LFUS Littelfuse Inc

Diverse and resilient business model drive Q2 sales and adjusted EPS above guidance

Littelfuse, Inc. (NASDAQ: LFUS), a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world, today reported financial results for the second quarter ended June 29, 2024:

• Net sales of $558 million were down 9% versus the prior year period, and down 8% organically
• GAAP diluted EPS was $1.82 and adjusted diluted EPS was $1.97
• Cash flow from operations was $69 million and free cash flow was $50 million
• The company’s Board of Directors approved an 8% increase in the quarterly cash dividend from $0.65 to $0.70; this equates to an annualized dividend of $2.80 per share
• On June 26, the company released its 2023 Sustainability Report on littelfuse.com/about-us/sustainability

“We are pleased to have exceeded the high end of our second quarter sales and adjusted EPS guidance ranges, driven by solid execution from our global teams and supported by our resilient business model and diverse technology positioning.” said Dave Heinzmann, Littelfuse President and Chief Executive Officer. “Looking ahead, we remain confident in an expected return to growth during 2024, likely in the fourth quarter. We see some pockets of normalized channel inventory and improving end demand but also ongoing signs of cautiousness from customers. We remain well positioned to execute our proven long-term growth strategy and deliver top tier stakeholder value.”

Third Quarter of 2024*

Based on current market conditions, for the third quarter the company expects,

• Net sales in the range of $540 - $570 million, adjusted diluted EPS in the range of $1.95 - $2.15 and an adjusted effective tax rate of approximately 26%

*Littelfuse provides guidance on a non-GAAP (adjusted) basis. GAAP items excluded from guidance may include the after-tax impact of items including acquisition and integration costs, restructuring, impairment and other charges, certain purchase accounting adjustments, non-operating foreign exchange adjustments and significant and unusual items. These items are uncertain, depend on various factors, and could be material to results computed in accordance with GAAP. Littelfuse is not able to forecast the excluded items in order to provide the most directly comparable GAAP financial measure without unreasonable efforts.

Dividend and Share Repurchase Authorization

• The company will pay a cash dividend on its common stock of $0.70 per share on September 5, 2024, to shareholders of record as of August 22, 2024

Conference Call and Webcast Information

Littelfuse will host a conference call on Wednesday, July 31, 2024, at 9:00 a.m. Central Time to discuss the results. The call will be broadcast and available for replay at Littelfuse.com. A slide presentation is available in the Investor Relations section of the company’s website at Littelfuse.com.

About Littelfuse

Littelfuse, Inc. (NASDAQ: LFUS) is a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world. Across more than 20 countries, and with approximately 16,000 global associates, we partner with customers to design and deliver innovative, reliable solutions. Serving over 100,000 end customers, our products are found in a variety of industrial, transportation and electronics end markets – everywhere, every day. Learn more at Littelfuse.com.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995

The statements in this press release that are not historical facts are intended to constitute "forward-looking statements" entitled to the safe-harbor provisions of the Private Securities Litigation Reform Act. Such statements are based on Littelfuse, Inc.’s (“Littelfuse” or the “Company”) current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties, include, but are not limited to, risks and uncertainties relating to general economic conditions; product demand and market acceptance; the impact of competitive products and pricing; product quality problems or product recalls; capacity and supply difficulties or constraints; coal mining exposures reserves; cybersecurity matters; failure of an indemnification for environmental liability; exchange rate fluctuations; commodity and other raw material price fluctuations; the effect of Littelfuse accounting policies; labor disputes; restructuring costs in excess of expectations; pension plan asset returns less than assumed; integration of acquisitions; uncertainties related to political or regulatory changes; and other risks which may be detailed in the company's Securities and Exchange Commission filings. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated or implied in the forward-looking statements. This release should be read in conjunction with information provided in the financial statements appearing in the company's Annual Report on Form 10-K for the year ended December 30, 2023.

