Bel Reports First Quarter Results
First quarter highlights
-
Sales increased 27% to a first quarter record
$71.4 million compared to$56.1 million for the first quarter of 2010. -
Net earnings increased to
$3.2 million versus a net loss of$0.1 million (after charges of$1.2 million ) for the first quarter of 2010. -
Excluding charges, non-GAAP net earnings for this year's first quarter
were
$0.27 per diluted Class A share and$0.29 per diluted Class B share. - Cost of sales decreased to 80.0% of sales versus 84.1% for the first quarter of 2010.
-
Cash and investments were approximately
$94.7 million as ofMarch 31, 2011 . -
Bel is soliciting proxies to elect two independent nominees to the
Board of Directors of
Pulse Electronics Corporation .
CEO comments
"The new year is off to a good start, led by solid shipments of
interconnect products and modules in the first quarter. Cinch
interconnect products performed extremely well during the quarter.
Within the modules product group, sales of both smart-grid and DC-DC
converter modules were particularly strong. Margins increased as higher
sales contributed to an increase in production efficiency at our plants
in
"Five years ago, representatives from Bel and Pulse began discussing a
framework for a potential business combination that we believed made
strong strategic sense and had the potential to create more value than
either company could achieve on its own. Since 2008, Bel has repeatedly
attempted to meet with Pulse's Board to engage in serious discussions
regarding a transaction, but each time we were asked to wait. Until
recently, we honored Pulse's repeated requests to defer discussions;
however, due to the rapidly changing dynamics of our industry, we felt
we could no longer remain passive. As a result, we are soliciting
proxies to elect two director nominees to the Pulse Board of Directors
at Pulse's 2011 Annual Meeting of Shareholders scheduled for
First Quarter Results
For the three months ended
Cost of sales decreased to 80.0% of sales for the first quarter of 2011, compared to 84.1% of sales for the first quarter of 2010.
Net earnings for the first quarter of 2011 were
Excluding severance charges, non-GAAP net income for the first quarter
of 2011 was
Net earnings per diluted Class A common share for the first quarter of
2011 were
Net earnings per diluted Class B common share were
Excluding severance charges, non-GAAP income from operations for the
first quarter of 2011 was
Balance Sheet Data
As of
Conference Call
Bel has scheduled a conference call at
About Bel
Bel (www.belfuse.com) and its divisions are primarily engaged in the design, manufacture, and sale of products used in networking, telecommunications, high-speed data transmission, commercial aerospace, military, transportation, and consumer electronics. Products include magnetics (discrete components, power transformers and MagJack® connectors with integrated magnetics), modules (DC-DC converters, 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.
This communication does not constitute an offer to buy or solicitation
of an offer to sell any securities. No tender offer for the shares of
Forward-Looking Statements
Except for historical information contained in this press release,
the matters discussed in this press release (including our solicitation
of proxies to elect our two director nominees to the Board of Directors
of
| BEL FUSE INC. AND SUBSIDIARIES | |||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
| (000s omitted, except for per share data) | |||||||||
|
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Three Months Ended |
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|
March 31, |
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|
2011 |
|
2010* |
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(unaudited) |
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Net Sales |
$ |
71,403 |
|
$ |
56,069 |
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Costs and expenses: |
|
|
|
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Cost of sales |
57,132 |
|
47,157 |
||||||
|
Selling, general and administrative |
10,057 |
|
9,189 |
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|
|||||||||
|
Total costs and expenses |
67,189 |
|
56,346 |
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|
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|
Income (loss) from operations |
4,214 |
|
(277 |
) |
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|
|
|||||||||
|
Interest income and other, net |
68 |
|
122 |
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|
|
|||||||||
|
Earnings (loss) before provision (benefit) for income taxes |
4,282 |
|
(155 |
) |
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|
|
|||||||||
|
Provision (benefit) for income taxes |
1,038 |
|
(35 |
) |
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| Net earnings (loss) | $ | 3,244 | $ | (120 | ) | ||||
| Earnings (loss) per Class A common share - basic and diluted | $ | 0.26 | $ | (0.02 | ) | ||||
| Weighted average Class A common shares outstanding - basic and diluted | 2,175 | 2,175 | |||||||
| Earnings (loss) per Class B common share - basic and diluted | $ | 0.28 | $ | (0.01 | ) | ||||
| Weighted average Class B common shares outstanding - basic and diluted | 9,526 | 9,464 | |||||||
|
* |
Prior year amounts have been restated to reflect adjustments previously reported during the measurement period related to the Cinch acquisition as if all such adjustments had been recognized on the date of acquisition. |
| CONDENSED CONSOLIDATED BALANCE SHEET DATA | |||||||||||||||||||
| (000s omitted) | |||||||||||||||||||
| Mar. 31, | Dec. 31, | Mar. 31, | Dec. 31, | ||||||||||||||||
| ASSETS | 2011 | 2010 | LIABILITIES & EQUITY | 2011 | 2010 | ||||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||||||
| Current assets | $ | 202,171 | $ | 203,564 | Current liabilities | $ | 39,729 | $ | 46,268 | ||||||||||
| Property, plant & | |||||||||||||||||||
| equipment, net | 43,611 | 44,793 | Noncurrent liabilities | 10,990 | 10,571 | ||||||||||||||
| Goodwill & intangibles, net | 15,638 | 15,555 | |||||||||||||||||
| Other assets | 13,276 | 13,260 | Stockholders' equity | 223,977 | 220,333 | ||||||||||||||
| Total Assets | $ | 274,696 | $ | 277,172 | Total Liabilities & Equity | $ | 274,696 | $ | 277,172 | ||||||||||
|
BEL FUSE INC. AND SUBSIDIARIES |
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NON-GAAP MEASURES (unaudited) |
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(000s omitted, except for per share data) |
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Three Months Ended March 31, 2011 |
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| Income | Net earnings | Net earnings | ||||||||||||||||||
| from | Net | per Class A common | per Class B common | |||||||||||||||||
| Operations |
earnings(2) |
share - diluted(3) |
share - diluted(3) |
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|
|
|
|
|
|
|
|
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|
GAAP measures |
$ |
4,214 |
|
$ |
3,244 |
|
$ |
0.26 |
|
$ |
0.28 |
|||||||||
|
Severance costs |
135 |
|
92 |
|
0.01 |
|
0.01 |
|||||||||||||
|
Non-GAAP measures(1) |
$ |
4,349 |
|
$ |
3,336 |
|
$ |
0.27 |
|
$ |
0.29 |
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Three Months Ended March 31, 2010 |
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| (Loss) | ||||||||||||||||||||
| income | Net | Net (loss) earnings | Net (loss) earnings | |||||||||||||||||
| from | (loss) | per Class A common | per Class B common | |||||||||||||||||
| operations |
earnings(2) |
share - diluted(3) |
share - diluted(3) |
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|
|
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|
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|
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|
GAAP measures |
$ |
(277 |
) |
|
$ |
(120 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.01 |
) |
|||||
|
Severance costs |
575 |
|
502 |
|
0.04 |
|
0.04 |
|||||||||||||
|
Acquisition-related costs and inventory-related purchase accounting adjustments |
1,078 |
668 |
0.06 |
0.06 |
||||||||||||||||
|
Non-GAAP measures(1) |
$ |
1,376 |
|
$ |
1,050 |
|
$ |
0.08 |
|
$ |
0.09 |
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| (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 amounts such as charges for severance, acquisition-related costs and inventory-related purchase accounting adjustments 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 cost or adjustment 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:
310-477-3118
info@berkmanassociates.com
or
Company
Contact:
President &
CEO
201-432-0463
Source:
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