lfus20180730_8k.htm

United States

Securities and Exchange Commission

Washington, D.C. 20549

 

Form 8-K

 

Current Report

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported) – August 1, 2018

 

LITTELFUSE, INC.

 

 (Exact name of registrant as specified in its charter)

 

Delaware

0-20388

36-3795742

(State of other jurisdiction
of incorporation)

(Commission
File Number)

(IRS Employer
Identification No.)

 

8755 W. Higgins Road, Suite 500, Chicago, IL 60631

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: (773) 628-1000

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

[___]

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

[___]

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

[___]

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

[___]

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

Item 2.02

Results of Operations and Financial Condition

     

The information contained within Item 2.02 of this Form 8-K and the Exhibits attached hereto shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

 

On August 1, 2018, Littelfuse, Inc. (the “Company”) issued a press release announcing the results of its operations for the quarter ended June 30, 2018. A copy of the press release is attached as Exhibit 99.1 to this Form 8-K and incorporated by reference to this Item 2.02 as if fully set forth herein.

 

The press release attached to this Form 8-K includes forward-looking statements that are intended to be covered by the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to comments with respect to the objectives and strategies, financial condition, results of operations and business of the Company. These forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that predictions and other forward-looking statements will not be achieved. The Company cautions you not to place undue reliance on these forward-looking statements as a number of important factors could cause actual future results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements.

 

A copy of the press release is also posted on the Company’s website.

 

Item 8.01     Other Items.

 

The information contained in this Item 8.01, including Exhibit 99.2, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference into any filing by Littelfuse, Inc. under the Securities Act or the Securities Exchange Act of 1934, as amended.

 

Littelfuse, Inc. provides the Supplemental GAAP to Non-GAAP Reconciliation attached as Exhibit 99.2 to this Form 8-K.

 

 

 

Item 9.01

Financial Statements and Exhibits

 

d) Exhibits.

 

The following exhibit is furnished with this Form 8-K:

 

 

99.1

Press Release, dated August 1, 2018

     
 

99.2

Supplemental GAAP to Non-GAAP Reconciliation, dated August 1, 2018

 

 

 

 

Signature

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

Littelfuse, Inc.

 

 

 

 

Date: August 1, 2018

By: /s/ Meenal A. Sethna

 

Meenal A. Sethna
Executive Vice President and Chief Financial Officer

 

 

 

 

Exhibit Index

 

99.1

Press release, dated August 1, 2018

   
99.2 Supplemental GAAP to Non-GAAP Reconciliation, dated August 1, 2018

           

ex_119409.htm

Exhibit 99.1

 


 

 

   

NEWS RELEASE

Littelfuse Inc.
8755 West Higgins Road, Suite 500
Chicago, Illinois 60631
p: (773) 628-1000 f: (773) 628-0802
www.littelfuse.com

 

LITTELFUSE REPORTS SECOND QUARTER RESULTS

Company delivers record sales and adjusted earnings per share

 

CHICAGO, August 1, 2018Littelfuse, Inc. (NASDAQ: LFUS), the global leader in circuit protection with advancing platforms in power control and sensor technologies, today reported financial results for the second quarter ended June 30, 2018:

 

Net sales were $459.2 million, up 47% versus the prior year. Organic revenue growth was 11%.

Growth by segment versus the prior year period:

 

o

Electronics sales increased 77% (up 14% organically)

 

o

Automotive sales increased 9% (up 5% organically)

 

o

Industrial sales increased 19% (up 18% organically)

GAAP diluted EPS was $1.67; this includes $26 million of after-tax charges primarily related to certain purchase accounting adjustments, acquisition and integration costs related to IXYS Corporation and non-operating foreign exchange losses

Adjusted diluted EPS of $2.68 increased 28% over last year

GAAP and adjusted effective tax rate were both 19.1% for the quarter

Cash flow from operations was $71.6 million and free cash flow was $49.2 million

During the quarter, the company exited its Custom business within its Industrial segment; this is not expected to have a material impact to the company’s future sales and earnings

The electronics segment book-to-bill ratio exiting the second quarter was 1.02 (excluding the IXYS business)

 

"We are pleased with our record second quarter results driven by strong demand for our products across all segments and consistent operational performance, including the ongoing integration of the IXYS business,” said Dave Heinzmann, Littelfuse Chief Executive Officer. “With our diversified product portfolio and global presence, we are benefiting from broad-based market demand. Looking ahead, we remain well-positioned to leverage the global mega trends of a safer, greener and increasingly connected world as we execute our long-term strategy and drive double-digit sales and earnings growth.”

 

-more-

 

 

 

Page 2

 

For the third quarter of 2018*:

Net sales are expected to be in the range of $434 to $446 million, up 38% on a reported basis and up 8% organically, at the midpoint versus the prior year quarter

Adjusted diluted earnings per share are expected to be in the range of $2.31 to $2.45, representing 13% growth over the prior year quarter at the midpoint

Adjusted effective tax rate is expected to be approximately 21%

 

For the 2018 full year, the company expects an adjusted effective tax rate in the range of 18% – 21%.

