0000889331falseLITTELFUSE INC /DE00008893312024-01-302024-01-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20579
 
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Date of Report: January 30, 2024
(Date of earliest event reported)
 
LITTELFUSE, INC.
(Exact name of registrant as specified in its charter)
Delaware0-2038836-3795742
(State of other jurisdiction
of incorporation)		(Commission
File Number)		(IRS Employer
Identification No.)
 
8755 W. Higgins Road, Suite 500, Chicago, IL 60631
(Address of principal executive offices) (Zip Code)
 
Registrant’s telephone number, including area code: (773) 628-1000
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of exchange on which registered
Common Stock, par value $0.01 per shareLFUSNASDAQ Global Select Market

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

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



Item 2.02Results of Operations and Financial Condition
 
The information contained within Item 2.02 of this Form 8-K and the Exhibits attached hereto shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
 
On January 30, 2024, Littelfuse, Inc. (the “Company”) issued a press release announcing the results of its operations for the quarter and full year ended December 30, 2023. A copy of the press release is attached as Exhibit 99.1 to this Form 8-K and incorporated by reference to this Item 2.02 as if fully set forth herein. A copy of the press release will also be available on the Company’s website.

Item 7.01Regulation FD Disclosure

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

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

Item 9.01Financial Statements and Exhibits.

(d)Exhibits
The following exhibits are furnished with this Form 8-K:
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)


 
 







Signature
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
 Littelfuse, Inc.
  
  
Date: January 30, 2024
By: /s/ Meenal A. Sethna
 Meenal A. Sethna
Executive Vice President and Chief Financial Officer



Exhibit 99.1
lfuslogo2.jpg
lfuselogo1.jpg
FOR IMMEDIATE RELEASE
David L. Kelley
224-727-2535
dkelley@littelfuse.com

LITTELFUSE REPORTS FOURTH QUARTER AND FULL YEAR RESULTS FOR 2023
Record annual free cash flow driven by a diversified and resilient business model

CHICAGO, January 30, 2024 - Littelfuse, Inc. (NASDAQ: LFUS), a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world, today reported financial results for the fourth quarter and full year ended December 30, 2023:

Fourth Quarter 2023 Results

•Net sales of $533.8 million were down 13% versus the prior year period, and down 14.5% organically
•GAAP diluted EPS was $1.71; adjusted diluted EPS was $2.02
•Cash flow from operations was $144 million and free cash flow was $121 million

Full Year 2023 Results

•Net sales of $2.4 billion were down 6% versus the prior year period, and down 10.3% organically
•GAAP diluted EPS was $10.34; adjusted diluted EPS was $11.74
•Cash flow from operations was $457 million and free cash flow was $371 million, both records for the company

“Our fourth quarter results tracked within our guidance range as we continued to execute on our long-term strategy,” said Dave Heinzmann, Littelfuse President and Chief Executive Officer. “In 2023, our global teams focused on driving sustainable growth and profitability while delivering record free cash flow and resilient margins despite continued inventory destocking and variable end market demand. Looking forward, we expect a return to growth during 2024 and believe our portfolio diversification and optimization efforts, strong technology offering across end markets and well positioned cost structure, will drive continued and long-term top-tier value for our stakeholders.”

First Quarter of 2024*

Based on current market conditions, for the first quarter the company expects,
•Net sales in the range of $505 to $530 million, adjusted diluted EPS in the range of $1.65 to $1.85 and an adjusted effective tax rate of approximately 20.5%



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

Dividend
•The company will pay a cash dividend on its common stock of $0.65 per share on March 7, 2024, to shareholders of record as of February 22, 2024

Conference Call and Webcast Information
Littelfuse will host a conference call on Wednesday, January 31, 2024, at 9:00 a.m. Central Time to discuss the results. The call will be broadcast and available for replay at Littelfuse.com. A slide presentation is available in the Investor Relations section of the company’s website at Littelfuse.com.

