Delaware | 0-20388 | 36-3795742 | ||||||
(State of other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
☐ | 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)) |
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 |
Item 2.02 | Results of Operations and Financial Condition |
Item 7.01 | Regulation FD Disclosure |
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits | ||||
The following exhibits are furnished with this Form 8-K: | |||||
Littelfuse, Inc. | |||||
Date: February 1, 2023 | By: /s/ Meenal A. Sethna |
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Meenal A. Sethna Executive Vice President and Chief Financial Officer |
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NEWS RELEASE |
Littelfuse Inc.
8755 West Higgins Road, Suite 500
Chicago, Illinois 60631
p: (773) 628-1000 f: (773) 628-0802
www.littelfuse.com
|
(in thousands) | December 31, 2022 | January 1, 2022 | |||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 562,588 | $ | 478,473 | |||||||
Short-term investments | 84 | 28 | |||||||||
Trade receivables, less allowances of $83,562 and $59,232, respectively | 306,578 | 275,192 | |||||||||
Inventories | 547,690 | 445,671 | |||||||||
Prepaid income taxes and income taxes receivable | 7,215 | 2,035 | |||||||||
Prepaid expenses and other current assets | 87,641 | 68,812 | |||||||||
Total current assets | 1,511,796 | 1,270,211 | |||||||||
Net property, plant, and equipment | 481,110 | 437,889 | |||||||||
Intangible assets, net of amortization | 593,970 | 407,126 | |||||||||
Goodwill | 1,186,922 | 929,790 | |||||||||
Investments | 24,121 | 39,211 | |||||||||
Deferred income taxes | 14,367 | 13,127 | |||||||||
Right of use lease assets, net | 57,382 | 29,616 | |||||||||
Other assets | 34,066 | 24,734 | |||||||||
Total assets | $ | 3,903,734 | $ | 3,151,704 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 208,571 | $ | 222,039 | |||||||
Accrued liabilities | 187,057 | 159,689 | |||||||||
Accrued income taxes | 41,793 | 27,905 | |||||||||
Current portion of long-term debt | 134,874 | 25,000 | |||||||||
Total current liabilities | 572,295 | 434,633 | |||||||||
Long-term debt, less current portion | 866,623 | 611,897 | |||||||||
Deferred income taxes | 100,230 | 81,289 | |||||||||
Accrued post-retirement benefits | 28,037 | 37,037 | |||||||||
Non-current lease liabilities | 45,661 | 22,305 | |||||||||
Other long-term liabilities | 79,510 | 71,023 | |||||||||
Total equity | 2,211,378 | 1,893,520 | |||||||||
Total liabilities and equity | $ | 3,903,734 | $ | 3,151,704 |
Three Months Ended | Fiscal Year Ended | |||||||||||||||||||||||||
(in thousands, except per share data) | December 31, 2022 | January 1, 2022 | December 31, 2022 | January 1, 2022 | ||||||||||||||||||||||
Net sales | $ | 613,251 | $ | 553,065 | $ | 2,513,897 | $ | 2,079,928 | ||||||||||||||||||
Cost of sales | 384,726 | 353,573 | 1,506,984 | 1,308,002 | ||||||||||||||||||||||
Gross profit | 228,525 | 199,492 | 1,006,913 | 771,926 | ||||||||||||||||||||||
Selling, general, and administrative expenses | 85,993 | 75,667 | 344,813 | 275,457 | ||||||||||||||||||||||
