BELFA - Earnings call 4 2020

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Operator

Good day, and welcome to the Bel Fuse Inc. Fourth Quarter 2020 Results Conference Call. Today's conference is being recorded.

At this time, I'd like to turn the conference over to Dan Bernstein, President and Chief Executive Officer. Please go ahead.

Daniel Bernstein

James. you, Thank to financial like to fourth our I today. welcome year-end results quarter would everybody

Before hope begin, these I we difficult safe family times. during stay you and your

of Craig On this today I week. on Officer, would our of Brosious, Farouq Finance; introduce And Lynn to Chief our Financial the Reporting. Hutkin, is board Vice new call like Tuweiq, Director our came President Financial who

working strong with we working with Bank Montreal While I'm with past, a -- in have sorry, developed relationship BMW Farouq. the of

During we knowledge been and impressed of to timely overly our his skills, a solve importantly, this interpersonal manner. have time, with problems in industry, his work most ability experience,

believe Bel's will our The to our mandate overall value. increase there M&A. #X share line current increase work substantial to Bel's with a I to team margin to is while growth, gap growth valuation has price at improvement, goal a operations breakout simply to pathways and top between the put, our be driving Farouq value But various broad Bel, examine members, simplify through shareholders.

first Welcome for fortunate Bel CFO that offer joined the fresh he was company's our the we best he searching When to his us feel aboard, history, Farouq. candidate, perspective. and in

Farouq Tuweiq

the you, joining the very Thank Bel for introduction excited Dan, family. I'm there. to be

Daniel Bernstein

you go can statement? over please Lynn, Okay. the safe harbor

Lynn Hutkin

Sure. you, morning, Good Thank everybody. Dan.

of the of on impact that impact from continuing read the safe regarding closing limited call, sales anticipated in of of acquisition, overall statement. for acquisition timing factors Bel's and including of harbor Private described and the benefits statements Reform positioning and all sales, restructuring Switzerland growth Litigation uncertainties. to following Magnetic cost actions, those semiconductors rebound Except from for information EOS on program XXXX the visibility Act are the EBITDA, and of impact organic Power as the such under differ savings further forward-looking for the on markets, projections. involve of of recovery rms like long included of discussed including matters results business resulting may impact lead the anticipated the margin COVID this margins Bel's I'd Securities Bel's Connectors statements, certain on contained potential and cost facility to historical potential demand Actual from -- thereof, other start, sale risks on reduction expansion, we the the this resulting Bel's anticipated visibility product global Before the materially Solutions end as XXXX, for the result anticipated times closing could those components and call, that

and from the with associated difficulties; time those product reports. products; or of legal trade the new acceptance of the impact to with capacity detailed risks crisis, proceedings; the factors effects and from of materially COVID-XX; that public associated U.S. business regulatory could new products; statements company's concerns that associated results factors market's development, or companies; company's conditions; difficulties; technological are: impact our rely and currencies; difficulties customers; governmental, foreign and sectors the to constraints environment; effects and such cause commercialization to on the acquired SEC responses and supply the policies; in products uncertainties to economic changes the our the Among competitive the as continuing differ the with market and of recently viability risk trade of the actual such tariff health integrating social facing of economic time

to non-GAAP reconciliations or forward-looking correct. discuss of obligation revise may this of results call results can light uncertainties, non-GAAP in have to We no statements. prove the assurance fact, any during will, results in also that our been no update and release. In any forward-looking and be be risks there statement to our included undertake GAAP We

would I update. for Dan turn general business to to the back a call now like

Daniel Bernstein

Lynn. you, Thank

There X facilities needed were for we're an a COVID-XX the to it closed globally First, service of to in operational the all be for about quarter update during quarter. during our continue infection. impacted on that provide this manufacturing and to I'd the pleased facilities. how be our majority sites fourth that time. to But able to like to the Overall, report still response customers week our I'm

and now number fluid. cases the of appear situation underway, the still vaccine in COVID-XX direction be is While to the moving right remains distribution

to compliance operate to ongoing our continue with place local risk. facilities regulations migrate our preventive with all and ensuring We measures in

acknowledge I appreciated. under like truly our difficult dedication manufacturing conditions. to continued Their day-to-day managers associates and and production customers is our to again would who work Bel

to turning sales our on margins year's results. relatively Now improved saw quarter. last as fourth We compared to flat

minimal overall there While in a quite since was bit of fourth a balance, changed quarter. the composition has our change sales year's sales last

