Littelfuse Reports Third Quarter Results.Business Editors DES PLAINES Des Plaines, city, United States Des Plaines (dĕs plānz), city (1990 pop. 53,223), Cook co., NE Ill., a suburb of Chicago on the Des Plaines River; inc. 1925. Among its manufactures are chemicals and electronic equipment. , Ill.--(BUSINESS WIRE)--Oct. 22, 2003 Littelfuse Littelfuse Inc. (NYSE: LFUS) is an American multinational electronics manufacturing company based in Des Plaines, Illinois, a Chicago suburb. Littelfuse, Inc. provides circuit protection products to companies in the areas of over-voltage, over-current and integrated , Inc. (NASDAQ/NMS:LFUS) today reported sales and earnings for the third quarter of 2003. Sales for the third quarter of 2003 were $94.7 million, a 26% increase from sales of $75.0 million in the third quarter of 2002. Teccor Electronics, which was acquired on July July: see month. 7, 2003, contributed $19.9 million in sales for the quarter. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.19 in the third quarter of 2003 compared to $0.17 for the prior year period. For the first nine months of 2003, sales were $237.5 million, up 11% compared to the prior year period. Diluted earnings per share through the first nine months of 2003 were $0.51. For the same period in 2002, diluted earnings per share were $0.32, which included $0.11 of restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. . "We are pleased with our progress during the third quarter, with the integration of Teccor and in the operating trends of the base business," said Howard Howard, English noble family. Landowners in Norfolk from the 13th cent., the Howards obtained the duchy of Norfolk through the marriage of Sir Robert Howard to Margaret Mowbray, daughter of Thomas Mowbray, 1st duke of Norfolk. B. Witt Witt , Katerina Born 1965. German figure skater who won gold medals at the 1984 and 1988 Olympic games. She won world championships in 1985, 1987, and 1988. , Chairman, President and Chief Executive Officer. "We are now more confident than ever that the Littelfuse/Teccor combination will be both powerful in the marketplace and profitable for our shareholders." By geographic segment, sales for the third quarter of 2003 were up 16% in the Americas A·mer·i·cas , the See America. , 19% in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and 50% in Asia, compared to the
prior year. These increases were driven by the addition of Teccor and
continued strength in the Asian electronic markets.Excluding the Teccor acquisition, sales for the third quarter were flat compared to the prior year period. Electronic sales were up 4% for the quarter (excluding Teccor), while automotive and electrical sales were down 6% and 4% respectively. "In our electronics market, we are seeing strength in Asia related to consumer electronics, notebook computers A laptop computer that weighs in a range from five to seven pounds. The term originated when laptops were routinely more than 10 pounds, and those that became lighter were placed in a special "notebook" category. In practice, notebook computer and laptop computer are synonymous. and handheld handheld: see personal digital assistant. products, while North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe remain soft," said Witt. "In our automotive and electrical markets, industry indicators have been generally negative compared to last year, and price erosion has become more of a factor," added Witt. "Teccor was $.05 dilutive to earnings per share for the third quarter, driven primarily by $1.7 million of pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charges for accounting policy changes related to inventory valuation and expensing of certain short-lived assets which had previously been capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. ," said Phil PHIL Philosophy Phil Philippine PHIL Philippians PHIL Philadelphia, PA, USA PHIL Public Health Image Library (US CDC) Franklin, Vice President, Operations Support and Chief Financial Officer. "Excluding these charges, Teccor's financial performance was better than expected due to higher unit volumes and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. product mix. In addition, margins for the base Littelfuse business showed substantial improvement during the quarter reflecting the recently completed cost reduction programs, favorable product mix and favorable currency impacts," added Franklin. "Cash flow was another highlight for the third quarter as we generated $18.5 million of cash from operating activities compared to $10.9 million in the prior year period and $8.6 million for the first six months of this year," said Franklin. "Major cash contributors for the quarter were lower working capital, most notably inventory, and increased profitability of the base business. Teccor also made a small positive contribution to cash from operating activities." "With the shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down of the Centralia, Illinois Centralia is a city located in Marion, Jefferson, Washington and Clinton Counties in the U.S. state of Illinois. The population was 14,136 at the 2000 census. The town was founded because it was the point where the two original branches of the Illinois Central Railroad, built