Bel Reports Fourth Quarter and 2012 Results
Highlights
-
For the fourth quarter of 2012, sales increased 4.5% to
$71.8 million compared to$68.6 million for the fourth quarter of 2011. For 2012, sales decreased 2.9% to$286.6 million compared to$295.1 million for 2011. -
For the fourth quarter of 2012, the GAAP net loss was
$2.5 million , or$0.21 per Class A share and$0.22 per Class B share, compared to GAAP net earnings of$82,000 , or$0.00 per Class A share and$0.01 per Class B share, for the fourth quarter of 2011. For 2012, GAAP net earnings were$2.4 million , or$0.17 per diluted Class A share and$0.21 per diluted Class B share, compared with GAAP net earnings of$3.8 million , or$0.28 per diluted Class A share and$0.33 per diluted Class B share, for 2011 -
Restructuring charges of
$3.1 million for the fourth quarter of 2012 and$5.2 million for 2012 are expected to result in annual operating cost reductions of about$5.6 million beginning in 2013. -
For the fourth quarter of 2012, non-GAAP net earnings which excludes
restructuring charges, acquisition costs and other charges increased
to
$979,000 , compared to non-GAAP net earnings which excludes restructuring charges, litigation charges and other charges for the fourth quarter of 2011 of$395,000 . For 2012, non-GAAP net earnings rose to$7,365,000 compared to$7,085,000 for 2011. -
The acquisitions of Gigacom Interconnect,
Fibreco Limited and PowerboxItaly completed in 2012 advance Bel's strategy to focus on sales of higher margin, non-commodity products. -
Bel agreed to acquire the Transpower magnetics business of TE
Connectivity, which had 2012 sales of about
$75 million . Expected to close in the first quarter of 2013, this acquisition will solidify Bel's position as a world leader in integrated connector modules (ICMs). -
Purchased 279,000 Class B common shares (for an aggregate cost of
$4.9 million ) in the fourth quarter of 2012 and 369,000 Class B common shares (for an aggregate cost of$6.6 million ) for all of 2012 under the$10 million common share buyback program authorized by the Board inJuly 2012 .
CEO comments
"Our first step was to immediately improve Bel's competitiveness and
profitability in our existing products. The restructuring program we
completed in 2012 was designed to reduce operating expenses by about
"We also agreed to acquire, for approximately
"Our next step was to add product lines which have the potential for
significant growth over the next two to three years. A key component of
this plan was our recent acquisition of
"The third stage of our growth plan includes development of fiber optic
products which we believe will become an industry standard for aerospace
military markets over a three to five-year horizon. Two small but
important acquisitions completed in 2012 set the foundation for this
initiative, and also contributed to sales growth in the fourth quarter
of 2012.
"Taken together, these actions have set a clear strategy for the Company over the next five years."
