Delaware
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0-20388
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36-3795742
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(State of other jurisdiction
of incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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[___]
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
[___]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[___]
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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))
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99.1
|
Press Release, dated February 5, 2013
|
Littelfuse, Inc.
|
|||
Date: February 5, 2013
|
By:
|
/s/ Philip G. Franklin | |
Philip G. Franklin | |||
Vice President, Operations Support and
|
|||
Chief Financial Officer
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99.1
|
Press release, dated February 5, 2013
|
·
|
Sales were $158.8 million for the fourth quarter of 2012, an 8% increase compared to the fourth quarter of 2011.
|
·
|
Diluted earnings per share for the fourth quarter of 2012 were $0.44 compared to $0.70 in the fourth quarter of 2011. The fourth quarter of 2012 included $13.0 million of special items (approximately $0.37 per share) comprised primarily of pension-accounting charges related to settlement of the pension liabilities for certain former employees and impairment charges related to the Shocking Technologies investment. (See page 5, footnote 1 for details).
|
·
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The Shocking Technologies impairment resulted from the company’s judgment that it will take longer than originally assumed for this start-up company to reach breakeven sales levels.
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·
|
Sales and order trends by business unit were as follows:
|
o
|
Electronics sales increased 4% year over year, but declined 14% sequentially, due primarily to weakness in key end markets in addition to normal seasonal trends.
|
o
|
Automotive sales increased 10% year over year as the addition of Accel ($4.8 million of sales in the fourth quarter) and 3% growth in the passenger vehicle business more than offset a 7% decline in commercial vehicle sales. Lower commercial vehicle sales reflected weakness in the construction and heavy truck markets.
|
o
|
Electrical sales increased 15% year over year due to continued strong growth in custom products and solid performance for power fuses.
|
o
|
The electronics book-to-bill ratio for the fourth quarter was 0.98 but is running significantly above 1.0 for the first quarter of 2013.
|
·
|
Cash provided by operating activities was $40.1 million for the fourth quarter of 2012, which included a $5 million voluntary pension contribution. Capital expenditures increased to $9.7 million for the fourth quarter as a result of spending on major facility expansion projects.
|
·
|
Sales were $667.9 million for 2012 compared to $665.0 million for 2011. Excluding approximately $16 million of incremental sales from acquisitions and approximately $9 million of unfavorable currency effects, sales declined less than 1% year over year as strong growth in the electrical business was more than offset by lower electronics sales reflecting weakness in the telecom and PC end markets in addition to channel inventory destocking.
|
·
|
Diluted earnings per share for 2012 were $3.40 compared to $3.90 in 2011. The decline in diluted earnings per share in 2012 was primarily due to the $0.37 of special charges booked in the fourth quarter of 2012.
|
·
|
Cash provided by operating activities was $116.2 million for 2012 compared to $120.8 million in 2011. Cash provided by operating activities in 2012 was reduced by $10.0 million of voluntary pension contributions.
|
·
|
Capital expenditures were $22.5 million in 2012 compared to $17.6 million in 2011. Capital expenditures net of asset disposals were $18.9 million in 2012 and $17.3 in 2011.
|
·
|
Sales for the first quarter of 2013 are expected to be in the range of $158 to $168 million.
|
·
|
Earnings for the first quarter of 2013 are expected to be in the range of $0.75 to $0.88 per diluted share.
|
