美国
证券交易委员会
华盛顿特区20549
表格
(MARk ONE)
| | 根据1934年证券交易法第13或15(d)条款的季度报告。 |
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| 截止至本季度结束 |
| 或 | |
| | 根据1934年证券交易法第13或15(d)条款的过渡报告 |
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| 在从___________到__________的过渡期间 |
委员会档案号码。
贝尔保险丝公司。
（依凭章程所载的完整登记名称）
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| （公司注册地） |
| (I.R.S.雇主识别号码。) |
(主要营运地之地址及邮递区号)
注册人的电话号码，包括区号：(
根据法案第12(b)条规定注册的证券：
| 每个班级的标题 |
| 交易符号 |
| 注册于交易所名称 |
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| 请以核对标记表示登记业者（1）在前述12个月内已依据1934年证券交易所法第13条或第15(d)条的规定提交所有须提交的报告（或者在登记业者被要求提交该等报告的较短期间内），并且（2）已经在过去90天内受到该等报告要求的限制。 | | 无 ☐ |
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| 请勾选表示该登记者是否已在过去12个月内（或该登记者需要提交这些文件的较短期间）向Regulation S-t的第232.405条提出的每个互动式数据文件。 | | 无 ☐ |
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| 请勾选，以表明申报人是否属于大型加速提名人、加速提名人、非加速提名人、较小型报告公司或新兴成长型公司。请参阅《交易所法》第120亿2条中“大型加速提名人”、“加速提名人”、“较小型报告公司”和“新兴成长型公司”的定义。 | ||
| 大型加速提名人 提名人 ☐ | 加速 档案 ☒ | 非加速公司 筛选者 ☐ | 较小的报告 公司 | 新兴成长 公司 | |
| 如果该企业为新兴成长型企业，请在是否选择不使用证交法第13(a)条所提供之符合任何新的或修订财务会计标准的延长过渡期的方格中打勾。 | ☐ |
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| 勾选表示申报人是否为外壳公司（定义于交易所法规第1202条）。 | 是 | 否☒ |
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| 普通股流通股数 如截至10月25日, 2024 |
| A类普通股（面值0.10美元） |
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| B类普通股（面值0.10美元） |
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| 基本报表 |
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页面 |
| 第一部分 |
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财务资讯 |
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项目1。 |
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项目2。 |
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项目3。 |
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项目4。 |
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| 第二部分 |
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其他信息 |
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项目1。 |
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项目1A。 |
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| 项目2。 | 股票权益的未注册销售和资金用途 | 25 | |
| 项目3。 | 优先证券违约 | 25 | |
| 项目 4。 | 矿业安全披露 | 25 | |
| 项目5。 | 其他信息 | 25 | |
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第6项。 |
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关于前瞻性信息的警示通知
在本报告中，术语“公司”、“Bel”、“我们”、“我们”和“我们的”指的是Bel Fuse Inc.及其合并子公司，除非另有说明。
公司的合并运营结果受到多种因素的影响，这些因素可能会对收入和盈利能力产生重大不利影响，包括在我们截至2023年12月31日的年度报告（我们的“2023年度10-K报告”）的第1A项中描述的风险因素，以及在本报告和我们其他季度报告（10-Q表格）中描述的风险和其他因素，以及我们不时向证券交易委员会（"SEC"）提交的其他报告和文件。因此，因这些因素，公司未来的运营结果可能会在季度或年度基础上出现重大波动，这可能会对其业务、合并财务状况、运营结果和普通股价格产生重大不利影响。此外，本文件以及公司向SEC提交的其他报告和文件包含根据1995年《私人证券诉讼改革法案》（"前瞻性声明"）关于公司业务的一些前瞻性声明。前瞻性声明不可避免地受到风险和不确定性的影响，其中许多因素超出我们的控制，这可能导致实际结果与这些声明有重大差异。前瞻性声明可以通过“预期”、“相信”、“计划”、“假设”、“可能”、“应当”、“估计”、“预测”、“项目”、“期待”、“打算”、“潜在”、“寻求”、“预测”、“可能”、“将”等类似词语以及对未来时期的类似引用来识别。除本报告中包含的历史事实陈述外，所有关于我们策略、前景、财务状况、运营、成本、计划和目标的陈述均为前瞻性声明。
这些前瞻性声明受到某些风险和不确定性的影响，包括在我们2023年10-K表格的第1A项中详细列出的内容，以及在本报告和我们其他10-Q季度报告中描述的风险和其他因素，以及我们已提交或可能会不时提交的其他报告和文件，可能导致实际结果与这些前瞻性声明存在重大差异。任何前瞻性声明都完全受到在我们2023年10-K表格中讨论的风险因素的限制，并在本报告和我们其他10-Q季度报告中以及在我们不时向SEC提交的其他报告和文件中进行了描述。一些可能导致实际结果与前瞻性声明中包含的估计或预测存在重大差异的风险、不确定性和假设包括但不限于：
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市场上我们客户面临的担忧，以及如果失去某些重要客户对公司的业务造成的风险； |
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依赖我们产品的行业持续可行性; |
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业务和经济条件的影响，以及影响宏观经济环境一般和/或我们行业板块的挑战； |
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上涨的投入成本以及成本变化的一般影响，包括通货膨胀压力的潜在影响和效果； |
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与整合之前收购的公司的相关困难，以及在拟议的Enercon收购完成后，整合Enercon Technologies, Ltd.（“Enercon”）可能会遇到的任何困难； |
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能力和供应限制或困难，包括供应链限制或其他挑战； |
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公共卫生危机的影响（例如COVID或其他未来流行病或大流行的政府、社会和经济影响）； |
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与劳动力可用性相关的困难，以及任何劳工动荡或劳动力短缺的风险； |
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与我们国际业务相关的风险，包括我们在中华人民共和国（“中国”）的重大制造业-半导体业务，以及在收购Enercon后，与以色列的业务相关的风险，这些风险可能会受到地域板块内政治或经济不稳定、重大敌对行为或恐怖主义行为的负面影响； |
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与重组方案或其他战略举措相关的风险，包括实施或实现预期利益或成本节约的任何困难； |
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产品开发、商业化或技术困难； |
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监管和交易环境，包括可能影响Bel、其客户和/或其供应商的贸易限制的潜在影响； |
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与外汇汇率和利率波动相关的风险； |
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与法律程序相关的不确定性； |
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市场对公司新产品的接受度以及对这些新产品的竞争反应； |
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美国及适用的外国法律和监管要求的变更影响，包括税法、贸易和关税政策； |
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| ● | 与拟议的Enercon收购相关的意外困难、延误或支出，包括但不限于导致未能在预期时间内实现预期利益和协同效应的困难（如果可能的话）；由于拟议的Enercon收购的公告和待决，会对公司的目前计划、运营以及与客户、供应商、分销商、业务合作伙伴和监管机构的关系造成干扰；由于拟议的Enercon收购的公告和待决，员工保留可能遇到的困难；以及拟议的Enercon收购可能无法完成的可能性，包括但不限于未能满足成交条件； | |
| ● | 影响Enercon业务的市场和经济因素，包括在Enercon的航空航天与国防终端市场的需求趋势可能是周期性的，以及国防支出减少的影响。 |
前述清单列出了一些但不是所有可能影响我们实现任何前瞻性声明中描述的结果的因素，这些声明仅以本季度10-Q表格报告的日期或引用本报告的文件的日期为准。除非法律要求，我们不承担任何义务，并明确拒绝有责任公开发布对这些前瞻性声明的任何修正结果，或以其他方式更新任何前瞻性声明以反映在本季度10-Q表格报告日期之后发生的事件或情况，或者反映意外事件的发生。此外，我们无法评估每个因素对我们业务的影响，或者任何因素或多个因素的组合可能导致实际结果与本季度10-Q表格报告中任何前瞻性声明所包含的结果有实质性差异。公司的任何前瞻性声明仅基于我们目前可获得的信息，并且仅以其作出的日期为准。所有前瞻性声明均受到本节中包含的警示性声明的全面限定。
第一部分。 财务信息
简化合并资产负债表
(以千为单位，除每股和每股数据外)
(未经审计)
| 九月三十日 | 12月31日 | |||||||
| 2024 | 2023 | |||||||
| 资产 | ||||||||
| 流动资产： | ||||||||
| 现金及现金等价物 | $ | $ | ||||||
| 持有至到期的美国国债 | ||||||||
| 应收账款，减去$的信用损失 和 $, 分别 | ||||||||
| 存货 | ||||||||
| 未开票应收款 | ||||||||
| 待售资产 | ||||||||
| 其他流动资产 | ||||||||
| 总流动资产 | ||||||||
| 物业、厂房及设备，净值 | ||||||||
| 使用权资产 | ||||||||
| 关联方应收票据 | ||||||||
| 权益法投资 | ||||||||
| 无形资产，净值 | ||||||||
| 商誉，净额 | ||||||||
| 递延所得税 | ||||||||
| 其他资产 | ||||||||
| 总资产 | $ | $ | ||||||
| 负债及股东权益 | ||||||||
| 流动负债： | ||||||||
| 应付账款 | $ | $ | ||||||
| 应付费用 | ||||||||
| 经营租赁负债，流动 | ||||||||
| 其他流动负债 | ||||||||
| 总流动负债 | ||||||||
| 长期负债： | ||||||||
| 长期债务 | ||||||||
| 经营租赁负债，长期 | ||||||||
| 不确定税务负债 | ||||||||
| 最低养老金义务和未资助养老金负债 | ||||||||
| 递延所得税 | ||||||||
| 其他长期负债 | ||||||||
| 总负债 | ||||||||
| 承诺和或有事项（见附注15） | ||||||||
| 股东权益： | ||||||||
| 优先股， 面值， 授权股份; 已发行 | ||||||||
| A类普通股，面值$ 每股， 授权股份; 和 截至2024年9月30日和2023年12月31日的流通股数（扣除， 受限库存股） | ||||||||
| B类普通股，面值$ 每股， 授权股份; 和 截至2024年9月30日和2023年12月31日的流通股票数量（扣除 限制性库藏股） | ||||||||
| 库藏股（不受限制，包括 A类股份和 B类股份） | ( | ) | ( | ) | ||||
| 额外实收资本 | ||||||||
| 滚存收益 | ||||||||
| 累计其他综合损失 | ( | ) | ( | ) | ||||
| 股东权益总额 | ||||||||
| 总负债和股东权益 | $ | $ | ||||||
请参阅审计未完的简明合并基本报表附注。
简明合并经营报表
(以千为单位，除每股数据外)
(未经审计)
| 截至三个月 |
截至九个月 |
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| 九月三十日 |
九月三十日 |
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| 2024 |
2023 |
2024 |
2023 |
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| 净销售额 |
$ | $ | $ | $ | ||||||||||||
| 销售成本 |
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| 毛利润 |
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| 研发费用 |
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| 销售、一般和管理费用 |
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| 重组费用 |
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| 财产销售收益 |
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| 营业收入 |
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| 捷克共和国业务的销售收益 |
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| 利息支出 |
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| 利息收入 |
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| 其他（费用）收益，净 |
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| 税前收益 |
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| 所得税准备 |
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| 可分配给普通股东的净收益 |
$ | $ | $ | $ | ||||||||||||
| 每股净收益： |
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| A类普通股 - 基本及稀释 |
$ | $ | $ | $ | ||||||||||||
| B类普通股 - 基本及稀释 |
$ | $ | $ | $ | ||||||||||||
| 加权平均流通股数： |
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| A类普通股 - 基本及稀释 |
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| B类普通股 - 基本和稀释 |
