Bel Fuse Inc. (NASDAQ:BELFA) (NASDAQ:BELFB), a
leading global manufacturer of products that power, protect and
connect electronic circuits, announces preliminary financial
results for the second quarter of 2017.
Second Quarter 2017
Highlights
- Net sales were $131.6 million for the second quarter of 2017,
the same level as the second quarter of 2016.
- Gross profit margin improved to 22.1% in the second quarter of
2017, up from 19.5% in the second quarter of 2016 primarily due to
lower incentive compensation and a more favorable product mix in
the second quarter of 2017, as well as cost savings realized on
prior year restructuring efforts.
- Net earnings were $3.1 million in the second quarter of 2017,
down from $22.8 million in the same period of 2016. Net
earnings for the 2016 period included $12.8 million of net income
related to prior acquisition-related tax settlements as well as a
reduction to our goodwill impairment charge of $4.9 million.
- On a GAAP basis, Class A earnings per share was $0.24 in the
second quarter of 2017 compared to $1.83 in the second quarter of
2016 and Class B earnings per share was $0.26 in the second quarter
of 2017 compared to $1.93 in the second quarter of 2016.
- On a Non-GAAP basis, Class A earnings per share was $0.48 in
the second quarter of 2017 compared to $0.43 in the second quarter
of 2016 and Class B earnings per share was $0.51 in the second
quarter of 2017 compared to $0.46 in the second quarter of
2016.
- Non-GAAP Adjusted EBITDA increased to $13.2 million, or 10.0%
of net sales, in the second quarter of 2017 compared to $11.2
million, or 8.5% of net sales, for the same period of 2016.
- Debt balance was reduced by $12.5 million from March 31, 2017,
bringing our outstanding debt balance down to $130.5 million as of
June 30, 2017.
- Declared dividends were $0.06 and $0.07 for Class A and Class B
shares, respectively, payable August 1, 2017.
Non-GAAP financial measures, such as Non-GAAP
EPS, exclude the impact of costs associated with a legal entity
restructuring, ERP system implementation costs, impairment charges,
restructuring charges and certain other items. 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.
CEO CommentsDaniel Bernstein,
President and CEO, said, “Increased demand in our served markets
and higher bookings throughout 2017 resulted in the end of a streak
of seven consecutive quarters of year-over-year sales declines, as
second quarter 2017 total sales matched those from last year’s
second quarter. Management continues to make top line growth one of
our primary goals and this is the first milestone in reaching our
target. Furthermore, our gross margin expanded to 22.1% in
the second quarter of 2017 compared to 19.5% in last year’s second
quarter, despite the flat revenue comparison, as a result of a
favorable shift in product mix and cost savings measures
implemented in the past year.
“Bel’s Connectivity Solutions business showed
solid sales and profit growth from the first quarter of 2017.
The increase in sales was largely the result of strong sales in the
military sector with a few key programs in Europe and the
U.S. Sales within our industrial sector began to rebound in
the second quarter, particularly in agricultural equipment and
trucking applications. We also saw an increase in sales to
our catalog distributors, which was largely fueled by increased
demand for our radio frequency (RF) connectivity
products. The improvement in profitability resulted from
higher sales coupled with cost savings realized on the
previously-announced restructuring efforts.
“Bel’s Magnetics Solutions business continues to
maintain a strong backlog for our integrated connector module (ICM)
products. There has been steady demand for our established 1-gig
and 10-gig ICMs as well as our recently released 2.5-gig and 5-gig
variants. The upswing in second quarter sales compared to
last year’s second quarter was driven by a new product introduction
at one of our large OEM customers. We are also seeing upside
as a result of our multi-gig discrete magnetics for LAN
applications which had double-digit sales growth compared to the
second quarter of 2016.
