Littelfuse Reports Record First Quarter Results
20 April 2000
Littelfuse Reports Record First Quarter Results
DES PLAINES, Ill.--April 20, 2000--Littelfuse, Inc. (NASDAQ/NMS:LFUS) today reported record sales and earnings for the first quarter of 2000.Sales for the first quarter of 2000 were $95.3 million, a 38% increase from sales of $69.0 million for the first quarter of 1999. Net income rose 103% in the first quarter of 2000 to $10.2 million, compared to net income of $5.0 million for the same period in the prior year. Diluted earnings per share rose approximately 100% to $0.46 in the first quarter of 2000, from $0.23 per share for the comparable prior period.
"The fast-paced growth of our electronics business was the driving force behind our strong first quarter performance. The worldwide demand for electronic products continues to increase with growth in the telecom, datacom and wireless markets, driven in part by the rapid expansion of the Internet. As the leading provider of circuit protection devices, Littelfuse is benefiting from the growth of these markets," said Howard B. Witt, Chairman, President and Chief Executive Officer.
"The increased demand for electronic products, combined with sales from the line of overvoltage suppression products acquired in the fourth quarter of 1999, boosted electronic sales to 60% of total Littelfuse sales for the quarter, compared to 48% for the year-ago quarter," said Witt.
For the first quarter of 2000, worldwide sales of electronic products increased 72%, automotive sales increased 5% and power fuse sales increased 11%. Excluding sales of suppression products, electronic product sales increased 40%, automotive sales were flat and power fuse sales increased 11%. U.S. automotive sales, excluding suppression products, increased 9%, offset by a 17% decline in Europe, more than half of which was currency related. Overall, sales for the quarter increased 45% in the Americas, 27% in Europe and 31% in Asia.
Operating income increased 90% in the first quarter of 2000 to $17.2 million and the operating margin increased 4.9 percentage points to 18.0% of sales. "The higher operating margin was due to increased unit volumes, an improved pricing environment and continued cost reductions," said Phil Franklin, Vice President, Treasurer and Chief Financial Officer.
"All indicators point toward strong worldwide electronics demand through at least the remainder of the year. The continuing expansion of these markets provides excellent future growth opportunities for Littelfuse," Witt said.
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 Livonia, 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
--------------------------
Apr. 1, 2000 Apr. 3, 1999
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Net sales $95,319 $68,971
Cost of sales 56,090 43,184
------------- --------------
Gross profit 39,229 25,787
Selling, general and
administrative expenses 17,772 12,596
Research and development expenses 2,531 2,387
Amortization of intangibles 1,725 1,742
------------- --------------
Operating income 17,201 9,062
Interest expense 1,225 1,342
Other (income)/ expense (234) (382)
Income before income taxes 16,210 8,102
Income taxes 5,997 3,079
Net income $10,213 $ 5,023
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Net income per share:
Basic $ 0.52 $ 0.25
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Diluted $ 0.46 $ 0.23
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Weighted average shares and
equivalent shares outstanding:
Basic 19,531 19,806
============= ==============
Diluted 22,000 21,913
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LITTELFUSE, INC.
Condensed Consolidated Statements of Financial Condition
(in thousands, unaudited)
April 1, 2000 January 1, 2000
-------------- ---------------
Assets:
Cash and cash equivalents $ 3,440 $ 1,888
Receivables 66,260 59,583
Inventories 55,553 48,916
Other current assets 11,387 8,750
-------------- ---------------
Total current assets $136,640 $119,137
Property, plant, and equipment, net 90,394 91,791
Reorganization value, net 33,236 33,943
Other intangible assets, net 28,766 29,570
Other assets 1,267 1,257
-------------- ---------------
290,303 $275,698
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Liabilities and Shareholders' Equity:
Current liabilities
excluding current portion of
long-term debt $ 59,327 $ 57,241
Current portion of long-term debt 23,085 20,974
-------------- ---------------
Total current liabilities 82,412 78,215
Long-term debt 54,977 55,460
Deferred liabilities 4,490 4,490
Other long-term liabilities 1,182 501
Shareholders' equity 147,242 137,032
-------------- ---------------
$290,303 $275,698
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LITTELFUSE, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
For the Three Months Ended
----------------------------------
Apr. 1, 2000 Apr. 3, 1999
--------------- ---------------
Operating activities:
Net income $ 10,213 $ 5,023
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation 4,962 4,268
Amortization 1,725 1,742
Changes in operating assets
and liabilities:
Accounts receivable (6,931) (6,409)
Inventories (6,712) (682)
Accounts payable and accrued
expenses 2,119 1,398
Other, net (2,609) (836)
--------------- ---------------
Net cash provided by operating
activities $ 2,767 $ 4,504
Cash used in investing activities:
Purchases of property, plant and
equipment, net (3,836) (5,003)
--------------- ---------------
(3,836) (5,003)
Cash provided by (used in) financing
activities:
Borrowings/(Payments) of long-term
debt,
net 2,173 (121)
Proceeds from exercise of stock
options and warrants 806 68
Purchase of common stock and
warrants (108) (9,833)
--------------- ---------------
2,871 (9,886)
Effect of exchange rate changes on cash (251) (130)
--------------- ---------------
Increase/(decrease) in cash and cash
equivalents 1,551 (10,515)
Cash and cash equivalents at beginning
of period 1,889 27,961
--------------- ---------------
Cash and cash equivalents at end of
period $ 3,440 $17,446
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