• Bel Reports Fourth Quarter and Full Year 2022 Results

    ソース: Nasdaq GlobeNewswire / 22 2 2023 16:30:01   America/New_York

    JERSEY CITY, N.J., Feb. 22, 2023 (GLOBE NEWSWIRE) -- Bel Fuse Inc. (Nasdaq: BELFA and BELFB) today announced preliminary financial results for the fourth quarter and full year of 2022.

    Fourth Quarter 2022 Highlights

    • Net sales of $169.2 million, up 15.0% from Q4-21
    • Gross profit margin of 31.0%, up from 26.7% in Q4-21
    • Net earnings of $14.0 million versus $8.0 million in Q4-21
    • Adjusted EBITDA of $25.0 million (14.8% of sales), up from $15.3 million (10.4% of sales) in Q4-21

    Full Year 2022 Highlights

    • Record net sales of $654.2 million, up 20.4% from 2021
    • Gross profit margin of 28.0%, up from 24.7% in 2021
    • Record net earnings of $52.7 million versus $24.8 million in 2021
    • Record adjusted EBITDA of $83.0 million (12.7% of sales), up from $42.8 million (7.9% of sales) in 2021
    • Ended year with backlog of orders of $565 million, an increase of 21% from the 2021 year-end level

    Product Group Highlights

     Sales Gross Margin
     Q4-22 Q4-21 % Change Q4-22 Q4-21 Basis Point Change
    Power Solutions and Protection82,119 59,281 38.5% 33.0% 30.9% 210 
    Magnetic Solutions40,064 44,280 -9.5% 29.5% 22.9% 660 
    Connectivity Solutions47,020 43,581 7.9% 23.6% 23.7% (10)
    Total169,203 147,142 15.0% 31.0% 26.7% 430 
                    


     Sales Gross Margin
     FY 2022 FY 2021 % Change FY 2022 FY 2021 Basis Point Change
    Power Solutions and Protection288,366 218,035 32.3% 30.5% 27.0% 350 
    Magnetic Solutions178,782 160,432 11.4% 27.6% 21.3% 630 
    Connectivity Solutions187,085 165,027 13.4% 25.9% 26.4% (50)
    Total654,233 543,494 20.4% 28.0% 24.7% 330 
                    

    “Throughout 2022, we continued to deliver on our commitment to top line growth and sustainable margin expansion. This allowed us to close out the year strong with $654 million in sales and gross margin of 28%, reflecting meaningful improvements on both fronts from 2021,” said Daniel Bernstein, President and CEO. “These outcomes were the result of a collective team effort that better examined the way we do business and ensuring our resources are utilized effectively. We are committed to maintaining continuous pricing and cost discipline in all of our operations, and this remains an integral part of our company culture."

    Farouq Tuweiq, CFO, added “As we look to 2023, the focus will be on profitable growth by investing in key and high-growth market segments, doubling down on new business development, and internal investments needed to support our customers. We believe that we will benefit from our diversity in end markets in 2023, as lower bookings from our magnetics networking customers are expected to be offset by higher demand from the commercial aerospace and eMobility markets, which generally have a bright outlook for the year and beyond. Further, we are excited to kick off the new year with our recently announced investment in Germany-based innolectric AG. Bel views eMobility as a promising growth sector and this complementary relationship brings the next-generation of fast-charging technology to Bel’s eMobility power offerings, further enhancing our competitive position in this emerging field," concluded Mr. Tuweiq.

    Mr. Bernstein continued, "We appreciate all of the hard work and dedication of our associates around the world which enabled Bel to achieve these exceptional results from 2022 in a challenging environment. We look forward to continuing this momentum into 2023 in the areas in which we can control and remain optimistic on Bel's journey ahead."

    Non-GAAP financial measures, such as Non-GAAP net earnings, Non-GAAP EPS, EBITDA and Adjusted EBITDA, exclude a gain on sale of property, acquisition-related costs, write-off of deferred financing costs and restructuring charges. Please refer to the financial information included with this press release for reconciliations of GAAP financial measures to Non-GAAP financial measures and our explanation of why we present Non-GAAP financial measures.

