UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of
Report (Date of earliest event reported): October 26, 2007
BEL
FUSE INC.
(Exact
name of registrant as specified in charter)
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New
Jersey
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0-11676
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22-1463699
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(State
or other
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(Commission
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(IRS
Employer
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|
jurisdiction
of
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File
Number)
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Identification
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incorporation)
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Number)
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206
Van Vorst Street, Jersey City, New Jersey
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07302
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant's
telephone number, including
area
code: (201) 432-0463
(Former
name or former address, if changed since
last
report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o
Soliciting
material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement
communications pursuant to Rule
14s-2(b) under the Exchange Act (17 CFR 240-14d-2(b))
o
Pre-commencement
pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM
2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On
October 26, 2007, Bel Fuse Inc. (the “Company”) issued a press release regarding
results for the nine and three months ended September 30, 2007. A copy of this
press release is being furnished as Exhibit 99.1 to this Current Report on
Form
8-K.
In
accordance with General Instruction B.6 of Form 8-K, the information in this
Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed”
for the purposes of Section 18 of the Securities Exchange Act of 1934, as
amended, or otherwise subject to the liability of that section, nor shall it
be
deemed incorporated by reference in any filing under the Securities Act of
1933,
as amended, except as shall be expressly set forth by specific reference in
such
a filing.
ITEM
9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(c)
Exhibits
As
described in Item 2.02 of this Report, the following Exhibit is furnished as
part of this Current Report on Form 8-K:
| 99.1 |
Press
Release of Bel Fuse Inc. dated October 26,
2007.
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SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
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BEL
FUSE INC
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||
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By:
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/s/
Daniel Bernstein
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Name:
Daniel Bernstein
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Title:
President
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Date:
October 26, 2007
EXHIBIT
INDEX
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Exhibit No.
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Description
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99.1
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Press
release, dated October 26, 2007 issued by the
Company.
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|||
 |
FOR
IMMEDIATE RELEASE
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Bel
Fuse Inc.
206
Van Vorst Street
Jersey
City, NJ 07302
www.belfuse.com
tel
201.432.0463
fax
201.432.9542
|
|
Investor
Contact:
Neil
Berkman Associates
(310)
826-5051
info@berkmanassociates.com
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Company
Contact:
Daniel
Bernstein
President
(201)
432-0463
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Bel
Reports Third Quarter and First Nine Months Results
Third
Quarter Earnings Exceed Analysts' Consensus Expectations
JERSEY
CITY, New Jersey,
October
26, 2007 -- Bel
Fuse Inc. (NASDAQ:BELFA & NASDAQ:BELFB)
today
announced financial results for the third quarter and first nine months of
2007
which exceeded analysts' consensus expectations.
Third
Quarter Results
Net
sales
for the three months ended September 30, 2007 were $66,379,000. This compares
to
record net sales of $73,260,000 for the third quarter of 2006. "Bel's Magnetics
and Modules products performed well during the period, and were the primary
driver for the sequential gain in third quarter revenue," said President Daniel
Bernstein.
Net
earnings for the third quarter of 2007 were $5,914,000 compared to net earnings
of $7,745,000 for the third quarter of 2006.
Net
earnings per diluted Class A common share were $0.47 for this year's third
quarter compared to $0.62 for the year-earlier. Net earnings per diluted Class
B
common share were $0.50 for this year's third quarter compared to $0.66 a year
ago.
Bel's
third quarter income tax provision was affected by the release of an accrual
resulting from the expiration of certain statutes of limitations and the
finalization of certain tax audits in Asia, offset by changes in estimates
for
prior years' taxes, upon finalization of 2006 tax returns.
"Labor
costs have increased in the PRC due to new regulations and a tight labor market.
We have responded by selling several non-manufacturing properties and by closing
our Macau manufacturing plant in September 2007 as part of a strategy to
consolidate manufacturing in our larger, more efficient facilities. In December,
we plan to close another small plant in the PRC. At the same time we continue
to
evaluate acquisition opportunities that have the potential to stimulate revenue
growth and further enhance profitability," Bernstein said.
Nine
Month Results
For
the
nine months ended September 30, 2007, net sales decreased 2.3% to $189,798,000
compared to $194,360,000 for the first nine months of 2006.
Net
earnings for the first nine months of 2007 were $16,081,000. This compares
to
net earnings for the first nine months of 2006 of $20,506,000.
For
the
nine months ended September 30, 2007, net earnings per diluted Class A common
share were $1.29 compared to $1.66 for the year-earlier period, and net earnings
per diluted Class B common share were $1.37 compared to $1.75 last
year.