 

*All comparisons are to the prior year period unless otherwise noted. Littelfuse provides guidance on a non-GAAP (adjusted) basis. GAAP items excluded from guidance may include the after-tax impact of items including acquisition and integration costs, impairment and severance charges, certain purchase accounting adjustments, foreign exchange adjustments and significant and unusual items. These items are uncertain, depend on various factors, and could be material to results computed in accordance with GAAP. Littelfuse is not able to forecast the excluded items in order to provide the most directly comparable GAAP financial measure without unreasonable efforts.

 

Dividend

The company’s Board of Directors approved a 16% increase in the quarterly cash dividend from $0.37 to $0.43. This equates to an annualized dividend of $1.72 per share. The dividend will be paid on September 6, 2018 to shareholders of record as of August 23, 2018.

 

Conference Call and Webcast Information

Littelfuse will host a conference call today, Wednesday, August 1, 2018, at 9:00 a.m. Central Time to discuss the results. The call will be broadcast live and available for replay at Littelfuse.com.

 

-more-

 

 

 

Page 3

 

About Littelfuse

Founded in 1927, Littelfuse is the global leader in circuit protection with advancing platforms in power control and sensor technologies. The company serves customers in the electronics, automotive and industrial markets with products that include fuses, semiconductors, polymers, ceramics, relays and sensors. Littelfuse has more than 11,000 employees in more than 50 locations worldwide. For more information, please visit 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 Littelfuse, Inc.'s ("Littelfuse" or the "Company") accounting policies; labor disputes; restructuring costs in excess of expectations; pension plan asset returns less than assumed; uncertainties related to political or regulatory changes; the integration of the recently acquired business of IXYS Corporation ("IXYS") and the risk that expected benefits, synergies and growth prospects of the acquisition of IXYS may not be achieved in a timely manner, or at all; and other risks which may be detailed in the company's Securities and Exchange Commission filings. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated or implied in the forward-looking statements. This release should be read in conjunction with information provided in the financial statements appearing in the company's Annual Report on Form 10-K for the year ended December 30, 2017. 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 30, 2017.

 

Non-GAAP Financial Measures

The information included in this press release includes the non-GAAP financial measures of organic revenue growth, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, adjusted effective tax rate and free cash flow. Many of these non-GAAP financial measures exclude the effect of certain expenses and income not related directly to the underlying performance of our fundamental business operations. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is set forth in the attached schedules.

 

The company believes that organic revenue growth, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, and adjusted effective tax rate provide useful information to investors regarding its operational performance because they enhance an investor’s overall understanding of our core financial performance and facilitate comparisons to historical results of operations, by excluding items that are not related directly to the underlying performance of our fundamental business operations or were not part of our business operations during a comparable period. The company believes free cash flow is a useful measure of its ability to generate cash. The company believes that all of these non-GAAP financial measures are commonly used by financial analysts and others in the industries in which we operate, and thus further provide useful information to investors. Management additionally uses these measures when assessing the performance of the business and for business planning purposes. Note that our definitions of these non-GAAP financial measures may differ from those terms as defined or used by other companies.

 

 

CONTACT: Trisha Tuntland

Head of Investor Relations

(773) 628-2163

 

###

LFUS-F

 

 

 

Page 4

 

LITTELFUSE, INC.

Net Sales and Operating Income by Segment

(In thousands of USD, unaudited)

 

   

Second Quarter

   

Year-to-Date

 
   

2018

   

2017

   

%

Growth /

(Decline)

   

2018

   

2017

   

%

Growth /

(Decline)

 

                                                 

Net Sales

                                               

Electronics

  $ 299,357     $ 169,387       77%     $ 563,768     $ 323,154       74%  

Automotive

    127,172       116,457       9%       253,302       224,297       13%  

Industrial

    32,654       27,511       19%       59,926       51,346       17%  
                                                 

Total net sales

  $ 459,183     $ 313,355       47%     $ 876,996     $ 598,797       46%  

 

   

Second Quarter

   

Year-to-Date

 
   

2018

   

2017

   

%

Growth /

(Decline)

   

2018

   

2017

   

%

Growth /

(Decline)

 
                                                 

Operating Income/(Expense)

                                               

Electronics

  $ 67,311     $ 42,967       57%     $ 121,275     $ 78,173       55%  

Automotive

    15,711       15,713       -       34,102       30,778       11%  

Industrial

    5,279       1,905       177%       9,988       2,012       396%  

Other (1)

    (28,679 )     (315 )  

N.M.

