0000889331falseLITTELFUSE INC /DE00008893312023-10-312023-10-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20579
 
FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Date of Report: October 31, 2023
(Date of earliest event reported)
 
LITTELFUSE, INC.
(Exact name of registrant as specified in its charter)
Delaware0-2038836-3795742
(State of other jurisdiction
of incorporation)		(Commission
File Number)		(IRS Employer
Identification No.)
 
8755 W. Higgins Road, Suite 500, Chicago, IL 60631
(Address of principal executive offices) (Zip Code)
 
Registrant’s telephone number, including area code: (773) 628-1000
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of exchange on which registered
Common Stock, par value $0.01 per shareLFUSNASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐








Item 2.02Results of Operations and Financial Condition
 
The information contained within Item 2.02 of this Form 8-K and the Exhibits attached hereto shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
 
On October 31, 2023, Littelfuse, Inc. (the “Company”) issued a press release announcing the results of its operations for the quarter ended September 30, 2023. A copy of the press release is attached as Exhibit 99.1 to this Form 8-K and incorporated by reference to this Item 2.02 as if fully set forth herein. A copy of the press release will also be available on the Company’s website.

Item 7.01Regulation FD Disclosure

To supplement the information in the attached press release, the Company has also prepared a presentation, which will be available on the Company’s website at https://investor.littelfuse.com/events-and-presentations and is attached hereto as Exhibit 99.2 to this Current Report on Form 8-K.

The information contained in the press release and investor presentation attached to this Form 8-K includes forward-looking statements that are intended to be covered by the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to comments with respect to the objectives and strategies, financial condition, results of operations and business of the Company. These forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that predictions and other forward-looking statements will not be achieved. The Company cautions you not to place undue reliance on these forward-looking statements as a number of important factors could cause actual future results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements.
 
A copy of the press release is also posted on the Company's website.

Item 9.01Financial Statements and Exhibits.
(d)Exhibits
The following exhibit is furnished with this Form 8-K:
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)


 
 






Signature
 
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.
 
 
 Littelfuse, Inc.
  
  
Date: October 31, 2023
By: /s/ Meenal A. Sethna
 Meenal A. Sethna
Executive Vice President and Chief Financial Officer



Exhibit 99.1
lfuslogo2a.jpg
lfuselogo1a.jpg
FOR IMMEDIATE RELEASE
David Kelley
224-727-2535
dkelley@littelfuse.com
LITTELFUSE REPORTS THIRD QUARTER RESULTS FOR 2023
Strong Execution Drives Performance Above Guidance

CHICAGO, October 31, 2023 - Littelfuse, Inc. (NASDAQ: LFUS), a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world, today reported financial results for the third quarter ended September 30, 2023:
•Net sales of $607.1 million were down 8% versus the prior year period, and down 11% organically
•GAAP diluted EPS was $2.30; adjusted diluted EPS was $2.97
•Cash flow from operations was $161.5 million and free cash flow was $139.8 million

“In the third quarter, sales and earnings exceeded our expectations, despite pockets of end market softness and ongoing inventory destocking” said Dave Heinzmann, Littelfuse President and Chief Executive Officer. “Our year-to-date performance underscores the resilience of our business model, strong cash generation, and consistent execution. Looking ahead, while dynamic macro conditions likely persist, our improved cost structure, healthy balance sheet, and ability to optimize cash flow should position us well into 2024. Our experienced team will continue to leverage our competitive advantages across our evolving and diversified end markets.”

Fourth Quarter of 2023*

Based on current market conditions, for the fourth quarter the company expects,
•Net sales in the range of $520 to $550 million, adjusted diluted EPS in the range of $1.90 to $2.10 and an adjusted effective tax rate of approximately 18%

*Littelfuse provides guidance on a non-GAAP (adjusted) basis. GAAP items excluded from guidance may include the after-tax impact of items including acquisition and integration costs, restructuring, impairment and other charges, certain purchase accounting adjustments, non-operating foreign exchange adjustments and significant and unusual items. These items are uncertain, depend on various factors, and could be material to results computed in accordance with GAAP. Littelfuse is not able to forecast the excluded items in order to provide the most directly comparable GAAP financial measure without unreasonable efforts.






