Bel Reports Fourth Quarter and Full Year 2024 Results
Bel Fuse reported Q4 2024 results with net sales of $149.9 million, up from $140.0 million in Q4-23, though organic sales declined 7.8% excluding Enercon's $20.8 million contribution. Q4 showed a GAAP net loss of $1.8 million, compared to earnings of $12.0 million in Q4-23, while non-GAAP earnings were $19.0 million.
Full-year 2024 performance saw net sales of $534.8 million, down from $639.8 million in 2023, with organic sales declining 19.7%. Despite revenue challenges, gross profit margin improved to 37.8% from 33.7%. The company completed the acquisition of Enercon, making aerospace and defense its largest end market.
Looking ahead, Q1 2025 guidance projects sales between $144-154 million with gross margins of 36-38%. Management noted encouraging signs of demand recovery from networking and distribution partners, expecting a gradual rebound throughout 2025.
Bel Fuse ha riportato i risultati del quarto trimestre 2024 con vendite nette di 149,9 milioni di dollari, in aumento rispetto ai 140,0 milioni di dollari del quarto trimestre 2023, anche se le vendite organiche sono diminuite del 7,8% escludendo il contributo di 20,8 milioni di dollari di Enercon. Nel quarto trimestre si è registrata una perdita netta GAAP di 1,8 milioni di dollari, rispetto agli utili di 12,0 milioni di dollari nel quarto trimestre 2023, mentre gli utili non GAAP sono stati di 19,0 milioni di dollari.
Le performance dell'intero anno 2024 hanno visto vendite nette di 534,8 milioni di dollari, in calo rispetto ai 639,8 milioni di dollari del 2023, con una diminuzione delle vendite organiche del 19,7%. Nonostante le sfide sui ricavi, il margine di profitto lordo è migliorato al 37,8%, rispetto al 33,7%. L'azienda ha completato l'acquisizione di Enercon, rendendo l'aerospaziale e la difesa il suo mercato finale più grande.
Guardando al futuro, le previsioni per il primo trimestre 2025 prevedono vendite tra 144 e 154 milioni di dollari con margini lordi del 36-38%. La direzione ha notato segni incoraggianti di ripresa della domanda da parte dei partner di networking e distribuzione, aspettandosi un graduale recupero nel corso del 2025.
Bel Fuse informó los resultados del cuarto trimestre de 2024 con ventas netas de 149.9 millones de dólares, un aumento con respecto a los 140.0 millones de dólares del cuarto trimestre de 2023, aunque las ventas orgánicas cayeron un 7.8% excluyendo la contribución de 20.8 millones de dólares de Enercon. El cuarto trimestre mostró una pérdida neta GAAP de 1.8 millones de dólares, en comparación con ganancias de 12.0 millones de dólares en el cuarto trimestre de 2023, mientras que las ganancias no GAAP fueron de 19.0 millones de dólares.
El desempeño del año completo 2024 vio ventas netas de 534.8 millones de dólares, una disminución con respecto a los 639.8 millones de dólares en 2023, con una caída del 19.7% en las ventas orgánicas. A pesar de los desafíos de ingresos, el margen de ganancia bruta mejoró al 37.8% desde el 33.7%. La compañía completó la adquisición de Enercon, convirtiendo la aeroespacial y la defensa en su mayor mercado final.
De cara al futuro, la guía del primer trimestre de 2025 proyecta ventas entre 144 y 154 millones de dólares con márgenes brutos del 36-38%. La dirección señaló signos alentadores de recuperación de la demanda por parte de socios de redes y distribución, esperando una recuperación gradual a lo largo de 2025.
벨 퓨즈는 2024년 4분기 실적을 보고했으며, 순매출은 1억 4,990만 달러로, 2023년 4분기의 1억 4,000만 달러에서 증가했습니다. 그러나 에너콘의 2,080만 달러 기여를 제외할 경우 유기적 매출은 7.8% 감소했습니다. 4분기에는 GAAP 기준으로 180만 달러의 순손실이 발생했으며, 이는 2023년 4분기의 1,200만 달러 이익과 비교됩니다. 비GAAP 기준으로 이익은 1,900만 달러였습니다.
2024년 전체 연도 실적은 순매출 5억 3,480만 달러로, 2023년의 6억 3,980만 달러에서 감소했으며, 유기적 매출은 19.7% 감소했습니다. 수익의 어려움에도 불구하고 총 이익률은 33.7%에서 37.8%로 개선되었습니다. 회사는 에너콘 인수를 완료하여 항공우주 및 방산 부문이 가장 큰 최종 시장이 되었습니다.
앞으로의 전망으로는 2025년 1분기 매출이 1억 4,400만 달러에서 1억 5,400만 달러 사이로 예상되며, 총 마진은 36-38%로 예상됩니다. 경영진은 네트워킹 및 유통 파트너로부터의 수요 회복의 고무적인 신호를 언급하며, 2025년 동안 점진적인 반등을 기대하고 있습니다.