in , plant in the third quarter, we have now successfully completed our manufacturing rationalization rationalization, in psychology: see defense mechanism. program, which has been underway for two years," said Witt. "This program has achieved our goal of $15 million of annual cost savings. Over the next 6 to 12 months, we will be announcing additional programs with a goal to achieve over $20 million of savings in 2004. Two of the initiatives, which we will begin implementing immediately, are the downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing of our facilities in Dundalk Dundalk, town, Republic of Ireland Dundalk (dəndôk`), town (1991 pop. 30,061), seat of Co. Louth, NE Republic of Ireland, near the mouth of the Castletown River at Dundalk Bay. , Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. and Arcola, Illinois Arcola is a city in Douglas County, Illinois, United States. The population was 2,652 at the 2000 census. The city was founded in 1855, when the Illinois Central Railroad was built through the county. . We expect to take charges of approximately $3.2 million in the fourth quarter related to these programs. Even with these charges, we expect to meet or exceed the current 2003 consensus earnings estimate of $0.60 per share." Littelfuse will host a conference call today, Wednesday Wednesday: see week. , October October: see month. 22, 2003, 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 Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the 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 To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. The call will be available for replay through October 29, 2003, 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 England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. , Ireland, Switzerland, Mexico, China and the Philippines, as well as in Des Plaines and Arcola, Illinois and Irving, Texas Irving (pronounced 'er-ving') is a city located in the U.S. state of Texas within Dallas County. According to the 2000 U.S. Census, the city population was 191,615; the 2006 estimate was 201,927 according to the North Central Texas Council of Governments, and 196,084 according to . It also has sales, engineering and distribution facilities in the Netherlands, Singapore, Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , Taiwan, Japan, Korea and Brazil. For more information, please visit Littelfuse's web site at www.littelfuse.com. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. or difficulties, exchange rate fluctuations, actual purchases under agreements, the effect of the company's accounting policies, labor disputes, restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs in excess of expectations and other risks which may be detailed in the company's Securities and Exchange Commission filings.
LITTELFUSE, INC.
Sales by Market and Geography
(Dollars in millions)
Third Quarter Year-to-Date
------------------------ ------------------------
2003 2002 % Change 2003 2002 % Change
---- ---- -------- ---- ---- --------
Market
------
Electronics $ 42.6 $ 40.9 4% $119.5 $112.8 6%
Automotive 23.1 24.6 -6% 72.4 74.9 -3%
Electrical 9.1 9.5 -4% 25.7 26.3 -2%
------ ------ ---- ------ ------ ----
Subtotal 74.8 75.0 0% 217.6 214.0 2%
Teccor 19.9 19.9
------ ------ ---- ------ ------ ----
Total $ 94.7 $ 75.0 26% $237.5 $214.0 11%
====== ====== ==== ====== ====== ====
Third Quarter Year-to-Date
------------------------ ------------------------
2003 2002 % Change 2003 2002 % Change
---- ---- -------- ---- ---- --------
Geography
---------
Americas $ 46.4 $ 40.1 16% $117.3 $114.3 3%
Europe 15.3 12.9 19% 43.7 37.5 17%
Asia Pacific 33.0 22.0 50% 76.5 62.2 23%
------ ------ ---- ------ ------ ----
Total $ 94.7 $ 75.0 26% $237.5 $214.0 11%
====== ====== ==== ====== ====== ====
LITTELFUSE, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share data, unaudited)
For the For the
Three Months Ended Nine Months Ended
------------------ ------------------
Sept 27, Sept 28, Sept 27, Sept 28,
-------- -------- -------- --------
2003 2002 2003 2002
---- ---- ---- ----
Net sales $ 94,696 $ 74,965 $237,447 $213,994
Cost of sales 66,910 51,574 162,709 146,301
-------- -------- -------- --------
Gross profit 27,786 23,391 74,738 67,693
Selling, general and
administrative expenses 18,228 15,243 49,449 45,226
Research and development
expenses 2,297 2,122 6,092 6,288
Amortization of intangibles 192 191 575 575
Restructuring expense - - - 3,744
-------- -------- -------- --------
Operating income 7,069 5,835 18,622 11,860
Interest expense 544 729 1,594 2,171
Other (income) expense 160 (623) (391) (1,373)
-------- -------- -------- --------
Income before income taxes 6,365 5,729 17,419 11,062
Income taxes 2,292 2,062 6,271 3,982
-------- -------- -------- --------
Net income $ 4,073 $ 3,667 $ 11,148 $ 7,080
======== ======== ======== ========
Net income per share:
Basic $ 0.19 $ 0.17 $ 0.51 $ 0.32
======== ======== ======== ========
Diluted $ 0.19 $ 0.17 $ 0.51 $ 0.32
======== ======== ======== ========
Weighted average shares and
equivalent shares outstanding:
Basic 21,823 21,927 21,794 21,896
======== ======== ======== ========
Diluted 21,955 22,015 21,862 22,034
======== ======== ======== ========
LITTELFUSE, INC.