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Dividend

•The company will pay a cash dividend on its common stock of $0.65 per share on December 7, 2023, to shareholders of record as of November 23, 2023.

Conference Call and Webcast Information
Littelfuse will host a conference call on Wednesday, November 1, 2023, at 9:00 a.m. Central Time to discuss the results. The call will be broadcast and available for replay at Littelfuse.com. A slide presentation is available in the Investor Relations section of the company’s website at Littelfuse.com.

About Littelfuse
Littelfuse, Inc. (NASDAQ: LFUS) is a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world. Across more than 20 countries, and with approximately 17,000 global associates, we partner with customers to design and deliver innovative, reliable solutions. Serving over 100,000 end customers, our products are found in a variety of industrial, transportation and electronics end markets – everywhere, every day. Learn more at Littelfuse.com.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995
The statements in this press release that are not historical facts are intended to constitute "forward-looking statements" entitled to the safe-harbor provisions of the Private Securities Litigation Reform Act. Such statements are based on Littelfuse, Inc.’s (“Littelfuse” or the “Company”) current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties, include, but are not limited to, risks and uncertainties relating to general economic conditions; product demand and market acceptance; the impact of competitive products and pricing; product quality problems or product recalls; capacity and supply difficulties or constraints; coal mining exposures reserves; cybersecurity matters; failure of an indemnification for environmental liability; exchange rate fluctuations; commodity and other raw material price fluctuations; the effect of Littelfuse accounting policies; labor disputes; restructuring costs in excess of expectations; pension plan asset returns less than assumed; integration of acquisitions; uncertainties related to political or regulatory changes; and other risks which may be detailed in the company's Securities and Exchange Commission filings. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated or implied in the forward-looking statements. This release should be read in conjunction with information provided in the financial statements appearing in the company's Annual Report on Form 10-K for the year ended December 31, 2022. Further discussion of the risk factors of the company can be found under the caption "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2022, and in other filings and submissions with the SEC, each of which are available free of charge on the company’s investor relations website at investor.littelfuse.com and on the SEC’s website at www.sec.gov. These forward-looking statements are made as of the date hereof. The company does not undertake any obligation to update, amend or clarify these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the availability of new information.




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Non-GAAP Financial Measures
The information included in this press release includes the non-GAAP financial measures of organic net sales (decline) growth, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, adjusted income taxes, adjusted effective tax rate, free cash flow, net debt, consolidated EBITDA, and consolidated net leverage ratio (as defined in the credit agreement). Many of these non-GAAP financial measures exclude the effect of certain expenses and income not related directly to the underlying performance of our fundamental business operations.

A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is set forth in the attached schedules.

The company believes that organic net sales (decline) growth, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, adjusted income taxes, and adjusted effective tax rate provide useful information to investors regarding its operational performance because they enhance an investor’s overall understanding of our core financial performance and facilitate comparisons to historical results of operations, by excluding items that are not related directly to the underlying performance of our fundamental business operations or were not part of our business operations during a comparable period. The company believes that free cash flow is a useful measure of its ability to generate cash. The company believes that net debt, consolidated EBITDA, and consolidated net leverage ratio are useful measures of its credit position. The company believes that all of these non-GAAP financial measures are commonly used by financial analysts and others in the industries in which we operate, and thus further provide useful information to investors. Management additionally uses these measures when assessing the performance of the business and for business planning purposes. Note that our definitions of these non-GAAP financial measures may differ from those terms as defined or used by other companies.


LFUS-F
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Littelfuse Inc.
8755 West Higgins Road, Suite 500
Chicago, Illinois 60631
p: (773) 628-1000
www.littelfuse.com



