Littelfuse Reports First Quarter Results
First Quarter Highlights
-
Sales for the first quarter of 2012 increased 9% sequentially to
$160.6 million but declined 4% compared to the first quarter of 2011. The electronics inventory correction was primarily responsible for the year-over-year decline, while all businesses contributed to the sequential improvement. -
Diluted earnings per share for the first quarter of 2012 were
$0.81 . This exceeded the company's first quarter guidance of$0.68 to $0.78 , but was below first quarter 2011 diluted earnings of$0.96 per share due primarily to lower sales and the effects of a weaker euro. -
Sales and order trends by business unit were as follows:
- Electronics sales declined 12% year over year primarily due to inventory swings in the supply chain. In the first quarter of 2011, distributors were building inventories and in the most recent quarter, distributors were reducing inventories. Electronics sales in the first quarter of 2012 increased 6% sequentially as the effects of the inventory correction subsided as the quarter progressed.
-
Automotive sales increased 15% sequentially but declined 2%
compared to a strong first quarter of 2011. The year-over-year
decline was due to one-time aftermarket sales in the first quarter
of 2011 and a weaker euro partially offset by increased
Cole Hersee sales. -
Electrical sales increased 19% year over year due to continued
strong growth in relays and custom products. Excluding Selco
(acquired in
August 2011 ), electrical sales increased 13% year-over-year. - The electronics book-to-bill ratio for the first quarter of 2012 improved to 1.16 from 0.96 for the fourth quarter of 2011.
-
Cash provided by operating activities was
$7.9 million for the first quarter of 2012 compared to$13.7 million for the first quarter of 2011 primarily due to a$5.0 million contribution to the U.S. pension plan. Capital expenditures for the first quarter of 2012 were$3.2 million compared to$4.6 million for the first quarter of 2011. -
In April, the company made an additional
$10.0 million investment in Shocking Technologies, a start-up company that manufactures specialty polymer materials which are embedded in printed circuit boards to provide electrostatic discharge protection.Littelfuse has now invested$16.0 million in Shocking Technologies for an ownership stake of approximately 18%. -
The previous share repurchase authorization expired on
April 30, 2012 and was replaced with a one million share repurchase authorization effective throughApril 2013 .
"The first quarter showed improvements in all key areas compared to the
fourth quarter," said
Outlook
-
Sales for the second quarter of 2012 are expected to be in the range
of
$168 to $178 million which represents 5% to 11% sequential growth. -
Earnings for the second quarter of 2012 are expected to be in the
range of
$0.94 to $1.04 per diluted share. -
Although capital expenditures were only
$3.2 million in the first quarter of 2012, they are expected to increase over the next three quarters due to building expansions in support of growth initiatives at the company's manufacturing sites inCanada ,the Philippines andMexico . Capital expenditures for the 2012 year are expected to be in the range of$30 to $35 million .
Dividend
The company will pay a cash dividend of
Conference Call Webcast Information
About
Founded in 1927,
For more information, please visit Littelfuse's Web site at www.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
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Net Sales by Business Unit and Geography | |||||||||
(In millions of USD, unaudited) | |||||||||
First Quarter | |||||||||
2012 |
2011 |
% Change |
|||||||
Business Unit |
|||||||||
Electronics | $ | 77.1 | $ | 87.4 | (12 | %) | |||
Automotive | 52.6 | 53.9 | (2 | %) | |||||
Electrical | 30.9 | 25.9 | 19 | % | |||||
Total | $ | 160.6 | $ | 167.2 | (4 | %) | |||
First Quarter | |||||||||
2012 |
2011 |
% Change |
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Geography |
|||||||||
|
$ | 74.0 | $ | 70.8 | 5 | % | |||
|
27.8 | 32.6 | (15 | %) | |||||
|
58.8 | 63.8 | (8 | %) | |||||
Total | $ | 160.6 | $ | 167.2 | (4 | %) |
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Condensed Consolidated Balance Sheets | |||||||||
(In thousands of USD, except share amounts) | |||||||||
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(Unaudited) |
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ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 178,692 | $ | 164,016 | |||||
Short-term investments | 19,022 | 13,997 | |||||||
Accounts receivable, less allowances | 106,985 | 92,088 | |||||||
Inventories | 77,729 | 75,575 | |||||||
Deferred income taxes | 12,815 | 11,895 | |||||||
Prepaid expenses and other current assets | 14,797 | 14,219 | |||||||
Assets held for sale | 6,658 | 6,592 | |||||||
Total current assets | 416,698 | 378,382 | |||||||
Property, plant and equipment: | |||||||||
Land | 5,075 | 4,888 | |||||||
Buildings | 53,577 | 52,730 | |||||||
Equipment | 285,711 | 281,521 | |||||||
344,363 | 339,139 | ||||||||
Accumulated depreciation | (227,704 | ) | (220,255 | ) | |||||
Net property, plant and equipment | 116,659 | 118,884 | |||||||
Intangible assets, net of amortization: | |||||||||
