Bel Fuse Inc. (NASDAQ:BELFA) (NASDAQ:BELFB) today
announced preliminary financial results for the fourth quarter and
full year 2017.
Fourth Quarter 2017
Highlights
- Net sales of $119.9 million, an improvement of 1.2% year over
year
- GAAP net loss of $20.8 million, largely due to tax reform
impact, compared to net earnings of $3.4 million in the fourth
quarter of 2016
- Adjusted EBITDA of $7.1 million (5.9% of sales) compared to
$13.7 million (11.6% of sales) in the fourth quarter of 2016
- Refinanced credit agreement during the quarter, providing for
additional borrowing capacity
Full Year 2017 Highlights
- Net sales of $491.6 million, down 1.7% year over year
- GAAP net loss of $11.9 million compared to a net loss of $64.8
million in 2016, primarily due to goodwill impairment charge
- Adjusted EBITDA of $40.4 million (8.2% of sales) versus $46.2
million (9.2% of sales) in 2016
- Backlog improvement of 29% from December 31, 2016 level
Non-GAAP financial measures, such as Non-GAAP EPS, EBITDA and
Adjusted EBITDA, exclude the impact of costs associated with a
legal entity restructuring, ERP system implementation costs,
impairment charges, restructuring charges, the transition tax
related to tax reform enacted in December 2017, 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, “While we experienced a slight improvement
in sales during the fourth quarter over last year, it did not
result in bottom line growth this quarter. There were certain
charges incurred that were one-time in nature related to tax reform
and deferred financing costs. Consulting costs related to our
ERP implementation and inventory-related charges were also
significantly higher in the fourth quarter. That said, we
believe that our margins will improve from the fourth quarter level
in 2018.
“Overall, the Company’s backlog has increased to
$146.5 million at December 31, 2017, which represents a $33.3
million, or 29%, increase from its level at December 31,
2016. While we are unable to predict the effect that this
increase will ultimately have on 2018 sales, it is a good barometer
that we are well positioned for organic growth in future
periods.
“Fourth quarter 2017 sales within our
Connectivity Solutions group were up by $3.2 million compared to
the same quarter of 2016. We saw improvement across all
primary end markets served and highlighted by gains in
distribution and military sales. Sales into industrial markets also
grew in the fourth quarter of 2017, particularly in the
applications of automated test and measurement equipment and
alternative energy generation. Commercial aerospace continues
to be a steady contributor to our Connectivity Solutions group, and
we anticipate further growth in this area in 2018 as a result
of our position on key carrier jet platforms that are experiencing
increased build rates. Following four consecutive quarters of
year-over-year declines, our Stewart Connector business had
relatively even sales in the fourth quarter of 2017 as compared to
the same quarter of 2016. The Stewart business continues to
be repositioned to better utilize our now extensive network of
global distributors, and to focus its efforts in the areas of
high-reliability, harsh-environment applications emerging within
the internet of things (IoT) market. We’re beginning to see
the benefit of this repositioning as reflected in a 43% increase in
its backlog since the end of 2016. Overall, the Connectivity
Solutions group ended the year with backlog up $6.2 million from
its level at December 31, 2016, which should bode well for this
group in the coming year.
"The backlog for the Power Solutions and
Protections group increased by $21.1 million from its level at
December 31, 2016, with about half of this increase scheduled to
ship in 2018. Following nine consecutive quarters of
year-over-year declines, fourth quarter sales within our Power
Solutions business were 6% higher compared to the same quarter of
2016, excluding the effects of our NPS divestiture. We
continue to be encouraged by our pipeline of projects within
industrial, E-Mobility and datacenter applications. Sales
within our modules group increased by $900,000, or 20%, as one of
our products within an IoT application was introduced to the
consumer marketplace during the fourth quarter. Our portfolio of
circuit protection products also had a strong fourth quarter,
growing by $300,000, or 11%, largely resulting from the successful
deployment of this product line throughout our distribution
channels.
“While sales within our Magnetic Solutions group
were down slightly from the fourth quarter of 2016, our backlog for
these products remains strong and was up $6 million from the end of
2016. We have continued market leadership with our integrated
connector modules (ICMs), highlighted by strength in the network
enterprise space which utilizes our 1GBT through 10GBT and
power-over-ethernet (PoE) ICMs. We have a strong position on
the latest releases of multi-gig switching products and are gaining
traction in the Open Compute Project (OCP) space with single row
high-speed ICMs. Our Signal Transformer business had an 11%
improvement in sales during the fourth quarter of 2017 compared to
the same period of 2016. This was largely driven by new
programs where our transformers are used in a variety of
applications, including electrical circuit breakers, airport runway
lighting and battery backup power management systems. Overall, we
anticipate another solid year out of this group despite a very
competitive environment.
