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) – May 2, 2018




 (Exact name of registrant as specified in its charter)





(State of other jurisdiction
of incorporation)

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 May 2, 2018, Littelfuse, Inc. (the “Company”) issued a press release announcing the results of its operations for the quarter ended March 31, 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 9.01 Financial Statements and Exhibits


d) Exhibits.


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




Press Release, dated May 2, 2018







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: May 2, 2018

By: /s/ Meenal A. Sethna


Meenal A. Sethna
Executive Vice President and Chief Financial Officer





Exhibit Index



Press release, dated May 2, 2018


Exhibit 99.1



Littelfuse Inc.

8755 West Higgins Road, Suite 500

Chicago, Illinois 60631

p: (773) 682-1000  f: (773) 628-0802




Company delivers record sales and adjusted earnings per share


CHICAGO, May 2, 2018Littelfuse, Inc. (NASDAQ:LFUS) today reported financial results for the first quarter ended March 31, 2018:


Net sales were $417.8 million, up 46% versus the prior year. Organic revenue growth was 10%.

Growth by segment versus the prior year period:



Electronics sales increased 72% (up 10% organically)



Automotive sales increased 17% (up 10% organically)



Industrial sales increased 14% (up 13% organically)


GAAP diluted EPS was $1.45; this includes $23 million of after-tax charges primarily related to certain purchase accounting adjustments and costs for the acquisition of IXYS Corporation, net of non-operating foreign exchange gains


Adjusted diluted EPS of $2.39 increased 41% over last year


GAAP effective tax rate was 19.3% and the adjusted effective tax rate was 19.6%


Cash flow from operations was $69.3 million and free cash flow was $51.4 million


The electronics segment book-to-bill ratio for the first quarter was 1.14 (excluding IXYS)


"We continued our momentum with an exceptional start to 2018,” said Dave Heinzmann, Littelfuse Chief Executive Officer. “With our focus on the secular trends of a safer, greener and increasingly connected world, and consistent operational performance, we delivered sales and adjusted earnings that meaningfully exceeded our guidance. We are off to a strong start integrating the IXYS business, and have taken initial steps to drive synergy realization. Leveraging the broad-based demand across our businesses, we expect robust top-line growth and consistent operating margins in the second quarter. We are focused on the right growth opportunities to continue executing our long-term strategy and driving double digit sales and earnings growth.”






Page 2


For the second quarter of 2018*:


Net sales are expected to be in the range of $450 to $462 million, up 45% 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 $2.39 to $2.53, representing 17% growth over the prior year quarter at the midpoint


Similar to prior years, second quarter stock compensation expense is higher than other quarters due to equity grant provisions, equating to approximately eight cents of earnings per share


Adjusted effective tax rate is expected to be in the range of 19.5% to 20.5%; the midpoint is approximately 500 basis points higher than the prior year quarter. At a constant year-over-year tax rate, EPS growth would be 25%


The guidance includes a full quarter of IXYS results, along with a full quarter of related share dilution and interest expense from the debt issued in conjunction with the transaction.


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 and Share Repurchase Authorization


The company will pay a cash dividend on its common stock of $0.37 per share on June 7, 2018 to shareholders of record as of May 24, 2018


The company’s previous share repurchase authorization expired on April 30, 2018 and has been replaced with a one million share repurchase authorization effective through April 30, 2019. No shares were repurchased under the former authorization


Conference Call and Webcast Information


Littelfuse will host a conference call today, Wednesday, May 2, 2018, at 9:00 a.m. Central / 10:00 a.m. Eastern time to discuss the results. The call will be broadcast live and available for replay at Littelfuse.com.


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.






Page 3


“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.






Page 4


CONTACT:  Meenal Sethna

Executive Vice President and CFO

(773) 628-0616







Page 5



Net Sales and Operating Income by Segment

(In thousands of USD, unaudited)



First Quarter







Growth /



Net Sales



  $ 264,411     $ 153,767     72%  


    126,131       107,839     17%  


    27,271       23,835     14%  

Total net sales

  $ 417,813     $ 285,441     46%  



First Quarter







Growth /



Operating Income/(Expense)



  $ 53,964     $ 35,206     53%  


    18,390       15,065     22%  


    4,709       106    



Other (1)

    (39,492 )     (1,525 )  



Total operating income

  $ 37,571     $ 48,852     (23%)  

Operating margin

    9.0 %     17.1 %      

Interest expense

    5,423       3,120        

Foreign exchange gain

    (10,555 )     (1,557 )      

Other income, net

    (1,943 )     (139 )      

Income before taxes

  $ 44,646     $ 47,428     (6%)  


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.)