Bel Fuse a annoncé les résultats du quatrième trimestre 2024 avec des ventes nettes de 149,9 millions de dollars, en hausse par rapport à 140,0 millions de dollars au quatrième trimestre 2023, bien que les ventes organiques aient diminué de 7,8 % en excluant la contribution de 20,8 millions de dollars d'Enercon. Le quatrième trimestre a affiché une perte nette GAAP de 1,8 million de dollars, par rapport à un bénéfice de 12,0 millions de dollars au quatrième trimestre 2023, tandis que les bénéfices non GAAP s'élevaient à 19,0 millions de dollars.
La performance de l'année complète 2024 a enregistré des ventes nettes de 534,8 millions de dollars, en baisse par rapport à 639,8 millions de dollars en 2023, avec une diminution de 19,7 % des ventes organiques. Malgré les défis en matière de revenus, la marge brute a augmenté à 37,8 %, contre 33,7 %. L'entreprise a terminé l'acquisition d'Enercon, faisant de l'aérospatiale et de la défense son plus grand marché final.
En regardant vers l'avenir, les prévisions pour le premier trimestre 2025 projettent des ventes entre 144 et 154 millions de dollars avec des marges brutes de 36 à 38 %. La direction a noté des signes encourageants de reprise de la demande de la part de partenaires de réseau et de distribution, s'attendant à un rebond progressif tout au long de 2025.
Bel Fuse berichtete über die Ergebnisse des vierten Quartals 2024 mit Nettoumsätzen von 149,9 Millionen Dollar, ein Anstieg von 140,0 Millionen Dollar im vierten Quartal 2023, obwohl die organischen Umsätze um 7,8% zurückgingen, wenn man den Beitrag von 20,8 Millionen Dollar von Enercon ausschließt. Im vierten Quartal gab es einen GAAP-Nettoverlust von 1,8 Millionen Dollar, verglichen mit einem Gewinn von 12,0 Millionen Dollar im vierten Quartal 2023, während der Non-GAAP-Gewinn bei 19,0 Millionen Dollar lag.
Die Gesamtjahresleistung 2024 verzeichnete Nettoumsätze von 534,8 Millionen Dollar, ein Rückgang von 639,8 Millionen Dollar im Jahr 2023, wobei die organischen Umsätze um 19,7% zurückgingen. Trotz der Umsatzherausforderungen verbesserte sich die Bruttogewinnmarge auf 37,8% von 33,7%. Das Unternehmen hat die Übernahme von Enercon abgeschlossen, wodurch Luft- und Raumfahrt sowie Verteidigung zum größten Endmarkt wurden.
Für die Zukunft prognostiziert die Guidance für das erste Quartal 2025 Umsätze zwischen 144 und 154 Millionen Dollar mit Bruttomargen von 36-38%. Das Management stellte ermutigende Anzeichen einer Nachfragestärkung von Netzwerk- und Vertriebspartnern fest und erwartet eine allmähliche Erholung im Jahr 2025.
- Gross profit margin improved to 37.8% in 2024 from 33.7% in 2023
- Q4 2024 Adjusted EBITDA margin increased to 20.2% from 19.5% year-over-year
- Strategic acquisition of Enercon strengthens aerospace and defense market position
- Full-year organic sales declined 19.7% in 2024
- Q4 2024 GAAP net loss of $1.8 million versus $12.0 million profit in Q4-23
- Full-year GAAP net earnings decreased to $41.0 million from $73.8 million in 2023
Insights
The Q4 and FY2024 results reveal a company successfully executing a strategic pivot despite market headwinds. While organic revenue declined
The acquisition of Enercon marks a transformative moment, strategically positioning Bel in the aerospace and defense sector. This move provides important market diversification and reduces exposure to cyclical networking markets. The
Three key strategic initiatives warrant attention:
- The appointment of Uma Pingali as Global Head of Sales signals a shift toward a more coordinated global sales approach, potentially addressing the organic growth challenges
- Facility consolidation projects reflect ongoing operational optimization
- Enhanced focus on global procurement under new leadership suggests potential margin expansion opportunities
The Q1 2025 guidance of
The leadership transition from Daniel Bernstein to Farouq Tuweiq appears well-orchestrated, with clear strategic continuity in operational excellence and growth initiatives. This change, combined with the new organizational structure, positions Bel for its next growth phase while maintaining its focus on operational efficiency.
WEST ORANGE, N.J., Feb. 18, 2025 (GLOBE NEWSWIRE) -- Bel Fuse Inc. (Nasdaq: BELFA and BELFB) today announced preliminary financial results for the fourth quarter and full year of 2024.
