Bel Fuse Inc. (Nasdaq: BELFA and BELFB) today
announced preliminary financial results for the third quarter
of 2024.
Third Quarter 2024
Highlights
- Net sales of $123.6 million
compared to $158.7 million in Q3-23
- Gross profit margin of 36.1%,
up from 35.0% in Q3-23
- Net earnings of $8.1 million
versus $19.4 million in Q3-23
- Adjusted EBITDA of $20.6 million
(16.7% of sales) as compared to $29.9 million (18.8% of sales) in
Q3-23
- Repurchased 26,647 shares of Bel
stock at an aggregate cost of $1.9 million in Q3-24
“We were pleased that our third quarter results
landed above the midpoint of guidance for both sales and gross
margin,” said Daniel Bernstein, President and CEO. “Each of our
three product segments performed as expected, given the current
market, regulatory and seasonal factors outlined in last quarter's
disclosures and on the Q2 earnings call.
“During the third quarter, the team focused on a
variety of operational and other internal initiatives. With our
announcement of the signing our definitive purchase agreement in
September, we welcomed Enercon to the Bel family and are positioned
to introduce new customers, end markets and geographies to our
Power segment upon the closing expected later this quarter. In a
project scheduled to be completed during the first quarter of 2025,
our fuse manufacturing, located in China, will be consolidated into
other existing Bel facilities thus reducing our footprint further.
The fuse initiative is anticipated to achieve annual cost savings
of approximately $1.5 million once completed. We are also
pleased to announce the addition of two senior associates in
newly-created positions to Bel’s corporate team. Uma Pengali has
joined as Global Head of Sales and Marketing and Anubhav Gothi has
joined as Bel’s Global Head of Contracts. We believe Uma and
Anubhav will be instrumental contributors to Bel’s long-term
success,” concluded Mr. Bernstein.
Farouq Tuweiq, CFO, added, “We have started to
see positive trends in bookings during the months of September and
October across each of our product segments, which is a positive
indicator as we enter 2025. These green shoots are largely in our
networking and industrial markets, and in the distribution channel.
Looking to the fourth quarter of 2024, we expect GAAP net sales in
the range of $117 to $125 million with gross margins of
approximately 34 - 36%, based on information available as of today.
This guidance excludes any potential incremental contribution
related to the previously-announced acquisition of Enercon, which
is expected to close during the fourth quarter.
“Overall, we are encouraged by the sequential
improvement in market conditions that we are seeing and believe
this will bode well for 2025. We are excited to continue our
journey of growth and continuous improvement with our new team
members,” concluded Mr. Tuweiq.
Non-GAAP financial measures, such as Non-GAAP
net earnings, Non-GAAP EPS, EBITDA and Adjusted EBITDA, adjust
corresponding GAAP measures for provision for income taxes,
interest expense, and depreciation and amortization, and also
exclude, where applicable for the covered period presented in the
financial statements, certain unusual or special items identified
by management such as restructuring charges, gains/losses on sales
of businesses and properties, acquisition related costs,
and certain litigation costs. Non-GAAP adjusted net sales
exclude expedite fee revenue. Please refer to the financial
information included with this press release for reconciliations of
GAAP financial measures to Non-GAAP financial measures and our
explanation of why we present Non-GAAP financial measures.
Conference CallBel has
scheduled a conference call for 8:30 a.m. ET on Thursday,
October 24, 2024 to discuss these results. To participate
in the conference call, investors should dial 877-407-0784, or
201-689-8560 if dialing internationally. The presentation will
additionally be broadcast live over the Internet and will be
available at https://ir.belfuse.com/events-and-presentations. The
webcast will be available via replay for a period of at least 30
days at this same Internet address. For those unable to access
the live call, a telephone replay will be available at
844-512-2921, or 412-317-6671 if dialing internationally, using
access code 13749258 after 12:30 pm ET, also for 30 days.
About BelBel (www.belfuse.com)
designs, manufactures and markets a broad array of products that
power, protect and connect electronic circuits. These products
are primarily used in the networking, telecommunications,
computing, general industrial, high-speed data transmission,
military, commercial aerospace, transportation and eMobility
industries. Bel's portfolio of products also finds application
in the automotive, medical, broadcasting and consumer electronics
markets. Bel's product groups include Magnetic Solutions
(integrated connector modules, power transformers, power inductors
and discrete components), Power Solutions and Protection
(front-end, board-mount and industrial power products, module
products and circuit protection), and Connectivity Solutions
(expanded beam fiber optic, copper-based, RF and RJ connectors and
cable assemblies). The Company operates facilities around the
world.