    Conference Call
    Bel has scheduled a conference call for 8:30 a.m. ET on Thursday, February 23, 2023 to discuss these results.  To participate in the conference call, investors should dial 877-407-0784, or 201-689-8560 if dialing internationally. The presentation will additionally be broadcast live over the Internet and will be available at https://ir.belfuse.com/events-and-presentations. The webcast will be available via replay for a period of 20 days at this same Internet address.  For those unable to access the live call, a telephone replay will be available at 844-512-2921, or 412-317-6671 if dialing internationally, using access code 13735980 after 11:30am ET, also for 20 days.

    About Bel
    Bel (www.belfuse.com) designs, manufactures and markets a broad array of products that power, protect and connect electronic circuits.  These products are primarily used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation and eMobility industries.  Bel's portfolio of products also finds application in the automotive, medical, broadcasting and consumer electronics markets.  Bel's product groups include Magnetic Solutions (integrated connector modules, power transformers, power inductors and discrete components), Power Solutions and Protection (front-end, board-mount and industrial power products, module products and circuit protection), and Connectivity Solutions (expanded beam fiber optic, copper-based, RF and RJ connectors and cable assemblies).  The Company operates facilities around the world.

    Company Contact:
    Farouq Tuweiq  
    Chief Financial Officer  
    ir@belf.com

    Investor Contact:
    Three Part Advisors
    Jean Marie Young, Managing Director or Steven Hooser, Partner
    631-418-4339
    jyoung@threepa.com; shooser@threepa.com

    Forward-Looking Statements
    Non-historical information contained in this press release (including the statements regarding expressions about management’s confidence and optimism and management’s expectations, beliefs or anticipations regarding our business, operations, products, market conditions, financial position, results, prospects, and future financial performance; management’s views, expectations, beliefs, intentions and plans with respect to our business and operations and anticipated results and future performance, including statements regarding the Company’s sales and margin, resource utilization, pricing and cost considerations, future plans and intentions for focus on profitable growth, opportunities for investment in certain markets, and new business development and internal investment; statements regarding expectations and beliefs about future performance for 2023 and beyond, including statements regarding continuing momentum, diversity in end markets, anticipated future trends in bookings, demand and outlook in particular customer and market segments; and statements regarding expectations and beliefs about the potential benefits of the Company’s investment in innolectric AG, about the eMobility sector and about Bel’s competitive position in the field) are forward-looking statements (as described under the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties. Actual results could differ materially from Bel's projections. Among the factors that could cause actual results to differ materially from such statements are: the market concerns facing our customers, and risks for the Company’s business in the event of the loss of certain substantial customers; the continuing viability of sectors that rely on our products; the effects of business and economic conditions; the impact of public health crises (such as the governmental, social and economic effects of COVID-19); the effects of rising input costs, and cost changes generally; difficulties associated with integrating previously acquired companies; capacity and supply constraints or difficulties, including supply chain constraints or other challenges; difficulties associated with the availability of labor, and the risks of any labor unrest or labor shortages; risks associated with our international operations, including our substantial manufacturing operations in China; risks associated with restructuring programs or other strategic initiatives, including any difficulties in implementation or realization of the expected benefits or cost savings; product development, commercialization or technological difficulties; the regulatory and trade environment; risks associated with fluctuations in foreign currency exchange rates and interest rates; uncertainties associated with legal proceedings; the market's acceptance of the Company's new products and competitive responses to those new products; the impact of changes to U.S. legal and regulatory requirements, including tax laws, trade and tariff policies; and the risk factors detailed from time to time in the Company's Securities and Exchange Commission (“SEC”) reports, including in the “Risk Factors” section of our most recent Annual Report on Form 10-K and in subsequent reports. In light of the risks and uncertainties impacting our business, there can be no assurance that any forward-looking statement will in fact prove to be correct. We undertake no obligation to update or revise any forward-looking statements.