Research and development expenses | 26,806 | 19,747 | 95,602 | 65,940 | ||||||||||||||||||||||
Amortization of intangibles | 15,812 | 11,121 | 55,695 | 42,729 | ||||||||||||||||||||||
Restructuring, impairment, and other charges | 5,712 | 160 | 9,977 | 2,158 | ||||||||||||||||||||||
Total operating expenses | 134,323 | 106,695 | 506,087 | 386,284 | ||||||||||||||||||||||
Operating income | 94,202 | 92,797 | 500,826 | 385,642 | ||||||||||||||||||||||
Interest expense | 9,147 | 4,626 | 26,216 | 18,527 | ||||||||||||||||||||||
Foreign exchange (gain) loss | (15,692) | 8,843 | 24,359 | 17,158 | ||||||||||||||||||||||
Other (income) expense, net | (2,582) | 19,799 | 7,207 | 8,932 | ||||||||||||||||||||||
Income before income taxes | 103,329 | 59,529 | 443,044 | 341,025 | ||||||||||||||||||||||
Income taxes | 10,025 | 7,585 | 69,738 | 57,219 | ||||||||||||||||||||||
Net income | $ | 93,304 | $ | 51,944 | $ | 373,306 | $ | 283,806 | ||||||||||||||||||
Income per share: | ||||||||||||||||||||||||||
Basic | $ | 3.77 | $ | 2.11 | $ | 15.09 | $ | 11.54 | ||||||||||||||||||
Diluted | $ | 3.74 | $ | 2.08 | $ | 14.94 | $ | 11.38 | ||||||||||||||||||
Weighted-average shares and equivalent shares outstanding: | ||||||||||||||||||||||||||
Basic | 24,758 | 24,660 | 24,734 | 24,603 | ||||||||||||||||||||||
Diluted | 24,978 | 25,001 | 24,986 | 24,932 | ||||||||||||||||||||||
Comprehensive income | 139,811 | 74,009 | 351,005 | 301,500 |
Year Ended | |||||||||||
(in thousands) | December 31, 2022 | January 1, 2022 | |||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | 373,306 | $ | 283,806 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities | 188,871 | 147,276 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Trade receivables | (19,334) | (10,234) | |||||||||
Inventories | (89,235) | (104,555) | |||||||||
Accounts payable | (22,403) | 40,481 | |||||||||
Accrued liabilities and income taxes | (9,756) | 30,793 | |||||||||
Prepaid expenses and other assets | (1,731) | (14,223) | |||||||||
Net cash provided by operating activities | 419,718 | 373,344 | |||||||||
INVESTING ACTIVITIES | |||||||||||
Acquisitions of businesses, net of cash acquired | (532,670) | (423,633) | |||||||||
Purchases of property, plant, and equipment | (104,341) | (90,562) | |||||||||
Net proceeds from sale of property, plant, and equipment, and other | 676 | 15,425 | |||||||||
Other | (62) | (390) | |||||||||
Net cash used in investing activities | (636,397) | (499,160) | |||||||||
FINANCING ACTIVITIES | |||||||||||
Net proceeds (payments) of credit facility and senior notes | 371,250 | (32,619) | |||||||||
Cash dividends paid | (55,911) | (49,730) | |||||||||
All other cash (used in) provided by financing activities | (5,137) | 13,365 | |||||||||
Net cash provided by (used in) financing activities | 310,202 | (68,984) | |||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (11,420) | (9,889) | |||||||||
Increase (decrease) in cash, cash equivalents, and restricted cash | 82,103 | (204,689) | |||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 482,836 | 687,525 | |||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 564,939 | $ | 482,836 |