Fourth Quarter Results
For the three months ended
The operating loss for the fourth quarter of 2012 was
The net loss for the fourth quarter of 2012 included an income tax
benefit of
The net loss for the fourth quarter of 2012 was
Excluding the charges detailed in the table reconciling GAAP to non-GAAP
financial measures mentioned above, non-GAAP net earnings for the fourth
quarter of 2012 were
The net loss per Class A common share for the fourth quarter of 2012 was
The net loss per Class B common share was
Balance Sheet Data
As of
Twelve Month Results
For the twelve months ended
Net earnings per diluted Class A common share for 2012 were
Net earnings per diluted Class B common share for 2012 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 and AC-DC power supplies, 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, fiber optic 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 future impact of restructuring charges taken during 2012;
the timing of the closing of the acquisition of the Transpower magnetics
business of TE Connectivity and the parties' abilities to satisfy all
conditions of closing with respect to that acquisition; the impact of
that acquisition on Bel's ICM sales and business, on Bel's cost
structure and on Bel's competitive position; the expected accretive
nature of that acquisition; the impact of the Powerbox acquisition on
the future growth of Bel's AC-DC power transformer business; the future
revenues of Bel's AC-DC power transformer business; the potential
contribution of fiber optic products to Bel's future operating results;
the potential growth in Bel's sales to the aerospace market; the
anticipated effects of the three aspects of Bel's growth plan on Bel's
ability to achieve near-term improvements in profitability, on Bel's
competitive position in high-volume commodity components, on Bel's
technology base and on Bel's ability to expand its portfolio of
non-commodity technologically advanced components; and the potential for
non-commodity technologically advanced components to become the primary
drivers of Bel's future sales and earnings) are forward-looking
statements that involve risks and uncertainties. Actual results
could differ materially from Bel's projections. 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; difficulties associated with integrating
recently acquired companies; 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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| 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||||||||
| Net sales | $ | 71,752 | $ | 68,642 | $ | 286,594 | $ | 295,121 | |||||||||||||
| Costs and expenses: | |||||||||||||||||||||
| Cost of sales | 60,505 | 58,384 | 240,092 | 244,749 | |||||||||||||||||
| Selling, general and administrative | 11,207 | 8,957 | 39,343 | 39,284 | |||||||||||||||||
| Litigation charges | -- | -- | 26 | 3,471 | |||||||||||||||||
| Restructuring charges | 3,085 | 314 | 5,245 | 314 | |||||||||||||||||
| Loss (gain) on disposal of property, plant and equipment | 72 | (97 | ) | 183 | (93 | ) | |||||||||||||||
| Total costs and expenses | 74,869 | 67,558 | 284,889 | 287,725 | |||||||||||||||||
| (Loss) income from operations | (3,117 | ) | 1,084 | 1,705 | 7,396 | ||||||||||||||||
| (Loss) gain on investment | (142 | ) | -- | (917 | ) | 119 | |||||||||||||||
| Interest expense | (14 | ) | -- | (16 | ) | -- | |||||||||||||||
| Interest income and other, net | 48 | 76 | 266 | 357 | |||||||||||||||||
| (Loss) earnings before (benefit) provision for income taxes | (3,225 | ) | 1,160 | 1,038 | 7,872 | ||||||||||||||||
| (Benefit) provision for income taxes | (688 | ) | 1,078 | (1,364 | ) | 4,108 | |||||||||||||||
| Net (loss) earnings | $ | (2,537 | ) | $ | 82 | $ | 2,402 | $ | 3,764 | ||||||||||||
| (Loss) earnings per Class A common share - basic and diluted | $ | (0.21 | ) | $ | 0.00 | $ | 0.17 | $ | 0.28 | ||||||||||||
| 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 | $ | (0.22 | ) | $ | 0.01 | $ | 0.21 | $ | 0.33 | ||||||||||||
| Weighted average Class B common shares outstanding | |||||||||||||||||||||
| - basic and diluted | 9,493 | 9,637 | 9,625 | 9,598 | |||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEET DATA | ||||||||||||||||||
| (000s omitted) | ||||||||||||||||||
