BEL FUSE INC NJ
For the period ended Mar 31, 2025. Filed May 1, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 1, 2025
BELFB$206.79+5.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-29.
0001437749-24-032429
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0001437749-25-014041
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 58 previous paragraphs and 52 current paragraphs.
26 unchanged; 17 reworded; 9 added; 14 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
Sales of our Power Solutions and Protection products were higher by $22.8 million (37.9%). Power sales into aerospace and defense applications contributed $32.4 million during in the three months ended March 31, 2025, a new end market within Bel’s power segment which did not exist during the first quarter of 2024. Further, sales into AI applications increased by $3.8 million, and sales of our circuit protection products increased by $0.7 million during the three months ended March 31, 2025, compared to the same period of 2024. These favorable contributions were partially offset by lower sales in networking applications of $4.8 million, other industrial applications of $3.7 million, consumer applications of $2.8 million, railway applications of $1.5 million, and eMobility applications of $1.6 million as compared to the first quarter of 2024.
Current report
R&D expense amounted to $7.2 million and $5.2 million during the three months ended March 31, 2025 and 2024, respectively. The increase was largely due to the inclusion of Enercon’s R&D expenses, which amounted to $1.7 million in the first quarter of 2025.
Current report
SG&A expenses were $29.5 million for the first quarter of 2025, an increase from $24.9 million in the first quarter of 2024. The increase was primarily driven by Enercon SG&A expenses which amounted to $6.0 million. This overall increase in SG&A expenses was partially offset by a $1.4 million reduction in Legacy-Bel related to an adjustment in variable compensation in the first quarter of 2025 compared to the first quarter of 2024.
Current report
Interest Expense
Current report
The Company incurred interest expense of $4.2 million and $0.4 million in the three months ended March 31, 2025 and 2024, respectively. The increase of $3.8 million from the first quarter ended March 31, 2024 was primarily due to the higher level of outstanding borrowings under the Company's Credit Agreement due to the Enercon acquisition (see Note 3, “Acquisition” for additional details). See "Liquidity and Capital Resources", below, and Note 11, "Debt" for further information on the Company's outstanding debt.
Current report
Interest Income
Current report
The Company earned interest income of $0.3 million in the first three months ended March 31, 2025, a $0.8 million decline compared to the first quarter of 2024, primarily related due to lower investments in U.S. Treasury Bills during the 2025 period compared to the 2024 period.
Current report
Other Income, Net
Current report
During the three months ended March 31, 2025, our accounts receivable decreased by $8.2 million due to the lower sales volume of the legacy-Bel business in the first quarter of 2025 as compared to the fourth quarter of 2024. Days sales outstanding (DSO) was 61 days at March 31, 2025 and 68 days at December 31, 2024. Inventory increased by $2.5 million at March 31, 2025 compared to December 31, 2024, primarily driven by an increase in raw materials and work in progress, partially offset by a decline in finished goods. Inventory turns were 2.1 at each March 31, 2025 and December 31, 2024.
Removed paragraphs (14)
Previous report
Recent Developments–*** Agreement to Acquire Enercon***
Previous report
On September 18, 2024, we entered into a definitive Share Purchase Agreement, dated as of September 19, 2024 (the “Enercon Purchase Agreement”), with Enercon Technologies, Ltd. (“Enercon”), FF3 Holdings, L.P., for itself and as Sellers’ Representative (“FF3”), and the other seller parties signatory thereto (together with FF3, each a “Seller” and collectively, the “Sellers”). The Enercon Purchase Agreement provides for our acquisition of a majority stake in Enercon from the Sellers based on an enterprise value of $400 million. Pursuant to the terms and conditions of the Enercon Purchase Agreement, we will acquire an 80% stake upfront for $320 million in cash at the closing (subject to customary adjustments), plus up to $10 million of potential earnout payments for the 2025-2026 period, with the intent to purchase the remaining 20% by early 2027 based on a put-call mechanism to be set forth in shareholders’ agreement to be entered into at closing and subject to the terms and pricing prescribed thereby, which include future EBITDA performance. Enercon is a leading supplier of highly customized power conversion and networking solutions to aerospace and defense markets globally, providing robust and reliable solutions across air, land and sea applications. This acquisition will allow us to extend our product portfolio supporting the aerospace and defense markets to include power solutions, with clear potential cross selling opportunities in the future. Enercon is based in Netanya, Israel with additional facilities in New Hampshire, U.S. and Haryana, India. The transaction is expected to close in the fourth quarter of 2024 subject to satisfaction of customary closing conditions. The preceding discussion of the proposed Enercon acquisition contains Forward-Looking Statements. See "Cautionary Notice Regarding Forward-Looking Information."
