Littelfuse Reports Second Quarter Results
DES PLAINES, Ill.--July 18, 2002--Littelfuse, Inc. today reported sales and earnings for the second quarter of 2002.Sales for the second quarter of 2002 were $73.9 million, a 7% increase from sales of $69.0 million in the second quarter of 2001. Diluted earnings per share were $0.18 in the second quarter of 2002 compared to $0.15 in the prior year period.
"The sales increase in the second quarter was due to stronger than expected automotive vehicle builds, improving fundamentals in our Asian electronic markets and inventory restocking by electronic distributors," said Howard B. Witt, Chairman, President and Chief Executive Officer. "Improving margins and strong cash flow for the quarter were further signs that Littelfuse is on the right track," added Witt.
For the second quarter of 2002, worldwide sales of electronic products increased 9%, automotive sales increased 9% and electrical fuse sales decreased 5% as compared to the prior year. Sales for the quarter increased in each geographic region, with the Americas up 6%, Asia up 14% and Europe up 1%.
"Higher production volume and continued focus on cost reduction during the quarter resulted in a 210 basis-point improvement in gross margin from the first quarter," said Phil Franklin, Vice President, Treasurer and Chief Financial Officer. "As our manufacturing rationalization program progresses in the second half, we expect further gross margin improvement," added Franklin.
The operating margin for the second quarter of 2002 was 9.3% compared to 4.5% (before restructuring charges) for the first quarter of 2002 and 7.9% for the second quarter of 2001. Free cash flow for the second quarter of 2002 was $10.1 million compared to $1.8 million for the prior year period.
"In addition to producing improved financial results during the quarter, we recently made two strategic moves that will be important to Littelfuse's future with the acquisition of Semitron Industries and the appointment of TTI, Inc. as an electronic distributor," said Witt. "The Semitron acquisition enhances our position as the world leader in circuit protection and the addition of TTI is an important step in augmenting and consolidating our electronic distribution network."
Beginning with the fiscal year 2002, the Company adopted Financial Accounting Standard No. 142 "Goodwill and Other Intangible Assets," which had the effect of eliminating the amortization of goodwill. Had such standard been in effect for 2001, diluted earnings per share for the second quarter of 2001 would have been $0.17.
Littelfuse will host a conference call today, July 18, 2002, 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 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 Thursday, July 25, 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)
Second Quarter Year-to-Date
--------------------------- --------------------------
2002 2001 % Change 2002 2001 % Change
------- ------- -------- ------- ------- --------
Market
Electronics $ 38.8 $ 35.6 9% $ 72.0 $ 79.5 -9%
Automotive 26.1 24.0 9% 50.2 47.5 6%
Electrical 9.0 9.4 -5% 16.8 17.6 -4%
------- ------- -------- ------- ------- --------
Total $ 73.9 $ 69.0 7% $ 139.0 $ 144.6 -4%
======= ======= ======== ======= ======= ========
Second Quarter Year-to-Date
--------------------------- --------------------------
2002 2001 % Change 2002 2001 % Change
------- ------- -------- ------- ------- --------
Geography
Americas $ 39.9 $ 37.7 6% $ 74.2 $ 77.9 -5%
Europe 12.3 12.2 1% 24.6 29.3 -16%
Asia Pacific 21.7 19.1 14% 40.2 37.4 8%
------- ------- -------- ------- ------- --------
Total $ 73.9 $ 69.0 7% $ 139.0 $ 144.6 -4%
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LITTELFUSE, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share data, unaudited)
For the Three Months Ended For the Six Months Ended
--------------------------- -------------------------
June 29, June 30, June 29, June 30,
----------- ----------- ----------- -----------
2002 2001 2002 2001
---- ---- ---- ----
Net sales $ 73,900 $ 68,996 $ 139,029 $ 144,586
Cost of sales 49,623 43,797 94,727 92,452
----------- ----------- ----------- -----------
Gross profit 24,277 25,199 44,302 52,134
Selling, general
and administrative
expenses 15,073 15,809 29,983 32,753
Research and
development
