Welcome!

News Feed Item

Bel Reports First Quarter Net Earnings of $0.20 Per Class A Share and $0.22 Per Class B Share as Revenue Increases 31.1% to $82.6 Million

Bel Fuse Inc. (NASDAQ:BELFA)(NASDAQ:BELFB) today announced preliminary financial results for the first quarter of 2014.

First Quarter Highlights

  • Net sales increased 31.1% to $82.6 million versus $63.0 million in last year's first quarter.
  • Net earnings increased to $0.20 per Class A share and $0.22 per Class B share versus net losses of $0.05 per Class A and Class B share for the first quarter last year.
  • Income from operations increased to $2.9 million versus a loss of $1.4 million in the same quarter last year.

Recent Event

  • Agreed to acquire Power Solutions business from ABB for $117 million.

CEO Comments
Daniel Bernstein, Bel's President and CEO, said, "Bel delivered solid financial results in what is our seasonally weakest quarter of the year. First quarter revenue increased 31.1%, primarily reflecting sales of $16.2 million at TRP, which we acquired on March 29, 2013. Cost of sales as a percentage of revenue decreased 2.6 percentage points versus prior year, contributing to a $4.3 million increase in operating income for the first quarter of 2014 compared to the same period last year. First quarter net earnings increased to $2.5 million compared to a net loss of $0.6 million for the same quarter last year. This performance is especially noteworthy in view of the fact that in addition to the normal seasonal impact of the Chinese New Year on our first quarter operations, we were also affected by a downward adjustment in inventory levels among some of our large networking customers.

"On April 25, 2014, we entered into a definitive agreement to acquire the Power Solutions business of ABB Ltd. Power Solutions is a leading provider of high-efficiency and high-density power conversion products for server, storage and networking equipment, industrial applications and power systems. Bel will pay approximately $117 million in cash to acquire the business, which had trailing twelve month revenue of approximately $251 million. The acquisition, which is subject to regulatory approvals and other customary closing conditions, is expected to close in the second quarter of 2014 and to be immediately accretive to Bel's earnings. Since 2009, we have believed that the combination of the two respective power businesses would create a dynamic enterprise capable of competing effectively on a global basis. Bel is excited by the many growth opportunities that will be created by this transaction and we look forward to building an industry leading power business with our new colleagues at Power Solutions."

Bel intends to finance this acquisition through bank borrowings and cash on hand.

First Quarter Results
For the three months ended March 31, 2014, net sales increased to $82.6 million compared to $63.0 million for the first quarter of 2013, as revenue from recently acquired businesses and higher sales of magnetics and interconnect products more than offset a decrease in modular product sales.

Operating income for the first quarter of 2014 increased to $2.9 million. This compares to an operating loss for the first quarter of 2013 of $1.4 million, which included pre-tax restructuring and acquisition-related charges of $0.6 million. Excluding these and other charges, as detailed in the table reconciling GAAP to non-GAAP financial measures included in this release, the non-GAAP operating loss for the first quarter of 2013 was $0.8 million.

Net earnings for the first quarter of 2014 were $2.5 million. This compares to a net loss for the first quarter of 2013 of $0.6 million. Excluding amounts detailed in the table reconciling GAAP to non-GAAP financial measures mentioned above, the non-GAAP net loss for the first quarter of 2013 was $0.4 million.

Net earnings per diluted Class A common share for the first quarter of 2014 were $0.20, compared to a net loss per diluted Class A common share of $0.05 for the first quarter of 2013. Adjusted to exclude the amounts referenced above, non-GAAP net earnings per diluted Class A common share for the first quarter of 2014 were $0.21 and the net loss per diluted Class A common share for the first quarter of 2013 was $0.04.

Net earnings per diluted Class B common share were $0.22 for the first quarter of 2014, compared to a net loss of $0.05 per diluted Class B common share for the first quarter of 2013. Adjusted to exclude the amounts referenced above, the non-GAAP net loss per diluted Class B common share was $0.04 for the first quarter of 2013.