“Within Bel’s Power Solutions and Protection
group, there have been several new product developments in
2017. We have launched a 4kW PSU for 48V systems that support
OCP (Open Compute Project) and CORD (Central Office Rearchitected
as a Datacenter) initiatives. This product has been well-received
by the marketplace and initial orders are scheduled for shipment in
the third quarter. We also continue to engage in new
opportunities in the e-Mobility segment for projects expected to
move into production in 2018 and 2019. We are very pleased to
note that Bel Power Europe, which we acquired in 2012, doubled its
sales from last year’s second quarter by penetrating the marine and
industrial markets. We’ve also seen consistent growth over
the past three quarters in our circuit protection line, based on
new efforts to introduce more products into the marketplace.
Despite the progress we see on the product development side,
we continue to closely monitor the profitability of the Power
Solutions business, and will be implementing actions designed to
enable this business to improve its contribution to our
consolidated results,” concluded Mr. Bernstein.
Financial Summary
All comparative percentages are on a
year-over-year basis, unless otherwise noted.
Second Quarter 2017 Results
Net SalesNet sales were $131.6
million, flat from last year’s second quarter. By geographic
segment, Asia was up by 5.4%, Europe was up by 0.4% and North
America was down by 3.6%. By product group, Magnetics
Solutions was up by 7.4%, Power Solutions and Protection sales were
lower by 4.2% and Connectivity Solutions was lower by 2.4%.
During the second quarter of 2017, 33% of our sales related to our
Connectivity Solutions products (compared to 34% for the same
period of 2016), 34% related to our Power Solutions and Protection
products (compared to 35% in 2016) and 33% related to our Magnetic
Solutions products (compared to 31% in 2016).
Gross ProfitGross profit margin
improved to 22.1%, up from 19.5% in the second quarter of 2016, and
gross margin dollars were up by $3.4 million in the second quarter
of 2017 on the same sales volume. Lower incentive compensation, a
favorable shift in product mix and cost savings from prior
restructuring efforts contributed to margin expansion in the second
quarter of 2017.
Selling, General and Administrative
Expenses (SG&A) SG&A expenses were $21.9 million,
up from $18.0 million in the second quarter of 2016. In the
second quarter of 2016, SG&A benefited from a reversal of
certain value-added and business tax items recorded in connection
with the acquisition of Power Solutions of $2.4 million.
Other factors contributing to the increase in 2017 related to
consulting fees in connection with the Company’s Enterprise
Resource Planning (ERP) system implementation of $0.6 million and
an increase of foreign exchange losses of $2.5 million. These
factors were partially offset by a reduction in incentive
compensation expense compared to the second quarter of 2016 as well
as cost savings from recent restructuring efforts.
Operating IncomeOperating income was $7.0
million, compared to $10.0 million in the second quarter of 2016,
with an operating margin of 5.3% in the second quarter of 2017
compared to 7.6% in the second quarter of 2016.
Income TaxesThe income tax
provision was $2.3 million in the second quarter of 2017 as
compared with an income tax benefit of $14.1 million during the
same period of 2016. The Company’s income tax provision can
fluctuate significantly based upon the geographic segment in which
the pre-tax profits and losses are earned. Of the geographic
segments in which the Company operates, the U.S. has the highest
tax rates; Europe tax rates are generally lower than those of the
U.S.; and Asia has the lowest tax rates. The income tax
benefit in 2016 included a net benefit related to the resolution of
certain liabilities for uncertain tax positions of $10.4 million as
well as a $2.3 million tax benefit related to the finalization of
our goodwill impairment during the second quarter of 2016. In
the second quarter of 2017, the Company incurred $2.3 million in
tax expense related to a legal entity restructuring. These
factors resulted in an effective tax rate of 42.4% during the
second quarter of 2017, compared to an effective tax rate of
(163.5)% during the same quarter last year.
Net EarningsNet earnings were
$3.1 million in the second quarter of 2017 as compared with $22.8
million in the second quarter of 2016.
Six Months Ended June 30, 2017
Results
Net SalesNet sales were $245.3
million, down $7.5 million, or 3.0%, from last year’s first half.
