Consistent Execution Drives Fourth Quarter
Results In-line with Prior Guidance
Littelfuse, Inc. (NASDAQ: LFUS), a diversified, industrial
technology manufacturing company empowering a sustainable,
connected, and safer world, today reported financial results for
the fourth quarter and full year ended December 28, 2024:
Fourth Quarter 2024 Results
- Net sales of $530 million were down 1% versus the prior year
period and flat organically
- GAAP diluted loss per share was $1.57, which includes $93m in
non-cash goodwill and intangible impairment charges
- Adjusted diluted EPS was $2.04
- Cash flow from operations was $161 million and free cash flow
was $135 million
Full Year 2024 Results
- Net sales of $2.2 billion were down 7% versus the prior year
period and organically
- GAAP diluted EPS was $4.51 adjusted diluted EPS was $8.48
- Cash flow from operations was $368 million and free cash flow
was $292 million
“Our fourth quarter performance, which was in-line with our
expectations, reflects ongoing operational execution and our
steadfast commitment to our diverse and global customer base,” said
Dave Heinzmann, Littelfuse President and Chief Executive Officer.
“For the full year 2024, we delivered strong cash conversion while
our focused profitability enhancements drove solid second half
margin expansion amid difficult end market conditions. Our
continued design win momentum, meaningful content opportunities,
broad end market exposures and operational improvements position us
well as we expect to deliver solid earnings expansion in 2025.”
First Quarter of 2025*
Based on current market conditions, for the first quarter the
company expects,
- Net sales in the range of $520 - $550 million, adjusted diluted
EPS in the range of $1.70 - $1.90 and an adjusted effective tax
rate of approximately 26%
*Littelfuse provides guidance on a non-GAAP (adjusted) basis.
GAAP items excluded from guidance may include the after-tax impact
of items including acquisition and integration costs,
restructuring, impairment and other charges, certain purchase
accounting adjustments, non-operating foreign exchange adjustments
and significant and unusual items. These items are uncertain,
depend on various factors, and could be material to results
computed in accordance with GAAP. Littelfuse is not able to
forecast the excluded items in order to provide the most directly
comparable GAAP financial measure without unreasonable efforts.
Dividend
- The company will pay a cash dividend on its common stock of
$0.70 per share on March 6, 2025, to shareholders of record as of
February 20, 2025
Conference Call and Webcast
Information
Littelfuse will host a conference call on Wednesday, January 29,
2025, at 9:00 a.m. Central Time to discuss the results. The call
will be broadcast and available for replay at Littelfuse.com. A
slide presentation is available in the Investor Relations section
of the company’s website at Littelfuse.com.
About Littelfuse
Littelfuse, Inc. (NASDAQ: LFUS) is a diversified, industrial
technology manufacturing company empowering a sustainable,
connected, and safer world. Across more than 20 countries, and with
approximately 16,000 global associates, we partner with customers
to design and deliver innovative, reliable solutions. Serving over
100,000 end customers, our products are found in a variety of
industrial, transportation and electronics end markets –
everywhere, every day. Learn more at Littelfuse.com.
“Safe Harbor” Statement under the
Private Securities Litigation Reform Act of 1995
The statements in this press release that are not historical
facts are intended to constitute "forward-looking statements"
entitled to the safe-harbor provisions of the Private Securities
Litigation Reform Act. Such statements are based on Littelfuse,
Inc.’s (“Littelfuse” or the “Company”) current expectations and are
subject to a number of factors and uncertainties, which could cause
actual results to differ materially from those described in the
forward-looking statements. These risks, uncertainties and other
factors include, but are not limited to, risks and uncertainties
relating to general economic conditions; product demand and market
acceptance; the impact of competitive products and pricing; product
quality problems or product recalls; capacity and supply
difficulties or constraints; coal mining exposures reserves;
cybersecurity matters; failure of an indemnification for
environmental liability; exchange rate fluctuations; commodity and
other raw material price fluctuations; the effect of Littelfuse
accounting policies; labor disputes and shortages; restructuring
costs in excess of expectations; pension plan asset returns less
than assumed; integration of acquisitions; uncertainties related to
political or regulatory changes; limited realization of the
expected benefits from investment and strategic plans; and other
risks which may be detailed in the company's Securities and
Exchange Commission filings. Should one or more of these risks or
uncertainties materialize or should the underlying assumptions
prove incorrect, actual results and outcomes may differ materially
from those indicated or implied in the forward-looking statements.
This release should be read in conjunction with information
provided in the financial statements appearing in the company's
Annual Report on Form 10-K for the year ended December 30,
2023.
