Bel Fuse Inc. (NASDAQ:BELFA) (NASDAQ:BELFB) today
announced preliminary unaudited financial results for the fourth
quarter and 2011.
Summary
● For the fourth quarter, sales decreased 18.0% to $68.6 million
compared to $83.7 million for the fourth quarter of 2010. For 2011,
sales decreased 2.5% to $295.1 million compared to $302.5 million
for 2010.
● The fourth quarter GAAP net earnings were $82,000, or $0.00
per diluted Class A share and $0.01 per diluted Class B share.
Excluding a restructuring charge and a gain on disposal of
property, non-GAAP net earnings for the fourth quarter of 2011 were
$256,000, or $0.01 per diluted Class A share and $0.02 per diluted
Class B share.
● Full year net earnings were $3.8 million, or $0.28 per diluted
Class A share and $0.33 per diluted Class B share. Excluding
litigation charges and other charges detailed below, non-GAAP net
earnings for 2011 were $7.1 million, or $0.56 per diluted Class A
share and $0.61 per diluted Class B share.
● Cash and investments were $94.0 million as of December 31,
2011, an increase of $8.4 million since December 31, 2010.
● A new program designed to streamline operations is expected to
save $4.4 million annually once fully implemented.
CEO comments
Daniel Bernstein, Bel's President and CEO, said, "Bel earned a
non-GAAP operating profit of $1.3 million for the fourth quarter
and more than $11 million for 2011, excluding certain charges
detailed in the table reconciling GAAP to non-GAAP financial
measures attached to this release. This compares with a non-GAAP
operating profit of $8.2 million for the fourth quarter of 2010 and
$25.1 million for 2010, adjusted for certain charges as detailed in
the same reconciliation table. Our cash position increased in a
challenging global environment for our business. A 48% increase in
sales in our modules group and a 6% increase in interconnect
product sales for 2011 compared to 2010 were not enough to offset a
32% decrease in magnetics sales, where competition has had a
substantial impact on sales of our MagJack products.
"During the fourth quarter of 2011, Bel incurred $0.3 million of
restructuring costs related to the realignment of our Cinch UK
operations. This realignment is expected to generate annualized
savings of approximately $0.5 million.
"Over the next three quarters, we plan to implement additional
streamlining steps to enable Bel to take advantage of a variety of
operational efficiencies. We currently anticipate that the pre-tax
costs associated with these steps will be approximately $5.4
million, however these estimated costs are primarily dependent upon
certain assumptions and the actual cost may change once the plan is
completed. We anticipate that these steps will result in annual
savings of approximately $4.4 million.
"In addition to streamlining our operations, we have begun to
focus our product development efforts on non-commodity products.
This major effort will be in the Modular product line in both Power
and Value Added products and Mil-AeroSpace products found in our
InterConnect product line. Our acquisition strategy is focused on
companies that produce such products because we believe they
provide the greatest opportunity for Bel's long-term growth and
profitability."
Fourth Quarter Results
For the three months ended December 31, 2011, net sales
decreased to $68,642,000 compared to $83,697,000 for the fourth
quarter of 2010.
Cost of sales increased to 85.1% of sales for the fourth quarter
of 2011, compared to 78.5% of sales for the fourth quarter of 2010,
primarily due to a shift in the product mix to sales of a higher
proportion of modules products, which have higher materials content
which will result in lower profit margins than Bel's other product
lines.
Bel's effective tax rate was 92.9% for the fourth quarter of
2011 and exceeded 100% for the same quarter in 2010, reflecting
losses with minimal tax benefit in Asia, where tax rates are lower,
combined with profits in the U.S. and Europe.
Net earnings for the fourth quarter of 2011 were $82,000, which
included restructuring charges of $314,000 ($234,000 after tax) and
a gain on disposal of property, plant and equipment of $97,000
($60,000 after tax). This compares to a net loss for the fourth
quarter of 2010 of $1,022,000, which included litigation charges
associated with the SynQor legal case of $8,103,000 ($8,042,000
after tax), a net benefit from the expiration of tax statutes of
limitations of $155,000, and other minor amounts.