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请参阅审计未完的简明合并基本报表附注。
贝尔熔断公司及其子公司
(以千为单位)
(未经审计)
| 截至三个月 | 截至九个月 | |||||||||||||||
| 九月三十日 | 九月三十日 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| 可分配给普通股东的净收益 | $ | $ | $ | $ | ||||||||||||
| 其他全面收益（损失）： | ||||||||||||||||
| 货币转换调整，税后为$, ($), $，和（$), 分别 | ( | ) | ( | ) | ||||||||||||
| 未实现（损失）利率掉期现金流对冲收益，税后为$ 在所有期间内 | ( | ) | ( | ) | ( | ) | ||||||||||
| 未实现持有（损失）可交易证券收益，税后为$ 在所有期间内 | ||||||||||||||||
| 未资助的SERP负债变化，税后为($), ($), ($), ($), 分别 | ||||||||||||||||
| 其他综合收益（损失） | ( | ) | ( | ) | ( | ) | ||||||||||
| 综合收益 | $ | $ | $ | $ | ||||||||||||
请参阅审计未完的简明合并基本报表附注。
简化合并股东权益表
(以千为单位，除每股数据外)
(未经审计)
| 累计 | ||||||||||||||||||||||||||||||||||||
| 其他 | A类 | B类 | 额外 | |||||||||||||||||||||||||||||||||
| 留存收益 | 综合的 | 普通股 | A类 | 普通股 | B类 | 财政部 | 实收资本 | |||||||||||||||||||||||||||||
| 总计 | 财报 | (损失) 收入 | 股票 | 股份数量 | 股票 | 股份数量 | 股票 | 资本 | ||||||||||||||||||||||||||||
| 截至2023年12月31日的余额 | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||||||
| 净收益 | - | - | ||||||||||||||||||||||||||||||||||
| 宣告分红派息： | ||||||||||||||||||||||||||||||||||||
| A类普通股，$/每股 | ( | ) | ( | ) | - | - | ||||||||||||||||||||||||||||||
| B类普通股，$/每股 | ( | ) | ( | ) | - | - | ||||||||||||||||||||||||||||||
| 限制普通股的发行 | ( | ) | ||||||||||||||||||||||||||||||||||
| 限制普通股的没收 | ( | ) | ||||||||||||||||||||||||||||||||||
| 普通股的购买 | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
| 外币翻译调整，税后净额为$ | ( | ) | ( | ) | - | - | ||||||||||||||||||||||||||||||
| 利率掉期现金流对冲的未实现收益，税后净额为$ | - | - | ||||||||||||||||||||||||||||||||||
| 可流通证券的未实现持有收益，税后净额为$ | - | - | ||||||||||||||||||||||||||||||||||
| 基于股票的补偿费用 | - | - | ||||||||||||||||||||||||||||||||||
| 未资助的SERP负债变动，税后净额为($) | - | - | ||||||||||||||||||||||||||||||||||
| 截至2024年3月31日的余额 | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
| 净收益 | - | - | ||||||||||||||||||||||||||||||||||
| 已宣告的分红派息： | ||||||||||||||||||||||||||||||||||||
| A类普通股，$/每股 | ( | ) | ( | ) | - | - | ||||||||||||||||||||||||||||||
| B类普通股，$/每股 | ( | ) | ( | ) | - | - | ||||||||||||||||||||||||||||||
| 限制普通股的没收 | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
| 普通股的购买 | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
| 外币换算调整，净税额为$ | ( | ) | ( | ) | - | - | ||||||||||||||||||||||||||||||
| 利率互换现金流对冲的未实现损失 | ( | ) | ( | ) | - | - | ||||||||||||||||||||||||||||||
| 基于股票的补偿费用 | - | - | ||||||||||||||||||||||||||||||||||
| 未融资SERP负债的变化，税后($) | - | - | ||||||||||||||||||||||||||||||||||
| 截至2024年6月30日的余额 | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
| 净收益 | - | - | ||||||||||||||||||||||||||||||||||
| 已宣告的分红派息： | ||||||||||||||||||||||||||||||||||||
| A类普通股，$/每股 | ( | ) | ( | ) | - | - | ||||||||||||||||||||||||||||||
| B类普通股，$/每股 | ( | ) | ( | ) | - | - | ||||||||||||||||||||||||||||||
| 普通股购买 | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
| 外币转换调整，税后金额为 $ | - | - | ||||||||||||||||||||||||||||||||||
| 利率互换现金流对冲的未实现损失 | ( | ) | ( | ) | - | - | ||||||||||||||||||||||||||||||
| 基于股票的补偿费用 | - | - | ||||||||||||||||||||||||||||||||||
| 未融资SERP负债变化，税后金额为 ($) | - | - | ||||||||||||||||||||||||||||||||||
| 截至2024年9月30日的余额 | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||||||
| 累计 | ||||||||||||||||||||||||||||||||||||
| 其他 | A类 | B类 | 额外 | |||||||||||||||||||||||||||||||||
| 留存收益 | 综合的 | 普通股 | A类 | 普通股 | B类 | 财政部 | 实收资本 | |||||||||||||||||||||||||||||
| 总计 | 财报 | (损失) 收入 | 股票 | 股份数量 | 股票 | 股份数量 | 股票 | 资本 | ||||||||||||||||||||||||||||
| 截至2022年12月31日的余额 | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||||||
| 净收益 | - | - | ||||||||||||||||||||||||||||||||||
| 宣布分红： | ||||||||||||||||||||||||||||||||||||
| A类普通股，$/每股 | ( | ) | ( | ) | - | - | ||||||||||||||||||||||||||||||
| B类普通股，$/每股 | ( | ) | ( | ) | - | - | ||||||||||||||||||||||||||||||
| 限制性普通股的没收 | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
| 外币换算调整，税后$ | - | - | ||||||||||||||||||||||||||||||||||
| 利率掉期现金流对冲的未实现损失，税后$ | ( | ) | ( | ) | - | - | ||||||||||||||||||||||||||||||
| 市场证券未实现持有收益，税后为$ | - | - | ||||||||||||||||||||||||||||||||||
| 基于股票的补偿费用 | - | - | ||||||||||||||||||||||||||||||||||
| 未资助的SERP负债变动，税后为($) | - | - | ||||||||||||||||||||||||||||||||||
| 截至2023年3月31日的余额 | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
| 净收益 | - | - | ||||||||||||||||||||||||||||||||||
| 已宣告分红派息: | ||||||||||||||||||||||||||||||||||||
| A类普通股，$/每股 | ( | ) | ( | ) | - | - | ||||||||||||||||||||||||||||||
| B类普通股，$/每股 | ( | ) | ( | ) | - | - | ||||||||||||||||||||||||||||||
| 限制性普通股的发行 | ( | ) | ||||||||||||||||||||||||||||||||||
| 限制性普通股的没收 | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
| 外币折算调整，税后($) | ( | ) | ( | ) | - | - | ||||||||||||||||||||||||||||||
| 利率掉期现金流对冲的未实现收益 | - | - | ||||||||||||||||||||||||||||||||||
| 基于股票的补偿费用 | - | - | ||||||||||||||||||||||||||||||||||
| 未拨款SERP负债的变动，税后($) | - | - | ||||||||||||||||||||||||||||||||||
| 截至2023年6月30日的余额 | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
| 净收益 | - | - | ||||||||||||||||||||||||||||||||||
| 已宣告分红派息: | ||||||||||||||||||||||||||||||||||||
| A类普通股，$/每股 | ( | ) | ( | ) | - | - | ||||||||||||||||||||||||||||||
| B类普通股，$/每股 | ( | ) | ( | ) | - | - | ||||||||||||||||||||||||||||||
| 限制普通股的没收 | - | ( | ) | - | ||||||||||||||||||||||||||||||||
| 外币翻译调整，税后为($) | ( | ) | ( | ) | - | - | ||||||||||||||||||||||||||||||
| 利率掉期现金流对冲的未实现收益 | - | - | ||||||||||||||||||||||||||||||||||
| 基于股票的补偿费用 | - | - | ||||||||||||||||||||||||||||||||||
| 未资金化的SERP负债变动，税后为($) | - | - | ||||||||||||||||||||||||||||||||||
| 截至2023年9月30日的余额 | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||||||
请参阅审计未完的简明合并基本报表附注。
简明合并现金流量表
(以千为单位)
(未经审计)
| 截至九个月 |
||||||||
| 九月三十日 |
||||||||
| 2024 |
2023 |
|||||||
| 经营活动产生的现金流： |
||||||||
| 净收益 |
$ | $ | ||||||
| 调整以将净收益与经营活动提供的净现金对账： |
||||||||
| 折旧和摊销 |
||||||||
| 基于股票的补偿 |
||||||||
| 递延融资费用摊销 |
||||||||
| 递延税惠 |
( |
) | ( |
) | ||||
| 外币重估的净未实现亏损 |
||||||||
| 财产销售收益 |
( |
) | ||||||
| 捷克共和国业务的销售收益 |
( |
) | ||||||
| 其他，净数 |
( |
) | ||||||
| 经营资产和负债的变动： |
||||||||
| 应收账款 |
||||||||
| 未开票应收款 |
||||||||
| 存货 |
||||||||
| 应付账款 |
( |
) | ( |
) | ||||
| 应付费用 |
( |
) | ||||||
| 应计重组成本 |
( |
) | ( |
) | ||||
| 应付所得税 |
||||||||
| 其他经营资产/负债，净值 |
( |
) | ( |
) | ||||
| 经营活动提供的净现金 |
||||||||
| 投资活动的现金流： |
||||||||
| 购买物业、厂房和设备 |
( |
) | ( |
) | ||||
| 购买持有至到期和可交易证券 |
( |
) | ||||||
| 持有至到期证券的收益 |
||||||||
| 对权益法投资的支付 |
( |
) | ||||||
| 对关联方应收票据的投资 |
( |
) | ( |
) | ||||
| 处置/出售固定资产的收益 |
||||||||
| 出售业务的收益 |
||||||||
| 投资活动中使用的净现金 |
( |
) | ( |
) | ||||
| 融资活动产生的现金流: |
||||||||
| 普通股股东分红派息 |
( |
) | ( |
) | ||||
| 延期融资成本 |
( |
) | ||||||
| 循环信用额度下的偿还 |
( |
) | ||||||
| 循环信用额度下的借款 |
||||||||
| 普通股的购买 |
( |
) | ||||||
| 融资活动所使用的净现金 |
( |
) | ( |
) | ||||
| 汇率变化对现金及现金等价物的影响 |
( |
) | ( |
) | ||||
| 现金及现金等价物净增加额 |
||||||||
| 现金及现金等价物 - 期初余额 |
||||||||
| 现金及现金等价物 - 期末 |
$ | $ | ||||||
| 附加信息： |
||||||||
| 期间支付的现金包括： |
||||||||
| 所得税，扣除收到的退款 |
$ | $ | ||||||
| 利息支付 |
$ | $ | ||||||
| 因租赁义务而获得的ROU资产 |
$ | $ | ||||||
请参阅审计未完的简明合并基本报表附注。
未经审计的简要合并基本报表附注
(未经审计)
| 1. | 当前报告的基础和会计政策 |
在此所述期间的合并资产负债表以及经营、综合收益、股东权益和现金流量表已由公司编制，且未经审计根据管理层的意见，所需的所有调整（仅包括正常的例行调整）均已做出，以公平地呈现合并的基本报表、经营成果和所有所报期间的现金流量。该结果为 三 和九个月期间 截至月份 2024年9月30日 是 不 不能完全说明全年预期的结果。这些简化合并基本报表应与Bel Fuse提交的年度报告中的合并基本报表及其附注一起阅读。 10 -k 截止于财年的 2023年12月31日的合并基本报表及附注中.
根据美国通用会计准则（“U.S. GAAP”）的规定，某些信息和脚注披露已从这些压缩合并基本报表中进行了简化或省略，符合美国证券交易委员会（“SEC”）的规则和规定，包括临时报告要求。编制符合U.S. GAAP的压缩合并基本报表要求管理层作出影响报告金额和在我们的压缩合并基本报表及附带说明中披露或有金额的估计和假设。实际结果可能与这些估计不同。
公司的重要会计政策汇总在注释中 1 包含在公司年度报告中的合并基本报表中 10-k文件，截止于 2023年12月31日的合并基本报表及附注中。 在此期间有 无 对这些会计政策进行重要变更 九个月期间 截至月份 2024年9月30日，除非在下面的“最近采纳的会计标准”中讨论，以及如下所述：
现金及现金等价物和投资
现金等价物包括在购买时原始到期为的短期投资，例如货币市场基金和存款证。 三 月或更短。每个美国金融机构的账户均由联邦存款保险公司（"FDIC"）投保，保险金额高达 $250,000. 我们所有的美国现金及现金等价物余额大部分超过FDIC保险限额。公司定期将其超额现金投资于货币市场基金和美国国债。公司的现金及现金等价物存放在高信用质量的金融机构。
公司持有的到期证券由美国国债组成。这些投资被归类为持有到期，因为公司有意图和能力持有这些投资直到其到期。持有到期证券将在接下来的 12 个月内到期。下表显示了持有到期证券的摊余成本、相关的未实现总收益和相关的公允价值。 2024年9月30日:
| 摊销成本 | 未实现的总收益 | 公允价值 | ||||||||||
| 持有至到期的美国国债 | $ | $ | $ | |||||||||
在确定公司持有到期的美国国债的公允价值时，公司使用了市场可比证券的水平 1 输入的市场价格作为截至 2024年9月30日.
