Solid execution drives Q1 sales above, and EPS
in-line with guidance
Littelfuse, Inc. (NASDAQ: LFUS), a diversified, industrial
technology manufacturing company empowering a sustainable,
connected, and safer world, today reported financial results for
the first quarter ended March 30, 2024:
- Net sales of $535 million were down 12% versus the prior year
period, and down 12% organically
- GAAP diluted EPS was $1.93 and adjusted diluted EPS was
$1.76
- Cash flow from operations was $57 million and free cash flow
was $42 million
“Our global team delivered solid first quarter results, with
sales above and earnings in-line with our expectations, as our
increasingly diversified end market exposures, robust technology
offering, and portfolio optimization initiatives helped to offset
ongoing inventory destocking,” said Dave Heinzmann, Littelfuse
President and Chief Executive Officer. “Further, our strong cash
generation reflects disciplined execution, while our
well-positioned balance sheet will continue to allow us to
capitalize on growth opportunities. Looking forward, we remain
confident in an expected return to growth during 2024, and believe
our experienced team, agile operations and unwavering long-term
strategic focus will drive top-tier value for our
stakeholders.”
Second Quarter of 2024*
Based on current market conditions, for the second quarter the
company expects,
- Net sales in the range of $525 - $555 million, adjusted diluted
EPS in the range of $1.65 - $1.85 and an adjusted effective tax
rate of approximately 23%
*Littelfuse provides guidance on a non-GAAP (adjusted) basis.
GAAP items excluded from guidance may include the after-tax impact
of items including acquisition and integration costs,
restructuring, impairment and other charges, certain purchase
accounting adjustments, non-operating foreign exchange adjustments
and significant and unusual items. These items are uncertain,
depend on various factors, and could be material to results
computed in accordance with GAAP. Littelfuse is not able to
forecast the excluded items in order to provide the most directly
comparable GAAP financial measure without unreasonable efforts.
Dividend and Share Repurchase
Authorization
- The company’s Board of Directors approved a new stock
repurchase authorization to replace its expiring previous 3-year
program. The company may repurchase up to $300 million in the
aggregate of shares of the company’s common stock for the period
May 1, 2024, to April 30, 2027.
- The company will pay a cash dividend on its common stock of
$0.65 per share on June 6, 2024, to shareholders of record as of
May 23, 2024
Conference Call and Webcast
Information
Littelfuse will host a conference call on Wednesday, May 1,
2024, at 9:00 a.m. Central Time to discuss the results. The call
will be broadcast and available for replay at Littelfuse.com. A
slide presentation is available in the Investor Relations section
of the company’s website at Littelfuse.com.
About Littelfuse
Littelfuse, Inc. (NASDAQ: LFUS) is a diversified, industrial
technology manufacturing company empowering a sustainable,
connected, and safer world. Across more than 20 countries, and with
approximately 17,000 global associates, we partner with customers
to design and deliver innovative, reliable solutions. Serving over
100,000 end customers, our products are found in a variety of
industrial, transportation and electronics end markets –
everywhere, every day. Learn more at Littelfuse.com.
“Safe Harbor” Statement under the
Private Securities Litigation Reform Act of 1995
The statements in this press release that are not historical
facts are intended to constitute "forward-looking statements"
entitled to the safe-harbor provisions of the Private Securities
Litigation Reform Act. Such statements are based on Littelfuse,
Inc.’s (“Littelfuse” or the “Company”) current expectations and are
subject to a number of factors and uncertainties, which could cause
actual results to differ materially from those described in the
forward-looking statements. These risks and uncertainties, include,
but are not limited to, risks and uncertainties relating to general
economic conditions; product demand and market acceptance; the
impact of competitive products and pricing; product quality
problems or product recalls; capacity and supply difficulties or
constraints; coal mining exposures reserves; cybersecurity matters;
failure of an indemnification for environmental liability; exchange
rate fluctuations; commodity and other raw material price
fluctuations; the effect of Littelfuse accounting policies; labor
disputes; restructuring costs in excess of expectations; pension
plan asset returns less than assumed; integration of acquisitions;
uncertainties related to political or regulatory changes; and other
risks which may be detailed in the company's Securities and
Exchange Commission filings. Should one or more of these risks or
uncertainties materialize or should the underlying assumptions
prove incorrect, actual results and outcomes may differ materially
from those indicated or implied in the forward-looking statements.
This release should be read in conjunction with information
provided in the financial statements appearing in the company's
Annual Report on Form 10-K for the year ended December 30,
2023.
