EXHIBIT 99.1
(LITTELFUSE LOGO) NEWS
Littelfuse, Inc.
NEWS RELEASE ------------------------------------------------
800 East Northwest Highway Des Plaines, IL 60016
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(847) 824-1188 - (847) 391-0894 - FAX #
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CONTACT: PHIL FRANKLIN,
VICE PRESIDENT, OPERATIONS SUPPORT & CFO (847) 391-0566
LITTELFUSE REPORTS FIRST QUARTER RESULTS
DES PLAINES, ILLINOIS, APRIL 30, 2008 - Littelfuse, Inc. (NASDAQ/NGS:LFUS)
today reported sales and earnings for the first quarter of 2008.
First Quarter Highlights
- Sales for the first quarter of 2008 were $133.7 million, an increase
of $1.9 million or 1% compared to the first quarter of 2007.
Automotive and electrical sales increased 8% and 5%, respectively,
compared to the prior-year quarter, while electronics sales
declined 1%.
- Diluted earnings per share for the first quarter of 2008 were $0.19
compared to diluted earnings per share of $0.28 for the first quarter
of 2007.
- Adjusted diluted earnings per share (see Supplemental Information)
were $0.36, which excludes $5.2 million of charges primarily related
to severance for the recently-announced Matamoros, Mexico plant
closure. This corresponds with the company's previous guidance of $0.32
to $0.37 per share.
- Capital expenditures for the first quarter of 2008 increased to $11.5
million compared to $5.1 million in the prior-year quarter due to
spending for facilities and equipment to support the previously
disclosed manufacturing transfers. Cash flow from operating activities
was negative $1.0 million for the first quarter of 2008 compared to $1.0
million in the prior-year quarter. Increases in inventories to support
the manufacturing transfers and severance payments related to plant
closures contributed to the negative cash result.
- The company completed the acquisition of Shock Block Corporation in
the first quarter of 2008. Shock Block supplies high-current ground
fault protection devices for use in a wide variety of industrial
applications. Shock Block sales are approximately $2 million annually.
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- The company repurchased 218,000 shares of its common stock in the
first quarter at an average price per share of $30.38. At the end of
the first quarter of 2008, the company had 282,000 shares remaining on
the authorized stock repurchase plan.
- The book-to-bill ratio for electronics for the first quarter of 2008
was 1.11, which is up from 0.96 at the end of 2007.
"The first quarter played out largely as we expected, which puts us on
track to meet our plan for the year," said Gordon Hunter, Chief Executive
Officer. "We made excellent progress on our manufacturing transfers. The
automotive business continues to perform well despite headwinds in the North
American market. Electrical sales have slowed from the double digit increases of
last year, but this business continues to grow and generate superior margins.
The electronics business had a slow start to the year, but since the Lunar New
Year in early February, orders have been strong and sales have been increasing."
Second Quarter Outlook
- Sales for the second quarter of 2008 are expected to be in the range
of $142 to $147 million, which represents 10 to 14% growth over the
prior-year quarter.
- As previously stated, margins will be impacted throughout 2008 by
costs related to manufacturing transfers, including redundant
overhead, equipment move costs, training and retention incentives.
These costs are expected to average about $3 million per quarter
through the remainder of 2008.
- Diluted earnings for the second quarter of 2008 are expected to be in
the range of $0.42 to $0.48 per share.
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Conference Call Webcast Information
Littelfuse will host a conference call today, Wednesday, April 30, 2008 at
11:00 a.m. Eastern/10:00 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, 2008 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 $536.1 million in 2007, 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.
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"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995.
This press release may include statements that constitute "forward looking
statements" within the meaning of federal securities regulations and 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 that may
be detailed in the company's Annual Report on Form 10-K for the fiscal year
ended December 29, 2007 under the heading "Risk Factors" and elsewhere in the
company's other Securities and Exchange Commission filings. These forward
looking statements involve numerous assumptions, inherent risks and
uncertainties, both general and specific, and the company cautions you not to
place undue reliance on these forward looking statements as a number of
important factors could cause actual future results to differ materially from
the plans, objectives, expectations, estimates and intentions expressed in such
forward looking statements. The company assumes no obligation to update this
forward-looking information, except as required by law.
