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0000889331falseLITTELFUSE INC /DE00008893312022-11-012022-11-01

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: November 1, 2022
(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
of incorporation)		 (Commission
File Number)		 (IRS Employer
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 November 1, 2022, Littelfuse, Inc. (the “Company”) issued a press release announcing the results of its operations for the quarter ended October 1, 2022. 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:


 
 






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: November 1, 2022
By: /s/ Meenal A. Sethna
  Meenal A. Sethna
Executive Vice President and Chief Financial Officer


EX-99.1 2 q32022earningsreleaseex991.htm EX-99.1 Document

Exhibit 99.1
lfuslogo2.jpg
lfuselogo1.jpg
NEWS RELEASE
Littelfuse Inc.
8755 West Higgins Road, Suite 500
Chicago, Illinois 60631
p: (773) 628-1000 f: (773) 628-0802
www.littelfuse.com

LITTELFUSE REPORTS THIRD QUARTER RESULTS FOR 2022
Year-to-date record performance driven by global business execution
CHICAGO, November 1, 2022 - Littelfuse, Inc. (NASDAQ: LFUS), an industrial technology manufacturing company empowering a sustainable, connected, and safer world, today reported financial results for the third quarter ended October 1, 2022:

•Net sales of $658.9 million were up 22% versus the prior year period, and up 8% organically
•GAAP diluted EPS was $3.02; adjusted diluted EPS was $4.28, up 8% versus the prior year period
•Cash flow from operations was $148.1 million; free cash flow was $126.5 million, 41% higher than the prior year period
•On September 29, the company released its 2021 Sustainability Report
“In the third quarter, we continued the outstanding performance we achieved during the first half of this year, once again exceeding our expectations,” said Dave Heinzmann, Littelfuse President and Chief Executive Officer. “Our strong results were driven by growth from global business wins, additions from acquisitions, and progress on our operational excellence initiatives. Our significant achievements to date position us for ongoing long-term profitable growth within the mega themes of sustainability, connectivity, and safety.”

Fourth Quarter of 2022*
Based on current market conditions, for the fourth quarter the company expects,
•Net sales in the range of $603 to $623 million, the midpoint of which represents 11% growth over the prior year and 4% organic growth; includes an approximately 700 basis point year-over-year sales headwind from foreign exchange and last year’s extra “14th week”
•Adjusted diluted EPS in the range of $3.14 to $3.34; the midpoint of which represents 11% growth over the prior year when excluding last year’s combined $0.25 benefit from a tax holiday and “14th week”
*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.
-more-

Page 2

Dividend
•The company will pay a cash dividend on its common stock of $0.60 per share on December 8, 2022, to shareholders of record as of November 24, 2022

Conference Call and Webcast Information
Littelfuse will host a conference call on Wednesday, November 2, 2022, 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 (NASDAQ: LFUS) is an industrial technology manufacturing company empowering a sustainable, connected, and safer world. Across more than 15 countries, and with approximately 19,000 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; the severity and duration of the COVID-19 pandemic and the measures taken in response thereto and the effects of those items on the company’s business; 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's 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 January 1, 2022. 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 January 1, 2022, its Quarterly Report on Form 10-Q for the quarter ended July 2, 2022, 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 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 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.

CONTACT: Trisha Tuntland
Head of Investor Relations
(773) 628-2163

LFUS-F
###

Page 4
LITTELFUSE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands) October 1,
2022		 January 1,
2022
ASSETS
Current assets:
Cash and cash equivalents $ 474,003  $ 478,473 
Short-term investments 79  28 
Trade receivables, less allowances of $83,872 and $59,232 at October 1, 2022 and January 1, 2022, respectively 339,729  275,192 
Inventories 536,026  445,671 
Prepaid income taxes and income taxes receivable 5,833  2,035 
Prepaid expenses and other current assets 75,643  68,812 
Total current assets 1,431,313  1,270,211 
Net property, plant, and equipment 458,234  437,889 
Intangible assets, net of amortization 605,310  407,126 
Goodwill 1,168,458  929,790 
Investments 23,770  39,211 
Deferred income taxes 10,461  13,127 
Right of use lease assets, net 46,175  29,616 
Other long-term assets 34,207  24,734 
Total assets $ 3,777,928  $ 3,151,704 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 219,447  $ 222,039 
Accrued liabilities 177,127  159,689 
Accrued income taxes 42,016  27,905 
Current portion of long-term debt 10,220  25,000 
Total current liabilities 448,810  434,633 
Long-term debt, less current portion 975,610  611,897 
Deferred income taxes 116,595  81,289 
Accrued post-retirement benefits 36,842  37,037 
Non-current operating lease liabilities 35,778  22,305 
Other long-term liabilities 75,402  71,023 
Total equity 2,088,891  1,893,520 
Total liabilities and equity $ 3,777,928  $ 3,151,704 


