Littelfuse Reports First Quarter Results

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Littelfuse Reports First Quarter Results

CHICAGO--(BUSINESS WIRE)-- Littelfuse, Inc. (NAS: LFUS) today reported sales and earnings for the first quarter of 2013.

First Quarter Highlights

  • Sales for the first quarter of 2013 increased 8% sequentially and 6% year over year to $170.9 million. The increase in sales was broad based, as all businesses and all geographies grew compared to the prior year.
  • On a GAAP basis, first quarter 2013 earnings were $0.66 per diluted share. This includes a non-cash charge of $10.7 million pre-tax ($0.29 per share after tax) to write off the remaining equity investment and loan balance for Shocking Technologies, which is in Chapter 7 bankruptcy. Earnings per share for the first quarter of 2012 were $0.80.
  • Sales and order trends by business unit were as follows:
    • Electronics sales increased 3% year over year due primarily to low channel inventories and improving market sentiment. While all regions had at least modest growth, the largest increase was in Europe reflecting partial recovery from a very weak first quarter of 2012.
    • Automotive sales increased 13% year over year due to the acquisitions of Accel and Terra and growth in the passenger vehicle business led by Asia. This was partially offset by the commercial vehicle business which, while showing signs of recovery, still declined 10% compared to the first quarter of 2012 (excluding Terra).
    • Electrical sales grew 4% year over year due to growth in power fuses primarily reflecting increased sales into the solar market.
    • The electronics book-to-bill ratio for the first quarter of 2013 increased to 1.18 compared to 1.16 in the first quarter of 2012.
  • Cash provided by operating activities was $16.0 million for the first quarter of 2013 compared to $7.9 million for the first quarter of 2012 reflecting improved margins and strong working capital performance. Capital expenditures for the first quarter of 2013 were $5.5 million compared to $3.2 million for the first quarter of 2012.
  • The previous share repurchase authorization expired on April 30, 2013 and was replaced with a one million share repurchase authorization effective through April 2014.
  • As previously announced, the company has entered into a definitive agreement to acquire Hamlin, Inc. from Key Safety Systems for $145 million in a cash transaction. The purchase price represents approximately 8.2 times trailing EBITDA. This transaction is expected to close by the end of May.

"The broad-based sales increase in the first quarter coupled with improving book-to-bill is encouraging," said Gordon Hunter, Chief Executive Officer. "Although several of our end markets are still relatively weak, we are becoming more confident in our belief that the second and third quarters will show normal seasonal strength."

Outlook

  • Sales for the second quarter of 2013 are expected to be in the range of $177 to $187 million which represents 1% to 6% growth compared to the second quarter of 2012.
  • Earnings for the second quarter of 2013 are expected to be in the range of $1.03 to $1.18 per diluted share.
  • Both the sales and earnings guidance above excludes Hamlin. If the Hamlin transaction closes on schedule at the end of May, it is expected that it would add approximately $7 million to sales and be slightly accretive to earnings for the second quarter, excluding acquisition-related costs.

Dividend

The company will pay a cash dividend of $0.20 per common share on June 6, 2013 to shareholders of record at the close of business on May 20, 2013.

Conference Call Webcast Information

Littelfuse will host a conference call today, Tuesday, April 30, 2013 at 11:00 a.m. Eastern/10:00 a.m. Central time to discuss the first quarter results. The call will be broadcast live over the Internet and can be accessed through the company's website: www.littelfuse.com. Listeners should go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call will be available for replay through June 30, 2013 and can be accessed through the website listed above.

About Littelfuse

Founded in 1927, Littelfuse, Inc., the worldwide leader in circuit protection, offers the industry's broadest and deepest portfolio of circuit protection products and solutions. Littelfuse devices protect products in virtually every market that uses electrical energy, from consumer electronics to automobiles to industrial equipment. In addition to its Chicago, Illinois, world headquarters, Littelfuse has more than 30 sales, distribution, manufacturing and engineering facilities in the Americas, Europe and Asia. Technologies offered by Littelfuse include Fuses; Gas Discharge Tubes (GDTs); Positive Temperature Coefficient Devices (PTCs); PulseGuard® ESD Suppressors; SIDACtor® Devices; Silicon Protection Arrays (SPA®); Switching Thyristors; TVS Diodes and Varistors. The company also offers a comprehensive line of highly reliable Electromechanical and Electronic Switch and Control Devices for commercial and specialty vehicles and Sensors for automobile safety systems, as well as Protection Relays and underground Power Distribution Centers for the safe control and distribution of electricity.

