dc937b59892604f5a86ac96936cd7ff09e25f18ae6b758e8014a24c7fa039e91

6507eda37c797f9134e1db0d591c5262f9644d03ffd41c55f67936d4b1e9eb82

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

88db5f0e35d6554cbb6f95aa20119c91c6fd487113f82ed523c97451fdc8c24a

76f4b8912dfd199c2ae76a2649103aa2197af45e8465e49db73b5e68dc110bd1

Cash and cash equivalents (USD, thousands)

Held to maturity U.S. Treasury securities (USD, thousands)

Accounts receivable, net (USD, thousands)

Inventories (USD, thousands)

Other current assets (USD, thousands)

Total current assets (USD, thousands)

Property, plant and equipment, net (USD, thousands)

Right-of-use assets (USD, thousands)

Related party note receivable (USD, thousands)

Equity method investment (USD, thousands)

Other assets (USD, thousands)

Total assets (USD, thousands)

Accounts payable (USD, thousands)

Operating lease liabilities, current (USD, thousands)

Other current liabilities (USD, thousands)

Total current liabilities (USD, thousands)

Long-term debt (USD, thousands)

Operating lease liabilities, long-term (USD, thousands)

Total liabilities (USD, thousands)

Total stockholders' equity (USD, thousands)

4e8dc71a1b736b226ba279d9b0ca91b9b2ba47f9210db4621c2002d822747bd4

Net sales (USD, thousands)

Cost of sales (USD, thousands)

Gross profit (USD, thousands)

Research and development costs (USD, thousands)

Selling, general and administrative expenses (USD, thousands)

Restructuring charges (USD, thousands)

Income from operations (USD, thousands)

Interest expense (USD, thousands)

Interest income (USD, thousands)

Other (expense) income, net (USD, thousands)

Earnings before provision for income taxes (USD, thousands)

Provision for income taxes (USD, thousands)

Net earnings available to common stockholders (USD, thousands)

70ac7d7acab0f261aa2e80c532d6a21d6ad50e761f3a2adbf3bf82a27db29b66

The significant drop in Q1 2024 net sales was driven primarily by two factors. First, the **Power Solutions and Protection segment** saw a decline of **$22,934,000 (27.6%)**, largely due to a **$17.4 million** drop in networking-related power product sales, a **$4.8 million** reduction in CUI product sales, a **$1.2 million** decline in eMobility power product sales, and a steep fall in raw material expedite fee revenue (from **$7.8 million** to less than **$0.1 million**).  **[BELFA_3381227_1]** **[0001437749-24-013891_belfb20240331_10q.htm:26]**  Second, the **Magnetic Solutions segment** experienced a significant sales drop of **$22,209,000 (62.1%)**, driven by decreased demand from networking customers and inventory destocking.  **[BELFA_3381227_1]** **[0001437749-24-013891_belfb20240331_10q.htm:27]** 

What factors drove the significant drop in net sales in Q1 2024?

The notable decline in operating income in Q4 2023 was primarily driven by a **17.3% drop in net sales**—especially due to a **48.9% decrease** in the Magnetic Solutions segment—which significantly reduced overall revenues. Additionally, increased **restructuring costs** (rising to **$3.8 million** compared to **$3.3 million** in Q4 2022) and one-time adjustments related to global incentive compensation further pressured operating margins despite some offsetting improvements in gross margins and controlled SG&A expenses.  **[0001437749-24-005086_ex_595038.htm:10]** **[0001437749-24-005086_ex_595038.htm:1]** **[0001437749-24-013891_belfb20240331_10q.htm:4]** 

Why did operating income decline notably in Q4 2023?

The documents indicate that net earnings available to common stockholders actually **increased** in FY 2023—from **$52,689 thousand in FY 2022**  **[0001437749-23-006172_belfb20221123_10k.htm:60]**  to **$73,831 thousand in FY 2023**.  **[0001437749-24-007265_belfb20231231_10k.htm:59]**  The explanation provided shows that improved operational performance, including a higher **gross profit margin** (from **28.0% in FY 2022** to **33.7% in FY 2023**), increased **adjusted EBITDA** (rising from **$83.0 million to $110.5 million**), benefits from restructuring, enhanced segment performance, lower **interest expense**, and a **one-time gain of $980 thousand** on a sale, all contributed to the earnings boost.  **[0001437749-24-007265_belfb20231231_10k.htm:59]** **[0001437749-24-005086_ex_595038.htm:1]** **[0001437749-24-005086_ex_595038.htm:10]**  Therefore, there was no dramatic fall in net earnings in FY 2023.

