LFUS Littelfuse Inc

Operational execution drives third quarter earnings above expectations

Littelfuse, Inc. (NASDAQ: LFUS), a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world, today reported financial results for the third quarter ended September 28, 2024:

• Net sales of $567 million were down 7% versus the prior year period and organically
• GAAP diluted EPS was $2.32 and adjusted diluted EPS was $2.71
• Cash flow from operations was $80 million and free cash flow was $65 million

“In the third quarter, our global teams delivered strong execution and drove sales and earnings above our expectations,” said Dave Heinzmann, Littelfuse President and Chief Executive Officer. “While we see soft end market conditions extending into the fourth quarter, we remain focused on driving operational excellence while serving our global customer base and delivering meaningful new business wins. Our proven growth strategy, diversification efforts and strong technology capabilities position us to deliver top tier long-term stakeholder value.”

Fourth Quarter of 2024*

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

• Net sales in the range of $510 - $540 million, adjusted diluted EPS in the range of $1.90 - $2.10 and an adjusted effective tax rate of approximately 14%

*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 December 5, 2024, to shareholders of record as of November 21, 2024

Conference Call and Webcast Information

Littelfuse will host a conference call on Wednesday, October 30, 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)

 

September 28, 2024

 

December 30, 2023

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

629,670

 

$

555,513

Short-term investments

 

 

1,011

 

 

235

Trade receivables, less allowances of $76,151 and $84,696 at September 28, 2024 and December 30, 2023, respectively

 

 

338,758

 

 

287,018

Inventories

 

 

453,781

 

 

474,607

Prepaid income taxes and income taxes receivable

 

 

6,793

 

 

8,701

Prepaid expenses and other current assets

 

 

132,510

 

 

82,526

Total current assets

 

 

1,562,523

 

 

1,408,600

Net property, plant, and equipment

 

 

481,592

 

 

493,153

Intangible assets, net of amortization

 

 

560,994

 

 

606,136

Goodwill

 

 

1,317,748

 

 

1,309,998

Investments

 

 

26,607

 

 

24,821

Deferred income taxes

 

 

11,955

 

 

10,486

Right of use lease assets

 

 

60,277

 

 

62,370

Other long-term assets

 

 

40,548

 

 

79,711

Total assets

 

$

4,062,244

 

$

3,995,275

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

179,486

 

$

173,535

Accrued liabilities

 

 

152,772

 

 

149,214

Accrued income taxes

 

 

39,809

 

 

38,725

Current portion of long-term debt

 

 

67,799

 

 

14,020

Total current liabilities

 

 

439,866

 

 

375,494

Long-term debt, less current portion

 

 

799,949

 

 

857,915

Deferred income taxes

 

 

95,554

 

 

110,820

Accrued post-retirement benefits

 

 

31,373

 

 

34,422

Non-current lease liabilities

 

 

52,074

 

 

49,472

Other long-term liabilities

 

 

70,328

 

 

86,671

Total equity

 

 

2,573,100

 

 

2,480,481

Total liabilities and equity

 

$

4,062,244

 

$

3,995,275

LITTELFUSE, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME

 

(Unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

(in thousands, except per share data)

 

September 28, 2024

 

September 30, 2023

 

September 28, 2024

 

September 30, 2023

Net sales

 

$

567,390

 

 

$

607,071

 

 

$

1,661,263

 

 

$

1,828,850

 

Cost of sales

 

 

351,498

 

 

 

380,200

 

 

 

1,050,559

 

 

 

1,122,190

 

Gross profit

 

 

215,892

 

 

 

226,871

 

 

 

610,704

 

 

 

706,660

 

 

 

 

 

 

 

 

 

 

Selling, general, and administrative expenses

 

 

83,897

 

 

 

87,204

 

 

 

263,395

 

 

 

270,057

 

Research and development expenses

 

 

26,470

 

 

 

25,484

 

 

 

81,283

 

 

 

77,270

 

Amortization of intangibles

 

 

15,864

 

 

 

16,022

 

 

 

47,418

 

 

 

49,773

 

Restructuring, impairment, and other charges

 

 

1,840

 

 

 

4,516

 

 

 

10,329

 

 

 

13,221

 

Total operating expenses

 

