belfb20231110_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): February 21, 2024
 
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
 
Not Applicable
(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 February 21, 2024, Bel Fuse Inc. ("Bel" or the "Company") issued a press release regarding results for the three and twelve months ended December 31, 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 8.01. Other Events.
 
On February 21, 2024, the Board of Directors of the Company approved a share repurchase program (the “Repurchase Program”), pursuant to which the Company is authorized to repurchase up to $25.0 million of shares of the Company’s outstanding Class A Common Stock, par value $0.10 per share (the “Class A Stock”) and Class B Common Stock, par value $0.10 per share (the “Class B Stock”, and collectively with the Class A Common Stock, the “Common Stock”). The aggregate $25.0 million available for repurchases under the Repurchase Program has been suballocated for purchases of Class A Shares and Class B shares in portions of $4.0 million and $21.0 million, respectively, prorated to take into account the number of outstanding shares of each respective class. Shares of Common Stock may be Repurchased pursuant to the Repurchase Program in open market, privately negotiated or block transactions or otherwise from time to time, depending upon market conditions and other factors, and in accordance with applicable law and regulations of the Securities and Exchange Commission, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended.
 
All shares of Common Stock repurchased pursuant to the Repurchase Program will be cancelled and be available for use and reissuance as and when determined by the Board of Directors including, without limitation, pursuant to the Company’s 2020 Equity Compensation Plan or in connection with the administration of any other employee benefit plan maintained by the Company.
 
The Repurchase Program has no expiration date. The Repurchase Program does not obligate the Company to repurchase any dollar amount or number of shares, and the Repurchase Program may be suspended or terminated at any time. The timing and actual number of shares repurchased will depend on a variety of factors including price, market conditions, corporate and regulatory requirements and the consideration of other uses of cash including other investment opportunities. Information regarding share repurchases will be available in the Company’s periodic reports on Form 10-Q and 10-K filed with the Securities and Exchange Commission as required by the applicable rules promulgated under the Securities Exchange Act of 1934, as amended.
 
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 February 21, 2024, related to the financial results of the Company for the fourth quarter and year ended December 31, 2023, furnished hereto.
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:  February 21, 2024
 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 February 21, 2024 related to the financial results of the Company for the three and twelve months ended December 31, 2023.
 
 
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)    
 
 
ex_595038.htm
 

Exhibit 99.1

 

https://cdn.kscope.io/417330a4c9cd2f9b19dd2b76d3626b8b-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 Fourth Quarter and Full Year 2023 Results

Announces New $25 Million Share Repurchase Program

 

 

WEST ORANGE, NJ, Wednesday, February 21, 2024 -- Bel Fuse Inc. (Nasdaq: BELFA and BELFB) today announced preliminary financial results for the fourth quarter and full year of 2023.

 

Fourth Quarter 2023 Highlights

Net sales of $140.0 million compared to $169.2 million in Q4-22. Non-GAAP adjusted net sales (which exclude expedite fee revenue) were $139.6 million in Q4-23 as compared to $158.7 million in Q4-22 

Gross profit margin of 36.6%, up from 31.0% in Q4-22

Net earnings of $12.0 million versus $14.0 million in Q4-22
Adjusted EBITDA of $24.0 million (17.1% of sales) as compared to $25.0 million (14.8% of sales) in Q4-22

Full Year 2023 Highlights
Net sales of $639.8 million compared to $654.2 million in 2022. Non-GAAP adjusted net sales (which exclude expedite fee revenue) were $625.0 million in 2023, up from $621.7 million in 2022
Gross profit margin of 33.7%, up from 28.0% in 2022
Net earnings of $73.8 million versus $52.7 million in 2022
Adjusted EBITDA of $110.5 million (17.3% of sales), up from $83.0 million (12.7% of sales) in 2022

 

“In closing out 2023, we were very pleased with the financial turnaround that the team was able to achieve in a tough macro environment,” said Daniel Bernstein, President and CEO. “Our diversity in product segments and end markets served continues to be our strength, allowing us to focus on the future and growth. The Power and Connectivity segments were successful in mitigating the effects of a challenging Magnetics segment. Based on our strong 2023 cash flow generation, the Board has authorized a $25 million share repurchase program. This program is an output of our ongoing evaluation of the optimal use of capital and the various alternatives at present.

