Bel Reports Second Quarter 2024 Results
Bel Fuse (Nasdaq: BELFA, BELFB) announced its Q2 2024 financial results with net sales of $133.2 million, down from $168.8 million in Q2-23. The company reported a gross profit margin of 40.1%, compared to 32.9% in Q2-23. Net earnings were $18.8 million, a decrease from $27.8 million in the same quarter last year. Adjusted EBITDA stood at $27.4 million (20.6% of sales) versus $28.6 million (17.0% of sales) in Q2-23.
Bel repurchased 126,552 shares at a cost of $7.9 million. Q3 2024 guidance expects net sales between $118-$126 million and gross margins of 34-36%. CFO Farouq Tuweiq cited trade restrictions and continued softness in networking and distribution as factors affecting future performance. The company anticipates positive momentum towards the end of 2024.
Bel Fuse (Nasdaq: BELFA, BELFB) ha annunciato i suoi risultati finanziari per il Q2 2024, registrando vendite nette di 133,2 milioni di dollari, in calo rispetto ai 168,8 milioni di dollari del Q2-23. L'azienda ha riportato un margine di profitto lordo del 40,1%, rispetto al 32,9% nel Q2-23. Gli utili netti sono stati di 18,8 milioni di dollari, in diminuzione rispetto ai 27,8 milioni di dollari dello stesso trimestre dell'anno scorso. EBITDA rettificato si è attestato a 27,4 milioni di dollari (20,6% delle vendite) rispetto ai 28,6 milioni di dollari (17,0% delle vendite) nel Q2-23.
Bel ha riacquistato 126.552 azioni a un costo di 7,9 milioni di dollari. La previsione per il Q3 2024 prevede vendite nette tra 118 e 126 milioni di dollari e margini lordi del 34-36%. Il CFO Farouq Tuweiq ha citato le restrizioni commerciali e la continua debolezza nel networking e nella distribuzione come fattori che influenzano le prestazioni future. L'azienda prevede un'inerzia positiva verso la fine del 2024.
Bel Fuse (Nasdaq: BELFA, BELFB) anunció sus resultados financieros del Q2 2024, con ventas netas de 133.2 millones de dólares, por debajo de los 168.8 millones de dólares en el Q2-23. La compañía reportó un margen de utilidad bruta del 40.1%, en comparación con el 32.9% en el Q2-23. Las ganancias netas fueron de 18.8 millones de dólares, una disminución de 27.8 millones de dólares en el mismo trimestre del año pasado. El EBITDA ajustado se situó en 27.4 millones de dólares (20.6% de las ventas) frente a 28.6 millones de dólares (17.0% de las ventas) en el Q2-23.
Bel recompró 126,552 acciones a un costo de 7.9 millones de dólares. La guía para el Q3 2024 espera ventas netas entre 118 y 126 millones de dólares y márgenes brutos del 34-36%. El CFO Farouq Tuweiq citó restricciones comerciales y una continua debilidad en el networking y la distribución como factores que afectan el desempeño futuro. La compañía anticipa un impulso positivo hacia finales de 2024.
벨 퓨즈 (Nasdaq: BELFA, BELFB)는 2024년 2분기 재무 결과를 발표하며 순매출이 1억 3,320만 달러로, 지난해 2분기의 1억 6,880만 달러에서 감소했다고 밝혔습니다. 이 회사는 매출 총 이익률이 40.1%로, 지난해 2분기의 32.9%에 비해 개선된 수치를 기록했다고 보고했습니다. 순이익은 1,880만 달러로, 지난해 같은 분기의 2,780만 달러에서 줄어들었습니다. 조정 EBITDA는 2,740만 달러(매출의 20.6%)로, 지난해 2분기 2,860만 달러(매출의 17.0%)와 비교되었습니다.
벨은 126,552주를 790만 달러에 재매입했습니다. 2024년 3분기 전망은 순매출이 1억 1,800만 달러에서 1억 2,600만 달러 사이이고, 총 마진이 34-36%로 예상하고 있습니다. CFO 파루크 투웨익은 무역 제한과 네트워킹 및 유통의 지속적인 부진을 미래 성과에 영향을 미치는 요인으로 지적했습니다. 회사는 2024년 말까지 긍정적인 증가세를 예상하고 있습니다.