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| ASSETS | 2012 | 2011 | LIABILITIES & EQUITY | 2012 | 2011 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||
| Current assets | $ | 191,136 | $ | 207,689 | Current liabilities | $ | 46,388 | $ | 42,425 | |||||||||
| Property, plant | ||||||||||||||||||
| & equipment, net | 34,988 | 39,414 | Noncurrent liabilities | 13,439 | 13,406 | |||||||||||||
| Goodwill and intangibles | 35,181 | 15,040 | ||||||||||||||||
| Other assets | 13,913 | 14,768 | Stockholders' equity | 215,391 | 221,080 | |||||||||||||
| Total Assets | $ | 275,218 | $ | 276,911 | Total Liabilities & Equity | $ | 275,218 | $ | 276,911 | |||||||||
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| NON-GAAP MEASURES (unaudited) | ||||||||||||||||||||||||||||||||||||||||
| (000s omitted, except for per share data) | ||||||||||||||||||||||||||||||||||||||||
|
Three Months Ended |
Twelve Months Ended |
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|
Income (loss) 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 | $ | (3,117 | ) | $ | (2,537 | ) | $ | (0.21 | ) | $ | (0.22 | ) | $ | 1,705 | $ | 2,402 | $ | 0.17 | $ | 0.21 | ||||||||||||||||||||
| Restructuring charges, |
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|||||||||||||||||||||||||||||||||||||||
| severance and reorganization costs | 3,381 | 2,171 | 0.18 | 0.19 | 6,075 | 4,067 | 0.33 | 0.35 | ||||||||||||||||||||||||||||||||
| Storm clean-up and damage to | ||||||||||||||||||||||||||||||||||||||||
| property, plant and equipment | 341 | 211 | 0.02 | 0.02 | 341 | 211 | 0.02 | 0.02 | ||||||||||||||||||||||||||||||||
| Gain on other disposals | ||||||||||||||||||||||||||||||||||||||||
| of property, plant and equipment | (202 | ) | (180 | ) | (0.01 | ) | (0.02 |
) |
(91 | ) | (111 | ) | (0.01 | ) | (0.01 | ) | ||||||||||||||||||||||||
| Acquisition-related costs | 525 | 556 | 0.05 | 0.05 | 1,283 | 1,026 | 0.08 | 0.09 | ||||||||||||||||||||||||||||||||
| Impairment of Pulse shares, net of income tax | -- | 382 | 0.03 | 0.03 | -- | 863 | 0.07 | 0.07 | ||||||||||||||||||||||||||||||||
| Expiration of tax statutes of | ||||||||||||||||||||||||||||||||||||||||
| limitations and R&D credit, net | -- | 376 | 0.03 | 0.03 | -- | (1,093 | ) | (0.09 | ) | (0.09 | ) | |||||||||||||||||||||||||||||
| Non-GAAP measures(1) | $ | 928 | $ | 979 | $ | 0.08 | $ | 0.09 | $ | 9,313 | $ | 7,365 | $ | 0.58 | $ | 0.63 | ||||||||||||||||||||||||
|
Three Months Ended |
Twelve 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) |
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 | $ | 1,084 | $ | 82 | $ | 0.00 | $ | 0.01 | $ | 7,396 | $ | 3,764 | $ | 0.28 | $ | 0.33 | ||||||||||||||||||||||||
| Restructuring charges, severance | ||||||||||||||||||||||||||||||||||||||||
| and reorganization costs | 314 | 234 | -- | -- | 449 | 326 | 0.03 | 0.03 | ||||||||||||||||||||||||||||||||
| Litigation charges, net | -- | 139 | 0.02 | 0.02 | 3,071 | 2,961 | 0.24 | 0.25 | ||||||||||||||||||||||||||||||||
| Costs associated with Pulse proxy initiative | -- | -- | -- | -- | 267 | 166 | 0.01 | 0.01 | ||||||||||||||||||||||||||||||||
| Gain on sale of property, plant and equipment | (97 | ) | (60 | ) | -- | -- | (93 | ) | (58 | ) | -- | -- | ||||||||||||||||||||||||||||
| Gain on sale of Pulse shares, net of tax | -- | -- | -- | -- | -- | (74 | ) | (0.01 | ) | (0.01 | ) | |||||||||||||||||||||||||||||
| Non-GAAP measures(1) | $ | 1,301 | $ | 395 | $ | 0.10 | $ | 0.11 | $ | 11,090 | $ | 7,085 | $ | 0.56 | $ | 0.61 | ||||||||||||||||||||||||
| (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 amounts such as charges for restructuring, severance, reorganization, losses on the disposal of property, plant and equipment, costs related to Hurricane Sandy and acquisition-related costs facilitates comparison of our results among reporting periods. We believe that such amounts are not reflective of the relevant business in the period in which the charge is recorded for accounting purposes. | |||
| (2) | Net of income tax at effective rate in the applicable tax jurisdiction. | ||
| (3) | Individual amounts of net (loss) 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
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