EXHIBIT 99.1
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[LITTLEFUSE LOGO] NEWS
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NEWS RELEASE
CONTACT: PHIL FRANKLIN,
VICE PRESIDENT, OPERATIONS SUPPORT & CFO (847)391-0566
LITTLEFUSE REPORTS THIRD QUARTER RESULTS
DES PLAINES, ILLINOIS, NOVEMBER 1, 2004 - Littelfuse, Inc.
(NASDAQ/NMS:LFUS) today reported sales and earnings for the third quarter of
2004.
Sales for the third quarter of 2004 were $135.9 million, a 44%
increase from sales of $94.7 million in the third quarter of 2003. The recent
acquisition of a majority interest in Heinrich Industrie accounted for $23.4
million of the increase from the prior year quarter. Excluding Heinrich, sales
for the third quarter of 2004 increased 19% compared to the prior year quarter.
Diluted earnings per share were $0.49 in the third quarter of 2004 compared to
$0.19 for the third quarter of 2003. Heinrich was accretive to earnings by
approximately $0.02 per share for the third quarter of 2004. Littelfuse acquired
a majority interest in Heinrich on May 6, 2004 and currently owns approximately
87% of its shares.
For the first nine months of 2004, sales were $376.1 million, a 58%
increase from sales of $237.5 million for the first nine months of 2003. Diluted
earnings per share through the first nine months of 2004 were $1.38 compared to
earnings of $0.51 per share for the first nine months of 2003.
"Strong performance in our electronic markets and the addition of
Heinrich contributed to record sales and earnings for the third quarter," said
Howard B. Witt, Chairman, President and Chief Executive Officer. "There was much
to be pleased with in our third quarter performance, including continued growth
in our electronics business, continued margin improvement across all of our
businesses and the positive contributions of both the Teccor and Heinrich
acquisitions."
By geographic segment and excluding Heinrich, sales for the third
quarter of 2004 increased 19% in the Americas, 19% in Europe and 18% in Asia,
compared to the same period in the prior year. By market and excluding Heinrich,
sales for the third quarter of 2004 were up 27% for electronics, 1% for
automotive and 9% for electrical, compared to the prior year period. Favorable
currency effects contributed two percentage points to the overall growth rate,
with electronics and automotive benefiting two points and three points,
respectively.
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"Our electronic business benefited from the strong momentum built up in
the first half of the year. While we have seen some recent slowing, due in part
to increased inventory in our distribution channels, we believe our end markets
are still fundamentally healthy," said Witt. "After a strong first half, our
automotive business slowed as expected in the third quarter. Electrical sales
continue to trend above last year, reflecting steady recovery in the industrial
and non-residential construction markets."
"Cost reduction efforts in manufacturing, purchasing and logistics
continue to produce results," said Phil Franklin, Vice President, Operations
Support and Chief Financial Officer. "Operating margin for the base business hit
15% for the first time since 2000 and Heinrich margins, while well below those
of Littelfuse, have begun to improve," added Franklin.
Cash from operating activities was $23.6 million for the third quarter
of 2004, compared to $18.5 million for the same quarter last year. Through nine
months of 2004, cash from operating activities was $42.7 million compared to
$26.9 million for the prior year period. Capital expenditures for the first nine
months were $16.4 million compared to $11.7 million for the prior year period.
"Free cash flow was strong in the third quarter despite increases in inventories
and capital expenditures, and should continue strong through the end of the
year," said Franklin.
During the third quarter, Littelfuse repurchased 168,400 shares of its
common stock at an average price of $33.28. These are the only shares purchased
to date in 2004.
"While we have begun to see softness in some of our markets, we cannot
help but be pleased with the performance of the Company this year," said Witt.
"Teccor is now fully integrated and contributing in a major way, both
strategically and financially. Heinrich has been accretive from day one and all
early signs continue to be positive, although much of the integration is still
in front of us. We continue to have success in our relentless pursuit of cost
reductions, which has positioned us well in our very competitive markets. And
finally, we are more convinced than ever that our solution selling strategy is
the right approach at the right time, as it begins to produce results in the
marketplace."
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Littelfuse will host a conference call today, Monday, November 1, 2004, at 11:00
a.m. Eastern/10:00 a.m. Central time to discuss the third 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 December 31, 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, Germany, Hungary 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.
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"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.
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LITTELFUSE, INC.
