NEW
JERSEY
|
22-1463699
|
|
(State
of other jurisdiction of incorporation or
organization)
|
(I.R.S.
Employer Identification No.)
|
206
Van Vorst Street
|
Jersey
City, New Jersey
|
07302
|
||
(Address
of principal executive offices)
|
(Zip
Code)
|
BEL
FUSE INC.
|
|||
INDEX
|
|||
Forward
Looking Information
|
Page
|
||
Part
I
|
|||
Item
1.
|
Business
|
1
|
|
Item
1A.
|
Risk
Factors
|
11
|
|
Item
1B.
|
Unresolved
Staff Comments
|
17
|
|
Item
2.
|
Properties
|
17
|
|
Item
3.
|
Legal
Proceedings
|
19
|
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
20
|
|
Part
II
|
|||
Item
5.
|
Market
for Registrant's Common Equity,
|
||
Related
Stockholder Matters and Issuer
|
|||
Purchases
of Equity Securities
|
21
|
||
Item
6.
|
Selected
Financial Data
|
23
|
|
Item
7.
|
Management's
Discussion and Analysis of Financial
|
||
Condition
and Results of Operations
|
25
|
||
Item
7A.
|
Quantitative
and Qualitative Disclosures About
|
||
Market
Risk
|
45
|
||
|
|||
Item
8.
|
Financial
Statements and Supplementary Data
|
45
|
|
Item
9.
|
Changes
in and Disagreements With Accountants
|
||
on
Accounting and Financial Disclosure
|
47
|
||
Item
9A.
|
Controls
and Procedures
|
47
|
|
Item
9B.
|
Other
Information
|
49
|
|
Part
III
|
|||
Item
10.
|
Directors,
Executive Officers and Corporate
|
|
|
Governance
|
49
|
||
Item
11.
|
Executive
Compensation
|
49
|
|
Item
12.
|
Security
Ownership of Certain Beneficial Owners
|
||
and
Management and Related Stockholder
|
|
||
Matters
|
49
|
BEL
FUSE INC.
|
|||
INDEX
(Con't)
|
|||
Forward
Looking Information
|
Page
|
||
Part
III (Con't)
|
Item
13.
|
Certain
Relationships and Related Transactions,
|
||
and
Director Independence
|
49
|
||
Item
14.
|
Principal
Accountant Fees and Services
|
49
|
|
Part
IV
|
|||
|
|||
Item
15.
|
Exhibits
and Financial Statement Schedules
|
50
|
|
|
|
||
Signatures |
53
|
||
|
|
|
|
*Page
F-1 follows page 46
|
§
|
Discrete
components
|
§
|
Power
transformers
|
§
|
MagJack®
integrated connector modules
|
§
|
Power
conversion modules
|
§
|
Integrated
analog front end modules
|
§
|
Custom
modules
|
§
|
Miniature
fuses
|
§
|
Micro
fuses
|
§
|
Surface
mount fuses and PTC devices
|
§
|
Radial
PTC
|
§
|
Passive
jacks
|
§
|
Plugs
|
§
|
Cable
assemblies
|
Product
Group
|
Function
|
Application
|
|
Magnetics
|
|||
Discrete
Components
|
Condition,
filter and isolate the electronic signal to ensure accurate data
and/or
voice transmission.
|
Network
switches, routers, hubs and PCs used in 10/100Base-TX, Gigabit, Voice
over
the Internet Protocol (”VoIP"), home networking and cable modem
applications.
|
|
Power
Transformers
|
Safety
isolation and distribution.
|
Power
supplies, alarm, fire detection and security systems, HVAC, lighting
and
medical equipment.
|
|
MagJack®
Integrated Connector Modules
|
Condition,
filter and isolate an electronic signal to ensure accurate data and/or
voice transmission and to provide RJ45 and USB
connectivity
|
Network
switches, routers, hubs and PCs used in 10/100Base-TX, Gigabit, and
VoIP.
|
|
Modules
|
|||
Power
Conversion Modules
(DC-DC
Converters)
|
Convert
DC voltage level to other DC level as required to meet the power
needs of
low voltage silicon devices
|
Networking
equipment, distributed power architecture, telecom devices, computers
and
peripherals.
|
|
Integrated
Analog Front End Modules
|
Condition,
filter and isolate the electronic signal to ensure accurate data
and/or
voice transmission.
|
Broadband
and telecom equipment supporting ISDN, T1/E1, xDSL technologies.
|
|
Custom
Modules
|
Integrate
several discrete devices to provide customized, space-saving
solution.
|
Networking
products.
|
|
Circuit
Protection
|
|||
Miniature
Fuses
|
Protects
devices by preventing current in an electrical circuit from exceeding
acceptable levels.
|
Power
supplies, electronic ballasts and consumer electronics.
|
|
Micro
Fuses and Radial PTC
|
Protects
devices by preventing current in an electrical circuit from exceeding
acceptable levels.
|
Cellular
phone chargers, consumer electronics, power supplies and set top
boxes.
|
|
Surface
Mount Fuses and PTC
|
Protects
devices by preventing current in an electrical circuit from exceeding
acceptable levels.
|
Cellular
phones, mobile computers, IC and battery protection, power supplies
and
telecom line cards.
|
|
Interconnect
|
|||
Passive
Jacks
|
RJ45
and RJ11 connectivity for
data
and/or voice transmission.
|
Network
routers, hubs, switches and patch panels deployed in Category 5,
5e and 6
cable systems.
|
|
Plugs
|
RJ45
and RJ11 connectivity for
data
and/or voice transmission.
|
Network
routers, hubs, switches and patch panels deployed in Category 5,
5e and 6
cable systems.
|
|
Cable
Assemblies
|
RJ45
and RJ11 connectivity for
data
and voice transmission.
|
Structured
Category 5, 5e and 6 cabling systems (premise
wiring).
|
Year
Ended
|
|||||||
December
31,
|
|||||||
2005
|
2004
|
||||||
Net
sales
|
$
|
221,227
|
$
|
212,331
|
|||
Net
earnings
|
20,026
|
25,419
|
|||||
Earnings
per share - diluted
|
|||||||
Class
A
|
1.65
|
2.14
|
|||||
Class
B
|
1.75
|
2.23
|
Cash
|
$
311,856
|
|||
Accounts
receivable
|
3,687,331
|
|||
Inventories
|
2,862,571
|
|||
Prepaid
expenses
|
96,120
|
|||
Income
taxes receivable
|
5,488
|
|||
Property,
plant and
|
||||
equipment
|
1,545,526
|
|||
Other
assets
|
32,083
|
|||
Deferred
tax asset
|
1,392,850
|
|||
Goodwill
|
11,786,080
|
|||
Intangible
assets
|
2,630,000
|
|||
Notes
payable
|
(860,694
|
)
|
||
Accounts
payable
|
(2,129,165
|
)
|
||
Accrued
expenses
|
(465,002
|
)
|
||
Net
assets acquired
|
$
|
20,895,044
|
·
|
announcements
of technological or competitive
developments;
|
·
|
acquisitions
or strategic alliances by us or our
competitors;
|
·
|
the
gain or loss of a significant customer or
order;
|
·
|
changes
in estimates of our financial performance or changes in recommendations
by
securities analysts regarding us or our industry;
or
|
·
|
general
market or economic conditions.