Further discussion of the risk factors of the company can be found under the caption "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 30, 2023, and in other filings and submissions with the SEC, each of which are available free of charge on the company’s investor relations website at investor.littelfuse.com and on the SEC’s website at www.sec.gov. These forward-looking statements are made as of the date hereof. The company does not undertake any obligation to update, amend or clarify these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the availability of new information.

Non-GAAP Financial Measures

The information included in this press release includes the non-GAAP financial measures of organic net sales (decline) growth, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, adjusted income taxes, adjusted effective tax rate, free cash flow, net debt, consolidated EBITDA, and consolidated net leverage ratio (as defined in the credit agreement). Many of these non-GAAP financial measures exclude the effect of certain expenses and income not related directly to the underlying performance of our fundamental business operations. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is set forth in the attached schedules. The company believes that organic net sales (decline) growth, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, adjusted income taxes, and adjusted effective tax rate provide useful information to investors regarding its operational performance because they enhance an investor’s overall understanding of our core financial performance and facilitate comparisons to historical results of operations, by excluding items that are not related directly to the underlying performance of our fundamental business operations or were not part of our business operations during a comparable period. The company believes that free cash flow is a useful measure of its ability to generate cash. The company believes that net debt, consolidated EBITDA, and consolidated net leverage ratio are useful measures of its credit position. The company believes that all of these non-GAAP financial measures are commonly used by financial analysts and others in the industries in which we operate, and thus further provide useful information to investors. Management additionally uses these measures when assessing the performance of the business and for business planning purposes. Note that our definitions of these non-GAAP financial measures may differ from those terms as defined or used by other companies.

LFUS-F

LITTELFUSE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

(Unaudited)

 

 

(in thousands, except share and per share data)

 

June 29, 2024

 

December 30, 2023

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

561,742

 

$

555,513

Short-term investments

 

 

971

 

 

235

Trade receivables, less allowances of $73,744 and $84,696 at June 29, 2024 and December 30, 2023, respectively

 

 

317,963

 

 

287,018

Inventories

 

 

451,186

 

 

474,607

Prepaid income taxes and income taxes receivable

 

 

6,413

 

 

8,701

Prepaid expenses and other current assets

 

 

125,703

 

 

82,526

Total current assets

 

 

1,463,978

 

 

1,408,600

Net property, plant, and equipment

 

 

472,537

 

 

493,153

Intangible assets, net of amortization

 

 

566,030

 

 

606,136

Goodwill

 

 

1,287,762

 

 

1,309,998

Investments

 

 

22,904

 

 

24,821

Deferred income taxes

 

 

10,950

 

 

10,486

Right of use lease assets

 

 

59,563

 

 

62,370

Other long-term assets

 

 

41,254

 

 

79,711

Total assets

 

$

3,924,978

 

$

3,995,275

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

176,095

 

$

173,535

Accrued liabilities

 

 

135,180

 

 

149,214

Accrued income taxes

 

 

39,235

 

 

38,725

Current portion of long-term debt

 

 

67,679

 

 

14,020

Total current liabilities

 

 

418,189

 

 

375,494

Long-term debt, less current portion

 

 

795,825

 

 

857,915

Deferred income taxes

 

 

96,214

 

 

110,820

Accrued post-retirement benefits

 

 

31,810

 

 

34,422

Non-current lease liabilities

 

 

49,581

 

 

49,472

Other long-term liabilities

 

 

67,872

 

 

86,671

Total equity

 

 

2,465,487

 

 

2,480,481

Total liabilities and equity

 

$

3,924,978

 

$

3,995,275

LITTELFUSE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

(in thousands, except per share data)

 

June 29, 2024

 

July 1, 2023

 

June 29, 2024

 

July 1, 2023

Net sales

 

$

558,489

 

 

$

611,997

 

 

$

1,093,874

 

 

$

1,221,779

 

Cost of sales

 

 