 

“In January 2024, Bel celebrated its 75th year in business. In reflecting on our history and progress made over the decades, we understand the short-term cycles that our industry and end markets will face from time to time. We have always been successful in persevering and coming out on the other side as a stronger company. The time and effort spent by our global team in 2023 to strengthen Bel’s foundation will serve us well in the years to come as growth returns and new end markets take hold,” concluded Mr. Bernstein.

 

Farouq Tuweiq, CFO, added “Our priority for 2023 was resetting Bel operationally and this was achieved through a number of initiatives - the largest one being the completion of our previously-announced Magnetics facility consolidations in China. In light of the current level of sales within our Magnetics group, the more efficient cost structure now in place for this segment was particularly well-timed. During the fourth quarter of 2023, we began another consolidation project at our Pennsylvania facility within the Connectivity segment. 

 

“As our focus in streamlining the organization continues its momentum with material milestones achieved, the team will reemphasize and dedicate its focus on top line growth. It is expected that 2024 will be off to a slow start with various indicators forecasting a possible rebound in the second half of the year as inventory in the channel normalizes. Based on information available today, GAAP net sales in the first quarter of 2024 are expected to be in the range of $125 to $135 million, with gross margins holding at the full year 2023 level. We are ready and excited for another year of coordinated efforts across our versatile and resilient global team in building Bel for success in the years to come,” 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 properties, loss on liquidation of a foreign subsidiary and certain litigation costs. Non-GAAP adjusted net sales exclude expedite fee revenue. 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, February 22, 2024 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 30 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 13743808 after 12:30 pm ET, also for 30 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 first quarter of 2024, and our statements regarding our expectations for 2024 generally including anticipated financial performance and trends for the coming year, and our statements regarding future events, performance, plans, intentions, beliefs, expectations and estimates, including statements regarding matters such as trends and expectations as to our sales, gross margin, inventory, products and product segments, end markets, growth, costs and cost structures, consolidation projects and initiatives, focuses on streamlining and top line growth, and statements regarding the Company's positioning, its strategies, future progress, investments, plans, targets, goals, and other focuses and initiatives, and the expected timing and potential benefits thereof, and statements regarding our expectations and beliefs regarding trends in the Company's business and 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 ongoing governmental, social and economic effects and ultimate impact 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

   

Year Ended

 
   

December 31,

   

December 31,

 
   

2023

   

2022

   

2023

   

2022

 
                                 

Net sales

  $ 140,010     $ 169,203     $ 639,813     $ 654,233  

Cost of sales

    88,827       116,696       423,964       470,780  

Gross profit

    51,183       52,507       215,849       183,453  

As a % of net sales

    36.6 %     31.0 %     33.7 %     28.0 %
                                 

Research and development costs

    5,966       5,857       22,487       20,238  

Selling, general and administrative expenses

    24,942       25,126       99,091       92,342  

As a % of net sales

    17.8 %     14.8 %     15.5 %     14.1 %

Restructuring charges

    3,808       3,322       10,114       7,322  

Gains on sale of properties

    -       -       (3,819 )     (1,596 )
                                 

Income from operations

    16,467       18,202       87,976       65,147  

As a % of net sales

    11.8 %     10.8 %     13.8 %     10.0 %
                                 

Gain on sale of Czech Republic business

    -       -       980       -  

Interest expense

    (448 )     (968 )     (2,850 )     (3,379 )

Other income/expense, net

    (2,520 )     218       (2,806 )     (2,709 )

