Bel Fuse Inc. (Nasdaq: BELFA and BELFB), a
designer, manufacturer and provider of products that power, protect
and connect electronic circuits, today announced preliminary
financial results for the first quarter of 2021.
First Quarter 2021
Highlights
- Net sales of $110.6 million represent a 6.4% increase from
$104.0 million in last year's first quarter
- Gross profit of $24.3 million, or 21.9% of net sales, compared
to $25.8 million, or 24.8% of net sales in Q1-20
- GAAP net earnings of $3.2 million (leading to GAAP EPS of $0.24
per Class A share and $0.26 per Class B share) versus GAAP net loss
of $(3.8) million in Q1-20 (GAAP net loss per share of $(0.30) per
Class A share and $(0.31) per Class B share)
- Sale of Hong Kong property resulted in $6.2 million gain in
Q1-21 which contributed to improved net earnings in Q1-21
- Adjusted EBITDA of $3.1 compared to $1.2 million in Q1-20
Daniel Bernstein, President and CEO, said,
“Strength in orders throughout each of our product groups
contributed to a 6% increase in sales compared to last year’s first
quarter and a record backlog level of $234 million as of the end of
the quarter. The sale of a property in Hong Kong contributed
a $6.2 million gain, leading to improved net earnings and EPS
versus last year’s first quarter.
“Continued improvement in Bel’s Power Solutions and Protection
segment was led by an increase in CUI sales of $2.1 million (26%),
a $1.6 million (61%) increase in fuse sales, and a $1.5 million
(100%) increase in sales of product going into the eMobility end
market. Bel also closed on its acquisition of EOS Power on
March 31st, and we anticipate EOS to be accretive to our results
beginning in the second quarter of 2021.
“Our Connectivity Solutions business is
progressing as planned with the integration of its acquisition of
rms Connector in January 2021. Rms was accretive to Bel’s
results, contributing $2.1 million of sales and $411,000 of net
earnings in the first quarter of 2021. The Connectivity group
also saw a partial recovery in commercial aerospace sales during
the first quarter, with sales into this end market increasing $1.2
million (57%) sequentially from the fourth quarter of
2020.
“Bel’s Magnetic Solutions group continued to
have strong bookings in the first quarter, and we anticipate the
increase in demand from recent quarters to translate into higher
sales for this group during the second and third quarters of
2021.
“Looking ahead, our backlog of orders continues
to grow, and reached $264 million by the end of April. While
our scheduled shipments are indicative of stronger sales in
the second and third quarters, raw material shortages and long lead
times on some semiconductors and certain other raw materials may
impact the ultimate timing of those shipments. We have been
managing the situation to date and have extended our own lead times
to customers in response, and anticipate material availability and
extended lead times being a factor for the foreseeable
future. Positive contributions to net earnings are expected
from the recent acquisitions of rms and EOS, coupled with cost
savings from the 2020 restructuring efforts, and we will continue
to pursue opportunities to optimize our cost structure and mitigate
the impacts of higher input costs throughout the year,” concluded
Mr. Bernstein.
Non-GAAP financial measures, such as Non-GAAP
net earnings, Non-GAAP EPS, EBITDA and Adjusted EBITDA, exclude the
impact of acquisition-related costs, restructuring charges and
gain on sale of property. Please refer to the financial information
included with this press release for reconciliations of GAAP
financial measures to Non-GAAP financial measures and our
explanation of why we present Non-GAAP financial measures.