351,485

 

 

 

377,165

 

 

 

699,062

 

 

 

741,990

 

Gross profit

 

 

207,004

 

 

 

234,832

 

 

 

394,812

 

 

 

479,789

 

 

 

 

 

 

 

 

 

 

Selling, general, and administrative expenses

 

 

93,371

 

 

 

94,543

 

 

 

179,498

 

 

 

182,853

 

Research and development expenses

 

 

27,146

 

 

 

24,496

 

 

 

54,813

 

 

 

51,786

 

Amortization of intangibles

 

 

15,729

 

 

 

16,885

 

 

 

31,554

 

 

 

33,751

 

Restructuring, impairment, and other charges

 

 

5,252

 

 

 

6,855

 

 

 

8,489

 

 

 

8,705

 

Total operating expenses

 

 

141,498

 

 

 

142,779

 

 

 

274,354

 

 

 

277,095

 

Operating income

 

 

65,506

 

 

 

92,053

 

 

 

120,458

 

 

 

202,694

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

9,975

 

 

 

10,056

 

 

 

19,586

 

 

 

19,702

 

Foreign exchange gain

 

 

(315

)

 

 

(1,404

)

 

 

(5,357

)

 

 

(3,079

)

Other income, net

 

 

(5,298

)

 

 

(2,050

)

 

 

(10,619

)

 

 

(8,283

)

Income before income taxes

 

 

61,144

 

 

 

85,451

 

 

 

116,848

 

 

 

194,354

 

Income taxes

 

 

15,678

 

 

 

15,380

 

 

 

22,930

 

 

 

35,538

 

Net income

 

$

45,466

 

 

$

70,071

 

 

$

93,918

 

 

$

158,816

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

Basic

 

$

1.83

 

 

$

2.82

 

 

$

3.78

 

 

$

6.40

 

Diluted

 

$

1.82

 

 

$

2.79

 

 

$

3.75

 

 

$

6.33

 

 

 

 

 

 

 

 

 

 

Weighted-average shares and equivalent shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

24,822

 

 

 

24,839

 

 

 

24,867

 

 

 

24,810

 

Diluted

 

 

25,030

 

 

 

25,095

 

 

 

25,075

 

 

 

25,078

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

$

24,399

 

 

$

55,160

 

 

$

42,560

 

 

$

157,188

 

LITTELFUSE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Six Months Ended

(in thousands)

 

June 29, 2024

 

July 1, 2023

OPERATING ACTIVITIES

 

 

 

 

Net income

 

$

93,918

 

 

$

158,816

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

73,161

 

 

 

83,347

 

Changes in operating assets and liabilities:

 

 

 

 

Trade receivables

 

 

(36,474

)

 

 

(30,562

)

Inventories

 

 

16,241

 

 

 

26,638

 

Accounts payable

 

 

6,819

 

 

 

(33,796

)

Accrued liabilities and income taxes

 

 

(28,829

)

 

 

(57,790

)

Prepaid expenses and other assets

 

 

1,738

 

 

 

4,980

 

Net cash provided by operating activities

 

 

126,574

 

 

 

151,633

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

Acquisitions of businesses, net of cash acquired

 

 

—

 

 

 

(158,260

)

Purchases of property, plant, and equipment

 

 

(34,674

)

 

 

(41,501

)

Net proceeds from sale of property, plant and equipment, and other

 

 

7,997

 

 

 

741

 

Net cash used in investing activities

 

 

(26,677

)

 

 

(199,020

)

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

Net payments of credit facility

 

 

(3,750

)

 

 

(3,750

)

Repurchases of common stock

 

 

(40,862

)

 

 

—

 

Cash dividends paid

 

 

(32,330

)

 

 

(29,790

)

All other cash (used in) provided by financing activities

 

 

(2,348

)

 

 

854

 

Net cash used in financing activities

 

 

(79,290

)

 

 

(32,686

)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

 

(14,434

)

 

 

(1,772

)

Increase (decrease) in cash, cash equivalents, and restricted cash

 

 

6,173

 

 

 

(81,845

)

Cash, cash equivalents, and restricted cash at beginning of period

 

 

557,123

 

 

 

564,939

 

Cash, cash equivalents, and restricted cash at end of period

 

$

563,296

 

 

$

483,094

 

LITTELFUSE, INC.

