Part I [Business](index=4&type=section&id=Item%201.%20Business) Bel Fuse Inc. designs, manufactures, and markets products that power, protect, and connect electronic circuits for various industries - **2020 Net Sales by Product Group** | Product Group | Percentage of 2020 Net Sales | | :--- | :--- | | Power Solutions & Protection | 39% | | Cinch Connectivity Solutions | 32% | | Magnetic Solutions | 29% | - Acquisitions are a **key element** of the company's growth strategy, aiming to expand the product portfolio, technology base, and customer reach[16](index=16&type=chunk)[17](index=17&type=chunk) - The company's sales channels include direct strategic account managers for major global accounts, regional sales managers working with independent sales representatives, and authorized distributors[27](index=27&type=chunk)[28](index=28&type=chunk) - As of December 31, 2020, Bel employed approximately **6,400 associates** across **14 countries**, with **23%** located in North America[46](index=46&type=chunk) [Products](index=5&type=section&id=Products) The company's product offerings are categorized into three main groups: Power Solutions and Protection, Cinch Connectivity Solutions, and Magnetic Solutions - **Power Solutions and Protection:** Products include internal/external AC/DC power supplies, DC/DC converters, DC/AC inverters, and board-level fuses, sold under brands like **Bel Power Solutions**, **Melcher™**, and **CUI**[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) - **Connectivity Solutions:** Offers high-speed and harsh environment copper and optical fiber connectors and assemblies for aerospace, military, and industrial applications under brands such as **Stratos®**, **Cinch®**, **Johnson**, and **Stewart Connector**[23](index=23&type=chunk)[24](index=24&type=chunk) - **Magnetic Solutions:** Includes Integrated Connector Modules (ICMs), power transformers, and discrete components for networking and power supply applications, sold under brands like **Bel**, **TRP Connector®**, **MagJack®**, and **Signal**[25](index=25&type=chunk)[26](index=26&type=chunk) [Market Factors](index=9&type=section&id=Market%20Factors) The company operates in highly competitive markets, with 2020 total product orders decreasing 3% to $448.8 million, while backlog was $179.6 million as of February 28, 2021 - **2020 Product Order Trends vs. 2019** | Product Group | 2020 Orders (USD Million) | Change vs. 2019 | | :--- | :--- | :--- | | **Total** | **$448.8** | **-3%** | | Power Solutions & Protection | $183.0 | +30% | | Connectivity Solutions | $126.9 | -29% | | Magnetic Solutions | $138.9 | -3% | - The backlog of orders was estimated at **$179.6 million** as of February 28, 2021, compared to **$186.3 million** a year prior[33](index=33&type=chunk) [Risk Factors](index=13&type=section&id=Item%201A.%20Risk%20Factors) The company faces strategic, operational, and financial risks, including intense competition, supply chain disruptions, and debt servicing challenges - **Strategic Risks:** The company operates in a **highly competitive** global industry, and its growth through acquisitions may not produce anticipated results[57](index=57&type=chunk)[59](index=59&type=chunk)[61](index=61&type=chunk) - **Operational Risks:** The COVID-19 pandemic has impacted manufacturing and supply chains, with a single customer, Hon Hai/Foxconn, accounting for **11.9% of 2020 consolidated net sales**[62](index=62&type=chunk)[65](index=65&type=chunk)[68](index=68&type=chunk) - **Financial Risks:** Margins are **susceptible to declines** in selling prices and increases in material and labor costs, impacting the company's ability to service its debt[72](index=72&type=chunk)[78](index=78&type=chunk) - **General Risks:** **Global operations** expose Bel to foreign currency fluctuations, trade policies, tariffs, political conditions, and evolving cyber threats[95](index=95&type=chunk)[97](index=97&type=chunk)[101](index=101&type=chunk) [Properties](index=22&type=section&id=Item%202.%20Properties) Bel Fuse operates 20 manufacturing facilities across 7 countries, with 14% owned and 86% leased, and a significant portion of assets in Asia - **Principal Manufacturing Facilities Overview (as of Dec 31, 2020)** | Metric | Value | | :--- | :--- | | Total Manufacturing Facilities | 20 | | Countries with Facilities | 7 | | Total Occupied Space | ~2.2 million sq. ft. | | Owned Space | ~14% | | Leased Space | ~86% | - The largest manufacturing facilities by square footage are located in Dongguan, Zhongshan, and Pingguo in the People's Republic of China, all of which are leased[107](index=107&type=chunk) - Approximately **32.6%** of the company's identifiable assets are located in Asia, where a significant portion of its manufacturing operations reside[108](index=108&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=23&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Bel's Class A and B common stocks trade on NASDAQ, with quarterly dividends of $0.06 and $0.07 per share declared in 2020 and 2019 - **Annual Dividend Payouts** | Year | Total Dividends Paid (USD Million) | Per Class A Share (Quarterly) | Per Class B Share (Quarterly) | | :--- | :--- | :--- | :--- | | 2020 | $3.4 | $0.06 | $0.07 | | 2019 | $3.4 | $0.06 | $0.07 | - As of February 28, 2021, there were **41 registered shareholders of Class A stock** and **329 of Class B stock**, with an estimated **652 beneficial shareholders of Class A** and **2,872 of Class B**[111](index=111&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2020, net sales decreased to $465.8 million, gross margin improved to 25.7%, and net earnings were $12.8 million, with strong cash flow from operations - **Financial Performance Summary (2020 vs. 2019)** | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Net Sales | $465.8M | $492.4M | | Gross Profit | $119.7M | $110.0M | | Gross Margin | 25.7% | 22.3% | | Net Earnings (Loss) | $12.8M | ($8.7M) | | Cash from Operations | $46.1M | $24.5M | - The COVID-19 pandemic led to an estimated **$14-$17 million in shipment delays** from Q1 to Q2 2020, offset by **$4.9 million in relief funding** from the Chinese government[122](index=122&type=chunk) - Restructuring actions in 2020 resulted in **$0.6 million in charges** and are expected to generate **$6.0 million in annualized cost savings**, with **$4.4 million** to be realized in 2021[132](index=132&type=chunk) [Summary by Operating Segment](index=28&type=section&id=Summary%20by%20Operating%20Segment) In 2020, Connectivity Solutions sales fell 12.5%, Magnetic Solutions sales declined 14.7%, while Power Solutions and Protection sales grew 11.0% due to