投资
如果投资使我们能够对被投资方施加重大影响，我们将采用权益法会计来计算非市场化投资， 不 如果我们对被投资方的控股比例通常存在重大影响，通常是在投资方的投票股票中占有一定比例， 20% 和 50% 根据权益法会计，投资以初始成本列示，并根据后续的追加投资以及我们所占的收益或损失和分配进行调整。
在合并经营报表中，未合并附属公司的收益股权反映了我们对被投资单位净利润的比例份额，包括任何相关的附属于公司税。我们对被投资单位的其他综合收益（损失）的比例份额，扣除所得税后，记录在合并股东权益报表和合并综合收益报表中。一般来说，我们在未合并附属公司的股权投资等于我们最初的股权投资加上我们对这些实体投资后未分配收益的份额。
我们每年至少对权益法投资进行一次减值评估，或者在管理层判断是否有事件或情况变化表明投资的账面价值可能存在减值时进行评估， 可能 已出现非暂时性价值下降的情况。当出现价值损失的证据时，管理层将投资的预估公允价值与投资的账面价值进行比较，以判断是否发生了减值。如果预估的公允价值低于账面价值，并且管理层认为价值下降是非暂时性的，那么账面价值超过预估公允价值的部分将作为减值在基本报表中确认。请参见备注 2, "对Innolectric的投资，以下是我们对具体权益法投资的讨论。
当我们无法对被投资单位施加重大影响时，或者当我们的投资余额因我们的比例损失减少到 零 时，该投资按成本法进行会计处理。在成本法下，投资按照成本计量，仅在出现其他非暂时性公允价值下降、收益分配、追加投资，或在有序交易中相同证券的可观察价格变化时进行调整。
这些附注中包含的所有金额，除每股金额外，均以千为单位。
Recently Adopted Accounting Standards
在 2020年3月， 金融会计标准委员会（"FASB"）发布了会计标准更新（"ASU"） 2020-04, 参考利率改革（主题 848）：促进参考利率改革对基本报表的影响 （"ASU 2020-04"）。ASU 2020-04 提供了关于合同修改和对冲会计的临时自选指导，以减轻市场从伦敦银行同业拆借利率（“LIBOR”）向替代参考利率过渡的财务报告负担。在 2021年1月， FASB发布了ASU 2021-01, 明确了主题的范围， 848 并澄清了一些指引，作为FASB对全球参考利率活动的监控的一部分。该更新的指引在发布时生效，公司最初被允许选择自2022年12月31日起前瞻性地应用这些修正案。 2022年12月。 在 2022年12月， FASB发布了ASU 2022-06, 参考利率改革（话题 848），推迟话题的结束日期 848，这将延长公司选择应用修正案的日期至 2024年12月31日的合并基本报表中。 在 2023年1月， 公司修订了其信贷协议及相关的利率掉期协议，将参考利率从LIBOR过渡到担保隔夜融资利率（"SOFR"），自 2023年1月31日起生效。 与这些修订相关，公司采用了ASU 2020-04 在 首先 的季度 2023 并选择在指导原则内应用相关的实用便捷措施。对该指导方针的采用并 不 对公司的合并基本报表产生了重大影响。
在 2016年6月， FASB发布了ASU 2016-13, 金融工具 – 信用损失（主题 326）：金融工具上信用损失的测量 （“ASU 2016-13”), 如修订。新的指引扩展了实体在制定与其金融工具相关的预期信用损失估计时必须考虑的信息，并向美国通用会计准则增加了一种基于预期损失而非已发生损失的减值模型。 （ 2023年1月1日， 公司采用了ASU 2016-13. 采纳这一标准确实 不 对公司的合并基本报表产生了重大影响。
已发布但未生效的会计准则 未 尚未采用
在 2023年11月， 财务会计准则委员会发布了ASU2023-07, 部门报告（主题 280）：可报告部门披露的改进该准则要求公共实体在年度和中期报告中披露重要的板块费用和其他板块项目，并在中期报告中提供关于可报告板块的利润或损失和资产的所有披露，所有这些在年度中已经要求。此外，它要求公共实体披露首席运营决策者（CODM）的职位和名称。此ASU并没有 不 改变公共实体识别其运营板块、将其归类或应用定量阈值以判断其可报告板块的方式。新标准自 及在财政年度内的中期。 并允许提前采纳。公司计划在 允许提前采用。公共实体应当按照追溯原则，把本ASU中的修订适用于财务报表中所有往期期间。我们预计本ASU只会影响我们的披露， 无 对我们的经营业绩、现金流和财务状况产生影响。
在 2023年12月， FASB发布了ASU 2023-09, 所得税（主题 740）：对所得税披露的改进，该标准专注于税率调节和所缴纳的所得税。ASU 2023-09 要求公共商业实体（PBE）每年披露一个表格的税率调节，使用百分比和货币金额，按特定类别划分，某些调节项目进一步按照性质和管辖权划分，前提是这些项目超过特定的阈值。此外，所有实体都需要披露所缴纳的所得税，扣除已收到的退款，按联邦、州/地方和外国及其管辖权进行分列，如果金额至少为 5% 的所有所得税支付总额，扣除已收到的退款。对于PBE，新标准自 并允许提前采纳。公司计划在 允许提前采用。一个实体 可能 可以通过为截至 2025年12月31日 并继续为之前的期间提供未修订的披露，或者 可能 通过提供所有报告期间的修订披露来追溯应用修订。我们预计该ASU仅会影响我们的披露。 无 对我们的运营结果、现金流和财务控件的影响。
| 2. | 对INNOLECTRIC的投资 |
在 2023年2月1日， 该公司完成了一项非控股（-, 在满足1月 Tranche b 支付之后，向持有者支付，直到根据票据第2(e)条款支付的剩余
未偿本金和应计未支付的利息全额支付（“）对位于德国的innolectric AG（“innolectric”）的投资，交易金额为 大约$
这项被动投资建立了一个战略联盟，专注于新能源汽车（“EV”）车载电源电子设备，尤其是下一代快速充电科技。随着 无 产品重叠，这一关系扩展了Bel eMobility电力产品组合，进一步增强了Bel在该新兴领域的竞争优势。我们对innolectric的投资采用权益法进行会计处理，并且我们已确定innolectric投资是 不 一个变量利益实体（VIE）。此项投资的结果已包含在Bel的电源解决方案和保护部门，期间损失金额为$
关联方交易
公司不时向innolectric提供现金贷款，以资助其流动资金需求和进一步的业务发展。在此期间， 三 和九个月期间 截至月份 2024年9月30日公司向innolectric提供了增量贷款，金额为 百万 百万，分别。截止到 2024年9月30日 和 2023年12月31日的合并基本报表及附注中公司对innolectric的贷款总额为 大约$
| 3. | 收购与剥离 |
收购Enercon的协议
在 2024年9月18日， 公司签订了一份正式的分享购买协议，日期为 2024年9月19日（“Enercon购买协议”），与Enercon Technologies, Ltd.（“Enercon”）， FF3 Holdings, L.P.，作为卖方代表（“FF3”), 以及其他签署方（统称为 FF3， 各方为“卖方”，统称为“卖方”。《Enercon购买协议》规定Bel将从卖方手中以
捷克共和国子公司的撤资
在 2023年6月1日， 公司完成了对Bel Stewart s.r.o.的剥离，该公司是捷克共和国的前子公司，历史上报告在Bel的连接解决方案部门内。该业务以总价卖给了PEI Genesis，金额为$
包括在出售中的主要资产和负债的账面金额如下：
| 总计 | ||||
| 现金及现金等价物 | $ | |||
| 应收账款 | ||||
| 存货 | ||||
| 不动产、厂房和设备 | ||||
| 其他资产 | ||||
| 应付账款 | ( | ) | ||
| 应付费用 | ( | ) | ||
| 应付所得税 | ( | ) | ||
| 其他流动负债 | ( | ) | ||
| 其他长期负债 | ( | ) | ||
| 转让的总净资产 | ||||
| 收到的对价 | ||||
| 确认的销售收益 | $ | |||
| 4. | 营业收入 |
下表提供了按地理地域板块和销售渠道划分的营业收入信息，并包括了将该划分营业收入与我们可报告的 сегменты 对账的信息：
| 截至三个月 2024年9月30日 | 截至九个月 2024年9月30日 | |||||||||||||||||||||||||||||||
| 电源解决方案与保护 | 连接解决方案 | 磁性解决方案 | 合并 | 电源解决方案与保护 | 连接解决方案 | 磁性解决方案 | 合并 | |||||||||||||||||||||||||
| 按地域板块划分： | ||||||||||||||||||||||||||||||||
| 北美 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| 欧洲 | ||||||||||||||||||||||||||||||||
| 亚洲 | ||||||||||||||||||||||||||||||||
| $ | 48,680 | $ | 55,715 | $ | 19,243 | $ | 123,638 | $ | 167,478 | $ | 167,822 | $ | 49,633 | $ | 384,933 | |||||||||||||||||
| 按销售渠道: | ||||||||||||||||||||||||||||||||
| 直接面向客户 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| 通过分销 | ||||||||||||||||||||||||||||||||
| $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||
| 截至三个月 2023年9月30日 | 截至九个月 2023年9月30日 | |||||||||||||||||||||||||||||||
| 电源解决方案与保护 | 连接解决方案 | 磁性解决方案 | 合并 | 电源解决方案与保护 | 连接解决方案 | 磁性解决方案 | 合并 | |||||||||||||||||||||||||
| 按地域板块划分： | ||||||||||||||||||||||||||||||||
| 北美 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| 欧洲 | ||||||||||||||||||||||||||||||||
| 亚洲 | ||||||||||||||||||||||||||||||||
| $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||
| 按销售渠道： | ||||||||||||||||||||||||||||||||
| 直接面向客户 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| 通过分销 | ||||||||||||||||||||||||||||||||
| $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||
公司的合同资产和合同负债的余额为 2024年9月30日 和 2023年12月31日的合并基本报表及附注中 如下所示：
| 九月三十日 | 12月31日 | |||||||
| 2024 | 2023 | |||||||
| 合同资产 - 当前（未计账的应收款） | $ | $ | ||||||
| 合同负债 - 当前（递延营业收入） | $ | $ | ||||||
我们未开票应收款的余额变动来自于 2023年12月31日的合并基本报表及附注中 至 2024年9月30日 主要与公司履行合同的时间差有关（即当我们的产品运输到客户控制的中心时）以及公司根据客户合同条款可以向客户开具发票的时点（即当客户从客户控制的中心提取我们的产品时）。我们的递延营业收入余额在 2023年12月31日的合并基本报表及附注中 和 2024年9月30日主要与客户对发票的预付款项有关，这将在相关成品发货给客户的期间被记录为营业收入。
分配给未来义务的交易价格
截至目前，分配到剩余履约义务的总交易价格已全部满足， 不 与持续超过 2024年9月30日 年的合同相关 一个 金额为$
| 5. |
每股收益 |
下表列出了根据基本和稀释每普通股净收益的计算方法。 两个-按类法的计算。 三 和 九个月期间 截至月份 2024年9月30日 和 2023:
| 截至三个月 |
截至九个月 |
|||||||||||||||
| 九月三十日 |
九月三十日 |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| 分子: |
||||||||||||||||
| 净收益 |
$ | $ | $ | $ | ||||||||||||
| 减少的分红派息： |
||||||||||||||||
| A类 |
||||||||||||||||
| B类 |
||||||||||||||||
| 未分配收益 |
$ | $ | $ | $ | ||||||||||||
| 未分配收益分配： |
||||||||||||||||
| A类未分配收益 |
$ | $ | $ | $ | ||||||||||||
| B类未分配收益 |
||||||||||||||||
| 未分配收益总额 |
$ | $ | $ | $ | ||||||||||||
| 净收益分配： |
||||||||||||||||
| A类净收益 |
$ | $ | $ | $ | ||||||||||||
| B类净收益 |
||||||||||||||||
| 净收益 |
$ | $ | $ | $ | ||||||||||||
| 分母: |
||||||||||||||||
| 加权平均流通股数： |
||||||||||||||||
| A类 |
||||||||||||||||
| B类 |
||||||||||||||||
| 每股净收益： |
||||||||||||||||
| A类 |
$ | $ | $ | $ | ||||||||||||
| B类 |
$ | $ | $ | $ | ||||||||||||
| 6. | 公允价值计量 |
公平价值被定义为一种退出价格，代表在市场参与者之间基于资产或负债在计量日的最佳使用情况，出售资产或转移负债所收到的价格或支付的价格。实体需要使用一种公平价值层级，最大限度地利用可观察输入，并最小化不可观察输入的使用，以测量公平价值。 三 可用于测量公平价值的输入层级： 可能
级别 1 – 可观察的输入，如活跃市场中的报价市场价格；
级别 2 – 除了活跃市场中报价的价格外，其他直接或间接可观察的输入；以及
级别 3 – 对于几乎没有市场数据的不可观察输入， 无 因此，实体需要自行开发假设。
| 2024年9月30日 | ||||||||||||||||
| 账面价值 | 公允价值 | 现金及现金等价物 | 其他流动资产 | |||||||||||||
| 现金 | $ | $ | $ | $ | ||||||||||||
| 级别 1: | ||||||||||||||||
| 货币市场基金 | ||||||||||||||||
| 货币市场基金（Rabbi Trust） | ||||||||||||||||
| 小计 | ||||||||||||||||
| 等级 2: | ||||||||||||||||
| 定期存单和定期存款 | ||||||||||||||||
| 小计 | ||||||||||||||||
| 总计 | $ | $ | $ | $ | ||||||||||||
| 2023年12月31日 | ||||||||||||||||
| 账面价值 | 公允价值 | 现金及现金等价物 | 其他流动资产 | |||||||||||||
| 现金 | $ | $ | $ | $ | ||||||||||||
| 级别 1: | ||||||||||||||||
| 货币市场基金 | ||||||||||||||||
| 货币市场基金（Rabbi Trust） | ||||||||||||||||
| 小计 | ||||||||||||||||
| 等级 2: | ||||||||||||||||
| 定期存单和定期存款 | ||||||||||||||||
| 小计 | ||||||||||||||||
| 总计 | $ | $ | $ | $ | ||||||||||||
截至 2024年9月30日 以及 2023年12月31日的合并基本报表及附注中我们的可供出售证券主要由持有在rabbi Trust中的投资构成，这些投资旨在为公司的补充执行养老计划（“SERP”）义务提供资金。这些证券按公允价值计量，使用活跃市场中相同资产的报价（级别） 1输入，支付金额为$
在整个过程中， 2024 以及 2023公司签订了一系列外汇远期合同，其公允价值为（$
公司是一个当事方两个 利率期货掉期协议，具体内容请见附注10, "衍生工具和对冲活动“。利率期货掉期协议的公允价值是 $
截至的我们的衍生金融工具的公允价值及其在我们压缩合并资产负债表中的分类为： 2024年9月30日 以及 2023年12月31日的合并基本报表及附注中如下：
| 资产负债表分类 | 2024年9月30日 | 2023年12月31日 | |||||||
| 衍生资产： | |||||||||
| 外币远期合同： | |||||||||
| 指定为现金流套期保值 | 其他流动资产 | $ | $ | ||||||
| 未指定为套期工具 | 其他流动资产 | ||||||||
| 利率掉期协议： | |||||||||
| 指定为现金流套期保值 | 其他资产 | ||||||||
| 总衍生资产 | $ | $ | |||||||
| 衍生负债： | |||||||||
| 外币远期合约： | |||||||||
| 指定为现金流套期保值 | 其他流动负债 | $ | $ | ||||||
| 未指定为对冲工具 | 其他流动负债 | ||||||||
| 总衍生负债 | $ | $ | |||||||
公司 是否 不 拥有任何以公允价值按定期基础计量的资产，分类为等级 3, 并且有 无 在等级之间有转移 1, 级别 2 或层 3 在期间九个月期间 截至月份 2024年9月30日 或 2023年9月30日。 在此期间有 无 更改为t公司在持续或非持续基础上用于测量资产公允价值的估值技术在期间的改动九个月期间 截至月份 2024年9月30日 或 2023年9月30日.
