Exhibit 99.1
[LITTELFUSE LETTERHEAD]
NEWS RELEASE
CONTACT: PHIL FRANKLIN,
VICE PRESIDENT, OPERATIONS SUPPORT & CFO (847) 391-0566
LITTELFUSE REPORTS FOURTH QUARTER RESULTS AT THE HIGH END OF GUIDANCE
DES PLAINES, ILLINOIS, FEBRUARY 6, 2007 - Littelfuse, Inc.
(NASDAQ/NGS:LFUS) today reported sales and earnings for the fourth quarter and
full year of 2006.
Fourth Quarter Highlights
o Sales for the fourth quarter of 2006 were $127.8 million, up $12.5
million or 10.8% compared to the fourth quarter of 2005. This
increase reflects acquisitions ($5.2 million), favorable currency
effects ($2.7 million) and higher sales in Asia resulting from
growth in both the electronics and automotive markets.
o Sales in the fourth quarter of 2006 were down 10.9% compared to
the third quarter of 2006. This was within the range of the
company's previous guidance, which called for a 10-15% sequential
sales decrease. This sales decrease reflected seasonal factors and
an inventory correction in the electronics markets.
o Diluted earnings per share for the fourth quarter of 2006 were
$0.21 compared to diluted earnings per share of $0.23 for the
fourth quarter of 2005. Earnings for the fourth quarter of 2006
included $2.7 million of pre-tax restructuring charges related
primarily to the previously announced move of the Texas wafer
fabrication facility to China and a $1.4 million one-time benefit
from a favorable tax law change in Germany.
o Adjusted diluted earnings per share for the fourth quarter of 2006
(see Supplemental Schedule) were $0.25. This excludes the
restructuring charges mentioned above and normalizes the tax rate
to 32%, which is the company's best estimate of the average tax
rate going forward. Adjusted earnings per share of $0.25 were at
the upper end of the company's previous guidance, which called for
earnings in the range of $0.18 to $0.25 per share, reflecting
sales at the higher end of guidance and a lower-than-expected tax
rate.
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o Cash flow from operating activities was a record $26.0 million for
the fourth quarter of 2006 compared to $10.8 million for the prior
year quarter. The increase in cash flow was primarily the result
of a $16.9 million reduction in accounts receivable.
o The book-to-bill ratio for electronics for the fourth quarter of
2006 was .88. This is down from .91 for the third quarter of 2006
and consistent with the expectation of an inventory correction
that carries into the first quarter of 2007.
o As expected, overall capacity utilization for electronics dropped
from about 85% in the third quarter to approximately 80% in the
fourth quarter of 2006.
Full Year Highlights
o Sales for 2006 were a record $534.9 million, up $67.8 million or
14.5% compared to the prior year primarily reflecting strong
growth in the electronics business across all regions. Also
contributing to the 2006 sales increase were revenue from recent
acquisitions ($11.8 million), automotive growth outside of North
America and continued steady growth in the electrical business.
o Diluted earnings per share for 2006 were $1.06, up 36% from $0.78
in the prior year due primarily to increased sales, cost
reductions and a lower effective tax rate partially offset by
higher restructuring charges in 2006.
o Cash from operating activities was a record $81.4 million for
2006, compared to $38.1 million for 2005 reflecting stronger
profitability and improved working capital performance. This
enabled the company to fund $19.6 million of capital expenditures,
$37.8 million of acquisitions and $10.3 million of stock
repurchases and still increase its cash balance.
"2006 was a year of great progress on many fronts," said Gordon Hunter,
Chief Executive Officer. "We ramped up our organic growth initiatives. We closed
four acquisitions and reached a definitive agreement on a fifth. We successfully
completed the Swindon, England and Witten, Germany plant moves to China and the
move of the thin film fuse back-end from Des Plaines, Illinois to the
Philippines. In addition, we announced and have begun to execute plans to move
manufacturing out of Ireland and Irving, Texas to China. Throughout 2006, we
were busy building the foundation for improved future financial performance, and
in the process we significantly increased earnings and set a new Littelfuse
record for cash flow."
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Current Outlook
o Sales for the first quarter of 2007 are expected to be at a
similar level to sales for the fourth quarter of 2006.
o Earnings for the first quarter of 2007 are expected to be in the
range of $0.32 to $0.37 per share.
"It appears as if the electronics inventory correction will be with us
through the first quarter, but for the year we expect the overall business to
grow approximately 3-5%," said Hunter. "Even with this modest growth, our cost
reduction initiatives should drive margin improvement as the year progresses. We
still believe that earnings of $2.00 per share is achievable in 2007."
Conference Call Webcast Information
Littelfuse will host a conference call today, Tuesday, February 6, 2007
at 11:00 a.m. Eastern/10:00 a.m. Central time to discuss the fourth 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 March
31, 2007 and can be accessed through the Web site listed above.
