NEW JERSEY
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0-11676
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22-1463699
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(State of incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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206 Van Vorst Street, Jersey City, New Jersey
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07302
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(Address of principal executive offices)
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(Zip Code)
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Date: May 6, 2016
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BEL FUSE INC.
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(Registrant)
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By:
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/s/Daniel Bernstein
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Daniel Bernstein
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President and Chief Executive Officer
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Exhibit No.
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Description
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99.1
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Press release, dated May 6, 2016 issued by the Company.
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FOR IMMEDIATE RELEASE
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Bel Fuse Inc.
206 Van Vorst Street
Jersey City, NJ 07302
www.belfuse.com
tel 201.432.0463
fax 201.432.9542
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Investor Contact:
Darrow Associates
tel 516.419.9915
pseltzberg@darrowir.com
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Company Contact:
Daniel Bernstein
President
ir@belf.com
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·
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Net sales decreased 14.7% to $121.2 million in the first quarter of 2016 as compared with $142.0 million in the first quarter of 2015.
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·
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Operating loss was $103.4 million in the first quarter of 2016, which included a non-cash goodwill and other intangible assets impairment charge of $108.6 million. Excluding this charge, operating profit was $5.2 million. This compares with operating profit of $9.0 million in the first quarter of 2015.
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·
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GAAP EPS was a loss of $(8.15) per Class A share and $(8.55) per Class B share in the first quarter of 2016, which included a non-cash goodwill and other intangible assets impairment charge of $8.62 per Class A share and $9.05 per Class B share. Excluding this charge and restructuring charges of $0.01 per Class A&B share, Non GAAP EPS was $0.48 per Class A share and $0.51 per Class B share in the first quarter of 2016. This compares with Non GAAP EPS of $0.49 per Class A share and $0.51 per Class B share in the first quarter of 2015.
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Bel Fuse Inc.
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||||||||
Supplementary Information(1)(2)
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||||||||
Condensed Consolidated Statements of Operations
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||||||||
(in thousands, except per share amounts)
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||||||||
(unaudited)
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||||||||
Three Months Ended
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||||||||
March 31,
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||||||||
2016
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2015
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|||||||
Net sales
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$
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121,182
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$
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142,015
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||||
Cost of sales
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98,108
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115,202
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||||||
Gross profit
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23,074
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26,813
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||||||
As a % of net sales
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19.0
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%
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18.9
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%
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||||
Selling, general and administrative expenses
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17,670
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17,608
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||||||
As a % of net sales
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14.6
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%
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12.4
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%
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||||
Impairment of goodwill and other intangible assets(3)
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108,583
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-
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||||||
Restructuring charges
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228
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158
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||||||
(Loss) income from operations
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(103,407
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)
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9,047
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|||||
As a % of net sales
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-85.3
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%
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6.4
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%
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||||
Interest expense
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(2,201
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)
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(2,179
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)
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||||
Interest income and other, net
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40
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402
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||||||
(Loss) earnings before (benefit) provision for income taxes
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(105,568
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)
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7,270
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|||||
(Benefit) provision for income taxes
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(4,872
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)
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1,950
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Effective tax rate
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4.6
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%
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26.8
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%
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||||
Net (loss) earnings available to common stockholders
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$
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(100,696
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)
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$
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5,320
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|||
As a % of net sales
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-83.1
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%
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3.7
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%
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||||
Weighted average number of shares outstanding:
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||||||||
Class A common shares - basic and diluted
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2,175
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2,175
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Class B common shares - basic and diluted
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9,701
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9,670
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Net (loss) earnings per common share:
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||||||||
Class A common shares - basic and diluted
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$
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(8.15
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)
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$
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0.43
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Class B common shares - basic and diluted
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$
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(8.55
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)
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$
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0.45
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(1) The supplementary information included in this press release for 2016 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
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(2) First quarter 2015 has been revised from our 10-Q disclosures to reflect immaterial measurement period adjustments related to the acquisitions completed in 2014. First quarter 2015 reflected cost of sales of $114.9 million, net earnings of $5.6 million, earnings per Class A common share of $0.45 per share and earnings per Class B common share of $0.48 per share.
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||||||||
(3) As part of our interim review for impairment of our reporting units, we identified an impairment within our North America, Europe and Asia reporting units due to lower-than-anticipated growth rates from challenging macroeconomic conditions. As a result, we have recorded a non-cash, pre-tax charge for impairment of goodwill and certain intangible assets of $108.6 million, ($106.5 million, net of taxes and $8.62 impact to EPS per Class A and $9.05 per Class B shares). This estimated amount is subject to finalization and will be finalized in the second quarter of 2016. We do not expect this impairment to result in any future cash expenditures, impact liquidity, affect the ongoing business or financial performance of our reporting units, or impact compliance with our debt covenants.
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Bel Fuse Inc.
