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Littelfuse Reports Fourth Quarter and Full Year Results for 2024

1. LFUS reported Q4 net sales of $530 million, down 1% YoY. 2. GAAP diluted loss per share was $1.57 due to $93 million in impairments. 3. Adjusted diluted EPS was $2.04, indicating strong core earnings despite losses. 4. Full-year 2024 sales of $2.2 billion fell 7% compared to 2023. 5. Q1 2025 guidance anticipates sales between $520-$550 million.

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LFUS
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 fourth quarter and full year ended December 28, 2024: Fourth Quarter 2024 Results Net sales of $530 million were down 1% versus the prior year period and flat organically GAAP diluted loss per share was $1.57, which includes $93m in non-cash goodwill and intangible impairment charges Adjusted diluted EPS was $2.04 Cash flow from operations was $161 million and free cash flow was $135 million Full Year 2024 Results Net sales of $2.2 billion were down 7% versus the prior year period and organically GAAP diluted EPS was $4.51 adjusted diluted EPS was $8.48 Cash flow from operations was $368 million and free cash flow was $292 million “Our fourth quarter performance, which was in-line with our expectations, reflects ongoing operational execution and our steadfast commitment to our diverse and global customer base,” said Dave Heinzmann, Littelfuse President and Chief Executive Officer. “For the full year 2024, we delivered strong cash conversion while our focused profitability enhancements drove solid second half margin expansion amid difficult end market conditions. Our continued design win momentum, meaningful content opportunities, broad end market exposures and operational improvements position us well as we expect to deliver solid earnings expansion in 2025.” First Quarter of 2025* Based on current market conditions, for the first quarter the company expects, Net sales in the range of $520 - $550 million, adjusted diluted EPS in the range of $1.70 - $1.90 and an adjusted effective tax rate of approximately 26% *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 $0.70 per share on March 6, 2025, to shareholders of record as of February 20, 2025 Conference Call and Webcast Information Littelfuse will host a conference call on Wednesday, January 29, 2025, 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, uncertainties and other factors 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 and shortages; restructuring costs in excess of expectations; pension plan asset returns less than assumed; integration of acquisitions; uncertainties related to political or regulatory changes; limited realization of the expected benefits from investment and strategic plans; 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. CONSOLIDATED BALANCE SHEETS (in thousands) December 28, 2024 December 30, 2023 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 724,924 $ 555,513 Short-term investments 976 235 Trade receivables, less allowances of $69,990 and $84,696, respectively 294,371 287,018 Inventories 429,754 474,607 Prepaid income taxes and income taxes receivable 11,749 8,701 Prepaid expenses and other current assets 105,659 82,526 Total current assets 1,567,433 1,408,600 Net property, plant, and equipment 477,068 493,153 Intangible assets, net of amortization 482,118 606,136 Goodwill 1,228,502 1,309,998 Investments 23,245 24,821 Deferred income taxes 4,899 10,486 Right of use lease