XX.X% or of Sales fourth Power up quarter were and group from within our Solutions XXXX. $XX.X the million Protection

in to contributed December million of the incremental CUI at margin. us Our fourth this sales a XXXX And XXXX. of higher quarter acquisition run $XX brings

segment e-mobility of last fourth $X.X quarter. as this elimination XXX% These group. a increase million, of Power by were within sold growth well, from XXXX products markets $X.X million, areas an of year's our increase that over sales offset XX% products was up and were up within strong areas were quarter, our Other low-margin from into CUI fast-growing

Within XXXX million our segment, quarter Connectivity sales XXXX. the same or were of XX.X% versus fourth the of Solutions quarter $X.X in down

also the aerospace wiring segment be product down as stalled into to construction due new COVID to of impacted commercial premise also. by The industry year were sales XX% depressed continue million applications where We $X pilots sales or the XXXX lower Connectivity last quarter. by for in impacted was fourth

poorest of shift commercial military which sales, Magnetic a quarter positive fourth lines have end to business On million to first production hand. Solutions support XX.X% of bookings from $X.X inventory of Magnetic should was quarter see rebound our our XXXX in through we were kick back We our capture and backlog, largest the offsetting up military note, Sales our sales ordering able it's in us XXXX. growing XX% their within the decline. one they since or as on partially customers the the work had OEM down as increase to enabled

Overall, right in previously be ongoing our improved reduction direction. This basis by have program. combination trending margins and discussed are to the product can and as XXX a attributed points of mix cost

business. rms to our we front, market closed to industry's EOS. announced months acquisition these Connectors the the recently the and share X On in us which Bel aerospace will XXXX. acquisition within us benefit the Connectors few in stock in over of we expand been purchase past have digging later our companies, enabled of rms as That rebound January, commercial

will only We of to The portfolio of expand acquire EOS China. product also Power, manufacturing low is us our outside not saw the in a an to which India. provide but capability of agreement EOS will, mid-range, importantly, acquisition in all based

these Both fit within share increase footprint. while portfolios acquisitions product market our diversifying our geographic strategy, and

improve. seen throughout rail, Looking certain additionally additional to would commercial in XXXX, We signs military potentially aerospace some have markets. recovered premise the our certain markets wiring, expect of such We a sales customers see for conditions recovery served in as throughout e-mobility demand of driver as remain XXXX. COVID we year have for to

give and situation than visibility ever, into and future. remains components our While might supply, very us our into with us be COVID with some position that uncertainty the the competitive big stronger semiconductors still regarding

management growth focused the looking Bel the other and meantime, integrating the better for position strategies future. from announced on In remain are team bottom at acquisitions, to line the

financial update. for the I'd turn call over the that, Craig? like to Craig to with And

Craig Brosious

Thank and decline Solutions you, Dan. fourth Sales million, the XX.X% by for Power down sales million, last fourth Magnetic up sales Solutions Protection were $XX.X a year's Connectivity product Solutions XXXX XX.X%. last XX.X% And quarter. fourth were of from quarter from of million, follows: sales $XX.X segment year's as were were $XX.X quarter.

XX.X% follows: the margin XXXX product in quarter Connectivity fourth Solutions XX%, XX.X% margin gross Protection gross quarter fourth fourth fourth XX.X% up a in of gross XXXX, of combination XXXX result of a XX.X%, up XX.X% last factors. Gross as had down in of quarter. as XXXX margin gross Solutions segment year's margin a XX.X% year's by was the of the of fourth compared to from and On quarter from XX.X% the quarter consolidated quarter. Magnetic increased in the Power in with And basis, was profit the of in last margin from Solutions for XXXX, quarter. fourth is

