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: | |||||
104 Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Littelfuse, Inc. | |||||
Date: January 30, 2024 | By: /s/ Meenal A. Sethna |
||||
Meenal A. Sethna Executive Vice President and Chief Financial Officer |
FOR IMMEDIATE RELEASE
David L. Kelley
224-727-2535
dkelley@littelfuse.com
|
Littelfuse Inc. 8755 West Higgins Road, Suite 500 Chicago, Illinois 60631 p: (773) 628-1000 www.littelfuse.com |
(in thousands) | December 30, 2023 | December 31, 2022 | |||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 555,513 | $ | 562,588 | |||||||
Short-term investments | 235 | 84 | |||||||||
Trade receivables, less allowances of $84,696 and $83,562, respectively | 287,018 | 306,578 | |||||||||
Inventories | 474,607 | 547,690 | |||||||||
Prepaid income taxes and income taxes receivable | 8,701 | 7,215 | |||||||||
Prepaid expenses and other current assets | 82,526 | 87,641 | |||||||||
Total current assets | 1,408,600 | 1,511,796 | |||||||||
Net property, plant, and equipment | 493,153 | 481,110 | |||||||||
Intangible assets, net of amortization | 606,136 | 593,970 | |||||||||
Goodwill | 1,309,998 | 1,186,922 | |||||||||
Investments | 24,821 | 24,121 | |||||||||
Deferred income taxes | 10,486 | 14,367 | |||||||||
Right of use lease assets, net | 62,370 | 57,382 | |||||||||
Other assets | 79,711 | 34,066 | |||||||||
Total assets | $ | 3,995,275 | $ | 3,903,734 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 173,535 | $ | 208,571 | |||||||
Accrued liabilities | 149,214 | 187,057 | |||||||||
Accrued income taxes | 38,725 | 41,793 | |||||||||
Current portion of long-term debt | 14,020 | 134,874 | |||||||||
Total current liabilities | 375,494 | 572,295 | |||||||||
Long-term debt, less current portion | 857,915 | 866,623 | |||||||||
Deferred income taxes | 110,820 | 100,230 | |||||||||
Accrued post-retirement benefits | 34,422 | 28,037 | |||||||||
Non-current lease liabilities | 49,472 | 45,661 | |||||||||
Other long-term liabilities | 86,671 | 79,510 | |||||||||
Total equity | 2,480,481 | 2,211,378 | |||||||||
Total liabilities and equity | $ | 3,995,275 | $ | 3,903,734 |
Three Months Ended | Fiscal Year Ended | |||||||||||||||||||||||||
(in thousands, except per share data) | December 30, 2023 | December 31, 2022 | December 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Net sales | $ | 533,807 | $ | 613,251 | $ | 2,362,657 | $ | 2,513,897 | ||||||||||||||||||
Cost of sales | 340,226 | 384,726 | 1,462,416 | 1,506,984 | ||||||||||||||||||||||
Gross profit | 193,581 | 228,525 | 900,241 | 1,006,913 | ||||||||||||||||||||||
Selling, general, and administrative expenses | 84,598 | 85,993 | 354,655 | 344,813 | ||||||||||||||||||||||
Research and development expenses | 25,159 | 26,806 | 102,429 | 95,602 | ||||||||||||||||||||||
Amortization of intangibles | 16,021 | 15,812 | 65,794 | 55,695 | ||||||||||||||||||||||
Restructuring, impairment, and other charges | 3,280 | 5,712 | 16,501 | 9,977 | ||||||||||||||||||||||
Total operating expenses | 129,058 | 134,323 | 539,379 | 506,087 | ||||||||||||||||||||||