Page 5
LITTELFUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(Unaudited)
  Three Months Ended Nine Months Ended
(in thousands, except per share data) October 1,
2022		 September 25,
2021		 October 1,
2022		 September 25,
2021
Net sales $ 658,880  $ 539,581  $ 1,900,646  $ 1,526,863 
Cost of sales 402,059  325,009  1,122,258  954,429 
Gross profit 256,821  214,572  778,388  572,434 
Selling, general, and administrative expenses 90,219  67,468  258,820  199,071 
Research and development expenses 25,752  15,779  68,796  46,912 
Amortization of intangibles 15,567  10,446  39,883  31,608 
Restructuring, impairment, and other charges 3,413  772  4,265  1,998 
Total operating expenses 134,951  94,465  371,764  279,589 
Operating income 121,870  120,107  406,624  292,845 
Interest expense 8,399  4,602  17,069  13,901 
Foreign exchange loss 18,191  3,154  40,051  8,315 
Other (income) expense, net (698) (1,240) 9,789  (10,867)
Income before income taxes 95,978  113,591  339,715  281,496 
Income taxes 20,510  21,537  59,713  49,634 
Net income $ 75,468  $ 92,054  $ 280,002  $ 231,862 
Earnings per share:    
Basic $ 3.05  $ 3.74  $ 11.32  $ 9.43 
Diluted $ 3.02  $ 3.69  $ 11.21  $ 9.31 
Weighted-average shares and equivalent shares outstanding:
Basic 24,755  24,622  24,726  24,582 
Diluted 24,988  24,926  24,986  24,904 
Comprehensive income $ 47,280  $ 87,100  $ 218,262  $ 227,491 



Page 6
LITTELFUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
  Nine Months Ended
(in thousands) October 1, 2022 September 25, 2021
OPERATING ACTIVITIES    
Net income $ 280,002  $ 231,862 
Adjustments to reconcile net income to net cash provided by operating activities: 183,942  96,824 
Changes in operating assets and liabilities:
Trade receivables (56,431) (83,793)
Inventories (83,803) (71,232)
Accounts payable (3,838) 53,945 
Accrued liabilities and income taxes (4,399) 23,294 
Prepaid expenses and other assets (2,034) (10,236)
Net cash provided by operating activities 313,439  240,664 
INVESTING ACTIVITIES    
Acquisitions of businesses, net of cash acquired (532,772) (110,646)
Purchases of property, plant, and equipment (77,773) (57,526)
Net proceeds from sale of property, plant and equipment, and other 565  2,561 
Net cash used in investing activities (609,980) (165,611)
FINANCING ACTIVITIES    
Net proceeds (payments) of credit facility 373,125  (30,000)
Cash dividends paid (41,055) (36,648)
All other cash provided by financing activities (10,147) 5,771 
Net cash provided by (used in) financing activities 321,923  (60,877)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash (31,963) (5,832)
(Decrease) increase in cash, cash equivalents, and restricted cash (6,581) 8,344 
Cash, cash equivalents, and restricted cash at beginning of period 482,836  687,525 
Cash, cash equivalents, and restricted cash at end of period $ 476,255  $ 695,869 


Page 7

LITTELFUSE, INC.
NET SALES AND OPERATING INCOME BY SEGMENT
(Unaudited)
  Third Quarter Year-to-Date
(in thousands) 2022 2021 %
Growth /(Decline)		 2022 2021 %
Growth
Net sales
Electronics $ 397,629  $ 347,240  14.5  % $ 1,121,626  $ 959,122  16.9  %
Transportation 181,735  124,415  46.1  % 548,266  386,262  41.9  %
Industrial 79,516  67,926  17.1  % 230,754  181,479  27.2  %
Total net sales $ 658,880  $ 539,581  22.1  % $ 1,900,646  $ 1,526,863  24.5  %
Operating income
Electronics $ 113,140  $ 100,524  12.6  % $ 339,675  $ 230,283  47.5  %
Transportation 12,987  15,806  (17.8) % 57,604  55,380  4.0  %
Industrial 12,178  6,571  85.3  % 39,968  18,452  116.6  %
Other(a) (16,435) (2,794) N.M. (30,623) (11,270) N.M.
Total operating income $ 121,870  $ 120,107  1.5  % $ 406,624  $ 292,845  38.9  %
Operating Margin 18.5  % 22.3  % 21.4  % 19.2  %
Interest expense 8,399  4,602  17,069  13,901 
Foreign exchange loss 18,191  3,154  40,051  8,315 
Other (income) expense, net (698) (1,240) 9,789  (10,867)
Income before income taxes $ 95,978  $ 113,591  (15.5) % $ 339,715  $ 281,496  20.7  %

