On Friday, Shares of Bel Fuse Inc. (NASDAQ:BELFB)gained0.83% to $17.05. The share price is trading in a range of 15.63 - 17.16 (Price in Dollars). The stock exchanged hands with 116,257shares contrast to its average daily volume of 39,640shares.Bel Fuse Inc.declared preliminary financial results for the first quarter of 2016.
First Quarter 2016 Results
Net Sales
Net sales reduced 14.70% to $121.20 million in the first quarter of 2016, contrast with $142.0 million in the first quarter of 2015, mainly because of lower sales of Bel’s power solutions and protection products, in addition to certain magnetic and connectivity products.
Selling, General and Administrative Expenses (SG&A)
SG&A expenses were $17.7 million, or 14.6% of net sales in the first quarter of 2016 as contrast with $17.60 million, or 12.4% of net sales, in the first quarter of 2015. In the first quarter of 2016, the company recorded a benefit of $2.8 million for certain value-added and business tax items recorded in connection with the acquisition of Power Solutions. In addition, professional fees depreciated $0.6 million, mainly because of the expiration of certain IT transition services agreements in the first half of 2015. These items were partially offset by foreign currency exchange losses on intercompany receivables and payables of $0.3 million in the first quarter of 2016 as contrast with foreign currency exchange gains of $4.6 million in the first quarter of 2015.
Goodwill and Other Intangible Assets Impairment
As part of company’s interim review for impairment of thier reporting units, they identified an impairment within their North America, Europe and Asia reporting units because of lower-than-anticipated growth rates from challenging macroeconomic conditions. As a result, the companyhas recorded a non-cash, pre-tax charge for impairment of goodwill and certain intangible assets of $108.6 million, ($106.50 million, net of taxes and $8.62 impact to EPS per Class A share and $9.05 impact to EPS per Class B share). This estimated amount is subject to finalization and will be finalized in the second quarter of 2016. BELFB do not expect this impairment to result in any future cash expenditures, impact liquidity, affect the ongoing business or financial performance of its reporting units, or impact compliance with its debt covenants.
Operating Loss
Operating loss was $103.40 million in the first quarter of 2016 as contrast with operating income of $9.0 million in the first quarter of 2015.
Income Taxes
Income tax benefit was $4.90 million, or 4.60% in the first quarter of 2016 contrast with an income tax provision of $2.0 million, or 26.80% in the first quarter of 2015.
Net Earnings
Net loss was $100.70 million in the first quarter of 2016 as contrast with net earnings of $5.30 million in the first quarter of 2015.
Balance Sheet Data
As of March 31, 2016, working capital was $159.30 million, counting $69.0 million of cash and cash equivalents with a current ratio of 2.6-to-1. Total debt was $161.90 million. In comparison, as of December 31, 2015, working capital was $158.60 million, counting $85.0 million of cash and cash equivalents with a current ratio of 2.3-to-1 and total debt of $183.5 million.
