Take a look at SECX. Book value now at $8.04 with a current stock price of $3 ps. Earnings report out today. Four straight quarters of positive earnings.
SED International Holdings, Inc. Reports Results of Operations For Third Quarter Fiscal 2000
ATLANTA, May 10 /PRNewswire/ -- SED International Holdings, Inc. (Nasdaq: SECX - news) reports results of operations for the third quarter of fiscal 2000.
Revenues were $141.0 million for the third quarter ended March 31, 2000, compared with revenues of $157.7 million for the comparable quarter last year. Operating income totaled $1.0 million for the March 2000 quarter, compared with a net loss of $39.9 million for the comparable quarter last year. Selling, general and administrative expenses, as a percent of sales, decreased to 5.9% for the third quarter of fiscal 2000 compared to 15.7% for the same period a year ago, excluding impairment charges. Net earnings for the third quarter of fiscal 2000 totaled $.7 million compared with net loss of $38.9 million in the comparable year-earlier period. Diluted net earnings per share for the third quarter of fiscal 2000 was $.11 compared with net loss per share of $4.51 for the same period last year.
Revenues for the nine months ended March 31, 2000 were $477.1 million, down 12.6% from $545.9 million in the comparable year earlier period. Net earnings for the nine months ended March 2000 were $1.6 million compared with net loss of $38.8 million in the same period last year. Diluted net earnings per share for the nine months ended March 31, 2000 were $.24 compared with net loss per share of $4.10 for the same period last year.
Gerald Diamond, Chairman and Chief Executive Officer, commented, ``The Company earned $738,000 while working through specific vendor product shortages, including wireless handsets and computer processors. We have laid the groundwork for increased profits with the new vendor relationships and product offerings that were previously announced during the quarter. We will continue to focus our efforts in increasing operating profits.''
The matters discussed herein contain certain forward-looking statements that represent the Company's expectations or beliefs, including, but not limited to, statements concerning future revenues and future business plans and non-historical Year 2000 information. When used by or on behalf of the Company, the words ``may,'' ``could,'' ``should,'' ``would,'' ``believe,'' ``anticipate,'' ``estimate,'' ``intend,'' ``plan'' and similar expressions are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, certain of which are beyond the Company's control. The Company cautions that various factors, including the factors described under the captions ``Risk Factors'' and ``Management's Discussion and Analysis of Financial Condition and Results of Operations'' contained in the Company's Registration Statement on Form S-3 (SEC File No. 333-35069) as well as general economic conditions and industry trends, foreign currency fluctuations, the level of acquisition opportunities available to the Company and the Company's ability to negotiate the terms of such acquisitions on a favorable basis, a dependence upon and/or loss of key vendors or customers, the transition to indirect distribution relationships for some products, the loss of strategic product shipping relationships, customer demand, product availability, competition (including pricing and availability), concentrations of credit risks, distribution efficiencies, capacity constraints and technological difficulties could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements of the Company made by or on behalf of the Company. The Company undertakes no obligation to update any forward-looking statement.
SED International, Inc. is an international distributor and value-added services provider of computer and wireless technology throughout the United States, Caribbean, and Latin America. The Company has relationships with more than 30,000 value-added resellers, system builders, e-commerce resellers, dealer-agents, and retailers. SED International serves its customers with more than 5,000 products, fulfillment services, finance options, and e-commerce solutions. The Company operates sales and distribution facilities in the United States, Argentina, Brazil, Colombia, and Puerto Rico. The Company's expertise in the computer and wireless industry positions SED International, Inc. to leverage the convergence of these technologies. More information about SED International, Inc. can be found at www.sedonline.com .
SED INTERNATIONAL HOLDINGS, INC.
Condensed Consolidated Statement of Earnings (Unaudited)
Three Months Nine Months
Ended March 31, Ended March 31,
2000 1999 2000 1999
Net Sales $140,984,000 $157,674,000 $477,080,000 $545,922,000
Costs and expenses:
Cost of sales,
including buying
and occupancy
expenses 131,671,000 159,258,000 446,425,000 525,061,000
Selling, general,
and administrative 8,343,000 24,792,000 28,063,000 46,697,000
Impairment charges 13,573,000 13,573,000
140,014,000 197,623,000 474,488,000 585,331,000
Operating income
(loss) 970,000 (39,949,000) 2,592,000 (39,409,000)
Interest expense, net 34,000 154,000 413,000 366,000
Earnings (loss) before
income taxes 936,000 (40,103,000) 2,179,000 (39,775,000)
Income taxes (benefit) 198,000 (1,244,000) 566,000 (985,000)
Net earnings (loss) $738,000 $(38,859,000) $1,613,000 $(38,790,000)
Net earnings (loss)
per common share:
Basic $.11 ($4.51) $.24 $(4.10)
Diluted .11 ($4.51) .24 (4.10)
Weighted average
shares outstanding
Basic 6,880,000 8,615,000 6,650,000 9,464,000
Diluted 6,900,000 8,615,000 6,657,000 9,464,000
SED INTERNATIONAL HOLDINGS, INC.
Condensed Consolidated Balance Sheets
March 31, June 30,
2000 1999
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $5,086,000 $3,266,000
Trade accounts receivable, net 50,725,000 58,085,000
Inventories 46,004,000 57,092,000
Refundable income taxes 2,929,000 3,801,000
Other current assets 2,876,000 2,729,000
TOTAL CURRENT ASSETS 107,620,000 124,973,000
PROPERTY AND EQUIPMENT, net 7,821,000 6,994,000
INTANGIBLES, net 10,889,000 9,123,000
$126,330,000 $141,090,000
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade accounts payable $65,245,000 72,375,000
Accrued and other
current liabilities 5,761,000 7,405,000
TOTAL CURRENT LIABILITIES 71,006,000 79,780,000
REVOLVING BANK DEBT 8,500,000
SHAREHOLDERS' EQUITY:
Common stock 112,000 112,000
Additional paid-in capital 71,582,000 71,712,000
Retained earnings 2,545,000 932,000
Cumulative translation adjustment (1,397,000) (984,000)
Treasury stock, at cost (16,541,000) (17,764,000)
Prepaid compensation-stock awards (977,000) (1,198,000)
TOTAL SHAREHOLDERS' EQUITY 55,324,000 52,810,000
$126,330,000 $141,090,000
SOURCE: SED International Holdings, Inc. |