Company Contact:Farouq Tuweiq Chief
Financial Officer ir@belf.com
Investor Contact:Three Part AdvisorsJean Marie
Young, Managing Director or Steven Hooser,
Partner631-418-4339jyoung@threepa.com; shooser@threepa.com
Cautionary Language Concerning
Forward-Looking StatementsThis press release contains
“forward-looking statements” within the meaning of the “safe
harbor” provisions of the Private Securities Litigation Reform Act
of 1995, including but not limited to, our guidance for the
fourth quarter of 2024, and our statements regarding our
expectations for future periods generally including anticipated
financial performance, projections and trends for the remainder of
the year and other future periods including 2025, and our
statements regarding future events, performance, plans, intentions,
beliefs, expectations and estimates, including statements regarding
matters such as trends and expectations as to our sales, gross
margin, products, product segments, customers, end markets,
geographies and bookings, statements regarding our views and
expectations about the impact of market trends and seasonal
factors, statements about the closing of the Enercon Technologies,
Ltd. (“Enercon”) acquisition including the anticipated timing
thereof, and statements about the anticipated benefits and impact
of the Enercon acquisition including in terms of introducing new
customers, end markets and geographies to our Power segment, as
well as any potential incremental contribution by Enercon
post-closing to Bel’s financial results, statements regarding
consolidation projects and initiatives, the expected timing of
implementation and completion thereof, and the anticipated
projections of cost savings to be realized thereby, statements
about future contributions of new employees and the role of
newly-created positions in the corporate team in contributing to
Bel’s long-term success, statements regarding our expectations and
beliefs regarding trends in the Company's business and industry and
the markets in which Bel operates, and about the broader economy
and macroeconomic environment generally, including statements about
trends in bookings and views about indicators of economic
conditions including as to particular sectors or markets,
improvement in market conditions, and statements about Bel’s growth
and improvement, and other statements regarding the Company's
positioning, its strategies, future progress, investments, plans,
targets, goals, and other focuses and initiatives, and the expected
timing and potential benefits thereof. These forward-looking
statements are made as of the date of this release and are based on
current expectations, estimates, forecasts and projections as well
as the beliefs and assumptions of management. Words such as
“expect,” “anticipate,” “should,” “believe,” “hope,” “target,”
“project,” “forecast,” “outlook,” “goals,” “estimate,” “potential,”
“predict,” “may,” “will,” “might,” “could,” “intend,” variations of
these terms or the negative of these terms and similar expressions
are intended to identify these forward-looking statements.
Forward-looking statements are subject to a number of risks and
uncertainties, many of which involve factors or circumstances that
are beyond Bel’s control. Bel’s actual results could differ
materially from those stated or implied in our forward-looking
statements (including without limitation any of Bel’s projections)
due to a number of factors, including but not limited to,
unanticipated difficulties, delays or expenditures relating to the
proposed Enercon acquisition, including, without limitation,
difficulties that result in the failure to realize the expected
benefits and synergies within the expected time period (if at all);
disruptions of Bel’s or Enercon’s current plans, operations and
relationships with customers, suppliers, distributors, business
partners and regulators caused by the announcement and pendency of
the proposed Enercon acquisition; potential difficulties in
employee retention due to the announcement and pendency of the
proposed Enercon acquisition; the possibility that the proposed
Enercon acquisition does not close, including, but not limited to,
failure to satisfy the closing conditions; the market concerns
facing our customers, and risks for the Company’s business in the
event of the loss of certain substantial customers; the continuing
viability of sectors that rely on our products; the effects of
business and economic conditions, and challenges impacting the
macroeconomic environment generally and/or our industry in
particular; the effects of rising input costs, and cost changes
generally, including the potential impact of inflationary
pressures; difficulties associated with integrating previously
acquired companies, and any difficulties that may be experienced in
integrating Enercon following the closing of the Enercon
acquisition; capacity and supply constraints or difficulties,
including supply chain constraints or other challenges; the impact
of public health crises (such as the governmental, social and
economic effects of COVID or other future epidemics or pandemics);
difficulties associated with the availability of labor, and the
risks of any labor unrest or labor shortages; risks associated with
our international operations, including our substantial
manufacturing operations in China, and following the acquisition of
Enercon, risks associated with operations in Israel, which may be
adversely affected by political or economic instability, major
hostilities or acts of terrorism in the region; risks associated
with restructuring programs or other strategic initiatives,
including any difficulties in implementation or realization of the
expected benefits or cost savings; product development,
commercialization or technological difficulties; the regulatory and
trade environment including the potential effects of trade
restrictions that may impact Bel, its customers and/or its
suppliers; risks associated with fluctuations in foreign currency
exchange rates and interest rates; uncertainties associated with
legal proceedings; the market's acceptance of the Company's new
products and competitive responses to those new products; the
impact of changes to U.S. and applicable foreign legal and
regulatory requirements, including tax laws, trade and tariff
policies; and the risks detailed in Bel’s most recent Annual Report
on Form 10-K for the fiscal year ended December 31, 2023 and in
subsequent reports filed by Bel with the Securities and Exchange
Commission, as well as other documents that may be filed by Bel
from time to time with the Securities and Exchange Commission. In
light of the risks and uncertainties impacting our business, there
can be no assurance that any forward-looking statement will in fact
prove to be correct. Past performance is not necessarily indicative
of future results. The forward-looking statements included in this
press release represent Bel’s views as of the date of this press
release. Bel anticipates that subsequent events and developments
will cause its views to change. Bel undertakes no intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
These forward-looking statements should not be relied upon as
representing Bel’s views as of any date subsequent to the date of
this press release.