NET SALES AND OPERATING INCOME BY SEGMENT

(Unaudited)

 

 

 

Second Quarter

 

Year-to-Date

(in thousands)

 

 

2024

 

 

 

2023

 

 

% (Decline) / Growth

 

 

2024

 

 

 

2023

 

 

% (Decline) / Growth

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Electronics

 

$

305,639

 

 

$

350,147

 

 

(12.7

)%

 

$

596,744

 

 

$

708,740

 

 

(15.8

)%

Transportation

 

 

168,964

 

 

 

172,048

 

 

(1.8

)%

 

 

339,331

 

 

 

338,689

 

 

0.2

%

Industrial

 

 

83,886

 

 

 

89,802

 

 

(6.6

)%

 

 

157,799

 

 

 

174,350

 

 

(9.5

)%

Total net sales

 

$

558,489

 

 

$

611,997

 

 

(8.7

)%

 

$

1,093,874

 

 

$

1,221,779

 

 

(10.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

 

 

 

 

 

 

Electronics

 

$

46,165

 

 

$

79,844

 

 

(42.2

)%

 

$

83,968

 

 

$

170,006

 

 

(50.6

)%

Transportation

 

 

15,234

 

 

 

7,789

 

 

95.6

%

 

 

31,440

 

 

 

16,321

 

 

92.6

%

Industrial

 

 

9,547

 

 

 

15,108

 

 

(36.8

)%

 

 

14,343

 

 

 

32,249

 

 

(55.5

)%

Other(a)

 

 

(5,440

)

 

 

(10,688

)

 

N.M.

 

 

 

(9,293

)

 

 

(15,882

)

 

N.M.

 

Total operating income

 

$

65,506

 

 

$

92,053

 

 

(28.8

)%

 

$

120,458

 

 

$

202,694

 

 

(40.6

)%

Operating Margin

 

 

11.7

%

 

 

15.0

%

 

 

 

 

11.0

%

 

 

16.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

9,975

 

 

 

10,056

 

 

 

 

 

19,586

 

 

 

19,702

 

 

 

Foreign exchange gain

 

 

(315

)

 

 

(1,404

)

 

 

 

 

(5,357

)

 

 

(3,079

)

 

 

Other income, net

 

 

(5,298

)

 

 

(2,050

)

 

 

 

 

(10,619

)

 

 

(8,283

)

 

 

Income before income taxes

 

$

61,144

 

 

$

85,451

 

 

(28.4

)%

 

$

116,848

 

 

$

194,354

 

 

(39.9

)%

 

(a) "other" typically includes non-GAAP adjustments such as acquisition-related and integration costs, purchase accounting inventory adjustments and restructuring and impairment charges. (See Supplemental Financial Information for details.)

 

N.M. - Not meaningful

 

 

Second Quarter

 

Year-to-Date

(in thousands)

 

2024

 

 

2023

 

 

% (Decline)/Growth

 

2024

 

 

2023

 

 

% (Decline)/Growth

Operating Margin

 

 

 

 

 

 

 

 

 

 

 

 

Electronics

 

15.1

%

 

22.8

%

 

(7.7

)%

 

14.1

%

 

24.0

%

 

(9.9

)%

Transportation

 

9.0

%

 

4.5

%

 

4.5

%

 

9.3

%

 

4.8

%

 

4.5

%

Industrial

 

11.4

%

 

16.8

%

 

(5.4

)%

 

9.1

%

 

18.5

%

 

