NEWS RELEASE
CONTACT: PHIL FRANKLIN,
VICE PRESIDENT, OPERATIONS SUPPORT & CFO (847) 391-0566
LITTELFUSE REPORTS FIRST QUARTER RESULTS
DES PLAINES, ILLINOIS, APRIL 28, 2004 - Littelfuse, Inc.
(NASDAQ/NMS:LFUS) today reported sales and earnings for the first quarter of
2004.
Sales for the first quarter of 2004 were $111.4 million, a 59% increase
from sales of $70.0 million in the first quarter of 2003. Teccor Electronics,
which was acquired on July 7, 2003, contributed $24.4 million in sales for the
quarter. Excluding Teccor, sales for the first quarter of 2004 increased 24%
compared to the prior year quarter. Diluted earnings per share were $0.43 in the
first quarter of 2004 compared to $0.15 for first quarter of 2003.
"As we reported in our mid-quarter update on March 2nd, sales and
bookings continue to show strength across all geographies and all end markets,"
said Howard B. Witt, Chairman, President and Chief Executive Officer. "It is now
clear that we are in the midst of a broad-based economic recovery, and we
believe that our solutions selling strategy is beginning to contribute to top
line growth. We have been pleased so far with our ability to ramp-up production
to meet these higher demand levels and with the exceptional results from the
integration of Teccor."
By geographic segment, sales for the first quarter of 2004 increased
53% in the Americas, 57% in Europe and 70% in Asia, compared to the same period
in the prior year. By market, sales for the first quarter of 2004 were up 100%
for electronics, 15% for automotive and 6% for electrical compared to the first
quarter of 2003. Excluding Teccor, sales for the first quarter of 2004 increased
35% for electronics, 15% for automotive and 6% for electrical. Favorable
currency effects contributed three percentage points to the overall growth rate,
with electronics and automotive benefiting three points and five points,
respectively.
"In our electronics business, the strength in Asian digital consumer
products, which has been evident for over a year, has now been joined by
improving markets in the U.S. and Europe, primarily related to recoveries in the
telecom and industrial markets," said Witt. "Automotive sales are ahead of last
year, due primarily to higher sales in North America to support a recall program
for one of our large OEM customers and favorable currency effects in Europe. Our
electrical sales are finally beginning to trend positive as the North American
electrical market is showing early signs of recovery," added Witt.
"Margins continue to improve, reflecting operating leverage on the
higher sales, excellent progress on the Teccor integration, continued cost
reductions in excess of price erosion and favorable currency effects," said Phil
Franklin, Vice President, Operations Support and Chief Financial Officer. "On
the other hand, free cash flow for the quarter was slightly negative due to
working capital growth to support higher sales levels and approximately $4
million of cash spent for Teccor restructuring, which was charged against
purchase accounting reserves," added Franklin.
"As the recovery in our end markets progresses, we are taking the
necessary steps to ensure we have capacity to meet even higher demand levels
should they occur," said Franklin. "At the same time, we have initiated a series
of projects to further consolidate and reduce costs in our global manufacturing
and distribution operations. These programs are expected to generate substantial
future cost savings, but will also have associated restructuring charges of
approximately $3 million pre-tax, most of which will be incurred over the next
two quarters," added Franklin.
Littelfuse will host a conference call today, Wednesday, April 28, 2004, at
12:00 p.m. Eastern/11:00 a.m. Central time to discuss the first quarter results.
The call will be broadcast live over the Internet and can be accessed through
the company's Web site: www.littelfuse.com. Listeners should go to the Web site
at least 15 minutes prior to the call to download and install any necessary
audio software. The call will be available for replay through June 30, 2004, and
can be accessed through the Web site listed above.
Littelfuse is a global company offering the broadest line of circuit protection
products in the industry. In addition to its Des Plaines world headquarters,
Littelfuse has manufacturing facilities in England, Ireland, Switzerland,
Mexico, China and the Philippines, as well as in Des Plaines and Arcola,
Illinois and Irving, Texas. It also has sales, engineering and distribution
facilities in the Netherlands, Singapore, Hong Kong, Korea, Taiwan, Japan and
Brazil.
For more information, please visit Littelfuse's web site at www.littelfuse.com
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995. Any forward looking statements contained herein involve risks and
uncertainties, including, but not limited to, product demand and market
acceptance risks, the effect of economic conditions, the impact of competitive
products and pricing, product development and patent protection,
commercialization and technological difficulties, capacity and supply
constraints or difficulties, exchange rate fluctuations, actual purchases under
agreements, the effect of the company's accounting policies, labor disputes,
restructuring costs in excess of expectations and other risks which may be
detailed in the company's Securities and Exchange Commission filings.
