Resilient business model continues to deliver strong year-to-date performance

CHICAGO--(BUSINESS WIRE)--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 July 1, 2023:



  • Net sales of $612.0 million were down 1% versus the prior year period, and down 8% organically
  • GAAP diluted EPS was $2.79; adjusted diluted EPS was $3.12
  • Cash flow from operations was $98.2 million and free cash flow was $82.4 million
  • On June 28, the company entered into a purchase agreement to acquire a 200mm wafer fab from Elmos Semiconductor SE, enhancing its power semiconductor capabilities to support long-term business opportunities in high-growth industrial end markets
  • The company’s Board of Directors approved an 8% increase in the quarterly cash dividend from $0.60 to $0.65; this equates to an annualized dividend of $2.60 per share
  • On July 28, the company released its 2022 Sustainability Report on littelfuse.com/about-us/sustainability

We delivered solid results in the second quarter driven by our strong operating fundamentals, within an ongoing dynamic environment,” said Dave Heinzmann, Littelfuse President and Chief Executive Officer. “During the quarter, we secured significant new business in sustainability, connectivity, and safety applications, and continued to advance our strategic investments in high-growth end markets. Our strong overall performance to date, in 2023, reflects the resiliency of our business model. Looking ahead, our diverse technologies and capabilities, and the strength of our execution, continue to position us to deliver on our long-term growth strategy.”

Third Quarter of 2023*

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

  • Net sales in the range of $570 to $595 million, adjusted diluted EPS in the range of $2.48 to $2.72 and an adjusted effective tax rate of approximately 19.5%

*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

  • The company will pay a cash dividend on its common stock of $0.65 per share on September 7, 2023, to shareholders of record as of August 24, 2023

Conference Call and Webcast Information

Littelfuse will host a conference call on Wednesday, August 2, 2023, 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 18,000 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; the severity and duration of the COVID-19 pandemic and the measures taken in response thereto and the effects of those items on the company’s business; 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's 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 31, 2022. 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 31, 2022, 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)

 

July 1,
2023

 

December 31,
2022

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

480,743

 

$

562,588

Short-term investments

 

 

84

 

 

84

Trade receivables, less allowances of $86,968 and $83,562 at July 1, 2023 and December 31, 2022, respectively

 

 

339,637

 

 

306,578

Inventories

 

 

527,151

 

 

547,690

Prepaid income taxes and income taxes receivable

 

 

3,407

 

 

7,215

Prepaid expenses and other current assets

 

 

90,324

 

 

87,641

Total current assets

 

 

1,441,346

 

 

1,511,796

Net property, plant, and equipment

 

 

481,567

 

 

481,110

Intangible assets, net of amortization

 

 

628,333

 

 

593,970

Goodwill

 

 

1,289,188

 

 

1,186,922

Investments

 

 

25,248

 

 

24,121

Deferred income taxes

 

 

13,394

 

 

14,367

Right of use lease assets, net

 

 

56,379

 

 

57,382

Other long-term assets

 

 

40,259

 

 

34,066

Total assets

 

$

3,975,714

 

$

3,903,734

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

173,353

 

$

208,571

Accrued liabilities

 

 

143,843

 

 

187,057

Accrued income taxes

 

 

41,049

 

 

41,793

Current portion of long-term debt

 

 

137,435

 

 

134,874

Total current liabilities

 

 

495,680

 

 

572,295

Long-term debt, less current portion

 

 

864,223

 

 

866,623

Deferred income taxes

 

 

104,121

 

 

100,230

Accrued post-retirement benefits

 

 

30,038

 

 

28,037

Non-current operating lease liabilities

 

 

43,571

 

 

45,661

Other long-term liabilities

 

 

80,830

 

 

79,510

Total equity

 

 

2,357,251

 

 

2,211,378

Total liabilities and equity

 

$

3,975,714

 

$

3,903,734

LITTELFUSE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

(in thousands, except per share data)

 

July 1,
2023

 

July 2,
2022

 

July 1,
2023

 

July 2,
2022

Net sales

 

$

611,997

 

 

$

618,436

 

$

1,221,779

 

 

$

1,241,766

Cost of sales

 

 

377,165

 