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

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



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Further discussion of the risk factors of the company can be found under the caption "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2022, and in other filings and submissions with the SEC, each of which are available free of charge on the company’s investor relations website at investor.littelfuse.com and on the SEC’s website at www.sec.gov. These forward-looking statements are made as of the date hereof. The company does not undertake any obligation to update, amend or clarify these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the availability of new information.

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

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

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



LFUS-F




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

Page 4

LITTELFUSE, INC.
CONSOLIDATED BALANCE SHEETS
 
(in thousands)December 30, 2023December 31, 2022
(Unaudited)
ASSETS  
Current assets:  
Cash and cash equivalents$555,513 $562,588 
Short-term investments235 84 
Trade receivables, less allowances of $84,696 and $83,562, respectively287,018 306,578 
Inventories474,607 547,690 
Prepaid income taxes and income taxes receivable8,701 7,215 
Prepaid expenses and other current assets82,526 87,641 
Total current assets1,408,600 1,511,796 
Net property, plant, and equipment493,153 481,110 
Intangible assets, net of amortization606,136 593,970 
Goodwill1,309,998 1,186,922 
Investments24,821 24,121 
Deferred income taxes10,486 14,367 
Right of use lease assets, net62,370 57,382 
Other assets79,711 34,066 
Total assets$3,995,275 $3,903,734 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$173,535 $208,571 
Accrued liabilities149,214 187,057 
Accrued income taxes38,725 41,793 
Current portion of long-term debt14,020 134,874 
Total current liabilities375,494 572,295 
Long-term debt, less current portion857,915 866,623 
Deferred income taxes110,820 100,230 
Accrued post-retirement benefits34,422 28,037 
Non-current lease liabilities49,472 45,661 
Other long-term liabilities86,671 79,510 
Total equity2,480,481 2,211,378 
Total liabilities and equity$3,995,275 $3,903,734 


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LITTELFUSE, INC.
CONSOLIDATED STATEMENTS OF NET INCOME
(Unaudited)
 Three Months EndedFiscal Year Ended
(in thousands, except per share data)December 30, 2023December 31, 2022December 30, 2023December 31, 2022
Net sales$533,807 $613,251 $2,362,657 $2,513,897 
Cost of sales340,226 384,726 1,462,416 1,506,984 
Gross profit193,581 228,525 900,241 1,006,913 
Selling, general, and administrative expenses84,598 85,993 354,655 344,813 
Research and development expenses25,159 26,806 102,429 95,602 
Amortization of intangibles16,021 15,812 65,794 55,695 
Restructuring, impairment, and other charges3,280 5,712 16,501 9,977 
Total operating expenses129,058 134,323 539,379 506,087 
Operating income64,523 94,202 360,862 500,826 
Interest expense10,063 9,147 39,866 26,216 
Foreign exchange loss (gain)3,602 (15,692)12,299 24,359 
Other (income) expense, net(8,091)(2,582)(19,901)7,207 
Income before income taxes58,949 103,329 328,598 443,044 
Income taxes16,068 10,025 69,113 69,738 
Net income$42,881 $93,304 $259,485 $373,306 
Income per share:
Basic$1.72 $3.77 $10.44 $15.09 
Diluted$1.71 $3.74 $10.34 $14.94 
Weighted-average shares and equivalent shares outstanding:
Basic24,905 24,758 24,854 24,734 
Diluted25,111 24,978 25,102 24,986 
Comprehensive income$86,590 $139,811 $299,432 $351,005 