|
Location
|
Approximate
Square
Feet
|
Owned/
Leased
|
Percentage
Used
for
Manufacturing
|
|||||||
Donnguan,
People's
|
||||||||||
Republic
of China
|
346,000
|
Leased
|
61
|
%
|
||||||
Zhongshan,
People's
|
||||||||||
Republic
of China
|
416,000
|
Leased
|
81
|
%
|
||||||
Zhongshan,
People's
|
||||||||||
Republic
of China
|
128,000
|
Leased
|
74
|
%
|
||||||
Zhongshan,
People's
|
||||||||||
Republic
of China
|
117,000
|
Owned
|
83
|
%
|
||||||
Zhongshan,
People's
|
||||||||||
Republic
of China
|
77,000
|
Owned
|
81
|
%
|
||||||
Hong
Kong
|
66,000
|
Owned
|
29
|
%
|
||||||
Macao
|
71,000
|
Owned
|
28
|
%
|
||||||
Louny,
Czech Republic
|
15,000
|
Leased
|
76
|
%
|
||||||
Dominican
Republic
|
41,000
|
Leased
|
85
|
%
|
||||||
Cananea,
Mexico
|
28,000
|
Leased
|
65
|
%
|
||||||
Inwood,
New York
|
35,000
|
Owned
|
60
|
%
|
||||||
Glen
Rock, Pennsylvania
|
74,000
|
Owned
|
60
|
%
|
||||||
Westboro,
MA
|
22,000
|
Leased
|
85
|
%
|
||||||
1,436,000
|
Class
A
|
Class
A
|
Class
B
|
Class
B
|
||||||||||
High
|
Low
|
High
|
Low
|
||||||||||
Year
Ended December 31, 2005
|
|
||||||||||||
First
Quarter
|
$
|
29.79
|
$
|
24.10
|
$
|
34.92
|
$
|
28.42
|
|||||
Second
Quarter
|
26.74
|
21.50
|
31.72
|
25.54
|
|||||||||
Third
Quarter
|
29.50
|
24.50
|
36.48
|
29.72
|
|||||||||
Fourth
Quarter
|
30.10
|
22.39
|
37.00
|
28.88
|
|||||||||
Year
Ended December 31, 2006
|
|||||||||||||
First
Quarter
|
34.50
|
24.59
|
40.16
|
31.83
|
|||||||||
Second
Quarter
|
29.00
|
25.75
|
34.85
|
29.24
|
|||||||||
Third
Quarter
|
31.25
|
24.95
|
37.61
|
29.49
|
|||||||||
Fourth
Quarter
|
32.95
|
25.99
|
37.92
|
30.90
|
Plan
Category
|
Number
of Securities to be
Issued
Upon Exercise of
Outstanding
Options,
Warrants
and Rights
(a)
|
Weighted
Average Exercise
Price
of Outstanding Options,
Warrants
and Rights
(b)
|
Number
of Securities Remaining
Available
for Future Issuance
Under
Equity Compensation
Plans
(Excluding Securities
Reflected
in Column (a)
(c)
|
|||||||
Equity
compensation plans approved
by
security holders
|
137,813
|
$
|
25.59
|
811,785
|
||||||
Equity
compensation plans not
approved
by security holders
|
-
|
-
|
-
|
|||||||
Totals
|
137,813
|
$
|
25.59
|
811,785
|
Item
6. Selected Financial Data
|
||||||||||||||||
Years
Ended December 31,
|
||||||||||||||||
2006
|
2005
(c)
|
2004
|
2003
(c)
|
2002
|
||||||||||||
(In
thousands of dollars, except per share data)
|
||||||||||||||||
Selected
Statements of Operations Data: (c) (d)
|
||||||||||||||||
Net
sales
|
$
|
254,933
|
$
|
215,916
|
$
|
190,022
|
$
|
158,498
|
$
|
95,528
|
||||||
Cost
of sales
|
192,985
|
156,147
|
132,776
|
113,813
|
72,420
|
|||||||||||
Selling,
general and
|
||||||||||||||||
administrative
expenses
|
37,800
|
33,152
|
31,302
|
26,757
|
22,270
|
|||||||||||
Fixed
asset impairment/casualty loss (e) (f)
|
1,030
|
-
|
1,033
|
-
|
-
|
|||||||||||
Interest
income - net
|
2,781
|
1,098
|
525
|
249
|
940
|
|||||||||||
Gain
on sale of marketable securities
|
5,150
|
-
|
-
|
-
|
-
|
|||||||||||
Lawsuit
proceeds (d)
|
-
|
-
|
2,935
|
-
|
-
|
|||||||||||
Earnings
before provision
|
|
|
|
|
||||||||||||
for
income taxes
|
31,048
|
27,715
|
28,371
|
18,177
|
1,778
|
|||||||||||
Income
tax provision
|
5,845
|
7,482
|
3,649
|
4,413
|
1,199
|
|||||||||||
Net
earnings
|
25,203
|
20,233
|
24,722
|
13,764
|
579
|
|||||||||||
Earnings
(loss) per Class A common
|
||||||||||||||||
share
- basic (a)
|
2.03
|
1.67
|
2.10
|
1.15
|
-
|
|||||||||||
Earnings
(loss) per Class A common
|
||||||||||||||||
share
- diluted (a)
|
2.03
|
1.67
|
2.10
|
1.15
|
-
|
|||||||||||
Earnings
per Class B common
|
||||||||||||||||
share
- basic (a)
|
2.16
|
1.79
|
2.22
|
1.28
|
0.07
|
|||||||||||
Earnings
per Class B common
|
||||||||||||||||
share
- diluted (a)
|
2.15
|
1.77
|
2.16
|
1.27
|
0.07
|
|||||||||||
Cash
dividends declared per
|
||||||||||||||||
Class
A common share
|
0.16
|
0.16
|
0.16
|
0.08
|
-
|
|||||||||||
Cash
dividends declared per
|
||||||||||||||||
Class
B common share
|
0.20
|
0.20
|
0.20
|
0.20
|
0.20
|
|||||||||||
|
||||||||||||||||
As
of December 31,
|
||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
(In
thousands of dollars, except per share data and
percentages)
|
||||||||||||||||
Selected
Balance Sheet Data and Ratios:
|
||||||||||||||||
Working
capital
|
$
|
144,677
|
$
|
128,203
|
$
|
127,624
|
$
|
102,370
|
$
|
82,986
|
||||||
Total
assets
|
268,498
|
242,056
|
217,777
|
181,817
|
147,840
|
|||||||||||
Long
term debt
|
-
|
-
|
6,500
|
8,500
|
-
|
|||||||||||
Stockholders'
equity
|
222,150
|
201,577
|
178,461
|
146,855
|
130,659
|
|||||||||||
Return
on average
|
||||||||||||||||
total
assets, % (b)
|
9.65
|
8.83
|
12.37
|
7.95
|
0.40
|
|||||||||||
Return
on average
|
||||||||||||||||
Stockholders'
|
||||||||||||||||
equity,
% (b)
|
11.81
|
10.75
|
15.20
|
9.93
|
0.44
|
|||||||||||
Item 7. |
Management’s
Discussion and Analysis of Financial Condition and
Results
of Operations
|
Percentage
of Net Sales
|
||||||||||
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Net
sales
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
||||
Cost
of sales
|
75.7
|
72.3
|
69.9
|
|||||||
Selling,
general and
|
||||||||||
administrative
expenses
|
14.8
|
15.4
|
16.5
|
|||||||
Casualty
loss
|
0.4
|
-
|
-
|
|||||||
Fixed
asset impairment
|
-
|
-
|
0.5
|
|||||||
Interest
income - net
|
(1.1
|
)
|
(0.5
|
)
|
(0.3
|
)
|
||||
Gain
on sale of marketable
|
||||||||||
securities
|
(2.0
|
)
|
-
|
-
|
||||||
Lawsuit
proceeds
|
-
|
-
|
(1.5
|
)
|
||||||
Earnings
before provision for
|
||||||||||
income
taxes
|
12.2
|
12.8
|
14.9
|
|||||||
Income
tax provision
|
2.3
|
3.5
|
1.9
|
|||||||
Net
earnings
|
9.9
|
9.4
|
13.0
|
Increase
(Decrease) from Prior
Period |
|||||||
2006
compared with 2005 |
2005
compared with 2004 |
||||||
Net
sales
|
18.1
|
%
|
13.6
|
%
|
|||
Cost
of sales
|
23.6
|
17.6
|
|||||
Selling,
general and
|
|||||||
administrative
expenses
|
14.0
|
5.9
|
|||||
Net
earnings
|
24.6
|
(18.2
|
)
|
||||
¨ |
The
Company incurred a 4.6% increase in material costs as a percentage
of net
sales. The increase in raw material costs is principally related
to
increased manufacturing of modules (including new Power products
commencing
in
the second half of 2005), which have a higher raw
material content than the Company’s other products, increased
costs for raw materials such as mosfets, steel, integrated circuits,
PCB’s
and petroleum-based products and increased transportation
costs.
|
¨ |
The
Company’s subcontracting processors have also started to pay higher wage
rates and benefits to its production workers in China,
resulting from a new revised standard work week, new minimum wages
and new
overtime rates.
These higher rates and benefits are reflected in the Company’s cost of
sales.
|
¨ |
Sales
of the Company’s DC-DC power products have increased. While these products
are strategic to Bel’s growth and important to total earnings, they return
lower gross profit percentage margins as a larger percentage of their
bills of materials are purchased components. As these sales continue
to
increase, the Company’s average gross profit percentage will likely
decrease. The increasing sales also have an impact on the accelerated
write-off of intangibles related to contingent purchase price payments
arising from the acquisition of Current Concepts as the amortization
life
of the identifiable intangibles have expired and all payments are
expensed
in the period they were paid.
|
Payments
due by period
|
||||||||||||||||
Contractual
Obligations
|
Total
|
Less
than
1
year
|
1-3
years
|
3-5
years
|
More
than
5
years
|
|||||||||||
Capital
expenditure obligations
|
$
|
1,491,613
|
$
|
1,491,613
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Operating
leases
|
4,734,766
|
1,658,502
|
1,932,688
|
1,143,576
|
||||||||||||
Raw
material purchase obligations
|
14,641,552
|
14,641,552
|
-
|
-
|
-
|
|||||||||||
Total
|
$
|
20,867,931
|
$
|
17,791,667
|
$
|
1,932,688
|
$
|
1,143,576
|
$
|
-
|
BEL
FUSE INC.
