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) April 26, 2013
Littelfuse, Inc.
(Exact name of registrant as specified in its charter)
Delaware |
0-20388 |
36-3795742 |
(State of other jurisdiction |
(Commission |
(IRS Employer |
8755 W. Higgins Road, Suite 500, Chicago, IL 60631
(Address of principal executive offices) (Zip Code)
Registrants telephone number, including area code: (773) 628-1000
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 2.02 Results of Operations and Financial Condition
The information in this Form 8-K is not deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 and is not incorporated by reference into any Securities Act registration statements.
On April 30, 2013, Littelfuse, Inc. (the ) issued a press release announcing the results of its operations for the quarter ended March 30, 2013. A copy of the press release is attached as Exhibit 99.1 to this Form 8-K and incorporated by reference to this Item 2.02 as if fully set forth herein.
The press release attached to this Form 8-K includes 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 Company. 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 Company 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.
A copy of the press release is also posted on the Companys website.
Item 5.07 |
Submission of Matters to a Vote of Security Holders |
On April 26, 2013, the Company held its 2013 Annual Meeting of Stockholders. A quorum was present at the meeting as required by the Companys Bylaws. The final results of voting for each matter submitted to a vote of stockholders at the meeting are as follows:
Proposal 1: Election of Directors
The following seven individuals were elected to the Board of Directors of the Company to serve as directors until the 2014 Annual Meeting of Stockholders and until their successors have been duly elected and qualified:
Nominees |
Votes Cast For |
Votes Withheld |
Broker Non-Votes |
||||||||
Tzau-Jin (T. J.) Chung |
|
19,896,408 |
390,581 |
515,270 |
|||||||
Cary T. Fu |
|
20,142,528 |
144,461 |
515,270 |
|||||||
Anthony Grillo |
|
19,650,106 |
636,883 |
515,270 |
|||||||
Gordon Hunter |
|
19,176,527 |
1,110,462 |
515,270 |
|||||||
John E. Major |
|
19,274,119 |
1,012,870 |
515,270 |
|||||||
William P. Noglows |
|
19,893,517 |
393,472 |
515,270 |
|||||||
Ronald L. Schubel |
|
19,895,369 |
391,620 |
515,270 |
Proposal 2: Approval and Ratification of the Appointment of Ernst & Young LLP as the Companys Independent Auditors
The appointment of Ernst & Young LLP as the Companys independent auditors for the fiscal year ending December 28, 2013 was approved and ratified.
For |
|
Against |
|
Abstain |
|
|
|
|
|
|
|
20,015,889 |
|
779,718 |
|
6,652 |
|
Proposal 3: Advisory Vote on Compensation of Named Executive Officers
The stockholders approved, on an advisory, non-binding basis, the compensation of our named executive officers.
|
|
|
|
|
|
|
For |
|
Against |
|
Abstain |
|
Broker Non-Votes |
|
|
|
|
|
|
|
19,501,937 |
|
607,427 |
|
177,625 |
|
515,270 |
Item 9.01 Financial Statements and Exhibits
d) Exhibits.
The following exhibit is furnished with this Form 8-K:
99.1 |
Press Release, dated April 30, 2013 |
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: April 30, 2013 | By: | /s/ Philip G. Franklin | |
Philip G. Franklin Chief Financial Officer |
|||
Exhibit Index
99.1 |
Press release, dated April 30, 2013 |
Exhibit 99.1
NEWS RELEASE
CONTACT: Phil Franklin,
Vice President, Operations Support, CFO and Treasurer (773) 628-0810
LITTELFUSE REPORTS FIRST QUARTER RESULTS
CHICAGO, April 30, 2013 Littelfuse, Inc. (NASDAQ:LFUS) today reported sales and earnings for the first quarter of 2013.