“We successfully refinanced our credit facility
during the fourth quarter with several changes that will benefit
the Company in the near and long term. The new agreement
provides more favorable pricing from an interest rate perspective;
it reduces mandatory payments over the next four years, giving us
flexibility in how we choose to utilize our U.S. cash; and it
includes additional borrowing capacity under the revolver which can
be used for future acquisitions. Our top priority is growing
the Company’s top line. Our new credit facility,
coupled with availability of foreign earnings provided for with the
transition tax, will enable future acquisitions to be a key
component of our growth strategy,” concluded Mr. Bernstein.
Financial Summary
All comparative percentages are on a
year-over-year basis, unless otherwise noted.
Fourth Quarter 2017 Results
Net SalesNet sales were $119.9
million, up 1.2% from last year’s fourth quarter. By geographic
segment, Europe was up by 12.7%, North America was up by 1.9%, and
Asia was down by 4.6%. By product group, Connectivity
Solutions was up by 8.1%, Power Solutions and Protection sales were
3.3% lower and Magnetics Solutions was down by 1.0%. During
the fourth quarter of 2017, 35% of our sales related to our
Connectivity Solutions products (compared to 33% for the same
period of 2016), 33% related to our Power Solutions and Protection
products (compared to 34% in 2016) and 32% related to our Magnetic
Solutions products (compared to 33% in 2016).
On a consolidated basis, sales increased by $1.4
million in the fourth quarter of 2017 compared to the same period
of 2016, despite a $2.9 million decline in sales related to the
winding down of our NPS product sales within the Power Solutions
Business. The majority of the sales growth in the fourth
quarter related to our Connectivity Solutions products, due to
increased demand for our active optical products and Semflex cables
for use in military applications.
Gross ProfitGross profit margin
declined to 18.4%, from 20.7% in the fourth quarter of 2016,
primarily due to inventory-related charges totaling $2.0 million in
the fourth quarter of 2017 in connection with maintaining our
inventory at the lower of cost or net realizable value.
Selling, General and Administrative
Expenses (SG&A) SG&A expenses were $21.2 million,
up from $16.0 million in the fourth quarter of 2016. The Company
incurred $1.1 million of consulting costs related to the
implementation of its ERP system in the fourth quarter of
2017. The fourth quarter of 2016 included foreign currency
exchange gains of $2.7 million which also contributed to the
unfavorable variance in the fourth quarter of 2017.
Gain on Sale of PropertyThe
Company closed on the sale of a property in San Diego in the fourth
quarter of 2016, which resulted in a pre-tax gain of $1.0
million. There were no property sales during the fourth
quarter of 2017.
Operating IncomeOperating
income was $0.7 million, down from $7.6 million in the fourth
quarter of 2016, with an operating margin of 0.6% compared to 6.4%
in the fourth quarter of 2016.
Income TaxesThe provision for
income taxes was $19.2 million in the fourth quarter of 2017 as
compared with $3.0 million during the same period of 2016.
The provision for income taxes in the 2017 period included an $18
million impact from the U.S. Tax Cuts and Jobs Act which was
enacted on December 22, 2017. This consisted of an estimated
transition tax on foreign earnings of approximately $16 million
after the utilization of foreign tax credits and $2 million related
to the revaluation of the Company’s deferred tax assets. These
factors resulted in an effective tax rate of -1219.0% during the
fourth quarter of 2017, compared to an effective tax rate of 46.9%
during the same quarter last year. The Company is still
evaluating the many aspects of the new tax law and may adjust its
initial estimate throughout 2018 as further information becomes
available.
Net (Loss) EarningsThe above
factors resulted in a net loss of $20.8 million in the fourth
quarter of 2017 as compared with net income of $3.4 million in the
fourth quarter of 2016.
Full Year December 31, 2017
Results
Net SalesNet sales were $491.6
million, down 1.7% from 2016. By geographic segment, Europe was up
by 4.2%, North America was down by 4.3%, and Asia was down by
0.5%. By product group, Magnetic Solutions was up by 3.7%,
Connectivity Solutions was up by 0.9% and Power Solutions and
Protection was down by 9.0%. During 2017, 35% of our sales related
to our Connectivity Solutions products (compared to 34% for the
same period of 2016), 32% 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).
