Business Editors
DES PLAINES, Ill.--(BUSINESS WIRE)--Jan. 29, 2002
Littelfuse, Inc. (NASDAQ/NMS:LFUS) today reported sales and earnings for the fourth quarter of 2001 and the year.
Sales for the fourth quarter of 2001 were $60.9 million, a 9% decrease from sales of $66.7 million in the third quarter of 2001. Diluted earnings per share, excluding restructuring costs, were $0.01 in the fourth quarter of 2001. Including restructuring costs, the net loss for the quarter was $2.8 million or $0.13 per share. For the fourth quarter of 2000, Littelfuse reported sales of $82.9 million and diluted earnings per share of $0.31.
"Sales trended down as expected in the seasonally slow fourth quarter, but we believe that sales and order rates have stabilized," said Howard B. Witt, Chairman, President and Chief Executive Officer. "We have not yet, however, seen any signs of a recovery," added Witt.
For the full year, sales were $272.1 million, a 27% decrease from the record sales level of $371.9 million in 2000. Net income was $4.1 million in 2001, down 89% from net income of $37.3 million in 2000. Diluted earnings per share for 2001 decreased to $0.19 ($0.37 before restructuring charges) compared to diluted earnings of $1.69 per share for the prior year.
"In response to the unprecedented downturn in electronics during 2001, we focused the organization on cost reduction and asset management," said Witt. "Our success in these areas resulted in free cash flow for the year of $26.2 million, which was only 2% below the record level in 2000. While we are obviously disappointed with our 2001 operating results, we are confident that we have laid the groundwork for a return to historical profitability levels as the market recovers," added Witt.
For the fourth quarter of 2001, worldwide sales of electronic products decreased 40%, automotive sales decreased 6% and electrical fuse sales increased 11% as compared to the prior year. Restructuring expenses of $4.6 million were recorded in the fourth quarter, related to the planned closure of a U.S. manufacturing facility, workforce reductions in Korea and the write-down of manufacturing equipment.
"While 2001 has been a challenging year in almost every respect, Littelfuse has come through the year as a leaner, more focused company," said Phil Franklin, Vice President, Treasurer and Chief Financial Officer. "We moved forward on our plan to close several manufacturing facilities and move production to lower cost sites. We also reduced our worldwide workforce by approximately 25% and decreased inventory and receivables by $22.4 million. However, the sharp pull-back in production rates required to reduce inventory levels was a major cause of the gross margin declines that have occurred over the last several quarters," added Franklin.
"We enter 2002 with stabilized sales and a strong balance sheet. Our associates are committed to leveraging the broadest circuit protection product portfolio in the industry to increase sales in 2002," said Witt. "We remain confident that our growth strategies will result in improved performance for Littelfuse over the long term."
Littelfuse will host a conference call today, January 29, 2002, 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 Tuesday, February 5, 2002, and can be accessed through the Web sites listed above.
Littelfuse is a global company offering the broadest line of circuit protection products in the industry. In addition to its Des Plaines world headquarters, Littelfuse has manufacturing facilities in England, Ireland, Switzerland, Mexico, Korea, China and the Philippines, as well as in Centralia, Des Plaines and Arcola, Illinois. It also has sales, engineering and distribution facilities in the Netherlands, Singapore, Hong Kong, Taiwan, Japan and Brazil.
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, and other risks which may be detailed in the company's Securities and Exchange Commission filings.
LITTELFUSE, INC. Sales by Market and Geography (Dollars in millions) Fourth Quarter Year ------------------------- ------------------------- 2001 2000 % Change 2001 2000 % Change Market Electronics $ 31.8 $ 53.3 -40% $ 146.3 $ 232.7 -37% Automotive 21.0 22.3 -6% 91.1 100.0 -9% Electrical 8.1 7.3 11% 34.7 39.2 -11% ------- ------- ---- ------- ------- ---- Total $ 60.9 $ 82.9 -27% $ 272.1 $ 371.9 -27% ======= ======= ==== ======= ======= ==== Fourth Quarter Year ------------------------- ------------------------- 2001 2000 % Change 2001 2000 % Change Geography Americas $ 31.6 $ 46.4 -32% $ 144.9 $ 214.9 -33% Europe 11.0 13.6 -19% 51.4 61.6 -17% Asia Pacific 18.3 22.9 -20% 75.8 95.4 -21% ------- ------- ---- ------- ------- ---- Total $ 60.9 $ 82.9 -27% $ 272.1 $371.9 -27% ======= ======= ==== ======= ======= ==== LITTELFUSE, INC. Condensed Consolidated Statements of Income (in thousands, except per share data) (unaudited) For the Three Months Ended For the Twelve Months Ended -------------------------- --------------------------- December 