Earnings before income taxes

    13,499       17,452       83,300       59,059  
                                 

Provision for income taxes

    1,463       3,412       9,469       6,370  

Effective tax rate

    10.8 %     19.6 %     11.4 %     10.8 %

Net earnings

  $ 12,036     $ 14,040     $ 73,831     $ 52,689  

As a % of net sales

    8.6 %     8.3 %     11.5 %     8.1 %
                                 

Weighted average number of shares outstanding:

                               

Class A common shares - basic and diluted

    2,142       2,142       2,142       2,143  

Class B common shares - basic and diluted

    10,628       10,502       10,634       10,394  
                                 

Net earnings per common share:

                               

Class A common shares - basic and diluted

  $ 0.90     $ 1.06     $ 5.52     $ 4.01  

Class B common shares - basic and diluted

  $ 0.95     $ 1.12     $ 5.83     $ 4.24  

 

(1) The supplementary information included in this press release for 2023 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K with the Securities and Exchange Commission.

 

   

 

3

 

 

Bel Fuse Inc.

Supplementary Information(1)

Condensed Consolidated Balance Sheets

(in thousands, unaudited)

 

   

December 31, 2023

   

December 31, 2022

 

Assets

               

Current assets:

               

Cash and cash equivalents

  $ 89,371     $ 67,740  

Held to maturity U.S. Treasury securities

    37,548       -  

Accounts receivable, net

    84,129       107,274  

Inventories

    136,540       172,465  

Other current assets

    33,890       33,929  

Total current assets

    381,478       381,408  

Property, plant and equipment, net

    36,533       36,833  

Right-of-use assets

    20,481       21,551  

Related-party note receivable

    2,152       -  

Equity method investment

    10,282       -  

Goodwill and other intangible assets, net

    76,033       79,210  

Other assets

    44,672       41,464  

Total assets

  $ 571,631     $ 560,466  
                 

Liabilities and Stockholders' Equity

               

Current liabilities:

               

Accounts payable

  $ 40,441     $ 64,589  

Operating lease liability, current

    6,350       5,870  

Other current liabilities

    63,818       65,845  

Total current liabilities

    110,609       136,304  

Long-term debt

    60,000       95,000  

Operating lease liability, long-term

    14,212       15,742  

Other liabilities

    46,252       51,074  

Total liabilities

    231,073       298,120  

Stockholders' equity

    340,558       262,346  

Total liabilities and stockholders' equity

  $ 571,631     $ 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 Annual Report on Form 10-K with the Securities and Exchange Commission.

 

 

4

 

 

Bel Fuse Inc.

Supplementary Information(1)

Condensed Consolidated Statements of Cash Flows

(in thousands, unaudited)

 

   

Year Ended

 
   

December 31,

 
   

2023

   

2022

 
                 

Cash flows from operating activities:

               

Net earnings

  $ 73,831     $ 52,689  

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

               

Depreciation and amortization

    13,312       14,863  

Stock-based compensation

    3,486       2,382  

Amortization of deferred financing costs

    33       34  

Deferred income taxes

    (3,872 )     (4,594 )

Net unrealized losses (gains) on foreign currency revaluation

    1,356       (278 )

Gains on sale/disposal of property, plant and equipment

    (2,117 )     (1,596 )

Gain on sale of Czech Republic business

    (980 )     -  

Other, net

    (1,037 )     1,195  

Changes in operating assets and liabilities:

               

Accounts receivable, net

    22,500       (20,702 )

Unbilled receivables

    5,451       10,031  

Inventories

    33,613       (36,592 )

Accounts payable

    (22,745 )     1,522  

Accrued expenses

    5,356       10,933  

Accrued restructuring costs

    (1,228 )     6,784  

Income taxes payable

    (4,976 )     1,958  

Other operating assets/liabilities, net

    (13,634 )     (898 )

Net cash provided by operating activities

    108,349       37,731  
                 

Cash flows from investing activities:

               

Purchases of property, plant and equipment

    (12,126 )     (8,832 )

