NEW JERSEY
|
|
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: November 3, 2017
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BEL FUSE INC.
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|
(Registrant)
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|
|
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By:
|
/s/Daniel Bernstein
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|
Daniel Bernstein
|
|
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 November 3, 2017, related to the financial results of the Company for the three and nine months ended September 30, 2017. |
FOR IMMEDIATE RELEASE
|
Bel Fuse Inc.
206 Van Vorst Street
Jersey City, NJ 07302
www.belfuse.com
tel 201.432.0463
fax 201.432.9542
|
|||
Investor Contact:
Darrow Associates
tel 516.419.9915
pseltzberg@darrowir.com
|
Company Contact:
Daniel Bernstein
President
ir@belf.com
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|||
·
|
Net sales of $126.4 million, down 1.9% year over year
|
·
|
Gross profit margin of 21.9%, up 130 basis points year over year
|
·
|
GAAP earnings per share of $0.40 (Class A) and $0.42 (Class B), versus $0.78 (Class A) and $0.82 (Class B) in the third quarter 2016
|
·
|
GAAP net earnings of $5.0 million (4.0% of sales) compared to $9.7 million (7.5% of sales) in the third quarter of 2016
|
·
|
Adjusted Non-GAAP EBITDA of $12.2 million (9.6% of sales) compared to $13.2 million (10.2% of sales) in the third quarter 2016
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·
|
Debt repayments of $9.8 million during the quarter
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Bel Fuse Inc.
|
||||||||||||||||
Supplementary Information(1)
|
||||||||||||||||
Condensed Consolidated Statements of Operations
|
||||||||||||||||
(in thousands, except per share amounts)
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Net sales
|
$
|
126,386
|
$
|
128,809
|
$
|
371,671
|
$
|
381,614
|
||||||||
Cost of sales
|
98,769
|
102,234
|
291,729
|
306,273
|
||||||||||||
Gross profit
|
27,617
|
26,575
|
79,942
|
75,341
|
||||||||||||
As a % of net sales
|
21.9
|
%
|
20.6
|
%
|
21.5
|
%
|
19.7
|
%
|
||||||||
Selling, general and administrative expenses
|
20,903
|
19,385
|
63,858
|
55,006
|
||||||||||||
As a % of net sales
|
16.5
|
%
|
15.0
|
%
|
17.2
|
%
|
14.4
|
%
|
||||||||
Impairment of goodwill and other intangible assets(2)
|
-
|
-
|
-
|
105,972
|
||||||||||||
Loss (gain) on disposal of property, plant and equipment
|
182
|
(2,099
|
)
|
283
|
(2,083
|
)
|
||||||||||
Restructuring charges
|
-
|
(20
|
)
|
171
|
581
|
|||||||||||
Income (loss) from operations
|
6,532
|
9,309
|
15,630
|
(84,135
|
)
|
|||||||||||
As a % of net sales
|
5.2
|
%
|
7.2
|
%
|
4.2
|
%
|
-22.0
|
%
|
||||||||
Interest expense
|
(1,466
|
)
|
(1,538
|
)
|
(4,476
|
)
|
(5,243
|
)
|
||||||||
Interest income and other, net
|
18
|
243
|
65
|
466
|
||||||||||||
Earnings (loss) before benefit for income taxes
|
5,084
|
8,014
|
11,219
|
(88,912
|
)
|
|||||||||||
Provision for (benefit from) income taxes
|
60
|
(1,696
|
)
|
2,329
|
(20,701
|
)
|
||||||||||
Effective tax rate
|
1.2
|
%
|
-21.2
|
%
|
20.8
|
%
|
23.3
|
%
|
||||||||
Net earnings (loss) available to common stockholders
|
$
|
5,024
|
$
|
9,710
|
$
|
8,890
|
$
|
(68,211
|
)
|
|||||||
As a % of net sales
|
4.0
|
%
|
7.5
|
%
|
2.4
|
%
|
-17.9
|
%
|
||||||||
Weighted average number of shares outstanding:
|
||||||||||||||||
Class A common shares - basic and diluted
|
2,175
|
2,175
|
2,175
|
2,175
|
||||||||||||
Class B common shares - basic and diluted
|
9,864
|
9,760
|
9,856
|
9,730
|
||||||||||||
Net earnings (loss) per common share:
|
||||||||||||||||
Class A common shares - basic and diluted
|
$
|
0.40
|
$
|
0.78
|
$
|
0.69
|
$
|
(5.52
|
)
|
|||||||
Class B common shares - basic and diluted
|
$
|
0.42
|
$
|
0.82
|
$
|
0.75
|
$
|
(5.78
|
)
|
|||||||
(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.
