Bel Reports Third Quarter Results
Third Quarter Highlights
● Sales for the third quarter of 2012 increased 0.2% to
● For the third quarter of 2012, GAAP net earnings were
● For the third quarter of 2012, non-GAAP net earnings before
restructuring charges, acquisition costs, the expiration of tax statutes
of limitations and other charges were
●
● Incurred
● Purchased 90,000 Class B common shares (for an aggregate cost of
CEO comments
"During the quarter we completed two acquisitions that will strengthen
our strategy of focusing on sales of non-commodity products.
"Our acquisition of
"We are optimistic that the opportunities created by these acquisitions will fuel the growth of our modular and interconnect business groups in the coming years."
Bernstein said that Bel is pursuing another potential acquisition
representing in excess of
Noting that Bel has recorded pre-tax expenses related to its corporate
restructuring program of about
Third Quarter Results
For the three months ended
Cost of sales decreased slightly to 83.4% of sales for the third quarter of 2012, compared to 84.1% of sales for the third quarter of 2011.
Operating income for the third quarter of 2012 decreased to
Net earnings for the third quarter of 2012 included an income tax
benefit of
Net earnings for the third quarter of 2012 were
Excluding the charges detailed in the table reconciling GAAP to non-GAAP
financial measures mentioned above, non-GAAP net earnings for the third
quarter of 2012 were
Net earnings per diluted Class A common share for the third quarter of
2012 were
Net earnings per diluted Class B common share were
Balance Sheet Data
As of
Nine Month Results
For the nine months ended
Net earnings per diluted Class A common share for the first nine months
of 2012 were
Net earnings per diluted Class B common share for the first nine months
of 2012 were
Conference Call
Bel has scheduled a conference call at
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 anticipated impact of the Fibreco and Powerbox
acquisitions, the possibility of Bel's effecting another acquisition and
the remaining costs to be incurred in, and anticipated savings from,
Bel's corporate restructuring program) 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
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(000s omitted, except for per share data) |
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Three Months Ended |
Nine Months Ended |
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September 30, |
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2012 |
2011 |
2012 |
2011 |
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Net sales |
$ |
76,059 |
$ |
75,903 |
$ |
214,842 |
$ |
226,479 |
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Costs and expenses: |
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Cost of sales |
63,404 |
63,865 |
179,587 |
186,365 |
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Selling, general and administrative |
9,851 |
9,856 |
28,136 |
30,327 |
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Restructuring charge |
1,778 |
-- |
2,160 |
-- |
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Litigation charges |
-- |
247 |
26 |
3,471 |
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Loss (gain) on disposal of property, plant and equipment |
1 |
(3 |
) |
111 |
4 |
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Total costs and expenses |
75,034 |
73,965 |
210,020 |
220,167 |
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Income from operations |
1,025 |
1,938 |
4,822 |
6,312 |
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Impairment of investment |
(297 |
) |
-- |
(775 |
) |
-- |
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Gain on sale of investment |
-- |
-- |
-- |
119 |
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Interest income and other, net |
63 |
120 |
216 |
281 |
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Earnings before provision for income taxes |
791 |
2,058 |
4,263 |
6,712 |
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(Benefit) provision for income taxes |
(1,809 |
) |
1,046 |
(676 |
) |
3,030 |
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Net earnings |
$ |
2,600 |
$ |
1,012 |
$ |
4,939 |
$ |
3,682 |
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Earnings per Class A common share - basic and diluted |
$ |
0.20 |
$ |
0.08 |
$ |
0.38 |
$ |
0.29 |
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Weighted average Class A common shares outstanding |
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- basic and diluted |
2,175 |
2,175 |
2,175 |
2,175 |
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Earnings per Class B common share - basic and diluted |
$ |
0.22 |
$ |
0.09 |
$ |
0.42 |
$ |
0.32 |
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Weighted average Class B common shares outstanding |
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- basic and diluted |
9,697 |
9,644 |
9,669 |
9,584 |
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CONDENSED CONSOLIDATED BALANCE SHEET DATA |
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(000s omitted) |
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Dec.31, |