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LITTELFUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 Year Ended
(in thousands)December 30, 2023December 31, 2022
OPERATING ACTIVITIES  
Net income$259,485 $373,306 
Adjustments to reconcile net income to net cash provided by operating activities173,776 188,871 
Changes in operating assets and liabilities:
Trade receivables24,517 (19,334)
Inventories82,471 (89,235)
Accounts payable(36,277)(22,403)
Accrued liabilities and income taxes(61,022)(9,495)
Prepaid expenses and other assets14,437 (1,992)
Net cash provided by operating activities457,387 419,718 
INVESTING ACTIVITIES
Acquisitions of businesses, net of cash acquired(198,810)(532,670)
Purchases of property, plant, and equipment(86,188)(104,341)
Net proceeds from sale of property, plant, and equipment832 676 
Other(151)(62)
Net cash used in investing activities(284,317)(636,397)
FINANCING ACTIVITIES
Net (payments) proceeds of credit facility and senior notes(128,802)371,250 
Cash dividends paid(62,161)(55,911)
All other cash provided by (used in) financing activities5,237 (5,137)
Net cash (used in) provided by financing activities(185,726)310,202 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash4,840 (11,420)
(Decrease) increase in cash, cash equivalents, and restricted cash(7,816)82,103 
Cash, cash equivalents, and restricted cash at beginning of period564,939 482,836 
Cash, cash equivalents, and restricted cash at end of period$557,123 $564,939 


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LITTELFUSE, INC.
NET SALES AND OPERATING INCOME BY SEGMENT
(Unaudited)
 Fourth QuarterYear-to-Date
(in thousands)20232022%
(Decline) / Growth		20232022%
(Decline) / Growth
Net sales
Electronics$297,753 $371,193 (19.8)%$1,350,426 $1,492,819 (9.5)%
Transportation162,570 167,874 (3.2)%678,278 716,140 (5.3)%
Industrial73,484 74,184 (0.9)%333,953 304,938 9.5 %
Total net sales$533,807 $613,251 (13.0)%$2,362,657 $2,513,897 (6.0)%
Operating income
Electronics$53,553 $91,941 (41.8)%$300,581 $431,616 (30.4)%
Transportation7,619 5,935 28.4 %33,634 63,539 (47.1)%
Industrial9,350 8,885 5.2 %54,800 48,853 12.2 %
Other (a)(5,999)(12,559)N.M.(28,153)(43,182)N.M.
Total operating income$64,523 $94,202 (31.5)%$360,862 $500,826 (27.9)%
Operating Margin12.1 %15.4 %15.3 %19.9 %
Interest expense10,063 9,147 39,866 26,216 
Foreign exchange loss (gain)3,602 (15,692)12,299 24,359 
Other (income) expense, net(8,091)(2,582)(19,901)7,207 
Income before income taxes$58,949 $103,329 (43.0)%$328,598 $443,044 (25.8)%


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

N.M. - Not meaningful
 Fourth QuarterYear-to-Date
(in thousands)20232022%
(Decline) / Growth		20232022%
(Decline) / Growth
Operating Margin
Electronics18.0 %24.8 %(6.8)%22.3 %28.9 %(6.6)%
Transportation4.7 %3.5 %1.2 %5.0 %8.9 %(3.9)%
Industrial12.7 %12.0 %0.7 %16.4 %16.0 %0.4 %



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LITTELFUSE, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(In millions of USD except per share amounts - unaudited)

