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 third quarter of 2020.
Third Quarter
2020 Highlights
• |
Net sales of $124.5 million (including $10.9 million of incremental
sales attributable to CUI, Inc., acquired during the fourth quarter
of 2019), in line with Q3-19 sales |
• |
Gross profit margin of 26.9%, up from 23.0% in Q3-19 |
• |
GAAP net earnings of $7.5 million (leading to GAAP EPS of
$0.57 per Class A share and $0.61 per Class B share) versus GAAP
net loss of $(6.5) million in Q3-19 (GAAP net loss per share
of $(0.51) per Class A share and $(0.53) per Class B
share) |
• |
Non-GAAP net earnings of $7.6 million (Non-GAAP EPS of
$0.58 per Class A share and $0.62 per Class B share)
versus Non-GAAP net earnings of $2.5 million in Q3-19
(Non-GAAP EPS of $0.19 per Class A share and $0.20 per
Class B share) |
• |
Adjusted EBITDA increased nearly 33% over Q3-19 to $11.8 million
driven by shift in product mix and cost reductions implemented in
the last 12 months |
• |
Paid down $10 million in debt during the quarter, reducing leverage
ratio (as defined in our credit agreement) to 2.99x |
Non-GAAP financial measures, such as Non-GAAP
net earnings, Non-GAAP EPS, EBITDA and Adjusted EBITDA, exclude the
impact of acquisition-related costs, goodwill impairment
charges and restructuring charges. 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 Comments
Daniel Bernstein, President and CEO, said, “As a
result of our ongoing global cost reduction plan to streamline the
organization while eliminating certain low-margin products,
profitability continued to improve into the third quarter. We are
very pleased with the progress of this plan in the past year, which
along with other factors, resulted in an overall third quarter
gross profit of nearly 27%, a 400 basis point improvement over
last year’s comparable quarter. Throughout the quarter, our teams
around the world continued to monitor our facilities in light
of the COVID-19 pandemic and we are pleased to report that all of
Bel’s facilities continue to be operational. Bel's management team
would again like to thank all of our manufacturing associates for
their dedication to Bel and its customers during this challenging
time.
“Our Cinch Connectivity Solutions business had
record shipments into military applications during the third
quarter, driven by sales into both U.S. and European military
programs. Growth in military sales continued to be offset
by the decline in demand within the commercial aerospace
segment, resulting in an overall decline in sales for the Cinch
Connectivity Solutions group of $6 million from the third
quarter last year. This shift in focus from commercial aerospace to
military products, coupled with real-time cost adjustments at
the factories, resulted in a 29.2% gross margin for the group as
compared to 26.6% in last year's third quarter, allowing the group
to retain the majority of its gross margin dollars on lower
sales.
“Bel’s Power Solutions and Protection business
benefited from $10.9 million in sales from our recently-acquired
CUI business. CUI's third quarter 2019 results are not included in
Bel's financial statements; however, sales in this past
quarter represent growth of approximately 40% over revenues
recognized in CUI's financial statements in the third quarter of
2019. Further, our circuit protection product sales increased by
43% versus the third quarter last year. A shift in product
mix, resulting in part from the discontinuation of
low-margin product sales to a former datacenter customer, along
with cost savings from restructuring efforts implemented in prior
quarters, resulted in a year-over-year improvement in gross profit
of $4.8 million for this group. We also completed the closure of
our Power R&D facility in Uster, Switzerland, resulting in
annualized cost savings of $3 million, $250,000 of which was
realized during the third quarter.
“While sales within Bel’s Magnetic Solutions
business fell short of last year’s third quarter by $1.5 million as
a result of a decline in demand from one of our large networking
customers, the gross profit for this group increased by almost
$550,000 largely due to the cost reduction and restructuring
efforts previously implemented.
“As we look to the fourth quarter, sales are
expected to be similar to the fourth quarter 2019 level with very
limited visibility into 2021. In connection with our ongoing global
cost reduction plan, we recently announced the anticipated closure
of our sales office in Germany and a restructuring of our
North America sales organization. These actions are expected to
result in incremental annual cost savings of approximately $1
million starting in the fourth quarter of 2020, and consequently,
we should see a more favorable gross margin comparison versus last
year’s fourth quarter. In the meantime, we continue to actively
look at acquisitions that will complement our existing product
offerings and manufacturing capabilities to better position Bel for
the future,” concluded Mr. Bernstein.
Financial Summary
All comparative percentages are on a
year-over-year basis, unless otherwise noted.