What caused the dramatic fall in net earnings available to common stockholders in FY 2023?

The sharp decline in net earnings in Q3 2024 was primarily driven by a **22.1% decline in net sales**, including a **35% drop** in Power Solutions and a **40% decline** in Magnetic Solutions, which significantly reduced revenue. This was compounded by **higher SG&A expenses**—notably **$4.2 million** in legal and other costs related to the Enercon acquisition—as well as **restructuring charges** and a **significantly increased effective tax rate of 27.8%** (including a one-time tax provision of **$1.3 million**). In addition, the decline in gross profit from **$55.5 million** in Q3 2023 to **$44.7 million** in Q3 2024 further contributed to the reduction in net earnings.  **[0001437749-24-031903_ex_718466.htm:1]** **[BELFA_3403792_1]** **[0001437749-24-031903_ex_718466.htm:10]** 

What drove the sharp decline in net earnings in Q3 2024?

056046b5be4fa837042e7193ea62377e005489ae9939fedb1716b88e74d4b7a7

Bel Fuse Inc.'s cash and cash equivalents jumped in Q3 2024 primarily due to a **strong operating performance** and a significant **cash inflow from the maturity of U.S. Treasury securities**. The company generated **$65,720 thousand** from operating activities driven by higher net earnings and improved working capital, such as reductions in inventories and accounts receivable. In addition, it received **$139,316 thousand** from the maturity of held-to-maturity securities, which provided a vital boost to the cash balance, despite being partially offset by reinvestments, stock repurchases, capital expenditures, dividend payments, and a slight negative impact from exchange rate changes.  **[0001437749-24-032429_belfb20240930_10q.htm:37]** **[0001437749-24-031903_ex_718466.htm:9]** 

Why did cash and cash equivalents jump in Q3 2024?

The decline in total assets in Q1 2024 was primarily caused by a **reduction in cash and cash equivalents**—which dropped by **$18,051 thousand** due to operating cash flow, proceeds and purchases of held-to-maturity securities, stock repurchases, capital expenditures, and dividend payments—as well as a **decrease in inventories** by **$6,081 thousand**, and a **reduction in goodwill and intangible assets** by **$2,818 thousand**. Additionally, there was a slight decrease in accounts receivable by **$671 thousand**, although this was partially offset by increases in held-to-maturity U.S. Treasury securities and deferred income taxes.  **[0001437749-24-013891_belfb20240331_10q.htm:3]** **[0001437749-24-013891_belfb20240331_10q.htm:30]** **[0001437749-24-013891_belfb20240331_10q.htm:6]** **[0001437749-24-013891_belfb20240331_10q.htm:14]** 

What caused the decline in total assets in Q1 2024?

The **accounts receivable** dropped significantly in Q3 2024 primarily due to **lower sales volume** in the third quarter, which contributed to a **$8.4 million** decrease during the nine months ended September 30, 2024. Additionally, there was a slight increase in the days sales outstanding from **55 days** to **57 days**, indicating that the collection process took a bit longer during this period.  **[0001437749-24-032429_belfb20240930_10q.htm:37]** 

Why did accounts receivable drop significantly in Q3 2024?

The sharp increase in the treasury stock position in Q3 2024 was driven by aggressive share repurchase activities. Specifically, BELFA repurchased **26,647 shares** at a cost of **$1.9 million** and undertook further repurchases totaling **$16.1 million** under its Repurchase Program over the nine months ended September 30, 2024, which significantly boosted the treasury stock balance.  **[0001437749-24-032429_belfb20240930_10q.htm:4]** **[0001437749-24-031903_ex_718466.htm:1]** **[0001437749-24-032429_belfb20240930_10q.htm:37]** 

What drove the sharp increase in the treasury stock position in Q3 2024?

In Q3 2024, the reduction in inventories was primarily due to **a decrease in raw materials and finished goods** as the company worked through its existing inventory on hand, along with **an easing of component availability** which further contributed to the inventory drop.  **[BELFA_3403792_2]** **[0001437749-24-032429_belfb20240930_10q.htm:37]** 

Bel Fuse Inc (BELFA)

Financials