Non-GAAP Financial MeasuresThe
Non-GAAP financial measures identified in this press release as
well as in the supplementary information to this press release
(Non-GAAP adjusted net sales, Non-GAAP net earnings, Non-GAAP EPS,
EBITDA and Adjusted EBITDA) are not measures of performance under
accounting principles generally accepted in the United States of
America ("GAAP"). These measures should not be considered a
substitute for, and the reader should also consider, income from
operations, net earnings, earnings per share and other measures of
performance as defined by GAAP as indicators of our performance or
profitability. Our non-GAAP measures may not be comparable to other
similarly-titled captions of other companies due to differences in
the method of calculation. We present results adjusted to
exclude the effects of certain unusual or special items and their
related tax impact that would otherwise be included under U.S.
GAAP, to aid in comparisons with other periods. We believe that
these non-GAAP measures of financial results provide useful
information to management and investors regarding certain financial
and business trends relating to our financial condition and results
of operations. We use these non-GAAP measures to compare the
Company’s performance to that of prior periods for trend analysis
and for budgeting and planning purposes. We also believe that the
use of these non-GAAP financial measures provides an additional
tool for investors to use in evaluating ongoing operating results
and trends and in comparing the Company’s financial measures with
other similarly situated companies in our industry, many of which
present similar non-GAAP financial measures to investors. We also
use non-GAAP measures in determining incentive compensation. For
additional information about our use of non-GAAP financial measures
in connection with our Incentive Compensation Program for 2023,
please see the Executive Compensation discussion appearing in our
Definitive Proxy Statement filed with the Securities and Exchange
Commission on April 1, 2024.
Website InformationWe routinely
post important information for investors on our
website, www.belfuse.com, in the "Investor Relations" section.
We use our website as a means of disclosing material, otherwise
non-public information and for complying with our disclosure
obligations under Regulation FD. Accordingly, investors should
monitor the Investor Relations section of our website, in addition
to following our press releases, Securities and Exchange Commission
(SEC) filings, public conference calls, presentations and webcasts.
The information contained on, or that may be accessed through, our
website is not incorporated by reference into, and is not a part
of, this document.