Operating income | 64,523 | 94,202 | 360,862 | 500,826 | ||||||||||||||||||||||
Interest expense | 10,063 | 9,147 | 39,866 | 26,216 | ||||||||||||||||||||||
Foreign exchange loss (gain) | 3,602 | (15,692) | 12,299 | 24,359 | ||||||||||||||||||||||
Other (income) expense, net | (8,091) | (2,582) | (19,901) | 7,207 | ||||||||||||||||||||||
Income before income taxes | 58,949 | 103,329 | 328,598 | 443,044 | ||||||||||||||||||||||
Income taxes | 16,068 | 10,025 | 69,113 | 69,738 | ||||||||||||||||||||||
Net income | $ | 42,881 | $ | 93,304 | $ | 259,485 | $ | 373,306 | ||||||||||||||||||
Income per share: | ||||||||||||||||||||||||||
Basic | $ | 1.72 | $ | 3.77 | $ | 10.44 | $ | 15.09 | ||||||||||||||||||
Diluted | $ | 1.71 | $ | 3.74 | $ | 10.34 | $ | 14.94 | ||||||||||||||||||
Weighted-average shares and equivalent shares outstanding: | ||||||||||||||||||||||||||
Basic | 24,905 | 24,758 | 24,854 | 24,734 | ||||||||||||||||||||||
Diluted | 25,111 | 24,978 | 25,102 | 24,986 | ||||||||||||||||||||||
Comprehensive income | $ | 86,590 | $ | 139,811 | $ | 299,432 | $ | 351,005 |
Year Ended | |||||||||||
(in thousands) | December 30, 2023 | December 31, 2022 | |||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | 259,485 | $ | 373,306 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities | 173,776 | 188,871 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Trade receivables | 24,517 | (19,334) | |||||||||
Inventories | 82,471 | (89,235) | |||||||||
Accounts payable | (36,277) | (22,403) | |||||||||
Accrued liabilities and income taxes | (61,022) | (9,495) | |||||||||
Prepaid expenses and other assets | 14,437 | (1,992) | |||||||||
Net cash provided by operating activities | 457,387 | 419,718 | |||||||||
INVESTING ACTIVITIES | |||||||||||
Acquisitions of businesses, net of cash acquired | (198,810) | (532,670) | |||||||||
Purchases of property, plant, and equipment | (86,188) | (104,341) | |||||||||
Net proceeds from sale of property, plant, and equipment | 832 | 676 | |||||||||
Other | (151) | (62) | |||||||||
Net cash used in investing activities | (284,317) | (636,397) | |||||||||
FINANCING ACTIVITIES | |||||||||||
Net (payments) proceeds of credit facility and senior notes | (128,802) | 371,250 | |||||||||
Cash dividends paid | (62,161) | (55,911) | |||||||||
All other cash provided by (used in) financing activities | 5,237 | (5,137) | |||||||||
Net cash (used in) provided by financing activities | (185,726) | 310,202 | |||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 4,840 | (11,420) | |||||||||
(Decrease) increase in cash, cash equivalents, and restricted cash | (7,816) | 82,103 | |||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 564,939 | 482,836 | |||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 557,123 | $ | 564,939 |
Fourth Quarter | Year-to-Date | |||||||||||||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | % (Decline) / Growth |
2023 | 2022 | % (Decline) / Growth |
||||||||||||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||||||||||||||