      (68,172 )     (1,840 )  

 

N.M.  
                                                 

Total operating income

  $ 59,622     $ 60,270       (1%)     $ 97,193     $ 109,123       (11%)  

Operating margin

    13.0 %     19.2 %             11.1 %     18.2 %        
                                                 

Interest expense

    5,782       3,281               11,205       6,401          

Foreign exchange loss (gain)

    3,200       (558 )             (7,354 )     (2,115 )        

Other (income) expense, net

    (1,678 )     190               (3,621 )     52          
                                                 

Income before taxes

  $ 52,318     $ 57,357       (9%)     $ 96,963     $ 104,785       (7%)  

 

N.M. - Not meaningful

 

(1) "Other" typically includes non-GAAP adjustments such as acquisition-related costs, purchase accounting inventory adjustments and other charges, restructuring costs, asset impairments, and gains and losses on asset sales. (See Supplemental Financial Information for details.)

 

   

Second Quarter

   

Year-to-Date

 
   

2018

   

2017

   

Growth /

(Decline)

   

2018

   

2017

   

Growth /

(Decline)

 
                                                 

Operating Margins

                                               

Electronics

    22.5 %     25.4 %     (2.9% )     21.5 %     24.2 %     (2.7% )

Automotive

    12.4 %     13.5 %     (1.1% )     13.5 %     13.7 %     (0.2% )

Industrial

    16.2 %     6.9 %     9.3 %     16.7 %     3.9 %     12.8 %

 

 

 

Page 5

 

LITTELFUSE, INC.

Condensed Consolidated Balance Sheets

(In thousands of USD)

 

   

June 30, 2018

   

December 30, 2017

 
   

(Unaudited)

         

ASSETS

               

Current assets:

               

Cash and cash equivalents

  $ 408,147     $ 429,676  

Short-term investments

    34       35  

Accounts receivable, less allowances

    260,444       182,699  

Inventories

    239,201       140,789  

Prepaid income taxes and income taxes receivable

    4,648       1,689  

Prepaid expenses and other current assets

    45,727       37,452  

Total current assets

    958,201       792,340  

Property, plant and equipment:

               

Land

    29,198       9,547  

Buildings

    118,432       86,599  

Equipment

    558,855       505,838  
      706,485       601,984  

Accumulated depreciation

    (367,730 )     (351,407 )

Net property, plant and equipment

    338,755       250,577  

Intangible assets, net of amortization:

               

Patents, licenses and software

    124,798       81,911  

Distribution network

    10,434       12,872  

Customer lists, trademarks and tradenames

    248,007       109,067  

Backlog

    6,813       -  

Goodwill

    832,227       453,414  
      1,222,279       657,264  

Investments

    31,326       10,993  

Deferred income taxes

    10,320       11,858  

Other assets

    27,113       17,070  

Total assets

  $ 2,587,994     $ 1,740,102  
                 

LIABILITIES AND EQUITY

               

Current liabilities:

               

Accounts payable

  $ 127,290     $ 101,844  

Accrued payroll

    43,047       49,962  

Accrued expenses

    66,341       48,994  

Accrued severance

    1,049       1,459  

Accrued income taxes

    19,376       16,285  

Current portion of long-term debt

    10,060       6,250  

Total current liabilities

    267,163       224,794  

Long-term debt, less current portion

    687,538       489,361  

Deferred income taxes

    53,996       17,069  

Accrued post-retirement benefits

    33,210       18,742  

Other long-term liabilities

    76,067       62,580  

Total equity

    1,470,020       927,556  

Total liabilities and equity

  $ 2,587,994     $ 1,740,102  

 

 

 

Page 6

 

LITTELFUSE, INC.

Condensed Consolidated Statements of Comprehensive Income

(In thousands of USD, except per share data, unaudited)

 

   

For the Three Months Ended

   

For the Six Months Ended

 
   

June 30, 2018

   

July 1, 2017

   

June 30, 2018

   

July 1, 2017

 
                                 

Net sales

  $ 459,183     $ 313,355     $ 876,996     $ 598,797  
                                 

Cost of sales

    290,196       180,747       558,386       352,539  
                                 

Gross profit

    168,987       132,608       318,610       246,258  
                                 
                                 

Selling, general and administrative expenses

    73,244       53,438       150,758       100,139  

Research and development expenses

    22,748       12,729       45,288       24,881  

Amortization of intangibles

    13,373       6,171       25,371       12,115  
      109,365       72,338       221,417       137,135  
                                 

Operating income

    59,622       60,270       97,193       109,123  
                                 

Interest expense

    5,782       3,281       11,205       6,401  

Foreign exchange loss (gain)

    3,200       (558 )     (7,354 )     (2,115 )

Other (income) expense, net

    (1,678 )     190       (3,621 )     52  
                                 

Income before income taxes

    52,318       57,357       96,963       104,785  

Income taxes

    9,992       8,719       18,609       17,255  
                                 

Net income

  $ 42,326     $ 48,638     $ 78,354     $ 87,530  
                                 

Net income per share:

                               

Basic

  $ 1.69     $ 2.13     $ 3.18     $ 3.84  

Diluted

  $ 1.67     $ 2.11     $ 3.12     $ 3.80  
                                 

Weighted average shares outstanding:

                               

Basic

    25,004       22,822       24,671       22,785  

Diluted

    25,401       23,023       25,086       23,005  
                                 

Comprehensive income

  $ 26,384     $ 44,485     $ 62,133     $ 89,004  

 

 

 

Page 7

 

LITTELFUSE, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands of USD, unaudited)

 

   

For the Six Months Ended

 
   

June 30, 2018

   

July 1, 2017

 
                 

OPERATING ACTIVITIES:

               

Net income

  $ 78,354     $ 87,530  

Adjustments to reconcile net income to net cash provided by operating activities:

               

Depreciation

    24,431       18,575  

Amortization of intangibles

    25,371       12,115  

Provision for bad debts

    (2 )     1,895  

Deferred revenue

    1,921       -  

Stock-based compensation

    15,883       8,590  

Non-cash inventory charges

    36,927       -  

Impairment charges

    1,125       -  

Unrealized gain on investments

    (3,311 )     -  

Loss on sale of property, plant and equipment

    780       593  

Deferred income taxes

    2,434       1,514  
                 

Changes in operating assets and liabilities

               

Accounts receivable

    (33,481 )     (32,039 )

Inventories

    (1,502 )     (8,739 )

Accounts payable

    13,684       7,985  

Accrued expenses (including post-retirement)

    3,773       3,912  

Accrued payroll and severance

    (13,745 )     (13,190 )

Accrued taxes

    (6,411 )     515  

Prepaid expenses and other

    (5,316 )     4,317  

Net cash provided by operating activities

    140,915       93,573  
                 

INVESTING ACTIVITIES:

               

Purchases of property, plant and equipment

    (40,315 )     (28,278 )

Acquisition of businesses, net of cash acquired

    (310,487 )     (14,172 )

Proceeds from maturities of short-term investments

    -       3,739  

Decrease in entrusted loan receivable

    -       2,416  

Proceeds from sale of property, plant and equipment

    68       178  

Net cash used in investing activities

    (350,734 )     (36,117 )
                 

FINANCING ACTIVITIES:

               

Proceeds of revolving credit facility

    60,000       -  

Proceeds of term loan

    75,000       -  

Payments of revolving credit facility

    (60,000 )     (112,500 )

Payments of term loan

    (40,025 )     (3,125 )

Net proceeds from senior notes payable

    175,000       125,000  

Payments of entrusted loan

    -       (2,416 )

Debt issuance costs paid

    (878 )     (1 )

Cash dividends paid

    (18,458 )     (14,963 )

Net proceeds (payments) related to stock-based award activities

    5,568       (2,074 )

Net cash provided by (used in) financing activities

    196,207       (10,079 )
                 

Effect of exchange rate changes on cash and cash equivalents

    (7,917 )     (608 )
                 

Increase (decrease) in cash and cash equivalents

    (21,529 )     46,769  

Cash and cash equivalents at beginning of period

    429,676       275,124  

Cash and cash equivalents at end of period

  $ 408,147     $ 321,893  

 

 

 

Page 8

 

LITTELFUSE, INC.

Supplemental Financial Information

(in millions of USD except per share amounts, unaudited)

 

Non-GAAP EPS reconciliation

                               
   

Q2-18

   

Q2-17

   

YTD-18

   

YTD-17

 

GAAP diluted EPS

  $ 1.67     $ 2.11     $ 3.12     $ 3.80  

EPS impact of Non-GAAP adjustments (below)

    1.01       (0.01 )     1.95       (0.01 )

Adjusted diluted EPS

  $ 2.68     $ 2.10     $ 5.07     $ 3.79  
                                 

 

Non-GAAP adjustments - (income)/expense

                               
   

Q2-18

   

Q2-17

   

YTD-18

   

YTD-17

 

Acquisition related and integration costs

  $ 2.3     $ 0.3     $ 14.1     $ 1.8  

Restructuring and other charges

    3.2       -       3.9       -  

Amortization backlog - IXYS

    3.1       -       5.6       -  

Impairments

    1.1       -       1.1       -  

Change in control - IXYS

    -       -       2.1       -  

Acquisition related stock-based compensation charge

    -       -       4.5       -  

Purchase accounting inventory adjustments

 

 

19.0       -       36.9       -  

Non-GAAP adjustments to operating income

    28.7       0.3       68.2       1.8  

Non-operating foreign exchange loss (gain)

    3.2       (0.6 )     (7.4 )     (2.2 )

Non-GAAP adjustments to income before income taxes

    31.9       (0.3 )     60.8       (0.4 )

Income taxes

    6.1       -       11.9       -  

Non-GAAP adjustments to net income

  $ 25.8     $ (0.3 )   $ 48.9     $ (0.4 )
                                 