expenses 2,145 2,310 4,166 4,983
Amortization of
intangibles 192 1,624 384 3,247
Restructuring
expense - - 3,744 -
----------- ----------- ----------- -----------
Operating income 6,867 5,456 6,025 11,151
Interest expense 727 909 1,442 1,840
Other income (150) (583) (750) (689)
----------- ----------- ----------- -----------
Income before
income taxes 6,290 5,130 5,333 10,000
Income taxes 2,265 1,846 1,920 3,600
Net income $ 4,025 $ 3,284 $ 3,413 $ 6,400
=========== =========== =========== ===========
Net income per share:
Basic $ 0.18 $ 0.17 $ 0.16 $ 0.32
=========== =========== =========== ===========
Diluted $ 0.18 $ 0.15 $ 0.15 $ 0.30
=========== =========== =========== ===========
Net income per share
before restructuring
expense:
Basic $ 0.18 $ 0.17 $ 0.27 $ 0.32
=========== =========== =========== ===========
Diluted $ 0.18 $ 0.15 $ 0.26 $ 0.30
=========== =========== =========== ===========
Weighted average
shares and
equivalent shares
outstanding:
Basic 21,915 19,863 21,902 19,829
=========== =========== =========== ===========
Diluted 22,062 21,745 22,059 21,687
=========== =========== =========== ===========
LITTELFUSE, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
June 29, 2002 December 29, 2001
------------- -----------------
Assets:
Cash and cash equivalents $ 31,826 $ 34,527
Marketable securities 11,944 -
Receivables 47,280 40,969
Inventories 44,743 46,208
Other current assets 15,596 14,478
------------- -------------
Total current assets $ 151,389 $ 136,182
Property, plant, and equipment, net 82,200 86,601
Reorganization value, net 28,066 28,066
Other intangible assets, net 20,111 20,455
Other assets 1,553 968
------------- -------------
$ 283,319 $ 272,272
============= =============
Liabilities and Shareholders' Equity:
Current liabilities excluding
current portion of long-term debt $ 46,835 $ 42,216
Current portion of long-term debt 20,387 21,026
------------- -------------
Total current liabilities 67,222 63,242
Long-term debt 30,248 30,402
Deferred liabilities 877 835
Other long-term liabilities 682 124
Shareholders' equity 184,290 177,669
------------- -------------
Shares issued and outstanding
at June 29, 2002: 21,965,897 $ 283,319 $ 272,272
============= =============
LITTELFUSE, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
For the Three Months Ended For the Six Months Ended
--------------------------- -------------------------
June 29, June 30, June 29, June 30,
----------- ----------- ----------- -----------
2002 2001 2002 2001
---- ---- ---- ----
Operating
activities:
Net income $ 4,025 $ 3,284 $ 3,413 $ 6,400
Adjustments to
reconcile net
income to net
cash provided by
operating
activities:
Depreciation 4,302 4,800 8,623 9,600
Amortization 192 1,624 384 3,247
Changes in
operating
assets and
liabilities:
Accounts
receivable (230) (603) (4,886) 3,233
Inventories 1,145 1,525 2,341 (167)
Accounts payable
and accrued
expenses 1,846 (5,244) 4,653 (11,661)
Other, net 461 691 (427) (1,542)
----------- ----------- ----------- -----------
Net cash provided
by operating
activities $ 11,741 $ 6,077 $ 14,101 $ 9,110
Cash used in
investing
activities:
Purchases of
property, plant,
and equipment, net (1,592) (4,267) (3,399) (9,398)
Purchase of
marketable
securities (11,944) - (11,944) -
----------- ----------- ----------- -----------
Net cash used in
investing
activities (13,536) (4,267) (15,343) (9,398)
Cash provided by
(used in) financing
activities:
Proceeds from
long-term debt - 4,802 - 15,902
Payments of
long-term debt (124) (4,134) (1,728) (11,441)
Proceeds from
exercise of
stock options
and warrants 583 895 1,271 1,353
Purchase of
common stock
and warrants - - - (1,256)
----------- ----------- ----------- -----------
Net cash provided
by (used in)
financing
activities 459 1,563 (457) 4,558
Effect of exchange
rate changes on cash (935) 140 (1,002) 189
----------- ----------- ----------- -----------
Increase/(decrease)
in cash and cash
equivalents (2,271) 3,513 (2,701) 4,459
Cash and cash
equivalents at
beginning
of period 34,097 6,437 34,527 5,491
----------- ----------- ----------- -----------
Cash and cash
equivalents at
end of period $ 31,826 $ 9,950 $ 31,826 $ 9,950
=========== =========== =========== ===========
Free cash flow
(operating cash
flow less
purchases of PP&E,
net) 10,149 1,810 10,702 (288)