Fourth Quarter 2024 Highlights
- Net sales of
$149.9 million compared to$140.0 million in Q4-23. Excluding$20.8 million of contribution from Enercon, organic sales down7.8% from Q4-23. - Gross profit margin of
37.5% , up from36.6% in Q4-23 - GAAP net loss attributable to Bel shareholders of
$1.8 million versus GAAP net earnings attributable to Bel shareholders of$12.0 million in Q4-23 - Non-GAAP net earnings attributable to Bel shareholders of
$19.0 million versus$19.5 million in Q4-23 - Adjusted EBITDA of
$30.3 million (20.2% of sales) as compared to$27.3 million (19.5% of sales) in Q4-23 - Completed acquisition of Enercon, making aerospace and defense Bel's largest end market served
Full Year 2024 Highlights
- Net sales of
$534.8 million compared to$639.8 million in 2023. Excluding contribution from Enercon, organic sales down19.7% . - Gross profit margin of
37.8% , up from33.7% in 2023 - GAAP net earnings attributable to Bel shareholders of
$41.0 million versus$73.8 million in 2023 - Non-GAAP net earnings attributable to Bel shareholders of
$72.1 million versus$89.6 million in 2023 - Adjusted EBITDA of
$101.9 million (19.0% of sales), down from$116.8 million (18.3% of sales) in 2023
"Bel's profitability levels remained strong throughout 2024 despite a challenging top line environment," said Daniel Bernstein, President and CEO. "Our recent initiatives in operational efficiencies and global mindset of financial discipline has strengthened Bel's foundation, enabling us to thrive despite the macro conditions we faced. We could not be more pleased with our acquisition of Enercon, both operationally and from a team perspective. We are excited to embark on 2025 as a new team, working together to progress on revenue synergy opportunities that we have identified across our two businesses. On a personal note, as recently announced, I look forward to working with Farouq in the coming months as I transition the roles of President and CEO to the next generation," concluded Mr. Bernstein.
Farouq Tuweiq, CFO, added, "Our priority for 2024 was to take actions to drive future top line growth and further refine our organizational structure to enhance operational efficiencies. In this regard, we were successful in achieving a series of initiatives. During the fourth quarter, we closed on our acquisition of Enercon, the largest transaction in Bel’s history. Enercon adds scale, diversity and a strong financial profile to Bel’s legacy business. Further, in October 2024, Uma Pingali joined Bel as our first Global Head of Sales. Under Uma’s leadership, we are laying the foundation of a new cohesive global sales structure and strategy aimed at driving top line growth across all product groups, geographies and end markets. On the internal initiative side, we announced two additional facility consolidation projects in 2024 and have initiated a strategic focus on global procurement with the hiring of Anubhav Gothi. Each of these actions completed in 2024 will serve to support Bel’s growth and profitability objectives for 2025.
"Looking ahead, we are encouraged to see the tide turning in terms of demand from our networking and distribution partners. We anticipate the rebound in these areas will be slow and steady throughout 2025. Based on information available today, GAAP net sales in the first quarter of 2025 are expected to be in the range of
Non-GAAP financial measures, such as Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA, adjust corresponding GAAP measures for provision for income taxes, other income/expense, net, interest income/expense, and depreciation and amortization, and also exclude, where applicable for the covered period presented in the financial statements, certain unusual or special items identified by management such as restructuring charges, gains/losses on sales of businesses and properties, acquisition related costs, impairment charges, noncontrolling interest ("NCI") adjustments from fair value to redemption value, and certain litigation costs. In addition, in the fourth quarter of 2024, we modified our presentation of Non-GAAP financial measures, including revising our definitions of Adjusted EBITDA and Non-GAAP EPS, to additionally exclude from these Non-GAAP measures (i) stock-based compensation, (ii) amortization of intangibles (which primarily relates to the amortization of finite-lived customer relationships and technology associated with the Company's historical acquisitions, including those associated with the recent acquisition of Enercon), and (iii) unrealized foreign currency exchange (gains) losses. We believe this change enhances investor insight into our operational performance. We have applied this modified definition of Adjusted EBITDA and Non-GAAP EPS to all periods presented. Non-GAAP adjusted net sales exclude expedite fee revenue. Please refer to the financial information included with this press release for reconciliations of GAAP financial measures to Non-GAAP financial measures and our explanation of why we present Non-GAAP financial measures.
Conference Call
Bel has scheduled a conference call for 8:30 a.m. ET on Wednesday, February 19, 2025 to discuss these results. To participate in the conference call, investors should dial 877-407-0784, or 201-689-8560 if dialing internationally. The presentation will additionally be broadcast live over the Internet and will be available at https://ir.belfuse.com/events-and-presentations. The webcast will be available via replay for a period of at least 30 days at this same Internet address. For those unable to access the live call, a telephone replay will be available at 844-512-2921, or 412-317-6671 if dialing internationally, using access code 13750153 after 12:30 pm ET, also for 30 days.
About Bel
Bel (www.belfuse.com) designs, manufactures and markets a broad array of products that power, protect and connect electronic circuits. These products are primarily used in the networking, telecommunications, computing, general industrial, high-speed data transmission, defense, commercial aerospace, transportation and eMobility industries. Bel's portfolio of products also finds application in the automotive, medical, broadcasting and consumer electronics markets. Bel's product groups include Power Solutions and Protection (front-end, board-mount and industrial power products, module products and circuit protection), Connectivity Solutions (expanded beam fiber optic, copper-based, RF and RJ connectors and cable assemblies), and Magnetic Solutions (integrated connector modules, power transformers, power inductors and discrete components). The Company operates facilities around the world.
