Littelfuse Reports Third Quarter Results for 2023

Strong Execution Drives Performance Above Guidance

Littelfuse, Inc. (NASDAQ: LFUS), a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world, today reported financial results for the third quarter ended September 30, 2023:

  • Net sales of $607.1 million were down 8% versus the prior year period, and down 11% organically
  • GAAP diluted EPS was $2.30; adjusted diluted EPS was $2.97
  • Cash flow from operations was $161.5 million and free cash flow was $139.8 million

“In the third quarter, sales and earnings exceeded our expectations, despite pockets of end market softness and ongoing inventory destocking,” said Dave Heinzmann, Littelfuse President and Chief Executive Officer. “Our year-to-date performance underscores the resilience of our business model, strong cash generation, and consistent execution. Looking ahead, while dynamic macro conditions likely persist, our improved cost structure, healthy balance sheet, and ability to optimize cash flow should position us well into 2024. Our experienced team will continue to leverage our competitive advantages across our evolving and diversified end markets.”

Fourth Quarter of 2023*

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

  • Net sales in the range of $520 to $550 million, adjusted diluted EPS in the range of $1.90 to $2.10 and an adjusted effective tax rate of approximately 18%

*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 December 7, 2023, to shareholders of record as of November 23, 2023.

Conference Call and Webcast Information

Littelfuse will host a conference call on Wednesday, November 1, 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 17,000 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; 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; 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)

 

September 30,

2023

 

December 31,

2022

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

560,056

 

$

562,588

Short-term investments

 

 

229

 

 

 

84

 

Trade receivables, less allowances of $88,440 and $83,562 at September 30, 2023 and December 31, 2022, respectively

 

 

327,500

 

 

 

306,578

 

Inventories

 

 

483,075

 

 

 

547,690

 

Prepaid income taxes and income taxes receivable

 

 

3,776

 

 

 

7,215

 

Prepaid expenses and other current assets

 

 

83,684

 

 

 

87,641

 

Total current assets

 

 

1,458,320

 

 

 

1,511,796

 

Net property, plant, and equipment

 

 

478,906

 

 

 

481,110

 

Intangible assets, net of amortization

 

 

612,366

 

 

 

593,970

 

Goodwill

 

 

1,284,343

 

 

 

1,186,922

 

Investments

 

 

23,371

 

 

 

24,121

 

Deferred income taxes

 

 

13,598

 

 

 

14,367

 

Right of use lease assets, net

 

 

51,755

 

 

 

57,382

 

Other long-term assets

 

 

80,267

 

 

 

34,066

 

Total assets

 

$

4,002,926

 

 

$

3,903,734

 

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

166,725

 

 

$

208,571

 

Accrued liabilities

 

 

143,540

 

 

 

187,057

 

Accrued income taxes

 

 

35,762

 

 

 

41,793

 

Current portion of long-term debt

 

 

135,619

 

 

 

134,874

 

Total current liabilities

 

 

481,646

 

 

 

572,295

 

Long-term debt, less current portion

 

 

857,006

 

 

 

866,623

 

Deferred income taxes

 

 

106,656

 

 

 

100,230

 

Accrued post-retirement benefits

 

 

29,445

 

 

 

28,037

 

Non-current operating lease liabilities

 

 

39,818

 

 

 

45,661

 

Other long-term liabilities

 

 

83,496

 

 

 

79,510

 

Total equity

 

 

2,404,859

 

 

 

2,211,378

 

Total liabilities and equity

 

$

4,002,926

 

 

$

3,903,734

 

LITTELFUSE, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME

 

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

(in thousands, except per share data)

 

September 30,

2023

 

October 1,

2022

 

September 30,

2023

 

October 1,

2022

Net sales

 

$

607,071

 

 

$

658,880

 

 

$

1,828,850

 

 

$

1,900,646

Cost of sales

 

 

380,200

 

 

 

402,059

 

 

 

1,122,190

 

 

 

1,122,258

 

Gross profit

 

 

226,871

 

 

 

256,821

 

 

 

706,660

 

 

 

778,388

 

 

 

 

 

 

 

 

 

 

Selling, general, and administrative expenses

 

 

87,204

 

 

 

90,219

 

 

 

270,057

 

 

 

258,820

 

Research and development expenses

 

 

