Bel Reports First Quarter Results

  Bel Reports First Quarter Results

Business Wire

JERSEY CITY, N.J. -- May 1, 2013

Bel Fuse Inc. (NASDAQ:BELFA) (NASDAQ:BELFB) today announced preliminary
unaudited financial results for the first quarter of 2013.

First Quarter 2013 Highlights

  *Sales decreased 3.9% to $63.0 million compared to $65.6 million for the
    first quarter of 2012.
  *The GAAP net loss was $553,000, or $0.05 per Class A share and $0.05 per
    Class B share, compared to GAAP net earnings of $876,000, or $0.07 per
    diluted Class A share and $0.08 per diluted Class B share, for the first
    quarter of 2012.
  *The non-GAAP net loss, which excludes restructuring charges, acquisition
    costs, and other amounts, was $444,000. For the first quarter of 2012,
    non-GAAP net earnings, which excludes restructuring charges, acquisition
    costs and other charges, were $1.1 million.
  *The transition of Cinch's operations to a new Texas facility resulted in
    approximately $1.7 million of additional costs in the first quarter of
    2013.
  *Acquisition costs and restructuring, severance and reorganization charges
    totaled $610,000 versus $367,000 during the first quarter of 2012.
  *On March 29, 2013, Bel closed the acquisition of the Transpower magnetics
    business from TE Connectivity, solidifying Bel's position as a world
    leader in integrated connector modules (ICMs). These acquired operations
    are now doing business as TRP Connector ("TRP").
  *Bel purchased 178,643 Class B common shares for an aggregate cost of $3.4
    million under the common share buyback program authorized by the Board in
    July 2012.

CEO comments

Daniel Bernstein, Bel's President and CEO, said, "We were disappointed by our
first quarter results, which were heavily impacted by unanticipated start-up
costs at our new Texas facility. While we still expect this restructuring to
reduce overall operating expenses by about $5.6 million annually, the first
quarter savings were more than offset by these additional costs. These costs
should be reduced by the end of the second quarter, and we expect the benefits
from our restructuring of Cinch to materialize in the third quarter. The
decrease in sales during the first quarter of 2013 as compared to the first
quarter of 2012 was primarily driven by two factors. Cinch sales were down by
$2.9 million due to the transition of manufacturing operations and we
experienced a $3.9 million decrease in sales from one customer in our module
product line. Bel's core product groups were also not profitable in the first
quarter as labor costs in China continue to rise and our current price
structure does not reflect these changes. Bel is in the process of
implementing price increases and the majority of these changes should be in
effect by August 1st. We will also continue to look at our overhead structure
to identify any additional opportunities for cost savings.

"On a positive note, we were pleased with the first quarter performance of
Fibreco and Powerbox, both acquired in 2012. These companies continue to show
growth potential and contributed a combined $2.9 million to our first quarter
sales and added $0.9 million of income from operations to our consolidated
results. With TRP coming on board late in March, we expect the results of this
acquisition to be accretive beginning in the second quarter. The TRP magnetics
business had 2012 sales of approximately $75 million. We have started our plan
to implement best manufacturing practices at both companies and we have
initiated vendor review of materials with the objective of obtaining future
savings on purchased materials. The full benefit of these results should be
seen in the second half of this year.

"We continue to look for potential acquisition opportunities to strengthen Bel
for future growth."

First Quarter Results

For the three months ended March 31, 2013, net sales decreased to $63,028,000
compared to $65,561,000 for the first quarter of 2012, as the addition of
recently acquired businesses and higher sales of magnetics products were
offset by lower modular and interconnect product sales. Cost of sales
increased to 85.6% of sales for the first quarter of 2013, compared to 84.1%
of sales for the first quarter of 2012.

The operating loss for the first quarter of 2013 was $1,420,000, compared to
operating income for the first quarter of 2012 of $1,434,000. Excluding
amounts detailed in the table reconciling GAAP to non-GAAP financial measures
included in this release, the non-GAAP operating loss for the first quarter of
2013 was $810,000, compared to non-GAAP operating income of $1,801,000 for the
first quarter of 2012.

The net loss for the first quarter of 2013 included an income tax benefit of
$830,000, the result of pre-tax losses and a favorable adjustment related to
the R&E credit during the quarter. For the first quarter of 2012, income tax
expense was $634,000.

The net loss for the first quarter of 2013 was $553,000, compared to net
earnings for the first quarter of 2012 of $876,000.

