Littelfuse Reports Fourth Quarter and 2002 Results
DES PLAINES, Ill.--Jan. 27, 2003--Littelfuse, Inc. today reported sales and earnings for the fourth quarter of 2002 and the year.Sales for the fourth quarter of 2002 were $69.3 million, a 14% increase from sales of $60.9 million in the fourth quarter of 2001. Excluding Semitron (acquired in July, 2002), sales increased 10% compared to the prior year quarter. Diluted earnings per share were $0.12 in the fourth quarter of 2002 compared to $0.01 in the fourth quarter of 2001 before restructuring charges. Including restructuring charges, the company reported a loss of $0.14 per share for the fourth quarter of 2001.
"The improvement in fourth quarter sales reflected higher electronic sales in Asia, higher automotive sales in all regions, the addition of Semitron and the effects of a weaker dollar," said Howard B. Witt, Chairman, President and Chief Executive Officer.
For the full year, sales were $283.3 million, a 4% increase from sales of $272.1 million in 2001. Diluted earnings per share for 2002 increased to $0.44 compared to $0.19 for the prior year. Excluding restructuring charges, diluted earnings per share for 2002 increased to $0.55 compared $0.37 in 2001.
For the fourth quarter of 2002, worldwide sales of electronic products increased 20%, automotive sales increased 11% and electrical sales decreased 3% as compared to the prior year. Excluding the effects of currency and Semitron, fourth quarter sales increased 8% overall, with electronics up 11%, automotive up 8% and electrical down 3%.
For the full year 2002, worldwide sales of electronic products increased 3%, automotive sales increased 8% and electrical sales decreased 2%. Excluding the effects of currency and Semitron, full year 2002 sales were up 2%, with electronics flat, automotive up 6% and electrical down 2%.
"While our end markets did not recover in 2002 as we had hoped, we made substantial progress toward a leaner cost structure and improved asset utilization," said Phil Franklin, Vice President, Treasurer and Chief Financial Officer. "We are on schedule with our manufacturing rationalization plan, are continuing to trim operating expenses and have significantly improved working capital turns. These efforts all contributed to record free cash flow of $32.5 million in 2002," added Franklin.
"We look forward to slowly improving end markets and further increases in profitability in 2003," said Witt. "We believe the steps we took in 2002 to strengthen the organization, broaden our product offering and reduce costs have positioned the company well for 2003 and the future."
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 Standard No. 142 been in effect for 2001, diluted earnings per share would have been a loss of $0.10 for the fourth quarter and a profit of $0.30 for the full year.
Littelfuse will host a conference call today, January 27, 2003, at 11:00 a.m. Eastern/10:00 a.m. Central time to discuss the fourth 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 15 minutes prior to the call to download and install any necessary audio software. The call will be available for replay through Monday, February 3, 2003, and can be accessed through the Web site 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)
Fourth Quarter Year-to-Date
------------------------ ------------------------
2002 2001 % Change 2002 2001 % Change
Market ---- ---- -------- ---- ---- --------
------
Electronics $ 38.0 $ 31.8 20% $150.9 $146.3 3%
Automotive 23.4 21.0 11% 98.2 91.1 8%
Electrical 7.9 8.1 -3% 34.2 34.7 -2%
------ ------ ------ ------ ------ ------
Total $ 69.3 $ 60.9 14% $283.3 $272.1 4%
====== ====== ====== ====== ====== ======
Fourth Quarter Year-to-Date
------------------------ ------------------------
2002 2001 % Change 2002 2001 % Change
Geography ---- ---- -------- ---- ---- --------
---------
Americas $ 33.8 $ 31.6 7% $148.1 $144.9 2%
Europe 12.7 11.0 15% 50.7 51.4 -1%
Asia Pacific 22.8 18.3 25% 84.5 75.8 12%
------ ------ ------ ------ ------ ------
Total $ 69.3 $ 60.9 14% $283.3 $272.1 4%
====== ====== ====== ====== ====== ======
LITTELFUSE, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
For the Three Months Ended For the Twelve Months Ended
-------------------------- ---------------------------
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
--------- --------- --------- ---------
2002 2001 2002 2001
---- ---- ---- ----
Net sales $ 69,274 $ 60,851 $ 283,267 $ 272,149
Cost of sales 46,569 42,586 192,870 180,241
--------- --------- --------- ---------
Gross profit 22,705 18,265 90,397 91,908
Selling, general
and administrative
expenses 16,396 14,928 61,621 62,198
Research and
development
expenses 2,046 1,758 8,334 8,883
Amortization of
intangibles 192 1,103 767 5,972
Restructuring
expense - 4,578 3,744 6,315
--------- --------- --------- ---------
Operating
income/(loss) 4,071 (4,102) 15,931 8,540
Interest expense 482 647 2,653 3,291
Other
(income)/expense (379) (368) (1,753) (1,112)
--------- --------- --------- ---------
Income/(loss)
before income
taxes 3,968 (4,381) 15,031 6,361
Income
taxes/(benefit) 1,428 (1,577) 5,411 2,291
Net income/(loss) $ 2,540 $ (2,804) $ 9,620 $ 4,070
========= ========= ========= =========
Net income/(loss)
per share:
Basic $ 0.12 $ (0.14) $ 0.44 $ 0.20
========= ========= ========= =========
Diluted $ 0.12 $ (0.14) $ 0.44 $ 0.19
========= ========= ========= =========
Net income per
share before
restructuring
expense:
Basic $ 0.12 $ 0.01 $ 0.55 $ 0.41
========= ========= ========= =========
Diluted $ 0.12 $ 0.01 $ 0.55 $ 0.37
========= ========= ========= =========
Weighted average
shares and
equivalent shares
outstanding:
Basic 21,857 20,168 21,858 19,951
========= ========= ========= =========
Diluted 21,910 20,168 21,971 21,731
========= ========= ========= =========
LITTELFUSE, INC.
