belfb20230530_8k.htm
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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): July 25, 2023
 
BELFUSE INC /NJ
BEL FUSE INC.
(Exact Name of Registrant as Specified in its Charter)
 
New Jersey
 
0-11676
 
22-1463699
(State of incorporation)
 
(Commission File Number)
 
(I.R.S. Employer Identification No.)
 
 
300 Executive Drive, Suite 300, West Orange, New Jersey
 
07052
(Address of principal executive offices)
 
(Zip Code)
 
Registrant's telephone number, including area code:  (201) 432-0463
 
206 Van Vorst Street, Jersey City, New Jersey  07302
(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 (see General Instruction A.2. below):
 
         Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
          Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
          Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act  (17 CFR 240.14d-2(b))
 
          Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of Each Class
 
Trading Symbol
 
Name of Exchange on Which Registered
Class A Common Stock ($0.10 par value)
 
BELFA
 
Nasdaq Global Select Market
Class B Common Stock ($0.10 par value)
 
BELFB
 
Nasdaq Global Select Market
 
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
 

 
 
Item 2.02.  Results of Operations and Financial Condition.
 
On July 26, 2023, Bel Fuse Inc. ("Bel" or the "Company") issued a press release regarding results for the three and six months ended June 30, 2023.  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.2 of Form 8-K, the information in Item 2.02 of 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 5.02.  Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
 
On July 25, 2023, Dennis Ackerman, President of the Company’s Bel Power Solutions segment and the Company’s Vice President of Operations, notified the Company’s board of directors that he intends to retire from his positions with the Company effective as of July 31, 2024.  During the transition period preceding his retirement, Mr. Ackerman has agreed to assist in transitioning his role and duties to his successor once identified.
 
 
Item 9.01.   Financial Statements and Exhibits.
 
(d) Exhibits
 
As described in Item 2.02 of this Report, the following Exhibit 99.1 is furnished as part of this Current Report on Form 8-K:
 
99.1   Press Release of Bel Fuse Inc. dated July 26, 2023, related to the financial results of the Company for the three and six months ended June 30, 2023.
104    Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
 

 
 
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 hereunto duly authorized.
 
Date:  July 26, 2023
 BEL FUSE INC.
 
 (Registrant)
 
 
 
 
By:  
 /s/Daniel Bernstein
 
Daniel Bernstein
 
President and Chief Executive Officer
 
 

 
 
EXHIBIT INDEX
 
 
 
Exhibit No.
 
 
Description
 
 
 
 
 99.1
 
Press release issued by the Company, dated July 26, 2023 related to the financial results of the Company for the three and six months ended June 30, 2023.
 
 
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)    
 
 
ex_527877.htm
 

Exhibit 99.1

 

https://cdn.kscope.io/d665c58866b1a7b1020bf90f92f341c3-image00001.jpg

 

 

FOR IMMEDIATE RELEASE

Bel Fuse Inc.

300 Executive Drive

Suite 300

West Orange, NJ 07052

www.belfuse.com

tel 201.432.0463

 

 

 

 

 

  

 

 

 

Bel Reports Second Quarter 2023 Results

Continued Execution Drives Solid Results

 

 

WEST ORANGE, NJ, Wednesday, July 26, 2023 -- Bel Fuse Inc. (Nasdaq: BELFA and BELFB) today announced preliminary financial results for the second quarter of 2023.

 

Second Quarter 2023 Highlights

Net sales of $168.8 million compared to $170.6 million in Q2-22. Non-GAAP adjusted net sales (which exclude raw material expedite fee invoicing) were $163.1 million in Q2-23, up from $161.4 million in Q2-22 

Gross profit margin of 32.9%, up from 26.6% in Q2-22

Net earnings of $27.8 million versus $17.0 million in Q2-22
Adjusted EBITDA of $28.6 million (17.0% of sales), up from $19.1 million (11.2% of sales) in Q2-22
Voluntary paydown of $40.0 million of debt
Divestment of non-core Czech business and closed sale of former headquarters building in Jersey City, New Jersey, resulting in gains of $1.1 million and $3.7 million, respectively

 

“This marks the seventh consecutive quarter of year-over-year gross margin improvement, driven by volume growth in key end markets and global discipline on pricing and costs. Excluding the impact of raw material expedite fees, overall sales were slightly higher in Q2-23 as compared to Q2-22. Our focus on margin expansion across the business, product and end market diversity, and capturing opportunistic growth have continued to translate into improved financial performance. We are very pleased to have achieved these results in an otherwise challenging macroeconomic environment,” said Daniel Bernstein, President and CEO.

