EX-99.1 2 c56182exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(GRAPHIC)
     
NEWS RELEASE
  Littelfuse Inc.
8755 West Higgins Road, Suite 500
Chicago, Illinois 60631
p: (773) 628-1000 f: (773) 628-0802
www.littelfuse.com
CONTACT: Phil Franklin,
Vice President, Operations Support, CFO and Treasurer (773) 628-0810
LITTELFUSE REPORTS FOURTH QUARTER AND FULL YEAR RESULTS
          CHICAGO, February 8, 2010 — Littelfuse, Inc. (NASDAQ:LFUS) today reported sales and earnings for the fourth quarter and full year of 2009.
Fourth Quarter Highlights
  •   Sales for the fourth quarter of 2009 were $127.9 million, a 21% increase compared to the fourth quarter of 2008 and a 10% increase from the third quarter of 2009. As indicated in the company’s third quarter press release, the fourth quarter of 2009 included 14 weeks instead of the normal 13.
  •   Electronics sales increased 19% year over year and 11% sequentially, due to increased demand across all geographies and end markets and replenishment of inventories throughout the supply chain.
 
  •   Automotive sales increased 32% year over year and 11% sequentially, due to strong growth in Asia, continued rebound in Europe and some recovery in the U.S.
 
  •   Electrical sales increased 12% year over year and 2% sequentially, due to increased Startco sales. The base electrical business declined 9% year over year due primarily to weakness in the non-residential construction market.
  •   On a GAAP basis, diluted earnings per share for the fourth quarter of 2009 were $0.53, which was above the company’s latest guidance of $0.49 to $0.52 due primarily to a more favorable tax rate. In the fourth quarter of 2008, the company recorded a loss of $0.42. The sharply improved earnings compared to the prior year were the result of higher sales, a significantly improved cost structure and fewer restructuring charges.
 
  •   Cash provided by operating activities was $28.9 million for the fourth quarter of 2009, due to strong earnings and excellent working capital performance. Accounts receivable days sales outstanding improved to 61 compared to 63 in the third quarter of 2009. Inventory turns increased to 6.0 for the fourth quarter compared to 5.9 for the third quarter.
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  •   Capital expenditures were $2.2 million for the fourth quarter of 2009.
 
  •   At the end of the fourth quarter of 2009, the company had cash net of debt of $7.2 million compared to a net debt position of $20.1 million at the end of the third quarter of 2009.
 
  •   The book-to-bill ratio for electronics for the fourth quarter of 2009 was 1.15.
Full Year Highlights
  •   Sales of $430.1 million for 2009 were down 19% compared to 2008, due to declines in all market segments and all geographies reflecting the global economic downturn compounded by distributor de-stocking.
 
  •   On a GAAP basis, diluted earnings per share were $0.43 for 2009 compared to $0.37 for 2008, as cost reductions and fewer restructuring charges more than offset lower sales volume.
 
  •   Cash provided by operating activities was $29.6 million for 2009 compared to $40.7 million in 2008. Cash flow in 2008 benefited from a sharp sales decline and the resulting working capital liquidation at the end of 2008.
 
  •   Capital expenditures were $15.5 million in 2009 compared to $51.3 million in 2008, as a result of significant 2008 spending on facilities and equipment related to manufacturing transfer programs.
          “We had a remarkably strong finish to an incredibly challenging year,” said Gordon Hunter, Chief Executive Officer. “To finish as we did after starting the year with the worst quarter in the company’s history is a great testament to the Littelfuse team. We not only delivered on all of our cost reduction initiatives, but we were able to ramp-up production to meet the sharp demand increases in the latter part of the year, giving us a delivery advantage over many competitors. Additionally, we had several important design wins that will benefit us in 2010 and beyond.”
          “Our fourth quarter financial performance offers a preview of Littelfuse’s earnings power and cash generating capability as sales continue to recover and manufacturing transfers near completion,” said Phil Franklin, Chief Financial Officer. “With our semiconductor consolidation completing later this year, our target of a 15% pre-tax operating margin is clearly within sight.”
Outlook
  •   Sales for the first quarter of 2010 are expected to be in the range of $130 to $138 million, which would represent 54% to 64% growth over the first quarter of 2009.
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  •   In some areas, costs are expected to be higher than the fourth quarter of 2009, due to higher commodity prices, less favorable exchange rates, and approximately $0.6 million of one-time expenses related to relocation of R&D labs to the company’s new technical center in Urbana-Champaign, Illinois.
 
  •   Earnings for the first quarter of 2010 are expected to be in the range of $0.50 to $0.62 per diluted share, assuming a tax rate of 29%.
 
