Market Overview

Littelfuse Reports First Quarter Results for 2019

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Company performance in line with guidance

Littelfuse,
Inc.
(NASDAQ:LFUS), a global manufacturer of leading technologies
in circuit protection, power control and sensing, today reported
financial results for the first quarter ended March 30, 2019:

  • Net sales of $405.5 million were in line with guidance, down 3% versus
    the prior year period, and down 4% organically
  • Growth by segment versus the prior year period:
    • Electronics sales were flat (down 4% organically)
    • Automotive sales decreased 10% (down 7% organically)
    • Industrial sales decreased 2% (up 4% organically)
  • GAAP diluted EPS was $1.48
  • Adjusted diluted EPS of $1.96 was above the midpoint of guidance. As
    expected, EPS was unfavorably impacted by currency headwinds as well
    as lower volumes and associated leverage versus the prior year
  • GAAP effective tax rate was 20.3% and the adjusted effective tax rate
    was 19.7%
  • Cash flow from operations was $30.9 million and free cash flow was
    $16.8 million
  • During the first quarter, the company repurchased 79,916 shares of
    common stock under its share repurchase authorization

"We delivered a solid first quarter in line with our sales and adjusted
EPS guidance," said Dave Heinzmann, Littelfuse Chief Executive Officer.
"Our teams remain focused on executing our long-term strategy while
containing costs within this current environment. We continue to see
good design win activity driven by the strong fundamentals of our
business, and the content opportunities driven by a safer, greener and
increasingly connected world. During the quarter, we initiated
additional footprint and product line rationalizations. While we
anticipate soft demand to persist, we continue to expect improving
conditions in the second half of the year. We remain confident we will
deliver exceptional value for our shareholders by executing on our
five-year growth strategy."

For the second quarter of 2019*:

  • Net sales are expected to be in the range of $409 to $421 million
  • Adjusted diluted EPS is expected to be in the range of $2.00 to $2.14.
    This includes an estimated 25 cent decline versus the prior year, due
    to unfavorable foreign exchange impacts and mark-to-market
    comparisons, as well as timing of stock compensation expense
  • Adjusted effective tax rate is expected to be in the range of 18% - 19%

*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 $0.43 per
    share on June 6, 2019 to shareholders of record as of May 23, 2019
  • The company's previous share repurchase authorization expired on April
    30, 2019 and has been replaced with a new one million share repurchase
    authorization effective through April 30, 2020

Conference Call and Webcast Information

Littelfuse will host a conference call today, Wednesday, May 1, 2019, at
9:00 a.m. Central Time to discuss the results. The call will be
broadcast live and available for replay at Littelfuse.com.

About Littelfuse

Littelfuse (NASDAQ:LFUS) is a global manufacturer of leading
technologies in circuit protection, power control and sensing. Sold in
over 150 countries, our products are found in automotive and commercial
vehicles, industrial applications, data and telecommunications, medical
devices, consumer electronics and appliances. Our 12,000 worldwide
associates partner with customers to design, manufacture and deliver
innovative, high-quality solutions, for a safer, greener and
increasingly connected world - 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 PSLRA. These statements may involve risks
and uncertainties, including, but not limited to, risks relating to
product demand and market acceptance; economic conditions; the impact of
competitive products and pricing; product quality problems or product
recalls; capacity and supply difficulties or constraints; coal mining
exposures reserves; failure of an indemnification for environmental
liability; exchange rate fluctuations; commodity price fluctuations; the
effect of Littelfuse, Inc.'s ("Littelfuse" or the "Company") 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 29, 2018. For a further discussion of the risk
factors of the company, please see Item 1A. "Risk Factors" to the
company's Annual Report on Form 10-K for the year ended December 29,
2018.

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, free
cash flow, and adjusted leverage. 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.

LFUS-F

   
LITTELFUSE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(Unaudited)
(in thousands) March 30,
2019
December 29,
2018
ASSETS
Current assets:
Cash and cash equivalents $ 476,614 $ 489,733
Short-term investments 33 34
Trade receivables, less allowances of $33,140 and $36,038 at March
30, 2019 and December 29, 2018, respectively
237,878 232,892
Inventories 261,659 258,228
Prepaid income taxes and income taxes receivable 758 2,339
Prepaid expenses and other current assets 53,203   49,291
Total current assets 1,030,145 1,032,517
Net property, plant, and equipment 342,334 339,894
Intangible assets, net of amortization 350,421 361,474
Goodwill 825,467 826,715
Investments 24,640 25,405
Deferred income taxes 8,461 7,330
Right of use lease assets, net 24,725
Other assets 18,825   20,971
Total assets $ 2,625,018   $ 2,614,306
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 129,092 $ 126,323
Accrued liabilities 107,214 138,405
Accrued income taxes 23,244 20,547
Current portion of long-term debt 10,000   10,000
Total current liabilities 269,550 295,275
Long-term debt, less current portion 676,510 684,730
Deferred income taxes
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