 

 

355,465

 

 

741,990

 

 

 

720,199

Gross profit

 

 

234,832

 

 

 

262,971

 

 

479,789

 

 

 

521,567

 

 

 

 

 

 

 

 

 

Selling, general, and administrative expenses

 

 

94,543

 

 

 

93,093

 

 

182,853

 

 

 

168,601

Research and development expenses

 

 

24,496

 

 

 

23,488

 

 

51,786

 

 

 

43,044

Amortization of intangibles

 

 

16,885

 

 

 

11,592

 

 

33,751

 

 

 

24,316

Restructuring, impairment, and other charges

 

 

6,855

 

 

 

634

 

 

8,705

 

 

 

852

Total operating expenses

 

 

142,779

 

 

 

128,807

 

 

277,095

 

 

 

236,813

Operating income

 

 

92,053

 

 

 

134,164

 

 

202,694

 

 

 

284,754

 

 

 

 

 

 

 

 

 

Interest expense

 

 

10,056

 

 

 

4,368

 

 

19,702

 

 

 

8,670

Foreign exchange (gain) loss

 

 

(1,404

)

 

 

14,124

 

 

(3,079

)

 

 

21,860

Other (income) expense, net

 

 

(2,050

)

 

 

6,060

 

 

(8,283

)

 

 

10,487

Income before income taxes

 

 

85,451

 

 

 

109,612

 

 

194,354

 

 

 

243,737

Income taxes

 

 

15,380

 

 

 

22,596

 

 

35,538

 

 

 

39,203

Net income

 

$

70,071

 

 

$

87,016

 

$

158,816

 

 

$

204,534

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

Basic

 

$

2.82

 

 

$

3.52

 

$

6.40

 

 

$

8.28

Diluted

 

$

2.79

 

 

$

3.48

 

$

6.33

 

 

$

8.19

 

 

 

 

 

 

 

 

 

Weighted-average shares and equivalent shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

24,839

 

 

 

24,734

 

 

24,810

 

 

 

24,712

Diluted

 

 

25,095

 

 

 

24,985

 

 

25,078

 

 

 

24,986

 

 

 

 

 

 

 

 

 

Comprehensive income

 

$

55,160

 

 

$

55,667

 

$

157,188

 

 

$

170,982

LITTELFUSE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Six Months Ended

(in thousands)

 

July 1, 2023

 

July 2, 2022

OPERATING ACTIVITIES

 

 

 

 

Net income

 

$

158,816

 

 

$

204,534

 

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

 

 

83,347

 

 

 

114,659

 

Changes in operating assets and liabilities:

 

 

 

 

Trade receivables

 

 

(30,562

)

 

 

(76,807

)

Inventories

 

 

26,638

 

 

 

(70,285

)

Accounts payable

 

 

(33,796

)

 

 

9,153

 

Accrued liabilities and income taxes

 

 

(57,790

)

 

 

(23,107

)

Prepaid expenses and other assets

 

 

4,980

 

 

 

7,175

 

Net cash provided by operating activities

 

 

151,633

 

 

 

165,322

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

Acquisitions of businesses, net of cash acquired

 

 

(158,260

)

 

 

(9,758

)

Purchases of property, plant, and equipment

 

 

(41,501

)

 

 

(56,151

)

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

 

 

741

 

 

 

542

 

Net cash used in investing activities

 

 

(199,020

)

 

 

(65,367

)

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

Net payments of credit facility

 

 

(3,750

)

 

 

275,000

 

Cash dividends paid

 

 

(29,790

)

 

 

(26,201

)

All other cash provided by (used in) financing activities

 

 

854

 

 

 

(3,782

)

Net cash (used in) provided by financing activities

 

 

(32,686

)

 

 

245,017

 

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

 

 

(1,772

)

 

 

(15,511

)

(Decrease) increase in cash, cash equivalents, and restricted cash

 

 

(81,845

)

 

 

329,461

 

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

 

 

564,939

 

 

 

482,836

 

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

 

$

483,094

 

 

$

812,297

 

LITTELFUSE, INC.