Company Contact:
Farouq Tuweiq
Chief Financial Officer
ir@belf.com
Investor Contact:
Three Part Advisors
Jean Marie Young, Managing Director or Steven Hooser, Partner
631-418-4339
jyoung@threepa.com; shooser@threepa.com
Cautionary Language Concerning Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, our guidance for the first quarter of 2025; our statements regarding our expectations for future periods generally including anticipated financial performance, projections and trends for the remainder of the 2025 year ahead and other future periods; our statements regarding future events, performance, plans, intentions, beliefs, expectations and estimates, including statements regarding matters such as trends and expectations as to our sales, gross margin, products, product groups, customers, geographies and end markets; statements about the anticipated benefits of the recently-closed Enercon acquisition, including our beliefs about the potential future advantages of the acquisition for Bel’s operations, team, and with respect to revenue synergy opportunities; statements expressing management’s optimism for 2025 and for the future generally; statements about the process of transitioning the roles of President and CEO to the next generation; statements regarding Bel’s plans and intentions in respect of corporate projects and objectives, including plans for initiatives and efficiencies, and including statements about the intention to drive future top line growth and refine the organizational structure to enhance operational efficiencies; statements about the anticipated future contributions of new employees recently joining Bel and the role of such newly-created positions in the corporate team; statements about Bel’s sales structure and strategy aimed at driving top line growth across product groups, geographies and end markets; statements about facility consolidation projects and strategic focus on global procurement, and the anticipated benefits thereof including with respect to supporting Bel’s growth and profitability objectives for 2025; Anticipated demand from networking and distribution partners; size and capabilities of the organization; statements about executing on growth opportunities; statements regarding our expectations and beliefs regarding trends in the Company's business and industry and the markets in which Bel operates, and about broader market trends and the macroeconomic environment generally, and other statements regarding the Company's positioning, its strategies, future progress, investments, plans, targets, goals, and other focuses and initiatives, and the expected timing and potential benefits thereof. These forward-looking statements are made as of the date of this release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “forecast,” “outlook,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Bel’s control. Bel’s actual results could differ materially from those stated or implied in our forward-looking statements (including without limitation any of Bel’s projections) due to a number of factors, including but not limited to, difficulties associated with integrating previously acquired companies, including any unanticipated difficulties, or unexpected or higher than anticipated expenditures, relating to the Enercon acquisition which closed in November 2024, and including, without limitation, the risk that Bel is unable to integrate the Enercon business successfully or difficulties that result in the failure to realize the expected benefits and synergies within the expected time period (if at all); the possibility that the Bel’s intended acquisition of the remaining
Non-GAAP Financial Measures
The Non-GAAP financial measures identified in this press release as well as in the supplementary information to this press release (Non-GAAP adjusted net sales, Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA) are not measures of performance under accounting principles generally accepted in the United States of America ("GAAP"). These measures should not be considered a substitute for, and the reader should also consider, income from operations, net earnings, earnings per share and other measures of performance as defined by GAAP as indicators of our performance or profitability. Our non-GAAP measures may not be comparable to other similarly-titled captions of other companies due to differences in the method of calculation. We present results adjusted to exclude the effects of certain unusual or special items and their related tax impact that would otherwise be included under U.S. GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. For additional information about our use of non-GAAP financial measures in connection with our Incentive Compensation Program for 2023, please see the Executive Compensation discussion appearing in our Definitive Proxy Statement filed with the Securities and Exchange Commission on April 1, 2024.
