Diverse and resilient business model drive Q2
sales and adjusted EPS above guidance
Littelfuse, Inc. (NASDAQ: LFUS), a
diversified, industrial technology manufacturing company empowering
a sustainable, connected, and safer world, today reported financial
results for the second quarter ended June 29, 2024:
- Net sales of $558 million were down 9% versus the prior year
period, and down 8% organically
- GAAP diluted EPS was $1.82 and adjusted diluted EPS was
$1.97
- Cash flow from operations was $69 million and free cash flow
was $50 million
- The company’s Board of Directors approved an 8% increase in the
quarterly cash dividend from $0.65 to $0.70; this equates to an
annualized dividend of $2.80 per share
- On June 26, the company released its 2023 Sustainability Report
on littelfuse.com/about-us/sustainability
“We are pleased to have exceeded the high end of our second
quarter sales and adjusted EPS guidance ranges, driven by solid
execution from our global teams and supported by our resilient
business model and diverse technology positioning.” said Dave
Heinzmann, Littelfuse President and Chief Executive Officer.
“Looking ahead, we remain confident in an expected return to growth
during 2024, likely in the fourth quarter. We see some pockets of
normalized channel inventory and improving end demand but also
ongoing signs of cautiousness from customers. We remain well
positioned to execute our proven long-term growth strategy and
deliver top tier stakeholder value.”
Third Quarter of 2024*
Based on current market conditions, for the third quarter the
company expects,
- Net sales in the range of $540 - $570 million, adjusted diluted
EPS in the range of $1.95 - $2.15 and an adjusted effective tax
rate of approximately 26%
*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 will pay a cash dividend on its common stock of
$0.70 per share on September 5, 2024, to shareholders of record as
of August 22, 2024
Conference Call and Webcast
Information
Littelfuse will host a conference call on Wednesday, July 31,
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 16,000 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, except share and per
share data)
June 29, 2024
December 30,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
561,742
$
555,513
Short-term investments
971
235
Trade receivables, less allowances of
$73,744 and $84,696 at June 29, 2024 and December 30, 2023,
respectively
317,963
287,018
Inventories
451,186
474,607
Prepaid income taxes and income taxes
receivable
6,413
8,701
Prepaid expenses and other current
assets
125,703
82,526
Total current assets
1,463,978
1,408,600
Net property, plant, and equipment
472,537
493,153
Intangible assets, net of amortization
566,030
606,136
Goodwill
1,287,762
1,309,998
Investments
22,904
24,821
Deferred income taxes
10,950
10,486
Right of use lease assets
59,563
62,370
Other long-term assets
41,254
79,711
Total assets
$
3,924,978
$
3,995,275
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
176,095
$
173,535
Accrued liabilities
135,180
149,214
Accrued income taxes
39,235
38,725
Current portion of long-term debt
67,679
14,020
Total current liabilities
418,189
375,494
Long-term debt, less current portion
795,825
857,915
Deferred income taxes
96,214
110,820
Accrued post-retirement benefits
31,810
34,422
Non-current lease liabilities
49,581
49,472
Other long-term liabilities
67,872
86,671
Total equity
2,465,487
2,480,481
Total liabilities and equity
$
