Bel Reports 72% Growth in Fourth Quarter Net Sales to $83.7 Million
2010 Net Sales Increased 66% to a Record
For the quarter, the Company reported that net sales increased 72% to a
fourth quarter record
"We are pleased with the Company's strong top and bottom line
performance for the fourth quarter and 2010, which reflected solid
demand for all of Bel's product groups and strong results at Cinch
Connectors. The increase in sales raised margins, as a percentage of
sales, and we achieved efficiency gains at our plants in
As previously announced, the Company incurred an
Fourth Quarter Results
For the three months ended
The net loss for the fourth quarter of 2010 was
Adjusted to exclude the litigation charge and various other amounts,
non-GAAP net income for the fourth quarter of 2010 was
The net loss per Class A common share for the fourth quarter of 2010 was
The net loss per Class B common share was
Cost of sales decreased to 78.5% of sales for the fourth quarter of 2010, compared to 85.3% of sales for the fourth quarter of 2009.
Adjusted to exclude the litigation charge and various other amounts,
non-GAAP income from operations for the fourth quarter of 2010 was
At
2010 Results
For the twelve months ended
Net earnings per diluted Class A common share for 2010 were
Conference Call
Bel has scheduled a conference call at
About Bel
Bel (www.belfuse.com) and its divisions are primarily engaged in the design, manufacture, and sale of products used in networking, telecommunications, high-speed data transmission, commercial aerospace, military, transportation, and consumer electronics. Products include magnetics (discrete components, power transformers and MagJack® connectors with integrated magnetics), modules (DC-DC converters, 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, 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 news release, the
matters discussed in this press release (including plans to appeal the
SynQor verdict) 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 effects of business and economic conditions; capacity
and supply constraints or difficulties; product development,
commercializing or technological difficulties; the regulatory and trade
environment; risks associated with foreign currencies; uncertainties
associated with legal proceedings; the market's acceptance of the
Company's new products and competitive responses to those new products;
and the risk factors detailed from time to time in the Company's
| BEL FUSE INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||||
| (000s omitted, except for per share data) | ||||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||||||||||||||
| Net Sales | $ | 83,697 | $ | 48,665 | $ | 302,539 | $ | 182,753 | ||||||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||||||||||
| Cost of sales | 65,661 | 41,535 | 239,185 | 161,454 | ||||||||||||||||||||||||
| Selling, general and administrative | 9,801 | 7,988 | 40,443 | 30,055 | ||||||||||||||||||||||||
| Impairment of goodwill | -- | -- | -- | 12,875 | ||||||||||||||||||||||||
| Litigation charge | 8,103 | -- | 8,103 | -- | ||||||||||||||||||||||||
| Restructuring charge | -- | -- | -- | 413 | ||||||||||||||||||||||||
| Loss (gain) loss on sale of property, plant and equipment | 17 | (50 | ) | (352 | ) | (4,693 | ) | |||||||||||||||||||||
| Total costs and expenses | 83,582 | 49,473 | 287,379 | 200,104 | ||||||||||||||||||||||||
| Income (loss) from operations | 115 | (808 | ) | 15,160 | (17,351 | ) | ||||||||||||||||||||||
| Gain on sale of investments | -- | 5,390 | -- | 7,129 | ||||||||||||||||||||||||
| Interest income and other, net | 95 | 125 | 420 | 527 | ||||||||||||||||||||||||
| Earnings (loss) before provision (benefit) for income taxes | 210 | 4,707 | 15,580 | (9,695 | ) | |||||||||||||||||||||||
| Provision (benefit) for income taxes | 1,232 | 1,809 | 1,931 | (1,385 | ) | |||||||||||||||||||||||
| Net (loss) earnings | $ | (1,022 | ) | $ | 2,898 | $ | 13,649 | $ | (8,310 | ) | ||||||||||||||||||
| (Loss) earnings per Class A common share | ||||||||||||||||||||||||||||
| basic and diluted | $ | (0.09 | ) | $ | 0.23 | $ | 1.10 | $ | (0.71 | ) | ||||||||||||||||||
| Weighted average Class A common shares outstanding | ||||||||||||||||||||||||||||
| basic and diluted | 2,175 | 2,175 | 2,175 | 2,175 | ||||||||||||||||||||||||
| (Loss) earnings per Class B common share | ||||||||||||||||||||||||||||
| basic and diluted | $ | (0.09 | ) | $ | 0.25 | $ | 1.18 | $ | (0.72 | ) | ||||||||||||||||||
| Weighted average Class B common shares outstanding | ||||||||||||||||||||||||||||
| basic and diluted | 9,528 | 9,423 | 9,504 | 9,363 | ||||||||||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEET DATA | ||||||||||||||||||||||||||
| (000s omitted) | ||||||||||||||||||||||||||
| Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | |||||||||||||||||||||||
| ASSETS | 2010 | 2009 | LIABILITIES & EQUITY | 2010 | 2009 | |||||||||||||||||||||
| (unaudited) | (audited) | (unaudited) | (audited) | |||||||||||||||||||||||
| Current assets | $ | 203,564 | $ | 195,830 | Current liabilities | $ | 46,268 | $ | 27,997 | |||||||||||||||||
|