assets 72,211 62,370 Other long-term assets 48,168 79,711 Total assets $ 3,903,644 $ 3,995,275 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 188,359 $ 173,535 Accrued liabilities 148,944 149,214 Accrued income taxes 29,658 38,725 Current portion of long-term debt 67,612 14,020 Total current liabilities 434,573 375,494 Long-term debt, less current portion 788,502 857,915 Deferred income taxes 95,532 110,820 Accrued post-retirement benefits 29,836 34,422 Non-current lease liabilities 60,559 49,472 Other long-term liabilities 68,217 86,671 Total equity 2,426,425 2,480,481 Total liabilities and equity $ 3,903,644 $ 3,995,275   LITTELFUSE, INC. CONSOLIDATED STATEMENTS OF NET (LOSS) INCOME (Unaudited) Three Months Ended Fiscal Year Ended (in thousands, except per share data) December 28, 2024 December 30, 2023 December 28, 2024 December 30, 2023 Net sales $ 529,505 $ 533,807 $ 2,190,768 $ 2,362,657 Cost of sales 339,186 340,226 1,389,745 1,462,416 Gross profit 190,319 193,581 801,023 900,241 Selling, general, and administrative expenses 87,694 84,598 351,089 354,655 Research and development expenses 26,490 25,159 107,773 102,429 Amortization of intangibles 14,709 16,021 62,127 65,794 Restructuring, impairment, and other charges 98,112 3,280 108,441 16,501 Total operating expenses 227,005 129,058 629,430 539,379 Operating (loss) income (36,686 ) 64,523 171,593 360,862 Interest expense 9,359 10,063 38,717 39,866 Foreign exchange (gain) loss (13,503 ) 3,602 (9,230 ) 12,299 Other income, net (2,654 ) (8,091 ) (22,570 ) (19,901 ) (Loss) income before income taxes (29,888 ) 58,949 164,676 328,598 Income taxes 9,085 16,068 51,673 69,113 Net (loss) income $ (38,973 ) $ 42,881 $ 113,003 $ 259,485 (Loss) income per share: Basic $ (1.57 ) $ 1.72 $ 4.55 $ 10.44 Diluted $ (1.57 ) $ 1.71 $ 4.51 $ 10.34 Weighted-average shares and equivalent shares outstanding: Basic 24,818 24,905 24,821 24,854 Diluted 24,818 25,111 25,039 25,102 Comprehensive (loss) income $ (134,552 ) $ 86,590 $ 22,459 $ 299,432 LITTELFUSE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended (in thousands) December 28, 2024 December 30, 2023 OPERATING ACTIVITIES Net income $ 113,003 $ 259,485 Adjustments to reconcile net income to net cash provided by operating activities 245,835 173,776 Changes in operating assets and liabilities: Trade receivables (15,347 ) 24,517 Inventories 33,662 82,471 Accounts payable 16,260 (36,277 ) Accrued liabilities and income taxes (44,200 ) (61,022 ) Prepaid expenses and other assets 18,408 14,437 Net cash provided by operating activities 367,621 457,387 INVESTING ACTIVITIES Acquisitions of businesses, net of cash acquired — (198,810 ) Purchases of property, plant, and equipment (75,877 ) (86,188 ) Net proceeds from sale of property, plant, and equipment 10,836 832 Other (741 ) (151 ) Net cash used in investing activities (65,782 ) (284,317 ) FINANCING ACTIVITIES Net payments of credit facility and senior notes (7,500 ) (128,802 ) Cash dividends paid (67,061 ) (62,161 ) Purchases of common stock (40,862 ) — All other cash provided by financing activities 2,987 5,237 Net cash used in financing activities (112,436 ) (185,726 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash (20,089 ) 4,840 Increase (decrease) in cash, cash equivalents, and restricted cash 169,314 (7,816 ) Cash, cash equivalents, and restricted cash at beginning of period 557,123 564,939 Cash, cash equivalents, and restricted cash at end of period $ 726,437 $ 557,123   LITTELFUSE, INC. NET