Littelfuse Reports Fourth Quarter and Full Year Results

  Littelfuse Reports Fourth Quarter and Full Year Results

Business Wire

CHICAGO -- February 5, 2013

Littelfuse, Inc. (NASDAQ:LFUS) today reported sales and earnings for the
fourth quarter and full year of 2012.

Fourth Quarter Highlights

  *Sales were $158.8 million for the fourth quarter of 2012, an 8% increase
    compared to the fourth quarter of 2011.
  *Diluted earnings per share for the fourth quarter of 2012 were $0.44
    compared to $0.70 in the fourth quarter of 2011. The fourth quarter of
    2012 included $13.0 million of special items (approximately $0.37 per
    share) comprised primarily of pension-accounting charges related to
    settlement of the pension liabilities for certain former employees and
    impairment charges related to the Shocking Technologies investment. (See
    page 5, footnote 1 for details).
  *The Shocking Technologies impairment resulted from the company’s judgment
    that it will take longer than originally assumed for this start-up company
    to reach breakeven sales levels.
  *Sales and order trends by business unit were as follows:

       *Electronics sales increased 4% year over year, but declined 14%
         sequentially, due primarily to weakness in key end markets in
         addition to normal seasonal trends.
       *Automotive sales increased 10% year over year as the addition of
         Accel ($4.8 million of sales in the fourth quarter) and 3% growth in
         the passenger vehicle business more than offset a 7% decline in
         commercial vehicle sales. Lower commercial vehicle sales reflected
         weakness in the construction and heavy truck markets.
       *Electrical sales increased 15% year over year due to continued strong
         growth in custom products and solid performance for power fuses.
       *The electronics book-to-bill ratio for the fourth quarter was 0.98
         but is running significantly above 1.0 for the first quarter of 2013.

  *Cash provided by operating activities was $40.1 million for the fourth
    quarter of 2012, which included a $5 million voluntary pension
    contribution. Capital expenditures increased to $9.7 million for the
    fourth quarter as a result of spending on major facility expansion
    projects.

Full Year Highlights

  *Sales were $667.9 million for 2012 compared to $665.0 million for 2011.
    Excluding approximately $16 million of incremental sales from acquisitions
    and approximately $9 million of unfavorable currency effects, sales
    declined less than 1% year over year as strong growth in the electrical
    business was more than offset by lower electronics sales reflecting
    weakness in the telecom and PC end markets in addition to channel
    inventory destocking.
  *Diluted earnings per share for 2012 were $3.40 compared to $3.90 in 2011.
    The decline in diluted earnings per share in 2012 was primarily due to the
    $0.37 of special charges booked in the fourth quarter of 2012.
  *Cash provided by operating activities was $116.2 million for 2012 compared
    to $120.8 million in 2011. Cash provided by operating activities in 2012
    was reduced by $10.0 million of voluntary pension contributions.
  *Capital expenditures were $22.5 million in 2012 compared to $17.6 million
    in 2011. Capital expenditures net of asset disposals were $18.9 million in
    2012 and $17.3 million in 2011.

“The fourth quarter came in consistent with our guidance with weak electronics
sales, solid automotive performance and continued strong growth in
electrical,” said Gordon Hunter, Chief Executive Officer. “It was a
challenging second half of the year with the overall weakness in Europe, soft
global electronics markets and declining commercial vehicle demand. Despite
these challenges we finished 2012 with our second-best performance ever for
operating income and record free cash flow (after excluding pension
contributions).”

“While the first quarter of 2013 will be challenging as well, we are
encouraged by the recent uptick in orders in our electronics and commercial
vehicle businesses. If these trends continue, this should lead to improved
performance beginning in the second quarter,” added Hunter.

“We are active on the M&A front and the pipeline is strong,” said Phil
Franklin, Chief Financial Officer. “After another outstanding year of cash
flow performance, we now have a net cash balance of $151 million. We will be
looking to use substantial portions of this cash to fund acquisitions in
2013.”

Outlook

  *Sales for the first quarter of 2013 are expected to be in the range of
    $158 to $168 million.
  *Earnings for the first quarter of 2013 are expected to be in the range of
    $0.75 to $0.88 per diluted share.