|
|||
INDEX
|
|||
Financial
Statements
|
Page
|
||
Report
of Independent Registered
|
|||
Public
Accounting Firm
|
F-1
|
||
Consolidated
Balance Sheets as of
|
|||
December
31, 2006 and 2005
|
F-2
- F-3
|
||
Consolidated
Statements of Operations for Each
|
|||
of
the Three Years in the Period Ended
|
|||
December
31, 2006
|
F-4
|
||
Consolidated
Statements of Stockholders' Equity
|
|||
for
Each of the Three Years in the Period Ended
|
|||
December
31, 2006
|
F-5
- F-6
|
||
Consolidated
Statements of Cash Flows for
|
|||
Each
of the Three Years in the Period Ended
|
|||
December
31, 2006
|
F-7
- F-9
|
||
Notes
to Consolidated Financial Statements
|
F-10
- F-43
|
||
Selected
Quarterly Financial Data - Years Ended
|
|||
December
31, 2006 and 2005 (Unaudited)
|
F-44
|
BEL
FUSE INC. AND SUBSIDIARIES
|
|||||||
CONSOLIDATED
BALANCE SHEETS
|
|||||||
December
31,
|
|||||||
2006
|
2005
|
||||||
ASSETS
|
|||||||
Current
Assets:
|
|||||||
Cash
and cash equivalents
|
$
|
76,760,543
|
$
|
51,997,634
|
|||
Marketable
securities
|
15,576,212
|
38,463,108
|
|||||
Accounts
receivable - less allowance for doubtful
|
|||||||
accounts
of $1,087,000 and $1,107,000 at
|
|||||||
December
31, 2006 and 2005, respectively
|
43,765,750
|
39,304,984
|
|||||
Inventories
|
46,297,208
|
32,947,103
|
|||||
Prepaid
expenses and other current
|
|||||||
assets
|
1,382,807
|
1,691,017
|
|||||
Deferred
income taxes
|
1,665,857
|
-
|
|||||
Assets
held for sale
|
848,049
|
828,131
|
|||||
Total
Current Assets
|
186,296,426
|
165,231,977
|
|||||
Property,
plant and equipment - net
|
44,289,159
|
42,379,356
|
|||||
Deferred
income taxes
|
3,425,375
|
3,901,000
|
|||||
Intangible
assets - net
|
1,892,417
|
2,782,188
|
|||||
Goodwill
|
28,117,143
|
22,427,934
|
|||||
Prepaid
pension costs
|
-
|
1,655,362
|
|||||
Other
assets
|
4,476,990
|
3,678,100
|
|||||
TOTAL
ASSETS
|
$
|
268,497,510
|
$
|
242,055,917
|
BEL
FUSE INC. AND SUBSIDIARIES
|
|||||||
CONSOLIDATED
BALANCE SHEETS
|
|||||||
December
31,
|
|||||||
2006
|
2005
|
||||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
Current
Liabilities:
|
|||||||
Accounts
payable
|
$
|
17,244,937
|
$
|
14,560,827
|
|||
Accrued
expenses
|
12,713,417
|
10,667,558
|
|||||
Deferred
income taxes
|
-
|
1,412,000
|
|||||
Income
taxes payable
|
11,094,107
|
9,840,295
|
|||||
Dividends
payable
|
566,583
|
548,000
|
|||||
Total
Current Liabilities
|
41,619,044
|
37,028,680
|
|||||
Long-term
Liabilities:
|
|||||||
Minimum
pension obligation and
|
|||||||
unfunded
pension liability
|
4,728,286
|
3,450,688
|
|||||
Total
Long-term Liabilities
|
4,728,286
|
3,450,688
|
|||||
Total
Liabilities
|
46,347,330
|
40,479,368
|
|||||
Commitments
and Contingencies
|
|||||||
Stockholders'
Equity:
|
|||||||
Preferred
stock, no par value,
|
|||||||
authorized
1,000,000 shares;
|
|||||||
none
issued
|
-
|
-
|
|||||
Class
A common stock, par value
|
|||||||
$.10
per share - authorized
|
|||||||
10,000,000
shares; outstanding
|
|||||||
2,702,677
and 2,702,677 shares, respectively
|
|||||||
(net
of 1,072,770 treasury shares)
|
270,268
|
270,268
|
|||||
Class
B common stock, par value
|
|||||||
$.10
per share - authorized
|
|||||||
30,000,000
shares; outstanding 9,167,665
|
|||||||
and
9,013,264 shares, respectively
|
|||||||
(net
of 3,218,310 treasury shares)
|
916,767
|
901,327
|
|||||
Additional
paid-in capital
|
31,826,046
|
31,713,608
|
|||||
Retained
earnings
|
190,952,754
|
167,991,188
|
|||||
Deferred
stock-based compensation
|
-
|
(3,562,709
|
)
|
||||
Cumulative
other comprehensive
|
|||||||
income
(loss)
|
(1,815,655
|
)
|
4,262,867
|
||||
Total
Stockholders' Equity
|
222,150,180
|
201,576,549
|
|||||
TOTAL
LIABILITIES AND
|
|||||||
STOCKHOLDERS'
EQUITY
|
$
|
268,497,510
|
$
|
242,055,917
|
BEL
FUSE INC. AND SUBSIDIARIES
|
||||||||||
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
||||||||||
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
|
||||||||||
Net
Sales
|
$
|
254,932,986
|
$
|
215,915,756
|
$
|
190,021,953
|
||||
Costs
and expenses:
|
||||||||||
Cost
of sales
|
192,985,004
|
156,146,724
|
132,776,304
|
|||||||
Selling,
general and administrative
|
37,800,403
|
33,151,672
|
31,301,722
|
|||||||
Casualty
loss
|
1,029,853
|
-
|
-
|
|||||||
Fixed
asset impairment
|
-
|
-
|
1,032,786
|
|||||||
231,815,260
|
189,298,396
|
165,110,812
|
||||||||
Income
from operations
|
23,117,726
|
26,617,360
|
24,911,141
|
|||||||
Interest
expense
|
(70,703
|
)
|
(324,802
|
)
|
(238,552
|
)
|
||||
Gain
on sale of marketable securities
|
5,149,794
|
-
|
-
|
|||||||
Interest
income
|
2,851,536
|
1,422,719
|
763,000
|
|||||||
Lawsuit
proceeds
|
-
|
-
|
2,935,000
|
|||||||
Earnings
before provision for income taxes
|
31,048,353
|
27,715,277
|
28,370,589
|
|||||||
Income
tax provision
|
5,845,000
|
7,482,000
|
3,649,000
|
|||||||
Net
earnings
|
$
|
25,203,353
|
$
|
20,233,277
|
$
|
24,721,589
|
||||
Earnings
per share (2005 and 2004, as
|
||||||||||
restated
- see Note 1)
|
||||||||||
Earnings
per Class A common share
|
||||||||||
Basic
|
$
|
2.03
|
$
|
1.67
|
$
|
2.10
|
||||
Diluted
|
$
|
2.03
|
$
|
1.67
|
$
|
2.10
|
||||
Weighted
average Class A common shares
|
||||||||||
outstanding
- basic
|
2,702,677
|
2,702,677
|
2,702,677
|
|||||||
Weighted
average Class A common shares
|
||||||||||
outstanding
- diluted
|
2,702,677
|
2,702,677
|
2,702,677
|
|||||||
Earnings
per Class B common share
|
||||||||||
Basic
|
$
|
2.16
|
$
|
1.79
|
$
|
2.22
|
||||
Diluted
|
$
|
2.15
|
$
|
1.77
|
$
|
2.16
|
||||
Weighted
average Class B common shares
|
||||||||||
outstanding
- basic
|
9,104,897
|
8,807,498
|
8,581,073
|
|||||||
Weighted
average Class B common shares
|
||||||||||
outstanding
- diluted
|
9,149,445
|
8,890,581
|
8,808,418
|
BEL
FUSE INC. AND SUBSIDIARIES
|
|||||||||||||||||||||||||
CONSOLIDATED
STATEMENTS OF STOCKHOLDERS' EQUITY
|
|||||||||||||||||||||||||
|
|
|
|
Cumulative
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
Deferred
|
|
||||||||
|
|
|
|
Compre-
|
|
|
|
Compre-
|
|
Class
A
|
|
Class
B
|
|
Additional
|
|
Stock-
|
|
||||||||
|
|
|
|
hensive
|
|
Retained
|
|
hensive
|
|
Common
|
|
Common
|
|
Paid-In
|
|
Based
|
|
||||||||
|
|
Total
|
|
Income
|
|
Earnings
|
|
Income
(loss)
|
|
Stock
|
|
Stock
|
|
Capital
|
|
Compensation
|
|||||||||
|
|||||||||||||||||||||||||
Balance,
January 1, 2004
|
$
|
146,854,953
|
$
|
127,406,693
|
$
|
979,576
|
$
|
270,167
|
$
|
846,069
|
$
|
17,352,448
|
$
|
-
|
|||||||||||
Exercise
of stock
|
|||||||||||||||||||||||||
options
|
3,891,266
|
101
|
19,990
|
3,871,175
|
|||||||||||||||||||||
Tax
benefits arising
|
|||||||||||||||||||||||||
from
the disposition of
|
|||||||||||||||||||||||||
non-qualified
|
|||||||||||||||||||||||||
incentive
stock options
|
765,551
|
765,551
|
|||||||||||||||||||||||
Cash
dividends declared on Class A
|
|||||||||||||||||||||||||
common
stock
|
(430,707
|
)
|
(430,707
|
)
|
|||||||||||||||||||||
Cash
dividends declared on Class B
|
|||||||||||||||||||||||||
common
stock
|
(1,748,292
|
)
|
(1,748,292
|
)
|
|||||||||||||||||||||
Currency
translation
|
|||||||||||||||||||||||||
adjustment
|
386,257
|
$
|
386,257
|
386,257
|
|||||||||||||||||||||
Change
in unrealized gain or
|
|||||||||||||||||||||||||
loss
on marketable securities
|
|||||||||||||||||||||||||
-net
of taxes
|
4,020,679
|
4,020,679
|
4,020,679
|
||||||||||||||||||||||
Net
earnings
|
24,721,589
|
24,721,589
|
24,721,589
|
||||||||||||||||||||||
Comprehensive
income
|
$
|
29,128,525
|
|||||||||||||||||||||||
Balance,
December 31, 2004
|
178,461,296
|
149,949,283
|
5,386,512
|
270,268
|
866,059
|
21,989,174
|
-
|
||||||||||||||||||
