of Earnings per Common Share
(See Notes to Consolidated Condensed Financial Statements Note 5)
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>
NOVEMBER FEBRUARY
30, 1998 28, 1998
-------------- -------------
(unaudited)
<S> <C> <C>
CURRENT ASSETS:
Cash $ 6,847,897 $ 4,333,669
Accounts receivable-net of allowance for doubtful
accounts of $2,649,527 and $2,362,722 for November 30,
1998 and February 28, 1998, respectively 36,903,228 37,351,029
Inventories 47,010,694 44,004,890
Prepaid expenses and other current assets 3,912,693 4,837,007
------------ -----------
TOTAL CURRENT ASSETS 94,674,512 90,526,595
PROPERTY, PLANT AND EQUIPMENT - NET (Note 2) 7,326,698 6,359,775
OTHER ASSETS
Cost in excess of net assets acquired-net 1,634,639 1,752,332
Other assets 1,092,486 1,002,726
------------ -----------
$104,728,335 $99,641,428
============ ===========
-LIABILITIES AND SHAREHOLDERS' EQUITY-
--------------------------------------
CURRENT LIABILITIES:
Accounts payable $ 16,588,602 $12,112,365
Accrued expenses 2,314,969 3,196,623
------------ -----------
TOTAL CURRENT LIABILITIES 18,903,571 15,308,988
------------ -----------
LONG-TERM LIABILITIES:
Deferred income taxes 418,625 431,395
Revolving credit line (Note 3) 23,000,000 25,300,000
Long-term debt - -
Subordinated convertible notes (Note 4) 7,059,000 7,059,000
------------ -----------
TOTAL LONG-TERM LIABILTIES 30,477,625 32,790,395
------------ -----------
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;
and 8,753,076 shares issued and outstanding for
November 30, 1998 and February 28, 1998, respectively 57,770 57,770
Additional paid-in capital 19,042,230 19,042,230
Retained earnings 37,172,027 33,532,009
------------ -----------
56,272,027 52,632,009
Less: loan to ESOP 924,888 1,089,964
------------ -----------
55,347,139 51,542,045
------------ -----------
$104,728,335 $99,641,428
============ ===========
</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 F0R THE THREE MONTHS ENDED
-------------------------------------- -------------------------------------
NOVEMBER NOVEMBER NOVEMBER NOVEMBER
30, 1998 30, 1997 30, 1998 30, 1997
------------- ------------- ------------ ------------
<S> <C> <C> <C> <C>
NET SALES $187,293,056 $170,977,763 $64,263,220 $60,013,458
------------- ------------- ------------ ------------
COSTS AND EXPENSES:
Cost of sales 146,123,662 133,859,337 50,681,732 47,065,156
Operating expenses 33,387,189 29,368,837 10,945,669 10,318,275
Interest expense 1,682,699 1,203,275 516,304 436,104
Interest income (1,602) (10,109) (1,602) -
------------- ------------- ------------ ------------
181,191,948 164,421,340 62,142,103 57,819,535
------------- ------------- ------------ ------------
INCOME BEFORE PROVISION FOR
INCOME TAXES 6,101,108 6,556,423 2,121,117 2,193,923
Provision for income
taxes 2,461,090 2,677,236 833,274 888,540
------------- ------------- ------------ ------------
NET INCOME $ 3,640,018 $ 3,879,187 $ 1,287,843 $ 1,305,383
============= ============= ============ ============
NET INCOME PER SHARE (Note 5):
Primary $ .42 $ .44 $ .15 $ .15
------------- ------------- ------------ ------------
Fully diluted $ .35 $ .38 $ .12 $ .13
============= ============= ============ ============
</TABLE>
See notes to interim consolidated condensed financial statements
4
<PAGE>
NU HORIZONS ELECTRONICS CORP. AND SUBSIDIARIES
----------------------------------------------
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
-----------------------------------------------
(unaudited)
Page 1 of 2
<TABLE>
<CAPTION>
FOR THE NINE MONTHS ENDED
----------------------------------------------
NOVEMBER NOVEMBER
30, 1998 30, 1997
----------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS:
Cash flows from operating activities:
Cash received from customers $ 187,285,857 $ 166,899,076
Cash paid to suppliers and employees (177,405,794) (171,849,296)
Interested received 1,602 10,109
Interest paid (1,682,699) (1,203,275)
Income taxes paid (1,532,154) (2,943,711)
----------------- -----------------
Net cash provided by (used in) operating activities 6,666,812 (9,087,097)
----------------- -----------------
Cash flows from investing activities:
Capital expenditures (1,852,584) (863,765)
