LFUS 8-K
Littelfuse Inc /De (LFUS)
8-K
2024-04-30
For: 2024-04-30
View Original
Added on
April 10, 2026
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: April 30, 2024
(Date of earliest event reported)
LITTELFUSE, INC.
(Exact name of registrant as specified in its charter)
| (State of other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(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 | ||||||||||||
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 April 30, 2024, Littelfuse, Inc. (the “Company”) issued a press release announcing the results of its operations for the quarter ended March 30, 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: | ||||||||
| 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: April 30, 2024 | By: /s/ Meenal A. Sethna | ||||
| Meenal A. Sethna Executive Vice President and Chief Financial Officer | |||||
Exhibit 99.1
 |  | ||||
FOR IMMEDIATE RELEASE David Kelley 224-727-2535 | |||||
LITTELFUSE REPORTS FIRST QUARTER RESULTS FOR 2024
Solid execution drives Q1 sales above, and EPS in-line with guidance
CHICAGO, April 30, 2024 - Littelfuse, Inc. (NASDAQ: LFUS), a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world, today reported financial results for the first quarter ended March 30, 2024:
•Net sales of $535 million were down 12% versus the prior year period, and down 12% organically
•GAAP diluted EPS was $1.93 and adjusted diluted EPS was $1.76
•Cash flow from operations was $57 million and free cash flow was $42 million
“Our global team delivered solid first quarter results, with sales above and earnings in-line with our expectations, as our increasingly diversified end market exposures, robust technology offering, and portfolio optimization initiatives helped to offset ongoing inventory destocking” said Dave Heinzmann, Littelfuse President and Chief Executive Officer. “Further, our strong cash generation reflects disciplined execution, while our well-positioned balance sheet will continue to allow us to capitalize on growth opportunities. Looking forward, we remain confident in an expected return to growth during 2024, and believe our experienced team, agile operations and unwavering long-term strategic focus will drive top-tier value for our stakeholders.”
Second Quarter of 2024*
Based on current market conditions, for the second quarter the company expects,
•Net sales in the range of $525 - $555 million, adjusted diluted EPS in the range of $1.65 - $1.85 and an adjusted effective tax rate of approximately 23%
*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.
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Dividend and Share Repurchase Authorization
•The company’s Board of Directors approved a new stock repurchase authorization to replace its expiring previous 3-year program. The company may repurchase up to $300 million in the aggregate of shares of the company’s common stock for the period May 1, 2024, to April 30, 2027.
•The company will pay a cash dividend on its common stock of $0.65 per share on June 6, 2024, to shareholders of record as of May 23, 2024
Conference Call and Webcast Information
Littelfuse will host a conference call on Wednesday, May 1, 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 17,000 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.
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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.
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
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| Littelfuse Inc. 8755 West Higgins Road, Suite 500 Chicago, Illinois 60631 p: (773) 628-1000 www.littelfuse.com | |||||
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LITTELFUSE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| (Unaudited) | ||||||||||||||
| (in thousands) | March 30, 2024 | December 30, 2023 | ||||||||||||
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 562,153 | $ | 555,513 | ||||||||||
| Short-term investments | 231 | 235 | ||||||||||||
| Trade receivables, less allowances of $76,496 and $84,696 at March 30, 2024 and December 30, 2023, respectively | 295,876 | 287,018 | ||||||||||||
| Inventories | 456,135 | 474,607 | ||||||||||||
| Prepaid income taxes and income taxes receivable | 8,574 | 8,701 | ||||||||||||
| Prepaid expenses and other current assets | 121,142 | 82,526 | ||||||||||||
| Total current assets | 1,444,111 | 1,408,600 | ||||||||||||
| Net property, plant, and equipment | 479,435 | 493,153 | ||||||||||||
| Intangible assets, net of amortization | 584,631 | 606,136 | ||||||||||||