Non-GAAP EPS reconciliation
Q4-23Q4-22YTD-23YTD-22
GAAP diluted EPS$1.71 $3.74 $10.34 $14.94 
EPS impact of Non-GAAP adjustments (below)0.31 (0.40)1.40 1.93 
Adjusted diluted EPS$2.02 $3.34 $11.74 $16.87 
Non-GAAP adjustments - (income) / expense
Q4-23Q4-22YTD-23YTD-22
Acquisition-related and integration costs (a)$2.7 $2.8 $11.7 $17.6 
Purchase accounting inventory adjustments (b)— 4.0 — 15.6 
Restructuring, impairment and other charges (c)3.3 5.7 16.5 10.0 
Non-GAAP adjustments to operating income6.0 12.5 28.2 43.2 
Other income, net (d)— — (0.2)(0.5)
Non-operating foreign exchange loss (gain)3.6 (15.7)12.3 24.4 
Non-GAAP adjustments to income before income taxes9.6 (3.2)40.3 67.1 
Income taxes (e)1.8 6.8 5.0 19.0 
Non-GAAP adjustments to net income$7.8 $(10.0)$35.3 $48.1 
Total EPS impact$0.31 $(0.40)$1.40 $1.93 
Adjusted operating margin / Adjusted EBITDA reconciliation
Q4-23Q4-22YTD-23YTD-22
Net income$42.9 $93.3 $259.5 $373.3 
Add:
Income taxes16.1 10.0 69.1 69.7 
Interest expense10.1 9.1 39.9 26.2 
Foreign exchange loss (gain)3.6 (15.7)12.3 24.4 
Other (income) expense, net(8.1)(2.6)(19.9)7.2 
GAAP operating income$64.5 $94.2 $360.9 $500.8 
Non-GAAP adjustments to operating income6.0 12.5 28.2 43.2 
Adjusted operating income$70.5 $106.7 $389.0 $544.0 
Amortization of intangibles16.0 15.8 65.8 55.7 
Depreciation expenses18.1 16.7 71.6 65.0 
Adjusted EBITDA$104.6 $139.2 $526.4 $664.7 
Net sales$533.8 $613.3 $2,362.7 $2,513.9 
Net income as a percentage of net sales8.0 %15.2 %11.0 %14.8 %
Operating margin12.1 %15.4 %15.3 %19.9 %
Adjusted operating margin13.2 %17.4 %16.5 %21.6 %
Adjusted EBITDA margin19.6 %22.7 %22.3 %26.4 %

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Adjusted EBITDA by SegmentQ4-23Q4-22
ElectronicsTransportationIndustrialElectronicsTransportationIndustrial
GAAP operating income$53.6 $7.6 $9.4 $91.9 $5.9 $8.9 
Add:
Add back amortization9.8 3.6 2.6 10.2 4.4 1.2 
Add back depreciation10.3 6.4 1.4 9.0 6.7 1.0 
Adjusted EBITDA$73.7 $17.6 $13.4 $111.1 $17.0 $11.1 
Adjusted EBITDA Margin24.7 %10.8 %18.2 %29.9 %10.1 %14.9 %
Adjusted EBITDA by SegmentYTD-23YTD-22
ElectronicsTransportationIndustrialElectronicsTransportationIndustrial
GAAP operating income$300.6 $33.6 $54.8 $431.6 $63.5 $48.9 
Add:
Add back amortization39.9 15.8 10.1 $32.7 $18.1 $4.9 
Add back depreciation39.5 26.7 5.4 $35.5 $25.6 $3.9 
Adjusted EBITDA$379.9 $76.1 $70.4 $499.8 $107.2 $57.7 
Adjusted EBITDA Margin28.1 %11.2 %21.1 %33.5 %15.0 %18.9 %

Net sales reconciliationQ4-23 vs. Q4-22
ElectronicsTransportationIndustrialTotal
Net sales decline(20)%(3)%(1)%(13)%
Less:
Acquisitions— %— %4 %— %
FX impact1 %2 %— %1 %
Organic net sales growth(21)%(5)%(5)%(14)%
Net sales reconciliationYTD-23 vs. YTD-22
ElectronicsTransportationIndustrialTotal
Net sales (decline) growth(10)%(5)%10 %(6)%
Less:
Acquisitions6 %— %4 %4 %
FX impact— %— %1 %— %
Organic net sales (decline) growth(16)%(5)%5 %(10)%

Income tax reconciliation
Q4-23Q4-22YTD-23YTD-22
Income taxes$16.1 $10.0 $69.1 $69.7 
Effective rate27.3 %9.7 %21.0 %15.7 %
Non-GAAP adjustments - income taxes1.8 6.8 5.0 19.0 
Adjusted income taxes$17.9 $16.8 $74.1 $88.7 
Adjusted effective rate26.1 %16.8 %20.1 %17.4 %

