EX-99.1 2 c59545exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(LOGO)
NEWS RELEASE
CONTACT: Phil Franklin,
Vice President, Operations Support, CFO and Treasurer (773) 628-0810
LITTELFUSE REPORTS SECOND QUARTER RESULTS
          CHICAGO, August 5, 2010 – Littelfuse, Inc. (NASDAQ:LFUS) today reported sales and earnings for the second quarter of 2010.
Second Quarter Highlights
  •   Sales for the second quarter of 2010 were $157.5 million, a 55% increase compared to the second quarter of 2009 and a 9% increase from the first quarter of 2010.
  O   Electronics sales increased 68% year over year and 17% sequentially due to continued strength across all geographies and end markets.
 
  O   Automotive sales increased 38% year over year due to strong growth in all regions. As expected, sales declined 8% sequentially due to pipeline fill for programs in China in the first quarter of 2010, a 3% reduction in global car production and decline in the value of the euro.
 
  O   Electrical sales increased 31% year over year due to continued strong growth for protection relays and steady improvement in power fuse demand. Electrical sales increased 4% sequentially due to seasonal increases in power fuse volume.
  •   Operating margin for the second quarter of 2010 improved to 17.5% compared to 15.0% in the first quarter of 2010 due to operating leverage on higher sales and the beginning of savings from the last phase of manufacturing transfers.
 
  •   Diluted earnings per share for the second quarter of 2010 were $0.90 compared to a loss of $0.12 per diluted share for the second quarter of 2009. The large improvement in earnings compared to the prior year was due to significantly higher sales and a much-improved cost structure as well as one-time charges in the prior-year quarter.
-more-

 

 

Page 2
  •   Cash provided by operating activities increased to $19.2 million in the second quarter of 2010, compared to $6.9 million in the first quarter of 2010. Accounts receivable days sales outstanding were 62 compared to 59 in the first quarter of 2010. Inventory turns increased to 6.5 from 6.4 in the first quarter of 2010.
 
  •   The book-to-bill ratio for electronics for the second quarter of 2010 was 1.1.
          “We are pleased with our performance for the first half of 2010,” said Gordon Hunter, Chief Executive Officer. “We are having success with key organic growth initiatives; we have ramped up production to meet increased demand and maintain competitive lead times; and we remain on track with our manufacturing transfers which are delivering savings on or ahead of schedule. This crisp execution has enabled us to overachieve our 15% operating margin target in the second quarter with significant cost savings yet to come over the next three quarters.”
Outlook
  •   Sales for the third quarter of 2010 are expected to be in the range of $156 to $164 million, which represents over 50% growth year over year.
 
  •   The Taiwan factory has mostly recovered from the recent fire, but the guidance assumes that fire-related production constraints will have up to a $2 million negative impact on sales in the third quarter.
 
  •   Earnings for the third quarter of 2010 are expected to be in the range of $0.92 to $1.04 per diluted share reflecting additional transfer-related savings in the third quarter.
 
  •   Capital spending for 2010 is expected to be approximately $20 million. Cash from operating activities is expected to continue to improve over the next two quarters.
     “Even as growth begins to slow in the next few quarters, we are confident that our new cost structure will enable us to continue to deliver superior financial results,” said Hunter.
Conference Call Webcast Information
     Littelfuse will host a conference call today, Thursday, August 5, 2010 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
-more-

 

 

Page 3
15 minutes prior to the call to download and install any necessary audio software. The call will be available for replay through September 30, 2010 and can be accessed through the Web site listed above.
About Littelfuse
          Littelfuse is the worldwide leader in circuit protection, offering the industry’s broadest and deepest portfolio of circuit protection products and solutions. Backed by industry-leading technical support, design and manufacturing expertise Littelfuse products are vital components in virtually every product that uses electrical energy, including portable and consumer electronics, automobiles, industrial equipment and telecom/datacom circuits. In addition to its Chicago, Illinois, world headquarters, Littelfuse has over 20 sales, distribution, manufacturing and engineering facilities in the Americas, Europe and Asia. Technologies offered by Littelfuse include Fuses; Gas Discharge Tubes (GDTs); Positive Temperature Coefficient Devices (PTCs); Protection Relays; PulseGuard® ESD Suppressors; SIDACtor® Devices; Silicon Protection Arrays™(SPAs); Switching Thyristors; TVS Diodes and Varistors.
          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 January 2, 2010. 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/A for the year ended January 2, 2010.
-more-

