EX-99.1 2 c97357exv99w1.txt PRESS RELEASE EXHIBIT 99.1 -------------------------------------------------------------------------------- (LITTELFUSE LOGO) NEWS -------------------------------------------------------------------------------- Littlefuse, Inc. ------------------------------------------------ NEWS RELEASE 800 East Northwest Highway Des Plaines, IL 60016 ------------------------------------------------ (847) 824-1188 - (847) 391-0894 - FAX # ------------------------------------------------ CONTACT: PHIL FRANKLIN, VICE PRESIDENT, OPERATIONS SUPPORT & CFO (847) 391-0566 LITTELFUSE REPORTS SECOND QUARTER 2005 RESULTS ---------------------------------------------- DES PLAINES, ILLINOIS, AUGUST 3, 2005 - Littelfuse, Inc. (NASDAQ/NMS:LFUS) today reported sales and earnings for the second quarter of 2005. Sales for the second quarter of 2005 were $123.9 million, a 4% decrease from sales of $128.8 million in the second quarter of 2004. Heinrich Industrie AG, acquired in May 2004, accounted for $20.9 million of second quarter 2005 sales. Diluted earnings per share were $0.19 for the second quarter of 2005, compared to $0.46 for the second quarter of 2004. Excluding Heinrich, sales for the second quarter of 2005 compared to the prior year period were down 10%, with the Americas down 12%, Europe down 21% and Asia down 1%. By market and excluding Heinrich, sales for the second quarter of 2005 compared to the prior year period were down 14% for electronics, down 5% for automotive and up 8% for electrical. Electronic sales declined compared to the prior year quarter due to weakness in telecom end markets and lower distributor sales in both North America and Europe. The Automotive sales decline reflected one-time sales in the prior year quarter related to an OEM recall program and slightly lower car build in North America. Electrical sales increased due to higher prices and strength in the non-construction segments of the market. Sales for the first six months of 2005 were $245.6 million, up 2% from sales of $240.2 million for the first six months of 2004. Diluted earnings per share were $0.38 for the first six months of 2005, compared to $0.89 per diluted share for the prior year period. Excluding Heinrich, sales for the first six months of 2005 were down 10% compared to the same period in the prior year. "Our second quarter performance, although well below the prior year, was similar to the first quarter and consistent with our most recent guidance." said Gordon Hunter, Chief Executive Officer. "While we are disappointed in our financial results for the first half of 2005, we believe the business is now well positioned for improved performance in the second half of the year." "Gross margin for the quarter was negatively impacted by $1.6 million of inventory and asset write-downs and an automotive quality charge of $0.5 million," said Phil Franklin, Chief Financial Officer. -more- Page 2 "Operating expenses were higher than the second quarter of the prior year due to only a partial quarter of Heinrich in 2004." Cash from operating activities was $12.1 million for the second quarter of 2005, compared to $16.1 million for the same period in 2004, due to the lower net income. Net capital expenditures for the second quarter of 2005 were $8.3 million, compared to $6.1 million in the second quarter of 2004, reflecting increased spending related to new products. Littelfuse will host a conference call today, Wednesday, August 3, 2005 at 11:00 a.m. Eastern/10:00 a.m. Central time to discuss the second 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 September 30, 2005 and can be accessed through the Web site listed above. 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 research and manufacturing facilities in China, England, Germany, Ireland, Mexico, the Philippines and the United States. It also has sales, distribution and engineering facilities in Brazil, China, Germany, Hungary, the Netherlands, Japan, Korea, Taiwan, Hong Kong, Singapore and the U.S. 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, labor disputes, restructuring costs in excess of expectations and other risks which may be detailed in the company's Securities and Exchange Commission filings. -------------------------------------------------------------------------------- -more- Page 3 LITTELFUSE, INC. Sales by Market and Geography* (Dollars in Millions)
SECOND QUARTER YEAR-TO-DATE ---------------------------- --------------------------- % % 2005 2004 CHANGE 2005 2004 CHANGE ------ ------ ------ ------ ------ ------ MARKET Electronics $ 66.9 $ 77.5 -14% $130.2 $152.4 -15% Automotive 25.3 26.7 -5% 51.1 54.5 -6% Electrical 10.8 10.0 8% 20.8 18.7 11% ------ ------ ---- ------ ------ --- Subtotal 103.0 114.2 -10% 202.1 225.6 -10% Heinrich 20.9 14.6 43% 43.5 14.6 198% ------ ------ ---- ------ ------ --- TOTAL $123.9 $128.8 -4% $245.6 $240.2 2% ====== ====== ==== ====== ====== ===
SECOND QUARTER YEAR-TO-DATE ---------------------------- --------------------------- % % 2005 2004 CHANGE 2005 2004 CHANGE ------ ------ ------ ------ ------ ------ GEOGRAPHY Americas $ 49.4 $ 55.7 -11% $ 99.6 $108.9 -9% Europe 31.9 30.9 3% 66.4 51.8 28% Asia Pacific 42.6 42.2 1% 79.6 79.5 -- ------ ------ ----- ------ ------ -- TOTAL $123.9 $128.8 -4% $245.6 $240.2 2% ====== ====== ===== ====== ====== ==