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Dec.31, |
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ASSETS |
2012 |
2011 |
LIABILITIES & EQUITY |
2012 |
2011 |
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(unaudited) |
(unaudited) |
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(unaudited) |
(unaudited) |
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Current assets |
$ |
199,226 |
$ |
207,689 |
Current liabilities |
$ |
49,588 |
$ |
42,425 |
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Property, plant & |
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equipment, net |
37,237 |
39,414 |
Noncurrent liabilities |
12,248 |
13,406 |
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Goodwill and intangibles |
33,006 |
15,040 |
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Other assets |
15,586 |
14,768 |
Stockholders' equity |
223,219 |
221,080 |
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Total Assets |
$ |
285,055 |
$ |
276,911 |
Total Liabilities & Equity |
$ |
285,055 |
$ |
276,911 |
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| NON-GAAP MEASURES (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (000s omitted, except for per share data) | ||||||||||||||||||||||||||||||||||||||||||||||||||
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Three Months Ended |
Nine Months Ended |
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Income
from operations |
Net earnings(2) |
Net earnings per
Class A common share - diluted(3) |
Net 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) |
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| GAAP measures | $ | 1,025 | $ | 2,600 | $ | 0.20 | $ | 0.22 | $ | 4,822 | $ | 4,939 | $ | 0.38 | $ | 0.42 | ||||||||||||||||||||||||||||||||||
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Restructuring charge, severance |
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| and reorganization costs | 2,200 | 1,568 | 0.13 | 0.13 | 2,694 | 1,896 | 0.15 | 0.16 | ||||||||||||||||||||||||||||||||||||||||||
| Litigation charges | -- | -- | -- | -- | 26 | 16 | -- | -- | ||||||||||||||||||||||||||||||||||||||||||
| Fraud restitution | -- | -- | -- | -- | (72 | ) | (45 | ) | -- | -- | ||||||||||||||||||||||||||||||||||||||||
| Loss on disposal | ||||||||||||||||||||||||||||||||||||||||||||||||||
| of property, plant and equipment | 1 | 1 | -- | -- | 111 | 69 | 0.01 | 0.01 | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition and other related costs | 657 | 407 | 0.03 | 0.03 | 758 | 470 | 0.04 | 0.04 | ||||||||||||||||||||||||||||||||||||||||||
| Impairment of Pulse shares, net of income tax | -- | 185 | 0.01 | 0.02 | -- | 481 | 0.04 | 0.04 | ||||||||||||||||||||||||||||||||||||||||||
| Expiration of tax statutes of limitations, net | -- | (1,469 | ) | (0.12 | ) | (0.12 | ) | -- | (1,469 | ) | (0.12 | ) | (0.13 | ) | ||||||||||||||||||||||||||||||||||||
| Non-GAAP measures(1) | $ | 3,883 | $ | 3,292 | $ | 0.26 | $ | 0.28 | $ | 8,339 | $ | 6,357 | $ | 0.50 | $ | 0.55 | ||||||||||||||||||||||||||||||||||
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Three Months Ended |
Nine Months Ended |
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Income
from operations |
Net earnings(2) |
Net earnings
per Class A common share - diluted(3) |
Net 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) |
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| GAAP measures | $ | 1,938 | $ | 1,012 | $ | 0.08 | $ | 0.09 | $ | 6,312 | $ | 3,682 | $ | 0.29 | $ | 0.32 | ||||||||||||||||||||||||||||||||||
| Severance costs | -- | -- | -- | -- | 135 | 92 | 0.01 | 0.01 | ||||||||||||||||||||||||||||||||||||||||||
| Litigation charges, net | 247 | 223 | 0.02 | 0.02 | 3,071 | 2,822 | 0.23 | 0.24 | ||||||||||||||||||||||||||||||||||||||||||
| Costs associated with Pulse proxy initiative | -- | -- | -- | -- | 267 | 166 | 0.01 | 0.01 | ||||||||||||||||||||||||||||||||||||||||||
| Loss (gain) on sale | ||||||||||||||||||||||||||||||||||||||||||||||||||
| of property, plant and equipment | (3 | ) | (2 | ) | -- | -- | 4 | 2 | -- | -- | ||||||||||||||||||||||||||||||||||||||||
| Gain on sale of Pulse | ||||||||||||||||||||||||||||||||||||||||||||||||||
| shares, net of income tax | -- | -- | -- | -- | -- | (74 | ) | (0.01 | ) | (0.01 | ) | |||||||||||||||||||||||||||||||||||||||
| Non-GAAP measures(1) | $ | 2,182 | $ | 1,233 | $ | 0.10 | $ | 0.11 | $ | 9,789 | $ | 6,690 | $ | 0.53 | $ | 0.58 | ||||||||||||||||||||||||||||||||||
(1) The non-GAAP measures presented above are not measures of
performance under accounting principles generally accepted in
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, reorganization, losses on the disposal of property, plant and equipment, acquisition-related costs and the expiration of tax statutes of limitations 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 is recorded for accounting purposes.
(2) Net of income tax at effective rate in the applicable tax jurisdiction.
(3) Individual amounts of earnings per share may not agree to the total due to rounding.
Investor Contact:
310-477-3118
info@berkmanassociates.com
or
Company
Contact:
President &
CEO
201-432-0463
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