-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RgxR259AfxL75EDpBCWuqX6tovTwVDm5dGH8AXWLBiSMmhO4UDb8Znp0586kXWwN NYjT156gm9CngSCx4g7UfQ== 0000950137-06-001488.txt : 20060208 0000950137-06-001488.hdr.sgml : 20060208 20060208084833 ACCESSION NUMBER: 0000950137-06-001488 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060208 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060208 DATE AS OF CHANGE: 20060208 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LITTELFUSE INC /DE CENTRAL INDEX KEY: 0000889331 STANDARD INDUSTRIAL CLASSIFICATION: SWITCHGEAR & SWITCHBOARD APPARATUS [3613] IRS NUMBER: 363795742 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20388 FILM NUMBER: 06587198 BUSINESS ADDRESS: STREET 1: 800 E NORTHWEST HWY CITY: DES PLAINES STATE: IL ZIP: 60016 BUSINESS PHONE: 7088241188 MAIL ADDRESS: STREET 1: 800 E. NORTHWEST HWY CITY: DES PLAINES STATE: IL ZIP: 60016 8-K 1 c02294e8vk.txt CURRENT REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20579 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) - February 8, 2006 LITTELFUSE, INC. (Exact name of registrant as specified in its charter) DELAWARE 0-20388 36-3795742 (State of other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 800 E. Northwest Hwy., Des Plaines, IL 60016 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (847) 824-1188 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 7.01 REGULATION FD DISCLOSURE (The information under this item 7.01 is being furnished pursuant to Item 12 of Form 8-K) ITEM 9.01 FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS 99.1 Press Release, dated February 8, 2006 On Wednesday, February 8, 2006, the Registrant issued a press release disclosing financial results for the quarter and year ended December 31, 2005. The press release is made part of this Form and is attached as Exhibit 99.1. The press release, dated February 8, 2006, made a part of the Form include forward looking statements that are intended to be covered by the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements include but are not limited to comments with respect to the objectives and strategies, financial condition, results of operations and business of the Registrant. These forward looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that predictions and other forward looking statements will not be achieved. The Registrant cautions you not to place undue reliance on these forward looking statements as a number of important factors could cause actual future results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward looking statements. -2- SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. LITTELFUSE, INC. Date: February 8, 2006 By: /s/ Philip G. Franklin ----------------------- Philip G. Franklin Vice President, Operations Support and Chief Financial Officer -3- EXHIBIT INDEX 99.1 Press release, dated February 8, 2006 EX-99.1 2 c02294exv99w1.txt PRESS RELEASE EXHIBIT 99.1 - -------------------------------------------------------------------------------- [LITTELFUSE LOG] NEWS - -------------------------------------------------------------------------------- Littelfuse, Inc. ------------------------------------------------- 800 East Northwest Highway Des Plaines, IL 60016 ------------------------------------------------- (847) 824-1188 o (847) 391-0894 - FAX # ------------------------------------------------- NEWS RELEASE CONTACT: PHIL FRANKLIN, VICE PRESIDENT, OPERATIONS SUPPORT & CFO (847) 391-0566 LITTELFUSE REPORTS FOURTH QUARTER AND 2005 RESULTS DES PLAINES, ILLINOIS, FEBRUARY 8, 2006 - Littelfuse, Inc. (NASDAQ/NMS:LFUS) today reported sales and earnings for the fourth quarter and full year of 2005. Fourth Quarter Highlights o In the fourth quarter of 2005, Littelfuse entered into a definitive agreement to sell the Efen electrical switchgear business acquired as part of its acquisition of Heinrich in 2004. Beginning in the fourth quarter Efen is accounted for as a discontinued operation. The Efen sale is expected to close in the first quarter of 2006. Proceeds from the sale will be approximately $14 million, which will generate a book gain of approximately $1.5 million. o Sales for the fourth quarter of 2005 (which exclude Efen) were $115.4 million, a 1.1 % increase from sales of $114.1 million in the fourth quarter of 2004 (which exclude Efen). Sales for the fourth quarter of 2005 were down 5.6 % sequentially compared to the third quarter of 2005, due primarily to seasonal factors. o Diluted earnings per share were $0.23 for the fourth quarter of 2005 compared to earnings of $0.21 per diluted share for the fourth quarter of 2004. Diluted earnings per share from continuing operations were $0.22 for the fourth quarter of 2005 compared to $0.26 per diluted share for the fourth quarter of 2004. o The fourth quarter of 2005 included approximately $0.8 million of pre-tax restructuring charges, the majority of which are related to the planned move of thin film fuse manufacturing from Des Plaines, Illinois to the Philippines. The fourth quarter of 2004 included approximately $2.3 million of pre-tax asset impairment charges related to write-down of the Semitron investment. -more- Page 2 o Free cash flow (cash from operating activities minus net capital expenditures) was $5.5 million for the fourth quarter of 2005 compared to $1.9 million for the prior year quarter. o In the Littelfuse third quarter 2005 earnings press release, it was stated that the company had announced a downsizing of its Ireland operation and would be booking related charges over the next several quarters. In addition to the $1.6 million charge booked in the third quarter, the company indicated it