EX-99.1 2 c52649exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(LITTELFUSE LOGO)
CONTACT: Phil Franklin,
     Vice President, Operations Support, CFO and Treasurer (773) 628-0810
LITTELFUSE REPORTS SECOND QUARTER RESULTS
          CHICAGO, July 30, 2009 — Littelfuse, Inc. (NASDAQ:LFUS) today reported sales and earnings for the second quarter of 2009 that were in line with the company’s updated guidance issued on July 7, 2009.
Second Quarter Highlights
  •   Sales for the second quarter of 2009 were $101.4 million, a 20% sequential increase from the first quarter of 2009 and a 32% decline compared to the prior-year quarter.
 
  •   On a GAAP basis, the company had a loss of ($0.12) per diluted share, which included restructuring charges of $7.0 million (pre-tax) or approximately $0.22 per share. Adjusted diluted earnings per share (see Supplemental Information on page 8) were $0.10. The restructuring charges reflect the costs to further consolidate manufacturing and reduce operating expenses as announced on May 19, 2009.
 
  •   Capital expenditures for the second quarter of 2009 were $4.2 million, which was down from $7.2 million in the first quarter of 2009.
 
  •   Cash used in operating activities was ($2.3) million for the second quarter of 2009. The most significant factor negatively impacting cash flow was increased accounts receivable resulting primarily from accelerating sales. This was partially offset by continued inventory reduction.
 
  •   The company ended the second quarter of 2009 with $48.3 million in cash and $75.0 million of borrowing capacity under its revolving credit facility. At June 27, 2009, the company was in compliance with all debt covenants and expects to remain so for the foreseeable future.
 
  •   The book-to-bill ratio for electronics for the second quarter of 2009 was 1.07.
          “The second quarter sequential sales increase was mostly driven by improvement in Asia for both electronics and automotive products, as well as improvement in the European automotive market. Increases in Startco sales also contributed, while electrical fuse sales increased in line with normal seasonality,” said Gordon Hunter, Chief Executive Officer.
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          “Compared to the first quarter of 2009, gross margin (excluding restructuring charges) improved by 720 basis points and operating expenses declined by $2.5 million,” said Phil Franklin, Chief Financial Officer. “This clearly indicates that our cost reductions are beginning to flow through the P&L. We have now reduced our breakeven point to $95 million in quarterly sales and expect further modest reductions in breakeven over the next year.”
Outlook
  •   Sales for the third quarter of 2009 are expected to be in the range of $104 to $108 million, which represents 3-7% sequential growth over the second quarter.
 
  •   Earnings for the third quarter of 2009 are expected to be in the range of $0.14 to $0.21 per diluted share.
 
  •   Capital spending for 2009 is now expected to be approximately $21 million.
          “In this challenging environment, we continue to execute well on the basics such as cost reduction, customer responsiveness, inventory control and price management,” said Hunter. “We believe this will be a slow, non-linear recovery, but as our markets improve, we will leverage our leaner processes and lower breakeven point. We are gaining confidence that in the second half of 2009 we will be solidly profitable and significantly free-cash-flow positive.”
Conference Call Webcast Information
          Littelfuse will host a conference call today, Thursday, July 30, 2009 at 11:00 a.m. Eastern/10:00 a.m. Central time to discuss the second quarter results. The call will be broadcast live over the Internet and can be accessed through the company’s Web site: www.littelfuse.com. Listeners should go to the Web site at least 15 minutes prior to the call to download and install any necessary audio software. The call will be available for replay through September 30, 2009 and can be accessed through the Web site listed above.
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About Littelfuse
          As the worldwide leader in circuit protection products and solutions with annual sales of $530.9 million in 2008, the Littelfuse portfolio is backed by industry-leading technical support, design and manufacturing expertise. Littelfuse products are vital components in virtually every product that uses electrical energy, including automobiles, computers, consumer electronics, handheld devices, industrial equipment and telecom/datacom circuits. Littelfuse offers Teccor®, Wickmann® and Pudenz® brand circuit protection products. In addition to its Chicago, Illinois, world headquarters, Littelfuse has sales, distribution, manufacturing and engineering facilities in Brazil, Canada, China, England, Germany, Hong Kong, India, Ireland, Japan, Korea, Mexico, the Netherlands, the Philippines, Singapore, Taiwan and the U.S.
          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 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 report 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 27, 2008. 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 27, 2008.
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LITTELFUSE, INC.
Net Sales by Business Unit and Geography
(In millions of USD, unaudited)
                                                 