SALES AND OPERATING INCOME BY SEGMENT (Unaudited) Fourth Quarter Year-to-Date (in thousands) 2024 2023 % (Decline) / Growth 2024 2023 % (Decline) / Growth Net sales Electronics $ 285,841 $ 297,753 (4.0 )% $ 1,186,773 $ 1,350,426 (12.1 )% Transportation 161,723 162,570 (0.5 )% 672,434 678,278 (0.9 )% Industrial 81,941 73,484 11.5 % 331,561 333,953 (0.7 )% Total net sales $ 529,505 $ 533,807 (0.8 )% $ 2,190,768 $ 2,362,657 (7.3 )% Operating (loss) income Electronics $ 35,186 $ 53,553 (34.3 )% $ 168,045 $ 300,581 (44.1 )% Transportation 14,614 7,619 91.8 % 69,539 33,634 106.8 % Industrial 13,977 9,350 49.5 % 46,031 54,800 (16.0 )% Other (a) (100,463 ) (5,999 ) N.M. (112,022 ) (28,153 ) N.M. Total operating (loss) income $ (36,686 ) $ 64,523 (156.9 )% $ 171,593 $ 360,862 (52.4 )% Operating Margin (6.9 )% 12.1 % 7.8 % 15.3 % Interest expense 9,359 10,063 38,717 39,866 Foreign exchange (gain) loss (13,503 ) 3,602 (9,230 ) 12,299 Other income, net (2,654 ) (8,091 ) (22,570 ) (19,901 ) (Loss) income before income taxes $ (29,888 ) $ 58,949 (150.7 )% $ 164,676 $ 328,598 (49.9 )%   (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   Fourth Quarter Year-to-Date (in thousands) 2024 2023 % (Decline) / Growth 2024 2023 % (Decline) / Growth Operating Margin Electronics 12.3 % 18.0 % (5.7 )% 14.2 % 22.3 % (8.1 )% Transportation 9.0 % 4.7 % 4.3 % 10.3 % 5.0 % 5.3 % Industrial 17.1 % 12.7 % 4.4 % 13.9 % 16.4 % (2.5 )%   LITTELFUSE, INC. SUPPLEMENTAL FINANCIAL INFORMATION (In millions of USD except per share amounts - unaudited) Non-GAAP EPS reconciliation Q4-24 Q4-23 YTD-24 YTD-23 GAAP diluted EPS $ (1.57 ) $ 1.71 $ 4.51 $ 10.34 EPS impact of Non-GAAP adjustments (below) 3.61 0.31 3.97 1.40 Adjusted diluted EPS $ 2.04 $ 2.02 $ 8.48 $ 11.74 Non-GAAP adjustments - (income) / expense Q4-24 Q4-23 YTD-24 YTD-23 Acquisition-related and integration costs (a) $ 2.3 $ 2.7 $ 5.1 $ 11.7 Restructuring, impairment and other charges (b) 98.1 3.3 108.4 16.5 Gain on sale of fixed assets (c) — — (1.5 ) — Non-GAAP adjustments to operating income 100.4 6.0 112.0 28.2 Other expense (income), net (d) 1.6 — 1.3 (0.2 ) Non-operating foreign exchange (gain) loss (13.5 ) 3.6 (9.2 ) 12.3 Non-GAAP adjustments to income before income taxes 88.5 9.6 104.1 40.3 Income taxes (e) (1.5 ) 1.8 4.7 5.0 Non-GAAP adjustments to net income $ 90.0 $ 7.8 $ 99.4 $ 35.3 Total EPS impact $ 3.61 $ 0.31 $ 3.97 $ 1.40 Adjusted operating margin / Adjusted EBITDA reconciliation Q4-24 Q4-23 YTD-24 YTD-23 Net (loss) income $ (39.0 ) $ 42.9 $ 113.0 $ 259.5 Add: Income taxes 9.1 16.1 51.7 69.1 Interest expense 9.4 10.1 38.7 39.9 Foreign exchange (gain) loss (13.5 ) 3.6 (9.2 ) 12.3 Other income, net (2.7 ) (8.1 ) (22.6 ) (19.9 ) GAAP operating (loss) income $ (36.7 ) $ 64.5 $ 171.6 $ 360.9 Non-GAAP adjustments to operating (loss) income 100.4 6.0 112.0 28.2 Adjusted operating income $ 63.8 $ 70.5 $ 283.6 $ 389.0 Amortization of intangibles 14.7 16.0 62.1 65.8 Depreciation expenses 17.3 18.1 68.3 71.6 Adjusted EBITDA $ 95.8 $ 104.6 $ 414.1 $ 526.4 Net sales $ 529.5 $ 533.8 $ 2,190.8 $ 2,362.7 Net (loss) income as a percentage of net sales (7.4 )% 8.0 % 5.2 % 11.0 % Operating margin (6.9 )% 12.1 % 7.8 % 15.3 % Adjusted operating margin 12.0 % 13.2 % 12.9 % 16.5 % Adjusted EBITDA margin 18.1 % 19.6 % 18.9 % 22.3 %     Adjusted EBITDA by Segment Q4-24 Q4-23 Electronics Transportation Industrial Electronics Transportation Industrial GAAP operating income $ 35.2 $ 14.6 $ 14.0 $ 53.6 $ 7.6 $ 9.4 Add: Add back amortization 