8-K
Littelfuse Inc /De (LFUS)
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: October 29, 2024
(Date of earliest event reported)
LITTELFUSE, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 0-20388 | 36-3795742 |
|---|---|---|
| (State of other jurisdiction <br>of incorporation) | (Commission <br>File Number) | (IRS Employer <br>Identification No.) |
8755 W. Higgins Road, Suite 500, Chicago, IL 60631
(Address of principal executive offices) (Zip Code)
Registrant’s 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)) | |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of exchange on which registered |
|---|---|---|
| Common Stock, par value $0.01 per share | LFUS | NASDAQ Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition |
|---|
The information contained within Item 2.02 of this Form 8-K and the Exhibits attached hereto shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
On October 29, 2024, Littelfuse, Inc. (the “Company”) issued a press release announcing the results of its operations for the quarter ended September 28, 2024. 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. A copy of the press release will also be available on the Company’s website.
| Item 7.01 | Regulation FD Disclosure |
|---|
To supplement the information in the attached press release, the Company has also prepared a presentation, which will be available on the Company’s website at https://investor.littelfuse.com/events-and-presentations and is attached hereto as Exhibit 99.2 to this Current Report on Form 8-K.
The information contained in the press release and investor presentation 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 Company's website.
| Item 9.01 | Financial Statements and Exhibits. | | --- | --- || (d) | Exhibits | | --- | --- | | | The following exhibit is furnished with this Form 8-K: | | | 99.1 Press Release, datedOctober 29, 2024 | | | 99.2 Littelfuse Presentation datedOctober 29, 2024 | | | 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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: October 29, 2024 | By: /s/ Meenal A. Sethna |
| Meenal A. Sethna<br>Executive Vice President and Chief Financial Officer |
Document
Exhibit 99.1
| FOR IMMEDIATE RELEASE<br><br>David Kelley<br><br>224-727-2535<br><br>dkelley@littelfuse.com |
|---|
LITTELFUSE REPORTS THIRD QUARTER RESULTS FOR 2024
Operational execution drives third quarter earnings above expectations
CHICAGO, October 29, 2024 - Littelfuse, Inc. (NASDAQ: LFUS), a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world, today reported financial results for the third quarter ended September 28, 2024:
•Net sales of $567 million were down 7% versus the prior year period and organically
•GAAP diluted EPS was $2.32 and adjusted diluted EPS was $2.71
•Cash flow from operations was $80 million and free cash flow was $65 million
“In the third quarter, our global teams delivered strong execution and drove sales and earnings above our expectations.” said Dave Heinzmann, Littelfuse President and Chief Executive Officer. “While we see soft end market conditions extending into the fourth quarter, we remain focused on driving operational excellence while serving our global customer base and delivering meaningful new business wins. Our proven growth strategy, diversification efforts and strong technology capabilities position us to deliver top tier long-term stakeholder value.”
Fourth Quarter of 2024*
Based on current market conditions, for the fourth quarter the company expects,
•Net sales in the range of $510 - $540 million, adjusted diluted EPS in the range of $1.90 - $2.10 and an adjusted effective tax rate of approximately 14%
*Littelfuse provides guidance on a non-GAAP (adjusted) basis. GAAP items excluded from guidance may include the after-tax impact of items including acquisition and integration costs, restructuring, impairment and other charges, certain purchase accounting adjustments, non-operating foreign exchange adjustments and significant and unusual items. These items are uncertain, depend on various factors, and could be material to results computed in accordance with GAAP. Littelfuse is not able to forecast the excluded items in order to provide the most directly comparable GAAP financial measure without unreasonable efforts.
Dividend and Share Repurchase Authorization
•The company will pay a cash dividend on its common stock of $0.70 per share on December 5, 2024, to shareholders of record as of November 21, 2024
-more-
Page 2
Conference Call and Webcast Information
Littelfuse will host a conference call on Wednesday, October 30, 2024, at 9:00 a.m. Central Time to discuss the results. The call will be broadcast and available for replay at Littelfuse.com. A slide presentation is available in the Investor Relations section of the company’s website at Littelfuse.com.
About Littelfuse
Littelfuse, Inc. (NASDAQ: LFUS) is a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world. Across more than 20 countries, and with approximately 16,000 global associates, we partner with customers to design and deliver innovative, reliable solutions. Serving over 100,000 end customers, our products are found in a variety of industrial, transportation and electronics end markets – everywhere, every day. Learn more at Littelfuse.com.
“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 Private Securities Litigation Reform Act. Such statements are based on Littelfuse, Inc.’s (“Littelfuse” or the “Company”) current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties, include, but are not limited to, risks and uncertainties relating to general economic conditions; product demand and market acceptance; the impact of competitive products and pricing; product quality problems or product recalls; capacity and supply difficulties or constraints; coal mining exposures reserves; cybersecurity matters; failure of an indemnification for environmental liability; exchange rate fluctuations; commodity and other raw material price fluctuations; the effect of Littelfuse accounting policies; labor disputes; restructuring costs in excess of expectations; pension plan asset returns less than assumed; integration of acquisitions; uncertainties related to political or regulatory changes; and other risks which may be detailed in the company's 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 release 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 30, 2023.
Further discussion of the risk factors of the company can be found under the caption "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 30, 2023, and in other filings and submissions with the SEC, each of which are available free of charge on the company’s investor relations website at investor.littelfuse.com and on the SEC’s website at www.sec.gov. These forward-looking statements are made as of the date hereof. The company does not undertake any obligation to update, amend or clarify these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the availability of new information.