SALES BY MARKET AND GEOGRAPHY
(Dollars in millions)
THIRD QUARTER YEAR-TO-DATE
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2004 2003 % CHANGE 2004 2003 % CHANGE
------ ------ -------- ------ ------ --------
MARKET
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Electronics $ 79.2 $ 62.5 27% $230.9 $139.4 66%
Automotive 23.4 23.1 1% 78.6 72.4 9%
Electrical 9.9 9.1 9% 28.6 25.7 11%
------ ------ ------ ------ ------ --
Subtotal 112.5 94.7 19% 338.1 237.5 42%
Heinrich 23.4 - - 38.0 - -
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TOTAL $135.9 $ 94.7 44% $376.1 $237.5 58%
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THIRD QUARTER YEAR-TO-DATE
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2004 2003 % CHANGE 2004 2003 % CHANGE
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GEOGRAPHY
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Americas $ 57.4 $ 46.4 24% $166.0 $117.3 42%
Europe 23.5 15.3 54% 75.5 43.7 73%
Asia Pacific 55.0 33.0 67% 134.6 76.5 76%
------ ------ ------ ------ ------ --
TOTAL $135.9 $ 94.7 44% $376.1 $237.5 58%
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LITTELFUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data, unaudited)
For the Three Months Ended For the Nine Months Ended
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OCT 2, Sept 27, OCT 2, Sept 27,
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2004 2003 2004 2003
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Net sales $ 135,926 $ 94,696 $ 376,103 $ 237,447
Cost of sales 86,565 66,910 242,758 162,709
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Gross profit 49,361 27,786 133,345 74,738
Selling, general and administrative
expenses 26,181 18,228 70,296 49,449
Research and development expenses 4,324 2,297 11,661 6,092
Amortization of intangibles 480 192 1,289 575
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Operating income 18,376 7,069 50,099 18,622
Interest expense 387 544 1,305 1,594
Other (income) expense 303 160 (158) (391)
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Income before income taxes
and minority interest 17,686 6,365 48,952 17,419
Minority interest 75 - 135 -
Income taxes 6,361 2,292 17,617 6,271
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Net income $ 11,250 $ 4,073 $ 31,200 $ 11,148
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Net income per share:
Basic $ 0.50 $ 0.19 $ 1.41 $ 0.51
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Diluted $ 0.49 $ 0.19 $ 1.38 $ 0.51
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Weighted average shares and equivalent
shares outstanding:
Basic 22,350 21,823 22,189 21,794
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Diluted 22,844 21,955 22,594 21,862
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LITTELFUSE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
OCTOBER 2, 2004 January 3, 2004
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ASSETS:
Cash and cash equivalents ......................... $ 27,325 $ 22,128
Receivables ....................................... 82,959 52,149
Inventories ....................................... 78,769 52,598
Other current assets .............................. 28,372 22,265
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Total current assets .............................. 217,425 149,140
Property, plant, and equipment, net ............... 130,247 98,479
Intangible assets, net ............................ 18,797 11,943
Goodwill .......................................... 61,704 48,643
Other assets ...................................... 9,604 3,365
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.................................................... $437,777 $311,570
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LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities excluding current portion
of long-term debt ............................. $100,334 $ 64,892
Current portion of long-term debt ................. 38,403 18,496
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Total current liabilities ......................... 138,737 83,388
Long-term debt .................................... 1,574 10,201
Accrued post-retirement benefits .................. 18,717 4,564
Other long-term liabilities ....................... 14,476 1,072
Minority interest ................................. 12,309 143
Shareholders' equity .............................. 251,964 212,202
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Shares issued and outstanding
at October 2, 2004: 22,252,982 ............... $437,777 $311,570
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LITTELFUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
For the Three Months Ended For the Nine Months Ended
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OCT 2, Sept 27, OCT 2, Sept 27,
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2004 2003 2004 2003
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Operating activities:
Net income ............................................. $ 11,250 $ 4,073 $ 31,200 $ 11,148
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation ...................................... 5,828 5,223 17,644 13,857
Amortization ...................................... 480 192 1,289 575
Changes in operating assets and liabilities:
Accounts receivable ............................... (598) (2,806) (14,416) (4,608)
Inventories ....................................... (6,834) 4,309 (8,067) 1,588
Accounts payable and accrued expenses ............. 1,817 6,428 3,596 5,814
Other, net ........................................ 11,683 1,125 11,442 (1,431)
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Net cash provided by operating activities .............. 23,626 18,544 42,688 26,943
Cash provided by (used in) investing activities:
Purchases of property, plant, and equipment ............ (7,343) (9,136) (16,394) (11,712)
Acquisitions, net of cash acquired ..................... (2,512) (44,496) (35,319) (44,496)
Sale of property, plant & equipment .................... 2,684 - 2,684 -
Sale of marketable securities, net ..................... - - - 8,806
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Net cash provided by (used in) investing activities .... (7,171) (53,632) (49,029) (47,402)
Cash provided by (used in) financing activities:
Proceeds from long-term debt ...................... 700 30,500 32,700 30,500
Payments of long-term debt ........................ (19,603) (28,550) (22,650) (29,991)
Proceeds from exercise of stock options ........... 2,026 282 10,335 982
Purchase of treasury stock ........................ (5,604) - (5,604) -
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Net cash provided by (used in) financing activities .... (22,481) 2,232 14,781 1,491
Effect of exchange rate changes on cash ................ (1,033) 1,315 (3,243) 1,956
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Increase/(decrease) in cash and cash equivalents ....... (7,059) (31,541) 5,197 (17,012)
Cash and cash equivalents at beginning of period ....... 34,384 42,279 22,128 27,750
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Cash and cash equivalents at end of period ............. $ 27,325 $ 10,738 $ 27,325 $ 10,738
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