Conference CallBel has
scheduled a conference call at 11:00 a.m. ET today. To
participate in the conference call, investors should dial
866-248-8441, or 323-289-6576 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 2660531 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, medical, 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
StatementsNon-historical information contained in this
press release (including the statements regarding the anticipated
impact of the acquired EOS Power business on our results,
anticipated higher sales for our Magnetic Solutions group during
the second and third quarters as a result of strong bookings in the
first quarter, expectations regarding our scheduled backlog as an
indicator of stronger sales in the second and third quarters,
expected contributions to net earnings from our rms and EOS
acquisitions and cost savings from restructuring efforts, and our
efforts to continue to optimize our cost structure) 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 impact of public health crises (such as the
governmental, social and economic effects of COVID-19); the effects
of business and economic conditions; difficulties associated with
integrating previously 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; the impact of changes to U.S. trade and
tariff policies; 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 net
earnings, Non-GAAP EPS, EBITDA and Adjusted EBITDA) are not
measures of performance under accounting principles generally
accepted in the United States of America ("GAAP"). These
measures should not be considered a substitute for, and the reader
should also consider, income from operations, net earnings,
earnings per share and other measures of performance as defined by
GAAP as indicators of our performance or profitability. Our
Non-GAAP measures may not be comparable to other similarly-titled
captions of other companies due to differences in the method of
calculation. We present results adjusted to exclude the
effects of certain unusual or special items and their related tax
impact that would otherwise be included under U.S. GAAP, to aid in
comparisons with other periods. We 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 |
|
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
110,643 |
|
|
$ |
103,978 |
|
Cost of sales |
|
|
86,384 |
|
|
|
78,220 |
|
Gross
profit |
|
|
24,259 |
|
|
|
25,758 |
|
As a % of net sales |
|
|
21.9 |
% |
|
|
24.8 |
% |
|
|
|
|
|
|
|
|
|
Research and development
costs |
|
|
4,986 |
|
|
|
6,059 |
|
Selling, general and
administrative expenses |
|
|
20,995 |
|
|
|
20,690 |
|
As a % of net sales |
|
|
19.0 |
% |
|
|
19.9 |
% |
Restructuring charges |
|
|
- |
|
|
|
128 |
|
Gain on sale of property |
|
|
(6,175 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
|
|
4,453 |
|
|
|
(1,119 |
) |
As a % of net sales |
|
|
4.0 |
% |
|
|
-1.1 |
% |
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(801 |
) |
|
|
(1,351 |
) |
Other income/expense, net |
|
|
546 |
|
|
|
(2,106 |
) |
Earnings (loss) before
income taxes |
|
|
4,198 |
|
|
|
(4,576 |
) |
|
|
|
|
|
|
|
|
|
Provision for (benefit from)
income taxes |
|
|
999 |
|
|
|
(772 |
) |
Effective tax rate |
|
|
23.8 |
% |
|
|
16.9 |
% |
Net earnings
(loss) |
|
$ |
3,199 |
|
|
$ |
(3,804 |
) |
As a % of net sales |
|
|
2.9 |
% |
|
|
-3.7 |
% |
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding: |
|
|
|
|
|
|
|
|
Class A common shares - basic
and diluted |
|
|
2,145 |
|
|
|
2,145 |
|
Class B common shares - basic
and diluted |
|
|
10,203 |
|
|
|
10,123 |
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
per common share: |
|
|
|
|
|
|
|
|
Class A common shares - basic
and diluted |
|
$ |
0.24 |
|
|
$ |
(0.30 |
) |
Class B common shares - basic
and diluted |
|
$ |
0.26 |
|
|
$ |
(0.31 |
) |
|
(1) The
supplementary information included in this press release for 2021
is preliminary and subject to change prior to the filing of our
upcoming Quarterly Report on Form 10-Q with the Securities and
Exchange Commission. |
|
|
Bel Fuse Inc. |
Supplementary Information(1) |
Condensed Consolidated Balance Sheets |
(in thousands, unaudited) |
|
|
|
March 31, 2021 |
|
|
December 31, 2020 |
|
Assets |
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
74,040 |
|
|
$ |
84,939 |
|
Accounts receivable, net |
|
|
74,070 |
|
|
|
71,372 |
|
Inventories |
|
|
106,737 |
|
|
|
100,133 |
|
Other current assets |
|
|
24,513 |
|
|
|
23,771 |
|
Total current assets |
|
|
279,360 |
|
|
|
280,216 |
|
Property, plant and equipment,
net |
|
|
37,865 |
|
|
|
34,501 |
|
Right-of-use assets |
|
|
12,615 |
|
|
|
14,217 |
|
Goodwill and other intangible
assets, net |
|
|
89,664 |
|
|
|
89,755 |
|
Other assets |
|
|
35,643 |
|
|
|
35,177 |
|
Total
assets |
|
$ |
455,146 |
|
|
$ |
453,866 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
42,452 |
|
|
$ |
39,774 |
|
Current portion of long-term
debt |
|
|
6,779 |
|
|
|
5,286 |
|
Operating lease liability,
current |
|
|
6,409 |
|
|
|
6,591 |
|
Other current liabilities |
|
|
34,055 |
|
|
|
35,885 |
|
Total current liabilities |
|
|
89,695 |
|