“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 29, 2012. 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 29, 2012.
|
||
Fourth Quarter
|
Year-to-Date
|
|||||||||||||||||||||||
2012
|
2011
|
% Change
|
2012
|
2011
|
% Change
|
|||||||||||||||||||
Net Sales
|
||||||||||||||||||||||||
Electronics
|
$ | 75,124 | $ | 72,454 | 4 | % | $ | 329,466 | $ | 354,487 | (7 | %) | ||||||||||||
Automotive
|
50,268 | 45,629 | 10 | % | 206,222 | 197,586 | 4 | % | ||||||||||||||||
Electrical
|
33,402 | 29,110 | 15 | % | 132,225 | 112,882 | 17 | % | ||||||||||||||||
Total net sales
|
$ | 158,794 | $ | 147,193 | 8 | % | $ | 667,913 | $ | 664,955 | 0 | % |
Fourth Quarter
|
Year-to-Date
|
|||||||||||||||||||||||
2012
|
2011
|
% Change
|
2012
|
2011
|
% Change
|
|||||||||||||||||||
Operating income
|
||||||||||||||||||||||||
Electronics
|
$ | 8,348 | $ | 6,008 | 39 | % | $ | 51,422 | $ | 62,982 | (18 | %) | ||||||||||||
Automotive
|
6,328 | 5,421 | 17 | % | 29,817 | 30,002 | (1 | %) | ||||||||||||||||
Electrical
|
8,999 | 7,435 | 21 | % | 32,794 | 28,902 | 13 | % | ||||||||||||||||
Other(1)
|
(5,656 | ) | (743 | ) | 661 | % | (7,163 | ) | (7,982 | ) | (10 | %) | ||||||||||||
Total operating income
|
$ | 18,019 | $ | 18,121 | (1 | %) | $ | 106,870 | $ | 113,904 | (6 | %) | ||||||||||||
Interest expense
|
403 | 420 | 1,701 | 1,691 | ||||||||||||||||||||
Investment impairment (1)
|
7,334 | - | 7,334 | - | ||||||||||||||||||||
Other (income) expense, net
|
(1,045 | ) | (954 | ) | (2,217 | ) | (2,888 | ) | ||||||||||||||||
Income before taxes
|
$ | 11,327 | $ | 18,655 | (39 | %) | $ | 100,052 | $ | 115,101 | (13 | %) |
December 29, 2012
|
December 31, 2011
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 235,404 | $ | 164,016 | ||||
Short-term investments
|
- | 13,997 | ||||||
Accounts receivable, less allowances
|
100,559 | 92,088 | ||||||
Inventories
|
75,580 | 75,575 | ||||||
Deferred income taxes
|
11,890 | 11,895 | ||||||
Prepaid expenses and other current assets
|
16,532 | 14,219 | ||||||
Assets held for sale
|
5,500 | 6,592 | ||||||
Total current assets
|
445,465 | 378,382 | ||||||
Property, plant and equipment:
|
||||||||
Land
|
6,243 | 4,888 | ||||||
Buildings
|
54,559 | 52,730 | ||||||
Equipment
|
304,954 | 281,521 | ||||||
365,756 | 339,139 | |||||||
Accumulated depreciation
|
(244,845 | ) | (220,255 | ) | ||||
Net property, plant and equipment
|
120,911 | 118,884 | ||||||
Intangible assets, net of amortization:
|
||||||||
Patents, licenses and software
|
11,144 | 10,753 | ||||||
Distribution network
|
18,964 | 19,307 | ||||||
Customer lists, trademarks and tradenames
|
18,704 | 14,523 | ||||||
Goodwill
|
133,592 | 115,697 | ||||||
182,404 | 160,280 | |||||||
Investment in unconsolidated entity
|
8,666 | 6,000 | ||||||
Other investment
|
10,327 | 8,867 | ||||||
Deferred income taxes
|
8,090 | 4,191 | ||||||
Other assets
|
1,865 | 1,820 | ||||||
Total assets
|
$ | 777,728 | $ | 678,424 | ||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 27,226 | $ | 19,934 | ||||
Accrued payroll
|
20,540 | 23,048 | ||||||
Accrued expenses
|
11,062 | 8,861 | ||||||
Accrued severance
|
1,033 | 1,843 | ||||||
Accrued income taxes
|
11,559 | 10,591 | ||||||
Current portion of long-term debt
|
84,000 | 85,000 | ||||||
Total current liabilities
|
155,420 | 149,277 | ||||||
Accrued post-retirement benefits
|
22,338 | 15,292 | ||||||
Other long-term liabilities
|
12,412 | 12,752 | ||||||
Total equity
|
587,558 | 501,103 | ||||||
Total liabilities and equity
|
$ | 777,728 | $ | 678,424 |
For the Three Months Ended |
For the Twelve Months Ended
|
|||||||||||||||
December 29, 2012
|
December 31, 2011
|
December 29, 2012
|
December 31, 2011
|
|||||||||||||
Net sales
|
$ | 158,794 | $ | 147,193 | $ | 667,913 | $ | 664,955 | ||||||||
Cost of sales
|
99,387 | 93,667 | 409,446 | 408,261 | ||||||||||||
Gross profit
|
59,407 | 53,526 | 258,467 | 256,694 | ||||||||||||
Selling, general and administrative expenses
|
34,078 | 28,889 | 124,277 | 116,740 | ||||||||||||
Research and development expenses
|
5,678 | 4,685 | 21,231 | 19,439 | ||||||||||||
Amortization of intangibles
|
1,632 | 1,831 | 6,089 | 6,611 | ||||||||||||
41,388 | 35,405 | 151,597 | 142,790 | |||||||||||||
Operating income
|
18,019 | 18,121 | 106,870 | 113,904 | ||||||||||||