Total EPS impact

  $ 1.01     $ (0.01 )   $ 1.95     $ (0.01 )

 

Adjusted operating margin /Adjusted EBITDA reconciliation

                               
   

Q2-18

   

Q2-17

   

YTD-18

   

YTD-17

 
                                 

Net sales

  $ 459.2     $ 313.4     $ 877.0     $ 598.8  
                                 

GAAP operating income

  $ 59.6     $ 60.3     $ 97.2     $ 109.2  

Add back non-GAAP adjustments

    28.7       0.3       68.2       1.8  

Adjusted operating income

  $ 88.3     $ 60.6     $ 165.4     $ 111.0  

Adjusted operating margin

    19.2 %     19.3 %     18.9 %     18.5 %
                                 

Add back amortization

    10.3       6.2       19.8       12.1  

Add back depreciation

    12.8       9.4       24.4       18.5  

Adjusted EBITDA

  $ 111.4     $ 76.2     $ 209.6     $ 141.6  

Adjusted EBITDA margin

    24.3 %     24.3 %     23.9 %     23.6 %

 

Net sales reconciliation

 

Q2-18 vs. Q2-17

 
   

Electronics

   

Automotive

   

Industrial

   

Total

 

Net sales growth

    77 %     9 %     19 %     47 %

Less:

                               

Acquisitions

    61 %     -       -       33 %

Divestitures

    -       -       -       -  

FX impact

    2 %     4 %     1 %     3 %

Organic net sales growth

    14 %     5 %     18 %     11 %

 

Income tax reconciliation

                               
   

Q2-18

   

Q2-17

   

YTD-18

   

YTD-17

 
                                 

Income taxes

  $ 10.0     $ 8.7     $ 18.6     $ 17.2  

Effective rate

    19.1 %     15.2 %     19.2 %     16.5 %
                                 

Non-GAAP adjustments - income taxes

    6.1       -       11.9       -  
                                 

Adjusted income taxes

  $ 16.1     $ 8.7     $ 30.5     $ 17.2  

Adjusted effective rate

    19.1 %     15.2 %     19.3 %     15.2 %

 

Free cash flow reconcilation

                               
   

Q2-18

   

Q2-17

   

YTD-18

   

YTD-17

 

Net cash provided by operating activities

  $ 71.6     $ 70.6     $ 140.9     $ 93.6  

Less: Purchases of property, plant and equipment

    (22.4 )     (15.9 )     (40.3 )     (28.3 )

Free cash flow

  $ 49.2     $ 54.7     $ 100.6     $ 65.3  

 

Note: Totals will not always foot due to rounding

 

 

 

Page 9

 

LITTELFUSE, INC.

Condensed Consolidated Statement of Comprehensive Income

Supplemental GAAP to Non-GAAP Reconciliation

(In thousands of USD, except per share data, unaudited)

 

   

GAAP As

Reported

   

Non-GAAP Adjustments

     

Non-GAAP

   

GAAP As Reported

   

Non-GAAP Adjustments

     

Non-GAAP

 
   

June 30, 2018 QTD

   

June 30, 2018 QTD

     

June 30, 2018 QTD

   

July 1, 2017 QTD

   

July 1, 2017 QTD

     

July 1, 2017 QTD

 
                                                     

Net sales

  $ 459,183     $ -       $ 459,183     $ 313,355     $ -       $ 313,355  
                                                     

Cost of sales

    290,196       (19,454 )

(a) 

    270,742       180,747       -         180,747  
                                                     

Gross profit

    168,987       19,454         188,441       132,608       -         132,608  
                                                     
                                                     

Selling, general and administrative expenses

    73,244       (6,123 )

(b) 

    67,121       53,438       (315 )

(d) 

    53,123  

Research and development expenses

    22,748       -         22,748       12,729       -         12,729  

Amortization of intangibles

    13,373       (3,103 )

(c) 

    10,270       6,171       -         6,171  

Total operating expenses

    109,365       (9,226 )       100,139       72,338       (315 )       72,023  
                                                     

Operating income

    59,622       28,680         88,302       60,270       315         60,585  
                                                     

Interest expense

    5,782       -         5,782       3,281       -         3,281  

Foreign exchange loss (gain)

    3,200       (3,200 )       -       (558 )     558         -  

Other (income) expense, net

    (1,678 )     -         (1,678 )     190       -         190  
                                                     

Income before income taxes

    52,318       31,880         84,198       57,357       (243 )       57,114  

Income taxes

    9,992       6,073         16,065       8,719       (38 )       8,681  
                                                     

Net income

  $ 42,326     $ 25,807       $ 68,133     $ 48,638     $ (205 )     $ 48,433  
                                                     

Net income per share:

                                                   

