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Bel Fuse (BELFB) - 2024 Q4 - Annual Results
BELFBBel Fuse (BELFB)2025-02-18 21:44

Financial Performance - Net sales for the full year 2024 were 534.8million,down19.7534.8 million, down 19.7% from 639.8 million in 2023, excluding Enercon's contribution[3] - In Q4 2024, net sales were 149.9million,anincreasefrom149.9 million, an increase from 140.0 million in Q4 2023, but organic sales decreased by 7.8% when excluding Enercon's 20.8millioncontribution[8]−GAAPnetlossattributabletoBelshareholdersinQ42024was20.8 million contribution[8] - GAAP net loss attributable to Bel shareholders in Q4 2024 was 1.8 million, compared to a net income of 12.0millioninQ42023[8]−Non−GAAPnetearningsattributabletoBelshareholdersforthefullyear2024were12.0 million in Q4 2023[8] - Non-GAAP net earnings attributable to Bel shareholders for the full year 2024 were 72.1 million, down from 89.6millionin2023[8]−AdjustedEBITDAforthefullyear2024was89.6 million in 2023[8] - Adjusted EBITDA for the full year 2024 was 101.9 million, representing 19.0% of sales, a decrease from 116.8millionor18.3116.8 million or 18.3% of sales in 2023[8] - GAAP net sales for Q4 2024 were 149,859 thousand, an increase from 140,010thousandinQ42023,whileyear−endGAAPnetsalesdecreasedto140,010 thousand in Q4 2023, while year-end GAAP net sales decreased to 534,792 thousand from 639,813thousand[30]−Non−GAAPadjustednetsalesforQ42024were639,813 thousand[30] - Non-GAAP adjusted net sales for Q4 2024 were 149,859 thousand, compared to 139,585thousandinQ42023,withyear−endadjustednetsalesat139,585 thousand in Q4 2023, with year-end adjusted net sales at 534,735 thousand, up from 624,963thousand[30]−GAAPnetearningsforQ42024were624,963 thousand[30] - GAAP net earnings for Q4 2024 were 6,432 thousand, down from 12,036thousandinQ42023,andyear−endnetearningsdecreasedto12,036 thousand in Q4 2023, and year-end net earnings decreased to 49,192 thousand from 73,831thousand[30]−Non−GAAPoperatingincomeforQ42024was73,831 thousand[30] - Non-GAAP operating income for Q4 2024 was 24,629 thousand, slightly up from 23,901thousandinQ42023,whileyear−endnon−GAAPoperatingincomedecreasedto23,901 thousand in Q4 2023, while year-end non-GAAP operating income decreased to 85,417 thousand from 103,512thousand[30]−AdjustedEBITDAforQ42024was103,512 thousand[30] - Adjusted EBITDA for Q4 2024 was 30,327 thousand, compared to 27,251thousandinQ42023,withyear−endadjustedEBITDAat27,251 thousand in Q4 2023, with year-end adjusted EBITDA at 101,874 thousand, down from 116,824thousand[30]MarketandOperationalDevelopments−TheacquisitionofEnercon,completedinQ42024,isexpectedtoenhancescaleanddiversity,makingaerospaceanddefenseBel′slargestendmarket[5]−Thecompanyinitiatedtwofacilityconsolidationprojectsin2024andhiredaGlobalHeadofSalestoenhanceoperationalefficienciesanddrivegrowth[5]−Managementexpressedoptimismfor2025,anticipatingaslowandsteadyreboundindemandfromnetworkinganddistributionpartners[6]SalesandRevenueBreakdown−PowerSolutionsandProtectionsalesdecreasedby21.8116,824 thousand[30] Market and Operational Developments - 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] - The company initiated two facility consolidation projects in 2024 and hired a Global Head of Sales to enhance operational efficiencies and drive growth[5] - Management expressed optimism for 2025, anticipating a slow and steady rebound in demand from networking and distribution partners[6] Sales and Revenue Breakdown - Power Solutions and Protection sales decreased by 21.8% to 245,551 thousand in FY 2024 from 314,105thousandinFY2023[28]−ConnectivitySolutionssalesincreasedby4.7314,105 thousand in FY 