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LITTELFUSE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)September 30,
2023		December 31,
2022
ASSETS
Current assets:
Cash and cash equivalents$560,056 $562,588 
Short-term investments229 84 
Trade receivables, less allowances of $88,440 and $83,562 at September 30, 2023 and December 31, 2022, respectively327,500 306,578 
Inventories483,075 547,690 
Prepaid income taxes and income taxes receivable3,776 7,215 
Prepaid expenses and other current assets83,684 87,641 
Total current assets1,458,320 1,511,796 
Net property, plant, and equipment478,906 481,110 
Intangible assets, net of amortization612,366 593,970 
Goodwill1,284,343 1,186,922 
Investments23,371 24,121 
Deferred income taxes13,598 14,367 
Right of use lease assets, net51,755 57,382 
Other long-term assets80,267 34,066 
Total assets$4,002,926 $3,903,734 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$166,725 $208,571 
Accrued liabilities143,540 187,057 
Accrued income taxes35,762 41,793 
Current portion of long-term debt135,619 134,874 
Total current liabilities481,646 572,295 
Long-term debt, less current portion857,006 866,623 
Deferred income taxes106,656 100,230 
Accrued post-retirement benefits29,445 28,037 
Non-current operating lease liabilities39,818 45,661 
Other long-term liabilities83,496 79,510 
Total equity2,404,859 2,211,378 
Total liabilities and equity$4,002,926 $3,903,734 


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LITTELFUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(Unaudited)
 Three Months EndedNine Months Ended
(in thousands, except per share data)September 30,
2023		October 1,
2022		September 30,
2023		October 1,
2022
Net sales$607,071 $658,880 $1,828,850 $1,900,646 
Cost of sales380,200 402,059 1,122,190 1,122,258 
Gross profit226,871 256,821 706,660 778,388 
Selling, general, and administrative expenses87,204 90,219 270,057 258,820 
Research and development expenses25,484 25,752 77,270 68,796 
Amortization of intangibles16,022 15,567 49,773 39,883 
Restructuring, impairment, and other charges4,516 3,413 13,221 4,265 
Total operating expenses133,226 134,951 410,321 371,764 
Operating income93,645 121,870 296,339 406,624 
Interest expense10,101 8,399 29,803 17,069 
Foreign exchange loss11,776 18,191 8,697 40,051 
Other (income) expense, net(3,527)(698)(11,810)9,789 
Income before income taxes75,295 95,978 269,649 339,715 
Income taxes17,507 20,510 53,045 59,713 
Net income$57,788 $75,468 $216,604 $280,002 
Earnings per share:  
Basic$2.32 $3.05 $8.72 $11.32 
Diluted$2.30 $3.02 $8.63 $11.21 
Weighted-average shares and equivalent shares outstanding:
Basic24,893 24,755 24,838 24,726 
Diluted25,143 24,988 25,100 24,986 
Comprehensive income$55,654 $47,280 $212,842 $218,262 



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LITTELFUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 Nine Months Ended
(in thousands)September 30, 2023October 1, 2022
OPERATING ACTIVITIES  
Net income$216,604 $280,002 
Adjustments to reconcile net income to net cash provided by operating activities:137,988 183,942 
Changes in operating assets and liabilities:
Trade receivables(21,752)(56,431)
Inventories66,456 (83,803)
Accounts payable(38,475)(3,838)
Accrued liabilities and income taxes(61,359)(4,399)
Prepaid expenses and other assets13,678 (2,034)
Net cash provided by operating activities313,140 313,439 
INVESTING ACTIVITIES  
Acquisitions of businesses, net of cash acquired(198,810)(532,772)
Purchases of property, plant, and equipment(63,166)(77,773)
Net proceeds from sale of property, plant and equipment, and other597 565 
Net cash used in investing activities(261,379)(609,980)
FINANCING ACTIVITIES  
Net payments of credit facility(5,625)373,125 
Cash dividends paid(45,973)(41,055)
All other cash provided by (used in) financing activities4,454 (10,147)
Net cash (used in) provided by financing activities(47,144)321,923 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(7,965)(31,963)
Decrease in cash, cash equivalents, and restricted cash(3,348)(6,581)
Cash, cash equivalents, and restricted cash at beginning of period564,939 482,836 
Cash, cash equivalents, and restricted cash at end of period$561,591 $476,255 