Exercise
of stock
|
|||||||||||||||||||||||||
options
|
4,115,508
|
20,028
|
4,095,480
|
||||||||||||||||||||||
Tax
benefits arising
|
|||||||||||||||||||||||||
from
the disposition of
|
|||||||||||||||||||||||||
non-qualified
|
|||||||||||||||||||||||||
incentive
stock options
|
429,802
|
429,802
|
-
|
||||||||||||||||||||||
Cash
dividends declared on Class A
|
|||||||||||||||||||||||||
common
stock
|
(430,940
|
)
|
(430,940
|
)
|
|||||||||||||||||||||
Cash
dividends declared on Class B
|
|||||||||||||||||||||||||
common
stock
|
(1,760,432
|
)
|
(1,760,432
|
)
|
|||||||||||||||||||||
Issuance
of restricted
|
|||||||||||||||||||||||||
common
stock
|
5,214,392
|
15,240
|
5,199,152
|
||||||||||||||||||||||
Deferred
stock-based
|
|||||||||||||||||||||||||
compensation
|
(3,742,004
|
)
|
(3,742,004
|
)
|
|||||||||||||||||||||
Currency
translation
|
|||||||||||||||||||||||||
adjustment
|
(669,153
|
)
|
$
|
(669,153
|
)
|
(669,153
|
)
|
||||||||||||||||||
Change
in unrealized gain or
|
|||||||||||||||||||||||||
loss
on marketable securities
|
|||||||||||||||||||||||||
-net
of taxes
|
(454,492
|
)
|
(454,492
|
)
|
(454,492
|
)
|
|||||||||||||||||||
Stock-based
compensation
|
|||||||||||||||||||||||||
expense
|
179,295
|
179,295
|
|||||||||||||||||||||||
Net
earnings
|
20,233,277
|
20,233,277
|
20,233,277
|
||||||||||||||||||||||
Comprehensive
income
|
$
|
19,109,632
|
|||||||||||||||||||||||
Balance,
December 31, 2005
|
201,576,549
|
167,991,188
|
4,262,867
|
270,268
|
901,327
|
31,713,608
|
(3,562,709
|
)
|
BEL
FUSE INC. AND SUBSIDIARIES
|
|||||||||||||||||||||||||
CONSOLIDATED
STATEMENTS OF STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
Cumulative
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
Compre-
|
|
|
|
Compre-
|
|
Class
A
|
|
Class
B
|
|
Additional
|
|
Stock-
|
|
||||||||
|
|
|
|
hensive
|
|
Retained
|
|
hensive
|
|
Common
|
|
Common
|
|
Paid-In
|
|
Based
|
|
||||||||
|
|
Total
|
|
Income
|
|
Earnings
|
|
Income
(loss)
|
|
Stock
|
|
Stock
|
|
Capital
|
|
Compensation
|
|||||||||
|
|||||||||||||||||||||||||
Exercise
of stock
|
|||||||||||||||||||||||||
options
|
3,186,587
|
13,280
|
3,173,307
|
||||||||||||||||||||||
Tax
benefits arising
|
|||||||||||||||||||||||||
from
the disposition of
|
|||||||||||||||||||||||||
non-qualified
|
|||||||||||||||||||||||||
incentive
stock options
|
336,456
|
336,456
|
-
|
||||||||||||||||||||||
Cash
dividends declared on Class A
|
|||||||||||||||||||||||||
common
stock
|
(430,940
|
)
|
(430,940
|
)
|
|||||||||||||||||||||
Cash
dividends declared on Class B
|
|||||||||||||||||||||||||
common
stock
|
(1,810,847
|
)
|
(1,810,847
|
)
|
|||||||||||||||||||||
Issuance
of restricted
|
|||||||||||||||||||||||||
common
stock
|
-
|
2,160
|
(2,160
|
)
|
|||||||||||||||||||||
Deferred
stock-based
|
|||||||||||||||||||||||||
compensation
|
(1,403,157
|
)
|
(1,403,157
|
)
|
-
|
||||||||||||||||||||
Currency
translation
|
|||||||||||||||||||||||||
adjustment
|
387,822
|
$
|
387,822
|
387,822
|
|||||||||||||||||||||
Change
in unrealized gain or
|
|||||||||||||||||||||||||
loss
on marketable securities
|
|||||||||||||||||||||||||
-net
of taxes
|
(4,819,632
|
)
|
(4,819,632
|
)
|
(4,819,632
|
)
|
|||||||||||||||||||
Stock-based
compensation
|
|||||||||||||||||||||||||
expense
|
1,570,701
|
1,570,701
|
-
|
||||||||||||||||||||||
Adoption
of SFAS No. 123 (R)
|
-
|
(3,562,709
|
)
|
3,562,709
|
|||||||||||||||||||||
Unfunded
SERP liability-net
|
|||||||||||||||||||||||||
of
taxes upon adoption of SFAS No. 158
|
(1,646,712
|
)
|
(1,646,712
|
)
|
|||||||||||||||||||||
Net
earnings
|
25,203,353
|
25,203,353
|
25,203,353
|
||||||||||||||||||||||
Comprehensive
income
|
$
|
20,771,543
|
|||||||||||||||||||||||
Balance,
December 31, 2006
|
$
|
222,150,180
|
$
|
190,952,754
|
$
|
(1,815,655
|
)
|
$
|
270,268
|
$
|
916,767
|
$
|
31,826,046
|
$
|
-
|
||||||||||
BEL
FUSE INC. AND SUBSIDIARIES
|
||||||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Cash
flows from operating
|
||||||||||
activities:
|
||||||||||
Net
income
|
$
|
25,203,353
|
$
|
20,233,277
|
$
|
24,721,589
|
||||
Adjustments
to reconcile net
|
||||||||||
income
to net cash provided
|
||||||||||
by
operating activities:
|
||||||||||
Depreciation
and amortization
|
9,027,659
|
10,104,373
|
9,025,364
|
|||||||
Fixed
asset impairment
|
-
|
-
|
1,032,786
|
|||||||
Casualty
loss
|
1,029,853
|
-
|
-
|
|||||||
Stock-based
compensation
|
1,570,701
|
248,000
|
-
|
|||||||
Excess
tax benefits from share-based
|
||||||||||
payment
arrangements
|
(336,456
|
)
|
||||||||
Gain
on sale of marketable securities
|
(5,149,794
|
)
|
||||||||
Other
|
678,664
|
1,464,000
|
1,238,000
|
|||||||
Deferred
income taxes
|
(988,237
|
)
|
(3,602,000
|
)
|
(4,986,000
|
)
|
||||
Changes
in operating assets
|
||||||||||
and
liabilities (net of acquisitions)
|
(12,003,251
|
)
|
2,825,445
|
1,077,010
|
||||||
Net
Cash Provided by
|
||||||||||
Operating
Activities
|
19,032,492
|
31,273,095
|
32,108,749
|
|||||||
Cash
flows from investing activities:
|
||||||||||
Purchase
of property, plant
|
||||||||||
and
equipment - net of accruals
|
(9,364,444
|
)
|
(7,745,817
|
)
|
(6,578,658
|
)
|
||||
Purchase
of marketable
|
||||||||||
securities
|
(3,633,890
|
)
|
(17,998,601
|
)
|
(17,723,615
|
)
|
||||
Payment
of investment banking
|
||||||||||
advisory
fee
|
(300,000
|
)
|
-
|
-
|
||||||
Payment
for acquisitions - net of
|
||||||||||
cash
acquired
|
(6,960,974
|
)
|
(20,807,083
|
)
|
(353,464
|
)
|
||||
Proceeds
from repayment
|
||||||||||
by
contractors
|
-
|
-
|
29,000
|
|||||||
Proceeds
from sale of
|
||||||||||
marketable
securities
|
24,489,966
|
1,621,603
|
6,345,595
|
|||||||
Proceeds
from sale of
|
||||||||||
building
|
-
|
252,587
|
-
|
|||||||
Net
Cash Provided by (Used in)
|
||||||||||
Investing
Activities
|
4,230,658
|
(44,677,311
|
)
|
(18,281,142
|
)
|
BEL
FUSE INC. AND SUBSIDIARIES
|
||||||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS (Continued)
|
||||||||||
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Cash
flows from financing
|
||||||||||
activities:
|
||||||||||
Proceeds
from borrowings
|
-
|
12,000,000
|
-
|
|||||||
Loan
repayments
|
-
|
(19,360,694
|
)
|
(2,000,000
|
)
|
|||||
Proceeds
from exercise of
|
||||||||||
stock
options
|
3,186,587
|
4,115,508
|
3,891,266
|
|||||||
Dividends
paid to common
|
||||||||||
shareholders
|
(2,223,204
|
)
|
(2,183,371
|
)
|
(2,168,258
|
)
|
||||
Excess
tax benefits from share-based
|
||||||||||
payment
arrangements
|
336,456
|
-
|
-
|
|||||||
Net
Cash Provided by (Used In)
|
||||||||||
Financing
Activities
|
1,299,839
|
(5,428,557
|
)
|
(276,992
|
)
|
|||||
Effect
of exchange rate changes on cash
|
199,920
|
(367,484
|
)
|
186,124
|
||||||
Net
Increase (decrease) in
|
||||||||||
Cash
and Cash Equivalents
|
24,762,909
|
(19,200,257
|
)
|
13,736,739
|
||||||
Cash
and Cash Equivalents
|
||||||||||
-
beginning of year
|
51,997,634
|
71,197,891
|
57,461,152
|
|||||||
Cash
and Cash Equivalents
|
||||||||||
-
end of year
|
$
|
76,760,543
|
$
|
51,997,634
|
$
|
71,197,891
|
||||
Changes
in operating assets
|
||||||||||
and
liabilities (net of acquisitions) consist of:
|
||||||||||
Increase
in accounts
|
||||||||||
receivable
|
$
|
(4,280,411
|
)
|
$
|
(2,638,200
|
)
|
$
|
(2,671,513
|
)
|
|
Increase
in inventories
|
(13,500,956
|
)
|
(1,145,242
|
)
|
(2,774,275
|
)
|
||||
Decrease
(increase) in prepaid
|
||||||||||
expenses
and other
|
||||||||||
current
assets
|
288,292
|
809,821
|
(700,243
|
)
|
||||||
Increase
in other assets
|
(498,892
|
)
|
(383,980
|
)
|
(738,878
|
)
|
||||
Increase
in accounts payable
|
2,657,504
|
