Bel Fuse Inc. (Nasdaq: BELFA and BELFB) today
announced preliminary financial results for the second quarter of
2022.
Second Quarter 2022
Highlights
• |
Net sales of $170.6 million, up 22.9% from Q2-21 |
• |
Gross profit margin of 26.6%, up from 24.7% in Q2-21 |
• |
Net earnings of
$17.0 million versus $7.9 million in Q2-21 |
• |
Adjusted EBITDA of $19.1
million, representing a 65% increase compared to Q2-21 |
• |
Record quarterly bookings of
$226 million led to quarter-end backlog of orders of $580 million,
an increase in backlog of 24% from December 31, 2021 |
“The second quarter was record breaking in many
ways, marking the highest Net Sales and Adjusted EBITDA in Bel’s
history. Bookings and backlog also set an all-time high in the
second quarter, both in terms of dollar level of orders received
and margin profile of those orders. Commercial aerospace continued
to rebound with sales of $7.8 million for the quarter, an increase
of 43% from last year's second quarter. The e-Mobility end
market saw 89% growth in Q2 year-over-year, resulting in sales of
$6.7 million for the second quarter of 2022. Our team is crucial to
driving this performance by embracing our strategic plan and I very
much appreciate their efforts,” stated Dan Bernstein, President and
CEO.
Farouq Tuweiq, CFO, added, “The strategic
initiatives we put in place are translating into unprecedented new
milestones for Bel as we continue with our transformation. Our
focus remains on higher-margin revenue, operational
efficiencies and investing in the future. Talent, technology
and product development are the keys to our future success.
Given our achievements to date and current backlog, we are
confident about Bel’s near and long-term prospects.”
Non-GAAP financial measures, such as Non-GAAP
net earnings, Non-GAAP EPS, EBITDA and Adjusted EBITDA, exclude a
gain on sale of property, restructuring charges
and acquisition-related costs. Please refer to the financial
information included with this press release for reconciliations of
GAAP financial measures to Non-GAAP financial measures and our
explanation of why we present Non-GAAP financial measures.
Conference CallBel has
scheduled a conference call for 8:30 a.m. ET on Thursday, July 28,
2022 to discuss these results. To participate in the
conference call, investors should dial 877-407-0784, or
201-689-8560 if dialing internationally. The presentation will
additionally be broadcast live over the Internet and will be
available at https://ir.belfuse.com/events-and-presentations. The
webcast will be available via replay for a period of 20 days at
this same Internet address. For those unable to access the
live call, a telephone replay will be available at 844-512-2921, or
412-317-6671 if dialing internationally, using access
code 13731321 after 11:30am ET, also for 20 days.
About Bel
Bel (www.belfuse.com) designs, manufactures and
markets a broad array of products that power, protect and connect
electronic circuits. These products are primarily used in the
networking, telecommunications, computing, high-speed data
transmission, military, commercial aerospace,
transportation, and e-Mobility industries. Bel's
portfolio of products also finds application in the automotive,
medical, broadcasting and consumer electronics markets. Bel's
product groups include Magnetic Solutions (integrated connector
modules, power transformers, power inductors and discrete
components), Power Solutions and Protection (front-end, board-mount
and industrial power products, module products and circuit
protection), and Connectivity Solutions (expanded beam fiber optic,
copper-based, RF and RJ connectors and cable assemblies). The
Company operates facilities around the world.