[Financial tables follow]
| |
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Bel Fuse Inc.Supplementary
Information(1)Condensed Consolidated Statements of
Operations(in thousands, except per share
amounts)(unaudited) |
| |
|
|
|
|
|
| |
Three Months Ended |
|
|
Nine Months Ended |
|
| |
September 30, |
|
|
September 30, |
|
| |
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net
sales |
$ |
123,638 |
|
|
$ |
158,682 |
|
|
$ |
384,933 |
|
|
$ |
499,803 |
|
| Cost of sales |
|
78,961 |
|
|
|
103,217 |
|
|
|
238,782 |
|
|
|
335,137 |
|
| Gross
profit |
|
44,677 |
|
|
|
55,465 |
|
|
|
146,151 |
|
|
|
164,666 |
|
| As a % of net sales |
|
36.1 |
% |
|
|
35.0 |
% |
|
|
38.0 |
% |
|
|
32.9 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Research and development
costs |
|
5,443 |
|
|
|
5,292 |
|
|
|
16,652 |
|
|
|
16,521 |
|
| Selling, general and
administrative expenses |
|
26,700 |
|
|
|
23,717 |
|
|
|
75,785 |
|
|
|
74,149 |
|
| As a % of net sales |
|
21.6 |
% |
|
|
14.9 |
% |
|
|
19.7 |
% |
|
|
14.8 |
% |
| Restructuring charges |
|
1,087 |
|
|
|
2,091 |
|
|
|
1,790 |
|
|
|
6,306 |
|
| Gain on sale of property |
|
- |
|
|
|
(147 |
) |
|
|
- |
|
|
|
(3,819 |
) |
| Income from
operations |
|
11,447 |
|
|
|
24,512 |
|
|
|
51,924 |
|
|
|
71,509 |
|
| As a % of net sales |
|
9.3 |
% |
|
|
15.4 |
% |
|
|
13.5 |
% |
|
|
14.3 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain on sale of Czech Republic
business |
|
- |
|
|
|
(135 |
) |
|
|
- |
|
|
|
980 |
|
| Interest expense |
|
(414 |
) |
|
|
(512 |
) |
|
|
(1,263 |
) |
|
|
(2,402 |
) |
| Interest income |
|
1,480 |
|
|
|
- |
|
|
|
3,741 |
|
|
|
- |
|
| Other income/expense, net |
|
(1,325 |
) |
|
|
(96 |
) |
|
|
21 |
|
|
|
(286 |
) |
| Earnings before income
taxes |
|
11,188 |
|
|
|
23,769 |
|
|
|
54,423 |
|
|
|
69,801 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Provision for income
taxes |
|
3,108 |
|
|
|
4,321 |
|
|
|
11,663 |
|
|
|
8,006 |
|
| Effective tax rate |
|
27.8 |
% |
|
|
18.2 |
% |
|
|
21.4 |
% |
|
|
11.5 |
% |
| Net
earnings |
$ |
8,080 |
|
|
$ |
19,448 |
|
|
$ |
42,760 |
|
|
$ |
61,795 |
|
| As a % of net sales |
|
6.5 |
% |
|
|
12.3 |
% |
|
|
11.1 |
% |
|
|
12.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average
number of shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A common shares - basic
and diluted |
|
2,116 |
|
|
|
2,142 |
|
|
|
2,126 |
|
|
|
2,142 |
|
| Class B common shares - basic
and diluted |
|
10,434 |
|
|
|
10,636 |
|
|
|
10,512 |
|
|
|
10,636 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings per
common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A common shares - basic
and diluted |
$ |
0.61 |
|
|
$ |
1.46 |
|
|
$ |
3.23 |
|
|
$ |
4.63 |
|
| Class B common shares - basic
and diluted |
$ |
0.65 |
|
|
$ |
1.54 |
|
|
$ |
3.41 |
|
|
$ |
4.88 |
|
| |
|
(1) The supplementary information included in this press release
for 2024 is preliminary and subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q with the
Securities and Exchange Commission. |
| |
|
Bel Fuse Inc.Supplementary
Information(1)Condensed Consolidated Balance
Sheets(in thousands, unaudited) |
| |
| |
September 30, 2024 |
|
|
December 31, 2023 |
|
|
Assets |
|
|
|
|
|
|
|
| Current
assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
134,266 |
|
|
$ |
89,371 |
|
|
Held to maturity U.S. Treasury securities |
|
29,541 |
|
|
|
37,548 |
|
|
Accounts receivable, net |
|
75,998 |
|
|
|
84,129 |
|
|
Inventories |
|
124,885 |
|
|
|
136,540 |
|
|
Other current assets |
|
22,959 |
|
|
|
33,890 |
|
| Total current
assets |
|
387,649 |
|
|
|
381,478 |
|
|
Property, plant and equipment, net |
|
36,735 |
|
|
|
36,533 |
|
|
Right-of-use assets |