-more
Page 3
Non-GAAP Financial Measures
The information included in this press release includes the non-GAAP financial measures of organic net sales (decline) growth, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, adjusted income taxes, adjusted effective tax rate, free cash flow, net debt, consolidated EBITDA, and consolidated net leverage ratio (as defined in the credit agreement). Many of these non-GAAP financial measures exclude the effect of certain expenses and income not related directly to the underlying performance of our fundamental business operations. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is set forth in the attached schedules. The company believes that organic net sales (decline) growth, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, adjusted income taxes, and adjusted effective tax rate provide useful information to investors regarding its operational performance because they enhance an investor’s overall understanding of our core financial performance and facilitate comparisons to historical results of operations, by excluding items that are not related directly to the underlying performance of our fundamental business operations or were not part of our business operations during a comparable period. The company believes that free cash flow is a useful measure of its ability to generate cash. The company believes that net debt, consolidated EBITDA, and consolidated net leverage ratio are useful measures of its credit position. The company believes that all of these non-GAAP financial measures are commonly used by financial analysts and others in the industries in which we operate, and thus further provide useful information to investors. Management additionally uses these measures when assessing the performance of the business and for business planning purposes. Note that our definitions of these non-GAAP financial measures may differ from those terms as defined or used by other companies.
LFUS-F
| Littelfuse Inc.<br>8755 West Higgins Road, Suite 500<br>Chicago, Illinois 60631<br>p: (773) 628-1000<br>www.littelfuse.com |
|---|
Page 4
LITTELFUSE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| (Unaudited) | ||||
|---|---|---|---|---|
| (in thousands, except share and per share data) | September 28,<br>2024 | December 30,<br>2023 | ||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 629,670 | $ | 555,513 |
| Short-term investments | 1,011 | 235 | ||
| Trade receivables, less allowances of $76,151 and $84,696 at September 28, 2024 and December 30, 2023, respectively | 338,758 | 287,018 | ||
| Inventories | 453,781 | 474,607 | ||
| Prepaid income taxes and income taxes receivable | 6,793 | 8,701 | ||
| Prepaid expenses and other current assets | 132,510 | 82,526 | ||
| Total current assets | 1,562,523 | 1,408,600 | ||
| Net property, plant, and equipment | 481,592 | 493,153 | ||
| Intangible assets, net of amortization | 560,994 | 606,136 | ||
| Goodwill | 1,317,748 | 1,309,998 | ||
| Investments | 26,607 | 24,821 | ||
| Deferred income taxes | 11,955 | 10,486 | ||
| Right of use lease assets | 60,277 | 62,370 | ||
| Other long-term assets | 40,548 | 79,711 | ||
| Total assets | $ | 4,062,244 | $ | 3,995,275 |
| LIABILITIES AND EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 179,486 | $ | 173,535 |
| Accrued liabilities | 152,772 | 149,214 | ||
| Accrued income taxes | 39,809 | 38,725 | ||
| Current portion of long-term debt | 67,799 | 14,020 | ||
| Total current liabilities | 439,866 | 375,494 | ||
| Long-term debt, less current portion | 799,949 | 857,915 | ||
| Deferred income taxes | 95,554 | 110,820 | ||
| Accrued post-retirement benefits | 31,373 | 34,422 | ||
| Non-current lease liabilities | 52,074 | 49,472 | ||
| Other long-term liabilities | 70,328 | 86,671 | ||
| Total equity | 2,573,100 | 2,480,481 | ||
| Total liabilities and equity | $ | 4,062,244 | $ | 3,995,275 |
Page 5
LITTELFUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| (in thousands, except per share data) | September 28,<br>2024 | September 30,<br>2023 | September 28,<br>2024 | September 30,<br>2023 | ||||
| Net sales | $ | 567,390 | $ | 607,071 | $ | 1,661,263 | $ | 1,828,850 |
| Cost of sales | 351,498 | 380,200 | 1,050,559 | 1,122,190 | ||||
| Gross profit | 215,892 | 226,871 | 610,704 | 706,660 | ||||
| Selling, general, and administrative expenses | 83,897 | 87,204 | 263,395 | 270,057 | ||||
| Research and development expenses | 26,470 | 25,484 | 81,283 | 77,270 | ||||
| Amortization of intangibles | 15,864 | 16,022 | 47,418 | 49,773 | ||||
| Restructuring, impairment, and other charges | 1,840 | 4,516 | 10,329 | 13,221 | ||||
| Total operating expenses | 128,071 | 133,226 | 402,425 | 410,321 | ||||
| Operating income | 87,821 | 93,645 | 208,279 | 296,339 | ||||
| Interest expense | 9,772 | 10,101 | 29,358 | 29,803 | ||||
| Foreign exchange loss | 9,630 | 11,776 | 4,273 | 8,697 | ||||
| Other income, net | (9,297) | (3,527) | (19,916) | (11,810) | ||||
| Income before income taxes | 77,716 | 75,295 | 194,564 | 269,649 | ||||
| Income taxes | 19,658 | 17,507 | 42,588 | 53,045 | ||||
| Net income | $ | 58,058 | $ | 57,788 | $ | 151,976 | $ | 216,604 |
| Earnings per share: | ||||||||
| Basic | $ | 2.34 | $ | 2.32 | $ | 6.12 | $ | 8.72 |
| Diluted | $ | 2.32 | $ | 2.30 | $ | 6.07 | $ | 8.63 |
| Weighted-average shares and equivalent shares outstanding: | ||||||||
| Basic | 24,796 | 24,893 | 24,822 | 24,838 | ||||
| Diluted | 25,025 | 25,143 | 25,040 | 25,100 | ||||
| Comprehensive income | $ | 114,451 | $ | 55,654 | $ | 157,011 | $ | 212,842 |
Page 6
LITTELFUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Nine Months Ended | ||||
|---|---|---|---|---|
| (in thousands) | September 28, 2024 | September 30, 2023 | ||
| OPERATING ACTIVITIES | ||||
| Net income | $ | 151,976 | $ | 216,604 |
| Adjustments to reconcile net income to net cash provided by operating activities: | 101,437 | 137,988 | ||
| Changes in operating assets and liabilities: | ||||
| Trade receivables | (50,672) | (21,752) | ||
| Inventories | 19,865 | 66,456 | ||
| Accounts payable | 5,460 | (38,475) | ||
| Accrued liabilities and income taxes | (19,434) | (61,359) | ||
| Prepaid expenses and other assets | (1,633) | 13,678 | ||
| Net cash provided by operating activities | 206,999 | 313,140 | ||
| INVESTING ACTIVITIES | ||||
| Acquisitions of businesses, net of cash acquired | — | (198,810) | ||
| Purchases of property, plant, and equipment | (50,065) | (63,166) | ||
| Net proceeds from sale of property, plant and equipment, and other | 8,931 | 597 | ||
| Net cash used in investing activities | (41,134) | (261,379) | ||
| FINANCING ACTIVITIES | ||||
| Net payments of credit facility | (3,750) | (5,625) | ||
| Repurchases of common stock | (40,862) | — | ||
| Cash dividends paid | (49,687) | (45,973) | ||
| All other cash provided by financing activities | 3,000 | 4,454 | ||
| Net cash used in financing activities | (91,299) | (47,144) | ||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (396) | (7,965) | ||
| Increase (decrease) in cash, cash equivalents, and restricted cash | 74,170 | (3,348) | ||
| Cash, cash equivalents, and restricted cash at beginning of period | 557,123 | 564,939 | ||
| Cash, cash equivalents, and restricted cash at end of period | $ | 631,293 | $ | 561,591 |
Page 7
LITTELFUSE, INC.