Patents, licenses and software | 10,500 | 10,753 | |||||||
Distribution network | 18,998 | 19,307 | |||||||
Customer lists, trademarks and tradenames | 14,505 | 14,523 | |||||||
Goodwill | 116,693 | 115,697 | |||||||
160,696 | 160,280 | ||||||||
Investments | 16,918 | 14,867 | |||||||
Deferred income taxes | 3,761 | 4,191 | |||||||
Other assets | 1,852 | 1,820 | |||||||
Total assets | $ | 716,584 | $ | 678,424 | |||||
LIABILITIES AND EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 28,650 | $ | 19,934 | |||||
Accrued payroll | 15,534 | 23,048 | |||||||
Accrued expenses | 8,772 | 8,861 | |||||||
Accrued severance | 1,743 | 1,843 | |||||||
Accrued income taxes | 13,214 | 10,591 | |||||||
Current portion of long-term debt | 96,500 | 85,000 | |||||||
Total current liabilities | 164,413 | 149,277 | |||||||
Long-term debt, less current portion | - | - | |||||||
Accrued post-retirement benefits | 10,544 | 15,292 | |||||||
Other long-term liabilities | 12,270 | 12,752 | |||||||
Total equity | 529,357 | 501,103 | |||||||
Total liabilities and equity | $ | 716,584 | $ | 678,424 | |||||
Common shares issued and outstanding of 21,668,819 and 21,552,529
at |
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Consolidated Statements of Comprehensive Income | |||||||||
(In thousands of USD, except per share data, unaudited) | |||||||||
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For the Three Months Ended |
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|
|
|
|
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Net sales | $ | 160,578 | $ | 167,160 | |||||
Cost of sales | 99,716 | 102,457 | |||||||
Gross profit | 60,862 | 64,703 | |||||||
Selling, general and administrative expenses | 28,409 | 27,395 | |||||||
Research and development expenses | 5,161 | 4,795 | |||||||
Amortization of intangibles | 1,468 | 1,595 | |||||||
35,038 | 33,785 | ||||||||
Operating income | 25,824 | 30,918 | |||||||
Interest expense | 423 | 336 | |||||||
Other expense (income), net | 101 | (26 | ) | ||||||
Income before income taxes | 25,300 | 30,608 | |||||||
Income taxes | 7,411 | 9,030 | |||||||
Net income | $ | 17,889 | $ | 21,578 | |||||
Net income per share: | |||||||||
|
$ | 0.83 | $ | 0.98 | |||||
Diluted | $ | 0.81 | $ | 0.96 | |||||
Weighted average shares and equivalent shares outstanding: |
|||||||||
|
21,608 | 21,878 | |||||||
Diluted | 21,929 | 22,328 | |||||||
Diluted Net Income Per Share |
|||||||||
Net income as reported | $ | 17,889 | $ | 21,578 | |||||
Less: income allocated to participating securities | (50 | ) | (102 | ) | |||||
Net income available to common shareholders | $ | 17,839 | $ | 21,476 | |||||
Weighted average shares adjusted for dilutive securities | 21,929 | 22,328 | |||||||
Diluted net income per share | $ | 0.81 | $ | 0.96 | |||||
Comprehensive income | $ | 27,031 | $ | 32,885 |
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Consolidated Statements of Cash Flows | |||||||||
(In thousands of USD, unaudited) | |||||||||
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For the Three Months Ended |
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OPERATING ACTIVITIES: | |||||||||
Net income | $ | 17,889 | $ | 21,578 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||
Depreciation | 6,481 | 5,995 | |||||||
Amortization of intangibles | 1,468 | 1,595 | |||||||
Non-cash inventory charge* | 205 | 3,678 | |||||||
Stock-based compensation | 1,365 | 1,182 | |||||||
Excess tax benefit on stock-based compensation | (475 | ) | (975 | ) | |||||
Loss (gain) on sale of assets | 7 | (167 | ) | ||||||
Changes in operating assets and liabilities: | |||||||||
Accounts receivable | (14,017 | ) | (11,279 | ) | |||||
Inventories | (1,713 | ) | 675 | ||||||
Accounts payable | 8,552 | 3,904 | |||||||
Accrued expenses (including post retirement) | (5,543 | ) | (557 | ) | |||||
Accrued payroll and severance | (7,728 | ) | (10,124 | ) | |||||
Accrued taxes | 1,474 | 771 | |||||||
Prepaid expenses and other | (101 | ) | (2,559 | ) | |||||
Net cash provided by operating activities | 7,864 | 13,717 | |||||||
INVESTING ACTIVITIES: | |||||||||
Purchases of property, plant and equipment | (3,244 | ) | (4,614 | ) | |||||
Purchase of short-term investments | (4,616 | ) | - | ||||||
Proceeds from sale of assets | 21 | 167 | |||||||
Net cash used in investing activities | (7,839 | ) | (4,447 | ) | |||||
FINANCING ACTIVITIES: | |||||||||
Proceeds from debt | 17,000 | 15,000 | |||||||
Payments of term debt | - | (2,000 | ) | ||||||
Payments of revolving credit facility | (5,500 | ) | (12,000 | ) | |||||
Cash dividends paid | (3,888 | ) | (3,284 | ) | |||||
Proceeds from exercise of stock options | 4,217 | 9,998 | |||||||
Excess tax benefit on stock-based compensation | 475 | 975 | |||||||
Net cash provided by financing activities | 12,304 | 8,689 | |||||||
Effect of exchange rate changes on cash and cash equivalents |
2,347 | 3,854 | |||||||
Increase in cash and cash equivalents | 14,676 | 21,813 | |||||||
Cash and cash equivalents at beginning of period | 164,016 | 109,720 | |||||||
Cash and cash equivalents at end of period | $ | 178,692 | $ | 131,533 | |||||
* Purchase accounting adjustment related to acquisitions. |
Vice
President, Operations Support, CFO and Treasurer (773) 628-0810
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