|
22,901 |
|
|
|
20,481 |
|
|
Related-party note receivable |
|
3,070 |
|
|
|
2,152 |
|
|
Equity method investment |
|
10,014 |
|
|
|
10,282 |
|
|
Goodwill and other intangible assets, net |
|
72,772 |
|
|
|
76,033 |
|
|
Other assets |
|
51,276 |
|
|
|
44,672 |
|
| Total
assets |
$ |
584,417 |
|
|
$ |
571,631 |
|
| |
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
| Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
$ |
37,139 |
|
|
$ |
40,441 |
|
|
Operating lease liability, current |
|
6,451 |
|
|
|
6,350 |
|
|
Other current liabilities |
|
53,297 |
|
|
|
63,818 |
|
| Total current
liabilities |
|
96,887 |
|
|
|
110,609 |
|
|
Long-term debt |
|
60,000 |
|
|
|
60,000 |
|
|
Operating lease liability, long-term |
|
16,808 |
|
|
|
14,212 |
|
|
Other liabilities |
|
43,360 |
|
|
|
46,252 |
|
| Total
liabilities |
|
217,055 |
|
|
|
231,073 |
|
|
Stockholders' equity |
|
367,362 |
|
|
|
340,558 |
|
| Total liabilities and
stockholders' equity |
$ |
584,417 |
|
|
$ |
571,631 |
|
| |
|
(1) The supplementary information included in this press release
for 2024 is preliminary and subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q with the
Securities and Exchange Commission. |
| |
|
Bel Fuse Inc.Supplementary
Information(1)Condensed Consolidated Statements of Cash
Flows(in thousands, unaudited) |
| |
|
|
| |
Nine Months Ended |
|
| |
September 30, |
|
| |
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
| Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
Net earnings |
$ |
42,760 |
|
|
$ |
61,795 |
|
| Adjustments to reconcile net
earnings to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
10,759 |
|
|
|
9,962 |
|
|
Stock-based compensation |
|
2,782 |
|
|
|
2,712 |
|
|
Amortization of deferred financing costs |
|
27 |
|
|
|
33 |
|
|
Deferred income taxes |
|
(5,366 |
) |
|
|
(4,894 |
) |
|
Net unrealized losses on foreign currency revaluation |
|
1,275 |
|
|
|
130 |
|
|
Gain on sale of property |
|
- |
|
|
|
(3,819 |
) |
|
Gain on sale of Czech Republic business |
|
- |
|
|
|
(980 |
) |
|
Other, net |
|
628 |
|
|
|
(495 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
8,366 |
|
|
|
11,931 |
|
|
Unbilled receivables |
|
7,482 |
|
|
|
1,590 |
|
|
Inventories |
|
12,266 |
|
|
|
29,313 |
|
|
Accounts payable |
|
(3,302 |
) |
|
|
(18,674 |
) |
|
Accrued expenses |
|
(11,849 |
) |
|
|
4,536 |
|
|
Accrued restructuring costs |
|
(590 |
) |
|
|
(148 |
) |
|
Income taxes payable |
|
4,809 |
|
|
|
2,008 |
|
|
Other operating assets/liabilities, net |
|
(4,327 |
) |
|
|
(13,575 |
) |
|
Net cash provided by operating activities |
|
65,720 |
|
|
|
81,425 |
|
| |
|
|
|
|
|
|
|
| Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
(7,906 |
) |
|
|
(9,659 |
) |
|
Purchases of held to maturity U.S. Treasury securities |
|
(131,309 |
) |
|
|
- |
|
|
Proceeds from held to maturity securities |
|
139,316 |
|
|
|
- |
|
|
Payment for equity method investment |
|
- |
|
|
|
(9,975 |
) |
|
Investment in related party notes receivable |
|
(918 |
) |
|
|
(1,905 |
) |
|
Proceeds from sale of property, plant and equipment |
|
236 |
|
|
|
5,403 |
|
|
Proceeds from sale of business |
|
- |
|
|
|
5,063 |
|
|
Net cash used in investing activities |
|
(581 |
) |
|
|
(11,073 |
) |
| |
|
|
|
|
|
|
|
| Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Dividends paid to common stockholders |
|
(2,487 |
) |
|
|
(2,490 |
) |
|
Deferred financing costs |
|
(330 |
) |
|
|
- |
|
|
Repayments under revolving credit line |
|
- |
|
|
|
(40,000 |
) |
|
Borrowings under revolving credit line |
|
- |
|
|
|
5,000 |
|
|
Purchases of common stock |
|
(16,053 |
) |
|
|
- |
|
|
Net cash used in financing activities |
|
(18,870 |
) |
|
|
(37,490 |