 

"Within our Connectivity Solutions segment, commercial aerospace sales grew by 102% over Q2-22 to $15.9 million, a new record high for this end market. Sales into our defense end market were also strong in Q2-23 at $11.7 million, up 22% from Q2-22. Similar to Q1-23, gross margins for this segment benefited from increased volumes, better SKU management and cost savings from strategic initiatives implemented starting in 2022. We expect commercial aerospace and defense to be the primary growth drivers for this segment through the balance of the year.

 

"Our Power group achieved record sales this quarter of $87.1 million, largely driven by continued easing of the supply chain, allowing us to ship more product. The largest increase in revenue was seen in our front-end power products, which increased by $16.1 million in Q2-23 versus Q2-22. Additionally, eMobility power product sales continued its trend of sequential growth, reaching $8.5 million in Q2-23, an increase of 71% over Q2-22. 

 

"Our Magnetics segment continued to be affected by our networking end customers as they work through their remaining surplus of inventory in the channel. We believe this segment is showing some early signs of rebounding as we move into Q3. As previously announced, this segment is in the process of a facility consolidation initiative in China and this project remains on schedule, targeted for completion by the end of 2023. This is the largest of four facility consolidations started in 2022, and we anticipate collective annualized cost savings of approximately $5 million to fully take effect by the first quarter of 2024,” concluded Mr. Bernstein.

 

Farouq Tuweiq, CFO, added "In addition to delivering solid performance during the quarter, we completed several initiatives including divesting our Czech operations, selling our former headquarters building, conducting an executive offsite, and progressing with various plant consolidations. Looking ahead to the third quarter of 2023, we expect to see yet another shift in product mix on the horizon, anticipating a slight rebound in Magnetics taking hold while our Power segment will likely normalize a bit now that many past-due orders have been shipped. Based on information available as of today, our current estimate for the third quarter is GAAP net sales in the range of $157-$165 million. We anticipate gross profit margins to largely hold at second quarter 2023 levels. We believe we are well positioned from both a technological and customer relationship perspective to capture organic growth from the secular tailwinds that are expected to benefit our industry in the near and mid-term," concluded Mr. Tuweiq.

 

Non-GAAP financial measures, such as Non-GAAP net earnings, Non-GAAP EPS, EBITDA and Adjusted EBITDA, exclude restructuring charges, gains on sales of business and property, and certain litigation costs. Non-GAAP adjusted net sales exclude expedite fee invoicing. 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.

 

1

 

 

Conference Call

Bel has scheduled a conference call for 8:30 a.m. ET on Thursday, July 27, 2023 to discuss these results.  To participate in the conference call, investors should dial 877-407-0784, or 201-689-8560 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 at least 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 13739830 after 11:30am ET, also for 20 days.

 

About Bel

Bel (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, general industrial, high-speed data transmission, military, commercial aerospace, transportation and eMobility industries.  Bel's portfolio of products also finds application in the automotive, medical, broadcasting and consumer electronics markets.  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.

 

Company Contact:

Farouq Tuweiq  

Chief Financial Officer  

ir@belf.com

 

Investor Contact:

Three Part Advisors

Jean Marie Young, Managing Director or Steven Hooser, Partner
631-418-4339

jyoung@threepa.com; shooser@threepa.com

 

Cautionary Language Concerning Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, our guidance for the third quarter of 2023, our statements regarding our expectations for 2023, and our statements regarding future events, performance, plans, intentions, beliefs, expectations and estimates, including statements regarding matters such as trends in sales, supply, demand, orders and bookings, growth, costs and anticipated cost savings, margin, products and product mix, and end markets, and statements regarding the Company's positioning, its strategies, goals, focuses and initiatives, and the expected timing and potential benefits thereof, and statements regarding our expectations and beliefs regarding trends in the Company's industry and the macroeconomic environment generally. These forward-looking statements are made as of the date of this release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “forecast,” “outlook,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Bel’s control. Bel’s actual results could differ materially from those stated or implied in our forward-looking statements (including without limitation any of Bel’s projections) due to a number of factors, including but not limited to, the market concerns facing our customers, and risks for the Company’s business in the event of the loss of certain substantial customers; the continuing viability of sectors that rely on our products; the effects of business and economic conditions; the impact of public health crises (such as the governmental, social and economic effects of COVID-19); the effects of rising input costs, and cost changes generally; difficulties associated with integrating previously acquired companies; capacity and supply constraints or difficulties, including supply chain constraints or other challenges; difficulties associated with the availability of labor, and the risks of any labor unrest or labor shortages; risks associated with our international operations, including our substantial manufacturing operations in China; risks associated with restructuring programs or other strategic initiatives, including any difficulties in implementation or realization of the expected benefits or cost savings; product development, commercialization or technological difficulties; the regulatory and trade environment; risks associated with fluctuations in foreign currency exchange rates and interest rates; 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. legal and regulatory requirements, including tax laws, trade and tariff policies; and the risks detailed in Bel’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and in subsequent reports filed by Bel with the Securities and Exchange Commission, as well as other documents that may be filed by Bel from time to time with the Securities and Exchange Commission. 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. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Bel’s views as of the date of this press release. Bel anticipates that subsequent events and developments will cause its views to change. Bel undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Bel’s views as of any date subsequent to the date of this press release.