    Second Quarter     Year-to-Date  
    2009     2008     % Change     2009     2008     % Change  
Business Unit
                                                
Electronics
   $ 61.5     $ 95.5       (36 %)   $ 112.8     $ 180.4       (37 %)
Automotive
     23.2       38.9       (40 %)     41.6       75.2       (45 %)
Electrical*
     16.7       15.4       8 %     31.4       27.9       13 %
 
                                        
 
                                                
Total
   $ 101.4     $ 149.8       (32 %)   $ 185.8     $ 283.5       (34 %)
 
                                        
                                                 
    Second Quarter     Year-to-Date  
    2009     2008     % Change     2009     2008     % Change  
Geography
                                                
Americas*
   $ 36.9     $ 55.1       (33 %)   $ 73.7     $ 104.8       (30 %)
Europe
     19.7       35.8       (45 %)     37.3       69.1       (46 %)
Asia-Pacific
     44.8       58.9       (24 %)     74.8       109.6       (32 %)
 
                                        
 
                                                
Total
   $ 101.4     $ 149.8       (32 %)   $ 185.8     $ 283.5       (34 %)
 
                                        
 
*   Startco Engineering, acquired at the beginning of the fourth quarter 2008, added $5.3 million and $9.6 million in sales to the Electrical business unit and the Americas’ region in the three and six months ended June 27, 2009, respectively.
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LITTELFUSE, INC.
Condensed Consolidated Balance Sheets
(In thousands of USD)
                 
    June 27, 2009     December 27, 2008  
    (Unaudited)      
ASSETS
                
Current assets:
                
Cash and cash equivalents
   $ 48,332     $ 70,937  
Accounts receivable, less allowances
     68,568       62,126  
Inventories
     55,380       66,679  
Deferred income taxes
     11,342       11,693  
Prepaid expenses and other current assets
     19,016       17,968  
 
            
Total current assets
     202,638       229,403  
 
                
Property, plant and equipment:
                
Land
     11,121       11,089  
Buildings
     65,358       68,165  
Equipment
     296,567       301,835  
 
            
 
     373,046       381,089  
Accumulated depreciation
     (217,136 )     (220,939 )
 
            
Net property, plant and equipment
     155,910       160,150  
 
                
Intangible assets, net of amortization:
                
Patents, licenses and software
     12,113       8,077  
Distribution network
     11,577       11,577  
Customer lists, trademarks and tradenames
     12,831       2,954  
Goodwill
     95,052       106,961  
 
            
 
     131,573       129,569  
 
                
Investments
     5,494       3,436  
Deferred income taxes
     13,077       15,235  
Other assets
     1,106       1,135  
 
            
Total Assets
   $ 509,798     $ 538,928  
 
            
 
                
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
Current liabilities:
                
Accounts payable
   $ 17,319     $ 18,854  
Accrued payroll
     13,957       17,863  
Accrued expenses
     9,682       17,220  
Accrued severance
     10,663       8,393  
Accrued income taxes
     —       2,570  
Current portion of long-term debt
     13,621       8,000  
 
            
Total current liabilities
     65,242       72,900  
 
                
Long-term debt, less current portion
     60,000       72,000  
Accrued severance
     4,448       7,200  
Accrued post-retirement benefits
     31,192       41,637  
Other long-term liabilities
     12,811       11,340  
Total shareholders’ equity
     336,105       333,851  
 
            
Total Liabilities and Shareholders’ Equity
   $ 509,798     $ 538,928  
 
            
Common shares issued and outstanding of 21,734,131 and 21,719,734, at June 27, 2009, and December 27, 2008, respectively.
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LITTELFUSE, INC.
Consolidated Statements of Income
(In thousands of USD, except per share data, unaudited)
                                 
    For the Three Months Ended     For the Six Months Ended  
    June 27, 2009     June 28, 2008     June 27, 2009     June 28, 2008  
Net sales
   $ 101,396     $ 149,826     $ 185,799     $ 283,534  
 
                                
Cost of sales
     75,982       102,364       142,111       197,591  
 
                        
 
                                
Gross profit
     25,414       47,462       43,688       85,943  
 
                                
Selling, general and administrative expenses
     22,946       26,944       45,288       52,622  
Research and development expenses
     4,712       6,213       9,533       11,836  
Amortization of intangibles
     1,212       1,001       2,423       1,893  
 
                        
 
     28,870       34,158       57,244       66,351  
 
                                
Operating (loss) income
     (3,456 )     13,304       (13,556 )     19,592  
 
                                
Interest expense
     637       368       1,307       702  
Other (income) expense, net
     (237 )     43       (1,116 )     356  
 
