Bel Fuse Inc. (NASDAQ:BELFA)(NASDAQ:BELFB) today
announced preliminary unaudited financial results for the third
quarter of 2010. The Company reported that net sales increased 88%
to a record $85.0 million, and net earnings increased to $9.9
million ($0.81 per Class A share and $0.86 per Class B share)
compared to a net loss of $10.8 million ($0.90 per Class A share
and $0.94 per Class B share) for the third quarter of 2009.
"With solid demand for all of our product groups, we delivered
the strongest revenue quarter in Bel's 60-year history and one of
our most profitable quarters ever," said Daniel Bernstein, Bel's
President and CEO. "Beyond the higher margins associated with our
record sales, another major driver of Bel's profitability was the
efficiency improvements we have achieved in China. We increased our
workforce by 4,500 associates in just the past 14 months, despite a
training period of 13 weeks and an employee fallout rate of 50%. We
are now close to our target labor force and the increased
productivity, combined with a more stable workforce, has cut lead
times close to normal levels."
Noting that Cinch Connectors contributed revenue of $15.5
million for the third quarter, Bernstein said, "The integration of
Cinch is essentially complete. As we anticipated, Cinch's
well-established lines of connectors and cable products fit
comfortably into Bel's traditional product menu, and its extensive
clientele has enabled Bel to diversify its customer base to include
aerospace and military markets for the first time."
Third Quarter Results
For the three months ended September 30, 2010, net sales
increased 88% to $84,961,000 compared to $45,283,000 for the third
quarter of 2009. This year's third quarter net sales included
$15,471,000 from Cinch Connectors, which was acquired on January
29, 2010. Excluding the Cinch Connector sales, net sales increased
54% for this year's third quarter versus the same quarter last
year. Net sales increased 11% versus the second quarter of
2010.
Net earnings for the third quarter of 2010 were $9,944,000. The
net loss for the third quarter of 2009 was $10,752,000, which
included a charge for impairment of goodwill of $12,875,000
($12,875,000 after tax).
Adjusted to exclude net gains on sale of property, plant and
equipment, a net gain from the expiration of tax statutes of
limitations and other items, non-GAAP net earnings for the third
quarter of 2010 were $8,424,000. This compares to non-GAAP net
earnings for the third quarter of 2009 of $118,000, adjusted to
exclude goodwill impairment, lawsuit settlement costs, a gain on
sale of investments, a net gain from the expiration of tax statutes
of limitations and other items. A reconciliation of non-GAAP to
GAAP financial measures is provided in the table attached to this
press release.
Net earnings per diluted Class A common share for the third
quarter of 2010 were $0.81, compared to a net loss per Class A
common share of $0.90 for the third quarter of 2009. Adjusted to
exclude the items described above, non-GAAP net earnings per
diluted Class A common share were $0.69 for this year's third
quarter, compared to non-GAAP net earnings per Class A common share
of $0.01 for the third quarter of 2009.
Net earnings per diluted Class B common share were $0.86 for the
third quarter of 2010, compared to a net loss per Class B common
share of $0.94 for the third quarter of 2009. Adjusted to exclude
the items described above, non-GAAP net earnings per diluted Class
B common share were $0.73 for the third quarter of 2010, compared
to non-GAAP net earnings per Class B common share of $0.02 for the
third quarter of 2009.
Cost of sales decreased to 76.3% of sales for the third quarter
of 2010, compared to 91.7% of sales for the third quarter of
2009.
Income from operations for this year's third quarter was
$9,373,000, including operating income of approximately $1,933,000
at Cinch Connectors. This compares to an operating loss of
$15,930,000 for the third quarter of 2009. Adjusted to exclude the
items described above, non-GAAP income from operations for the
third quarter of 2010 increased to $9,062,000, compared to a
non-GAAP loss from operations of $822,000 for the third quarter of
2009.
At September 30, 2010, Bel reported working capital of
approximately $156,609,000, including cash, cash equivalents,
short-term investments and marketable securities of approximately
$77,888,000, a current ratio of 4.7, total long-term obligations of
$9,589,000, and stockholders' equity of $222,781,000. In
comparison, at December 31, 2009, Bel reported working capital of
approximately $167,833,000, including cash, cash equivalents,
short-term investments and marketable securities of approximately
$124,233,000, a current ratio of 7.0, total long-term obligations
of $9,017,000, and stockholders' equity of $208,932,000.
Nine Month Results
For the nine months ended September 30, 2010, net sales
increased 63% to $218,842,000 compared to $134,088,000 for 2009.