Electronics | $ | 297,753 | $ | 371,193 | (19.8) | % | $ | 1,350,426 | $ | 1,492,819 | (9.5) | % | ||||||||||||||||||||||||||
Transportation | 162,570 | 167,874 | (3.2) | % | 678,278 | 716,140 | (5.3) | % | ||||||||||||||||||||||||||||||
Industrial | 73,484 | 74,184 | (0.9) | % | 333,953 | 304,938 | 9.5 | % | ||||||||||||||||||||||||||||||
Total net sales | $ | 533,807 | $ | 613,251 | (13.0) | % | $ | 2,362,657 | $ | 2,513,897 | (6.0) | % | ||||||||||||||||||||||||||
Operating income | ||||||||||||||||||||||||||||||||||||||
Electronics | $ | 53,553 | $ | 91,941 | (41.8) | % | $ | 300,581 | $ | 431,616 | (30.4) | % | ||||||||||||||||||||||||||
Transportation | 7,619 | 5,935 | 28.4 | % | 33,634 | 63,539 | (47.1) | % | ||||||||||||||||||||||||||||||
Industrial | 9,350 | 8,885 | 5.2 | % | 54,800 | 48,853 | 12.2 | % | ||||||||||||||||||||||||||||||
Other (a) | (5,999) | (12,559) | N.M. | (28,153) | (43,182) | N.M. | ||||||||||||||||||||||||||||||||
Total operating income | $ | 64,523 | $ | 94,202 | (31.5) | % | $ | 360,862 | $ | 500,826 | (27.9) | % | ||||||||||||||||||||||||||
Operating Margin | 12.1 | % | 15.4 | % | 15.3 | % | 19.9 | % | ||||||||||||||||||||||||||||||
Interest expense | 10,063 | 9,147 | 39,866 | 26,216 | ||||||||||||||||||||||||||||||||||
Foreign exchange loss (gain) | 3,602 | (15,692) | 12,299 | 24,359 | ||||||||||||||||||||||||||||||||||
Other (income) expense, net | (8,091) | (2,582) | (19,901) | 7,207 | ||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 58,949 | $ | 103,329 | (43.0) | % | $ | 328,598 | $ | 443,044 | (25.8) | % |
Fourth Quarter | Year-to-Date | |||||||||||||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | % (Decline) / Growth |
2023 | 2022 | % (Decline) / Growth |
||||||||||||||||||||||||||||||||
Operating Margin | ||||||||||||||||||||||||||||||||||||||
Electronics | 18.0 | % | 24.8 | % | (6.8) | % | 22.3 | % | 28.9 | % | (6.6) | % | ||||||||||||||||||||||||||
Transportation | 4.7 | % | 3.5 | % | 1.2 | % | 5.0 | % | 8.9 | % | (3.9) | % | ||||||||||||||||||||||||||
Industrial | 12.7 | % | 12.0 | % | 0.7 | % | 16.4 | % | 16.0 | % | 0.4 | % |
Non-GAAP EPS reconciliation | ||||||||||||||||||||||||||
Q4-23 | Q4-22 | YTD-23 | YTD-22 | |||||||||||||||||||||||
GAAP diluted EPS | $ | 1.71 | $ | 3.74 | $ | 10.34 | $ | 14.94 | ||||||||||||||||||
EPS impact of Non-GAAP adjustments (below) | 0.31 | (0.40) | 1.40 | 1.93 | ||||||||||||||||||||||
Adjusted diluted EPS | $ | 2.02 | $ | 3.34 | $ | 11.74 | $ | 16.87 |
Non-GAAP adjustments - (income) / expense | ||||||||||||||||||||||||||
Q4-23 | Q4-22 | YTD-23 | YTD-22 | |||||||||||||||||||||||
Acquisition-related and integration costs (a) | $ | 2.7 | $ | 2.8 | $ | 11.7 | $ | 17.6 | ||||||||||||||||||
Purchase accounting inventory adjustments (b) | — | 4.0 | — | 15.6 | ||||||||||||||||||||||
Restructuring, impairment and other charges (c) | 3.3 | 5.7 | 16.5 | 10.0 | ||||||||||||||||||||||
Non-GAAP adjustments to operating income | 6.0 | 12.5 | 28.2 | 43.2 | ||||||||||||||||||||||
Other income, net (d) | — | — | (0.2) | (0.5) | ||||||||||||||||||||||