Bel Fuse (Nasdaq: BELFA, BELFB) a annoncé ses résultats financiers du 2ème trimestre 2024, avec des chiffres d'affaires nets de 133,2 millions de dollars, en baisse par rapport à 168,8 millions de dollars au 2ème trimestre 2023. La société a fait état d'une marge brute de 40,1%, contre 32,9% au 2ème trimestre 2023. Les bénéfices nets se sont chiffrés à 18,8 millions de dollars, en baisse par rapport à 27,8 millions de dollars au même trimestre de l'année précédente. L’EBITDA ajusté s'élevait à 27,4 millions de dollars (20,6% des ventes) contre 28,6 millions de dollars (17,0% des ventes) au 2ème trimestre 2023.
Bel a racheté 126 552 actions pour un coût de 7,9 millions de dollars. Les prévisions pour le 3ème trimestre 2024 anticipent des ventes nettes entre 118 et 126 millions de dollars et des marges brutes de 34-36%. Le directeur financier Farouq Tuweiq a cité des restrictions commerciales et une faiblesse persistante dans les réseaux et la distribution comme des facteurs affectant les performances futures. L'entreprise prévoit un momentum positif d'ici la fin de 2024.
Bel Fuse (Nasdaq: BELFA, BELFB) gab die Finanzzahlen für Q2 2024 bekannt und verzeichnete Nettoverkäufe von 133,2 Millionen Dollar, im Rückgang von 168,8 Millionen Dollar im Q2-23. Das Unternehmen berichtete von einer Bruttogewinnmarge von 40,1%, verglichen mit 32,9% im Q2-23. Der Nettogewinn betrug 18,8 Millionen Dollar, ein Rückgang gegenüber 27,8 Millionen Dollar im gleichen Quartal des Vorjahres. Das bereinigte EBITDA lag bei 27,4 Millionen Dollar (20,6% der Verkäufe) im Vergleich zu 28,6 Millionen Dollar (17,0% der Verkäufe) im Q2-23.
Bel hat 126.552 Aktien zu einem Preis von 7,9 Millionen Dollar zurückgekauft. Die Prognose für Q3 2024 erwartet Nettoverkäufe zwischen 118 und 126 Millionen Dollar sowie Bruttomargen von 34-36%. CFO Farouq Tuweiq erwähnte Handelsbeschränkungen und anhaltende Schwäche im Netzwerk- und Vertriebsbereich als Faktoren, die die zukünftige Leistung beeinflussen. Das Unternehmen erwartet bis Ende 2024 eine positive Entwicklung.
- Gross profit margin increased to 40.1% from 32.9% in Q2-23.
- Adjusted EBITDA margin improved to 20.6% of sales, up from 17.0% in Q2-23.
- Net sales ($133.2 million) hit the higher end of guidance.
- Net sales fell to $133.2 million from $168.8 million in Q2-23.
- Net earnings dropped to $18.8 million from $27.8 million in Q2-23.
- Q3-24 guidance reflects potential downward pressure with net sales expected between $118-$126 million.
Insights
Bel Fuse's Q2 2024 results present a mixed picture, with some positive developments amidst ongoing challenges. Net sales of
The company's Adjusted EBITDA of
Looking ahead, Bel Fuse's Q3 2024 guidance of
Investors should note the company's proactive approach to capital allocation, with 126,552 shares repurchased at
Bel Fuse's Q2 results reflect broader industry trends, particularly in the networking and distribution sectors. The company's performance in commercial air, defense and rail markets partially offset weakness in other areas, highlighting the importance of diversification in the current economic climate.
The modest sequential recovery in the Magnetic Solutions segment from Q1 to Q2 2024 is a positive sign, potentially indicating the beginning of a market turnaround. However, the continued softness in networking and distribution, expected to persist until later in the year, suggests a prolonged recovery period for these sectors.