Basic

  $ 1.69     $ 1.03       $ 2.72     $ 2.13     $ (0.01 )     $ 2.12  

Diluted

  $ 1.67     $ 1.01       $ 2.68     $ 2.11     $ (0.01 )     $ 2.10  
                                                     
                                                     

Weighted average shares outstanding:

                                                   

Basic

    25,004                 25,004       22,822                 22,822  

Diluted

    25,401                 25,401       23,023                 23,023  
                                                     
                                                     

Comprehensive income

  $ 26,384               $ 52,191     $ 44,486               $ 44,281  

 

(a) Cost of sales included $19.0 million for purchase accounting inventory adjustments and $0.5 million of restructuring charges

 

(b) Selling, general and administrative included $2.3 million for acquisition related and integration costs and $3.8 million of restructuring, impairment and other charges

 

(c) Amortization of intangibles included $3.1 million of IXYS backlog amortization

 

(d) Selling, general and administrative included $0.3 million for acquisition related costs

 

The Company believes that certain non-GAAP measures, when presented in conjunction with comparable GAAP measures, are useful because that information is an appropriate measure for evaluating the Company’s operating performance.  Internally, the Company uses this non-GAAP information as an indicator of business performance, and evaluates management’s effectiveness with specific reference to this indicator. These measures should be considered in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.  

 

 

 

Page 10

 

LITTELFUSE, INC.

 

Condensed Consolidated Statement of Comprehensive Income

 

Supplemental GAAP to Non-GAAP Reconciliation

 

(In thousands of USD, except per share data, unaudited)

 

 

   

GAAP As Reported

   

Non-GAAP Adjustments

     

Non-GAAP

   

GAAP As Reported

   

Non-GAAP Adjustments

     

Non-GAAP

 
   

June 30, 2018 YTD

   

June 30, 2018 YTD

     

June 30, 2018 YTD

   

July 1, 2017 YTD

   

July 1, 2017 YTD

     

July 1, 2017 YTD

 
                                                     

Net sales

  $ 876,996     $ -       $ 876,996     $ 598,797     $ -       $ 598,797  
                                                     

Cost of sales

    558,386       (38,332 )

(a) 

    520,054       352,539       (22 )       352,517  
                                                     

Gross profit

    318,610       38,332         356,942       246,258       22         246,280  
                                                     
                                                     

Selling, general and administrative expenses

    150,758       (22,627 )

(b) 

    128,131       100,139       (1,818 )

(e) 

    98,321  

Research and development expenses

    45,288       (1,606 )

(c) 

    43,682       24,881       -         24,881  

Amortization of intangibles

    25,371       (5,607 )

(d) 

    19,764       12,115       -         12,115  

Total operating expenses

    221,417       (29,840 )       191,577       137,135       (1,818 )       135,317  
                                                     

Operating income

    97,193       68,172         165,365       109,123       1,840         110,963  
                                                     

Interest expense

    11,205       -         11,205       6,401       -         6,401  

Foreign exchange loss (gain)

    (7,354 )     7,354         -       (2,115 )     2,115         -  

Other (income) expense, net

    (3,621 )     -         (3,621 )     52       -         52  
                                                     

Income before income taxes

    96,963       60,818         157,781       104,785       (275 )       104,510  

Income taxes

    18,609       11,878         30,487       17,255       (42 )       17,213  
                                                     

Net income

  $ 78,354     $ 48,940       $ 127,294     $ 87,530     $ (233 )     $ 87,297  
                                                     

Net income per share:

                                                   

Basic

  $ 3.18     $ 1.98       $ 5.16     $ 3.84     $ (0.01 )     $ 3.83  

Diluted

  $ 3.12     $ 1.95       $ 5.07     $ 3.80     $ (0.01 )     $ 3.79  
                                                     
                                                     

Weighted average shares outstanding:

                                                   

Basic

    24,671                 24,671       22,785                 22,785  

Diluted

    25,086                 25,086       23,005                 23,005  
                                                     
                                                     

Comprehensive income

  $ 62,133               $ 111,073     $ 89,004               $ 88,771  

 

(a) Cost of sales included $36.9 million for purchase accounting inventory adjustments, $0.5 million for acquisition related stock-based compensation charges and $0.9 million of restructuring charges

(b) Selling, general and administrative included $14.1 million for acquisition related and integration costs, $2.4 million for acquisition related stock-based compensation charges, $2.1 million for IXYS change in control and $4.1 million of restructuring, impairment and other charges

(c) Research and development expenses included $1.6 million for acquisition related stock-based compensation charges

(d) Amortization of intangibles included $5.6 million of IXYS backlog amortization

(e) Selling, general and administrative included $1.8 million for acquisition related and integration costs

 

The Company believes that certain non-GAAP measures, when presented in conjunction with comparable GAAP measures, are useful because that information is an appropriate measure for evaluating the Company’s operating performance.  Internally, the Company uses this non-GAAP information as an indicator of business performance, and evaluates management’s effectiveness with specific reference to this indicator. These measures should be considered in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.  