Third Quarter
2020 Results
Net SalesNet sales were $124.5
million, the same level as last year’s third quarter.
|
• |
By product segment:
Cinch Connectivity Solutions sales declined by 13.5%, Magnetic
Solutions sales were lower by 3.7% and Power Solutions and
Protection sales were up by 18.5%. |
|
• |
By geographic area:
Europe sales were down by 3.2%, North America sales increased by
4.6% and Asia sales were lower by 6.1%. |
Gross ProfitGross profit margin
by product segment:
|
Q3-20 |
|
|
Q3-19 |
|
|
Basis Point Change |
Cinch Connectivity Solutions |
29.2 |
% |
|
26.6 |
% |
|
260 |
Magnetic Solutions |
28.2 |
% |
|
25.9 |
% |
|
230 |
Power Solutions and
Protection |
24.2 |
% |
|
16.5 |
% |
|
770 |
Total |
26.9 |
% |
|
23.0 |
% |
|
390 |
Fixed costs within our Cinch Connectivity
Solutions segment were reduced by $2.0 million in the third quarter
of 2020 as compared to the same period of 2019 as a result of
aligning the cost structure with the reduction in demand from
our commercial aerospace customers. Further, approximately
$0.7 million of cost savings were realized within cost of
sales in the third quarter of 2020 related to restructuring efforts
implemented in late-2019 related to our Power Solutions and
Protections and Magnetic Solutions segments. Lastly, the
elimination of low-margin products replaced by incremental
higher-margin CUI sales drove further improvement in Power
Solutions and Protection's gross profit margin for the third
quarter of 2020 as compared to the same quarter of 2019.
Research and Development
CostsR&D costs were $5.7 million, a decline of $0.4
million from the third quarter of 2019. This reduction was largely
the result of cost savings measures initiated in late-2019,
partially offset by an unfavorable exchange rate environment during
the 2020 quarter.
Selling, General and Administrative
Expenses SG&A expenses were $18.9 million, up
$0.4 million from the third quarter of 2019. Lower travel expenses
of $0.5 million, a reduction in ERP costs of $0.2 million and
savings from other cost containment efforts largely offset the $1.9
million of incremental SG&A expenses associated with the
recently-acquired CUI business. SG&A expense also
included a gain on the cash surrender value of
COLI policies of $0.5 million in the third quarter of 2020
compared to a gain on these policies of $0.1 million in the
third quarter of 2019.
Operating IncomeOperating
income was $8.8 million as compared to an operating loss
of $(5.2) million in the third quarter of 2019, with an
operating margin of 7.1% compared to -4.2% in the third
quarter of 2019.
Income TaxesThe benefit
from income taxes was $(1.1) million in the third quarter of
2020 as compared to a provision for income taxes of $0.6
million in the third quarter of 2019. This resulted in an
effective tax rate of -16.9% during the third quarter of 2020,
compared to an effective tax rate of -10.0% during the same
quarter last year. The change in the effective tax rate during the
third quarter of 2020 as compared to the same quarter of 2019 is
primarily attributable to tax benefits relating to the federal tax
law changes regarding the final regulations on GILTI high-tax
exception, as well as the reversal of uncertain tax positions
resulting from the expiration of the statute of limitations.
Additionally, the effective tax rate for 2019 was unfavorably
impacted by the impairment of goodwill in North America.
Net EarningsThe above factors
resulted in net earnings of $7.5 million in the third quarter of
2020 as compared with net loss of $(6.5) million in the third
quarter of 2019.
Nine Months Ended September 30, 2020
Results
Net SalesNet sales were $349.6
million, down $27.6 million, or 7.3%, from the same
period of 2019.
|
• |
By product segment:
Cinch Connectivity Solutions sales declined by 11.3%, Magnetic
Solutions sales were lower by 12.3% and Power Solutions and
Protection sales were up by 1.4%. |
|
• |
By geographic area:
Europe sales were down by 12.4%, Asia sales were lower by
12.4% and North America sales declined by 2.7%. |
Gross ProfitGross profit margin
by product segment:
|
9 months-2020 |
|
|
9 months-2019 |
|
|
Basis Point Change |
Cinch Connectivity
Solutions |
29.1 |
% |
|
26.1 |
% |
|
300 |
Magnetic Solutions |
25.2 |
% |
|
22.8 |
% |
|
240 |
Power Solutions and
Protection |
24.1 |
% |
|
20.0 |
% |
|
410 |
Total |
25.9 |
% |
|
22.8 |
% |
|
310 |
Fixed costs within our Cinch Connectivity
Solutions segment were reduced by $5.0 million in the nine months
ended September 30, 2020 as compared to the same period of 2019 as
a result of aligning the cost structure with the reduction in
demand from our commercial aerospace customers. Further,
approximately $2.4 million of cost savings were realized within
cost of sales during the first nine months of 2020 related to
restructuring efforts implemented in late-2019 which were related
to our Power Solutions and Protection and Magnetic Solutions
segments. Lastly, the elimination of low-margin products
replaced by incremental higher-margin CUI sales drove further
improvement in Power Solutions and Protection's gross profit margin
during the first nine months of 2020 as compared to the same period
of 2019.