* Certain prior year amounts have been reclassified to conform to the current year presentation. -more- Page 4 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 2, July 3, JULY 2, July 3, 2005 2004 2005 2004 --------- --------- --------- --------- Net sales ................................................ $ 123,867 $ 128,759 $ 245,555 $ 240,177 Cost of sales ............................................ 86,212 84,580 168,209 156,193 --------- --------- --------- --------- Gross profit ............................................. 37,655 44,179 77,346 83,984 Selling, general and administrative expenses ............................................. 25,435 23,572 52,549 44,115 Research and development expenses ........................ 4,705 4,156 9,443 7,337 Amortization of intangibles .............................. 463 470 1,094 809 --------- --------- --------- --------- Operating income ......................................... 7,052 15,981 14,260 31,723 Interest expense ......................................... 580 492 1,059 918 Other income ............................................. (98) (768) (232) (461) --------- --------- --------- --------- Income before income taxes and minority interest ................................ 6,570 16,257 13,433 31,266 Minority interest ........................................ (5) 60 2 60 Income taxes ............................................. 2,318 5,853 4,735 11,256 --------- --------- --------- --------- Net income ............................................... $ 4,257 $ 10,344 $ 8,696 $ 19,950 ========= ========= ========= ========= Net income per share: Basic ................................................ $ 0.19 $ 0.47 $ 0.39 $ 0.90 ========= ========= ========= ========= Diluted .............................................. $ 0.19 $ 0.46 $ 0.38 $ 0.89 ========= ========= ========= ========= Weighted average shares and equivalent shares outstanding: Basic ................................................ 22,423 22,180 22,453 22,107 ========= ========= ========= ========= Diluted .............................................. 22,613 22,684 22,681 22,515 ========= ========= ========= =========
-more- Page 5 LITTELFUSE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, unaudited)
JULY 2, 2005 January 1, 2005 ------------ --------------- ASSETS: Cash and cash equivalents ........................ $ 32,647 $ 28,583 Receivables ...................................... 80,971 77,726 Inventories ...................................... 71,250 79,080 Deferred income taxes ............................ 20,448 17,056 Other current assets ............................. 8,575 6,804 ------------ -------- Total current assets ............................. 213,891 209,249 Property, plant, and equipment, net .............. 139,314 136,465 Intangible assets, net ........................... 17,760 19,052 Goodwill ......................................... 54,534 55,249 Investments ...................................... 5,138 4,886 Other assets ..................................... 410 408 ------------ -------- Total assets ................................. $ 431,047 $425,309 ============ ======== LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities excluding current portion of long-term debt ............................ $ 66,322 $ 82,196 Current portion of long-term debt ................ 42,959 32,958 ------------ -------- Total current liabilities ........................ 109,281 115,154 Long-term debt ................................... 1,544 1,364 Deferred income taxes ............................ 8,649 8,573 Accrued post-retirement benefits ................. 19,481 20,417 Other long-term liabilities ...................... 13,949 7,081 Minority interest ................................ 2,668 2,636 Shareholders' equity ............................. 275,475 270,084 ------------ -------- Total liabilities and shareholders' equity .... $ 431,047 $425,309 ============ ======== Common shares issued and outstanding of 22,453,183 and 22,549,595, at July 2, 2005, and January 1, 2005, respectively
-more- Page 6 LITTELFUSE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited)
For the Three For the Six Months Ended Months Ended ---------------------- ---------------------- JULY 2, July 3, JULY 2, July 3, 2005 2004 2005 2004 -------- -------- -------- -------- Operating activities: Net income ............................................ $ 4,257 $ 10,344 $ 8,696 $ 19,950 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation ..................................... 7,511 6,177 14,152 11,816 Amortization ..................................... 463 470 1,094 809 Changes in operating assets and liabilities: Accounts receivable .............................. (4,908) (5,597) (6,435) (13,818) Inventories ...................................... 4,006 1,137 4,951 (1,233) Accounts payable and accrued expenses ............ (1,971) 2,189 (9,234) 1,779 Other, net ....................................... 2,759 1,407 (1,014) (241) -------- -------- -------- -------- Net cash provided by operating activities ....................................... 12,117 16,127 12,210 19,062 Cash used in investing activities: Purchases of property, plant, and equipment ........... (8,266) (6,059) (16,964) (9,051) Acquisitions, net of cash acquired .................... (991) (32,807) (1,019) (32,807) Sale of property, plant & equipment ................... - - - - Sale (purchase) of marketable securities, net ......... - - - - -------- -------- -------- -------- Net cash used in investing activities ................. (9,257) (38,866) (17,983) (41,858) Cash provided by (used in) financing activities: Proceeds from long-term debt ..................... 10,895 32,000 25,951 32,000 Payments of long-term debt ....................... (10,000) (3,008) (15,213) (3,047) Proceeds from repayment of notes receivable, common stock ............................... 12 - 3,533 - Proceeds from exercise of stock options .......... 214 6,425 675 8,309 Purchase of treasury stock ....................... - - (3,199) - -------- -------- -------- -------- Net cash provided by financing activities ............. 1,121 35,417 11,747 37,262 Effect of exchange rate changes on cash ............... (724) (2,189) (1,910) (2,210) -------- -------- -------- -------- Increase in cash and cash equivalents ................. 3,257 10,489 4,064 12,256 Cash and cash equivalents at beginning of period ........................................ 29,390 23,895 28,583 22,128 -------- -------- -------- -------- Cash and cash equivalents at end of period ............ $ 32,647 $ 34,384 $ 32,647 $ 34,384 ======== ======== ======== ========
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