For more information, please visit the Littelfuse website: 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 PSLRA. These statements may involve risks and uncertainties, including, but not limited to, risks relating to product demand and market acceptance, economic conditions, the impact of competitive products and pricing, product quality problems or product recalls, capacity and supply difficulties or constraints, coal mining exposures reserves, failure of an indemnification for environmental liability, exchange rate fluctuations, commodity price fluctuations, the effect of the company's accounting policies, labor disputes, restructuring costs in excess of expectations, pension plan asset returns less than assumed, integration of acquisitions and other risks which may be detailed in the company's other 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 report 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 29, 2012. For a further discussion of the risk factors of the company, please see Item 1A. "Risk Factors" to the company's Annual Report on Form 10-K for the year ended December 29, 2012.

LFUS - F

 
 
LITTELFUSE, INC.
Net Sales and Operating Income by Business Unit
(In thousands of USD, unaudited)
    
 
 
First Quarter
20132012% Change
 

Net Sales

Electronics$79,415$77,0553%
Automotive59,38552,62613%
Electrical 32,118  30,8974%
 
Total net sales$170,918 $160,5786%
 
 
First Quarter
20132012% Change
 

Operating Income

Electronics$12,143$10,11220%
Automotive9,4839,505(0%)
Electrical 6,491  6,2075%
 
Total operating income$28,117$25,8249%
 
Interest expense376423
Investment impairment (1)10,678525
Other (income) expense, net (909) 101
 
Income before taxes$17,972 $24,775(27%)
 
(1) Impairment and loan losses from investment in Shocking Technologies.
 
 
LITTELFUSE, INC.
Condensed Consolidated Balance Sheets
(In thousands of USD, except share amounts)
     
March 30, 2013December 29, 2012
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$246,895$235,404
Short-term investments8,344-
Accounts receivable, less allowances107,044100,559
Inventories71,37275,580
Deferred income taxes10,87411,890
Prepaid expenses and other current assets15,85716,532
Assets held for sale 5,500  5,500 
Total current assets465,886445,465
Property, plant and equipment:
Land6,3286,243
Buildings55,15954,559
Equipment 309,975  304,954 
371,462365,756
Accumulated depreciation (251,162) (244,845)
Net property, plant and equipment120,300120,911
Intangible assets, net of amortization:
Patents, licenses and software10,52111,144
Distribution network18,24318,964
Customer lists, trademarks and tradenames17,73818,704
Goodwill 131,850  133,592 
178,352182,404
Investment in unconsolidated entity-8,666
Other investment11,57210,327
Deferred income taxes9,8268,090
Other assets 1,878  1,865 
Total assets$787,814 $777,728 
 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$29,582$27,226
Accrued payroll13,37420,540
Accrued expenses9,70311,062
Accrued severance7761,033
Accrued income taxes8,19611,559
Current portion of long-term debt 94,000  84,000 
Total current liabilities155,631155,420
Accrued post-retirement benefits17,69222,338
Other long-term liabilities13,82012,412
Total equity 600,671  587,558 
Total liabilities and equity$787,814 $777,728 
 
Common shares issued and outstanding of
22,145,423 and 22,029,446 at March 30, 2013 and
December 29, 2012, respectively.
 
 
LITTELFUSE, INC.
Consolidated Statements of Comprehensive Income
(In thousands of USD, except per share data, unaudited)
     
 
For the Three Months Ended
 
March 29, 2013March 31, 2012
 
Net sales$170,918$160,578
 
Cost of sales 106,312  99,716 
 
Gross profit64,60660,862
 
Selling, general and administrative
expenses29,20228,409
Research and development expenses5,7155,161
Amortization of intangibles 1,572  1,468 
36,48935,038
 
Operating income28,11725,824
 
 
Interest expense376423
Impairment and loan loss in unconsolidated
affiliate10,678525
Other (income) expense, net (909) 101 
 
Income before income taxes17,97224,775
Income taxes 3,178  7,212 
 
Net income$14,794 $17,563 
 
Net income per share:
Basic$0.67 $0.81 
Diluted$0.66 $0.80 
 
Weighted average shares and
equivalent shares outstanding:
Basic 22,095 Read Full Story

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