[July 29, 2015] |
|
Bel Second Quarter GAAP Net Earnings Increase 98%, Adjusted Net Earnings Increase 40% on New Record Sales
Bel Fuse Inc. (NASDAQ:BELFA and NASDAQ:BELFB) today announced
preliminary financial results for the second quarter and first half of
2015.
Second Quarter Highlights
-
Net sales increased 46.5% to a second quarter record $145.7 million as
compared with net sales of $99.4 million for the second quarter of
2014.
-
GAAP Net earnings per share - "EPS" -- were $0.49 per Class A share
and $0.52 per Class B share as compared with EPS of $0.25 per Class A
share and $0.27 per Class B share last year.
-
Non-GAAP Adjusted EPS was $0.52 per Class A share and $0.55 per
Class B share as compared with non-GAAP Adjusted EPS of $0.38 per
Class A share and $0.41 per Class B share last year.
-
Non-GAAP Adjusted operating income increased 28.1% to $8.0 million as
compared with Non-GAAP adjusted operating income of $6.3 million for
the second quarter of 2014.
-
Adjusted EBITDA increased 48.6% to $14.0 million as compared with
Adjusted EBITDA of $9.4 million for the second quarter of 2014.
Non-GAAP financial measures, such as Non-GAAP Adjusted EPS and Adjusted
EBITDA, exclude the impact of special items, such as acquisition-related
costs, restructuring charges and certain other items. Please refer to
the financial information included with this press release for
reconciliations of GAAP financial measures to Non-GAAP financial
measures. Results include the results of Power Solutions, acquired in
June 2014, and Connectivity Solutions, acquired in July and August 2014
from date of acquisition.
CEO Comments
Commenting on Bel's financial results, Daniel Bernstein, President and
CEO, said, "We are extremely pleased that our adjusted net earnings
increased by 40%, showing that our strategy of driving cost out of the
acquired companies is paying off. These steps will continue with the
consolidation of our offices in San Jose and Hong Kong, downsizing our
San Diego facility and fine tuning costs throughout the organization. We
will generate savings immediately and project annual savings of $3
million to $4 million with further projected write-offs in the third
quarter of $1 million. We were also able to reduce our long term debt to
$206.3 million at June 30, 2015, a decrease of $26.4 million since
December 31, 2014."
Bernstein said that "the increase in second quarter revenue reflected
incremental sales of approximately $34.1 million from Power Solutions,
acquired on June 19, 2014, and approximately $17.1 million from
Connectivity Solutions, or CS, acquired from Emerson on July 25, 2014."
"Bel's Power Solutions business is emerging as a technology and quality
leader in the power products industry. Power Solutions was awarded a
number of important design wins during the quarter for cloud computing
and networking applications, an encouraging sign that our design
capabilities and commitment to world class manufacturing position us for
continued success. Management believes that our power business is more
competitive than ever before, the result of the actions we have taken
this past year to reduce costs and more efficiently employ our
resources. We are pleased by our customers' positive reaction to the
improvements in our manufacturing and quality, our open communication
and support, as well as the rapid integration of the acquired power
business into Bel's overall operations.
"At Connectivity Solutions, we have completed the restructuring of our
third party manufacturers' representative network as well as the
realignment of our distribution partners in the US and Europe,
simplifying our distribution process while teaming with partners who
will best support our growth strategy. During the quarter, Connectivity
Solutions received official Defense and Logistics Agency (DLA) approval
for the MIL-DTL-3933 QPL attenuator line from our Midwest Microwave
operation and our MIL-DTL-82536 Expanded Beam Fiber Optic Connectors
from our Fibreco business. These approvals should have a positive impact
on bookings and sales beginning in the third quarter, as well as
position us to participate in the growing market for harsh environment
fiber optic connectivity products. The business is also actively
developing and proceeding with qualification of advanced cable and
connector products targeting applications in next-generation
single-aisle commercial aircraft."
