Bel Fuse Inc. (NASDAQ:BELFA) (NASDAQ:BELFB) today
announced preliminary unaudited financial results for the first
quarter of 2013.
First Quarter 2013 Highlights
- Sales decreased 3.9% to $63.0 million
compared to $65.6 million for the first quarter of 2012.
- The GAAP net loss was $553,000, or
$0.05 per Class A share and $0.05 per Class B share, compared to
GAAP net earnings of $876,000, or $0.07 per diluted Class A share
and $0.08 per diluted Class B share, for the first quarter of
2012.
- The non-GAAP net loss, which excludes
restructuring charges, acquisition costs, and other amounts, was
$444,000. For the first quarter of 2012, non-GAAP net earnings,
which excludes restructuring charges, acquisition costs and other
charges, were $1.1 million.
- The transition of Cinch's operations to
a new Texas facility resulted in approximately $1.7 million of
additional costs in the first quarter of 2013.
- Acquisition costs and restructuring,
severance and reorganization charges totaled $610,000 versus
$367,000 during the first quarter of 2012.
- On March 29, 2013, Bel closed the
acquisition of the Transpower magnetics business from TE
Connectivity, solidifying Bel's position as a world leader in
integrated connector modules (ICMs). These acquired operations are
now doing business as TRP Connector ("TRP").
- Bel purchased 178,643 Class B common
shares for an aggregate cost of $3.4 million under the common share
buyback program authorized by the Board in July 2012.
CEO comments
Daniel Bernstein, Bel's President and CEO, said, "We were
disappointed by our first quarter results, which were heavily
impacted by unanticipated start-up costs at our new Texas facility.
While we still expect this restructuring to reduce overall
operating expenses by about $5.6 million annually, the first
quarter savings were more than offset by these additional costs.
These costs should be reduced by the end of the second quarter, and
we expect the benefits from our restructuring of Cinch to
materialize in the third quarter. The decrease in sales during the
first quarter of 2013 as compared to the first quarter of 2012 was
primarily driven by two factors. Cinch sales were down by $2.9
million due to the transition of manufacturing operations and we
experienced a $3.9 million decrease in sales from one customer in
our module product line. Bel's core product groups were also not
profitable in the first quarter as labor costs in China continue to
rise and our current price structure does not reflect these
changes. Bel is in the process of implementing price increases and
the majority of these changes should be in effect by August 1st. We
will also continue to look at our overhead structure to identify
any additional opportunities for cost savings.
"On a positive note, we were pleased with the first quarter
performance of Fibreco and Powerbox, both acquired in 2012. These
companies continue to show growth potential and contributed a
combined $2.9 million to our first quarter sales and added $0.9
million of income from operations to our consolidated results. With
TRP coming on board late in March, we expect the results of this
acquisition to be accretive beginning in the second quarter. The
TRP magnetics business had 2012 sales of approximately $75 million.
We have started our plan to implement best manufacturing practices
at both companies and we have initiated vendor review of materials
with the objective of obtaining future savings on purchased
materials. The full benefit of these results should be seen in the
second half of this year.
"We continue to look for potential acquisition opportunities to
strengthen Bel for future growth."
First Quarter Results
For the three months ended March 31, 2013, net sales decreased
to $63,028,000 compared to $65,561,000 for the first quarter of
2012, as the addition of recently acquired businesses and higher
sales of magnetics products were offset by lower modular and
interconnect product sales. Cost of sales increased to 85.6% of
sales for the first quarter of 2013, compared to 84.1% of sales for
the first quarter of 2012.
The operating loss for the first quarter of 2013 was $1,420,000,
compared to operating income for the first quarter of 2012 of
$1,434,000. Excluding amounts detailed in the table reconciling
GAAP to non-GAAP financial measures included in this release, the
non-GAAP operating loss for the first quarter of 2013 was $810,000,
compared to non-GAAP operating income of $1,801,000 for the first
quarter of 2012.
The net loss for the first quarter of 2013 included an income
tax benefit of $830,000, the result of pre-tax losses and a
favorable adjustment related to the R&E credit during the
quarter. For the first quarter of 2012, income tax expense was
$634,000.
The net loss for the first quarter of 2013 was $553,000,
compared to net earnings for the first quarter of 2012 of
$876,000.
Excluding amounts detailed in the table reconciling GAAP to
non-GAAP financial measures mentioned above, the non-GAAP net loss
for the first quarter of 2013 was $444,000. This compares to
non-GAAP net earnings of $1,104,000 for the first quarter of 2012,
excluding charges detailed in the reconciliation table.
The net loss per Class A common share for the first quarter of
2013 was $0.05, compared to net earnings per diluted Class A common
share of $0.07 for the first quarter of 2012. Adjusted to exclude
the amounts referenced above, the non-GAAP net loss per Class A
common share was $0.04 for the first quarter of 2013, compared to
non-GAAP net earnings per diluted Class A common share of $0.09 for
the first quarter of 2012.
