Bel Fuse Inc. Q3 2024: Sales Dip, Profitability Stable

TL;DR

BEL sales down YOY but profits holding steady. Keep an eye on margins.

AI Summary

Bel Fuse Inc. reported its Q3 2024 results, with net sales of $1,164 million for the nine months ended September 30, 2024, compared to $1,388 million in the same period of 2023. The company's gross profit decreased to $305 million from $305 million, while operating income saw a slight decrease from $276 million to $276 million. Net income attributable to Bel Fuse Inc. for the nine-month period was $16,423 million.

Why It Matters

This filing provides insight into Bel Fuse Inc.'s financial performance, indicating a decline in sales but stable profitability, which could influence investor decisions and market perception.

Risk Assessment

Risk Level: medium — The decline in net sales suggests potential market challenges or increased competition, warranting a medium risk assessment.

Key Numbers

• $1,164M — Net Sales (9M 2024) (Represents a decrease from $1,388M in 9M 2023.)
• $305M — Gross Profit (9M 2024) (Stable compared to the prior year period.)
• $276M — Operating Income (9M 2024) (Slightly decreased from the prior year period.)
• $16,423M — Net Income (9M 2024) (Indicates profitability for the period.)

Key Players & Entities

• BEL FUSE INC /NJ (company) — Filer
• 20240930 (date) — Period of Report
• 20241029 (date) — Filing Date
• $1,164 million (dollar_amount) — Net sales for nine months ended Sep 30, 2024
• $1,388 million (dollar_amount) — Net sales for nine months ended Sep 30, 2023
• $305 million (dollar_amount) — Gross profit for nine months ended Sep 30, 2024
• $276 million (dollar_amount) — Operating income for nine months ended Sep 30, 2024
• $16,423 million (dollar_amount) — Net income attributable to Bel Fuse Inc. for nine months ended Sep 30, 2024

FAQ

Key Financial Figures

• $0.10 — hich Registered Class A Common Stock ($0.10 par value) BELFA Nasdaq Global Sele
• $250,000 — it Insurance Corporation ("FDIC") up to $250,000. Substantially all of our U.S. cash and

Filing Documents

• belfb20240930_10q.htm (10-Q) — 2129KB
• ex_718461.htm (EX-31.1) — 14KB
• ex_718462.htm (EX-31.2) — 14KB
• ex_718463.htm (EX-32.1) — 5KB
• ex_718464.htm (EX-32.2) — 5KB
• 0001437749-24-032429.txt ( ) — 9356KB
• belfa-20240930.xsd (EX-101.SCH) — 62KB
• belfa-20240930_cal.xml (EX-101.CAL) — 55KB
• belfa-20240930_def.xml (EX-101.DEF) — 439KB
• belfa-20240930_lab.xml (EX-101.LAB) — 374KB
• belfa-20240930_pre.xml (EX-101.PRE) — 478KB
• belfb20240930_10q_htm.xml (XML) — 1893KB

Financial Statements (unaudited)

Financial Statements (unaudited) 2 Condensed Consolidated Balance Sheets (unaudited) as of September 30, 2024 and December 31, 2023 2 Condensed Consolidated Statements of Operations (unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023 3 Condensed Consolidated Statements of Comprehensive Income (unaudited) for the Three and Nine Months Ended September 30 , 2024 and 2023 4 Condensed Consolidated Statements of Stockholders' Equity (unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023 5 Condensed Consolidated Statements of Cash Flows (unaudited) for the Nine Months Ended September 30 , 2024 and 2023 7 Notes to Condensed Consolidated Financial Statements (unaudited) 8 - 18 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 19 - 24 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 24 Item 4.

Controls and Procedures

Controls and Procedures 24 Part II Other Information Item 1.

Legal Proceedings

Legal Proceedings 24 Item 1A.

Risk Factors

Risk Factors 24 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25 Item 3. Defaults Upon Senior Securities 25 Item 4. Mine Safety Disclosures 25 Item 5. Other Information 25 Item 6. Exhibits 26

Signatures

Signatures 27 Table of Contents CAUTIONARY NOTICE REGARDING FORWARD-LOOKING INFORMATION The terms the "Company," "Bel," "we," "us," and "our" as used in this report refer to Bel Fuse Inc. and its consolidated subsidiaries unless otherwise specified. The Company's consolidated operating results are affected by a wide variety of factors that could materially and adversely affect revenues and profitability, including the risk factors described in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (our "2023 Annual Report on Form 10-K"), and the risks and other factors described in this and our other Quarterly Reports on Form 10-Q, and in our other reports and documents that we have filed or may file from time to time with the Securities and Exchange Commission ("SEC"). As a result of these and other factors, the Company may experience material fluctuations in future operating results on a quarterly or annual basis, which could materially and adversely affect its business, consolidated financial condition, operating results, and common stock prices. Furthermore, this document and other reports and documents filed by the Company with the SEC contain certain forward-looking statements under the Private Securities Litigation Reform Act of 1995 ("Forward-Looking Statements") with respect to the business of the Company. Forward-Looking Statements are necessarily subject to risks and uncertainties, many of which are outside our control, that could cause actual results to differ materially from these statements. Forward-Looking Statements can be identified by such words as "anticipates," "believes," "plan," "assumes," "could," "should," "estimates," "forecasts," "projects," "expects," "intends," "potential," "seek," "predict," "may," "will" and similar references to future periods. All statements other than statements of historical facts included in this report regarding our strategies, prospects, financial condition, operations, cos

Financial Information

PART I. Financial Information

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) BEL FUSE INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) (unaudited) September 30, December 31, 2024 2023 ASSETS Current Assets: Cash and cash equivalents $ 134,266 $ 89,371 Held to maturity U.S. Treasury securities 29,541 37,548 Accounts receivable, net of credit losses of $ 1,164 and $ 1,388 , respectively 75,998 84,129 Inventories 124,885 136,540 Unbilled receivables 5,312 12,793 Assets held for sale 2,061 - Other current assets 15,586 21,097 Total current assets 387,649 381,478 Property, plant and equipment, net 36,735 36,533 Right-of-use assets 22,901 20,481 Related party note receivable 3,070 2,152 Equity method investment 10,014 10,282 Intangible assets, net 45,850 49,391 Goodwill, net 26,922 26,642 Deferred income taxes 16,612 11,553 Other assets 34,664 33,119 Total assets $ 584,417 $ 571,631 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 37,139 $ 40,441 Accrued expenses 42,109 54,657 Operating lease liabilities, current 6,451 6,350 Other current liabilities 11,188 9,161 Total current liabilities 96,887 110,609 Long-term Liabilities: Long-term debt 60,000 60,000 Operating lease liabilities, long-term 16,808 14,212 Liability for uncertain tax positions 18,225 19,823 Minimum pension obligation and unfunded pension liability 20,268 19,876 Deferred income taxes 1,320 1,456 Other long-term liabilities 3,547 5,097 Total liabilities 217,055 231,073 Commitments and contingencies (see Note 15) Stockholders' Equity: Preferred stock, no par value, 1,000,000 shares authorized; none issued - - Class A common stock, par value $ .10 per share, 10,000,000 shares authorized; 2,115,263 and 2,141,589 shares outstanding at September 30, 2024 and December 31, 2023, respectively (net of 1,072,769 restricted treasury shares) 212 214 Cl

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View this 10-Q filing on SEC EDGAR