NET SALES AND OPERATING INCOME BY SEGMENT
(Unaudited)
| Third Quarter | Year-to-Date | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands) | 2024 | 2023 | %<br>(Decline) /<br>Growth | 2024 | 2023 | %<br>(Decline) /<br>Growth | ||||||||||
| Net sales | ||||||||||||||||
| Electronics | $ | 304,188 | $ | 343,933 | (11.6) | % | $ | 900,932 | $ | 1,052,673 | (14.4) | % | ||||
| Transportation | 171,381 | 177,019 | (3.2) | % | 510,711 | 515,708 | (1.0) | % | ||||||||
| Industrial | 91,821 | 86,119 | 6.6 | % | 249,620 | 260,469 | (4.2) | % | ||||||||
| Total net sales | $ | 567,390 | $ | 607,071 | (6.5) | % | $ | 1,661,263 | $ | 1,828,850 | (9.2) | % | ||||
| Operating income | ||||||||||||||||
| Electronics | $ | 48,891 | $ | 77,022 | (36.5) | % | $ | 132,859 | $ | 247,028 | (46.2) | % | ||||
| Transportation | 23,485 | 9,694 | 142.3 | % | 54,925 | 26,015 | 111.1 | % | ||||||||
| Industrial | 17,711 | 13,201 | 34.2 | % | 32,054 | 45,450 | (29.5) | % | ||||||||
| Other(a) | (2,266) | (6,272) | N.M. | (11,559) | (22,154) | N.M. | ||||||||||
| Total operating income | $ | 87,821 | $ | 93,645 | (6.2) | % | $ | 208,279 | $ | 296,339 | (29.7) | % | ||||
| Operating Margin | 15.5 | % | 15.4 | % | 12.5 | % | 16.2 | % | ||||||||
| Interest expense | 9,772 | 10,101 | 29,358 | 29,803 | ||||||||||||
| Foreign exchange loss | 9,630 | 11,776 | 4,273 | 8,697 | ||||||||||||
| Other income, net | (9,297) | (3,527) | (19,916) | (11,810) | ||||||||||||
| Income before income taxes | $ | 77,716 | $ | 75,295 | 3.2 | % | $ | 194,564 | $ | 269,649 | (27.8) | % |
(a) "other" typically includes non-GAAP adjustments such as acquisition-related and integration costs, purchase accounting inventory adjustments and restructuring and impairment charges. (See Supplemental Financial Information for details.)
N.M. - Not meaningful
| Third Quarter | Year-to-Date | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands) | 2024 | 2023 | %<br>(Decline)/Growth | 2024 | 2023 | %<br>(Decline)/Growth | ||||||
| Operating Margin | ||||||||||||
| Electronics | 16.1 | % | 22.4 | % | (6.3) | % | 14.7 | % | 23.5 | % | (8.8) | % |
| Transportation | 13.7 | % | 5.5 | % | 8.2 | % | 10.8 | % | 5.0 | % | 5.8 | % |
| Industrial | 19.3 | % | 15.3 | % | 4.0 | % | 12.8 | % | 17.4 | % | (4.6) | % |
Page 8
LITTELFUSE, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(In millions of USD except per share amounts - unaudited)
| Non-GAAP EPS reconciliation | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q3-24 | Q3-23 | YTD-24 | YTD-23 | |||||||||||||||||||
| GAAP diluted EPS | $ | 2.32 | $ | 2.30 | $ | 6.07 | $ | 8.63 | ||||||||||||||
| EPS impact of Non-GAAP adjustments (below) | 0.39 | 0.67 | 0.37 | 1.09 | ||||||||||||||||||
| Adjusted diluted EPS | $ | 2.71 | $ | 2.97 | $ | 6.44 | $ | 9.72 | Non-GAAP adjustments - (income) / expense | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||
| Q3-24 | Q3-23 | YTD-24 | YTD-23 | |||||||||||||||||||
| Acquisition-related and integration costs (a) | $ | 1.0 | $ | 1.8 | $ | 2.8 | $ | 9.0 | ||||||||||||||
| Restructuring, impairment and other charges (b) | 1.8 | 4.5 | 10.3 | 13.2 | ||||||||||||||||||
| Gain on sale of fixed assets (c) | (0.5) | — | (1.5) | — | ||||||||||||||||||
| Non-GAAP adjustments to operating income | 2.3 | 6.3 | 11.6 | 22.2 | ||||||||||||||||||
| Other income, net (d) | — | — | (0.3) | (0.2) | ||||||||||||||||||
| Non-operating foreign exchange loss | 9.6 | 11.8 | 4.3 | 8.7 | ||||||||||||||||||
| Non-GAAP adjustments to income before income taxes | 11.9 | 18.1 | 15.6 | 30.7 | ||||||||||||||||||
| Income taxes (e) | 2.1 | 1.2 | 6.2 | 3.2 | ||||||||||||||||||
| Non-GAAP adjustments to net income | $ | 9.8 | $ | 16.9 | $ | 9.4 | $ | 27.5 | ||||||||||||||
| Total EPS impact | $ | 0.39 | $ | 0.67 | $ | 0.37 | $ | 1.09 | Adjusted operating margin / Adjusted EBITDA reconciliation | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||