3,629,923
|
1,299,301
|
|||||||
Increase
in income taxes payable
|
1,590,268
|
3,071,828
|
6,946,523
|
|||||||
Increase
(decrease) in
|
||||||||||
accrued
expenses
|
1,740,944
|
(518,705
|
)
|
(283,905
|
)
|
|||||
$
|
(12,003,251
|
)
|
$
|
2,825,445
|
$
|
1,077,010
|
BEL
FUSE INC. AND SUBSIDIARIES
|
|||||||||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Concluded)
|
Year
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Supplementary
information:
|
||||||||||
Cash
paid during the year for:
|
||||||||||
Income
taxes
|
$
|
4,451,000
|
$
|
6,578,000
|
$
|
2,128,000
|
||||
Interest
|
$
|
71,000
|
$
|
325,000
|
$
|
239,000
|
||||
Details
of acquisitions:
|
||||||||||
Fair
value of assets acquired (excluding
|
||||||||||
cash
acquired of $311,856 in 2005)
|
$
|
-
|
$
|
6,077,138
|
$
|
-
|
||||
Intangibles
|
446,571
|
2,657,518
|
353,464
|
|||||||
Goodwill
|
6,000,000
|
12,546,080
|
-
|
|||||||
6,446,571
|
21,280,736
|
353,464
|
||||||||
Amounts
paid (held back) on
|
||||||||||
acquisition
payment
|
514,403
|
(473,653
|
)
|
-
|
||||||
Cash
paid for acquisitions
|
$
|
6,960,974
|
$
|
20,807,083
|
$
|
353,464
|
Restatement
of Earnings Per Share
|
|||||||
As
Previously
|
|||||||
Year
Ended
|
Reported
|
As
Restated
|
|||||
December
31, 2005
|
|||||||
Basic
|
$
|
1.76
|
|||||
Diluted
|
|
$
|
1.75
|
||||
Class
A - Basic
|
$
|
1.67
|
|||||
Class
B- Basic
|
$
|
1.79
|
|||||
Class
A- Diluted
|
$
|
1.67
|
|||||
Class
B - Diluted
|
$
|
1.77
|
|||||
Year
Ended
|
|||||||
December
31, 2004
|
|||||||
Basic
|
$
|
2.19
|
|||||
Diluted
|
$
|
2.15
|
|||||
Class
A - Basic
|
$
|
2.10
|
|||||
Class
B- Basic
|
$
|
2.22
|
|||||
Class
A- Diluted
|
$
|
2.10
|
|||||
Class
B - Diluted
|
$
|
2.16
|
|||||
2005
|
2004
|
||||||
Basic
|
11,510,175
|
11,283,750
|
|||||
Diluted
|
11,593,258
|
11,551,095
|
2006
|
2005
|
2004
|
||||||||
Class
A Common Shares
|
||||||||||
Weighted
average shares outstanding - basic (as restated)
|
2,702,677
|
2,702,677
|
2,702,677
|
|||||||
Dilutive
impact of stock options and
|
||||||||||
unvested
restricted stock awards
|
-
|
-
|
-
|
|||||||
Weighted
average shares oustanding - diluted (as restated)
|
2,702,677
|
2,702,677
|
2,702,677
|
|||||||
Class
B Common Shares
|
||||||||||
Weighted
average shares outstanding - basic (as restated)
|
9,104,897
|
8,807,498
|
8,581,073
|
|||||||
Dilutive
impact of stock options and
|
||||||||||
unvested
restricted stock awards
|
44,548
|
83,083
|
227,345
|
|||||||
Weighted
average shares oustanding - diluted (as restated)
|
9,149,445
|
8,890,581
|
8,808,418
|
Years
Ended December 31,
|
|||||||
2005
|
2004
|
||||||
Net
earnings - as reported
|
$
|
20,233,277
|
$
|
24,721,589
|
|||
Add:
Stock-based compensation
|
|||||||
expense
included in net income,
|
|||||||
net
of taxes, as reported
|
179,295
|
-
|
|||||
Deduct:
Total stock-based
|
|||||||
employee
compensation expense
|
|||||||
determined
under fair value based
|
|||||||
method
for all awards,
|
|||||||
net
of taxes
|
(643,472
|
)
|
(1,125,427
|
)
|
|||
Net
earnings- pro forma
|
$
|
19,769,100
|
$
|
23,596,162
|
|||
Earnings
per Class A common share -
|
|||||||
basic-as
reported
|
$
|
1.67
|
$
|
2.10
|
|||
Earnings
per Class A common share -
|
|||||||
basic-pro
forma
|
$
|
1.63
|
$
|
2.00
|
|||
Earnings
per Class A common share -
|
|||||||
diluted-as
reported
|
$
|
1.67
|
$
|
2.10
|
|||
Earnings
per Class A common share -
|
|||||||
diluted-pro
forma
|
$
|
1.63
|
$
|
2.00
|
|||
Earnings
per Class B common share -
|
|||||||
basic-as
reported
|
$
|
1.79
|
$
|
2.22
|
|||
Earnings
per Class B common share -
|
|||||||
basic-pro
forma
|
$
|
1.74
|
$
|
2.12
|
|||
Earnings
per Class B common share -
|
|||||||
diluted-as
reported
|
$
|
1.77
|
$
|
2.16
|
|||
Earnings
per Class B common share -
|
|||||||
diluted-pro
forma
|
$
|
1.73
|
$
|
2.07
|
2.
|
ACQUISITIONS
|
Years
Ended
|
|||||||
December
31,
|
|||||||
2005
|
2004
|
||||||
Net
sales
|
$
|
221,227
|
$
|
212,331
|
|||
Net
earnings
|
20,026
|
25,419
|
|||||
Earnings
per share - diluted
|
|||||||
Class
A
|
1.65
|
2.14
|
|||||
Class
B
|
1.75
|
2.23
|
Cash
|
$
|
311,856
|
||
Accounts
receivable
|
3,687,331
|
|||
Inventories
|
2,862,571
|
|||
Prepaid
expenses
|
96,120
|
|||
Income
taxes receivable
|
5,488
|
|||
Property,
plant and
|
||||
equipment
|
1,545,526
|
|||
Other
assets
|
32,083
|
|||
Deferred
tax asset
|
1,392,850
|
|||
Goodwill
|
11,876,080
|
|||
Intangible
assets
|
2,630,000
|
|||
Notes
payable
|
(860,694
|
)
|
||
Accounts
payable
|
(2,129,165
|
)
|
||
Accrued
expenses
|
(386,961
|
)
|
||
Net
assets acquired
|
$
|
21,063,085
|
3.
|
GOODWILL
AND OTHER INTANGIBLES
|
Total
|
|
Asia
|
|
North
America
|
|
Europe
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||
Balance,
January 1, 2005
|
$
|
9,881,854
|
$
|
6,407,435
|
$
|
2,869,092
|
$
|
605,327
|
|||||
Goodwill
allocation
|
|||||||||||||
related
to acquisitions
|
12,546,080
|
-
|
11,543,846
|
1,002,234
|
|||||||||
Balance,
December 31, 2005
|
22,427,934
|
6,407,435
|
14,412,938
|
1,607,561
|
|||||||||
Goodwill
allocation
|
|||||||||||||
related
to acquisitions
|
6,000,000
|
6,000,000
|
-
|
-
|
|||||||||
Purchase price adjustment - reclassification to intangible | |||||||||||||
assets
|
(670,000
|
)
|
-
|
(670,000
|
)
|
-
|
|||||||
Other
purchase price and foreign
|
|||||||||||||
exchange
adjustments
|
359,209
|
-
|
323,529
|
35,680
|
|||||||||
Balance,
December 31, 2006
|
$
|
28,117,143
|
$
|
12,407,435
|
$
|
14,066,467
|
$
|
1,643,241
|
December
31, 2006
|
|||||||||||||||||||
Total
|
Asia
|
North
America
|
|||||||||||||||||
Gross
Carrying
|
|
Accumulated
|
|
Gross
Carrying
|
|
Accumulated
|
|
Gross
Carrying
|
|
Accumulated
|
|
||||||||
|
|
Amount
|
|
Amortization
|
|
Amount
|
|
Amortization
|
|
Amount
|
|
Amortization
|
|||||||
Patents
and Product
|
|||||||||||||||||||
Information
|
$
|
2,935,000
|
$
|
2,250,648
|
$
|
2,653,000
|
$
|
2,044,186
|
$
|
282,000
|
$
|
206,462
|
|||||||
Customer
relationships
|
1,830,000
|
648,125
|
-
|
-
|
1,830,000
|
648,125
|
|||||||||||||
Covenants
not-to-compete
|
5,299,998
|
5,273,808
|
4,499,998
|
4,499,998
|
800,000
|
773,810
|
|||||||||||||
$
|
10,064,998
|
$
|
8,172,581
|
$
|
7,152,998
|
$
|
6,544,184
|
$
|
2,912,000
|
$
|
1,628,397
|
||||||||
December
31, 2005
|
|||||||||||||||||||
|
Total
|
Asia
|
North
America
|
||||||||||||||||
|
Gross
Carrying
|
Accumulated
|
Gross
Carrying
|
Accumulated
|
Gross
Carrying
|
Accumulated
|
|||||||||||||
|
Amount
|
Amortization
|
Amount
|
Amortization
|
Amount
|
Amortization
|
|||||||||||||
Patents
and Product
|
|||||||||||||||||||
Information
|
$
|
2,935,000
|
$
|
1,812,853
|
$
|
2,653,000
|
$
|
1,634,566
|
$
|
282,000
|
$
|
178,287
|
|||||||
Customer
relationships
|
1,160,000
|
178,833
|
-
|
-
|
1,160,000
|
178,833
|
|||||||||||||
Covenants
not-to-compete
|
5,021,034
|
4,342,160
|
4,221,034
|
3,813,589
|
800,000
|
528,571
|
|||||||||||||
$
|
9,116,034
|
$
|
6,333,846
|
$
|
6,874,034
|
$
|
5,448,155
|
$
|
2,242,000
|
$
|
885,691
|
Estimated
|
||||
Year
Ending
|
Amortization
|
|||
December
31,
|
Expense
|
|||
2007
|
$
|
809,277
|
||
2008
|
525,939
|
|||
2009
|
422,296
|
|||
2010
|
120,986
|
|||
2011
|
13,919
|
Amortization
Period - 2006
|
||
Weighted
Average
|
||
Intangible
Asset
|
Estimated
Life
|
|
Patents
and Product Information
|
2.14
years
|
|
Customer
Relationships
|
2.2
years
|
|
Covenants
Not-to-Compete
|
.2
years
|
5.
|
INVENTORIES
|
December
31,
|
|||||||
2006
|
2005
|
||||||
Raw
materials
|
$
|
24,374,438
|
$
|
19,342,703
|
|||
Work
in progress
|
3,531,148
|
2,515,174
|
|||||
Finished
goods
|
18,391,622
|
11,089,226
|
|||||
$
|
46,297,208
|
$
|
32,947,103
|
6.