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LITTELFUSE, INC.
NET SALES AND OPERATING INCOME BY SEGMENT
(Unaudited)
 Third QuarterYear-to-Date
(in thousands)20232022%
Growth / (Decline)		20232022%
Growth /(Decline)
Net sales
Electronics$343,933 $397,629 (13.5)%$1,052,673 $1,121,626 (6.1)%
Transportation177,019 181,735 (2.6)%515,708 548,266 (5.9)%
Industrial86,119 79,516 8.3 %260,469 230,754 12.9 %
Total net sales$607,071 $658,880 (7.9)%$1,828,850 $1,900,646 (3.8)%
Operating income
Electronics$77,022 $113,140 (31.9)%$247,028 $339,675 (27.3)%
Transportation9,694 12,987 (25.4)%26,015 57,604 (54.8)%
Industrial13,201 12,178 8.4 %45,450 39,968 13.7 %
Other(a)(6,272)(16,435)N.M.(22,154)(30,623)N.M.
Total operating income$93,645 $121,870 (23.2)%$296,339 $406,624 (27.1)%
Operating Margin15.4 %18.5 %16.2 %21.4 %
Interest expense10,101 8,399 29,803 17,069 
Foreign exchange loss11,776 18,191 8,697 40,051 
Other (income) expense, net(3,527)(698)(11,810)9,789 
Income before income taxes$75,295 $95,978 (21.5)%$269,649 $339,715 (20.6)%

(a) "other" typically includes non-GAAP adjustments such as acquisition-related and integration costs, purchase accounting inventory adjustments and restructuring and impairment charges. (See Supplemental Financial Information for details.)

N.M. - Not meaningful
 Third QuarterYear-to-Date
(in thousands)20232022%
(Decline)		20232022%
Growth /(Decline)
Operating Margin
Electronics22.4 %28.5 %(6.1)%23.5 %30.3 %(6.8)%
Transportation5.5 %7.1 %(1.6)%5.0 %10.5 %(5.5)%
Industrial15.3 %15.3 %— %17.4 %17.3 %0.1 %


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LITTELFUSE, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(In millions of USD except per share amounts - unaudited)
Non-GAAP EPS reconciliation
Q3-23Q3-22YTD-23YTD-22
GAAP diluted EPS$2.30 $3.02 $8.63 $11.21 
EPS impact of Non-GAAP adjustments (below)0.67 1.26 1.09 2.32 
Adjusted diluted EPS$2.97 $4.28 $9.72 $13.53 
Non-GAAP adjustments - (income) / expense
Q3-23Q3-22YTD-23YTD-22
Acquisition-related and integration costs (a)$1.8 $6.2 $9.0 $14.8 
Purchase accounting inventory adjustments (b)— 6.8 — 11.6 
Restructuring, impairment and other charges (c)4.5 3.4 13.2 4.3 
Non-GAAP adjustments to operating income6.3 16.4 22.2 30.7 
Other income, net (d)— — (0.2)(0.5)
Non-operating foreign exchange loss11.8 18.2 8.7 40.1 
Non-GAAP adjustments to income before income taxes18.1 34.6 30.7 70.3 
Income taxes (e)1.2 3.0 3.2 12.2 
Non-GAAP adjustments to net income$16.9 $31.6 $27.5 $58.1 
Total EPS impact$0.67 $1.26 $1.09 $2.32 
Adjusted operating margin / Adjusted EBITDA reconciliation
Q3-23Q3-22YTD-23YTD-22
Net income$57.8 $75.5 $216.6 $280.0 
Add:
Income taxes17.5 20.5 53.0 59.7 
Interest expense10.1 8.4 29.8 17.1 
Foreign exchange loss11.8 18.2 8.7 40.1 
Other (income) expense, net(3.5)(0.7)(11.8)9.8 
GAAP operating income$93.6 $121.9 $296.3 $406.6 
Non-GAAP adjustments to operating income6.3 16.4 22.2 30.7 
Adjusted operating income$99.9 $138.3 $318.5 $437.3 
Amortization of intangibles16.0 15.6 49.8 39.9 
Depreciation expenses17.9 17.0 53.5 48.3 
Adjusted EBITDA$133.8 $170.9 $421.8 $525.5 
Net sales$607.1 $658.9 $1,828.9 $1,900.6 
Net income as a percentage of net sales9.5 %11.5 %11.8 %14.7 %
Operating margin15.4 %18.5 %16.2 %21.4 %
Adjusted operating margin16.5 %21.0 %17.4 %23.0 %
Adjusted EBITDA margin22.0 %25.9 %23.1 %27.6 %