 

128,071

 

 

 

133,226

 

 

 

402,425

 

 

 

410,321

 

Operating income

 

 

87,821

 

 

 

93,645

 

 

 

208,279

 

 

 

296,339

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

9,772

 

 

 

10,101

 

 

 

29,358

 

 

 

29,803

 

Foreign exchange loss

 

 

9,630

 

 

 

11,776

 

 

 

4,273

 

 

 

8,697

 

Other income, net

 

 

(9,297

)

 

 

(3,527

)

 

 

(19,916

)

 

 

(11,810

)

Income before income taxes

 

 

77,716

 

 

 

75,295

 

 

 

194,564

 

 

 

269,649

 

Income taxes

 

 

19,658

 

 

 

17,507

 

 

 

42,588

 

 

 

53,045

 

Net income

 

$

58,058

 

 

$

57,788

 

 

$

151,976

 

 

$

216,604

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

Basic

 

$

2.34

 

 

$

2.32

 

 

$

6.12

 

 

$

8.72

 

Diluted

 

$

2.32

 

 

$

2.30

 

 

$

6.07

 

 

$

8.63

 

 

 

 

 

 

 

 

 

 

Weighted-average shares and equivalent shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

24,796

 

 

 

24,893

 

 

 

24,822

 

 

 

24,838

 

Diluted

 

 

25,025

 

 

 

25,143

 

 

 

25,040

 

 

 

25,100

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

$

114,451

 

 

$

55,654

 

 

$

157,011

 

 

$

212,842

 

LITTELFUSE, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(Unaudited)

 

 

 

Nine Months Ended

(in thousands)

 

September 28, 2024

 

September 30, 2023

OPERATING ACTIVITIES

 

 

 

 

Net income

 

$

151,976

 

 

$

216,604

 

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

 

 

101,437

 

 

 

137,988

 

Changes in operating assets and liabilities:

 

 

 

 

Trade receivables

 

 

(50,672

)

 

 

(21,752

)

Inventories

 

 

19,865

 

 

 

66,456

 

Accounts payable

 

 

5,460

 

 

 

(38,475

)

Accrued liabilities and income taxes

 

 

(19,434

)

 

 

(61,359

)

Prepaid expenses and other assets

 

 

(1,633

)

 

 

13,678

 

Net cash provided by operating activities

 

 

206,999

 

 

 

313,140

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

Acquisitions of businesses, net of cash acquired

 

 

—

 

 

 

(198,810

)

Purchases of property, plant, and equipment

 

 

(50,065

)

 

 

(63,166

)

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

 

 

8,931

 

 

 

597

 

Net cash used in investing activities

 

 

(41,134

)

 

 

(261,379

)

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

Net payments of credit facility

 

 

(3,750

)

 

 

(5,625

)

Repurchases of common stock

 

 

(40,862

)

 

 

—

 

Cash dividends paid

 

 

(49,687

)

 

 

(45,973

)

All other cash provided by financing activities

 

 

3,000

 

 

 

4,454

 

Net cash used in financing activities

 

 

(91,299

)

 

 

(47,144

)

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

 

 

(396

)

 

 

(7,965

)

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

 

 

74,170

 

 

 

(3,348

)

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

 

 

557,123

 

 

 

564,939

 

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

 

$

631,293

 

 

$

561,591

 

LITTELFUSE, INC.

 

NET SALES AND OPERATING INCOME BY SEGMENT

 

(Unaudited)

 

 

 

Third Quarter

 

Year-to-Date

(in thousands)

 

 

2024

 

 

 

2023

 

 

% (Decline) / Growth

 

 

2024

 

 

 

2023

 

 

% (Decline) / Growth

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Electronics

 

$

304,188

 

 

$

343,933

 

 

(11.6

)%

 

$

900,932

 

 

$

1,052,673

 

 

(14.4

)%

Transportation

 

 

171,381

 

 

 

177,019

 

 

(3.2

)%

 

 

510,711

 

 

 

515,708

 

 

(1.0

)%

Industrial

 

 

91,821

 

 

 

86,119

 

 

6.6

%

 

 

249,620

 

 

 

260,469

 

 

(4.2

)%

Total net sales

 

$

567,390

 

 