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Free cash flow reconciliation
Q4-23Q4-22YTD-23YTD-22
Net cash provided by operating activities$144.2 $106.3 $457.4 $419.7 
Less: Purchases of property, plant and equipment(23.0)(26.5)(86.2)(104.3)
Free cash flow$121.2 $79.8 $371.2 $315.4 

Consolidated Total DebtAs of December 30, 2023
Consolidated Total Debt$871.9 
Unamortized debt issuance costs3.8 
Finance lease liability$0.7 
Consolidated funded indebtedness$876.4 
Cash held in U.S. (up to $400 million)$178.6 
Net debt$697.8 
Consolidated EBITDATwelve Months Ended
December 30, 2023
Net Income$259.4 
Interest expense39.9 
Income taxes69.1 
Depreciation71.6 
Amortization65.8 
Non-cash additions:
Stock-based compensation expense23.9 
Unrealized loss on investments0.3 
Impairment charges4.9 
Other13.4 
Consolidated EBITDA (1)$548.3 
Consolidated Net Leverage Ratio (as defined in the Credit Agreement) *1.3x
* Our Credit Agreement and Private Placement Note with maturities ranging from 2023 to 2032, contain financial ratio covenants providing that if, as of the last day of each fiscal quarter, the Consolidated Net Leverage ratio at such time for the then most recently concluded period of four consecutive fiscal quarters of the Company exceeds 3.50:1.00, an Event of Default (as defined in the Credit Agreement and Private Placement Senior Notes) is triggered.

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

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

Note: Total will not always foot due to rounding.

(a) reflected in selling, general and administrative expenses ("SG&A").
(b) reflected in cost of sales.
(c) reflected in restructuring, impairment and other charges.
(d) 2023 year-to-date amount included $0.2 million gain from the sale of a building within the Electronics segment. 2022 year-to-date amount included $0.5 million gain from the sale of a building within the Transportation segment.
(e) reflected the tax impact associated with the non-GAAP adjustments, and 2022 year-to-date amount includes the one-time net benefit of $11 million that resulted from losses on investments in the stock of two of the Company’s affiliates.

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1 Q4 2023 EARNINGS RELEASE January 30, 2024

 
2Littelfuse, Inc. © 2024 Important Information About Littelfuse, Inc. This presentation does not constitute or form part of, and should not be construed as, an offer or solicitation to purchase or sell securities of Littelfuse, Inc. and no investment decision should be made based upon the information provided herein. Littelfuse strongly urges you to review its filings with the Securities and Exchange Commission, which can be found at investor.littelfuse.com. This website also provides additional information about Littelfuse. “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995. The statements in this presentation that are not historical facts are intended to constitute "forward-looking statements" entitled to the safe-harbor provisions of the Private Securities Litigation Reform Act. Such statements are based on Littelfuse, Inc.’s ("Littelfuse" or the "Company") current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward- looking statements. These risks and uncertainties, include, but are not limited to, risks and uncertainties relating to general economic conditions; product demand and market acceptance; the impact of competitive products and pricing; product quality problems or product recalls; capacity and supply difficulties or constraints; coal mining exposures reserves; cybersecurity matters; failure of an indemnification for environmental liability; exchange rate fluctuations; commodity and other raw material price fluctuations; the effect of Littelfuse accounting policies; labor disputes; restructuring costs in excess of expectations; pension plan asset returns less than assumed; integration of acquisitions; uncertainties related to political or regulatory changes; and other risks which may be detailed in the company's Securities and Exchange Commission filings. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated or implied in the forward-looking statements. This presentation should be read in conjunction with information provided in the financial statements appearing in the company's Annual Report on Form 10-K for the year ended December 31, 2022. Further discussion of the risk factors of the company can be found under the caption "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2022, and in other filings and submissions with the SEC, each of which are available free of charge on the company’s investor relations website at investor.littelfuse.com and on the SEC’s website at http://www.sec.gov. These forward-looking statements are made as of the date hereof. The company does not undertake any obligation to update, amend or clarify these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the availability of new information. Non-GAAP Financial Measures. The information included in this presentation includes the non-GAAP financial measures of organic net sales (decline) growth, adjusted operating margin, adjusted EBITDA margin, adjusted diluted earnings per share, adjusted effective tax rate, free cash flow, and consolidated net leverage ratio (as defined in the credit agreement). A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the appendix. The company believes that these non-GAAP financial measures provide useful information to investors regarding its operational performance, ability to generate cash and its credit position enhancing an investor’s overall understanding of its core financial performance. The company believes that these non-GAAP financial measures are commonly used by financial analysts and provide useful information to analysts. Management uses these measures when assessing the performance of the business and for business planning purposes. Note that the definitions of these non-GAAP financial measures may differ from those terms as defined or used by other companies. DISCLAIMERS