Non-operating foreign exchange loss (gain) | 3.6 | (15.7) | 12.3 | 24.4 | ||||||||||||||||||||||
Non-GAAP adjustments to income before income taxes | 9.6 | (3.2) | 40.3 | 67.1 | ||||||||||||||||||||||
Income taxes (e) | 1.8 | 6.8 | 5.0 | 19.0 | ||||||||||||||||||||||
Non-GAAP adjustments to net income | $ | 7.8 | $ | (10.0) | $ | 35.3 | $ | 48.1 | ||||||||||||||||||
Total EPS impact | $ | 0.31 | $ | (0.40) | $ | 1.40 | $ | 1.93 |
Adjusted operating margin / Adjusted EBITDA reconciliation | ||||||||||||||||||||||||||
Q4-23 | Q4-22 | YTD-23 | YTD-22 | |||||||||||||||||||||||
Net income | $ | 42.9 | $ | 93.3 | $ | 259.5 | $ | 373.3 | ||||||||||||||||||
Add: | ||||||||||||||||||||||||||
Income taxes | 16.1 | 10.0 | 69.1 | 69.7 | ||||||||||||||||||||||
Interest expense | 10.1 | 9.1 | 39.9 | 26.2 | ||||||||||||||||||||||
Foreign exchange loss (gain) | 3.6 | (15.7) | 12.3 | 24.4 | ||||||||||||||||||||||
Other (income) expense, net | (8.1) | (2.6) | (19.9) | 7.2 | ||||||||||||||||||||||
GAAP operating income | $ | 64.5 | $ | 94.2 | $ | 360.9 | $ | 500.8 | ||||||||||||||||||
Non-GAAP adjustments to operating income | 6.0 | 12.5 | 28.2 | 43.2 | ||||||||||||||||||||||
Adjusted operating income | $ | 70.5 | $ | 106.7 | $ | 389.0 | $ | 544.0 | ||||||||||||||||||
Amortization of intangibles | 16.0 | 15.8 | 65.8 | 55.7 | ||||||||||||||||||||||
Depreciation expenses | 18.1 | 16.7 | 71.6 | 65.0 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 104.6 | $ | 139.2 | $ | 526.4 | $ | 664.7 | ||||||||||||||||||
Net sales | $ | 533.8 | $ | 613.3 | $ | 2,362.7 | $ | 2,513.9 | ||||||||||||||||||
Net income as a percentage of net sales | 8.0 | % | 15.2 | % | 11.0 | % | 14.8 | % | ||||||||||||||||||
Operating margin | 12.1 | % | 15.4 | % | 15.3 | % | 19.9 | % | ||||||||||||||||||
Adjusted operating margin | 13.2 | % | 17.4 | % | 16.5 | % | 21.6 | % | ||||||||||||||||||
Adjusted EBITDA margin | 19.6 | % | 22.7 | % | 22.3 | % | 26.4 | % |
Adjusted EBITDA by Segment | Q4-23 | Q4-22 | ||||||||||||||||||||||||||||||||||||
Electronics | Transportation | Industrial | Electronics | Transportation | Industrial | |||||||||||||||||||||||||||||||||
GAAP operating income | $ | 53.6 | $ | 7.6 | $ | 9.4 | $ | 91.9 | $ | 5.9 | $ | 8.9 | ||||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||||||||
Add back amortization | 9.8 | 3.6 | 2.6 | 10.2 | 4.4 | 1.2 | ||||||||||||||||||||||||||||||||
Add back depreciation | 10.3 | 6.4 | 1.4 | 9.0 | 6.7 | 1.0 | ||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 73.7 | $ | 17.6 | $ | 13.4 | $ | 111.1 | $ | 17.0 | $ | 11.1 | ||||||||||||||||||||||||||
Adjusted EBITDA Margin | 24.7 | % | 10.8 | % | 18.2 | % | 29.9 | % | 10.1 | % | 14.9 | % |
Adjusted EBITDA by Segment | YTD-23 | YTD-22 | ||||||||||||||||||||||||||||||||||||
Electronics | Transportation | Industrial | Electronics | Transportation | Industrial | |||||||||||||||||||||||||||||||||
GAAP operating income | $ | 300.6 | $ | 33.6 | $ | 54.8 | $ | 431.6 | $ | 63.5 | $ | 48.9 | ||||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||||||||