截至记录日期，我们的普通股共有
公司持有其他金融工具，例如现金及现金等价物、应收账款、应付账款和应计费用， 不 这些工具以公平价值进行经常性计量，但由于其流动性或短期性质，记录的金额接近公平价值。公司的长期债务的公平价值通过基于当前可用的类似条款和到期的债务发行利率的现金流折现法进行估算。在 2024年9月30日 和 2023年12月31日的合并基本报表及附注中时，预计总债务的公平价值为$
非金融资产和负债，如商誉、无限期无形资产、长期资产及与根据innolectric投资协议相关的看跌/看涨期权的净负债，按公允价值进行非经常性计量。这些项目在触发事件发生时进行减值测试，或者在商誉的情况下，至少每年进行一次减值测试。根据公司的评估， 得出的结论是， 无 触发事件在九个月期间 截至月份 2024年9月30日 或 2023年9月30日.
| 7. |
存货 |
存货的组成如下：
| 九月三十日 |
12月31日 |
|||||||
| 2024 |
2023 |
|||||||
| 原材料 |
$ | $ | ||||||
| 在建工程 |
||||||||
| 成品 |
||||||||
| 存货 |
$ | $ | ||||||
| 8. | 不动产、厂房及设备 |
物业、厂房和设备包括以下内容：
| 九月三十日 | 12月31日 | |||||||
| 2024 | 2023 | |||||||
| 土地 | $ | $ | ||||||
| 建筑物及改善 | ||||||||
| 机械和设备 | ||||||||
| 建设中的工程 | ||||||||
| 累计折旧 | ( | ) | ( | ) | ||||
| 物业、厂房及设备，净值 | $ | $ | ||||||
折旧费用为 $
在 2024年9月30日总计$
| 9. |
应计费用 |
应计费用包括以下内容：
| 九月三十日 |
12月31日 |
|||||||
| 2024 |
2023 |
|||||||
| 薪资、奖金及相关福利 |
$ | $ | ||||||
| 递延收入 |
||||||||
| 应计重组成本 |
||||||||
| 销售佣金 |
||||||||
| 保修准备金 |
||||||||
| 其他 |
||||||||
| $ | $ | |||||||
保证金的变化发生在 九个月期间 截至月份 2024年9月30日 主要与发生的维修成本以及对现有保修的调整有关。 在这期间有 无 新的材料保修费用发生 在任何连续交易日后的业务日内( 九个月期间 截至月份 2024年9月30日.
重组活动：
与重组费用相关的活动和负债余额九个月期间 截至月份 2024年9月30日 如下所示：
| 截至九个月 |
||||||||||||||||
| 2024年9月30日 |
||||||||||||||||
| 责任在 |
Cash Payments |
责任在 |
||||||||||||||
| 12月31日 |
新 |
和其他 |
九月三十日 |
|||||||||||||
| 2023 |
费用 |
和解 |
2024 |
|||||||||||||
| 遣散费 |
$ | $ | $ | ( |
) | $ | ||||||||||
| 其他重组成本 |
||||||||||||||||
| 总计 |
$ | $ | $ | ( |
) | $ | ||||||||||
| 10. | 衍生工具和对冲活动 |
我们持有衍生金融工具的主要目的是在合适的情况下管理外币汇率风险和利率风险。我们在正常的业务过程中签订这些合同以降低风险，并且 不 用于投机目的。
外汇远期合约
根据我们的风险管理策略，我们定期使用外汇远期合同来管理我们因外汇汇率变化而导致的运营现金流波动的短期风险。这些现金流风险来自于我们预测的营业费用，主要是薪酬及相关费用，这些费用以非美元货币进行交易，最显著的是人民币和墨西哥比索。这些外汇远期合同通常具有超过 无 个月的到期时间，十二 尽管有时我们会执行一个超过十二 个月的合同，具体取决于潜在风险的性质。
截至目前，我们持有名义金额为的外币远期合约， $
利率互换协议
为了部分缓解与公司信贷协议下循环借款的利率期货相关的风险（如定义和描述的）， 票据 11, "债务"在以下内容中， 2021年11月， 我们与每个参与方签署了固定利率支付、浮动利率接收的利率期货互换协议。 两个 mu在我们之前所接受的跨国金融机构下， 2023年1月 下面所述的修订将参考利率从LIBOR转变为SOFR，（i）按固定利率支付利息
本 2021 交换被指定为会计目的的现金流对冲，因此，它们公允价值的变动在合并资产负债表中计入累积其他综合损失，并在对冲交易影响收益的期间重新分类到利息费用的损益表中。
衍生金融工具的公允价值
请参见注释 6, "公允价值计量" 关于截至公司衍生资产和负债的毛公允价值 2024年9月30日 和 2023年12月31日的合并基本报表及附注中.
现金流对冲关系中的衍生金融工具
指定为现金流量套期保值的衍生金融工具对 累计其他综合损失（"AOCL"）的以及关于合并的简明经营报表的影响 三 和 九个月期间 截至月份 2024年9月30日 和 2023如下：
| 截至三个月 | 截至九个月 | |||||||||||||||
| 九月三十日 | 九月三十日 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| 在其他综合收益中确认的净（损失）收益： | ||||||||||||||||
| 外汇远期合同 | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
| 利率互换协议 | ( | ) | ||||||||||||||
| $ | ( | ) | $ | $ | $ | ( | ) | |||||||||
| 从其他综合收益重新分类到合并经营报表中的净收益（损失）： | ||||||||||||||||
| 外汇远期合同 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| 利率互换协议 | ||||||||||||||||
| $ | $ | $ | $ | |||||||||||||
与外汇远期合同相关的损益被纳入综合收益附带的简明合并财务报表中的货币折算调整部分。 三 和九个月期间 结束 2024年9月30日 以及 2023.
衍生品 金融工具 未 指定为对冲工具
衍生金融工具的收益在我们的简明合并运营报表中确认为对冲工具 不 的对冲工具。 三 和 九个月期间 截至月份 2024年9月30日 和 2023如下：
| 截至三个月 | 截至九个月 | ||||||||||||||||
| 九月三十日 | 九月三十日 | ||||||||||||||||
| 合并经营报表中的分类 | 2024 | 2023 | 2024 | 2023 | |||||||||||||
| 外汇远期合同 | 其他（费用）收益，净 | $ | ( | ) | $ | $ | $ | ||||||||||
| $ | ( | ) | $ | $ | $ | ||||||||||||
| 11. | 债务 |
公司与KeyBank National Association签订了信贷与安防-半导体协议（经修订后的"现有信贷协议"）。
在 2024年9月30日 并且 2023年12月31日， 循环信贷的未偿借款总额为$
截至每个日期的利率为 2024年9月30日 和 2023年12月31日 百万，注册人
现有信贷协议包含常规的陈述和保证、契约以及违约事件。此外，现有信贷协议还包含财务契约，这些契约衡量（i）公司总负债在合并基础上的比率，减去所有无负担现金及现金等价物的总额，与公司合并EBITDA的金额（“杠杆比率”）；以及（ii）公司合并EBITDA与公司合并固定支出（“固定支出覆盖比率”）的比率。如果发生违约事件，现有信贷协议下的贷款方有权采取各种措施，包括加速到期金额以及作为担保债权人可以采取的所有措施。
在与Enercon购买协议同时签订的情况下，Bel签署了一封承诺函，日期为 九月 18, 2024 （以下简称“承诺函”）与KeyBank，美国银行（“BofA”）、BMO银行（“BMO”）、PNC银行，全国协会（“PNC”）（BofA、BMO和PNC以及KeyBank合称为“增量贷方”），KeyBanc资本市场公司（“KBCM”）、PNC资本市场有限责任公司（“PNC Capital”）以及美国银行证券公司（“BofA证券”；与KBCM、PNC Capital和增量贷方统称为“承诺方”）签署，该承诺函在满足某些条件以及公司与承诺方之间达成的条款的前提下，承诺将现有信贷协议的循环信贷额度的最大循环金额增加至总额
在满足其他条件和交付物的满意度的前提下，循环贷款额度的增加将取决于对现有信贷协议的修订或修订与重述的执行和交付。
与Bel签署承诺函相关，Bel签署了日期为 2024年9月18日(“第二修正案”）对现有信用协议（经第二修正案修改的“信用协议”）进行了修改。第二修正案对现有信用协议进行了某些修订，包括（i）将现有信用协议第 2.10（b）部分（关于“承诺增加”）中规定的上限增加
在 截止到2024年9月30日， 公司遵守了其债务契约，包括其最严格的契约，即固定费用覆盖比率。
| 12. | 所得税 |
公司未来期间的预估应税收入为 不 以法律实体为基础，因此中期的所得税费用为 不 以年度有效税率（"AETR"）方法计量。公司及其子公司在美国联邦辖区以及各州和外国辖区提交所得税申报表。公司是 无 不再受税务机构对之前年份的美国联邦审查的限制。 2020 并且在此之前的州考试中， 2017.关于外资子公司，公司是 无 不再受税务机关对之前年份的审查。 2013在亚洲的一般情况 2015 在欧洲。
As a result of the expiration of the statutes of limitations for specific jurisdictions, it is reasonably possible that the related unrecognized benefits for tax positions taken regarding previously filed tax returns may change materially from those recorded as liabilities for uncertain tax positions in the Company’s condensed consolidated financial statements at September 30, 2024. The Company’s liabilities for uncertain tax positions totaled $
The Company’s policy is to recognize interest and penalties related to uncertain tax positions as a component of the current provision for income taxes. During the nine months ended September 30, 2024 and 2023, the Company recognized $
| 13. | RETIREMENT, SAVINGS AND DEFERRED COMPENSATION PLANS |
The Company maintains the Bel Fuse Inc. Employees’ Savings Plan, a defined contribution plan that is intended to meet the applicable requirements for tax-qualification under sections 401(a) and (k) of the Internal Revenue Code of 1986, as amended. The expense for the three months ended September 30, 2024 and 2023 amounted to $
The Company also maintains a Nonqualified Deferred Compensation Plan (the "DCP"). With certain exceptions, the Company's contributions to the DCP are discretionary and become fully vested by the participants upon reaching age
The Company's subsidiaries in Asia have a retirement fund covering substantially all of their Hong Kong based full-time employees. The expense for the three months ended September 30, 2024 and 2023 amounted to less than $
The Company maintains a SERP, which is designed to provide a limited group of key management and other key employees of the Company with supplemental retirement and death benefits. As discussed in Note 6 above, the Company has investments in a rabbi trust which are intended to fund the obligations of the SERP.
The components of SERP expense are as follows:
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Service cost | $ | $ | $ | $ | ||||||||||||
| Interest cost | ||||||||||||||||
| Net amortization | ||||||||||||||||
| Net periodic benefit cost | $ | $ | $ | $ | ||||||||||||
The service cost component of net benefit cost is presented within cost of sales, research and development costs or selling, general and administrative expense on the accompanying condensed consolidated statements of operations, in accordance with where compensation cost for the related associate is reported. All other components of net benefit cost, including interest cost and net amortization noted above, are presented within other (expense) income, net in the accompanying condensed consolidated statements of operations.
