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 3, 2017
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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 | Press release issued by the Company, dated May 3, 2017, related to the financial results of the Company for the three months ended March 31, 2017. |
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 were $113.7 million for the first quarter of 2017, representing a 6.2% decline from $121.2 million in the first quarter of 2016.
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·
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Gross profit margin improved to 20.5% in the first quarter of 2017, up from 19.0% in the first quarter of 2016 due to cost savings realized on prior year restructuring efforts and a more favorable product mix in the first quarter of 2017.
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·
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Net earnings increased to $0.7 million in the first quarter of 2017. This compares to a net loss of $100.7 million in the same period of 2016, which resulted primarily from a $108.6 million impairment charge on goodwill and other intangible assets as further described below.
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·
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Class A earnings per share was $0.05 on a GAAP basis (compared to a net loss per share of $8.15 in the first quarter of 2016) and earnings of $0.07 per share on a Non-GAAP basis (compared to $0.04 in the first quarter of 2016).
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·
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Class B earnings per share was $0.06 on a GAAP basis (compared to a net loss per share of $8.55 in the first quarter of 2016) and earnings of $0.09 per share on a Non-GAAP basis (compared to $0.05 in the first quarter of 2016).
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Bel Fuse Inc.
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||||||||
Supplementary Information(1)
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||||||||
Condensed Consolidated Statements of Operations
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||||||||
(in thousands, except per share amounts)
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||||||||
(unaudited)
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||||||||
Three Months Ended
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||||||||
March 31,
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||||||||
2017
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2016
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|||||||
Net sales
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$
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113,668
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$
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121,182
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||||
Cost of sales
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90,390
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98,108
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||||||
Gross profit
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23,278
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23,074
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||||||
As a % of net sales
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20.5
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%
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19.0
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%
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||||
Selling, general and administrative expenses
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21,152
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17,670
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||||||
As a % of net sales
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18.6
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%
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14.6
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%
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||||
Impairment of goodwill and other intangible assets(2)
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-
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108,583
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||||||
Restructuring charges
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33
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228
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||||||
Income (loss) from operations
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2,093
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(103,407
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)
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|||||
As a % of net sales
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1.8
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%
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-85.3
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%
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||||
Interest expense
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(1,424
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)
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(2,201
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)
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Interest income and other, net
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54
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40
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||||||
Earnings (loss) before benefit for income taxes
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723
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(105,568
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)
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|||||
Benefit from income taxes
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(23
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)
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(4,872
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)
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Effective tax rate
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-3.2
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%
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4.6
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%
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Net earnings (loss) available to common stockholders
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$
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746
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$
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(100,696
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)
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As a % of net sales
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0.7
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%
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-83.1
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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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9,845
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9,701
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Net earnings (loss) per common share:
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||||||||
Class A common shares - basic and diluted
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$
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0.05
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$
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(8.15
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)
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Class B common shares - basic and diluted
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$
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0.06
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$
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(8.55
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)
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(1) The supplementary information included in this press release for 2017 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. Some prior period amounts have been reclassified to conform to the current year presentation. These reclassifications, individually and in the aggregate, had no impact on our consolidated statements of operations.
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||||||||
(2) During the three months ended March 31, 2016, we recorded a non-cash impairment charge of $108.6 million related to our goodwill and other intangible assets. This impairment will not result in any future cash expenditures, impact liquidity, affect the ongoing business or financial performance of our reporting units, or impact compliance with our debt covenants.
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Bel Fuse Inc.
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||||||||
Supplementary Information(1)
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||||||||
Condensed Consolidated Balance Sheets
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||||||||
(in thousands, unaudited)
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||||||||
March 31,
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December 31,
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|||||||
2017
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2016
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|||||||
Assets
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||||||||
Current assets:
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||||||||
Cash and cash equivalents
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$
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72,281
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$
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73,411
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Accounts receivable, net
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72,728
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74,416
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||||||
Inventories
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101,650
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98,871
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||||||
Other current assets
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10,540
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8,744
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||||||
Total current assets
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257,199
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255,442
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Property, plant and equipment, net
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46,647
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48,755
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||||||
Goodwill and other intangible assets, net
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91,730
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92,779
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||||||
Other assets
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30,913
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29,764
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||||||
Total assets
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$
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426,489
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$
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426,740
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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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46,598
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$
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47,235
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Current portion of long-term debt
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13,504
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11,395
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||||||
Other current liabilities
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29,295
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33,697
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||||||
Total current liabilities
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89,397
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92,327
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||||||
Long-term debt
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129,473
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129,850
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||||||
Other liabilities
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46,791
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46,129
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||||||
Total liabilities
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265,661
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268,306
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||||||
Stockholders' equity
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160,828
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158,434
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||||||
Total liabilities and stockholders' equity
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$
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426,489
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$
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426,740
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||||
(1) The supplementary information included in this press release for 2017 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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Bel Fuse Inc.