(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) 2022 2021 %
Growth /(Decline)		 2022 2021 %
Growth /(Decline)
Operating Margin
Electronics 28.5  % 28.9  % (0.4) % 30.3  % 24.0  % 6.3  %
Transportation 7.1  % 12.7  % (5.6) % 10.5  % 14.3  % (3.8) %
Industrial 15.3  % 9.7  % 5.6  % 17.3  % 10.2  % 7.1  %


Page 8

LITTELFUSE, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(In millions of USD except per share amounts - unaudited)
Non-GAAP EPS reconciliation
Q3-22 Q3-21 YTD-22 YTD-21
GAAP diluted EPS $ 3.02  $ 3.69  $ 11.21  $ 9.31 
EPS impact of Non-GAAP adjustments (below) 1.26  0.26  2.32  0.73 
Adjusted diluted EPS $ 4.28  $ 3.95  $ 13.53  $ 10.04 
Non-GAAP adjustments - (income) / expense
Q3-22 Q3-21 YTD-22 YTD-21
Acquisition-related and integration costs (a) $ 6.2  $ 2.0  $ 14.8  $ 3.4 
Purchase accounting inventory adjustments (b) 6.8  —  11.6  6.8 
Restructuring, impairment and other charges (c) 3.4  0.8  4.3  2.0 
Gain on sale of fixed assets (d) —  —  —  (0.9)
Non-GAAP adjustments to operating income 16.4  2.8  30.7  11.3 
Other expense (income), net (e) —  0.1  (0.5) 0.6 
Non-operating foreign exchange loss 18.2  3.2  40.1  8.3 
Non-GAAP adjustments to income before income taxes 34.6  6.1  70.3  20.2 
Income taxes (f) 3.0  (0.4) 12.2  2.1 
Non-GAAP adjustments to net income $ 31.6  $ 6.5  $ 58.1  $ 18.1 
Total EPS impact $ 1.26  $ 0.26  $ 2.32  $ 0.73 
Adjusted operating margin / Adjusted EBITDA reconciliation
Q3-22 Q3-21 YTD-22 YTD-21
Net sales $ 658.9  $ 539.6  $ 1,900.6  $ 1,526.9 
GAAP operating income $ 121.9  $ 120.1  $ 406.6  $ 292.8 
Add back non-GAAP adjustments 16.4  2.8  30.7  11.3 
Adjusted operating income $ 138.3  $ 122.9  $ 437.3  $ 304.1 
Adjusted operating margin 21.0  % 22.8  % 23.0  % 19.9  %
Add back amortization 15.6  10.4  39.9  31.6 
Add back depreciation 17.0  14.2  48.3  41.4 
Adjusted EBITDA $ 170.9  $ 147.5  $ 525.5  $ 377.1 
Adjusted EBITDA margin 25.9  % 27.3  % 27.6  % 24.7  %
Adjusted EBITDA by Segment Q3-22 Q3-21
Electronics Transportation Industrial Electronics Transportation Industrial
GAAP operating income $ 113.1  $ 13.0  $ 12.2  $ 100.5  $ 15.8  $ 6.6 
Add:
Add back amortization 9.7  4.7  1.2  6.8  2.4  1.2 
Add back depreciation 9.4  6.7  1.0  8.7  4.6  0.8 
Adjusted EBITDA $ 132.2  $ 24.4  $ 14.4  $ 116.0  $ 22.9  $ 8.6 
Adjusted EBITDA Margin 33.3  % 13.4  % 18.1  % 33.4  % 18.4  % 12.7  %