The impact of recently-enacted trade restrictions on a former supplier is noteworthy, potentially affecting
Management's cautiously optimistic outlook, citing potential positive momentum towards the end of 2024, aligns with broader industry expectations. The consensus from a recent industry conference suggesting "the worst is behind us" in the distribution sector could signal a turning point, but investors should remain cautious given the ongoing challenges in the near term.
As the company navigates these market dynamics, its focus on profitable top-line growth and margin improvement will be crucial. The ability to maintain strong gross margins despite revenue declines demonstrates resilience, but sustained growth will be necessary to drive long-term shareholder value.
Continued Gross Margin Performance with Sales Above Mid-Point of Expected Range
Provides Q3-24 Sales and Gross Margin Guidance
WEST ORANGE, N.J., July 24, 2024 (GLOBE NEWSWIRE) -- Bel Fuse Inc. (Nasdaq: BELFA and BELFB) today announced preliminary financial results for the second quarter of 2024.
Second Quarter 2024 Highlights
- Net sales of
$133.2 million compared to$168.8 million in Q2-23 - Gross profit margin of
40.1% , up from32.9% in Q2-23 - Net earnings of
$18.8 million versus$27.8 million in Q2-23 - Adjusted EBITDA of
$27.4 million (20.6% of sales) as compared to$28.6 million (17.0% of sales) in Q2-23 - Repurchased 126,552 shares of Bel stock at an aggregate cost of
$7.9 million in Q2-24
“We are pleased with our second quarter results, with sales achieving the higher end of our guidance coupled with continued margin improvement,” said Daniel Bernstein, President and CEO. “The factors contributing to the second quarter were as expected, with solid results within the commercial air, defense and rail end markets, which partially offset the lower volume of sales into our networking customers and distribution partners during the quarter as they continue to work through inventory on hand,” concluded Mr. Bernstein.
Farouq Tuweiq, CFO, added “Consistent with our views expressed last quarter, we expect more positive momentum closer to the end of 2024. Our Magnetic Solutions segment, while down from Q2-23, showed modest recovery sequentially from the first quarter of this year which is a positive sign. On the distribution front, the consensus takeaway from an industry conference in May was encouraging, and indicated that the worst is behind us.
“Looking to the third quarter, in addition to the typical seasonal slowdown in Europe, we anticipate some downward pressure on our Power sales given recently-enacted trade restrictions on one of our former suppliers previously used for our Power segment, which had historically supported approximately
Non-GAAP financial measures, such as Non-GAAP net earnings, Non-GAAP EPS, EBITDA and Adjusted EBITDA, adjust corresponding GAAP measures for provision for/benefit from income taxes, interest 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 and liquidation of foreign subsidiary, and certain litigation costs. 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 Thursday, July 25, 2024 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 13747709 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, military, 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 Magnetic Solutions (integrated connector modules, power transformers, power inductors and discrete components), Power Solutions and Protection (front-end, board-mount and industrial power products, module products and circuit protection), and Connectivity Solutions (expanded beam fiber optic, copper-based, RF and RJ connectors and cable assemblies). 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 third quarter of 2024, and our statements regarding our expectations for 2024 generally including anticipated financial performance, projections and trends for the remainder of the year and other future periods, and 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 segments, customers, suppliers, end markets, distribution and inventory, statements regarding our views and expectations about positive momentum and recovery, statements regarding our expectations and beliefs regarding trends in the Company's business and industry and the broader economy and macroeconomic environment generally, statements regarding seasonal trends and the potential impact of trade restrictions, statements about the Company's and the team's focuses including with respect to growth and future development and success 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, the market concerns facing our customers, and risks for the Company’s business in the event of the loss of certain substantial customers; the continuing viability of sectors that rely on our products; the effects of business and economic conditions, and challenges impacting the macroeconomic environment generally and/or our industry in particular; the effects of rising input costs, and cost changes generally, including the potential impact of inflationary pressures; difficulties associated with integrating previously acquired companies; capacity and supply constraints or difficulties, including supply chain constraints or other challenges; the impact of public health crises (such as the governmental, social and economic effects of COVID or other future epidemics or pandemics); difficulties associated with the availability of labor, and the risks of any labor unrest or labor shortages; risks associated with our international operations, including our substantial manufacturing operations in China; risks associated with restructuring programs or other strategic initiatives, including any difficulties in implementation or realization of the expected benefits or cost savings; product development, commercialization or technological difficulties; the regulatory and trade environment including the potential effects of trade restrictions that may impact Bel, its customers and/or its suppliers; risks associated with fluctuations in foreign currency exchange rates and interest rates; uncertainties associated with legal proceedings; the market's acceptance of the Company's new products and competitive responses to those new products; the impact of changes to U.S. and applicable foreign legal and regulatory requirements, including tax laws, trade and tariff policies; and the risks detailed in Bel’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and in subsequent reports filed by Bel with the Securities and Exchange Commission, as well as other documents that may be filed by Bel from time to time with the Securities and Exchange Commission. In light of the risks and uncertainties impacting our business, there can be no assurance that any forward-looking statement will in fact prove to be correct. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Bel’s views as of the date of this press release. Bel anticipates that subsequent events and developments will cause its views to change. Bel undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Bel’s views as of any date subsequent to the date of this press release.