| Q3-24 | Q3-23 | YTD-24 | YTD-23 | |||||||||||||||||||
| Net income | $ | 58.1 | $ | 57.8 | $ | 152.0 | $ | 216.6 | ||||||||||||||
| Add: | ||||||||||||||||||||||
| Income taxes | 19.7 | 17.5 | 42.6 | 53.0 | ||||||||||||||||||
| Interest expense | 9.8 | 10.1 | 29.4 | 29.8 | ||||||||||||||||||
| Foreign exchange loss | 9.6 | 11.8 | 4.3 | 8.7 | ||||||||||||||||||
| Other income, net | (9.3) | (3.5) | (19.9) | (11.8) | ||||||||||||||||||
| GAAP operating income | $ | 87.8 | $ | 93.6 | $ | 208.3 | $ | 296.3 | ||||||||||||||
| Non-GAAP adjustments to operating income | 2.3 | 6.3 | 11.6 | 22.2 | ||||||||||||||||||
| Adjusted operating income | $ | 90.1 | $ | 99.9 | $ | 219.9 | $ | 318.5 | ||||||||||||||
| Amortization of intangibles | 15.9 | 16.0 | 47.4 | 49.8 | ||||||||||||||||||
| Depreciation expense | 17.3 | 17.9 | 51.0 | 53.5 | ||||||||||||||||||
| Adjusted EBITDA | $ | 123.3 | $ | 133.8 | $ | 318.3 | $ | 421.8 | ||||||||||||||
| Net sales | $ | 567.4 | $ | 607.1 | $ | 1,661.3 | $ | 1,828.9 | ||||||||||||||
| Net income as a percentage of net sales | 10.2 | % | 9.5 | % | 9.1 | % | 11.8 | % | ||||||||||||||
| Operating margin | 15.5 | % | 15.4 | % | 12.5 | % | 16.2 | % | ||||||||||||||
| Adjusted operating margin | 15.9 | % | 16.5 | % | 13.2 | % | 17.4 | % | ||||||||||||||
| Adjusted EBITDA margin | 21.7 | % | 22.0 | % | 19.2 | % | 23.1 | % |
Page 9
| Adjusted EBITDA by Segment | Q3-24 | Q3-23 | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Electronics | Transportation | Industrial | Electronics | Transportation | Industrial | |||||||||||||||||||||||||||||||||
| GAAP operating income | $ | 48.9 | $ | 23.5 | $ | 17.7 | $ | 77.0 | $ | 9.7 | $ | 13.2 | ||||||||||||||||||||||||||
| Add: | ||||||||||||||||||||||||||||||||||||||
| Add back amortization | 9.9 | 3.4 | 2.6 | 9.8 | 3.6 | 2.6 | ||||||||||||||||||||||||||||||||
| Add back depreciation | 10.1 | 5.7 | 1.5 | 9.8 | 6.6 | 1.5 | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 68.9 | $ | 32.6 | $ | 21.8 | $ | 96.6 | $ | 19.9 | $ | 17.3 | ||||||||||||||||||||||||||
| Adjusted EBITDA Margin | 22.6 | % | 19.0 | % | 23.8 | % | 28.1 | % | 11.2 | % | 20.1 | % | Adjusted EBITDA by Segment | YTD-24 | YTD-23 | |||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||||
| Electronics | Transportation | Industrial | Electronics | Transportation | Industrial | |||||||||||||||||||||||||||||||||
| GAAP operating income | $ | 132.9 | $ | 54.9 | $ | 32.1 | $ | 247.0 | $ | 26.0 | $ | 45.5 | ||||||||||||||||||||||||||
| Add: | ||||||||||||||||||||||||||||||||||||||
| Add back amortization | 29.6 | 10.1 | 7.7 | 30.1 | 12.2 | 7.5 | ||||||||||||||||||||||||||||||||
| Add back depreciation | 30.1 | 16.7 | 4.2 | 29.1 | 20.4 | 4.0 | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 192.5 | $ | 81.8 | $ | 44.0 | $ | 306.2 | $ | 58.6 | $ | 57.0 | ||||||||||||||||||||||||||
| Adjusted EBITDA Margin | 21.4 | % | 16.0 | % | 17.6 | % | 29.1 | % | 11.4 | % | 21.9 | % | Net sales reconciliation | Q3-24 vs. Q3-23 | ||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||||||||||||||
| Electronics | Transportation | Industrial | Total | |||||||||||||||||||||||||||||||||||
| Net sales (decline) growth | (12) | % | (3) | % | 7 | % | (7) | % | ||||||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||||||||
| Acquisitions | — | % | — | % | — | % | — | % | ||||||||||||||||||||||||||||||
| FX impact | — | % | — | % | — | % | — | % | ||||||||||||||||||||||||||||||
| Organic net sales (decline) growth | (12) | % | (3) | % | 7 | % | (7) | % | Net sales reconciliation | YTD-24 vs. YTD-23 | ||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||||||||||||||
| Electronics | Transportation | Industrial | Total | |||||||||||||||||||||||||||||||||||
| Net sales decline | (14) | % | (1) | % | (4) | % | (9) | % | ||||||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||||||||
| Acquisitions | — | % | — | % | — | % | — | % | ||||||||||||||||||||||||||||||