Page 9
Adjusted EBITDA by Segment YTD-22 YTD-21
Electronics Transportation Industrial Electronics Transportation Industrial
GAAP operating income $ 339.7  $ 57.6  $ 40.0  $ 230.3  $ 55.4  $ 18.5 
Add:
Add back amortization 22.5  13.7  3.7  $ 21.0  $ 7.1  $ 3.5 
Add back depreciation 26.5  19.0  2.9  $ 25.0  $ 14.0  $ 2.5 
Adjusted EBITDA $ 388.7  $ 90.3  $ 46.5  $ 276.3  $ 76.5  $ 24.5 
Adjusted EBITDA Margin 34.7  % 16.5  % 20.1  % 28.8  % 19.8  % 13.5  %

Net sales reconciliation Q3-22 vs. Q3-21
Electronics Transportation Industrial Total
Net sales growth 15  % 46  % 17  % 22  %
Less:
Acquisitions 11  % 49  % —  % 18  %
FX impact (3) % (7) % (1) % (4) %
Organic net sales growth 7  % 4  % 18  % 8  %
Net sales reconciliation YTD-22 vs. YTD-21
Electronics Transportation Industrial Total
Net sales growth 17  % 42  % 27  % 24  %
Less:
Acquisitions 4  % 46  % 5  % 14  %
FX impact (3) % (5) % (1) % (3) %
Organic net sales growth 16  % 1  % 23  % 13  %
Income tax reconciliation
Q3-22 Q3-21 YTD-22 YTD-21
Income taxes $ 20.5  $ 21.5  $ 59.7  $ 49.6 
Effective rate 21.4  % 19.0  % 17.6  % 17.6  %
Non-GAAP adjustments - income taxes 3.0  (0.4) 12.2  2.1 
Adjusted income taxes $ 23.4  $ 21.1  $ 71.9  $ 51.7 
Adjusted effective rate 18.0  % 17.6  % 17.5  % 17.1  %
Free cash flow reconciliation
Q3-22 Q3-21 YTD-22 YTD-21
Net cash provided by operating activities $ 148.1  $ 114.3  $ 313.4  $ 240.7 
Less: Purchases of property, plant and equipment (21.7) (24.9) (77.8) (57.5)
Free cash flow $ 126.5  $ 89.4  $ 235.7  $ 183.2 

Page 10
Consolidated Total Debt
As of October 1, 2022
Consolidated Total Debt $ 985.8 
Unamortized debt issuance costs 5.0 
Consolidated funded indebtedness 990.8
Cash held in U.S. (up to $400 million) 115.9
Net debt $ 874.9 
Consolidated EBITDA
Twelve Months Ended October 1, 2022
Net Income $ 331.9 
Interest expense 21.7 
Income taxes 67.3 
Depreciation 62.8 
Amortization 51.0 
Non-cash additions:
Stock-based compensation expense 23.3 
Non-cash pension settlement charge 19.9 
Purchase accounting inventory step-up charge 13.1 
Unrealized loss on investments 14.6 
Other 126.4 
Consolidated EBITDA (1) $ 732.0 
Consolidated Net Leverage Ratio (as defined in the Credit Agreement) * 1.2x
* Our Credit Agreement and Private Placement Note with maturities ranging from 2023 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 cost of sales.
(c) reflected in restructuring, impairment and other charges.
(d) reflected in SG&A, a total year-to-date gain of $0.9 million from the sale of a building within the Electronics segment 2021.
(e) 2022 year-to-date amount included $0.5 million gain from the sale of a building within Transportation segment. Q3 2021 included a $0.1 million charge for an asset retirement obligation related to the disposal of a business in 2019. 2021 year-to-date amount included $0.5 million of impairment charges on certain other investments.
(f) reflected the tax impact associated with the non-GAAP adjustments, and 2022 year-to-date amount include the one-time net benefit of $7.2 million that resulted from the dissolution of one of the Company’s affiliates.

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EX-99.2 3 q3-22earningsreleaseslid.htm EX-99.2 q3-22earningsreleaseslid
1 Q3 2022 EARNINGS RELEASE November 1, 2022

 
2Littelfuse, Inc. © 2022 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; the severity and duration of the COVID-19 pandemic and the measures taken in response thereto and the effects of those items on the company’s business; 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 January 1, 2022. 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 January 1, 2022, 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 growth, adjusted operating margin, adjusted EBITDA margin, adjusted diluted earnings per share, adjusted effective tax rate, and free cash flow. 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 and ability to generate cash 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. © 2022 Q3 2022 & RECENT HIGHLIGHTS  Continued outperformance, driven by global business wins, acquisitions & operational execution  Q3: Delivered strong results above expectations  YoY: Revenue +22%; Organic +8% despite FX headwinds  Delivered margins & earnings growth above strategic long-term targets  Adjusted Operating Margin 21%  Adjusted Diluted EPS +8%  Record performance year-to-date  YoY: Revenue +24%; Adjusted Diluted EPS +35%  Published 2021 Sustainability Report

