Littelfuse Reports Third Quarter Results
DES PLAINES, Ill.--Oct. 22, 2002--Littelfuse, Inc. today reported sales and earnings for the third quarter of 2002.Sales for the third quarter of 2002 were $75.0 million, a 12% increase from sales of $66.7 million in the third quarter of 2001. Excluding sales of $2.0 million related to the July 2002 acquisition of Semitron Industries, sales in the third quarter were $73.0 million, a 9% increase over the prior year. Diluted earnings per share were $0.17 in the third quarter of 2002 compared to $0.02 in the prior year period.
"Sales increased in the third quarter due to higher electronic and automotive product sales as well as the acquisition of Semitron," said Howard B. Witt, Chairman, President and Chief Executive Officer. "Continued higher vehicle production in North America and incremental improvement in electronic markets contributed to the year-over-year increase," added Witt.
Compared to the third quarter of 2001, worldwide sales of electronic products increased 16%, automotive sales increased 9% and electrical fuse sales increased 4%. Excluding Semitron, electronic sales for the third quarter of 2002 increased 11%. Sales for the quarter increased in each geographic region, with the Americas up 13%, Asia up 7% and Europe up 20%. Excluding Semitron, sales for the quarter increased in each region, with the Americas up 11%, Asia up 5% and Europe up 11%.
"While the third quarter operating margin improved over the prior year, margins declined compared to the second quarter due to greater than historical price pressure, decreased electronic production volumes and the addition of Semitron which is currently operating at about breakeven," said Phil Franklin, Vice President, Treasurer and Chief Financial Officer. "Cost reduction and cash flow remain high priorities. We are achieving our milestones for the worldwide manufacturing rationalization project, and we continue to trim operating expenses. Free cash flow remains strong with $9.1 million in the third quarter resulting from profitability, good working capital control and reduced capital expenditures. This brings year-to-date free cash flow to $19.8 million," added Franklin.
"We are enthused about the Semitron acquisition, and the integration into Littelfuse is going well," said Witt. "The addition of the Semitron diodes, thyristors and gas discharge tubes to our market-leading circuit protection offering has been well received by our customers and is resulting in additional sales opportunities."
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 third quarter and first nine months of 2001 would have been $0.05 and $0.40 respectively.
Littelfuse will host a conference call today, October 22, 2002, at 11:00 a.m. Eastern/10:00 a.m. Central time to discuss the third 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 Tuesday, October 29, 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, 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, Korea 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)
Third Quarter Year-to-Date
--------------------------- --------------------------
2002 2001 % Change 2002 2001 % Change
---- ---- -------- ---- ---- --------
Market
Electronics $ 40.9 $ 35.1 16% $ 112.9 $ 114.6 -2%
Automotive 24.6 22.5 9% 74.8 70.0 7%
Electrical 9.5 9.1 4% 26.3 26.7 -1%
------- ------- -------- ------- ------- --------
Total $ 75.0 $ 66.7 12% $ 214.0 $ 211.3 1%
======= ======= ======== ======= ======= ========
Third Quarter Year-to-Date
--------------------------- --------------------------
2002 2001 % Change 2002 2001 % Change
---- ---- -------- ---- ---- --------
Geography
Americas $ 40.0 $ 35.4 13% $ 114.3 $ 113.3 1%
Europe 13.5 11.2 20% 38.0 40.5 -6%
Asia Pacific 21.5 20.1 7% 61.7 57.5 7%
------- ------- -------- ------- ------- --------
Total $ 75.0 $ 66.7 12% $ 214.0 $ 211.3 1%
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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 Nine Months Ended
-------------------------- -------------------------
Sept. 28, Sept. 29, Sept. 28, Sept. 29,
--------- --------- --------- ---------
2002 2001 2002 2001
---- ---- ---- ----
Net sales $ 74,964 $ 66,711 $ 213,994 $ 211,297
Cost of sales 51,574 45,202 146,301 137,654
--------- --------- --------- ---------
Gross profit 23,390 21,509 67,693 73,643
Selling, general
and administrative
expenses 15,243 14,517 45,226 47,270
Research and
development
expenses 2,121 2,142 6,288 7,125
Amortization of
intangibles 191 1,623 575 4,870
Restructuring
expense - 1,736 3,744 1,736
--------- --------- --------- ---------
Operating income 5,835 1,491 11,860 12,642
Interest expense 729 805 2,171 2,645
Other
(income)/expense (623) (56) (1,373) (744)
--------- --------- --------- ---------
Income before
income taxes 5,729 742 11,062 10,741
Income taxes 2,062 268 3,982 3,867
Net income $ 3,667 $ 474 $ 7,080 $ 6,874
========= ========= ========= =========
Net income per share:
Basic $ 0.17 $ 0.02 $ 0.32 $ 0.35
========= ========= ========= =========
Diluted $ 0.17 $ 0.02 $ 0.32 $ 0.32
========= ========= ========= =========
Net income per
share before
restructuring
expense:
Basic $ 0.17 $ 0.08 $ 0.43 $ 0.40
========= ========= ========= =========
Diluted $ 0.17 $ 0.07 $ 0.43 $ 0.37
========= ========= ========= =========
Weighted average
shares and
equivalent shares
outstanding:
Basic 21,926 19,958 21,896 19,872
========= ========= ========= =========
Diluted 22,015 21,726 22,034 21,716
========= ========= ========= =========
LITTELFUSE, INC.