| FX impact | — | % | — | % | — | % | — | % | ||||||||||||||||||||||||||||||
| Organic net sales decline | (14) | % | (1) | % | (4) | % | (9) | % | ||||||||||||||||||||||||||||||
| Income tax reconciliation | ||||||||||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||||||||||
| Q3-24 | Q3-23 | YTD-24 | YTD-23 | |||||||||||||||||||||||||||||||||||
| Income taxes | $ | 19.7 | $ | 17.5 | $ | 42.6 | $ | 53.0 | ||||||||||||||||||||||||||||||
| Effective rate | 25.3 | % | 23.3 | % | 21.9 | % | 19.7 | % | ||||||||||||||||||||||||||||||
| Non-GAAP adjustments - income taxes | 2.1 | 1.2 | 6.2 | 3.2 | ||||||||||||||||||||||||||||||||||
| Adjusted income taxes | $ | 21.8 | $ | 18.7 | $ | 48.8 | $ | 56.2 | ||||||||||||||||||||||||||||||
| Adjusted effective rate | 24.3 | % | 20.0 | % | 23.2 | % | 18.7 | % | ||||||||||||||||||||||||||||||
| Free cash flow reconciliation | ||||||||||||||||||||||||||||||||||||||
| Q3-24 | Q3-23 | YTD-24 | YTD-23 | |||||||||||||||||||||||||||||||||||
| Net cash provided by operating activities | $ | 80.4 | $ | 161.5 | $ | 207.0 | $ | 313.1 | ||||||||||||||||||||||||||||||
| Less: Purchases of property, plant and equipment | (15.4) | (21.7) | (50.1) | (63.2) | ||||||||||||||||||||||||||||||||||
| Free cash flow | $ | 65.0 | $ | 139.8 | $ | 156.9 | $ | 250.0 |
Page 10
| Consolidated Total Debt | As of September 28, 2024 | |
|---|---|---|
| Consolidated Total Debt | $ | 867.7 |
| Unamortized debt issuance costs | 3.0 | |
| Finance lease liability | 0.4 | |
| Consolidated funded indebtedness | 871.1 | |
| Cash held in U.S. (up to $400 million) | 135.5 | |
| Net debt | $ | 735.6 |
| Consolidated EBITDA | Twelve Months Ended September 28, 2024 | |
| Net Income | $ | 194.8 |
| Interest expense | 39.4 | |
| Income taxes | 58.7 | |
| Depreciation | 69.1 | |
| Amortization | 63.4 | |
| Non-cash additions: | ||
| Stock-based compensation expense | 25.2 | |
| Purchase accounting inventory step-up charge | — | |
| Unrealized loss on investments | (2.6) | |
| Impairment charges | 1.0 | |
| Other | (0.2) | |
| Consolidated EBITDA (1) | $ | 448.8 |
| Consolidated Net Leverage Ratio (as defined in the Credit Agreement) * | 1.6x |
* Our Credit Agreement and Private Placement Note with maturities ranging from 2024 to 2032, contain financial ratio covenants providing that if, as of the last day of each fiscal quarter, the Consolidated Net Leverage ratio at such time for the then most recently concluded period of four consecutive fiscal quarters of the Company exceeds 3.50:1.00, an Event of Default (as defined in the Credit Agreement and Private Placement Senior Notes) is triggered.
The Credit Agreement and Private Placement Senior Notes were amended in Q2 2022 and now allow for the addition of acquisition and integration costs up to 15% of Consolidated EBITDA and the netting of up to $400M of Available Cash (Cash held by US Subsidiaries).
(1) Represents Consolidated EBITDA as defined in our Credit Agreement and Private Placement Senior Notes and is calculated using the most recently concluded period of four consecutive quarters.
Note: Total will not always foot due to rounding.
(a) reflected in selling, general and administrative expenses ("SG&A").
(b) reflected in restructuring, impairment and other charges.
(c) 2024 amount reflected a gain of $0.5 million ($1.5 million year-to-date) recorded for the sale of a land use right within the Electronics segment and a gain of $1.0 million for the sale of two buildings within the Transportation segment.
(d) 2024 year-to-date also included a reversal of $0.5 million for an asset retirement obligation charge related the disposal of a business in 2019 and $0.2 million increase in coal mining reserves. 2023 amount included $0.2 million gain from the sale of a building within the Electronics segment.
(e) reflected the tax impact associated with the non-GAAP adjustments.