 
BUSINESS UPDATE Dave Heinzmann, President & CEO

 
4Littelfuse, Inc. © 2024 EXECUTIVE SUMMARY  Resilient performance & record cash generation  Revenue $2.4 billion  -6% YoY despite channel destocking; reflects portfolio diversification, technology leadership  Adj. Operating Margin 16.5%; reflects continued focus on operational execution  Record cash generation  Secured meaningful new business wins across diverse end markets  Looking ahead…return to growth during 2024  Well positioned to execute, drive long-term profitable growth  Strong balance sheet, financial capacity supports active and disciplined M&A strategy Solid results in a dynamic macroeconomic environment

 
5Littelfuse, Inc. © 2024 2021 – 2025 GROWTH STRATEGY EMPOWERING A SUSTAINABLE, CONNECTED, AND SAFER WORLD Our capabilities, investments & diversification deliver significant value

 
6Littelfuse, Inc. © 2024 REVISITING OUR 2021 – 2025 FRAMEWORK EXECUTING ON OUR GROWTH STRATEGY REVENUE • Double-digit revenue CAGR • 5 – 7% organic • 5 – 7% from acquisitions EARNINGS • EPS growth > revenue growth • 17 – 19% operating margins • 21 – 23% EBITDA margins CASH FLOW • 100%+ free cash flow conversion • Capital expenditures 4 – 5% of revenue ROIC • 5-year goal: high-teens ROIC % • Near-term objective: mid-teens ROIC % CAPITAL ALLOCATION • Return 40% of free cash flow to shareholders • Remainder to focus on acquisitions ‘20 – ‘23 Sales CAGR: +18% ‘20 – ‘23 EPS CAGR: +22% ‘20 – ‘23 FCF CAGR: +23% 106% Conversion ‘20 – ‘23 ROIC Upper-teens % ~$1.2B+ Capital Deployed

 
7Littelfuse, Inc. © 2024 ELECTRONICS END MARKETS RESILIENT PERFORMANCE, LONG-TERM TAILWINDS  Benefiting from increasingly diversified portfolio & technology leadership  Continued execution driving resilient Electronics margins  Expecting destocking to continue into the year…return to growth during 2024  Continued robust design activity highlighted by data center, medical & building solutions 2023 Highlights

 
8Littelfuse, Inc. © 2024 INDUSTRIAL END MARKETS MEANINGFUL TRACTION ACROSS DIVERSE SECTORS  Breadth of technical expertise driving momentum across broad base of industrial sector exposures  Strength from energy storage, industrial drives & power supplies  Near term softness – HVAC, construction  Customer activity & new business wins support long- term growth  Renewables, infrastructure, power supply & industrial safety key beneficiaries of secular megatrends  Strong design win cadence into 2024 2023 Highlights

 
9Littelfuse, Inc. © 2024 TRANSPORTATION END MARKETS WELL ROUNDED TECHNOLOGY LEADERSHIP  Balanced content momentum driving strong global passenger vehicle growth  Ongoing electrification & core low voltage momentum  Electronification remains key secular growth theme  Strong core product traction in China  Continued portfolio optimization  Product line pruning & cost actions will position CV for long- term highly profitable growth  Sensor product line review  Ramping current sensor investment in advance of launches  Transportation design wins remain robust in 2023  Driven by electrification + electronification advancements  Customers investing in secular megatrends…our solutions are key enablers of industry evolution 2023 Highlights