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Adjusted EBITDA by SegmentQ3-23Q3-22
ElectronicsTransportationIndustrialElectronicsTransportationIndustrial
GAAP operating income$77.0 $9.7 $13.2 $113.1 $13.0 $12.2 
Add:
Add back amortization9.8 3.6 2.6 9.7 4.7 1.2 
Add back depreciation9.8 6.6 1.5 9.4 6.7 1.0 
Adjusted EBITDA$96.6 $19.9 $17.3 $132.2 $24.4 $14.4 
Adjusted EBITDA Margin28.1 %11.2 %20.1 %33.3 %13.4 %18.1 %

Adjusted EBITDA by SegmentYTD-23 YTD-22
ElectronicsTransportationIndustrialElectronicsTransportationIndustrial
GAAP operating income$247.0 $26.0 $45.5 $339.7 $57.6 $40.0 
Add:
Add back amortization30.1 12.2 7.5 22.5 13.7 3.7 
Add back depreciation29.1 20.4 4.0 26.5 19.0 2.9 
Adjusted EBITDA$306.2 $58.6 $57.0 $388.7 $90.3 $46.5 
Adjusted EBITDA Margin29.1 %11.4 %21.9 %34.7 %16.5 %20.1 %
Net sales reconciliationQ3-23 vs. Q3-22
ElectronicsTransportationIndustrialTotal
Net sales (decline) growth(14)%(3)%8 %(8)%
Less:
Acquisitions2 %— %3 %2 %
FX impact1 %1 %— %1 %
Organic net sales (decline) growth(17)%(4)%5 %(11)%
Net sales reconciliationYTD-23 vs. YTD-22
ElectronicsTransportationIndustrialTotal
Net sales (decline) growth(6)%(6)%13 %(4)%
Less:
Acquisitions8 %— %4 %5 %
FX impact— %— %— %— %
Organic net sales (decline) growth(14)%(6)%9 %(9)%
Income tax reconciliation
Q3-23Q3-22YTD-23YTD-22
Income taxes$17.5 $20.5 $53.0 $59.7 
Effective rate23.3 %21.4 %19.7 %17.6 %
Non-GAAP adjustments - income taxes1.2 3.0 3.2 12.2 
Adjusted income taxes$18.7 $23.4 $56.2 $71.9 
Adjusted effective rate20.0 %18.0 %18.7 %17.5 %
Free cash flow reconciliation
Q3-23Q3-22YTD-23YTD-22
Net cash provided by operating activities$161.5 $148.1 $313.1 $313.4 
Less: Purchases of property, plant and equipment(21.7)(21.7)(63.2)(77.8)
Free cash flow$139.8 $126.5 $250.0 $235.7 

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Consolidated Total Debt
As of September 30, 2023
Consolidated Total Debt$992.6 
Unamortized debt issuance costs4.0 
Consolidated funded indebtedness996.6 
Cash held in U.S. (up to $400 million)155.6
Net debt$841.0 
Consolidated EBITDA
Twelve Months Ended September 30, 2023
Net Income$309.7 
Interest expense38.9 
Income taxes63.1 
Depreciation70.2 
Amortization65.6 
Non-cash additions:
Stock-based compensation expense24.0 
Purchase accounting inventory step-up charge4.1 
Unrealized loss on investments1.2 
Impairment charges9.2 
Other(3.7)
Consolidated EBITDA (1)$582.3 
Consolidated Net Leverage Ratio (as defined in the Credit Agreement) *1.4x
* Our Credit Agreement and Private Placement Note with maturities ranging from 2023 to 2032, contain financial ratio covenants providing that if, as of the last day of each fiscal quarter, the Consolidated Net Leverage ratio at such time for the then most recently concluded period of four consecutive fiscal quarters of the Company exceeds 3.50:1.00, an Event of Default (as defined in the Credit Agreement and Private Placement Senior Notes) is triggered.