Research and Development
CostsR&D costs were $17.9 million, a decline of $2.3
million from the first nine months of 2019. This reduction was
largely the result of cost savings measures initiated in
late-2019.
Selling, General and Administrative
Expenses SG&A expenses were $59.0 million, up
$2.1 million from the first nine months of 2019. A reduction
in ERP costs of $1.6 million, lower travel expenses of $1.4
million and savings from other cost containment efforts partially
offset the $5.9 million of incremental SG&A expenses associated
with the recently-acquired CUI business. SG&A expense also
included a gain on the cash surrender value of
COLI policies of $0.1 million in the first nine months of
2020 compared to a gain on these policies of $0.9 million in
the first nine months of 2019.
Operating IncomeOperating
income was $13.2 million, up from $2.7 million in the first nine
months of 2019, with an operating margin of 3.8% compared
to 0.7% in the first nine months of 2019.
Income TaxesThe benefit
from income taxes was ($1.4) million during the nine months
ended September 30, 2020, compared to a provision of $1.0
million in the same period of 2019. This resulted in an effective
tax rate of -18.3% during the nine months ended September
30, 2020, compared to an effective tax rate of -78.2% during
the same period last year. The change in the effective tax
rate during the nine months ended September 30, 2020 as compared to
the same period of 2019 is primarily attributable to the same
factors noted above for the third quarter as well as an increase in
U.S. taxes related to income from foreign subsidiaries taxes in the
U.S. as part of the Tax Cuts and Jobs Act.
Net EarningsThe above factors
resulted in net earnings of $9.2 million in the first nine
months of 2020 as compared with net loss of $2.4 million in
the same period of 2019.
Balance Sheet DataAs of
September 30, 2020, working capital was $195.0 million, including
$81.1 million of cash and cash equivalents with a current ratio of
3.2-to-1. In comparison, as of December 31, 2019, working capital
was $193.0 million, including $72.3 million of cash and cash
equivalents with a current ratio of 3.1-to-1. Total debt at
September 30, 2020, net of deferred financing costs, declined to
$125.4 million as compared to $143.7 million at December 31, 2019,
primarily due to a voluntary prepayment of $8.2 million made in
connection with the amendment to the Company's credit agreement in
February 2020 and a $10.0 million repayment to our revolving credit
facility during the third quarter of 2020.
Conference CallBel has
scheduled a conference call at 11:00 a.m. ET today. To participate
in the conference call, investors should dial 800-437-2398,
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 1665781 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 fourth quarter
sales, anticipated cost savings from the closure of our Power
R&D facility in Uster, Switzerland and our sales office in
Germany, as well as from a streamlining of our North America sales
organization, and the impact of potential future acquisitions) 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 |
|
|
Nine Months Ended |
|
|
September 30, |
|
|
September 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
124,492 |
|
|
$ |
124,479 |
|
|
$ |
349,642 |
|
|
$ |
377,284 |
|
Cost of sales |
|
90,958 |
|
|
|
95,859 |
|
|
|
259,227 |
|
|
|
291,184 |
|
Gross
profit |
|
33,534 |
|
|
|
28,620 |
|
|
|
90,415 |
|
|
|
86,100 |
|
As a % of net sales |
|
26.9 |
% |
|
|
23.0 |
% |
|
|
25.9 |
% |
|
|
22.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
costs |
|
5,713 |
|
|
|
6,162 |
|
|
|
17,889 |
|
|
|
20,198 |
|
Selling, general and
administrative expenses |
|
18,891 |
|