Purchases of held to maturity U.S. Treasury securities

    (57,466 )     -  

Proceeds from held to maturity securities

    19,918       -  

Payment for noncontrolling investment

    (10,282 )     -  

Investment in related party notes receivable

    (2,152 )     -  

Proceeds from sale of property, plant and equipment

    6,036       1,833  

Proceeds from sale of business

    5,063       -  

Net cash used in investing activities

    (51,009 )     (6,999 )
                 

Cash flows from financing activities:

               

Dividends paid to common stockholders

    (3,492 )     (3,413 )

Repayments under revolving credit line

    (40,000 )     (17,500 )

Borrowings under revolving credit line

    5,000       -  

Purchase of treasury stock

    (105 )     (349 )

Net cash used in financing activities

    (38,597 )     (21,262 )
                 

Effect of exchange rate changes on cash and cash equivalents

    2,888       (3,486 )
                 

Net increase in cash and cash equivalents

    21,631       5,984  

Cash and cash equivalents - beginning of period

    67,740       61,756  

Cash and cash equivalents - end of period

  $ 89,371     $ 67,740  
                 
                 

Supplementary information:

               

Cash paid during the period for:

               

Income taxes, net of refunds received

  $ 25,056     $ 14,618  

Interest payments

  $ 4,729     $ 3,371  

ROU assets obtained in exchange for lease obligations

  $ 5,999     $ 8,052  

 

(1) The supplementary information included in this press release for 2023 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K with the Securities and Exchange Commission.

 

5

 

 

Bel Fuse Inc.

Supplementary Information(1)

Product Group Highlights

(dollars in thousands, unaudited)

 

 

 

   

Sales

   

Gross Margin

 
   

Q4-23

   

Q4-22

   

% Change

   

Q4-23

   

Q4-22

   

Basis Point Change

 

Power Solutions and Protection

  $ 68,971     $ 82,119       -16.0 %     40.2 %     33.0 %     720  

Connectivity Solutions

    50,562       47,020       7.5 %     29.3 %     23.6 %     570  

Magnetic Solutions

    20,477       40,064       -48.9 %     17.1 %     29.5 %     (1,240 )

Total

  $ 140,010     $ 169,203       -17.3 %     36.6 %     31.0 %     560  

 

 

 

Sales

   

Gross Margin

 
 

FY 2023

   

FY 2022

   

% Change

   

FY 2023

   

FY 2022

   

Basis Point Change

 

Power Solutions and Protection

  314,105       288,366       8.9 %     38.1 %     30.5 %     760  

Connectivity Solutions

  210,572       187,085       12.6 %     34.2 %     25.9 %     830  

Magnetic Solutions

  115,136       178,782       -35.6 %     22.0 %     27.6 %     (560 )

Total

$ 639,813     $ 654,233       -2.2 %     33.7 %     28.0 %     570  

 

 

(1) The supplementary information included in this press release for 2023 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K with the Securities and Exchange Commission.

 

 

6

 

 

 

Bel Fuse Inc.

Supplementary Information(1)

Reconciliation of GAAP Net Sales to Non-GAAP Adjusted Net Sales(2)

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

(in thousands, unaudited)

 

 

 

 

   

Three Months Ended

   

Year Ended

 
   

December 31,

    December 31,  
   

2023

   

2022

   

2023

   

2022

 
                                 

GAAP net sales

  $ 140,010     $ 169,203     $ 639,813     $ 654,233  

Expedite fee revenue

    425       10,484       14,850       32,507  

Non-GAAP adjusted net sales

  $ 139,585     $ 158,719     $ 624,963     $ 621,726  

 

 

   

Three Months Ended

   

Year Ended

 
   

December 31,

   

December 31,

 
   

2023

   

2022

   

2023

   

2022

 
                                 

