Littelfuse(LFUS) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 net sales were $529.5 million, down 1% year-over-year, while full year net sales totaled $2.19 billion, a decrease of 7% compared to the previous year[4]. - The company reported a net loss of $39 million for the fourth quarter, compared to a net income of $42.9 million in the same period last year[17]. - Net income for the year ended December 28, 2024, was $113,003, a decrease of 56.4% compared to $259,485 in 2023[19]. - Total net sales for the fourth quarter of 2024 were $529,505, down 0.8% from $533,807 in the same quarter of 2023, with year-to-date sales declining 7.3% to $2,190,768 from $2,362,657[20]. - The operating loss for the fourth quarter of 2024 was $36,686, a significant decline of 156.9% compared to an operating income of $64,523 in Q4 2023[20]. - The adjusted diluted EPS for the year-to-date 2024 was $8.48, down 27.5% from $11.74 in 2023[24]. Cash Flow and Assets - Cash flow from operations for the full year was $368 million, with free cash flow amounting to $292 million[4]. - Cash provided by operating activities for the year ended December 28, 2024, was $367,621, a decrease of 19.6% from $457,387 in 2023[19]. - The company reported a net cash used in investing activities of $65,782 for the year ended December 28, 2024, compared to $284,317 in 2023[19]. - The company had cash, cash equivalents, and restricted cash of $726,437 at the end of the period, an increase from $557,123 at the beginning[19]. - Free cash flow for Q4-24 was $134.8 million, compared to $121.2 million in Q4-23, while YTD free cash flow was $291.7 million, down from $371.2 million in YTD 2023[27]. Dividends and Future Expectations - The company declared a cash dividend of $0.70 per share, payable on March 6, 2025[6]. - The company expects first quarter 2025 net sales to be in the range of $520 - $550 million and adjusted diluted EPS between $1.70 - $1.90[4]. - Littelfuse's operational improvements and design win momentum are expected to drive solid earnings expansion in 2025[3]. Expenses and Impairments - Research and development expenses for the full year were $107.8 million, reflecting a focus on innovation and product development[17]. - The company recorded $92.6 million in non-cash impairment charges in Q4-24, primarily related to intangible assets and goodwill in the Industrial and Transportation segments[32]. Debt and Liabilities - Total current assets increased to $1.57 billion in 2024 from $1.41 billion in 2023, primarily driven by cash and cash equivalents rising to $724.9 million[15]. - Total liabilities decreased to $1.48 billion in 2024 from $1.52 billion in 2023, with long-term debt less current portion at $788.5 million[15]. - Consolidated total debt as of December 28, 2024, was $856.1 million, with net debt at $557.0 million[28]. - The Consolidated Net Leverage Ratio was reported at 1.2x, with a covenant threshold of 3.50:1.00 triggering an Event of Default if exceeded[29]. Segment Performance - The operating margin for the Electronics segment in Q4 2024 was 12.3%, down from 18.0% in Q4 2023, indicating a decline of 5.7%[22]. - The Transportation segment saw an operating margin increase to 9.0% in Q4 2024 from 4.7% in Q4 2023, reflecting a growth of 4.3%[22]. - Adjusted EBITDA for Q4-24 was $55.3 million for Electronics, $23.4 million for Transportation, and $17.0 million for Industrial, with margins of 19.3%, 14.5%, and 20.8% respectively[26]. - Year-to-date (YTD) 2024, Adjusted EBITDA reached $247.9 million for Electronics, $105.2 million for Transportation, and $61.0 million for Industrial, with margins of 20.9%, 15.6%, and 18.4% respectively[26]. - Net sales for Q4-24 showed a decline of 4% in Electronics, 1% in Transportation, and a growth of 12% in Industrial, resulting in an overall decline of 1%[26]. - For YTD 2024, net sales declined by 12% in Electronics, 1% in Transportation, and 1% in Industrial, leading to an overall decline of 7%[26]. Tax and Interest - The effective tax rate for Q4-24 was (30.4)%, compared to 27.3% in Q4-23, with adjusted effective tax rates of 12.9% and 26.1% respectively[27]. - The interest expense for the year-to-date 2024 was $38,717, slightly down from $39,866 in 2023[20].