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, Non-GAAP EPS, EBITDA 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.
| Bel Fuse Inc. Supplementary Information(1) Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net sales | $ | 133,205 | $ | 168,777 | $ | 261,295 | $ | 341,121 | ||||||||
| Cost of sales | 79,809 | 113,240 | 159,821 | 231,920 | ||||||||||||
| Gross profit | 53,396 | 55,537 | 101,474 | 109,201 | ||||||||||||
| As a % of net sales | 40.1 | % | 32.9 | % | 38.8 | % | 32.0 | % | ||||||||
| Research and development costs | 5,994 | 6,006 | 11,209 | 11,229 | ||||||||||||
| Selling, general and administrative expenses | 24,141 | 25,135 | 49,085 | 50,432 | ||||||||||||
| As a % of net sales | 18.1 | % | 14.9 | % | 18.8 | % | 14.8 | % | ||||||||
| Restructuring charges | 638 | 709 | 703 | 4,215 | ||||||||||||
| Gain on sale of property | - | (3,672 | ) | - | (3,672 | ) | ||||||||||
| Income from operations | 22,623 | 27,359 | 40,477 | 46,997 | ||||||||||||
| As a % of net sales | 17.0 | % | 16.2 | % | 15.5 | % | 13.8 | % | ||||||||
| Gain on sale of Czech Republic business | - | 1,115 | - | 1,115 | ||||||||||||
| Interest expense | (415 | ) | (908 | ) | (849 | ) | (1,890 | ) | ||||||||
| Interest income | 1,146 | - | 2,261 | - | ||||||||||||
| Other income/expense, net | (471 | ) | (270 | ) | 1,346 | (190 | ) | |||||||||
| Earnings before income taxes | 22,883 | 27,296 | 43,235 | 46,032 | ||||||||||||
| Provision for (benefit from) income taxes | 4,077 | (479 | ) | 8,555 | 3,685 | |||||||||||
| Effective tax rate | 17.8 | % | -1.8 | % | 19.8 | % | 8.0 | % | ||||||||
| Net earnings | $ | 18,806 | $ | 27,775 | $ | 34,680 | $ | 42,347 | ||||||||
| As a % of net sales | 14.1 | % | 16.5 | % | 13.3 | % | 12.4 | % | ||||||||
| Weighted average number of shares outstanding: | ||||||||||||||||
| Class A common shares - basic and diluted | 2,124 | 2,142 | 2,131 | 2,142 | ||||||||||||
| Class B common shares - basic and diluted | 10,492 | 10,634 | 10,551 | 10,636 | ||||||||||||
| Net earnings per common share: | ||||||||||||||||
| Class A common shares - basic and diluted | $ | 1.43 | $ | 2.08 | $ | 2.61 | $ | 3.17 | ||||||||
| Class B common shares - basic and diluted | $ | 1.50 | $ | 2.19 | $ | 2.76 | $ | 3.34 | ||||||||
| (1) | The supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. |
| Bel Fuse Inc. Supplementary Information(1) Condensed Consolidated Balance Sheets (in thousands, unaudited) | ||||||||
| June 30, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 84,976 | $ | 89,371 | ||||
| Held to maturity U.S. Treasury securities | 58,822 | 37,548 | ||||||
| Accounts receivable, net | 81,153 | 84,129 | ||||||
| Inventories | 127,931 | 136,540 | ||||||
| Other current assets | 23,139 | 33,890 | ||||||
| Total current assets | 376,021 | 381,478 | ||||||
| Property, plant and equipment, net | 35,082 | 36,533 | ||||||
| Right-of-use assets | 21,945 | 20,481 | ||||||
| Related-party note receivable | 2,785 | 2,152 | ||||||
| Equity method investment | 9,943 | 10,282 | ||||||
| Goodwill and other intangible assets, net | 72,130 | 76,033 | ||||||
| Other assets | 49,698 | 44,672 | ||||||
| Total assets | $ | 567,604 | $ | 571,631 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 36,415 | $ | 40,441 | ||||