) |
| |
|
|
|
|
|
|
|
| Effect of exchange rate
changes on cash and cash equivalents |
|
(1,374 |
) |
|
|
(2,903 |
) |
| |
|
|
|
|
|
|
|
| Net increase in cash and cash
equivalents |
|
44,895 |
|
|
|
29,959 |
|
| Cash and cash equivalents -
beginning of period |
|
89,371 |
|
|
|
70,266 |
|
| Cash and cash
equivalents - end of period |
$ |
134,266 |
|
|
$ |
100,225 |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Supplementary
information: |
|
|
|
|
|
|
|
| Cash paid during the period
for: |
|
|
|
|
|
|
|
|
Income taxes, net of refunds received |
$ |
15,556 |
|
|
$ |
18,148 |
|
|
Interest payments |
$ |
3,010 |
|
|
$ |
3,738 |
|
| ROU assets obtained in
exchange for lease obligations |
$ |
4,711 |
|
|
$ |
5,887 |
|
| |
|
(1) The supplementary information included in this press release
for 2024 is preliminary and subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q with the
Securities and Exchange Commission. |
| |
|
Bel Fuse Inc.Supplementary
Information(1)Product Group
Highlights(dollars in thousands,
unaudited) |
| |
| |
Sales |
|
|
Gross Margin |
|
| |
Q3-24 |
|
|
Q3-23 |
|
|
% Change |
|
|
Q3-24 |
|
|
Q3-23 |
|
|
Basis Point Change |
|
|
Power Solutions and Protection |
$ |
48,680 |
|
|
$ |
74,862 |
|
|
|
-35.0 |
% |
|
|
39.4 |
% |
|
|
41.7 |
% |
|
|
(230 |
) |
| Connectivity Solutions |
|
55,715 |
|
|
|
51,771 |
|
|
|
7.6 |
% |
|
|
36.6 |
% |
|
|
35.8 |
% |
|
|
80 |
|
| Magnetic Solutions |
|
19,243 |
|
|
|
32,049 |
|
|
|
-40.0 |
% |
|
|
27.3 |
% |
|
|
22.0 |
% |
|
|
530 |
|
|
Total |
$ |
123,638 |
|
|
$ |
158,682 |
|
|
|
-22.1 |
% |
|
|
36.1 |
% |
|
|
35.0 |
% |
|
|
110 |
|
| |
Sales |
|
|
Gross Margin |
|
| |
YTD September 2024 |
|
|
YTD September 2023 |
|
|
% Change |
|
|
YTD September 2024 |
|
|
YTD September 2023 |
|
|
Basis Point Change |
|
|
Power Solutions and Protection |
$ |
167,478 |
|
|
|
245,134 |
|
|
|
-31.7 |
% |
|
|
43.2 |
% |
|
|
37.5 |
% |
|
|
570 |
|
| Connectivity Solutions |
|
167,822 |
|
|
|
160,010 |
|
|
|
4.9 |
% |
|
|
37.3 |
% |
|
|
35.8 |
% |
|
|
150 |
|
| Magnetic Solutions |
|
49,633 |
|
|
|
94,659 |
|
|
|
-47.6 |
% |
|
|
23.9 |
% |
|
|
23.0 |
% |
|
|
90 |
|
|
Total |
$ |
384,933 |
|
|
$ |
499,803 |
|
|
|
-23.0 |
% |
|
|
38.0 |
% |
|
|
32.9 |
% |
|
|
510 |
|
| |
|
(1) The supplementary information included in this press release
for 2024 is preliminary and subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q with the
Securities and Exchange Commission. |
| |
|
Bel Fuse Inc.Supplementary
Information(1)Reconciliation of GAAP Net Sales to Non-GAAP
Adjusted Net Sales(2)Reconciliation of GAAP Net Earnings to
EBITDA and Adjusted EBITDA(2)(in thousands,
unaudited) |
| |
|
|
|
|
|
| |
Three Months Ended |
|
|
Nine Months Ended |
|
| |
September 30, |
|
|
September 30, |
|
| |
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP net
sales |
$ |
123,638 |
|
|
$ |
158,682 |
|
|
$ |
384,933 |
|
|
$ |
499,803 |
|
|
Expedite fee revenue |
|
- |
|
|
|
1,008 |
|
|
|
57 |
|
|
|
14,425 |
|
| Non-GAAP adjusted net
sales |
$ |
123,638 |
|
|
$ |
157,674 |
|
|
$ |
384,876 |
|
|
$ |
485,378 |
|
| |
Three Months Ended |
|
|
Nine Months Ended |
|
| |
September 30, |
|
|
September 30, |
|
| |
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP Net
earnings |
$ |
8,080 |
|
|
$ |
19,448 |
|
|
$ |
42,760 |
|
|
$ |
61,795 |
|
|
Interest expense |
|
414 |
|
|
|
512 |
|
|
|
1,263 |
|
|
|
2,402 |
|
|
Provision for income taxes |
|
3,108 |
|
|
|
4,321 |
|
|
|
11,663 |
|
|
|
8,006 |
|
|
Depreciation and amortization |
|
3,636 |
|
|
|
3,391 |
|
|
|
10,759 |
|
|
|
9,962 |
|
| EBITDA |
$ |
15,238 |
|
|
$ |
27,672 |
|
|
$ |
66,445 |
|
|
$ |
82,165 |
|
| % of net sales |
|
12.3 |
% |
|
|
17.4 |
% |
|
|
17.3 |