(9.4

)%

LITTELFUSE, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(In millions of USD except per share amounts - unaudited)

 

Non-GAAP EPS reconciliation

 

 

 

 

 

 

 

 

 

 

Q2-24

 

Q2-23

 

YTD-24

 

YTD-23

GAAP diluted EPS

 

$

1.82

 

$

2.79

 

$

3.75

 

 

$

6.33

EPS impact of Non-GAAP adjustments (below)

 

 

0.15

 

 

0.33

 

 

(0.02

)

 

 

0.42

Adjusted diluted EPS

 

$

1.97

 

$

3.12

 

$

3.73

 

 

$

6.75

Non-GAAP adjustments - (income) / expense

 

 

 

 

 

 

 

 

 

 

Q2-24

 

Q2-23

 

YTD-24

 

YTD-23

Acquisition-related and integration costs (a)

 

$

0.8

 

 

$

3.8

 

 

$

1.8

 

 

$

7.2

 

Restructuring, impairment and other charges (b)

 

 

5.3

 

 

 

6.9

 

 

 

8.5

 

 

 

8.7

 

Gain on sale of fixed assets (c)

 

 

(0.7

)

 

 

—

 

 

 

(1.0

)

 

 

—

 

Non-GAAP adjustments to operating income

 

 

5.4

 

 

 

10.7

 

 

 

9.3

 

 

 

15.9

 

Other income, net (d)

 

 

(0.5

)

 

 

—

 

 

 

(0.3

)

 

 

(0.2

)

Non-operating foreign exchange gain

 

 

(0.3

)

 

 

(1.4

)

 

 

(5.4

)

 

 

(3.1

)

Non-GAAP adjustments to income before income taxes

 

 

4.6

 

 

 

9.3

 

 

 

3.6

 

 

 

12.6

 

Income taxes (e)

 

 

0.7

 

 

 

1.0

 

 

 

4.1

 

 

 

1.9

 

Non-GAAP adjustments to net income

 

$

3.9

 

 

$

8.3

 

 

$

(0.5

)

 

$

10.7

 

 

 

 

 

 

 

 

 

 

Total EPS impact

 

$

0.15

 

 

$

0.33

 

 

$

(0.02

)

 

$

0.42

 

Adjusted operating margin / Adjusted EBITDA reconciliation

 

 

 

 

 

 

 

 

 

 

Q2-24

 

Q2-23

 

YTD-24

 

YTD-23

Net income

 

$

45.5

 

 

$

70.1

 

 

$

93.9

 

 

$

158.8

 

Add:

 

 

 

 

 

 

 

 

Income taxes

 

 

15.7

 

 

 

15.4

 

 

 

22.9

 

 

 

35.5

 

Interest expense

 

 

10.0

 

 

 

10.1

 

 

 

19.6

 

 

 

19.7

 

Foreign exchange gain

 

 

(0.3

)

 

 

(1.4

)

 

 

(5.4

)

 

 

(3.1

)

Other income, net

 

 

(5.3

)

 

 

(2.1

)

 

 

(10.6

)

 

 

(8.3

)

GAAP operating income

 

$

65.5

 

 

$

92.1

 

 

$

120.5

 

 

$

202.7

 

Non-GAAP adjustments to operating income

 

 

5.4

 

 

 

10.7

 

 

 

9.3

 

 

 

15.9

 

Adjusted operating income

 

$

70.9

 

 

$

102.8

 

 

$

129.8

 

 

$

218.6

 

Amortization of intangibles

 

 

15.7

 

 

 

16.9

 

 

 

31.6

 

 

 

33.8

 

Depreciation expenses

 

 

17.1

 

 

 

18.0

 

 

 

33.7

 

 

 

35.6

 

Adjusted EBITDA

 

$

103.7

 

 

$

137.7

 

 

$

195.0

 

 

$

288.0

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

558.5

 

 

$

612.0

 

