Electronics Growth Drives Record Littelfuse Second Quarter Results
20 July 2000
Electronics Growth Drives Record Littelfuse Second Quarter Results
DES PLAINES, Ill. - Littelfuse, Inc. today reported record sales and earnings for the second quarter of 2000.Sales for the second quarter of 2000 were $97.4 million, a 35% increase from sales of $72.1 million for the second quarter of 1999. Net income rose 77% in the second quarter of 2000 to $10.6 million, compared to net income of $6.0 million for the same period in the prior year. Diluted earnings per share rose 71% to $0.48 in the second quarter of 2000, from $0.28 per share for the comparable prior period.
For the first half of 2000, sales were $192.7 million, a 37% increase from sales of $141.1 million for the same period in 1999. Net income was up 89% to $20.9 million in the first six months of 2000, from net income of $11.0 million in the comparable prior period. Diluted earnings per share were $0.94 for the first half of 2000, an 85% increase from earnings of $0.51 per share for the first six months of 1999.
"Our strong electronics business continues to drive the overall performance of the company. Broad-based demand for electronic products, especially for communications and wireless applications, is generating record sales and earnings performance for Littelfuse," said Howard B. Witt, Chairman, President and Chief Executive Officer.
For the second quarter of 2000, worldwide sales of electronic products increased 73%, automotive sales increased 3% and power fuse sales decreased 10%. Excluding sales of suppression products (acquired in October 1999), electronic product sales increased 47%, automotive sales decreased 1% and power fuse sales decreased 10%. Higher automotive OEM sales in the U.S. were partially offset by lower automotive aftermarket sales and the effects of currency translation in Europe. Geographically, sales for the second quarter increased 29% in the Americas, 44% in Europe and 44% in Asia.
Operating income increased 54% in the second quarter of 2000 to $16.7 million and the operating margin increased 2.1 percentage points to 17.2% of sales. "We continue to benefit from higher unit volumes and our ongoing cost reduction activities," said Phil Franklin, Vice President, Treasurer and Chief Financial Officer. Franklin said that second quarter net income also benefited from one-time other income consisting of $0.7 million in foreign currency gains and a $0.6 million gain on the sale of a non-circuit protection product line, both on a pre-tax basis.
"Looking ahead, we continue to see strong electronic demand through the end of this year and into 2001. As part of our ongoing commitment to new product development, we are working on new surface mount circuit protection products that we anticipate will enhance sales growth in 2001," Witt said.
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 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, Taiwan, Japan, Brazil and Livonia, Michigan.
LITTELFUSE, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
For the Three Months Ended For the Six Months Ended
-------------------------- ------------------------
July 1, 2000 July 3, 1999 July 1, 2000 July 3, 1999
------------ ------------ ------------ -----------
Net sales $ 97,356 $ 72,094 $ 192,676 $ 141,065
Cost of sales 58,006 44,041 114,097 87,225
------------ ------------ ------------ -----------
Gross profit 39,350 28,053 78,579 53,840
Selling, general
and administrative
expenses 17,921 12,949 35,693 25,545
Research and
development
expenses 2,876 2,499 5,407 4,886
Amortization of
intangibles 1,823 1,743 3,548 3,484
------------ ------------ ------------ -----------
Operating income 16,730 10,862 33,931 19,925
Interest expense 1,199 1,353 2,424 2,695
Other (income)/
expense (1,368) (176) (1,602) (557)
------------ ------------ ------------ -----------
Income before
income taxes 16,899 9,685 33,109 17,787
Income taxes 6,252 3,680 12,249 6,759
Net income $ 10,647 $ 6,005 $ 20,860 $ 11,028
============ ============ ============ ===========
Net income per share:
Basic $ 0.54 $ 0.31 $ 1.06 $ 0.56
============ ============ ============ ===========
Diluted $ 0.48 $ 0.28 $ 0.94 $ 0.51
============ ============ ============ ===========
Weighted average
shares and equivalent
shares outstanding:
Basic 19,874 19,461 19,702 19,633
============ ============ ============ ===========
Diluted 22,381 21,625 22,217 21,777
============ ============ ============ ===========
LITTELFUSE, INC.
Condensed Consolidated Statements of Financial Condition
(in thousands, unaudited)
July 1, 2000 January 1, 2000
------------ ---------------
Assets:
Cash and cash
equivalents $ 10,824 $ 1,888
Receivables 67,397 59,583
Inventories 58,635 48,916
Other current
assets 10,923 8,750
------------ ---------------
Total current
assets $ 147,779 $ 119,137
Property, plant, and
equipment, net 89,606 91,791
Reorganization
value, net 32,485 33,943
Other intangible
assets, net 27,690 29,570
Other assets 581 1,257
-------------- -----------------
$ 298,141 $ 275,698
============== =================
Liabilities and Shareholders' Equity:
Current liabilities
excluding current
portion of long-term
debt $ 59,633 $ 57,241
Current portion
of long-term debt 17,831 20,974
-------------- -----------------
Total current
liabilities 77,464 78,215
Long-term debt 55,287 55,460
Deferred
liabilities 4,490 4,490
Other long-term
liabilities 830 501
Shareholders'
equity 160,070 137,032
-------------- -----------------
Shares issued and
outstanding:
20,113,496
$ 298,141 $ 275,698
============== =================
LITTELFUSE, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
For the Three Months Ended For the Six Months Ended
July 1, 2000 July 3, 1999 July 1, 2000 July 3, 1999
Operating activities:
Net income $ 10,647 $ 6,005 $ 20,860 $ 11,028
Adjustments to
reconcile net
income to net
cash provided by
operating activities:
Depreciation 4,902 4,060 9,864 8,328
Amortization 1,823 1,742 3,548 3,484
Changes in
operating assets
and liabilities:
Accounts
receivable (1,468) (3,232) (8,399) (9,641)
Inventories (2,783) (408) (9,494) (1,090)
Accounts payable
and accrued
expenses (9) 2,852 2,109 4,250
Other, net 1,301 602 (1,308) (234)
------------ ------------ ------------ -----------
Net cash provided
by operating
activities $ 14,413 $ 11,621 $ 17,180 $ 16,125
Cash used in
investing activities:
Purchases of
property, plant,
and equipment,
net (4,223) (6,428) (8,059) (11,431)
------------ ------------ ------------ -----------
Net cash provided by
(used in)
investing
activities (4,223) (6,428) (8,059) (11,431)
Cash provided by
(used in) financing
activities:
Payments of
long-term
debt, net (4,914) (355) (2,741) (476)
Proceeds from
exercise of
stock
options and
warrants 2,743 46 3,549 114
Purchase of
common stock
and warrants 0 (643) (108) (10,476)
------------ ------------ ------------ -----------
Net cash provided
by (used in)
financing
activities (2,171) (952) 700 (10,838)
Effect of exchange
rate changes
on cash (636) 151 (886) 21
------------ ------------ ------------ -----------
Increase/(decrease)
in cash and cash
equivalents 7,383 4,392 8,935 (6,123)
Cash and cash
equivalents
at beginning
of period 3,441 17,446 1,889 27,961
------------ ------------ ------------ -----------
Cash and cash
equivalents
at end of
period $ 10,824 $ 21,838 $ 10,824 $ 21,838
============ ============ ============ ===========