Summary of Bel Fuse Conference Call Company Overview - **Company Name**: Bel Fuse - **Industry**: Advanced Industrial Technology - **Annual Sales**: Over $650 million - **EBITDA Margin**: Almost 21% - **History**: Established in 1949, with a focus on designing and manufacturing components for electronic circuits - **Recent Recognition**: Named by Forbes as one of America's most successful small companies for 2026 [6][6] Transformation and Growth - **Business Segments**: Operates in three segments: Power (over 50% of sales), Connectivity (about one-third), and Magnetics (13%) [9][10] - **Market Focus**: Nearly 40% of sales are now from aerospace and defense (A&D) markets, up from 17% due to the Enercon acquisition in November 2024 [7][8] - **Sales Performance**: Sales have remained relatively flat over the past five years, with a significant improvement in EBITDA margins from 5% in 2020 to almost 21% [11][12] - **Strategic Changes**: Implemented measures to improve profitability, including SKU-level profitability analysis, price adjustments, and a shift to a pay-for-performance culture [12][12] Demand Trends - **2025 Outlook**: Anticipated continued strength in demand across various markets, with minor pockets of weakness [14][15] - **Recovery Dynamics**: The recovery from the 2024 destocking phase is characterized by actual demand rather than restocking, indicating a more rational market approach [15][15] - **Power Solutions**: Key applications include networking, data centers, AI infrastructure, rail, and e-mobility, with AI-related sales showing robust growth [18][19] Acquisition of Enercon - **Acquisition Details**: Enercon was acquired to enhance exposure to the A&D market, performing as expected with strong visibility for future growth [22][23] - **Sole Source Business**: Enercon has a high percentage of sole-source contracts, which is a strategic focus for Bel Fuse [25][25] Backlog and Visibility - **Backlog Growth**: Increased visibility in the A&D segment due to long lead times for orders, with expectations for a strong 2026 [27][28] - **Portfolio Management**: Shifted focus to more profitable business segments, divesting from less profitable areas [29][29] Margin Sustainability - **Current Margins**: Margins are considered industry-leading, with ongoing efforts to manage costs and maintain profitability despite inflationary pressures [31][32] - **Operational Leverage**: Emphasis on using gross margin improvements to drive top-line growth and invest in new technologies [31][31] Future Growth Opportunities - **Sales Strategy**: Focus on building a robust sales team and implementing CRM systems to enhance market reach and customer relationships [43][44] - **M&A Strategy**: Actively seeking acquisitions in A&D, semiconductors, and medical sectors, with a strong financial position to support growth [66][67] Conclusion - **Overall Outlook**: Bel Fuse is positioned for continued growth with a strong focus on profitability, strategic acquisitions, and expanding its market presence in key sectors like aerospace and defense, AI, and networking [66][67]

Company Overview - Bel Fuse's annual sales are $657 million[6] - Adjusted EBITDA is $137 million, representing 20.9% of sales[6] - Original Equipment Manufacturers (OEM) account for 75% of Bel Fuse's customer base, while distributors make up 25%[10] - North America accounts for 65% of the company's geographic revenue, Asia 19%, and Europe 15%[10] Segment Performance - Power Solutions & Protection revenue was $224.4 million[12] - Connectivity Solutions revenue was $220.4 million[12] - Magnetic Solutions revenue was $210.6 million[12] - Aerospace/Defense TTM revenue was $163.5 million[12] Financial Transformation - Gross Margin has increased from 24.7% in 2021 to 38.7% in TTM Q3-25[14] - Historical Revenue increased from $535 million in 2023 to $657 million in TTM Q3-25[14] - Historical Adjusted EBITDA increased from $101.9 million in 2023 to $137.4 million in TTM Q3-25[18] Growth Drivers - Approximately 40% of Bel's sales support Aerospace & Defense applications[30] - Emerging end markets (Space & AI) have seen significant growth[31]

Core Insights - The Royce Micro-Cap Trust, Inc. focuses on long-term capital growth by investing primarily in micro-cap companies with market capitalizations of $1 billion or less [9] Performance Summary - As of July 31, 2025, the Net Asset Value (NAV) is $10.76, while the market price (MKT) is $9.47 [1] - The average annual total return for the Fund as of July 31, 2025, is as follows: - One-Month NAV: 1.89%, MKT: 2.38% - Year to Date NAV: 2.23%, MKT: 1.32% - One-Year NAV: 4.46%, MKT: 3.60% - Three-Year NAV: 10.51%, MKT: 9.98% - Five-Year NAV: 12.47%, MKT: 13.60% - Ten-Year NAV: 10.08%, MKT: 10.33% [1] Portfolio Diagnostics - The average market capitalization of the portfolio is $740.7 million [4] - The weighted average Price-to-Book (P/B) ratio is 1.8x [5] - The net assets of the Fund total $565.8 million, with a net leverage of 2.3% [4] Portfolio Composition - The top ten positions in the portfolio and their respective percentages of net assets are: - CECO Environmental: 1.4% - American Superconductor: 1.3% - Bel Fuse: 1.3% - Graham Corporation: 1.3% - Argan: 1.1% - IES Holdings: 1.1% - Universal Technical Institute: 1.1% - NPK International: 1.1% - Richardson Electronics: 1.1% [6] - The top five sectors by percentage of net assets are: - Industrials: 29.0% - Information Technology: 20.7% - Financials: 17.3% - Health Care: 9.9% - Consumer Discretionary: 9.7% [8] Trading Information - The average weekly trading volume of the Fund is approximately 660,208 shares [7] - The Fund's adviser has over 50 years of experience in small- and micro-cap investments [7]

