Revenue and Earnings - Revenue for the three months ended September 30, 2021, was $146.966 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 $5.734 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, 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 $3.898 million, compared to $11.129 million for the same period in 2020[12]. - The company reported a net loss of $3,804,000 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 $5.713 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 $59.140 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 $12,322,000 in 2020[16]. - The company incurred $1.5 million in interest expense for the three months ended September 30, 2021, compared to $1.2 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, 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 $16,811,000 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 $2,659 thousand during the period[16]. - The 2021 Acquired Companies contributed revenues of $4.3 million and estimated net earnings of $0.2 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 $453.866 million as of December 31, 2020[10]. - Total cash and cash equivalents at the end of the period were $61,961,000, down from $81,129,000 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 $112.0 million[53]. - The company recorded liabilities for uncertain tax positions totaling $27.6 million as of September 30, 2021, a decrease from $28.5 million on December 31, 2020[72]. - The total identifiable assets increased from $11,707 million to $20,980 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 $34,769,000 in 2020[16]. - The company reported a net cash used in investing activities of $13,716,000, compared to $4,447,000 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, 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) 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 $92.868 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 $49.314 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 $159,312 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].
Bel Fuse (BELFA) - 2021 Q3 - Quarterly Report