3,924,978
$
3,995,275
LITTELFUSE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF NET INCOME
(Unaudited)
Three Months Ended
Six Months Ended
(in thousands, except per share
data)
June 29, 2024
July 1, 2023
June 29, 2024
July 1, 2023
Net sales
$
558,489
$
611,997
$
1,093,874
$
1,221,779
Cost of sales
351,485
377,165
699,062
741,990
Gross profit
207,004
234,832
394,812
479,789
Selling, general, and administrative
expenses
93,371
94,543
179,498
182,853
Research and development expenses
27,146
24,496
54,813
51,786
Amortization of intangibles
15,729
16,885
31,554
33,751
Restructuring, impairment, and other
charges
5,252
6,855
8,489
8,705
Total operating expenses
141,498
142,779
274,354
277,095
Operating income
65,506
92,053
120,458
202,694
Interest expense
9,975
10,056
19,586
19,702
Foreign exchange gain
(315
)
(1,404
)
(5,357
)
(3,079
)
Other income, net
(5,298
)
(2,050
)
(10,619
)
(8,283
)
Income before income taxes
61,144
85,451
116,848
194,354
Income taxes
15,678
15,380
22,930
35,538
Net income
$
45,466
$
70,071
$
93,918
$
158,816
Earnings per share:
Basic
$
1.83
$
2.82
$
3.78
$
6.40
Diluted
$
1.82
$
2.79
$
3.75
$
6.33
Weighted-average shares and equivalent
shares outstanding:
Basic
24,822
24,839
24,867
24,810
Diluted
25,030
25,095
25,075
25,078
Comprehensive income
$
24,399
$
55,160
$
42,560
$
157,188
LITTELFUSE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
(in thousands)
June 29, 2024
July 1, 2023
OPERATING ACTIVITIES
Net income
$
93,918
$
158,816
Adjustments to reconcile net income to net
cash provided by operating activities:
73,161
83,347
Changes in operating assets and
liabilities:
Trade receivables
(36,474
)
(30,562
)
Inventories
16,241
26,638
Accounts payable
6,819
(33,796
)
Accrued liabilities and income taxes
(28,829
)
(57,790
)
Prepaid expenses and other assets
1,738
4,980
Net cash provided by operating
activities
126,574
151,633
INVESTING ACTIVITIES
Acquisitions of businesses, net of cash
acquired
—
(158,260
)
Purchases of property, plant, and
equipment
(34,674
)
(41,501
)
Net proceeds from sale of property, plant
and equipment, and other
7,997
741
Net cash used in investing activities
(26,677
)
(199,020
)
FINANCING ACTIVITIES
Net payments of credit facility
(3,750
)
(3,750
)
Repurchases of common stock
(40,862
)
—
Cash dividends paid
(32,330
)
(29,790
)
All other cash (used in) provided by
financing activities
(2,348
)
854
Net cash used in financing activities
(79,290
)
(32,686
)
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
(14,434
)
(1,772
)
Increase (decrease) in cash, cash
equivalents, and restricted cash
6,173
(81,845
)
Cash, cash equivalents, and restricted
cash at beginning of period
557,123
564,939
Cash, cash equivalents, and restricted
cash at end of period
$
563,296
$
483,094
LITTELFUSE, INC.
NET SALES AND OPERATING INCOME
BY SEGMENT
(Unaudited)
Second Quarter
Year-to-Date
(in thousands)
2024
2023
% (Decline) /
Growth
2024
2023
% (Decline) /
Growth
Net sales
Electronics
$
305,639
$
350,147
(12.7
)%
$
596,744
$
708,740
(15.8
)%
Transportation
168,964
172,048
(1.8
)%
339,331
338,689
0.2
%
Industrial
83,886
89,802
(6.6
)%
157,799
174,350
(9.5
)%
Total net sales
$
558,489
$
611,997
(8.7
)%
$
1,093,874
$
1,221,779
(10.5
)%
Operating income
Electronics
$
46,165
$
79,844
(42.2
)%
$
83,968
$
170,006
(50.6
)%
Transportation
15,234
7,789
95.6
%
31,440
16,321
92.6
%
Industrial
9,547
15,108
(36.8
)%
14,343
32,249
(55.5
)%
Other(a)
(5,440
)
(10,688
)
N.M.
(9,293
)
(15,882
)
N.M.
