Company delivers record sales, adjusted earnings per share and cash flow for 2017
CHICAGO, January 31, 2018 – Littelfuse, Inc. (NASDAQ:LFUS) today reported financial results for the fourth quarter and full year ended December 30, 2017
Fourth Quarter 2017 Highlights
- Net sales were $304.8 million, up 7% versus the prior year period. Organic revenue growth was 4%, excluding revenue from acquisitions closed in the past 12 months, divestitures and foreign currency effects.
- Growth by segment versus the prior year period:
- Electronics sales increased 4% (up 1% organically)
- Automotive sales increased 9% (up 6% organically)
- Industrial sales increased 19% (up 21% organically)
- GAAP effective tax rate was 124.7%, including the impact of the estimated one-time tax charge noted above; Adjusted effective tax rate was 16.2%
- The electronics segment book-to-bill ratio for the fourth quarter was 1.11
- During January, the company completed a private placement of $175 million of senior notes
- On January 17th, the company completed its acquisition of IXYS Corporation
Full Year 2017 Highlights
- Net sales were $1.222 billion, up 16% versus the prior year period, and 7% organically
- GAAP diluted EPS was $5.21, which includes the estimated one-time $49 million tax charge noted above;
- Adjusted diluted EPS of $7.74 increased 24% over last year
- GAAP effective tax rate was 41.4% and adjusted effective tax rate was 18.1%
- Cash flow from operations was $269 million and free cash flow was $203 million, both records for the company
"The fourth quarter capped off a tremendous year for us, as we finished 2017 with record sales, earnings and cash flow," said Dave Heinzmann, Littelfuse Chief Executive Officer. "While our 2017 organic sales growth of 7% was led by strength across our Electronics segment, all of our businesses had a strong finish for the year. We delivered 160 basis points in full year adjusted operating margin expansion, which included returning our industrial segment back to double digit operating margin profitability. We made significant progress in our strategy with two acquisitions that will add more than $350 million in annualized revenue, while expanding our sensor and power control portfolios."
First Quarter 2018 Outlook
All comparisons are to the prior year period unless otherwise noted. 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, impairment and severance charges, foreign exchange adjustments and unusual gains and losses. 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.
"We enter 2018 with good momentum, a track record of strong operational performance and a diversified portfolio that capitalizes on the key trends of a safe, green and connected world," continued Heinzmann. "We're well positioned to deliver on our strategy, which we expect will drive double digit revenue and earnings growth."
The outlook includes IXYS results, with the first quarter including approximately two and a half months of IXYS financial results.
For the first quarter of 2018:
- Net sales are expected to be in the range of $384 to $396 million, up 37% on an as reported basis and up 6% organically, at the midpoint versus the prior year quarter
- Adjusted diluted earnings per share are expected to be in the range of $1.73 to $1.87
- Adjusted effective tax rate is expected to be in the range of 22.5% to 23.5%
For the 2018 full year:
- Adjusted effective tax rate is expected to be in the range of 18% – 21%
- Capital expenditures are expected to be in the range of $80 - $85 million, including expenditures for IXYS’ operations.
Dividend
The company will pay a cash dividend on its common stock of $0.37 per share on March 8, 2018 to shareholders of record as of February 22, 2018.
Konferenzgespräch- und Webcast-Information
Littelfuse will host a conference call today, Wednesday, January 31, 2018, at 9:00 a.m. Central / 10:00 a.m. Eastern time to discuss the results. Das Konferenzgespräch wird live im Internet übertragen und kann über die Website des Unternehmens aufgerufen werden: www.littelfuse.com. The call will be available for replay on the company’s website.
Über Littelfuse
Littelfuse wurde 1927 gegründet und ist der weltweit führende Anbieter im Bereich Stromkreisschutz, mit stetig wachsenden weltweiten Plattformen für Leistungsregelung und -sensorik. Das Unternehmen bedient weltweit Kunden in den Märkten Elektronik, Automobil und Industrie mit Technologien wie Sicherungen, Halbleitern, Polymeren, Keramik, Schaltern und Sensoren. Das Unternehmen hat über 11.000 Mitarbeiter an mehr als 50 Standorten in Amerika, Europa und Asien. For more information, please visit Littelfuse.com.
„Safe Harbor“-Bestimmungen des US-amerikanischen Private Securities Litigation Reform Act von 1995
Aussagen in dieser Pressemeldung, bei denen es sich nicht um historische Tatsachen handelt, sind als „zukunftsgerichtete Aussagen“ im Sinne der „Safe Harbor“-Bestimmungen des PSLRA zu betrachten. Diese Aussagen können bestimmten Risiken und Unsicherheiten unterliegen, einschließlich, aber nicht beschränkt auf Risiken in Zusammenhang mit der Produktnachfrage und der Marktakzeptanz, wirtschaftlichen Bedingungen, dem Einfluss von Konkurrenzprodukten und der Preisgestaltung der Mitbewerber, Problemen mit der Produktqualität und Rückrufaktionen, Kapazitäts- und Versorgungsengpässen und -schwierigkeiten, Reserven aus dem Kohlebergbau, Fehlern bei der Schadloshaltung von Umwelthaftungen, Wechselkursschwankungen, Rohstoffpreisschwankungen, den Auswirkungen der Buchhaltungsrichtlinien des Unternehmens, Arbeitskonflikten, über den Erwartungen liegenden Umstrukturierungskosten, unter den Erwartungen liegenden Anlagerenditen aus Pensionsplänen, Ungewissheiten bezüglich politischer oder regulatorischer Änderungen, der Integration des kürzlich übernommenen Geschäfts der IXYS Corporation („IXYS“) und dem Risiko, dass die erwarteten Vorteile, Synergien und das prognostizierte Wachstum durch die Akquisition von IXYS möglicherweise nicht rechtzeitig oder überhaupt nicht erreicht werden sowie anderen Risiken, welche in anderen Unterlagen, die das Unternehmen bei der US-Wertpapier- und Börsenaufsichtsbehörde einreicht hat, eingehender beschrieben sind. Sollten eines oder mehrere dieser Risiken oder Unsicherheiten tatsächlich eintreten oder sollten sich zugrunde liegende Annahmen als falsch erweisen, können sich die tatsächlichen Ergebnisse und Folgen erheblich von jenen in den zukunftsgerichteten Aussagen genannten oder implizit enthaltenen unterscheiden. Diese Mitteilung sollte in Verbindung mit den Jahresabschlussdaten aus dem Jahresbericht des Unternehmens auf Formular 10-K für das am 31. Dezember 2016 abgeschlossene Geschäftsjahr gelesen werden. Weitere Informationen zur Erörterung der Risikofaktoren des Unternehmens finden Sie unter Punkt 1A. „Risikofaktoren“ aus dem Jahresbericht des Unternehmens auf Formular 10-K für das am 31. Dezember 2016 abgeschlossene Geschäftsjahr.
Non-GAAP Financial Measures
The information included in this press release includes the non-GAAP financial measures of organic revenue growth, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, adjusted effective tax rate and free cash flow. 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 revenue growth, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, 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 free cash flow is a useful measure of its ability to generate cash. 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.
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