Previous report
Sales of our Power Solutions and Protection products were lower by $26.2 million (35.0%) and $77.7 million (31.7%) during the three and nine months ended September 30, 2024, respectively, as compared to the same periods of 2023. The decrease resulted primarily from a decline in sales of our power products into networking applications of $15.9 million (52.0%) during the third quarter of 2024 and $49.1 million (49.1%) during the nine months ended September 30, 2024 as compared to the same periods of 2023. Sales of our CUI products were down by $6.1 million (50.5%) and $17.2 million (41.7%) during the three and nine months ended September 30, 2024, respectively, as compared to the same periods of 2023. Sales of products into the eMobility end market decreased by $3.3 million and $9.0 million, and our circuit protection products declined by $0.2 million and $2.3 million during the third quarter and nine months ended September 30, 2024, respectively, compared to the corresponding periods of 2023. These areas of decline were partially offset by a $2.6 million and $9.1 million increase in sales of our rail products during the third quarter and nine months ended September 30, 2024, respectively, compared to the same periods of 2023.
Previous report
R&D expense remained relatively steady and amounted to $5.4 million and $5.3 million during the three months ended September 30, 2024 and 2023, respectively and $16.7 million and $16.5 million for thenine-month periods ended September 30, 2024 and 2023, respectively.
Previous report
SG&A expenses were $26.7 million for the third quarter of 2024, an increase from $23.7 million in the third quarter of 2023. This increase in SG&A was largely the result ofa $4.3 million increase in professional fees related to the acquisition of Enercon expected to close in the fourth quarter of 2024. Salaries and fringe benefits also increased by $0.7 million and there was an increase of $0.4 million in a variety of other expenses, including amortization, advertising and travel. These increases were largely offset by lower variable organizational compensation by $0.7 million and lower business promotion expenses of $0.3 million in the third quarter of 2024 as compared to the third quarter of 2023 due to the lower sales base in the 2024 period.
Previous report
SG&A expenses were $75.8 million for the first nine months of 2024, up from $74.1 million in the same period of 2023. This increase in SG&A was largely the result of a $4.3 million increase in professional fees related to the acquisition of Enercon, offset by a $3.7 million decline in legal fees largely due to costs associated with the aforementioned MPS patent infringement lawsuit further described in Note 15, "Commitments and Contingencies", which did not recur in the first nine months of 2024. Salaries and fringe benefits increased by of $2.8 million and there was also an increase of $0.4 million in a variety of other expenses, including amortization, advertising and travel in the first nine months of 2024 as compared to same period of 2023. These increases were offset by a decline of $1.3 million in commissions and a $0.5 million decline in business promotion expenses during the nine months ended September 30 2024, as compared to the same period of 2023 due to the lower sales base in the 2024 period.