 

Non-GAAP Financial Measures

The Non-GAAP measures identified in this press release as well as in the supplementary information to this press release (Non-GAAP adjusted net sales, 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 Information

We 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]

 

2

 

 

Bel Fuse Inc.

Supplementary Information(1)

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

 

   

Three Months Ended

   

Six Months Ended

 
   

June 30,

   

June 30,

 
   

2023

   

2022

   

2023

   

2022

 
                                 

Net sales

  $ 168,777     $ 170,572     $ 341,121     $ 307,290  

Cost of sales

    113,240       125,120       231,920       227,879  

Gross profit

    55,537       45,452       109,201       79,411  

As a % of net sales

    32.9 %     26.6 %     32.0 %     25.8 %
                                 

Research and development costs

    6,006       4,661       11,229       9,505  

Selling, general and administrative expenses

    25,135       23,965       50,432       44,992  

As a % of net sales

    14.9 %     14.0 %     14.8 %     14.6 %

Restructuring charges

    709       31       4,215       31  

Gain on sale of property

    (3,672 )     -       (3,672 )     -  
                                 

Income from operations

    27,359       16,795       46,997       24,883  

As a % of net sales

    16.2 %     9.8 %     13.8 %     8.1 %
                                 

Gain on sale of business

    1,115       -       1,115       -  

Interest expense

    (908 )     (779 )     (1,890 )     (1,467 )

Other expense, net

    (270 )     (1,724 )     (190 )     (2,496 )

Earnings before income taxes

    27,296       14,292       46,032       20,920  
                                 

(Benefit from) provision for income taxes

    (479 )     (2,746 )     3,685       (1,182 )

Effective tax rate

    -1.8 %     -19.2 %     8.0 %     -5.7 %

Net earnings

  $ 27,775     $ 17,038     $ 42,347     $ 22,102  

As a % of net sales

    16.5 %     10.0 %     12.4 %     7.2 %
                                 

Weighted average number of shares outstanding:

                               

Class A common shares - basic and diluted

    2,142       2,144       2,142       2,145  

Class B common shares - basic and diluted

    10,634       10,362       10,636       10,368  
                                 

Net earnings per common share:

                               

Class A common shares - basic and diluted

  $ 2.08     $ 1.30     $ 3.17     $ 1.68  

Class B common shares - basic and diluted

  $ 2.19     $ 1.37     $ 3.34     $ 1.78  

 

(1) The supplementary information included in this press release for 2023 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.

 

   

 

3
4

 

 

Bel Fuse Inc.

Supplementary Information(1)

Condensed Consolidated Balance Sheets

(in thousands, unaudited)

 

   

June 30, 2023

   

December 31, 2022

 

Assets

               

Current assets:

               

Cash and cash equivalents

  $ 65,053     $ 70,266  

Accounts receivable, net

    106,913       107,274  

Inventories

    157,265       172,465  

Other current assets

    25,023       31,403  

Total current assets

    354,254       381,408  

Property, plant and equipment, net

    38,446       36,833  

Right-of-use assets

    22,771       21,551  

Related-party note receivable

    1,958       -  

Equity method investment

    11,009       -  

Goodwill and other intangible assets, net

    77,918       79,210  

Other assets

    46,063       41,464  

Total assets

  $ 552,419     $ 560,466  
                 

Liabilities and Stockholders' Equity

               

Current liabilities:

               

Accounts payable

  $ 51,754     $ 64,589  

Operating lease liability, current

    6,181       5,870  

Other current liabilities

    68,939       65,845  

Total current liabilities

    126,874       136,304  

Long-term debt

    60,000       95,000  

Operating lease liability, long-term

    16,623       15,742  

Other liabilities

    44,432       51,074  

Total liabilities

    247,929       298,120  

Stockholders' equity

    304,490       262,346  

Total liabilities and stockholders' equity

  $ 552,419     $ 560,466  

 

(1) The supplementary information included in this press release for 2023 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.