| Goodwill | 1,294,737 | 1,309,998 | ||||||||||||
| Investments | 24,204 | 24,821 | ||||||||||||
| Deferred income taxes | 10,798 | 10,486 | ||||||||||||
| Right of use lease assets | 63,718 | 62,370 | ||||||||||||
| Other long-term assets | 41,827 | 79,711 | ||||||||||||
| Total assets | $ | 3,943,461 | $ | 3,995,275 | ||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable | $ | 172,809 | $ | 173,535 | ||||||||||
| Accrued liabilities | 124,288 | 149,214 | ||||||||||||
| Accrued income taxes | 42,051 | 38,725 | ||||||||||||
| Current portion of long-term debt | 65,824 | 14,020 | ||||||||||||
| Total current liabilities | 404,972 | 375,494 | ||||||||||||
| Long-term debt, less current portion | 800,849 | 857,915 | ||||||||||||
| Deferred income taxes | 100,755 | 110,820 | ||||||||||||
| Accrued post-retirement benefits | 34,049 | 34,422 | ||||||||||||
| Non-current lease liabilities | 50,791 | 49,472 | ||||||||||||
| Other long-term liabilities | 80,752 | 86,671 | ||||||||||||
| Total equity | 2,471,293 | 2,480,481 | ||||||||||||
| Total liabilities and equity | $ | 3,943,461 | $ | 3,995,275 | ||||||||||
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LITTELFUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(Unaudited)
| Three Months Ended | ||||||||||||||
| (in thousands, except per share data) | March 30, 2024 | April 1, 2023 | ||||||||||||
| Net sales | $ | 535,385 | $ | 609,782 | ||||||||||
| Cost of sales | 347,577 | 364,825 | ||||||||||||
| Gross profit | 187,808 | 244,957 | ||||||||||||
| Selling, general, and administrative expenses | 86,127 | 88,310 | ||||||||||||
| Research and development expenses | 27,667 | 27,290 | ||||||||||||
| Amortization of intangibles | 15,825 | 16,866 | ||||||||||||
| Restructuring, impairment, and other charges | 3,237 | 1,850 | ||||||||||||
| Total operating expenses | 132,856 | 134,316 | ||||||||||||
| Operating income | 54,952 | 110,641 | ||||||||||||
| Interest expense | 9,611 | 9,646 | ||||||||||||
| Foreign exchange gain | (5,042) | (1,675) | ||||||||||||
| Other income, net | (5,321) | (6,233) | ||||||||||||
| Income before income taxes | 55,704 | 108,903 | ||||||||||||
| Income taxes | 7,252 | 20,158 | ||||||||||||
| Net income | $ | 48,452 | $ | 88,745 | ||||||||||
| Earnings per share: | ||||||||||||||
| Basic | $ | 1.95 | $ | 3.58 | ||||||||||
| Diluted | $ | 1.93 | $ | 3.54 | ||||||||||
| Weighted-average shares and equivalent shares outstanding: | ||||||||||||||
| Basic | 24,911 | 24,782 | ||||||||||||
| Diluted | 25,124 | 25,062 | ||||||||||||
| Comprehensive income | $ | 18,161 | $ | 102,028 | ||||||||||
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LITTELFUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Three Months Ended | ||||||||||||||
| (in thousands) | March 30, 2024 | April 1, 2023 | ||||||||||||
| OPERATING ACTIVITIES | ||||||||||||||
| Net income | $ | 48,452 | $ | 88,745 | ||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | 28,729 | 32,558 | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
| Trade receivables | (12,723) | (13,176) | ||||||||||||
| Inventories | 16,179 | (1,535) | ||||||||||||
| Accounts payable | 345 | (16,246) | ||||||||||||
| Accrued liabilities and income taxes | (28,042) | (43,578) | ||||||||||||
| Prepaid expenses and other assets | 4,210 | 6,639 | ||||||||||||
| Net cash provided by operating activities | 57,150 | 53,407 | ||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||
| Acquisitions of businesses, net of cash acquired | — | (158,260) | ||||||||||||
| Purchases of property, plant, and equipment | (15,547) | (25,665) | ||||||||||||
| Net proceeds from sale of property, plant and equipment, and other | 7,064 | 737 | ||||||||||||
| Net cash used in investing activities | (8,483) | (183,188) | ||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||
| Net payments of credit facility | (1,875) | (1,875) | ||||||||||||
| Repurchases of common stock | (16,131) | — | ||||||||||||
| Cash dividends paid | (16,200) | (14,880) | ||||||||||||
| All other cash provided by financing activities | 686 | 4,551 | ||||||||||||
| Net cash used in financing activities | (33,520) | (12,204) | ||||||||||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (8,550) | 4,571 | ||||||||||||
| Increase (decrease) in cash, cash equivalents, and restricted cash | 6,597 | (137,414) | ||||||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 557,123 | 564,939 | ||||||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 563,720 | $ | 427,525 | ||||||||||
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LITTELFUSE, INC.