q3-24slidesv3
1 Q3 2024 EARNINGS RELEASE OCTOBER 29, 2024
2Littelfuse, Inc. © 2024 Important Information About Littelfuse, Inc. This presentation does not constitute or form part of, and should not be construed as, an offer or solicitation to purchase or sell securities of Littelfuse, Inc. and no investment decision should be made based upon the information provided herein. Littelfuse strongly urges you to review its filings with the Securities and Exchange Commission, which can be found at investor.littelfuse.com. This website also provides additional information about Littelfuse. “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995. The statements in this presentation that are not historical facts are intended to constitute "forward-looking statements" entitled to the safe-harbor provisions of the Private Securities Litigation Reform Act. Such statements are based on Littelfuse, Inc.’s ("Littelfuse" or the "Company") current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward- looking statements. These risks and uncertainties, include, but are not limited to, risks and uncertainties relating to general economic conditions; product demand and market acceptance; the impact of competitive products and pricing; product quality problems or product recalls; capacity and supply difficulties or constraints; coal mining exposures reserves; cybersecurity matters; failure of an indemnification for environmental liability; exchange rate fluctuations; commodity and other raw material price fluctuations; the effect of Littelfuse accounting policies; labor disputes; restructuring costs in excess of expectations; pension plan asset returns less than assumed; integration of acquisitions; uncertainties related to political or regulatory changes; and other risks which may be detailed in the company's 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 presentation 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 30, 2023. Further discussion of the risk factors of the company can be found under the caption "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 30, 2023, and in other filings and submissions with the SEC, each of which are available free of charge on the company’s investor relations website at investor.littelfuse.com and on the SEC’s website at http://www.sec.gov. These forward-looking statements are made as of the date hereof. The company does not undertake any obligation to update, amend or clarify these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the availability of new information. Non-GAAP Financial Measures. The information included in this presentation includes the non-GAAP financial measures of organic net sales (decline) growth, adjusted operating margin, adjusted EBITDA margin, adjusted diluted earnings per share, adjusted effective tax rate, free cash flow, and consolidated net leverage ratio (as defined in the credit agreement). A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the appendix. The company believes that these non-GAAP financial measures provide useful information to investors regarding its operational performance because they enhance an investor’s overall understanding of our core financial performance and facilitate comparisons to historical results of operations, by excluding items that are not related directly to the underlying performance of our fundamental business operations or were not part of our business operations during a comparable period. The company believes that free cash flow is a useful measure of its ability to generate cash. The company believes that consolidated net leverage ratio is a useful measure of its credit position. Management additionally uses these measures when assessing the performance of the business and for business planning purposes. Note that our definitions of these non-GAAP financial measures may differ from those terms as defined or used by other companies. DISCLAIMERS
BUSINESS UPDATE Dave Heinzmann, President & CEO
4Littelfuse, Inc. © 2024 EXECUTIVE SUMMARY Resilient & diversified business model Solid Q3 execution drives results above expectations Q3 Adjusted EPS exceeded the high end of guidance Strong cash generation, continued balance sheet flexibility Meaningful new business wins across global customer base Delivering on profitability initiatives Sequential margin expansion across all three segments Experienced teams executing on operational & structural actions Well positioned to deliver long-term growth strategy Strong track record & commitment to execution Unique portfolio & broad exposure to secular growth themes
5Littelfuse, Inc. © 2024 2021 – 2025 GROWTH STRATEGY EMPOWERING A SUSTAINABLE, CONNECTED, AND SAFER WORLD Our capabilities, investments & diversification deliver significant value
6Littelfuse, Inc. © 2024 ELECTRONICS END MARKETS PRODUCT LEADERSHIP, DIVERSE CUSTOMER REACH Continued solid data center & medical demand; ongoing subdued demand across consumer products, appliance & building technology applications Healthy design-in activity through cycle Momentum supports long term growth trajectory Broad & innovative solutions continue to gain traction with our global customer base NA & China gaming application wins Multi-region wins for various medical applications Diversified wins across data center, telecom & appliances Q3 2024 Highlights
7Littelfuse, Inc. © 2024 TRANSPORTATION END MARKETS BALANCED CAPABILITIES, GLOBAL PARTNERSHIPS Benefiting from global scale & strong customer relationships Balanced portfolio serving extensive range of transportation applications Strong execution amid ongoing soft end market dynamics Delivering meaningful wins globally with broad customer reach Multiple wins within electrification systems for key customers Global low voltage wins showcase product leadership Diverse commercial vehicle wins across construction equipment, agriculture & specialty vehicles Q3 2024 Highlights
8Littelfuse, Inc. © 2024 INDUSTRIAL END MARKETS INNOVATIVE SOLUTIONS, BROAD EXPERTISE Continued end demand softness driven by industrial equipment, factory automation, motor drives & renewables More pronounced impact on power semiconductor business Ongoing signs of recovery in HVAC; continued traction in Industrial Safety Next generation applications driving broad wins Multiple wins for solar customers in Europe Commercial HVAC wins in NA Global wins across diverse applications highlighted by commercial EV charging infrastructure & mining Q3 2024 Highlights
FINANCIAL UPDATE Meenal Sethna, EVP & CFO