Condensed Consolidated Balance Sheets
(in thousands, unaudited)
December 28, 2002 December 29, 2001
----------------- -----------------
Assets:
Cash and cash equivalents $ 27,750 $ 34,527
Marketable securities 8,806 -
Receivables 40,810 40,969
Inventories 44,533 46,208
Other current assets 15,110 14,478
--------- ---------
Total current assets $ 137,009 $ 136,182
Property, plant, and equipment, net 81,122 86,601
Reorganization value, net 27,665 28,066
Other intangible assets, net 28,291 20,455
Other assets 3,355 968
--------- ---------
$ 277,442 $ 272,272
========= =========
Liabilities and Shareholders' Equity:
Current liabilities excluding
current portion of long-term debt $ 50,336 $ 42,216
Current portion of long-term debt 18,994 21,026
--------- ---------
Total current liabilities $ 69,330 $ 63,242
Long-term debt 20,252 30,402
Other long-term liabilities 3,512 959
Shareholders' equity 184,348 177,669
--------- ---------
Shares issued and outstanding
as of Dec. 28, 2002: 21,759,065 $ 277,442 $ 272,272
========= =========
LITTELFUSE, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
For the Three Months Ended For the Twelve Months Ended
-------------------------- ---------------------------
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
--------- --------- --------- ---------
2002 2001 2002 2001
---- ---- ---- ----
Operating
activities:
Net income/(loss) $ 2,540 $ (2,804) $ 9,620 $ 4,070
Adjustments to
reconcile net
income/(loss)
to net cash
provided by
operating
activities:
Depreciation 4,904 5,562 18,137 19,710
Amortization 192 1,103 767 5,972
Changes in operating
assets and
liabilities:
Accounts
receivable 9,747 8,240 2,794 10,573
Inventories (257) 6,602 4,762 11,873
Accounts payable
and accrued
expenses 888 5,368 6,369 (3,710)
Other, net (2,229) (7,324) (1,636) (8,178)
--------- --------- --------- ---------
Net cash provided
by operating
activities $ 15,785 $ 16,747 $ 40,813 $ 40,310
Cash used in
investing
activities:
Purchases of
property, plant,
and equipment,
net (3,175) (2,340) (8,360) (14,121)
Purchase of
business - - (15,031) (168)
Purchase of
marketable
securities (612) - (8,806) -
--------- --------- --------- ---------
Net cash used in
investing
activities (3,787) (2,340) (32,197) (14,289)
Cash provided
by/(used in)
financing
activities:
Proceeds from
long-term debt 112 - 112 15,855
Payments of
long-term debt (1,264) (196) (13,130) (21,887)
Proceeds from
exercise of stock
options and
warrants 11 7,938 1,557 10,515
Purchase of common
stock and
warrants (2,230) - (3,555) (1,256)
--------- --------- --------- ---------
Net cash provided
by/(used in)
financing
activities (3,371) 7,742 (15,016) 3,227
Effect of exchange
rate changes on
cash 1,065 (307) (377) (212)
--------- --------- --------- ---------
Increase/(decrease)
in cash and cash
equivalents 9,692 21,842 (6,777) 29,036
Cash and cash
equivalents at
beginning of period 18,058 12,685 34,527 5,491
--------- --------- --------- ---------
Cash and cash
equivalents at end
of period $ 27,750 $ 34,527 $ 27,750 $ 34,527
========= ========= ========= =========
Free cash flow
(operating cash
flow less
purchases of PP&E,
net) $ 12,610 $ 14,407 $ 32,453 $ 26,189