 

$

1,093.9

 

 

$

1,221.8

 

Net income as a percentage of net sales

 

 

8.1

%

 

 

11.5

%

 

 

8.6

%

 

 

13.0

%

Operating margin

 

 

11.7

%

 

 

15.0

%

 

 

11.0

%

 

 

16.6

%

Adjusted operating margin

 

 

12.7

%

 

 

16.8

%

 

 

11.9

%

 

 

17.9

%

Adjusted EBITDA margin

 

 

18.6

%

 

 

22.5

%

 

 

17.8

%

 

 

23.6

%

Adjusted EBITDA by Segment

 

Q2-24

 

Q2-23

 

 

Electronics

 

Transportation

 

Industrial

 

Electronics

 

Transportation

 

Industrial

GAAP operating income

 

$

46.2

 

 

$

15.2

 

 

$

9.5

 

 

$

79.8

 

 

$

7.8

 

 

$

15.1

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

Add back amortization

 

 

9.8

 

 

 

3.3

 

 

 

2.6

 

 

 

10.1

 

 

 

4.2

 

 

 

2.7

 

Add back depreciation

 

 

10.0

 

 

 

5.8

 

 

 

1.3

 

 

 

9.7

 

 

 

6.9

 

 

 

1.4

 

Adjusted EBITDA

 

$

66.0

 

 

$

24.3

 

 

$

13.4

 

 

$

99.6

 

 

$

18.9

 

 

$

19.2

 

Adjusted EBITDA Margin

 

 

21.6

%

 

 

14.4

%

 

 

16.0

%

 

 

28.5

%

 

 

11.0

%

 

 

21.4

%

Adjusted EBITDA by Segment

 

YTD-24

 

YTD-23

 

 

Electronics

 

Transportation

 

Industrial

 

Electronics

 

Transportation

 

Industrial

GAAP operating income

 

$

84.0

 

 

$

31.4

 

 

$

14.3

 

 

$

170.0

 

 

$

16.3

 

 

$

32.2

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

Add back amortization

 

 

19.7

 

 

 

6.8

 

 

 

5.1

 

 

 

20.3

 

 

 

8.6

 

 

 

4.9

 

Add back depreciation

 

 

19.9

 

 

 

11.0

 

 

 

2.8

 

 

 

19.5

 

 

 

13.6

 

 

 

2.5

 

Adjusted EBITDA

 

$

123.6

 

 

$

49.2

 

 

$

22.2

 

 

$

209.9

 

 

$

38.5

 

 

$

39.6

 

Adjusted EBITDA Margin

 

 

20.7

%

 

 

14.5

%

 

 

14.1

%

 

 

29.6

%

 

 

11.4

%

 

 

22.7

%

Net sales reconciliation

 

Q2-24 vs. Q2-23

 

 

Electronics

 

Transportation

 

Industrial

 

Total

Net sales decline

 

(13

)%

 

(2

)%

 

(7

)%

 

(9

)%

Less:

 

 

 

 

 

 

 

 

Acquisitions

 

—

%

 

—

%

 

—

%

 

—

%

FX impact

 

(1

)%

 

(1

)%

 

(1

)%

 

(1

)%

Organic net sales decline

 

(12

)%

 

(1

)%

 

(6

)%

 

(8

)%

Net sales reconciliation

 

YTD-24 vs. YTD-23

 

 

Electronics

 

Transportation

 

Industrial

 

Total

Net sales (decline) growth

 

(16

)%

 

—

%

 

(9

)%

 

(10

)%

Less:

 

 

 

 

 

 

 

 

Acquisitions

 

—

%

 

—

%

 

1

%

 

—

%

FX impact

 

(1

)%

 

(1

)%

 

—

%

 

—

%

Organic net sales (decline) growth

 

(15

)%

 

1

%

 

(10

)%

 

(10

)%

Income tax reconciliation

 

 

 

 

 

