Operational execution drives third quarter
earnings above expectations
Littelfuse, Inc. (NASDAQ: LFUS), a diversified, industrial
technology manufacturing company empowering a sustainable,
connected, and safer world, today reported financial results for
the third quarter ended September 28, 2024:
- Net sales of $567 million were down 7% versus the prior year
period and organically
- GAAP diluted EPS was $2.32 and adjusted diluted EPS was
$2.71
- Cash flow from operations was $80 million and free cash flow
was $65 million
“In the third quarter, our global teams delivered strong
execution and drove sales and earnings above our expectations,”
said Dave Heinzmann, Littelfuse President and Chief Executive
Officer. “While we see soft end market conditions extending into
the fourth quarter, we remain focused on driving operational
excellence while serving our global customer base and delivering
meaningful new business wins. Our proven growth strategy,
diversification efforts and strong technology capabilities position
us to deliver top tier long-term stakeholder value.”
Fourth Quarter of 2024*
Based on current market conditions, for the fourth quarter the
company expects,
- Net sales in the range of $510 - $540 million, adjusted diluted
EPS in the range of $1.90 - $2.10 and an adjusted effective tax
rate of approximately 14%
*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 December 5, 2024, to shareholders of record as
of November 21, 2024
Conference Call and Webcast
Information
Littelfuse will host a conference call on Wednesday, October 30,
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)
September 28,
2024
December 30,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
629,670
$
555,513
Short-term investments
1,011
235
Trade receivables, less allowances of
$76,151 and $84,696 at September 28, 2024 and December 30, 2023,
respectively
338,758
287,018
Inventories
453,781
474,607
Prepaid income taxes and income taxes
receivable
6,793
8,701
Prepaid expenses and other current
assets
132,510
82,526
Total current assets
1,562,523
1,408,600
Net property, plant, and equipment
481,592
493,153
Intangible assets, net of amortization
560,994
606,136
Goodwill
1,317,748
1,309,998
Investments
26,607
24,821
Deferred income taxes
11,955
10,486
Right of use lease assets
60,277
62,370
Other long-term assets
40,548
79,711
Total assets
$
4,062,244
$
3,995,275
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
179,486
$
173,535
Accrued liabilities
152,772
149,214
Accrued income taxes
39,809
38,725
Current portion of long-term debt
67,799
14,020
Total current liabilities
439,866
375,494
Long-term debt, less current portion
799,949
857,915
Deferred income taxes
95,554
110,820
Accrued post-retirement benefits
31,373
34,422
Non-current lease liabilities
52,074
49,472
Other long-term liabilities
70,328
86,671
Total equity
2,573,100
2,480,481
Total liabilities and equity
$
4,062,244
$
3,995,275
LITTELFUSE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF NET INCOME
(Unaudited)
Three Months Ended
Nine Months Ended
(in thousands, except per share
data)
September 28,
2024
September 30,
2023
September 28,
2024
September 30,
2023
Net sales
$
567,390
$
607,071
$
1,661,263
$
1,828,850
Cost of sales
351,498
380,200
1,050,559
1,122,190
Gross profit
215,892
226,871
610,704
706,660
Selling, general, and administrative
expenses
83,897
87,204
263,395
270,057
Research and development expenses
26,470
25,484
81,283
77,270
Amortization of intangibles
15,864
16,022
47,418
49,773
Restructuring, impairment, and other
charges
1,840
4,516
10,329
13,221
Total operating expenses
128,071
133,226
402,425
410,321
Operating income
87,821
93,645
208,279
296,339
Interest expense
9,772
10,101
29,358
29,803
Foreign exchange loss
9,630
11,776
4,273
8,697
Other income, net
(9,297
)
(3,527
)
(19,916
)
(11,810
)
Income before income taxes
77,716
75,295
194,564
269,649
Income taxes
19,658
17,507
42,588
53,045
Net income
$
58,058
$
57,788
$
151,976
$
216,604
Earnings per share:
Basic
$
2.34
$
2.32
$
6.12
$
8.72
Diluted
$
2.32
$
2.30
$
6.07
$
8.63
Weighted-average shares and equivalent
shares outstanding:
Basic
24,796
24,893
24,822
24,838
Diluted
25,025
25,143
25,040
25,100
Comprehensive income
$
114,451
$
55,654
$
157,011
$
212,842
LITTELFUSE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
(in thousands)
September 28, 2024
September 30, 2023
OPERATING ACTIVITIES
Net income
$
151,976
$
216,604
Adjustments to reconcile net income to net
cash provided by operating activities:
101,437
137,988
Changes in operating assets and
liabilities:
Trade receivables
(50,672
)
(21,752
)
Inventories
19,865
66,456
Accounts payable
5,460
(38,475
)
Accrued liabilities and income taxes
(19,434
)
(61,359
)
Prepaid expenses and other assets
(1,633
)
13,678
Net cash provided by operating
activities
206,999
313,140
INVESTING ACTIVITIES
Acquisitions of businesses, net of cash
acquired
—
(198,810
)
Purchases of property, plant, and
equipment
(50,065
)
(63,166
)
Net proceeds from sale of property, plant
and equipment, and other
8,931
597
Net cash used in investing activities
(41,134
)
(261,379
)
FINANCING ACTIVITIES
Net payments of credit facility
(3,750
)
(5,625
)
Repurchases of common stock
(40,862
)
—
Cash dividends paid
(49,687
)
(45,973
)
All other cash provided by financing
activities
3,000
4,454
Net cash used in financing activities
(91,299
)
(47,144
)
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
(396
)
(7,965
)
Increase (decrease) in cash, cash
equivalents, and restricted cash
74,170
(3,348
)
Cash, cash equivalents, and restricted
cash at beginning of period
557,123
564,939
Cash, cash equivalents, and restricted
cash at end of period
$
631,293
$
561,591
LITTELFUSE, INC.
