Bel Fuse (US:BELFB)2024-04-25 20:38Financial Performance - Net sales for Q1 2024 were $128.09 million, a decrease of 25.7% from $172.34 million in Q1 2023[6] - Gross profit for Q1 2024 was $48.08 million, representing a gross margin of 37.5%, up from 31.1% in Q1 2023[6] - Net earnings for Q1 2024 increased to $15.87 million, or 12.4% of net sales, compared to $14.57 million, or 8.5% of net sales in Q1 2023[6] - Adjusted EBITDA for Q1 2024 was $24.5 million, representing 19.2% of sales, down from $28.1 million or 16.3% of sales in Q1 2023[36] - Non-GAAP adjusted net sales for Q1 2024 were $128.0 million, compared to $164.6 million in Q1 2023[23] Future Projections - The company expects Q2 2024 GAAP net sales to be in the range of $125 to $135 million, with gross margins projected between 34% and 36%[14] - The company anticipates continued challenges in the macroeconomic environment, impacting future sales and growth strategies[31] Expenses and Costs - Research and development costs for Q1 2024 were $5.22 million, slightly down from $5.23 million in Q1 2023[6] - Selling, general, and administrative expenses were $24.94 million, accounting for 19.5% of net sales, compared to 14.7% in Q1 2023[6] Cash and Assets - Cash and cash equivalents decreased to $71.32 million as of March 31, 2024, down from $89.37 million at the end of 2023[17] - Total assets as of March 31, 2024, were $555.34 million, a decrease from $571.63 million at the end of 2023[17] - The company reported a decrease in net cash provided by operating activities to $6.19 million in Q1 2024, down from $16.84 million in Q1 2023[12] - Total liabilities decreased to $208.68 million as of March 31, 2024, from $231.07 million at the end of 2023[17] Segment Performance - The Power Solutions and Protection segment reported sales of $60.2 million in Q1 2024, a decline of 27.6% from $83.2 million in Q1 2023[20] - Connectivity Solutions segment sales increased slightly by 1.7% to $54.3 million in Q1 2024 from $53.4 million in Q1 2023[20] - Magnetic Solutions segment experienced a significant decline of 62.1%, with sales dropping to $13.6 million from $35.8 million in Q1 2023[20] - The Connectivity segment experienced robust sales in commercial air, defense, and emerging space markets[39] - Significant margin expansion was noted in the Power Solutions and Protection and Connectivity segments compared to Q1-23[39] - The Magnetics business faced challenges as customers and distribution partners worked through existing inventory[39] Share Repurchase - The company repurchased 109,000 shares of stock at an aggregate cost of $6.3 million through March 31, 2024[36] Profitability Insights - Q1-24 results showed higher than anticipated profitability despite lower sales volume compared to Q1-23, which was within the expected range[39] - The gross margin percentage achieved in Q1-24 demonstrates the durability of the company's transformation efforts[38]