Company Contact:Farouq Tuweiq Chief
Financial Officer ir@belf.com
Investor Contact:Three Part AdvisorsJean Marie
Young, Managing Director or Steven Hooser, Partner631-418-4339
Forward-Looking
StatementsNon-historical information contained in this
press release (including the statements regarding expressions about
management’s confidence and management’s expectations and beliefs
about our business, products, market conditions and financial
position, performance and results; management’s expectations and
beliefs about trends involving bookings, backlog and margin, demand
and sales channels, and ongoing or future performance of particular
business units or product lines; management’s plans, intentions,
objectives and beliefs with respect to strategic initiatives, and
matters of business strategy generally, and the desired effects and
intended results thereof; management’s expectations, intentions and
beliefs about our focus on higher-margin revenue, operational
efficiencies and investing in the future and about our talent,
technology and product development and their role in our
future success; and management’s expectations and beliefs regarding
our near and long-term prospects and financial condition and
performance generally) are forward-looking statements (as described
under the Private Securities Litigation Reform Act of 1995) that
involve risks and uncertainties. Actual results could differ
materially from Bel's projections. Among the factors that could
cause actual results to differ materially from such statements are:
the market concerns facing our customers, and risks for the
Company’s business in the event of the loss of certain substantial
customers; the continuing viability of sectors that rely on our
products; the effects of business and economic conditions; the
impact of public health crises (such as the governmental, social
and economic effects of COVID-19); the effects of rising input
costs, and cost changes generally; difficulties associated with
integrating previously acquired companies; capacity and supply
constraints or difficulties, including supply chain constraints or
other challenges; difficulties associated with the availability of
labor, and the risks of any labor unrest or labor shortages; risks
associated with our international operations, including our
substantial manufacturing operations in China; risks associated
with restructuring programs or other strategic initiatives,
including any difficulties in implementation or realization of the
expected benefits or cost savings; product development,
commercialization or technological difficulties; the regulatory and
trade environment; risks associated with fluctuations in foreign
currency exchange rates and interest rates; uncertainties
associated with legal proceedings; the market's acceptance of the
Company's new products and competitive responses to those new
products; the impact of changes to U.S. legal and regulatory
requirements, including tax laws, trade and tariff policies; and
the risk factors detailed from time to time in the Company's
Securities and Exchange Commission (“SEC”) reports, including in
the “Risk Factors” section of our Annual Report on Form 10-K for
the fiscal year ended December 31, 2021 and in subsequent reports.
In light of the risks and uncertainties impacting our business,
there can be no assurance that any forward-looking statement will
in fact prove to be correct. We undertake no obligation to update
or revise any forward-looking statements.
Non-GAAP Financial Measures
The non-GAAP measures identified in this press
release as well as in the supplementary information to this press
release (Non-GAAP net earnings, Non-GAAP EPS, EBITDA and Adjusted
EBITDA) are not measures of performance under accounting principles
generally accepted in the United States of America
("GAAP"). These measures should not be considered a substitute
for, and the reader should also consider, income from operations,
net earnings, earnings per share and other measures of performance
as defined by GAAP as indicators of our performance or
profitability. Our non-GAAP measures may not be comparable to other
similarly-titled captions of other companies due to differences in
the method of calculation. We present results adjusted to
exclude the effects of certain unusual or special items and their
related tax impact that would otherwise be included under U.S.
GAAP, to aid in comparisons with other periods. We may use
Non-GAAP financial measures to determine performance-based
compensation and management believes that this information may be
useful to investors.
Website InformationWe routinely
post important information for investors on our
website, www.belfuse.com, in the "Investor Relations" section.
We use our website as a means of disclosing material, otherwise
non-public information and for complying with our disclosure
obligations under Regulation FD. Accordingly, investors should
monitor the Investor Relations section of our website, in addition
to following our press releases, SEC filings, public conference
calls, presentations and webcasts. The information contained on, or
that may be accessed through, our website is not incorporated by
reference into, and is not a part of, this document.
