CHICAGO — Littelfuse, Inc. today reported financial results for the first quarter ended March 28, 2020:
- Net sales of $346.1 million were down 15% versus the prior year period, and down 13% organically, primarily due to electronics inventory rebalancing and production and demand impacts related to the COVID-19 pandemic
- Growth by segment versus the prior year period:
- Electronics sales decreased 19% (down 18% organically)
- Automotive sales decreased 8% (down 6% organically)
- Industrial sales increased 2% (up 2% organically)
- GAAP diluted EPS was $1.00; adjusted diluted EPS was $1.29
- GAAP effective tax rate was 30.6% and the adjusted effective tax rate was 26.5%
- Cash flow from operations was $45.3 million and free cash flow was $28.7 million
Liquidity and Capital Allocation
- As of the end of the first quarter, the company had $621 million of cash and $774 million of debt
- The company repurchased approximately $23 million of its shares in the quarter
- The company borrowed $100 million from its credit facility in the quarter to preserve financial flexibility and enhance liquidity
- On April 3, the company amended and extended its $700 million senior unsecured revolving credit facility, providing additional flexibility and reducing costs
The company’s current share repurchase authorization expires on April 30, 2020, which will be replaced with a new one million share authorization effective through April 30, 2021. The company is suspending share repurchase activity for the near-term. - The company will pay a cash dividend on its common stock of $0.48 per share on June 4, 2020 to shareholders of record as of May 21, 2020. If the macro environment disruption intensifies or is sustained, the Board of Directors may consider a change in the dividend.
- 2020 forecasted capital expenditures have been reduced to $60 million for the year
“These are challenging times and our company is doing its part to help flatten the curve in response to the COVID-19 pandemic,” said Dave Heinzmann, Littelfuse President and Chief Executive Officer. “Our first priority is our global associates – to protect the health and well-being of them, their families, and the communities where we operate, while working to preserve jobs. Our second priority is to continue to support and serve the critical needs of our customers. Our third priority is the long-term financial health of the business. Over the past several years, we have maintained a conservative financial position, which is even more important during these uncertain times. We have made structural changes over the years to strengthen our business, and along with decisive actions we have taken over the past several weeks, we expect to come out stronger on the other side of this challenge.”
2020 Outlook*:
- For the second quarter of 2020, the company expects net sales to be down approximately 20% sequentially, with an approximately 45% adjusted operating income fall through, reflecting the impact of COVID-19 on the supply chain and end demand environment
- The company is withdrawing its full year 2020 guidance issued on January 29 due to limited visibility of COVID-19 impacts
*Littelfuse provides an estimate regarding operating income on a non-GAAP basis. GAAP items excluded 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 estimate the excluded items in order to provide the most directly comparable GAAP financial measure without unreasonable efforts.
The full earnings report can be found here.
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