Littelfuse Reports Record Fourth Quarter and Year
25 January 2000
Littelfuse Reports Record Fourth Quarter and Year
DES PLAINES, Ill.--Jan. 25, 2000--Littelfuse, Inc. (NASDAQ/NMS:LFUS) today reported record sales and earnings for the fourth quarter of 1999 and the year.Sales for the fourth quarter of 1999 were $82.0 million, a 32% increase from sales of $62.1 million for the fourth quarter of 1998. Net income rose 142% in the fourth quarter of 1999 to $7.6 million, compared to net income of $3.1 million for the same period in the prior year. Diluted earnings per share were $0.35, a 150% increase from diluted earnings of $0.14 per share for the comparable prior period.
For the full year, sales were $296.4 million, a 10% increase from sales of $269.5 million in 1998. Net income was $25.2 million in 1999, up 27% from net income of $19.9 million in 1998. Diluted earnings per share rose 35% in 1999 to $1.16, compared to diluted earnings of $0.86 per share for the prior year.
"Fourth quarter earnings exceeded our expectations. Electronics demand, which has been strengthening all year, was higher than anticipated and most importantly, gross margins improved sequentially for the fourth consecutive quarter," said Howard B. Witt, Chairman, President and Chief Executive Officer. "Electronic sales were up 30% in the fourth quarter as compared to the prior year, with all geographic segments contributing to the increase. The two and one-half months of revenue from our recent acquisition of Harris Suppression Products Group also contributed to fourth quarter sales," he said.
For the full year, worldwide sales of electronic products increased 10%, automotive sales increased 4% and power fuse sales increased 3%. Geographically, sales for the year increased 5% in the Americas, 12% in Europe and 22% in Asia.
Operating income increased 31% in 1999 to $44.6 million and the operating margin increased 2.4 percentage points to 15.1% of sales. "Our successful worldwide cost reduction program has been a key factor contributing to the improved margins in 1999," said Phil Franklin, Vice President, Treasurer and Chief Financial Officer. "Other contributing factors were steadily increasing unit volumes and firming of pricing on capacity-limited products during the fourth quarter," added Franklin.
Witt said that while the October 1999 acquisition of the Harris Suppression Products Group is expected to contribute to Littelfuse profits in 2000, it did not have a significant impact on 1999 earnings. "The acquisition significantly expands our product line into overvoltage circuit protection. As a result of our now even broader electronic product offering, we believe we are well positioned to benefit from the continuing growth in sales of computers and telecommunications devices as well as the expansion of the Internet. We look forward to further improvement in our financial performance during the coming year."
Littelfuse is a leading producer of electronic, power and automotive fuses. 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 and Arcola, Illinois. It also has sales, engineering and distribution facilities in the Netherlands, Singapore, Hong Kong, Japan, Brazil and Farmington Hills, Michigan.
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, and other risks which may be detailed in the company's Securities and Exchange Commission filings.
LITTELFUSE, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
For the Three Months Ended For the Twelve Months Ended
-------------------------- ---------------------------
Jan. 1, 2000 Jan. 2, 1999 Jan. 1, 2000 Jan. 2, 1999
------------ ------------ ------------ ------------
Net sales $ 82,009 $ 62,058 $ 296,367 $ 269,540
Cost of sales 47,911 40,688 179,112 169,341
--------- --------- --------- ---------
Gross profit 34,098 21,370 117,255 100,199
Selling,general and
administrative
expenses 16,640 11,814 56,098 50,936
Research and
development
expenses 2,432 1,998 9,455 8,387
Amortization of
intangibles 1,864 1,668 7,078 6,780
--------- --------- --------- ---------
Operating income 13,162 5,890 44,624 34,096
Interest expense 1,228 1,355 5,253 3,989
Other (income)/
expense (328) (447) (1,306) 98
--------- --------- --------- ---------
Income before
income taxes. 12,262 4,982 40,677 30,009
Income taxes 4,658 1,843 15,457 10,124
Net income $ 7,604 $ 3,139 $ 25,220 $ 19,885
========= ========= ========= =========
Net income per
share:
Basic $ 0.39 $ 0.16 $ 1.29 $ 0.97
========= ========= ========= =========
Diluted $ 0.35 $ 0.14 $ 1.16 $ 0.86
========= ========= ========= =========
Weighted average
shares and
equivalent shares
outstanding:
Basic $ 19,518 $ 20,186 $ 19,572 $ 20,474
========= ========= ========= =========
Diluted $ 21,767 $ 22,499 $ 21,751 $ 23,154
========= ========= ========= =========
LITTELFUSE, INC.