 

ex_119410.htm

Exhibit 99.2

 

LITTELFUSE, INC.

Condensed Consolidated Statement of Comprehensive Income

Supplemental GAAP to Non-GAAP Reconciliation

(In thousands of USD, except per share data, unaudited)

 

   

GAAP As Reported

   

Non-GAAP

Adjustments

     

Non-GAAP

 
   

April 1, 2017 QTD

   

April 1, 2017 QTD

     

April 1, 2017 QTD

 
                           

Net sales

  $ 285,441     $ -       $ 285,441  
                           

Cost of sales

    171,791       (22 )       171,770  
                           

Gross profit

    113,650       22         113,672  
                           
                           

Selling, general and administrative expenses

    46,703       (1,504 )

(a) 

    45,199  

Research and development expenses

    12,151       -         12,151  

Amortization of intangibles

    5,944       -         5,944  

Total operating expenses

    64,798       (1,504 )       63,294  
                           

Operating income

    48,852       1,525         50,377  
                           

Interest expense

    3,120       -         3,120  

Foreign exchange loss (gain)

    (1,557 )     1,557         -  

Other (income) expense, net

    (139 )     -         (139 )
                           

Income before income taxes

    47,428       (32 )       47,396  

Income taxes

    8,537       (6 )       8,531  
                           

Net income

  $ 38,891     $ (26 )     $ 38,865  
                           

Net income per share:

                         

Basic

  $ 1.71     $ (0.00 )     $ 1.71  

Diluted

  $ 1.69     $ (0.00 )     $ 1.69  
                           

Weighted average shares outstanding:

                         

Basic

    22,748                 22,748  

Diluted

    22,989                 22,989  
                           
                           

Comprehensive income

  $ 44,518               $ 44,492  

 

(a) Selling, general and administrative included $1.5 million for acquisition related and integration costs

 

The Company believes that certain non-GAAP measures, when presented in conjunction with comparable GAAP measures, are useful because that information is an appropriate measure for evaluating the Company’s operating performance.  Internally, the Company uses this non-GAAP information as an indicator of business performance, and evaluates management’s effectiveness with specific reference to this indicator. These measures should be considered in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.  

 

 

 

 

LITTELFUSE, INC.

Condensed Consolidated Statement of Comprehensive Income

Supplemental GAAP to Non-GAAP Reconciliation

(In thousands of USD, except per share data, unaudited)

 

   

GAAP As Reported

   

Non-GAAP Adjustments

   

Non-GAAP

 
   

July 1, 2017 QTD

   

July 1, 2017 QTD

   

July 1, 2017 QTD

 
                         

Net sales

  $ 313,355     $ -     $ 313,355  
                         

Cost of sales

    180,747       -       180,747  
                         

Gross profit

    132,608       -       132,608  
                         
                         

Selling, general and administrative expenses

    53,438       (315 ) (a)    53,123  

Research and development expenses

    12,729       -       12,729  

Amortization of intangibles

    6,171       -       6,171  

Total operating expenses

    72,338       (315 )     72,023  
                         

Operating income

    60,270       315       60,585  
                         

Interest expense

    3,281       -       3,281  

Foreign exchange loss (gain)

    (558 )     558       -  

Other (income) expense, net

    190       -       190  
                         

Income before income taxes

    57,357       (243 )     57,114  

Income taxes

    8,719       (38 )     8,681  
                         

Net income

  $ 48,638     $ (205 )   $ 48,433  
                         

Net income per share:

                       

Basic

  $ 2.13     $ (0.01 )   $ 2.12  

Diluted

  $ 2.11     $ (0.01 )   $ 2.10  
                         

Weighted average shares outstanding:

                       

Basic

    22,822               22,822  

Diluted

    23,023               23,023  
                         
                         

Comprehensive income

  $ 44,486             $ 44,281  

 

(a) Selling, general and administrative included $0.3 million for acquisition related costs

 

The Company believes that certain non-GAAP measures, when presented in conjunction with comparable GAAP measures, are useful because that information is an appropriate measure for evaluating the Company’s operating performance.  Internally, the Company uses this non-GAAP information as an indicator of business performance, and evaluates management’s effectiveness with specific reference to this indicator. These measures should be considered in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.  

 

 

 

 

LITTELFUSE, INC.