Summary of Bel Fuse (BELF.A) FY Conference Call - August 26, 2025 Company Overview - Bel Fuse has been in operation for over 75 years, designing and manufacturing electronic components for various end markets [2][3] - The company reported approximately $630 million in sales, including contributions from the recent Enercon acquisition [3] - Bel Fuse employs around 5,000 people globally and serves a blue-chip customer base [3] Business Diversification - The company has evolved from its original focus on fuses for black and white televisions to supporting diverse sectors such as networking, military, aerospace, rail, e-mobility, space, and AI [4] - Currently, over 40% of sales come from aerospace and defense, with networking accounting for about 25% [6] - The product mix includes approximately 50% power products, 33% connectivity products, and 15% magnetics [6] Financial Performance - Despite relatively flat sales over the past few years, Bel Fuse has achieved significant margin expansion, with gross margins increasing from the mid-twenties to the high thirties and EBITDA margins approaching 20% [20][21] - The company has undertaken initiatives to improve operational efficiency, including facility consolidations and implementing a pay-for-performance compensation structure [19][20] Growth Drivers - Key growth drivers include increased spending in aerospace and defense, with expectations for long-term benefits from NATO-related activities [23][24] - The company is also seeing a rebound in networking and distribution sectors after a destocking phase [26] - Emerging markets such as space and AI, although currently small (approximately $20 million in sales), are viewed as critical for future growth [29] Acquisition of Enercon - The Enercon acquisition, completed in November 2024, is expected to enhance Bel Fuse's capabilities in aerospace and defense, contributing approximately $120 million in sales [27][39] - The acquisition is seen as a strategic move to diversify into new markets, including potential revenue synergies in Europe and Israel [42][43] Market Position and Strategy - Bel Fuse aims to maintain a growth mindset, focusing on organic growth initiatives and potential M&A opportunities [33][34] - The company has hired a global head of sales and procurement to drive sales initiatives and material cost savings [35][36] - The management emphasizes the importance of staying relevant in evolving markets and is committed to continuous improvement and innovation [37] Tariff Impact - Tariffs have had a minimal impact on Bel Fuse, with only 25% of sales potentially affected due to the company's global sales structure [31][32] Conclusion - Bel Fuse presents a compelling investment opportunity with strong financials, diversified end markets, and a commitment to growth through both organic initiatives and strategic acquisitions [37]

Investor Presentation Second Quarter 2025 Safe Harbor Statement The Company's consolidated operating results are affected by a wide variety of factors that could materially and adversely affect revenues and profitability, including the risk factors described in Item 1A of our 2024 Annual Report on Form 10-K. As a result of these and other factors, the Company may experience material fluctuations in future operating results on a quarterly or annual basis, which could materially and adversely affect its busin ...

Core Insights - The Royce Micro-Cap Trust, Inc. focuses on long-term capital growth by investing primarily in equity securities of companies with market capitalizations of $1 billion or less [9] Performance Summary - As of June 30, 2025, the Net Asset Value (NAV) is $10.56, while the market price is $9.25 [1] - The average annual total return for the Fund as of June 30, 2025, shows a one-month return of 8.32% (market: 7.89%), year-to-date return of 0.33% (market: -1.03%), one-year return of 8.64% (market: 9.34%), three-year return of 13.24% (market: 12.87%), five-year return of 13.38% (market: 14.30%), and a ten-year return of 9.25% (market: 9.50%) [1] Portfolio Diagnostics - The average market capitalization of the portfolio is $740.7 million, with net assets totaling $555.3 million and a net leverage of 3.4% [4] - The weighted average Price-to-Book (P/B) ratio is 1.8x [4] Portfolio Composition - The top ten positions in the portfolio each represent approximately 1.1% to 1.3% of net assets, with notable companies including Magnite, Bel Fuse, and Sprott [8] - The top five sectors by percentage of net assets are Industrials (28.3%), Information Technology (21.1%), Financials (17.5%), Health Care (10.6%), and Consumer Discretionary (9.8%) [8] Trading Information - The average weekly trading volume of the Fund is approximately 589,245 shares [10]