$

607,071

 

 

(6.5

)%

 

$

1,661,263

 

 

$

1,828,850

 

 

(9.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

 

 

 

 

 

 

Electronics

 

$

48,891

 

 

$

77,022

 

 

(36.5

)%

 

$

132,859

 

 

$

247,028

 

 

(46.2

)%

Transportation

 

 

23,485

 

 

 

9,694

 

 

142.3

%

 

 

54,925

 

 

 

26,015

 

 

111.1

%

Industrial

 

 

17,711

 

 

 

13,201

 

 

34.2

%

 

 

32,054

 

 

 

45,450

 

 

(29.5

)%

Other(a)

 

 

(2,266

)

 

 

(6,272

)

 

N.M.

 

 

(11,559

)

 

 

(22,154

)

 

N.M.

Total operating income

 

$

87,821

 

 

$

93,645

 

 

(6.2

)%

 

$

208,279

 

 

$

296,339

 

 

(29.7

)%

Operating Margin

 

 

15.5

%

 

 

15.4

%

 

 

 

 

12.5

%

 

 

16.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

9,772

 

 

 

10,101

 

 

 

 

 

29,358

 

 

 

29,803

 

 

 

Foreign exchange loss

 

 

9,630

 

 

 

11,776

 

 

 

 

 

4,273

 

 

 

8,697

 

 

 

Other income, net

 

 

(9,297

)

 

 

(3,527

)

 

 

 

 

(19,916

)

 

 

(11,810

)

 

 

Income before income taxes

 

$

77,716

 

 

$

75,295

 

 

3.2

%

 

$

194,564

 

 

$

269,649

 

 

(27.8

)%

 

(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

 

 

Third Quarter

 

Year-to-Date

(in thousands)

 

2024

 

2023

 

% (Decline) / Growth

 

2024

 

2023

 

% (Decline) / Growth

Operating Margin

 

 

 

 

 

 

 

 

 

 

 

 

Electronics

 

16.1

%

 

22.4

%

 

(6.3

)%

 

14.7

%

 

23.5

%

 

(8.8

)%

Transportation

 

13.7

%

 

5.5

%

 

8.2

%

 

10.8

%

 

5.0

%

 

5.8

%

Industrial

 

19.3

%

 

15.3

%

 

4.0

%

 

12.8

%

 

17.4

%

 

(4.6

)%

LITTELFUSE, INC.

 

SUPPLEMENTAL FINANCIAL INFORMATION

 

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

 

Non-GAAP EPS reconciliation

 

 

 

 

 

 

 

 

 

 

Q3-24

 

Q3-23

 

YTD-24

 

YTD-23

GAAP diluted EPS

 

$

2.32

 

$

2.30

 

$

6.07

 

$

8.63

EPS impact of Non-GAAP adjustments (below)

 

 

0.39

 

 

0.67

 

 

0.37

 

 

1.09

Adjusted diluted EPS

 

$

2.71

 

$

2.97

 

$

6.44

 

$

9.72

Non-GAAP adjustments - (income) / expense

 

 

 

 

 

 

 

 

 

 

Q3-24

 

Q3-23

 

YTD-24

 

YTD-23

Acquisition-related and integration costs (a)

 

$

1.0

 

 

$

1.8

 

$

2.8

 

 

$

9.0

 

Restructuring, impairment and other charges (b)

 

 

1.8

 

 

 

4.5

 

 

10.3

 

 

 

13.2

 

Gain on sale of fixed assets (c)

 

 

(0.5

)

 

 

—

 

 

(1.5

)

 

 

—

 

Non-GAAP adjustments to operating income

 

 

2.3

 

 

 

6.3

 

 

11.6

 

 

 

22.2

 

Other income, net (d)

 

 

—

 

 

 

—

 

 

(0.3

)

 

 

(0.2

)

Non-operating foreign exchange loss

 

 

9.6

 

 

 

11.8

 

 

4.3

 

 

 

8.7

 

Non-GAAP adjustments to income before income taxes

 

 

11.9

 

 

 

18.1

 

 

15.6

 

 

 

30.7

 

Income taxes (e)

 

 

2.1

 

 

 

1.2

 

 

6.2

 

 

 

3.2

 

