Littelfuse Reports First Quarter Results
DES PLAINES, Ill.--April 17, 2002--Littelfuse, Inc. today reported sales and earnings for the first quarter of 2002.Sales for the first quarter of 2002 were $65.1 million, a 14% decrease from sales of $75.6 million in the first quarter of 2001. Diluted earnings per share, excluding restructuring costs, were $0.08 in the first quarter of 2002. Including restructuring costs, the net loss for the quarter was $0.6 million or $0.03 per diluted share compared to net income of $3.1 million or $0.14 per diluted share in the first quarter of 2001.
"Although overall business conditions remain soft, sales increased 7% compared to the fourth quarter, our first sequential sales increase since the second quarter of 2000," said Howard B. Witt, Chairman, President and Chief Executive Officer. "Automotive vehicle builds have been surprisingly strong so far this year, and we are seeing signs of firming in some of our electronics markets in Asia and North America. On the other hand, the electrical market is still weak as are the electronics markets in Japan and Europe," added Witt.
For the first quarter of 2002, worldwide sales of electronic products decreased 24%, automotive sales increased 2% and electrical fuse sales decreased 4% as compared to the same period in the prior year. Overall, sales for the quarter decreased 15% in the Americas and 28% in Europe, and increased 1% in Asia, as compared to the first quarter of 2001. Restructuring expenses of $3.7 million were recorded in the first quarter related to workforce reductions at manufacturing facilities in Korea and Ireland. "These are the last known restructuring expenses related to the current manufacturing rationalization program," said Phil Franklin, Vice President, Treasurer and Chief Financial Officer.
"With improving order rates and leaner inventories, we have begun to increase production volumes, which contributed to the stabilization of gross margins in the first quarter," said Franklin. "We remain committed to reducing our overall cost structure, with manufacturing and other cost reduction programs on track to deliver $8-10 million of savings in 2002," added Franklin.
Littelfuse will host a conference call today, April 17, 2002, at 11:00 a.m. Eastern/10:00 a.m. Central time to discuss the first quarter results. The call will be broadcast live over the Internet and can be accessed through the company's Web site: www.littelfuse.com or through www.companyboardroom.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 Wednesday, April 24, 2002, and can be accessed through the Web sites listed above.
Littelfuse is a global company offering the broadest line of circuit protection products in the industry. In addition to its Des Plaines world headquarters, Littelfuse has manufacturing facilities in England, Ireland, Switzerland, Mexico, Korea, China and the Philippines, as well as in Centralia, Des Plaines and Arcola, Illinois. It also has sales, engineering and distribution facilities in the Netherlands, Singapore, Hong Kong, Taiwan, Japan and Brazil.
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.
Any forward looking statements contained herein involve risks and uncertainties, including, but not limited to, product demand and market acceptance risks, the effect of economic conditions, the impact of competitive products and pricing, product development and patent protection, commercialization and technological difficulties, capacity and supply constraints or difficulties, exchange rate fluctuations, actual purchases under agreements, the effect of the company's accounting policies, labor disputes, restructuring costs in excess of expectations and other risks which may be detailed in the company's Securities and Exchange Commission filings.
LITTELFUSE, INC.
Sales by Market and Geography
(Dollars in millions)
First Quarter
--------------------------------
2002 2001 % Change
---- ---- --------
Market
------
Electronics $ 33.2 $ 43.9 -24%
Automotive 24.1 23.6 2%
Electrical 7.8 8.1 -4%
------- ------- --------
Total $ 65.1 $ 75.6 -14%
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First Quarter
--------------------------------
2002 2001 % Change
---- ---- --------
Geography
---------
Americas $ 34.3 $ 40.2 -15%
Europe 12.2 17.1 -28%
Asia Pacific 18.6 18.3 1%
------- ------- --------
Total $ 65.1 $ 75.6 -14%
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LITTELFUSE, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
For the Three Months Ended
--------------------------
March 30, March 31,
----------- -----------
2002 2001
---- ----
Net sales $ 65,130 $ 75,590
Cost of sales 45,105 48,655
----------- -----------
Gross profit 20,025 26,935
Selling, general and administrative expenses 14,909 16,944
Research and development expenses 2,022 2,673
Amortization of intangibles 192 1,623
Restructuring expense 3,744 -
----------- -----------
Operating income (loss) (842) 5,695
Interest expense 716 931
Other income (601) (106)
----------- -----------
Income (loss) before income taxes (957) 4,870
Income taxes (benefit) (345) 1,754
----------- -----------
Net income (loss) $ (612) $ 3,116
=========== ===========
Net income (loss) per share:
Basic $ (0.03) $ 0.16
=========== ===========
Diluted $ (0.03) $ 0.14
=========== ===========
Net income per share before restructuring
expense:
Basic $ 0.08 $ 0.16
=========== ===========
Diluted $ 0.08 $ 0.14
=========== ===========
Weighted average shares and equivalent shares
outstanding:
Basic 21,877 19,794
=========== ===========
Diluted 22,044 21,689
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LITTELFUSE, INC.
Condensed Consolidated Balance Sheets
(in thousands)
March 30, 2002 December 29, 2001
-------------- -----------------
(unaudited)
Assets:
Cash and cash equivalents $ 34,097 $ 34,527
Receivables 44,312 40,969
Inventories 44,927 46,208
Other current assets 16,611 14,478
-------------- -----------------
Total current assets $ 139,947 $ 136,182
Property, plant, and equipment, net 83,108 86,601
Reorganization value, net 28,066 28,066
Other intangible assets, net 20,262 20,455
Other assets 1,526 968
-------------- -----------------
$ 272,909 $ 272,272
============== =================
Liabilities and Shareholders' Equity:
Current liabilities excluding
current portion of long-term debt $ 44,973 $ 42,216
Current portion of long-term debt 19,404 21,026
-------------- -----------------
Total current liabilities 64,377 63,242
Long-term debt 30,314 30,402
Deferred liabilities 831 835
Other long-term liabilities 68 124
Shareholders' equity 177,319 177,669
-------------- -----------------
Shares issued and outstanding
at March 30, 2002: 21,940,047 $ 272,909 $ 272,272
============== =================
LITTELFUSE, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
For the Three Months Ended
----------------------------
March 30, March 31,
--------- ---------
2002 2001
---- ----
Operating activities:
Net income (loss) $ (612) $ 3,116
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 4,321 4,800
Amortization 192 1,623
Changes in operating assets and liabilities:
Accounts receivable (4,656) 3,837
Inventories 1,197 (1,692)
Accounts payable and accrued expenses 2,805 (6,417)
Prepaid expenses and other (887) (2,234)
--------- ---------
Net cash provided by operating
activities $ 2,360 $ 3,033
Cash used in investing activities:
Purchases of property, plant, and
equipment, net (1,805) (5,130)
--------- ---------
Net cash used in investing activities (1,805) (5,130)
Cash provided by (used in) financing activities:
Proceeds from long-term debt - 11,100
Payments of long-term debt (1,604) (7,307)
Proceeds from exercise of stock
options and warrants 687 458
Purchase of common stock and warrants - (1,256)
--------- ---------
Net cash provided by (used in) financing
activities (917) 2,995
Effect of exchange rate changes on cash (68) 48
--------- ---------
Increase/(decrease) in cash and cash
equivalents (430) 946
Cash and cash equivalents at beginning
of period 34,527 5,491
--------- ---------
Cash and cash equivalents at end of
period $ 34,097 $ 6,437
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