Further discussion of the risk factors of the company can be
found under the caption "Risk Factors" in the company's Annual
Report on Form 10-K for the year ended December 30, 2023, and in
other filings and submissions with the SEC, each of which are
available free of charge on the company’s investor relations
website at investor.littelfuse.com and on the SEC’s website at
www.sec.gov. These forward-looking statements are made as of the
date hereof. The company does not undertake any obligation to
update, amend or clarify these forward-looking statements to
reflect events or circumstances after the date hereof or to reflect
the availability of new information.
Non-GAAP Financial
Measures
The information included in this press release includes the
non-GAAP financial measures of organic net sales (decline) growth,
adjusted operating income, adjusted operating margin, adjusted
EBITDA, adjusted EBITDA margin, adjusted diluted earnings per
share, adjusted income taxes, adjusted effective tax rate, free
cash flow, net debt, consolidated EBITDA, and consolidated net
leverage ratio (as defined in the credit agreement). Many of these
non-GAAP financial measures exclude the effect of certain expenses
and income not related directly to the underlying performance of
our fundamental business operations. A reconciliation of these
non-GAAP financial measures to the most directly comparable GAAP
financial measures is set forth in the attached schedules. The
company believes that organic net sales (decline) growth, adjusted
operating income, adjusted operating margin, adjusted EBITDA,
adjusted EBITDA margin, adjusted diluted earnings per share,
adjusted income taxes, and adjusted effective tax rate provide
useful information to investors regarding its operational
performance because they enhance an investor’s overall
understanding of our core financial performance and facilitate
comparisons to historical results of operations, by excluding items
that are not related directly to the underlying performance of our
fundamental business operations or were not part of our business
operations during a comparable period. The company believes that
free cash flow is a useful measure of its ability to generate cash.
The company believes that net debt, consolidated EBITDA, and
consolidated net leverage ratio are useful measures of its credit
position. The company believes that all of these non-GAAP financial
measures are commonly used by financial analysts and others in the
industries in which we operate, and thus further provide useful
information to investors. Management additionally uses these
measures when assessing the performance of the business and for
business planning purposes. Note that our definitions of these
non-GAAP financial measures may differ from those terms as defined
or used by other companies.
LFUS-F
LITTELFUSE, INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands)
December 28, 2024
December 30, 2023
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
724,924
$
555,513
Short-term investments
976
235
Trade receivables, less allowances of
$69,990 and $84,696, respectively
294,371
287,018
Inventories
429,754
474,607
Prepaid income taxes and income taxes
receivable
11,749
8,701
Prepaid expenses and other current
assets
105,659
82,526
Total current assets
1,567,433
1,408,600
Net property, plant, and equipment
477,068
493,153
Intangible assets, net of amortization
482,118
606,136
Goodwill
1,228,502
1,309,998
Investments
23,245
24,821
Deferred income taxes
4,899
10,486
Right of use lease assets
72,211
62,370
Other long-term assets
48,168
79,711
Total assets
$
3,903,644
$
3,995,275
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
188,359
$
173,535
Accrued liabilities
148,944
149,214
Accrued income taxes
29,658
38,725
Current portion of long-term debt
67,612
14,020
Total current liabilities
434,573
375,494
Long-term debt, less current portion
788,502
857,915
Deferred income taxes
95,532
110,820
Accrued post-retirement benefits
29,836
34,422
Non-current lease liabilities
60,559
49,472
Other long-term liabilities
68,217
86,671
Total equity
2,426,425
2,480,481
Total liabilities and equity
$
3,903,644
$
3,995,275
LITTELFUSE, INC.
