Bel Fuse Inc (NASDAQ:BELFA) Q4 2019 Earnings Conference Call - Final Transcript
Feb 20, 2020 • 11:00 am ET
Good day, and welcome to the Bel Fuse Inc. Fourth Quarter and Fiscal Year 2019 Conference Call. [Operator Instructions] At this time, I would like to turn the call over to Dan Bernstein, President and Chief Executive Officer. Please go ahead.
Thank you, Sanna. Joining me on the call today is Craig Brosious, our Vice President of Finance; and Lynn Hutkin, our Director of Financial Reporting.
Before we begin the call, I'd like to ask Lynn to go over the safe harbor statement. Lynn?
Thank you, Dan. Good morning, everybody. Before we start, I'd like to read the following safe harbor statement. Except for historical information contained on this call, the matters discussed on this call, such as statements regarding potential sales growth; the anticipated impact of the acquisition of the power assets of CUI, Inc. on Bel sales and EBITDA margin; anticipated cost savings resulting from Bel's global cost structure initiatives; the timing of completion of Bel's ERP implementation; the expected effects of streamlining on Bel's overall profitability; the anticipated impact of the coronavirus outbreak; the extended Lunar New Year holiday break; and the grounding of Boeing 737 MAX; productivity levels at Bel's four manufacturing sites in China; Bel's ability to adjust workload levels at the China site; and an increase in airline maintenance spend on existing aircraft, are forward-looking statements as described under the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Actual results could differ materially from those projections.
Among the factors that could cause actual results to differ materially from such statements are: the market concerns facing our customers; the continuing viability of sectors that rely on our products; the effects of business and economic conditions; the success of efforts to contain and otherwise respond to the coronavirus; difficulties associated with integrating recently acquired companies; capacity and supply constraints or difficulties; product development, commercialization or technological difficulties; the regulatory and trade environment; risks associated with foreign currencies; uncertainties associated with legal proceedings; the market's acceptance of the Company's new products and competitive responses to those new products; the impact of changes to US trade and tariff policies; and the risk factors detailed from time-to-time in the Company's SEC reports.
In light of the risks and uncertainties, there can be no assurance that any forward-looking statement will, in fact, prove to be correct. We undertake no obligation to update or revise any forward-looking statements.
We also may discuss non-GAAP results during this call, and reconciliations of our GAAP results to non-GAAP results have been included in our release.
I would now like to turn the call back to Dan for a general business update.
Thank you, Lynn. Before going through the financials, I would like to provide a brief update on how the business did from the operations standpoint this quarter and what we see going forward.
The fourth quarter continued to be challenging for us as our customers and distributors work through the excess inventory on hand. Further, the ongoing tariffs have resulted