|
IMPAIRMENT,
CASUALTY LOSSES AND LAWSUIT
PROCEEDS
|
December
31,
|
|||||||
2006
|
2005
|
||||||
Land
|
$
|
3,584,522
|
$
|
3,570,380
|
|||
Buildings
and improvements
|
25,385,367
|
24,509,146
|
|||||
Machinery
and equipment
|
60,745,740
|
73,855,613
|
|||||
89,715,629
|
101,935,139
|
||||||
Less
accumulated depreciation
|
45,426,471
|
59,555,783
|
|||||
$
|
44,289,159
|
$
|
42,379,356
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Current:
|
||||||||||
Federal
|
$
|
4,784
|
$
|
4,590
|
$
|
3,524
|
||||
Foreign
|
1,619
|
6,250
|
5,234
|
|||||||
State
|
430
|
244
|
(123
|
)
|
||||||
6,833
|
11,084
|
8,635
|
||||||||
Deferred:
|
||||||||||
Federal
and state
|
(928
|
)
|
(1,420
|
)
|
(1,586
|
)
|
||||
Foreign
|
(60
|
)
|
(2,182
|
)
|
(3,400
|
)
|
||||
(988
|
)
|
(3,602
|
)
|
(4,986
|
)
|
|||||
$
|
5,845
|
$
|
7,482
|
$
|
3,649
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Tax
provision
|
||||||||||
computed
at the Federal
|
||||||||||
statutory
rate of 34%
|
$
|
10,556
|
$
|
9,423
|
$
|
9,646
|
||||
Increase
(decrease) in
|
||||||||||
taxes
resulting from:
|
||||||||||
Benefit
relating to tax rate differential on foreign
|
||||||||||
earnings
to be repatriated in 2005-net
|
-
|
-
|
(1,017
|
)
|
||||||
Repatriation
of foreign earnings
|
||||||||||
net
of foreign tax credit of $255 and $529
|
-
|
3,100
|
-
|
|||||||
Different
tax rates and permanent
|
||||||||||
differences
applicable to
|
||||||||||
foreign
operations
|
(4,816
|
)
|
(5,128
|
)
|
(3,380
|
)
|
||||
Utilization
of net operating loss
|
||||||||||
carryforward
|
(66
|
)
|
(122
|
)
|
(165
|
)
|
||||
Principally
the utilization of research and
|
||||||||||
development
tax credits
|
(409
|
)
|
(630
|
)
|
(1,413
|
)
|
||||
State
(benefit) taxes, net of federal benefit
|
279
|
161
|
(81
|
)
|
||||||
Other,
net
|
301
|
678
|
59
|
|||||||
$
|
5,845
|
$
|
7,482
|
$
|
3,649
|
December
31,
|
|||||||||||||
2006
|
2005
|
||||||||||||
Temporary
|
|
Temporary
|
|
||||||||||
Difference
|
Tax
Effect
|
Difference
|
Tax
Effect
|
||||||||||
Deferred
Tax Assets -
|
|||||||||||||
current
|
|||||||||||||
Unrealized
|
|||||||||||||
appreciation/
depreciation
|
|||||||||||||
in
marketable securities
|
$
|
2,107
|
$
|
801
|
$
|
-
|
$
|
-
|
|||||
Reserves
and accruals
|
3,586
|
865
|
-
|
-
|
|||||||||
$
|
5,693
|
$
|
1,666
|
$
|
-
|
$
|
-
|
||||||
Deferred
Tax Assets -
|
|||||||||||||
non-current:
|
|||||||||||||
United
States net operating loss
|
|||||||||||||
carryforward
|
$
|
2,335
|
$
|
887
|
$
|
4,316
|
$
|
1,640
|
|||||
Unfunded
pension liability
|
2,332
|
686
|
-
|
-
|
|||||||||
Depreciation
|
677
|
188
|
(2,474
|
)
|
(134
|
)
|
|||||||
Amortization
|
1,654
|
519
|
972
|
373
|
|||||||||
State
net operating loss and
|
|||||||||||||
credits
carryforward
|
1,821
|
338
|
1,887
|
345
|
|||||||||
Other
accruals
|
3,378
|
1,145
|
6,660
|
2,022
|
|||||||||
Valuation
allowances
|
(1,821
|
)
|
(338
|
)
|
(1,887
|
)
|
(345
|
)
|
|||||
$
|
10,376
|
$
|
3,425
|
$
|
9,474
|
$
|
3,901
|
||||||
Deferred
Tax Liability -
|
|||||||||||||
current:
|
|||||||||||||
Unrealized
|
|||||||||||||
appreciation/
depreciation
|
|||||||||||||
in
marketable securities
|
$
|
-
|
$
|
-
|
$
|
5,661
|
$
|
2,151
|
|||||
Reserves
and accruals
|
-
|
-
|
(2,352
|
)
|
(739
|
)
|
|||||||
|
$ | - |
$
|
-
|
$
|
3,309
|
$
|
1,412
|
Year
Ended December 31,
|
|||||||
2006
|
2005
|
||||||
Sales
commissions
|
$
|
1,715,816
|
$
|
1,812,135
|
|||
Investment
banking commissions
|
-
|
1,105,510
|
|||||
Subcontracting
labor
|
2,032,763
|
1,597,279
|
|||||
Salaries,
bonuses and
|
|||||||
related
benefits
|
4,147,135
|
2,642,729
|
|||||
Other
|
4,817,703
|
3,509,905
|
|||||
$
|
12,713,417
|
$
|
10,667,558
|
2006
|
2005
|
2004
|
||||||||
Net
sales from unrelated
|
||||||||||
entities
and country
|
||||||||||
of Company's domicile: | ||||||||||
North
America
|
$
|
73,241
|
$
|
69,089
|
$
|
67,177
|
||||
Asia
|
153,037
|
131,104
|
109,011
|
|||||||
Europe
|
28,655
|
15,723
|
13,834
|
|||||||
$
|
254,933
|
$
|
215,916
|
$
|
190,022
|
|||||
Net
sales:
|
||||||||||
North
America
|
$
|
80,860
|
$
|
80,836
|
$
|
76,979
|
||||
Asia
|
200,773
|
151,992
|
132,224
|
|||||||
Europe
|
30,105
|
16,967
|
15,194
|
|||||||
Less
intergeographic
|
||||||||||
revenues
|
(56,805
|
)
|
(33,879
|
)
|
(34,375
|
)
|
||||
$
|
254,933
|
$
|
215,916
|
$
|
190,022
|
|||||
Income
from Operations:
|
||||||||||
North
America
|
$
|
2,658
|
$
|
4,020
|
$
|
8,475
|
||||
Asia
|
19,622
|
22,391
|
15,805
|
|||||||
Europe
|
838
|
206
|
631
|
|||||||
$
|
23,118
|
$
|
26,617
|
$
|
24,911
|
|||||
Long
Lived Assets:
|
||||||||||
North
America
|
$
|
18,026
|
$
|
17,419
|
||||||
Asia
|
30,050
|
27,944
|
||||||||
Europe
|
690
|
694
|
||||||||
$
|
48,766
|
$
|
46,057
|
|||||||
Capital
Expenditures:
|
||||||||||
North
America
|
$
|
2,823
|
$
|
1,328
|
$
|
736
|
||||
Asia
|
6,783
|
6,322
|
5,557
|
|||||||
Europe
|
227
|
96
|
286
|
|||||||
$
|
9,833
|
$
|
7,746
|
$
|
6,579
|
|||||
Depreciation
and Amortization
|
||||||||||
expense:
|
||||||||||
North
America
|
$
|
2,314
|
$
|
2,526
|
$
|
1,928
|
||||
Asia
|
6,477
|
7,364
|
6,966
|
|||||||
Europe
|
237
|
214
|
131
|
|||||||
$
|
9,028
|
$
|
10,104
|
$
|
9,025
|
December
31,
|
2006
|
2005
|
2004
|
|||||||
Change
in benefit obligation:
|
||||||||||
Projected
benefit obligation at beginning of year
|
$
|
4,476,296
|
$
|
2,890,113
|
$
|
2,637,902
|
||||
Service
cost
|
325,415
|
331,942
|
221,981
|
|||||||
Interest
cost
|
242,587
|
211,920
|
145,085
|
|||||||
Plan
amendments
|
-
|
444,684
|
-
|
|||||||
Benefits
paid
|
(131,250
|
)
|
(37,500
|
)
|
-
|
|||||
Actuarial
(gains) losses
|
(184,762
|
)
|
635,137
|
(114,855
|
)
|
|||||
Minimum
pension obligation and
|
||||||||||
unfunded
pension liability
|
$
|
4,728,286
|
$
|
4,476,296
|
$
|
2,890,113
|
||||
Funded
status of plan:
|
||||||||||
Under
funded status
|
$
|
(4,728,286
|
)
|
$
|
(4,476,296
|
)
|
$
|
(2,890,113
|
)
|
|
Unrecognized
net loss
|
-
|
869,673
|
259,218
|
|||||||
Unrecognized
prior service costs
|
-
|
1,811,297
|
1,497,253
|
|||||||
Accrued
pension cost
|
$
|
(4,728,286
|
)
|
$
|
(1,795,326
|
)
|
$
|
(1,133,642
|
)
|
|
Change
in plan assets:
|
||||||||||
Fair
value of plan assets, beginning of year
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
Company
contributions
|
131,250
|
37,500
|
-
|
|||||||
Benefit
paid
|
(131,250
|
)
|
(37,500
|
)
|
-
|
|||||
Fair
value of plan assets, end of year
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
Balance
sheet amounts:
|
||||||||||
Minimum
pension obligation and
|
||||||||||
unfunded
pension liability
|
$
|
4,728,286
|
$
|
3,450,688
|
$
|
2,261,583
|
||||
Intangible
asset
|
-
|
1,655,362
|
1,127,941
|
|||||||
The
components of SERP expense are as follows:
|
||||||||||
December
31,
|
2006
|
2005
|
2004
|
|||||||
Service
cost
|
$
|
325,415
|
$
|
331,942
|
$
|
221,981
|
||||
Interest
cost
|
242,587
|
211,920
|
145,085
|
|||||||
Net
amortization and deferral
|
161,142
|
155,322
|
142,363
|
|||||||
Total
SERP expense
|
$
|
729,144
|
$
|
699,184
|
$
|
509,429
|
||||
Assumption
percentages:
|
||||||||||
Discount
rate
|
6.00
|
%
|
5.50
|
%
|
5.50
|
%
|
||||
Rate
of compensation increase
|
3.00
|
%
|
3.00
|
%
|
3.00
|
%
|
||||
Deferred tax asset - long term | $ |
686,000
|
||
Other Comprehensive Loss - net of income tax benefit |
1,646,712
|
|||
Unfunded pension liability - long term |
2,332,712
|
|||
Intangible assets |
(1,107,000
|
) |
2006
|
2005
|
2004
|
|||||||||||||||||
Weighted-
|
Weighted-
|
Weighted-
|
|||||||||||||||||
Average
|
Average
|
Average
|
|||||||||||||||||
Exercise
|
Exercise
|
Exercise
|
|||||||||||||||||
Shares
|
Price
|
Shares
|
Price
|
Shares
|
Price
|
||||||||||||||
Options
out-
|
|||||||||||||||||||
standing,
begin-
|
|||||||||||||||||||
ning
of year
|