Second Quarter 2015 Results
Net sales increased 46.5% to $145.7 million compared to $99.4 million
for the second quarter of 2014. Excluding $51.2 million of incremental
net sales for the second quarter of 2015 attributable to last year's
acquisitions, net sales declined $4.9 million due to lower sales volume
of Bel's Interconnect products and DC/DC converters.
Operating income increased to $7.5 million compared to operating income
for the second quarter of 2014 of $3.7 million. Non-GAAP Adjusted
operating income increased to $8.0 million compared to Non-GAAP Adjusted
operating income for the second quarter of 2014 of $6.3 million,
primarily reflecting the incremental contributions of the 2014
acquisitions. Depreciation and amortization expense increased to $6.0
million for the second quarter of 2015 from $3.1 million for the second
quarter of 2014 due to incremental depreciation and amortization expense
associated with the 2014 acquisitions.
Interest expense increased to $2.0 million as compared with $0.2 million
for the second quarter of 2014, primarily due to the interest on
borrowings used to fund the 2014 acquisitions.
Net earnings for the second quarter of 2015 were $6.1 million compared
to net earnings for the second quarter of 2014 of $3.1 million. Non-GAAP
Adjusted net earnings for the second quarter of 2015 were $6.5 million
compared to Non-GAAP Adjusted net earnings for the second quarter of
2014 of $4.6 million.
First Half 2015 Results
Net sales increased 58.0% to $287.7 million compared to $182.1 million
for the first six months of 2014. Excluding $110.0 million of
incremental net sales for the first half 2015 attributable to last
year's acquisitions, net sales declined $4.4 million due to lower sales
volume of Bel's Interconnect products and DC/DC converters, partially
offset by increased sales volume of Magnetics.
Operating income increased to $16.5 million compared to operating income
for the first half of 2014 of $6.6 million. Non-GAAP Adjusted operating
income increased to $18.2 million compared to Non-GAAP Adjusted
operating income for the first six months of 2014 of $9.2 million.
Depreciation and amortization expense increased to $11.6 million for the
first half of 2015 from $6.5 million for the first half of 2014.
Operating income for the first half of 2015 included net unrealized
gains from foreign currency revaluation of approximately $4.9 million
before tax (approximately $0.32 per Class A and Class B shares net of
tax), primarily due to the favorable impact of the weakening of the Euro
against the U.S. dollar on a $34 million intercompany loan.
Interest expense increased to $4.2 million as compared with $0.3 million
for the first half of 2014.
Net earnings for the first six months of 2015 were $11.4 million
compared to net earnings for the first six months of 2014 of $5.6
million. Non-GAAP Adjusted net earnings for the first half of 2015 were
$12.5 million compared to Non-GAAP Adjusted net earnings for the first
half of 2014 of $7.1 million.
Balance Sheet Data
As of June 30, 2015, Bel reported working capital of $176.9 million,
including cash and cash equivalents of $71.4 million and a current ratio
of 2.4-to-1. Total debt obligations were $206.3 million. In comparison,
as of December 31, 2014 Bel had working capital of $188.9 million,
including cash and cash equivalents of $77.1 million, a current ratio of
2.6-to-1, and total debt obligations of $232.6 million.
In January 2015, Bel completed the sale of Power Solutions' Network
Power Systems product line and related transactions. Net proceeds of
approximately $9 million from these transactions were used to repay debt
in accordance with the provisions of the Company's credit agreement.
Conference Call
Bel has scheduled a conference call at 11:00 a.m. EDT today. To
participate, dial (720) 545 0088, conference ID #86248512. A
simultaneous webcast of the conference call may be accessed online from
the Events
and Presentations link of the Investors
page under the "About Bel" tab at www.BelFuse.com.
The webcast replay will be available for a period of 20 days at this
same Internet address. For a telephone replay, dial (404) 537 3406,
conference ID #86248512 after 1:00 p.m. EDT.