NET SALES AND OPERATING INCOME BY SEGMENT

(Unaudited)

 

 

 

Second Quarter

 

Year-to-Date

(in thousands)

 

2023

 

2022

 

%
Growth /
(Decline)

 

2023

 

2022

 

%
Growth
/(Decline)

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Electronics

 

$

350,147

 

 

$

358,176

 

 

(2.2

)%

 

$

708,740

 

 

$

723,997

 

 

(2.1

)%

Transportation

 

 

172,048

 

 

 

182,027

 

 

(5.5

)%

 

 

338,689

 

 

 

366,531

 

 

(7.6

)%

Industrial

 

 

89,802

 

 

 

78,233

 

 

14.8

%

 

 

174,350

 

 

 

151,238

 

 

15.3

%

Total net sales

 

$

611,997

 

 

$

618,436

 

 

(1.0

)%

 

$

1,221,779

 

 

$

1,241,766

 

 

(1.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

 

 

 

 

 

 

Electronics

 

$

79,844

 

 

$

105,958

 

 

(24.6

)%

 

$

170,006

 

 

$

226,535

 

 

(25.0

)%

Transportation

 

 

7,789

 

 

 

18,309

 

 

(57.5

)%

 

 

16,321

 

 

 

44,617

 

 

(63.4

)%

Industrial

 

 

15,108

 

 

 

15,285

 

 

(1.2

)%

 

 

32,249

 

 

 

27,790

 

 

16.0

%

Other(a)

 

 

(10,688

)

 

 

(5,388

)

 

N.M.

 

 

(15,882

)

 

 

(14,188

)

 

N.M.

Total operating income

 

$

92,053

 

 

$

134,164

 

 

(31.4

)%

 

$

202,694

 

 

$

284,754

 

 

(28.8

)%

Operating Margin

 

 

15.0

%

 

 

21.7

%

 

 

 

 

16.6

%

 

 

22.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

10,056

 

 

 

4,368

 

 

 

 

 

19,702

 

 

 

8,670

 

 

 

Foreign exchange (gain) loss

 

 

(1,404

)

 

 

14,124

 

 

 

 

 

(3,079

)

 

 

21,860

 

 

 

Other (income) expense, net

 

 

(2,050

)

 

 

6,060

 

 

 

 

 

(8,283

)

 

 

10,487

 

 

 

Income before income taxes

 

$

85,451

 

 

$

109,612

 

 

(22.0

)%

 

$

194,354

 

 

$

243,737

 

 

(20.3

)%

(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)

 

2023

 

2022

 

%
(Decline)

 

2023

 

2022

 

%
Growth
/(Decline)

Operating Margin

 

 

 

 

 

 

 

 

 

 

 

 

Electronics

 

22.8

%

 

29.6

%

 

(6.8

)%

 

24.0

%

 

31.3

%

 

(7.3

)%

Transportation

 

4.5

%

 

10.1

%

 

(5.6

)%

 

4.8

%

 

12.2

%

 

(7.4

)%

Industrial

 

16.8

%

 

19.5

%

 

(2.7

)%

 

18.5

%

 

18.4

%

 

0.1

%

LITTELFUSE, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

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

 

Non-GAAP EPS reconciliation

 

 

 

 

 

 

 

 

 

 

Q2-23

 

Q2-22

 

YTD-23

 

YTD-22

GAAP diluted EPS

 

$

2.79

 

$

3.48

 

$

6.33

 

$

8.19

EPS impact of Non-GAAP adjustments (below)

 

 

0.33

 

 

0.78

 

 

0.42

 

 

1.06

Adjusted diluted EPS

 

$

3.12

 

$

4.26

 

$

6.75

 

$

9.25

Non-GAAP adjustments - (income) / expense

 

 

 

 

 

 

 

 

 

 

Q2-23

 

Q2-22

 

YTD-23

 

YTD-22

Acquisition-related and integration costs (a)

 

$

3.8

 

 

$

4.8

 

 

$

7.2

 

 

$

8.6

 

Purchase accounting inventory adjustments (b)

 

 

 

 

 

 

 

 

 

 

 

4.8

 

Restructuring, impairment and other charges (c)

 

 

6.9

 

 

 

0.6

 

 

 

8.7

 

 

 

0.8

 