By geographic segment, Europe was down by 4.0%, North America was
down by 6.2% and Asia was up by 3.0%. By product group, Power
Solutions and Protection sales were 9.3% lower, Connectivity
Solutions was down by 3.2% and Magnetics Solutions was up by
4.9%. During the first half of 2017, 35% of our sales related
to our Connectivity Solutions products (compared to 35% for the
same period of 2016), 33% related to our Power Solutions and
Protection products (compared to 35% in 2016) and 32% related to
our Magnetic Solutions products (compared to 30% in 2016).
Gross ProfitGross profit margin
was 21.3%, up from 19.3% during the same period of 2016. Lower
incentive compensation and a favorable mix of products sold
resulted in a favorable impact to gross profit margin in 2017 as
compared with 2016. In addition, the restructuring efforts taken
last year also resulted in reduced direct labor and fixed overhead
costs during the 2017 period.
Selling, General and Administrative
Expenses SG&A expenses increased by $7.4 million
in the first half of 2017 to $43.0 million compared to $35.6
million in the same period in 2016. During 2016, Bel recorded a
non-recurring benefit of $5.2 million for certain value-added and
business tax items recorded in connection with the acquisition of
Power Solutions. Other factors contributing to the increase in 2017
related to consulting fees in connection with the Company’s ERP
implementation of $1.1 million and an increase of foreign exchange
losses of $2.7 million. These factors were partially offset
by a reduction in incentive compensation expense compared to the
second quarter of 2016 as well as cost savings from recent
restructuring efforts.
Goodwill and Other Intangible Assets
ImpairmentDuring the first half of 2016, we recorded an
impairment charge related to our goodwill and other intangible
assets of $106.0 million. This impairment charge did not impact our
cash expenditures, liquidity, financial performance, compliance
with our debt covenants or affect the ongoing business.
Operating Income
(Loss)Operating income was $9.1 million in the first half
of 2017 as compared with a loss of $(93.4) million in the same
period of 2016, with an operating margin of 3.7% in the first half
of 2017 compared to (37.0)% in the first half of 2016.
Income TaxesThe provision for
income taxes was $2.3 million in the first half of 2017 as compared
with an income tax benefit of $19.0 million during the same period
of 2016. The income tax benefit in 2016 included a net benefit
related to the resolution of certain liabilities for uncertain tax
positions of $13.0 million and a net benefit related to the
goodwill and other intangible assets impairment of $4.4 million. In
addition, the mix of pre-tax earnings and losses in different
jurisdictions contributed to the benefit in the six-month period of
2016. The 2017 period included $2.3 million in tax expense
related to a legal entity restructuring. These factors resulted in
an effective tax rate of 37.0% during the first half of 2017,
compared to an effective tax rate of 19.6% during the same period
last year.
Net Earnings (Loss)Net earnings
was $3.9 million in the first half of 2017 as compared with a loss
of $(77.9) million in the same period of 2016.
Balance Sheet DataAs of June 30, 2017, working
capital was $163.9 million, including $58.7 million of cash and
cash equivalents with a current ratio of 2.7-to-1. In comparison,
as of December 31, 2016, working capital was $163.1 million,
including $73.4 million of cash and cash equivalents with a current
ratio of 2.8-to-1. Total debt at June 30, 2017 was $130.5 million
as compared to $141.2 million at December 31, 2016. The
decrease in total debt was primarily due to net repayments of $11.4
million in the first half of 2017.
Conference CallBel has
scheduled a conference call at 11:00 a.m. EDT today. To
participate, dial (888) 430-8709 or (719) 325-4781, conference ID
number: 1274489. A simultaneous webcast of the conference
call may be accessed online from the Events and Presentations link
of the Investors page under the "About Bel" tab at
www.BelFuse.com. The webcast replay will be available for a
period of 20 days at this same Internet address. For a
telephone replay, dial (844) 512-2921 or (412) 317-6671, conference
ID number: 1274489 after 2:00 p.m. Eastern.
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, military, aerospace, transportation and broadcasting
industries. 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.
