Bel Reports Third Quarter Net Earnings of $0.65 Per Class A Share and $0.69 Per Class B Share on a 33.0% Increase in Revenue to a Record $101.2 Million
Third Quarter 2013 Highlights
-
Net sales increased 33.0% to a record
$101.2 million versus$76.1 million last year. -
TRP Connector ("TRP") contributed third quarter sales of
$25.6 million . -
Net earnings were
$0.65 per Class A share and$0.69 per Class B share versus$0.20 per Class A share and$0.21 per Class B share last year. -
Income from operations increased to
$8.3 million versus$880,000 last year.
CEO Comments
"These improvements in Bel's operating performance confirm the success of our strategy. While remaining intensely focused on reducing overhead expenses, we have added significantly to sales and profits through acquisitions this past year. Bel continues to seek acquisition opportunities that can contribute to sales growth and enhance profitability.
"We have completed our transition services agreement with TE Connectivity, so there will be no further costs associated with that agreement going forward. Bel is now implementing best practices between TRP and our manufacturing, an ongoing effort that we believe will contribute to further operating efficiencies and cost savings.
"The relocation of Cinch Connectors into our new
"Also encouraging is that previously contracted price increases on Bel's
standard product lines are now taking effect, with all of these
adjustments scheduled to be in place by the fourth quarter. This is
especially important in view of the rise in labor costs in
Third Quarter Results
For the three months ended
Operating income for the third quarter of 2013 increased to
Net earnings for the third quarter of 2013 were
Net earnings per diluted Class A common share for the third quarter of
2013 were
Net earnings per diluted Class B common share were
Nine Months Results
For the nine months ended
Net earnings per diluted Class A common share for the first nine months
of 2013 were
Net earnings per diluted Class B common share for the first nine months
of 2013 were
Balance Sheet Data
As of
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 further operating efficiencies and cost savings to be derived
from the TRP acquisition, the accretive nature of the
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| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (000s omitted, except for per share data) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
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| 2013 | 2012* | 2013 | 2012* | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Net sales | $ | 101,164 | $ | 76,059 | $ | 258,173 | $ | 214,842 | ||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of sales | 80,730 | 63,472 | 212,699 | 179,690 | ||||||||||||
| Selling, general and administrative | 12,106 | 9,929 | 34,657 | 28,350 | ||||||||||||
| Restructuring charges | -- | 1,778 | 1,387 | 2,160 | ||||||||||||
| Total costs and expenses | 92,836 | 75,179 | 248,743 | 210,200 | ||||||||||||
| Income from operations | 8,328 | 880 | 9,430 | 4,642 | ||||||||||||
| Interest expense | (67 | ) | -- | (75 | ) | -- | ||||||||||
| Impairment of investment | -- | (297 | ) | -- | (775 | ) | ||||||||||
| Gain on sale of investment | 98 | -- | 98 | -- | ||||||||||||
| Interest income and other, net | 82 | 63 | 189 | 216 | ||||||||||||
| Earnings before provision (benefit) for income taxes | 8,441 | 646 | 9,642 | 4,083 | ||||||||||||
| Provision (benefit) for income taxes | 605 | (1,845 | ) | (47 | ) | (721 | ) | |||||||||
| Net earnings | $ | 7,836 | $ | 2,491 | $ | 9,689 | $ | 4,804 | ||||||||
| Earnings per Class A common share - basic and diluted | $ | 0.65 | $ | 0.20 | $ | 0.80 | $ | 0.37 | ||||||||
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Weighted average Class A common shares outstanding - basic and diluted |
2,175 | 2,175 | 2,175 | 2,175 | ||||||||||||