% |
|
|
16.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unusual or special
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges |
|
1,087 |
|
|
|
2,091 |
|
|
|
1,790 |
|
|
|
6,306 |
|
|
MPS litigation costs |
|
- |
|
|
|
132 |
|
|
|
- |
|
|
|
2,903 |
|
|
Gain on sale of Czech Republic business |
|
- |
|
|
|
135 |
|
|
|
- |
|
|
|
(980 |
) |
|
Gain on sale of properties |
|
- |
|
|
|
(147 |
) |
|
|
- |
|
|
|
(3,819 |
) |
|
Acquisition related costs |
|
4,292 |
|
|
|
- |
|
|
|
4,292 |
|
|
|
- |
|
| Adjusted
EBITDA |
$ |
20,617 |
|
|
$ |
29,883 |
|
|
$ |
72,527 |
|
|
$ |
86,575 |
|
| % of net sales |
|
16.7 |
% |
|
|
18.8 |
% |
|
|
18.8 |
% |
|
|
17.3 |
% |
| |
|
(1) The supplementary information included in this press release
for 2024 is preliminary and subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q with the
Securities and Exchange Commission. |
|
(2) In this press release and supplemental information, we have
included Non-GAAP financial measures, including Non-GAAP
adjusted net sales, Non-GAAP net earnings, Non-GAAP EPS,
EBITDA and Adjusted EBITDA. We present results adjusted to exclude
the effects of certain specified items and their related tax impact
that would otherwise be included under GAAP, to aid in comparisons
with other periods. We believe that these non-GAAP measures of
financial results provide useful information to management and
investors regarding certain financial and business trends relating
to our financial condition and results of operations. We use these
non-GAAP measures to compare the Company’s performance to that of
prior periods for trend analysis and for budgeting and planning
purposes. We also believe that the use of these non-GAAP financial
measures provides an additional tool for investors to use in
evaluating ongoing operating results and trends and in comparing
the Company’s financial measures with other similarly situated
companies in our industry, many of which present similar non-GAAP
financial measures to investors. We also use non-GAAP measures in
determining incentive compensation. See the section above captioned
“Non-GAAP Financial Measures” for additional information. |
| |
|
Bel Fuse Inc.Supplementary
Information(1)Reconciliation of GAAP Measures to
Non-GAAP Measures(2)(in thousands, except per
share data) (unaudited) |
| |
|
The following tables detail the impact that certain unusual or
special items had on the Company's net earnings per common Class A
and Class B basic and diluted shares ("EPS") and the line items in
which these items were included on the consolidated statements
of operations. |
| |
| |
|
Three Months Ended September 30, 2024 |
|
|
Three Months Ended September 30, 2023 |
|
|
Reconciling Items |
|
Earnings before taxes |
|
|
Provision for income taxes |
|
|
Net earnings |
|
|
Class A
EPS(3) |
|
|
Class B
EPS(3) |
|
|
Earnings before taxes |
|
|
Provision for income taxes |
|
|
Net earnings |
|
|
Class A
EPS(3) |
|
|
Class B
EPS(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP
measures |
|
$ |
11,188 |
|
|
$ |
3,108 |
|
|
$ |
8,080 |
|
|
$ |
0.61 |
|
|
$ |
0.65 |
|
|
$ |
23,769 |
|
|
$ |
4,321 |
|
|
$ |
19,448 |
|
|
$ |
1.46 |
|
|
$ |
1.54 |
|
| Restructuring charges |
|
|
1,087 |
|
|
|
154 |
|
|
|
933 |
|
|
|
0.07 |
|
|
|
0.07 |
|
|
|
2,091 |
|
|
|
407 |
|
|
|
1,684 |
|
|
|
0.13 |
|
|
|
0.13 |
|
| MPS litigation costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
132 |
|
|
|
30 |
|
|
|
102 |
|
|
|
0.01 |
|
|
|
0.01 |
|
| Gain on sale of Czech Republic
business |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
135 |
|
|
|
7 |
|
|
|
128 |
|
|
|
0.01 |
|
|
|
0.01 |
|
| Gain on sale of
properties |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(147 |