10Littelfuse, Inc. © 2024 Q3 2024 TOTAL COMPANY FINANCIAL PERFORMANCE $2.32$2.30GAAP EPS $2.71$2.97Adj. EPS 21.7%22.0%Adj. EBITDA% $607 $567 Q3-23 Q3-24 Revenue (in millions) See appendix for GAAP to non-GAAP reconciliation Highlights Revenue (-7%) vs PY (Reported & Organic) ~2% portfolio pruning headwind GAAP op margin 15.5%; Adjusted op margin 15.9% Lower volumes offset by operational execution 80bps benefit from FX & commodities Effective tax rate: GAAP 25.3%; Adj. 24.3% Q3 Op cash flow $80m; Free cash flow $65m YTD: Free cash flow $157m, 103% conversion rate
11Littelfuse, Inc. © 2024 CASH GENERATION & CAPITAL DEPLOYMENT Well-positioned business model & execution drive robust long- term cash generation Disciplined approach to working capital management Strong balance sheet supports capital deployment strategy Net leverage ratio ~1.6x Prioritizing growth investments YTD capital deployment - returned $91m to shareholders $41m via share repurchase $50m dividend payout Consistent prioritization of capital deployment Organic investments Strategic acquisitions Dividends and share repurchases See appendix for GAAP to non-GAAP reconciliation Driving long-term shareholder value
12Littelfuse, Inc. © 2024 $344 $304 Q3-23 Q3-24 Q3 2024 ELECTRONICS SEGMENT FINANCIAL PERFORMANCE Revenue (in millions) 16.1%22.4%Op Margin 22.6%28.1%Adj. EBITDA% Highlights See appendix for GAAP to non-GAAP reconciliation Revenue: (-12%) vs PY (Reported & Organic) Passive products flat vs PY Semiconductor (-21%) Normalizing channel inventories amid continued soft demand; further industrial softness impacting semiconductor business Portfolio diversification efforts, execution offset by lower semiconductor volumes
13Littelfuse, Inc. © 2024 $177 $171 Q3-23 Q3-24 Q3 2024 TRANSPORTATION SEGMENT FINANCIAL PERFORMANCE Revenue (in millions) 13.7%5.5%Op Margin 19.0%11.2%Adj. EBITDA% See appendix for GAAP to non-GAAP reconciliation Highlights Revenue: (-3%) vs PY (Reported & Organic) ~5% portfolio pruning headwind Passenger vehicle business (-7%) vs PY (Reported & Organic) Growth in China more than offset by weaker NA and Europe Commercial vehicle business 1% vs PY (Reported); Flat vs PY (Organic) Pricing and order strength offset by ongoing product line pruning and soft end demand Pricing, pruning initiatives & cost reduction actions driving improved profitability Sequential improvements op margin +470bps, adj. EBITDA margin +460bps
14Littelfuse, Inc. © 2024 $86 $92 Q3-23 Q3-24 Q3 2024 INDUSTRIAL SEGMENT FINANCIAL PERFORMANCE Revenue Revenue: +7% vs PY (Reported & Organic) Continued HVAC recovery, industrial safety growth and data center momentum Ongoing end market softness...Renewables, EV infrastructure, factory automation Footprint optimization initiatives, execution driving margin expansion Sequential improvements op margin +790bps, adj. EBITDA margin +780bps (in millions) 19.3%15.3%Op Margin 23.8%20.1%Adj. EBITDA% See appendix for GAAP to non-GAAP reconciliation Highlights
15Littelfuse, Inc. © 2024 Q4 2024 GUIDANCE Macro view…further softening in industrial & automotive end markets, muted electronics demand Passive electronics channel inventories have normalized, protection returning to normal Ongoing cautious order patterns Sales $510m - $540m Down (-7%) sequential, (-2%) vs PY Seasonally sequential declines across all segments Product line pruning impact of 2%; 6% to Transportation segment Adj. EPS $1.90 - $2.10 Expected adj. effective tax rate ~14% (in millions) See appendix for GAAP to non-GAAP reconciliation $534 $567 $540 - $510 Q4-23 Q3-24 Q4-24 Revenue $1.90 - $2.10$2.02 $2.71Adj. EPS -$1.71 $2.32GAAP EPS Highlights
16Littelfuse, Inc. © 2024 FULL YEAR 2024 CONSIDERATIONS / EXPECTATIONS FY Pruning impact…(-2%) Company, (-5%) Transportation Segment (heavier Comm. Vehicle) FY ’24 margin expectations driven by ongoing operational execution, offset by continued soft end demand Company adj. operating margin ~13% FY’24 by segment…Electronics mid-teens; Industrial low-teens; Transportation high single-digits F/X & Commodities: Neutral to sales; ~($0.20) EPS, (-40bps) margin headwind at current rates Other Assumptions $63m amortization expense $39m interest expense; expect to offset ~2/3 with interest income from cash investment strategies Adj. effective tax rate ~21.5% Expect ~100% free cash flow conversion Projecting ~$90m investment in capital expenditures
17Littelfuse, Inc. © 2024 DIVERSIFICATION OF TECHNOLOGIES, END MARKETS & GEOGRAPHIES DELIVERS DOUBLE-DIGIT REVENUE & EARNINGS CAGR '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 Revenue (M$) Adjusted EPS 15-year* CAGR: Sales +10% EPS +18% Strong track record of top tier financial performance Expanding leadership in core markets while prioritizing strategic investments to bolster diversified portfolio Flexible cost structure drives improved profitability through cycles Proven team with history of successfully executing through dynamic environments *2008 - 2023
18Littelfuse, Inc. © 2024 Appendix
19Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION Non-GAAP EPS reconciliation YTD-23YTD-24Q3-23Q3-24 $ 8.63$ 6.07$ 2.30$ 2.32GAAP diluted EPS 1.090.370.670.39EPS impact of Non-GAAP adjustments (below) $ 9.72$ 6.44$ 2.97$ 2.71Adjusted diluted EPS Non-GAAP adjustments - (income) / expense ( in millions) YTD-23YTD-24Q3-23Q3-24 $ 9.0$ 2.8$ 1.8$ 1.0Acquisition-related and integration costs (a) 13.210.34.51.8Restructuring, impairment and other charges (b) —(1.5)—(0.5)Gain on sale of fixed assets (c) 22.211.66.32.3Non-GAAP adjustments to operating income (0.2)(0.3)——Other income, net (d) 8.74.311.89.6Non-operating foreign exchange loss 30.715.618.111.9Non-GAAP adjustments to income before income taxes 3.26.21.22.1Income taxes (e) $ 27.5$ 9.4$ 16.9$ 9.8Non-GAAP adjustments to net income $ 1.09$ 0.37$ 0.67$ 0.39Total EPS impact Note: Total will not always foot due to rounding. (a) reflected in selling, general and administrative expenses ("SG&A"). (b) reflected in restructuring, impairment and other charges. (c) 2024 amount reflected a gain of $0.5 million ($1.5 million year-to-date) recorded for the sale of a land use right within the Electronics segment and a gain of $1.0 million for the sale of two buildings within the Transportation segment. (d) 2024 year-to-date also included a reversal of $0.5 million for an asset retirement obligation charge related the disposal of a business in 2019 and $0.2 million increase in coal mining reserves. 2023 amount included $0.2 million gain from the sale of a building within the Electronics segment. (e) reflected the tax impact associated with the non-GAAP adjustments.
20Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT'D Adjusted operating margin / Adjusted EBITDA reconciliation (in millions) YTD-23YTD-24Q3-23Q3-24 $ 216.6$ 152.0$ 57.8$ 58.1Net income Add: 53.042.617.519.7Income taxes 29.829.410.19.8Interest expense 8.74.311.89.6Foreign exchange loss (11.8)(19.9)(3.5)(9.3)Other income, net $ 296.3$ 208.3$ 93.6$ 87.8GAAP operating income 22.211.66.32.3Non-GAAP adjustments to operating income $ 318.5$ 219.9$ 99.9$ 90.1Adjusted operating income 49.847.416.015.9Amortization of intangibles 53.551.017.917.3Depreciation expense $ 421.8$ 318.3$ 133.8$ 123.3Adjusted EBITDA $ 1,828.9$ 1,661.3$ 607.1$ 567.4Net sales 11.8 %9.1 %9.5 %10.2 %Net income as a percentage of net sales 16.2 %12.5 %15.4 %15.5 %Operating margin 17.4 %13.2 %16.5 %15.9 %Adjusted operating margin 23.1 %19.2 %22.0 %21.7 %Adjusted EBITDA margin
21Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT'D Q3-23Q3-24 Adjusted EBITDA by Segment ( in millions) IndustrialTransportationElectronicsIndustrialTransportationElectronics $ 13.2$ 9.7$ 77.0$ 17.7$ 23.5$ 48.9GAAP operating income Add: 2.63.69.82.63.49.9Add back amortization 1.56.69.81.55.710.1Add back depreciation $ 17.3$ 19.9$ 96.6$ 21.8$ 32.6$ 68.9Adjusted EBITDA 20.1 %11.2 %28.1 %23.8 %19.0 %22.6 %Adjusted EBITDA Margin Q3-23Q3-24 IndustrialTransportationElectronicsIndustrialTransportationElectronicsNet sales (in thousands) $ —$ —$ 191,523$ —$ —$ 151,954Electronics – Semiconductor ——152,410——152,234 Electronics – Passive Products and Sensors —81,290——82,077—Commercial Vehicle Products —72,524——71,299—Passenger Car Products —23,205——18,005—Automotive Sensors 86,119——91,821——Industrial Products $ 86,119$ 177,019$ 343,933$ 91,821$ 171,381$ 304,188Total
22Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT'D Q3-24 vs. Q3-23Net sales reconciliation TotalIndustrialTransportationElectronics (7)%7 %(3)%(12)%Net sales (decline) growth Less: — %— %— %— %FX impact (7)%7 %(3)%(12)%Organic net sales (decline) growth Q3-24 vs. Q3-23Electronics segment net sales reconciliation Total Electronics Electronics – Passive Products and Sensors Electronics – Semiconductor (12)%— %(21)%Net sales decline Less: — %— %— %FX impact (12)%— %(21)%Organic net sales decline Q3-24 vs. Q3-23Transportation segment net sales reconciliation Total Transportation Auto Sensor Products (1) Passenger Car Products (1) Commercial Vehicle Products (3)%(22)%(2)%1 %Net sales growth (decline) Less: — %1 %— %— %FX impact (3)%(23)%(2)%1 %Organic net sales growth(decline) (1) Passenger vehicle business (PVB) includes passenger car and auto sensor products.
23Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT'D Q2-24 % (Decline)/Growth20232024 Operating Margin (7.7)%22.8 %15.1 %Electronics 4.5 %4.5 %9.0 %Transportation (5.4)%16.8 %11.4 %Industrial Q2-24Adjusted EBITDA by Segment ( in millions) IndustrialTransportationElectronics $ 9.5$ 15.2$ 46.2GAAP operating income Add: 2.63.39.8Add back amortization 1.35.810.0Add back depreciation $ 13.4$ 24.3$ 66.0Adjusted EBITDA 16.0 %14.4 %21.6 %Adjusted EBITDA Margin
24Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT'D Income tax reconciliation Q3-23Q3-24 $ 17.5$ 19.7Income taxes 23.3 %25.3 %Effective rate 1.22.1Non-GAAP adjustments - income taxes $ 18.7$ 21.8Adjusted income taxes 20.0 %24.3 %Adjusted effective rate Free cash flow reconciliation Q3-23Q3-24 $ 161.5$ 80.4Net cash provided by operating activities (21.7)(15.4)Less: Purchases of property, plant and equipment $ 139.8$ 65.0Free cash flow
25Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT'D As of September 28, 2024Consolidated Total Debt $ 867.7Consolidated Total Debt 3.0Unamortized debt issuance costs 0.4Finance lease liability 871.1Consolidated funded indebtedness 135.5Cash held in U.S. (up to $400 million) $ 735.6Net debt Twelve Months Ended September 28, 2024Consolidated EBITDA $ 194.8Net Income 39.4Interest expense 58.7Income taxes 69.1Depreciation 63.4Amortization Non-cash additions: 25.2Stock-based compensation expense (2.6)Unrealized loss on investments 1.0Impairment charges (0.2)Other $ 448.8Consolidated EBITDA (1) 1.6xConsolidated Net Leverage Ratio (as defined in the Credit Agreement) * * Our Credit Agreement and Private Placement Note with maturities ranging from 2024 to 2032, contain financial ratio covenants providing that if, as of the last day of each fiscal quarter, the Consolidated Net Leverage ratio at such time for the then most recently concluded period of four consecutive fiscal quarters of the Company exceeds 3.50:1.00, an Event of Default (as defined in the Credit Agreement and Private Placement Senior Notes) is triggered. The Credit Agreement and Private Placement Senior Notes were amended in Q2 2022 and now allow for the addition of acquisition and integration costs up to 15% of Consolidated EBITDA and the netting of up to $400M of Available Cash (Cash held by US Subsidiaries). (1) Represents Consolidated EBITDA as defined in our Credit Agreement and Private Placement Senior Notes and is calculated using the most recently concluded period of four consecutive quarters.
26Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT'D Non-GAAP EPS reconciliation Q4-23 $ 1.71GAAP diluted EPS 0.31EPS impact of Non-GAAP adjustments (below) $ 2.02Adjusted diluted EPS Non-GAAP adjustments - (income) / expense ( in millions) Q4-23 $ 2.7Acquisition-related and integration costs (a) 3.3Restructuring, impairment and other charges (b) 6.0Non-GAAP adjustments to operating income 3.6Non-operating foreign exchange loss 9.6Non-GAAP adjustments to income before income taxes 1.8Income taxes (c) $ 7.8Non-GAAP adjustments to net income 0.31Total EPS impact Note: Total will not always foot due to rounding. (a) reflected in selling, general and administrative expenses ("SG&A"). (b) reflected in restructuring, impairment and other charges. (c) reflected the tax impact associated with the non-GAAP adjustments.