Net earnings for the first nine months of 2010 increased to
$14,671,000, compared to a net loss of $11,208,000 for the first
nine months of 2009.
Net earnings per diluted Class A common share for the first nine
months of 2010 were $1.19, compared to a net loss per Class A
common share of $0.95 for the same period of 2009. Net earnings per
diluted Class B common share for the first nine months of 2010 were
$1.27, compared to a net loss per Class B common share of $0.98 for
the first nine months of 2009.
Conference Call
Bel has scheduled a conference call at 11:00 a.m. EDT today. To
participate in the call, dial (720) 545-0088, conference ID
#97957999. A simultaneous webcast is available from the Events and
Presentations link of the Investor Info tab at www.belfuse.com. A
replay will be available for 20 days at this same Internet address.
For a telephone replay, dial (706) 645-9291, conference ID
#97957999 after 2:00 p.m. EDT.
About Bel
Bel (www.belfuse.com) and its divisions are primarily engaged in
the design, manufacture, and sale of products used in networking,
telecommunications, high-speed data transmission, commercial
aerospace, military, transportation, and consumer electronics.
Products include magnetics (discrete components, power transformers
and MagJack® connectors with integrated magnetics), modules (DC-DC
converters, integrated analog front-end modules and custom
designs), circuit protection (miniature, micro and surface mount
fuses) and interconnect devices (micro, circular and filtered D-Sub
connectors, passive jacks, plugs and high-speed cable assemblies).
The Company operates facilities around the world.
Forward-Looking Statements
Except for historical information contained in this news
release, the matters discussed in this press release are forward
looking statements that involve risks and uncertainties. Among the
factors that could cause actual results to differ materially from
such statements are: the market concerns facing our customers, the
continuing viability of sectors that rely on our products, the
effect of business and economic conditions; capacity and supply
constraints or difficulties; product development, commercializing
or technological difficulties; the regulatory and trade
environment; risks associated with foreign currencies;
uncertainties associated with legal proceedings; the market's
acceptance of the Company's new products and competitive responses
to those new products and the risk factors detailed from time to
time in the Company's SEC reports. In light of the risks and
uncertainties, there can be no assurance that any forward-looking
statement will in fact prove to be correct. We undertake no
obligation to update or revise any forward-looking statements.
BEL FUSE INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF OPERATIONS (000s omitted, except for per share data)
Three Months Ended Nine Months Ended
September 30, September 30, 2010 2009 2010 2009
(unaudited) (unaudited) Net Sales $ 84,961 $ 45,283
$ 218,842 $ 134,088 Costs and expenses:
Cost of sales 64,795 41,516 173,524 119,919 Selling, general and
administrative 11,181 6,813 30,642 22,067 Impairment of goodwill --
12,875 -- 12,875 Restructuring charge -- -- -- 413 (Gain) loss on
sale of property, plant and equipment (388 ) 9
(369 ) (4,643 ) 75,588 61,213 203,797 150,631
Income (loss) from operations 9,373 (15,930 ) 15,045 (16,543
) Gain on sale of investment -- 656 -- 1,739 Interest income and
other, net 87 86 325
402 Earnings (loss) before (benefit) provision
for income taxes 9,460 (15,188 ) 15,370 (14,402 ) (Benefit)
provision for income taxes (484 ) (4,436 ) 699
(3,194 ) Net earnings (loss) $ 9,944 $
(10,752 ) $ 14,671 $ (11,208 )
Earnings (loss) per Class A common share
basic and diluted
$ 0.81 $ (0.90 ) $ 1.19 $ (0.95 )
Weighted average Class A common shares
outstanding basic and diluted
2,175 2,175 2,175
2,175
Earnings (loss) per Class B common share
basic and diluted
$ 0.86 $ (0.94 ) $ 1.27 $ (0.98 )
Weighted average Class B common shares
outstanding basic and diluted
9,528 9,324 9,496
9,343
CONDENSED CONSOLIDATED BALANCE SHEET
DATA
(000s omitted)
Sep. 30,
Dec. 31,
Sep. 30,
Dec. 31,
ASSETS
2010
2009