    Non-GAAP Financial Measures
    The Non-GAAP measures identified in this press release as well as in the supplementary information to this press release (Non-GAAP net earnings, Non-GAAP EPS, EBITDA and Adjusted EBITDA) are not measures of performance under accounting principles generally accepted in the United States of America ("GAAP").  These measures should not be considered a substitute for, and the reader should also consider, income from operations, net earnings, earnings per share and other measures of performance as defined by GAAP as indicators of our performance or profitability. Our Non-GAAP measures may not be comparable to other similarly-titled captions of other companies due to differences in the method of calculation.  We present results adjusted to exclude the effects of certain unusual or special items and their related tax impact that would otherwise be included under U.S. GAAP, to aid in comparisons with other periods.  We may use Non-GAAP financial measures to determine performance-based compensation and management believes that this information may be useful to investors.

    Website Information
    We routinely post important information for investors on our website, www.belfuse.com, in the "Investor Relations" section. We use our website as a means of disclosing material, otherwise non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

    [Financial tables follow]

    Bel Fuse Inc.
    Supplementary Information(1)
    Condensed Consolidated Statements of Operations
    (in thousands, except per share amounts)
    (unaudited)

     Three Months Ended  Year Ended 
     December 31,  December 31, 
     2022  2021  2022  2021 
                    
    Net sales$169,203  $147,142  $654,233  $543,494 
    Cost of sales 116,696   107,877   470,780   409,111 
    Gross profit 52,507   39,265   183,453   134,383 
    As a % of net sales 31.0%  26.7%  28.0%  24.7%
                    
    Research and development costs 5,857   5,590   20,238   21,891 
    Selling, general and administrative expenses 25,126   21,854   92,342   86,612 
    As a % of net sales 14.8%  14.9%  14.1%  15.9%
    Restructuring charges 3,322   526   7,322   1,201 
    Gain on sale of property -   -   (1,596)  (6,578)
                    
    Income from operations 18,202   11,295   65,147   31,257 
    As a % of net sales 10.8%  7.7%  10.0%  5.8%
                    
    Interest expense (968)  (528)  (3,379)  (3,542)
    Other income/expense, net 218   (847)  (2,709)  (388)
    Earnings before income taxes 17,452   9,920   59,059   27,327 
                    
    Provision for income taxes 3,412   1,912   6,370   2,506 
    Effective tax rate 19.6%  19.3%  10.8%  9.2%
    Net earnings$14,040  $8,008  $52,689  $24,821 
    As a % of net sales 8.3%  5.4%  8.1%  4.6%
                    
    Weighted average number of shares outstanding:               
    Class A common shares - basic and diluted 2,142   2,145   2,143   2,145 
    Class B common shares - basic and diluted 10,502   10,322   10,394   10,258 
                    
    Net earnings per common share:               
    Class A common shares - basic and diluted$1.06  $0.61  $4.01  $1.90 
    Class B common shares - basic and diluted$1.12  $0.65  $4.24  $2.02 
                    

    (1) The supplementary information included in this press release for 2022 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K with the Securities and Exchange Commission.

    Bel Fuse Inc.
    Supplementary Information(1)
    Condensed Consolidated Balance Sheets
    (in thousands, unaudited)

      December 31, 2022  December 31, 2021 
    Assets        
    Current assets:        
    Cash and cash equivalents $70,266  $61,756 
    Accounts receivable, net  107,274   87,135 
    Inventories  172,465   139,383 
    Other current assets  31,403   40,742 
    Total current assets  381,408   329,016 
    Property, plant and equipment, net  36,833   38,210 
    Right-of-use assets  21,551   21,252 
    Goodwill and other intangible assets, net  79,209   87,646 
    Other assets  41,465   35,722 
    Total assets $560,466  $511,846 
             
    Liabilities and Stockholders' Equity        
    Current liabilities:        
    Accounts payable $64,589  $65,960 
    Operating lease liability, current  5,870   6,880 
    Other current liabilities  65,845   39,172 
    Total current liabilities  136,304   112,012 
    Long-term debt  95,000   112,500 
    Operating lease liability, long-term  15,742   14,668 
    Other liabilities  51,074   63,923 
    Total liabilities  298,120   303,103 
    Stockholders' equity  262,346   208,743 
    Total liabilities and stockholders' equity $560,466  $511,846 
             

    (1) The supplementary information included in this press release for 2022 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K with the Securities and Exchange Commission.