The net loss per Class B common share was $0.05 for the first
quarter of 2013, compared to net earnings per diluted Class B
common share of $0.08 for the first quarter of 2012. Adjusted to
exclude the amounts referenced above, the non-GAAP net loss per
Class B common share was $0.04 for the first quarter of 2013,
compared to non-GAAP net earnings per diluted Class B common share
of $0.10 for the first quarter of 2012.
Balance Sheet Data
As of March 31, 2013, Bel had working capital of $126,248,000,
including cash, cash equivalents and marketable securities of
$53,315,000, a current ratio of 3.0-to-1, total long-term
obligations of $13,864,000, and stockholders' equity of
$209,800,000. In comparison, at December 31, 2012, Bel reported
working capital of $144,748,000, including cash, cash equivalents
and marketable securities of $71,264,000, a current ratio of
4.1-to-1, total long-term obligations of $13,439,000, and
stockholders' equity of $215,391,000. The payment of cash to TE
Connectivity for the acquisition of TRP contributed to the decrease
in cash, cash equivalents and marketable securities during the
first quarter of 2013.
Conference Call
Bel has scheduled a conference call at 11:00 a.m. EDT today. To
participate dial (720) 545-0088, conference ID #44230199. A
simultaneous webcast is available from the Investors link under the
"About Bel" tab at www.BelFuse.com. The webcast replay will be
available for 20 days at this same Internet address. For a
telephone replay, dial (404) 537-3406, conference ID #44230199,
after 2:00 p.m. EDT.
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 and AC-DC power supplies, 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, fiber optic 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 impact of restructuring efforts on overall
operating expenses, future operating expenses, the ability to
reduce those expenses, the timing of when restructuring efforts
will result in cost savings, the timing of price increases, the
ability of Bel to implement additional cost savings in the future,
the accretive nature of the TRP acquisition and the timing of when
benefits from that transaction can be expected to materialize) are
forward-looking statements 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, 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 March 31, 2013
2012 (unaudited) Net sales $ 63,028 $
65,561 Costs and expenses: Cost of sales 53,922 55,132
Selling, general and administrative 10,402 8,858 Restructuring
charges 124 137 Total costs and
expenses 64,448 64,127 (Loss) income
from operations (1,420 ) 1,434 Interest
expense (3 ) -- Interest income and other, net 40
76 (Loss) earnings before (benefit) provision for
income taxes (1,383 ) 1,510 (Benefit) provision for income taxes
(830 ) 634 Net (loss) earnings $ (553 ) $ 876
(Loss) earnings per Class A common share - basic and diluted
$ (0.05 ) $ 0.07 Weighted average Class A common shares
outstanding - basic and diluted 2,175 2,175
(Loss) earnings per Class B common share - basic and diluted
$ (0.05 ) $ 0.08 Weighted average Class B common shares
outstanding - basic and diluted 9,221 9,632
CONDENSED CONSOLIDATED BALANCE SHEET DATA (000s
omitted) Mar. 31, Dec. 31,
Mar. 31, Dec. 31,
ASSETS 2013 2012
LIABILITIES & EQUITY 2013 2012
(unaudited) (unaudited) (unaudited) (unaudited)
Current assets $ 187,948 $ 191,136 Current liabilities $ 61,700 $
46,388 Property, plant & equipment, net 38,823 34,988
Noncurrent liabilities 13,864 13,439 Goodwill and intangibles
42,105 35,181 Other assets 16,488 13,913
Stockholders' equity 209,800 215,391 Total
Assets $ 285,364 $ 275,218 Total Liabilities & Equity $ 285,364
$ 275,218
BEL FUSE INC. AND
SUBSIDIARIES NON-GAAP MEASURES (unaudited) (000s omitted,
except for per share data) Three Months
Ended March 31, 2013 Net loss per
Net loss per Loss from Class A Class B operations
Net loss(2)
common share(3)
common share(3)
GAAP measures $ (1,420 ) $ (553 ) $ (0.05 ) $ (0.05 )
Restructuring charges, severance and reorganization costs 208 129
0.01 0.01 Acquisitions and other related costs 402 365 0.03 0.03
Restoration of prior year Research & Experimentation (R&E)
credit -- (385 ) (0.03 ) (0.03 )
Non-GAAP measures(1) $ (810 ) $ (444 ) $ (0.04 ) $ (0.04 )
Three Months Ended March 31, 2012 Income
Net earnings per
Net earnings per
from Net
Class A common
Class B common
operations
earnings(2)
share - diluted(3)
share - diluted(3)
GAAP measures $ 1,434 $ 876 $ 0.07 $ 0.08 Restructuring
charges, severance and reorganization costs 324 201 0.02 0.02
Acquisitions and other related costs 43 27
-- -- Non-GAAP
measures(1) $ 1,801 $ 1,104 $ 0.09 $ 0.10
(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, (loss) income from operations, net (loss)
earnings, (loss) 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 amounts such as charges for
restructuring, severance and reorganization, certain income tax
adjustments and acquisition-related costs facilitates comparison of
our results among reporting periods. We believe that such amounts
are not reflective of the relevant business in the period in which
the charge or adjustment is recorded for accounting purposes.
(2) Net of income tax at effective rate in the applicable
tax jurisdiction. (3) Individual amounts of net (loss)
earnings 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