WEST ORANGE, N.J., Feb. 08, 2024 (GLOBE NEWSWIRE) -- Bel Fuse Inc. (NASDAQ:BELFA), a designer, manufacturer, and provider of products that power, protect and connect electronic circuits, today announced plans to release preliminary financial results for the fourth quarter after market close on Wednesday, February 21, 2024. An earnings conference call has been scheduled as follows: When: Thursday, February 22, 2024 at 8:30 a.m. ETDial in: Toll free – 877.407.0784, or international – 201.689.8560Online: https ...

WEST ORANGE, N.J., Jan. 11, 2024 (GLOBE NEWSWIRE) -- Bel Fuse Inc (Bel), a leading global manufacturer of products that power, protect, and connect electronic circuits, proudly marks its 75th anniversary today. Located in the heart of New Jersey, Bel has evolved from a fuse business servicing the auto aftermarket to a global supplier of connectors, power supplies, magnetics and circuit protection products serving cutting-edge industries such as e-mobility, aerospace, industrial, networking and military with ...

Financial Performance - Total revenue for the three months ended September 30, 2023, was $158.682 million, with a gross profit of $55.465 million, resulting in a gross profit margin of 35.0%[92] - Power Solution and Protection sales rose by $38.9 million (18.9%) in the first nine months of 2023 compared to the same period in 2022[71] - eMobility product sales increased by $9.8 million (79.2%) in the first nine months of 2023 compared to the same period in 2022[71] - Sales of Connectivity Solutions products increased by $1.5 million (3.0%) and $19.9 million (14.2%) during the three and nine months ended September 30, 2023, respectively, driven by growth in commercial aerospace and military markets[103] - Sales of Magnetic Solutions products declined by $19.0 million (37.2%) and $44.0 million (31.8%) during the three and nine months ended September 30, 2023, primarily due to reduced demand from networking customers[118] Cash and Liquidity - Cash on hand increased to $100.2 million as of September 30, 2023, up from $70.3 million at December 31, 2022[66] - Cash and cash equivalents totaled $100.2 million as of September 30, 2023, with a current ratio of 3.1 to 1, indicating strong liquidity[108] - Cash and cash equivalents increased by $30.0 million during the nine months ended September 30, 2023[137] - The company repatriated $33.5 million from foreign subsidiaries during the nine months ended September 30, 2023, while analyzing global working capital and cash requirements[124] Costs and Expenses - SG&A expenses for the third quarter of 2023 were $23.7 million, up from $22.2 million in the same quarter of 2022[75] - Labor costs represented 6.5% of revenue during the first nine months of 2023, down from 8.4% in the same period of 2022, due to internal initiatives to mitigate wage increases[100] - Material costs as a percentage of total sales decreased to 40.5% in Q3 2023 from 46.1% in Q3 2022[73] - The company anticipates an increase in minimum wage in China to result in higher labor costs of approximately $0.5 million per year at affected facilities[100] - Inflationary pressures may lead to higher input costs, impacting future operating results[135] Borrowings and Interest - Outstanding borrowings under the revolving credit facility were $60 million as of September 30, 2023, down from $95 million at December 31, 2022[83] - The effective interest rate for outstanding borrowings was 2.47% as of September 30, 2023, down from 3.57% at December 31, 2022[139] - Interest expense incurred was $0.5 million for the three months ended September 30, 2023, compared to $0.9 million for the same period in 2022[139] - The company incurred $2.4 million of interest expense during each of the nine-month periods ended September 30, 2023, and 2022[139] - No outstanding borrowings were subject to a variable interest rate as of September 30, 2023[139] Operational Changes - The company completed the transition of operations from its Tempe, Arizona and Sudbury, UK facilities into other existing sites during the first half of 2023[69] - Accounts receivable decreased by $11.9 million during the nine months ended September 30, 2023, with days sales outstanding (DSO) improving to 55 days from 58 days at the end of 2022[110] - Inventory decreased by $29.3 million at September 30, 2023, with inventory turns improving to 2.9 from 2.6 at December 31, 2022[110] - The company has faced challenges in managing labor costs due to unpredictable demand and the need for continual recruitment and training[134] Taxation - The effective tax rate for Q3 2023 was 18.2%, down from 20.0% in Q3 2022[76] - The effective tax rate increased to 11.5% for the nine months ended September 30, 2023, compared to 7.1% in the same period of 2022, mainly due to a decrease in tax benefits from valuation allowances[122] Restructuring and Cost Savings - Restructuring initiatives are expected to yield annual cost savings of approximately $6.9 million, with $1.6 million anticipated in Q4 2024[69] Legal Matters - The company is evaluating options for appeal regarding a patent infringement lawsuit after a summary judgment of non-infringement was granted[133] Industry Overview - The company operates in one industry with three reportable segments: Connectivity Solutions, Power Solutions, and Protection, Magnetic Solutions[130]