Forward-Looking Statements
Non-historical information contained in this press release (such as
the statements regarding future targets and outlook, scheduled
shipments, expected production and other planned actions) are
forward-looking statements (as described under the Private
Securities Litigation Reform Act of 1995) that involve risks and
uncertainties. Actual results could differ materially from Bel's
projections. 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 effects of business and economic conditions;
difficulties associated with integrating recently acquired
companies; capacity and supply constraints or difficulties; product
development, commercialization 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 impacting our business, 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.
Non-GAAP Financial MeasuresThe
non-GAAP measures identified in this press release as well as in
the supplementary information to this press release (Non-GAAP EPS,
Non-GAAP EBITDA and Non-GAAP 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 may use Non-GAAP financial measures to determine
performance-based compensation and management believes that this
information may be useful to investors.
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, 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]
Bel Fuse Inc. |
|
Supplementary
Information(1) |
|
Condensed Consolidated Statements of
Operations |
|
(in thousands, except per share
amounts) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
131,617 |
|
|
$ |
131,622 |
|
|
$ |
245,285 |
|
|
$ |
252,805 |
|
|
Cost of
sales |
|
|
102,575 |
|
|
|
105,930 |
|
|
|
192,965 |
|
|
|
204,040 |
|
|
Gross profit |
|
|
29,042 |
|
|
|
25,692 |
|
|
|
52,320 |
|
|
|
48,765 |
|
|
As a %
of net sales |
|
|
22.1 |
% |
|
|
19.5 |
% |
|
|
21.3 |
% |
|
|
19.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses |
|
|
21,858 |
|
|
|
17,966 |
|
|
|
43,010 |
|
|
|
35,636 |
|
|
As a %
of net sales |
|
|
16.6 |
% |
|
|
13.6 |
% |
|
|
17.5 |
% |
|
|
14.1 |
% |
|
Impairment of goodwill and other intangible assets(2) |
|
|
- |
|
|
|
(2,611 |
) |
|
|
- |
|
|
|
105,972 |
|
|
Impairment of property, plant and equipment |
|
|
42 |
|
|
|
- |
|
|
|
42 |
|
|
|
- |
|
|
Restructuring charges |
|
|
138 |
|
|
|
373 |
|
|
|
171 |
|
|
|
601 |
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
|
7,004 |
|
|
|
9,964 |
|
|
|
9,097 |
|
|
|
(93,444 |
) |
|
As a %
of net sales |
|
|
5.3 |
% |
|
|
7.6 |
% |
|
|
3.7 |
% |
|
|
-37.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(1,586 |
) |
|
|
(1,505 |
) |
|
|
(3,010 |
) |
|
|
(3,706 |
) |
|
Interest
income and other, net |
|
|
(6 |
) |
|
|
184 |
|
|
|
48 |
|
|
|
224 |
|
|
Earnings (loss) before benefit for income
taxes |
|
|
5,412 |
|
|
|
8,643 |
|
|
|
6,135 |
|
|
|
(96,926 |
) |
|
|
|
|
|
|
|
|
|
|
|
Provision for (benefit from) income taxes |
|
|
2,292 |
|
|
|
(14,133 |
) |
|
|
2,269 |
|
|
|
(19,005 |
) |
|
Effective tax rate |
|
|
42.4 |
% |
|
|
-163.5 |
% |
|
|
37.0 |
% |
|
|
19.6 |
% |
|
Net earnings (loss) available to common
stockholders |
|
$ |
3,120 |
|
|
$ |
22,776 |
|
|
$ |
3,866 |
|
|
$ |
(77,921 |
) |
|
As a %
of net sales |
|
|
2.4 |
% |
|
|
17.3 |
% |
|
|
1.6 |
% |
|
|
-30.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares outstanding: |
|
|
|
|
|
|
|
|
|
Class A common shares -
basic and diluted |
|
|
2,175 |
|
|
|
2,175 |
|
|
|
2,175 |
|
|
|
2,175 |
|
|
Class B common shares -
basic and diluted |
|
|
9,859 |
|
|
|
9,729 |
|
|
|
9,852 |
|
|
|
9,715 |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) per common share: |
|
|
|
|
|
|
|
|
|
Class A common shares -
basic and diluted |
|
$ |
0.24 |
|
|
$ |
1.83 |
|
|
$ |
0.30 |
|
|
$ |
(6.31 |
) |
|
Class B common shares -
basic and diluted |
|
$ |
0.26 |
|
|
$ |
1.93 |
|
|
$ |
0.33 |
|
|
$ |
(6.61 |
) |
|
|
|
|
|
|
|
|
|
|
|
(1) The supplementary information included in this press
release for 2017 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. Some prior period amounts have
been reclassified to conform to the current year presentation.
