Business
Bel Reports Fourth Quarter and Full Year 2019 Results
JERSEY CITY, N.J., Feb. 20, 2020 (GLOBE NEWSWIRE) -- Bel Fuse Inc. (Nasdaq: BELFA and BELFB) today announced preliminary financial results for the fourth
About this update from Bel Fuse Inc.
[{"type":"text","content":"JERSEY CITY, N.J., Feb. 20, 2020 (GLOBE NEWSWIRE) -- Bel Fuse Inc. (Nasdaq: BELFA and BELFB) today announced preliminary financial results for the fourth quarter and full year of 2019.\n Fourth Quarter 2019 Highlights •Net sales of $115.1 million, down 19.3% from Q4-18•Gross profit margin of 21.4%, down from 26.8% in Q4-18 (excludes R&D costs)•Closed on acquisition of CUI Inc. power assets from CUI Global in December•Generated cash flow from operating activities of $6.4 million Full Year 2019 Highlights •Net sales of $492.4 million, down 10.2% from 2018•Gross profit margin of 22.5%, down from 25.4% in 2018 (excludes R&D costs)•Non-cash goodwill impairment charge of $8.9 million, as market weakness impacted North America segment•Generated cash flow from operating activities of $25.3 million Non-GAAP financial measures, such as Non-GAAP net earnings, Non-GAAP EPS, EBITDA and Adjusted EBITDA, exclude the impact of a non-cash goodwill impairment charge, a gain on sale of property, costs associated with ERP system implementation costs, restructuring charges and non-cash charges associated with the liquidation of foreign subsidiaries. Please refer to the financial information included with this press release for reconciliations of GAAP financial measures to Non-GAAP financial measures and our explanation of why we present Non-GAAP financial measures. CEO CommentsDaniel Bernstein, President and CEO, said, “International trade policy, and in particular the additional tariffs imposed on our products imported from China, negatively impacted our results in 2019. Following an acceleration of orders throughout 2018 from customers anticipating higher pricing in 2019, the industry experienced lower order and sales volumes throughout the supply chain in 2019. In many cases for Bel, the lower order volume related to customers and distributors working through their inventory on hand. However, by year end, the ongoing tariffs caused certain customers to source products from other countries and this further impacted our sales during the fourth quarter. The softer top-line along with higher material costs throughout most of 2019 contributed to margin erosion that we’re working hard to restore. Our product development teams continued to work diligently in introducing 477 new products during 2019, a 13% increase from the prior year. “On a positive not...