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: February 21, 2019
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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 February 21, 2019, related to the financial results of the Company for the three months and year ended December 31, 2018. |
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 of $142.7 million, an improvement of 19.0% year over year
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·
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GAAP net earnings of $4.0 million compared to a net loss of $20.8 million in fourth quarter 2017. GAAP EPS of $0.31 per Class A share (versus loss per share of $1.66 in Q4-17) and $0.33 per Class B share (versus loss per share of $1.74 in Q4-17)
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·
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Non-GAAP net earnings of $4.8 million compared to a net loss of $1.2 million in fourth quarter 2017. Non-GAAP EPS of $0.37 per Class A share (versus loss per share of $0.09 in Q4-17) and $0.39 per Class B share (versus loss per share of $0.10 in Q4-17)
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·
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Adjusted EBITDA of $13.2 million (9.2% of sales) compared to $7.1 million (5.9% of sales) in fourth quarter 2017
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·
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Net sales of $548.2 million, up 11.5% year over year
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·
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GAAP net earnings of $20.7 million compared to a net loss of $11.9 million in 2017; the 2017 loss was primarily due to impact of tax reform
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·
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Adjusted EBITDA of $49.6 million (9.0% of sales) versus $40.4 million (8.2% of sales) in 2017
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·
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Bookings (orders received) during 2018 of $578 million, up 12% from 2017
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·
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$171.2 million in backlog at December 31, 2018, representing an increase of $24.7 million, or 17%, from December 31, 2017
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·
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By geographic segment: Asia was up by 23.2%, Europe sales were higher by 21.7% and North America was up by 15.4%.
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·
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By product group: Magnetic Solutions sales were up by 26.2%, Power Solutions and Protection sales grew by 21.1% and Connectivity Solutions sales were up by 10.4%.
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·
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By geographic segment, Europe was up by 14.3%, Asia was higher by 11.6% and North America was up by 10.5%.
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·
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By product group, Magnetic Solutions sales were up by 15.2%, Connectivity Solutions sales were 9.6% higher and Power Solutions and Protection sales were up by 9.9%.
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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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Year Ended
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|||||||||||||||
December 31,
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December 31,
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|||||||||||||||
2018
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2017
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2018
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2017
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|||||||||||||
Net sales
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$
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142,734
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$
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119,940
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$
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548,184
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$
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491,611
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||||||||
Cost of sales
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112,319
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97,780
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438,414
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389,262
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||||||||||||
Gross profit
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30,415
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22,160
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109,770
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102,349
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||||||||||||
As a % of net sales
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21.3
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%
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18.5
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%
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20.0
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%
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20.8
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%
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||||||||
Selling, general and administrative expenses
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22,247
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21,052
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79,937
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84,655
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||||||||||||
As a % of net sales
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15.6
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%
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17.6
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%
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14.6
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%
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17.2
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%
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||||||||
Restructuring charges
|
160
|
137
|
222
|
308
|
||||||||||||
Income from operations
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8,008
|
971
|
29,611
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17,386
|
||||||||||||
As a % of net sales
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5.6
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%
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0.8
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%
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5.4
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%
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3.5
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%
|
||||||||
Interest expense
|
(1,399
|
)
|
(2,326
|
)
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(5,317
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)
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(6,802
|
)
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||||||||
Other income/expense, net
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(200
|
)
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(221
|
)
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(678
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)
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(941
|
)
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||||||||
Earnings before benefit for income taxes
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6,409
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(1,576
|
)
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23,616
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9,643
|
|||||||||||
Provision for income taxes(3)
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2,384
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19,211
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2,907
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21,540
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||||||||||||
Effective tax rate
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37.2
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%
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-1219.0
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%
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12.3
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%
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223.4
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%
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||||||||
Net earnings (loss)
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$
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4,025
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$
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(20,787
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)
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$
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20,709
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$
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(11,897
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)
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||||||
As a % of net sales
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2.8
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%
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-17.3
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%
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3.8
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%
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-2.4
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%
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||||||||
Weighted average number of shares outstanding:
|
||||||||||||||||
Class A common shares - basic and diluted
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2,175
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2,175
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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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10,083
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9,861
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9,939
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9,857
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||||||||||||
Net earnings (loss) per common share:
|
||||||||||||||||
Class A common shares - basic and diluted
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$
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0.31
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$
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(1.66
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)
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$
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1.62
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$
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(0.97
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)
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||||||
Class B common shares - basic and diluted
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$
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0.33
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$
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(1.74
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)
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$
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1.73
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$
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(0.99
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)
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||||||
(1) The supplementary information included in this press release for 2018 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K with the Securities and Exchange Commission.
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||||||||||||||||
(2) The statements of operations for the three months and year ended December 31, 2017 reflect immaterial reclassifications related to the retrospective adoption of new accounting guidance related to presentation of pension costs within the statement of operations. There was no impact on net earnings in connection with the adoption of this guidance.