About Bel
Bel (www.belfuse.com)
designs, manufactures and markets a broad array of products that power,
protect and connect electronic circuits. These products are primarily
used in the networking, telecommunications, computing, military,
aerospace, transportation and broadcasting industries. Bel's product
groups include Magnetic Solutions (integrated connector modules, power
transformers, power inductors and discrete components), Power Solutions
and Protection (front-end, board-mount and industrial power products,
module products and circuit protection), and Connectivity Solutions
(expanded beam fiber optic, copper-based, RF and RJ connectors and 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 positioning Bel for continued success, generating savings
immediately and project annual savings of $3 million to $4 million with
further projected write-offs in the third quarter of $1 million, and the
impact of DLA approval on bookings and sales are forward-looking
statements (as described under the Private Securities Litigation Reform
Act of 1995) 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.
Non-GAAP Financial Measures
The Non-GAAP measures identified in this press release and supplementary
information 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 from operations, net earnings, earnings 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.
Website Information
We routinely post important information for investors on our website, www.belfuse.com,
in the "Investor Relations" section. We use our website as a means of
disclosing material, otherwise non-public information and for complying
with our disclosure obligations under Regulation FD. Accordingly,
investors should monitor the Investor Relations section of our website,
in addition to following our press releases, SEC filings, public
conference calls, presentations and webcasts. The information contained
on, or that may be accessed through, our website is not incorporated by
reference into, and is not a part of, this document.
|
Bel Fuse Inc.
|
Supplementary Information(1)
|
Condensed Consolidated Statements of Operations
|
(in thousands, except per share amounts) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
145,658
|
|
|
|
$
|
99,439
|
|
|
|
$
|
287,673
|
|
|
|
$
|
182,085
|
|
Cost of sales
|
|
|
|
117,098
|
|
|
|
|
81,493
|
|
|
|
|
232,301
|
|
|
|
|
150,069
|
|
Gross profit
|
|
|
|
28,560
|
|
|
|
|
17,946
|
|
|
|
|
55,372
|
|
|
|
|
32,016
|
|
As a % of sales
|
|
|
|
19.6
|
%
|
|
|
|
18.0
|
%
|
|
|
|
19.2
|
%
|
|
|
|
17.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
20,764
|
|
|
|
|
13,176
|
|
|
|
|
38,372
|
|
|
|
|
24,365
|
|
As a % of sales
|
|
|
|
14.3
|
%
|
|
|
|
13.3
|
%
|
|
|
|
13.3
|
%
|
|
|
|
13.4
|
%
|
Restructuring charges
|
|
|
|
344
|
|
|
|
|
1,056
|
|
|
|
|
502
|
|
|
|
|
1,056
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
7,452
|
|
|
|
|
3,714
|
|
|
|
|
16,498
|
|
|
|
|
6,595
|
|
As a % of sales
|
|
|
|
5.1
|
%
|
|
|
|
3.7
|
%
|
|
|
|
5.7
|
%
|
|
|
|
3.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(1,994
|
)
|
|
|
|
(225
|
)
|
|
|
|
(4,173
|
)
|
|
|
|
(255
|
)
|
Interest income and other, net
|
|
|
|
17
|
|
|
|
|
49
|
|
|
|
|
420
|
|
|
|
|
100
|
|
Earnings before provision for income taxes
|
|
|
|
5,475
|
|
|
|
|
3,538
|
|
|
|
|
12,745
|
|
|
|
|
6,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Benefit) provision for income taxes
|
|
|
|
(587
|
)
|
|
|
|
473
|
|
|
|
|
1,363
|
|
|
|
|
872
|
|
Effective tax rate
|
|
|
|
(10.7
|
)%
|
|
|
|
13.4
|
%
|
|
|
|
10.7
|
%
|
|
|
|
13.5
|
%
|
Net earnings available to common stockholders
|
|
|
$
|
6,062
|
|
|
|
$
|
3,065
|
|
|
|
$
|
11,382
|
|
|
|
$
|
5,568
|
|
As a % of sales
|
|
|
|
4.2
|
%
|
|
|
|
3.1
|
%
|
|
|
|
4.0
|
%
|
|
|
|
3.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A common shares - basic and diluted
|
|
|
|
2,175
|
|
|
|
|
2,175
|
|
|
|
|
2,175
|
|
|
|
|
2,175
|
|
Class B common shares - basic and diluted
|
|
|
|
9,693
|
|
|
|
|
9,332
|
|
|
|
|
9,682
|
|
|
|
|
9,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A common shares - basic and diluted
|
|
|
$
|
0.49
|
|
|
|
$
|
0.25
|
|
|
|
$
|
0.91
|
|
|
|
$
|
0.45
|
|
Class B common shares - basic and diluted
|
|
|
$
|
0.52
|
|
|
|
$
|
0.27
|
|
|
|
$
|
0.97
|
|
|
|
$
|
0.49
|
|
|
(1)
|
|
The supplementary information included in this press release
for 2015 is preliminary and subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q with the Securities
and Exchange Commission.