NET SALES AND OPERATING INCOME BY SEGMENT
(Unaudited)
| First Quarter | ||||||||||||||||||||
| (in thousands) | 2024 | 2023 | % (Decline) / Growth | |||||||||||||||||
| Net sales | ||||||||||||||||||||
| Electronics | $ | 291,105 | $ | 358,593 | (18.8) | % | ||||||||||||||
| Transportation | 170,367 | 166,641 | 2.2 | % | ||||||||||||||||
| Industrial | 73,913 | 84,548 | (12.6) | % | ||||||||||||||||
| Total net sales | $ | 535,385 | $ | 609,782 | (12.2) | % | ||||||||||||||
| Operating income | ||||||||||||||||||||
| Electronics | $ | 37,803 | $ | 90,162 | (58.1) | % | ||||||||||||||
| Transportation | 16,206 | 8,532 | 89.9 | % | ||||||||||||||||
| Industrial | 4,796 | 17,141 | (72.0) | % | ||||||||||||||||
| Other(a) | (3,853) | (5,194) | N.M. | |||||||||||||||||
| Total operating income | $ | 54,952 | $ | 110,641 | (50.3) | % | ||||||||||||||
| Operating Margin | 10.3 | % | 18.1 | % | ||||||||||||||||
| Interest expense | 9,611 | 9,646 | ||||||||||||||||||
| Foreign exchange gain | (5,042) | (1,675) | ||||||||||||||||||
| Other income, net | (5,321) | (6,233) | ||||||||||||||||||
| Income before income taxes | $ | 55,704 | $ | 108,903 | (48.8) | % | ||||||||||||||
(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
| First Quarter | ||||||||||||||||||||
| (in thousands) | 2024 | 2023 | % (Decline)/Growth | |||||||||||||||||
| Operating Margin | ||||||||||||||||||||
| Electronics | 13.0 | % | 25.1 | % | (12.1) | % | ||||||||||||||
| Transportation | 9.5 | % | 5.1 | % | 4.4 | % | ||||||||||||||
| Industrial | 6.5 | % | 20.3 | % | (13.8) | % | ||||||||||||||
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LITTELFUSE, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(In millions of USD except per share amounts - unaudited)
| Non-GAAP EPS reconciliation | ||||||||||||||
| Q1-24 | Q1-23 | |||||||||||||
| GAAP diluted EPS | $ | 1.93 | $ | 3.54 | ||||||||||
| EPS impact of Non-GAAP adjustments (below) | (0.17) | 0.10 | ||||||||||||
| Adjusted diluted EPS | $ | 1.76 | $ | 3.64 | ||||||||||
| Non-GAAP adjustments - (income) / expense | ||||||||||||||
| Q1-24 | Q1-23 | |||||||||||||
| Acquisition-related and integration costs (a) | $ | 0.9 | $ | 3.3 | ||||||||||
| Restructuring, impairment and other charges (b) | 3.2 | 1.9 | ||||||||||||
| Gain on sale of fixed assets (c) | (0.3) | — | ||||||||||||
| Non-GAAP adjustments to operating income | 3.8 | 5.2 | ||||||||||||
| Other loss (income), net (d) | 0.2 | (0.2) | ||||||||||||
| Non-operating foreign exchange gain | (5.0) | (1.7) | ||||||||||||
| Non-GAAP adjustments to income before income taxes | (1.0) | 3.3 | ||||||||||||
| Income taxes (e) | 3.3 | 0.9 | ||||||||||||
| Non-GAAP adjustments to net income | $ | (4.3) | $ | 2.4 | ||||||||||
| Total EPS impact | $ | (0.17) | $ | 0.10 | ||||||||||
| Adjusted operating margin / Adjusted EBITDA reconciliation | ||||||||||||||
| Q1-24 | Q1-23 | |||||||||||||
| Net income | $ | 48.5 | $ | 88.7 | ||||||||||
| Add: | ||||||||||||||
| Income taxes | 7.3 | 20.2 | ||||||||||||
| Interest expense | 9.6 | 9.6 | ||||||||||||
| Foreign exchange gain | (5.0) | (1.7) | ||||||||||||
| Other income, net | (5.3) | (6.2) | ||||||||||||
| GAAP operating income | $ | 55.0 | $ | 110.6 | ||||||||||
| Non-GAAP adjustments to operating income | 3.8 | 5.2 | ||||||||||||
| Adjusted operating income | $ | 58.8 | $ | 115.8 | ||||||||||
| Amortization of intangibles | 15.8 | 16.9 | ||||||||||||
| Depreciation expenses | 16.7 | 17.6 | ||||||||||||
| Adjusted EBITDA | $ | 91.3 | $ | 150.3 | ||||||||||