Of the $8.5 million decline in sales in 2017
compared to 2016, $10.1 million was specific to the winding down of
our NPS sales within our Power Solutions business.
Gross ProfitGross profit margin
was 20.8%, up from 20.0% in 2016. The majority of our revenue
growth in 2017 came from our military and aerospace customers
within our Connectivity Solutions group and sales of our ICM
products within our Magnetic Solutions group, both of which carry a
higher margin profile than our power products, which had reduced
sales in 2017. Restructuring efforts taken in 2016 and the
sale of our interest in a joint venture in China earlier in 2017
also contributed to the increase in gross margin. These
favorable items were partially offset by inventory-related charges
totaling $2.0 million.
Selling, General and Administrative
ExpensesSG&A expenses increased to $85.1 million in
2017 compared to $71.0 million in 2016 due to a variety of factors.
Foreign exchange losses of $2.8 million in 2017 compared with
foreign exchange gains of $3.1 million in 2016 resulted in an
unfavorable year-over-year variance of $5.9 million. The
Company’s ERP implementation was ongoing throughout the full year
of 2017, and as a result, consulting costs were $2.2 million higher
than 2016. There was also a benefit for certain value-added
and business tax items of $5.2 million that was recorded in 2016 in
connection with the acquisition of Power Solutions which did not
recur in 2017.
Gain on Sale of PropertiesThe
Company closed on the sale of properties in Hong Kong and San Diego
during 2016, which resulted in pre-tax gains of $3.1
million.
Goodwill and Other Intangible Assets
ImpairmentDuring 2016, we recorded an impairment charge
related to our goodwill and other intangible assets of $106.0
million. This impairment charge did not result in any future cash
expenditures, impact liquidity, affect the ongoing business or
financial performance of our reporting units, or impact compliance
with our debt covenants.
Operating Income
(Loss)Operating income was $16.3 million in 2017 as
compared with an operating loss of $(76.5) million in
2016.
Income TaxesThe provision for
income taxes was $21.5 million in 2017 as compared with a benefit
of $(17.7) million in 2016. The income tax provision in 2017
included an estimated transition tax on foreign earnings of
approximately $16 million and an additional $2 million related to
the revaluation of the Company’s deferred tax assets, both recorded
in connection with the new U.S. tax bill enacted in December
2017. 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.
These factors resulted in an effective tax rate of -223.4% for
2017, compared to an effective tax rate of 21.5% for
2016.
Net LossThe above factors
resulted in a net loss of $11.9 million in 2017 as compared with a
net loss of $64.8 million in 2016.
Balance Sheet DataAs of December 31, 2017,
working capital was $178.8 million, including $69.4 million of cash
and cash equivalents with a current ratio of 3.0-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 December 31, 2017 was
$122.7 million as compared to $141.2 million at December 31, 2016,
reflecting $18.5 million of debt repayments made during
2017.
Conference CallBel has
scheduled a conference call at 11:00 a.m. ET today. To
participate in the conference call, investors should dial
800-239-9838, or 323-794-2551 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 20 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 3213530 after 2:00
p.m. ET, also for 20 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, 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 the impact of the amendment to the
Company’s credit agreement, the possibility of future acquisitions,
the repositioning of the Stewart Connectors business, potential
growth in the Company’s commercial aerospace business, the