    Bel Fuse Inc.
    Supplementary Information(1)
    Reconciliation of GAAP Net Earnings to EBITDA and Adjusted EBITDA(2)
    (in thousands, unaudited)

     Three Months Ended  Year Ended 
     December 31,  December 31, 
     2022  2021  2022  2021 
                    
    GAAP Net earnings$14,040  $8,008  $52,689  $24,821 
    Interest expense 968   528   3,379   3,542 
    Provision for income taxes 3,412   1,912   6,370   2,506 
    Depreciation and amortization 3,259   4,347   14,863   16,861 
    EBITDA$21,679  $14,795  $77,301  $47,730 
    % of net sales 12.8%  10.1%  11.8%  8.8%
                    
    Unusual or special items:               
    Gain on sale of property -   -   (1,596)  (6,578)
    Restructuring charges 3,322   526   7,322   1,201 
    Acquisition-related costs -   -   -   483 
                    
    Adjusted EBITDA$25,001  $15,321  $83,027  $42,836 
    % of net sales 14.8%  10.4%  12.7%  7.9%
                    

    (1) The supplementary information included in this press release for 2022 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K with the Securities and Exchange Commission.
    (2) In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP net earnings, Non-GAAP EPS, EBITDA and Adjusted EBITDA. We present results adjusted to exclude the effects of certain specified items and their related tax impact that would otherwise be included under GAAP, to aid in comparisons with other periods. We may use Non-GAAP financial measures to determine performance-based compensation and management believes that this information may be useful to investors.

    Bel Fuse Inc.
    Supplementary Information(1)
    Reconciliation of GAAP Measures to Non-GAAP Measures(2)
    (in thousands, unaudited)

    The following tables detail the impact that certain unusual or special items had on the Company's net earnings per common Class A and Class B basic and diluted shares ("EPS") and the line items in which these items were included on the consolidated statements of operations.

      Three Months Ended December 31, 2022  Three Months Ended December 31, 2021 
    Reconciling Items Earnings before taxes  Provision for income taxes  Net earnings  Class A EPS(3)  Class B EPS(3)  Earnings before taxes  Provision for income taxes  Net earnings  Class A EPS(3)  Class B EPS(3) 
                                             
    GAAP measures $17,452  $3,412  $14,040  $1.06  $1.12  $9,920  $1,912  $8,008  $0.61  $0.65 
    Restructuring charges  3,322   505   2,817   0.21   0.22   526   70   456   0.04   0.04 
    Non-GAAP measures $20,774  $3,917  $16,857  $1.27  $1.35  $10,446  $1,982  $8,464  $0.65  $0.69 


      Year Ended December 31, 2022  Year Ended December 31, 2021 
    Reconciling Items Earnings before taxes  Provision for income taxes  Net earnings  Class A EPS(3)  Class B EPS(3)  Earnings before taxes  Provision for income taxes  Net earnings  Class A EPS(3)  Class B EPS(3) 
                                             
    GAAP measures $59,059  $6,370  $52,689  $4.01  $4.24  $27,327  $2,506  $24,821  $1.90  $2.02 
    Items included in SG&A expenses:                                        
    Acquisition-related costs  -   -   -   -   -   483   111   372   0.03   0.03 
    Gain on sale of property  (1,596)  (367)  (1,229)  (0.09)  (0.10)  (6,578)  -   (6,578)  (0.51)  (0.53)
    Restructuring charges  7,322   1,495   5,827   0.45   0.47   1,201   189   1,012   0.08   0.08 
    Write-off of deferred financing costs  -   -   -   -   -   820   189   631   0.05   0.05 
    Non-GAAP measures $64,785  $7,498  $57,287  $4.36  $4.61  $23,253  $2,995  $20,258  $1.55  $1.65 
                                             

    (1) The supplementary information included in this press release for 2022 is preliminary and subject to change prior to the filing of our upcoming Annual Report on Form 10-K with the Securities and Exchange Commission.
    (2) In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP net earnings, Non-GAAP EPS, EBITDA and Adjusted EBITDA. We present results adjusted to exclude the effects of certain specified items and their related tax impact that would otherwise be included under GAAP, to aid in comparisons with other periods. We may use Non-GAAP financial measures to determine performance-based compensation and management believes that this information may be useful to investors.
    (3) Individual amounts of earnings per share may not agree to the total due to rounding.


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