 
5Littelfuse, Inc. © 2022 Structural Growth Themes Sustainability Connectivity Safety 2021 – 2025 GROWTH STRATEGY EMPOWERING A SUSTAINABLE, CONNECTED, AND SAFER WORLD Our Growth Drivers Content & Share Gains Strategic Acquisitions High-Growth Markets & Geographies Outcomes Double-Digit Revenue Growth Best-in-Class Profitability Top-Tier Shareholder Returns

 
6Littelfuse, Inc. © 2022 Progress:  Enterprise-wide Diversity, Inclusion & Belonging Advisory Council  Multiple employee resource groups  Company mentoring initiatives to support associate development COMMITMENT TO SUSTAINABILITY DIVERSE PEOPLE. BOLD SOLUTIONS. SUSTAINED SUCCESS. Environmental Social Governance Progress:  Global programs to reduce energy, water, emissions & waste  Product Environmental Compliance Steering Committee  Direct material supplier sustainability self-assessments 2021 SUSTAINABILITY REPORT Goal: Targeting Greenhouse Gas (GHG) reduction of 38% by 2035 Goals: Increasing global female leadership to at least 25%, and U.S. Black / African American employees to at least 5% by 2026 Goals: Board oversight of sustainability program & robust training curriculum Top Equal Pay Employer​ 2021 Kaunas, Lithuania Best Employer 2021 Greater Suzhou, China available on Littelfuse.com Progress:  Oversight of sustainability program by Nominating & Governance Committee  Senior leader compensation tied to ESG performance  21 world-wide training campaigns Framework Alignment :

 
7Littelfuse, Inc. © 2022 INDUSTRIAL END MARKETS POSITIONED FOR CONTINUED GROWTH  Expanding leadership with customers' focus on intensifying sustainability & safety  Technical expertise & portfolio breadth secures significant new business in:  Energy storage  Alternative energy  Commercial kitchens  Industrial motor drives  HVAC  Automated test equipment  Growth driven by engineering capabilities & differentiated innovation Q3 2022 Highlights

 
8Littelfuse, Inc. © 2022 TRANSPORTATION END MARKETS EXTENDING OUR LEADERSHIP POSITION Q3 2022 Highlights  Leveraging company-wide automotive technology portfolio & market trends to increase passenger vehicle leadership & content  Double-digit content outgrowth*  Increased average content across vehicles to ~$7.00  New business pipeline & expanding portfolio support continued double-digit outgrowth  Enabling customers' transition to electrification  Passenger vehicles - on & off-board charging, BMS**  Commercial vehicles – electrification of trucks, 2 & 3 wheelers in Asia  Product innovation & electronification driving content opportunities - ADAS, infotainment, comfort & convenience *2019-2022 **BMS = Battery management system

 
9Littelfuse, Inc. © 2022 ELECTRONICS END MARKETS LEVERAGING OUR LEADERSHIP Q3 2022 Highlights  Broader solutions & increased design-in activity within connectivity, sustainability & safety themes driving new business wins in:  Data centers  Building automation systems  Battery power for power tools & e-bicycles  Medical infusion pump  C&K Switches expands technology portfolio, enhances market presence & strengthens distribution partnerships

 
FINANCIAL UPDATE Meenal Sethna, EVP & CFO

 
11Littelfuse, Inc. © 2022 Highlights  Financial performance above high end of guidance on sales & earnings  Revenue +22% vs PY, +8% organic  GAAP operating margin 18.5%; Adjusted operating margin 21%  Continuation of positive price/cost  Margins solidly above strategic long-term target  Adjusted EPS +8% vs PY  Effective tax rate: GAAP 21.4%; Adjusted 18.0%  Operating cash flow $148m; Free cash flow $127m, 41% growth over PY Q3 2022 FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE GAAP EPS $3.69 $3.02 Adj. EPS $3.95 $4.28 Adj. EBITDA% 27.3% 25.9% $540 $659 Q3-21 Q3-22 Revenue (in millions) See appendix for GAAP to non-GAAP reconciliation