Non-GAAP adjustments to net income

 

$

9.8

 

 

$

16.9

 

$

9.4

 

 

$

27.5

 

 

 

 

 

 

 

 

 

 

Total EPS impact

 

$

0.39

 

 

$

0.67

 

$

0.37

 

 

$

1.09

 

Adjusted operating margin / Adjusted EBITDA reconciliation

 

 

 

 

 

 

 

 

 

 

Q3-24

 

Q3-23

 

YTD-24

 

YTD-23

Net income

 

$

58.1

 

 

$

57.8

 

 

$

152.0

 

 

$

216.6

 

Add:

 

 

 

 

 

 

 

 

Income taxes

 

 

19.7

 

 

 

17.5

 

 

 

42.6

 

 

 

53.0

 

Interest expense

 

 

9.8

 

 

 

10.1

 

 

 

29.4

 

 

 

29.8

 

Foreign exchange loss

 

 

9.6

 

 

 

11.8

 

 

 

4.3

 

 

 

8.7

 

Other income, net

 

 

(9.3

)

 

 

(3.5

)

 

 

(19.9

)

 

 

(11.8

)

GAAP operating income

 

$

87.8

 

 

$

93.6

 

 

$

208.3

 

 

$

296.3

 

Non-GAAP adjustments to operating income

 

 

2.3

 

 

 

6.3

 

 

 

11.6

 

 

 

22.2

 

Adjusted operating income

 

$

90.1

 

 

$

99.9

 

 

$

219.9

 

 

$

318.5

 

Amortization of intangibles

 

 

15.9

 

 

 

16.0

 

 

 

47.4

 

 

 

49.8

 

Depreciation expense

 

 

17.3

 

 

 

17.9

 

 

 

51.0

 

 

 

53.5

 

Adjusted EBITDA

 

$

123.3

 

 

$

133.8

 

 

$

318.3

 

 

$

421.8

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

567.4

 

 

$

607.1

 

 

$

1,661.3

 

 

$

1,828.9

 

Net income as a percentage of net sales

 

 

10.2

%

 

 

9.5

%

 

 

9.1

%

 

 

11.8

%

Operating margin

 

 

15.5

%

 

 

15.4

%

 

 

12.5

%

 

 

16.2

%

Adjusted operating margin

 

 

15.9

%

 

 

16.5

%

 

 

13.2

%

 

 

17.4

%

Adjusted EBITDA margin

 

 

21.7

%

 

 

22.0

%

 

 

19.2

%

 

 

23.1

%

Adjusted EBITDA by Segment

 

Q3-24

 

Q3-23

 

 

Electronics

 

Transportation

 

Industrial

 

Electronics

 

Transportation

 

Industrial

GAAP operating income

 

$

48.9

 

 

$

23.5

 

 

$

17.7

 

 

$

77.0

 

 

$

9.7

 

 

$

13.2

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

Add back amortization

 

 

9.9

 

 

 

3.4

 

 

 

2.6

 

 

 

9.8

 

 

 

3.6

 

 

 

2.6

 

Add back depreciation

 

 

10.1

 

 

 

5.7

 

 

 

1.5

 

 

 

9.8

 

 

 

6.6

 

 

 

1.5

 

Adjusted EBITDA

 

$

68.9

 

 

$

32.6

 

 

$

21.8

 

 

$

96.6

 

 

$

19.9

 

 

$

17.3

 

Adjusted EBITDA Margin

 

 

22.6

%

 

 

19.0

%

 

 

23.8

%

 

 

28.1

%

 

 

11.2

%

 

 

20.1

%

Adjusted EBITDA by Segment

 

YTD-24

 

YTD-23

 

 

Electronics

 

Transportation

 

Industrial

 

Electronics

 

Transportation

 

Industrial

GAAP operating income

 

$

132.9

 

 

$

54.9

 

 

$

32.1

 

 

$

247.0

 

 

$

26.0

 

 

$

45.5

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

Add back amortization

 

 

29.6

 

 

 

10.1

 

 

 

7.7

 

 

 

30.1

 

 

 

12.2

 

 

 

7.5

 

Add back depreciation

 

 

30.1

 

 

 

16.7

 

 

 

4.2

 

 

 

29.1

 