Excluding restructuring charges and the above-mentioned gain on
disposal of property, plant and equipment, non-GAAP net earnings
for the fourth quarter of 2011 were $256,000. This compares to
non-GAAP net earnings for the fourth quarter of 2010 of $6,873,000,
excluding litigation charges, the net benefit described above and
certain minor amounts. A reconciliation of non-GAAP to GAAP
financial measures is provided in the table attached to this press
release.
Net earnings per Class A common share for the fourth quarter of
2011 were $0.00, compared to a net loss per Class A common share of
$0.09 for the fourth quarter of 2010. Adjusted to exclude the
amounts referenced above, non-GAAP net earnings per diluted Class A
common share were $0.01 for the fourth quarter of 2011, compared to
$0.56 for the fourth quarter of 2010.
Net earnings per Class B common share were $0.01 for the fourth
quarter of 2011, compared to a net loss per Class B common share of
$0.09 for the fourth quarter of 2010. Adjusted to exclude the
amounts referenced above, non-GAAP net earnings per diluted Class B
common share were $0.02 for the fourth quarter of 2011, compared to
$0.59 for the fourth quarter of 2010.
Income from operations was $1,084,000 for the fourth quarter of
2011, as compared to $115,000 for the same period in 2010.
Excluding restructuring charges and a gain on disposal of property,
plant and equipment, non-GAAP income from operations for the fourth
quarter of 2011 was $1,301,000. For the fourth quarter of 2010,
adjusted to exclude litigation charges, severance and plant closure
costs and other minor amounts, non-GAAP income from operations was
$8,208,000.
Balance Sheet Data
As of December 31, 2011, Bel reported working capital of
$165,264,000, including cash, cash equivalents, and marketable
securities of $93,972,000, a current ratio of 4.8 to 1, total
long-term obligations of $13,406,000, and stockholders' equity of
$221,080,000. In comparison, as of December 31, 2010, Bel reported
working capital of $157,296,000, including cash, cash equivalents,
and marketable securities of $85,535,000, a current ratio of 4.4 to
1, total long-term obligations of $10,571,000, and stockholders'
equity of $220,333,000.
Twelve Month Results
For the twelve months ended December 31, 2011, net sales
decreased to $295,121,000 compared to $302,539,000 for 2010. Net
earnings were $3,764,000, compared to net earnings of $13,649,000
for 2010. Results for 2011 include a full year of operations for
Cinch Connectors, which was acquired on January 29, 2010. Cinch's
January 2011 revenue was $5.5 million.
Net earnings per diluted Class A common share for 2011 were
$0.28, compared to $1.10 for 2010. Adjusted to exclude various
amounts, detailed in the reconciliation table set forth below,
non-GAAP net earnings per diluted Class A common share were $0.56
for 2011, compared to $1.80 for 2010.
Net earnings per diluted Class B common share were $0.33 for
2011, compared to $1.18 for the first nine months of 2010. Adjusted
to exclude various amounts detailed in the reconciliation table set
forth below, non-GAAP net earnings per diluted Class B common share
were $0.61 for 2011, compared to $1.92 for 2010.
SynQor Legal Case
On July 11, 2011, the Court awarded supplemental damages of $2.5
million against Bel in the previously disclosed SynQor litigation.
Of this amount, $1.9 million is covered through an indemnification
agreement with one of Bel's customers and the remaining $0.6
million was recorded during the second quarter as an expense by the
Company. During the third quarter of 2011, Bel recorded costs and
interest associated with this lawsuit of $0.2 million. Bel is in
the process of appealing the verdict and judgment, and was advised
that the full amount of the damage award plus costs and interest
must be posted as a supersedeas bond upon filing of the notice of
appeal. In October, Bel posted a total of $13.0 million in the form
of a supersedeas bond to the Court in the Eastern District of Texas
while the case is on appeal to the United States Court of
Appeals.
Conference Call
Bel has scheduled a conference call at 11:00 a.m. EST today. To
participate in the call, dial (720) 545-0088, conference ID
#47678348. A simultaneous webcast is available from the Events and
Presentations link on the Investor Info tab at www.BelFuse.com. The
webcast will be available for replay for a period of 20 days at
this same Internet address. For a telephone replay, dial (404)
537-3406, conference ID #47678348 after 2:00 p.m. EST.