Further discussion of the risk factors of the company can be
found under the caption "Risk Factors" in the company's Annual
Report on Form 10-K for the year ended December 30, 2023, and in
other filings and submissions with the SEC, each of which are
available free of charge on the company’s investor relations
website at investor.littelfuse.com and on the SEC’s website at
www.sec.gov. These forward-looking statements are made as of the
date hereof. The company does not undertake any obligation to
update, amend or clarify these forward-looking statements to
reflect events or circumstances after the date hereof or to reflect
the availability of new information.
Non-GAAP Financial
Measures
The information included in this press release includes the
non-GAAP financial measures of organic net sales (decline) growth,
adjusted operating income, adjusted operating margin, adjusted
EBITDA, adjusted EBITDA margin, adjusted diluted earnings per
share, adjusted income taxes, adjusted effective tax rate, free
cash flow, net debt, consolidated EBITDA, and consolidated net
leverage ratio (as defined in the credit agreement). Many of these
non-GAAP financial measures exclude the effect of certain expenses
and income not related directly to the underlying performance of
our fundamental business operations.
A reconciliation of these non-GAAP financial measures to the
most directly comparable GAAP financial measures is set forth in
the attached schedules.
The company believes that organic net sales (decline) growth,
adjusted operating income, adjusted operating margin, adjusted
EBITDA, adjusted EBITDA margin, adjusted diluted earnings per
share, adjusted income taxes, and adjusted effective tax rate
provide useful information to investors regarding its operational
performance because they enhance an investor’s overall
understanding of our core financial performance and facilitate
comparisons to historical results of operations, by excluding items
that are not related directly to the underlying performance of our
fundamental business operations or were not part of our business
operations during a comparable period. The company believes that
free cash flow is a useful measure of its ability to generate cash.
The company believes that net debt, consolidated EBITDA, and
consolidated net leverage ratio are useful measures of its credit
position. The company believes that all of these non-GAAP financial
measures are commonly used by financial analysts and others in the
industries in which we operate, and thus further provide useful
information to investors. Management additionally uses these
measures when assessing the performance of the business and for
business planning purposes. Note that our definitions of these
non-GAAP financial measures may differ from those terms as defined
or used by other companies.
LFUS-F
LITTELFUSE, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(in thousands)
March 30, 2024
December 30,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
562,153
$
555,513
Short-term investments
231
235
Trade receivables, less allowances of
$76,496 and $84,696 at March 30, 2024 and December 30, 2023,
respectively
295,876
287,018
Inventories
456,135
474,607
Prepaid income taxes and income taxes
receivable
8,574
8,701
Prepaid expenses and other current
assets
121,142
82,526
Total current assets
1,444,111
1,408,600
Net property, plant, and equipment
479,435
493,153
Intangible assets, net of amortization
584,631
606,136
Goodwill
1,294,737
1,309,998
Investments
24,204
24,821
Deferred income taxes
10,798
10,486
Right of use lease assets
63,718
62,370
Other long-term assets
41,827
79,711
Total assets
$
3,943,461
$
3,995,275
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
172,809
$
173,535
Accrued liabilities
124,288
149,214
Accrued income taxes
42,051
38,725
Current portion of long-term debt
65,824
14,020
Total current liabilities
404,972
375,494
Long-term debt, less current portion
800,849
857,915
Deferred income taxes
100,755
110,820
Accrued post-retirement benefits
34,049
34,422
Non-current lease liabilities
50,791
49,472
Other long-term liabilities
80,752
86,671
Total equity
2,471,293
2,480,481
Total liabilities and equity
$