Condensed Consolidated Balance Sheets
(in thousands, unaudited)
Sept 27, 2003 December 28, 2002
------------- -----------------
Assets:
Cash and cash equivalents $ 10,738 $ 27,750
Short-term investments - 8,806
Receivables 57,630 40,810
Inventories 55,980 44,533
Other current assets 26,533 15,146
----------- -----------
Total current assets 150,881 137,045
Property, plant, and equipment, net 103,256 81,122
Reorganization value, net 27,665 27,665
Other intangible assets, net 27,736 28,291
Other assets 5,760 3,355
----------- -----------
$ 315,298 $ 277,478
=========== ===========
Liabilities and Shareholders' Equity:
Current liabilities excluding
current portion of long-term debt $ 58,390 $ 41,308
Current portion of long-term debt 18,128 18,994
----------- -----------
Total current liabilities 76,518 60,302
Long-term debt 23,589 20,252
Deferred liabilities 1,503 1,713
Accrued post-retirement benefits 11,234 9,027
Other long-term liabilities 278 473
Shareholders' equity 202,176 185,711
----------- -----------
Shares issued and outstanding
at Sept 27, 2003: 21,868,647 $ 315,298 $ 277,478
=========== ===========
LITTELFUSE, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
For the For the
Three Months Ended Nine Months Ended
------------------ -------------------
Sept 27, Sept 28, Sept 27, Sept 28,
-------- -------- -------- --------
2003 2002 2003 2002
---- ---- ---- ----
Operating activities:
Net income $ 4,073 $ 3,667 $ 11,148 $ 7,080
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 5,223 4,610 13,857 13,233
Amortization 192 191 575 575
Changes in operating assets
and liabilities:
Accounts receivable (2,806) (2,067) (4,608) (6,953)
Inventories 4,309 2,678 1,588 5,019
Accounts payable and
accrued expenses 6,428 828 5,814 5,481
Other, net 1,125 1,018 (1,431) 592
-------- -------- -------- --------
Net cash provided by operating
activities 18,544 10,925 26,943 25,027
Cash used in investing activities:
Purchases of property, plant,
and equipment, net (9,136) (1,786) (11,712) (5,185)
Acquisitions, net of cash
acquired (44,496) (3,087) (44,496) (15,031)
Sale (purchase) of marketable
securities, net - (8,194) 8,806 (8,194)
-------- -------- -------- --------
Net cash used in investing
activities (53,632) (13,067) (47,402) (28,410)
Cash provided by (used in)
financing activities:
Proceeds from long-term
debt 30,500 - 30,500 -
Payments of long-term debt (28,550) (10,138) (29,991) (11,866)
Proceeds (purchases) from
exercise of stock options
and warrants, net 282 (1,050) 982 221
-------- -------- -------- --------
Net cash provided by (used in)
financing activities 2,232 (11,188) 1,491 (11,645)
Effect of exchange rate
changes on cash 1,315 (438) 1,956 (1,440)
-------- -------- -------- --------
Increase/(decrease) in cash
and cash equivalents (31,541) (13,768) (17,012) (16,468)
Cash and cash equivalents at
beginning of period 42,279 31,826 27,750 34,526
-------- -------- -------- --------
Cash and cash equivalents at
end of period $ 10,738 $ 18,058 $ 10,738 $ 18,058
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