 
12Littelfuse, Inc. © 2022 Highlights  Revenue growth +15% / organic +7%  Ongoing robust operating margins  Positive price/cost, volume, productivity initiatives  POS / end market demand solid across breadth of markets  Softness in consumer-oriented markets & ChinaOp Margin 28.9% 28.5% Adj. EBITDA% 33.4% 33.3% $347 $398 Q3-21 Q3-22 (in millions) Q3 2022 ELECTRONICS SEGMENT FINANCIAL PERFORMANCE Revenue See appendix for GAAP to non-GAAP reconciliation

 
13Littelfuse, Inc. © 2022 Highlights  Revenue growth +46% / organic +4%  Commercial vehicle +5% organic & outperformance across Carling business  Passenger vehicle +3% organic; ongoing inventory unwind at Tier 1’s  ~200bps F/X headwind to margins  Initiated cost reduction actions; Expect go- forward margin improvements Op Margin 12.7% 7.1% Adj. EBITDA% 18.4% 13.4% $124 $182 Q3-21 Q3-22 (in millions) Q3 2022 TRANSPORTATION SEGMENT FINANCIAL PERFORMANCE Revenue See appendix for GAAP to non-GAAP reconciliation

 
14Littelfuse, Inc. © 2022 Highlights  Revenue growth +17% / organic +18%  YTD revenue growth +27%  Broad-based end market strength  >500bps margin expansion  Price realization, manufacturing & supply chain improvements, faster than expected recovery from China COVID shutdowns Op Margin 9.7% 15.3% Adj. EBITDA% 12.7% 18.1% $68 $80 Q3-21 Q3-22 (in millions) Q3 2022 INDUSTRIAL SEGMENT FINANCIAL PERFORMANCE Revenue See appendix for GAAP to non-GAAP reconciliation

 
15Littelfuse, Inc. © 2022 Q4 2022 GUIDANCE Highlights  Q4 sales typically sequentially down mid-single  Sales +11% vs PY / +4% organic  (-7%) f/x & PY 14th week  EPS +11% vs PY, excl. $0.25 of PY one-time benefits (tax holiday & 14th week)  ~(150) bps operating margin dilution from recent acquisitions  Recent Electronics book to bill below 1.0x  Some channel inventory rebalancing  Continuation of Tier 1 auto inventory unwind $553 Q4-21 Q4-22 Revenue $603 - $623 (in millions) See appendix for GAAP to non-GAAP reconciliation GAAP EPS $2.08 * Adj. EPS $3.16 $3.14 - $3.34

 
16Littelfuse, Inc. © 2022 FULL YEAR CONSIDERATIONS/EXPECTATIONS 2022:  Expect to remain positive price/cost for full year in current market conditions  ~$56M non-cash amortization expense  ~$26M interest expense  Adjusted effective tax rate ~18%  ~100% free cash flow conversion; ~$105M – $115M capital expenditures 2023:  ~$50M sales headwind from f/x at current rates; Earnings impact ~neutral  ~$62M non-cash amortization expense  ~$40M interest expense at current rates

 
17Littelfuse, Inc. © 2022 Top-tier performance to date; Organic growth trajectory combined with strategy-led acquisitions continue to strengthen & diversify business Net Sales Growth +24% +13% Organic Adj. Operating Margin 23.0% +300 bps GAAP EPS $11.21 Adj. Diluted EPS $13.53 +35% Q3 YTD 2022 HIGHLIGHTS VS PRIOR YEAR See appendix for GAAP to non-GAAP reconciliation

 
18Littelfuse, Inc. © 2022 RESILIENT GROWTH STRATEGY & BUSINESS MODEL $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 $2,250 $2,500 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22F EP S Sa le s Revenue (M$) Adjusted EPS Sustained Double-Digit Sales & Earnings Growth  Expanded market leadership & profitability  Playbook to successfully manage through dynamic environments  Prioritizing long-term strategic investments & managing cost structure 10-yr CAGR* Sales +14% Adj EPS +17% 15-yr CAGR* Sales +11% Adj EPS +17% 5-yr CAGR* Sales +16% Adj EPS +17% *15-yr: 2007 - 2022F; 10-yr: 2012 - 2022F; 5-yr: 2017 - 2022F

 
19Littelfuse, Inc. © 2021 Q&A

 
20Littelfuse, Inc. © 2021 APPENDIX

 
21Littelfuse, Inc. © 2022 SUPPLEMENTAL FINANCIAL INFORMATION

 
22Littelfuse, Inc. © 2022 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D

 
23Littelfuse, Inc. © 2022 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D

 
24Littelfuse, Inc. © 2022 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D