reduction Solutions fourth for products in of measures Overhead portfolio. of A the indirect segment. to the with fourth that XXXX certain our related improvement margin align volumes of power current within in a structure segment the to and labor from late the costs $X to lower the elimination quarter million during due sales cost quarter low-margin of primarily Connectivity and XXXX implemented Cinch our during were XXXX, restructuring portion

quarter million of to XXXX, million of of during and a primarily XXXX, of during were costs quarter development fourth implemented Research the XXXX. restructuring $X.X decline part the efforts latter $X fourth the due from

other Our the travel incremental Lower $XXX,XXX million acquired the fourth expenses $XX.X savings of expenses flat December selling, expenses XXXX. efforts SG&A were the in with general containment CUI or offset associated of of of XX.X% administrative business fully cost quarter and sales, XXXX. and $X.X from of from million

first than spend $XX basis, be in half XXXX. of would million at will as we expect the go-forward SG&A least per $XX a we near-term for and normal to quarter the T&E between our On lower run to million expect continue

fourth the transaction XXXX. in closed $X.X million operations fourth loss resulted quarter income in the our fourth quarter in on These the as XXXX, of quarter of resulted compared included is we a This factors operations XXXX in During of of sale facility the the quarter which of million results. $X.X of in of gain Switzerland. our in from million, fourth to $X.X from

now $X.X by was was fourth exchange during foreign largely SERP million quarter loss in foreign expense included of a in gain line fourth of XXXX, in to net the of of of million a on the $XXX,XXX on of expense to quarter company's fourth XXXX. The investments, XXXX fourth the item. quarter An this offset are as Other compared related the $X.X in for losses which the XXXX larger subsidiaries. increase liquidation $XXX,XXX quarter the

EBITDA during in year was per taxes Interest improvements, result to $X.X $XXX,XXX We balance. a driven its overall share Earnings had decreases in same quarter in of in XXXX the for in with quarter shares Class $X.XX quarter fourth quarter. as compared provision fourth of share common earnings a the $XXX,XXX the $X.XX per of of XXXX. XXXX LIBOR fourth compared by provision last in fourth the of year's the on A fourth of the company's income from quarter of expense reduction of of facility share $XXX,XXX loss was per a as quarter debt credit our XXXX, outstanding the in and million last a for down rate, spread the the

per the $X.XX of Class fourth of compared B which for of Earnings earnings fourth per of of $X.XX common the $X.XX A XXXX fourth of EPS non-GAAP fourth the in per compared loss share earnings as quarter $X.XX for shares in share share in with EPS XXXX. quarter loss quarter a of as in of items, as with XXXX. a was quarter of the for a XXXX. B $X.XX a share unusual $X.XX was the quarter per non-GAAP On nonrecurring basis, of of with in the shares quarter share other XXXX per share was in loss share certain On and basis, fourth Class per a per fourth the shares excludes Class compared XXXX

go And flow cash like I'd through now some and sheet balance to items.

XX, Our XXXX, cash at equivalents increase XX, XXXX. $XX.X of an million, balance and million December $XX.X December from was cash

from generated received net debt and $XX.X used expense flows made payments outstanding cash capital we $XX.X from towards of $X.X of interest payments payments dividend million and of the million in We million, operating million $X.X activities million. expenditures XXXX, $X and During sale cash for $X.X million property. of our proceeds balance of of

XX, December to million decrease at payment sales tend receivable $XX.X at Asia, due accounts to XX, XX, as compared days XX decreased receivable to XXXX, December as $XX.X where XX, The XXXX. the with largely XXXX. Accounts million to Days be terms XXXX, XX December December outstanding longest. days balance lower sales at was in compared at were in

quarter. level of $XX.X is purchases were $XXX.X $X.X XXXX, payable down December its Accounts due The material million XX, reduced XX, down fourth quarter anticipation of to were at December XX, XXXX, of from you're fourth from materials at during XXXX, primarily XXXX. raw the lower million in at in decline December December raw million material Inventories XX, $X.X seeing to intake XXXX. due million slower

Sales is decrease debt the as of compared million combined primarily which This repayments $XX.X balance million at net common XXXX. to December balance. a outstanding, XXXX year XXXX. share, voluntary during reflects per of XXXX, as $XXX.X equity debt stockholders' was value calculated of XX, stock total financing of outstanding XX, share was end since B XXXX, and per deferred Book $XX $XX.XX $XX.XX XX, million December as made our divided classes of share per by at A December costs,

that, turn with I'll call to And Dan. over the back Dan?