  •   Capital spending for 2010 is expected to be in the range of $16 to $19 million.
          “With our strong balance sheet, much-improved cost structure, leading market positions and exciting growth opportunities, we are building the foundation for superior financial performance in the years to come,” said Hunter.
Conference Call Webcast Information
          Littelfuse will host a conference call today, Monday, February 8, 2010 at 11:00 a.m. Eastern/10:00 a.m. Central time to discuss the fourth quarter results. The call will be broadcast live over the Internet and can be accessed through the company’s Web site: www.littelfuse.com. Listeners should go to the Web site at least 15 minutes prior to the call to download and install any necessary audio software. The call will be available for replay through March 31, 2010 and can be accessed through the Web site listed above.
About Littelfuse
          As the worldwide leader in circuit protection products and solutions with annual sales of $430.1 million in 2009, the Littelfuse portfolio is backed by industry-leading technical support, design and manufacturing expertise. Littelfuse products are vital components in virtually every product that uses electrical energy, including automobiles, computers, consumer electronics, handheld devices, industrial equipment and telecom/datacom circuits. Littelfuse offers Teccor®, Wickmann® and Pudenz® brand circuit protection products. In addition to its Chicago, Illinois, world headquarters, Littelfuse has sales, distribution, manufacturing and engineering facilities in Brazil, Canada, China, England, Germany, Hong Kong, India, Japan, Korea, Mexico, the Netherlands, the Philippines, Singapore, Taiwan and the U.S.
          For more information, please visit Littelfuse’s Web site at www.littelfuse.com.
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“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 PSLRA. These statements may involve risks and uncertainties, including, but not limited to, risks relating to product demand and market acceptance, economic conditions, the impact of competitive products and pricing, product quality problems or product recalls, capacity and supply difficulties or constraints, coal mining exposures reserves, failure of an indemnification for environmental liability, exchange rate fluctuations, commodity price fluctuations, the effect of the company’s accounting policies, labor disputes, restructuring costs in excess of expectations, pension plan asset returns less than assumed, integration of acquisitions and other risks which may be detailed in the company’s other 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 report 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 27, 2008. For a further discussion of the risk factors of the company, please see Item 1A. “Risk Factors” to the company’s Annual Report on Form 10-K for the year ended December 27, 2008.
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LITTELFUSE, INC.
Net Sales by Business Unit and Geography
(In millions of USD, unaudited)
                                                 
    Fourth Quarter     Year-to-Date  
    2009     2008     %Change     2009     2008     %Change  
 
                                                
Business Unit
                                                
Electronics
   $ 79.2     $ 66.3       19 %   $ 263.0     $ 342.5       (23 %)
Automotive
     30.0       22.8       32 %     98.5       126.9       (22 %)
Electrical*
     18.8       16.8       12 %     68.6       61.5       12 %
 
                                        
 
                                                
Total
   $ 127.9     $ 105.9       21 %   $ 430.1     $ 530.9       (19 %)
 
                                        
                                                 
    Fourth Quarter     Year-to-Date  
    2009     2008     %Change     2009     2008     %Change  
 
                                                
Geography
                                                
Americas*
   $ 49.2     $ 45.0       9 %   $ 166.1     $ 201.8       (18 %)
Europe
     24.3       20.5       19 %     83.4       118.6       (30 %)
Asia-Pacific
     54.5       40.4       35 %     180.6       210.5       (14 %)
 
                                        
 
                                                
Total
   $ 127.9     $ 105.9       21 %   $ 430.1     $ 530.9       (19 %)
 
                                        
 
*   Startco Engineering, acquired at the beginning of the fourth quarter 2008, added $7.1 million and $3.9 million in net sales for the quarter and $23.7 million and $3.9 million in net sales for the fiscal year ended January 2, 2010 and December 27, 2008, respectively, to the Electrical business unit and Americas region.
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LITTELFUSE, INC.
Condensed Consolidated Balance Sheets
(In thousands of USD)
                 
    January 2, 2010     December 27, 2008  
    (Unaudited)          
ASSETS
                
Current assets:
                
Cash and cash equivalents
   $ 70,354     $ 70,937  
Accounts receivable, less allowances
     79,521       62,126  
Inventories
     52,567       66,679  
Deferred income taxes
     13,804       11,693  
Prepaid expenses and other current assets
     18,196       17,968  
Assets held for sale
     7,343       —  
 
            
Total current assets
     241,785       229,403  
Property, plant and equipment:
                
Land
     7,808       11,089  
Buildings
     56,916       68,165  
Equipment
     280,928       301,835  
 
            
 
     345,652       381,089  
Accumulated depreciation
     (207,500 )     (220,939 )
 
            
Net property, plant and equipment
     138,152       160,150  
Intangible assets, net of amortization:
                
Patents, licenses and software
     12,451       8,077  
Distribution network
     10,837       11,577  
Customer lists, trademarks and tradenames
     13,363       2,954  
Goodwill
     94,986       106,961  
 
            
 
     131,637       129,569  
Investments
     11,742       3,436  
Deferred income taxes
     8,460       15,235  
Other assets
     1,351       1,135  
 
            
Total Assets
   $ 533,127     $ 538,928  
 
            
 
                
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
Current liabilities:
                
Accounts payable
   $ 23,646     $ 18,854  
Accrued payroll
     13,291       17,863  
Accrued expenses
     8,561       17,220  
Accrued severance
     11,418       8,393  
Accrued income taxes
     4,525       2,570  
Current portion of long-term debt
     14,183       8,000  
 
            
Total current liabilities
     75,624       72,900  
Long-term debt, less current portion
     49,000       72,000  
Accrued severance
     421       7,200  
Accrued post-retirement benefits
     18,271       41,637  
Other long-term liabilities
     11,212       11,340  
Total shareholders’ equity
     378,599       333,851  
 
            
Total Liabilities and Shareholders’ Equity
   $ 533,127     $ 538,928  
 
            
 
                
Common shares issued and outstanding of 21,792,241 and 21,719,734, at January 2, 2010, and December 27, 2008, respectively.
                