Fourth Quarter | Year-to-Date | |||||||||||||||||||||||||||||||||||||
(in thousands) | 2022 | 2021 | % Growth /(Decline) |
2022 | 2021 | % Growth /(Decline) |
||||||||||||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||||||||||||||
Electronics | $ | 371,193 | $ | 341,622 | 8.7 | % | $ | 1,492,819 | $ | 1,300,744 | 14.8 | % | ||||||||||||||||||||||||||
Transportation | 167,874 | 141,796 | 18.4 | % | 716,140 | 528,058 | 35.6 | % | ||||||||||||||||||||||||||||||
Industrial | 74,184 | 69,647 | 6.5 | % | 304,938 | 251,126 | 21.4 | % | ||||||||||||||||||||||||||||||
Total net sales | $ | 613,251 | $ | 553,065 | 10.9 | % | $ | 2,513,897 | $ | 2,079,928 | 20.9 | % | ||||||||||||||||||||||||||
Operating income | ||||||||||||||||||||||||||||||||||||||
Electronics | $ | 91,941 | $ | 79,350 | 15.9 | % | $ | 431,616 | $ | 309,633 | 39.4 | % | ||||||||||||||||||||||||||
Transportation | 5,935 | 10,599 | (44.0) | % | 63,539 | 65,979 | (3.7) | % | ||||||||||||||||||||||||||||||
Industrial | 8,885 | 4,169 | 113.1 | % | 48,853 | 22,621 | 116.0 | % | ||||||||||||||||||||||||||||||
Other (a) | (12,559) | (1,321) | N.M. | (43,182) | (12,591) | N.M. | ||||||||||||||||||||||||||||||||
Total operating income | $ | 94,202 | $ | 92,797 | 1.5 | % | $ | 500,826 | $ | 385,642 | 29.9 | % | ||||||||||||||||||||||||||
Operating Margin | 15.4 | % | 16.8 | % | 19.9 | % | 18.5 | % | ||||||||||||||||||||||||||||||
Interest expense | 9,147 | 4,626 | 26,216 | 18,527 | ||||||||||||||||||||||||||||||||||
Foreign exchange (gain) loss | (15,692) | 8,843 | 24,359 | 17,158 | ||||||||||||||||||||||||||||||||||
Other (income) expense, net | (2,582) | 19,799 | 7,207 | 8,932 | ||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 103,329 | $ | 59,529 | 73.6 | % | $ | 443,044 | $ | 341,025 | 29.9 | % |
Fourth Quarter | Year-to-Date | |||||||||||||||||||||||||||||||||||||
(in thousands) | 2022 | 2021 | % Growth /(Decline) |
2022 | 2021 | % Growth /(Decline) |
||||||||||||||||||||||||||||||||
Operating Margin | ||||||||||||||||||||||||||||||||||||||
Electronics | 24.8 | % | 23.2 | % | 1.6 | % | 28.9 | % | 23.8 | % | 5.1 | % | ||||||||||||||||||||||||||
Transportation | 3.5 | % | 7.5 | % | (4.0) | % | 8.9 | % | 12.5 | % | (3.6) | % | ||||||||||||||||||||||||||
Industrial | 12.0 | % | 6.0 | % | 6.0 | % | 16.0 | % | 9.0 | % | 7.0 | % |
Non-GAAP EPS reconciliation | ||||||||||||||||||||||||||
Q4-22 | Q4-21 | YTD-22 | YTD-21 | |||||||||||||||||||||||
GAAP diluted EPS | $ | 3.74 | $ | 2.08 | $ | 14.94 | $ | 11.38 | ||||||||||||||||||
EPS impact of Non-GAAP adjustments (below) | (0.40) | 1.08 | 1.93 | 1.81 | ||||||||||||||||||||||
Adjusted diluted EPS | $ | 3.34 | $ | 3.16 | $ | 16.87 | $ | 13.19 |
Non-GAAP adjustments - (income) / expense | ||||||||||||||||||||||||||
Q4-22 | Q4-21 | YTD-22 | YTD-21 | |||||||||||||||||||||||
Acquisition-related and integration costs (a) | $ | 2.8 | $ | 3.6 | $ | 17.6 | $ | 7.0 | ||||||||||||||||||
Purchase accounting inventory adjustments (b) | 4.0 | 1.6 | 15.6 | 8.4 | ||||||||||||||||||||||