These reclassifications, individually and in the aggregate, had no
impact on our consolidated statements of operations. |
|
|
|
(2) During the six months ended June 30, 2016, we
recorded a non-cash impairment charge of $106.0 million related to
our goodwill and other intangible assets. This impairment did
not impact our cash expenditures, liquidity, financial performance,
compliance with our debt covenants or affect our ongoing
business. |
|
|
|
Bel Fuse Inc. |
|
Supplementary
Information(1) |
|
Condensed Consolidated Balance
Sheets |
|
(in thousands, unaudited) |
|
|
|
June 30, |
|
December 31, |
|
|
|
|
2017 |
|
|
2016 |
|
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
58,663 |
|
$ |
73,411 |
|
Accounts
receivable, net |
|
|
89,228 |
|
|
74,416 |
|
Inventories |
|
|
102,992 |
|
|
98,871 |
|
Other
current assets |
|
|
10,500 |
|
|
8,744 |
|
Total current assets |
|
|
261,383 |
|
|
255,442 |
|
Property, plant and equipment, net |
|
|
44,947 |
|
|
48,755 |
|
Goodwill
and other intangible assets, net |
|
|
91,466 |
|
|
92,779 |
|
Other
assets |
|
|
32,143 |
|
|
29,764 |
|
Total assets |
|
$ |
429,939 |
|
$ |
426,740 |
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts
payable |
|
$ |
48,821 |
|
$ |
47,235 |
|
Current
portion of long-term debt |
|
|
14,440 |
|
|
11,395 |
|
Other
current liabilities |
|
|
34,241 |
|
|
33,697 |
|
Total current liabilities |
|
|
97,502 |
|
|
92,327 |
|
Long-term debt |
|
|
116,075 |
|
|
129,850 |
|
Other
liabilities |
|
|
46,739 |
|
|
46,129 |
|
Total liabilities |
|
|
260,316 |
|
|
268,306 |
|
Stockholders' equity |
|
|
169,623 |
|
|
158,434 |
|
Total liabilities and stockholders' equity |
|
$ |
429,939 |
|
$ |
426,740 |
|
|
|
|
|
|
|
(1) The supplementary information included in this
press release for 2017 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 U.S. GAAP Net Earnings
Available to Common Stockholders to Non U.S. GAAP
EBITDA(2) |
|
(in thousands, unaudited) |
|
|
|
|
|
Three Months
Ended |
|
Six Months Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP Net earnings (loss) available to common
stockholders |
|
$ |
3,120 |
|
|
$ |
22,776 |
|
|
$ |
3,866 |
|
|
$ |
(77,921 |
) |
|
Interest expense |
|
|
1,586 |
|
|
|
1,505 |
|
|
|
3,010 |
|
|
|
3,706 |
|
|
Provision for (benefit from) income taxes |
|
|
2,292 |
|
|
|
(14,133 |
) |
|
|
2,269 |
|
|
|
(19,005 |
) |
|
Depreciation and
amortization |
|
|
5,249 |
|
|
|
5,467 |
|
|
|
10,476 |
|
|
|
10,968 |
|
|
Non U.S. GAAP
EBITDA |
|
$ |
12,247 |
|
|
$ |
15,615 |
|
|
$ |
19,621 |
|
|
$ |
(82,252 |
) |
|
% of net sales |
|
|
9.3 |
% |
|
|
11.9 |
% |
|
|
8.0 |
% |
|
|
-32.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
Unusual or
special items: |
|
|
|
|
|
|
|
|
|
ERP
system implementation consulting costs |
|
|
639 |
|
|
|
- |
|
|
|
1,088 |
|
|
|
- |
|
|
Professional fees related to legal entity restructuring |
|
|
200 |
|
|
|
|
|
200 |
|
|
|
|
Acquisition related costs |
|
|
- |
|
|
|
150 |
|
|
|
- |
|
|
|
162 |
|
|
Restructuring charges |
|
|
138 |
|
|
|
373 |
|
|
|
171 |
|
|
|
601 |
|
|
Power
Solutions acquisition-related settlements |
|
|
- |
|
|