25,484

 

 

 

25,752

 

 

 

77,270

 

 

 

68,796

 

Amortization of intangibles

 

 

16,022

 

 

 

15,567

 

 

 

49,773

 

 

 

39,883

 

Restructuring, impairment, and other charges

 

 

4,516

 

 

 

3,413

 

 

 

13,221

 

 

 

4,265

 

Total operating expenses

 

 

133,226

 

 

 

134,951

 

 

 

410,321

 

 

 

371,764

 

Operating income

 

 

93,645

 

 

 

121,870

 

 

 

296,339

 

 

 

406,624

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

10,101

 

 

 

8,399

 

 

 

29,803

 

 

 

17,069

 

Foreign exchange loss

 

 

11,776

 

 

 

18,191

 

 

 

8,697

 

 

 

40,051

 

Other (income) expense, net

 

 

(3,527

)

 

 

(698

)

 

 

(11,810

)

 

 

9,789

 

Income before income taxes

 

 

75,295

 

 

 

95,978

 

 

 

269,649

 

 

 

339,715

 

Income taxes

 

 

17,507

 

 

 

20,510

 

 

 

53,045

 

 

 

59,713

 

Net income

 

$

57,788

 

 

$

75,468

 

 

$

216,604

 

 

$

280,002

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

Basic

 

$

2.32

 

 

$

3.05

 

 

$

8.72

 

 

$

11.32

 

Diluted

 

$

2.30

 

 

$

3.02

 

 

$

8.63

 

 

$

11.21

 

 

 

 

 

 

 

 

 

 

Weighted-average shares and equivalent shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

24,893

 

 

 

24,755

 

 

 

24,838

 

 

 

24,726

 

Diluted

 

 

25,143

 

 

 

24,988

 

 

 

25,100

 

 

 

24,986

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

$

55,654

 

 

$

47,280

 

 

$

212,842

 

 

$

218,262

 

LITTELFUSE, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(Unaudited)

 

 

 

 

 

Nine Months Ended

(in thousands)

 

September 30,

2023

 

October 1,

2022

OPERATING ACTIVITIES

 

 

 

 

Net income

 

$

216,604

 

 

$

280,002

 

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

 

 

137,988

 

 

 

183,942

 

Changes in operating assets and liabilities:

 

 

 

 

Trade receivables

 

 

(21,752

)

 

 

(56,431

)

Inventories

 

 

66,456

 

 

 

(83,803

)

Accounts payable

 

 

(38,475

)

 

 

(3,838

)

Accrued liabilities and income taxes

 

 

(61,359

)

 

 

(4,399

)

Prepaid expenses and other assets

 

 

13,678

 

 

 

(2,034

)

Net cash provided by operating activities

 

 

313,140

 

 

 

313,439

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

Acquisitions of businesses, net of cash acquired

 

 

(198,810

)

 

 

(532,772

)

Purchases of property, plant, and equipment

 

 

(63,166

)

 

 

(77,773

)

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

 

 

597

 

 

 

565

 

Net cash used in investing activities

 

 

(261,379

)

 

 

(609,980

)

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

Net payments of credit facility

 

 

(5,625

)

 

 

373,125

 

Cash dividends paid

 

 

(45,973

)

 

 

(41,055

)

All other cash provided by (used in) financing activities

 

 

4,454

 

 

 

(10,147

)

Net cash (used in) provided by financing activities

 

 

(47,144

)

 

 

321,923

 

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

 

 

(7,965

)

 

 

(31,963

)

Decrease in cash, cash equivalents, and restricted cash

 

 

(3,348

)

 

 

(6,581

)

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

 

 

564,939

 

 

 

482,836

 

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

 

$

561,591

 

 

$

476,255

 

LITTELFUSE, INC.