| Net sales | $ | 535.4 | $ | 609.8 | ||||||||||
| Net income as a percentage of net sales | 9.1 | % | 14.5 | % | ||||||||||
| Operating margin | 10.3 | % | 18.1 | % | ||||||||||
| Adjusted operating margin | 11.0 | % | 19.0 | % | ||||||||||
| Adjusted EBITDA margin | 17.1 | % | 24.6 | % | ||||||||||
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| Adjusted EBITDA by Segment | Q1-24 | Q1-23 | ||||||||||||||||||||||||||||||||||||
| Electronics | Transportation | Industrial | Electronics | Transportation | Industrial | |||||||||||||||||||||||||||||||||
| GAAP operating income | $ | 37.8 | $ | 16.2 | $ | 4.8 | $ | 90.2 | $ | 8.5 | $ | 17.1 | ||||||||||||||||||||||||||
| Add: | ||||||||||||||||||||||||||||||||||||||
| Add back amortization | 9.8 | 3.4 | 2.6 | 10.2 | 4.5 | 2.2 | ||||||||||||||||||||||||||||||||
| Add back depreciation | 10.0 | 5.3 | 1.4 | 9.6 | 6.8 | 1.2 | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 57.6 | $ | 24.9 | $ | 8.8 | $ | 110.0 | $ | 19.8 | $ | 20.5 | ||||||||||||||||||||||||||
| Adjusted EBITDA Margin | 19.8 | % | 14.6 | % | 11.9 | % | 30.7 | % | 11.9 | % | 24.3 | % | ||||||||||||||||||||||||||
| Net sales reconciliation | Q1-24 vs. Q1-23 | |||||||||||||||||||||||||
| Electronics | Transportation | Industrial | Total | |||||||||||||||||||||||
| Net sales (decline) growth | (19) | % | 2 | % | (13) | % | (12) | % | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Acquisitions | — | % | — | % | 1 | % | — | % | ||||||||||||||||||
| FX impact | — | % | (1) | % | — | % | — | % | ||||||||||||||||||
| Organic net sales (decline) growth | (19) | % | 3 | % | (14) | % | (12) | % | ||||||||||||||||||
| Income tax reconciliation | ||||||||||||||
| Q1-24 | Q1-23 | |||||||||||||
| Income taxes | $ | 7.3 | $ | 20.2 | ||||||||||
| Effective rate | 13.0 | % | 18.5 | % | ||||||||||
| Non-GAAP adjustments - income taxes | 3.3 | 0.9 | ||||||||||||
| Adjusted income taxes | $ | 10.6 | $ | 21.1 | ||||||||||
| Adjusted effective rate | 19.3 | % | 18.8 | % | ||||||||||
| Free cash flow reconciliation | ||||||||||||||
| Q1-24 | Q1-23 | |||||||||||||
| Net cash provided by operating activities | $ | 57.1 | $ | 53.4 | ||||||||||
| Less: Purchases of property, plant and equipment | (15.5) | (25.7) | ||||||||||||
| Free cash flow | $ | 41.6 | $ | 27.7 | ||||||||||
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| Consolidated Total Debt | As of March 30, 2024 | |||||||
| Consolidated Total Debt | $ | 866.7 | ||||||
| Unamortized debt issuance costs | 3.5 | |||||||
| Finance lease liability | 0.6 | |||||||
| Consolidated funded indebtedness | 870.8 | |||||||
| Cash held in U.S. (up to $400 million) | 157.9 | |||||||
| Net debt | $ | 712.9 | ||||||
| Consolidated EBITDA | Twelve Months Ended March 30, 2024 | |||||||
| Net Income | $ | 219.1 | ||||||
| Interest expense | 39.8 | |||||||
| Income taxes | 56.2 | |||||||
| Depreciation | 70.7 | |||||||
| Amortization | 64.8 | |||||||
| Non-cash additions: | ||||||||
| Stock-based compensation expense | 23.8 | |||||||
| Purchase accounting inventory step-up charge | — | |||||||
| Unrealized loss on investments | 2.5 | |||||||
| Impairment charges | 5.8 | |||||||
| Other | 18.3 | |||||||
| Consolidated EBITDA (1) | $ | 501.0 | ||||||
| Consolidated Net Leverage Ratio (as defined in the Credit Agreement) * | 1.4x | |||||||
* 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 included $0.3 million gain from the sale of a building within the Transportation segment.