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LITTELFUSE, INC.
Consolidated Statements of Income
(In thousands of USD, except per share data, unaudited)
                                 
    For the Three
Months Ended		     For the Twelve
Months Ended		  
    Jan. 2, 2010*     Dec. 27, 2008     Jan. 2, 2010*     Dec. 27, 2008  
 
                                
Net sales
   $ 127,928     $ 105,887     $ 430,147     $ 530,869  
 
                                
Cost of sales
     82,871       84,061       304,786       387,200  
 
                        
 
                                
Gross profit
     45,057       21,826       125,361       143,669  
 
                                
Selling, general and administrative expenses
     22,044       28,023       88,506       107,239  
Research and development expenses
     4,379       5,968       18,134       24,069  
Amortization of intangibles
     1,394       943       5,026       3,866  
 
                        
 
     27,817       34,934       111,666       135,174  
 
                                
Operating income (loss)
     17,240       (13,108 )     13,695       8,495  
 
                                
Interest expense
     533       2,392       2,377       3,440  
Other (income) expense, net
     949       (2,678 )     481       (5,568 )
 
                        
 
                                
Income (loss) before income taxes
     15,758       (12,822 )     10,837       10,623  
 
                                
Income taxes
     4,037       (3,597 )     1,426       2,607  
 
                        
 
                                
Net income (loss)
   $ 11,721     $ (9,225 )   $ 9,411     $ 8,016  
 
                        
 
                                
Net income (loss) per share:
                                
Basic
   $ 0.54     $ (0.42 )   $ 0.43     $ 0.37  
 
                        
Diluted
   $ 0.53     $ (0.42 )   $ 0.43     $ 0.37  
 
                        
 
                                
Weighted average shares and equivalent shares outstanding:
                                
Basic
     21,772       21,717       21,743       21,722  
 
                        
Diluted
     21,982       21,733       21,812       21,826  
 
                        
 
*   2009 had 53 and 14 weeks for the fiscal year and quarter, respectively as compared to 52 and 13 weeks for the 2008 fiscal year and quarter, respectively.
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LITTELFUSE, INC.
Consolidated Statements of Cash Flows
(In thousands of USD, unaudited)
                 
    For the Twelve Months Ended  
    January 2, 2010     December 27, 2008  
 
                
OPERATING ACTIVITIES:
                
Net income
   $ 9,411     $ 8,016  
Adjustments to reconcile net income to net cash provided by operating activities:
                
Depreciation
     31,596       28,333  
Impairment of assets
     829       3,169  
Impairment of investments
     —       2,787  
Amortization of intangibles
     5,026       3,866  
Provision for bad debts
     319       286  
Loss (gain) on sale of property, plant and equipment
     703       (511 )
Stock-based compensation
     5,503       5,058  
Excess tax benefit on share-based compensation
     15       172  
Deferred income taxes
     (2,905 )     (3,947 )
Pension settlement expenses
     —       5,725  
Changes in operating assets and liabilities:
                
Accounts receivable
     (15,569 )     23,080  
Inventories
     15,549       (6,593 )
Accounts payable and accrued expenses*
     (7,934 )     (3,129 )
Accrued payroll and severance
     (9,018 )     (15,705 )
Accrued taxes
     (3,322 )     (3,462 )
Prepaid expenses and other
     (577 )     (6,398 )
 
            
Net cash provided by operating activities
     29,626       40,747  
 
                
INVESTING ACTIVITIES:
                
Purchase of property, plant and equipment
     (15,536 )     (51,288 )
Purchase of businesses, net of cash acquired
     (920 )     (47,465 )
Proceeds from sale of investment
     133       —  
Proceeds from sale of property, plant and equipment
     1,558       4,479  
 
            
Net cash used in investing activities
     (14,765 )     (94,274 )
 
                
FINANCING ACTIVITIES:
                
Proceeds from debt
     32,374       190,500  
Payments of debt
     (50,076 )     (123,912 )
Proceeds from exercise of stock options
     1,505       1,857  
Notes receivable, common stock
     —       5  
Purchases of common stock
     —       (6,623 )
 
            
Net cash (used in) provided by financing activities
     (16,197 )     61,827  
 
                
Effect of exchange rate changes on cash
     753       (2,306 )
 
            
 
                
(Decrease) increase in cash and cash equivalents
     (583 )     5,994  
Cash and cash equivalents at beginning of period
     70,937       64,943  
 
            
Cash and cash equivalents at end of period
   $ 70,354     $ 70,937  
 
            
 
*   Includes contributions to the Company’s U.S. pension fund
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