The Credit Agreement and Private Placement Senior Notes were amended in Q2 2022 and now allow for the addition of acquisition and integration costs up to 15% of Consolidated EBITDA and the netting of up to $400M of Available Cash (Cash held by US Subsidiaries).

(1) Represents Consolidated EBITDA as defined in our Credit Agreement and Private Placement Senior Notes and is calculated using the most recently concluded period of four consecutive quarters.

Note: Total will not always foot due to rounding.

(a) reflected in selling, general and administrative expenses ("SG&A").
(b) reflected in cost of sales.
(c) reflected in restructuring, impairment and other charges.
(d) reflected YTD gain of $0.2 million from the sale of a building within the Electronics segment in the first quarter of 2023. 2022 amount included $0.5 million gain from the sale of a building within Transportation segment.
(e) reflected the tax impact associated with the non-GAAP adjustments, and 2022 year-to-date amount includes the one-time net benefit of $7.2 million that resulted from the dissolution of one of the Company’s affiliates.

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1 Q3 2023 EARNINGS RELEASE October 31, 2023

 
2Littelfuse, Inc. © 2023 Important Information About Littelfuse, Inc. This presentation does not constitute or form part of, and should not be construed as, an offer or solicitation to purchase or sell securities of Littelfuse, Inc. and no investment decision should be made based upon the information provided herein. Littelfuse strongly urges you to review its filings with the Securities and Exchange Commission, which can be found at investor.littelfuse.com. This website also provides additional information about Littelfuse. “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995. The statements in this presentation that are not historical facts are intended to constitute "forward-looking statements" entitled to the safe-harbor provisions of the Private Securities Litigation Reform Act. Such statements are based on Littelfuse, Inc.’s ("Littelfuse" or the "Company") current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward- looking statements. These risks and uncertainties, include, but are not limited to, risks and uncertainties relating to general economic conditions; product demand and market acceptance; the impact of competitive products and pricing; product quality problems or product recalls; capacity and supply difficulties or constraints; coal mining exposures reserves; cybersecurity matters; failure of an indemnification for environmental liability; exchange rate fluctuations; commodity and other raw material price fluctuations; the effect of Littelfuse accounting policies; labor disputes; restructuring costs in excess of expectations; pension plan asset returns less than assumed; integration of acquisitions; uncertainties related to political or regulatory changes; and other risks which may be detailed in the company's Securities and Exchange Commission filings. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated or implied in the forward-looking statements. This presentation should be read in conjunction with information provided in the financial statements appearing in the company's Annual Report on Form 10-K for the year ended December 31, 2022. Further discussion of the risk factors of the company can be found under the caption "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2022, and in other filings and submissions with the SEC, each of which are available free of charge on the company’s investor relations website at investor.littelfuse.com and on the SEC’s website at http://www.sec.gov. These forward-looking statements are made as of the date hereof. The company does not undertake any obligation to update, amend or clarify these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the availability of new information. Non-GAAP Financial Measures. The information included in this presentation includes the non-GAAP financial measures of organic net sales (decline) growth, adjusted operating margin, adjusted EBITDA margin, adjusted diluted earnings per share, adjusted effective tax rate, free cash flow, and consolidated net leverage ratio (as defined in the credit agreement). A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the appendix. The company believes that these non-GAAP financial measures provide useful information to investors regarding its operational performance, ability to generate cash and its credit position enhancing an investor’s overall understanding of its core financial performance. The company believes that these non-GAAP financial measures are commonly used by financial analysts and provide useful information to analysts. Management uses these measures when assessing the performance of the business and for business planning purposes. Note that the definitions of these non-GAAP financial measures may differ from those terms as defined or used by other companies. DISCLAIMERS

 
BUSINESS UPDATE Dave Heinzmann, President & CEO

 
4Littelfuse, Inc. © 2023 Q3 2023 SUMMARY ▪ Solid financial results within a challenging macro environment ▪ Revenue & Adj. EPS exceed guidance ▪ Resilient business model delivers strong year-to-date cash generation ▪ Continued varied market dynamics ▪ Strong automotive content outgrowth ▪ Mixed industrial market trends ▪ Ongoing inventory destocking ▪ Long-term positioning intact amid market cycles ▪ Design activity & win rates remain robust ▪ Content outgrowth momentum continues ▪ Expect to return to growth during 2024