Website Information
We routinely post important information for investors on our website, www.belfuse.com, in the "Investor Relations" section. We use our website as a means of disclosing material, otherwise non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, Securities and Exchange Commission (SEC) filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
[Financial tables follow]
Bel Fuse Inc. Supplementary Information(1) Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net sales | $ | 149,859 | $ | 140,010 | $ | 534,792 | $ | 639,813 | ||||||||
Cost of sales | 93,652 | 88,827 | 332,434 | 423,964 | ||||||||||||
Gross profit | 56,207 | 51,183 | 202,358 | 215,849 | ||||||||||||
As a % of net sales | 37.5 | % | 36.6 | % | 37.8 | % | 33.7 | % | ||||||||
Research and development costs | 6,934 | 5,966 | 23,586 | 22,487 | ||||||||||||
Selling, general and administrative expenses | 34,831 | 24,942 | 110,616 | 99,091 | ||||||||||||
As a % of net sales | 23.2 | % | 17.8 | % | 20.7 | % | 15.5 | % | ||||||||
Impairment of CUI tradename | 400 | - | 400 | - | ||||||||||||
Restructuring charges | 1,669 | 3,808 | 3,459 | 10,114 | ||||||||||||
Gain on sale of property | - | - | - | (3,819 | ) | |||||||||||
Income from operations | 12,373 | 16,467 | 64,297 | 87,976 | ||||||||||||
As a % of net sales | 8.3 | % | 11.8 | % | 12.0 | % | 13.8 | % | ||||||||
Gain on sale of Czech Republic business | - | - | - | 980 | ||||||||||||
Interest expense | (2,815 | ) | (448 | ) | (4,078 | ) | (2,850 | ) | ||||||||
Interest income | 1,013 | - | 4,754 | - | ||||||||||||
Other expense, net | (3,186 | ) | (2,520 | ) | (3,165 | ) | (2,806 | ) | ||||||||
Earnings before income taxes | 7,385 | 13,499 | 61,808 | 83,300 | ||||||||||||
Provision for income taxes | 953 | 1,463 | 12,616 | 9,469 | ||||||||||||
Effective tax rate | 12.9 | % | 10.8 | % | 20.4 | % | 11.4 | % | ||||||||
Net earnings | $ | 6,432 | $ | 12,036 | $ | 49,192 | $ | 73,831 | ||||||||
As a % of net sales | 4.3 | % | 8.6 | % | 9.2 | % | 11.5 | % | ||||||||
Less: Net earnings attributable to noncontrolling interest | 484 | - | 484 | - | ||||||||||||
Redemption value adjustment attributable to noncontrolling interest | 7,748 | - | 7,748 | - | ||||||||||||
Net (loss) earnings attributable to Bel Fuse Shareholders | $ | (1,800 | ) | $ | 12,036 | $ | 40,960 | $ | 73,831 | |||||||
Weighted average number of shares outstanding: | ||||||||||||||||
Class A common shares - basic and diluted | 2,115 | 2,142 | 2,124 | 2,142 | ||||||||||||
Class B common shares - basic and diluted | 10,429 | 10,628 | 10,491 | 10,634 | ||||||||||||
Net (loss) earnings per common share: | ||||||||||||||||
Class A common shares - basic and diluted | $ | (0.14 | ) | $ | 0.90 | $ | 3.09 | $ | 5.52 | |||||||
Class B common shares - basic and diluted | $ | (0.14 | ) | $ | 0.95 | $ | 3.28 | $ | 5.83 | |||||||
(1) The supplementary information included in this press release for 2024 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. | ||||||||||||||||
Bel Fuse Inc. Supplementary Information(1) Condensed Consolidated Balance Sheets (in thousands, unaudited) | ||||||||
December 31, 2024 | December 31, 2023 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 68,253 | $ | 89,371 | ||||
Held to maturity U.S. Treasury securities | 950 | 37,548 | ||||||
Accounts receivable, net | 111,376 | 84,129 | ||||||
Inventories | 161,370 | 136,540 | ||||||
Other current assets | 31,581 | 33,890 | ||||||
Total current assets | 373,530 | 381,478 | ||||||
Property, plant and equipment, net | 47,879 | 36,533 | ||||||
Right-of-use assets | 25,125 | 20,481 | ||||||
Related-party note receivable | 2,937 | 2,152 | ||||||
Equity method investment | 9,265 | 10,282 | ||||||
Goodwill and other intangible assets, net | 439,984 | 76,033 | ||||||
Other assets | 51,069 | 44,672 | ||||||
Total assets | $ | 949,789 | $ | 571,631 | ||||
Total liabilities, redeemable noncontrolling interests and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 49,182 | $ | 40,441 | ||||
Operating lease liability, current | 7,954 | 6,350 | ||||||
Other current liabilities | 70,933 | 63,818 | ||||||
Total current liabilities | 128,069 | 110,609 | ||||||
Long-term debt | 287,500 | 60,000 | ||||||
Operating lease liability, long-term | 17,763 | 14,212 | ||||||
Other liabilities | 75,295 | 46,252 | ||||||
Total liabilities | 508,627 | 231,073 | ||||||
Redeemable noncontrolling interests | 80,586 | - | ||||||
Stockholders' equity | 360,576 | 340,558 | ||||||
Total liabilities, redeemable noncontrolling interests and stockholders' equity | $ | 949,789 | $ | 571,631 | ||||