|
|
Bel Fuse Inc.
|
Supplementary Information(1)
|
Condensed Consolidated Balance Sheets
|
(in thousands, unaudited)
|
|
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
Revised(2)
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
71,408
|
|
|
$
|
77,138
|
Accounts receivable, net
|
|
|
|
98,493
|
|
|
|
99,605
|
Inventories, net
|
|
|
|
111,241
|
|
|
|
113,630
|
Other current assets
|
|
|
|
24,405
|
|
|
|
20,283
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
305,547
|
|
|
|
310,656
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
62,981
|
|
|
|
69,261
|
Goodwill and other intangible assets, net
|
|
|
|
213,795
|
|
|
|
213,871
|
Other assets
|
|
|
|
36,814
|
|
|
|
41,633
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
619,137
|
|
|
$
|
635,421
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
64,777
|
|
|
$
|
61,926
|
Current maturities of long-term debt
|
|
|
|
16,130
|
|
|
|
13,438
|
Other current liabilities
|
|
|
|
47,747
|
|
|
|
46,438
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
128,654
|
|
|
|
121,802
|
|
|
|
|
|
|
|
Long-term debt, noncurrent
|
|
|
|
190,120
|
|
|
|
219,187
|
Other liabilities
|
|
|
|
71,601
|
|
|
|
70,159
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
390,375
|
|
|
|
411,148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
228,762
|
|
|
|
224,273
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
619,137
|
|
|
$
|
635,421
|
|
(1)
|
|
The supplementary information included in this press release
for 2015 is preliminary and subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q with the Securities
and Exchange Commission.
|
|
|
|
(2)
|
|
The December 31, 2014 Condensed Consolidated Balance Sheet has
been revised to reflect measurement period adjustments recorded
during the six months ended June 30, 2015 for the acquisition of
Power Solutions. The measurement period adjustments primarily
relate to the finalization of the valuations of property and
equipment and intangible assets and related impact on deferred
taxes. These revisions were not considered material to the
Condensed Consolidated Balance Sheet.
|
|
Bel Fuse Inc.