3,943,461
$
3,995,275
LITTELFUSE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF NET INCOME
(Unaudited)
Three Months Ended
(in thousands, except per share
data)
March 30, 2024
April 1, 2023
Net sales
$
535,385
$
609,782
Cost of sales
347,577
364,825
Gross profit
187,808
244,957
Selling, general, and administrative
expenses
86,127
88,310
Research and development expenses
27,667
27,290
Amortization of intangibles
15,825
16,866
Restructuring, impairment, and other
charges
3,237
1,850
Total operating expenses
132,856
134,316
Operating income
54,952
110,641
Interest expense
9,611
9,646
Foreign exchange gain
(5,042
)
(1,675
)
Other income, net
(5,321
)
(6,233
)
Income before income taxes
55,704
108,903
Income taxes
7,252
20,158
Net income
$
48,452
$
88,745
Earnings per share:
Basic
$
1.95
$
3.58
Diluted
$
1.93
$
3.54
Weighted-average shares and equivalent
shares outstanding:
Basic
24,911
24,782
Diluted
25,124
25,062
Comprehensive income
$
18,161
$
102,028
LITTELFUSE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
(in thousands)
March 30, 2024
April 1, 2023
OPERATING ACTIVITIES
Net income
$
48,452
$
88,745
Adjustments to reconcile net income to net
cash provided by operating activities:
28,729
32,558
Changes in operating assets and
liabilities:
Trade receivables
(12,723
)
(13,176
)
Inventories
16,179
(1,535
)
Accounts payable
345
(16,246
)
Accrued liabilities and income taxes
(28,042
)
(43,578
)
Prepaid expenses and other assets
4,210
6,639
Net cash provided by operating
activities
57,150
53,407
INVESTING ACTIVITIES
Acquisitions of businesses, net of cash
acquired
—
(158,260
)
Purchases of property, plant, and
equipment
(15,547
)
(25,665
)
Net proceeds from sale of property, plant
and equipment, and other
7,064
737
Net cash used in investing activities
(8,483
)
(183,188
)
FINANCING ACTIVITIES
Net payments of credit facility
(1,875
)
(1,875
)
Repurchases of common stock
(16,131
)
—
Cash dividends paid
(16,200
)
(14,880
)
All other cash provided by financing
activities
686
4,551
Net cash used in financing activities
(33,520
)
(12,204
)
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
(8,550
)
4,571
Increase (decrease) in cash, cash
equivalents, and restricted cash
6,597
(137,414
)
Cash, cash equivalents, and restricted
cash at beginning of period
557,123
564,939
Cash, cash equivalents, and restricted
cash at end of period
$
563,720
$
427,525
LITTELFUSE, INC.
NET SALES AND OPERATING INCOME
BY SEGMENT
(Unaudited)
First Quarter
(in thousands)
2024
2023
% (Decline) /
Growth
Net sales
Electronics
$
291,105
$
358,593
(18.8
)%
Transportation
170,367
166,641
2.2
%
Industrial
73,913
84,548
(12.6
)%
Total net sales
$
535,385
$
609,782
(12.2
)%
Operating income
Electronics
$
37,803
$
90,162
(58.1
)%
Transportation
16,206
8,532
89.9
%
Industrial
4,796
17,141
(72.0
)%
Other(a)
(3,853
)
(5,194
)
N.M.
Total operating income
$
54,952
$
110,641
(50.3
)%
Operating Margin
10.3
%
18.1
%
Interest expense
9,611
9,646
Foreign exchange gain
(5,042
)
(1,675
)
Other income, net
(5,321
)
(6,233
)
Income before income taxes
$
55,704
$
108,903
(48.8
)%
(a) "other" typically includes non-GAAP
adjustments such as acquisition-related and integration costs,
purchase accounting inventory adjustments and restructuring and
impairment charges. (See Supplemental Financial Information for
details.)
N.M. - Not meaningful
First Quarter
(in thousands)
2024
2023
% (Decline)/
Growth
Operating Margin
Electronics
13.0
%
25.1
%
(12.1
)%
Transportation
9.5
%
5.1
%
4.4
%
Industrial
6.5
%
20.3
%
(13.8
)%
LITTELFUSE, INC.
SUPPLEMENTAL FINANCIAL
INFORMATION
(In millions of USD except per
share amounts - unaudited)
Non-GAAP EPS reconciliation
Q1-24
Q1-23
GAAP diluted EPS
$
1.93
$
3.54
EPS impact of Non-GAAP adjustments
(below)
(0.17
)
0.10
Adjusted diluted EPS
$
1.76
$
3.64
Non-GAAP adjustments - (income) /
expense
Q1-24
Q1-23
Acquisition-related and integration costs
(a)
$
0.9
$
3.3
Restructuring, impairment and other
charges (b)
3.2
1.9
Gain on sale of fixed assets (c)
(0.3
)
—
Non-GAAP adjustments to operating
income
3.8
5.2
Other loss (income), net (d)
0.2
(0.2
)
Non-operating foreign exchange gain
(5.0
)
(1.7
)
Non-GAAP adjustments to income before
income taxes
(1.0