the CUI acquisition - **Net Sales and Gross Margin by Segment (2020 vs. 2019)** | Segment | Net Sales 2020 (M) | Net Sales 2019 (M) | Gross Margin 2020 | Gross Margin 2019 | | :--- | :--- | :--- | :--- | :--- | | Connectivity Solutions | $150.7 | $172.3 | 28.0% | 25.8% | | Magnetic Solutions | $133.6 | $156.5 | 24.8% | 21.9% | | Power Solutions & Protection | $181.5 | $163.5 | 25.1% | 20.1% | | **Total** | **$465.8** | **$492.4** | **25.7%** | **22.3%** | - The CUI business, acquired in December 2019, contributed incremental sales of **$41.0 million** in 2020 at a gross margin of **34.1%** within the Power Solutions and Protection segment[141](index=141&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents increased to $84.9 million at year-end 2020, driven by $46.1 million in cash from operations, with compliance to debt covenants - **Cash and Liquidity Position** | Metric | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $84.9M | $72.3M | | Cash Provided by Operations (FY) | $46.1M | $24.5M | | Debt Repayments (FY) | $28.2M | $3.0M | | Available Credit Facility | $56.6M | N/A | - Working capital management improved, with Days Sales Outstanding (DSO) decreasing from **60 days** at year-end 2019 to **57 days** at year-end 2020[172](index=172&type=chunk) [Critical Accounting Policies and Other Matters](index=36&type=section&id=Critical%20Accounting%20Policies%20and%20Other%20Matters) Key accounting policies involve inventory valuation, goodwill impairment testing, and revenue recognition, with Hon Hai/Foxconn as a significant customer - The company's annual goodwill impairment test as of October 1, 2020, identified no impairment, with reporting units exceeding carrying values by **51.1%**, **21.0%**, and **38.6%** respectively[194](index=194&type=chunk)[312](index=312&type=chunk)[313](index=313&type=chunk) - Reserves for excess or obsolete inventory were **$9.9 million** as of December 31, 2020, compared to **$9.1 million** in 2019[179](index=179&type=chunk) - One direct customer, Hon Hai/Foxconn Technology Group, accounted for **11.9% of consolidated revenue** in 2020, primarily within the Magnetic Solutions segment[199](index=199&type=chunk) [Financial Statements and Supplementary Data](index=41&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2020 and 2019, along with the independent auditor's report and detailed notes [Report of Independent Registered Public Accounting Firm](index=43&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Deloitte & Touche LLP issued an unqualified opinion on Bel Fuse Inc.'s financial statements and internal controls, highlighting goodwill and intangible asset impairment testing as critical audit matters - The auditor issued an **unqualified opinion**, confirming the financial statements are fairly presented in conformity with U.S. GAAP and that internal controls over financial reporting were effective[206](index=206&type=chunk) - **Critical Audit Matters** highlighted were the valuation of Goodwill and Indefinite-Lived Intangible Assets, which required a high degree of auditor judgment due to significant management estimates[214](index=214&type=chunk)[217](index=217&type=chunk)[221](index=221&type=chunk) [Consolidated Financial Statements](index=47&type=section&id=Consolidated%20Financial%20Statements) The 2020 consolidated financial statements show total assets of $453.9 million, net sales of $465.8 million, and net income of $12.8 million, a turnaround from a 2019 net loss - **Consolidated Balance Sheet Highlights (in thousands)** | Account | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Total Current Assets | $280,216 | $283,181 | | Total Assets | $453,866 | $468,917 | | Total Current Liabilities | $87,536 | $90,218 | | Long-term Debt | $110,294 | $138,215 | | Total Liabilities | $268,067 | $300,866 | | Total Stockholders' Equity | $185,799 | $168,051 | - **Consolidated Statement of Operations Highlights (in thousands)** | Account | Year Ended Dec 31, 2020 | Year Ended Dec 31, 2019 | | :--- | :--- | :--- | | Net Sales | $465,771 | $492,412 | | Gross Profit | $119,730 | $109,973 | | Income (Loss) from Operations | $18,667 | ($1,595) | | Net Earnings (Loss) | $12,795 | ($8,743) | | EPS (Class B, basic & diluted) | $1.05 | ($0.71) | [Notes to Consolidated Financial Statements](index=53&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail the CUI acquisition, revenue disaggregation, goodwill, total debt of $116.8 million, and subsequent acquisitions and property sales - On December 3, 2019, the company acquired the CUI power business for **$29.2 million**, which contributed **$43.1 million in revenue** in 2020[281](index=281&type=chunk)[282](index=282&type=chunk) - As of December 31, 2020, total debt outstanding was **$116.8 million**, with an effective interest rate of **2.19%**, and the company was in compliance with all debt covenants[347](index=347&type=chunk)[348](index=348&type=chunk)[357](index=357&type=chunk) - Subsequent to year-end, on January 8, 2021, the company acquired rms Connectors, Inc. for **$8.5 million in cash** to complement its military and aerospace product portfolio[406](index=406&type=chunk) [Controls and Procedures](index=90&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2020, with no material changes - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2020[411](index=411&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective** as of December 31, 2020, a conclusion audited and supported by an unqualified opinion from Deloitte & Touche LLP[413](index=413&type=chunk)[414](index=414&type=chunk) Part III [Items 10, 11, 12, 13, and 14](index=91&type=section&id=Items%2010%2C%2011%2C%2012%2C%2013%2C%20and%2014) Information for these items is incorporated by reference from the company's definitive proxy statement for its 2021 annual meeting of shareholders - The information for Items 10 through 14 is incorporated by reference from the company's **2021 definitive proxy statement**[417](index=417&type=chunk)[419](index=419&type=chunk)[424](index=424&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=92&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed with the Form 10-K, including key agreements and required certifications - This item lists all financial statements, schedules, and exhibits filed with the Form 10-K, including key agreements and required certifications[426](index=426&type=chunk)[427](index=427&type=chunk)[428](index=428&type=chunk) [Form 10-K Summary](index=94&type=section&id=Item%2016.%20Form%2010-K%20Summary) No summary is provided for the Form 10-K in this section - No Form 10-K summary is provided[429](index=429&type=chunk)