 

NET SALES AND OPERATING INCOME BY SEGMENT

 

(Unaudited)

 

 

 

 

 

 

 

Third Quarter

 

Year-to-Date

(in thousands)

 

2023

 

2022

 

%

Growth /

(Decline)

 

2023

 

2022

 

%

Growth /

(Decline)

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Electronics

 

$

343,933

 

 

$

397,629

 

 

(13.5

)%

 

$

1,052,673

 

 

$

1,121,626

 

 

(6.1

)%

Transportation

 

 

177,019

 

 

 

181,735

 

 

(2.6

)%

 

 

515,708

 

 

 

548,266

 

 

(5.9

)%

Industrial

 

 

86,119

 

 

 

79,516

 

 

8.3

%

 

 

260,469

 

 

 

230,754

 

 

12.9

%

Total net sales

 

$

607,071

 

 

$

658,880

 

 

(7.9

)%

 

$

1,828,850

 

 

$

1,900,646

 

 

(3.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

 

 

 

 

 

 

Electronics

 

$

77,022

 

 

$

113,140

 

 

(31.9

)%

 

$

247,028

 

 

$

339,675

 

 

(27.3

)%

Transportation

 

 

9,694

 

 

 

12,987

 

 

(25.4

)%

 

 

26,015

 

 

 

57,604

 

 

(54.8

)%

Industrial

 

 

13,201

 

 

 

12,178

 

 

8.4

%

 

 

45,450

 

 

 

39,968

 

 

13.7

%

Other(a)

 

 

(6,272

)

 

 

(16,435

)

 

N.M.

 

 

 

(22,154

)

 

 

(30,623

)

 

N.M.

 

Total operating income

 

$

93,645

 

 

$

121,870

 

 

(23.2

)%

 

$

296,339

 

 

$

406,624

 

 

(27.1

)%

Operating Margin

 

 

15.4

%

 

 

18.5

%

 

 

 

 

16.2

%

 

 

21.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

10,101

 

 

 

8,399

 

 

 

 

 

29,803

 

 

 

17,069

 

 

 

Foreign exchange loss

 

 

11,776

 

 

 

18,191

 

 

 

 

 

8,697

 

 

 

40,051

 

 

 

Other (income) expense, net

 

 

(3,527

)

 

 

(698

)

 

 

 

 

(11,810

)

 

 

9,789

 

 

 

Income before income taxes

 

$

75,295

 

 

$

95,978

 

 

(21.5

)%

 

$

269,649

 

 

$

339,715

 

 

(20.6

)%

 

(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

 

 

Third Quarter

 

Year-to-Date

(in thousands)

 

2023

 

2022

 

%

(Decline)

 

2023

 

2022

 

%

Growth /

(Decline)

Operating Margin

 

 

 

 

 

 

 

 

 

 

 

 

Electronics

 

22.4

%

 

28.5

%

 

(6.1

)%

 

23.5

%

 

30.3

%

 

(6.8

)%

Transportation

 

5.5

%

 

7.1

%

 

(1.6

)%

 

5.0

%

 

10.5

%

 

(5.5

)%

Industrial

 

15.3

%

 

15.3

%

 

%

 

17.4

%

 

17.3

%

 

0.1

%

LITTELFUSE, INC.

 

SUPPLEMENTAL FINANCIAL INFORMATION

 

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

 

 

 

 

 

 

 

 

 

Non-GAAP EPS reconciliation

 

 

 

 

 

 

 

 

 

 

Q3-23

 

Q3-22

 

YTD-23

 

YTD-22

GAAP diluted EPS

 

$

2.30

 

$

3.02

 

$

8.63

 

$

11.21

EPS impact of Non-GAAP adjustments (below)

 

 

0.67

 

 

 

1.26

 

 

 

1.09

 

 

 

2.32

 

Adjusted diluted EPS

 

$

2.97

 

 

$

4.28

 

 

$

9.72

 

 

$

13.53

 

Non-GAAP adjustments - (income) / expense

 

 

 

 

 

 

 

 

 

 

Q3-23

 

Q3-22

 

YTD-23

 

YTD-22

Acquisition-related and integration costs (a)

 

$

1.8

 

$

6.2

 

$

9.0

 

 

$

14.8

 

Purchase accounting inventory adjustments (b)

 

 

 

 

 

6.8

 

 

 

 

 

 

11.6

 

Restructuring, impairment and other charges (c)

 

 

4.5

 

 

 

3.4

 

 

 

13.2

 

 

 

4.3

 

Non-GAAP adjustments to operating income

 

 

6.3

 

 

 

16.4

 

 

 

22.2

 

 

 

30.7

 

Other income, net (d)

 

 

 

 

 

 

 

 

(0.2

)

 

 

(0.5

)

Non-operating foreign exchange loss

 

