Bel Reports Fourth Quarter and 2011 Results
Summary
● For the fourth quarter, sales decreased 18.0% to
● The fourth quarter GAAP net earnings were
● Full year net earnings were
● Cash and investments were
● A new program designed to streamline operations is expected to save
CEO comments
"During the fourth quarter of 2011, Bel incurred
"Over the next three quarters, we plan to implement additional
streamlining steps to enable Bel to take advantage of a variety of
operational efficiencies. We currently anticipate that the pre-tax costs
associated with these steps will be approximately
"In addition to streamlining our operations, we have begun to focus our product development efforts on non-commodity products. This major effort will be in the Modular product line in both Power and Value Added products and Mil-AeroSpace products found in our InterConnect product line. Our acquisition strategy is focused on companies that produce such products because we believe they provide the greatest opportunity for Bel's long-term growth and profitability."
Fourth Quarter Results
For the three months ended
Cost of sales increased to 85.1% of sales for the fourth quarter of 2011, compared to 78.5% of sales for the fourth quarter of 2010, primarily due to a shift in the product mix to sales of a higher proportion of modules products, which have higher materials content which will result in lower profit margins than Bel's other product lines.
Bel's effective tax rate was 92.9% for the fourth quarter of 2011 and
exceeded 100% for the same quarter in 2010, reflecting losses with
minimal tax benefit in
Net earnings for the fourth quarter of 2011 were
Excluding restructuring charges and the above-mentioned gain on disposal
of property, plant and equipment, non-GAAP net earnings for the fourth
quarter of 2011 were
Net earnings per Class A common share for the fourth quarter of 2011
were
Net earnings per Class B common share were
Income from operations was
Balance Sheet Data
As of
Twelve Month Results
For the twelve months ended
Net earnings per diluted Class A common share for 2011 were
Net earnings per diluted Class B common share were
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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 and anticipated changes in
product offerings) 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 | |||||||||||||||||
| (000s omitted, except for per share data) | |||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
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December 31, | ||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||
| (unaudited) | (audited) | ||||||||||||||||
| Net sales | $ | 68,642 | $ | 83,697 | $ | 295,121 | $ | 302,539 | |||||||||
| Costs and expenses: | |||||||||||||||||
| Cost of sales | 58,384 | 65,661 | 244,749 | 239,185 | |||||||||||||
| Selling, general and administrative | 8,957 | 9,801 | 39,284 | 40,443 | |||||||||||||
| Litigation charge | -- | 8,103 | 3,471 | 8,103 | |||||||||||||
| Restructuring charge | 314 | -- | 314 | -- | |||||||||||||
| (Gain) loss on disposal of property, plant and equipment | (97 | ) | 17 | (93 | ) | (352 | ) | ||||||||||
| Total costs and expenses | 67,558 | 83,582 | 287,725 | 287,379 | |||||||||||||
| Income from operations | 1,084 | 115 | 7,396 | 15,160 | |||||||||||||
| Gain on sale of investments | -- | -- | 119 | -- | |||||||||||||
| Interest income and other, net | 76 | 95 | 357 | 420 | |||||||||||||
| Earnings before provision for income taxes | 1,160 | 210 | 7,872 | 15,580 | |||||||||||||
| Provision for income taxes | 1,078 | 1,232 | 4,108 | 1,931 | |||||||||||||
| Net earnings (loss) | $ | 82 | $ | (1,022 | ) | $ | 3,764 | $ | 13,649 | ||||||||
| Earnings (loss) per Class A common share | |||||||||||||||||
| basic and diluted | $ | 0.00 | $ | (0.09 | ) | $ | 0.28 | $ | 1.10 | ||||||||
| Weighted average Class A common shares outstanding | |||||||||||||||||
| basic and diluted | 2,175 | 2,175 | 2,175 | 2,175 | |||||||||||||
| Earnings (loss) per Class B common share | |||||||||||||||||
| basic and diluted | $ | 0.01 | $ | (0.09 | ) | $ | 0.33 | $ | 1.18 | ||||||||
| Weighted average Class B common shares outstanding | |||||||||||||||||
| basic and diluted | 9,637 | 9,528 | 9,598 | 9,504 | |||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEET DATA | |||||||||||||||||||
| (000s omitted) | |||||||||||||||||||
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| ASSETS | 2011 | 2010 | LIABILITIES & EQUITY | 2011 | 2010 | ||||||||||||||
| (unaudited) | (audited) | (unaudited) | (audited) | ||||||||||||||||
| Current assets | $ | 208,229 | $ | 203,564 | Current liabilities | $ | 42,965 | $ | 46,268 | ||||||||||
| Property, plant & | |||||||||||||||||||
| equipment, net | 39,414 | 44,793 | Noncurrent liabilities | 13,406 | 10,571 | ||||||||||||||
| Goodwill & intangibles | 15,040 | 15,555 | |||||||||||||||||
| Other assets | 14,768 | 13,260 | Stockholders' equity | 221,080 | 220,333 | ||||||||||||||
| Total Assets | $ | 277,451 | $ | 277,172 | Total Liabilities & Equity | $ | 277,451 | $ | 277,172 | ||||||||||
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| NON-GAAP MEASURES (unaudited) | ||||||||||||||||
| (000s omitted, except for per share data) | ||||||||||||||||
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Three Months Ended |
Twelve Months Ended |
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Income
from operations |
Net |
Net earnings per
Class A common share - diluted(3) |
Net earnings per
Class B common share - diluted(3) |
Income
from operations |
Net |
Net earnings per
Class A common share - diluted(3) |
Net earnings per
Class B common share - diluted(3) |
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| GAAP measures |
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| Restructuring charge | 314 | 234 | 0.02 | 0.02 | 314 | 234 | 0.02 | 0.02 | ||||||||
| Severance costs | -- | -- | -- | -- | 135 | 92 | 0.01 | 0.01 | ||||||||
| Litigation charges, net | -- | -- | -- | -- | 3,071 | 2,961 | 0.24 | 0.25 | ||||||||
| (Gain) loss on disposal of property, plant and equipment | (97) | (60) | 0.00 | (0.01) | (93) | (58) | 0.00 | 0.00 | ||||||||
| Costs associated with Pulse proxy initiative | -- | -- | -- | -- | 267 | 166 | 0.01 | 0.01 | ||||||||
| Gain on sales of Pulse shares, net of tax | -- | -- | -- | -- | -- | (74) | (0.01) | (0.01) | ||||||||
| Non-GAAP measures(1) |
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Three Months Ended |
Twelve Months Ended |
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Income
from operations |
Net (loss) earnings(2) |
Net (loss) earnings
per Class A common share - diluted(3) |
Net (loss) earnings
per Class B common share - diluted(3) |
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 |
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| Severance and plant closure costs | 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 | ||||||||
| 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(1) |
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(1) The non-GAAP measures presented above are not measures of
performance under accounting principles generally accepted in
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) 477-3118
info@berkmanassociates.com
or
Company
Contact:
President &
CEO
(201) 432-0463
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