|
||||||||||||||||
(2) During the nine months ended September 30, 2016, we recorded a non-cash impairment charge of $106.0 million related to our goodwill and other intangible assets. This impairment did not impact our cash expenditures, liquidity, financial performance, compliance with our debt covenants or affect our ongoing business.
|
Bel Fuse Inc.
|
||||||||
Supplementary Information(1)
|
||||||||
Condensed Consolidated Balance Sheets
|
||||||||
(in thousands, unaudited)
|
||||||||
September 30,
|
December 31,
|
|||||||
2017
|
2016
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
62,106
|
$
|
73,411
|
||||
Accounts receivable, net
|
83,643
|
74,416
|
||||||
Inventories
|
104,522
|
98,871
|
||||||
Other current assets
|
9,231
|
8,744
|
||||||
Total current assets
|
259,502
|
255,442
|
||||||
Property, plant and equipment, net
|
43,664
|
48,755
|
||||||
Goodwill and other intangible assets, net
|
90,914
|
92,779
|
||||||
Other assets
|
34,408
|
29,764
|
||||||
Total assets
|
$
|
428,488
|
$
|
426,740
|
||||
Liabilities and Stockholders' Equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
45,493
|
$
|
47,235
|
||||
Current portion of long-term debt
|
15,551
|
11,395
|
||||||
Other current liabilities
|
36,567
|
33,697
|
||||||
Total current liabilities
|
97,611
|
92,327
|
||||||
Long-term debt
|
105,479
|
129,850
|
||||||
Other liabilities
|
47,303
|
46,129
|
||||||
Total liabilities
|
250,393
|
268,306
|
||||||
Stockholders' equity
|
178,095
|
158,434
|
||||||
Total liabilities and stockholders' equity
|
$
|
428,488
|
$
|
426,740
|
||||
(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.
|
Bel Fuse Inc.
|
||||||||||||||||
Supplementary Information(1)
|
||||||||||||||||
Reconciliation of U.S. GAAP Net Earnings Available to Common Stockholders to Non U.S. GAAP EBITDA(2)
|
||||||||||||||||
(in thousands, unaudited)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
U.S. GAAP Net earnings (loss) available to common stockholders
|
$
|
5,024
|
$
|
9,710
|
$
|
8,890
|
$
|
(68,211
|
)
|
|||||||
Interest expense
|
1,466
|
1,538
|
4,476
|
5,243
|
||||||||||||
Provision for (benefit from) income taxes
|
60
|
(1,696
|
)
|
2,329
|
(20,701
|
)
|
||||||||||
Depreciation and amortization
|
5,236
|
5,402
|
15,712
|
16,370
|
||||||||||||
Non U.S. GAAP EBITDA
|
$
|
11,786
|
$
|
14,954
|
$
|
31,407
|
$
|
(67,299
|
)
|
|||||||
% of net sales
|
9.3
|
%
|
11.6
|
%
|
8.5
|
%
|
-17.6
|
%
|
||||||||
Unusual or special items:
|
||||||||||||||||
ERP system implementation consulting costs
|
395
|
371
|
1,483
|
371
|
||||||||||||
Professional fees related to legal entity restructuring
|
-
|
-
|
200
|
-
|
||||||||||||
Acquisition related costs
|
-
|
-
|
-
|
162
|
||||||||||||
Restructuring charges
|
-
|
(20
|
)
|
171
|
581
|
|||||||||||
Power Solutions acquisition-related settlements
|
-
|
-
|
-
|
(5,155
|
)
|
|||||||||||
Gain on sale of Hong Kong property
|
-
|
(2,107
|
)
|
-
|
(2,107
|
)
|
||||||||||
Impairment of goodwill and other intangible assets
|
-
|
-
|
-
|
105,972
|
||||||||||||
Non U.S. GAAP Adjusted EBITDA
|
$
|
12,181
|
$
|
13,198
|
$
|
33,261
|
$
|
32,525
|
||||||||
% of net sales
|
9.6
|
%
|
10.2
|
%
|
8.9
|
%
|
8.5
|
%
|
||||||||
(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.
|
||||||||||||||||
(2) In this press release and supplemental information, we have included non-U.S. GAAP financial measures, including Non-U.S. GAAP EPS, EBITDA and Adjusted 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.
|
The following tables detail the impact of certain unusual or special items had on the Company's net earnings per common Class A and Class B basic and diluted shares ("EPS") and the line items these items were included on the condensed consolidated statements of operations.
