Financial Performance - Net sales for the full year 2024 were 534.8million,down19.7639.8 million in 2023, excluding Enercon's contribution[3] - In Q4 2024, net sales were 149.9million,anincreasefrom140.0 million in Q4 2023, but organic sales decreased by 7.8% when excluding Enercon's 20.8millioncontribution[8]−TotalsalesforFY2024were534,792 thousand, a decline of 16.4% from 639,813thousandinFY2023[28]−GAAPnetsalesforQ42024were149,859 thousand, an increase from 140,010thousandinQ42023,whileyear−endGAAPnetsalesdecreasedto534,792 thousand from 639,813thousand[30]−Non−GAAPadjustednetsalesforQ42024were149,859 thousand, compared to 139,585thousandinQ42023,withyear−endadjustednetsalesat534,735 thousand, up from 624,963thousand[30]Profitability−GrossprofitmarginforQ42024was37.51.8 million, compared to a net earnings of 12.0millioninQ42023[8]−Non−GAAPnetearningsattributabletoBelshareholdersforthefullyear2024were72.1 million, down from 89.6millionin2023[8]−GAAPnetearningsforQ42024were6,432 thousand, down from 12,036thousandinQ42023,andyear−endnetearningsdecreasedto49,192 thousand from 73,831thousand[30]−Non−GAAPoperatingincomeforQ42024was24,629 thousand, slightly up from 23,901thousandinQ42023,whileyear−endnon−GAAPoperatingincomedecreasedto85,417 thousand from 103,512thousand[30]ExpensesandCosts−Researchanddevelopmentcostsincreasedto6,934 thousand in Q4 2024, up from 5,966thousandinQ42023[20]−InterestexpenseforQ42024was2,815 thousand, significantly higher than 448thousandinQ42023,indicatingincreasedborrowingcosts[30]−RestructuringchargesforQ42024amountedto1,669 thousand, down from 3,808thousandinQ42023,whileacquisition−relatedcostswere8,592 thousand in Q4 2024[30] - Restructuring charges for the year ended December 31, 2024, amounted to 3,459million,comparedto10,114 million in 2023, a reduction of 65.8%[35] - Acquisition-related costs for the year ended December 31, 2024, were 12,884million,whiletherewerenosuchcostsreportedforthepreviousyear[35]AssetsandLiabilities−Totalassetsincreasedsignificantlyto949,789 thousand in 2024 from 571,631thousandin2023[22]−Long−termdebtroseto287,500 thousand in 2024, compared to 60,000thousandin2023[22]−Cashflowsfromoperatingactivitiesdecreasedto77,654 thousand in 2024 from 108,349thousandin2023[24]FutureOutlook−ForQ12025,GAAPnetsalesareprojectedtobebetween144 million and $154 million, with a gross margin expected to be between 36% and 38%[6] - The company anticipates a slow and steady rebound in demand from networking and distribution partners throughout 2025[6] - The company expects to continue focusing on market expansion and new product development in the upcoming fiscal year[35] Strategic Initiatives - Bel's strategic initiatives in 2024 included facility consolidations and a focus on global procurement to enhance operational efficiencies[5] - The acquisition of Enercon, completed in Q4 2024, is expected to enhance scale and diversity, making aerospace and defense Bel's largest end market[5] Non-GAAP Measures - The company modified its presentation of Non-GAAP financial measures in Q4 2024 to enhance investor insight into operational performance[32] - The use of Non-GAAP measures is intended to provide additional insight into operational performance and assist in trend analysis and budgeting[37] - In Q4 2024, the company revised its definitions of Adjusted EBITDA and Non-GAAP EPS to exclude stock-based compensation, amortization of intangibles, and unrealized foreign currency exchange gains/losses[39] - The company has included Non-GAAP financial measures such as Non-GAAP adjusted net sales and Non-GAAP EPS to aid in comparisons with other periods[37]