)
3.3
Income taxes (e)
3.3
0.9
Non-GAAP adjustments to net income
$
(4.3
)
$
2.4
Total EPS impact
$
(0.17
)
$
0.10
Adjusted operating margin / Adjusted
EBITDA reconciliation
Q1-24
Q1-23
Net income
$
48.5
$
88.7
Add:
Income taxes
7.3
20.2
Interest expense
9.6
9.6
Foreign exchange gain
(5.0
)
(1.7
)
Other income, net
(5.3
)
(6.2
)
GAAP operating income
$
55.0
$
110.6
Non-GAAP adjustments to operating
income
3.8
5.2
Adjusted operating income
$
58.8
$
115.8
Amortization of intangibles
15.8
16.9
Depreciation expenses
16.7
17.6
Adjusted EBITDA
$
91.3
$
150.3
Net sales
$
535.4
$
609.8
Net income as a percentage of net
sales
9.1
%
14.5
%
Operating margin
10.3
%
18.1
%
Adjusted operating margin
11.0
%
19.0
%
Adjusted EBITDA margin
17.1
%
24.6
%
Adjusted EBITDA by Segment
Q1-24
Q1-23
Electronics
Transportation
Industrial
Electronics
Transportation
Industrial
GAAP operating income
$
37.8
$
16.2
$
4.8
$
90.2
$
8.5
$
17.1
Add:
Add back amortization
9.8
3.4
2.6
10.2
4.5
2.2
Add back depreciation
10.0
5.3
1.4
9.6
6.8
1.2
Adjusted EBITDA
$
57.6
$
24.9
$
8.8
$
110.0
$
19.8
$
20.5
Adjusted EBITDA Margin
19.8
%
14.6
%
11.9
%
30.7
%
11.9
%
24.3
%
Net sales reconciliation
Q1-24 vs. Q1-23
Electronics
Transportation
Industrial
Total
Net sales (decline) growth
(19
)%
2
%
(13
)%
(12
)%
Less:
Acquisitions
—
%
—
%
1
%
—
%
FX impact
—
%
(1
)%
—
%
—
%
Organic net sales (decline) growth
(19
)%
3
%
(14
)%
(12
)%
Income tax reconciliation
Q1-24
Q1-23
Income taxes
$
7.3
$
20.2
Effective rate
13.0
%
18.5
%
Non-GAAP adjustments - income taxes
3.3
0.9
Adjusted income taxes
$
10.6
$
21.1
Adjusted effective rate
19.3
%
18.8
%
Free cash flow reconciliation
Q1-24
Q1-23
Net cash provided by operating
activities
$
57.1
$
53.4
Less: Purchases of property, plant and
equipment
(15.5
)
(25.7
)
Free cash flow
$
41.6
$
27.7
Consolidated Total Debt
As of March 30, 2024
Consolidated Total Debt
$
866.7
Unamortized debt issuance costs
3.5
Finance lease liability
0.6
Consolidated funded indebtedness
870.8
Cash held in U.S. (up to $400 million)
157.9
Net debt
$
712.9
Consolidated EBITDA
Twelve Months Ended March 30,
2024
Net Income
$
219.1
Interest expense
39.8
Income taxes
56.2
Depreciation
70.7
Amortization
64.8
Non-cash additions:
Stock-based compensation expense
23.8
Purchase accounting inventory step-up
charge
—
Unrealized loss on investments
2.5
Impairment charges
5.8
Other
18.3
Consolidated EBITDA (1)
$
501.0
Consolidated Net Leverage Ratio (as
defined in the Credit Agreement) *
1.4x
* Our Credit Agreement and Private
Placement Note with maturities ranging from 2024 to 2032, contain
financial ratio covenants providing that if, as of the last day of
each fiscal quarter, the Consolidated Net Leverage ratio at such
time for the then most recently concluded period of four
consecutive fiscal quarters of the Company exceeds 3.50:1.00, an
Event of Default (as defined in the Credit Agreement and Private
Placement Senior Notes) is triggered.
The Credit Agreement and Private Placement
Senior Notes were amended in Q2 2022 and now allow for the addition
of acquisition and integration costs up to 15% of Consolidated
EBITDA and the netting of up to $400M of Available Cash (Cash held
by US Subsidiaries).
(1) Represents Consolidated EBITDA as
defined in our Credit Agreement and Private Placement Senior Notes
and is calculated using the most recently concluded period of four
consecutive quarters.
Note: Total will not always foot due to
rounding.
(a) reflected in selling, general and
administrative expenses ("SG&A").
(b) reflected in restructuring, impairment
and other charges.
(c) 2024 amount included $0.3 million gain
from the sale of a building within the Transportation segment.
(d) 2024 amount reflected $0.2 million
increase in coal mining reserves, while 2023 amount included $0.2
million gain from the sale of a building within the Electronics
segment.
(e) reflected the tax impact associated
with the non-GAAP adjustments.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240430281892/en/
David Kelley 224-727-2535 dkelley@littelfuse.com
Grafico Azioni Littelfuse (NASDAQ:LFUS)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Littelfuse (NASDAQ:LFUS)
Storico
Da Dic 2023 a Dic 2024