Condensed Consolidated Balance Sheets
(in thousands, unaudited)
Sept. 28, 2002 Dec. 29, 2001
-------------- -------------
Assets:
Cash and cash
equivalents $ 18,058 $ 34,527
Marketable
securities 8,194 -
Receivables 50,228 40,969
Inventories 44,224 46,208
Other current assets 15,159 14,478
-------------- -------------
Total current assets $ 135,863 $ 136,182
Property, plant,
and equipment, net 82,280 86,601
Reorganization value, net 28,066 28,066
Other intangible assets, net 28,151 20,455
Other assets 3,601 968
-------------- -------------
$ 277,961 $ 272,272
============== =============
Liabilities and Shareholders' Equity:
Current liabilities excluding
current portion of long-term debt $ 49,874 $ 42,216
Current portion of long-term debt 20,149 21,026
-------------- -------------
Total current liabilities $ 70,023 $ 63,242
Long-term debt 20,138 30,402
Deferred liabilities 875 835
Other long-term liabilities 236 124
Shareholders' equity 186,689 177,669
-------------- -------------
Shares issued and outstanding
as of Sept. 28, 2002: 21,907,247 $ 277,961 $ 272,272
============== =============
LITTELFUSE, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
For the Three Months Ended For the Nine Months Ended
-------------------------- -------------------------
Sept. 28, Sept. 29, Sept. 28, Sept. 29,
--------- --------- --------- ---------
2002 2001 2002 2001
---- ---- ---- ----
Operating
activities:
Net income $ 3,667 $ 474 $ 7,080 $ 6,874
Adjustments to
reconcile net
income to net
cash provided by
operating activities:
Depreciation 4,610 4,548 13,233 14,148
Amortization 191 1,623 575 4,870
Changes in operating
assets and liabilities:
Accounts
receivable (2,067) (900) (6,953) 2,333
Inventories 2,678 5,438 5,019 5,271
Accounts payable
and accrued
expenses 829 2,583 5,481 (9,078)
Other, net 1,019 688 592 (855)
--------- --------- --------- ---------
Net cash provided
by operating
activities $ 10,927 $ 14,454 $ 25,027 $ 23,563
Cash used in
investing activities:
Purchases of
property, plant,
and equipment, net (1,787) (2,384) (5,185) (11,782)
Purchase of
business (15,031) (168) (15,031) (168)
Sale/(purchase)
of marketable
securities 3,750 - (8,194) -
--------- --------- --------- ---------
Net cash used
in investing
activities (13,068) (2,552) (28,410) (11,950)
Cash provided
by/(used in)
financing
activities:
Proceeds from
long-term debt - - - 15,883
Payments of
long-term debt (10,138) (10,298) (11,866) (21,720)
Proceeds from
exercise of
stock options
and warrants 276 1,225 1,546 2,578
Purchase of
common stock
and warrants (1,325) - (1,325) (1,256)
--------- --------- --------- ---------
Net cash used
in financing
activities (11,187) (9,073) (11,645) (4,515)
Effect of exchange
rate changes
on cash (440) (94) (1,441) 96
--------- --------- --------- ---------
Increase/(decrease)
in cash and cash
equivalents (13,768) 2,735 (16,469) 7,194
Cash and cash
equivalents at
beginning
of period 31,826 9,950 34,527 5,491
--------- --------- --------- ---------
Cash and cash
equivalents at
end of period $ 18,058 $ 12,685 $ 18,058 $ 12,685
========= ========= ========= =========
Free cash flow
(operating cash
flow less purchases
of PP&E, net) 9,140 12,070 19,842 11,781