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||||||||
Supplementary Information(1)
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||||||||
Reconciliation of U.S. GAAP Net 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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||||||||
2017
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2016
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|||||||
U.S. GAAP Net earnings (loss) available to common stockholders
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$
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746
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$
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(100,696
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)
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Interest expense
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1,424
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2,201
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||||||
Benefit for income taxes
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(23
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)
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(4,872
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)
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Depreciation and amortization
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5,227
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5,501
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Non U.S. GAAP EBITDA
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$
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7,374
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$
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(97,866
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)
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% of net sales
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6.5
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%
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-80.8
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%
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Unusual or special items:
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||||||||
ERP system implementation consulting costs
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449
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-
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Restructuring charges
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33
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228
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Power Solutions acquisition-related settlements
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-
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(2,797
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)
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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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Non U.S. GAAP Adjusted EBITDA
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$
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7,856
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$
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8,148
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% of net sales
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6.9
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%
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6.7
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%
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||||
(1) The supplementary information included in this press release for 2017 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 ("GAAP EPS") to Non US GAAP net earnings per common Class A and Class B basic and diluted shares ("Non GAAP EPS"). Non GAAP EPS for the 2016 period presented below has been revised to reflect the impact of the Power Solutions acquisition related items and settlements included in selling, general and administrative expenses and income taxes. Non GAAP EPS was previously presented as $0.48 per Class A share and $0.51 per Class B share for the three months ended March 31, 2016. As this item was unique in nature and only impacted the first and second quarters of 2016, management believes this revision represents a more appropriate comparison of the net earnings of our operations.
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||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31,
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||||||||||||||||||||||||||||||||||||||||
2017
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2016
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|||||||||||||||||||||||||||||||||||||||
Class A
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Class B
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Class A
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Class B
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|||||||||||||||||||||||||||||||||||||
US GAAP EPS
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$
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0.05
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$
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0.06
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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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||||||||||||||||||||||||||||||
Reconciling items (a)
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0.02
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0.03
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8.19
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8.60
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||||||||||||||||||||||||||||||||||||
Non US GAAP EPS
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$
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0.07
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$
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0.09
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$
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0.04
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$
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0.05
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(a) The following tables detail the impact of 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 on the condensed consolidated statements of operations.
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||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2017
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Three Months Ended March 31, 2016
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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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||||||||||||||||||||||||||||||
Items included in selling, general and administrative expenses:
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||||||||||||||||||||||||||||||||||||||||
ERP system implementation consulting costs
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$
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449
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$
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140
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$
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309
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$
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0.02
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$
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0.03
|
$
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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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||||||||||||||||||||
Power Solutions acquisition related settlements
|
-
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-
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-
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-
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-
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(2,797
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)
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(66
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)
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(2,731
|
)
|
(0.22
|
)
|
(0.23
|
)
|
|||||||||||||||||||||||||
Restructuring charges
|
33
|
(2
|
)
|
35
|
-
|
-
|
228
|
84
|
144
|
0.01
|
0.01
|
|||||||||||||||||||||||||||||
Impairment of goodwill and other intangible assets
|
-
|
-
|
-
|
-
|
-
|
108,583
|
2,052
|
106,531
|
8.62
|
9.05
|
||||||||||||||||||||||||||||||
Power Solutions acquisition related settlements included in income taxes
|
-
|
-
|
-
|
-
|
-
|
-
|
2,695
|
(2,695
|
)
|
(0.22
|
)
|
(0.23
|
)
|
|||||||||||||||||||||||||||
Total reconciling items
|
$
|
482
|
$
|
138
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$
|
344
|
$
|
0.02
|
$
|
0.03
|
$
|
106,014
|
$
|
4,765
|
$
|
101,249
|
$
|
8.19
|
$
|
8.60
|
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