Previous report
Other (Expense) Income, Net
Previous report
The provision for income taxes for the three months ended September 30, 2024 and 2023 was $3.1 million and $4.3 million, respectively. The Company’s earnings before income taxes for the three months ended September 30, 2024, were $12.6 million lower when compared with the same period in 2023, primarily attributable to a decrease in income from all of the regions. The Company’s effective tax rate was 27.8% and 18.2% for the three months ended September 30, 2024 and 2023, respectively. The change in the effective tax rate during the three months ended September 30, 2024 as compared to the same period in 2023, is primarily attributable to an increase in tax expense relating to prior period accruals, as well as a decrease in the tax benefit relating to the reversal of uncertain tax positions resulting from the expiration of certain statute of limitations. See Note 12, “Income Taxes”.
Previous report
During the nine months ended September 30, 2024, our accounts receivable decreased by $8.4 million due to lower sales volume in the third quarter. Days sales outstanding (DSO) was 57 days at September 30, 2024 and 55 days at December 31, 2023. Inventory decreased by $12.3 million at September 30, 2024 compared to December 31, 2023, as component availability has started to ease and we have worked to consume our inventory on hand. Inventory turns were 2.6 at September 30, 2024 as compared to 3.1 at December 31, 2023.
Previous report
In September 2024, the Company entered into the Enercon Purchase Agreement, as further described above in "Recent Developments - Agreement to Acquire Enercon". The transaction is expected to close during the fourth quarter of 2024 subject to satisfaction of customary closing conditions. The Company anticipates funding the acquisition of the 80% stake in Enercon through approximately $80 million of cash on hand and $240 million of incremental borrowings under its credit facility. Pursuant to the terms and conditions of the Enercon Purchase Agreement, there is $10 million of potential earnout payments for the 2025-2026 period, with the intent to purchase the remaining 20% by early 2027 based on a put-call mechanism to be set forth in shareholders’ agreement to be entered into at closing and subject to the terms and pricing prescribed thereby, which include future EBITDA performance.
Previous report
In September 2021, we entered into the Existing Credit Agreement, as further described in Note 11, "Debt". During January 2023, we amended the Existing Credit Agreement and related interest rate swap agreements to transition the reference rate from LIBOR to a Secured Overnight Financing Rate ("SOFR") effective January 31, 2023. The Existing Credit Agreement contains customary representations and warranties, covenants and events of default. In addition, the Existing Credit Agreement contains financial covenants that measure (i) the ratio of our total funded indebtedness, on a consolidated basis, less the aggregate amount of all unencumbered cash and cash equivalents, to the amount of our consolidated EBITDA (“Leverage Ratio”) and (ii) the ratio of the amount of our consolidated EBITDA to our consolidated fixed charges (“Fixed Charge Coverage Ratio”). If an event of default occurs, the lenders under the Existing Credit Agreement would be entitled to take various actions, including the acceleration of amounts due thereunder and all actions permitted to be taken by a secured creditor.
Previous report
Concurrently with the entry into the Enercon Purchase Agreement, Bel entered into a Commitment Letter, dated September 18, 2024, as further described in Note 11, to increase the Maximum Revolving Amount available under the Existing Credit Agreement’s revolving credit facility by an aggregate of $150 million to an aggregate amount of $325 million.
Previous report
Among the satisfaction of other conditions and deliverables, the completion of the Revolving Facility Increase will be subject to the execution and delivery of an amendment to, or an amendment and restatement of, the Existing Credit Agreement.
Previous report
In connection with Bel’s entry into the Commitment Letter, on September 18, 2024, Bel entered into a Second Amendment which makes certain amendments to the Existing Credit Agreement, including (i) increasing the cap set forth in Section 2.10(b) (governing “Increase in Commitment”) of the Existing Credit Agreement by $50 million to $150 million, (ii) adding certain customary provisions permitting the use of revolving loans on a limited conditions basis to finance the Enercon acquisition, and (iii) permitting the Enercon acquisition under the Credit Agreement.
Reworded paragraphs (17)
Previous wording
We design, manufacture and market a broad array of products that power, protect and connect electronic circuits. These products are primarily used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation and eMobility industries. Our portfolio of products also finds application in the automotive, medical and consumer electronics markets.