The following amounts are recognized net of tax in accumulated other comprehensive loss:
| September 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Prior service cost | $ | $ | ||||||
| Net loss | ( | ) | ( | ) | ||||
| $ | ( | ) | $ | ( | ) | |||
| 14. |
ACCUMULATED OTHER COMPREHENSIVE LOSS |
The components of accumulated other comprehensive loss at September 30, 2024 and December 31, 2023 are summarized below:
| September 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Foreign currency translation adjustment, net of taxes of ($) at September 30, 2024 and ($) at December 31, 2023 | $ | ( | ) | $ | ( | ) | ||
| Unrealized gains on interest rate swap cash flow hedge, net of taxes of $ at September 30, 2024 and $ at December 31, 2023 | ||||||||
| Unrealized holding gains on marketable securities, net of taxes of ($) at September 30, 2024 and ($) at December 31, 2023 | ||||||||
| Unfunded SERP liability, net of taxes of $ at September 30, 2024 and $ at December 31, 2023 | ||||||||
| Accumulated other comprehensive loss | $ | ( | ) | $ | ( | ) | ||
Changes in accumulated other comprehensive loss by component during the nine months ended September 30, 2024 are as set forth below. All amounts are net of tax:
| Foreign Currency |
Unrealized Gains on |
Unrealized Holding |
|||||||||||||||||||
| Translation |
Interest Rate Swap |
Gains on |
Unfunded |
||||||||||||||||||
| Adjustment |
Cash Flow Hedge |
Marketable Securities |
SERP Liability |
Total |
|||||||||||||||||
| Balance at December 31, 2023 |
$ | ) | $ | $ | $ | $ | ) | ||||||||||||||
| Other comprehensive (loss) income before reclassifications |
|||||||||||||||||||||
| Amount reclassified from accumulated other comprehensive loss |
( |
) | ( |
) | (a) |
( |
) | ||||||||||||||
| Net current period other comprehensive (loss) income |
( |
) | ( |
) | |||||||||||||||||
| Balance at September 30, 2024 |
$ | ) | $ | $ | $ | $ | ) | ||||||||||||||
| (a) This reclassification relates to the amortization of prior service costs and gains/losses associated with the Company's SERP Plan. This expense is reflected in other (expense) income, net on the accompanying condensed consolidated statements of operations. |
| 15. | COMMITMENTS AND CONTINGENCIES |
Legal Proceedings
The Company is party to a number of legal actions and claims, none of which individually or in the aggregate, in the opinion of management, are expected to have a material adverse effect on the Company's consolidated results of operations or consolidated financial position.
On June 23, 2021, a patent infringement lawsuit styled Bel Power Solutions, Inc. v. Monolithic Power Systems, Inc., Case Number 6:21cv00655, was filed in the United States District Court for the Western District of Texas (Waco Division) by Bel Power Solutions, Inc. against Monolithic Power Systems, Inc. ("MPS") for infringement of various patents directed towards systems, methods and articles of manufacture that provide a substantial improvement in power control for circuits, including novel and unique point-of-load regulators. On July 27, 2023, the Western District of Texas court filed an Order granting MPS’s motion for summary judgment of non-infringement. The Court’s memorandum and opinion is forthcoming. The Company is evaluating its options for appeal.
In connection with the Company's 2014 acquisition of the Power-One Power Solutions business ("Power Solutions") of ABB Ltd., there is an ongoing claim by the Arezzo Revenue Agency in Italy concerning certain tax matters related to what was then Power-One Asia Pacific Electronics Shenzhen Co. Ltd. (now Bel Power Solutions Asia Pacific Electronics Shenzhen Co. Ltd, or “BPS China”) for the years 2004 to 2006. In September 2012, the Tax Court of Arezzo ruled in favor of BPS China and cancelled the claim. In February 2013, the Arezzo Revenue Agency filed an appeal of the Tax Court’s ruling. The hearing of the appeal was held on October 2, 2014. On October 13, 2014, BPS China was informed of the Regional Tax Commission of Florence ruling which was in favor of the Arezzo Revenue Agency and against BPS China. An appeal was filed on July 18, 2015 before the Regional Tax Commission of Florence and rejected. On December 5, 2016, the Arezzo Revenue Agency filed an appeal with the Supreme Court and BPS China filed a counter-appeal on January 4, 2017. The Supreme Court rendered a judgment against BPS China in March 2024. BPS China filed an appeal in July 2024. The estimated liability related to this matter is approximately $
In connection with the Company's 2021 acquisition of EOS Power ("EOS"), there is an ongoing claim asserted with respect to EOS by the Principal Commissioner of Customs (Preventive), Mumbai related to customs duties and imposed fines and penalties dating back to 1994. The original demand was in the amount of approximately$
The Company is not a party to any other legal proceeding, the adverse outcome of which is likely to have a material adverse effect on the Company's consolidated financial condition or consolidated results of operations.
Agreement to Acquire Enercon
On September 18, 2024, the Company entered into a definitive Share Purchase Agreement, dated as of September 19, 2024 (the “Enercon Purchase Agreement”), with Enercon Technologies, Ltd. (“Enercon”), FF3 Holdings, L.P., for itself and as Sellers’ Representative, and the other seller parties signatory thereto. See Note 3, “Acquisition and Divestiture”.
| 16. |
The Company operates in industry with reportable operating segments, which represent the Company's product groups, consisting of Power Solutions and Protection, Connectivity Solutions and Magnetic Solutions. The primary criteria by which financial performance is evaluated and resources are allocated are revenue and gross profit. The following is a summary of key financial data:
| Three Months Ended September 30, 2024 | ||||||||||||||||||||
| Power Solutions | Connectivity | Magnetic |
| |||||||||||||||||
| and Protection | Solutions | Solutions | Corporate | Total | ||||||||||||||||
| Revenue | $ | $ | $ | $ | $ | |||||||||||||||
| Gross Profit | ( | ) | ||||||||||||||||||
| Gross Profit % | % | % | % | nm | % | |||||||||||||||
| Three Months Ended September 30, 2023 | ||||||||||||||||||||
| Power Solutions | Connectivity | Magnetic |
| |||||||||||||||||
| and Protection | Solutions | Solutions | Corporate | Total | ||||||||||||||||
| Revenue | $ | $ | $ | $ | $ | |||||||||||||||
| Gross Profit | ( | ) | ||||||||||||||||||
| Gross Profit % | % | % | % | nm | % | |||||||||||||||
| Nine Months Ended September 30, 2024 | ||||||||||||||||||||
| Power Solutions | Connectivity | Magnetic |
| |||||||||||||||||
| and Protection | Solutions | Solutions | Corporate | Total | ||||||||||||||||
| Revenue |
|
|
| $ - |
| |||||||||||||||
| Gross Profit | | | |
| | |||||||||||||||
| Gross Profit % | | | | nm | | |||||||||||||||
| Nine Months Ended September 30, 2023 | ||||||||||||||||||||
| Power Solutions | Connectivity | Magnetic |
| |||||||||||||||||
| and Protection | Solutions | Solutions | Corporate | Total | ||||||||||||||||
| Revenue | $ | $ | $ | $ | $ | |||||||||||||||
| Gross Profit | ) | |||||||||||||||||||
| Gross Profit % | % | % | % | nm | % | |||||||||||||||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation
The information in this Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with the Company’s condensed consolidated financial statements and the related notes set forth in Item 1 of Part I of this Quarterly Report on Form 10-Q, our MD&A set forth in Item 7 of Part II of our 2023 Annual Report on Form 10-K and our consolidated financial statements and related notes set forth in Item 8 of Part II of our 2023 Annual Report on Form 10-K. See Part II, Item 1A, “Risk Factors,” below and “Cautionary Notice Regarding Forward-Looking Information,” above, and the information referenced therein, for a description of risks that we face and important factors that we believe could cause actual results to differ materially from those in our Forward-Looking Statements. All amounts and percentages are approximate due to rounding and all dollars in the text are in millions, except per share amounts or where otherwise noted. When we cross-reference to a “Note,” we are referring to our “Notes to Condensed Consolidated Financial Statements” included in Part I, Item 1, of this Quarterly Report on Form 10-Q, unless the context indicates otherwise. All amounts noted within the tables are in thousands and amounts and percentages are approximate due to rounding.
Overview
Our Company
We design, manufacture and market a broad array of products that power, protect and connect electronic circuits. These products are primarily used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation and eMobility industries. Our portfolio of products also finds application in the automotive, medical and consumer electronics markets.
We operate through three product group segments. In the nine months ended September 30, 2024, 43% of our revenues were derived from Power Solutions and Protection, 44% from our Connectivity Solutions and 13% from our Magnetic Solutions operating segment.
Our operating expenses are driven principally by the cost of labor where the factories that we use are located, the cost of the materials that we use and our ability to effectively and efficiently manage overhead costs. As labor and material costs vary by product line and region, any significant shift in product mix can have an associated impact on our costs of sales. Costs are recorded as incurred for all products manufactured. Such amounts are determined based upon the estimated stage of production and include materials, labor cost and fringes and related allocations of factory overhead. Our products are manufactured at various facilities in the United States, Mexico, Dominican Republic, United Kingdom, Slovakia, India and the People’s Republic of China (PRC).
We have little visibility into the ordering habits of our customers and we can be subjected to large and unpredictable variations in demand for our products. Accordingly, we must continually recruit and train new workers to replace those lost to attrition and be able to address peaks in demand that may occur from time to time. These recruiting and training efforts and related inefficiencies, and overtime required in order to meet any increase in demand, can add volatility to the labor costs incurred by us.
Recent Developments – Agreement to Acquire Enercon
On September 18, 2024, we entered into a definitive Share Purchase Agreement, dated as of September 19, 2024 (the “Enercon Purchase Agreement”), with Enercon Technologies, Ltd. (“Enercon”), FF3 Holdings, L.P., for itself and as Sellers’ Representative (“FF3”), and the other seller parties signatory thereto (together with FF3, each a “Seller” and collectively, the “Sellers”). The Enercon Purchase Agreement provides for our acquisition of a majority stake in Enercon from the Sellers based on an enterprise value of $400 million. Pursuant to the terms and conditions of the Enercon Purchase Agreement, we will acquire an 80% stake upfront for $320 million in cash at the closing (subject to customary adjustments), plus up to $10 million of potential earnout payments for the 2025-2026 period, with the intent to purchase the remaining 20% by early 2027 based on a put-call mechanism to be set forth in shareholders’ agreement to be entered into at closing and subject to the terms and pricing prescribed thereby, which include future EBITDA performance. Enercon is a leading supplier of highly customized power conversion and networking solutions to aerospace and defense markets globally, providing robust and reliable solutions across air, land and sea applications. This acquisition will allow us to extend our product portfolio supporting the aerospace and defense markets to include power solutions, with clear potential cross selling opportunities in the future. Enercon is based in Netanya, Israel with additional facilities in New Hampshire, U.S. and Haryana, India. The transaction is expected to close in the fourth quarter of 2024 subject to satisfaction of customary closing conditions. The preceding discussion of the proposed Enercon acquisition contains Forward-Looking Statements. See "Cautionary Notice Regarding Forward-Looking Information."