|
Supplementary Information(1)
|
Reconciliation of GAAP to Non-GAAP Condensed Consolidated Statements
of Operations
|
(in thousands, except per share amounts) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Three Months Ended
|
|
|
June 30, 2015
|
|
|
June 30, 2014
|
|
|
As Reported
|
|
|
Special
|
|
|
As Adjusted
|
|
|
As Reported
|
|
|
Special
|
|
|
As Adjusted
|
|
|
GAAP
|
|
|
Items(2)
|
|
|
Non-GAAP(3)
|
|
|
GAAP
|
|
|
Items(2)
|
|
|
Non-GAAP(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
145,658
|
|
|
|
$
|
--
|
|
|
|
$
|
145,658
|
|
|
|
$
|
99,439
|
|
|
|
$
|
--
|
|
|
|
$
|
99,439
|
|
Cost of sales
|
|
|
|
117,098
|
|
|
|
|
|
|
|
117,098
|
|
|
|
|
81,493
|
|
|
|
|
|
|
|
81,493
|
|
Gross profit
|
|
|
|
28,560
|
|
|
|
|
--
|
|
|
|
|
28,560
|
|
|
|
|
17,946
|
|
|
|
|
--
|
|
|
|
|
17,946
|
|
As a % of sales
|
|
|
|
19.6
|
%
|
|
|
|
|
|
|
19.6
|
%
|
|
|
|
18.0
|
%
|
|
|
|
|
|
|
18.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
20,764
|
|
|
|
|
(249
|
)
|
|
|
|
20,515
|
|
|
|
|
13,176
|
|
|
|
|
(1,509
|
)
|
|
|
|
11,667
|
|
As a % of sales
|
|
|
|
14.3
|
%
|
|
|
|
|
|
|
14.1
|
%
|
|
|
|
13.3
|
%
|
|
|
|
|
|
|
11.7
|
%
|
Restructuring charges
|
|
|
|
344
|
|
|
|
|
(344
|
)
|
|
|
|
--
|
|
|
|
|
1,056
|
|
|
|
|
(1,056
|
)
|
|
|
|
--
|
|
Income from operations
|
|
|
|
7,452
|
|
|
|
|
593
|
|
|
|
|
8,045
|
|
|
|
|
3,714
|
|
|
|
|
2,565
|
|
|
|
|
6,279
|
|
As a % of sales
|
|
|
|
5.1
|
%
|
|
|
|
|
|
|
5.5
|
%
|
|
|
|
3.7
|
%
|
|
|
|
|
|
|
6.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(1,994
|
)
|
|
|
|
--
|
|
|
|
|
(1,994
|
)
|
|
|
|
(225
|
)
|
|
|
|
--
|
|
|
|
|
(225
|
)
|
Interest income and other, net
|
|
|
|
17
|
|
|
|
|
--
|
|
|
|
|
17
|
|
|
|
|
49
|
|
|
|
|
--
|
|
|
|
|
49
|
|
Earnings before provision for income taxes
|
|
|
|
5,475
|
|
|
|
|
593
|
|
|
|
|
6,068
|
|
|
|
|
3,538
|
|
|
|
|
2,565
|
|
|
|
|
6,103
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Benefit) provision for income taxes
|
|
|
|
(587
|
)
|
|
|
|
181
|
|
|
|
|
(406
|
)
|
|
|
|
473
|
|
|
|
|
991
|
|
|
|
|
1,464
|
|
Effective tax rate
|
|
|
|
(10.7
|
)%
|
|
|
|
|
|
|
(6.7
|
)%
|
|
|
|
13.4
|
%
|
|
|
|
|
|
|
24.0
|
%
|
Net earnings available to common stockholders
|
|
|
$
|
6,062
|
|
|
|
$
|
412
|
|
|
|
$
|
6,474
|
|
|
|
$
|
3,065
|
|
|
|
$
|
1,574
|
|
|
|
$
|
4,639
|
|
As a % of sales
|
|
|
|
4.2
|
%
|
|
|
|
|
|
|
4.4
|
%
|
|
|
|
3.1
|
%
|
|
|
|
|
|
|
4.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A common shares - basic and diluted
|
|
|
|
2,175
|
|
|
|
|
|
|
|
2,175
|
|
|
|
|
2,175
|
|
|
|
|
|
|
|
2,175
|
|
Class B common shares - basic and diluted
|
|
|
|
9,693
|
|
|
|
|
|
|
|
9,693
|
|
|
|
|
9,332
|
|
|
|
|
|
|
|
9,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A common shares - basic and diluted
|
|
|
$
|
0.49
|
|
|
|
$
|
0.03
|
|
|
|
$
|
0.52
|
|
|
|
$
|
0.25
|
|
|
|
$
|
0.13
|
|
|
|
$
|
0.38
|
|
Class B common shares - basic and diluted
|
|
|
$
|
0.52
|
|
|
|
$
|
0.03
|
|
|
|
$
|
0.55
|
|
|
|
$
|
0.27
|
|
|
|
$
|
0.14
|
|
|
|
$
|
0.41
|
|
|
(1)
|
|
The supplementary information included in this press release
for 2015 is preliminary and subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q with the Securities
and Exchange Commission.