First Quarter






Growth /



Operating Margins



    20.4 %     22.9 %     (2.5% )


    14.6 %     14.0 %     0.6 %


    17.3 %     0.4 %     16.8 %





Page 6




Condensed Consolidated Balance Sheets


(In thousands of USD)




March 31, 2018


December 30, 2017






Current assets:


Cash and cash equivalents

  $ 412,458     $ 429,676  

Short-term investments

    37       35  

Accounts receivable, less allowances

    244,905       182,699  


    263,969       140,789  

Prepaid income taxes and income taxes receivable

    3,899       1,689  

Prepaid expenses and other current assets

    47,794       37,452  

Total current assets

    973,062       792,340  

Property, plant and equipment:



    29,575       9,547  


    118,170       86,599  


    555,578       505,838  
      703,323       601,984  

Accumulated depreciation

    (366,118 )     (351,407 )

Net property, plant and equipment

    337,205       250,577  

Intangible assets, net of amortization:


Patents, licenses and software

    129,610       81,911  

Distribution network

    11,038       12,872  

Customer lists, trademarks and tradenames

    254,755       109,067  




    840,574       453,414  
      1,245,980       657,264  


    31,128       10,993  

Deferred income taxes

    12,039       11,858  

Other assets

    28,096       17,070  

Total assets

  $ 2,627,510     $ 1,740,102  



Current liabilities:


Accounts payable

  $ 120,817     $ 101,844  

Accrued payroll

    41,220       49,962  

Accrued expenses

    74,925       48,994  

Accrued severance

    1,367       1,459  

Accrued income taxes

    15,938       16,285  

Current portion of long-term debt

    10,111       6,250  

Total current liabilities

    264,378       224,794  

Long-term debt, less current portion

    743,437       489,361  

Deferred income taxes

    60,525       17,069  

Accrued post-retirement benefits

    35,817       18,742  

Other long-term liabilities

    81,379       62,580  

Total equity

    1,441,974       927,556  

Total liabilities and equity

  $ 2,627,510     $ 1,740,102  





Page 7



Condensed Consolidated Statements of Comprehensive Income

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



For the Three Months Ended


March 31, 2018


April 1, 2017


Net sales

  $ 417,813     $ 285,441  

Cost of sales

    268,190       171,791  

Gross profit

    149,623       113,650  

Selling, general and administrative expenses

    77,514       46,703  

Research and development expenses

    22,540       12,151  

Amortization of intangibles

    11,998       5,944  
      112,052       64,798  

Operating income

    37,571       48,852  

Interest expense

    5,423       3,120  

Foreign exchange gain

    (10,555 )     (1,557 )

Other income, net

    (1,943 )     (139 )

Income before income taxes

    44,646       47,428  

Income taxes

    8,617       8,537  

Net income

  $ 36,029     $ 38,891  

Net income per share:



  $ 1.48     $ 1.71  


  $ 1.45     $ 1.69  

Weighted average shares outstanding:



    24,339       22,748  


    24,775       22,989  

Comprehensive income

  $ 35,750     $ 44,518  





Page 8



Condensed Consolidated Statements of Cash Flows

(In thousands of USD, unaudited)



For theThree Months Ended


March 31, 2018


April 1, 2017




Net income

  $ 36,029     $ 38,891  

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



    11,614       9,128  

Amortization of intangibles

    11,998       5,944  

Provision for bad debts

    (13 )     351  

Stock-based compensation

    8,714       3,583  

Non-cash inventory charges

    17,896       -  

Unrealized gain on investments

    (1,864 )     -  

Loss on sale of assets

    99       600  

Deferred income taxes

    842       616  

Changes in operating assets and liabilities


Accounts receivable

    (8,417 )     (2,719 )