(d) 2024 amount reflected $0.2 million increase in coal mining reserves, while 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.
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1 Q1 2024 EARNINGS RELEASE April 30, 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, ability to generate cash and its credit position enhancing an investor’s overall understanding of its core financial performance. The company believes that these non-GAAP financial measures are commonly used by financial analysts and provide useful information to analysts. Management uses these measures when assessing the performance of the business and for business planning purposes. Note that the 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 Execution & new business momentum support long-term growth strategy Executing in a continued dynamic environment Q1 Sales exceed the high end of guidance Adjusted EPS in-line with guidance Strong cash generation, well-positioned balance sheet Ongoing momentum from portfolio diversification and optimization initiatives Resilient Electronics segment margins Rebounding Transportation segment margins Continued confidence in expected return to growth during 2024
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 EXECUTING WHILE DRIVING INNOVATIONS Leading technology enabler for a broad & growing base of customers Solid design win momentum supporting new customer product launches Ongoing soft consumer demand; stable medical exposure Delivering on a diverse set of customer opportunities across structural growth themes Safety-critical medical win in China Space related communications win in NA Telecom / data center wins across multiple regions Q1 2024 Highlights
7Littelfuse, Inc. © 2024 INDUSTRIAL END MARKETS POSITIONED FOR LONG TERM GROWTH Softening broad based industrial demand Seeing areas of excess OEM inventory Long term growth drivers intact Supported by infrastructure spend, increasing electrical efficiency requirements & decarbonization Design momentum driven by engineering expertise & broad product portfolio Charging infrastructure application wins across multiple regions and applications Energy storage win for renewables application supporting sustainability growth theme Continued industrial safety design win momentum driven by advancing regulations Q1 2024 Highlights
8Littelfuse, Inc. © 2024 TRANSPORTATION END MARKETS BALANCED CAPABILITIES ACROSS APPLICATIONS Continued auto content momentum supported by product breadth and global customer reach Content per vehicle expansion in China High voltage traction supported by innovative product pipeline Technology leadership and operational scale enable continued customer traction Multi-technology win for onboard charging application in Europe High voltage wins across NA, China, Korea Multi-technology win for electric commercial truck customer Q1 2024 Highlights
FINANCIAL UPDATE Meenal Sethna, EVP & CFO
10Littelfuse, Inc. © 2024 Revenue (-12%) vs PY / organic ~2% portfolio pruning headwind GAAP op margin 10.3%; Adj op margin 11% Effective tax rate: GAAP 13%; Adj. 19.3% Includes one-time discrete benefits Operating cash flow $57m, +7% vs PY; Free cash flow $42m Q1 2024 TOTAL COMPANY FINANCIAL PERFORMANCE GAAP EPS $3.54 $1.93 Adj. EPS $3.64 $1.76 Adj. EBITDA% 24.6% 17.1% $610 $535 Q1-23 Q1-24 Revenue (in millions) See appendix for GAAP to non-GAAP reconciliation Highlights
11Littelfuse, Inc. © 2024 CASH GENERATION & CAPITAL DEPLOYMENT Well-positioned business model & execution drive robust long- term cash generation Disciplined approach to working capital Strong cash generation & balance sheet support capital deployment strategy Consolidated net leverage ratio ~1.4x Prioritizing growth investments Driving long-term shareholder value Q1 ’24 deployment - returned $32m to shareholders Even split between dividends and share repurchases Subsequent $23m in Q2 share repurchases through 4/26 Consistent prioritization of capital deployment Organic investments Strategic acquisitions Dividends and share repurchases See appendix for GAAP to non-GAAP reconciliation