Current wording
We design, manufacture and market a broad array of products that power, protect and connect electronic circuits. These products are primarily used in the defense, commercial aerospace, networking, telecommunications, computing, general industrial, high-speed data transmission, transportation and eMobility industries. Bel's portfolio of products also finds application in the automotive, medical and consumer electronics markets.
Previous wording
We operate through three product group segments. In the nine months ended September 30, 2024,43% of our revenues were derived from Power Solutions and Protection, 44% from our Connectivity Solutions and 13% from our Magnetic Solutions operating segment.
Current wording
We operate through three product group segments. In the three months ended March 31, 2025,54.6% of our revenues were derived from Power Solutions and Protection, 33.3% from our Connectivity Solutions and 12.1% from our Magnetic Solutions operating segment.
Previous wording
We believe that in addition torecent global inflationary pressures on the costs of goods and services in general, and ongoing conflicts/political unrest includingin or near the countries in which Bel operates, the key factors affecting and/or potentially affecting our results for the nine months ended September 30, 2024 and/or future results include the following:
Current wording
We believe that in addition torecent global tariffs and inflationary pressures on the costs of goods and services in general, and ongoing conflicts/political unrest includingin or near the countries in which Bel operates, the key factors affecting and or potentially affecting our results for the three months ended March 31, 2025 and/or future results include the following:
Previous wording
Our revenue and gross margin by operating segment for the three and nine months ended September 30, 2024 and 2023 were as follows:
Current wording
Our revenue and gross margin by operating segment for the three months ended March 31, 2025 and 2024 were as follows:
Previous wording
Our gross margin for the Power segment declined in the third quarter of 2024 compared to the same period of 2023 due to lower sales and an unfavorable shift in product mix. This decline was result of lower sales volume, partially offset with the favorable exchange rates with the Chinese Renminbi versus the U.S. dollar.
Current wording
Our gross margin for the Power segment declined in the first quarter of 2025, compared to the same period of 2024 as the first quarter 2024 included non-recurring items which were at 100% gross margin (i.e. cancellation fees). This decline was partially offset by a favorable exchange rate fluctuation with the Chinese renminbi versus the U.S. dollar.
Previous wording
Sales of our Connectivity Solutions products incr eased by$3.9 million (7.6%) and $7.8 million (4.9%) during the three and nine months ended September 30, 2024, respectively, as compared to the same period of 2023. This increase was primarily due to increased volume of Connectivity Solutions products sold through our distribution channels, providing incremental growth of $1.2 million (6.1%) during thethird quarter and $4.3 million (7.3%) during the nine-month period ended September 30, 2024, as compared to the same periods of 2023. Sales of Connectivity products intothe military end market grew $0.5 million (1.5%) during the nine months ended September 30,2024, as compared to the same period of 2023. Gross margins for the 2024 periods presented above were favorably impacted by pricing actionson certain contract renewalsand operational efficiencies from the facility consolidations completed in 2023, partially offset by higher wage rates in Mexico and an unfavorable fluctuation in exchange rates between the U.S. dollar and Mexican peso in the 2024 periods as compared to the 2023 periods presented.
Current wording
Sales of our Connectivity Solutions products decreased by$3.6 million (6.5%) during the three months ended March 31, 2025, as compared to the first quarter of 2024. This decrease was primarily due to declines of $1.7 million (11.8%) in the commercial aerospace end market, $0.8 million (20.5%) in the industrial market and $0.9 million (4.5%) of lower sales through the distribution channel during the quarter ended March 31, 2025, as compared to the same period of 2024. These declines were partially offset by higher sales of Connectivity products intothe military end marketof $1.4 million (13.2%) during the three months ended March 31,2025, as compared to the first quarter of 2024. Gross margins for the 2025 period as compared to the 2024 period were favorably impacted byfavorable fluctuation inexchange rates between the U.S. dollar and Mexican peso, and operational efficiencies from the facility consolidations completed in 2024.