286,013
|
$
|
24.96
|
495,289
|
$
|
23.17
|
712,600
|
$
|
21.61
|
||||||||||
Options
exercised
|
(132,800
|
)
|
$
|
24.00
|
(200,276
|
)
|
$
|
20.50
|
(200,911
|
)
|
$
|
19.37
|
|||||||
Options
granted
|
-
|
$
|
-
|
-
|
$
|
-
|
24,000
|
$
|
37.00
|
||||||||||
Options
cancelled
|
(15,400
|
)
|
$
|
27.60
|
(9,000
|
)
|
$
|
27.29
|
(40,400
|
)
|
$
|
22.71
|
|||||||
Options
out-
|
|||||||||||||||||||
standing,
end
|
|||||||||||||||||||
of
year
|
137,813
|
$
|
25.59
|
286,013
|
$
|
24.96
|
495,289
|
$
|
23.17
|
||||||||||
Options
price
|
|||||||||||||||||||
range
at end
|
|||||||||||||||||||
of
year
|
$
|
18.89
to $37.00
|
$
|
18.89
to $37.00
|
$
|
17.00
to $37.00
|
|||||||||||||
Options
price
|
|||||||||||||||||||
range
for
|
|||||||||||||||||||
exercised
|
|||||||||||||||||||
shares
|
$
|
18.89
to $29.50
|
$
|
17.00
to $29.50
|
$
|
15.38
to $29.50
|
|||||||||||||
Options
available
|
|||||||||||||||||||
for
grant at end
|
|||||||||||||||||||
of
year
|
811,785
|
810,985
|
954,385
|
||||||||||||||||
Weighted-
|
|||||||||||||||||||
average
fair
|
|||||||||||||||||||
value
of options
|
|||||||||||||||||||
granted
during
|
|||||||||||||||||||
the
year
|
$
|
-
|
$
|
-
|
$
|
8.66
|
Weighted-
|
||||||||||||||||
Number
Out-
|
Average
|
Weighted-
|
Number
|
Weighted-
|
||||||||||||
Range
of
|
standing
at
|
Remaining
|
Average
|
Exercisable
at
|
Average
|
|||||||||||
Exercise
|
December
31,
|
Contractual
|
Exercise
|
December
31,
|
Exercise
|
|||||||||||
Prices
|
2006
|
Life
|
Price
|
2006
|
Price
|
|||||||||||
$29.50
|
61,813
|
3
years
|
$
|
29.50
|
16,813
|
$
|
29.50
|
|||||||||
$19.52
- $22.25
|
5,000
|
1
year
|
$
|
21.70
|
5,000
|
$
|
21.70
|
|||||||||
$18.89
|
57,000
|
1
year
|
$
|
18.89
|
18,000
|
$
|
18.89
|
|||||||||
$37.00
|
14,000
|
3
years
|
$
|
37.00
|
7,000
|
$
|
37.00
|
|||||||||
137,813
|
2.5
years
|
$
|
25.59
|
46,813
|
$
|
25.21
|
Weighted-Average
|
|||||||
Grant-Date
|
|||||||
Nonvested
options
|
Options
|
Fair
Value
|
|||||
Nonvested
at December 31, 2005
|
177,500
|
$
|
24.28
|
||||
Granted
|
-
|
-
|
|||||
Vested
|
(71,100
|
)
|
21.52
|
||||
Forfeited
|
(15,400
|
)
|
27.60
|
||||
|
|||||||
Nonvested
at December 31, 2006
|
91,000
|
$
|
25.78
|
Weighted
|
|||||||||||||
Weighted
|
Average
|
||||||||||||
Average
|
Remaining
|
Aggregate
|
|||||||||||
Restricted
Stock
|
Award
|
Contractual
|
Intrinsic
|
||||||||||
Awards
|
Shares
|
Price
|
Term
|
Value
|
|||||||||
Outstanding
at January 1, 2006
|
152,400
|
$
|
35.64
|
||||||||||
Granted
|
-
|
-
|
|||||||||||
Awarded
|
21,600
|
30.67
|
|||||||||||
Forfeited
|
(7,000
|
)
|
36.09
|
||||||||||
Outstanding
at December 31, 2006
|
167,000
|
34.93
|
3.85
|
$
|
-
|
||||||||
Vested
at
December 31, 2006
|
-
|
-
|
$
|
-
|
Years Ending | ||||||
December 31, | ||||||
2007
|
$
|
1,659,000
|
||||
2008
|
1,099,000
|
|||||
2009
|
833,000
|
|||||
2010
|
572,000
|
|||||
2011
|
572,000
|
|||||
$
|
4,735,000
|
2006
|
2005
|
||||||
Foreign
currency translation
|
|||||||
adjustment
|
$
|
1,140,884
|
$
|
753,062
|
|||
Unrealized
holding gain (loss)
|
|||||||
on
available-for-sale securities
|
|||||||
under
SFAS No. 115, net of
|
|||||||
taxes
of $(802,797) and $2,244,207
|
|||||||
as
of December 31, 2006 and 2005
|
(1,309,827
|
)
|
3,509,805
|
||||
Unfunded
SERP liability upon
|
|||||||
adoption
of SFAS No. 158, net
|
|||||||
of
taxes of $(686,000) as of
|
|||||||
December
31, 2006
|
(1,646,712
|
)
|
-
|
||||
Accumulated
other comprehensive
|
|||||||
income
(loss)
|
$
|
(1,815,655
|
)
|
$
|
4,262,867
|
CONDENSED
SELECTED QUARTERLY FINANCIAL DATA
|
||||||||||||||||
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Total
Year
|
|
|||||
|
|
Quarter
Ended
|
|
Ended
|
|
|||||||||||
|
|
March
31,
|
|
June
30,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
|||||
|
|
2006
|
|
2006
|
|
2006
|
|
2006
|
|
2006
|
|
|||||
Net
sales
|
$
|
54,626,248
|
$
|
66,474,098
|
$
|
73,259,757
|
$
|
60,572,883
|
$
|
254,932,986
|
||||||
Gross
profit
|
14,639,359
|
16,212,423
|
17,449,799
|
13,646,401
|
61,947,982
|
|||||||||||
Net
earnings
|
3,997,299
|
8,763,456
|
7,745,485
|
4,697,113
|
25,203,353
|
|||||||||||
Earnings
|
||||||||||||||||
per
Class A
common share
|
||||||||||||||||
-
basic
(2)
|
$
|
0.32
|
$
|
0.71
|
$
|
0.62
|
$
|
0.38
|
$
|
2.03
|
||||||
Earnings
|
||||||||||||||||
per
Class A
common share
|
||||||||||||||||
diluted
(2)
|
$
|
0.32
|
$
|
0.71
|
$
|
0.62
|
$
|
0.38
|
$
|
2.03
|
||||||
Earnings
|
||||||||||||||||
per
Class B
common share
|
||||||||||||||||
-
basic
(2)
|
$
|
0.35
|
$
|
0.75
|
$
|
0.66
|
$
|
0.40
|
$
|
2.16
|
||||||
Earnings
|
||||||||||||||||
per
Class B
common share
|
||||||||||||||||
diluted
(2)
|
$
|
0.34
|
$
|
0.75
|
$
|
0.66
|
$
|
0.40
|
$
|
2.15
|
||||||
As
previously
reported (2)
|
||||||||||||||||
Earnings
per
share - basic
|
$
|
0.34
|
$
|
0.74
|
$
|
0.65
|
N/A
|
N/A
|
||||||||
Earnings
per
share - diluted
|
$
|
0.34
|
$
|
0.74
|
$
|
0.65
|
N/A
|
N/A
|
Total
Year
|
||||||||||||||||
|
|
|
Quarter
Ended
|
|
|
Ended
|
|
|||||||||
|
|
March
31,
|
|
|
June
30,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
|
|
2005
|
|
|
2005
|
|
|
2005
|
|
|
2005
|
|
|
2005
|
|
Net
sales
|
$
|
45,438,285
|
$
|
57,545,421
|
$
|
56,247,745
|
$
|
56,684,305
|
$
|
215,915,756
|
||||||
Gross
profit
|
12,749,474
|
16,853,324
|
15,827,945
|
14,338,289
|
59,769,032
|
|||||||||||
Net
earnings
|
4,313,365
|
6,668,675
|
5,986,397
|
3,264,840
|
20,233,277
|
|||||||||||
Earnings
|
||||||||||||||||
per
Class A
common share
|
||||||||||||||||
-
basic
(2)
|
$
|
0.36
|
$
|
0.55
|
$
|
0.50
|
$
|
0.26
|
$
|
1.67
|
||||||
Earnings
|
||||||||||||||||
per
Class A
common share
|
||||||||||||||||
diluted
(2)
|
$
|
0.36
|
$
|
0.55
|
$
|
0.50
|
$
|
0.26
|
$
|
1.67
|
||||||
Earnings
|
||||||||||||||||
per
Class B
common share
|
||||||||||||||||
-
basic
(2)
|
$
|
0.39
|
$
|
0.59
|
$
|
0.53
|
$
|
0.28
|
$
|
1.79
|
||||||
Earnings
|
||||||||||||||||
per
Class B
common share
|
||||||||||||||||
diluted
(2)
|
$
|
0.38
|
$
|
0.59
|
$
|
0.52
|
$
|
0.28
|
$
|
1.77
|
||||||
As
previously
reported (2)
|
||||||||||||||||
Earnings
per
share - basic
|
$
|
0.38
|
$
|
0.58
|
$
|
0.52
|
$
|
0.28
|
$
|
1.76
|
||||||
Earnings
per
share - diluted
|
$
|
0.38
|
$
|
0.58
|
$
|
0.52
|
$
|
0.28
|
$
|
1.75
|
BEL
FUSE INC. AND SUBSIDIARIES
|
|||||||||||||||||||
SCHEDULE
II - VALUATION AND QUALIFYING
ACCOUNTS
|
Column
A
|
Column
B
|
Column
C
|
Column
D
|
Column
E
|
Column
F
|
|||||||||||||
Charged
|
Additions
|
|||||||||||||||||
Balance
at
|
to
profit
|
Charged
|
Balance
|
|||||||||||||||
beginning
|
and
loss
|
to
other
|
Deductions
|
at
close
|
||||||||||||||
Description
|
of
period
|
or
income
|
accounts
|
(describe)(a)
|
of
period
|
|||||||||||||
|
||||||||||||||||||
Year
ended
December 31, 2006
|
||||||||||||||||||
Allowance
for
doubtful
|
||||||||||||||||||
accounts
|
$
|
1,107,000
|
$
|
707,000
|
$
|
109,000
|
(a
|
)
|
$
|
836,000
|
$
|
1,087,000
|
||||||
Allowance
for
excess and
|
||||||||||||||||||
obsolete
inventory
|
$
|
5,017,000
|
$
|
1,470,000
|
$
|
(6,000
|
)
|
$
|
1,418,000
|
$
|
5,063,000
|
|||||||
Year
ended
December 31, 2005
|
||||||||||||||||||
Allowance
for
doubtful
|
||||||||||||||||||
accounts
|
$
|
1,610,000
|
$
|
275,000
|
$
|
25,000
|
(a
|
)
|
$
|
803,000
|
$
|
1,107,000
|
||||||
Allowance
for
excess and
|
||||||||||||||||||
obsolete
inventory
|
$
|
5,471,000
|
$
|
867,000
|
$
|
475,000
|
$
|
1,796,000
|
$
|
5,017,000
|
||||||||
Year
ended
December 31, 2004
|
||||||||||||||||||
Allowance
for
doubtful
|
||||||||||||||||||
accounts
|
$
|
1,976,000
|
$
|
233,000
|
$
|
65,000
|
(a
|
)
|
$
|
664,000
|
$
|
1,610,000
|
||||||
Allowance
for
excess and
|
||||||||||||||||||
obsolete
inventory
|
$
|
5,679,000
|
$
|
1,250,000
|
$
|
43,000
|
$
|
1,501,000
|
$
|
5,471,000
|
(a)
Write
offs.