|
|
18,510 |
|
|
|
59,013 |
|
|
|
56,950 |
|
As a % of net sales |
|
15.2 |
% |
|
|
14.9 |
% |
|
|
16.9 |
% |
|
|
15.1 |
% |
Impairment of goodwill |
|
- |
|
|
|
8,891 |
|
|
|
- |
|
|
|
8,891 |
|
Restructuring charges |
|
111 |
|
|
|
281 |
|
|
|
283 |
|
|
|
1,651 |
|
Gain on sale of property |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,257 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations |
|
8,819 |
|
|
|
(5,224 |
) |
|
|
13,230 |
|
|
|
2,667 |
|
As a % of net sales |
|
7.1 |
% |
|
|
-4.2 |
% |
|
|
3.8 |
% |
|
|
0.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(1,242 |
) |
|
|
(1,305 |
) |
|
|
(3,843 |
) |
|
|
(4,126 |
) |
Other income/expense, net |
|
(1,185 |
) |
|
|
629 |
|
|
|
(1,576 |
) |
|
|
117 |
|
Earnings (loss) before benefit for income
taxes |
|
6,392 |
|
|
|
(5,900 |
) |
|
|
7,811 |
|
|
|
(1,342 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Benefit from) provision for
income taxes |
|
(1,083 |
) |
|
|
590 |
|
|
|
(1,433 |
) |
|
|
1,049 |
|
Effective tax rate |
|
-16.9 |
% |
|
|
-10.0 |
% |
|
|
-18.3 |
% |
|
|
-78.2 |
% |
Net earnings
(loss) |
$ |
7,475 |
|
|
$ |
(6,490 |
) |
|
$ |
9,244 |
|
|
$ |
(2,391 |
) |
As a % of net sales |
|
6.0 |
% |
|
|
-5.2 |
% |
|
|
2.6 |
% |
|
|
-0.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A common shares - basic
and diluted |
|
2,145 |
|
|
|
2,173 |
|
|
|
2,145 |
|
|
|
2,174 |
|
Class B common shares - basic
and diluted |
|
10,223 |
|
|
|
10,139 |
|
|
|
10,176 |
|
|
|
10,113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A common shares - basic
and diluted |
$ |
0.57 |
|
|
$ |
(0.51 |
) |
|
$ |
0.70 |
|
|
$ |
(0.20 |
) |
Class B common shares - basic
and diluted |
$ |
0.61 |
|
|
$ |
(0.53 |
) |
|
$ |
0.76 |
|
|
$ |
(0.19 |
) |
(1) The
supplementary information included in this press release for 2020
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) |
|
September 30, 2020 |
|
|
December 31, 2019 |
Assets |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
81,129 |
|
|
$ |
72,289 |
Accounts receivable, net |
|
69,736 |
|
|
|
76,092 |
Inventories |
|
103,647 |
|
|
|
107,276 |
Other current assets |
|
30,197 |
|
|
|
27,524 |
Total current assets |
|
284,709 |
|
|
|
283,181 |
Property, plant and equipment,
net |
|
35,101 |
|
|
|
41,943 |
Right-of-use assets |
|
15,454 |
|
|
|
18,504 |
Goodwill and other intangible
assets, net |
|
89,941 |
|
|
|
94,357 |
Other assets |
|
32,747 |
|
|
|
30,932 |
Total
assets |
$ |
457,952 |
|
|
$ |
468,917 |
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
$ |
40,130 |
|
|
$ |
44,169 |
Current portion of long-term
debt |
|
3,794 |
|
|
|
5,489 |
Operating lease liability,
current |
|
6,676 |
|
|
|
7,377 |
Other current liabilities |
|
39,134 |
|
|
|
33,183 |
Total current liabilities |
|
89,734 |
|
|
|
90,218 |
Long-term debt |
|
121,616 |
|
|
|
138,215 |
Operating lease liability,
long-term |
|
9,120 |
|
|
|
11,751 |
Other liabilities |
|
58,711 |
|
|
|
60,682 |
Total liabilities |
|
279,181 |
|
|
|
300,866 |
Stockholders' equity |
|
178,771 |
|
|
|
168,051 |
Total liabilities and
stockholders' equity |
$ |
457,952 |
|
|
$ |
468,917 |
(1) The
supplementary information included in this press release for 2020
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 |
|
|
Nine Months Ended |
|
|
September 30, |
|
|
September 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
earnings |
$ |
7,475 |
|
|
$ |
(6,490 |
) |
|
$ |
9,244 |
|
|
$ |
(2,391 |
) |
Interest expense |
|
1,242 |
|
|
|
1,305 |
|
|
|
3,843 |
|
|
|
4,126 |
|
Provision for (benefit from)
income taxes |
|
(1,083 |
) |
|
|
590 |
|
|
|
(1,433 |
) |
|
|
1,049 |
|
Depreciation and
amortization |
|
4,089 |
|
|
|
4,049 |
|
|
|
12,322 |
|
|
|
12,265 |
|
EBITDA |
$ |
11,723 |
|
|
$ |
(546 |