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LITTELFUSE, INC.
SALES BY BUSINESS UNIT AND GEOGRAPHY
(dollars in millions, unaudited)
FIRST QUARTER
-----------------------------
2008 2007 % CHANGE
--------- -------- --------
BUSINESS UNIT
Electronics $ 84.8 $ 86.1 (1.5%)
Automotive 36.3 33.7 7.7%
Electrical 12.6 12.0 5.0%
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Total $ 133.7 $ 131.8 1.4%
========= ========
FIRST QUARTER
-----------------------------
2008 2007 % CHANGE
--------- -------- --------
GEOGRAPHY
Americas $ 49.7 $ 51.4 (3.3%)
Europe 33.3 31.2 6.7%
Asia-Pacific 50.7 49.2 3.0%
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Total $ 133.7 $ 131.8 1.4%
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LITTELFUSE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
MARCH 29, 2008 December 29, 2007
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Assets
Current assets:
Cash and cash equivalents.................... $ 53,434 $ 64,943
Accounts receivable.......................... 91,199 85,607
Inventories.................................. 64,064 58,845
Deferred income taxes........................ 11,110 10,986
Prepaid expenses and other current assets.... 18,780 14,789
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Total current assets........................... 238,587 235,170
Property, plant, and equipment:
Land......................................... 11,656 12,573
Buildings.................................... 47,473 49,321
Equipment.................................... 296,591 282,416
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355,720 344,310
Accumulated depreciation....................... (208,093) (199,748)
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Net property, plant and equipment.............. 147,627 144,562
Intangible assets, net of amortization:
Patents, licenses and software............... 9,210 9,231
Distribution network......................... 14,096 13,823
Customer lists, trademarks and tradenames.... 3,549 1,192
Goodwill..................................... 83,041 73,462
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109,896 97,708
Investments.................................... 7,070 6,544
Deferred income taxes.......................... 6,411 6,141
Other assets................................... 1,033 1,240
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Total Assets................................... $ 510,624 $ 491,365
========== ==========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable............................. $ 22,537 $ 27,889
Accrued payroll.............................. 17,030 19,441
Accrued expenses............................. 12,315 11,595
Accrued severance............................ 23,908 21,092
Accrued income taxes......................... 1,221 4,484
Current portion of long-term debt............ 27,133 12,086
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Total current liabilities ..................... 104,144 96,587
Long-term debt, less current portion........... 1,165 1,223
Accrued severance.............................. 10,550 8,912
Accrued post-retirement benefits............... 19,708 18,371
Other long-term liabilities.................... 12,890 12,715
Minority interest.............................. 143 143
Total shareholders' equity..................... 362,024 353,414
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Total Liabilities and Shareholders' Equity..... $ 510,624 $ 491,365
========== ==========
Common shares issued and outstanding of
21,669,718 and 21,869,824, at March 29, 2008,
and December 29, 2007, respectively.