 
5Littelfuse, Inc. © 2023 2021 – 2025 GROWTH STRATEGY EMPOWERING A SUSTAINABLE, CONNECTED, AND SAFER WORLD Our capabilities, investments & diversification deliver significant value

 
6Littelfuse, Inc. © 2023 INDUSTRIAL END MARKETS POSITIONED FOR LONG-TERM GROWTH ▪ Broad solutions-focused portfolio delivering global wins for industrial safety, renewables & energy storage ▪ Technical expertise enabling next generation advancements in sustainability & safety applications ▪ Evolving safety requirements driving incremental opportunities ▪ High-growth areas more than offsetting pockets of softer industrial demand ▪ Renewables, infrastructure, power supply & industrial safety remain strong Q3 2023 Highlights

 
7Littelfuse, Inc. © 2023 TRANSPORTATION END MARKETS EXTENDING OUR LEADERSHIP POSITION ▪ Continued double-digit content outgrowth for broad portfolio of leading passenger vehicle products ▪ Electrification & electronification continue to expand & deliver new business opportunities ▪ Commercial vehicle new business wins across broad range of applications ▪ Multi-technology win for EV truck, leveraging expanded solutions offerings including Embed software ▪ Construction equipment, truck & bus, recreational vehicles ▪ Differentiated technical expertise, customer relationships & design support for next generation applications Q3 2023 Highlights

 
8Littelfuse, Inc. © 2023 ELECTRONICS END MARKETS EXPANDING OUR LEADERSHIP ▪ Robust design activity for next generation applications ▪ Safety – medical lifesaving & implantable devices ▪ Connectivity – building security ▪ Sustainability – smart water meters, LED lighting ▪ Breadth of product portfolio increasing opportunities for multi-technology solutions ▪ Electrification & electronification across multiple end markets & applications continues to accelerate ▪ Recognized for industry leadership, product innovation & excellence Q3 2023 Highlights

 
FINANCIAL UPDATE Meenal Sethna, EVP & CFO

 
10Littelfuse, Inc. © 2023 ▪ Revenue (-8%) / (-11%) organic, vs. PY ▪ Acquisitions +2%, F/X +1% ▪ Margins ▪ Q3: GAAP operating 15.4%; adjusted 16.5% ▪ YTD: GAAP operating 16.2%; adjusted 17.4%; adjusted EBITDA margin 23.1% ▪ Cash Flow ▪ Q3: operating $162m; free cash flow $140m ▪ YTD: operating $313m, free cash flow $250m, +6% vs. PY, 115% conversion ▪ Capital structure strength; maintained net debt/EBITDA leverage 1.4x Q3 2023 TOTAL COMPANY FINANCIAL PERFORMANCE GAAP EPS $3.02 $2.30 Adj. EPS $4.28 $2.97 Adj. EBITDA% 25.9% 22.0% $659 $607 Q3-22 Q3-23 Revenue (in millions) See appendix for GAAP to non-GAAP reconciliation Highlights

 
11Littelfuse, Inc. © 2023 $398 $344 Q3-22 Q3-23 Q3 2023 ELECTRONICS SEGMENT FINANCIAL PERFORMANCE Revenue ▪ Revenue (-14%) / organic (-17%), vs. PY ▪ Stronger than expected, worked through semiconductor backlog ▪ Continued softness within consumer & personal electronics, datacom; Partial offset from medical, auto, some industrial markets ▪ Resilient profitability through volatile end markets & inventory rebalancing (in millions) Op Margin 28.5% 22.4% Adj. EBITDA% 33.3% 28.1% Highlights See appendix for GAAP to non-GAAP reconciliation

 
12Littelfuse, Inc. © 2023 $182 $177 Q3-22 Q3-23 Q3 2023 TRANSPORTATION SEGMENT FINANCIAL PERFORMANCE Revenue ▪ Revenue (-3%) / organic (-4%), vs. PY ▪ Passenger vehicle growth +12%​ ▪ Several new platform launches, mainly China ▪ Commercial vehicle business (-16%)​ ▪ Continued inventory destocking, ongoing China weakness ▪ Actions to drive progress towards mid- teens​ operating margin ▪ Operational footprint shifts ▪ Cost structure reductions ▪ Optimization of product / customer mix (in millions) Op Margin 7.1% 5.5% Adj. EBITDA% 13.4% 11.2% See appendix for GAAP to non-GAAP reconciliation Highlights

