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Bel Fuse (BELFA) - 2024 Q3 - Quarterly Results
BELFABel Fuse (BELFA)2024-10-23 20:19

Financial Performance - Net sales for Q3 2024 were 123.6million,adecreasefrom123.6 million, a decrease from 158.7 million in Q3 2023[1] - Net earnings fell to 8.1millioncomparedto8.1 million compared to 19.4 million in Q3 2023[1] - Adjusted EBITDA was 20.6million,representing16.720.6 million, representing 16.7% of sales, down from 29.9 million or 18.8% of sales in Q3 2023[1] - Net sales for the three months ended September 30, 2024, were 123,638,000,adecreaseof22.1123,638,000, a decrease of 22.1% compared to 158,682,000 for the same period in 2023[11] - Net earnings for the three months ended September 30, 2024, were 8,080,000,adeclineof58.58,080,000, a decline of 58.5% from 19,448,000 in the same period of 2023[11] - Total net sales for Q3 2024 were 123.6million,adecreaseof22.1123.6 million, a decrease of 22.1% compared to 158.7 million in Q3 2023[19] - GAAP net earnings for Q3 2024 were 8.1million,adecreaseof58.48.1 million, a decrease of 58.4% from 19.4 million in Q3 2023[19] Profitability Metrics - Gross profit margin increased to 36.1% from 35.0% in Q3 2023[1] - Adjusted EBITDA for Q3 2024 was 20.6million,representing16.720.6 million, representing 16.7% of net sales, compared to 29.9 million or 18.8% in Q3 2023[19] - Power Solutions and Protection segment sales dropped by 35.0% year-over-year to 48.7million,withagrossmarginof39.448.7 million, with a gross margin of 39.4%, down from 41.7%[19] - Connectivity Solutions segment reported a 7.6% increase in sales to 55.7 million, with a gross margin improvement to 36.6%[19] - Magnetic Solutions segment experienced a 40.0% decline in sales to 19.2million,withagrossmarginof27.319.2 million, with a gross margin of 27.3%[19] Expenses and Costs - Selling, general and administrative expenses increased to 26,700,000, representing 21.6% of net sales, up from 14.9% in the prior year[11] - Research and development costs rose to 5,443,000forthethreemonthsendedSeptember30,2024,comparedto5,443,000 for the three months ended September 30, 2024, compared to 5,292,000 in the same period last year[11] - The company incurred restructuring charges of 1.1millioninQ32024,comparedto1.1 million in Q3 2024, compared to 2.1 million in Q3 2023[21] Guidance and Future Outlook - Q4 2024 net sales guidance is projected between 117millionand117 million and 125 million, with gross margins expected to be approximately 34% to 36%[3] - The company is optimistic about sequential improvement in market conditions, which is expected to positively impact 2025[3] - The company plans to continue focusing on market expansion and new product development to drive future growth[19] Assets and Cash Flow - Total assets increased to 584,417,000asofSeptember30,2024,comparedto584,417,000 as of September 30, 2024, compared to 571,631,000 at the end of 2023[14] - Cash and cash equivalents rose to 134,266,000asofSeptember30,2024,upfrom134,266,000 as of September 30, 2024, up from 89,371,000 at the end of 2023[14] - Net cash provided by operating activities for the nine months ended September 30, 2024, was 65,720,000,comparedto65,720,000, compared to 81,425,000 in the same period of 2023[16] Tax and Earnings Per Share - The effective tax rate increased to 27.8% for the three months ended September 30, 2024, compared to 18.2% in the same period of 2023[11] - Earnings per share for Class A common shares decreased to 0.61forthethreemonthsendedSeptember30,2024,downfrom0.61 for the three months ended September 30, 2024, down from 1.46 in the same period last year[12] Market Trends and Developments - Positive trends in bookings were observed in September and October across all product segments, particularly in networking and industrial markets[3] - The acquisition of Enercon is expected to introduce new customers and markets to the Power segment upon closing[2] - Anticipated annual cost savings of approximately $1.5 million from the consolidation of fuse manufacturing in China[2] - Two senior associates were added to the corporate team to enhance sales and contracts management[2]