Bel Reports First Quarter Results
First Quarter Highlights
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Sales for the first quarter of 2012 decreased 8.2% to
$65.6 million compared to$71.4 million for the first quarter of 2011. -
GAAP net earnings for the first quarter of 2012 were
$876,000 , or$0.07 per diluted Class A share and$0.08 per diluted Class B share. -
Excluding certain charges detailed in the table reconciling GAAP to
non-GAAP financial measures attached to this release, non-GAAP net
earnings for the first quarter of 2012 were
$1.1 million , or$0.09 per diluted Class A share and$0.10 per diluted Class B share. -
Cash and investments were
$91.9 million as ofMarch 31, 2012 . -
Bel completed the acquisition of
GigaCom Interconnect AB , a supplier of expanded beam fiber optic technology for aerospace markets. -
Bel launched a program to streamline operations that is expected to
save
$4.2 million annually once fully implemented later this year.
CEO comments
"We are encouraged by the solid performance turned in by Cinch
Connectors in the first quarter, driven by strength in its commercial
aerospace business in the U.S. and its military business in
"We also recently relocated our European R&D headquarters for integrated
electronic modules to a new high-technology center in
"A decrease in legal expenses and bonus accruals in the first quarter
helped lower selling, general and administrative expenses for the period
compared to last year. We also began implementing our plan to take
advantage of a variety of operational efficiencies, and recorded
expenses related to these initiatives of about
First Quarter Results
For the three months ended
Cost of sales increased to 84.1% of sales for the first quarter of 2012, compared to 80.0% of sales for the first quarter of 2011, primarily due to lower volumes and higher material and labor costs in Bel's connector, magnetic and circuit protection businesses.
Operating income for the first quarter of 2012 was
Bel's effective tax rate was 42.0% for the first quarter of 2012,
compared to 24.2% for the first quarter of 2011, reflecting losses with
no tax benefit in
Net earnings for the first quarter of 2012 were
Excluding the restructuring and other charges mentioned above, non-GAAP
net earnings for the first quarter of 2012 were
Net earnings per Class A common share for the first quarter of 2012 were
Net earnings per Class B common share were
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.
Forward-Looking Statements
Except for historical information contained in this press release,
the matters discussed in this press release (including the statements
regarding the effects and costs of, and the anticipated savings
resulting from, Bel's streamlining activities, the time required
to implement such streamlining activities, Cinch's place in the
aerospace market, anticipated changes in product offerings and the
Company's ability to support more effectively its growing international
customer base) 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
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(000s omitted, except for per share data) |
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Three Months Ended |
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March 31, |
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2012 |
2011 |
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(unaudited) |
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Net sales |
$ |
65,561 |
$ |
71,403 |
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Costs and expenses: |
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Cost of sales |
55,132 |
57,132 |
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Selling, general and administrative |
8,789 |
10,057 |
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Restructuring charge |
137 |
-- |
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Loss on disposal of property, plant and equipment |
69 |
-- |
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Total costs and expenses |
64,127 |
67,189 |
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Income from operations |
1,434 |
4,214 |
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Interest income and other, net |
76 |
68 |
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Earnings before provision for income taxes |
1,510 |
4,282 |
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Provision for income taxes |
634 |
1,038 |
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Net earnings |
$ |
876 |
$ |
3,244 |
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Earnings per Class A common share - basic and diluted |
$ |
0.07 |
$ |
0.26 |
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Weighted average Class A common shares outstanding |
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- basic and diluted |
2,175 |
2,175 |
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Earnings per Class B common share - basic and diluted |
$ |
0.08 |
$ |
0.28 |
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Weighted average Class B common shares outstanding |
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- basic and diluted |
9,632 |
9,526 |
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CONDENSED CONSOLIDATED BALANCE SHEET DATA |
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(000s omitted) |
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Dec.31, |
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Dec.31, |
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ASSETS |
2012 |
2011 |
LIABILITIES & EQUITY |
2012 |
2011 |
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(unaudited) |
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(unaudited) |
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Current assets |
$ |
207,317 |
$ |
207,689 |
Current liabilities |
$ |
43,789 |
$ |
42,425 |
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Property, plant & |
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equipment, net |
38,634 |
39,414 |
Noncurrent liabilities |
13,465 |
13,406 |
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Goodwill and intangibles |
17,751 |
15,040 |
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Other assets |
15,634 |
14,768 |
Stockholders' equity |
222,082 |
221,080 |
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Total Assets |
$ |
279,336 |
$ |
276,911 |
Total Liabilities & Equity |
$ |
279,336 |
$ |
276,911 |
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| NON-GAAP MEASURES (unaudited) | |||||||||||||
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Three Months Ended |
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Income
from operations |
Net earnings(2) |
Net earnings per
Class A common share - diluted(3) |
Net earnings per
Class B common share - diluted(3) |
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| GAAP measures | $ | 1,434 | $ | 876 | $ | 0.07 | $ | 0.08 | |||||
| Restructuring charge | 137 | 85 | 0.01 | 0.01 | |||||||||
| Severance and reorganization costs | 187 | 116 | 0.01 | 0.01 | |||||||||
| Loss on disposal of property, plant and equipment | 69 | 43 | 0.00 | 0.00 | |||||||||
| Acquisition and other related costs | 43 | 27 | 0.00 | 0.00 | |||||||||
| Non-GAAP measures(1) | $ | 1,870 | $ | 1,147 | $ | 0.09 | $ | 0.10 | |||||
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Three Months Ended |
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Income
from operations |
Net earnings(2) |
Net earnings per
Class A common share - diluted(3) |
Net earnings per
Class B common share - diluted(3) |
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| GAAP measures | $ | 4,214 | $ | 3,244 | $ | 0.26 | $ | 0.28 | |||||
| Severance and plant closure costs | 135 | 92 | 0.01 | 0.01 | |||||||||
| Non-GAAP measures(1) | $ | 4,349 | $ | 3,336 | $ | 0.27 | $ | 0.29 | |||||
| (1) |
The non-GAAP measures presented above are not measures of
performance under accounting principles generally accepted in |
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| 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 restructuring charges, severance, reorganization and plant closure costs, loss on disposal of property, plant and equipment 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 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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