| Operating lease liability, current | 5,992 | 6,350 | ||||||
| Other current liabilities | 47,348 | 63,818 | ||||||
| Total current liabilities | 89,755 | 110,609 | ||||||
| Long-term debt | 60,000 | 60,000 | ||||||
| Operating lease liability, long-term | 16,131 | 14,212 | ||||||
| Other liabilities | 45,303 | 46,252 | ||||||
| Total liabilities | 211,189 | 231,073 | ||||||
| Stockholders' equity | 356,415 | 340,558 | ||||||
| Total liabilities and stockholders' equity | $ | 567,604 | $ | 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 Quarterly Report on Form 10-Q with the Securities and Exchange Commission. |
| Bel Fuse Inc. Supplementary Information(1) Condensed Consolidated Statements of Cash Flows (in thousands, unaudited) | ||||||||
| Six Months Ended | ||||||||
| June 30, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net earnings | $ | 34,680 | $ | 42,347 | ||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 7,123 | 6,571 | ||||||
| Stock-based compensation | 1,775 | 1,851 | ||||||
| Amortization of deferred financing costs | 27 | 33 | ||||||
| Deferred income taxes | (2,930 | ) | (3,128 | ) | ||||
| Net unrealized (gains) losses on foreign currency revaluation | (355 | ) | 505 | |||||
| Gain on sale of property | - | (3,672 | ) | |||||
| Gain on sale of Czech Republic business | - | (1,115 | ) | |||||
| Other, net | 487 | (1,124 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | 2,805 | (236 | ) | |||||
| Unbilled receivables | 6,887 | 5,018 | ||||||
| Inventories | 7,972 | 13,473 | ||||||
| Accounts payable | (4,026 | ) | (11,544 | ) | ||||
| Accrued expenses | (14,802 | ) | 2,448 | |||||
| Accrued restructuring costs | (1,553 | ) | 2,343 | |||||
| Income taxes payable | 4,517 | 3,856 | ||||||
| Other operating assets/liabilities, net | (4,265 | ) | (16,970 | ) | ||||
| Net cash provided by operating activities | 38,342 | 40,656 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of property, plant and equipment | (4,278 | ) | (7,081 | ) | ||||
| Purchases of held to maturity U.S. Treasury securities | (122,345 | ) | - | |||||
| Proceeds from held to maturity securities | 101,071 | - | ||||||
| Payment for equity method investment | - | (9,975 | ) | |||||
| Investment in related party notes receivable | (633 | ) | - | |||||
| Proceeds from sale of property, plant and equipment | 229 | 5,239 | ||||||
| Proceeds from sale of business | - | 5,198 | ||||||
| Net cash used in investing activities | (25,956 | ) | (6,619 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Dividends paid to common stockholders | (1,674 | ) | (1,658 | ) | ||||
| Repayments under revolving credit line | - | (40,000 | ) | |||||
| Borrowings under revolving credit line | - | 5,000 | ||||||
| Purchases of common stock | (14,175 | ) | - | |||||
| Net cash used in financing activities | (15,849 | ) | (36,658 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (932 | ) | (2,592 | ) | ||||
| Net decrease in cash and cash equivalents | (4,395 | ) | (5,213 | ) | ||||
| Cash and cash equivalents - beginning of period | 89,371 | 70,266 | ||||||
| Cash and cash equivalents - end of period | $ | 84,976 | $ | 65,053 | ||||
| Supplementary information: | ||||||||