 

 

Page 4
LITTELFUSE, INC.
Net Sales by Business Unit and Geography
(In millions of USD, unaudited)
                                                 
    Second Quarter     Year-to-Date  
    2010     2009     % Change     2010     2009     % Change  
Business Unit
                                                
Electronics
   $ 103.6     $ 61.5       68 %   $ 192.3     $ 112.8       70 %
Automotive
     32.1       23.2       38 %     66.8       41.6       61 %
Electrical
     21.8       16.7       31 %     42.8       31.4       36 %
 
                                        
 
                                                
Total
   $ 157.5     $ 101.4       55 %   $ 301.9     $ 185.8       62 %
 
                                        
                                                 
    Second Quarter     Year-to-Date  
    2010     2009     % Change     2010     2009     % Change  
Geography
                                                
Americas
   $ 58.0     $ 36.9       57 %   $ 111.3     $ 73.7       51 %
Europe
     29.2       19.7       48 %     59.0       37.3       58 %
Asia-Pacific
     70.3       44.8       57 %     131.6       74.8       76 %
 
                                        
 
                                                
Total
   $ 157.5     $ 101.4       55 %   $ 301.9     $ 185.8       62 %
 
                                        
-more-

 

 

Page 5
LITTELFUSE, INC.
Condensed Consolidated Balance Sheets
(In thousands of USD)
                 
    July 3, 2010     January 2, 2010  
    (Unaudited)          
ASSETS
                
Current assets:
                
Cash and cash equivalents
   $ 87,682     $ 70,354  
Accounts receivable, less allowances
     107,128       79,521  
Inventories
     60,675       52,567  
Deferred income taxes
     12,960       13,804  
Prepaid expenses and other current assets
     16,462       18,196  
Assets held for sale
     7,290       7,343  
 
            
Total current assets
     292,197       241,785  
Property, plant and equipment:
                
Land
     5,756       7,808  
Buildings
     51,224       56,916  
Equipment
     273,733       280,928  
 
            
 
     330,713       345,652  
Accumulated depreciation
     (206,967 )     (207,500 )
 
            
Net property, plant and equipment
     123,746       138,152  
Intangible assets, net of amortization:
                
Patents, licenses and software
     11,581       12,451  
Distribution network
     9,355       10,837  
Customer lists, trademarks and tradenames
     12,761       13,363  
Goodwill
     92,665       94,986  
 
            
 
     126,362       131,637  
Investments
     12,341       11,742  
Deferred income taxes
     10,002       8,460  
Other assets
     1,380       1,351  
 
            
Total Assets
   $ 566,028     $ 533,127  
 
            
 
                
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
Current liabilities:
                
Accounts payable
   $ 28,480     $ 23,646  
Accrued payroll
     17,226       13,291  
Accrued expenses
     9,198       8,561  
Accrued severance
     5,209       11,418  
Accrued income taxes
     14,846       4,525  
Current portion of long-term debt
     9,888       14,183  
 
            
Total current liabilities
     84,847       75,624  
 
                
Long-term debt, less current portion
     45,000       49,000  
Accrued severance
     434       421  
Accrued post-retirement benefits
     10,702       18,271  
Other long-term liabilities
     10,838       11,212  
Total equity
     414,207       378,599  
 
            
Total liabilities and equity
   $ 566,028     $ 533,127  
 
            
 
                
Common shares issued and outstanding of 22,060,905 and 21,792,241, at July 3, 2010, and January 2, 2010, respectively.
                