Non-GAAP adjustments to operating income

 

 

10.7

 

 

 

5.4

 

 

 

15.9

 

 

 

14.2

 

Other income, net (d)

 

 

 

 

 

(0.5

)

 

 

(0.2

)

 

 

(0.5

)

Non-operating foreign exchange (gain) loss

 

 

(1.4

)

 

 

14.1

 

 

 

(3.1

)

 

 

21.9

 

Non-GAAP adjustments to income before income taxes

 

 

9.3

 

 

 

19.0

 

 

 

12.6

 

 

 

35.6

 

Income taxes (e)

 

 

1.0

 

 

 

(0.4

)

 

 

1.9

 

 

 

9.1

 

Non-GAAP adjustments to net income

 

$

8.3

 

 

$

19.4

 

 

$

10.7

 

 

$

26.5

 

 

 

 

 

 

 

 

 

 

Total EPS impact

 

$

0.33

 

 

$

0.78

 

 

$

0.42

 

 

$

1.06

 

Adjusted operating margin / Adjusted EBITDA reconciliation

 

 

 

 

 

 

 

 

 

 

Q2-23

 

Q2-22

 

YTD-23

 

YTD-22

Net sales

 

$

612.0

 

 

$

618.4

 

 

$

1,221.8

 

 

$

1,241.8

 

GAAP operating income

 

$

92.1

 

 

$

134.2

 

 

$

202.7

 

 

$

284.8

 

Add back non-GAAP adjustments

 

 

10.7

 

 

 

5.4

 

 

 

15.9

 

 

 

14.2

 

Adjusted operating income

 

$

102.8

 

 

$

139.6

 

 

$

218.6

 

 

$

299.0

 

Adjusted operating margin

 

 

16.8

%

 

 

22.6

%

 

 

17.9

%

 

 

24.1

%

Add back amortization

 

 

16.9

 

 

 

11.6

 

 

 

33.8

 

 

 

24.3

 

Add back depreciation

 

 

18.0

 

 

 

15.7

 

 

 

35.6

 

 

 

31.3

 

Adjusted EBITDA

 

$

137.7

 

 

$

166.9

 

 

$

288.0

 

 

$

354.6

 

Adjusted EBITDA margin

 

 

22.5

%

 

 

27.0

%

 

 

23.6

%

 

 

28.6

%

Adjusted EBITDA by Segment

 

Q2-23

 

Q2-22

 

 

Electronics

 

Transportation

 

Industrial

 

Electronics

 

Transportation

 

Industrial

GAAP operating income

 

$

79.8

 

 

$

7.8

 

 

$

15.1

 

 

$

106.0

 

 

$

18.3

 

 

$

15.3

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

Add back amortization

 

 

10.1

 

 

 

4.2

 

 

 

2.7

 

 

 

6.1

 

 

 

4.3

 

 

 

1.2

 

Add back depreciation

 

 

9.7

 

 

 

6.9

 

 

 

1.4

 

 

 

8.4

 

 

 

6.3

 

 

 

1.0

 

Adjusted EBITDA

 

$

99.6

 

 

$

18.9

 

 

$

19.2

 

 

$

120.5

 

 

$

28.9

 

 

$

17.5

 

Adjusted EBITDA Margin

 

 

28.5

%

 

 

11.0

%

 

 

21.4

%

 

 

33.6

%

 

 

15.9

%

 

 

22.3

%

Adjusted EBITDA by Segment

 

YTD-23

 

YTD-22

 

 

Electronics

 

Transportation

 

Industrial

 

Electronics

 

Transportation

 

Industrial

GAAP operating income

 

$

170.0

 

 

$

16.3

 

 

$

32.2

 

 

$

226.5

 

 

$

44.6

 

 

$

27.8

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

Add back amortization

 

 

20.3

 

 

 

8.6

 

 

 

4.9

 

 

 

12.8

 

 

 

9.0

 

 

 

2.5

 

Add back depreciation

 

 

19.5

 

 

 

13.6

 

 

 

2.5

 

 

 

17.1

 

 

 

12.3

 

 

 

1.9

 

Adjusted EBITDA

 

$

209.9

 

 

$

38.5

 

 

$

39.6

 

