Littelfuse Reports Second Quarter 2005 Results
DES PLAINES, Ill.--Aug. 3, 2005--Littelfuse, Inc. today reported sales and earnings for the second quarter of 2005.Sales for the second quarter of 2005 were $123.9 million, a 4% decrease from sales of $128.8 million in the second quarter of 2004. Heinrich Industrie AG, acquired in May 20, 200504, accounted for $20.9 million of second quarter 2005 sales. Diluted earnings per share were $0.19 for the second quarter of 2005, compared to $0.46 for the second quarter of 2004.
Excluding Heinrich, sales for the second quarter of 2005 compared to the prior year period were down 10%, with the Americas down 12%, Europe down 21% and Asia down 1%. By market and excluding Heinrich, sales for the second quarter of 2005 compared to the prior year period were down 14% for electronics, down 5% for automotive and up 8% for electrical.
Electronic sales declined compared to the prior year quarter due to weakness in telecom end markets and lower distributor sales in both North America and Europe. The Automotive sales decline reflected one-time sales in the prior year quarter related to an OEM recall program and slightly lower car build in North America. Electrical sales increased due to higher prices and strength in the non-construction segments of the market.
Sales for the first six months of 2005 were $245.6 million, up 2% from sales of $240.2 million for the first six months of 2004. Diluted earnings per share were $0.38 for the first six months of 2005, compared to $0.89 per diluted share for the prior year period. Excluding Heinrich, sales for the first six months of 2005 were down 10% compared to the same period in the prior year.
"Our second quarter performance, although well below the prior year, was similar to the first quarter and consistent with our most recent guidance." said Gordon Hunter, Chief Executive Officer. "While we are disappointed in our financial results for the first half of 2005, we believe the business is now well positioned for improved performance in the second half of the year."
"Gross margin for the quarter was negatively impacted by $1.6 million of inventory and asset write-downs and an automotive quality charge of $0.5 million," said Phil Franklin, Chief Financial Officer. "Operating expenses were higher than the second quarter of the prior year due to only a partial quarter of Heinrich in 2004."
Cash from operating activities was $12.1 million for the second quarter of 2005, compared to $16.1 million for the same period in 2004, due to the lower net income. Net capital expenditures for the second quarter of 2005 were $8.3 million, compared to $6.1 million in the second quarter of 2004, reflecting increased spending related to new products.
Littelfuse will host a conference call today, Wednesday, August 3, 2005 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. 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 September 30, 2005 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, Illinois, world headquarters, Littelfuse has research and manufacturing facilities in China, England, Germany, Ireland, Mexico, the Philippines and the United States. It also has sales, distribution and engineering facilities in Brazil, China, Germany, Hungary, the Netherlands, Japan, Korea, Taiwan, Hong Kong, Singapore and the U.S.
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.
LITTELFUSE, INC.
Sales by Market and Geography(a)
(Dollars in Millions)
Second Quarter Year-to-Date
------------------------- -------------------------
2005 2004 % Change 2005 2004 % Change
------- ------- --------- ------- ------- ---------
Market
------
Electronics $66.9 $77.5 -14% $130.2 $152.4 -15%
Automotive 25.3 26.7 -5% 51.1 54.5 -6%
Electrical 10.8 10.0 8% 20.8 18.7 11%
------- ------- --------- ------- ------- ---------
Subtotal 103.0 114.2 -10% 202.1 225.6 -10%
Heinrich 20.9 14.6 43% 43.5 14.6 198%
------- ------- --------- ------- ------- ---------
Total $123.9 $128.8 -4% $245.6 $240.2 2%
======= ======= ========= ======= ======= =========
Second Quarter Year-to-Date
------------------------- -------------------------
2005 2004 % Change 2005 2004 % Change
------- ------- --------- ------- ------- ---------
Geography
---------
Americas $49.4 $55.7 -11% $99.6 $108.9 -9 %
Europe 31.9 30.9 3% 66.4 51.8 28%
Asia Pacific 42.6 42.2 1% 79.6 79.5 -
------- ------- --------- ------- ------- ---------
Total $123.9 $128.8 -4% $245.6 $240.2 2%
======= ======= ========= ======= ======= =========
(a) Certain prior year amounts have been reclassified to conform to
the current year presentation.