Interest expense
|
403 | 420 | 1,701 | 1,691 | ||||||||||||
Impairment and equity loss in unconsolidated affiliate
|
7,334 | - | 7,334 | - | ||||||||||||
Other (income) expense, net
|
(1,045 | ) | (954 | ) | (2,217 | ) | (2,888 | ) | ||||||||
Income before income taxes
|
11,327 | 18,655 | 100,052 | 115,101 | ||||||||||||
Income taxes
|
1,486 | 3,417 | 24,720 | 28,077 | ||||||||||||
Net income
|
$ | 9,841 | $ | 15,238 | $ | 75,332 | $ | 87,024 | ||||||||
Net income per share:
|
||||||||||||||||
Basic
|
$ | 0.45 | $ | 0.71 | $ | 3.45 | $ | 3.96 | ||||||||
Diluted
|
$ | 0.44 | $ | 0.70 | $ | 3.40 | $ | 3.90 | ||||||||
Weighted average shares and
|
||||||||||||||||
equivalent shares outstanding:
|
||||||||||||||||
Basic
|
21,979 | 21,536 | 21,822 | 21,901 | ||||||||||||
Diluted
|
22,228 | 21,806 | 22,098 | 22,255 | ||||||||||||
Diluted Net Income Per Share
|
||||||||||||||||
Net income as reported
|
$ | 9,841 | $ | 15,238 | $ | 75,332 | $ | 87,024 | ||||||||
Less: income allocated to participating securities
|
(14 | ) | (42 | ) | (128 | ) | (304 | ) | ||||||||
Net income available to common shareholders
|
$ | 9,827 | $ | 15,196 | $ | 75,204 | $ | 86,720 | ||||||||
Weighted average shares adjusted for dilutive securities
|
22,228 | 21,806 | 22,098 | 22,255 | ||||||||||||
Diluted net income per share
|
$ | 0.44 | $ | 0.70 | $ | 3.40 | $ | 3.90 | ||||||||
Comprehensive income
|
$ | 6,575 | $ | 5,285 | $ | 83,249 | $ | 74,414 |
For the Twelve Months Ended
|
||||||||
December 29, 2012
|
December 31, 2011
|
|||||||
(Unaudited)
|
||||||||
OPERATING ACTIVITIES:
|
||||||||
Net income
|
$ | 75,332 | $ | 87,024 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation
|
25,344 | 25,641 | ||||||
Amortization of intangibles
|
6,089 | 6,611 | ||||||
Provision for bad debts
|
242 | 444 | ||||||
Impairment of assets
|
549 | 2,320 | ||||||
Impairment and equity loss in unconsolidated affiliate
|
7,334 | - | ||||||
Pension settlement charges
|
5,348 | - | ||||||
Non-cash inventory charge(1)
|
567 | 4,145 | ||||||
Stock-based compensation
|
7,348 | 5,805 | ||||||
(Gain) loss on disposal of fixed assets
|
(1,443 | ) | 183 | |||||
Excess tax benefit on stock-based compensation
|
(2,728 | ) | (4,220 | ) | ||||
Deferred income taxes
|
(2,661 | ) | (1,363 | ) | ||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(1,587 | ) | 4,768 | |||||
Inventories
|
5,439 | 2,612 | ||||||
Accounts payable
|
5,353 | (5,272 | ) | |||||
Accrued expenses (including post retirement)
|
(9,570 | ) | (421 | ) | ||||
Accrued payroll and severance
|
(4,387 | ) | (3,226 | ) | ||||
Accrued taxes
|
(357 | ) | (6,057 | ) | ||||
Prepaid expenses and other
|
(42 | ) | 1,756 | |||||
Net cash provided by operating activities
|
116,170 | 120,750 | ||||||
INVESTING ACTIVITIES:
|
||||||||
Purchases of property, plant and equipment
|
(22,529 | ) | (17,555 | ) | ||||
Acquisition of businesses, net of cash acquired
|
(34,016 | ) | (11,077 | ) | ||||
Purchase of investment
|
(10,000 | ) | (6,000 | ) | ||||
Loan to unconsolidated entity
|
(2,000 | ) | - | |||||
Purchase of short-term investments
|
(4,616 | ) | (14,228 | ) | ||||
Proceeds from sales of short-term investments
|
17,805 | - | ||||||
Proceeds from sale of property, plant and equipment
|
3,664 | 217 | ||||||
Net cash used in investing activities
|
(51,692 | ) | (48,643 | ) | ||||
FINANCING ACTIVITIES:
|
||||||||
Proceeds from debt
|
23,251 | 110,000 | ||||||
Payments of term debt
|
- | (49,000 | ) | |||||
Payments of revolving credit facility
|
(25,032 | ) | (50,000 | ) | ||||
Purchases of common stock
|
- | (37,092 | ) | |||||
Debt issuance costs
|
- | (716 | ) | |||||
Cash dividends paid
|
(16,564 | ) | (14,508 | ) | ||||
Proceeds from exercise of stock options
|
16,367 | 23,036 | ||||||
Excess tax benefit on stock-based compensation
|
2,728 | 4,220 | ||||||
Net cash provided by (used in) financing activities
|
750 | (14,060 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents
|
6,160 | (3,751 | ) | |||||
Increase in cash and cash equivalents
|
71,388 | 54,296 | ||||||
Cash and cash equivalents at beginning of period
|
164,016 | 109,720 | ||||||
Cash and cash equivalents at end of period
|
$ | 235,404 | $ | 164,016 |
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