Bel Fuse (BELFA) - 2024 Q4 - Annual Results

Financial Performance - Net sales for the full year 2024 were $534.8 million, down 19.7% from $639.8 million in 2023, excluding Enercon's contribution[3] - In Q4 2024, net sales were $149.9 million, an increase from $140.0 million in Q4 2023, but organic sales decreased by 7.8% when excluding Enercon's $20.8 million contribution[8] - Total sales for FY 2024 were $534,792 thousand, a decline of 16.4% from $639,813 thousand in FY 2023[28] - GAAP net sales for Q4 2024 were $149,859 thousand, an increase from $140,010 thousand in Q4 2023, while year-end GAAP net sales decreased to $534,792 thousand from $639,813 thousand[30] - Non-GAAP adjusted net sales for Q4 2024 were $149,859 thousand, compared to $139,585 thousand in Q4 2023, with year-end adjusted net sales at $534,735 thousand, up from $624,963 thousand[30] Profitability - Gross profit margin for Q4 2024 was 37.5%, up from 36.6% in Q4 2023, while the full year gross profit margin improved to 37.8% from 33.7% in 2023[8] - GAAP net loss attributable to Bel shareholders in Q4 2024 was $1.8 million, compared to a net earnings of $12.0 million in Q4 2023[8] - Non-GAAP net earnings attributable to Bel shareholders for the full year 2024 were $72.1 million, down from $89.6 million in 2023[8] - GAAP net earnings for Q4 2024 were $6,432 thousand, down from $12,036 thousand in Q4 2023, and year-end net earnings decreased to $49,192 thousand from $73,831 thousand[30] - Non-GAAP operating income for Q4 2024 was $24,629 thousand, slightly up from $23,901 thousand in Q4 2023, while year-end non-GAAP operating income decreased to $85,417 thousand from $103,512 thousand[30] Expenses and Costs - Research and development costs increased to $6,934 thousand in Q4 2024, up from $5,966 thousand in Q4 2023[20] - Interest expense for Q4 2024 was $2,815 thousand, significantly higher than $448 thousand in Q4 2023, indicating increased borrowing costs[30] - Restructuring charges for Q4 2024 amounted to $1,669 thousand, down from $3,808 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 $3,459 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 $12,884 million, while there were no such costs reported for the previous year[35] Assets and Liabilities - Total assets increased significantly to $949,789 thousand in 2024 from $571,631 thousand in 2023[22] - Long-term debt rose to $287,500 thousand in 2024, compared to $60,000 thousand in 2023[22] - Cash flows from operating activities decreased to $77,654 thousand in 2024 from $108,349 thousand in 2023[24] Future Outlook - For Q1 2025, GAAP net sales are projected to be between $144 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]