Restructuring, impairment and other charges (c) | 5.7 | 0.2 | 10.0 | 2.2 | ||||||||||||||||||||||
Gain on sale of fixed assets (d) | — | (4.1) | — | (5.0) | ||||||||||||||||||||||
Non-GAAP adjustments to operating income | 12.5 | 1.3 | 43.2 | 12.6 | ||||||||||||||||||||||
Other expense (income), net (e) | — | 20.8 | (0.5) | 21.4 | ||||||||||||||||||||||
Non-operating foreign exchange (gain) loss | (15.7) | 8.9 | 24.4 | 17.2 | ||||||||||||||||||||||
Non-GAAP adjustments to income before income taxes | (3.2) | 31.0 | 67.1 | 51.2 | ||||||||||||||||||||||
Income taxes (f) | 6.8 | 3.9 | 19.0 | 6.0 | ||||||||||||||||||||||
Non-GAAP adjustments to net income | $ | (10.0) | $ | 27.1 | $ | 48.1 | $ | 45.2 | ||||||||||||||||||
Total EPS impact | $ | (0.40) | $ | 1.08 | $ | 1.93 | $ | 1.81 |
Adjusted operating margin / Adjusted EBITDA reconciliation | ||||||||||||||||||||||||||
Q4-22 | Q4-21 | YTD-22 | YTD-21 | |||||||||||||||||||||||
Net sales | $ | 613.3 | $ | 553.1 | $ | 2,513.9 | $ | 2,079.9 | ||||||||||||||||||
GAAP operating income | $ | 94.2 | $ | 92.8 | $ | 500.8 | $ | 385.6 | ||||||||||||||||||
Add back non-GAAP adjustments | 12.5 | 1.3 | 43.2 | 12.6 | ||||||||||||||||||||||
Adjusted operating income | $ | 106.7 | $ | 94.1 | $ | 544.0 | $ | 398.2 | ||||||||||||||||||
Adjusted operating margin | 17.4 | % | 17.0 | % | 21.6 | % | 19.1 | % | ||||||||||||||||||
Add back amortization | 15.8 | 11.1 | 55.7 | 42.7 | ||||||||||||||||||||||
Add back depreciation | 16.7 | 14.5 | 65.0 | 55.9 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 139.2 | $ | 119.7 | $ | 664.7 | $ | 496.8 | ||||||||||||||||||
Adjusted EBITDA margin | 22.7 | % | 21.6 | % | 26.4 | % | 23.9 | % |
Adjusted EBITDA by Segment | Q4-22 | Q4-21 | ||||||||||||||||||||||||||||||||||||
Electronics | Transportation | Industrial | Electronics | Transportation | Industrial | |||||||||||||||||||||||||||||||||
GAAP operating income | $ | 91.9 | $ | 5.9 | $ | 8.9 | $ | 79.4 | $ | 10.6 | $ | 4.2 | ||||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||||||||
Add back amortization | 10.2 | 4.4 | 1.2 | 6.9 | 3.0 | 1.2 | ||||||||||||||||||||||||||||||||
Add back depreciation | 9.0 | 6.7 | 1.0 | 8.6 | 4.9 | 1.0 | ||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 111.1 | $ | 17.0 | $ | 11.1 | $ | 94.9 | $ | 18.5 | $ | 6.4 | ||||||||||||||||||||||||||
Adjusted EBITDA Margin | 29.9 | % | 10.1 | % | 14.9 | % | 27.8 | % | 13.0 | % | 9.1 | % |
Adjusted EBITDA by Segment | YTD-22 | YTD-21 | ||||||||||||||||||||||||||||||||||||
Electronics | Transportation | Industrial | Electronics | Transportation | Industrial | |||||||||||||||||||||||||||||||||
GAAP operating income | $ | 431.6 | $ | 63.5 | $ | 48.9 | $ | 309.6 | $ | 66.0 | $ | 22.6 | ||||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||||||||
Add back amortization | 32.7 | 18.1 | 4.9 | $ | 27.9 | $ | 10.1 | $ | 4.7 | |||||||||||||||||||||||||||||
Add back depreciation | 35.5 | 25.6 | 3.9 | $ | 33.6 | $ | 18.9 | $ | 3.4 | |||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 499.8 | $ | 107.2 | $ | 57.7 | $ | 371.1 | $ | 95.0 | $ | 30.7 | ||||||||||||||||||||||||||
