Click here to close now.

SYS-CON MEDIA Authors: Rex Morrow, Datical, Liz McMillan, John Wetherill, Ruxit Blog, Hovhannes Avoyan

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
"At Harbinger we do products as well as services. Our services are with helping companies move their products to the cloud operating systems. Some of the challenges we have seen as far as cloud adoption goes are in the cloud security space," noted Shrikant Pattathil, Executive Vice President at Harbinger Systems, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The multi-trillion economic opportunity around the "Internet of Things" (IoT) is emerging as the hottest topic for investors in 2015. As we connect the physical world with information technology, data from actions, processes and the environment can increase sales, improve efficiencies, automate daily activities and minimize risk. In his session at @ThingsExpo, Ed Maguire, Senior Analyst at CLSA Americas, will describe what is new and different about IoT, explore financial, technological and re...
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in San...
Aria Systems, which helps enterprises grow recurring revenue, today announced that its co-founder and inventor of cloud billing Brendan O'Brien, will be a featured speaker at the Cloud Expo, June 9-11 at The Javits Center in New York. Aria also will be demonstrating its Active Monetization platform in Booth #424 on the Expo Floor. O'Brien will lead the following sessions: June 9 - 11:00 am - 11:35 am, Room 1A16 with participants from Constant Contact, MGI Research and ATG Enabling Complex ...
"For the past 4 years we have been working mainly to export. For the last 3 or 4 years the main market was Russia. In the past year we have been working to expand our footprint in Europe and the United States," explained Andris Gailitis, CEO of DEAC, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
SYS-CON Events announced today DevOps.com will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Launched in 2014, DevOps.com has quickly established itself as an indispensable resource for DevOps education and community building. DevOps.com make it their mission to cover all aspects of DevOps – philosophy, tools, business impact, best practices and more.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it!
The web app is Agile. The REST API is Agile. The testing and planning are Agile. But alas, Data infrastructures certainly are not. Once an application matures, changing the shape or indexing scheme of data often forces at best a top down planning exercise and at worst includes schema changes which force downtime. The time has come for a new approach that fundamentally advances the agility of distributed data infrastructures. Come learn about a new solution to the problems faced by software orga...
IndependenceIT has been selected by nGenx to power Windows-based DaaS and application delivery on Google Compute Engine to support the delivery of GoldMine Cloud software. For independent software vendors (ISVs) like GoldMine, this expands the theater of operations to increase revenue opportunities while reducing software management and maintenance liabilities. IndependenceIT was selected by application and desktop pioneer, nGenx, to deliver its “Bring Your Own Cloud” strategy to GoldMine and o...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. 8th International Big Data Expo, co-located with 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. As advanced data storage, access and analytics technologies aimed at handling high-volume and/or fast moving data all move center stage, aided by the cloud computing bo...
SYS-CON Events announced today that the "First Containers & Microservices Conference" will take place June 9-11, 2015, at the Javits Center in New York City. The “Second Containers & Microservices Conference” will take place November 3-5, 2015, at Santa Clara Convention Center, Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
"We are the top stocking distributor for HP renew products in North America. We can only sell to U.S. authorized partners and resellers for HP," explained Miguel Diazdelcastillo Jr., Sales Executive at Creative Business Solutions, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"Ulunsoft is a start-up that focuses on how enterprises build cloud-based IT infrastructure for business," explained Haibo Zhu, President of Ulunsoft Corp, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.