Total operating income
$
65,506
$
92,053
(28.8
)%
$
120,458
$
202,694
(40.6
)%
Operating Margin
11.7
%
15.0
%
11.0
%
16.6
%
Interest expense
9,975
10,056
19,586
19,702
Foreign exchange gain
(315
)
(1,404
)
(5,357
)
(3,079
)
Other income, net
(5,298
)
(2,050
)
(10,619
)
(8,283
)
Income before income taxes
$
61,144
$
85,451
(28.4
)%
$
116,848
$
194,354
(39.9
)%
(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
Second Quarter
Year-to-Date
(in thousands)
2024
2023
%
(Decline)/Growth
2024
2023
%
(Decline)/Growth
Operating Margin
Electronics
15.1
%
22.8
%
(7.7
)%
14.1
%
24.0
%
(9.9
)%
Transportation
9.0
%
4.5
%
4.5
%
9.3
%
4.8
%
4.5
%
Industrial
11.4
%
16.8
%
(5.4
)%
9.1
%
18.5
%
(9.4
)%
LITTELFUSE, INC.
SUPPLEMENTAL FINANCIAL
INFORMATION
(In millions of USD except per
share amounts - unaudited)
Non-GAAP EPS reconciliation
Q2-24
Q2-23
YTD-24
YTD-23
GAAP diluted EPS
$
1.82
$
2.79
$
3.75
$
6.33
EPS impact of Non-GAAP adjustments
(below)
0.15
0.33
(0.02
)
0.42
Adjusted diluted EPS
$
1.97
$
3.12
$
3.73
$
6.75
Non-GAAP adjustments - (income) /
expense
Q2-24
Q2-23
YTD-24
YTD-23
Acquisition-related and integration costs
(a)
$
0.8
$
3.8
$
1.8
$
7.2
Restructuring, impairment and other
charges (b)
5.3
6.9
8.5
8.7
Gain on sale of fixed assets (c)
(0.7
)
—
(1.0
)
—
Non-GAAP adjustments to operating
income
5.4
10.7
9.3
15.9
Other income, net (d)
(0.5
)
—
(0.3
)
(0.2
)
Non-operating foreign exchange gain
(0.3
)
(1.4
)
(5.4
)
(3.1
)
Non-GAAP adjustments to income before
income taxes
4.6
9.3
3.6
12.6
Income taxes (e)
0.7
1.0
4.1
1.9
Non-GAAP adjustments to net income
$
3.9
$
8.3
$
(0.5
)
$
10.7
Total EPS impact
$
0.15
$
0.33
$
(0.02
)
$
0.42
Adjusted operating margin / Adjusted
EBITDA reconciliation
Q2-24
Q2-23
YTD-24
YTD-23
Net income
$
45.5
$
70.1
$
93.9
$
158.8
Add:
Income taxes
15.7
15.4
22.9
35.5
Interest expense
10.0
10.1
19.6
19.7
Foreign exchange gain
(0.3
)
(1.4
)
(5.4
)
(3.1
)
Other income, net
(5.3
)
(2.1
)
(10.6
)
(8.3
)
GAAP operating income
$
65.5
$
92.1
$
120.5
$
202.7
Non-GAAP adjustments to operating
income
5.4
10.7
9.3
15.9
Adjusted operating income
$
70.9
$
102.8
$
129.8
$
218.6
Amortization of intangibles
15.7
16.9
31.6
33.8
Depreciation expenses
17.1
18.0
33.7
35.6
Adjusted EBITDA
$
103.7
$
137.7
$
195.0
$
288.0
Net sales
$
558.5
$
612.0
$
1,093.9
$
1,221.8
Net income as a percentage of net
sales
8.1
%
11.5
%
8.6
%
13.0
%
Operating margin
11.7
%
15.0
%
11.0
%
16.6
%
Adjusted operating margin
12.7
%
16.8
%
11.9
%
17.9
%
Adjusted EBITDA margin
18.6
%
22.5
%
17.8
%
23.6
%
Adjusted EBITDA by Segment
Q2-24
Q2-23
Electronics
Transportation
Industrial
Electronics
Transportation
Industrial
GAAP operating income
$
46.2
$
15.2
$
9.5
$
79.8
$
7.8
$
15.1
Add:
Add back amortization
9.8
3.3
2.6
10.1
4.2
2.7
Add back depreciation
10.0
5.8
1.3
9.7
6.9
1.4
Adjusted EBITDA
$
66.0
$
24.3
$
13.4
$
99.6
$
18.9
$
19.2
Adjusted EBITDA Margin
21.6
%