Daniel Bernstein

you, Thank time, James, the this questions? call up Craig. we open can At for

Operator

Needham question we'll Instructions] & [Operator And today with Company. take first Jim our from Ricchiuti

James Ricchiuti

anticipate XXXX. Wondering us, financial bit Share perhaps, just on in or you Connectors the if and little would more the their contribution could a acquisition. that with if speak details rms you just about we could, impact any EOS

Daniel Bernstein

you, to product we've private insight numbers have labeling X years. Okay, over before for companies. the both with to over EOS, those just but again, you their Craig I give go been

We the which price them. -- have with mostly a medium felt We It with a we and was in we grow and market, relationship people. pricing product very with portfolio. could area a strong that's market, know industrial proper the area, structure a low medical a

been pestering many for them years their same. interest been and we've So has

excited very this we're on close March could that deal So and that, we again, XX. put together

low -- can deal, in for the gives and I another on said and manufacturing. we is dependent we So are with -- where as this overly also that us that China, manufacturing have area cost key

market that, believe we move as should the market we addition a be stronger substantially Indian do Bel to for in forward. And

was was connectors, Boeing we company the that The supplier other Cinch very suggested a rms. second rms, the Boeing when and acquisition, for XXX strongly approved that source,

there. that line wasn't a years, any And selling over aerospace contacted in the year pressures their because them longer. the by companies every we're this the see price medical strategic of them we've feeling be growing product XX sales Because out to would so interested if past were they fast, for

to they allowed to buy, very didn't with a of strong and value. book automated us a equipment that And book have close high-end we almost So in-house. came we up value is lot deal,

some a up besides state-of-the-art So good were to we competitor, able eliminating pick equipment.

be X So will that to profitable We we a we of think kicks also successful starts become once it think facility, which we take Boeing acquisition. go it home-run once X most can our financials more a little Boeing is to going both going move think or months. it's you do you one And acquisitions. -- again, ordering would to our see be Craig, how companies? into

Craig Brosious

-- rms. Yes. they play in segment. The with aerospace starting Obviously, that commercial

revenues in manufacturing over with the also XX the impacts. last the aftermarket months their been the have depressed and pause So

a that. G&A, because $X expecting And up. no our the tick we existing incremental to internal obviously, moving So we've overhead $X our and of certainly facility kind for then of would to there's revenue one facilities, of we're back coming able into an incremental months, leverage to structure. million entire XX that revenue that production been maybe million related And we're once run to rate, get normal

to And so we be that expect fairly business profitable.

rest acquisition, of like EOS $XX the industry. COVID revenue an months past been X impacted million the been On the of they've run running obviously now. rate by X, at the over They've approximate the

million the March XXXX. on a expect So to close, would that be $X come once board, they incremental for million approximately revenue, assuming we $X

margins. their Margins, similar to Power our are other

that gate. So that question, answers business out we of expect right Jim. the your accretive hope actually I to be

James Ricchiuti

does. It

Daniel Bernstein

and It the Craig. margins more not clarification, Bel just of CUI. be like The Power one will

Craig Brosious

traditional The Power Bel margin, correct. that's Yes, right.

James Ricchiuti

nice acquisitions. Again, like they sound

in also, of Or of extent some the whether supply on this you component more bit issues So a if on monitoring a can of impact? you chain wonder impact of any elaborate the can, worse? situation gets business. case it the the seeing little congrats. to Are I you just is terms the

Daniel Bernstein

and we we again, No semiconductor have people do companies fortunate our -- do component deal long-term deal because I think we're with with with. very relationships we the

they then example, because to seeing think the And up order. you to relationships our of for a sign the deliveries." Also, want you good situation of us, have for and noncancelable you in have have we "Hey, So came we in support a your do this lock industry. said, to I yearly job again, year, if ahead

we before about So come. tend shortages know they to

have is not affect it but to pricing our So we price again, how pricing to the I we increase major pressure shortage won't our or problem will we any we customers. affect that pricing may have this period, it increases and don't during during seen think But some forward, and this going delivery have period.