 
FINANCIAL UPDATE Meenal Sethna, EVP & CFO

 
11Littelfuse, Inc. © 2024  Revenue (-13%) vs PY, Organic (-14%)  F/X +1%  GAAP op margin 12.1%; Adj op margin 13.2%, (-420bps) vs PY  Operating cash flow $144m; Free cash flow $121m  Effective tax rate: GAAP 27.3%; Adj. 26.1%  Includes YTD true-up for full year tax rate adjustment Q4 2023 TOTAL COMPANY FINANCIAL PERFORMANCE GAAP EPS $3.74 $1.71 Adj. EPS $3.34 $2.02 Adj. EBITDA% 22.7% 19.6% $613 $534 Q4-22 Q4-23 Revenue (in millions) See appendix for GAAP to non-GAAP reconciliation Highlights

 
12Littelfuse, Inc. © 2024 FY 2023 TOTAL COMPANY FINANCIAL PERFORMANCE GAAP EPS $14.94 $10.34 Adj. EPS $16.87 $11.74 Adj. EBITDA% 26.4% 22.3% (in millions) See appendix for GAAP to non-GAAP reconciliation Highlights  Revenue (-6%) vs PY, Organic (-10%)  GAAP op margin 15.3%; Adj. op margin 16.5%, (-520bps) vs PY  Ex. F/X impact, ~17% adj. op margin  Effective tax rate: GAAP 21.0%; Adj. 20.1%  +150bps higher than projected, earnings mix shifts across jurisdictions  Operating cash flow $457m; Free cash flow $371m  Both records for the company  Free cash flow conversion of net income 143%  YE 2023 net debt to EBITDA leverage 1.3x $2,514 $2,363 FY-22 FY-23 Revenue

 
13Littelfuse, Inc. © 2024 Op Margin 28.9% 22.3% EBITDA% 33.5% 28.1% $1,493 $1,350 FY-22 FY-23 FY 2023 Revenue Op Margin 24.8% 18.0% EBITDA% 29.9% 24.7% $371 $298 Q4-22 Q4-23 Q4 2023 Revenue Q4 2023 ELECTRONICS SEGMENT FINANCIAL PERFORMANCE (in millions)  Revenue (-10%) / Organic (-16%)  Extended channel destocking  Resilient profitability through inventory rebalancing…diversification, execution, improved cost structure  Revenue (-20%) / Organic (-21%)  Continued channel destocking, distributor inventory weeks declining  Worked through semiconductor backlog  Consumer & increasing industrial end market softness  Solid auto market demand See appendix for GAAP to non-GAAP reconciliation

 
14Littelfuse, Inc. © 2024 Q4 2023 TRANSPORTATION SEGMENT FINANCIAL PERFORMANCE (in millions) See appendix for GAAP to non-GAAP reconciliation $168 $163 Q4-22 Q4-23 Q4 2023 Revenue $716 $678 FY-22 FY-23 FY 2023 Revenue Op Margin 8.9% 5.0% EBITDA% 15.0% 11.2% Op Margin 3.5% 4.7% EBITDA% 10.1% 10.8%  Revenue (-3%) / Organic (-5%)  Passenger vehicle +6% / Organic +5%  China launch momentum; content outgrowth  Commercial vehicle (-12%) / Organic (-13%)  Ongoing inventory rebalancing; product line pruning  Revenue (-5%) / Organic (-5%)  Passenger vehicle: Organic +4%: Well-rounded content momentum, continued core product traction in China  Commercial vehicle: Organic (-14%): Inventory rebalancing  Ongoing portfolio review…comm. vehicle, auto sensors  Expect progressive margin improvement through 2024  Positioning for strong long-term growth & profitability