CONSOLIDATED STATEMENTS OF NET
(LOSS) INCOME
(Unaudited)
Three Months Ended
Fiscal Year Ended
(in thousands, except per share
data)
December 28, 2024
December 30, 2023
December 28, 2024
December 30, 2023
Net sales
$
529,505
$
533,807
$
2,190,768
$
2,362,657
Cost of sales
339,186
340,226
1,389,745
1,462,416
Gross profit
190,319
193,581
801,023
900,241
Selling, general, and administrative
expenses
87,694
84,598
351,089
354,655
Research and development expenses
26,490
25,159
107,773
102,429
Amortization of intangibles
14,709
16,021
62,127
65,794
Restructuring, impairment, and other
charges
98,112
3,280
108,441
16,501
Total operating expenses
227,005
129,058
629,430
539,379
Operating (loss) income
(36,686
)
64,523
171,593
360,862
Interest expense
9,359
10,063
38,717
39,866
Foreign exchange (gain) loss
(13,503
)
3,602
(9,230
)
12,299
Other income, net
(2,654
)
(8,091
)
(22,570
)
(19,901
)
(Loss) income before income taxes
(29,888
)
58,949
164,676
328,598
Income taxes
9,085
16,068
51,673
69,113
Net (loss) income
$
(38,973
)
$
42,881
$
113,003
$
259,485
(Loss) income per share:
Basic
$
(1.57
)
$
1.72
$
4.55
$
10.44
Diluted
$
(1.57
)
$
1.71
$
4.51
$
10.34
Weighted-average shares and equivalent
shares outstanding:
Basic
24,818
24,905
24,821
24,854
Diluted
24,818
25,111
25,039
25,102
Comprehensive (loss) income
$
(134,552
)
$
86,590
$
22,459
$
299,432
LITTELFUSE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
Year Ended
(in thousands)
December 28, 2024
December 30, 2023
OPERATING ACTIVITIES
Net income
$
113,003
$
259,485
Adjustments to reconcile net income to net
cash provided by operating activities
245,835
173,776
Changes in operating assets and
liabilities:
Trade receivables
(15,347
)
24,517
Inventories
33,662
82,471
Accounts payable
16,260
(36,277
)
Accrued liabilities and income taxes
(44,200
)
(61,022
)
Prepaid expenses and other assets
18,408
14,437
Net cash provided by operating
activities
367,621
457,387
INVESTING ACTIVITIES
Acquisitions of businesses, net of cash
acquired
—
(198,810
)
Purchases of property, plant, and
equipment
(75,877
)
(86,188
)
Net proceeds from sale of property, plant,
and equipment
10,836
832
Other
(741
)
(151
)
Net cash used in investing activities
(65,782
)
(284,317
)
FINANCING ACTIVITIES
Net payments of credit facility and senior
notes
(7,500
)
(128,802
)
Cash dividends paid
(67,061
)
(62,161
)
Purchases of common stock
(40,862
)
—
All other cash provided by financing
activities
2,987
5,237
Net cash used in financing activities
(112,436
)
(185,726
)
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
(20,089
)
4,840
Increase (decrease) in cash, cash
equivalents, and restricted cash
169,314
(7,816
)
Cash, cash equivalents, and restricted
cash at beginning of period
557,123
564,939
Cash, cash equivalents, and restricted
cash at end of period
$
726,437
$
557,123
LITTELFUSE, INC.
NET SALES AND OPERATING INCOME
BY SEGMENT
(Unaudited)
Fourth Quarter
Year-to-Date
(in thousands)
2024
2023
% (Decline) /
Growth
2024
2023
% (Decline) /
Growth
Net sales
Electronics
$
285,841
$
297,753
(4.0
)%
$
1,186,773
$
1,350,426
(12.1
)%
Transportation
161,723
162,570
(0.5
)%
672,434
678,278
(0.9
)%
Industrial
81,941
73,484
11.5
%
331,561
333,953
(0.7
)%
Total net sales
$
529,505
$
533,807
(0.8
)%
$
2,190,768
$
2,362,657
(7.3
)%
Operating (loss) income
Electronics
$
35,186
$
53,553
(34.3
)%
$
168,045
$
300,581
(44.1
)%
Transportation
14,614
7,619
91.8
%
69,539
33,634
106.8
%
Industrial
13,977
9,350
49.5
%
46,031
54,800
(16.0
)%
Other (a)
(100,463
)
(5,999
)
N.M.
(112,022
)
(28,153
)
N.M.
Total operating (loss) income
$
(36,686
)
$
64,523
(156.9
)%
$
171,593
$
360,862
(52.4
)%
Operating Margin
(6.9
)%
12.1
%
7.8
%
15.3
%
Interest expense
9,359
10,063
38,717
39,866
Foreign exchange (gain) loss
(13,503
)
3,602
(9,230
)
12,299
Other income, net
(2,654
)
(8,091
)
(22,570
)
(19,901
)
(Loss) income before income taxes
$
(29,888
)
$
58,949
(150.7
)%
$
164,676
$
328,598
(49.9
)%
(a) "other" typically includes non-GAAP
adjustments such as acquisition-related and integration costs,
purchase accounting inventory adjustments and restructuring and
impairment charges. (See Supplemental Financial Information for
details.)
N.M. - Not meaningful
Fourth Quarter
Year-to-Date
(in thousands)
2024
2023
% (Decline) /
Growth
2024
2023
% (Decline) /
Growth
Operating Margin
Electronics
12.3
%
18.0
%
(5.7
)%
14.2
%
22.3
%
(8.1
)%
Transportation
9.0
%
4.7
%
4.3
%
10.3
%
5.0
%
5.3
%
Industrial
17.1
%
12.7
%
4.4
%
13.9
%
16.4
%
(2.5
)%
LITTELFUSE, INC.