About Bel
Bel (www.belfuse.com) and its
divisions are primarily engaged in the design, manufacture, and
sale of products used in networking, telecommunications, high-speed
data transmission, commercial aerospace, military, transportation,
and consumer electronics. Products include magnetics (discrete
components, power transformers and MagJack® connectors with
integrated magnetics), modules (DC-DC converters, integrated analog
front-end modules and custom designs), circuit protection
(miniature, micro and surface mount fuses) and interconnect devices
(micro, circular and filtered D-Sub connectors, passive jacks,
plugs and high-speed cable assemblies). The Company operates
facilities around the world.
Forward-Looking Statements
Except for historical information contained in this press
release, the matters discussed in this press release (including the
statements regarding the effects and costs of, and the anticipated
savings resulting from, Bel's streamlining activities, the time
required to implement such streamlining activities and anticipated
changes in product offerings) are forward looking statements that
involve risks and uncertainties. Among the factors that could cause
actual results to differ materially from such statements are: the
market concerns facing our customers; the continuing viability of
sectors that rely on our products; the effects of business and
economic conditions; capacity and supply constraints or
difficulties; product development, commercializing or technological
difficulties; the regulatory and trade environment; risks
associated with foreign currencies; uncertainties associated with
legal proceedings; the market's acceptance of the Company's new
products and competitive responses to those new products; and the
risk factors detailed from time to time in the Company's SEC
reports. In light of the risks and uncertainties, there can be no
assurance that any forward-looking statement will in fact prove to
be correct. We undertake no obligation to update or revise any
forward-looking statements.
BEL FUSE INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (000s
omitted, except for per share data) Three Months
Ended Twelve Months Ended December 31, December 31, 2011 2010 2011
2010 (unaudited) (audited) Net sales $ 68,642 $
83,697 $ 295,121 $ 302,539 Costs and
expenses: Cost of sales 58,384 65,661 244,749 239,185 Selling,
general and administrative 8,957 9,801 39,284 40,443 Litigation
charge -- 8,103 3,471 8,103 Restructuring charge 314 -- 314 --
(Gain) loss on disposal of property, plant and equipment (97
) 17 (93 ) (352 ) Total costs
and expenses 67,558 83,582
287,725 287,379 Income from operations
1,084 115 7,396 15,160 Gain on sale of investments -- -- 119
-- Interest income and other, net 76 95
357 420 Earnings before
provision for income taxes 1,160 210 7,872 15,580 Provision
for income taxes 1,078 1,232
4,108 1,931 Net earnings (loss) $ 82
$ (1,022 ) $ 3,764 $ 13,649 Earnings
(loss) per Class A common share basic and diluted $ 0.00 $
(0.09 ) $ 0.28 $ 1.10 Weighted average Class A
common shares outstanding basic and diluted 2,175
2,175 2,175 2,175
Earnings (loss) per Class B common share basic and diluted $ 0.01
$ (0.09 ) $ 0.33 $ 1.18 Weighted
average Class B common shares outstanding basic and diluted
9,637 9,528 9,598 9,504
CONDENSED CONSOLIDATED BALANCE SHEET
DATA (000s omitted)
Dec. 31, Dec. 31,
Dec. 31, Dec. 31,
ASSETS 2011 2010
LIABILITIES & EQUITY 2011 2010
(unaudited) (audited)
(unaudited) (audited)
Current assets $ 208,229 $ 203,564 Current liabilities $
42,965 $ 46,268 Property, plant & equipment, net 39,414 44,793
Noncurrent liabilities 13,406 10,571 Goodwill & intangibles
15,040 15,555 Other assets 14,768 13,260
Stockholders' equity 221,080 220,333 Total