James Ricchiuti

for me. last Got question just it. And

you're sounds activity one activity is obviously, level a aerospace It in of up? commercial of the and the you're fair say situations with of business couple level to the Just of Is seeing that exception, across markets. OEMs? larger your seeing general, it your like potentially with picking

Daniel Bernstein

Well, in middle too comparing and the to shut I think is that not China we're had in high. when last bar, going of year, over COVID just down, you

James Ricchiuti

in QX. think the skewed. in as versus year-over-year you're of terms more are I year Yes, entering comparisons Obviously,

Daniel Bernstein

wish I could. still we think limited just visibility. I had I

think still there's -- policy. how year a government much more still out little affect with it's new so last overall. And can than still positive I there lot uncertainty bit the a I think COVID,

term, think people, are still of substantial that? about how still yet, again, and a the amount uncertainty champagne optimistic. opening up there's see cautiously I don't I for However, where But this anybody

Operator

hear with from we'll Research. Theodore O'Neill Next, Hills Litchfield

Theodore O'Neill

you. for questions Two

margins, this any was in like which quarter, a $XXX,XXX in show items there continue there. the that there Chinese to on subsidy quarter? onetime Last First, improvement. Were

Daniel Bernstein

Craig you it? can address or Lynn,

Lynn Hutkin

fourth subsidies those that Sure. this have was related amount a $XXX,XXX did Lynn. We similar QX to the in This quarter. year is in

Theodore O'Neill

or next year? the this this into may is continue may again, -- And not

Lynn Hutkin

will know if don't it continue. We

Theodore O'Neill

acquisition. EOS about Okay. My other is question the

perspective, sell brand? So and to label the just brand? move that you a will private the under continue you Or branding to from will EOS Bel

Daniel Bernstein

the crazy under you That we're their have. the last Bel -- situation big one brand. a then brand. labels product is under private CUI, of we questions We of constantly. brand. tell private acquired their U.S. company I EOS we EOS year, under The debating how label And uses

have distributors all by same couple we that sell product X of a EOS. different X So names, with of the built

many we is marketing, brand we do thing different brand marketing So past on couple companies are years. how #X that with how we of the we but EOS, the group is so our it's working acquired over Bel

Operator

Gabelli. from hear Hendi with Susanto now We

Hendi Susanto

talk Dan, have pipeline M&A you now your can your that about in team? you Farouq

Daniel Bernstein

Farouq Farouq? pipeline. our let I'll speak M&A about

Farouq Tuweiq

Yes. Thanks, Dan. today. Great here to be with you

the in coming So good industry, of there little to more expect a up amount on frequency of XXXX, the a world COVID. bit that from occur especially as is coned sort activity start we in

be we to will and pipeline. with a expect have. myself, addition is in robust of will own expectation to then obviously, at And now -- the not house, the cultivate be to our So the could team I here, have trying that see to deals and to side proprietary our Bel we more similar

definitely in need time say there, we So after going figure be it's spending I want to just would where to out out we it.

Daniel Bernstein

can we get party us. we think a proper for that he banks And think Farouq our and so because And going that in It's buy I which to lenders. to forth, the the major competitors knowledge. so think we past. participating, the or deal aboard, also acquisition to market, besides benefit the we money with want borrowed that's from I the think our a the the it's we financing financing of terms knowing companies how And the question that I brings brings are his in I key but haven't historically, great think with be where besides I is, forward Farouq with value going company, industrial many

Hendi Susanto

Then the area? lead you then talk among to they talk inventories -- times. trends inventories. that their this -- it. or Do I repeat Got about in apply that partake therefore, than your would build customers don't channel doesn't the more long not. and There's been are been I and lower -- And talk the in or like you are whether in would see your inventories about know that OEMs optimal. same There's

Daniel Bernstein

No.