Proceeds from sale of building - 1,126,840
----------------- -----------------
Net cash (used in) provided by investing activities (1,852,584) 263,075
----------------- -----------------
Cash flows from financing activities:
Borrowings under revolving credit line 43,550,000 29,650,000
Repayments under revolving credit line (45,850,000) (18,050,000)
Principal payments of long-term debt - (433,129)
Proceeds from stock options - 103,388
----------------- -----------------
Net cash (used in) provided by financing activities (2,300,000) 11,270,259
----------------- -----------------
Net increase in cash and cash equivalents 2,514,228 2,446,237
Cash and cash equivalents, beginning of year 4,333,669 946,084
----------------- -----------------
Cash and cash equivalents, end of period $ 6,847,897 $ 3,392,321
================= =================
</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)
Page 2 of 2
<TABLE>
<CAPTION>
FOR THE NINE MONTHS ENDED
------------------------------------------------
NOVEMBER NOVEMBER
30, 1998 30, 1997
------------------- -------------------
<S> <C> <C>
RECONCILIATION OF NET INCOME TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net income $ 3,640,018 $ 3,879,187
------------ -------------
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
Depreciation and amortization 1,003,354 1,120,775
Contribution to ESOP 165,076 104,963
Bad debt provision 455,000 315,000
Loss on sale of building - 60,871
Changes in assets and liabilities
Decrease in accounts receivable (7,199) (4,078,687)
(Increase) in inventories (3,005,804) (9,729,917)
Decrease (increase) in prepaid expenses and other
current assets 924,314 (1,075,188)
(Increase) in other assets (89,760) (63,962)
Increase in accounts payable and accrued expenses 3,594,583 379,747
(Decrease) increase in deferred taxes (12,770) 114
------------ -------------
Total Adjustments 3,026,794 (12,966,284)
------------ -------------
Net cash provided by (used in) operating activities $ 6,666,812 $ (9,087,097)
============ =============
</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 November 30, 1998 and
February 28, 1998 and the results of its operations for the nine and three
month periods ended November 30, 1998 and 1997 and cash flows for the nine
month periods ended November 30, 1998 and 1997.
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, 1998, 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, 1998 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>
NOVEMBER FEBRUARY
30, 1998 28, 1998
------------------- -------------------
<S> <C> <C>
Furniture, fixtures and office equipment $ 7,162,238 $ 6,290,449
Computer equipment 3,434,853 3,016,739
Assets held under capitalized leases 919,834 919,834
Leasehold improvements 1,817,045 1,254,364
------------- -------------
13,333,970 11,481,386
Less: accumulated depreciation and amortization 6,007,272 5,121,611
------------- -------------
$ 7,326,698 $ 6,359,775
============= =============
</TABLE>
3. BANK LINE OF CREDIT
On May 23, 1997, the Company entered into a new unsecured revolving line of
credit with two banks, which 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.
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 and was amortized over
three years. As of November 30, 1998, $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 primary and
fully diluted earnings per share:
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
November 30, November 30.
----------------------------- -------------------------------
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Basic 8,753,076 8,753,076 8,753,076 8,753,076
Diluted 11,271,859 10,879,359 11,271,859 10,879,359
</TABLE>
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"), Nu Horizons Eurotech Limited, NIC Eurotech Limited, Titan
Logistics Corp. 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, 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 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, 1998 and February 28, 1998;
(ii) Consolidated Condensed Statements of Income for the nine and three
month periods ended November 30, 1998 and 1997 and (iii) Consolidated
Condensed Statements of Cash Flows for the nine and three month periods
ended November 30, 1998 and 1997.