(1) The supplementary information included in this press release for 2024 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. | ||||||||
Bel Fuse Inc. Supplementary Information(1) Condensed Consolidated Statements of Cash Flows (in thousands, unaudited) | ||||||||
Year Ended | ||||||||
December 31, | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities: | ||||||||
Net earnings | $ | 49,192 | $ | 73,831 | ||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 16,457 | 13,312 | ||||||
Stock-based compensation | 3,738 | 3,486 | ||||||
Amortization of deferred financing costs | 151 | 33 | ||||||
Deferred income taxes | (6,267 | ) | (3,872 | ) | ||||
Net unrealized losses on foreign currency revaluation | 1,456 | 1,356 | ||||||
Gain on sale of property | - | (2,117 | ) | |||||
Gain on sale of Czech Republic business | - | (980 | ) | |||||
Other, net | 2,347 | (1,037 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | (6,817 | ) | 22,500 | |||||
Unbilled receivables | 7,800 | 5,451 | ||||||
Inventories | 15,121 | 33,613 | ||||||
Accounts payable | 139 | (22,745 | ) | |||||
Accrued expenses | (7,068 | ) | 5,356 | |||||
Accrued restructuring costs | 215 | (1,228 | ) | |||||
Income taxes payable | (1,009 | ) | (4,976 | ) | ||||
Other operating assets/liabilities, net | 2,199 | (13,634 | ) | |||||
Net cash provided by operating activities | 77,654 | 108,349 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property, plant and equipment | (14,108 | ) | (12,126 | ) | ||||
Purchases of held to maturity U.S. Treasury securities | (131,309 | ) | (59,992 | ) | ||||
Proceeds from held to maturity securities | 167,907 | 19,918 | ||||||
Payment for equity method investment | - | (10,282 | ) | |||||
Investment in related party notes receivable | (785 | ) | (2,152 | ) | ||||
Proceeds from sale of property, plant and equipment | 883 | 6,036 | ||||||
Payment of acquisition, net of cash acquired | (324,071 | ) | ||||||
Proceeds from sale of business | - | 5,063 | ||||||
Net cash used in investing activities | (301,483 | ) | (53,535 | ) | ||||
Cash flows from financing activities: | ||||||||
Dividends paid to common stockholders | (3,453 | ) | (3,492 | ) | ||||
Deferred financing costs | (1,736 | ) | - | |||||
Repayments under revolving credit line | (15,000 | ) | (40,000 | ) | ||||
Borrowings under revolving credit line | 242,500 | 5,000 | ||||||
Purchases of common stock | (16,053 | ) | (105 | ) | ||||
Net cash provided by (used in) financing activities | 206,258 | (38,597 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (3,547 | ) | 2,888 | |||||
Net (decrease) increase in cash and cash equivalents | (21,118 | ) | 19,105 | |||||
Cash and cash equivalents - beginning of period | 89,371 | 70,266 | ||||||
Cash and cash equivalents - end of period | $ | 68,253 | $ | 89,371 | ||||
Supplementary information: | ||||||||
Cash paid during the period for: | ||||||||
Income taxes, net of refunds received | $ | 22,952 | $ | 25,056 | ||||
Interest payments | $ | 5,795 | $ | 4,729 | ||||
ROU assets obtained in exchange for lease obligations | $ | 6,870 | $ | 5,999 | ||||
(1) The supplementary information included in this press release for 2024 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. | ||||||||
Bel Fuse Inc. Supplementary Information(1) Product Group Highlights (dollars in thousands, unaudited) | ||||||||||||||||||||||||
Sales | Gross Margin | |||||||||||||||||||||||
Q4-24 | Q4-23 | % Change | Q4-24 | Q4-23 | Basis Point Change | |||||||||||||||||||
Power Solutions and Protection | $ | 78,073 | $ | 68,971 | 13.2 | % | 40.6 | % | 40.2 | % | 40 | |||||||||||||
Connectivity Solutions | 52,548 | 50,562 | 3.9 | % | 36.6 | % | 29.3 | % | 730 | |||||||||||||||
Magnetic Solutions | 19,238 | 20,477 | -6.1 | % | 29.1 | % | 17.1 | % | 1,200 | |||||||||||||||
Total | $ | 149,859 | $ | 140,010 | 7.0 | % | 37.5 | % | 36.6 | % | 90 |
Sales | Gross Margin | |||||||||||||||||||||||
FY 2024 | FY 2023 | % Change | FY 2024 | FY 2023 | Basis Point Change | |||||||||||||||||||
Power Solutions and Protection | $ | 245,551 | 314,105 | -21.8 | % | 42.4 | % | 38.1 | % | 430 | ||||||||||||||
Connectivity Solutions | 220,370 | 210,572 | 4.7 | % | 37.1 | % | 34.2 | % | 290 | |||||||||||||||
Magnetic Solutions | 68,871 | 115,136 | -40.2 | % | 25.3 | % | 22.0 | % | 330 | |||||||||||||||
Total | $ | 534,792 | $ | 639,813 | -16.4 | % | 37.8 | % | 33.7 | % | 410 | |||||||||||||
(1) The supplementary information included in this press release for 2024 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. | ||||||||||||||||||||||||
Bel Fuse Inc. Supplementary Information(1) Reconciliation of GAAP Net Sales to Non-GAAP Adjusted Net Sales(2) Reconciliation of GAAP Net Earnings to Non-GAAP Operating Income and Adjusted EBITDA(2)(3) (in thousands, unaudited) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