NET SALES AND OPERATING INCOME
BY SEGMENT
(Unaudited)
Third Quarter
Year-to-Date
(in thousands)
2024
2023
% (Decline) /
Growth
2024
2023
% (Decline) /
Growth
Net sales
Electronics
$
304,188
$
343,933
(11.6
)%
$
900,932
$
1,052,673
(14.4
)%
Transportation
171,381
177,019
(3.2
)%
510,711
515,708
(1.0
)%
Industrial
91,821
86,119
6.6
%
249,620
260,469
(4.2
)%
Total net sales
$
567,390
$
607,071
(6.5
)%
$
1,661,263
$
1,828,850
(9.2
)%
Operating income
Electronics
$
48,891
$
77,022
(36.5
)%
$
132,859
$
247,028
(46.2
)%
Transportation
23,485
9,694
142.3
%
54,925
26,015
111.1
%
Industrial
17,711
13,201
34.2
%
32,054
45,450
(29.5
)%
Other(a)
(2,266
)
(6,272
)
N.M.
(11,559
)
(22,154
)
N.M.
Total operating income
$
87,821
$
93,645
(6.2
)%
$
208,279
$
296,339
(29.7
)%
Operating Margin
15.5
%
15.4
%
12.5
%
16.2
%
Interest expense
9,772
10,101
29,358
29,803
Foreign exchange loss
9,630
11,776
4,273
8,697
Other income, net
(9,297
)
(3,527
)
(19,916
)
(11,810
)
Income before income taxes
$
77,716
$
75,295
3.2
%
$
194,564
$
269,649
(27.8
)%
(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
Third Quarter
Year-to-Date
(in thousands)
2024
2023
% (Decline) /
Growth
2024
2023
% (Decline) /
Growth
Operating Margin
Electronics
16.1
%
22.4
%
(6.3
)%
14.7
%
23.5
%
(8.8
)%
Transportation
13.7
%
5.5
%
8.2
%
10.8
%
5.0
%
5.8
%
Industrial
19.3
%
15.3
%
4.0
%
12.8
%
17.4
%
(4.6
)%
LITTELFUSE, INC.
SUPPLEMENTAL FINANCIAL
INFORMATION
(In millions of USD except per
share amounts - unaudited)
Non-GAAP EPS reconciliation
Q3-24
Q3-23
YTD-24
YTD-23
GAAP diluted EPS
$
2.32
$
2.30
$
6.07
$
8.63
EPS impact of Non-GAAP adjustments
(below)
0.39
0.67
0.37
1.09
Adjusted diluted EPS
$
2.71
$
2.97
$
6.44
$
9.72
Non-GAAP adjustments - (income) /
expense
Q3-24
Q3-23
YTD-24
YTD-23
Acquisition-related and integration costs
(a)
$
1.0
$
1.8
$
2.8
$
9.0
Restructuring, impairment and other
charges (b)
1.8
4.5
10.3
13.2
Gain on sale of fixed assets (c)
(0.5
)
—
(1.5
)
—
Non-GAAP adjustments to operating
income
2.3
6.3
11.6
22.2
Other income, net (d)
—
—
(0.3
)
(0.2
)
Non-operating foreign exchange loss
9.6
11.8
4.3
8.7
Non-GAAP adjustments to income before
income taxes
11.9
18.1
15.6
30.7
Income taxes (e)
2.1
1.2
6.2
3.2
Non-GAAP adjustments to net income
$
9.8
$
16.9
$
9.4
$
27.5
Total EPS impact
$
0.39
$
0.67
$
0.37
$
1.09
Adjusted operating margin / Adjusted
EBITDA reconciliation
Q3-24
Q3-23
YTD-24
YTD-23
Net income
$
58.1
$
57.8
$
152.0
$
216.6
Add:
Income taxes
19.7
17.5
42.6
53.0
Interest expense
9.8
10.1
29.4
29.8
Foreign exchange loss
9.6
11.8
4.3
8.7
Other income, net
(9.3
)
(3.5
)
(19.9
)
(11.8
)
GAAP operating income
$
87.8
$
93.6
$
208.3
$
296.3
Non-GAAP adjustments to operating
income
2.3
6.3
11.6
22.2
Adjusted operating income
$
90.1
$
99.9
$
219.9
$
318.5
Amortization of intangibles
15.9
16.0
47.4
49.8
Depreciation expense
17.3
17.9
51.0
53.5
Adjusted EBITDA
$
123.3
$
133.8
$
318.3
$
421.8
Net sales
$
567.4
$
607.1
$
1,661.3
$
1,828.9
Net income as a percentage of net
sales
10.2
%
9.5
%
9.1
%
11.8
%
Operating margin
15.5
%
15.4
%
12.5
%
16.2
%
Adjusted operating margin
15.9
%
16.5
%
13.2