Dividend

The company will pay a cash dividend of $0.20 per common share on March 7,
2013 to shareholders of record at the close of business on February 20, 2013.

Conference Call Webcast Information

Littelfuse will host a conference call today, Tuesday, February 5, 2013 at
11:00 a.m. Eastern/10:00 a.m. Central time to discuss the fourth quarter
results. The call will be broadcast live over the Internet and can be accessed
through the company’s website: www.littelfuse.com. Listeners should go to the
website at least 15 minutes prior to the call to download and install any
necessary audio software. The call will be available for replay through March
31, 2013 and can be accessed through the website listed above.

About Littelfuse

Founded in 1927, Littelfuse, Inc., the worldwide leader in circuit protection,
offers the industry’s broadest and deepest portfolio of circuit protection
products and solutions. Littelfuse devices protect products in virtually every
market that uses electrical energy, from consumer electronics to automobiles
to industrial equipment. In addition to its Chicago, Illinois, world
headquarters, Littelfuse has more than 30 sales, distribution, manufacturing
and engineering facilities in the Americas, Europe and Asia. Technologies
offered by Littelfuse include Fuses; Gas Discharge Tubes (GDTs); Positive
Temperature Coefficient Devices (PTCs); PulseGuard^® ESD Suppressors;
SIDACtor^® Devices; Silicon Protection Arrays (SPA^®); Switching Thyristors;
TVS Diodes and Varistors. The company also offers a comprehensive line of
highly reliable Electromechanical and Electronic Switch and Control Devices
for commercial and specialty vehicles and Sensors for automobile safety
systems, as well as Protection Relays and underground Power Distribution
Centers for the safe control and distribution of electricity.

For more information, please visit the Littelfuse website: 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 the company’s accounting policies,
labor disputes, restructuring costs in excess of expectations, pension plan
asset returns less than assumed, integration of acquisitions and other risks
which may be detailed in the company’s other 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 report 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, 2012. 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, 2012.

LFUS-F

                                                                         
LITTELFUSE, INC.
Net Sales and Operating Income by Business Unit
(In thousands of USD, unaudited)
                                                                                 
                                                                                 
                                                                                 
                Fourth Quarter                       Year-to-Date
                2012          2011          %        2012          2011          %
                                            Change                               Change
                                                                                 
Net Sales
Electronics     $ 75,124      $ 72,454      4   %    $ 329,466     $ 354,487     (7  %)
Automotive        50,268        45,629      10  %      206,222       197,586     4   %
Electrical       33,402      29,110     15  %     132,225     112,882    17  %
                                                                                 
Total net       $ 158,794    $ 147,193    8   %    $ 667,913    $ 664,955    0   %
sales
                                                                                 
                                                                                 
                Fourth Quarter                       Year-to-Date
                2012          2011          %        2012          2011          %
                                            Change                               Change
                                                                                 
Operating
Income
Electronics     $ 8,348       $ 6,008       39  %    $ 51,422      $ 62,982      (18 %)
Automotive        6,328         5,421       17  %      29,817        30,002      (1  %)
Electrical        8,999         7,435       21  %      32,794        28,902      13  %
Other^(1)        (5,656  )    (743    )   661 %     (7,163  )    (7,982  )   (10 %)
                                                                                 
Total
operating       $ 18,019      $ 18,121      (1  %)   $ 106,870     $ 113,904     (6  %)
income
                                                                                 
Interest          403           420                    1,701         1,691
expense
Investment
impairment        7,334         -                      7,334         -
^(1)
Other
(income)         (1,045  )    (954    )             (2,217  )    (2,888  )
expense,
net
                                                                                 
Income
before          $ 11,327     $ 18,655     (39 %)   $ 100,052    $ 115,101    (13 %)
taxes
                                                                                 
                                                                                 
(1) “Other” typically includes special items such as acquisition-related costs,
restructuring costs and asset impairments. “Other” for the fourth quarter of 2012
included (all in operating expense):
• Acquisition- related fees ($0.3 million)
• Pension valuation adjustments ($0.3 million)
• Charges related to settlement of the pension liabilities for certain former employees
($5.1 million)
In the fourth quarter of 2012 there were also special items below the operating income
line. These items all related to Shocking Technologies and included both impairment and
equity losses totaling $7.3 million. The carrying value of the Shocking Technologies
investment at December 29, 2012 represents the company's best estimate of the value of
its investment as of the balance sheet date. Shocking is currently seeking additional
funding, and if these fund-raising efforts are not successful, further impairment of
this investment may occur.