GAAP net sales | $ | 149,859 | $ | 140,010 | $ | 534,792 | $ | 639,813 | ||||||||
Expedite fee revenue | - | 425 | 57 | 14,850 | ||||||||||||
Non-GAAP adjusted net sales | $ | 149,859 | $ | 139,585 | $ | 534,735 | $ | 624,963 |
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
GAAP Net earnings | $ | 6,432 | $ | 12,036 | $ | 49,192 | $ | 73,831 | ||||||||
Provision for income taxes | 953 | 1,463 | 12,616 | 9,469 | ||||||||||||
Other income/expense, net | 3,186 | 2,520 | 3,165 | 2,806 | ||||||||||||
Interest income | (1,013 | ) | - | (4,754 | ) | - | ||||||||||
Interest expense | 2,815 | 448 | 4,078 | 2,850 | ||||||||||||
GAAP Operating Income | $ | 12,373 | $ | 16,467 | $ | 64,297 | $ | 88,956 | ||||||||
Restructuring charges | 1,669 | 3,808 | 3,459 | 10,114 | ||||||||||||
Acquisition related costs | 8,592 | - | 12,884 | - | ||||||||||||
Amortization of inventory step-up | 639 | - | 639 | - | ||||||||||||
Impairment of CUI tradename | 400 | - | 400 | - | ||||||||||||
Loss on liquidation of foreign subsidiary | - | 2,724 | - | 2,724 | ||||||||||||
MPS litigation costs | - | 128 | - | 3,031 | ||||||||||||
Gain on sale of Czech Republic business | - | - | - | (980 | ) | |||||||||||
Gain on sale of properties | - | - | - | (3,819 | ) | |||||||||||
Stock compensation | 956 | 774 | 3,738 | 3,486 | ||||||||||||
Non-GAAP Operating Income | $ | 24,629 | $ | 23,901 | $ | 85,417 | $ | 103,512 | ||||||||
Depreciation and amortization | 5,698 | 3,350 | 16,457 | 13,312 | ||||||||||||
Adjusted EBITDA | $ | 30,327 | $ | 27,251 | $ | 101,874 | $ | 116,824 | ||||||||
% of net sales | 20.2 | % | 19.5 | % | 19.0 | % | 18.3 | % | ||||||||
(1) The supplementary information included in this press release for 2024 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 adjusted net sales, Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income 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 believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. See the section above captioned “Non-GAAP Financial Measures” for additional information. | ||||||||||||||||
(3) In the fourth quarter of 2024, we modified our presentation of Non-GAAP financial measures, including revising our definitions of Adjusted EBITDA and Non-GAAP EPS, to additionally exclude from these Non-GAAP measures (i) stock-based compensation, (ii) amortization of intangibles (which primarily relates to the amortization of finite-lived customer relationships and technology associated with the Company's historical acquisitions, including those associated with the recent acquisition of Enercon), and (iii) unrealized foreign currency exchange (gains) losses. We believe this change enhances investor insight into our operational performance. We have applied this modified definition of Adjusted EBITDA and Non-GAAP EPS to all periods presented. | ||||||||||||||||
Bel Fuse Inc. Supplementary Information(1) Reconciliation of GAAP Measures to Non-GAAP Measures(2)(4) (in thousands, except per share data) (unaudited) | ||||||||||||||||||||||||||||||||||||||||
The following tables detail the impact that certain unusual or special items had on the Company's net earnings per common Class A and Class B basic and diluted shares ("EPS") and the line items in which these items were included on the consolidated statements of operations. | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||
Reconciling Items | Earnings before taxes | Provision for income taxes | Net Earnings Attributable to Bel Fuse Shareholders | Class A EPS(3) | Class B EPS(3) | Earnings before taxes | Provision for income taxes | Net Earnings Attributable to Bel Fuse Shareholders | Class A EPS(3) | Class B EPS(3) | ||||||||||||||||||||||||||||||
GAAP measures | $ | 7,385 | $ | 953 | $ | (1,800 | ) | $ | (0.14 | ) | $ | (0.14 | ) | $ | 13,499 | $ | 1,463 | $ | 12,036 | $ | 0.90 | $ | 0.95 | |||||||||||||||||
Restructuring charges | 1,669 | 270 | 1,399 | 0.11 | 0.11 | 3,808 | 675 | 3,133 | 0.24 | 0.25 | ||||||||||||||||||||||||||||||
Acquisition related costs | 8,592 | 1,516 | 7,076 | 0.54 | 0.57 | - | - | - | - | - | ||||||||||||||||||||||||||||||
Redemption value adjustment on redeemable NCI | - | - | 7,748 | 0.59 | 0.62 | - | - | - | - | - | ||||||||||||||||||||||||||||||
Amortization of inventory step-up | 639 | 147 | 492 | 0.04 | 0.04 | - | - | - | - | - | ||||||||||||||||||||||||||||||
Impairment of CUI tradename | 400 | 92 | 308 | 0.02 | 0.02 | - | - | - | - | - | ||||||||||||||||||||||||||||||