Balance Sheet Data
As of March 31, 2014 (and without giving effect to the Power Solutions transaction), Bel had working capital of $141.4 million, including cash and cash equivalents of $53.9 million, a current ratio of 4.0-to-1, total long-term obligations of $13.0 million, and stockholders' equity of $231.2 million. In comparison, at December 31, 2013, Bel reported working capital of $137.2 million, including cash and cash equivalents of $62.1 million, a current ratio of 3.0-to-1, total long-term obligations of $12.5 million, and stockholders' equity of $228.7 million. Cash and cash equivalents decreased by $8.2 million since the end of 2013 primarily due to repayments of short-term borrowings.

Conference Call
Bel has scheduled a conference call at 11:00 a.m. EDT today. To participate, dial (720) 545-0088, conference ID #25431617. A simultaneous webcast is available from the Investors link under the "About Bel" tab at www.BelFuse.com. The webcast replay will be available for 20 days at this same Internet address. For a telephone replay, dial (855) 859-2056, conference ID #25431617, after 2:00 p.m. EDT.

About Bel
Bel (www.belfuse.com) and its divisions are primarily engaged in the design, manufacture, and sale of products used in networking, telecommunications, high-speed data transmission, commercial aerospace, military, transportation, and consumer electronics. Products include magnetics (discrete components, power transformers and MagJack® connectors with integrated magnetics), modules (DC-DC converters and AC-DC power supplies, integrated analog front-end modules and custom designs), circuit protection (miniature, micro and surface mount fuses) and interconnect devices (micro, circular and filtered D-Sub connectors, fiber optic connectors, passive jacks, plugs and high-speed cable assemblies). The Company operates facilities around the world.

Forward-Looking Statements
Except for historical information contained in this press release, the matters discussed in this press release (including the statements regarding the anticipated accretive impact of the pending Power Solutions transaction and the growth opportunities that may result from that transaction) are forward-looking statements that involve risks and uncertainties. Actual results could differ materially from Bel's projections. Among the factors that could cause actual results to differ materially from such statements are: the market concerns facing our customers; the continuing viability of sectors that rely on our products; the effects of business and economic conditions; difficulties associated with integrating recently acquired companies; capacity and supply constraints or difficulties; product development, commercialization or technological difficulties; the regulatory and trade environment; risks associated with foreign currencies; uncertainties associated with legal proceedings; the market's acceptance of the Company's new products and competitive responses to those new products; and the risk factors detailed from time to time in the Company's SEC reports. In light of the risks and uncertainties, there can be no assurance that any forward-looking statement will in fact prove to be correct. We undertake no obligation to update or revise any forward looking statements.

  BEL FUSE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(000s omitted, except for per share data)
 
 
Three Months Ended

March 31,

  2014         2013  
 
(unaudited)
 
Net sales $ 82,646   $ 63,028  
 
Costs and expenses:
Cost of sales 68,576 53,932
Selling, general and administrative 11,189 10,399
Restructuring charges   --     124  
 
Total costs and expenses   79,765     64,455  
 
Income (loss) from operations 2,881 (1,427 )
 
Interest expense (30 ) (3 )
Interest income and other, net   51     38  
 
Earnings (loss) before provision (benefit) for income taxes 2,902 (1,392 )
Provision (benefit) for income taxes   399     (834 )
 
Net earnings (loss) $ 2,503   $ (558 )
 
Earnings (loss) per Class A common share - basic and diluted $ 0.20   $ (0.05 )
 
Weighted average Class A common shares outstanding - basic and diluted   2,175     2,175  
 
Earnings (loss) per Class B common share - basic and diluted $ 0.22   $ (0.05 )
 
Weighted average Class B common shares outstanding - basic and diluted   9,335     9,221  

* Prior period amounts have been restated to reflect adjustments arising during the measurement period related to the 2012 and 2013 acquisitions as if all such adjustments had been recognized on the dates of acquisition.