potential impact of increased backlog and future operations of the
Company’s Magnetic Solutions group) 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; our ongoing evaluation of the consequences
of the U.S. Tax Cuts and Jobs Act; 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,
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 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 |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
119,940 |
|
|
$ |
118,539 |
|
|
$ |
491,611 |
|
|
$ |
500,153 |
|
Cost of sales |
|
|
97,865 |
|
|
|
93,960 |
|
|
|
389,601 |
|
|
|
400,245 |
|
Gross
profit |
|
|
22,075 |
|
|
|
24,579 |
|
|
|
102,010 |
|
|
|
99,908 |
|
As a % of net
sales |
|
|
18.4 |
% |
|
|
20.7 |
% |
|
|
20.8 |
% |
|
|
20.0 |
% |
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
|
21,209 |
|
|
|
16,000 |
|
|
|
85,067 |
|
|
|
71,005 |
|
As a % of net
sales |
|
|
17.7 |
% |
|
|
13.5 |
% |
|
|
17.3 |
% |
|
|
14.2 |
% |
Impairment of goodwill
and other intangible assets(2) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
105,972 |
|
Loss (gain) on
impairment/sale of property, plant and equipment |
|
|
21 |
|
|
|
(561 |
) |
|
|
297 |
|
|
|
(2,644 |
) |
Restructuring
charges |
|
|
137 |
|
|
|
1,518 |
|
|
|
308 |
|
|
|
2,087 |
|
|
|
|
|
|
|
|
|
|
Income (loss)
from operations |
|
|
708 |
|
|
|
7,622 |
|
|
|
16,338 |
|
|
|
(76,512 |
) |
As a % of net
sales |
|
|
0.6 |
% |
|
|
6.4 |
% |
|
|
3.3 |
% |
|
|
-15.3 |
% |
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(2,326 |
) |
|
|
(1,419 |
) |
|
|
(6,802 |
) |
|
|
(6,662 |
) |
Interest income and
other, net |
|
|
42 |
|
|
|
157 |
|
|
|
107 |
|
|
|
622 |
|
(Loss) earnings
before benefit for income taxes |
|
|
(1,576 |
) |
|
|
6,360 |
|
|
|
9,643 |
|
|
|
(82,552 |
) |
|
|
|
|
|
|
|
|
|
Provision for (benefit
from) income taxes(3) |
|
|
19,211 |
|
|
|
2,983 |
|
|
|
21,540 |
|
|
|
(17,718 |
) |
Effective tax rate |
|
|
-1219.0 |
% |
|
|
46.9 |
% |
|
|
223.4 |
% |
|
|
21.5 |
% |
Net (loss)
earnings available to common stockholders |
|
$ |
(20,787 |
) |
|
$ |
3,377 |
|
|
$ |
(11,897 |
) |
|
$ |
(64,834 |
) |
As a % of net
sales |
|
|
-17.3 |
% |
|
|
2.8 |
% |
|
|
-2.4 |
% |
|
|
-13.0 |
% |
|
|
|
|
|
|
|
|
|
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 |
|
|
9,861 |
|
|
|
9,806 |
|
|
|
9,857 |
|
|
|
9,749 |
|
|
|
|
|
|
|
|
|
|
Net (loss)
earnings per common share: |
|
|
|
|
|
|
|
|
Class A common shares -
basic and diluted |
|
$ |
(1.66 |
) |
|
$ |
0.27 |
|
|
$ |
(0.97 |
) |
|
$ |
(5.25 |
) |
Class B common shares -
basic and diluted |
|
$ |
(1.74 |
) |
|
$ |
0.29 |
|
|
$ |
(0.99 |
) |
|
$ |
(5.48 |
) |
|
|
|
|
|
|
|
|
|
|
(1) The
supplementary information included in this press release for 2017
is preliminary and subject to change prior to the filing of our
upcoming Annual Report on Form 10-K with the Securities and
Exchange Commission. |
|
(2) During
the year ended December 31, 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. |
|
(3) During
the fourth quarter of 2017, we recorded $18.0 million of
incremental tax related to the enactment of the Tax Cuts and Jobs
Act of 2017. This amount consisted of a transition tax on our
foreign earnings and revaluation of our deferred tax assets. |
|
Bel Fuse Inc. |
Supplementary Information(1) |
Condensed Consolidated Balance
Sheets |
(in thousands, unaudited) |
|
|
December 31, |
|
December 31, |
|
|
2017 |
|
2016 |
Assets |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash
equivalents |
|
$ |
69,354 |
|
$ |
73,411 |
Accounts receivable,
net |
|
|
78,808 |
|
|
74,416 |
Inventories |
|
|
107,719 |
|
|
98,871 |
Other current
assets |
|
|
10,218 |
|
|
8,744 |
Total current assets |
|
|
266,099 |
|
|
255,442 |
Property, plant and
equipment, net |
|
|
43,495 |
|
|
48,755 |
Goodwill and other
intangible assets, net |
|
|
89,543 |