12Littelfuse, Inc. © 2024 $359 $291 Q1-23 Q1-24 Q1 2024 ELECTRONICS SEGMENT FINANCIAL PERFORMANCE Revenue Revenue (-19%) vs PY / organic Passive Products (-10%); Semiconductor (-25%) Continued channel inventory destocking, nearing inflection point Maintaining resilient profitability through inventory rebalancing via diversification and improved cost structure Margin improvements expected as demand reaccelerates (in millions) Op Margin 25.1% 13.0% Adj. EBITDA% 30.7% 19.8% Highlights See appendix for GAAP to non-GAAP reconciliation
13Littelfuse, Inc. © 2024 $167 $170 Q1-23 Q1-24 Q1 2024 TRANSPORTATION SEGMENT FINANCIAL PERFORMANCE Revenue Revenue growth +2% / organic +3% ~6% portfolio pruning headwind Passenger vehicle +10% / organic +12% Content & product launches; led by China Commercial vehicle (-5%) / organic (-6%) Headwind from ongoing distribution inventory rebalancing; portfolio pruning Structural actions improved profitability Pricing, product pruning, cost reduction actions Sequential improvements op margin +480bps, adj. EBITDA margin +380bps (in millions) Op Margin 5.1% 9.5% Adj. EBITDA% 11.9% 14.6% See appendix for GAAP to non-GAAP reconciliation Highlights
14Littelfuse, Inc. © 2024 $85 $74 Q1-23 Q1-24 Q1 2024 INDUSTRIAL SEGMENT FINANCIAL PERFORMANCE Revenue Revenue (-13%) / organic (-14%) Softer industrial markets...Construction / MRO, renewables (solar, EV infrastructure) OEM inventory levels remain elevated Footprint optimization initiatives to expand capacity and enhance long term profitability Expect progressive margin recovery in coming quarters (in millions) Op Margin 20.3% 6.5% Adj. EBITDA% 24.3% 11.9% See appendix for GAAP to non-GAAP reconciliation Highlights
15Littelfuse, Inc. © 2024 Q2 2024 GUIDANCE Macro view…expect continued dynamic environment Ongoing channel inventory destock, nearing inflection Expanded weakness in industrial end markets Inflationary trends continue Sales $525 - $555m +1% sequentially By segment: Flat Electronics; Industrial & Transportation slightly up (-1%) F/X headwind vs. PY Expected adj. effective tax rate ~23% Adj. EPS $1.65 - $1.85 Stock comp retirement provisions ($0.30) EPS, (-170bps) margin headwind F/X: ($0.16) EPS, (-90bps) margin headwind vs. PY (in millions) See appendix for GAAP to non-GAAP reconciliation $612 $535 $555 - $525 Q2-23 Q1-24 Q2-24 Revenue Adj. EPS $3.12 $1.76 $1.65 - $1.85 GAAP EPS $2.79 $1.93 - Highlights
16Littelfuse, Inc. © 2024 FULL YEAR 2024 CONSIDERATIONS / EXPECTATIONS F/X: (-1%) headwind to sales; ($0.50) EPS, (-70bps) margin headwind at current rates Expect return to sales growth during 2024, including portfolio initiatives headwind Pruning impact…(-2%) Company, (-5%) Transportation Segment (heavier Comm. Vehicle) Full year ’24 margin expectations impacted by elongated inventory destocking cycle and end market weakness Company adj. operating margin in mid-teens By segment…Electronics upper-teens; Industrial mid-teens; Transportation continued improvement, high single-digits at year end Other Assumptions $64m amortization expense; $39m interest expense Adj. effective tax rate ~22% Expect 100% free cash flow conversion Projecting ~$100m investment in capital expenditures
17Littelfuse, Inc. © 2024 DIVERSIFICATION OF TECHNOLOGIES, END MARKETS & GEOGRAPHIES DELIVERS DOUBLE-DIGIT REVENUE & EARNINGS CAGR '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 Revenue (M$) 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
20Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D
21Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D
22Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D
23Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D
24Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D