 

11.8

 

 

 

18.2

 

 

 

8.7

 

 

 

40.1

 

Non-GAAP adjustments to income before income taxes

 

 

18.1

 

 

 

34.6

 

 

 

30.7

 

 

 

70.3

 

Income taxes (e)

 

 

1.2

 

 

 

3.0

 

 

 

3.2

 

 

 

12.2

 

Non-GAAP adjustments to net income

 

$

16.9

 

 

$

31.6

 

 

$

27.5

 

 

$

58.1

 

 

 

 

 

 

 

 

 

 

Total EPS impact

 

$

0.67

 

 

$

1.26

 

 

$

1.09

 

 

$

2.32

 

Adjusted operating margin / Adjusted EBITDA reconciliation

 

 

 

 

 

 

 

 

 

 

Q3-23

 

Q3-22

 

YTD-23

 

YTD-22

Net income

 

$

57.8

 

 

$

75.5

 

 

$

216.6

 

 

$

280.0

Add:

 

 

 

 

 

 

 

 

Income taxes

 

 

17.5

 

 

 

20.5

 

 

 

53.0

 

 

 

59.7

 

Interest expense

 

 

10.1

 

 

 

8.4

 

 

 

29.8

 

 

 

17.1

 

Foreign exchange loss

 

 

11.8

 

 

 

18.2

 

 

 

8.7

 

 

 

40.1

 

Other (income) expense, net

 

 

(3.5

)

 

 

(0.7

)

 

 

(11.8

)

 

 

9.8

 

GAAP operating income

 

$

93.6

 

 

$

121.9

 

 

$

296.3

 

 

$

406.6

 

Non-GAAP adjustments to operating income

 

 

6.3

 

 

 

16.4

 

 

 

22.2

 

 

 

30.7

 

Adjusted operating income

 

$

99.9

 

 

$

138.3

 

 

$

318.5

 

 

$

437.3

 

Amortization of intangibles

 

 

16.0

 

 

 

15.6

 

 

 

49.8

 

 

 

39.9

 

Depreciation expenses

 

 

17.9

 

 

 

17.0

 

 

 

53.5

 

 

 

48.3

 

Adjusted EBITDA

 

$

133.8

 

 

$

170.9

 

 

$

421.8

 

 

$

525.5

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

607.1

 

 

$

658.9

 

 

$

1,828.9

 

 

$

1,900.6

 

Net income as a percentage of net sales

 

 

9.5

%

 

 

11.5

%

 

 

11.8

%

 

 

14.7

%

Operating margin

 

 

15.4

%

 

 

18.5

%

 

 

16.2

%

 

 

21.4

%

Adjusted operating margin

 

 

16.5

%

 

 

21.0

%

 

 

17.4

%

 

 

23.0

%

Adjusted EBITDA margin

 

 

22.0

%

 

 

25.9

%

 

 

23.1

%

 

 

27.6

%

Adjusted EBITDA by Segment

 

Q3-23

 

Q3-22

 

 

Electronics

 

Transportation

 

Industrial

 

Electronics

 

Transportation

 

Industrial

GAAP operating income

 

$

77.0

 

 

$

9.7

 

 

$

13.2

 

 

$

113.1

 

 

$

13.0

 

 

$

12.2

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

Add back amortization

 

 

9.8

 

 

 

3.6

 

 

 

2.6

 

 

 

9.7

 

 

 

4.7

 

 

 

1.2

 

Add back depreciation

 

 

9.8

 

 

 

6.6

 

 

 

1.5

 

 

 

9.4

 

 

 

6.7

 

 

 

1.0

 

Adjusted EBITDA

 

$

96.6

 

 

$

19.9

 

 

$

17.3

 

 

$

132.2

 

 

$

24.4

 

 

$

14.4

 

Adjusted EBITDA Margin

 

 

28.1

%

 

 

11.2

%

 

 

20.1

%

 

 

33.3

%

 

 

13.4

%

 

 

18.1

%

Adjusted EBITDA by Segment

 

YTD-23

 

YTD-22

 

 

Electronics

 

Transportation

 

Industrial

 

Electronics

 

Transportation

 

Industrial

GAAP operating income

 

$

247.0

 

 

$

26.0

 

 

$

45.5

 

 

$

339.7

 

 