| Cash paid during the period for: | ||||||||
| Income taxes, net of refunds received | $ | 8,277 | $ | 10,358 | ||||
| Interest payments | $ | 1,985 | $ | 2,762 | ||||
| ROU assets obtained in exchange for lease obligations | $ | 4,239 | $ | 5,172 | ||||
| (1) | The supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. |
| Bel Fuse Inc. Supplementary Information(1) Product Group Highlights (dollars in thousands, unaudited) | ||||||||||||||||||||||||
| Sales | Gross Margin | |||||||||||||||||||||||
| Q2-24 | Q2-23 | % Change | Q2-24 | Q2-23 | Basis Point Change | |||||||||||||||||||
| Power Solutions and Protection | $ | 58,551 | $ | 87,091 | -32.8 | % | 45.7 | % | 35.7 | % | 1,000 | |||||||||||||
| Connectivity Solutions | 57,822 | 54,843 | 5.4 | % | 38.9 | % | 37.4 | % | 150 | |||||||||||||||
| Magnetic Solutions | 16,832 | 26,843 | -37.3 | % | 26.4 | % | 24.6 | % | 180 | |||||||||||||||
| Total | $ | 133,205 | $ | 168,777 | -21.1 | % | 40.1 | % | 32.9 | % | 720 | |||||||||||||
| Sales | Gross Margin | |||||||||||||||||||||||
| YTD June 2024 | YTD June 2023 | % Change | YTD June 2024 | YTD June 2023 | Basis Point Change | |||||||||||||||||||
| Power Solutions and Protection | $ | 118,798 | 170,272 | -30.2 | % | 44.8 | % | 35.7 | % | 910 | ||||||||||||||
| Connectivity Solutions | 112,107 | 108,239 | 3.6 | % | 37.6 | % | 35.9 | % | 170 | |||||||||||||||
| Magnetic Solutions | 30,390 | 62,610 | -51.5 | % | 21.8 | % | 23.6 | % | (180 | ) | ||||||||||||||
| Total | $ | 261,295 | $ | 341,121 | -23.4 | % | 38.8 | % | 32.0 | % | 680 | |||||||||||||
| (1) | The supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q 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 EBITDA and Adjusted EBITDA(2) (in thousands, unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| GAAP net sales | $ | 133,205 | $ | 168,777 | $ | 261,295 | $ | 341,121 | ||||||||
| Expedite fee revenue | - | 5,663 | 57 | 13,417 | ||||||||||||
| Non-GAAP adjusted net sales | $ | 133,205 | $ | 163,114 | $ | 261,238 | $ | 327,704 | ||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| GAAP Net earnings | $ | 18,806 | $ | 27,775 | $ | 34,680 | $ | 42,347 | ||||||||
| Interest expense | 415 | 908 | 849 | 1,890 | ||||||||||||
| Provision for (benefit from) income taxes | 4,077 | (479 | ) | 8,555 | 3,685 | |||||||||||
| Depreciation and amortization | 3,439 | 3,335 | 7,123 | 6,571 | ||||||||||||
| EBITDA | $ | 26,737 | $ | 31,539 | $ | 51,207 | $ | 54,493 | ||||||||
| % of net sales | 20.1 | % | 18.7 | % | 19.6 | % | 16.0 | % | ||||||||
| Unusual or special items: | ||||||||||||||||
| Restructuring charges | 638 | 709 | 703 | 4,215 | ||||||||||||
| MPS litigation costs | - | 1,160 | - | 2,771 | ||||||||||||
| Gain on sale of Czech Republic business | - | (1,115 | ) | - | (1,115 | ) | ||||||||||
| Gain on sale of property | - | (3,672 | ) | - | (3,672 | ) | ||||||||||
| Adjusted EBITDA | $ | 27,375 | $ | 28,621 | $ | 51,910 | $ | 56,692 | ||||||||
| % of net sales | 20.6 | % | 17.0 | % | 19.9 | % | 16.6 | % | ||||||||
| (1) | The supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q 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, Non-GAAP EPS, EBITDA 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. |
Bel Fuse Inc.