Excluding amounts detailed in the table reconciling GAAP to non-GAAP financial
measures mentioned above, the non-GAAP net loss for the first quarter of 2013
was $444,000. This compares to non-GAAP net earnings of $1,104,000 for the
first quarter of 2012, excluding charges detailed in the reconciliation table.

The net loss per Class A common share for the first quarter of 2013 was $0.05,
compared to net earnings per diluted Class A common share of $0.07 for the
first quarter of 2012. Adjusted to exclude the amounts referenced above, the
non-GAAP net loss per Class A common share was $0.04 for the first quarter of
2013, compared to non-GAAP net earnings per diluted Class A common share of
$0.09 for the first quarter of 2012.

The net loss per Class B common share was $0.05 for the first quarter of 2013,
compared to net earnings per diluted Class B common share of $0.08 for the
first quarter of 2012. Adjusted to exclude the amounts referenced above, the
non-GAAP net loss per Class B common share was $0.04 for the first quarter of
2013, compared to non-GAAP net earnings per diluted Class B common share of
$0.10 for the first quarter of 2012.

Balance Sheet Data

As of March 31, 2013, Bel had working capital of $126,248,000, including cash,
cash equivalents and marketable securities of $53,315,000, a current ratio of
3.0-to-1, total long-term obligations of $13,864,000, and stockholders' equity
of $209,800,000. In comparison, at December 31, 2012, Bel reported working
capital of $144,748,000, including cash, cash equivalents and marketable
securities of $71,264,000, a current ratio of 4.1-to-1, total long-term
obligations of $13,439,000, and stockholders' equity of $215,391,000. The
payment of cash to TE Connectivity for the acquisition of TRP contributed to
the decrease in cash, cash equivalents and marketable securities during the
first quarter of 2013.

Conference Call

Bel has scheduled a conference call at 11:00 a.m. EDT today. To participate
dial (720) 545-0088, conference ID #44230199. A simultaneous webcast is
available from the Investors link under the "About Bel" tab at
www.BelFuse.com. The webcast replay will be available for 20 days at this same
Internet address. For a telephone replay, dial (404) 537-3406, conference ID
#44230199, after 2:00 p.m. EDT.

About Bel

Bel (www.belfuse.com) and its divisions are primarily engaged in the design,
manufacture, and sale of products used in networking, telecommunications,
high-speed data transmission, commercial aerospace, military, transportation,
and consumer electronics. Products include magnetics (discrete components,
power transformers and MagJack^® connectors with integrated magnetics),
modules (DC-DC converters and AC-DC power supplies, integrated analog
front-end modules and custom designs), circuit protection (miniature, micro
and surface mount fuses) and interconnect devices (micro, circular and
filtered D-Sub connectors, fiber optic connectors, passive jacks, plugs and
high-speed cable assemblies). The Company operates facilities around the
world.

Forward-Looking Statements

Except for historical information contained in this press release, the matters
discussed in this press release (including the statements regarding the impact
of restructuring efforts on overall operating expenses, future operating
expenses, the ability to reduce those expenses, the timing of when
restructuring efforts will result in cost savings, the timing of price
increases, the ability of Bel to implement additional cost savings in the
future, the accretive nature of the TRP acquisition and the timing of when
benefits from that transaction can be expected to materialize) are
forward-looking statements that involve risks and uncertainties. Actual
results could differ materially from Bel's projections. Among the factors that
could cause actual results to differ materially from such statements are: the
market concerns facing our customers; the continuing viability of sectors that
rely on our products; the effects of business and economic conditions;
difficulties associated with integrating recently acquired companies; capacity
and supply constraints or difficulties; product development, commercializing
or technological difficulties; the regulatory and trade environment; risks
associated with foreign currencies; uncertainties associated with legal
proceedings; the market's acceptance of the Company's new products and
competitive responses to those new products; and the risk factors detailed
from time to time in the Company's SEC reports. In light of the risks and
uncertainties, there can be no assurance that any forward-looking statement
will in fact prove to be correct. We undertake no obligation to update or
revise any forward looking statements.