First Quarter Highlights
● |
Sales for the first quarter of 2013 increased 8% sequentially and 6% year over year to $170.9 million. The increase in sales was broad based, as all businesses and all geographies grew compared to the prior year. |
● |
On a GAAP basis, first quarter 2013 earnings were $0.66 per diluted share. This includes a non-cash charge of $10.7 million pre-tax ($0.29 per share after tax) to write off the remaining equity investment and loan balance for Shocking Technologies, which is in Chapter 7 bankruptcy. Earnings per share for the first quarter of 2012 were $0.80. |
● |
Sales and order trends by business unit were as follows: |
o |
Electronics sales increased 3% year over year due primarily to low channel inventories and improving market sentiment. While all regions had at least modest growth, the largest increase was in Europe reflecting partial recovery from a very weak first quarter of 2012. |
o |
Automotive sales increased 13% year over year due to the acquisitions of Accel and Terra and growth in the passenger vehicle business led by Asia. This was partially offset by the commercial vehicle business which, while showing signs of recovery, still declined 10% compared to the first quarter of 2012 (excluding Terra). |
o |
Electrical sales grew 4% year over year due to growth in power fuses primarily reflecting increased sales into the solar market. |
o |
The electronics book-to-bill ratio for the first quarter of 2013 increased to 1.18 compared to 1.16 in the first quarter of 2012. |
● |
Cash provided by operating activities was $16.0 million for the first quarter of 2013 compared to $7.9 million for the first quarter of 2012 reflecting improved margins and strong working capital performance. |
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Capital expenditures for the first quarter of 2013 were $5.5 million compared to $3.2 million for the first quarter of 2012.
● |
The previous share repurchase authorization expired on April 30, 2013 and was replaced with a one million share repurchase authorization effective through April 2014. |
● |
As previously announced, the company has entered into a definitive agreement to acquire Hamlin, Inc. from Key Safety Systems for $145 million in a cash transaction. The purchase price represents approximately 8.2 times trailing EBITDA. This transaction is expected to close by the end of May. |
The broad-based sales increase in the first quarter coupled with improving book-to-bill is encouraging, said Gordon Hunter, Chief Executive Officer. Although several of our end markets are still relatively weak, we are becoming more confident in our belief that the second and third quarters will show normal seasonal strength.
Outlook
● |
Sales for the second quarter of 2013 are expected to be in the range of $177 to $187 million which represents 1% to 6% growth compared to the second quarter of 2012. |
● |
Earnings for the second quarter of 2013 are expected to be in the range of $1.03 to $1.18 per diluted share. |
● |
Both the sales and earnings guidance above excludes Hamlin. If the Hamlin transaction closes on schedule at the end of May, it is expected that it would add approximately $7 million to sales and be slightly accretive to earnings for the second quarter, excluding acquisition-related costs. |
Dividend
The company will pay a cash dividend of $0.20 per common share on June 6, 2013 to shareholders of record at the close of business on May 20, 2013.
Conference Call Webcast Information
Littelfuse will host a conference call today, Tuesday, April 30, 2013 at 11:00 a.m. Eastern/10:00 a.m. Central time to discuss the first quarter results. The call will be broadcast live over the Internet and can be accessed through the companys website: www.littelfuse.com. Listeners should go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call will be available for replay through June 30, 2013 and can be accessed through the website listed above.
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Page 3
About Littelfuse
Founded in 1927, Littelfuse, Inc., the worldwide leader in circuit protection, offers the industrys broadest and deepest portfolio of circuit protection products and solutions. Littelfuse devices protect products in virtually every market that uses electrical energy, from consumer electronics to automobiles to industrial equipment. In addition to its Chicago, Illinois, world headquarters, Littelfuse has more than 30 sales, distribution, manufacturing and engineering facilities in the Americas, Europe and Asia. Technologies offered by Littelfuse include Fuses; Gas Discharge Tubes (GDTs); Positive Temperature Coefficient Devices (PTCs); PulseGuard® ESD Suppressors; SIDACtor® Devices; Silicon Protection Arrays (SPA®); Switching Thyristors; TVS Diodes and Varistors. The company also offers a comprehensive line of highly reliable Electromechanical and Electronic Switch and Control Devices for commercial and specialty vehicles and Sensors for automobile safety systems, as well as Protection Relays and underground Power Distribution Centers for the safe control and distribution of electricity.
For more information, please visit the Littelfuse website: littelfuse.com.
LFUS - F
# # #
Page 4
LITTELFUSE, INC.