expected to book additional charges in the fourth quarter of 2005 and the first half of 2006. This was in accordance with FAS 146 which requires that severance charges be amortized over the period between employee notification and employee termination. On further technical review by the company, it was determined that these charges should more appropriately have been accounted for under FAS 112 which requires all charges be booked at the time of notification. The effect of this change in interpretation is that all severance costs related to the announced Ireland downsizing (the $1.6 million previously booked in the third quarter plus an additional $3.3 million) were pushed back to the third quarter of 2005. A revised third quarter summary income statement has been provided in this press release, and this revision will be reflected in the 2005 Form 10-K. o By geography, sales for the fourth quarter of 2005 were down 3% in the Americas, down 4% in Europe and up 10% in Asia compared to the fourth quarter of 2004. o By market, sales for the fourth quarter of 2005 were flat for electronics, up 1% for automotive and up 16% for electrical compared to the prior year period. o The book to bill ratio for electronics in the fourth quarter was 1.11 to one as bookings accelerated late in the quarter. Fourth Quarter Operating Results The increase in Asia sales was driven primarily by strong demand for consumer electronics particularly in Greater China, Korea and Southeast Asia. The decline in the Americas reflected lower electronics demand, primarily for telecom products, partially offset by strong electrical sales. Sales in Europe declined due to weakness in electronics. "Overall sales for the fourth quarter came in about as expected, with electronics a little stronger and automotive slightly weaker," said Gordon Hunter, Chief Executive Officer. "Our electrical business finished the year with record sales and earnings and enters 2006 with strong momentum." -more- Page 3 "Our operating margin improved to 7.9% in what is normally a difficult quarter," said Phil Franklin, Chief Financial Officer. "This gives us confidence that, with the expected 2006 cost reductions and leverage from higher sales, a 10% operating margin is achievable this year (excluding stock compensation expense)." Full Year Results For the full year 2005, sales were $467.1 million (excluding Efen), down 2% compared to the full year 2004 due to weakness in electronics, primarily in North America, partially offset by increased electrical and automotive sales. Diluted earnings per share were $0.78 for 2005, compared to earnings of $1.59 per diluted share for the prior year period. Earnings from continuing operations were $0.73 per diluted share for 2005 compared to $1.61 per diluted share for 2004. The most significant items contributing to lower earnings in 2005 were a large drop in Teccor sales with the associated negative operating leverage, approximately $8 million in severance related to the Ireland downsizing and other restructurings and a higher effective tax rate. The effective tax rate for 2005 was 41% compared to 34% for 2004. The high 2005 tax rate reflects several factors, including the limited tax shield on Ireland restructuring charges and the repatriation of foreign earnings from lower tax jurisdictions. The tax rate for 2006 is expected to average 35-37%, but with significant variability from quarter to quarter. In future years, the effective tax rate is expected to be below 35%. Current Outlook "Demand for electronic products accelerated in December and so far this strength has continued into 2006," said Hunter. "We now believe our electronics sales in the first quarter will be up 5-10% sequentially and increase over 10% versus prior year. The electrical business continues its strong performance while automotive is trending up slightly versus last year." Conference Call Webcast Information Littelfuse will host a conference call today, Wednesday, February 8, 2006 at 12:00 p.m. Eastern/11:00 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, 2006 and can be accessed through the Web site listed above. -more- Page 4 About Littelfuse As the worldwide leader in circuit protection products and solutions with annual sales of $476.8 million in 2004, 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(R), Wickmann(R) and Pudenz(R) brand circuit protection products. In addition to its Des Plaines, Illinois, world headquarters, Littelfuse has sales, distribution, manufacturing and engineering facilities in Brazil, China, England, Germany, Hong Kong, India, Ireland, 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. - -------------------------------------------------------------------------------- "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 5 LITTELFUSE, INC. SALES BY GEOGRAPHY AND MARKET* (Dollars in millions)
FOURTH QUARTER YEAR-TO-DATE ----------------------------------- --------------------------------- 2005 2004 % CHANGE 2005 2004 % CHANGE ------- ------- -------- -------- -------- -------- GEOGRAPHY - --------- Americas $ 49.0 $ 50.6 -3.2% $ 199.9 $ 216.5 -7.7% Europe 23.3 24.3 -4.1% 98.3 98.3 - Asia Pacific 43.1 39.2 9.9% 168.9 162.0 4.3% ------- ------- ---- -------- -------- ---- TOTAL $ 115.4 $ 114.1 1.1% $ 467.1 $ 476.8 -2.0% ======= ======= ==== ======== ======== ====
FOURTH QUARTER YEAR-TO-DATE ----------------------------------- --------------------------------- 2005 2004 % CHANGE 2005 2004 % CHANGE ------- ------- -------- -------- -------- -------- MARKET - ------ Electronics $ 77.3 $ 77.6 -0.4% $ 305.9 $ 325.6 -6.1% Automotive 27.8 27.6 0.7% 118.6 113.7 4.3% Electrical 10.3 8.9 15.7% 42.6 37.5 13.6% ------- ------- ---- -------- -------- ---- TOTAL $ 115.4 $ 114.1 1.1% $ 467.1 $ 476.8 -2.0% ======= ======= ==== ======== ======== ====