 

 

5

 

 

Bel Fuse Inc.

Supplementary Information(1)

Condensed Consolidated Statements of Cash Flows

(in thousands, unaudited)

 

   

Six Months Ended

 
   

June 30,

 
   

2023

   

2022

 
                 

Cash flows from operating activities:

               

Net earnings

  $ 42,347     $ 22,102  

Adjustments to reconcile net earnings to net cash provided by operating activities:

               

Depreciation and amortization

    6,571       8,316  

Stock-based compensation

    1,851       1,087  

Amortization of deferred financing costs

    33       34  

Deferred income taxes

    (3,128 )     (2,965 )

Net unrealized losses (gains) on foreign currency revaluation

    505       (373 )

Gain on sale of property

    (3,672 )     -  

Gain on sale of business

    (1,115 )     -  

Other, net

    (1,124 )     90  

Changes in operating assets and liabilities:

               

Accounts receivable, net

    (236 )     (12,704 )

Unbilled receivables

    5,018       4,998  

Inventories

    13,473       (25,284 )

Accounts payable

    (11,544 )     6,323  

Accrued expenses

    2,448       4,421  

Other operating assets/liabilities, net

    (10,771 )     5,101  

Net cash provided by operating activities

    40,656       11,146  
                 

Cash flows from investing activities:

               

Purchases of property, plant and equipment

    (7,081 )     (3,546 )

Payment for equity method investment

    (9,975 )     -  

Proceeds from sale of property, plant and equipment

    5,239       87  

Proceeds from sale of business

    5,198       -  

Net cash used in investing activities

    (6,619 )     (3,459 )
                 

Cash flows from financing activities:

               

Dividends paid to common stockholders

    (1,658 )     (1,646 )

Repayments under revolving credit line

    (40,000 )     -  

Borrowings under revolving credit line

    5,000       -  

Purchase of treasury stock

    -       (349 )

Net cash used in financing activities

    (36,658 )     (1,995 )
                 

Effect of exchange rate changes on cash and cash equivalents

    (2,592 )     (1,618 )
                 

Net (decrease) increase in cash and cash equivalents

    (5,213 )     4,074  

Cash and cash equivalents - beginning of period

    70,266       61,756  

Cash and cash equivalents - end of period

  $ 65,053     $ 65,830  
                 
                 

Supplementary information:

               

Cash paid during the period for:

               

Income taxes, net of refunds received

  $ 10,358     $ 4,614  

Interest payments

  $ 2,762     $ 1,105  

ROU assets obtained in exchange for lease obligations

  $ 5,172     $ 5,734  

 

(1) The supplementary information included in this press release for 2023 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.

 

6

 

Bel Fuse Inc.

Supplementary Information(1)

Product Group Highlights

(dollars in thousands, unaudited)

 

 

 

   

Sales

   

Gross Margin

 
   

Q2-23

   

Q2-22

   

% Change

   

Q2-23

   

Q2-22

   

Basis Point Change

 

Power Solutions and Protection

  $ 87,091     $ 71,026       22.6 %     35.7 %     28.2 %     750  

Magnetic Solutions

    26,843       53,450       -49.8 %     24.6 %     28.2 %     (360 )

Connectivity Solutions

    54,843       46,096       19.0 %     37.4 %     27.6 %     980  

Total

  $ 168,777     $ 170,572       -1.1 %     32.9 %     26.6 %     630  

 

 

   

Sales

   

Gross Margin

 
   

YTD June 2023

   

YTD June 2022

   

% Change

   

YTD June 2023

   

YTD June 2022

   

Basis Point Change

 

Power Solutions and Protection

   $ 170,272      $ 129,816       31.2 %     35.7 %     27.7 %     800  

Magnetic Solutions

    62,610       87,665       -28.6 %     23.6 %     25.1 %     (150 )

Connectivity Solutions

    108,239       89,809       20.5 %     35.9 %     27.1 %     880  

Total

   $ 341,121      $ 307,290       11.0 %     32.0 %     25.8 %     620  

 

 

(1) The supplementary information included in this press release for 2023 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.