BEL FUSE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(000s omitted, except for per share data)
                                                   
                                                       
                                                       Three Months Ended
                                                       March 31,
                                                       2013         2012
                                                       (unaudited)
                                                                      
Net sales                                              $ 63,028      $ 65,561
                                                                      
Costs and expenses:
Cost of sales                                            53,922         55,132
Selling, general and administrative                      10,402         8,858
Restructuring charges                                   124          137
                                                                      
Total costs and expenses                                64,448       64,127
                                                                      
(Loss) income from operations                           (1,420 )      1,434
                                                                      
Interest expense                                         (3     )       --
Interest income and other, net                          40           76
                                                                      
(Loss) earnings before (benefit) provision for           (1,383 )       1,510
income taxes
(Benefit) provision for income taxes                    (830   )      634
                                                                      
Net (loss) earnings                                    $ (553   )     $ 876
                                                                      
(Loss) earnings per Class A common share - basic       $ (0.05  )     $ 0.07
and diluted
                                                                      
Weighted average Class A common shares
outstanding
- basic and diluted                                     2,175        2,175
                                                                      
(Loss) earnings per Class B common share - basic       $ (0.05  )     $ 0.08
and diluted
                                                                      
Weighted average Class B common shares
outstanding
- basic and diluted                                     9,221        9,632
                                                                        
                                                                        

CONDENSED CONSOLIDATED BALANCE SHEET DATA
(000s omitted)

              Mar. 31,      Dec. 31,                      Mar. 31,      Dec. 31,
ASSETS          2013            2012            LIABILITIES &     2013            2012
                                                EQUITY
                (unaudited)     (unaudited)                       (unaudited)     (unaudited)


Current         $  187,948      $  191,136      Current           $  61,700       $  46,388
assets                                          liabilities
Property,
plant
&                                               Noncurrent
equipment,         38,823          34,988       liabilities          13,864          13,439
net
Goodwill
and                42,105          35,181
intangibles
Other             16,488         13,913       Stockholders'       209,800        215,391
assets                                          equity
                                                                                  
Total                                           Total
Assets          $  285,364      $  275,218      Liabilities &     $  285,364      $  275,218
                                                Equity
                                                                                     
                                                                                     



BEL FUSE INC. AND SUBSIDIARIES
NON-GAAP MEASURES (unaudited)
(000s omitted, except for per share data)


                  Three Months Ended March 31, 2013
                                                Net loss      Net loss
                                                    per             per
                    Loss from                       Class A         Class B
                    operations     Net loss^(2)     common          common
                                                    share^(3)       share^(3)
                                                                    
GAAP measures       $ (1,420 )     $  (553   )      $  (0.05  )     $  (0.05  )
Restructuring
charges,
severance
and
reorganization        208             129              0.01            0.01
costs
Acquisitions
and other             402             365              0.03            0.03
related costs
Restoration of
prior year
Research
&
Experimentation      --            (385   )        (0.03  )       (0.03  )
(R&E) credit
                                                                    
Non-GAAP            $ (810   )     $  (444   )      $  (0.04  )     $  (0.04  )
measures^(1)
                                                                    
                                                                    
                                                                    
                    Three Months Ended March 31, 2012
                                                    Net             Net
                    Income                          earnings        earnings
                                                    per             per
                    from           Net              Class A         Class B
                                                    common          common
                    operations     earnings^(2)     share -         share -
                                                    diluted^(3)     diluted^(3)
                                                                    
GAAP measures       $ 1,434        $  876           $  0.07         $  0.08
Restructuring
charges,
severance
and
reorganization        324             201              0.02            0.02
costs
Acquisitions
and other            43            27             --            --     
related costs
                                                                    
Non-GAAP            $ 1,801       $  1,104        $  0.09        $  0.10   
measures^(1)
                                                                              

        The non-GAAP measures presented above are not measures of performance
        under accounting principles generally accepted in the United States of
        America ("GAAP"). These measures should not be considered a substitute
        for, and the reader should also consider, (loss) income from
(1)   operations, net (loss) earnings, (loss) earnings per share and other
        measures of performance as defined by GAAP as indicators of our
        performance or profitability. Our non-GAAP measures may not be
        comparable to other similarly-titled captions of other companies due
        to differences in the method of calculation.
        Based upon discussions with investors and analysts, we believe that
        the reader's understanding of Bel's performance and profitability is
        enhanced by reference to these non-GAAP measures. Removal of amounts
        such as charges for restructuring, severance and reorganization,
        certain income tax adjustments and acquisition-related costs
        facilitates comparison of our results among reporting periods. We
        believe that such amounts are not reflective of the relevant business
        in the period in which the charge or adjustment is recorded for
        accounting purposes.
        
(2)     Net of income tax at effective rate in the applicable tax
        jurisdiction.
        
(3)     Individual amounts of net (loss) earnings per share may not agree to
        the total due to rounding.
        

Contact:

Investor Contact:
Neil Berkman Associates
(310) 477-3118
info@berkmanassociates.com
or
Company Contact:
Bel Fuse Inc.
Daniel Bernstein
President & CEO
(201) 432-0463