9.8 3.4 1.5 9.8 3.6 2.6 Add back depreciation 10.4 5.4 1.5 10.3 6.4 1.4 Adjusted EBITDA $ 55.3 $ 23.4 $ 17.0 $ 73.7 $ 17.6 $ 13.4 Adjusted EBITDA Margin 19.3 % 14.5 % 20.8 % 24.7 % 10.8 % 18.2 % Adjusted EBITDA by Segment YTD-24 YTD-23 Electronics Transportation Industrial Electronics Transportation Industrial GAAP operating income $ 168.0 $ 69.5 $ 46.0 $ 300.6 $ 33.6 $ 54.8 Add: Add back amortization 39.4 13.5 9.2 39.9 15.8 10.1 Add back depreciation 40.4 22.1 5.8 39.5 26.7 5.4 Adjusted EBITDA $ 247.9 $ 105.2 $ 61.0 $ 379.9 $ 76.1 $ 70.4 Adjusted EBITDA Margin 20.9 % 15.6 % 18.4 % 28.1 % 11.2 % 21.1 % Net sales reconciliation Q4-24 vs. Q4-23 Electronics Transportation Industrial Total Net sales (decline) growth (4 )% (1 )% 12 % (1 )% Less: FX impact — % — % — % — % Organic net sales (decline) growth (4 )% (1 )% 12 % — % Net sales reconciliation YTD-24 vs. YTD-23 Electronics Transportation Industrial Total Net sales decline (12 )% (1 )% (1 )% (7 )% Less: FX impact — % — % — % — % Organic net sales decline (12 )% (1 )% (1 )% (7 )% Income tax reconciliation Q4-24 Q4-23 YTD-24 YTD-23 Income taxes $ 9.1 $ 16.1 $ 51.7 $ 69.1 Effective rate (30.4 )% 27.3 % 31.4 % 21.0 % Non-GAAP adjustments - income taxes (1.5 ) 1.8 4.7 5.0 Adjusted income taxes $ 7.6 $ 17.9 $ 56.4 $ 74.1 Adjusted effective rate 12.9 % 26.1 % 21.0 % 20.1 % Free cash flow reconciliation Q4-24 Q4-23 YTD-24 YTD-23 Net cash provided by operating activities $ 160.6 $ 144.2 $ 367.6 $ 457.4 Less: Purchases of property, plant and equipment (25.8 ) (23.0 ) (75.9 ) (86.2 ) Free cash flow $ 134.8 $ 121.2 $ 291.7 $ 371.2 Consolidated Total Debt As of December 28, 2024 Consolidated Total Debt $ 856.1 Unamortized debt issuance costs 2.8 Finance lease liability 0.3 Consolidated funded indebtedness $ 859.2 Cash held in U.S. (up to $400 million) 302.2 Net debt $ 557.0 Consolidated EBITDA Twelve Months Ended December 28, 2024 Net Income $ 112.8 Interest expense 38.7 Income taxes 51.7 Depreciation 68.3 Amortization 62.1 Non-cash additions: Stock-based compensation expense 26.0 Unrealized loss on investments (0.1 ) Impairment charges 93.5 Other 3.7 Consolidated EBITDA (1) $ 456.7 Consolidated Net Leverage Ratio (as defined in the Credit Agreement) * 1.2 x * 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. In the fourth quarter 2024, the Company recorded $92.6 million of non-cash impairment charges, which included $47.8 million for the impairment of intangible assets primarily related to certain acquired customer relationships, developed technology, and tradename in the Industrial controls and sensors reporting unit within the Industrial segment, and $36.1 million and $8.6 million non-cash goodwill impairment charge associated with the Industrial controls and sensors reporting unit within the Industrial segment and the Automotive sensors reporting unit within the Transportation segment, respectively. In addition, during the first quarter of 2024, the Company recognized a $0.9 million impairment related to certain machinery and equipment in the commercial vehicle business within the Transportation segment.   (c) 2024 amount reflected a gain of $0.5 million 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 included $1.8 million increase in coal mining reserves, partially offset by a reversal of $0.5 million for an asset retirement obligation charge related the disposal of a business in 2019. 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.

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