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||||||||||||||||
(3) During the fourth quarter of 2017, we recorded $18.0 million of incremental tax related to the enactment of the Tax Cuts and Jobs Act of 2017. This amount consisted of a transition tax on our foreign earnings and revaluation of our deferred tax assets.
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Bel Fuse Inc.
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||||||||
Supplementary Information(1)
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||||||||
Condensed Consolidated Balance Sheets
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||||||||
(in thousands, unaudited)
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||||||||
December 31,
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December 31,
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|||||||
2018 | 2017 | |||||||
Assets
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||||||||
Current assets:
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||||||||
Cash and cash equivalents
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$
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53,911
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$
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69,354
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||||
Accounts receivable, net
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91,939
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78,808
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||||||
Inventories
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120,068
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107,719
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||||||
Other current assets
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24,591
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10,218
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||||||
Total current assets
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290,509
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266,099
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||||||
Property, plant and equipment, net
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43,932
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43,495
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||||||
Goodwill and other intangible assets, net
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82,506
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89,543
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||||||
Other assets
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26,577
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32,128
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||||||
Total assets
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$
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443,524
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$
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431,265
|
||||
Liabilities and Stockholders' Equity
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||||||||
Current liabilities:
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||||||||
Accounts payable
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$
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56,171
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$
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47,947
|
||||
Current portion of long-term debt
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2,508
|
2,641
|
||||||
Other current liabilities
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47,351
|
36,712
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||||||
Total current liabilities
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106,030
|
87,300
|
||||||
Long-term debt
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111,705
|
120,053
|
||||||
Other liabilities
|
49,319
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65,952
|
||||||
Total liabilities
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267,054
|
273,305
|
||||||
Stockholders' equity
|
176,470
|
157,960
|
||||||
Total liabilities and stockholders' equity
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$
|
443,524
|
$
|
431,265
|
||||
(1) The supplementary information included in this press release for 2018 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K with the Securities and Exchange Commission.
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Bel Fuse Inc.
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||||||||||||||||
Supplementary Information(1)
|
||||||||||||||||
Reconciliation of GAAP Net Earnings to EBITDA and Adjusted EBITDA(2)
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||||||||||||||||
(in thousands, unaudited)
|
||||||||||||||||
Three Months Ended
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Year Ended
|
|||||||||||||||
December 31,
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December 31,
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|||||||||||||||
2018
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2017
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2018
|
2017
|
|||||||||||||
GAAP Net earnings (loss)
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$
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4,025
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$
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(20,787
|
)
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$
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20,709
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$
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(11,897
|
)
|
||||||
Interest expense
|
1,399
|
2,326
|
5,317
|
6,802
|
||||||||||||
Provision for income taxes
|
2,384
|
19,211
|
2,907
|
21,540
|
||||||||||||
Depreciation and amortization
|
4,469
|
5,006
|
18,207
|
20,718
|
||||||||||||
EBITDA
|
$
|
12,277
|
$
|
5,756
|
$
|
47,140
|
$
|
37,163
|
||||||||
% of net sales
|
8.6
|
%
|
4.8
|
%
|
8.6
|
%
|
7.6
|
%
|
||||||||
Unusual or special items:
|
||||||||||||||||
ERP system implementation consulting costs
|
737
|
1,073
|
2,226
|
2,556
|
||||||||||||
Professional fees related to legal entity restructuring
|
-
|
150
|
-
|
350
|
||||||||||||
Restructuring charges
|
160
|
137
|
222
|
308
|
||||||||||||
Adjusted EBITDA
|
$
|
13,174
|
$
|
7,116
|
$
|
49,588
|
$
|
40,377
|
||||||||
% of net sales
|
9.2
|
%
|
5.9
|
%
|
9.0
|
%
|
8.2
|
%
|
||||||||
(1) The supplementary information included in this press release for 2018 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K with the Securities and Exchange Commission.
|
||||||||||||||||
(2) In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP net earnings, Non-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 GAAP, to aid in comparisons with other periods. We may use Non-GAAP financial measures to determine performance-based compensation and management believes that this information may be useful to investors.
|
Bel Fuse Inc.