                        
 
                                
(Loss) income before income taxes
     (3,856 )     12,893       (13,747 )     18,534  
Income taxes
     (1,272 )     3,752       (3,379 )     5,281  
 
                        
 
                                
Net (loss) income
   $ (2,584 )   $ 9,141     $ (10,368 )   $ 13,253  
 
                        
 
                                
Net (loss) income per share:
                                
Basic
   $ (0.12 )   $ 0.42     $ (0.48 )   $ 0.61  
 
                        
Diluted
   $ (0.12 )   $ 0.42     $ (0.48 )   $ 0.61  
 
                        
 
                                
Weighted average shares and equivalent shares outstanding:
                                
Basic
     21,728       21,687       21,724       21,734  
 
                        
Diluted
     21,748       21,869       21,735       21,880  
 
                        
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LITTELFUSE, INC.
Consolidated Statements of Cash Flows
(In thousands of USD, unaudited)
                 
    For the Six Months Ended  
    June 27, 2009     June 28, 2008  
OPERATING ACTIVITIES:
                
Net (loss) income
   $ (10,368 )   $ 13,253  
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
                
Depreciation
     15,592       13,725  
Amortization of intangibles
     2,423       1,893  
Stock-based compensation
     2,647       2,506  
Loss (gain) on sale of property, plant and equipment
     510       (305 )
Changes in operating assets and liabilities:
                
Accounts receivable
     (5,878 )     (7,552 )
Inventories
     11,508       (4,329 )
Accounts payable and accrued expenses
     (6,554 )     (3,845 )
Accrued payroll and severance
     (4,685 )     (784 )
Accrued taxes
     (7,913 )     (3,246 )
Prepaid expenses and other
     (1,489 )     3,208  
 
            
Net cash (used in) provided by operating activities
     (4,207 )     14,524  
 
                
INVESTING ACTIVITIES:
                
Purchases of property, plant and equipment
     (11,399 )     (25,101 )
Purchase of business, net of cash acquired
     (920 )     (9,280 )
Proceeds from sale of property, plant and equipment
     71       3,384  
 
            
Net cash used in investing activities
     (12,248 )     (30,997 )
 
                
FINANCING ACTIVITIES:
                
Proceeds from debt
     11,621       54,000  
Payments of debt
     (18,000 )     (43,412 )
Proceeds from exercise of stock options
     183       (6,623 )
Purchases of common stock
     —       1,187  
 
            
Net cash (used in) provided by financing activities
     (6,196 )     5,152  
 
                
Effect of exchange rate changes on cash
     46       1,636  
 
            
 
                
Decrease in cash and cash equivalents
     (22,605 )     (9,685 )
Cash and cash equivalents at beginning of period
     70,937       64,943  
 
            
Cash and cash equivalents at end of period
   $ 48,332     $ 55,258  
 
            
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LITTELFUSE, INC.
Supplemental Information
(In thousands of USD, except per share data, unaudited)
                         
    For the Three Months Ended  
    June 27, 2009  
    U.S. GAAP     Special Items     Adjusted  
Net sales
   $ 101,396     $ —     $ 101,396  
 
                        
Cost of sales
     75,982       (3,905 ) (1)     72,077  
 
                  
 
                        
Gross profit
     25,414       3,905       29,319  
% of sales
     25.1 %             28.9 %
 
                        
Total operating expenses
     28,870       (3,139 ) (1)     25,731  
 
                  
% of sales
     28.5 %             25.4 %
 
                        
Operating (loss) income
     (3,456 )     7,044       3,588  
 
                  
% of sales
     (3.4 %)             3.5 %
 
                        
Interest/other expense (income), net
     400       —       400  
 
                  
 
                        
(Loss) income before income taxes
     (3,856 )     7,044       3,188  
 
                        
Income tax (benefit) expense
     (1,272 )     2,197       925  
 
                  
Effective tax rate
     33.0 %             29.0 %
 
                        
Net (loss) income
   $ (2,584 )   $ 4,847     $ 2,263  
 
                  
 
                        
Net (loss) income per diluted share:
   $ (0.12 )   $ 0.22     $ 0.10  
 
                  
 
                        
Weighted average shares and equivalent shares outstanding — diluted:
     21,748       21,748       21,748  
 
                  
Note: The Company believes that adjusted operating income (loss) is more indicative of its ongoing operating performance than U.S. GAAP operating income since the former excludes special charges that are related to closure of legacy operations.
Special Items:
 
(1)   Relates to severance and asset impairment charges for the U.S., Germany and Asia.
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