Loss on liquidation of foreign subsidiary | - | - | - | - | - | 2,724 | 681 | 2,043 | 0.15 | 0.16 | ||||||||||||||||||||||||||||||
MPS litigation costs | - | - | - | - | - | 128 | 29 | 99 | 0.01 | 0.01 | ||||||||||||||||||||||||||||||
Share-based compensation | 956 | 197 | 759 | 0.06 | 0.06 | 774 | 160 | 614 | 0.05 | 0.05 | ||||||||||||||||||||||||||||||
Amortization of intangibles | 2,843 | 493 | 2,349 | 0.18 | 0.19 | 1,160 | 254 | 906 | 0.07 | 0.07 | ||||||||||||||||||||||||||||||
Unrealized foreign currency exchange (gains) losses | 908 | 201 | 707 | 0.05 | 0.06 | 829 | 203 | 626 | 0.05 | 0.05 | ||||||||||||||||||||||||||||||
Non-GAAP measures | $ | 23,392 | $ | 3,869 | $ | 19,039 | $ | 1.45 | $ | 1.53 | $ | 22,922 | $ | 3,465 | $ | 19,457 | $ | 1.46 | $ | 1.54 |
Year Ended December 31, 2024 | Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||
Reconciling Items | Earnings before taxes | Provision for income taxes | Net Earnings Attributable to Bel Fuse Shareholders | Class A EPS(3) | Class B EPS(3) | Earnings before taxes | Provision for income taxes | Net Earnings Attributable to Bel Fuse Shareholders | Class A EPS(3) | Class B EPS(3) | ||||||||||||||||||||||||||||||
GAAP measures | $ | 61,808 | $ | 12,616 | $ | 40,960 | $ | 3.09 | $ | 3.28 | $ | 83,300 | $ | 9,469 | $ | 73,831 | $ | 5.52 | $ | 5.83 | ||||||||||||||||||||
Restructuring charges | 3,459 | 587 | 2,872 | 0.22 | 0.23 | 10,114 | 1,682 | 8,432 | 0.63 | 0.67 | ||||||||||||||||||||||||||||||
Acquisition related costs | 12,884 | 2,503 | 10,381 | 0.79 | 0.83 | - | - | - | - | - | ||||||||||||||||||||||||||||||
Redemption value adjustment on redeemable NCI | - | - | 7,748 | 0.59 | 0.62 | - | - | - | - | - | ||||||||||||||||||||||||||||||
Amortization of inventory step-up | 639 | 147 | 492 | 0.04 | 0.04 | - | - | - | - | - | ||||||||||||||||||||||||||||||
Impairment of CUI tradename | 400 | 92 | 308 | 0.02 | 0.02 | - | - | - | - | - | ||||||||||||||||||||||||||||||
MPS litigation costs | - | - | - | - | - | 3,031 | 696 | 2,335 | 0.18 | 0.18 | ||||||||||||||||||||||||||||||
Gain on sale of Czech Republic business | - | - | - | - | - | (980 | ) | (49 | ) | (931 | ) | (0.07 | ) | (0.07 | ) | |||||||||||||||||||||||||
Gain on sale of properties | - | - | - | - | - | (3,819 | ) | (763 | ) | (3,056 | ) | (0.23 | ) | (0.24 | ) | |||||||||||||||||||||||||
Loss on liquidation of foreign subsidiary | - | - | - | - | - | 2,724 | 681 | 2,043 | 0.15 | 0.16 | ||||||||||||||||||||||||||||||
Share-based compensation | 3,738 | 770 | 2,968 | 0.23 | 0.24 | 3,486 | 718 | 2,768 | 0.21 | 0.22 | ||||||||||||||||||||||||||||||
Amortization of intangibles | 6,537 | 1,236 | 5,301 | 0.40 | 0.42 | 4,663 | 1,019 | 3,644 | 0.28 | 0.29 | ||||||||||||||||||||||||||||||
Unrealized foreign currency exchange (gains) losses | 1,455 | 340 | 1,115 | 0.08 | 0.09 | 831 | 270 | 561 | 0.04 | 0.04 | ||||||||||||||||||||||||||||||
Non-GAAP measures | $ | 90,919 | $ | 18,291 | $ | 72,144 | $ | 5.47 | $ | 5.77 | $ | 103,350 | $ | 13,723 | $ | 89,627 | $ | 6.72 | $ | 7.08 | ||||||||||||||||||||
(1)The supplementary information included in this press release for 2024 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 adjusted net sales, Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income 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 believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. See the section above captioned “Non-GAAP Financial Measures” for additional information. | ||||||||||||||||||||||||||||||||||||||||
(3)Individual amounts of earnings per share may not agree to the total due to rounding. | ||||||||||||||||||||||||||||||||||||||||
(4)In the fourth quarter of 2024, we modified our presentation of Non-GAAP financial measures, including revising our definitions of Adjusted EBITDA and Non-GAAP EPS, to additionally exclude from these Non-GAAP measures (i) stock-based compensation, (ii) amortization of intangibles (which primarily relates to the amortization of finite-lived customer relationships and technology associated with the Company's historical acquisitions, including those associated with the recent acquisition of Enercon), and (iii) unrealized foreign currency exchange (gains) losses. We believe this change enhances investor insight into our operational performance. We have applied this modified definition of Adjusted EBITDA and Non-GAAP EPS to all periods presented. | ||||||||||||||||||||||||||||||||||||||||
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FAQ
What was Bel Fuse's (BELFA) Q4 2024 revenue performance?
How did BELFA's gross profit margin change in 2024?
What is Bel Fuse's (BELFA) revenue guidance for Q1 2025?
How did the Enercon acquisition impact BELFA's Q4 2024 results?