Key Factors Affecting our Business
We believe that in addition to recent global inflationary pressures on the costs of goods and services in general, and ongoing conflicts/political unrest including in or near the countries in which Bel operates, the key factors affecting and/or potentially affecting our results for the nine months ended September 30, 2024 and/or future results include the following:
| • |
Revenues – Our revenues in the first nine months of 2024 were down $114.9 million, or 23.0% as compared to the same period of 2023. The decrease was driven by our Power Solutions and Protection and Magnetics Solutions segments and largely related to lower demand from our networking customers and distribution partners as we believe they continue to work through inventory on hand. These decreases were offset in part by a modest increase in sales at our Connectivity Solutions group, driven by increased sales through our distribution channels and aerospace and defense end markets. |
| • |
Backlog – Our backlog of orders amounted to $287.4 million at September 30, 2024, a decrease of $85.7 million, or 23%, from December 31, 2023. From year-end 2023 to September 30, 2024, we saw a 33% decrease in the backlog for our Power Solutions and Protection business, a decline in backlog of 17% in our Magnetic Solutions business and a 5% decrease in backlog level at our Connectivity Solutions business. While order volumes in general have been lower in recent quarters, we saw the highest booking level in the third quarter of 2024 since the third quarter of 2023. |
| • |
Product Mix – Material and labor costs vary by product line and any significant shift in product mix between higher- and lower-margin product lines will have a corresponding impact on our gross margin percentage. In general, our Connectivity products have historically had the highest contribution margins of our three product groups given the harsh environment and high-reliability nature of these products and the end markets they serve. Our Power products have a higher-cost bill of materials and are impacted to a greater extent by changes in material costs. As our Magnetic Solutions products are more labor-intensive in nature, margins on these products are impacted to a greater extent by minimum and market-based wage increases in the PRC and fluctuations in foreign exchange rates between the U.S. Dollar and the Chinese Renminbi. Fluctuations in revenue volume among our product groups will have a corresponding impact on our profit margins. See "Results of Operations - Summary by Operating Segment - Revenue and Gross Margin" below for further details. |
| • |
Pricing and Availability of Materials – There has been some stabilization of raw materials pricing since late 2023; however overall our cost of materials remains elevated. Supply constraints have eased related to components that constitute raw materials in our manufacturing processes, particularly with capacitors, resistors and copper. Lead times are still above normal though suppliers are now meeting the agreed delivery deadlines with more regularity. In addition, COVID remains a potential supply continuity risk due to the unknown nature of future outbreaks including potential further variants. Additionally, our access to parts or materials, and our ability to contract with suppliers utilized previously, may be limited or prohibited from time to time by trade restrictions or other legal or regulatory enactments. We anticipate continued downward pressure on our Power sales given trade restrictions on one of our former suppliers previously utilized for this segment, which had historically supported approximately $3 to $4 million per quarter of our sales into the consumer end market. We are currently evaluating alternative manufacturing options for the components previously supplied by this manufacturer. To the extent our suppliers in the PRC are negatively impacted by new or amended regulations, any such negative implications could adversely impact our supply chain, including in the form of increased costs, disruptions, shortages or unavailability of product or component parts, and/or other deleterious consequences, which could materially adversely affect our business and operating results. The preceding discussion of "Pricing and Availability of Materials" contains Forward-Looking Statements. See "Cautionary Notice Regarding Forward-Looking Information." |
| • |
Labor Costs – Labor costs represented 7.8% of revenue during the first nine months of 2024 as compared to 6.5% of revenue during the same period of 2023. The period-over-period increase in labor costs as a percentage of sales for the first nine months of 2024 was largely impacted by the retention of a certain level of direct labor associates within our Magnetic Solutions business to accommodate the anticipated rebound within this segment. In addition, effective January 1, 2024, the statutory minimum wage rate in Mexico was increased by 20%, impacting labor costs at our Reynosa and Cananea, Mexico factories. We estimate the additional cost associated with this increase will be approximately $1.4 million annually. Also effective January 1, 2024, minimum wage increases which went into effect at our factory in Slovakia are expected to result in approximately $0.3 million of higher labor costs at that facility in 2024 as compared to 2023. This and any future increases in minimum wage rates will have an unfavorable impact on Bel's profit margins. The preceding five sentences represent Forward-Looking Statements. See "Cautionary Notice Regarding Forward-Looking Information." |
| • | Inflationary Pressures - Inflationary pressures could continue to result in higher input costs, including those related to our raw materials, labor, freight, utilities, healthcare and other expenses. Our future operating results will depend, in part, on our continued ability to manage these fluctuations through pricing actions, cost savings initiatives and sourcing decisions. The preceding two sentences contain Forward-Looking Statements. See "Cautionary Notice Regarding Forward-Looking Information." |
| • |
Restructuring – In late 2023, we initiated a restructuring initiative within our Connectivity segment related to the transition of certain manufacturing from our Glen Rock, Pennsylvania facility to other existing Bel sites (the “Glen Rock initiative”). During the third quarter of 2024, we initiated a restructuring initiative within our Power segment related to the transition of our fuse manufacturing to other existing sites (the "Fuse initiative"). In addition to the Fuse initiative and the Glen Rock initiative, the Company also implemented headcount reductions within our Magnetics segment in response to the lower sales volume in recent quarters within that segment. In connection with these initiatives, the Company incurred $1.1 million and $1.8 million during the three and nine months ended September 30, 2024, respectively, which primarily consisted of severance costs. The Glen Rock initiative is expected to be complete by the end of 2024 at a total cost to implement of $0.6 million (almost all of which was incurred during the nine months ended September 30, 2024). Annual cost savings related to the Glen Rock initiative are estimated at $2.5 million (of this initial annualized amount, $1.5 million is expected to be realized throughout 2024, with the incremental $1.0 million to be realized in 2025). The Fuse initiative is expected to be complete by the end of the first quarter of 2025 at a total cost to implement of $4.2 million (of which $0.2 million was incurred in the third quarter of 2024, $2.1 million is expected to be incurred in the fourth quarter of 2024, with the balance to be incurred in early 2025). Annual cost savings related to the Fuse initiative are estimated at $1.5 million and are expected to be realized beginning in the second quarter of 2025. The Company will continue to review its operations to optimize the business, which may result in restructuring costs being recognized in future periods. The preceding statements about restructuring initiatives, including our projections and estimates, represent Forward-Looking Statements. See "Cautionary Notice Regarding Forward-Looking Information." |
| • |
Impact of Foreign Currency – As further described below, during the nine months ended September 30, 2024, labor and overhead costs were $0.7 million lower than the corresponding 2023 period primarily due to a favorable foreign exchange environment involving the Chinese Renminbi, as compared to the prior year period. We realized foreign exchange transactional loss of $1.3 million during the nine months ended September 30, 2024, due to the fluctuation of the spot rates of certain currencies in effect when translating our balance sheet accounts at September 30, 2024 versus those in effect at December 31, 2023. Since we are a U.S. domiciled company, we translate our foreign currency-denominated financial results into U.S. dollars. Due to the changes in the value of foreign currencies relative to the U.S. dollar, translating our financial results and the revaluation of certain intercompany as well as third-party transactions to and from foreign currencies to U.S. dollars may result in a favorable or unfavorable impact to our consolidated statements of operations and cash flows. We were favorably impacted by transactional foreign exchange gains in the first nine months of 2024 due to the depreciation of the Chinese Renminbi against the U.S. dollar, as compared to exchange rates in effect during 2023. We have significant manufacturing operations located in in the PRC where labor and overhead costs are paid in local currency. As a result, the U.S. Dollar equivalent costs of these operations were approximately $0.7 million lower in the PRC, in the nine months ended September 30, 2024 as compared to the comparable period in 2023. We monitor changes in foreign currencies and have historically implemented foreign currency forward contracts, and may continue to implement pricing actions to help mitigate the impact that changes in foreign currencies may have on our consolidated operating results. The preceding sentence represents a Forward-Looking Statement. See "Cautionary Notice Regarding Forward-Looking Information." |
| • |
Effective Tax Rate – Our effective tax rate will fluctuate based on the geographic regions in which our pretax profits are earned. Of the geographic regions in which we operate, the U.S. and Europe’s tax rates are generally equivalent; and Asia has the lowest tax rates of our three geographical regions. See Note 12, “Income Taxes”. |
Results of Operations - Summary by Operating Segment
Revenue and Gross Margin
Our revenue and gross margin by operating segment for the three and nine months ended September 30, 2024 and 2023 were as follows:
| Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||||||||||
| September 30, |
September 30, |
|||||||||||||||||||||||||||||||
| Revenue |
Gross Margin |
Revenue |
Gross Margin |
|||||||||||||||||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
|||||||||||||||||||||||||
| Power solutions and protection |
$ | 48,680 | $ | 74,862 | 39.4 | % | 41.7 | % | $ | 167,478 | $ | 245,134 | 43.2 | % | 37.5 | % | ||||||||||||||||
| Connectivity solutions |
55,715 | 51,771 | 36.6 | % | 35.8 | % | 167,822 | 160,010 | 37.3 | % | 35.8 | % | ||||||||||||||||||||
| Magnetic solutions |
19,243 | 32,049 | 27.3 | % | 22.0 | % | 49,633 | 94,659 | 23.9 | % | 23.0 | % | ||||||||||||||||||||
| $ | 123,638 | $ | 158,682 | 36.1 | % | 35.0 | % | $ | 384,933 | $ | 499,803 | 38.0 | % | 32.9 | % | |||||||||||||||||
Power Solutions and Protection:
Sales of our Power Solutions and Protection products were lower by $26.2 million (35.0%) and $77.7 million (31.7%) during the three and nine months ended September 30, 2024, respectively, as compared to the same periods of 2023. The decrease resulted primarily from a decline in sales of our power products into networking applications of $15.9 million (52.0%) during the third quarter of 2024 and $49.1 million (49.1%) during the nine months ended September 30, 2024 as compared to the same periods of 2023. Sales of our CUI products were down by $6.1 million (50.5%) and $17.2 million (41.7%) during the three and nine months ended September 30, 2024, respectively, as compared to the same periods of 2023. Sales of products into the eMobility end market decreased by $3.3 million and $9.0 million, and our circuit protection products declined by $0.2 million and $2.3 million during the third quarter and nine months ended September 30, 2024, respectively, compared to the corresponding periods of 2023. These areas of decline were partially offset by a $2.6 million and $9.1 million increase in sales of our rail products during the third quarter and nine months ended September 30, 2024, respectively, compared to the same periods of 2023.
Our gross margin for the Power segment declined in the third quarter of 2024 compared to the same period of 2023 due to lower sales and an unfavorable shift in product mix. This decline was result of lower sales volume, partially offset with the favorable exchange rates with the Chinese Renminbi versus the U.S. dollar.
Connectivity Solutions:
Sales of our Connectivity Solutions products increased by $3.9 million (7.6%) and $7.8 million (4.9%) during the three and nine months ended September 30, 2024, respectively, as compared to the same period of 2023. This increase was primarily due to increased volume of Connectivity Solutions products sold through our distribution channels, providing incremental growth of $1.2 million (6.1%) during the third quarter and $4.3 million (7.3%) during the nine-month period ended September 30, 2024, as compared to the same periods of 2023. Sales of Connectivity products into the military end market grew $0.5 million (1.5%) during the nine months ended September 30, 2024, as compared to the same period of 2023. Gross margins for the 2024 periods presented above were favorably impacted by pricing actions on certain contract renewals and operational efficiencies from the facility consolidations completed in 2023, partially offset by higher wage rates in Mexico and an unfavorable fluctuation in exchange rates between the U.S. dollar and Mexican peso in the 2024 periods as compared to the 2023 periods presented.
Magnetic Solutions:
Sales of our Magnetic Solutions products declined by $12.8 million (40.0%) and $45.0 million (47.6%) during the three and nine months ended September 30, 2024, respectively, as compared to the same periods of 2023. Reduced demand for our Magnetic Solutions products from our networking customers and through our distribution channels has been the primary driver of the lower demand as we believe by these customers continue to work through inventory on hand. The lower sales volume, partially offset by favorable exchange rates with the Chinese Renminbi versus the U.S. dollar, were the primary drivers of gross margin reduction for this product group during the first nine months of 2024 as compared to the same period of 2023.
Cost of Sales
Cost of sales as a percentage of revenue for the three and nine months ended September 30, 2024 and 2023 consisted of the following:
| Three Months Ended |
Nine Months Ended |
|||||||||||||||
| September 30, |
September 30, |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| Material costs |
31.7 | % | 40.5 | % | 29.2 | % | 41.8 | % | ||||||||
| Labor costs |
7.8 | % | 6.2 | % | 7.8 | % | 6.5 | % | ||||||||
| Other expenses |
24.4 | % | 18.3 | % | 25.0 | % | 18.8 | % | ||||||||
| Total cost of sales |
63.9 | % | 65.0 | % | 62.0 | % | 67.1 | % | ||||||||
Material costs as a percentage of sales during the three and nine months ended September 30, 2024 were lower compared to the same periods of 2023, due to a shift in production mix, the stabilization of raw material pricing, shorter lead times, and better procurement efforts. Labor costs in the 2024 periods as a percentage of sales have increased compared to the each of the third quarter and first nine months of 2023 due to lower sales volume, a shift in product mix, an unfavorable fluctuation of the Mexican Peso exchange rate versus the U.S. Dollar in 2024 compared to the previous year, and the increase in statutory minimum wage rate in Mexico. This increase in labor cost was partially offset by lower labor costs in China due to the favorable fluctuation in the Chinese Renminbi exchange rate versus the U.S. Dollar.
The other expenses noted in the table above include fixed cost items such as support labor and fringe, depreciation and amortization, and facility costs (rent, utilities, insurance). The percentage of other expenses as a cost of sales has increased during the three and nine months ended September 30, 2024 relative to the corresponding 2023 periods, due to the lower sales volume in the 2024 periods presented as compared to the same periods of 2023.
Research and Development ("R&D") Expense
R&D expense remained relatively steady and amounted to $5.4 million and $5.3 million during the three months ended September 30, 2024 and 2023, respectively and $16.7 million and $16.5 million for the nine-month periods ended September 30, 2024 and 2023, respectively.
Selling, General and Administrative Expense (“SG&A”)
SG&A expenses were $26.7 million for the third quarter of 2024, an increase from $23.7 million in the third quarter of 2023. This increase in SG&A was largely the result of a $4.3 million increase in professional fees related to the acquisition of Enercon expected to close in the fourth quarter of 2024. Salaries and fringe benefits also increased by $0.7 million and there was an increase of $0.4 million in a variety of other expenses, including amortization, advertising and travel. These increases were largely offset by lower variable organizational compensation by $0.7 million and lower business promotion expenses of $0.3 million in the third quarter of 2024 as compared to the third quarter of 2023 due to the lower sales base in the 2024 period.