|
|
87,536 |
|
Long-term debt |
|
|
107,472 |
|
|
|
110,294 |
|
Operating lease liability,
long-term |
|
|
6,532 |
|
|
|
8,064 |
|
Other liabilities |
|
|
65,124 |
|
|
|
62,173 |
|
Total liabilities |
|
|
268,823 |
|
|
|
268,067 |
|
Stockholders' equity |
|
|
186,323 |
|
|
|
185,799 |
|
Total liabilities and
stockholders' equity |
|
$ |
455,146 |
|
|
$ |
453,866 |
|
|
(1) The
supplementary information included in this press release for 2021
is preliminary and subject to change prior to the filing of our
upcoming Quarterly Report on Form 10-Q with the Securities and
Exchange Commission. |
|
|
Bel Fuse Inc. |
Supplementary Information(1) |
Reconciliation of GAAP Net Earnings to EBITDA and Adjusted
EBITDA(2) |
(in thousands, unaudited) |
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
GAAP Net earnings
(loss) |
|
$ |
3,199 |
|
|
$ |
(3,804 |
) |
Interest expense |
|
|
801 |
|
|
|
1,351 |
|
Provision for (benefit from)
income taxes |
|
|
999 |
|
|
|
(772 |
) |
Depreciation and
amortization |
|
|
4,145 |
|
|
|
4,126 |
|
EBITDA |
|
$ |
9,144 |
|
|
$ |
901 |
|
% of net sales |
|
|
8.3 |
% |
|
|
0.9 |
% |
|
|
|
|
|
|
|
|
|
Unusual or special
items: |
|
|
|
|
|
|
|
|
Gain on sale of property |
|
|
(6,175 |
) |
|
|
- |
|
Restructuring charges |
|
|
- |
|
|
|
128 |
|
Acquisition-related costs |
|
|
166 |
|
|
|
186 |
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
$ |
3,135 |
|
|
$ |
1,215 |
|
% of net sales |
|
|
2.8 |
% |
|
|
1.2 |
% |
|
(1) The
supplementary information included in this press release for 2021
is preliminary and subject to change prior to the filing of our
upcoming Quarterly Report on Form 10-Q with the Securities and
Exchange Commission. |
(2) In this press
release and supplemental information, we have included Non-GAAP
financial measures, including Non-GAAP net earnings, Non-GAAP EPS,
EBITDA and Adjusted EBITDA. We present results adjusted to exclude
the effects of certain specified items and their related tax impact
that would otherwise be included under GAAP, to aid in comparisons
with other periods. We may use Non-GAAP financial measures to
determine performance-based compensation and management believes
that this information may be useful to investors. |
|
|
Bel Fuse Inc. |
Supplementary Information(1) |
Reconciliation of GAAP Measures to Non-GAAP
Measures(2) |
(in thousands (except per share amounts),
unaudited) |
|
The
following tables detail the impact that certain unusual or special
items had on the Company's net earnings per common Class A and
Class B basic and diluted shares ("EPS") and the line items in
which these items were included in the condensed consolidated
statements of operations. |
|
|
|
Three Months Ended March 31, 2021 |
|
|
Three Months Ended March 31, 2020 |
|
Reconciling Items |
|
Earnings (loss) before taxes |
|
|
Provision for income taxes |
|
|
Net earnings (loss) |
|
|
Class A EPS(3) |
|
|
Class B EPS(3) |
|
|
(Loss) earnings before taxes |
|
|
(Benefit from) provision for income taxes |
|
|
Net (loss) earnings |
|
|
Class A EPS(3) |
|
|
Class B EPS(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP measures |
|
$ |
4,198 |
|
|
$ |
999 |
|
|
$ |
3,199 |
|
|
$ |
0.24 |
|
|
$ |
0.26 |
|
|
$ |
(4,576 |
) |
|
$ |
(772 |
) |
|
$ |
(3,804 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.31 |
) |
Items included in
SG&A expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
costs |
|
|
166 |
|
|
|
38 |
|
|
|
128 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
186 |
|
|
|
43 |
|
|
|
143 |
|
|
|
0.01 |
|
|
|
0.01 |
|
Gain on sale of
property |
|
|
(6,175 |
) |
|
|
- |
|
|
|
(6,175 |
) |
|
|
(0.48 |
) |
|
|
(0.50 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Restructuring
charges |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
128 |
|
|
|
29 |
|
|
|
99 |
|
|
|
0.01 |
|
|
|
0.01 |
|
Non-GAAP
measures |
|
$ |
(1,811 |
) |
|
$ |
1,037 |
|
|
$ |
(2,848 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.23 |
) |
|
$ |
(4,262 |
) |
|
$ |
(700 |
) |
|
$ |
(3,562 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.29 |
) |
|
(1)
The supplementary information included in this press release for
2021 is preliminary and subject to change prior to the filing of
our upcoming Quarterly Report on Form 10-Q with the Securities and
Exchange Commission. |
(2) In
this press release and supplemental information, we have included
Non-GAAP financial measures, including Non-GAAP net earnings,
Non-GAAP EPS, EBITDA and Adjusted EBITDA. We present results
adjusted to exclude the effects of certain specified items and
their related tax impact that would otherwise be included under
GAAP, to aid in comparisons with other periods. We may use Non-GAAP
financial measures to determine performance-based compensation and
management believes that this information may be useful to
investors. |
(3)
Individual amounts of earnings per share may not agree to the total
due to rounding. |
|
|
|
Investor
Contact:Darrow Associatestel
516.419.9915pseltzberg@darrowir.com |
Company Contact:Daniel
BernsteinPresidentir@belf.com |
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