Bel Fuse (US:BELFA)2024-04-25 20:38Financial Performance - Net earnings for Q1 2024 increased to $15,874,000 from $14,572,000 in Q1 2023, representing an 8.9% increase[1] - GAAP net sales for Q1 2024 were $128,090,000, down 25.7% from $172,344,000 in Q1 2023[4] - Net sales for Q1 2024 were $128.1 million, down from $172.3 million in Q1 2023[20] - Adjusted EBITDA for Q1 2024 was $24,535,000, compared to $28,073,000 in Q1 2023, reflecting a decrease of 12.1%[6] - Adjusted EBITDA was $24.5 million, representing 19.2% of sales, compared to $28.1 million or 16.3% of sales in Q1 2023[20] - Gross profit margin improved to 37.5%, up from 31.1% in Q1 2023[20] Segment Performance - The Power Solutions and Protection segment saw a 27.6% decline in sales, dropping to $60,247,000 from $83,181,000[4] - Connectivity Solutions segment sales increased slightly by 1.7% to $54,285,000 from $53,396,000[4] - Magnetic Solutions segment experienced a significant decline of 62.1%, with sales falling to $13,558,000 from $35,767,000[4] - The Connectivity segment showed strong sales in commercial air, defense, and the emerging space market[20] - The Power Solutions and Protection segments contributed significantly to margin expansion compared to Q1 2023[20] Cash Flow and Investments - Total cash provided by operating activities decreased significantly to $6,192,000 from $16,835,000, a decline of 63.2%[1] - Cash used in investing activities totaled $15,623,000, compared to $13,711,000 in the previous year, indicating an increase in investment outflows[1] - The effect of exchange rate changes resulted in a cash decrease of $1,500,000, contrasting with a gain of $279,000 in the prior year[1] - The company paid $837,000 in dividends to common stockholders, a slight increase from $829,000 in the previous year[1] Balance Sheet Highlights - Total current assets decreased from $381,478 thousand to $364,339 thousand, a decline of approximately 4%[32] - Cash and cash equivalents decreased from $89,371 thousand to $71,320 thousand, a decline of approximately 20%[32] - Total liabilities decreased from $231,073 thousand to $208,680 thousand, a decline of approximately 10%[32] - Total stockholders' equity increased from $340,558 thousand to $346,657 thousand, an increase of approximately 2%[32] - Total assets decreased from $571,631 thousand to $555,337 thousand, a decline of approximately 3%[32] - Accounts payable decreased from $40,441 thousand to $32,818 thousand, a decline of approximately 19%[32] - Other current liabilities decreased from $63,818 thousand to $47,953 thousand, a decline of approximately 25%[32] - Operating lease liability, long-term increased from $14,212 thousand to $15,727 thousand, an increase of approximately 11%[32] - Goodwill and other intangible assets, net decreased from $76,033 thousand to $73,215 thousand, a decline of approximately 4%[32] - Held to maturity U.S. Treasury securities increased from $37,548 thousand to $49,900 thousand, an increase of approximately 33%[32] Future Outlook - Q2 2024 net sales are expected to range between $125 million and $135 million, with gross margins projected at 34-36%[22] - The company is monitoring inventory destocking and anticipates a rebound in demand by mid-year[22] - Gross margin performance benefited from a favorable product mix and cost savings from facility consolidation efforts[21]