are initial a X have I which has for long months the again, we item. premium think they're he's we for there you at always more or pricing. when going we a to I last -- are X What see delivery your about pay when lead to the think months. point, All concern you And are semiconductor, they about pricing. some business. few wait for weeks need see of willing to deliveries never that. most generally, to If feel Because push customers the lead they're someone long going have, to times, it's Generally, than back beneficial the concerned times. our

we though long properly it's for us all of even we frontlines our have always we I and long-term ourselves So times kept group And product with open we historically, prepare our and -- our beneficial think we a relationship for. have because do how suppliers. think the think processing lead again when of has with

confident that I feel times, are that we somewhat pricing, with it again, our manage pricing it properly. lead with can if face And our we increased So customers. offset to can we we do these

Hendi Susanto

it. for Got the with EOS be should the our rms Connector, and operating expectation then of expenses? addition the what And

Farouq Tuweiq

asking OpEx? for you're expectation Hendi,

Hendi Susanto

OpEx and SG&A?

Farouq Tuweiq

Yes.

very incremental bringing we manufacturing any that. be facility a are basically little there SG&A, along incremental should and with not OpEx. Because we're our rms, For bringing own, into

significant On XX% there. a of the about probably EOS not XX% the OpEx be amount. to We're would synergy anticipating some traditional, piece, maybe revenue,

Hendi Susanto

Craig, then we dollars can what And of share expect? kind of should absolute Okay. you SG&A

Craig Brosious

would Let's basis to be say, of, see. an let's annualized That million. revenue $XX $XX million on

XX% XX%, that. I'd So of say

Hendi Susanto

also. think Okay. for starting R&D then I in then from benefit some some -- and you would QX, And closures see

Craig Brosious

see we rms. R&D in comparison basis, for comparative a should a on positive So

Lynn Hutkin

business? the you are about asking Hendi, consolidated

Hendi Susanto

Yes, yes. business, the consolidated

between SG&A like there that months I think $XX may $XX think, I million. to million ago, was discussion run

Lynn Hutkin

Great.

then COGS. to SG&A will QX about we So the of of be for rest the between And that savings incremental cost majority will closure. in business, in consolidated be and see related $X.X about split $XXX,XXX will The Switzerland the R&D, million.

Operator

hear now Cole Mangrove. Steve [ ] from with We'll

Unknown Analyst

I few questions. a quick had

you kind Can tight to OEM? bit comfort more know starting one of I patterns Magnetics. on is strength that outside that gives on little sitting off, mentioned back? you a you now the that of the coming what large order OEMs happening else give are color of and you First seeing is more Are come there back.

Daniel Bernstein

using on to business. in we're backlog Based increased -- side the nicely backlog magnetic our fourth And judgment that make the call. quarter, the the has of

Unknown Analyst

Okay. And of what and X% you I rms down aerospace side. to a turning business. could commercial more is incremental talked bump be back about the a where look ultimately in like the X% if normalized the to know longer view. will you at rms kind look the of revenues. If go on world What we out expectation look

if don't years look at look example. this out for from X, So here, but year, X we we

Daniel Bernstein

per planes I planes the a before where And to are the were at month. X,XXX XX we were problems, looking to XX going that, think I key before they be. Boeing the is connected think leasing They plane. COVID and XXX, have

those So rms and in suppliers. their values to substantial are Boeing source at versus second

So again Craig? to hoping they 'XX I Craig, get are soon, and -- to think, now

Craig Brosious

be Right. Yes. a slower build expected in -- to Yes. It's schedule. be it's their going ramp-up to

couple earlier. going run rate to up back until that get were years we it's of anticipating a So to take they that

Daniel Bernstein

today. believe buy for what to be the think Boeing paid X was would look to probably could rms awaited Xx planes. you at it We point we normal that we as back us, I again, to saying XX, for all, So maybe XX if

ever the the very not anyway with we up picked So facilities, that We this key strengthens did a risk. fortunate. aerospace the But how equipment our back, pleased, fact we with we acquisition, relationship is of doesn't and come we're take XXX again, besides had. acquisition If our the the Boeing, we best that really needed it our some big state-of-the-art feel even in aftermarket distributors.