Net Sales and Operating Income by Business Unit
(In thousands of USD, unaudited)
First Quarter |
||||||||||||
2013 |
2012 |
% Change |
||||||||||
Net Sales |
||||||||||||
Electronics |
$ | 79,415 | $ | 77,055 | 3 | % | ||||||
Automotive |
59,385 | 52,626 | 13 | % | ||||||||
Electrical |
32,118 | 30,897 | 4 | % | ||||||||
Total net sales |
$ | 170,918 | $ | 160,578 | 6 | % |
First Quarter |
||||||||||||
2013 |
2012 |
% Change |
||||||||||
Operating Income |
||||||||||||
Electronics |
$ | 12,143 | $ | 10,112 | 20 | % | ||||||
Automotive |
9,483 | 9,505 | (0% | ) | ||||||||
Electrical |
6,491 | 6,207 | 5 | % | ||||||||
Total operating income |
$ | 28,117 | $ | 25,824 | 9 | % | ||||||
Interest expense |
376 | 423 | ||||||||||
Investment impairment (1) |
10,678 | 525 | ||||||||||
Other (income) expense, net |
(909 | ) | 101 | |||||||||
Income before taxes |
$ | 17,972 | $ | 24,775 | (27% | ) |
(1) Impairment and loan losses from investment in Shocking Technologies.
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LITTELFUSE, INC.
Condensed Consolidated Balance Sheets
(In thousands of USD, except share amounts)
March 30, 2013 |
December 29, 2012 |
|||||||
(Unaudited) |
||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 246,895 | $ | 235,404 | ||||
Short-term investments |
8,344 | - | ||||||
Accounts receivable, less allowances |
107,044 | 100,559 | ||||||
Inventories |
71,372 | 75,580 | ||||||
Deferred income taxes |
10,874 | 11,890 | ||||||
Prepaid expenses and other current assets |
15,857 | 16,532 | ||||||
Assets held for sale |
5,500 | 5,500 | ||||||
Total current assets |
465,886 | 445,465 | ||||||
Property, plant and equipment: |
||||||||
Land |
6,328 | 6,243 | ||||||
Buildings |
55,159 | 54,559 | ||||||
Equipment |
309,975 | 304,954 | ||||||
371,462 | 365,756 | |||||||
Accumulated depreciation |
(251,162 | ) | (244,845 | ) | ||||
Net property, plant and equipment |
120,300 | 120,911 | ||||||
Intangible assets, net of amortization: |
||||||||
Patents, licenses and software |
10,521 | 11,144 | ||||||
Distribution network |
18,243 | 18,964 | ||||||
Customer lists, trademarks and tradenames |
17,738 | 18,704 | ||||||
Goodwill |
131,850 | 133,592 | ||||||
178,352 | 182,404 | |||||||
Investment in unconsolidated entity |
- | 8,666 | ||||||
Other investment |
11,572 | 10,327 | ||||||
Deferred income taxes |
9,826 | 8,090 | ||||||
Other assets |
1,878 | 1,865 | ||||||
Total assets |
$ | 787,814 | $ | 777,728 | ||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 29,582 | $ | 27,226 | ||||
Accrued payroll |
13,374 | 20,540 | ||||||
Accrued expenses |
9,703 | 11,062 | ||||||
Accrued severance |
776 | 1,033 | ||||||
Accrued income taxes |
8,196 | 11,559 | ||||||
Current portion of long-term debt |
94,000 | 84,000 | ||||||
Total current liabilities |
155,631 | 155,420 | ||||||
Accrued post-retirement benefits |
17,692 | 22,338 | ||||||
Other long-term liabilities |
13,820 | 12,412 | ||||||
Total equity |
600,671 | 587,558 | ||||||
Total liabilities and equity |
$ | 787,814 | $ | 777,728 |
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LITTELFUSE, INC.
