Bel Fuse Inc. (NASDAQ:BELFB) Q2 2022 Results Conference Call July 28, 2022 8:30 AM ET

Company Participants

Jean Marie Young - Three Part Advisors

Dan Bernstein - President and CEO

Farouq Tuweiq - CFO

Lynn Hutkin - Director, Financial Reporting

Conference Call Participants

Theodore O’Neill - Litchfield Hills Research

Chris Grenga - Needham & Company

Hendi Susanto - Gabelli Funds

Operator

Good morning, ladies and gentlemen. Welcome to the Bel Fuse Second Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the call over to Jean Marie Young with Three Part Advisors. Please go ahead, Jean.

Jean Marie Young

Thank you, Vikram, and good morning, everyone. Before we begin, I’d like to remind everyone that this conference call contains certain forward-looking statements regarding the company’s expected operating and financial performance for future periods. These statements are based on the company’s current expectations. Actual results may differ materially from those expressed or implied by these forward-looking statements due to a number of risks and other factors. Additional information about factors that could potentially impact our financial results is included in yesterday’s press release and is discussed in our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and our subsequent quarterly reports and other filings with the SEC from time to time.

We may also discuss non-GAAP results during this call, and reconciliations of our GAAP results to non-GAAP results have been included in our press release. Our press release and our SEC filings are all available at the IR section of our website.

Joining me on the call today is Dan Bernstein, President and CEO; Farouq Tuweiq, CFO; and Lynn Hutkin, Director of Financial Reporting.

With that, I’d like to turn the call over to Dan. Dan?

Dan Bernstein

Thank you, Jean. And thanks to everyone for joining our call today. I’m delighted to report we achieved record-breaking results for the second quarter in many categories. Revenue, adjusted EBITDA, bookings and backlog were all at the highest level in Bel’s history, and when -- you would have to look back to 2015 to see comparative adjusted EBITDA results. This new milestone for Bel was delivered by our entire team in all 3 of our product groups.

Commercial aerospace continued to rebound with $7.8 million in sales, up 43% for the same period last year and up 26% sequentially. The EV end market sales were up $6.7 million or 89% from the same period last year and up 13% sequentially. Power and magnetics continue to perform well, and with margin improvement due to the strategic initiatives we implemented over the past year. Revenue generated from our distributor partners grew $10.8 million or 23% over the same period last year. Connectivity margins are currently compressed due to the initial costs associated with ramping commercial air.