Bel Fuse Inc. |
Supplementary Information(1) |
Condensed Consolidated Statements of
Operations |
(in thousands, except per share amounts) |
(unaudited) |
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
170,572 |
|
|
$ |
138,741 |
|
|
$ |
307,290 |
|
|
$ |
249,385 |
|
Cost of sales |
|
|
125,120 |
|
|
|
104,537 |
|
|
|
227,879 |
|
|
|
190,241 |
|
Gross
profit |
|
|
45,452 |
|
|
|
34,204 |
|
|
|
79,411 |
|
|
|
59,144 |
|
As a % of net sales |
|
|
26.6 |
% |
|
|
24.7 |
% |
|
|
25.8 |
% |
|
|
23.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
costs |
|
|
4,661 |
|
|
|
5,464 |
|
|
|
9,505 |
|
|
|
10,384 |
|
Selling, general and
administrative expenses |
|
|
23,965 |
|
|
|
21,828 |
|
|
|
44,992 |
|
|
|
43,569 |
|
As a % of net sales |
|
|
14.0 |
% |
|
|
15.7 |
% |
|
|
14.6 |
% |
|
|
17.5 |
% |
Restructuring charges |
|
|
31 |
|
|
|
277 |
|
|
|
31 |
|
|
|
277 |
|
Gain on sale of property |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(6,175 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations |
|
|
16,795 |
|
|
|
6,635 |
|
|
|
24,883 |
|
|
|
11,089 |
|
As a % of net sales |
|
|
9.8 |
% |
|
|
4.8 |
% |
|
|
8.1 |
% |
|
|
4.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(779 |
) |
|
|
(721 |
) |
|
|
(1,467 |
) |
|
|
(1,523 |
) |
Other income/expense, net |
|
|
(1,724 |
) |
|
|
113 |
|
|
|
(2,496 |
) |
|
|
660 |
|
Earnings before income
taxes |
|
|
14,292 |
|
|
|
6,027 |
|
|
|
20,920 |
|
|
|
10,226 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit from income taxes |
|
|
(2,746 |
) |
|
|
(1,853 |
) |
|
|
(1,182 |
) |
|
|
(854 |
) |
Effective tax rate |
|
|
-19.2 |
% |
|
|
-30.7 |
% |
|
|
-5.7 |
% |
|
|
-8.4 |
% |
Net
earnings |
|
$ |
17,038 |
|
|
$ |
7,880 |
|
|
$ |
22,102 |
|
|
$ |
11,080 |
|
As a % of net sales |
|
|
10.0 |
% |
|
|
5.7 |
% |
|
|
7.2 |
% |
|
|
4.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A common shares - basic
and diluted |
|
|
2,144 |
|
|
|
2,145 |
|
|
|
2,145 |
|
|
|
2,145 |
|
Class B common shares - basic
and diluted |
|
|
10,362 |
|
|
|
10,237 |
|
|
|
10,368 |
|
|
|
10,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A common shares - basic
and diluted |
|
$ |
1.30 |
|
|
$ |
0.61 |
|
|
$ |
1.68 |
|
|
$ |
0.85 |
|
Class B common shares - basic
and diluted |
|
$ |
1.37 |
|
|
$ |
0.64 |
|
|
$ |
1.78 |
|
|
$ |
0.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The supplementary information included in this
press release for 2022 is preliminary and subject to change prior
to the filing of our upcoming Quarterly Report on Form
10-Q with the Securities and Exchange Commission. |
Bel Fuse Inc. |
Supplementary Information(1) |
Condensed Consolidated Balance Sheets |
(in thousands, unaudited) |
|
|
June 30, 2022 |
|
|
December 31, 2021 |
|
Assets |
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
65,830 |
|
|
$ |
61,756 |
|
Accounts receivable, net |
|
|
98,777 |
|
|
|
87,135 |
|
Inventories |
|
|
160,593 |
|
|
|
139,383 |
|
Other current assets |
|
|
35,902 |
|
|
|
40,742 |
|
Total current assets |
|
|
361,102 |
|
|
|
329,016 |
|
Property, plant and equipment,
net |
|
|
36,105 |
|
|
|
38,210 |
|
Right-of-use assets |
|
|
24,234 |
|
|
|
21,252 |
|
Goodwill and other intangible
assets, net |
|
|
81,334 |
|
|
|
87,646 |
|
Other assets |