Consolidated Statements of Comprehensive Income
(In thousands of USD, except per share data, unaudited)
For the Three Months Ended |
||||||||
March 29, 2013 |
March 31, 2012 |
|||||||
Net sales |
$ | 170,918 | $ | 160,578 | ||||
Cost of sales |
106,312 | 99,716 | ||||||
Gross profit |
64,606 | 60,862 | ||||||
Selling, general and administrative expenses |
29,202 | 28,409 | ||||||
Research and development expenses |
5,715 | 5,161 | ||||||
Amortization of intangibles |
1,572 | 1,468 | ||||||
36,489 | 35,038 | |||||||
Operating income |
28,117 | 25,824 | ||||||
Interest expense |
376 | 423 | ||||||
Impairment and loan loss in unconsolidated affiliate |
10,678 | 525 | ||||||
Other (income) expense, net |
(909 | ) | 101 | |||||
Income before income taxes |
17,972 | 24,775 | ||||||
Income taxes |
3,178 | 7,212 | ||||||
Net income |
$ | 14,794 | $ | 17,563 | ||||
Net income per share: |
||||||||
Basic |
$ | 0.67 | $ | 0.81 | ||||
Diluted |
$ | 0.66 | $ | 0.80 | ||||
Weighted average shares and equivalent shares outstanding: |
||||||||
Basic |
22,095 | 21,608 | ||||||
Diluted |
22,366 | 21,929 | ||||||
Diluted Net Income Per Share |
||||||||
Net income as reported |
$ | 14,794 | $ | 17,563 | ||||
Less: income allocated to participating securities |
(19 | ) | (49 | ) | ||||
Net income available to common shareholders |
$ | 14,775 | $ | 17,514 | ||||
Weighted average shares adjusted for dilutive securities |
22,366 | 21,929 | ||||||
Diluted net income per share |
$ | 0.66 | $ | 0.80 | ||||
Comprehensive income |
$ | 10,968 | $ | 27,031 |
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LITTELFUSE, INC.
Consolidated Statements of Cash Flows
(In thousands of USD)
For the Three Months Ended |
||||||||
March 29, 2013 |
March 31, 2012 |
|||||||
(Unaudited) |
||||||||
OPERATING ACTIVITIES: |
||||||||
Net income |
$ | 14,794 | $ | 17,563 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation |
6,232 | 6,481 | ||||||
Amortization of intangibles |
1,572 | 1,468 | ||||||
Impairment and loan loss in unconsolidated affiliate |
10,678 | 525 | ||||||
Non-cash inventory charge(1) |
- | 205 | ||||||
Stock-based compensation |
1,779 | 1,365 | ||||||
(Gain) loss on disposal of fixed assets |
(24 | ) | 7 | |||||
Excess tax benefit on stock-based compensation |
(467 | ) | (475 | ) | ||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
(9,745 | ) | (14,017 | ) | ||||
Inventories |
3,632 | (1,713 | ) | |||||
Accounts payable |
2,452 | 8,552 | ||||||
Accrued expenses (including post retirement) |
(4,619 | ) | (5,543 | ) | ||||
Accrued payroll and severance |
(7,319 | ) | (7,728 | ) | ||||
Accrued taxes |
(3,946 | ) | 1,275 | |||||
Prepaid expenses and other |
1,026 | (101 | ) | |||||
Net cash provided by operating activities |
16,045 | 7,864 | ||||||
INVESTING ACTIVITIES: |
||||||||
Purchases of property, plant and equipment |
(5,453 | ) | (3,244 | ) | ||||
Purchase of short-term investments |
(8,478 | ) | (4,616 | ) | ||||
Proceeds from sale of property, plant and equipment |
9 | 21 | ||||||
Net cash used in investing activities |
(13,922 | ) | (7,839 | ) | ||||
FINANCING ACTIVITIES: |
||||||||
Proceeds from debt |
15,000 | 17,000 | ||||||
Payments of revolving credit facility |
(5,000 | ) | (5,500 | ) | ||||
Cash dividends paid |
(4,410 | ) | (3,888 | ) | ||||
Proceeds from exercise of stock options |
5,283 | 4,217 | ||||||
Excess tax benefit on stock-based compensation |
467 | 475 | ||||||
Net cash provided by financing activities |
11,340 | 12,304 | ||||||
Effect of exchange rate changes on cash and cash equivalents |
(1,972 | ) | 2,347 | |||||
Increase in cash and cash equivalents |
11,491 | 14,676 | ||||||
Cash and cash equivalents at beginning of period |
235,404 | 164,016 | ||||||
Cash and cash equivalents at end of period |
$ | 246,895 | $ | 178,692 |
(1) Purchase accounting adjustment related to acquisitions.
# # #
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