|
||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2017
|
Three Months Ended September 30, 2016
|
|||||||||||||||||||||||||||||||||||||||
Reconciling Items
|
Income from operations
|
Provision for income taxes
|
Net
earnings
|
Class A
EPS
|
Class B
EPS
|
Income from operations
|
Benefit from income taxes
|
Net
earnings
|
Class A
EPS
|
Class B
EPS
|
||||||||||||||||||||||||||||||
GAAP measures
|
$
|
6,532
|
$
|
60
|
$
|
5,024
|
$
|
0.40
|
$
|
0.42
|
$
|
9,309
|
$
|
(1,696
|
)
|
$
|
9,710
|
$
|
0.78
|
$
|
0.82
|
|||||||||||||||||||
Items included in SG&A expenses:
|
||||||||||||||||||||||||||||||||||||||||
ERP system implementation consulting costs
|
395
|
130
|
265
|
0.02
|
0.02
|
371
|
96
|
275
|
0.02
|
0.02
|
||||||||||||||||||||||||||||||
Professional fees related to legal entity restructuring
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
Acquisition related costs
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||
Power Solutions acquisition related items and settlements
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||
Gain on sale of Hong Kong property
|
-
|
-
|
-
|
-
|
-
|
(2,107
|
)
|
-
|
(2,107
|
)
|
(0.17
|
)
|
(0.18
|
)
|
||||||||||||||||||||||||||
Restructuring charges
|
-
|
-
|
-
|
-
|
-
|
(20
|
)
|
(8
|
)
|
(12
|
)
|
-
|
-
|
|||||||||||||||||||||||||||
Impairment of goodwill and other intangible assets
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||
Items included in income taxes:
|
||||||||||||||||||||||||||||||||||||||||
Incremental tax related to legal entity restructuring
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||
Power Solutions acquisition related settlements
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||
Non-GAAP measures
|
$
|
6,927
|
$
|
190
|
$
|
5,289
|
$
|
0.42
|
$
|
0.44
|
$
|
7,553
|
$
|
(1,608
|
)
|
$
|
7,866
|
$
|
0.63
|
$
|
0.66
|
|||||||||||||||||||
Nine Months Ended September 30, 2017
|
Nine Months Ended September 30, 2016
|
|||||||||||||||||||||||||||||||||||||||
Reconciling Items
|
Income from operations
|
Provision for income taxes
|
Net
earnings
|
Class A
EPS
|
Class B
EPS
|
Income from operations
|
Benefit from income taxes
|
Net
loss
|
Class A
EPS
|
Class B
EPS
|
||||||||||||||||||||||||||||||
GAAP measures
|
$
|
15,630
|
$
|
2,329
|
$
|
8,890
|
$
|
0.69
|
$
|
0.75
|
$
|
(84,135
|
)
|
$
|
(20,701
|
)
|
$
|
(68,211
|
)
|
$
|
(5.52
|
)
|
$
|
(5.78
|
)
|
|||||||||||||||
Items included in SG&A expenses:
|
||||||||||||||||||||||||||||||||||||||||
ERP system assessment costs
|
1,483
|
462
|
1,021
|
0.08
|
0.09
|
371
|
96
|
275
|
0.02
|
0.02
|
||||||||||||||||||||||||||||||
Professional fees related to legal entity restructuring
|
200
|
76
|
124
|
0.01
|
0.01
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
Acquisition related costs
|
-
|
-
|
-
|
-
|
-
|
162
|
61
|
101
|
0.01
|
0.01
|
||||||||||||||||||||||||||||||
Power Solutions acquisition related items and settlements
|
-
|
-
|
-
|
-
|
-
|
(5,155
|
)
|
(780
|
)
|
(4,375
|
)
|
(0.35
|
)
|
(0.37
|
)
|
|||||||||||||||||||||||||
Gain on sale of Hong Kong property
|
-
|
-
|
-
|
-
|
-
|
(2,107
|
)
|
-
|
(2,107
|
)
|
(0.17
|
)
|
(0.18
|
)
|
||||||||||||||||||||||||||
Restructuring charges
|
171
|
44
|
127
|
0.01
|
0.01
|
581
|
212
|
369
|
0.03
|
0.03
|
||||||||||||||||||||||||||||||
Impairment of goodwill and other intangible assets
|
-
|
-
|
-
|
-
|
-
|
105,972
|
4,385
|
101,587
|
8.20
|
8.61
|
||||||||||||||||||||||||||||||
Items included in income taxes:
|
||||||||||||||||||||||||||||||||||||||||
Incremental tax related to legal entity restructuring
|
-
|
(2,308
|
)
|
2,308
|
0.18
|
0.19
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||
Power Solutions acquisition related settlements
|
-
|
-
|
-
|
-
|
-
|
-
|
13,809
|
(13,809
|
)
|
(1.11
|
)
|
(1.17
|
)
|
|||||||||||||||||||||||||||
Non-GAAP measures
|
$
|
17,484
|
$
|
603
|
$
|
12,470
|
$
|
0.97
|
$
|
1.05
|
$
|
15,689
|
$
|
(2,918
|
)
|
$
|
13,830
|
$
|
1.11
|
$
|
1.17
|
|||||||||||||||||||