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||||||||
Supplementary Information(1)(2)
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||||||||
Condensed Consolidated Balance Sheets
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||||||||
(in thousands, unaudited)
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||||||||
March 31,
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December 31,
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|||||||
2016
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2015
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|||||||
Assets
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||||||||
Current assets:
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||||||||
Cash and cash equivalents
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$
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69,045
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$
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85,040
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Accounts receivable, net
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76,856
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86,268
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Inventories
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99,981
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98,510
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Other current assets
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13,072
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10,653
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Total current assets
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258,954
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280,471
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Property, plant and equipment, net
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55,985
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57,611
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||||||
Goodwill and other intangible assets, net
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99,135
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209,461
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||||||
Other assets
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30,607
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35,828
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||||||
Total assets
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$
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444,681
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$
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583,371
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Liabilities and Stockholders' Equity
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||||||||
Current liabilities:
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||||||||
Accounts payable
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$
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49,134
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$
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49,798
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Current portion of long-term debt
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9,896
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24,772
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||||||
Other current liabilities
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40,575
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47,282
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||||||
Total current liabilities
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99,605
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121,852
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||||||
Long-term debt
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152,017
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158,776
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||||||
Other liabilities
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59,236
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69,621
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||||||
Total liabilities
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310,858
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350,249
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||||||
Stockholders' equity
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133,823
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233,122
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||||||
Total liabilities and stockholders' equity
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$
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444,681
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$
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583,371
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(1) The supplementary information included in this press release for 2016 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
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(2) The December 31, 2015 Balance Sheet has been revised to present deferred tax assets and deferred tax liabilities as noncurrent on the consolidated balance sheet and a reclass of deferred financing costs from other assets to long-term debt. These reclasses were not material to the condensed consolidated balance sheet.
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Bel Fuse Inc.
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||||||||
Supplementary Information(1)
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||||||||
Reconciliation of U.S. GAAP Net (Loss) Earnings Available to Common Stockholders to Non U.S. GAAP EBITDA(2)
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||||||||
(in thousands, unaudited)
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||||||||
Three Months Ended
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||||||||
March 31,
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||||||||
2016
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2015
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U.S. GAAP Net (loss) earnings available to common stockholders
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$
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(100,696
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)
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$
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5,320
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Interest expense
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2,201
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2,179
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(Benefit) provision for income taxes
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(4,872
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)
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1,950
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Depreciation and amortization
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5,501
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5,637
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Non U.S. GAAP EBITDA
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$
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(97,866
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)
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$
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15,086
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% of net sales
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-80.8
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%
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10.6
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%
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(1) The supplementary information included in this press release for 2016 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
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(2) In this press release and supplemental information, we have included non-U.S. GAAP financial measures, including Non-U.S. GAAP EPS and EBITDA. We present results adjusted to exclude the effects of certain specified items and their related tax impact that would otherwise be included under U.S GAAP, to aid in comparisons with other periods. We may use Non-U.S GAAP financial measures to determine performance-based compensation and management believes that this information may be useful to investors.
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The following tables reconcile our US GAAP net earnings per common Class A and Class B basic and diluted shares ("US GAAP EPS") to Non US GAAP net earnings per common Class A and Class B basic and diluted shares ("Non US GAAP EPS").
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||||||||||||||||
Three Months
Ended March 31,
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Three Months
Ended March 31,
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|||||||||||||||
2016
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2015
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|||||||||||||||
(Revised)
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||||||||||||||||
Class A
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Class B
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Class A
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Class B
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|||||||||||||
US GAAP EPS
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$
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(8.15
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)
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$
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(8.55
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)
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$
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0.43
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$
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0.45
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||||||
Reconciling items (a)
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8.63
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9.06
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0.06
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0.06
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Non US GAAP EPS
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$
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0.48
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$
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0.51
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$
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0.49
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$
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0.51
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(a) The following tables detail the impact that certain unusual or non-recurring items had on the Company's net earnings per common Class A and Class B basic and diluted shares and the line items these items were included in on the condensed consolidated statements of operations.
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||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2016
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Three Months Ended March 31, 2015
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|||||||||||||||||||||||||||||||||||||||
Reconciling Items
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Gross
Impact
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Tax
Effect
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Net
Earnings Impact
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Class A
EPS
Impact
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Class B
EPS
Impact
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Gross Impact
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Tax
Effect
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Net Earnings Impact
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Class A
EPS
Impact
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Class B
EPS
Impact
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||||||||||||||||||||||||||||||
Impairment of goodwill and other intangible assets
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$
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108,583
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$
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2,052
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$
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106,531
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$
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8.62
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$
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9.05
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$
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-
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$
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-
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$
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-
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$
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-
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$
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-
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||||||||||||||||||||
Restructuring charges
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228
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84
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144
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0.01
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0.01
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158
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47
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111
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0.01
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0.01
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Acquisition related costs included in selling general and administrative expenses
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-
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-
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-
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-
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-
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385
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145
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240
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0.02
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0.02
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||||||||||||||||||||||||||||||
Information technology migration and rebranding costs included in selling, general and administrative expenses
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-
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-
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-
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-
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-
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603
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219
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384
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0.03
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0.03
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||||||||||||||||||||||||||||||
Total reconciling items
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$
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108,811
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$
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2,136
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$
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106,675
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$
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8.63
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$
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9.06
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$
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1,146
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$
|
411
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$
|
735
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$
|
0.06
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$
|
0.06
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