SUPPLEMENTAL FINANCIAL
INFORMATION
(In millions of USD except per
share amounts - unaudited)
Non-GAAP EPS reconciliation
Q4-24
Q4-23
YTD-24
YTD-23
GAAP diluted EPS
$
(1.57
)
$
1.71
$
4.51
$
10.34
EPS impact of Non-GAAP adjustments
(below)
3.61
0.31
3.97
1.40
Adjusted diluted EPS
$
2.04
$
2.02
$
8.48
$
11.74
Non-GAAP adjustments - (income) /
expense
Q4-24
Q4-23
YTD-24
YTD-23
Acquisition-related and integration costs
(a)
$
2.3
$
2.7
$
5.1
$
11.7
Restructuring, impairment and other
charges (b)
98.1
3.3
108.4
16.5
Gain on sale of fixed assets (c)
—
—
(1.5
)
—
Non-GAAP adjustments to operating
income
100.4
6.0
112.0
28.2
Other expense (income), net (d)
1.6
—
1.3
(0.2
)
Non-operating foreign exchange (gain)
loss
(13.5
)
3.6
(9.2
)
12.3
Non-GAAP adjustments to income before
income taxes
88.5
9.6
104.1
40.3
Income taxes (e)
(1.5
)
1.8
4.7
5.0
Non-GAAP adjustments to net income
$
90.0
$
7.8
$
99.4
$
35.3
Total EPS impact
$
3.61
$
0.31
$
3.97
$
1.40
Adjusted operating margin / Adjusted
EBITDA reconciliation
Q4-24
Q4-23
YTD-24
YTD-23
Net (loss) income
$
(39.0
)
$
42.9
$
113.0
$
259.5
Add:
Income taxes
9.1
16.1
51.7
69.1
Interest expense
9.4
10.1
38.7
39.9
Foreign exchange (gain) loss
(13.5
)
3.6
(9.2
)
12.3
Other income, net
(2.7
)
(8.1
)
(22.6
)
(19.9
)
GAAP operating (loss) income
$
(36.7
)
$
64.5
$
171.6
$
360.9
Non-GAAP adjustments to operating (loss)
income
100.4
6.0
112.0
28.2
Adjusted operating income
$
63.8
$
70.5
$
283.6
$
389.0
Amortization of intangibles
14.7
16.0
62.1
65.8
Depreciation expenses
17.3
18.1
68.3
71.6
Adjusted EBITDA
$
95.8
$
104.6
$
414.1
$
526.4
Net sales
$
529.5
$
533.8
$
2,190.8
$
2,362.7
Net (loss) income as a percentage of net
sales
(7.4
)%
8.0
%
5.2
%
11.0
%
Operating margin
(6.9
)%
12.1
%
7.8
%
15.3
%
Adjusted operating margin
12.0
%
13.2
%
12.9
%
16.5
%
Adjusted EBITDA margin
18.1
%
19.6
%
18.9
%
22.3
%
Adjusted EBITDA by Segment
Q4-24
Q4-23
Electronics
Transportation
Industrial
Electronics
Transportation
Industrial
GAAP operating income
$
35.2
$
14.6
$
14.0
$
53.6
$
7.6
$
9.4
Add:
Add back amortization
9.8
3.4
1.5
9.8
3.6
2.6
Add back depreciation
10.4
5.4
1.5
10.3
6.4
1.4
Adjusted EBITDA
$
55.3
$
23.4
$
17.0
$
73.7
$
17.6
$
13.4
Adjusted EBITDA Margin
19.3
%
14.5
%
20.8
%
24.7
%
10.8
%
18.2
%
Adjusted EBITDA by Segment
YTD-24
YTD-23
Electronics
Transportation
Industrial
Electronics
Transportation
Industrial
GAAP operating income
$
168.0
$
69.5
$
46.0
$
300.6
$
33.6
$
54.8
Add:
Add back amortization
39.4
13.5
9.2
39.9
15.8
10.1
Add back depreciation
40.4
22.1
5.8
39.5
26.7
5.4
Adjusted EBITDA
$
247.9
$
105.2
$
61.0
$
379.9
$
76.1
$
70.4
Adjusted EBITDA Margin
20.9
%
15.6
%
18.4
%
28.1
%
11.2
%
21.1
%
Net sales reconciliation
Q4-24 vs. Q4-23
Electronics
Transportation
Industrial
Total
Net sales (decline) growth
(4
)%
(1
)%
12
%
(1
)%
Less:
FX impact
—
%
—
%
—
%
—
%
Organic net sales (decline) growth
(4
)%
(1
)%
12
%
—
%
Net sales reconciliation
YTD-24 vs. YTD-23
Electronics
Transportation
Industrial
Total
Net sales decline
(12
)%
(1
)%
(1
)%
(7
)%
Less:
FX impact
—
%
—
%
—
%
—
%
Organic net sales decline
(12
)%
(1
)%
(1
)%
(7
)%
Income tax reconciliation
Q4-24
Q4-23
YTD-24
YTD-23
Income taxes
$
9.1
$
16.1
$
51.7
$
69.1
Effective rate
(30.4
)%
27.3
%
31.4
%
21.0
%
Non-GAAP adjustments - income taxes
(1.5
)
1.8
4.7
5.0
Adjusted income taxes
$
7.6
$
17.9
$
56.4
$
74.1
Adjusted effective rate
12.9
%
26.1
%
21.0
%
20.1
%
Free cash flow reconciliation
Q4-24
Q4-23
YTD-24
YTD-23
Net cash provided by operating
activities
$
160.6
$
144.2
$
367.6
$
457.4