 

 

7

 

 

Bel Fuse Inc.

Supplementary Information(1)

Reconciliation of GAAP Net Earnings to EBITDA and Adjusted EBITDA(2)

(in thousands, unaudited)

 

 

   

Three Months Ended

   

Six Months Ended

 
   

June 30,

   

June 30,

 
   

2023

   

2022

   

2023

   

2022

 
                                 

GAAP Net earnings

  $ 27,775     $ 17,038     $ 42,347     $ 22,102  

Interest expense

    908       779       1,890       1,467  

(Benefit from) provision for income taxes

    (479 )     (2,746 )     3,685       (1,182 )

Depreciation and amortization

    3,335       4,015       6,571       8,316  

EBITDA

  $ 31,539     $ 19,086     $ 54,493     $ 30,703  

% of net sales

    18.7 %     11.2 %     16.0 %     10.0 %
                                 

Unusual or special items:

                               

Restructuring charges

    709       31       4,215       31  

Gain on sale of property

    (3,672 )     -       (3,672 )     -  

Gain on sale of Czech Republic business

    (1,115 )     -       (1,115 )     -  

MPS litigation costs

    1,160       -       2,771       -  
                                 

Adjusted EBITDA

  $ 28,621     $ 19,117     $ 56,692     $ 30,734  

% of net sales

    17.0 %     11.2 %     16.6 %     10.0 %

 

(1) The supplementary information included in this press release for 2023 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.

 

 

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Bel Fuse Inc.

Supplementary Information(1)

Reconciliation of GAAP Measures to Non-GAAP Measures(2)

(in thousands, except per share data)

(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 on the consolidated statements of operations.

 

   

Three Months Ended June 30, 2023

   

Three Months Ended June 30, 2022

 

Reconciling Items

 

Earnings before taxes

   

Benefit from income taxes

   

Net earnings

   

Class A EPS(3)

   

Class B EPS(3)

   

Earnings before taxes

   

Benefit from income taxes

   

Net earnings

   

Class A EPS(3)

   

Class B EPS(3)

 
                                                                                 

GAAP measures

  $ 27,296     $ (479 )   $ 27,775     $ 2.08     $ 2.19     $ 14,292     $ (2,746 )   $ 17,038     $ 1.30     $ 1.37  

Restructuring charges

    709       118       591       0.04       0.05       31       4       27       -       -  

Gain on sale of property

    (3,672 )     (734 )     (2,938 )     (0.22 )     (0.23 )     -       -       -       -       -  

Gain on sale of Czech Republic business

    (1,115 )     (56 )     (1,059 )     (0.08 )     (0.08 )     -       -       -       -       -  

MPS litigation costs

    1,160       267       893       0.07       0.07       -       -       -       -       -  

Non-GAAP measures

  $ 24,378     $ (884 )   $ 25,262     $ 1.89     $ 1.99     $ 14,323     $ (2,742 )   $ 17,065     $ 1.30     $ 1.38  

 

   

Six Months Ended June 30, 2023

   

Six Months Ended June 30, 2022

 

Reconciling Items

 

Earnings before taxes

   

Provision for income taxes

   

Net earnings

   

Class A EPS(3)

   

Class B EPS(3)

   

Earnings before taxes

   

Benefit from income taxes

   

Net earnings

   

Class A EPS(3)

   

Class B EPS(3)

 
                                                                                 

GAAP measures

  $ 46,032     $ 3,685     $ 42,347     $ 3.17     $ 3.34     $ 20,920     $ (1,182 )   $ 22,102     $ 1.68     $ 1.78  

Restructuring charges

    4,215       600       3,615       0.27       0.29       31       4       27       -       -  

Gain on sale of property

    (3,672 )     (734 )     (2,938 )     (0.22 )     (0.23 )     -       -       -       -       -  

Gain on sale of Czech Republic business

    (1,115 )     (56 )     (1,059 )     (0.08 )     (0.08 )     -       -       -       -       -  

MPS litigation costs

    2,771       637       2,134       0.16       0.17       -       -       -       -       -  

Non-GAAP measures

  $ 48,231     $ 4,132     $ 44,099     $ 3.30     $ 3.48     $ 20,951     $ (1,178 )   $ 22,129     $ 1.68     $ 1.79  

 

(1) The supplementary information included in this press release for 2023 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.

 

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