Financial Data and Key Metrics Changes - Third quarter 2023 sales were $159 million, down from $178 million in Q3 2022, with an $8.4 million decline attributed to reduced expedite fee revenue [8][9] - Gross margin increased to 35% in Q3 2023 from 29% in Q3 2022, marking eight consecutive quarters of improvement [8][9] - Cash balance at the end of the quarter was $100.2 million, up from $70.3 million at year-end [12] Business Line Data and Key Metrics Changes - Power Solutions and Protection sales were $74.9 million, down 2.1% year-over-year, with a gross margin of 41.7%, a 930 basis point improvement from Q3 2022 [9][10] - Connectivity Solutions group sales increased by 3% to $51.8 million, with a gross margin of 35.8%, up from 26.1% in the previous year [10] - Magnetic Solutions group sales decreased by 37.2% to $32 million, with a gross margin of 22%, down from 30.4% in Q3 2022 [10] Market Data and Key Metrics Changes - The backlog of orders totaled $408 million, representing about 2.5 quarters' worth of sales, indicating a high level of backlog [11] - Book-to-bill ratio improved from 0.6 in Q2 2023 to 0.8 in Q3 2023, with a record high of $15.7 million in bookings for the commercial air end market [11] Company Strategy and Development Direction - The company is focused on aligning with customers who value quality and technology over price, allowing for better gross margin management [5][6] - There is an emphasis on improving operational efficiency across all departments, contributing to increased cash generation and financial flexibility for future growth strategies [6][12] - The company is exploring potential stock buybacks and acquisitions as part of its capital allocation strategy [6][18] Management's Comments on Operating Environment and Future Outlook - Management noted that the distribution channel is experiencing elevated inventory levels, which is affecting new orders, but expects normalization in the coming quarters [5][15] - There is optimism regarding the eMobility market, despite challenges related to customer funding and inflation impacting supply chains [20][19] - Sales guidance for Q4 2023 is projected between $146 million to $154 million, with gross margins expected to remain in line with Q3 2023 levels [15] Other Important Information - The company generated $81.4 million in cash flow from operating activities in the first nine months of 2023, resulting in free cash flow of $71.7 million, an improvement of $53.3 million compared to the same period in 2022 [12] - Inventory levels decreased by $29.3 million from year-end, improving inventory turns to 2.9 times in Q3 2023 [12] Q&A Session Summary Question: Insights on capital deployment and M&A - Management indicated a strong cash build and is on track to double last year's capital expenditures, while remaining open to M&A opportunities despite a current slowdown in the market [18] Question: Strength in eMobility segment - Management acknowledged overall industry excitement in eMobility but noted challenges with customer funding and inflation affecting supply chains [20][19] Question: Revenue growth expectations in eMobility - eMobility sales for the first nine months of 2023 were $22 million, indicating that doubling sales this year is unlikely, although they expect a strong finish in Q4 [23][24] Question: Impact of low-margin business exit - Management clarified that the exit from low-margin business is ongoing and will be managed at the SKU level, with a focus on maintaining profitability [28] Question: Commercial air revenue and bookings - Commercial air sales in Q3 were $11.3 million, down from $15.9 million in Q2, but bookings for the quarter reached a record high of $15.7 million [29][31]

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ____________ 300 Executive Drive, Suite 300 West Orange, NJ 07052 (201) 432-0463 | --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------- ...

Financial Data and Key Metrics Changes - The second quarter of 2023 sales were $169 million, a slight decrease from $171 million in the second quarter of 2022 [5] - Gross margin improved to 32.9% in Q2 2023 from 26.6% in Q2 2022 [5] - Selling, general and administrative expenses were $25.1 million, or 14.9% of sales, up from $24 million, or 14% of sales in the same quarter last year [10] Business Line Data and Key Metrics Changes - Power Solutions and Protection sales reached $87.1 million, up 23% year-over-year, with a gross margin of 35.7%, a 750 basis point improvement [6] - Connectivity Solutions Group sales were $54.8 million, a 19% increase from the previous year, with a gross margin of 37.4%, up from 27.6% [7] - Magnetic Solutions group sales were $26.8 million, down 50% from last year, with a gross margin of 24.6%, down from 28.2% [8] Market Data and Key Metrics Changes - The consolidated backlog of orders was $450 million as of June 30, 2023, down 20% from year-end 2022 [9] - The Power Solutions and Protection group had a backlog of $285 million, while the Connectivity group had a backlog of $112 million [7][8] - The Magnetic Solutions group finished Q2 with a backlog of $53 million [9] Company Strategy and Development Direction - The company divested its non-core business in the Czech Republic and moved its corporate headquarters to reduce operating expenses [4][5] - The company is focusing on margin improvement and has walked away from $9 million of low-margin sales to concentrate on more attractive opportunities [15] - Facility consolidations are underway, with two of four projects completed, and the Magnetics facility consolidation expected to be largely complete by Q3 2023 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of 2023, expecting profitability to remain strong despite lower sales [16] - The company anticipates Q3 2023 sales in the range of $157 million to $165 million, with margins expected to be in line with Q2 2023 [15] - Management noted that the strength in commercial air, military, and eMobility markets is expected to continue [15] Other Important Information - The company generated $40.7 million in cash flows from operating activities in the first half of 2023, resulting in free cash flow of $33.6 million, an improvement of $26 million compared to the first half of 2022 [12] - The company ended the quarter with a cash balance of $65.1 million and reduced its outstanding debt balance to $60 million [12] Q&A Session Summary Question: Is this the new normal for operating margins? - Management indicated they are on a journey to reset their cost structure while investing prudently, leading to a more favorable operational cost structure [19][20] Question: What revenue was lost from the Czech plant? - Approximately $4 million to $5 million in annual revenue was lost due to the divestiture [21] Question: Is the company looking at acquisitions? - Management stated they are always in the game for acquisitions but noted a current lack of assets coming to market due to the interest rate environment [22][23] Question: What is the anticipated recovery for the Magnetics business? - Management believes the Magnetics business has bottomed out and is on the recovery path, with positive signs in ordering activities [27][28] Question: What is the commercial air revenue for the quarter? - Commercial air revenue for the quarter was reported at $15.9 million [30] Question: How is the distribution channel performing? - The distribution channel is still working through inventory, with expectations for normalization by the end of Q3 or Q4 [33]