it I made, us, me up my it to Christmas probably the And think, coming -- thank for finally to for By again, thought so years the cards. has I Fuse Christmas of -- X responded. before he investment company $XX took X Christmas just cards. again, So cards he's way the Bel years, of was ever the best from President sending me it's

Unknown Analyst

a And pretty good deal. That's for whole a probably that's package. $XX

as not the individual So in one.

even... that's So

Daniel Bernstein

a a also made X And I deal sign to with What complete that's lot that working I of by with can can exciting, closely able a deal short a it do there X-month in acquisitions in weeks companies forward, we think of out roughly think going less don't were this -- many there's we timeframe. than we period, close good them. deal when that

so -- companies. with a a lot at were companies our Safron, done deal what of what other say, with. you we've And I to some had divestitures a I philosophy, TE, billion-dollar we of if And think you look the

their associates. and with go it's treat customers how Fuse, I the decide to think pay the because not Bel and we of transaction the highest dollar, because we ease of

I and PE, deal, track competitors, we of a a good PE against really the We deal record. going can have fair some have a we're quick to do a the think we So our deal. do

help to pursuit. to look So in that's a his going lot

Unknown Analyst

Definitely, sorry, I -- I'm guess one quick... definitely.

Lynn Hutkin

No...

Unknown Analyst

I'm ahead, Go I'm Lynn. sorry, sorry. Okay.

Lynn Hutkin

that revenue. add rms were million. quickly a look to to to $XX if of XXXX, wanted pre-COVID, years, was business in couple where around just around which And pre-grounding, they a million the million $X was to $XX back I that we year running compares in

they of give to where some you perspective under... just were So

Unknown Analyst

you Lynn, their have And do profitability?

Lynn Hutkin

Yes.

as improve. definitely their There's So this, Improvement they've room been in running now, conditions, around EBITDA for whereas before conditions all normal margin right was X%. XX%, around of

Daniel Bernstein

without so without overhead under should I be improve building and Bel, margins. forth, would and think we their their able those to substantially

Unknown Analyst

is change how talked conducting T&E question. structural sure longer -- you of going forward business, how how view seem you an too. terms in now. and how But to you like this hear doing in a And like about, look But the off-the-lock Or in... you world, this I'm terms you when we you're for of is this term, -- down do expect things going in everybody obviously, that do one, business? T&E you're would your how

Daniel Bernstein

a call think years, and I force. Historically, how a these going sooner. people revolution few made months are is consolidate or X how of I the last from salesperson And XX%, I you mean, home, we -- the the X wrong, over major XX% revolution home revolution. when X to sales we X have with a on through forward, salespeople or I'm going And we're and that's think can had months maybe taken I to the effort think role company. do or I people. our but a take you connect a but Yes, customer of from for the working would why people think maybe working each and going

had a Power a a the cover for salesperson CUI, the So all salesperson X Signal on We salesperson that customer. that possibly same into country. Transformer, Solutions, consolidated at for calling we people Bel

addition on. to are digital our substantially group people add pushing that, we to sales In

as So they BS. YouTube, through and think to how They and LinkedIn, really, don't like again, fast with through do quickly. information through they and I calls, talk we connect want to if phone think the they use staff don't they know, to people, you their it Twitter. And you're people young engineer dealing like don't to want they want

come engineers our and we quick that, design we as hopefully, mean, supplier a them able that's a them, for proper extremely so successful, third product we in makes they clearly us be our way. we product, the it engineers. product. If work of a and moving we that with us, system address in of designing we new offer be our is the And we for use before help to we if advantages. when engineer have the I come the some the And when them -- we're can key. to in enough or can understand to guide second -- to to And But difficult. it in supplier,

So it's exciting we and time definitely an things in changing are definitely rapidly. live

Unknown Analyst

Let me brought last feeling of hit your a was heart. to It opening kind my warm one that question.

into I pieces you've Farouq company thing obviously, we we to on is about guess do sum that. running on. do varying little task best -- the So the obviously, the the you do I how of to out But marketplace. efficiently. And do between narrow still degrees disparity So throw I'm to the on and him been confused as narrow mentioned is in that? the successful acquisitions, do coming a of how valuation pointing you've this we alluded how right guess, current

do to you us public... how price on a the So get

Daniel Bernstein

now Farouq, to earn going right salary want your you you're how and do it? explain to