Results of Operations:
----------------------
Sales for the nine month period ended November 30, 1998 were $187,293,056
as compared to $170,977,763 for the comparable period of the prior year, an
increase of approximately $16,315,000 or 9.5%.
Sales for the three month period ended November 30, 1998 were $64,263,220
as compared to $60,013,458 for the comparable period of the prior year, an
increase of approximately $4,250,000 or 7.1%. Management attributes this
increase in sales entirely to the core semiconductor distribution business
which has experienced substantially increased unit sales partially offset
by excess inventory levels at the semiconductor manufacturing (supplier)
level resulting in reduced unit pricing. Management continues to believe
that this latter situation is temporary and expects market conditions to
undergo a correction in the near future; however, no assurance can be given
in this regard.
Gross profit margins for the three and nine months ended November 30, 1998
were 21.1% and 22.0% as compared to 21.6% and 21.7% for the comparable
periods of the prior year. Gross profit percentages for the past several
quarters have remained relatively stable due to substantial inventory
oversupplies at the supplier level, as mentioned above. No assurance can be
given that gross profit stabilization will continue in future periods.
9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
------------------------------------------------------------------------
OF OPERATIONS (Continued):
-------------------------
Results of Operations (Continued):
----------------------------------
Operating expenses have increased from approximately $29,369,000 for the
nine months ended November 30, 1997 to approximately $33,387,000 for the
nine months ended November 30, 1998, an increase of 13.7% or approximately
$4,018,000. For the three months ended November 30, 1997 as compared to the
three months ended November 30, 1998 operating expenses increased from
approximately $10,318,000 to $10,945,000, an increase of 6.0% or
approximately $627,000. The dollar increases in operating expenses were due
to increases in the following expense categories: approximately $2,800,000
or 70% of the increase for the nine month period and approximately $350,000
or 56% of the increase for the three month period were for personnel
related costs commissions, salaries, travel and fringe benefits. The
remaining increases of approximately $1,218,000 and $277,000 for the nine
and three month periods, respectively are a result of increases in various
other selling, general and administrative expenses.
Interest expense increased from $1,203,275 to $1,682,699 when comparing the
nine month periods and from $436,104 to $516,304 when comparing the three
month periods ended November 30, 1997 and 1998, respectively. These
increases were primarily due to higher average borrowings resulting from an
increase in the Company's cash and inventories, net of a decrease in
accounts receivable levels.
<TABLE>
<CAPTION>
INTEREST EXPENSE
FOR THE NINE MONTHS ENDED FOR THE THREE MONTHS ENDED
------------------------------------- --------------------------------------
NOVEMBER 30, NOVEMBER 30,
1998 1997 1998 1997
--------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
Revolving Bank
Credit $1,245,923 $ 766,499 $370,712 $290,512
Sub. Convert.
Notes 436,776 436,776 145,592 145,592
-------------- --------------- -------------- ----------------
Total Interest
Expense $1,682,699 $1,203,275 $516,304 $436,104
============== =============== ============== ================
</TABLE>
Net income for the nine month period ended November 30, 1998 was $3,640,000
or $.35 per share diluted as compared to $3,879,187 or $.38 per share
diluted for the nine month period ended November 30, 1997. Net income for
the three month period ended November 30, 1998 was $1,287,843 or $.12 per
share diluted as compared to $1,305,383 or $.13 per share diluted for the
corresponding period of the prior year. The relative stability in earnings
is primarily due to increased sales net of higher expenses for the periods.
10
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
--------------------------------------------------------------------------
OPERATIONS (Continued):
-----------------------
Results of Operations (Continued):
- ----------------------------------
Liquidity and Capital Resources:
--------------------------------
At November 30, 1998, the Company's current ratio was 5.0:1 as compared to
5.9:1 at the fiscal year ended February 28, 1998. Working capital increased
from approximately $75,218,000 as of February 28, 1998 to approximately
$75,771,000 at November 30, 1998, while cash increased from February 28,
1998 to November 30, 1998 by approximately $2,500,000.