%
17.4
%
Adjusted EBITDA margin
21.7
%
22.0
%
19.2
%
23.1
%
Adjusted EBITDA by Segment
Q3-24
Q3-23
Electronics
Transportation
Industrial
Electronics
Transportation
Industrial
GAAP operating income
$
48.9
$
23.5
$
17.7
$
77.0
$
9.7
$
13.2
Add:
Add back amortization
9.9
3.4
2.6
9.8
3.6
2.6
Add back depreciation
10.1
5.7
1.5
9.8
6.6
1.5
Adjusted EBITDA
$
68.9
$
32.6
$
21.8
$
96.6
$
19.9
$
17.3
Adjusted EBITDA Margin
22.6
%
19.0
%
23.8
%
28.1
%
11.2
%
20.1
%
Adjusted EBITDA by Segment
YTD-24
YTD-23
Electronics
Transportation
Industrial
Electronics
Transportation
Industrial
GAAP operating income
$
132.9
$
54.9
$
32.1
$
247.0
$
26.0
$
45.5
Add:
Add back amortization
29.6
10.1
7.7
30.1
12.2
7.5
Add back depreciation
30.1
16.7
4.2
29.1
20.4
4.0
Adjusted EBITDA
$
192.5
$
81.8
$
44.0
$
306.2
$
58.6
$
57.0
Adjusted EBITDA Margin
21.4
%
16.0
%
17.6
%
29.1
%
11.4
%
21.9
%
Net sales reconciliation
Q3-24 vs. Q3-23
Electronics
Transportation
Industrial
Total
Net sales (decline) growth
(12
)%
(3
)%
7
%
(7
)%
Less:
Acquisitions
—
%
—
%
—
%
—
%
FX impact
—
%
—
%
—
%
—
%
Organic net sales (decline) growth
(12
)%
(3
)%
7
%
(7
)%
Net sales reconciliation
YTD-24 vs. YTD-23
Electronics
Transportation
Industrial
Total
Net sales decline
(14
)%
(1
)%
(4
)%
(9
)%
Less:
Acquisitions
—
%
—
%
—
%
—
%
FX impact
—
%
—
%
—
%
—
%
Organic net sales decline
(14
)%
(1
)%
(4
)%
(9
)%
Income tax reconciliation
Q3-24
Q3-23
YTD-24
YTD-23
Income taxes
$
19.7
$
17.5
$
42.6
$
53.0
Effective rate
25.3
%
23.3
%
21.9
%
19.7
%
Non-GAAP adjustments - income taxes
2.1
1.2
6.2
3.2
Adjusted income taxes
$
21.8
$
18.7
$
48.8
$
56.2
Adjusted effective rate
24.3
%
20.0
%
23.2
%
18.7
%
Free cash flow reconciliation
Q3-24
Q3-23
YTD-24
YTD-23
Net cash provided by operating
activities
$
80.4
$
161.5
$
207.0
$
313.1
Less: Purchases of property, plant and
equipment
(15.4
)
(21.7
)
(50.1
)
(63.2
)
Free cash flow
$
65.0
$
139.8
$
156.9
$
250.0
Consolidated Total Debt
As of September 28,
2024
Consolidated Total Debt
$
867.7
Unamortized debt issuance costs
3.0
Finance lease liability
0.4
Consolidated funded indebtedness
871.1
Cash held in U.S. (up to $400 million)
135.5
Net debt
$
735.6
Consolidated EBITDA
Twelve Months Ended September
28, 2024
Net Income
$
194.8
Interest expense
39.4
Income taxes
58.7
Depreciation
69.1
Amortization
63.4
Non-cash additions:
Stock-based compensation expense
25.2
Purchase accounting inventory step-up
charge
—
Unrealized loss on investments
(2.6
)
Impairment charges
1.0
Other
(0.2
)
Consolidated EBITDA (1)
$
448.8
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 $0.5 million ($1.5
million year-to-date) recorded for the sale of a land use right
within the Electronics segment and a gain of $1.0 million for the
sale of two buildings within the Transportation segment. (d) 2024
year-to-date also included a reversal of $0.5 million for an asset
retirement obligation charge related the disposal of a business in
2019 and $0.2 million increase in coal mining reserves. 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/20241029085384/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
