Bel Fuse Inc (BELFB) Announces Q3 2023 Earnings: A Closer Look at the Numbers
Net sales of $158.7 million, a decrease from $177.7 million in Q3-22
Gross profit margin of 35.0%, an increase from 29.0% in Q3-22
Net earnings of $19.4 million, an increase from $16.5 million in Q3-22
Backlog level of $408 million at September 30, 2023
Bel Fuse Inc (NASDAQ:BELFB) released its preliminary financial results for the third quarter of 2023 on October 25, 2023. Despite a decrease in net sales from $177.7 million in Q3-22 to $158.7 million in Q3-23, the company demonstrated financial discipline, leading to impressive results.
Financial Performance and Challenges
Bel Fuse Inc (NASDAQ:BELFB) reported a gross profit margin of 35.0%, up from 29.0% in Q3-22. The company also reported net earnings of $19.4 million, an increase from $16.5 million in Q3-22. Adjusted EBITDA was $29.9 million (18.8% of sales), up from $27.3 million (15.4% of sales) in Q3-22. The company's backlog level stood at $408 million at the end of September 2023.
Company Commentary
President and CEO, Daniel Bernstein, commented on the results, stating,
We are pleased with our improved financial performance this quarter on a sales base that was in line with our expectations. Our diversity in products and end markets, coupled with ongoing cost management and strategic revenue discipline, enabled us to achieve higher gross margin dollars on a lower sales base."
Financial Tables and Analysis
The company's Condensed Consolidated Statements of Operations showed net sales of $158.7 million, a decrease from $177.7 million in Q3-22. Despite this decrease, the company's gross profit margin increased to 35.0% from 29.0% in Q3-22. The company's net earnings also increased to $19.4 million from $16.5 million in Q3-22.
The company's Condensed Consolidated Balance Sheets showed a backlog level of $408 million at the end of September 2023, indicating a strong pipeline of future business.
Other Pertinent Details
CFO, Farouq Tuweiq, added that the company made solid progress on its previously-announced facility consolidations. These projects are expected to result in annualized cost savings of approximately $6.9 million. Of this, $1.6 million is expected to be realized in Q4-23 with the full run rate of cost savings expected throughout 2024.
Looking ahead, the company estimates GAAP net sales in the $146-$154 million range for the fourth quarter of 2023. Gross profit margins for Q4-23 are expected to be roughly in line with Q3-23 levels.
Explore the complete 8-K earnings release (here) from Bel Fuse Inc for further details.
This article first appeared on GuruFocus.