) |
|
$ |
23,976 |
|
|
$ |
15,049 |
|
% of net sales |
|
9.4 |
% |
|
|
-0.4 |
% |
|
|
6.9 |
% |
|
|
4.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unusual or special
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related costs |
|
- |
|
|
|
- |
|
|
|
186 |
|
|
|
- |
|
Impairment of goodwill |
|
- |
|
|
|
8,891 |
|
|
|
- |
|
|
|
8,891 |
|
Gain on sale of property |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,257 |
) |
ERP system implementation
consulting costs |
|
- |
|
|
|
242 |
|
|
|
- |
|
|
|
1,617 |
|
Restructuring charges |
|
111 |
|
|
|
281 |
|
|
|
283 |
|
|
|
1,651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
$ |
11,834 |
|
|
$ |
8,868 |
|
|
$ |
24,445 |
|
|
$ |
22,951 |
|
% of net sales |
|
9.5 |
% |
|
|
7.1 |
% |
|
|
7.0 |
% |
|
|
6.1 |
% |
(1) The supplementary information included in this press release
for 2020 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 September 30, 2020 |
|
Three Months Ended September 30, 2019 |
|
Reconciling Items |
Earnings before taxes |
|
(Benefit from) provision for income taxes |
|
Net earnings |
|
Class A EPS(3) |
|
Class B EPS(3) |
|
(Loss) earnings before taxes |
|
Provision for income taxes |
|
Net (loss) earnings |
|
Class A EPS(3) |
|
Class B EPS(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP measures |
$ |
6,392 |
|
$ |
(1,083 |
) |
$ |
7,475 |
|
$ |
0.57 |
|
$ |
0.61 |
|
$ |
(5,900 |
) |
$ |
590 |
|
$ |
(6,490 |
) |
$ |
(0.51 |
) |
$ |
(0.53 |
) |
Items included in SG&A
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ERP system implementation consulting costs |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
242 |
|
|
42 |
|
|
200 |
|
|
0.02 |
|
|
0.02 |
|
Impairment of goodwill |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
8,891 |
|
|
368 |
|
|
8,523 |
|
|
0.66 |
|
|
0.70 |
|
Restructuring charges |
|
111 |
|
|
21 |
|
|
90 |
|
|
0.01 |
|
|
0.01 |
|
|
281 |
|
|
39 |
|
|
242 |
|
|
0.02 |
|
|
0.02 |
|
Non-GAAP measures |
$ |
6,503 |
|
$ |
(1,062 |
) |
$ |
7,565 |
|
|
0.58 |
|
|
0.62 |
|
$ |
3,514 |
|
$ |
1,039 |
|
$ |
2,475 |
|
|
0.19 |
|
|
0.20 |
|
|
Nine Months Ended September 30, 2020 |
|
Nine Months Ended September 30, 2019 |
|
Reconciling
Items |
Earnings before taxes |
|
Provision for income taxes |
|
Net earnings |
|
Class A EPS(3) |
|
Class B EPS(3) |
|
(Loss) earnings before taxes |
|
Provision for income taxes |
|
Net (loss) earnings |
|
Class A EPS(3) |
|
Class B EPS(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP measures |
$ |
7,811 |
|
$ |
(1,433 |
) |
$ |
9,244 |
|
$ |
0.70 |
|
$ |
0.76 |
|
$ |
(1,342 |
) |
$ |
1,049 |
|
$ |
(2,391 |
) |
$ |
(0.20 |
) |
$ |
(0.19 |
) |
Items included in SG&A
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related costs |
|
186 |
|
|
43 |
|
|
143 |
|
|
0.01 |
|
|
0.01 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
ERP system implementation
consulting costs |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1,617 |
|
|
301 |
|
|
1,316 |
|
|
0.10 |
|
|
0.11 |
|
Impairment of goodwill |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
8,891 |
|
|
368 |
|
|
8,523 |
|
|
0.67 |
|
|
0.70 |
|
Gain on sale of property |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(4,257 |
) |
|
(979 |
) |
|
(3,278 |
) |
|
(0.26 |
) |
|
(0.27 |
) |
Restructuring charges |
|
283 |
|
|
62 |
|
|
221 |
|
|
0.02 |
|
|
0.02 |
|
|
1,651 |
|
|
280 |
|
|
1,371 |
|
|
0.11 |
|
|
0.11 |
|
Non-GAAP measures |
$ |
8,280 |
|
$ |
(1,328 |
) |
$ |
9,608 |
|
$ |
0.73 |
|
$ |
0.79 |
|
$ |
6,560 |
|
$ |
1,019 |
|
$ |
5,541 |
|
$ |
0.42 |
|
$ |
0.46 |
|
(1) The
supplementary information included in this press release for 2020
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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