) |
|
|
(29 |
) |
|
|
(118 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
| Acquisition related costs |
|
|
4,292 |
|
|
|
987 |
|
|
|
3,305 |
|
|
|
0.25 |
|
|
|
0.27 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Non-GAAP
measures |
|
$ |
16,567 |
|
|
$ |
4,249 |
|
|
$ |
12,318 |
|
|
$ |
0.94 |
|
|
$ |
0.99 |
|
|
$ |
25,980 |
|
|
$ |
4,736 |
|
|
$ |
21,244 |
|
|
$ |
1.59 |
|
|
$ |
1.68 |
|
| |
|
Nine Months Ended September 30, 2024 |
|
|
Nine Months Ended September 30, 2023 |
|
| Reconciling
Items |
|
Earnings before taxes |
|
|
Provision for income taxes |
|
|
Net earnings |
|
|
Class A EPS(3) |
|
|
Class B EPS(3) |
|
|
Earnings before taxes |
|
|
Provision for income taxes |
|
|
Net earnings |
|
|
Class A EPS(3) |
|
|
Class B EPS(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP
measures |
|
$ |
54,423 |
|
|
$ |
11,663 |
|
|
$ |
42,760 |
|
|
$ |
3.23 |
|
|
$ |
3.41 |
|
|
$ |
69,801 |
|
|
$ |
8,006 |
|
|
$ |
61,795 |
|
|
$ |
4.63 |
|
|
$ |
4.88 |
|
| Restructuring charges |
|
|
1,790 |
|
|
|
317 |
|
|
|
1,473 |
|
|
|
0.11 |
|
|
|
0.12 |
|
|
|
6,306 |
|
|
|
1,007 |
|
|
|
5,299 |
|
|
|
0.40 |
|
|
|
0.42 |
|
| MPS litigation costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,903 |
|
|
|
667 |
|
|
|
2,236 |
|
|
|
0.17 |
|
|
|
0.18 |
|
| Gain on sale of Czech Republic
business |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(980 |
) |
|
|
(49 |
) |
|
|
(931 |
) |
|
|
(0.07 |
) |
|
|
(0.07 |
) |
| Gain on sale of
properties |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,819 |
) |
|
|
(763 |
) |
|
|
(3,056 |
) |
|
|
(0.23 |
) |
|
|
(0.24 |
) |
| Acquisition related costs |
|
|
4,292 |
|
|
|
987 |
|
|
|
3,305 |
|
|
|
0.25 |
|
|
|
0.26 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Non-GAAP
measures |
|
$ |
60,505 |
|
|
$ |
12,967 |
|
|
$ |
47,538 |
|
|
$ |
3.59 |
|
|
$ |
3.80 |
|
|
$ |
74,211 |
|
|
$ |
8,868 |
|
|
$ |
65,343 |
|
|
$ |
4.89 |
|
|
$ |
5.16 |
|
| |
|
(1) The supplementary information included in this press release
for 2024 is preliminary and subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q with the
Securities and Exchange Commission. |
|
(2) In this press release and supplemental information, we have
included Non-GAAP financial measures, including Non-GAAP adjusted
net sales, Non-GAAP net earnings, Non-GAAP EPS, EBITDA and Adjusted
EBITDA. We present results adjusted to exclude the effects of
certain specified items and their related tax impact that would
otherwise be included under GAAP, to aid in comparisons with other
periods. We believe that these non-GAAP measures of financial
results provide useful information to management and investors
regarding certain financial and business trends relating to our
financial condition and results of operations. We use these
non-GAAP measures to compare the Company’s performance to that of
prior periods for trend analysis and for budgeting and planning
purposes. We also believe that the use of these non-GAAP financial
measures provides an additional tool for investors to use in
evaluating ongoing operating results and trends and in comparing
the Company’s financial measures with other similarly situated
companies in our industry, many of which present similar non-GAAP
financial measures to investors. We also use non-GAAP measures in
determining incentive compensation. See the section above captioned
“Non-GAAP Financial Measures” for additional information. |
|
(3) Individual amounts of earnings per share may not agree to the
total due to rounding. |
| |
Bel Fuse (NASDAQ:BELFB)
Historical Stock Chart
From Oct 2024 to Nov 2024
Bel Fuse (NASDAQ:BELFB)
Historical Stock Chart
From Nov 2023 to Nov 2024