Bel Fuse Inc. (NASDAQ:BELFB) Q4 2020 Earnings Conference Call February 18, 2021 11:00 AM ET Company Participants Dan Bernstein - President and Chief Executive Officer Craig Brochu - Vice President of Finance Lynn Hutkin - Director of Financial Reporting Farouq Tuweiq - Chief Financial Officer Conference Call Participants James Ricchiuti - Needham & Company Theodore O'Neill - Litchfield Hills Research Hendi Susanto - Gabelli Steve Kohl - Mangrove Operator Good day, and welcome to the Bel Fuse Inc. Fourth Qua ...

Financial Performance & Sales - Bel's annual sales reached $465 million for the trailing twelve months ended September 30, 2020[2] - Power Solutions & Protection accounted for $165 million in sales (35%)[2] - Connectivity Solutions generated $158 million in sales (34%)[2] - Magnetic Solutions contributed $142 million in sales (31%)[2] - In Q3 2020, Bel achieved a gross margin of 26.9%, a 390 bps increase from 23.0% in Q3 2019[17] - Non-GAAP EPS (BELFB) in Q3 2020 was $0.62, a 210% increase from $0.20 in Q3 2019[17] Cost Savings & Debt Reduction - Bel implemented $10 million of cost savings in 2019/2020, with $3 million incremental to 2021[3] - The company paid down $28 million of debt in the first 10 months of 2020, reducing the balance to $115 million by October 31st[3] Acquisition & Growth Drivers - The acquisition of CUI Power Group closed on December 3, 2019, and in the first nine months of 2020, CUI generated sales of $29.8 million with a gross margin of 35.2% and EBITDA of $5.3 million[14] - Key growth drivers include networking & high-performance computing, military & aerospace, e-mobility, and distribution[13]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ____________ Commission File No. 0-11676 BEL FUSE INC. 206 Van Vorst Street Jersey City, NJ 07302 (201) 432-0463 (Address of principal exec ...