On May 23, 1997, the Company entered into a new 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
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 was amortized over
three years. As of November 30, 1998, $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.
11
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
-----------------------------------------------------------------------
OF OPERATIONS (Continued):
--------------------------
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. The Company has ensured that its
software is already year 2000 compliant. Nevertheless, the Company cannot
predict the effect of the year 2000 problem on the vendors and customers
with which the Company transacts business or with whose products the
Company's products interact and there can be no assurance that the effect
of the year 2000 issues on such entities will not adversely effect the
Company's operations. In an effort to reduce concerns relative to these
outside sources, the Company has undertaken written communications with its
vendors to confirm their preparedness relative to the year 2000 issue and,
with respect to vendors, their continued ability to produce and deliver the
products the Company purchases for resale.
Inflationary Impact:
--------------------
Since the inception of operations, inflation has not significantly effected
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 effect the operating results of the Company in the future.
Forward Looking Information:
----------------------------
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
None
ITEM 6. Exhibits and Reports:
(a) Exhibits:
11. Computation of Earnings per Common Share
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 11, 1999 Arthur Nadata, President and
Chief Executive Officer
/s/ Paul Durando
----------------------------------------
Date: January 11, 1999 Paul Durando, Vice President-Finance
and Chief Financial Officer
14
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-------------------------------
EXHIBIT INDEX
To
FORM 10-Q
FOR THE FISCAL QUARTER ENDED NOVEMBER 30, 1998
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
<PAGE>
NU HORIZONS ELECTRONICS CORP.
EXHIBIT 11
COMPUTATION OF EARNINGS PER COMMON SHARE
----------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS
ENDED
--------------------------------------- -------------------------------------------
NOVEMBER NOVEMBER NOVEMBER NOVEMBER
30, 1998 30, 1997 30, 1998 30, 1997
----------------- ----------------- ------------------- -------------------
<S> <C> <C> <C> <C>
BASIC EARNINGS:
- ---------------
Net Income $ 1,287,843 $ 1,305,385 $ 3,640,018 $ 3,879,187
================= ================= =================== ===================
Weighted average number of
common shares outstanding 8,753,076 8,753,076 8,753,076 8,753,076
================= ================= =================== ===================
BASIC EARNINGS PER COMMON SHARE $ .15 $ .15 $ .42 $ .44
=========== =========== =========== ===========
DILUTED EARNINGS:
- -----------------
Net Income $ 1,287,843 $ 1,305,385 $ 3,640,018 $ 3,879,187
Net (after tax) interest expense
related to convertible debt 85,000 85,000 255,000 255,000
----------------- ----------------- ------------------- -------------------
Net income as adjusted $ 1,372,843 $ 1,390,385 $ 3,895,018 $ 4,134,187
================= ================= =================== ===================
SHARES:
- -------
Weighted average number of
common shares outstanding 8,753,076 8,753,076 8,753,076 8,753,076
Stock options 1,734,450 1,341,950 1,734,450 1,341,950
Assuming conversion of
convertible debt 784,333 784,333 784,333 784,333
----------------- ----------------- ------------------- -------------------
Weighted average number of
common shares outstanding as
adjusted 11,271,859 10,879,359 11,271,859 10,879,359
================= ================= =================== ===================
DILUTED EARNINGS PER
COMMON SHARE
SHARE $ .12 $ .13 $ .35 $ .38
=========== =========== =========== ===========
</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, 1998
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> FEB-28-1999
<PERIOD-START> MAR-01-1998
<PERIOD-END> NOV-30-1998
<CASH> 6,847,897
<SECURITIES> 0
<RECEIVABLES> 39,552,755
<ALLOWANCES> 2,649,527
<INVENTORY> 47,010,694
<CURRENT-ASSETS> 94,674,512
<PP&E> 13,333,970
<DEPRECIATION> 6,007,272
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0
0
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</TABLE>