|
|
|
|
(2)
|
|
Special items primarily consist of the following expenses
and/or income items:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Three Months Ended
|
|
|
|
June 30, 2015
|
|
|
June 30, 2014
|
|
|
|
Gross
|
|
|
Taxes
|
|
|
Net of taxes
|
|
|
Gross
|
|
|
Taxes
|
|
|
Net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges
|
|
|
$
|
344
|
|
|
$
|
90
|
|
|
$
|
254
|
|
|
$
|
1,056
|
|
|
$
|
401
|
|
|
$
|
655
|
Acquisition related costs
|
|
|
|
78
|
|
|
|
28
|
|
|
|
50
|
|
|
|
1,509
|
|
|
|
590
|
|
|
|
919
|
Information technology migration and rebranding costs
|
|
|
|
171
|
|
|
|
63
|
|
|
|
108
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
Total special items
|
|
|
$
|
593
|
|
|
$
|
181
|
|
|
$
|
412
|
|
|
$
|
2,565
|
|
|
$
|
991
|
|
|
$
|
1,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
In this press release and supplemental information, we have
included several non-U.S. GAAP financial measures, including
Non-GAAP Net Earnings and EPS, Non-GAAP Gross Profit and Non-GAAP
Income from Operations and EBITDA and Adjusted EBITDA. We present
results adjusted to exclude the effects of certain specified items
("special items") and their related tax impact that would
otherwise be included under GAAP, to aid in comparisons with other
periods. We may use Non-GAAP EPS, Non-GAAP Net Earnings, Non-GAAP
Gross Profit and Non-GAAP Operating Profit and EBITDA and Adjusted
EBITDA to determine performance-based compensation. Management
believes that this information may be useful to investors.
|
|
Bel Fuse Inc.
|
Supplementary Information(1)
|
Reconciliation of GAAP to Non-GAAP Condensed Consolidated Statements
of Operations
|
(in thousands, except per share amounts) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
Six Months Ended
|
|
|
June 30, 2015
|
|
|
June 30, 2014
|
|
|
As Reported
|
|
|
Special
|
|
|
As Adjusted
|
|
|
As Reported
|
|
|
Special
|
|
|
As Adjusted
|
|
|
GAAP
|
|
|
Items(2)
|
|
|
Non-GAAP(3)
|
|
|
GAAP
|
|
|
Items(2)
|
|
|
Non-GAAP(3)
|
Net sales
|
|
|
$
|
287,673
|
|
|
|
$
|
--
|
|
|
|
$
|
287,673
|
|
|
|
$
|
182,085
|
|
|
|
$
|
--
|
|
|
|
$
|
182,085
|
|
Cost of sales
|
|
|
|
232,301
|
|
|
|
|
--
|
|
|
|
|
232,301
|
|
|
|
|
150,069
|
|
|
|
|
--
|
|
|
|
|
150,069
|
|
Gross profit
|
|
|
|
55,372
|
|
|
|
|
--
|
|
|
|
|
55,372
|
|
|
|
|
32,016
|
|
|
|
|
--
|
|
|
|
|
32,016
|
|