|
|
92,779 |
Other assets |
|
|
32,128 |
|
|
29,764 |
Total
assets |
|
$ |
431,265 |
|
$ |
426,740 |
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
|
$ |
47,947 |
|
$ |
47,235 |
Current portion of
long-term debt |
|
|
2,641 |
|
|
11,395 |
Other current
liabilities |
|
|
36,712 |
|
|
33,697 |
Total current liabilities |
|
|
87,300 |
|
|
92,327 |
Long-term debt |
|
|
120,053 |
|
|
129,850 |
Other liabilities |
|
|
65,952 |
|
|
46,129 |
Total liabilities |
|
|
273,305 |
|
|
268,306 |
Stockholders'
equity |
|
|
157,960 |
|
|
158,434 |
Total
liabilities and stockholders' equity |
|
$ |
431,265 |
|
$ |
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 Annual Report on Form 10-K with the Securities and
Exchange Commission. |
|
Bel Fuse Inc. |
Supplementary Information(1) |
Reconciliation of GAAP Net Earnings Available
to Common Stockholders to EBITDA and Adjusted
EBITDA(2) |
(in thousands, unaudited) |
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
GAAP Net earnings (loss) available to common
stockholders |
|
$ |
(20,787 |
) |
|
$ |
3,377 |
|
|
$ |
(11,897 |
) |
|
$ |
(64,834 |
) |
Interest
expense |
|
|
2,326 |
|
|
|
1,419 |
|
|
|
6,802 |
|
|
|
6,662 |
|
Provision
for (benefit from) income taxes |
|
|
19,211 |
|
|
|
2,983 |
|
|
|
21,540 |
|
|
|
(17,718 |
) |
Depreciation and amortization |
|
|
5,006 |
|
|
|
5,409 |
|
|
|
20,718 |
|
|
|
21,778 |
|
EBITDA |
|
$ |
5,756 |
|
|
$ |
13,188 |
|
|
$ |
37,163 |
|
|
$ |
(54,112 |
) |
% of net
sales |
|
|
4.8 |
% |
|
|
11.1 |
% |
|
|
7.6 |
% |
|
|
-10.8 |
% |
|
|
|
|
|
|
|
|
|
Unusual or special items: |
|
|
|
|
|
|
|
|
ERP system implementation consulting costs |
|
|
1,073 |
|
|
|
- |
|
|
|
2,556 |
|
|
|
371 |
|
Professional fees related to legal entity restructuring |
|
|
150 |
|
|
|
- |
|
|
|
350 |
|
|
|
- |
|
Restructuring charges |
|
|
137 |
|
|
|
1,518 |
|
|
|
308 |
|
|
|
2,087 |
|
Acquisition related costs and settlements |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,993 |
) |
Gain on sale of properties |
|
|
- |
|
|
|
(985 |
) |
|
|
- |
|
|
|
(3,092 |
) |
Impairment of goodwill and other intangible assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
105,972 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
7,116 |
|
|
$ |
13,721 |
|
|
$ |
40,377 |
|
|
$ |
46,233 |
|
% of net
sales |
|
|
5.9 |
% |
|
|
11.6 |
% |
|
|
8.2 |
% |
|
|
9.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The
supplementary information included in this press release for 2017
is preliminary and subject to change prior to the filing of our
upcoming Annual Report on Form 10-K with the Securities and
Exchange Commission. |
|
(2) In
this press release and supplemental information, we have included
Non-GAAP financial measures, including 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 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 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 ("EPS") and the line
items these items were included on the condensed consolidated
statements of operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
2017 |
|
Three Months Ended December 31,
2016 |
Reconciling Items |
|
Earnings (loss)before taxes |
|
Provisionfor incometaxes |
|
Netearnings |
|
Class AEPS |
|
Class BEPS |
|
Earnings(loss)beforetaxes |
|
Benefitfromincometaxes |
|
Netearnings |
|
Class AEPS |
|
Class BEPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
measures |
|
$ |
(1,576 |
) |
|
$ |
19,211 |
|
|
$ |
(20,787 |
) |
|
$ |
(1.66 |
) |
|
$ |
(1.74 |
) |
|
$ |
6,360 |
|
|
$ |
2,983 |
|
|
$ |
3,377 |
|
|
$ |
0.27 |
|
|
$ |
0.29 |
|
Items included in
SG&A expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ERP
system implementation consulting costs |
|
|
1,073 |
|
|
|
333 |
|
|
|
740 |
|
|
|
0.06 |
|
|
|
0.06 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Professional fees related to legal entity restructuring |