14.4
%
16.0
%
28.5
%
11.0
%
21.4
%
Adjusted EBITDA by Segment
YTD-24
YTD-23
Electronics
Transportation
Industrial
Electronics
Transportation
Industrial
GAAP operating income
$
84.0
$
31.4
$
14.3
$
170.0
$
16.3
$
32.2
Add:
Add back amortization
19.7
6.8
5.1
20.3
8.6
4.9
Add back depreciation
19.9
11.0
2.8
19.5
13.6
2.5
Adjusted EBITDA
$
123.6
$
49.2
$
22.2
$
209.9
$
38.5
$
39.6
Adjusted EBITDA Margin
20.7
%
14.5
%
14.1
%
29.6
%
11.4
%
22.7
%
Net sales reconciliation
Q2-24 vs. Q2-23
Electronics
Transportation
Industrial
Total
Net sales decline
(13
)%
(2
)%
(7
)%
(9
)%
Less:
Acquisitions
—
%
—
%
—
%
—
%
FX impact
(1
)%
(1
)%
(1
)%
(1
)%
Organic net sales decline
(12
)%
(1
)%
(6
)%
(8
)%
Net sales reconciliation
YTD-24 vs. YTD-23
Electronics
Transportation
Industrial
Total
Net sales (decline) growth
(16
)%
—
%
(9
)%
(10
)%
Less:
Acquisitions
—
%
—
%
1
%
—
%
FX impact
(1
)%
(1
)%
—
%
—
%
Organic net sales (decline) growth
(15
)%
1
%
(10
)%
(10
)%
Income tax reconciliation
Q2-24
Q2-23
YTD-24
YTD-23
Income taxes
$
15.7
$
15.4
$
22.9
$
35.5
Effective rate
25.6
%
18.0
%
19.6
%
18.3
%
Non-GAAP adjustments - income taxes
0.7
1.0
4.1
1.9
Adjusted income taxes
$
16.4
$
16.4
$
27.0
$
37.4
Adjusted effective rate
25.0
%
17.4
%
22.4
%
18.1
%
Free cash flow reconciliation
Q2-24
Q2-23
YTD-24
YTD-23
Net cash provided by operating
activities
$
69.4
$
98.2
$
126.6
$
151.6
Less: Purchases of property, plant and
equipment
(19.1
)
(15.8
)
(34.7
)
(41.5
)
Free cash flow
$
50.3
$
82.4
$
91.9
$
110.1
Consolidated Total Debt
As of June 29, 2024
Consolidated Total Debt
$
863.5
Unamortized debt issuance costs
3.3
Finance lease liability
0.4
Consolidated funded indebtedness
867.2
Cash held in U.S. (up to $400 million)
102.1
Net debt
$
765.1
Consolidated EBITDA
Twelve Months Ended June 29,
2024
Net Income
$
194.5
Interest expense
39.7
Income taxes
56.5
Depreciation
69.7
Amortization
63.6
Non-cash additions:
Stock-based compensation expense
24.5
Purchase accounting inventory step-up
charge
—
Unrealized loss on investments
2.1
Impairment charges
1.9
Other
13.7
Consolidated EBITDA (1)
$
466.2
Consolidated Net Leverage Ratio (as
defined in the Credit Agreement) *
1.6x
* 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 reflected a gain of $0.7
million ($1.0 million year-to-date) recorded for the sale of two
buildings within the Transportation segment.
(d) Q2 2024 included a reversal of $0.5
million for an asset retirement obligation charge related the
disposal of a business in 2019. 2024 year-to-date also included
$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/20240730715375/en/
David Kelley 224-727-2535 dkelley@littelfuse.com
Grafico Azioni Littelfuse (NASDAQ:LFUS)
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Da Nov 2024 a Dic 2024
Grafico Azioni Littelfuse (NASDAQ:LFUS)
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Da Dic 2023 a Dic 2024