Less: Purchases of property, plant and
equipment
(25.8
)
(23.0
)
(75.9
)
(86.2
)
Free cash flow
$
134.8
$
121.2
$
291.7
$
371.2
Consolidated Total Debt
As of December 28,
2024
Consolidated Total Debt
$
856.1
Unamortized debt issuance costs
2.8
Finance lease liability
0.3
Consolidated funded indebtedness
$
859.2
Cash held in U.S. (up to $400 million)
302.2
Net debt
$
557.0
Consolidated EBITDA
Twelve Months Ended December
28, 2024
Net Income
$
112.8
Interest expense
38.7
Income taxes
51.7
Depreciation
68.3
Amortization
62.1
Non-cash additions:
Stock-based compensation expense
26.0
Unrealized loss on investments
(0.1
)
Impairment charges
93.5
Other
3.7
Consolidated EBITDA (1)
$
456.7
Consolidated Net Leverage Ratio (as
defined in the Credit Agreement) *
1.2
x
* Our Credit Agreement and Private
Placement Note with maturities ranging from 2024 to 2032, contain
financial ratio covenants providing that if, as of the last day of
each fiscal quarter, the Consolidated Net Leverage ratio at such
time for the then most recently concluded period of four
consecutive fiscal quarters of the Company exceeds 3.50:1.00, an
Event of Default (as defined in the Credit Agreement and Private
Placement Senior Notes) is triggered.
The Credit Agreement and Private Placement
Senior Notes were amended in Q2 2022 and now allow for the addition
of acquisition and integration costs up to 15% of Consolidated
EBITDA and the netting of up to $400M of Available Cash (Cash held
by US Subsidiaries).
(1) Represents Consolidated EBITDA as
defined in our Credit Agreement and Private Placement Senior Notes
and is calculated using the most recently concluded period of four
consecutive quarters.
Note: Total will not always foot due to
rounding.
(a) reflected in selling, general and
administrative expenses ("SG&A").
(b) reflected in restructuring, impairment
and other charges. In the fourth quarter 2024, the Company recorded
$92.6 million of non-cash impairment charges, which included $47.8
million for the impairment of intangible assets primarily related
to certain acquired customer relationships, developed technology,
and tradename in the Industrial controls and sensors reporting unit
within the Industrial segment, and $36.1 million and $8.6 million
non-cash goodwill impairment charge associated with the Industrial
controls and sensors reporting unit within the Industrial segment
and the Automotive sensors reporting unit within the Transportation
segment, respectively. In addition, during the first quarter of
2024, the Company recognized a $0.9 million impairment related to
certain machinery and equipment in the commercial vehicle business
within the Transportation segment.
(c) 2024 amount reflected a gain of $0.5
million recorded for the sale of a land use right within the
Electronics segment and a gain of $1.0 million for the sale of two
buildings within the Transportation segment.
(d) 2024 included $1.8 million increase in
coal mining reserves, partially offset by a reversal of $0.5
million for an asset retirement obligation charge related the
disposal of a business in 2019. 2023 amount included $0.2 million
gain from the sale of a building within the Electronics
segment.
(e) reflected the tax impact associated
with the non-GAAP adjustments.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250128555280/en/
David Kelley 224-727-2535 dkelley@littelfuse.com
Littelfuse (NASDAQ:LFUS)
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From Dec 2024 to Jan 2025
Littelfuse (NASDAQ:LFUS)
Historical Stock Chart
From Jan 2024 to Jan 2025