| Earnings per Class B common share - basic and diluted | $ | 0.69 | $ | 0.21 | $ | 0.86 | $ | 0.41 | ||||||||
|
Weighted average Class B common shares outstanding - basic and diluted |
9,229 | 9,697 | 9,221 | 9,669 | ||||||||||||
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* Prior period amounts have been restated to reflect immaterial adjustments previously reported during the measurement period related to the 2012 acquisitions as if all such adjustments had been recognized on the dates of acquisition. |
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| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||||
| (000s omitted) | ||||||||||||||||
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| ASSETS | 2013 | 2012 | LIABILITIES & EQUITY | 2013 | 2012 | |||||||||||
| (unaudited) | (audited) | (unaudited) | (audited) | |||||||||||||
| Current assets | $ | 213,537 | $ | 190,918 | Short-term borrowing | $ | 12,532 | $ | 205 | |||||||
|
Property, plant & equipment, net |
40,338 | 35,002 | Other current liabilities | 71,188 | 46,183 | |||||||||||
| Goodwill and intangibles | 50,031 | 35,750 | Noncurrent liabilities | 13,445 | 13,833 | |||||||||||
| Other assets | 14,600 | 13,913 | Stockholders' equity | 221,341 | 215,362 | |||||||||||
| Total Assets | $ | 318,506 | $ | 275,583 | Total Liabilities & Equity | $ | 318,506 | $ | 275,583 | |||||||
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| NON-GAAP MEASURES (unaudited) | |||||||||||||||||||||||||||||||||
| (000s omitted, except for per share data) | |||||||||||||||||||||||||||||||||
|
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) |
||||||||||||||||||||||||||
| GAAP measures | $ | 8,328 | $ | 7,836 | $ | 0.65 | $ | 0.69 | $ | 9,430 | $ | 9,689 | $ | 0.80 | $ | 0.86 | |||||||||||||||||
|
Restructuring charges, severance and reorganization costs |
50 |
38 |
-- | -- | 1,686 | 1,167 | 0.10 | 0.10 | |||||||||||||||||||||||||
| Storm insurance recovery, net of costs | (689 | ) | (427 | ) | (0.04 | ) | (0.04 | ) | (689 | ) | (427 | ) | (0.04 | ) | (0.04 | ) | |||||||||||||||||
| Acquisitions and other related costs | 145 | 119 | 0.01 | 0.01 | 719 | 629 | 0.05 | 0.06 | |||||||||||||||||||||||||
|
Gain on sale of investment securities, net of income tax |
-- | (61 | ) |
(0.01 |
) |
(0.01 | ) | -- | (61 | ) | (0.01 | ) | (0.01 | ) | |||||||||||||||||||
| Restoration of expired prior year R&D credit | -- | -- | -- | -- | -- | (385 | ) | (0.03 | ) | (0.03 | ) | ||||||||||||||||||||||
| Expiration of tax statutes of limitations, net | -- | (529 | ) | (0.04 | ) | (0.05 | ) | -- | (529 | ) | (0.04 | ) | (0.05 | ) | |||||||||||||||||||
| Non-GAAP measures(1) | $ | 7,834 | $ | 6,976 | $ | 0.58 | $ | 0.62 | $ | 11,146 | $ | 10,083 | $ | 0.84 | $ | 0.90 | |||||||||||||||||
|
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) |
||||||||||||||||||||||||||
| GAAP measures | $ | 880 | $ | 2,491 | $ | 0.20 | $ | 0.21 | $ | 4,642 | $ | 4,804 | $ | 0.37 | $ | 0.41 | |||||||||||||||||
|
Restructuring charges, severance and reorganization costs |
2,200 | 1,568 | 0.13 | 0.13 | 2,694 | 1,896 | 0.15 | 0.16 | |||||||||||||||||||||||||
| 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) | $ | 3,737 | $ | 3,182 | $ | 0.25 | $ | 0.27 | $ | 8,094 | $ | 6,182 | $ | 0.48 | $ | 0.53 | |||||||||||||||||
(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, and reorganization; costs and insurance recoveries related to Hurricane Sandy; acquisition-related costs; gains and losses related to investment securities; and fluctuations in tax-related reserves such as the liability for uncertain tax positions 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 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 per share may not agree to the total due to rounding.
Investor Contact:
(310) 477-3118
info@berkmanassociates.com
or
President & CEO
(201)
432-0463
Source:
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