About Littelfuse
As the worldwide leader in circuit protection products and solutions
with annual sales of $534.9 million in 2006, the Littelfuse portfolio is backed
by industry leading technical support, design and manufacturing expertise.
Littelfuse products are vital components in virtually every product that uses
electrical energy, including automobiles, computers, consumer electronics,
handheld devices, industrial equipment, and telecom/datacom circuits. Littelfuse
offers Teccor(R), Wickmann(R) and Pudenz(R) brand circuit protection products.
In addition to its Des Plaines, Illinois, world headquarters, Littelfuse has
sales, distribution, manufacturing and engineering facilities in Brazil, China,
England, Germany, Hong Kong, India, Ireland, Japan, Korea, Mexico, the
Netherlands, the Philippines, Singapore, Taiwan and the U.S.
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.
- --------------------------------------------------------------------------------
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LITTELFUSE, INC.
SALES BY GEOGRAPHY AND MARKET*
(Dollars in millions)
FOURTH QUARTER YEAR-TO-DATE
-------------------------------------- --------------------------------------
2006 2005 % CHANGE 2006 2005 % CHANGE
---- ---- -------- ---- ---- --------
GEOGRAPHY
Americas $ 48.0 $ 49.0 -1.9% $ 216.0 $ 199.9 8.0%
Europe 26.9 23.3 15.3% 111.6 98.3 13.5%
Asia Pacific 52.9 43.1 22.8% 207.3 168.9 22.7%
-------- -------- ---- -------- -------- ----
TOTAL $ 127.8 $ 115.4 10.8% $ 534.9 $ 467.1 14.5%
======== ======== ==== ======== ======== ====
FOURTH QUARTER YEAR-TO-DATE
-------------------------------------- --------------------------------------
2006 2005 % CHANGE 2006 2005 % CHANGE
---- ---- -------- ---- ---- --------
MARKET
Electronics $ 85.5 $ 77.3 10.7% $ 365.5 $ 305.9 19.5%
Automotive 30.8 27.8 10.9% 123.6 118.6 4.2%
Electrical 11.5 10.3 11.4% 45.8 42.6 7.5%
-------- -------- ---- -------- -------- ----
TOTAL $ 127.8 $ 115.4 10.8% $ 534.9 $ 467.1 14.5%
======== ======== ==== ======== ======== ====
</Table>
* Amounts exclude Efen.
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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 Twelve Months Ended
---------------------------- ---------------------------
DEC 30, Dec 31, DEC 30, Dec 31,
2006 2005 2006 2005
------- -------- ------- --------
Net sales $ 127,836 $ 115,373 $ 534,859 $ 467,089
Cost of sales 89,747 77,468 373,596 322,537
--------- --------- --------- ---------
Gross profit 38,089 37,905 161,263 144,552
Selling, general and administrative expenses 26,986 24,024 110,581 98,536
Research and development expenses 4,609 3,890 18,708 16,672
Amortization of intangibles 1,096 877 3,116 2,378
--------- --------- --------- ---------
Operating income 5,398 9,114 28,858 26,966
Interest expense 374 470 1,626 2,098
Other (income) expense (547) 147 (2,174) (3,068)
--------- --------- --------- ---------
Earnings from continuing operations before
minority interest and income taxes 5,571 8,497 29,406 27,936
Minority interest -- (48) -- (86)
Income taxes 927 3,684 6,170 11,440
--------- --------- --------- ---------
Earnings from continuing operations 4,644 4,861 23,236 16,582
Discontinued operations (net of tax) -- 382 588 1,128
--------- --------- --------- ---------
Net income $ 4,644 $ 5,243 $ 23,824 $ 17,710
========= ========= ========= =========
Net income per share:
Basic:
Continuing operations $ 0.21 $ 0.22 $ 1.04 $ 0.74
========= ========= ========= =========
Discontinued operations $ -- $ 0.01 $ 0.03 $ 0.05
========= ========= ========= =========
Net income $ 0.21 $ 0.23 $ 1.07 $ 0.79
========= ========= ========= =========
Diluted:
Continuing operations $ 0.21 $ 0.22 $ 1.03 $ 0.73
========= ========= ========= =========
Discontinued operations $ -- $ 0.01 $ 0.03 $ 0.05
========= ========= ========= =========
Net income $ 0.21 $ 0.23 $ 1.06 $ 0.78
========= ========= ========= =========
Weighted average shares and equivalent shares outstanding:
Basic 22,296 22,305 22,305 22,413
========= ========= ========= =========
Diluted 22,424 22,415 22,434 22,582
========= ========= ========= =========
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LITTELFUSE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
DECEMBER 30, 2006 December 31, 2005
----------------- -----------------
ASSETS:
Cash and cash equivalents $ 56,704 $ 21,947
Accounts receivable, net 83,901 80,303
Inventories 65,961 63,423
Deferred income taxes 12,382 11,927
Assets held for sale (Efen) -- 17,633
Other current assets 9,821 7,936
-------- --------
Total current assets 228,769 203,169
Property, plant, and equipment, net 125,516 125,493