As a % of sales
|
|
|
|
19.2
|
%
|
|
|
|
|
|
|
19.2
|
%
|
|
|
|
17.6
|
%
|
|
|
|
|
|
|
17.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
38,372
|
|
|
|
|
(1,237
|
)
|
|
|
|
37,135
|
|
|
|
|
24,365
|
|
|
|
|
(1,518
|
)
|
|
|
|
22,847
|
|
As a % of sales
|
|
|
|
13.3
|
%
|
|
|
|
|
|
|
12.9
|
%
|
|
|
|
13.4
|
%
|
|
|
|
|
|
|
12.5
|
%
|
Restructuring charges
|
|
|
|
502
|
|
|
|
|
(502
|
)
|
|
|
|
--
|
|
|
|
|
1,056
|
|
|
|
|
(1,056
|
)
|
|
|
|
--
|
|
Income from operations
|
|
|
|
16,498
|
|
|
|
|
1,739
|
|
|
|
|
18,237
|
|
|
|
|
6,595
|
|
|
|
|
2,574
|
|
|
|
|
9,169
|
|
As a % of sales
|
|
|
|
5.7
|
%
|
|
|
|
|
|
|
6.3
|
%
|
|
|
|
3.6
|
%
|
|
|
|
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(4,173
|
)
|
|
|
|
--
|
|
|
|
|
(4,173
|
)
|
|
|
|
(255
|
)
|
|
|
|
--
|
|
|
|
|
(255
|
)
|
Interest income and other, net
|
|
|
|
420
|
|
|
|
|
--
|
|
|
|
|
420
|
|
|
|
|
100
|
|
|
|
|
--
|
|
|
|
|
100
|
|
Earnings before provision for income taxes
|
|
|
|
12,745
|
|
|
|
|
1,739
|
|
|
|
|
14,484
|
|
|
|
|
6,440
|
|
|
|
|
2,574
|
|
|
|
|
9,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
|
1,363
|
|
|
|
|
592
|
|
|
|
|
1,955
|
|
|
|
|
872
|
|
|
|
|
994
|
|
|
|
|
1,866
|
|
Effective tax rate
|
|
|
|
10.7
|
%
|
|
|
|
|
|
|
13.5
|
%
|
|
|
|
13.5
|
%
|
|
|
|
|
|
|
20.7
|
%
|
Net earnings available to common stockholders
|
|
|
$
|
11,382
|
|
|
|
$
|
1,147
|
|
|
|
$
|
12,529
|
|
|
|
$
|
5,568
|
|
|
|
$
|
1,580
|
|
|
|
$
|
7,148
|
|
As a % of sales
|
|
|
|
4.0
|
%
|
|
|
|
|
|
|
4.4
|
%
|
|
|
|
3.1
|
%
|
|
|
|
|
|
|
3.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A common shares - basic and diluted
|
|
|
|
2,175
|
|
|
|
|
|
|
|
2,175
|
|
|
|
|
2,175
|
|
|
|
|
|
|
|
2,175
|
|
Class B common shares - basic and diluted
|
|
|
|
9,682
|
|
|
|
|
|
|
|
9,682
|
|
|
|
|
9,333
|
|
|
|
|
|
|
|
9,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A common shares - basic and diluted
|
|
|
$
|
0.91
|
|
|
|
$
|
0.09
|
|
|
|
$
|
1.00
|
|
|
|
$
|
0.45
|
|
|
|
$
|
0.14
|
|
|
|
$
|
0.59
|
|
Class B common shares - basic and diluted
|
|
|
$
|
0.97
|
|
|
|
$
|
0.10
|
|
|
|
$
|
1.07
|
|
|
|
$
|
0.49
|
|
|
|
$
|
0.14
|
|
|
|
$
|
0.63
|
|
|
(1)
|
|
The supplementary information included in this press release
for 2015 is preliminary and subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q with the Securities
and Exchange Commission.