29, December 30, December 29, December 30, ------------ ------------ ------------ ----------- 2001 2000 2001 2000 ------------ ------------ ------------ ----------- Net sales $ 60,851 $ 82,883 $272,149 $371,920 Cost of sales 42,586 49,554 180,241 221,272 ------------ ------------ ------------ ----------- Gross profit 18,265 33,329 91,908 150,648 Selling, general and administrative expenses 14,928 17,477 62,198 71,083 Research and development expenses 1,758 2,891 8,883 11,152 Amortization of intangibles 1,103 1,416 5,972 6,665 Restructuring expense 4,578 - 6,315 - ------------ ------------ ------------ ----------- Operating income (4,102) 11,545 8,540 61,748 Interest expense 647 1,124 3,291 4,652 Other (income)/ expense (368) (62) (1,112) (1,940) ------------ ------------ ------------ ----------- Income before income taxes (4,381) 10,483 6,361 59,036 Income taxes (1,577) 3,773 2,291 21,738 Net income $ (2,804) $ 6,710 $ 4,070 $ 37,298 ============ ============ ============ =========== Net income per share: Basic $ (0.14) $ 0.34 $ 0.20 $ 1.88 ============ ============ ============ =========== Diluted $ (0.13) $ 0.31 $ 0.19 $ 1.69 ============ ============ ============ =========== Net income per share before restructuring expense: Basic $ 0.01 $ 0.34 $ 0.41 $ 1.88 ============ ============ ============ =========== Diluted $ 0.01 $ 0.31 $ 0.37 $ 1.69 ============ ============ ============ =========== Weighted average shares and equivalent shares outstanding: Basic 20,168 19,891 19,951 19,834 ============ ============ ============ =========== Diluted 21,724 21,866 21,731 22,118 ============ ============ ============ =========== LITTELFUSE, INC. Condensed Consolidated Balance Sheets (in thousands, unaudited) December 29, 2001 December 30, 2000 ----------------- ----------------- Assets: Cash and cash equivalents $ 34,527 $ 5,491 Receivables 40,969 53,152 Inventories 46,208 59,272 Other current assets 14,478 8,779 ----------------- ----------------- Total current assets $ 136,182 $ 126,694 Property, plant, and equipment, net 86,601 92,673 Reorganization value, net 28,066 30,913 Other intangible assets, net 20,455 24,000 Other assets 968 98 ----------------- ----------------- $ 272,272 $ 274,378 ================= ================= Liabilities and Shareholders' Equity: Current liabilities excluding current portion of long-term debt $ 42,216 $ 46,700 Current portion of long-term debt 21,026 17,070 ----------------- ----------------- Total current liabilities 63,242 63,770 Long-term debt 30,402 41,397 Deferred liabilities 835 2,153 Other long-term liabilities 124 331 Shareholders' equity 177,669 166,727 ----------------- ----------------- Shares issued and outstanding at Dec. 29, 2001: 21,873,416 $ 272,272 $ 274,378 ================= ================= LITTELFUSE, INC. Condensed Consolidated Statements of Cash Flows (in thousands, unaudited) For the Three Months Ended For the Twelve Months Ended -------------------------- --------------------------- December 29, December 30, December 29, December 30, ------------ ------------ ------------ ----------- 2001 2000 2001 2000 ------------ ------------ ------------ ----------- Operating activities: Net income $ (2,804) $ 6,710 $ 4,070 $ 37,298 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 5,562 5,150 19,710 20,074 Amortization 1,103 1,417 5,972 6,666 Changes in operating assets and liabilities: Accounts receivable 8,240 14,795 10,573 4,978 Inventories 6,602 (3,763) 11,873 (10,802) Accounts payable and accrued expenses 5,368 (908) (3,710) (6,501) Other, net (7,324) (2,878) (8,178) (3,026) ------------ ------------ ------------ ----------- Net cash provided by operating activities $ 16,747 $ 20,523 $ 40,310 $ 48,687 Cash used in investing activities: Purchases of property, plant, and equipment, net (2,340) (6,293) (14,121) (21,958) Purchase of business - - (168) - Other - (60) - (60) ------------ ------------ ------------ ----------- Net cash used in investing activities (2,340) (6,353) (14,289) (22,018) Cash provided by (used in) financing activities: Proceeds from long-term debt - 12,015 15,855 53,811 Payments of long-term debt (196) (21,540) (21,887) (70,630) Proceeds from exercise of stock options and warrants 7,938 1,796 10,515 5,831 Purchase of common stock and warrants - (7,108) (1,256) (11,203) ------------ ------------ ------------ ----------- Net cash provided by (used in) financing activities 7,742 (14,837) 3,227 (22,191) Effect of exchange rate changes on cash (307) 62 (212) (875) ------------ ------------ ------------ ----------- Increase/ (decrease) in cash and cash equivalents 21,842 (605) 29,036 3,603 Cash and cash equivalents at beginning of period 12,685 6,096 5,491 1,888 ------------ ------------ ------------ ----------- Cash and cash equivalents at end of period $ 34,527 $ 5,491 $ 34,527 $ 5,491 ============ ============ ============ =========== Free cash flow (operating cash flow less purchases of PP&E, net) $ 14,407 $ 14,230 $ 26,189 $ 26,729