* Certain prior year amounts have been reclassified to conform to the current year presentation. Amounts exclude Efen. -more- Page 6 LITTELFUSE, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data, unaudited)
For the Three Months Ended For the Twelve Months Ended -------------------------- ----------------------------- Dec 31, 2005 Jan 1, 2005 Dec 31, 2005 Jan 1, 2005 ------------ ----------- ------------- ----------- Net sales ....................................................... $ 115,373 $ 114,124 $ 467,089 $ 476,833 Cost of sales ................................................... 77,468 74,228 322,537 303,036 --------- --------- --------- --------- Gross profit .................................................... 37,905 39,896 144,552 173,797 Selling, general and administrative expenses .................... 24,024 23,617 98,536 96,102 Research and development expenses ............................... 3,890 4,803 16,672 16,079 Impairment of investments ....................................... -- 2,277 -- 2,277 Amortization of intangibles ..................................... 877 1,041 2,378 2,336 --------- --------- --------- --------- Operating income ................................................ 9,114 8,158 26,966 57,003 Interest expense ................................................ 470 147 2,098 1,475 Other (income) expense .......................................... 147 256 (3,068) 47 --------- --------- --------- --------- Earnings from continuing operations before taxes and minority interest and income taxes .......................... 8,497 7,755 27,936 55,481 Minority interest ............................................... (48) 15 (86) 143 --------- --------- --------- --------- Earnings from continuing operations before income taxes.......... 8,545 7,740 28,022 55,338 Income taxes .................................................... 3,684 1,789 11,440 18,977 --------- --------- --------- --------- Earnings from continuing operations ............................. 4,861 5,951 16,582 36,361 Discontinued operations (net of tax) ............................ 382 (1,123) 1,128 (333) --------- --------- --------- --------- Net Income ...................................................... $ 5,243 $ 4,828 $ 17,710 $ 36,028 ========= ========= ========= ========= Income (loss) per share: Basic: Continuing operations ...................................... 0.22 0.27 0.74 1.64 Discontinued operations .................................... 0.01 (0.06) 0.05 (0.02) --------- --------- --------- --------- Net income ................................................. $ 0.23 0.21 $ 0.79 1.62 ========= ========= ========= ========= Diluted: Continuing operations ...................................... 0.22 0.26 0.73 1.61 Discontinued operations .................................... 0.01 (0.05) 0.05 (0.02) --------- --------- --------- --------- Net income ................................................. $ 0.23 0.21 $ 0.78 $ 1.59 ========= ========= ========= ========= Weighted average shares and equivalent shares outstanding: Basic ........................................................ 22,305 22,395 22,413 22,239 ========= ========= ========= ========= Diluted ...................................................... 22,415 22,818 22,582 22,604 ========= ========= ========= =========
-more- Page 7 LITTELFUSE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, unaudited)
December 31, 2005 January 1, 2005 ----------------- --------------- ASSETS: Cash and cash equivalents ....................................... $ 21,354 $ 28,091 Receivables ..................................................... 79,884 74,824 Inventories ..................................................... 62,581 72,697 Assets of discontinued operations (Efen) ........................ 18,134 19,061 Other current assets ............................................ 24,681 22,503 -------- -------- Total current assets ............................................ 206,634 217,176 Property, plant, and equipment, net ............................. 124,680 129,196 Intangible assets, net .......................................... 14,668 18,427 Goodwill ........................................................ 56,765 55,249 Investments ..................................................... 5,590 4,886 Other assets .................................................... 490 375 -------- -------- Total assets ................................................ $408,827 $425,309 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities excluding current portion of long-term debt ........................................... $ 64,552 $ 77,160 Liabilities of discontinued operations (Efen) ................... 7,703 6,770 Current portion of long-term debt ............................... 26,682 32,958 -------- -------- Total current liabilities ....................................... 98,937 116,888 Long-term debt .................................................. -- 1,364 Accrued post-retirement benefits ................................ 19,646 19,111 Other long-term liabilities ..................................... 13,109 15,654 Minority interest ............................................... 69 2,208 Shareholders' equity ............................................ 277,066 270,084 -------- -------- Total liabilities and shareholders' equity ................... $408,827 $425,309 ======== ======== Common shares issued and outstanding of 22,229,288 and 22,549,595, at December 31, 2005, and January 1, 2005, respectively.