-more-

 

 

Page 6

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  
    July 3, 2010     June 27, 2009     July 3, 2010     June 27, 2009  
Net sales
   $ 157,508     $ 101,396     $ 301,910     $ 185,799  
 
                                
Cost of sales
     98,125       75,982       189,247       142,111  
 
                        
 
                                
Gross profit
     59,383       25,414       112,663       43,688  
 
                                
Selling, general and administrative expenses
     26,208       22,946       52,655       45,288  
Research and development expenses
     4,403       4,712       8,353       9,533  
Amortization of intangibles
     1,265       1,212       2,505       2,423  
 
                        
 
     31,876       28,870       63,513       57,244  
 
                                
Operating income (loss)
     27,507       (3,456 )     49,150       (13,556 )
 
                                
Interest expense
     356       637       783       1,307  
Other (income) expense, net
     (1,409 )     (237 )     (1,299 )     (1,116 )
 
                        
 
                                
Income (loss) before income taxes
     28,560       (3,856 )     49,666       (13,747 )
Income taxes
     8,282       (1,272 )     13,919       (3,379 )
 
                        
 
                                
Net income (loss)
   $ 20,278     $ (2,584 )   $ 35,747     $ (10,368 )
 
                        
 
                                
Income (loss) per share:
                                
Basic
   $ 0.91     $ (0.12 )   $ 1.61     $ (0.48 )
 
                        
Diluted
   $ 0.90     $ (0.12 )   $ 1.59     $ (0.48 )
 
                        
 
                                
Weighted average shares and equivalent shares outstanding:
                                
Basic
     22,019       21,728       21,933       21,724  
 
                        
Diluted
     22,397       21,728       22,301       21,724  
 
                        
 
                                
Diluted Income (Loss) Per Share
                                
Net income (loss) as reported
   $ 20,278     $ (2,584 )   $ 35,747     $ (10,368 )
Less: income allocated to participating securities
     (206 )     15       (365 )     62  
 
                        
Net income (loss) available to common shareholders
   $ 20,072     $ (2,569 )   $ 35,382     $ (10,306 )
 
                        
 
                                
Weighted average shares adjusted for dilutive securities
     22,397       21,728       22,301       21,724  
 
                        
 
                                
Diluted income (loss) per share
   $ 0.90     $ (0.12 )   $ 1.59     $ (0.48 )
 
                        
-more-

 

Page 7

LITTELFUSE, INC.
Consolidated Statements of Cash Flows
(In thousands of USD, unaudited)
                 
    For the Six Months Ended  
    July 3, 2010     June 27, 2009  
OPERATING ACTIVITIES:
                
Net income (loss)
   $ 35,747     $ (10,368 )
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
                
Depreciation
     14,398       15,592  
Amortization of intangibles
     2,505       2,423  
Stock-based compensation
     2,780       2,647  
Excess tax benefit on stock-based compensation
     (688 )     —  
(Gain) loss on sale of property, plant and equipment
     (323 )     510  
Changes in operating assets and liabilities:
                
Accounts receivable
     (30,785 )     (5,878 )
Inventories
     (9,180 )     11,508  
Accounts payable
     4,936       (1,646 )
Accrued expenses (including post-retirement)
     (5,354 )     (4,908 )
Accrued payroll and severance
     (1,715 )     (4,685 )
Accrued taxes
     11,439       (7,913 )
Prepaid expenses and other
     2,376       (1,489 )
 
            
Net cash provided by (used in) operating activities
     26,136       (4,207 )
 
                
INVESTING ACTIVITIES:
                
Purchases of property, plant and equipment
     (7,155 )     (11,399 )
Purchase of business, net of cash acquired
     —       (920 )
Proceeds from sale of assets
     4,714       71  
 
            
Net cash used in investing activities
     (2,441 )     (12,248 )
 
                
FINANCING ACTIVITIES:
                
Proceeds from debt
     6,845       11,621  
Payments of debt
     (15,206 )     (18,000 )
Proceeds from exercise of stock options
     7,482       183  
Excess tax benefit on stock-based compensation
     688       —  
 
            
Net cash used in financing activities
     (191 )     (6,196 )
 
                
Effect of exchange rate changes on cash and cash equivalents
     (6,176 )     46  
 
            
 
                
Increase (decrease) in cash and cash equivalents
     17,328       (22,605 )
Cash and cash equivalents at beginning of period
     70,354       70,937  
 
            
Cash and cash equivalents at end of period
   $ 87,682     $ 48,332  
 
            
#     #     #