    (269 )     (3,296 )

Accounts payable

    2,990       (3,295 )

Accrued expenses (including post-retirement)

    12,573       4,140  

Accrued payroll and severance

    (18,607 )     (20,221 )

Accrued income taxes

    (1,174 )     (220 )

Prepaid expenses and other assets

    (3,143 )     (10,559 )

Net cash provided by operating activities

    69,268       22,943  



Purchases of property, plant and equipment

    (17,909 )     (12,377 )

Acquisition of business, net of cash acquired

    (306,487 )     (14,172 )

Proceeds from maturities of short-term investments

    -       3,739  

Decrease in entrusted loan receivable

    -       655  

Proceeds from sale of assets

    19       57  

Net cash used in investing activities

    (324,377 )     (22,098 )



Proceeds of revolving credit facility

    50,000       -  

Proceeds of term loan

    75,000       -  

Payments of revolving credit facility

    (47,000 )     (112,500 )

Payments of term loan

    (2,500 )     (1,563 )

Net proceeds from senior notes payable

    175,000       125,000  

Payments of entrusted loan

    -       (655 )

Debt issuance costs paid

    (878 )     (71 )

Cash dividends paid

    (9,198 )     (7,472 )

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

    (116 )     199  

Net cash provided by financing activities

    240,308       2,938  

Effect of exchange rate changes on cash and cash equivalents

    (2,417 )     (928 )

Increase (decrease) in cash and cash equivalents

    (17,218 )     2,855  

Cash and cash equivalents at beginning of period

    429,676       275,124  

Cash and cash equivalents at end of period

  $ 412,458     $ 277,979  





Page 9



Supplemental Financial Information

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


Non-GAAP EPS reconciliation






GAAP diluted EPS

  $ 1.45     $ 1.69  

EPS impact of Non-GAAP adjustments (below)

    0.94       -  

Adjusted diluted EPS

  $ 2.39     $ 1.69  


Non-GAAP adjustments - (income)/expense






Acquisition related and integration costs

  $ 11.7     $ 1.5  


    0.8       -  

Amortization backlog - IXYS

    2.5       -  

Change in control - IXYS

    2.1       -  
Acquisition related stock-based compensation charge     4.5       -  

Purchase accounting inventory adjustments

    17.9       -  

Non-gaap adjustments to operating income

    39.5       1.5  

Non-operating foreign exchange gain

    (10.6 )     (1.6 )

Non-gaap adjustments to income before income taxes

    28.9       (0.1 )

Income taxes

    5.8       -  

Non-gaap adjustments to net income

  $ 23.1     $ (0.1 )

Total EPS impact

  $ 0.94     $ -  


Adjusted operating margin /Adjusted EBITDA reconciliation






Net sales

  $ 417.8     $ 284.4  

GAAP operating income

  $ 37.6     $ 48.9  

Add back non-gaap adjustments

    39.5       1.5  

Adjusted operating income

  $ 77.1     $ 50.4  

Adjusted operating margin

    18.5 %     17.7 %

Add back amortization

    12.0       5.9  

Add back depreciation

    11.6       9.1  

Adjusted EBITDA

  $ 100.7     $ 65.4  

Adjusted EBITDA margin

    24.1 %     23.0 %


Net sales reconciliation


Q1-18 vs. Q1-17










Net sales growth

    72 %     17 %     14 %     46 %




    58 %     -       -       31 %


    -       -       -       -  

FX impact

    4 %     7 %     1 %     5 %

Organic net sales growth

    10 %     10 %     13 %     10 %


Income tax reconciliation






Income taxes

  $ 8.6     $ 8.5  

Effective rate

    19.3 %     18.0 %

Non-GAAP adjustments - income taxes

    5.8       -  

Adjusted income taxes

  $ 14.4     $ 8.5  

Adjusted effective rate

    19.6 %     18.0 %


Free cash flow reconcilation






Net cash provided by operating activities

  $ 69.3     $ 22.9  
Less: Purchases of property, plant and equipment     (17.9 )     (12.4 )

Free cash flow

  $ 51.4     $ 10.5  



Note: Totals will not always foot due to rounding


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