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LITTELFUSE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data, unaudited)
For the Three Months Ended
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MARCH 29, 2008 March 31, 2007
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Net sales.................................... $ 133,708 $ 131,814
Cost of sales................................ 95,227 90,493
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Gross profit................................. 38,481 41,321
Selling, general and administrative
expenses.................................... 25,678 25,886
Research and development expenses............ 5,623 5,287
Amortization of intangibles.................. 892 657
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Operating income............................. 6,288 9,491
Interest expense............................. 334 462
Other expense (income), net.................. 313 (340)
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Income before income taxes................... 5,641 9,369
Income taxes................................. 1,529 3,148
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Net income................................... $ 4,112 $ 6,221
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Net income per share:
Basic..................................... $ 0.19 $ 0.28
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Diluted................................... $ 0.19 $ 0.28
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Weighted average shares and equivalent shares
outstanding:
Basic..................................... 21,782 22,163
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Diluted................................... 21,898 22,338
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LITTELFUSE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
For the Three Months Ended
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MARCH 29, 2008 March 31, 2007
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Operating activities:
Net income......................................... $ 4,112 $ 6,221
Adjustments to reconcile net income to net cash
(used in) provided by operating activities:
Depreciation.................................. 6,643 5,752
Amortization of intangibles................... 892 657
Stock-based compensation...................... 1,003 1,410
Changes in operating assets and liabilities:
Accounts receivable........................... (4,057) (210)
Inventories................................... (4,246) 416
Accounts payable and accrued expenses......... (5,988) (915)
Accrued payroll and severance................. 1,669 (6,905)
Accrued income taxes.......................... 1,896 (2,627)
Prepaid expenses and other.................... (2,925) (2,798)
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Net cash (used in) provided by operating
activities........................................ (1,001) 1,001
Investing activities:
Purchases of property, plant and equipment.... (11,455) (5,125)
Purchase of businesses, net of cash
acquired.................................... (9,280) -
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Net cash used in investing activities.............. (20,735) (5,125)
Financing activities:
Proceeds from debt............................ 31,500 18,000
Payments of debt.............................. (16,646) (14,886)
Proceeds from exercise of stock options....... 439 2,689
Purchases of common stock..................... (6,623) -
----------- -----------
Net cash provided by financing activities.......... 8,670 5,803
Effect of exchange rate changes on cash............ 1,557 695
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(Decrease) increase in cash and cash equivalents... (11,509) 2,374
Cash and cash equivalents at beginning of period... 64,943 56,704
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Cash and cash equivalents at end of period......... $ 53,434 $ 59,078
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LITTELFUSE, INC.
SUPPLEMENTAL INFORMATION
(in thousands, except per share data, unaudited)
For the Three Months Ended
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MARCH 29, 2008 March 31, 2007
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Net sales............................... $ 133,708 $ 131,814
Cost of sales........................... 95,227 90,493
Special items (1).................... (4,392) (3,564)
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Adjusted cost of sales.................. 90,835 86,929
Adjusted gross profit................... 42,873 44,885
% of sales........................... 32.1% 34.1%
Total operating expenses................ 32,193 31,830
Special items (2).................... - (521)
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Adjusted total operating expenses....... 32,193 31,309
% of sales........................... 24.1% 23.8%
Adjusted operating income............... 10,680 13,576
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% of sales........................... 8.0% 10.3%
Interest/other (income) expense......... 647 122
Special items (3).................... (772) -
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Adjusted interest/other (income)
expense............................... (125) 122
Adjusted income before tax.............. 10,805 13,454
Adjusted income tax expense............. 2,929 4,521
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Effective rate....................... 27.1% 33.6%
Adjusted net income..................... $ 7,876 $ 8,933
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Adjusted diluted earnings per share..... $ 0.36 $ 0.40
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Diluted shares.......................... 21,898 22,338
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Note: The Company believes that adjusted operating income is more indicative of
its ongoing operating performance than GAAP operating income since the former
excludes gains on asset sales and special charges that are related to closure of
legacy operations.
Special Items:
(1) Special items for 2008 relate to restructuring charges involving the
transfer of the Company's Mexico manufacturing operations to China.
Special items for 2007 relate to restructuring charges involving the
transfer of the Company's Chicago-area production and distribution to the
Philippines and Mexico and additional charges for redundancy costs
involving the Company's Heinrich operations.
(2) Special items for 2007 relate to restructuring charges involving the
transfer of the Company's Chicago-area production and distribution to the
Philippines and Mexico.
(3) Special items for 2008 reflected the net exchange rate impact of revaluing
the Ireland restructuring charges and the related prepaid pension asset.
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