Total special items for the fourth quarter of 2012 were $13.0 million. Including tax
effects, these items reduced earnings per share by approximately $0.37 cents per share.

                                                          
LITTELFUSE, INC.
Condensed Consolidated Balance Sheets
(In thousands of USD, except share amounts)
                                                             
                                         December 29, 2012   December 31, 2011
                                         (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents                $   235,404         $   164,016
Short-term investments                       -                   13,997
Accounts receivable, less allowances         100,559             92,088
Inventories                                  75,580              75,575
Deferred income taxes                        11,890              11,895
Prepaid expenses and other current           16,532              14,219
assets
Assets held for sale                        5,500             6,592      
Total current assets                         445,465             378,382
Property, plant and equipment:
Land                                         6,243               4,888
Buildings                                    54,559              52,730
Equipment                                   304,954           281,521    
                                             365,756             339,139
Accumulated depreciation                    (244,845   )       (220,255   )
Net property, plant and equipment            120,911             118,884
Intangible assets, net of
amortization:
Patents, licenses and software               11,144              10,753
Distribution network                         18,964              19,307
Customer lists, trademarks and               18,704              14,523
tradenames
Goodwill                                    133,592           115,697    
                                             182,404             160,280
Investment in unconsolidated entity          8,666               6,000
Other investment                             10,327              8,867
Deferred income taxes                        8,090               4,191
Other assets                                1,865             1,820      
Total assets                             $   777,728        $   678,424    
                                                             
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable                         $   27,226          $   19,934
Accrued payroll                              20,540              23,048
Accrued expenses                             11,062              8,861
Accrued severance                            1,033               1,843
Accrued income taxes                         11,559              10,591
Current portion of long-term debt           84,000            85,000     
Total current liabilities                    155,420             149,277
Accrued post-retirement benefits             22,338              15,292
Other long-term liabilities                  12,412              12,752
Total equity                                587,558           501,103    
Total liabilities and equity             $   777,728        $   678,424    
                                                             
Common shares issued and outstanding
of 22,029,446 and 21,552,529 at
December 29, 2012 and December 31,
2011, respectively.

                                                              
LITTELFUSE, INC.
Consolidated Statements of Comprehensive Income
(In thousands of USD, except per share data, unaudited)
                                                                   
                                                                   
                  For the Three Months Ended        For the Twelve Months
                                                    Ended
                                                                   
                  December 29,     December 31,     December 29,   December
                  2012             2011             2012           31, 2011
                                                                   
Net sales         $  158,794       $  147,193       $  667,913     $ 664,955
                                                                   
Cost of sales       99,387         93,667         409,446     408,261 
                                                                   
Gross profit         59,407           53,526           258,467       256,694
                                                                   
Selling,
general and          34,078           28,889           124,277       116,740
administrative
expenses
Research and
development          5,678            4,685            21,231        19,439
expenses
Amortization of     1,632          1,831          6,089       6,611   
intangibles
                     41,388           35,405           151,597       142,790
                                                                   
Operating            18,019           18,121           106,870       113,904
income
                                                                   
                                                                   
Interest             403              420              1,701         1,691
expense
Impairment and
equity loss in       7,334            -                7,334         -
unconsolidated
affiliate
Other (income)      (1,045   )      (954     )      (2,217  )    (2,888  )
expense, net
                                                                   
Income before        11,327           18,655           100,052       115,101
income taxes
Income taxes        1,486          3,417          24,720      28,077  
                                                                   