(more)
Bel
Reports Third Quarter and First Nine Months Results
October
26, 2007
Page
Two
Balance
Sheet Highlights
At
September 30, 2007, Bel reported cash, cash equivalents and marketable
securities of approximately $106,220,000, working capital of approximately
$167,762,000, a current ratio of 5.7-to-1, total long-term obligations of
$17,218,000, and shareholders' equity of $235,682,000. At December 31, 2006,
cash, cash equivalents and marketable securities were approximately $92,337,000,
working capital was approximately $144,677,000, the current ratio was 4.5 to
1,
total long-term obligations were $4,728,000, and shareholders' equity was
$222,150,000. During the third quarter, Bel repurchased 114,100 Class A
shares.
Conference
Call
Bel
has
scheduled a conference call at 11:00 a.m. EDT today. A simultaneous webcast
of
the conference call may be accessed from the Investor
Info
link at
www.BelFuse.com.
A
replay will be available after 1:00 p.m. EDT, for a period of 20 days, at this
same Internet address. For a telephone replay, dial (800) 633-8284, reservation
#21345704 after 1:00 p.m. EDT.
About
Bel
Bel
(www.belfuse.com)
and its
subsidiaries are primarily engaged in the design, manufacture and sale of
products used in networking, telecommunications, high speed data transmission,
and consumer electronics. Products include magnetics (discrete components,
power
transformers and MagJack®s), modules (DC-DC converters, integrated analog front
end modules and custom designs), circuit protection (miniature, micro and
surface mount fuses) and interconnect devices (passive jacks, plugs and cable
assemblies). Bel operates facilities around the world.
Forward-Looking
Statements
Except
for historical information contained in this news release, the matters discussed
in this press release (including the Company's plan for a plant closing) 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 effect of business and
economic conditions; capacity and supply constraints or difficulties; product
development, commercializing or technological difficulties; the regulatory
and
trade environment; 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.
(table
attached)
BEL FUSE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) ( 000s omitted)
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Three Months Ended
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Nine Months Ended
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||||||||||||
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September 30,
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September 30,
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||||||||||||
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2007
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2006
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2007
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2006
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Net Sales
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$
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66,379
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$
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73,260
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$
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189,798
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$
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194,360
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|||||
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|||||||||||||
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Costs and expenses:
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|||||||||||||
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Cost of sales
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52,288
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55,809
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148,778
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146,058
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|||||||||
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Selling, general and administrative
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8,673
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9,096
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27,334
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28,707
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|||||||||
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Casualty loss
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—
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(67
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)
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—
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1,030
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||||||||
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Gain on sale of fixed assets
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(307
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)
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—
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(1,187
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)
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—
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|||||||
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60,654
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64,839
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174,925
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175,795
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Income from operations
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5,725
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8,421
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14,873
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18,565
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|||||||||
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Interest expense and other costs
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(1
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)
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(8
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)
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(125
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)
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(53
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)
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|||||
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Gain (loss) on sale of marketable securities - net
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—
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—
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2,508
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5,151
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Interest income
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1,144
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840
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2,980
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2,015
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|||||||||||||
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Earnings before provision for income taxes
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6,868
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9,253
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20,236
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25,678
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|||||||||
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Income tax provision
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954
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1,508
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4,155
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5,172
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Net earnings
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$
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5,914
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$
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7,745
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$
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16,081
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$
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20,506
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|||||
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Earnings per share (2006, as restated)
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|||||||||||||
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Earnings per Class A common share - basic
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$
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0.47
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$
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0.62
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$
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1.29
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$
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1.66
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|||||
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Earnings per Class A common share - diluted
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$
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0.47
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$
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0.62
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$
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1.29
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$
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1.66
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|||||
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Weighted average Class A common shares outstanding
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|||||||||||||
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Basic
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2,622
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2,703
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2,662
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2,703
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Diluted
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2,622
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2,703
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2,662
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2,703
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Earnings per Class B common share - basic
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$
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0.50
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$
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0.66
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$
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1.37
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$
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1.76
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|||||
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Earnings per Class B common share - diluted
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$
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0.50
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$
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0.66
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$
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1.37
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$
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1.75
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|||||
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Weighted average Class B common shares outstanding
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|||||||||||||
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Basic
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9,276
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9,126
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9,228
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9,086
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|||||||||
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Diluted
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9,292
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9,169
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9,254
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9,142
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|||||||||
CONDENSED CONSOLIDATED BALANCE SHEET DATA
( 000s omitted)
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Sep. 30,
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Dec. 31,
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||||||
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2007
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2006
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||||||
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(unaudited)
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(audited)
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||||||
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ASSETS
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|||||||
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Current Assets
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$
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203,315
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$
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186,296
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|||
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Property, plant & equipment, net
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40,225
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44,289
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|||||
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Goodwill
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28,117
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28,117
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|||||
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Intangibles & other assets
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16,796
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9,795
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|||||
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Total Assets
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$
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288,453
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$
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268,497
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|||
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LIABILITIES & EQUITY
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|||||||
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Current liabilities
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$
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35,553
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$
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41,619
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|||
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Non-current liabilities
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17,218
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4,728
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|||||
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Stockholders' equity
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235,682
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222,150
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|||||
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Total Liabilities & Equity
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$
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288,453
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$
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268,497
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