 
15Littelfuse, Inc. © 2024 Q4 2023 INDUSTRIAL SEGMENT FINANCIAL PERFORMANCE (in millions) See appendix for GAAP to non-GAAP reconciliation $74 $73 Q4-22 Q4-23 Q4 2023 Revenue $305 $334 FY-22 FY-23 FY 2023 Revenue Op Margin 12.0% 12.7% EBITDA% 14.9% 18.2% Op Margin 16.0% 16.4% EBITDA% 18.9% 21.1%  Revenue (-1%) / Organic (-5%)  Weaker end market demand outlook; Residential HVAC, construction/MRO & pockets of OEM excess inventory  Continued strong demand for energy storage, industrial drives  Revenue +10% / Organic +5%  Tailwinds from focus on higher growth markets, price realization, & operational execution  Several manufacturing & supply chain footprint initiatives in progress for growth & margin expansion

 
16Littelfuse, Inc. © 2024 Q1 2024 GUIDANCE  Expect market challenges to continue into 2024  Electronics & Comm. Vehicle…channel inventory destocking  Further weakness in industrial end markets  Consumer market & China remain soft  Q1 Sales: $505m - $530m  (-15%) vs PY  Decline across electronics & industrial segments  Moderate growth in transportation  Q1 EPS $1.65 - $1.85  Adj. tax rate ~20.5% (in millions) See appendix for GAAP to non-GAAP reconciliation $610 $534 $530 - $505 Q1-23 Q4-23 Q1-24 Revenue Adj. EPS $3.64 $2.02 $1.65 - $1.85 GAAP EPS $3.54 $1.71 - Highlights

 
17Littelfuse, Inc. © 2024 FULL YEAR 2024 CONSIDERATIONS / EXPECTATIONS  F/X – immaterial impact to FY sales / ~$.07 earnings headwind at current rates  2024 Sales & Margin assumptions  Return to sales growth during 2024, despite portfolio pruning headwind  ~2 - 3% Company impact  ~6 - 8% Transportation Segment impact (heavier weighting towards Comm. Vehicle business)  Maintain FY company adj. operating margin in upper teens; By segment:  Electronics >20%; Industrial upper teens; Transportation progressive improvement, high single digits by year end  Other Assumptions  $66m amortization expense; $40m interest expense  Adj. effective tax rate ~21%, expect to remain in low 20% range going forward  Expect 100% free cash flow conversion  Projecting ~$100 - $110m investment in capital expenditures

 
18Littelfuse, Inc. © 2024 DIVERSIFICATION OF TECHNOLOGIES, END MARKETS & GEOGRAPHIES DELIVERS DOUBLE-DIGIT REVENUE & EARNINGS CAGR '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 Revenue (M$) Adjusted EPS 15-year* CAGR: Sales +10% EPS +18% Strong track record of top tier financial performance  Expanding leadership in core markets while prioritizing strategic investments to bolster diversified portfolio  Flexible cost structure drives improved profitability through cycles  Proven team with history of successfully executing through dynamic environments *2008 - 2023

 
19Littelfuse, Inc. © 2024 APPENDIX

 
20Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION

 
21Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D

 
22Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D

 
23Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D

 
24Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D

 
25Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D

 
v3.24.0.1
Document and Entity Information
Jan. 30, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jan. 30, 2024
Entity Registrant Name LITTELFUSE INC /DE
Entity Central Index Key 0000889331
Amendment Flag false
Entity Incorporation, State or Country Code DE
Entity File Number 0-20388
Entity Tax Identification Number 36-3795742
Entity Address, Address Line One 8755 W. Higgins Road
Entity Address, Address Line Two Suite 500
Entity Address, City or Town Chicago
Entity Address, State or Province IL
Entity Address, Postal Zip Code 60631
City Area Code 773
Local Phone Number 628-1000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.01 per share
Trading Symbol LFUS
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
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