|
||||||||||||||||||||||||||||||||||||||||
Supplementary Information(1)
|
||||||||||||||||||||||||||||||||||||||||
Reconciliation of GAAP Measures to Non-GAAP Measures(2)
|
||||||||||||||||||||||||||||||||||||||||
(in thousands, unaudited)
|
||||||||||||||||||||||||||||||||||||||||
The following tables detail the impact of certain unusual or special items had on the Company's net earnings (loss) 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 December 31, 2018
|
Three Months Ended December 31, 2017
|
|||||||||||||||||||||||||||||||||||||||
Reconciling Items
|
Earnings before taxes
|
Provision for income taxes
|
Net
earnings
|
Class A
EPS(3)
|
Class B
EPS(3)
|
Earnings before taxes
|
Provision for income taxes
|
Net (loss) earnings
|
Class A
EPS(3)
|
Class B
EPS(3)
|
||||||||||||||||||||||||||||||
GAAP measures
|
$
|
6,409
|
$
|
2,384
|
$
|
4,025
|
$
|
0.31
|
$
|
0.33
|
$
|
(1,576
|
)
|
$
|
19,211
|
$
|
(20,787
|
)
|
$
|
(1.66
|
)
|
$
|
(1.74
|
)
|
||||||||||||||||
Items included in SG&A expenses:
|
||||||||||||||||||||||||||||||||||||||||
ERP system implementation consulting costs
|
737
|
139
|
598
|
0.05
|
0.05
|
1,073
|
333
|
740
|
0.06
|
0.06
|
||||||||||||||||||||||||||||||
Professional fees related to legal entity restructuring
|
-
|
-
|
-
|
-
|
-
|
150
|
57
|
93
|
0.01
|
0.01
|
||||||||||||||||||||||||||||||
Restructuring charges
|
160
|
33
|
127
|
0.01
|
0.01
|
137
|
27
|
110
|
0.01
|
0.01
|
||||||||||||||||||||||||||||||
Writeoff of deferred financing costs related to debt extinguishment
|
-
|
-
|
-
|
-
|
-
|
1,031
|
392
|
639
|
0.05
|
0.05
|
||||||||||||||||||||||||||||||
Items included in income taxes:
|
||||||||||||||||||||||||||||||||||||||||
Impact from tax reform bill (transition tax and revaluation of deferred tax assets)
|
-
|
-
|
-
|
-
|
-
|
-
|
(18,043
|
)
|
18,043
|
1.44
|
1.51
|
|||||||||||||||||||||||||||||
Non-GAAP measures
|
$
|
7,306
|
$
|
2,556
|
$
|
4,750
|
$
|
0.37
|
$
|
0.39
|
$
|
815
|
$
|
1,977
|
$
|
(1,162
|
)
|
$
|
(0.09
|
)
|
$
|
(0.10
|
)
|
|||||||||||||||||
Year Ended December 31, 2018
|
Year Ended December 31, 2017
|
|||||||||||||||||||||||||||||||||||||||
Reconciling Items
|
Earnings before taxes
|
Provision for income taxes
|
Net
earnings
|
Class A
EPS(3)
|
Class B
EPS(3)
|
Earnings before taxes
|
Provision for income taxes
|
Net (loss) earnings
|
Class A
EPS(3)
|
Class B
EPS(3)
|
||||||||||||||||||||||||||||||
GAAP measures
|
$
|
23,616
|
$
|
2,907
|
$
|
20,709
|
$
|
1.62
|
$
|
1.73
|
$
|
9,643
|
$
|
21,540
|
$
|
(11,897
|
)
|
$
|
(0.97
|
)
|
$
|
(0.99
|
)
|
|||||||||||||||||
Items included in SG&A expenses:
|
||||||||||||||||||||||||||||||||||||||||
ERP system assessment costs
|
2,226
|
419
|
1,807
|
0.14
|
0.15
|
2,556
|
795
|
1,761
|
0.14
|
0.15
|
||||||||||||||||||||||||||||||
Professional fees related to legal entity restructuring
|
-
|
-
|
-
|
-
|
-
|
350
|
133
|
217
|
0.02
|
0.02
|
||||||||||||||||||||||||||||||
Restructuring charges
|
222
|
45
|
177
|
0.01
|
0.01
|
308
|
71
|
237
|
0.02
|
0.02
|
||||||||||||||||||||||||||||||
Writeoff of deferred financing costs related to debt extinguishment
|
-
|
-
|
-
|
-
|
-
|
1,031
|
392
|
639
|
0.05
|
0.05
|
||||||||||||||||||||||||||||||
Items included in income taxes:
|
||||||||||||||||||||||||||||||||||||||||
Transition tax, measurement period adjustment
|
-
|
2,628
|
(2,628
|
)
|
(0.21
|
)
|
(0.22
|
)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Incremental tax related to legal entity restructuring
|
-
|
-
|
-
|
-
|
-
|
-
|
(2,308
|
)
|
2,308
|
0.18
|
0.19
|
|||||||||||||||||||||||||||||
Impact from tax reform bill (transition tax and revaluation of deferred tax assets)
|
-
|
-
|
-
|
-
|
-
|
-
|
(18,043
|
)
|
18,043
|
1.44
|
1.51
|
|||||||||||||||||||||||||||||
Non-GAAP measures
|
$
|
26,064
|
$
|
5,999
|
$
|
20,065
|
$
|
1.57
|
$
|
1.68
|
$
|
13,888
|
$
|
2,580
|
$
|
11,308
|
$
|
0.88
|
$
|
0.95
|
||||||||||||||||||||
(1) The supplementary information included in this press release for 2018 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K with the Securities and Exchange Commission.
|
||||||||||||||||||||||||||||||||||||||||
(2) In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP net earnings (loss), Non-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 GAAP, to aid in comparisons with other periods. We may use Non-GAAP financial measures to determine performance-based compensation and management believes that this information may be useful to investors.
|
||||||||||||||||||||||||||||||||||||||||
(3) Individual amounts of earnings per share may not agree to the total due to rounding.
|