LITTELFUSE, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share data, unaudited)
For the Three Months For the Six Months
Ended Ended
--------------------- -------------------
July 2, July 3, July 2, July 3,
------- ------- ------- -------
2005 2004 2005 2004
---- ---- ---- ----
Net sales $123,867 $128,759 $245,555 $240,177
Cost of sales 86,212 84,580 168,209 156,193
========= ========= ========= =========
Gross profit 37,655 44,179 77,346 83,984
Selling, general and
administrative expenses 25,435 23,572 52,549 44,115
Research and development
expenses 4,705 4,156 9,443 7,337
Amortization of intangibles 463 470 1,094 809
========= ========= ========= =========
Operating income 7,052 15,981 14,260 31,723
Interest expense 580 492 1,059 918
Other income (98) (768) (232) (461)
========= ========= ========= =========
Income before income taxes
and minority interest 6,570 16,257 13,433 31,266
Minority interest (5) 60 2 60
Income taxes 2,318 5,853 4,735 11,256
========= ========= ========= =========
Net income $4,257 $10,344 $8,696 $19,950
Net income per share:
Basic $0.19 $0.47 $0.39 $0.90
========= ========= ========= =========
Diluted $0.19 $0.46 $0.38 $0.89
========= ========= ========= =========
Weighted average shares and
equivalent shares
outstanding:
Basic 22,423 22,180 22,453 22,107
========= ========= ========= =========
Diluted 22,613 22,684 22,681 22,515
========= ========= ========= =========
LITTELFUSE, INC.
Condensed Consolidated Balance Sheets
(in thousands, unaudited)
July 2, 2005 January 1, 2005
--------------- ---------------
Assets:
Cash and cash equivalents $32,647 $28,583
Receivables 80,971 77,726
Inventories 71,250 79,080
Deferred income taxes 20,448 17,056
Other current assets 8,575 6,804
--------------- ---------------
Total current assets 213,891 209,249
Property, plant, and equipment, net 139,314 136,465
Intangible assets, net 17,760 19,052
Goodwill 54,534 55,249
Investments 5,138 4,886
Other assets 410 408
--------------- ---------------
Total assets $431,047 $425,309
=============== ===============
Liabilities and Shareholders' Equity:
Current liabilities excluding current
portion of long-term debt $66,322 $82,196
Current portion of long-term debt 42,959 32,958
--------------- ---------------
Total current liabilities 109,281 115,154
Long-term debt 1,544 1,364
Deferred income taxes 8,649 8,573
Accrued post-retirement benefits 19,481 20,417
Other long-term liabilities 13,949 7,081
Minority interest 2,668 2,636
Shareholders' equity 275,475 270,084
--------------- ---------------
Total liabilities and shareholders'
equity $431,047 $425,309
=============== ===============
Common shares issued and outstanding
of 22,453,183 and 22,549,595,
at July 2, 2005, and January 1, 2005,
respectively
LITTELFUSE, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
For the Three Months For the Six Months
Ended Ended
--------------------- -------------------
July 2, July 3, July 2, July 3,
------- ------- ------- -------
2005 2004 2005 2004
---- ---- ---- ----
Operating activities:
Net income $4,257 $10,344 $8,696 $19,950
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 7,511 6,177 14,152 11,816
Amortization 463 470 1,094 809
Changes in operating assets
and liabilities:
Accounts receivable (4,908) (5,597) (6,435) (13,818)
Inventories 4,006 1,137 4,951 (1,233)
Accounts payable and
accrued expenses (1,971) 2,189 (9,234) 1,779
Other, net 2,759 1,407 (1,014) (241)
--------- --------- --------- ---------
Net cash provided by
operating activities 12,117 16,127 12,210 19,062
Cash used in investing
activities:
Purchases of property,
plant, and equipment (8,266) (6,059) (16,964) (9,051)
Acquisitions, net of cash
acquired (991) (32,807) (1,019) (32,807)
Sale of property, plant &
equipment - - - -
Sale (purchase) of
marketable securities, net - - - -
--------- --------- --------- ---------
Net cash used in investing
activities (9,257) (38,866) (17,983) (41,858)
Cash provided by (used in)
financing activities:
Proceeds from long-term
debt 10,895 32,000 25,951 32,000
Payments of long-term debt (10,000) (3,008) (15,213) (3,047)
Proceeds from repayment of
notes receivable, common
stock 12 - 3,533 -
Proceeds from exercise of
stock options 214 6,425 675 8,309
Purchase of treasury stock - - (3,199) -
--------- --------- --------- ---------
Net cash provided by
financing activities 1,121 35,417 11,747 37,262
Effect of exchange rate
changes on cash (724) (2,189) (1,910) (2,210)
--------- --------- --------- ---------
Increase in cash and cash
equivalents 3,257 10,489 4,064 12,256
Cash and cash equivalents at
beginning of period 29,390 23,895 28,583 22,128
--------- --------- --------- ---------
Cash and cash equivalents at
end of period $32,647 $34,384 $32,647 $34,384
========= ========= ========= =========