 

$

256.4

 

 

$

65.9

 

 

$

32.2

 

Adjusted EBITDA Margin

 

 

29.6

%

 

 

11.4

%

 

 

22.8

%

 

 

35.4

%

 

 

18.0

%

 

 

21.3

%

Net sales reconciliation

 

Q2-23 vs. Q2-22

 

 

Electronics

 

Transportation

 

Industrial

 

Total

Net sales (decline) growth

 

(2

)%

 

(5

)%

 

15

%

 

(1

)%

Less:

 

 

 

 

 

 

 

 

Acquisitions

 

11

%

 

1

%

 

6

%

 

7

%

FX impact

 

%

 

%

 

%

 

%

Organic net sales (decline) growth

 

(13

)%

 

(6

)%

 

9

%

 

(8

)%

Net sales reconciliation

 

YTD-23 vs. YTD-22

 

 

Electronics

 

Transportation

 

Industrial

 

Total

Net sales (decline) growth

 

(2

)%

 

(8

)%

 

15

%

 

(2

)%

Less:

 

 

 

 

 

 

 

 

Acquisitions

 

12

%

 

%

 

5

%

 

7

%

FX impact

 

(1

)%

 

(1

)%

 

(1

)%

 

(1

)%

Organic net sales (decline) growth

 

(13

)%

 

(7

)%

 

11

%

 

(8

)%

Income tax reconciliation

 

 

 

 

 

 

 

 

 

 

Q2-23

 

Q2-22

 

YTD-23

 

YTD-22

Income taxes

 

$

15.4

 

 

$

22.6

 

 

$

35.5

 

 

$

39.2

 

Effective rate

 

 

18.0

%

 

 

20.6

%

 

 

18.3

%

 

 

16.1

%

Non-GAAP adjustments - income taxes

 

 

1.0

 

 

 

(0.4

)

 

 

1.9

 

 

 

9.1

 

Adjusted income taxes

 

$

16.4

 

 

$

22.2

 

 

$

37.4

 

 

$

48.3

 

Adjusted effective rate

 

 

17.4

%

 

 

17.3

%

 

 

18.1

%

 

 

17.3

%

Free cash flow reconciliation

 

 

 

 

 

 

 

 

 

 

Q2-23

 

Q2-22

 

YTD-23

 

YTD-22

Net cash provided by operating activities

 

$

98.2

 

 

$

113.6

 

 

$

151.6

 

 

$

165.3

 

Less: Purchases of property, plant and equipment

 

 

(15.8

)

 

 

(26.4

)

 

 

(41.5

)

 

 

(56.2

)

Free cash flow

 

$

82.4

 

 

$

87.2

 

 

$

110.1

 

 

$

109.1

 

Consolidated Total Debt

 

As of July 1, 2023

Consolidated Total Debt

 

$

1,001.7

Unamortized debt issuance costs

 

 

4.3

Consolidated funded indebtedness

 

 

1,006.0

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

 

 

127.4

Net debt

 

$

878.6

 

 

 

Consolidated EBITDA

 

Twelve Months Ended
July 1, 2023

Net Income

 

$

327.4

Interest expense

 

 

37.2

Income taxes

 

 

66.1

Depreciation

 

 

69.3

Amortization

 

 

65.1

Non-cash additions:

 

 

Stock-based compensation expense

 

 

24.6

Purchase accounting inventory step-up charge

 

 

10.8

Unrealized loss on investments

 

 

0.8

Impairment charges

 

 

8.5

Other

 

 

19.4

Consolidated EBITDA (1)

 

$

629.2

 

 

 

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

 

1.4x

* Our Credit Agreement and Private Placement Note with maturities ranging from 2023 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 cost of sales.

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

(d) reflected YTD gain of $0.2 million from the sale of a building within the Electronics segment in the first quarter of 2023. 2022 amount included $0.5 million gain from the sale of a building within Transportation segment.

(e) reflected the tax impact associated with the non-GAAP adjustments, and 2022 amount includes the one-time net benefit of $7.2 million that resulted from the dissolution of one of the Company’s affiliates.

 


Contacts

Trisha Tuntland
Head of Investor Relations
(773) 628-2163

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