|
(2,358 |
) |
|
|
- |
|
|
|
(5,155 |
) |
|
Impairment of goodwill and other intangible assets |
|
|
- |
|
|
|
(2,611 |
) |
|
|
- |
|
|
|
105,972 |
|
|
|
|
|
|
|
|
|
|
|
|
Non U.S. GAAP
Adjusted EBITDA |
|
$ |
13,224 |
|
|
$ |
11,169 |
|
|
$ |
21,080 |
|
|
$ |
19,328 |
|
|
% of net sales |
|
|
10.0 |
% |
|
|
8.5 |
% |
|
|
8.6 |
% |
|
|
7.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The supplementary information included in this press
release for 2017 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-U.S. GAAP financial measures, including Non-U.S.
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 U.S GAAP, to aid
in comparisons with other periods. We may use Non-U.S GAAP
financial measures to determine performance-based compensation and
management believes that this information may be useful to
investors. |
|
|
|
|
|
|
|
|
|
|
|
The following tables reconcile our US GAAP net
earnings per common Class A and Class B basic and diluted shares
("GAAP EPS") to Non US GAAP net earnings per common Class A and
Class B basic and diluted shares ("Non GAAP
EPS"). |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
Class A |
|
Class B |
|
Class A |
|
Class B |
|
Class A |
|
Class B |
|
Class A |
|
Class B |
|
|
|
|
US GAAP
EPS |
|
$ |
0.24 |
|
$ |
0.26 |
|
|
$ |
1.83 |
|
|
$ |
1.93 |
|
|
$ |
0.30 |
|
$ |
0.33 |
|
|
$ |
(6.31 |
) |
|
$ |
(6.61 |
) |
|
|
|
|
Reconciling items
(a) |
|
|
0.24 |
|
|
0.25 |
|
|
|
(1.40 |
) |
|
|
(1.47 |
) |
|
|
0.26 |
|
|
0.27 |
|
|
|
6.78 |
|
|
|
7.13 |
|
|
|
|
|
Non US GAAP
EPS |
|
$ |
0.48 |
|
$ |
0.51 |
|
|
$ |
0.43 |
|
|
$ |
0.46 |
|
|
$ |
0.56 |
|
$ |
0.60 |
|
|
$ |
0.47 |
|
|
$ |
0.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The following tables detail the impact of certain
unusual or non-recurring items had on the Company's net earnings
per common Class A and Class B basic and diluted shares and the
line items these items were included on the condensed consolidated
statements of operations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2017 |
|
Three Months Ended June 30, 2016 |
Reconciling Items |
|
Gross Impact |
|
Tax Effect |
|
Net Earnings
Impact |
|
Class A EPS
Impact |
|
Class B EPS
Impact |
|
Gross Impact |
|
Tax Effect |
|
Net Earnings Impact |
|
Class A EPS
Impact |
|
Class B EPS
Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items
included in SG&A expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ERP
system implementation consulting costs |
|
$ |
639 |
|
$ |
193 |
|
|
$ |
446 |
|
|
$ |
0.04 |
|
|
$ |
0.04 |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
Professional fees related to legal entity restructuring |
|
|
200 |
|
|
76 |
|
|
|
124 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Acquisition related costs |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
150 |
|
|
|
57 |
|
|
|
93 |
|
|
|
0.01 |
|
|
|
0.01 |
|
Power
Solutions acquisition related items and settlements |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
(2,358 |
) |
|
|
(714 |
) |
|
|
(1,644 |
) |
|
|
(0.13 |
) |
|
|
(0.14 |
) |
Restructuring
charges |
|
|
138 |
|
|
46 |
|
|
|