Condensed Consolidated Statement of Comprehensive Income

Supplemental GAAP to Non-GAAP Reconciliation

(In thousands of USD, except per share data, unaudited)

 

   

GAAP As Reported

   

Non-GAAP Adjustments

     

Non-GAAP

 
   

Sept 30, 2017 QTD

   

Sept 30, 2017 QTD

     

Sept 30, 2017 QTD

 
                           

Net sales

  $ 317,889     $ -       $ 317,889  
                           

Cost of sales

    184,238       (1,607 )

(a) 

    182,631  
                           

Gross profit

    133,651       1,607         135,258  
                           
                           

Selling, general and administrative expenses

    56,759       (4,684 )

(b) 

    52,075  

Research and development expenses

    11,991       (23 )       11,968  

Amortization of intangibles

    6,292       -         6,292  

Total operating expenses

    75,042       (4,707 )       70,335  
                           

Operating income

    58,609       6,314         64,923  
                           

Interest expense

    3,468       -         3,468  

Foreign exchange loss (gain)

    632       (632 )       -  

Other (income) expense, net

    1,014       -         1,014  
                           

Income before income taxes

    55,523       6,946         60,441  

Income taxes

    12,715       1,278         13,993  
                           

Net income

  $ 42,808     $ 5,668       $ 48,476  
                           

Net income per share:

                         

Basic

  $ 1.88     $ 0.25       $ 2.13  

Diluted

  $ 1.87     $ 0.25       $ 2.11  
                           

Weighted average shares outstanding:

                         

Basic

    22,713                 22,713  

Diluted

    22,953                 22,953  
                           
                           

Comprehensive income

  $ 42,568               $ 48,236  

 

(a) Cost of sales included $1.6 million for purchase accounting inventory adjustments

 

(b) Selling, general and administrative included $3.2 million for acquisition related and integration costs and $1.5 million of restructuring charges

 

The Company believes that certain non-GAAP measures, when presented in conjunction with comparable GAAP measures, are useful because that information is an appropriate measure for evaluating the Company’s operating performance.  Internally, the Company uses this non-GAAP information as an indicator of business performance, and evaluates management’s effectiveness with specific reference to this indicator. These measures should be considered in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.  

 

 

 

 

LITTELFUSE, INC.

Condensed Consolidated Statement of Comprehensive Income

Supplemental GAAP to Non-GAAP Reconciliation

(In thousands of USD, except per share data, unaudited)

 

   

GAAP As Reported

   

Non-GAAP Adjustments

     

Non-GAAP

 
   

Dec 30, 2017 QTD

   

Dec 30, 2017 QTD

     

Dec 30, 2017 QTD

 
                           

Net sales

  $ 304,848     $ -       $ 304,848  
                           

Cost of sales

    178,224       (50 )       178,174  
                           

Gross profit

    126,624       50         126,674  
                           

Selling, general and administrative expenses

    55,934       (1,955 )

(a) 

    53,979  

Research and development expenses

    13,618       (114 )

(b) 

    13,504  

Amortization of intangibles

    6,293       -         6,293  

Total operating expenses

    75,845       (2,069 )       73,776  
                           

Operating income

    50,779       2,119         52,898  
                           

Interest expense

    3,512       -         3,512  

Foreign exchange loss (gain)

    3,859       (3,859 )       -  

Other (income) expense, net

    (321 )     -         (321 )
                           

Income before income taxes

    43,729       5,978         49,707  

Income taxes

    54,548       (46,516 )

(c) 

    8,032  
                           

Net income (loss)

  $ (10,819 )   $ 52,494       $ 41,675  
                           

Net income (loss) per share:

                         

Basic

  $ (0.48 )   $ 2.30       $ 1.83  

Diluted

  $ (0.48 )   $ 2.27       $ 1.81  
                           

Weighted average shares outstanding:

                         

Basic

    22,714                 22,714  

Diluted

    22,714                 23,006  
                           
                           

Comprehensive income (loss)

  $ (1,143 )             $ 51,351  

 

(a) Selling, general and administrative included $1.3 million for acquisition related and integration costs and $0.7 million of restructuring charges

(b) Research & development included $0.1 million of acquistion charges

(c) Income taxes included an estimated one-time tax charge of $49 million for the enactment of the Tax Cuts and Jobs Act for deemed repatriation of unremitted earnings of foreign subsidiaries net of $2 million for other net tax benefits

 

The Company believes that certain non-GAAP measures, when presented in conjunction with comparable GAAP measures, are useful because that information is an appropriate measure for evaluating the Company’s operating performance.  Internally, the Company uses this non-GAAP information as an indicator of business performance, and evaluates management’s effectiveness with specific reference to this indicator. These measures should be considered in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.  

 

 

 

 

LITTELFUSE, INC.

Condensed Consolidated Statement of Comprehensive Income

Supplemental GAAP to Non-GAAP Reconciliation

(In thousands of USD, except per share data, unaudited)

 

   

GAAP As Reported

   

Non-GAAP Adjustments

     

Non-GAAP

 
   

Dec 30, 2017 YTD

   

Dec 30, 2017 YTD

     

Dec 30, 2017 YTD

 
                           

Net sales

  $ 1,221,534     $ -       $ 1,221,534  
                           

Cost of sales

    715,001       (1,679 )

(a) 

    713,322  
                           

Gross profit

    506,533       1,679         508,212