LIABILITIES & EQUITY
2010
2009
(unaudited)
(audited)
(unaudited)
(audited)
Current assets
$
198,401
$
195,830
Current liabilities
$
41,792
$
27,997
Property, plant & equipment, net
46,157
35,943
Noncurrent liabilities
9,589
9,017
Goodwill
4,526
1,957
Intangibles & other assets
25,078
12,216
Stockholders' equity
222,781
208,932
Total Assets
$
274,162
$
245,946
Total Liabilities & Equity
$
274,162
$
245,946
BEL FUSE INC. AND SUBSIDIARIES
NON-GAAP MEASURES (unaudited) (000s omitted, except for per share
data) Three Months Ended September 30, 2010
Nine Months Ended September 30, 2010
Income from
Operations
Net earnings
(2)
Net earnings perClass A commonshare -
diluted(3)
Net earnings perClass B commonshare -
diluted(3)
Income from
Operations
Net earnings
(2)
Net earnings perClass A commonshare -
diluted(3)
Net earnings perClass B commonshare -
diluted(3)
GAAP measures $ 9,373 $ 9,944 $ 0.81 $ 0.86 $ 15,045 $ 14,671 $
1.19 $ 1.27 Severance costs and plant closure expenses 44 44 0.00
0.00 1,096 1,000 0.08 0.09
Acquisition-related costs and
inventory-related purchase accounting adjustments
33 20 0.00 0.00 1,127 699 0.06 0.06 Gain on sale of property, plant
and equipment (388 ) (389 ) (0.03 ) (0.03 ) (369 ) (377 ) (0.03 )
(0.03 ) Expiration of tax statutes of limitations, net --
(1,196 ) (0.10 ) (0.10 ) --
(732 ) (0.06 ) (0.06 )
Non-GAAP measures excluding severance and
plant closure, acquisition-related costs and inventory-related
purchase accounting adjustments; gains on sale of property, plant
and equipment and net expiration of tax statutes of
limitations(1)
$ 9,062 $ 8,424 $ 0.69 $ 0.73 $ 16,899
$ 15,261 $ 1.24 $ 1.32
Three Months Ended September 30, 2009 Nine Months Ended September
30, 2009 (Loss)
from
Operations
Net
(Loss)(2)
Net (Loss) perClass A commonshare -
diluted(3)
Net (Loss) perClass B commonshare -
diluted(3)
(Loss)
from
Operations
Net
(loss)(2)
Net (Loss) perClass A commonshare -
diluted(3)
Net (Loss) perClass B commonshare -
diluted(3)
GAAP measures $ (15,930 ) $ (10,752 ) $ (0.90 ) $ (0.94 ) $ (16,543
) $ (11,208 ) $ (0.95 ) $ (0.98 )
Restructuring, severance, and unauthorized
stock issuance costs
122 111 0.01 0.01 2,463 1,730 0.14 0.15 Impairment of goodwill
12,875 12,875 1.08 1.13 12,875 12,875 1.07 1.13 License fee paid in
settlement of lawsuit 2,001 1,241 0.10 0.11 2,001 1,241 0.10 0.11
Acquisition-related costs 101 63 0.01 0.01 101 63 0.01 0.01 Loss
(gain) on sale of property, plant and equipment 9 5 0.00 0.00
(4,643 ) (2,879 ) (0.24 ) (0.25 ) Gain on sale of investments, net
of income tax -- (406 ) (0.03 ) (0.04 ) -- (1,077 ) (0.09 ) (0.09 )
Expiration of tax statutes of limitations, net --
(3,019 ) (0.25 ) (0.26 ) --
(2,955 ) (0.25 ) (0.26 )
Non-GAAP measures excluding restructuring,
impairment charges and other costs; gain on sale of investments
(net of income tax); gain on sale of property, plant and equipment
and net expiration of tax statutes of limitations (1)
$ (822 ) $ 118 $ 0.01 $ 0.02 $ (3,746 ) $
(2,210 ) $ (0.20 ) $ (0.19 )
(1) The non-GAAP measures presented above
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.
Based upon discussions with investors and
analysts, we believe that the reader's understanding of Bel's
performance and profitability is enhanced by reference to these
non-GAAP measures. Removal of gains and losses on sales of
investments and real estate, tax benefits resulting from the
expiration of tax statutes of limitations and charges for
severance, factory closure, amounts paid in settlement of a
lawsuit, restructuring, impairment of assets, unauthorized stock
issuance costs, inventory-related purchase accounting adjustments
and acquisition-related costs facilitates comparisons of our
results among reporting periods. We believe that such amounts are
not reflective of the relevant business in the period in which the
gain or charge is recorded for accounting purposes.
(2) Net of income tax at effective rate in the applicable
tax jurisdiction. (3) Individual amounts of earnings (loss)
per share may not agree to the total due to rounding.
Bel Fuse (NASDAQ:BELFA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Bel Fuse (NASDAQ:BELFA)
Historical Stock Chart
From Jul 2023 to Jul 2024