-more- Page 8 LITTELFUSE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited)
For the Three Months Ended For the Twelve Months Ended -------------------------- --------------------------- Dec 31, Jan 1, Dec 31, Jan 1, -------- --------- -------- ---------- 2005 2005 2005 2005 -------- --------- -------- ---------- Operating activities: Net Income ...................................................... $ 5,243 $ 4,828 $ 17,709 $ 36,028 Adjustments to reconcile net income to net Cash provided by operating activities: Depreciation .............................................. 7,039 6,215 28,738 23,859 Amortization .............................................. 905 1,152 2,495 2,441 Provision for bad debts ................................... (25) 225 2,403 802 Impairment of investments ................................. -- 2,277 -- 2,277 Changes in operating assets and liabilities: Accounts receivable ....................................... (223) 7,834 (11,704) (6,582) Inventories ............................................... 1,749 3,790 8,594 (4,277) Accounts payable and accrued expenses ..................... (2,238) (10,728) (8,235) (7,709) Prepaid and other, net .................................... (1,679) (5,297) (1,897) 6,145 -------- -------- -------- -------- Net cash provided by operating activities ....................... 10,771 10,296 38,103 52,984 Cash used in investing activities: Purchases of property, plant and equipment ...................... (5,385) (8,369) (27,328) (24,763) Acquisitions, net of cash acquired .............................. (1,602) (6,342) (3,019) (41,661) Sale of property, plant and equipment ........................... 89 -- 89 2,684 -------- -------- -------- -------- Net cash used in investing activities ........................... (6,898) (14,711) (30,258) (63,740) Cash provided by (used in) financing activities: Proceeds from long-term debt .............................. 2,139 9,500 48,819 42,200 Payments of long-term debt ................................ (15,502) (15,752) (55,616) (38,402) Proceeds from repayment of notes receivable, common stock .......................................... -- -- 3,533 -- Proceeds from exercise of stock options ................... 94 6,185 3,844 16,520 Purchase of treasury stock ................................ (2,872) -- (12,832) (5,604) -------- -------- -------- -------- Net cash provided by (used in) financing activities ............. (16,141) (67) (12,252) 14,714 Effect of exchange rate changes on cash ......................... (118) 5,740 (2,229) 2,497 -------- -------- -------- -------- Increase (decrease) in cash and cash equivalents ................ (12,386) 1,258 (6,636) 6,455 Cash and cash equivalents at beginning of period ................ 34,333 27,325 28,583 22,128 -------- -------- -------- -------- Cash and cash equivalents at end of period ...................... $ 21,947 $ 28,583 $ 21,947 $ 28,583 ======== ======== ======== ========
-more- Page 9 LITTELFUSE, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data, unaudited)
For the Three Months Ended ------------------------------- Oct 1, Dec 31, -------- --------- 2005* 2005 -------- --------- Net sales ....................................................... $ 122,266 $ 115,373 Cost of sales ................................................... 87,957 77,468 --------- --------- Gross profit .................................................... 34,309 37,905 Selling, general and administrative expenses .................... 25,513 24,024 Research and development expenses ............................... 4,257 3,890 Amortization of intangibles ..................................... 436 877 --------- --------- Operating income ................................................ 4,103 9,114 Interest expense ................................................ 587 470 Other (income) expense .......................................... (2,988) 147 --------- --------- Earnings from continuing operations before taxes and minority interest and income taxes .......................... 6,504 8,497 Minority interest ............................................... (40) (48) --------- --------- Earnings from continuing operations before income taxes ......... 6,544 8,545 Income taxes .................................................... 3,423 3,684 --------- --------- Earnings from continuing operations ............................. 3,121 4,861 Discontinued operations (net of tax) ............................ 650 382 --------- --------- Net Income ...................................................... $ 3,771 $ 5,243 ========= ========= Income per share: Basic: Continuing operations ...................................... 0.14 0.22 Discontinued operations .................................... 0.03 0.01 --------- --------- Net income ................................................. $ 0.17 $ 0.23 ========= ========= Diluted: Continuing operations ...................................... 0.14 0.22 Discontinued operations .................................... 0.03 0.01 --------- --------- Net income ................................................. $ 0.17 $ 0.23 ========= ========= Weighted average shares and equivalent shares outstanding: Basic ........................................................ 22,441 22,305 ========= ========= Diluted ...................................................... 22,626 22,415 ========= =========
* Revised for Ireland severance costs # # # -----END PRIVACY-ENHANCED MESSAGE-----