FORM 10-Q BEL FUSE INC. (Exact name of registrant as specified in its charter) Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. provided pursuant to Section 13(a) of the Exchange Act. BEL FUSE INC. AND SUBSIDIARIES ...

Financial Data and Key Metrics Changes - First quarter sales reached $172 million, a 26% increase from Q1 2022 [8] - Gross margin improved to 31.1% compared to 25% in the previous year [8] - Selling, general and administrative expenses were $25.3 million, or 14.7% of sales, up from $21 million in Q1 2022 [11] - Free cash flow generation improved to $13.1 million, an increase of $23 million compared to Q1 2022 [12] Business Line Data and Key Metrics Changes - Power Solutions and Protection sales were $83.2 million, up 41% year-over-year, with a gross margin of 35.7% [8] - Connectivity Solutions Group sales increased to $53.4 million, a 22% rise from last year, with a gross margin of 34.1% [9] - Magnetic Solutions group sales were $35.8 million, a 4.5% increase, with a gross margin of 22.8% [10] Market Data and Key Metrics Changes - Overall backlog was $510 million as of March 31, down 12% from the end of 2022 [11] - Book-to-bill ratios were 1 for Power Solutions, 1.05 for Connectivity Solutions, and 0.4 for Magnetic Solutions [8][9][10] Company Strategy and Development Direction - The company is focusing on operational initiatives and has revamped executive compensation to align with performance targets [16] - Plans to launch 1,000 new magnetic products in 2023, aiming to expand the product portfolio and improve market competitiveness [43] - The company is cautiously optimistic about the future, expecting continued strength in commercial air, military, and e-mobility markets [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a healthy Q2 with sales projected between $162 million and $170 million [14] - The company anticipates a shift in product mix leading to a higher consolidated margin profile as demand stabilizes [15] - Concerns regarding the U.S.-China relationship were acknowledged, with management actively monitoring the situation [36] Other Important Information - Restructuring costs amounted to $3.5 million in Q1 2023, primarily related to factory consolidation in China [12] - The company ended the quarter with a cash balance of $77.8 million, an increase from the previous quarter [12] Q&A Session Summary Question: What contributed to the growth in the Power Solutions Group? - Management highlighted e-mobility, datacom networking demand, and easing component availability as key drivers [18] Question: Is the gross margin improvement a structural change? - Management indicated that improvements in the Connectivity group and operational initiatives contributed to the margin enhancement [20] Question: How much more repricing is left for the product portfolio? - Management stated that while some cleanup work remains, significant initiatives have been completed [27] Question: When will excess inventory levels normalize? - Management estimated it would take a couple of quarters for inventory levels to return to normal [39] Question: What trends are driving higher military sales? - Management noted increased military budgets due to geopolitical uncertainties and opportunities in aerospace [44]

FORM 10-K (Exact name of registrant as specified in its charter) | --- | --- | --- | |--------------------------------------------------|-----------------------------------------------------------|-------------------------------------------------------------------------------| | Securities \nTitle of Each Class | registered pursuant to Section \nTrading Symbol | 12(b) of the Act: \nName of Each Exchange on which Registered | | Class A Common Stock ($0.10 par value) | BELFA | NASDAQ Global Select Market | | ...

| --- | --- | --- | |--------------------------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | January 10, 2023 Needham Growth Conference | | | Safe Harbor Statement The Company's consolidated operating results are affected by a wide variety of factors that could materially and adversely affect revenues and profitability, including the risk factors described in Item 1A of our 2021 Annual Report on Form 10-K. As a result of these and other factors, the Company may experi ...