Littelfuse Reports Fourth Quarter and Record Year
DES PLAINES, Ill.--Jan. 24, 2001--Littelfuse, Inc. today reported sales and earnings for the fourth quarter of 2000 and the year.Sales for the fourth quarter of 2000 were $82.9 million, a 1% increase from sales of $82.0 million for the fourth quarter of 1999. Net income decreased 12% in the fourth quarter of 2000 to $6.7 million, compared to net income of $7.6 million for the same period in the prior year. Diluted earnings per share were $0.31, a 12% decrease from diluted earnings of $0.35 per share for the comparable prior period. These results are consistent with the company's recently announced estimates for the fourth quarter of 2000.
For the full year, sales were $371.9 million, a 25% increase from sales of $296.4 million in 1999. Net income was $37.3 million in 2000, up 48% from net income of $25.2 million in 1999. Diluted earnings per share rose 45% in 2000 to $1.69, compared to diluted earnings of $1.16 per share for the prior year.
"This was a record year for Littelfuse, with a strong electronics market driving the increases in sales and earnings. Our electronic sales were up 51% for the year as a result of increased telecom, datacom and wireless application demand, with a little under half of that growth coming from the successful integration of the Suppression Products Group acquired in October 1999," said Howard B. Witt, Chairman, President and Chief Executive Officer. "Although the electronics market softened in the fourth quarter, we remain committed to our strategy of long-term growth in electronics."
While worldwide sales of electronic products increased substantially in 2000, automotive sales decreased 1% and in the company's smallest business unit, power fuse sales decreased 4%. Geographically, sales for the year increased 25% in the Americas, 22% in Europe and 29% in Asia.
Operating income increased 38% in 2000 to $61.7 million and the operating margin increased 1.5 percentage points to 16.6% of sales. "The increase in the operating margin was the result of leveraging higher unit volumes as well as continued cost reductions and an improved pricing environment in 2000," said Phil Franklin, Vice President, Treasurer and Chief Financial Officer. "Our emphasis on cost reductions continued in 2000, with worldwide programs contributing over $7 million to the bottom line."
"Although we are beginning 2001 with slowing electronic and automotive demand, we are continuing to move forward with our strategy to develop leading edge overcurrent and overvoltage circuit protection solutions for our customers. New products released in 2000 and 2001 are expected to contribute significantly to our electronic growth for the year," said Witt.
LITTELFUSE, INC.
Sales by Business Unit
(Dollars in millions)
Fourth Quarter Year
------------------------ ------------------------
2000 1999 % Change 2000 1999 % Change
---- ---- -------- ---- ---- --------
Market
------
Electronics $ 52.7 $ 47.2 12% $ 232.7 $ 154.1 51%
Automotive 22.9 26.3 -13% 100.0 101.3 -1%
POWR-GARD(TM) 7.3 8.5 -14% 39.2 41.0 -4%
------- ------- ------- ------- ------- -------
Total $ 82.9 $ 82.0 1% $ 371.9 $ 296.4 25%
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LITTELFUSE, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
For the For the
Three Months Ended Twelve Months Ended
December 30,January 1,December 30, January 1,
2000 2000 2000 2000
---------- ---------- ---------- ----------
Net sales $ 82,883 $ 82,009 $ 371,920 $ 296,367
Cost of sales 49,554 47,911 221,272 179,112
---------- ---------- ---------- ----------
Gross profit 33,329 34,098 150,648 117,255
Selling, general and
administrative expenses 17,477 16,640 71,083 56,098
Research and development
expenses 2,891 2,432 11,152 9,455
Amortization of
intangibles 1,416 1,864 6,665 7,078
---------- ---------- ---------- ----------
Operating income 11,545 13,162 61,748 44,624
Interest expense 1,124 1,228 4,652 5,253
Other (income)/expense (62) (328) (1,940) (1,306)
---------- ---------- ---------- ----------
Income before income taxes 10,483 12,262 59,036 40,677
Income taxes 3,773 4,658 21,738 15,457
Net income $ 6,710 $ 7,604 $ 37,298 $ 25,220
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Net income per share:
Basic $ 0.34 $ 0.39 $ 1.88 $ 1.29
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Diluted $ 0.31 $ 0.35 $ 1.69 $ 1.16
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Weighted average shares
and equivalent shares
outstanding:
Basic 19,891 19,518 19,834 19,572
========== ========== ========== ==========
Diluted 21,866 21,767 22,118 21,751
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LITTELFUSE, INC.
Condensed Consolidated Balance Sheets
(in thousands, unaudited)
December 30, 2000 January 1, 2000
--------------------- ---------------------
Assets:
Cash and cash equivalents $ 5,491 $ 1,888
Receivables 53,152 59,583
Inventories 59,272 48,916
Other current assets 8,779 8,750
--------- ---------
Total current assets $ 126,694 $ 119,137
Property, plant, and
equipment, net 92,673 91,791
Reorganization value, net 30,913 33,943
Other intangible assets, net 24,000 29,570
Other assets 98 1,257
--------- ---------
$ 274,378 $ 275,698
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Liabilities and Shareholders' Equity:
Current liabilities
excluding current portion
of long-term debt $ 46,700 $ 57,241
Current portion of
long-term debt 17,070 20,974
--------- ---------
Total current liabilities 63,700 78,215
Long-term debt 41,397 55,460
Deferred liabilities 2,153 4,490
Other long-term liabilities 331 501
Shareholders' equity 166,727 137,032
--------- ---------
Shares issued and
outstanding: 19,849,894
$ 274,378 $ 275,698
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LITTELFUSE, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
For the For the
Three Months Ended Twelve Months Ended
December 30,January 1,December 30, January 1,
2000 2000 2000 2000
---------- ---------- ---------- ----------
Operating activities:
Net income $ 6,710 $ 7,604 $ 37,298 $ 25,220
Adjustments to reconcile
net income to net
cash provided by
operating activities:
Depreciation 5,150 5,449 20,074 18,461
Amortization 1,417 1,864 6,666 7,078
Changes in operating assets
and liabilities:
Accounts receivable 14,795 1,319 4,978 (14,323)
Inventories (3,763) (5,333) (10,802) (8,850)
Accounts payable and accrued
expenses (908) 8,516 (6,501) 14,915
Other, net (2,878) (2,201) (3,026) (3,650)
---------- ---------- ---------- ----------
Net cash provided by
operating activities $ 20,523 $ 17,218 $ 48,687 $ 38,851
Cash used in investing
activities:
Purchases of property,
plant, and equipment,
net (6,293) (3,471) (21,958) (19,975)
Purchase of business, net 0 (24,754) 0 (24,754)
Other (60) (56) (60) (56)
---------- ---------- ---------- ----------
Net cash used in
investing activities (6,353) (28,281) (22,018) (44,785)
Cash provided by (used in)
financing activities:
Payments of long-term
debt, net (9,525) 5,904 (16,819) (9,132)
Proceeds from exercise
of stock options and
warrants 1,796 438 5,831 1,645
Purchase of common stock
and warrants (7,108) (2,357) (11,203) (12,833)
---------- ---------- ---------- ----------
Net cash provided by
(used in) financing
activities (14,837) 3,985 (22,191) (20,320)
Effect of exchange rate
changes on cash 62 378 (875) 181
---------- ---------- ---------- ----------
Increase/(decrease) in
cash and cash equivalents (605) (6,700) 3,603 (26,073)
Cash and cash equivalents
at beginning of period 6,096 8,588 1,888 27,961
---------- ---------- ---------- ----------
Cash and cash equivalents
at end of period $ 5,491 $ 1,888 $ 5,491 $ 1,888
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