 
13Littelfuse, Inc. © 2023 $80 $86 Q3-22 Q3-23 Q3 2023 INDUSTRIAL SEGMENT FINANCIAL PERFORMANCE Revenue ▪ Revenue +8% / organic +5%, vs. PY ▪ Continued wins across higher-growth end markets ▪ Renewables, energy storage & EV infrastructure ▪ Maintained strong profitability amidst signs of select industrial market softness (in millions) Op Margin 15.3% 15.3% Adj. EBITDA% 18.1% 20.1% See appendix for GAAP to non-GAAP reconciliation Highlights

 
14Littelfuse, Inc. © 2023 Q4 2023 GUIDANCE ▪ Q4 macro view…expect continuation into 2024 ▪ Continued reduction of inventory across distribution partners & some of our OEMs ▪ Some industrial end market softness ▪ Q4 Sales (-13%) vs. PY; (-12%) sequential ▪ Decline across all segments with typical seasonality…led by electronics segment ▪ Commercial vehicle business…product line pruning ~(-1%) ▪ Q4 EPS $1.90 - $2.10 ▪ Impact mainly from sales volume de-leverage ▪ Adj. tax rate ~18% (in millions) See appendix for GAAP to non-GAAP reconciliation $613 $607 $550 - $520 Q4-22 Q3-23 Q4-23 Revenue Adj. EPS $3.34 $2.97 $1.90 - $2.10 GAAP EPS $3.74 $2.30 - Highlights

 
15Littelfuse, Inc. © 2023 FULL YEAR 2023 CONSIDERATIONS / EXPECTATIONS ▪ Better than historical financial performance vs. prior market cycles ▪ Positioned for upper-teens FY23 operating margin ▪ F/X neutral to sales at current F/X rates, ~(-$0.35) EPS impact ▪ ~(-50bps) impact to margins ▪ Other Assumptions ▪ $66m amortization expense ▪ $40m interest expense at current rates ▪ Adj. tax rate 18.6% ▪ Expect 100% free cash flow conversion of net income ▪ $90 - $100m in capital expenditures

 
16Littelfuse, Inc. © 2023 DIVERSIFICATION OF TECHNOLOGIES, END MARKETS & GEOGRAPHIES DELIVERS DOUBLE-DIGIT REVENUE & EARNINGS CAGR '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23F* Revenue (M$) Adjusted EPS ‘08 – ’23F* CAGR: Sales +10% EPS +18% *Based on Q3 YTD 2023 actual results & midpoint of Q4 sales & EPS guidance Resilient business model & strong growth strategy ▪ Expanding leadership in core markets while prioritizing strategic investments to bolster diversified portfolio ▪ Flexible cost structure to drive improved profitability through cycles ▪ Proven team with history of successfully managing through dynamic environments

 
17Littelfuse, Inc. © 2023 APPENDIX

 
18Littelfuse, Inc. © 2023 SUPPLEMENTAL FINANCIAL INFORMATION

 
19Littelfuse, Inc. © 2023 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D

 
20Littelfuse, Inc. © 2023 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D

 
21Littelfuse, Inc. © 2023 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D

 
22Littelfuse, Inc. © 2023 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D

 
v3.23.3
Document and Entity Information
Oct. 31, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 31, 2023
Entity Registrant Name LITTELFUSE INC /DE
Entity Central Index Key 0000889331
Amendment Flag false
Entity Incorporation, State or Country Code DE
Entity File Number 0-20388
Entity Tax Identification Number 36-3795742
Entity Address, Address Line One 8755 W. Higgins Road
Entity Address, Address Line Two Suite 500
Entity Address, City or Town Chicago
Entity Address, State or Province IL
Entity Address, Postal Zip Code 60631
City Area Code 773
Local Phone Number 628-1000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.01 per share
Trading Symbol LFUS
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
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