|
|
|
|
(2)
|
|
Special items primarily consist of the following expenses
and/or income items:
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30, 2015
|
|
|
June 30, 2014
|
|
|
|
Gross
|
|
|
Taxes
|
|
|
Net of taxes
|
|
|
Gross
|
|
|
Taxes
|
|
|
Net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges
|
|
|
$
|
502
|
|
|
$
|
137
|
|
|
$
|
365
|
|
|
$
|
1,056
|
|
|
$
|
401
|
|
|
$
|
655
|
Acquisition related costs
|
|
|
|
463
|
|
|
|
173
|
|
|
|
290
|
|
|
|
1,518
|
|
|
|
593
|
|
|
|
925
|
Information technology migration and rebranding costs
|
|
|
|
774
|
|
|
|
282
|
|
|
|
492
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
Total special items
|
|
|
$
|
1,739
|
|
|
$
|
592
|
|
|
$
|
1,147
|
|
|
$
|
2,574
|
|
|
$
|
994
|
|
|
$
|
1,580
|
|
(3)
|
|
In this press release and supplemental information, we have
included several non-U.S. GAAP financial measures, including
Non-GAAP Net Earnings and EPS, Non-GAAP Gross Profit and Non-GAAP
Income from Operations and EBITDA and Adjusted EBITDA. We present
results adjusted to exclude the effects of certain specified items
("special items") and their related tax impact that would
otherwise be included under GAAP, to aid in comparisons with other
periods. We may use Non-GAAP EPS, Non-GAAP Net Earnings, Non-GAAP
Gross Profit and Non-GAAP Operating Profit and EBITDA and Adjusted
EBITDA to determine performance-based compensation. Management
believes that this information may be useful to investors.
|
|
Bel Fuse Inc.
|
Supplementary Information(1)
|
Reconciliation of GAAP Net Earnings Available to Common Stockholders
to
|
EBITDA and Adjusted EBITDA(2)
|
(in thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
June 30,
|
|
|
June 30,
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings available to common stockholders
|
|
|
$
|
6,062
|
|
|
|
$
|
3,065
|
|
|
|
$
|
11,382
|
|
|
|
$
|
5,568
|
|
Interest expense
|
|
|
|
1,994
|
|
|
|
|
225
|
|
|
|
|
4,173
|
|
|
|
|
255
|
|
(Benefit) provision for income taxes
|
|
|
|
(587
|
)
|
|
|
|
473
|
|
|
|
|
1,363
|
|
|
|
|
872
|
|
Depreciation and amortization
|
|
|
|
5,951
|
|
|
|
|
3,101
|
|
|
|
|
11,589
|
|
|
|
|
6,507
|
|
EBITDA
|
|
|
$
|
13,420
|
|
|
|
$
|
6,864
|
|
|
|
$
|
28,507
|
|
|
|
$
|
13,202
|
|
% of sales
|
|
|
|
9.2
|
%
|
|
|
|
6.9
|
%
|
|
|
|
9.9
|
%
|
|
|
|
7.3
|
%
|
Special items
|
|
|
|
593
|
|
|
|
|
2,565
|
|
|
|
|
1,739
|
|
|
|
|
2,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
14,013
|
|
|
|
$
|
9,429
|
|
|
|
$
|
30,246
|
|
|
|
$
|
15,776
|
|
% of sales
|
|
|
|
9.6
|
%
|
|
|
|
9.5
|
%
|
|
|
|
10.5
|
%
|
|
|
|
8.7
|
%
|
|
(1)
|
|
The supplementary information included in this press release
for 2015 is preliminary and subject to change prior to the filing
of our upcoming Quarterly Report on Form 10-Q with the Securities
and Exchange Commission.
|
|
|
|
(2)
|
|
In this press release and supplemental information, we have
included several non-U.S. GAAP financial measures, including
non-GAAP Net Earnings and EPS, Non-GAAP Gross Profit and Non-GAAP
Operating Profit and EBITDA and Adjusted EBITDA. We present
results adjusted to exclude the effects of certain specified items
("special items") and their related tax impact that would
otherwise be included under GAAP, to aid in comparisons with other
periods. We may use Non-GAAP EPS, Non-GAAP Net Earnings, Non-GAAP
Gross Profit and Non-GAAP Operating Profit, to determine
performance-based compensation. Management believes that this
information may be useful to investors.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150729005544/en/
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