 

 

20.4

 

 

 

4.0

 

Adjusted EBITDA

 

$

192.5

 

 

$

81.8

 

 

$

44.0

 

 

$

306.2

 

 

$

58.6

 

 

$

57.0

 

Adjusted EBITDA Margin

 

 

21.4

%

 

 

16.0

%

 

 

17.6

%

 

 

29.1

%

 

 

11.4

%

 

 

21.9

%

Net sales reconciliation

 

Q3-24 vs. Q3-23

 

 

Electronics

 

Transportation

 

Industrial

 

Total

Net sales (decline) growth

 

(12

)%

 

(3

)%

 

7

%

 

(7

)%

Less:

 

 

 

 

 

 

 

 

Acquisitions

 

—

%

 

—

%

 

—

%

 

—

%

FX impact

 

—

%

 

—

%

 

—

%

 

—

%

Organic net sales (decline) growth

 

(12

)%

 

(3

)%

 

7

%

 

(7

)%

Net sales reconciliation

 

YTD-24 vs. YTD-23

 

 

Electronics

 

Transportation

 

Industrial

 

Total

Net sales decline

 

(14

)%

 

(1

)%

 

(4

)%

 

(9

)%

Less:

 

 

 

 

 

 

 

 

Acquisitions

 

—

%

 

—

%

 

—

%

 

—

%

FX impact

 

—

%

 

—

%

 

—

%

 

—

%

Organic net sales decline

 

(14

)%

 

(1

)%

 

(4

)%

 

(9

)%

Income tax reconciliation

 

 

 

 

 

 

 

 

 

 

Q3-24

 

Q3-23

 

YTD-24

 

YTD-23

Income taxes

 

$

19.7

 

 

$

17.5

 

 

$

42.6

 

 

$

53.0

 

Effective rate

 

 

25.3

%

 

 

23.3

%

 

 

21.9

%

 

 

19.7

%

Non-GAAP adjustments - income taxes

 

 

2.1

 

 

 

1.2

 

 

 

6.2

 

 

 

3.2

 

Adjusted income taxes

 

$

21.8

 

 

$

18.7

 

 

$

48.8

 

 

$

56.2

 

Adjusted effective rate

 

 

24.3

%

 

 

20.0

%

 

 

23.2

%

 

 

18.7

%

Free cash flow reconciliation

 

 

 

 

 

 

 

 

 

 

Q3-24

 

Q3-23

 

YTD-24

 

YTD-23

Net cash provided by operating activities

 

$

80.4

 

 

$

161.5

 

 

$

207.0

 

 

$

313.1

 

Less: Purchases of property, plant and equipment

 

 

(15.4

)

 

 

(21.7

)

 

 

(50.1

)

 

 

(63.2

)

Free cash flow

 

$

65.0

 

 

$

139.8

 

 

$

156.9

 

 

$

250.0

 

Consolidated Total Debt

 

As of September 28, 2024

Consolidated Total Debt

 

$

867.7

 

Unamortized debt issuance costs

 

 

3.0

 

Finance lease liability

 

 

0.4

 

Consolidated funded indebtedness

 

 

871.1

 

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

 

 

135.5

 

Net debt

 

$

735.6

 

 

 

 

Consolidated EBITDA

 

Twelve Months Ended September 28, 2024

Net Income

 

$

194.8

 

Interest expense

 

 

39.4

 

Income taxes

 

 

58.7

 

Depreciation

 

 

69.1

 

Amortization

 

 

63.4

 

Non-cash additions:

 

 

Stock-based compensation expense

 

 

25.2

 

Purchase accounting inventory step-up charge

 

 

—

 

Unrealized loss on investments

 

 

(2.6

)

Impairment charges

 

 

1.0

 

Other

 

 

(0.2

)

Consolidated EBITDA (1)

 

$

448.8

 

 

 

 

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 $0.5 million ($1.5 million year-to-date) recorded for the sale of a land use right within the Electronics segment and a gain of $1.0 million for the sale of two buildings within the Transportation segment. (d) 2024 year-to-date also included a reversal of $0.5 million for an asset retirement obligation charge related the disposal of a business in 2019 and $0.2 million increase in coal mining reserves. 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/20241029085384/en/

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