Condensed Consolidated Statements of Financial Condition
(in thousands, unaudited)
January 1, 2000 January 2, 1999
Assets:
Cash and cash equivalents $ 1,888 $ 27,961
Receivables 59,583 41,382
Inventories 48,916 36,209
Other current assets 8,848 5,546
---------- ----------
Total current assets $ 119,235 $ 111,098
Property, plant, and equipment, net 91,791 77,788
Reorganization value, net 33,943 37,814
Other intangible assets, net 29,570 22,149
Other assets 1,257 1,695
---------- ----------
$ 275,796 $ 250,544
========== ==========
Liabilities and Shareholders' Equity:
Current liabilities excluding
current portion of
long-term debt $ 59,254 $ 36,452
Current portion of long-term debt 14,167 15,515
---------- ----------
Total current liabilities 73,421 51,967
Long-term debt 62,267 70,061
Deferred liabilities 2,575 3,951
Other long-term liabilities 501 41
Shareholders' equity 137,032 124,524
---------- ----------
$ 275,796 $ 250,544
========== ==========
LITTELFUSE, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
For the For the
Three Months Ended Twelve Months Ended
------------------ -------------------
Jan. 1, Jan. 2, Jan. 1, Jan. 2,
2000 1999 2000 1999
------ ------ ------ ------
Operating activities:
Net income $ 7,604 $ 3,138 $ 25,220 $ 19,885
Adjustments to reconcile net
income to net cash
provided by operating
activities:
Depreciation 5,449 4,909 18,461 15,426
Amortization 1,864 1,668 7,078 6,780
Changes in operating
assets and liabilities:
Accounts receivable 1,319 6,276 (14,069) (3,218)
Inventories (5,333) (183) (8,850) 3,610
Accounts payable and
accrued expenses 8,516 (4,557) 14,915 (4,992)
Other, net (2,201) 1,867 (3,904) 1,813
-------- -------- --------- ---------
Net cash provided by
operating activities $ 17,218 $ 13,118 $ 38,851 $ 39,304
Cash used in investing
activities:
Purchases of property,
plant and equipment,
net (3,471) (5,971) (19,975) (21,320)
Purchase of business,
net (24,754) (2,751) (24,754) (2,751)
Other (56) (249) (56) (249)
-------- -------- --------- ---------
(28,281) (8,971) (44,785 (24,320)
Cash provided by (used in)
financing activities:
Borrowings/(Payments)
of long-term
debt, net 5,904 2,079 (9,132) 33,851
Proceeds from exercise
of stock options
and warrants 438 779 1,645 6,308
Purchase of common
stock and warrants (2,357) (8,453) (12,833) (26,803)
-------- -------- --------- ---------
3,985 (5,595) (20,320) 13,356
Effect of exchange rate
changes on cash 378 (415) 181 (1,134)
-------- -------- --------- ---------
Increase/(decrease) in cash
and cash equivalents (6,700) (1,863) (26,073) 27,206
Cash and cash equivalents at
beginning of period 8,588 29,824 27,961 755
-------- -------- --------- ---------
Cash and cash equivalents
at end of period $ 1,888 $ 27,961 $ 1,888 $ 27,961
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