|
|
39,585 |
|
|
|
35,722 |
|
Total
assets |
|
$ |
542,360 |
|
|
$ |
511,846 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
70,020 |
|
|
$ |
65,960 |
|
Operating lease liability,
current |
|
|
7,251 |
|
|
|
6,880 |
|
Other current liabilities |
|
|
51,479 |
|
|
|
39,172 |
|
Total current liabilities |
|
|
128,750 |
|
|
|
112,012 |
|
Long-term debt |
|
|
112,500 |
|
|
|
112,500 |
|
Operating lease liability,
long-term |
|
|
17,065 |
|
|
|
14,668 |
|
Other liabilities |
|
|
58,050 |
|
|
|
63,923 |
|
Total liabilities |
|
|
316,365 |
|
|
|
303,103 |
|
Stockholders' equity |
|
|
225,995 |
|
|
|
208,743 |
|
Total liabilities and
stockholders' equity |
|
$ |
542,360 |
|
|
$ |
511,846 |
|
|
(1) The
supplementary information included in this press release for 2022
is preliminary and subject to change prior to the filing of our
upcoming Quarterly Report on Form 10-Q with the Securities and
Exchange Commission. |
Bel Fuse Inc. |
Supplementary Information(1) |
Reconciliation of GAAP Net Earnings to EBITDA and Adjusted
EBITDA(2) |
(in thousands, unaudited) |
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
earnings |
|
$ |
17,038 |
|
|
$ |
7,880 |
|
|
$ |
22,102 |
|
|
$ |
11,080 |
|
Interest expense |
|
|
779 |
|
|
|
721 |
|
|
|
1,467 |
|
|
|
1,523 |
|
Benefit from income taxes |
|
|
(2,746 |
) |
|
|
(1,853 |
) |
|
|
(1,182 |
) |
|
|
(854 |
) |
Depreciation and
amortization |
|
|
4,015 |
|
|
|
4,267 |
|
|
|
8,316 |
|
|
|
8,478 |
|
EBITDA |
|
$ |
19,086 |
|
|
$ |
11,015 |
|
|
$ |
30,703 |
|
|
$ |
20,227 |
|
% of net sales |
|
|
11.2 |
% |
|
|
7.9 |
% |
|
|
10.0 |
% |
|
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unusual or special
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of property |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(6,175 |
) |
Restructuring charges |
|
|
31 |
|
|
|
277 |
|
|
|
31 |
|
|
|
277 |
|
Acquisition-related costs |
|
|
- |
|
|
|
317 |
|
|
|
- |
|
|
|
483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
$ |
19,117 |
|
|
$ |
11,609 |
|
|
$ |
30,734 |
|
|
$ |
14,812 |
|
% of net sales |
|
|
11.2 |
% |
|
|
8.4 |
% |
|
|
10.0 |
% |
|
|
5.9 |
% |
|
(1) The
supplementary information included in this press release for 2022
is preliminary and subject to change prior to the filing of our
upcoming Quarterly Report on Form 10-Q with the Securities and
Exchange Commission. |
(2) In this press
release and supplemental information, we have included Non-GAAP
financial measures, including Non-GAAP net earnings, Non-GAAP
EPS, EBITDA and Adjusted EBITDA. We present results adjusted to
exclude the effects of certain specified items and their related
tax impact that would otherwise be included under GAAP, to aid in
comparisons with other periods. We may use Non-GAAP financial
measures to determine performance-based compensation and management
believes that this information may be useful to investors. |
Bel Fuse Inc. |
Supplementary Information(1) |
Reconciliation of GAAP Measures to Non-GAAP
Measures(2) |
(in thousands, except per share amounts) |
(unaudited) |
The following
tables detail the impact of certain unusual or special items had on
the Company's net earnings per common Class A and Class B
basic and diluted shares ("EPS") and the line items in which these