Adjusted EBITDA Margin | 33.5 | % | 15.0 | % | 18.9 | % | 28.5 | % | 18.0 | % | 12.2 | % |
Net sales reconciliation | Q4-22 vs. Q4-21 | |||||||||||||||||||||||||
Electronics | Transportation | Industrial | Total | |||||||||||||||||||||||
Net sales growth | 9 | % | 18 | % | 7 | % | 11 | % | ||||||||||||||||||
Less: | ||||||||||||||||||||||||||
Acquisitions | 13 | % | 22 | % | — | % | 14 | % | ||||||||||||||||||
53rd week of extra sales in fiscal year 2021 |
(3) | % | (4) | % | (5) | % | (3) | % | ||||||||||||||||||
FX impact | (3) | % | (6) | % | (1) | % | (4) | % | ||||||||||||||||||
Organic net sales growth | 2 | % | 6 | % | 13 | % | 4 | % |
Net sales reconciliation | YTD-22 vs. YTD-21 | |||||||||||||||||||||||||
Electronics | Transportation | Industrial | Total | |||||||||||||||||||||||
Net sales growth | 15 | % | 36 | % | 21 | % | 21 | % | ||||||||||||||||||
Less: | ||||||||||||||||||||||||||
Acquisitions | 7 | % | 40 | % | 4 | % | 14 | % | ||||||||||||||||||
53rd week of extra sales in fiscal year 2021 |
(1) | % | (1) | % | (2) | % | (1) | % | ||||||||||||||||||
FX impact | (3) | % | (5) | % | (1) | % | (3) | % | ||||||||||||||||||
Organic net sales growth | 12 | % | 2 | % | 20 | % | 11 | % |
Income tax reconciliation | ||||||||||||||||||||||||||
Q4-22 | Q4-21 | YTD-22 | YTD-21 | |||||||||||||||||||||||
Income taxes | $ | 10.0 | $ | 7.6 | $ | 69.7 | $ | 57.2 | ||||||||||||||||||
Effective rate | 9.7 | % | 12.7 | % | 15.7 | % | 16.8 | % | ||||||||||||||||||
Non-GAAP adjustments - income taxes | 6.8 | 3.9 | 19.0 | 6.0 | ||||||||||||||||||||||
Adjusted income taxes | $ | 16.8 | $ | 11.5 | $ | 88.7 | $ | 63.2 | ||||||||||||||||||
Adjusted effective rate | 16.8 | % | 12.7 | % | 17.4 | % | 16.1 | % | ||||||||||||||||||
Free cash flow reconciliation | ||||||||||||||||||||||||||
Q4-22 | Q4-21 | YTD-22 | YTD-21 | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 106.3 | $ | 132.6 | $ | 419.7 | $ | 373.3 | ||||||||||||||||||
Less: Purchases of property, plant and equipment | (26.5) | (33.0) | (104.3) | (90.6) | ||||||||||||||||||||||
Free cash flow | $ | 79.8 | $ | 99.6 | $ | 315.4 | $ | 282.7 |
Consolidated Total Debt | As of December 31, 2022 | |||||||
Consolidated Total Debt | $ | 1,001.5 | ||||||
Unamortized debt issuance costs | 4.8 | |||||||
Finance lease liability | $ | 1.8 | ||||||
Consolidated funded indebtedness | $ | 1,008.1 | ||||||
Cash held in U.S. (up to $400 million) | $ | 110.6 | ||||||
Net debt | $ | 897.5 | ||||||
Consolidated EBITDA | Twelve Months Ended December 31, 2022 |
|||||||
Net Income | $ | 373.3 | ||||||
Interest expense | 26.2 | |||||||
Income taxes | 69.7 | |||||||
Depreciation | 65.0 | |||||||
Amortization | 55.7 | |||||||
Non-cash additions: | ||||||||
Stock-based compensation expense | 23.6 | |||||||
Purchase accounting inventory step-up charge | 15.6 | |||||||
Unrealized loss on investments | 14.0 | |||||||
Impairment charges | 4.5 | |||||||
Other | 81.9 | |||||||
Consolidated EBITDA (1) | $ | 729.5 | ||||||
Consolidated Net Leverage Ratio (as defined in the Credit Agreement) * | 1.2x |