Add back amortization | 39.9 | 15.8 | 10.1 | $ | 32.7 | $ | 18.1 | $ | 4.9 | |||||||||||||||||||||||||||||
Add back depreciation | 39.5 | 26.7 | 5.4 | $ | 35.5 | $ | 25.6 | $ | 3.9 | |||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 379.9 | $ | 76.1 | $ | 70.4 | $ | 499.8 | $ | 107.2 | $ | 57.7 | ||||||||||||||||||||||||||
Adjusted EBITDA Margin | 28.1 | % | 11.2 | % | 21.1 | % | 33.5 | % | 15.0 | % | 18.9 | % |
Net sales reconciliation | Q4-23 vs. Q4-22 | |||||||||||||||||||||||||
Electronics | Transportation | Industrial | Total | |||||||||||||||||||||||
Net sales decline | (20) | % | (3) | % | (1) | % | (13) | % | ||||||||||||||||||
Less: | ||||||||||||||||||||||||||
Acquisitions | — | % | — | % | 4 | % | — | % | ||||||||||||||||||
FX impact | 1 | % | 2 | % | — | % | 1 | % | ||||||||||||||||||
Organic net sales growth | (21) | % | (5) | % | (5) | % | (14) | % |
Net sales reconciliation | YTD-23 vs. YTD-22 | |||||||||||||||||||||||||
Electronics | Transportation | Industrial | Total | |||||||||||||||||||||||
Net sales (decline) growth | (10) | % | (5) | % | 10 | % | (6) | % | ||||||||||||||||||
Less: | ||||||||||||||||||||||||||
Acquisitions | 6 | % | — | % | 4 | % | 4 | % | ||||||||||||||||||
FX impact | — | % | — | % | 1 | % | — | % | ||||||||||||||||||
Organic net sales (decline) growth | (16) | % | (5) | % | 5 | % | (10) | % |
Income tax reconciliation | ||||||||||||||||||||||||||
Q4-23 | Q4-22 | YTD-23 | YTD-22 | |||||||||||||||||||||||
Income taxes | $ | 16.1 | $ | 10.0 | $ | 69.1 | $ | 69.7 | ||||||||||||||||||
Effective rate | 27.3 | % | 9.7 | % | 21.0 | % | 15.7 | % | ||||||||||||||||||
Non-GAAP adjustments - income taxes | 1.8 | 6.8 | 5.0 | 19.0 | ||||||||||||||||||||||
Adjusted income taxes | $ | 17.9 | $ | 16.8 | $ | 74.1 | $ | 88.7 | ||||||||||||||||||
Adjusted effective rate | 26.1 | % | 16.8 | % | 20.1 | % | 17.4 | % |
Free cash flow reconciliation | ||||||||||||||||||||||||||
Q4-23 | Q4-22 | YTD-23 | YTD-22 | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 144.2 | $ | 106.3 | $ | 457.4 | $ | 419.7 | ||||||||||||||||||
Less: Purchases of property, plant and equipment | (23.0) | (26.5) | (86.2) | (104.3) | ||||||||||||||||||||||
Free cash flow | $ | 121.2 | $ | 79.8 | $ | 371.2 | $ | 315.4 |
Consolidated Total Debt | As of December 30, 2023 | |||||||
Consolidated Total Debt | $ | 871.9 | ||||||
Unamortized debt issuance costs | 3.8 | |||||||
Finance lease liability | $ | 0.7 | ||||||
Consolidated funded indebtedness | $ | 876.4 | ||||||
Cash held in U.S. (up to $400 million) | $ | 178.6 | ||||||
Net debt | $ | 697.8 | ||||||
Consolidated EBITDA | Twelve Months Ended December 30, 2023 |
|||||||
Net Income | $ | 259.4 | ||||||
Interest expense | 39.9 | |||||||
Income taxes | 69.1 | |||||||
Depreciation | 71.6 | |||||||
Amortization | 65.8 | |||||||
Non-cash additions: | ||||||||
Stock-based compensation expense | 23.9 | |||||||
Unrealized loss on investments | 0.3 | |||||||
Impairment charges | 4.9 | |||||||
Other | 13.4 | |||||||
Consolidated EBITDA (1) | $ | 548.3 | ||||||
Consolidated Net Leverage Ratio (as defined in the Credit Agreement) * | 1.3x |