$

57.6

 

 

$

40.0

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

Add back amortization

 

 

30.1

 

 

 

12.2

 

 

 

7.5

 

 

 

22.5

 

 

 

13.7

 

 

 

3.7

 

Add back depreciation

 

 

29.1

 

 

 

20.4

 

 

 

4.0

 

 

 

26.5

 

 

 

19.0

 

 

 

2.9

 

Adjusted EBITDA

 

$

306.2

 

 

$

58.6

 

 

$

57.0

 

 

$

388.7

 

 

$

90.3

 

 

$

46.5

 

Adjusted EBITDA Margin

 

 

29.1

%

 

 

11.4

%

 

 

21.9

%

 

 

34.7

%

 

 

16.5

%

 

 

20.1

%

Net sales reconciliation

 

Q3-23 vs. Q3-22

 

 

Electronics

 

Transportation

 

Industrial

 

Total

Net sales (decline) growth

 

(14

)%

 

(3

)%

 

8

%

 

(8

)%

Less:

 

 

 

 

 

 

 

 

Acquisitions

 

2

%

 

%

 

3

%

 

2

%

FX impact

 

1

%

 

1

%

 

%

 

1

%

Organic net sales (decline) growth

 

(17

)%

 

(4

)%

 

5

%

 

(11

)%

Net sales reconciliation

 

YTD-23 vs. YTD-22

 

 

Electronics

 

Transportation

 

Industrial

 

Total

Net sales (decline) growth

 

(6

)%

 

(6

)%

 

13

%

 

(4

)%

Less:

 

 

 

 

 

 

 

 

Acquisitions

 

8

%

 

%

 

4

%

 

5

%

FX impact

 

%

 

%

 

%

 

%

Organic net sales (decline) growth

 

(14

)%

 

(6

)%

 

9

%

 

(9

)%

Income tax reconciliation

 

 

 

 

 

 

 

 

 

 

Q3-23

 

Q3-22

 

YTD-23

 

YTD-22

Income taxes

 

$

17.5

 

 

$

20.5

 

 

$

53.0

 

 

$

59.7

 

Effective rate

 

 

23.3

%

 

 

21.4

%

 

 

19.7

%

 

 

17.6

%

Non-GAAP adjustments - income taxes

 

 

1.2

 

 

 

3.0

 

 

 

3.2

 

 

 

12.2

 

Adjusted income taxes

 

$

18.7

 

 

$

23.4

 

 

$

56.2

 

 

$

71.9

 

Adjusted effective rate

 

 

20.0

%

 

 

18.0

%

 

 

18.7

%

 

 

17.5

%

Free cash flow reconciliation

 

 

 

 

 

 

 

 

 

 

Q3-23

 

Q3-22

 

YTD-23

 

YTD-22

Net cash provided by operating activities

 

$

161.5

 

 

$

148.1

 

 

$

313.1

 

 

$

313.4

 

Less: Purchases of property, plant and equipment

 

 

(21.7

)

 

 

(21.7

)

 

 

(63.2

)

 

 

(77.8

)

Free cash flow

 

$

139.8

 

 

$

126.5

 

 

$

250.0

 

 

$

235.7

 

Consolidated Total Debt

 

As of

September 30, 2023

Consolidated Total Debt

 

$

992.6

 

Unamortized debt issuance costs

 

 

4.0

 

Consolidated funded indebtedness

 

 

996.6

 

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

 

 

155.6

 

Net debt

 

$

841.0

 

 

 

 

Consolidated EBITDA

 

Twelve Months Ended

September 30, 2023

Net Income

 

$

309.7

 

Interest expense

 

 

38.9

 

Income taxes

 

 

63.1

 

Depreciation

 

 

70.2

 

Amortization

 

 

65.6

 

Non-cash additions:

 

 

Stock-based compensation expense

 

 

24.0

 

Purchase accounting inventory step-up charge

 

 

4.1

 

Unrealized loss on investments

 

 

1.2

 

Impairment charges

 

 

9.2

 

Other

 

 

(3.7

)

Consolidated EBITDA (1)

 

$

582.3

 

 

 

 

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

 

 

1.4

x

 

* 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 year-to-date amount includes the one-time net benefit of $7.2 million that resulted from the dissolution of one of the Company’s affiliates.

 

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