|
Page
|
||||
(a)
|
Financial
Statements
|
|||
1.
|
Financial
statements filed as a part of this
|
|||
Annual
Report on Form 10-K:
|
||||
Report
of Independent Registered
|
||||
Public
Accounting Firm
|
|
F-1 | ||
Consolidated
Balance Sheets as of December 31,
|
||||
2006
and 2005
|
|
F-2
- F-3
|
||
Consolidated
Statements of Operations for Each
|
||||
of
the Three Years in the Period Ended
|
||||
December
31, 2006
|
|
F-4
|
||
Consolidated
Statements of Stockholders' Equity
|
||||
for
Each of the Three Years in the Period
|
||||
|
Ended
December 31, 2006
|
F-5
- F-6
|
||
Consolidated
Statements of Cash Flows for Each
|
||||
of
the Three Years in the Period Ended
|
||||
|
December
31, 2006
|
F-7
- F-9
|
||
|
Notes
to Consolidated Financial Statements
|
F-
10 - F-43
|
||
Selected
Quarterly Financial Data - Years Ended
|
||||
December
31, 2006 and 2005 (Unaudited)
|
|
F-44
|
||
2.
|
Financial
statement schedules filed as part of
|
|||
this
report:
|
||||
Schedule
II: Valuation and Qualifying Accounts
|
|
S-1
|
||
All
other schedules are omitted because they are
|
||||
inapplicable,
not required or the information is
|
||||
included
in the consolidated financial statements or notes
|
||||
thereto.
|
3.1
|
Certificate
of Incorporation, as amended, is incorporated by reference to Exhibit
3.1
of the Company’s Annual Report on Form 10-K for the year ended December
31, 1999.
|
3.2
|
By-laws,
as amended, are incorporated by reference to Exhibit 4.2 of the Company's
Registration Statement on Form S-2 (Registration No. 33-16703) filed
with
the Securities and Exchange Commission on August 25,
1987.
|
10.1
|
Agency
agreement dated October 1, 1988 between Bel Fuse Ltd. and Rush Profit
Ltd.
Incorporated by reference to Exhibit 10.1 of the Company's annual
report
on Form 10-K for the year ended December 31,
1994.
|
10.2
|
Contract
dated March 16, 1990 between Accessorios Electronicos (Bel Fuse Macau
Ltd.) and the Government of Macao. Incorporated by reference to Exhibit
10.2 of the Company's annual report on Form 10-K for the year ended
December 31, 1994.
|
10.3
|
Loan
agreement dated February 14, 1990 between Bel Fuse, Ltd. (as lender)
and
Luen Fat Lee Electronic Factory (as borrower). Incorporated by reference
to Exhibit 10.3 of the Company's Annual Report on Form 10-K for the
year
ended December 31, 1995.
|
10.4
|
2002
Equity Compensation Program.
Incorporated by reference to the
Registrant’s proxy statement for its 2002 annual meeting of
shareholders.
|
10.5
|
Amended
and Restated Credit and Guarantee Agreement, dated as of March 21,
2003,
by and among Bel Fuse Inc., as Borrower, the Subsidiary Guarantors
party
thereto and The Bank of New York, as Lender. Incorporated by reference
to
Exhibit 10.7 of the Company’s Form 10-K for the year ended December 31,
2002.
|
10.7
|
Agreement
and Plan of Merger dated as of March 4, 2005 by and among Bel Fuse,
Inc.,
Bel Westboro, Inc. and Galaxy Power, Inc. Incorporated by reference
to
exhibit 2.1 of the Company's Form 8-K dated March 7,
2005.
|
10.8
|
Contract
for Purchase and Sale of Real Estate dated July 15, 2004 between
Bel Fuse
Inc. and Fields Development Group Co .Incorporated by reference to
Exhibit
10.9 of the Company’s Form 10-K for the year ended December 31,
2004.
|
11.1
|
A
statement regarding the computation of earnings per share is omitted
because such computation can be clearly determined from the material
contained in this Annual Report on Form
10-K.
|
22.1
|
Subsidiaries
of the Registrant.
|
23.1
|
Consent
of Independent Registered Public Accounting
Firm.
|
31.1
|
Certification
of the Chief Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
|
31.2
|
Certification
of the Vice President of Finance pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
32.1
|
Certification
of the Chief Executive Officer pursuant to Section 906 of the Sarbanes
-
Oxley Act of 2002.
|
BEL FUSE INC. | ||
|
|
|
Date: March 16, 2007 | By: | /s/ Daniel Bernstein |
Daniel Bernstein, President, Chief
Executive
Officer and
Director
|
Signature
|
Title
|
Date
|
|||
/S/
Daniel Bernstein
|
President,
Chief
|
March
16, 2007
|
|||
Daniel
Bernstein
|
Executive
Officer and Director
|
||||
|
|||||
/s/
Howard Bernstein
|
Director
|
March
16, 2007
|
|||
Howard
B. Bernstein
|
|||||
/s/
Robert H. Simandl
|
Director
|
March
16, 2007
|
|||
Robert
H. Simandl
|
|||||
/s/
Peter Gilbert
|
Director
|
March
16, 2007
|
|||
Peter
Gilbert
|
|||||
/s/
John Tweedy
|
Director
|
March
16, 2007
|
|||
John
Tweedy
|
|||||
/s/
John Johnson
|
Director
|
March
16, 2007
|
|||
John
Johnson
|
|||||
/s/
Avi Eden
|
Director
|
March
16, 2007
|
|||
Avi
Eden
|
|||||
/s/
Colin Dunn
|
Vice-President
|
||||
Colin
Dunn
|
Finance
and Secretary
|
March
16, 2007
|
Ex
- 22.1
|
Jurisdiction
of
|
||
Name
|
Incorporation
|
|
Bel
Components Ltd.
|
Hong
Kong
|
|
Bel
Connector Inc.
|
Delaware
|
|
Bel
Fuse Delaware Inc.
|
Delaware
|
|
Bel
Fuse Europe Ltd.
|
United
Kingdom
|
|
Bel
Fuse Limited
|
Hong
Kong
|
|
Bel
Fuse Macau LDA
|
Macao
|
|
Bel
Fuse (Macao Commerical
|
||
Offshore)
Limited
|
Macao
|
|
Bel
Power (Hangzhou) Co. Ltd.
|
China
|
|
Bel
Power Products Inc.
|
Delaware
|
|
Bel
Stewart GmbH
|
Germany
|
|
Bel
Stewart Limited
|
Hong
Kong
|
|
Bel
Transformer Inc.
|
Delaware
|
|
Bel
Ventures Inc.
|
Delaware
|
|
Bel
Power Inc.
|
Massachusetts
|
|
Netwatch
s.r.o.
|
Czech
Republic
|
|
Signal
Dominicana, S.A.
|
Dominican
Republic
|
|
Stewart
Connector Systems de
|
||
Mexico,
S.A. de C.V.
|
Mexico
|
|
Top
East Corporation Limited
|
Hong
Kong
|
|
Netwatch
s.r.o.
|
Czeck
Republic
|
|
(a)
|
designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to
ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is
being
prepared;
|
(b)
|
designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision,
to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
(c)
|
evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness
of
the disclosure controls and procedures as of the end of the period
covered
by this report based on such evaluation;
and
|
(d)
|
disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely
to
materially affect, the registrant’s internal control over financial
reporting; and
|
(a)
|
all
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
(b)
|
any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Date: March 16, 2007 | /s/ Daniel Bernstein | ||
|
Daniel
Bernstein
President
and Chief Executive Officer
|
(a)
|
designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to
ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is
being
prepared;
|
(b)
|
designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision,
to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
(c)
|
evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness
of
the disclosure controls and procedures as of the end of the period
covered
by this report based on such evaluation;
and
|
(d)
|
disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely
to
materially affect, the registrant’s internal control over financial
reporting; and
|
(a)
|
all
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
(b)
|
any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Date: March 16, 2007 | /s/ Colin Dunn | ||
|
Colin
Dunn
Vice-President
- Finance and
Secretary
|