2023[28] - Connectivity Solutions sales increased by 4.7% to 220,370 thousand in FY 2024 from 210,572thousandinFY2023[28]TaxandFinancialMetrics−TheeffectivetaxrateforFY2024was20.4210,572 thousand in FY 2023[28] Tax and Financial Metrics - The effective tax rate for FY 2024 was 20.4%, up from 11.4% in FY 2023[20] - The provision for income taxes for Q4 2024 was 953 thousand, compared to 1,463thousandinQ42023,reflectingadecreaseintaxexpenses[30]AssetsandLiabilities−Totalassetsincreasedsignificantlyto1,463 thousand in Q4 2023, reflecting a decrease in tax expenses[30] Assets and Liabilities - Total assets increased significantly to 949,789 thousand in 2024 from 571,631thousandin2023[22]−Cashandcashequivalentsdecreasedto571,631 thousand in 2023[22] - Cash and cash equivalents decreased to 68,253 thousand at the end of 2024 from 89,371thousandattheendof2023[24]−Totalliabilitiesroseto89,371 thousand at the end of 2023[24] - Total liabilities rose to 508,627 thousand in 2024, compared to 231,073thousandin2023[22]CostsandExpenses−Researchanddevelopmentcostsincreasedto231,073 thousand in 2023[22] Costs and Expenses - Research and development costs increased to 6,934 thousand in Q4 2024, up from 5,966thousandinQ42023[20]−InterestexpenseforQ42024was5,966 thousand in Q4 2023[20] - Interest expense for Q4 2024 was 2,815 thousand, significantly higher than 448thousandinQ42023,indicatingincreasedborrowingcosts[30]−RestructuringchargesforQ42024amountedto448 thousand in Q4 2023, indicating increased borrowing costs[30] - Restructuring charges for Q4 2024 amounted to 1,669 thousand, down from 3,808thousandinQ42023,whileacquisition−relatedcostswere3,808 thousand in Q4 2023, while acquisition-related costs were 8,592 thousand in Q4 2024[30] - Restructuring charges for the year ended December 31, 2024, amounted to 3,459million,comparedto3,459 million, compared to 10,114 million in 2023, a reduction of 65.8%[35] - Acquisition-related costs for the year ended December 31, 2024, were 12,884million,whiletherewerenosuchcostsreportedin2023[35]EarningsPerShareandNon−GAAPMeasures−Theearningspershare(EPS)forthethreemonthsendedDecember31,2024,was12,884 million, while there were no such costs reported in 2023[35] Earnings Per Share and Non-GAAP Measures - The earnings per share (EPS) for the three months ended December 31, 2024, was 0.14, down from 0.90inthesameperiodof2023,reflectingadecreaseof84.40.90 in the same period of 2023, reflecting a decrease of 84.4%[35] - Non-GAAP measures for the year ended December 31, 2024, showed net earnings of 90,919 million, compared to 103,350millionin2023,indicatingadeclineof12.0103,350 million in 2023, indicating a decline of 12.0%[36] - The EPS for the year ended December 31, 2024, was 5.47, down from 6.72in2023,adecreaseof18.66.72 in 2023, a decrease of 18.6%[36] - 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] - The company modified its Non-GAAP financial measures to exclude stock-based compensation and amortization of intangibles, enhancing 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] Foreign Currency and Other Losses - Unrealized foreign currency exchange losses for the year ended December 31, 2024, were 1,455 million, compared to 831millionin2023,indicatinganincreaseof75.0831 million in 2023, indicating an increase of 75.0%[36] - The company reported a loss on liquidation of a foreign subsidiary amounting to 2,724 million for the year ended December 31, 2024, compared to 2,043millionin2023,anincreaseof33.42,043 million in 2023, an increase of 33.4%[35] - The total revenue for the year ended December 31, 2024, was 61,808 million, a decrease from $73,831 million in 2023, representing a decline of 16.3%[35]