Bel Fuse Inc. (BELFB) has reported a 16.65 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $3.38 million in the quarter, compared with $2.90 million for the same period last year. Revenue during the quarter dropped 12.35 percent to $118.54 million from $135.25 million in the previous year period. Gross margin for the quarter expanded 148 basis points over the previous year period to 20.73 percent. Total expenses were 93.57 percent of quarterly revenues, down from 96.45 percent for the same period last year. This has led to an improvement of 288 basis points in operating margin to 6.43 percent.
Operating income for the quarter was $7.62 million, compared with $4.80 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $13.72 million compared with $11.85 million in the prior year period. At the same time, adjusted EBITDA margin improved 282 basis points in the quarter to 11.58 percent from 8.76 percent in the last year period.
Daniel Bernstein, president and chief executive officer, said, "With the operating efficiencies the Company identified in 2015 and 2016 and $17 million in annual cost savings now fully implemented, we are pleased with the financial performance that we achieved in the year, despite the sales decline. That said, we are working hard to pursue every path available to us to reinvigorate the top line and grow the business in 2017.
Debt comes down
Bel Fuse Inc. has recorded a decline in total debt over the last one year. It stood at $141.24 million as on Dec. 31, 2016, down 23.05 percent or $42.30 million from $183.55 million on Dec. 31, 2015. Total debt was 33.10 percent of total assets as on Dec. 31, 2016, compared with 31.27 percent on Dec. 31, 2015. Debt to equity ratio was at 0.89 as on Dec. 31, 2016, up from 0.79 as on Dec. 31, 2015. Interest coverage ratio improved to 5.37 for the quarter from 2.95 for the same period last year.
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