SG&A expenses were $75.8 million for the first nine months of 2024, up from $74.1 million in the same period of 2023. This increase in SG&A was largely the result of a $4.3 million increase in professional fees related to the acquisition of Enercon, offset by a $3.7 million decline in legal fees largely due to costs associated with the aforementioned MPS patent infringement lawsuit further described in Note 15, "Commitments and Contingencies", which did not recur in the first nine months of 2024. Salaries and fringe benefits increased by of $2.8 million and there was also an increase of $0.4 million in a variety of other expenses, including amortization, advertising and travel in the first nine months of 2024 as compared to same period of 2023. These increases were offset by a decline of $1.3 million in commissions and a $0.5 million decline in business promotion expenses during the nine months ended September 30 2024, as compared to the same period of 2023 due to the lower sales base in the 2024 period.
Other (Expense) Income, Net
Other (expense) income, net was ($1.3) million and ($0.1) million for the three months ended September 30, 2024 and 2023, respectively. The year-over-year change within this line item was largely driven by the market fluctuations in our SERP investments which resulted in a gain of $0.5 million and loss of $0.5 million during the three months ended September 30, 2024 and 2023, respectively. The Company also recorded losses of $0.2 million and $0.3 million associated with its investment in innolectric during the third quarters of 2024 and 2023, respectively. We also realized foreign exchange transactional losses of $1.6 million during the three-month period ended September 30, 2024 versus a gain of $0.2 million for the same period in 2023 due to the fluctuation of the spot rates of certain currencies in effect when translating our balance sheet accounts at September 30, versus those in effect at June 30, of each year.
Other (expense) income, net was less than $0.1 million and ($0.3) million for the nine months ended September 30, 2024 and 2023, respectively. The year-over-year change within this line item was largely driven by the market fluctuations in our SERP investments which resulted in a gain of $1.3 million during the nine months ended September 30, 2024 and a gain of $0.3 million during the same period in 2023. The Company also recorded $0.3 million of loss associated with its investment in innolectric during the nine months ended September 30, 2024. We also realized foreign exchange transactional losses of $1.3 million during the nine months ended September 30, 2024, due to the fluctuation of the spot rates of certain currencies in effect when translating our balance sheet accounts at September 30, 2024 versus those in effect at December 31, 2023. This compares to foreign exchange transactional losses of $0.1 million recorded during the nine months ended September 30, 2023.
Provision for Income Taxes
The Company’s effective tax rate will fluctuate based on the geographic regions in which the pretax profits are earned. Of the jurisdictions in which the Company operates, the U.S. and Europe’s tax rates are generally equivalent; and Asia has the lowest tax rates of the Company’s three geographic regions. See Note 12, “Income Taxes”.
The provision for income taxes for the three months ended September 30, 2024 and 2023 was $3.1 million and $4.3 million, respectively. The Company’s earnings before income taxes for the three months ended September 30, 2024, were $12.6 million lower when compared with the same period in 2023, primarily attributable to a decrease in income from all of the regions. The Company’s effective tax rate was 27.8% and 18.2% for the three months ended September 30, 2024 and 2023, respectively. The change in the effective tax rate during the three months ended September 30, 2024 as compared to the same period in 2023, is primarily attributable to an increase in tax expense relating to prior period accruals, as well as a decrease in the tax benefit relating to the reversal of uncertain tax positions resulting from the expiration of certain statute of limitations. See Note 12, “Income Taxes”.
The provision for income taxes for the nine months ended September 30, 2024 and 2023 was $11.7 million and $8.0 million, respectively. The Company’s earnings before income taxes for the nine months ended September 30, 2024, were approximately $15.4 million lower when compared with the same period in 2023, primarily attributable to decrease in income from the North America and Asia regions, partially offset by an increase in the Europe region. The Company’s effective tax rate was 21.4% and 11.5% for the nine months ended September 30, 2024 and 2023, respectively. The change in the effective tax rate during the nine months ended September 30, 2024 as compared to the same period in 2023, is primarily attributable to an increase in tax expense relating to valuation allowances and prior period accruals as well as a decrease in the tax benefit relating to the reversal of uncertain tax positions resulting from the expiration of certain statute of limitations. See Note 12, “Income Taxes”.
Liquidity and Capital Resources
Our principal sources of liquidity include $134.3 million of cash and cash equivalents at September 30, 2024, $29.5 million of held to maturity investments in U.S. Treasury securities, cash provided by operating activities and borrowings available under our credit facility. We expect to use this liquidity for operating expenses, investments in working capital, capital expenditures, interest, taxes, dividends, purchases of common stock under our Repurchase Program, and debt obligations and other long-term liabilities. Our liquidity may also be utilized to fund potential acquisitions in future periods. We believe that our current liquidity position and future cash flows from operations will enable us to fund our operations, both in the next twelve months and in the longer term.
Cash Flow Summary
During the nine months ended September 30, 2024, our cash and cash equivalents increased by $44.9 million. This increase was primarily due to the following:
| • | net cash provided by operating activities of $65.7 million; and | |
| • | proceeds from held to maturity securities of $139.3 million; partially offset by: | |
| • | purchases of held to maturity and marketable securities of $131.3 million; | |
| • | purchases of common stock under our Repurchase Program of $16.1 million; | |
| • | purchases of property, plant and equipment of $7.9 million; and | |
| • | dividend payments of $2.5 million. |
During the nine months ended September 30, 2024, our accounts receivable decreased by $8.4 million due to lower sales volume in the third quarter. Days sales outstanding (DSO) was 57 days at September 30, 2024 and 55 days at December 31, 2023. Inventory decreased by $12.3 million at September 30, 2024 compared to December 31, 2023, as component availability has started to ease and we have worked to consume our inventory on hand. Inventory turns were 2.6 at September 30, 2024 as compared to 3.1 at December 31, 2023.
Cash and cash equivalents, held to maturity U.S. Treasury securities and accounts receivable comprised approximately 41.0% and 36.9% of our total assets at September 30, 2024 and at December 31, 2023, respectively. Our current ratio (i.e., the ratio of current assets to current liabilities) was4.0 to 1 at September 30, 2024 and 3.4 to 1 at December 31, 2023. At September 30, 2024 and December 31, 2023, $50.5 million and $40.9 million, respectively (or 38% and 46%, respectively), of our cash and cash equivalents was held by our foreign subsidiaries. We repatriated $11 million from outside of the U.S. during the nine months ended September 30, 2024. We continue to analyze our global working capital and cash requirements and the potential tax liabilities attributable to further repatriation, and we have yet to make any further determination regarding repatriation of funds from outside the U.S. to fund our U.S. operations in the future. In the event these funds were needed for our U.S. operations, we would be required to accrue and pay U.S. state taxes and any applicable foreign withholding taxes to repatriate these funds.
Future Cash Requirements
We expect foreseeable liquidity and capital resource requirements in the ordinary course to be met through existing cash and cash equivalents and anticipated cash flows from operations, as well as borrowings available under our revolving credit facility, if needed. Our material cash requirements arising in the normal course of business are outlined in Item 7A, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Other than cash requirements arising from the Enercon acquisition pursuant to the Enercon Purchase Agreement expected to close in the fourth quarter of 2024 as described in the immediately following paragraph, there were no material changes to our future cash requirements during the nine months ended September 30, 2024.
In September 2024, the Company entered into the Enercon Purchase Agreement, as further described above in "Recent Developments - Agreement to Acquire Enercon". The transaction is expected to close during the fourth quarter of 2024 subject to satisfaction of customary closing conditions. The Company anticipates funding the acquisition of the 80% stake in Enercon through approximately $80 million of cash on hand and $240 million of incremental borrowings under its credit facility. Pursuant to the terms and conditions of the Enercon Purchase Agreement, there is $10 million of potential earnout payments for the 2025-2026 period, with the intent to purchase the remaining 20% by early 2027 based on a put-call mechanism to be set forth in shareholders’ agreement to be entered into at closing and subject to the terms and pricing prescribed thereby, which include future EBITDA performance.
Credit Facility
In September 2021, we entered into the Existing Credit Agreement, as further described in Note 11, "Debt". During January 2023, we amended the Existing Credit Agreement and related interest rate swap agreements to transition the reference rate from LIBOR to a Secured Overnight Financing Rate ("SOFR") effective January 31, 2023. The Existing Credit Agreement contains customary representations and warranties, covenants and events of default. In addition, the Existing Credit Agreement contains financial covenants that measure (i) the ratio of our total funded indebtedness, on a consolidated basis, less the aggregate amount of all unencumbered cash and cash equivalents, to the amount of our consolidated EBITDA (“Leverage Ratio”) and (ii) the ratio of the amount of our consolidated EBITDA to our consolidated fixed charges (“Fixed Charge Coverage Ratio”). If an event of default occurs, the lenders under the Existing Credit Agreement would be entitled to take various actions, including the acceleration of amounts due thereunder and all actions permitted to be taken by a secured creditor.
Concurrently with the entry into the Enercon Purchase Agreement, Bel entered into a Commitment Letter, dated September 18, 2024, as further described in Note 11, to increase the Maximum Revolving Amount available under the Existing Credit Agreement’s revolving credit facility by an aggregate of $150 million to an aggregate amount of $325 million.
Among the satisfaction of other conditions and deliverables, the completion of the Revolving Facility Increase will be subject to the execution and delivery of an amendment to, or an amendment and restatement of, the Existing Credit Agreement.
In connection with Bel’s entry into the Commitment Letter, on September 18, 2024, Bel entered into a Second Amendment which makes certain amendments to the Existing Credit Agreement, including (i) increasing the cap set forth in Section 2.10(b) (governing “Increase in Commitment”) of the Existing Credit Agreement by $50 million to $150 million, (ii) adding certain customary provisions permitting the use of revolving loans on a limited conditions basis to finance the Enercon acquisition, and (iii) permitting the Enercon acquisition under the Credit Agreement.
At September 30, 2024, we were in compliance with our debt covenants, including the most restrictive covenant, the Fixed Charge Coverage Ratio. The unused credit available under the credit facility at September 30, 2024 was $115.0 million, all of which we had the ability to borrow without violating our Leverage Ratio covenant based on our existing consolidated EBITDA.
Critical Accounting Policies and Estimates
Our condensed consolidated financial statements include certain amounts that are based on management's best estimates and judgments. We base our estimates on historical experience and on various other assumptions, including in some cases future projections, that are believed to be reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Different assumptions and judgments could change the estimates used in the preparation of the condensed consolidated financial statements, which, in turn, could change the results from those reported. Management evaluates its estimates, assumptions and judgments on an ongoing basis.
Based on the above, we have determined that our most critical accounting estimates are those related to business combinations, inventory valuation, goodwill and other indefinite-lived intangible assets, and those related to our pension benefit obligations. For a detailed discussion of our critical accounting estimates, refer to “Critical Accounting Estimates” in Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. There have been no material changes in our critical accounting policies, judgments and estimates, including assumptions or estimation techniques utilized, as compared to those disclosed in our 2023 Annual Report on Form 10-K.
Recent Accounting Pronouncements
The discussion of new financial accounting standards applicable to our Company is incorporated herein by reference to Note 1, “Basis of Presentation and Accounting Policies”.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
The Company is exposed to market risk primarily from changes in foreign currency exchange rates and changes in interest rates associated with its long-term debt. Under the Company’s risk management strategy, the Company periodically uses foreign currency forward contracts to manage its short-term exposures to fluctuations in operational cash flows resulting from changes in foreign currency exchange rates. To partially mitigate risks associated with the variable interest rates on revolver borrowings under the Company's credit agreement (see Note 11, “Debt”, to the condensed consolidated financial statements herein, and Note 11, “Debt”, to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023), the Company maintains two pay-fixed, receive-variable interest rate swap agreements with two multinational financial institutions (see Note 10, “Derivative Instruments and Hedging Activities”, to the condensed consolidated financial statements herein, and Note 13, “Derivative Instruments and Hedging Activities”, to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023). The Company’s primary objective for holding derivative financial instruments is to manage foreign currency exchange rate risk and interest rate risk, when deemed appropriate. The Company enters into these contracts in the normal course of business to mitigate risks and not for speculative purposes. There have not been any material changes with regard to market risk during the nine months ended September 30, 2024. Refer to Item 7A, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 for further discussion of market risks.
Item 4. Controls and Procedures
Disclosure controls and procedures: As of the end of the period covered by this report, the Company carried out an evaluation, with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures pursuant to Securities Exchange Act Rule 13a-15. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report.
Changes in internal controls over financial reporting: There has not been any change in the Company’s internal control over financial reporting that occurred during the Company’s last fiscal quarter to which this report relates that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
PART II. Other Information
The information called for by this Item is incorporated herein by reference to Note 15, "Commitments and Contingencies" of the Company’s Condensed Consolidated Financial Statements, under “Legal Proceedings”, as set forth in Part I, Item 1 of this Quarterly Report on Form 10-Q. We are also involved in various other legal actions incidental to our business. We believe, after consulting with counsel, that the disposition of these other legal proceedings and matters will not have a material effect on our condensed consolidated financial condition or results of operations.