Farouq Tuweiq

Yes. I here. somewhere on X got day to start

on other side the would same onion. and expectations you you're of other back formation the the of looking on of here perspectives side, was slightly the certain I we're on I at echo Bel peeling that I seeing that the looking say now Dan's coverage business kind when the and being under table kind at, the and sentiment develop So would

side when though, and the or quite the of the was sell opportunity size, the the say, represents varying degrees, Connectivity side seat a with the I on it from on that table, side. global also at side, positioning, Power be Magnetic Bel other side I'd sitting frankly, reach the on unique whether and a

when I'm organically. emphasize, both, drive -- see I a upon us growth base faster, I inorganically build looking see would and for great and to I when at, So

Bel the want the of be? conducting at eyes and from perspective, where for should set do and what us we we how my fresh one is business road. look is benefits, today a So And to bring to do asking questions down of

do gap? the we performance bridge do your need a question think is, and way that the of there's how well, we and we to kind business I consistency to So address.

talking feeling, your sitting growth. be side, for a Dan it again, the simplifying of sustainable would positioning margin to have ourselves earlier, shoes, whether to longer-term it and the just as we alluded we way that say I on do So business in and had kind investors

answers, tough So think figure just but I how and know it we we the a question, is to need there. get to out

Operator

with We have from Ricchiuti & Needham a follow-up Jim Company.

James Ricchiuti

easier the is sharply? Just commercial really actually at down get for much, QX, to when the come market. you aircraft comparisons The when looking business much that started

Lynn Hutkin

actually was saw second XXXX is So in of largest dropoff. the it on quarter I aerospace, the when the we commercial guess,

related then in more should position So we to QX. pressure QX that, on there be some will be sales incremental a from but normalized

James Ricchiuti

I'm just Got press it. sure at the a just misinterpreting then it. release, comment to not want I'm in make And looking I

sure of morning. you not additional in cost I'm with savings want about this make $X.X You're some confusing talking And to I an XXXX. just other million highlighted the savings that of

Lynn Hutkin

Right.

that versus will $X.X looking million XXXX XXXX, the in at year costs incremental be is that So full XXXX.

that Other closure. relates here. will tail implemented throughout we So the Switzerland closing will reorganization. of year North actions million sales like sales the $X America end XXXX. the the facility office, done in XXXX. another savings realized be year, a And Asia back cost of moving the functions savings in with couple had to actions million $X million other that, QX million of we of We were that other in had had in in $X of at in And realized our the result $X some Germany XXXX that

is detail helpful. million $X.X would quarter, of that incremental, that if do So and it be have by the I

James Ricchiuti

ahead. Go Sure.

Lynn Hutkin

Okay.

So incremental again, savings. these year-over-year are

it's in QX, QX versus million at it's 'XX. $X.X $X.X you're $X.X $XXX,XXX. in about million. almost QX, it's it's QX, So In QX, if And looking million.

Craig Brosious

And add still go believe file Jim, just our we to We savings more got in still to on before that. some ways program. we a cost color

X One it to key having software. of was we group. many now group, implementation, down Cinch our X from systems, the things the different for got ROI X, and for new Bel the And

all look can our consolidating in we So system because many now. functions footprint at Also we're on manufacturing one China.

operations in X have China. We

or to at either X have look consolidating down X. We to maybe

X savings still to So opportunity our years. a we to there's improve the next good on over year think

got we ways it. a go, still So and focused to still we're on

Operator

now any today's to session. question-and-answer Bernstein that Instructions] for Mr. remarks. over And the will additional turn I [Operator conference conclude closing will

Daniel Bernstein

looking And for April. James. a to Thank you, call we're Thank our you today. good forward speaking in you to Have day. joining

Operator

conference. conclude for participation. Thank will That you your today's

disconnect. now You may

Bel Fuse (BELFB) 18 Feb 212020 Q4 Earnings call transcript