GAAP Net earnings

  $ 12,036     $ 14,040     $ 73,831     $ 52,689  

Interest expense

    448       968       2,850       3,379  

Provision for income taxes

    1,463       3,412       9,469       6,370  

Depreciation and amortization

    3,350       3,259       13,312       14,863  

EBITDA

  $ 17,297     $ 21,679     $ 99,462     $ 77,301  

% of net sales

    12.4 %     12.8 %     15.5 %     11.8 %
                                 

Unusual or special items:

                               

Restructuring charges

    3,808       3,322       10,114       7,322  

MPS litigation costs

    128       -       3,031       -  

Gain on sale of Czech Republic business

    -       -       (980 )     -  

Gain on sale of properties

    -       -       (3,819 )     (1,596 )

Loss on liquidation of foreign subsidiary

    2,724       -       2,724       -  

Adjusted EBITDA

  $ 23,957     $ 25,001     $ 110,532     $ 83,027  

% of net sales

    17.1 %     14.8 %     17.3 %     12.7 %

 

(1) The supplementary information included in this press release for 2023 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K with the Securities and Exchange Commission.

 

(2) In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP adjusted net sales, 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 December 31, 2023

   

Three Months Ended December 31, 2022

 

Reconciling Items

 

Earnings before taxes

   

Provision for income taxes

   

Net earnings

   

Class A EPS(3)

   

Class B EPS(3)

   

Earnings before taxes

   

Provision for income taxes

   

Net earnings

   

Class A EPS(3)

   

Class B EPS(3)

 
                                                                                 

GAAP measures

  $ 13,499     $ 1,463     $ 12,036     $ 0.90     $ 0.95     $ 17,452     $ 3,412     $ 14,040     $ 1.06     $ 1.12  

Restructuring charges

    3,808       675       3,133       0.24       0.25       3,322       505       2,817       0.21       0.22  

MPS litigation costs

    128       29       99       0.01       0.01       -       -       -       -       -  

Gain on sale of Czech Republic business

    -       -       -       -       -       -       -       -       -       -  

Gain on sale of properties

    -       -       -       -       -       -       -       -       -       -  

Loss on liquidation of foreign subsidiary

    2,724       681       2,043       0.15       0.16       -       -       -       -       -  

Non-GAAP measures

  $ 20,159     $ 2,848     $ 17,311     $ 1.29     $ 1.37     $ 20,774     $ 3,917     $ 16,857     $ 1.27     $ 1.35  

 

   

Year Ended December 31, 2023

   

Year Ended December 31, 2022

 

Reconciling Items

 

Earnings before taxes

   

Provision for income taxes

   

Net earnings

   

Class A EPS(3)

   

Class B EPS(3)

   

Earnings before taxes

   

Provision for income taxes

   

Net earnings

   

Class A EPS(3)

   

Class B EPS(3)

 
                                                                                 

GAAP measures

  $ 83,300     $ 9,469     $ 73,831     $ 5.52     $ 5.83     $ 59,059     $ 6,370     $ 52,689     $ 4.01     $ 4.24  

Restructuring charges

    10,114       1,682       8,432       0.63       0.67       7,322       1,495       5,827       0.45       0.47  

MPS litigation costs

    3,031       696       2,335       0.18       0.18       -       -       -       -       -  

Gain on sale of Czech Republic business

    (980 )     (49 )     (931 )     (0.07 )     (0.07 )     -       -       -       -       -  

Gain on sale of properties

    (3,819 )     (763 )     (3,056 )     (0.23 )     (0.24 )     (1,596 )     (367 )     (1,229 )     (0.09 )     (0.10 )

Loss on liquidation of foreign subsidiary

    2,724       681       2,043       0.15       0.16       -       -       -       -       -  

Non-GAAP measures

  $ 94,370     $ 11,716     $ 82,654     $ 6.19     $ 6.53     $ 64,785     $ 7,498     $ 57,287     $ 4.36     $ 4.61  

 

(1) The supplementary information included in this press release for 2023 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K with the Securities and Exchange Commission.

(2) In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP adjusted net sales, 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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