Bel Fuse Inc. (NASDAQ:BELFB) Q3 2020 Earnings Conference Call October 30, 2020 11:00 AM ET Company Participants Dan Bernstein - President & Chief Executive Officer Lynn Hutkin - Director, Financial Reporting Craig Brosious - Vice President, Finance Conference Call Participants Mike Cikos - Needham & Company Theodore O'Neill - Litchfield Hills Research Hendi Susanto - Gabelli Funds Operator Good day, and welcome to the Bel Fuse Inc. Third Quarter 2020 Results Conference Call. Today's conference is being reco ...

LD Micro Conference September 2, 2020 (Nasdaq: BELFB) (Nasdaq: BELFA) 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 2019 Annual Report on Form 10-K. As a result of these and other factors, the Company may experience material fluctuations in future operating results on a quarterly or annual basis, which could materially an ...

Large accelerated filer ☐ Accelerated filer ☒ Non-accelerated filer ☐ Smaller reporting company ☒ Emerging growth company ☐ Title of Each Class Trading Symbol Name of Exchange on Which Registered Class A Common Stock ($0.10 par value)BELFA Nasdaq Global Select Market Class B Common Stock ($0.10 par value)BELFB Nasdaq Global Select Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE A ...

Bel Fuse Inc. (NASDAQ:BELFB) Q2 2020 Earnings Conference Call July 31, 2020 11:00 AM ET Company Participants Dan Bernstein - President and Chief Executive Officer Craig Brosious - Vice President, Finance Lynn Hutkin - Director, Financial Reporting Conference Call Participants Theodore O'Neill - Litchfield Hills Research Jim Ricchiuti - Needham & Company Lenny Dunn - Mutual Trust Co of America Operator Good day and welcome to the Bel Fuse Incorporated Second Quarter 2020 Results Conference Call. Today’s conf ...

Large accelerated filer ☐ Accelerated filer ☒ Non-accelerated filer ☐ Smaller reporting company ☒ Emerging growth company ☐ Title of Each Class Trading Symbol Name of Exchange on Which Registered Class A Common Stock ($0.10 par value)BELFA Nasdaq Global Select Market Class B Common Stock ($0.10 par value)BELFB Nasdaq Global Select Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE A ...

Bel Fuse Inc. (NASDAQ:BELFB) Q1 2020 Earnings Conference Call May 1, 2020 11:00 AM ET Company Participants Dan Bernstein – President and Chief Executive Officer Lynn Hutkin – Director-Financial Reporting Craig Brosious – Vice President-Finance Conference Call Participants Theodore O'Neill – Litchfield Hills Research James Ricchiuti – Needham & Company Hendi Susanto – Gabelli Funds Lenny Dunn – Mutual Trust Company of America Operator Good day, and welcome to the Bel Fuse Inc. First Quarter 2020 Results Conf ...