 

 

 

 

 

Q2-24

 

Q2-23

 

YTD-24

 

YTD-23

Income taxes

 

$

15.7

 

 

$

15.4

 

 

$

22.9

 

 

$

35.5

 

Effective rate

 

 

25.6

%

 

 

18.0

%

 

 

19.6

%

 

 

18.3

%

Non-GAAP adjustments - income taxes

 

 

0.7

 

 

 

1.0

 

 

 

4.1

 

 

 

1.9

 

Adjusted income taxes

 

$

16.4

 

 

$

16.4

 

 

$

27.0

 

 

$

37.4

 

Adjusted effective rate

 

 

25.0

%

 

 

17.4

%

 

 

22.4

%

 

 

18.1

%

Free cash flow reconciliation

 

 

 

 

 

 

 

 

 

 

Q2-24

 

Q2-23

 

YTD-24

 

YTD-23

Net cash provided by operating activities

 

$

69.4

 

 

$

98.2

 

 

$

126.6

 

 

$

151.6

 

Less: Purchases of property, plant and equipment

 

 

(19.1

)

 

 

(15.8

)

 

 

(34.7

)

 

 

(41.5

)

Free cash flow

 

$

50.3

 

 

$

82.4

 

 

$

91.9

 

 

$

110.1

 

Consolidated Total Debt

 

As of June 29, 2024

Consolidated Total Debt

 

$

863.5

Unamortized debt issuance costs

 

 

3.3

Finance lease liability

 

 

0.4

Consolidated funded indebtedness

 

 

867.2

Cash held in U.S. (up to $400 million)

 

 

102.1

Net debt

 

$

765.1

 

 

 

Consolidated EBITDA

 

Twelve Months Ended June 29, 2024

Net Income

 

$

194.5

Interest expense

 

 

39.7

Income taxes

 

 

56.5

Depreciation

 

 

69.7

Amortization

 

 

63.6

Non-cash additions:

 

 

Stock-based compensation expense

 

 

24.5

Purchase accounting inventory step-up charge

 

 

—

Unrealized loss on investments

 

 

2.1

Impairment charges

 

 

1.9

Other

 

 

13.7

Consolidated EBITDA (1)

 

$

466.2

 

 

 

Consolidated Net Leverage Ratio (as defined in the Credit Agreement) *

 

1.6x

* Our Credit Agreement and Private Placement Note with maturities ranging from 2024 to 2032, contain financial ratio covenants providing that if, as of the last day of each fiscal quarter, the Consolidated Net Leverage ratio at such time for the then most recently concluded period of four consecutive fiscal quarters of the Company exceeds 3.50:1.00, an Event of Default (as defined in the Credit Agreement and Private Placement Senior Notes) is triggered.

The Credit Agreement and Private Placement Senior Notes were amended in Q2 2022 and now allow for the addition of acquisition and integration costs up to 15% of Consolidated EBITDA and the netting of up to $400M of Available Cash (Cash held by US Subsidiaries).

 

(1) Represents Consolidated EBITDA as defined in our Credit Agreement and Private Placement Senior Notes and is calculated using the most recently concluded period of four consecutive quarters.

 

Note: Total will not always foot due to rounding.

 

(a) reflected in selling, general and administrative expenses ("SG&A").

(b) reflected in restructuring, impairment and other charges.

(c) 2024 amount reflected a gain of $0.7 million ($1.0 million year-to-date) recorded for the sale of two buildings within the Transportation segment.

(d) Q2 2024 included a reversal of $0.5 million for an asset retirement obligation charge related the disposal of a business in 2019. 2024 year-to-date also included $0.2 million increase in coal mining reserves, while 2023 amount included $0.2 million gain from the sale of a building within the Electronics segment.

(e) reflected the tax impact associated with the non-GAAP adjustments.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240730715375/en/

David Kelley 224-727-2535 dkelley@littelfuse.com