CONTACT: Phil Franklin, Vice President, Operations Support & CFO (847) 391-0566
LITTELFUSE, INC.
SALES BY MARKET AND GEOGRAPHY
(Dollars in millions)
FIRST QUARTER
-------------------------------
2004 2003 % CHANGE
------- ------- --------
MARKET
Electronics $ 50.1 $ 37.2 35%
Automotive 28.2 24.6 15%
Electrical 8.7 8.2 6%
Subtotal 87.0 70.0 24%
------- ------- --
Teccor 24.4 - -
------- ------- --
TOTAL $ 111.4 $ 70.0 59%
======= ======= ==
FIRST QUARTER
----------------------------
2004 2003 % CHANGE
------ ------ ---------
GEOGRAPHY
Americas $ 53.2 $ 34.7 53%
Europe 20.9 13.3 57%
Asia Pacific 37.3 22.0 70%
------ ------ ------
TOTAL $111.4 $ 70.0 59%
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LITTELFUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
For the Three Months Ended
--------------------------
............................................................ APRIL 3, March 29,
............................................................ 2004 2003
-------- --------
Net sales.................................................. $111,418 69,962
Cost of sales.............................................. 71,613 46,884
-------- --------
Gross profit............................................... 39,805 23,078
Selling, general and administrative expenses............... 20,543 15,721
Research and development expenses.......................... 3,181 1,934
Amortization of intangibles................................ 339 192
-------- --------
Operating income........................................... 15,742 5,231
Interest expense........................................... 426 537
Other (income)/expense..................................... 307 (342)
-------- --------
Income before income taxes................................. 15,009 5,036
Income taxes............................................... 5,403 1,813
-------- --------
Net income................................................. $ 9,606 $ 3,223
======== ========
Net income per share:
Basic.................................................. $ 0.44 $ 0.15
======== ========
Diluted................................................ $ 0.43 $ 0.15
======== ========
Weighted average shares and equivalent shares outstanding:
Basic.................................................. 22,032 21,771
======== ========
Diluted................................................ 22,388 21,821
======== ========
LITTELFUSE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
APRIL 3, 2004 January 3, 2004
------------- ---------------
ASSETS:
Cash and cash equivalents.............................. $ 23,895 $ 22,128
Receivables, net....................................... 60,282 52,149
Inventories, net....................................... 54,430 52,598
Other current assets................................... 25,166 22,265
----------- -----------
Total current assets................................... 163,773 149,140
Property, plant, and equipment, net.................... 94,140 98,479
Intangible assets, net................................. 11,604 11,943
Goodwill............................................... 48,643 48,643
Other assets........................................... 2,945 3,365
----------- -----------
........................................................ $ 321,105 $ 311,570
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities excluding current portion
of long-term debt.................................. $ 62,372 $ 64,892
Current portion of long-term debt...................... 18,685 18,496
----------- -----------
Total current liabilities.............................. 81,057 83,388
Long-term debt......................................... 10,155 10,201
Accrued post-retirement benefits....................... 5,301 4,564
Other long-term liabilities............................ 1,233 1,215
Shareholders' equity................................... 223,359 212,202
----------- -----------
Shares issued and outstanding
at April 3, 2004: 22,063,943........... $ 321,105 $ 311,570
=========== ===========
LITTELFUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
For the Three Months Ended
--------------------------
APRIL 3, March 29,
2004 2003
-------- ---------
Operating activities:
Net income ................................................... $ 9,606 $ 3,223
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation ............................................ 5,639 4,342
Amortization ............................................ 339 192
Changes in operating assets and liabilities:
Accounts receivable ..................................... (8,221) (2,335)
Inventories ............................................. (2,370) (2,497)
Accounts payable and accrued expenses ................... (410) 553
Other, net .............................................. (1,648) (2,872)
-------- --------
Net cash provided by operating activities .................... $ 2,935 $ 606
Cash used in investing activities:
Purchases of property, plant, and equipment, ............ (2,992) (2,627)
Sale of property, plant, and equipment................... - 2,213
Sale (purchase) of short term investments ............... - (1,597)
-------- --------
Net cash used in investing activities ................... (2,992) (2,011)
Cash provided by (used in) financing activities:
Payments of long-term debt .............................. (39) (1,444)
Proceeds from exercise of stock options and warrants .... 1,884 636
-------- --------
Net cash provided by (used in) financing activities ..... 1,845 (808)
Effect of exchange rate changes on cash ...................... (21) (23)
-------- --------
Increase (decrease) in cash and cash equivalents ............. 1,767 (2,236)
Cash and cash equivalents at beginning of period ............. 22,128 27,750
-------- --------
Cash and cash equivalents at end of period ................... $ 23,895 $ 25,514
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