92 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
373 |
|
|
|
136 |
|
|
|
237 |
|
|
|
0.02 |
|
|
|
0.02 |
|
Impairment of goodwill
and other intangible assets |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(2,611 |
) |
|
|
2,333 |
|
|
|
(4,944 |
) |
|
|
(0.40 |
) |
|
|
(0.42 |
) |
Items included in
income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incremental tax related to legal entity restructuring |
|
|
- |
|
|
(2,308 |
) |
|
|
2,308 |
|
|
|
0.18 |
|
|
|
0.19 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Power
Solutions acquisition related settlements |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
11,114 |
|
|
|
(11,114 |
) |
|
|
(0.90 |
) |
|
|
(0.94 |
) |
Total
reconciling items |
|
$ |
977 |
|
$ |
(1,993 |
) |
|
$ |
2,970 |
|
|
$ |
0.24 |
|
|
$ |
0.25 |
|
$ |
(4,446 |
) |
|
$ |
12,926 |
|
|
$ |
(17,372 |
) |
|
$ |
(1.40 |
) |
|
$ |
(1.47 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2017 |
|
Six Months Ended June 30, 2016 |
Reconciling Items |
|
Gross Impact |
|
Tax Effect |
|
Net Earnings
Impact |
|
Class A EPS
Impact |
|
Class B EPS
Impact |
|
Gross Impact |
|
Tax Effect |
|
Net Earnings Impact |
|
Class A EPS
Impact |
|
Class B EPS
Impact |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items included in
SG&A expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ERP
system assessment costs |
|
$ |
1,088 |
|
$ |
333 |
|
|
$ |
755 |
|
|
|
0.06 |
|
|
|
0.06 |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
Professional fees related to legal entity restructuring |
|
|
200 |
|
|
76 |
|
|
|
124 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Acquisition related costs |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
162 |
|
|
|
62 |
|
|
|
100 |
|
|
|
0.01 |
|
|
|
0.01 |
|
Power
Solutions acquisition related items and settlements |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(5,155 |
) |
|
|
(780 |
) |
|
|
(4,375 |
) |
|
|
(0.35 |
) |
|
|
(0.37 |
) |
Restructuring
charges |
|
|
171 |
|
|
44 |
|
|
|
127 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
601 |
|
|
|
221 |
|
|
|
380 |
|
|
|
0.03 |
|
|
|
0.03 |
|
Impairment of goodwill
and other intangible assets |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
105,972 |
|
|
|
4,385 |
|
|
|
101,587 |
|
|
|
8.21 |
|
|
|
8.63 |
|
Items included in
income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incremental tax related to legal entity restructuring |
|
|
- |
|
|
(2,308 |
) |
|
|
2,308 |
|
|
|
0.18 |
|
|
|
0.19 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Power
Solutions acquisition related settlements |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
13,809 |
|
|
|
(13,809 |
) |
|
|
(1.12 |
) |
|
|
(1.17 |
) |
Total
reconciling items |
|
$ |
1,459 |
|
$ |
(1,855 |
) |
|
$ |
3,314 |
|
|
$ |
0.26 |
|
|
$ |
0.27 |
|
$ |
101,580 |
|
|
$ |
17,697 |
|
|
$ |
83,883 |
|
|
$ |
6.78 |
|
|
$ |
7.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Contact:
Darrow Associates
tel 516.419.9915
pseltzberg@darrowir.com
Company Contact:
Daniel Bernstein
President
ir@belf.com
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