Net income        $  9,841        $  15,238       $  75,332     $ 87,024  
                                                                   
Net income per
share:
Basic             $  0.45         $  0.71         $  3.45       $ 3.96    
Diluted           $  0.44         $  0.70         $  3.40       $ 3.90    
                                                                   
Weighted
average shares
and equivalent
shares
outstanding:
Basic               21,979         21,536         21,822      21,901  
Diluted             22,228         21,806         22,098      22,255  
                                                                   
Diluted Net
Income Per
Share
Net income as     $  9,841         $  15,238        $  75,332      $ 87,024
reported
Less: income
allocated to        (14      )      (42      )      (128    )    (304    )
participating
securities
Net income
available to      $  9,827        $  15,196       $  75,204     $ 86,720  
common
shareholders
                                                                   
Weighted
average shares
adjusted for        22,228         21,806         22,098      22,255  
dilutive
securities
                                                                   
Diluted net
income per        $  0.44         $  0.70         $  3.40       $ 3.90    
share
                                                                   
Comprehensive     $  6,575        $  5,285        $  83,249     $ 74,414  
income

                                                          
LITTELFUSE, INC.
Consolidated Statements of Cash Flows
(In thousands of USD)
                                                             
                                         For the Twelve Months Ended
                                         December 29, 2012   December 31, 2011
                                         (Unaudited)
OPERATING ACTIVITIES:
Net income                               $   75,332          $   87,024
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation                                 25,344              25,641
Amortization of intangibles                  6,089               6,611
Provision for bad debts                      242                 444
Impairment of assets                         549                 2,320
Impairment and equity loss in                7,334               -
unconsolidated affiliate
Pension settlement charges                   5,348               -
Non-cash inventory charge^(1)                567                 4,145
Stock-based compensation                     7,348               5,805
(Gain) loss on disposal of fixed             (1,443    )         183
assets
Excess tax benefit on stock-based            (2,728    )         (4,220    )
compensation
Deferred income taxes                        (2,661    )         (1,363    )
Changes in operating assets and
liabilities:
Accounts receivable                          (1,587    )         4,768
Inventories                                  5,439               2,612
Accounts payable                             5,353               (5,272    )
Accrued expenses (including post             (9,570    )         (421      )
retirement)
Accrued payroll and severance                (4,387    )         (3,226    )
Accrued taxes                                (357      )         (6,057    )
Prepaid expenses and other                  (42       )        1,756     
Net cash provided by operating               116,170             120,750
activities
                                                             
INVESTING ACTIVITIES:
Purchases of property, plant and             (22,529   )         (17,555   )
equipment
Acquisition of businesses, net of cash       (34,016   )         (11,077   )
acquired
Purchase of investment                       (10,000   )         (6,000    )
Loan to unconsolidated entity                (2,000    )         -
Purchase of short-term investments           (4,616    )         (14,228   )
Proceeds from sales of short-term            17,805              -
investments
Proceeds from sale of property, plant       3,664             217       
and equipment
Net cash used in investing activities        (51,692   )         (48,643   )
                                                             
FINANCING ACTIVITIES:
Proceeds from debt                           23,251              110,000
Payments of term debt                        -                   (49,000   )
Payments of revolving credit facility        (25,032   )         (50,000   )
Purchases of common stock                    -                   (37,092   )
Debt issuance costs                          -                   (716      )
Cash dividends paid                          (16,564   )         (14,508   )
Proceeds from exercise of stock              16,367              23,036
options
Excess tax benefit on stock-based           2,728             4,220     
compensation
Net cash provided by (used in)               750                 (14,060   )
financing activities
                                                             

Effect of exchange rate changes on          6,160             (3,751    )
cash and cash equivalents
                                                             
Increase in cash and cash equivalents        71,388              54,296
Cash and cash equivalents at beginning      164,016           109,720   
of period
Cash and cash equivalents at end of      $   235,404        $   164,016   
period
                                                             
(1) Purchase accounting adjustment
related to acquisitions.

Contact:

Littelfuse, Inc.
Phil Franklin,
Vice President, Operations Support and CFO
(773) 628-0810