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
2013 2012 % Change
 

Net Sales

Electronics $ 79,415 $ 77,055 3 %
Automotive 59,385 52,626 13 %
Electrical   32,118     30,897 4 %
 
Total net sales $ 170,918   $ 160,578 6 %
 
 
First Quarter
2013 2012 % Change
 

Operating Income

Electronics $ 12,143 $ 10,112 20 %
Automotive 9,483 9,505 (0 %)
Electrical   6,491     6,207 5 %
 
Total operating income $ 28,117 $ 25,824 9 %
 
Interest expense 376 423
Investment impairment (1) 10,678 525
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, 2013 December 29, 2012
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 246,895 $ 235,404
Short-term investments 8,344 -
Accounts receivable, less allowances 107,044 100,559
Inventories 71,372 75,580
Deferred income taxes 10,874 11,890
Prepaid expenses and other current assets 15,857 16,532
Assets held for sale   5,500     5,500  
Total current assets 465,886 445,465
Property, plant and equipment:
Land 6,328 6,243
Buildings 55,159 54,559
Equipment   309,975     304,954  
371,462 365,756
Accumulated depreciation   (251,162 )   (244,845 )
Net property, plant and equipment 120,300 120,911
Intangible assets, net of amortization:
Patents, licenses and software 10,521 11,144
Distribution network 18,243 18,964
Customer lists, trademarks and tradenames 17,738 18,704
Goodwill   131,850     133,592  
178,352 182,404
Investment in unconsolidated entity - 8,666
Other investment 11,572 10,327
Deferred income taxes 9,826 8,090
Other assets   1,878     1,865  
Total assets $ 787,814   $ 777,728  
 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 29,582 $ 27,226
Accrued payroll 13,374 20,540
Accrued expenses 9,703 11,062
Accrued severance 776 1,033
Accrued income taxes 8,196 11,559
Current portion of long-term debt   94,000     84,000  
Total current liabilities 155,631 155,420
Accrued post-retirement benefits 17,692 22,338
Other long-term liabilities 13,820 12,412
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, 2013 March 31, 2012
 
Net sales $ 170,918 $ 160,578
 
Cost of sales   106,312     99,716  
 
Gross profit 64,606 60,862
 
Selling, general and administrative
expenses 29,202 28,409
Research and development expenses 5,715 5,161
Amortization of intangibles   1,572     1,468  
36,489 35,038
 
Operating income 28,117 25,824
 
 
Interest expense 376 423
Impairment and loan loss in unconsolidated
affiliate 10,678 525
Other (income) expense, net   (909 )   101  
 
Income before income taxes 17,972 24,775
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

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