Property, plant & equipment, net |
44,793 | 35,943 | Noncurrent liabilities | 10,571 | 9,017 | |||||||||||||||||||||
| Goodwill | 4,264 | 1,957 | ||||||||||||||||||||||||
| Intangibles & other assets | 24,551 | 12,216 | Stockholders' equity | 220,333 | 208,932 | |||||||||||||||||||||
| Total Assets | $ | 277,172 | $ | 245,946 | Total Liabilities & Equity | $ | 277,172 | $ | 245,946 | |||||||||||||||||
| BEL FUSE INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||
| NON-GAAP MEASURES (unaudited) | |||||||||||||||||||||||||||||||||||||||||
| (000s omitted, except for per share data) | |||||||||||||||||||||||||||||||||||||||||
| Three Months Ended December 31, 2010 | Twelve Months Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||
|
Income from Operations |
Net (loss) earnings(2) |
Net (loss) earnings |
Net (loss) earnings |
Income
from Operations |
Net earnings(2) |
Net earnings per |
Net earnings per |
||||||||||||||||||||||||||||||||||
| GAAP measures | $ | 115 | $ | (1,022 | ) | $ | (0.09 | ) | $ | (0.09 | ) | $ | 15,160 | $ | 13,649 | $ | 1.10 | $ | 1.18 | ||||||||||||||||||||||
| Severance costs and plant closure expenses | 80 | 63 | 0.01 | 0.01 | 1,176 | 1,064 | 0.09 | 0.09 | |||||||||||||||||||||||||||||||||
| Litigation charge | 8,103 | 8,042 | 0.66 | 0.69 | 8,103 | 8,042 | 0.66 | 0.69 | |||||||||||||||||||||||||||||||||
| Recovery of unauthorized stock issuance costs | (121 | ) | (75 | ) | (0.01 | ) | (0.01 | ) | (121 | ) | (75 | ) | (0.01 | ) | (0.01 | ) | |||||||||||||||||||||||||
|
Acquisition-related costs and inventory-related purchase accounting adjustments |
14 | 9 | 0.00 | 0.00 | 1,141 | 707 | 0.06 | 0.06 | |||||||||||||||||||||||||||||||||
| Loss (gain) on sale of property, plant and equipment | 17 | 11 | 0.00 | 0.00 | (352 | ) | (299 | ) | (0.02 | ) | (0.03 | ) | |||||||||||||||||||||||||||||
| Expiration of tax statutes of limitations, net | -- | (155 | ) | (0.01 | ) | (0.01 | ) | -- | (887 | ) | (0.07 | ) | (0.08 | ) | |||||||||||||||||||||||||||
|
Non-GAAP measures excluding severance and plant closure, litigation reserve; recovery of unauthorized stock issuance costs; acquisition-related costs and inventory-related purchase accounting adjustments; gains on sale of property plant and equipment; and net effect of expiration of statutes of limitations(1) |
$ | 8,208 | $ | 6,873 | $ | 0.56 | $ | 0.59 | $ | 25,107 | $ | 22,201 | $ | 1.80 | $ | 1.92 | |||||||||||||||||||||||||
| Three Months Ended December 31, 2009 | Twelve Months Ended December 31, 2009 | ||||||||||||||||||||||||||||||||||||||||
|
(Loss)
from Operations |
Net
earnings (loss)(2) |
Net earnings (loss) |
Net earnings (loss) |
(Loss)
from Operations |
Net (loss)(2) |
Net (Loss) per |
Net (Loss) per |
||||||||||||||||||||||||||||||||||
| GAAP measures | $ | (808 | ) | $ | 2,898 | $ | 0.23 | $ | 0.25 | $ | (17,351 | ) | $ | (8,301 | ) | $ | (0.71 | ) | $ | (0.72 | ) | ||||||||||||||||||||
|
Restructuring, severance, and unauthorized stock issuance costs |
85 | 77 | 0.01 | 0.01 | 2,547 | 1,807 | 0.15 | 0.16 | |||||||||||||||||||||||||||||||||
| Impairment of goodwill | -- | -- | -- | -- | 12,875 | 12,875 | 1.07 | 1.13 | |||||||||||||||||||||||||||||||||
| License fee paid in settlement of lawsuit | -- | -- | -- | -- | 2,001 | 1,241 | 0.10 | 0.11 | |||||||||||||||||||||||||||||||||
| Acquisition-related costs | 504 | 312 | 0.03 | 0.03 | 605 | 375 | 0.03 | 0.03 | |||||||||||||||||||||||||||||||||
| Gain on sale of property, plant and equipment | (50 | ) | (31 | ) | 0.00 | 0.00 | (4,693 | ) | (2,910 | ) | (0.24 | ) | (0.25 | ) | |||||||||||||||||||||||||||
| Gain on sale of investments, net of income tax | -- | (3,343 | ) | (0.28 | ) | (0.29 | ) | -- | (4,420 | ) | (0.37 | ) | (0.39 | ) | |||||||||||||||||||||||||||
| Expiration of tax statutes of limitations, net | -- | -- | -- | -- | -- | (2,955 | ) | (0.25 | ) | (0.26 | ) | ||||||||||||||||||||||||||||||
|
Non-GAAP measures excluding restructuring, impairment charges and other costs; gain on sale of investments (net of income tax); gain on sale of property, plant and equipment and net effect of expiration of tax statutes of limitations(1) |
$ | (269 | ) | $ | (87 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | (4,016 | ) | $ | (2,297 | ) | $ | (0.21 | ) | $ | (0.20 | ) | |||||||||||||||||
| (1) | The non-GAAP measures presented above 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. | |
| 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 gains and losses on sales of investments and real estate, tax benefits resulting from the expiration of tax statutes of limitations, and charges for severance, factory closure, amounts paid or reserved for lawsuits, restructuring, impairment of assets, unauthorized stock issuance costs, inventory-related purchase accounting adjustments and acquisition-related costs facilitates comparisons 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 (loss) per share may not agree to the total due to rounding. | |
Investor Contact:
(310) 826-5051
info@berkmanassociates.com
or
Company
Contact:
(201)
432-0463
www.belfuse.com
Source:
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