Supplementary Information(1)
Reconciliation of GAAP Measures to Non-GAAP Measures(2)
(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 June 30, 2024 | Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||
| Reconciling Items | Earnings before taxes | Provision for income taxes | Net earnings | Class A EPS(3) | Class B EPS(3) | Earnings before taxes | Benefit from income taxes | Net earnings | Class A EPS(3) | Class B EPS(3) | ||||||||||||||||||||||||||||||
| GAAP measures | $ | 22,883 | $ | 4,077 | $ | 18,806 | $ | 1.43 | $ | 1.50 | $ | 27,296 | $ | (479 | ) | $ | 27,775 | $ | 2.08 | $ | 2.19 | |||||||||||||||||||
| Restructuring charges | 638 | 153 | 485 | 0.04 | 0.04 | 709 | 118 | 591 | 0.04 | 0.05 | ||||||||||||||||||||||||||||||
| MPS litigation costs | - | - | - | - | - | 1,160 | 267 | 893 | 0.07 | 0.07 | ||||||||||||||||||||||||||||||
| Gain on sale of Czech Republic business | - | - | - | - | - | (1,115 | ) | (56 | ) | (1,059 | ) | (0.08 | ) | (0.08 | ) | |||||||||||||||||||||||||
| Gain on sale of property | - | - | - | - | - | (3,672 | ) | (734 | ) | (2,938 | ) | (0.22 | ) | (0.23 | ) | |||||||||||||||||||||||||
| Non-GAAP measures | $ | 23,521 | $ | 4,230 | $ | 19,291 | $ | 1.46 | $ | 1.54 | $ | 24,378 | $ | (884 | ) | $ | 25,262 | $ | 1.89 | $ | 1.99 | |||||||||||||||||||
| Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||
| Reconciling Items | Earnings before taxes | Provision for income taxes | Net earnings | Class A EPS(3) | Class B EPS(3) | Earnings before taxes | Provision for income taxes | Net earnings | Class A EPS(3) | Class B EPS(3) | ||||||||||||||||||||||||||||||
| GAAP measures | $ | 43,235 | $ | 8,555 | $ | 34,680 | $ | 2.61 | $ | 2.76 | $ | 46,032 | $ | 3,685 | $ | 42,347 | $ | 3.17 | $ | 3.34 | ||||||||||||||||||||
| Restructuring charges | 703 | 163 | 540 | 0.04 | 0.04 | 4,215 | 600 | 3,615 | 0.27 | 0.29 | ||||||||||||||||||||||||||||||
| MPS litigation costs | - | - | - | - | - | 2,771 | 637 | 2,134 | 0.16 | 0.17 | ||||||||||||||||||||||||||||||
| Gain on sale of Czech Republic business | - | - | - | - | - | (1,115 | ) | (56 | ) | (1,059 | ) | (0.08 | ) | (0.08 | ) | |||||||||||||||||||||||||
| Gain on sale of property | - | - | - | - | - | (3,672 | ) | (734 | ) | (2,938 | ) | (0.22 | ) | (0.23 | ) | |||||||||||||||||||||||||
| Non-GAAP measures | $ | 43,938 | $ | 8,718 | $ | 35,220 | $ | 2.66 | $ | 2.80 | $ | 48,231 | $ | 4,132 | $ | 44,099 | $ | 3.30 | $ | 3.48 | ||||||||||||||||||||
| (1) | The supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q 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, Non-GAAP EPS, EBITDA 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. |
FAQ
What were Bel Fuse's net sales in Q2 2024?
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What were Bel Fuse's net earnings in Q2 2024?
