Bel Fuse Inc.
[BEL FUSE LOGOGRAPHIC OMITTED] 206 Van Vorst Street
FOR IMMEDIATE RELEASE Jersey City, NJ 07302
www.belfuse.com
tel 201.432.0463
fax 201.432.9542
Investor Contact: Company Contact:
Neil Berkman Associates Daniel Bernstein
(310) 277-5162 President
info@berkmanassociates.com (201) 432-0463
Bel's Third Quarter Net Earnings Double
On 67% Sales Gain
JERSEY CITY, NEW JERSEY, OCTOBER 29, 2003 ... BEL FUSE INC.
(NASDAQ:BELFA & NASDAQ:BELFB) announced today that net earnings for the third
quarter ended September 30, 2003 doubled to $3,630,000, or $0.32 per diluted
share, from $1,746,000, or $0.16 per diluted share, for the third quarter of
2002. Revenue increased 67% to $45,864,000 compared to $27,401,000 for the same
period last year.
For the nine months ended September 30, 2003, net earnings increased to
$8,167,000, or $0.73 per diluted share. This compares to net earnings of
$1,218,000, or $0.11 per diluted share, for the first nine months of 2002. Sales
increased 68% to $115,632,000 from $68,642,000 for the same period a year
earlier.
Daniel Bernstein, President, said, "Our strong sales gains largely
reflect the acquisition, last Spring, of the Passive Components Group from
Insilco Technologies. Profitability has benefited from operating improvements at
the Passive Components Group and the introduction of new products, particularly
our expanding line of integrated connector modules. Consequently, Bel's third
quarter gross margin improved to 29% of sales compared to 23% for the third
quarter last year, and income from operations increased to 12% of sales from 7%
of sales in the third quarter last year."
At September 30, 2003, Bel reported cash, cash equivalents and
marketable securities of approximately $52,000,000, working capital of
approximately $93,700,000, a current ratio of 5.3-to-1, total term debt of
$7,000,000 and shareholders' equity of approximately $140,300,000, or $12.63 per
share.
ABOUT BEL
Bel (www.BelFuse.com) and its subsidiaries are primarily engaged in the
design, manufacture and sale of products used in networking, telecommunications,
high speed data transmission, automotive and consumer electronics. Products
include magnetics and connectors for voice and data transmission, fuses, DC/DC
converters, delay lines and hybrid circuits. The Company operates facilities
around the world.
(more)
Bel's Third Quarter Net Earnings Double On 67% Sales Gain
October 29, 2003
Page Two
CONFERENCE CALL
Bel has scheduled a conference call at 11:00 a.m. ET today. A
simultaneous webcast of the conference call may be accessed from the Investor
Info link at www.BelFuse.com. A replay will be available after 1:00 p.m. ET at
this same Internet address. For a telephone replay, dial (800) 633-8284,
reservation #21162982 after 1:00 p.m. ET.
FORWARD-LOOKING STATEMENTS
Except for historical information contained in this news release, the
matters discussed are forward looking statements that involve risks and
uncertainties. Among the factors that could cause actual results to differ
materially from such statements are: the market concerns facing our customers,
the continuing viability of sectors that rely on our products, the effect of
business and economic conditions; the difficulties inherent in integrating
remote business that may have followed business practices that differ from the
Company's business practices; capacity and supply constraints or difficulties;
product development, commercializing or technological difficulties; the
regulatory and trade environment; uncertainties associated with legal
proceedings; the market's acceptance of the Company's new products and
competitive responses to those new products, and the risk factors detailed from
time to time in the Company's SEC reports. In light of the risks and
uncertainties, there can be no assurance that any forward-looking statement will
in fact prove to be correct. We undertake no obligation to update or revise any
forward-looking statements.
(table attached)
#3431
BEL FUSE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
($ 000 omitted, except for per share data)(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------- --------------
2003 2002 2003 2002
Net Sales $ 45,864 $ 27,401 $115,632 $ 68,642
-------- -------- -------- --------
Costs and Expenses:
Cost of Sales 32,690 21,147 83,564 54,054
Selling, General and
Administrative expenses 7,622 4,260 20,792 12,797
-------- -------- -------- --------
40,312 25,407 104,356 66,851
-------- -------- -------- --------
Income from operations 5,552 1,994 11,276 1,791
Other income (loss), net (2) 233 114 767
-------- -------- -------- --------
Earnings before
income tax provision 5,550 2,227 11,390 2,558
Income tax provision 1,920 481 3,223 1,340
-------- -------- -------- --------
Net earnings $ 3,630 $ 1,746 $ 8,167 $ 1,218
======== ======== ======== ========
Net earnings per common share
Basic $ 0.33 $ .16 $ 0.74 $ .11
======== ======== ======== ========
Diluted $ 0.32 $ .16 $ 0.73 $ .11
======== ======== ======== ========
Average common shares outstanding
Basic 11,034 10,929 10,979 10,899
======== ======== ======== ========
Diluted 11,226 11,116 11,130 11,098
======== ======== ======== ========
CONDENSED CONSOLIDATED BALANCE SHEET DATA
($ 000 omitted)
- --------------------------------------------------------------------------------
Sep. 30, Dec. 31, Sep. 30, Dec. 31,
ASSETS 2003 2002 LIABILITIES AND 2003 2002
(unaudited) EQUITY (unaudited)
- --------------------------------------------------------------------------------
Current assets $115,237 $ 94,504 Current liabilities $ 21,574 $ 11,715
Property, plant &
equipment, net $ 45,450 $ 37,605 Long-term liabilities $ 13,018 $ 4,519
Goodwill, net $ 6,861 $ 4,820
Intangibles & Stockholders' equity $140,328 $130,659
other assets $ 7,372 $ 9,964
Total liabilities &
Total assets $174,920 $146,893 equity $174,920 $146,893
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