The risk factors described below, supplement the risk factors previously disclosed in Part I, Item 1A, "Risk Factors," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The risk factors set forth below, together with the risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, should be carefully considered before making an investment decision. These are the risk factors that we consider to be the most significant risk factors, but they are not the only risk factors that should be considered in making an investment decision. There have been no material changes to the risk factors disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, except as supplemented by the risk factors described below. This Quarterly Report on Form 10-Q also contains Forward-Looking Statements that involve risks and uncertainties. See the "Cautionary Notice Regarding Forward-Looking Information," above. Our business, consolidated financial condition and consolidated results of operations could be materially adversely affected by any of the risk factors, assumptions and uncertainties described, under "Cautionary Notice Regarding Forward-Looking Information" or with respect to specific Forward-Looking Statements presented herein. The trading price of our securities could decline due to any of these risks, and investors in our securities may lose all or part of their investment. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also materially adversely affect our business in the future. Except as required by the federal securities law, we undertake no obligation to update or revise any risk factor, whether as a result of new information, future events or otherwise.
The Enercon Purchase Agreement includes a number of closing conditions and, if these conditions are not satisfied, the Enercon Purchase Agreement may be terminated in accordance with its terms and the acquisition may not be completed. We may fail to consummate the proposed Enercon acquisition, may not consummate the proposed acquisition on expected terms, or may not achieve the expected benefits.
In September 2024, we entered into the definitive Enercon Purchase Agreement with the Sellers to acquire an 80% stake in Enercon upfront at the closing, with the intent to purchase the remaining 20% interest in Enercon by early 2027 based on a put-call mechanism to be set forth in shareholders’ agreement to be entered into at closing. It is currently anticipated that the acquisition of the 80% interest pursuant to the Enercon Purchase Agreement will be completed in the fourth quarter of 2024. However, completion of the proposed Enercon acquisition is subject to satisfaction of customary closing conditions, including applicable regulatory approvals. Until all such closing conditions are satisfied or waived, the possible timing and likelihood of completion of the proposed Enercon acquisition are uncertain, and, accordingly, there can be no assurance that the Enercon acquisition will be completed on the expected terms, on the anticipated timing or at all. The Enercon Purchase Agreement may also be terminated prior to the consummation of the transaction by the mutual written consent of Bel and the Sellers and in certain other circumstances, including a termination right by either Bel or the Sellers, subject to certain terms and conditions, if the Closing has not occurred on or prior to the date six months following execution of the Enercon Purchase Agreement. We may experience unanticipated difficulties, delays, and expenditures relating to the proposed Enercon acquisition. Any delay in consummation of the Enercon acquisition may result in greater transaction costs and professional fees incurred by us. In addition, even if the proposed acquisition of the majority 80% stake in Enercon is completed pursuant to the Enercon Purchase Agreement, there can be no assurances that we will complete the acquisition of the remaining 20% interest in Enercon by early 2027 as intended.
Our efforts to complete the Enercon acquisition could cause substantial disruptions in our business. A substantial amount of our management’s attention is being directed towards the completion of the Enercon acquisition and such distraction could affect our management’s ability to service our existing business, pursue other business opportunities or could otherwise adversely affect our business. The announcement, pendency, and efforts to implement the acquisition may disrupt our and Enercon’s plans, operations and relationships with customers, suppliers, distributors, business partners and regulators, and can cause potential difficulties in employee retention.
If consummated, the success of the Enercon acquisition will depend, in significant part, on our ability to successfully integrate the acquired business, establish and maintain good relationships with new and existing customers, suppliers, and other business partners, grow the revenue of the consolidated company and realize the anticipated strategic benefits and synergies. The combination of businesses is a complex, costly and time-consuming process. As a result, we expect to devote significant management attention and resources prior to closing to prepare for integration, and we expect to devote significant management attention and resources post-closing to integrate the business practices and operations. The integration process may disrupt the businesses and, if implemented ineffectively, would impair the realization of the full expected benefits. The anticipated opportunities in terms of potential growth and expansion offered by, and the anticipated benefits of, the Enercon acquisition may not be realized fully or at all, or may take longer to realize than we expect. Actual operating, strategic and revenue opportunities, if achieved at all, may be less significant than we expect or may take longer to achieve than anticipated. If we are not able to achieve these objectives and realize the anticipated benefits and synergies expected from the Enercon acquisition within a reasonable time, our business, financial condition and operating results may be materially adversely affected.
We may face risks related to conducting business in Israel following the Enercon acquisition, as conditions in Israel may materially and adversely affect Enercon’s business and as a result the business of consolidated Bel.
If we successfully complete the acquisition of a majority stake in Enercon, we may be subject to, and possibly adversely affected by, risks related to conducting business in Israel. Enercon, the target of our proposed Enercon acquisition in which we will acquire an upfront 80% stake at the closing expected to occur in fourth quarter of 2024 and intend to acquire the remaining 20% interest by early 2027, is based in Netanya, Israel with additional facilities in New Hampshire, U.S. and Haryana, India. Enercon has approximately 300 employees located in Israel.
Companies based in or operating in, or having a significant number of employees located in Israel, may be more susceptible to political and economic instability. Political, economic and military conditions in Israel may directly affect their business. Since the establishment of the State of Israel in 1948, a number of armed conflicts have occurred between Israel and its neighbors. In October 2023, Hamas conducted several terrorist attacks in Israel resulting in ongoing war across the country, forcing the closure of many businesses in Israel for several days. In addition, there continue to be hostilities between Israel and Hezbollah in Lebanon and Hamas in the Gaza Strip, both of which resulted in rockets being fired into Israel, causing casualties and disruption of economic activities. In early 2023, there were a number of changes proposed to the political system in Israel by the current government which, if implemented as planned, could lead to large-scale protests and additional uncertainty, negatively impacting the operating environment in Israel. Uprisings in various countries in the Middle East over the last few years have also affected the political stability of those countries and have led to a decline in the regional security situation. Such instability may also lead to deterioration in the political and trade relationships that exist between Israel and these countries. Any armed conflicts, terrorist activities or political instability involving Israel or other countries in the region, as well as any interruption or curtailment of trade between Israel and its present trading partners, could adversely affect the business, results of operations, financial condition, cash flows and prospects of Enercon, and of consolidated Bel following the closing of the Enercon acquisition. In addition, any of these events or circumstances involving Israel or the region prior to the closing of the Enercon acquisition may delay or prevent the closing of the proposed Enercon acquisition.
A number of countries, principally in the Middle East, still restrict doing business with Israel and Israeli companies, and additional countries may impose restrictions on doing business with Israel and Israeli companies if hostilities in Israel or political instability in the region continue or intensify. In addition, there have been increased efforts by activists to cause companies and consumers to boycott Israeli goods based on policies promulgated by the Israeli Government. Such boycotts, particularly if they become more widespread, may adversely impact Enercon’s business or our business.
The operations of the Enercon business could also be disrupted by the absence for significant periods of one or more key employees or a significant number of other employees because of military service. Enercon’s employees in Israel may be obligated to perform military reserve duty, and in certain emergency circumstances, employees may be called to immediate and unlimited active duty in the Israeli armed forces.
Demand in Enercon’s end markets can be cyclical, impacting the demand for its products, and Enercon’s business could be materially adversely affected by reductions in defense spending.
Enercon, in which we intend to acquire a majority stake pursuant to the Enercon Purchase Agreement, is a leading supplier of highly customized power conversion and networking solutions to aerospace and defense markets globally. For full fiscal year 2024, an estimated 93% and 7% of Enercon’s projected revenue is attributable to the defense and aerospace end markets, respectively. Demand in Enercon’s end-use markets can be sensitive to general economic conditions, competitive influences, and fluctuations in inventory levels throughout the supply chain. Enercon’s sales are sensitive to the market conditions present in the industries in which the ultimate consumers of its products operate, which in some cases have been highly cyclical and subject to substantial downturns.
As a result of the high correlation to government spending on defense and budgeting, Enercon has experienced, and in the future, it may experience, significant fluctuations in sales and results of operations with respect to a substantial portion of our total product offering, and such fluctuations could be material and adverse to our overall financial condition, results of operations and liquidity.
Because certain of Enercon’s products are used in a variety of land, air and sea defense applications, Enercon derives a substantial portion of its revenue from the defense industry. For full fiscal year 2024, an estimated 93% of Enercon’s projected revenue is derived from customers in the defense industry. Although many of the programs under which Enercon sells products to prime U.S. and Israeli government contractors extend several years, they are subject to annual funding through governmental appropriations. While spending authorizations for defense-related programs by the U.S. and Israeli governments have increased in recent years, these spending levels may not be sustainable and could significantly decline. Future levels of expenditures, authorizations, and appropriations for programs Enercon supports may decrease or shift to programs in areas where Enercon does not currently provide services. Changes in spending authorizations, appropriations, and budgetary priorities could also occur due to a shift in the number, and intensity, of potential and ongoing conflicts, shifts in spending priorities from national defense as a result of competing demands for government funds, or other factors. Enercon’s business prospects, financial condition or operating results could be materially harmed among other causes by the following: 1) budgetary constraints affecting U.S. and/or Israeli government spending generally, or specific departments or agencies in particular, and changes in available funding; 2) changes in government programs or requirements; and 3) a prolonged government shutdown and other potential delays in the appropriations process.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Issuer Purchases of Equity Securities (1)
The following table summarizes the activity related to repurchases of our equity securities during the quarter ended September 30, 2024 pursuant to the Repurchase Program (as defined below):
| Period |
Total Number of Shares Purchased |
Average Price Paid per Share |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (dollars in thousands) |
||||
| July 1, 2024 – July 31, 2024 |
5,726 (Class A) 20,921 (Class B) |
$83.41 (Class A) $66.92 (Class B) |
5,726 (Class A) 20,921 (Class B) |
$2,093 (Class A) $6,854 (Class B) |
||||
| August 1, 2024 – August 31, 2024 | - (Class A) - (Class B) |
$- (Class A) $- (Class B) |
- (Class A) - (Class B) |
$2,093 (Class A) $6,854 (Class B) |
||||
| September 1, 2024 – September 30, 2024 | - (Class A) - (Class B) |
$- (Class A) $- (Class B) |
- (Class A) - (Class B) |
$2,093 (Class A) $6,854 (Class B) |
||||
| Total | 5,726 (Class A) 20,921 (Class B) |
$83.41 (Class A) $66.92 (Class B) |
5,726 (Class A) 20,921 (Class B) |
$2,093 (Class A) $6,854 (Class B) |
||||
(1) On February 21, 2024, the Company’s Board of Directors authorized and the Company publicly announced a $25.0 million share repurchase program (the “Repurchase Program”). The Repurchase Program authorizes the repurchase of up to $25.0 million of shares of outstanding Class A Common Stock and Class B Common Stock. The aggregate $25.0 million available for repurchases under the Repurchase Program has been suballocated for purchases of Class A shares and Class B shares in portions of $4.0 million and $21.0 million, respectively, prorated to take into account the number of outstanding shares of each respective class. Shares of Common Stock may be repurchased pursuant to the Repurchase Program in open market, privately negotiated or block transactions or otherwise from time to time, depending upon market conditions and other factors, and in accordance with applicable law and regulations. The Repurchase Program has no expiration date. The Repurchase Program does not obligate the Company to repurchase any dollar amount or number of shares, and the Repurchase Program may be suspended or terminated at any time.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Mine Safety Disclosures
Not applicable.
Rule 10b5-1 Trading Arrangements and Non-Rule 10b5-1 Trading Arrangements
During the fiscal quarter ended September 30, 2024, of our officers or directors, as those terms are defined in Rule 16a-1(f), adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as those terms are defined in Item 408 of Regulation S-K.
Other Information
The discussion captioned “Overview – Key Factors Affecting our Business – Restructuring,” as set forth in Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” above, is hereby incorporated by reference into this Part II, Item 5, of this Quarterly Report on Form 10-Q.
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| Exhibits: |
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| 2.1 | Share Purchase Agreement, dated as of September 19, 2024, by and among Bel Fuse Inc., Enercon Technologies Ltd., and the Shareholders of Enercon Technologies Ltd.† (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the SEC on September 24, 2024). |
| 10.1 | |
| 10.2 | |
| 10.3 | |
| 31.1* |
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| 31.2* |
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| 32.1** |
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| 32.2** |
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| 101.INS* |
Inline XBRL Instance Document (the Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) |
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| 101.SCH* |
Inline XBRL Taxonomy Extension Schema Document |
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| 101.CAL* |
Inline XBRL Taxonomy Extension Calculation Linkbase Document |
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| 101.DEF* |
Inline XBRL Taxonomy Extension Definition Linkbase Document |
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| 101.LAB* |
Inline XBRL Taxonomy Extension Label Linkbase Document |
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| 101.PRE* |
Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibits 101) |
* Filed herewith.
** Submitted herewith.
† Annexes, schedules and/or exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company hereby agrees to furnish supplementally a copy of any omitted attachment to the SEC on a confidential basis upon request.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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BEL FUSE INC. |
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| (Registrant) | ||
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| Date: October 29, 2024 | By: |
/s/ Daniel Bernstein |
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Daniel Bernstein |
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President and Chief Executive Officer (Principal Executive Officer) |
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| Date: October 29, 2024 | By: |
/s/ Farouq Tuweiq |
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Farouq Tuweiq |
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Chief Financial Officer (Principal Financial Officer) |