|
|
150 |
|
|
|
57 |
|
|
|
93 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Gain on sale of San
Diego property |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(985 |
) |
|
|
(374 |
) |
|
|
(611 |
) |
|
|
(0.05 |
) |
|
|
(0.05 |
) |
Restructuring
charges |
|
|
137 |
|
|
|
27 |
|
|
|
110 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
1,518 |
|
|
|
401 |
|
|
|
1,117 |
|
|
|
0.09 |
|
|
|
0.09 |
|
Writeoff of deferred
financing costs related to debt extinguishment |
|
|
1,031 |
|
|
|
392 |
|
|
|
639 |
|
|
|
0.05 |
|
|
|
0.05 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
Items included in
income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact
from tax reform bill (transition tax and revaluation of deferred
tax assets) |
|
|
- |
|
|
|
(18,043 |
) |
|
|
18,043 |
|
|
|
1.44 |
|
|
|
1.51 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
Non-GAAP
measures |
|
$ |
815 |
|
|
$ |
1,977 |
|
|
$ |
(1,162 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.10 |
) |
|
$ |
6,893 |
|
|
$ |
3,010 |
|
|
$ |
3,883 |
|
|
$ |
0.31 |
|
|
$ |
0.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2017 |
|
Year Ended December 31, 2016 |
Reconciling Items |
|
Earnings (loss)before taxes |
|
Provisionfor incometaxes |
|
Netearnings |
|
Class AEPS |
|
Class BEPS |
|
Earnings(loss)beforetaxes |
|
Benefitfromincometaxes |
|
Net loss |
|
Class AEPS |
|
Class BEPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
measures |
|
$ |
9,643 |
|
|
$ |
21,540 |
|
|
$ |
(11,897 |
) |
|
$ |
(0.97 |
) |
|
$ |
(0.99 |
) |
|
$ |
(82,552 |
) |
|
$ |
(17,718 |
) |
|
$ |
(64,834 |
) |
|
$ |
(5.25 |
) |
|
$ |
(5.48 |
) |
Items included in
SG&A expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ERP
system assessment costs |
|
|
2,556 |
|
|
|
795 |
|
|
|
1,761 |
|
|
|
0.14 |
|
|
|
0.15 |
|
|
|
371 |
|
|
|
96 |
|
|
|
275 |
|
|
|
0.02 |
|
|
|
0.02 |
|
Professional fees related to legal entity restructuring |
|
|
350 |
|
|
|
133 |
|
|
|
217 |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Acquisition related costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
162 |
|
|
|
61 |
|
|
|
101 |
|
|
|
0.01 |
|
|
|
0.01 |
|
Power
Solutions acquisition related items and settlements |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(5,155 |
) |
|
|
(780 |
) |
|
|
(4,375 |
) |
|
|
(0.35 |
) |
|
|
(0.37 |
) |
Gain on sale of Hong
Kong and San Diego properties |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,092 |
) |
|
|
(374 |
) |
|
|
(2,718 |
) |
|
|
(0.22 |
) |
|
|
(0.23 |
) |
Restructuring
charges |
|
|
308 |
|
|
|
71 |
|
|
|
237 |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
|
2,087 |
|
|
|
607 |
|
|
|
1,480 |
|
|
|
0.12 |
|
|
|
0.13 |
|
Impairment of goodwill
and other intangible assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
105,972 |
|
|
|
4,385 |
|
|
|
101,587 |
|
|
|
8.18 |
|
|
|
8.59 |
|
Writeoff of deferred
financing costs related to debt extinguishment |
|
|
1,031 |
|
|
|
392 |
|
|
|
639 |
|
|
|
0.05 |
|
|
|
0.05 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Items included in
income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact
from tax reform bill (transition tax and revaluation of deferred
tax assets) |
|
|
- |
|
|
|
(18,043 |
) |
|
|
18,043 |
|
|
|
1.44 |
|
|
|
1.51 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
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 |
) |
|
|
(1.11 |
) |
|
|
(1.17 |
) |
Non-GAAP
measures |
|
$ |
13,888 |
|
|
$ |
2,580 |
|
|
$ |
11,308 |
|
|
$ |
0.88 |
|
|
$ |
0.95 |
|
|
$ |
17,793 |
|
|
$ |
86 |
|
|
$ |
17,707 |
|
|
$ |
1.40 |
|
|
$ |
1.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Contact:Darrow Associatestel
516.419.9915pseltzberg@darrowir.com |
|
Company Contact:Daniel
BernsteinPresidentir@belf.com |
|
|
|
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