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Bel Fuse (BELFA) - 2021 Q3 - Quarterly Report
BELFABel Fuse (BELFA)2021-11-04 16:00
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Revenue and Earnings - Revenue for the three months ended September 30, 2021, was 146.966million,anincreaseof18.1146.966 million, an increase of 18.1% compared to 124.492 million for the same period in 2020[10]. - Net earnings available to common stockholders for the three months ended September 30, 2021, were 5.734million,adecreaseof23.35.734 million, a decrease of 23.3% from 7.475 million in the same period in 2020[10]. - Net earnings for the nine months ended September 30, 2021, were 16,813,000,comparedto16,813,000, compared to 9,244,000 for the same period in 2020, representing an increase of 82.7%[16]. - Comprehensive income for the three months ended September 30, 2021, was 3.898million,comparedto3.898 million, compared to 11.129 million for the same period in 2020[12]. - The company reported a net loss of 3,804,000forthequarterendedDecember31,2019,highlightingchallengesfacedduringthatperiod[15].ExpensesandCosts−ResearchanddevelopmentcostsforthethreemonthsendedSeptember30,2021,were3,804,000 for the quarter ended December 31, 2019, highlighting challenges faced during that period[15]. Expenses and Costs - Research and development costs for the three months ended September 30, 2021, were 5.918 million, slightly up from 5.713millioninthesameperiodof2020[10].−Selling,generalandadministrativeexpensesfortheninemonthsendedSeptember30,2021,were5.713 million in the same period of 2020[10]. - Selling, general and administrative expenses for the nine months ended September 30, 2021, were 64.757 million, up from 59.140millioninthesameperiodof2020[10].−Thecompanyreporteddepreciationandamortizationexpensesof59.140 million in the same period of 2020[10]. - The company reported depreciation and amortization expenses of 12,514,000 for the nine months ended September 30, 2021, slightly up from 12,322,000in2020[16].−Thecompanyincurred12,322,000 in 2020[16]. - The company incurred 1.5 million in interest expense for the three months ended September 30, 2021, compared to 1.2millionforthesameperiodin2020,reflectinganincreaseofapproximately251.2 million for the same period in 2020, reflecting an increase of approximately 25%[69]. - Stock-based compensation expense for the quarter was 598,000, reflecting ongoing investment in employee incentives[14]. Acquisitions and Investments - The acquisition of rms Connectors was completed for 9,000,000,enhancingthecompany′smilitaryandaerospaceproductportfolio[25].−TheacquisitionofEOSPowerwascompletedfor9,000,000, enhancing the company's military and aerospace product portfolio[25]. - The acquisition of EOS Power was completed for 7,800,000, expected to strengthen the company's position in industrial and medical markets[26]. - The company incurred 16,811,000incashpaymentsforacquisitionsduringtheninemonthsendedSeptember30,2021[16].−Thefairvalueofidentifiablenetassetsacquiredwas16,811,000 in cash payments for acquisitions during the nine months ended September 30, 2021[16]. - The fair value of identifiable net assets acquired was 18,055 thousand, with goodwill of 2,659thousandduringtheperiod[16].−The2021AcquiredCompaniescontributedrevenuesof2,659 thousand during the period[16]. - The 2021 Acquired Companies contributed revenues of 4.3 million and estimated net earnings of 0.2millionforthethreemonthsendedSeptember30,2021[33].AssetsandLiabilities−Totalliabilitiesandstockholders′equityasofSeptember30,2021,were0.2 million for the three months ended September 30, 2021[33]. Assets and Liabilities - Total liabilities and stockholders' equity as of September 30, 2021, were 487.583 million, an increase from 453.866millionasofDecember31,2020[10].−Totalcashandcashequivalentsattheendoftheperiodwere453.866 million as of December 31, 2020[10]. - Total cash and cash equivalents at the end of the period were 61,961,000, down from 81,129,000attheendofthepreviousyear[16].−TheestimatedfairvalueoftotaldebtasofSeptember30,2021,was81,129,000 at the end of the previous year[16]. - The estimated fair value of total debt as of September 30, 2021, was 112.5 million, compared to a carrying amount of 112.0million[53].−Thecompanyrecordedliabilitiesforuncertaintaxpositionstotaling112.0 million[53]. - The company recorded liabilities for uncertain tax positions totaling 27.6 million as of September 30, 2021, a decrease from 28.5milliononDecember31,2020[72].−Thetotalidentifiableassetsincreasedfrom28.5 million on December 31, 2020[72]. - The total identifiable assets increased from 11,707 million to 20,980million,reflectingasignificantgrowthinassetbase[29].CashFlowandFinancialPosition−Cashflowsfromoperatingactivitiesresultedinanetcashusedof20,980 million, reflecting a significant growth in asset base[29]. Cash Flow and Financial Position - Cash flows from operating activities resulted in a net cash used of 1,714,000 for the nine months ended September 30, 2021, a significant decrease from the net cash provided of 34,769,000in2020[16].−Thecompanyreportedanetcashusedininvestingactivitiesof34,769,000 in 2020[16]. - The company reported a net cash used in investing activities of 13,716,000, compared to 4,447,000inthesameperiodof2020[16].−Thecompanyexperiencedunrealizedholdinglossesonmarketablesecuritiesamountingto4,447,000 in the same period of 2020[16]. - The company experienced unrealized holding losses on marketable securities amounting to 1,000 for the quarter ended June 30, 2021[14]. - The company reported a foreign currency translation adjustment of 2,540,000,netoftaxes,forthequarterendedJune30,2021[14].−Theaccumulatedothercomprehensivelossincreasedto2,540,000, net of taxes, for the quarter ended June 30, 2021[14]. - The accumulated other comprehensive loss increased to (19.69) million at September 30, 2021, from (18.06)millionatDecember31,2020[79].MarketPerformance−RevenuefromNorthAmericaforthethreemonthsendedSeptember30,2021,was(18.06) million at December 31, 2020[79]. Market Performance - Revenue from North America for the three months ended September 30, 2021, was 83.546 million, compared to 92.868millioninthesameperiodof2020,showingadeclineofapproximately1092.868 million in the same period of 2020, showing a decline of approximately 10%[39]. - Direct sales to customers accounted for 97.652 million in revenue for the three months ended September 30, 2021, while distribution sales contributed 49.314million[40].−TheCinchConnectivitySolutionssegmentgeneratedrevenueof49.314 million[40]. - The Cinch Connectivity Solutions segment generated revenue of 121,446 million with a gross profit margin of 27.0% for the nine months ended September 30, 2021[87]. - The Power Solutions and Protection segment reported revenue of 159,312millionandagrossprofitmarginof25.7159,312 million and a gross profit margin of 25.7% for the same period[87]. - The Magnetic Solutions segment achieved revenue of 115,593 million with a gross profit margin of 20.8% for the nine months ended September 30, 2021[87]. Legal and Regulatory Matters - A patent infringement lawsuit was filed against the company, which may impact its operations[82]. - The estimated liability related to ongoing tax matters in Italy is approximately $12.0 million, included as a liability for uncertain tax positions[83]. - The company is not involved in any other legal proceedings that are likely to materially affect its financial condition[84].