 
CONDENSED CONSOLIDATED BALANCE SHEETS
(000s omitted)
 
  Mar. 31,   Dec. 31,     Mar. 31,   Dec. 31,
ASSETS 2014 2013 LIABILITIES & EQUITY 2014 2013
    (unaudited)   (audited)*       (unaudited)   (audited)*
 
Current assets $ 188,105 $ 204,155 Short-term borrowings $ 4,688 $ 12,739

Property, plant & equipment, net

39,344 40,896 Other current liabilities 41,973 54,242
Goodwill and intangibles 47,628 47,962 Noncurrent liabilities 13,047 12,458
Other assets   15,827   15,128 Stockholders' equity   231,196     228,702
 
Total Assets $ 290,904 $ 308,141

Total Liabilities & Equity

$ 290,904 $ 308,141
 
  BEL FUSE INC. AND SUBSIDIARIES
NON-GAAP MEASURES (unaudited)
(000s omitted, except for per share data)
 
 
  Three Months Ended March 31, 2014

Income
from
operations

 

Net
earnings(2)

 

Net earnings per
Class A common
share - diluted(3)

 

Net earnings per
Class B common
share - diluted(3)

 
GAAP measures $ 2,881 $ 2,503 $ 0.20 $ 0.22
Severance costs 57 35 0.01 --
Acquisitions and other related costs   9     6     --     --  
Non-GAAP measures(1) $ 2,947   $ 2,544   $ 0.21   $ 0.22  
 
 
 
Three Months Ended March 31, 2013

Loss
from
operations

Net
loss(2)

Net loss per
Class A common
share - diluted(3)

Net loss per
Class B common
share - diluted(3)

 
GAAP measures $ (1,427 ) $ (558 ) $ (0.05 ) $ (0.05 )

Restructuring charges, severance and reorganization costs

  208     129     0.01     0.01  
Acquisitions and other related costs   402     365     0.03     0.03  

Restoration of prior year Research and Experimentation (R&E) credit

  --     (385 )   (0.03 )   (0.03 )
Non-GAAP measures(1) $ (817 ) $ (449 ) $ (0.04 ) $ (0.04 )
 

(1) The non-GAAP measures presented above 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 (loss) from operations, net earnings (loss), earnings (loss) 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.

Based upon discussions with investors and analysts, we believe that the reader's understanding of Bel's performance and profitability is enhanced by reference to these non-GAAP measures. Removal of amounts such as charges for restructuring, severance, and reorganization; acquisition-related costs; and certain income tax adjustments facilitates comparison of our results among reporting periods. We believe that such amounts are not reflective of the relevant business in the period in which the gain or charge is recorded for accounting purposes.

(2) Net of income tax at effective rate in the applicable tax jurisdiction.

(3) Individual amounts of earnings per share may not agree to the total due to rounding.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, will discuss how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved effi...
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, will discuss using predictive analytics to ...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Father business cycles and digital consumers are forcing enterprises to respond faster to customer needs and competitive demands. Successful integration of DevOps and Agile development will be key for business success in today’s digital economy. In his session at DevOps Summit, Pradeep Prabhu, Co-Founder & CEO of Cloudmunch, covered the critical practices that enterprises should consider to seamlessly integrate Agile and DevOps processes, barriers to implementing this in the enterprise, and pr...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
The principles behind DevOps are not new - for decades people have been automating system administration and decreasing the time to deploy apps and perform other management tasks. However, only recently did we see the tools and the will necessary to share the benefits and power of automation with a wider circle of people. In his session at DevOps Summit, Bernard Sanders, Chief Technology Officer at CloudBolt Software, explored the latest tools including Puppet, Chef, Docker, and CMPs needed to...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
CIOs and those charged with running IT Operations are challenged to deliver secure, audited, and reliable compute environments for the applications and data for the business. Behind the scenes these tasks are often accomplished by following onerous time-consuming processes and often the management of these environments and processes will be outsourced to multiple IT service providers. In addition, the division of work is often siloed into traditional "towers" that are not well integrated for cro...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...