Assets $ 277,451 $ 277,172 Total Liabilities & Equity $ 277,451
$ 277,172
BEL FUSE INC. AND
SUBSIDIARIES NON-GAAP MEASURES (unaudited) (000s omitted,
except for per share data) Three Months Ended
December 31, 2011 Twelve Months Ended December 31, 2011
Income
from
operations
Netearnings(2)
Net earnings per
Class A common
share - diluted(3)
Net earnings per
Class B common
share - diluted(3)
Income
from
operations
Netearnings(2)
Net earnings per
Class A common
share - diluted(3)
Net earnings per
Class B common
share - diluted(3)
GAAP measures $ 1,084 $ 82 $ 0.00 $ 0.01 $ 7,396 $ 3,764 $
0.28 $ 0.33 Restructuring charge 314 234 0.02 0.02 314 234 0.02
0.02 Severance costs -- -- -- -- 135 92 0.01 0.01 Litigation
charges, net -- -- -- -- 3,071 2,961 0.24 0.25 (Gain) loss on
disposal of property, plant and equipment (97) (60) 0.00 (0.01)
(93) (58) 0.00 0.00 Costs associated with Pulse proxy initiative --
-- -- -- 267 166 0.01 0.01 Gain on sales of Pulse shares, net of
tax -- -- -- -- -- (74) (0.01) (0.01) Non-GAAP measures(1) $
1,301 $ 256 $ 0.01 $ 0.02 $ 11,090 $ 7,085 $ 0.56 $ 0.61
Three Months Ended December 31, 2010 Twelve Months Ended
December 31, 2010 Income
from
operations
Net
(loss)
earnings(2)
Net (loss) earnings
per Class A common
share - diluted(3)
Net (loss) earnings
per Class B common
share - diluted(3)
Income
from
operations
Net
earnings(2)
Net earnings per
Class A common
share - diluted(3)
Net earnings per
Class B common
share - diluted(3)
GAAP measures $ 115 $ (1,022) $ (0.09) $ (0.09) $ 15,160 $
13,649 $ 1.10 $ 1.18 Severance and plant closure costs 80 63 0.01
0.01 1,176 1,064 0.09 0.09 Litigation charge 8,103 8,042 0.66 0.69
8,103 8,042 0.66 0.69 Recovery of unauthorized stock issuance costs
(121) (75) (0.01) (0.01) (121) (75) (0.01) (0.01)
Acquisition-related costs and inventory-related purchase accounting
adjustments 14 9 0.00 0.00 1,141 707 0.06 0.06 Gain on sale of
property, plant and equipment 17 11 0.00 0.00 (352) (299) (0.02)
(0.03) Expiration of tax statutes of limitations, net -- (155)
(0.01) (0.01) -- (887) (0.07) (0.08) Non-GAAP measures(1) $
8,208 $ 6,873 $ 0.56 $ 0.59 $ 25,107 $ 22,201 $ 1.80 $ 1.92
(1) The non-GAAP measures presented above are not measures of
performance under accounting principles generally accepted in the
United States of America ("GAAP"). These measures should not be
considered a substitute for, and the reader should also consider,
income from operations, net earnings, earnings per share and other
measures of performance as defined by GAAP as indicators of our
performance or profitability. Our non-GAAP measures may not be
comparable to other similarly titled captions of other companies
due to differences in the method of calculation.
Based upon discussions with investors and analysts, we believe
that the reader's understanding of Bel's performance and
profitability is enhanced by reference to these non-GAAP measures.
Removal of gains and losses on sales of investments and real
estate, tax benefits resulting from the expiration of tax statutes
of limitations, and charges for severance, factory closure, amounts
paid or reserved for lawsuits, restructuring, impairment of assets,
unauthorized stock issuance costs, inventory-related purchase
accounting adjustments and acquisition-related costs facilitates
comparisons of our results among reporting periods. We believe that
such amounts are not reflective of the relevant business in the
period in which the gain or charge is recorded for accounting
purposes.
(2) Net of income tax at effective rate in the applicable tax
jurisdiction.
(3) Individual amounts of earnings (loss) per share may not
agree to the total due to rounding.
Bel Fuse (NASDAQ:BELFA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Bel Fuse (NASDAQ:BELFA)
Historical Stock Chart
From Jul 2023 to Jul 2024