items were included on the condensed consolidated statements of
operations. |
|
|
Three Months Ended June 30, 2022 |
|
|
Three Months Ended June 30, 2021 |
|
Reconciling Items |
|
Earnings before taxes |
|
|
Benefit from income taxes |
|
|
Net earnings |
|
|
Class A EPS(3) |
|
|
Class B EPS(3) |
|
|
Earnings before taxes |
|
|
Benefit from income taxes |
|
|
Net earnings |
|
|
Class A EPS(3) |
|
|
Class B EPS(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
measures |
|
$ |
14,292 |
|
|
$ |
(2,746 |
) |
|
$ |
17,038 |
|
|
$ |
1.30 |
|
|
$ |
1.37 |
|
|
$ |
6,027 |
|
|
$ |
(1,853 |
) |
|
$ |
7,880 |
|
|
$ |
0.61 |
|
|
$ |
0.64 |
|
Items included in SG&A
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
317 |
|
|
|
73 |
|
|
|
244 |
|
|
|
0.02 |
|
|
|
0.02 |
|
Restructuring charges |
|
|
31 |
|
|
|
4 |
|
|
|
27 |
|
|
|
- |
|
|
|
- |
|
|
|
277 |
|
|
|
40 |
|
|
|
237 |
|
|
|
0.02 |
|
|
|
0.02 |
|
Non-GAAP
measures |
|
$ |
14,323 |
|
|
$ |
(2,742 |
) |
|
$ |
17,065 |
|
|
$ |
1.30 |
|
|
$ |
1.38 |
|
|
$ |
6,621 |
|
|
$ |
(1,740 |
) |
|
$ |
8,361 |
|
|
$ |
0.64 |
|
|
$ |
0.68 |
|
|
|
Six Months Ended June 30, 2022 |
|
|
Six Months Ended June 30, 2021 |
|
Reconciling Items |
|
Earnings before taxes |
|
|
Benefit from income taxes |
|
|
Net earnings |
|
|
Class A EPS(3) |
|
|
Class B EPS(3) |
|
|
Earnings before taxes |
|
|
Benefit from income taxes |
|
|
Net earnings |
|
|
Class A EPS(3) |
|
|
Class B EPS(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
measures |
|
$ |
20,920 |
|
|
$ |
(1,182 |
) |
|
$ |
22,102 |
|
|
$ |
1.68 |
|
|
$ |
1.78 |
|
|
$ |
10,226 |
|
|
$ |
(854 |
) |
|
$ |
11,080 |
|
|
$ |
0.85 |
|
|
$ |
0.91 |
|
Items included in SG&A
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
483 |
|
|
|
111 |
|
|
|
372 |
|
|
|
0.03 |
|
|
|
0.03 |
|
Gain on sale of property |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(6,175 |
) |
|
|
- |
|
|
|
(6,175 |
) |
|
|
(0.48 |
) |
|
|
(0.50 |
) |
Restructuring charges |
|
|
31 |
|
|
|
4 |
|
|
|
27 |
|
|
|
- |
|
|
|
- |
|
|
|
277 |
|
|
|
40 |
|
|
|
237 |
|
|
|
0.02 |
|
|
|
0.02 |
|
Non-GAAP
measures |
|
$ |
20,951 |
|
|
$ |
(1,178 |
) |
|
$ |
22,129 |
|
|
$ |
1.69 |
|
|
$ |
1.79 |
|
|
$ |
4,811 |
|
|
$ |
(703 |
) |
|
$ |
5,514 |
|
|
$ |
0.42 |
|
|
$ |
0.45 |
|
|
(1) The
supplementary information included in this press release for 2022
is preliminary and subject to change prior to the filing of our
upcoming Quarterly Report on Form 10-Q with the Securities and
Exchange Commission. |
(2) In this press
release and supplemental information, we have included Non-GAAP
financial measures, including Non-GAAP net earnings, Non-GAAP EPS,
EBITDA and Adjusted EBITDA. We present results adjusted to exclude
the effects of certain specified items and their related tax impact
that would otherwise be included under GAAP, to aid in comparisons
with other periods. We may use Non-GAAP financial measures to
determine performance-based compensation and management believes
that this information may be useful to investors. |
(3) Individual
amounts of earnings per share may not agree to the total due to
rounding. |
Bel Fuse (NASDAQ:BELFB)
Historical Stock Chart
From Apr 2024 to May 2024
Bel Fuse (NASDAQ:BELFB)
Historical Stock Chart
From May 2023 to May 2024