Intangible assets, net 26,648 14,742
Goodwill 67,500 54,440
Investments 5,231 5,590
Deferred income taxes 9,746 --
Other assets 1,556 497
-------- --------
Total assets $464,966 $403,931
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Accounts payable $ 23,334 $ 20,457
Accrued payroll 22,468 20,128
Accrued expenses 12,579 8,141
Accrued severance 10,670 7,866
Accrued income tax 12,657 9,920
Liabilities held for sale (Efen) -- 6,722
Current portion of long-term debt 24,328 26,682
-------- --------
Total current liabilities 106,036 99,916
Long-term debt 1,785 --
Accrued severance 18,879 --
Deferred income taxes -- 1,879
Accrued post-retirement benefits 28,931 19,268
Other long-term liabilities 5,527 5,658
Minority interest 143 144
Shareholders' equity 303,665 277,066
-------- --------
Total liabilities and shareholders' equity $464,966 $403,931
======== ========
Common shares issued and outstanding
of 22,110,674 and 22,229,288,
at December 30, 2006, and December 31, 2005, respectively
</Table>
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LITTELFUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
For the Three Months Ended For the Twelve Months Ended
-------------------------- ---------------------------
DEC 30, Dec 31, DEC 30, Dec 31,
2006 2005 2006 2005
---- ---- ---- ----
Operating activities:
Net Income $ 4,644 $ 5,243 $ 23,824 $ 17,710
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 6,550 7,039 29,749 28,738
Amortization 1,096 905 3,116 2,495
Gain on sale of LC Fab -- (1,400) -- (1,400)
Stock-based compensation 1,284 -- 5,187 --
Changes in operating assets and liabilities:
Accounts receivable, net 16,884 (248) 2,970 (9,301)
Inventories 848 (251) 1,240 6,594
Accounts payable and accrued expenses (5,006) 4,864 19,969 (1,134)
Accrued and deferred taxes (1,229) (5,020) (6,491) (5,590)
Prepaid expenses and other 451 (322) 1,351 30
-------- -------- -------- --------
Net cash provided by operating activities 25,522 10,810 80,915 38,142
Cash used in investing activities:
Purchases of property, plant and equipment (5,497) (5,385) (19,613) (27,328)
Purchase of businesses, net of cash acquired (199) (2,241) (37,841) (3,658)
Sale of property, plant and equipment 2,827 89 14,401 89
Sale of LC Fab 500 600 500 600
-------- -------- -------- --------
Net cash used in investing activities (2,369) (6,937) (42,553) (30,297)
Cash used in financing activities:
Proceeds from debt 8,000 2,139 43,273 48,819
Payments of debt (9,691) (15,502) (45,626) (55,616)
Notes receivable, common stock -- -- 7 3,533
Proceeds from exercise of stock options 777 94 5,734 3,844
Purchases of common stock (9,610) (2,872) (10,262) (12,832)
Excess tax benefit on share-based compensation 60 -- 468 --
-------- -------- -------- --------
Net cash used in financing activities (10,464) (16,141) (6,406) (12,252)
Effect of exchange rate changes on cash 1,126 (118) 2,801 (2,229)
-------- -------- -------- --------
Increase (decrease) in cash and cash equivalents 13,815 (12,386) 34,757 (6,636)
Cash and cash equivalents at beginning of period 42,889 34,333 21,947 28,583
-------- -------- -------- --------
Cash and cash equivalents at end of period $ 56,704 $ 21,947 $ 56,704 $ 21,947
======== ======== ======== ========
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LITTELFUSE, INC.
SUPPLEMENTAL INFORMATION
(in thousands, except per share data, unaudited)
<Table>
<Caption>
For the Three
Months Ended
------------
Dec 30, 2006
------------
Net sales $ 127,836
Cost of sales 89,747
Special charges (1) (2,714)
---------
Adjusted cost of sales 87,033
Adjusted gross profit 40,803
% of sales 31.9%
Selling, general and administrative expenses* 26,986
Operating expenses 32,691
---------
% of sales 25.6%
Adjusted operating income 8,112
% of sales 6.3%
Interest/other (173)
---------
Adjusted income before tax 8,285
Adjusted income tax expense 2,651
---------
Effective rate 32.0%
Adjusted net income $ 5,634
=========
Adjusted earnings per share $ 0.25
=========
Diluted shares 22,424
=========
</Table>
Note: The company believes that adjusted net income is more indicative of the
company's ongoing operating performance than GAAP net income since it excludes
charges that are related to the closure of legacy operations and estimates an
average tax rate going forward.
* Selling, general and administrative expenses includes stock-based compensation
expense of $1,283 and $5,187 for the three and twelve months ended December 30,
2006, respectively.
Special Charges:
(1) Special charges relate primarily to expenses related to the closure of the
Irving, Texas location.
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