Previous wording
Sales of our Magnetic Solutions products declined by$12.8 million (40.0%) and $45.0 million (47.6%) during the three and nine months ended September 30, 2024, respectively, as compared to the same periods of 2023. Reduced demand for our Magnetic Solutions products from our networking customers and through our distribution channels has been the primary driver of the lower demand as we believe by these customers continue to work through inventory on hand. The lower sales volume, partially offset by favorable exchange rates with the Chinese Renminbi versus the U.S. dollar, were the primary drivers of gross margin reduction for this product group during the first nine months of 2024 as compared to the same period of 2023.
Current wording
Sales of our Magnetic Solutions products increased by$4.9 million (36.1%) during the three months ended March 31, 2025, as compared to the same period of 2024. Demand for our Magnetic Solutions products from our networking customers and through our distribution channels has been the primary driver of the sales increase. Recent facility consolidations in the PRC, diligent cost management, product mix, and afavorable exchange rate with the Chinese renminbi versus the U.S. dollar, were the primary drivers of gross margin improvement for this product group during the first three months of 2025 as compared to the first quarter of 2024.
Previous wording
Cost of sales as a percentage of revenue for thethree and nine months ended September 30, 2024 and 2023 consisted of the following:
Current wording
Cost of sales as a percentage of revenue for the three months ended March 31, 2025 and 2024 consisted of the following:
Previous wording
Material costs as a percentage of sales during the three andnine months ended September 30, 2024 were lower compared to the same periods of 2023, due to a shift in production mix, the stabilization of raw material pricing, shorter lead times, and better procurement efforts. Labor costs in the 2024 periods as a percentage of sales have increased compared to the each of the third quarter and first nine months of 2023 due to lower sales volume, a shift in product mix, an unfavorable fluctuation of the Mexican Peso exchange rate versus the U.S. Dollar in 2024 compared to the previous year, and the increase in statutory minimum wage rate in Mexico. This increase in labor cost was partially offset by lower labor costs in China due to the favorable fluctuation in the Chinese Renminbi exchange rate versus the U.S. Dollar.
Current wording
Material costs as a percentage of sales during thethree months ended March 31, 2025 were higher comp ared to the first quarter of 2024, due to a shift in product mix accompanying the increase in sales of our Power products, which generally have a higher material content. Labor costs in the 2025 period as a percentage of sales have increased compared to the first quarter of 2024 due to the increase in sales of our labor-intensive Magnetic products during the 2025 quarter coupled with the increase in minimum wage rates described above, partially offset by favorable fluctuations in the Chinese renminbi and Mexican peso exchange rates versus the U.S. dollar.
Previous wording
The other expenses noted in the table above include fixed cost items such as support labor and fringe, depreciation and amortization, and facility costs (rent, utilities, insurance). The percentage of other expenses as a cost of sales has increased during the three and nine months ended September 30, 2024 relative to the corresponding 2023 periods, due to the lower sales volume in the 2024 periods presented as compared to the same periods of 2023.
Current wording
The other expenses noted in the table above include fixed cost items such as support labor and fringe, depreciation and amortization, and facility costs (rent, utilities, insurance). While our legacy expenses remained relatively steady, the period-over-period percentage of other expenses as a cost of sales has decreased during the three months ended March 31, 2025 relative to the corresponding 2024 period, due to the higher sales volume in the 2025 period presented as compared to the same period of 2024.
Previous wording
Other (expense) income, netwas ($1.3) million and ($0.1) million for the three months ended September 30, 2024 and 2023, respectively. The year-over-year change within this line item was largely driven by themarket fluctuations in our SERP investments which resulted in a gain of $0.5 million and loss of $0.5 million during the three months ended September 30, 2024 and 2023, respectively. The Company also recorded losses of $0.2 million and $0.3 million associated with its investment in innolectric during thethird quarters of 2024 and 2023, respectively. We also realized foreign exchange transactional losses of $1.6 million during the three-month period ended September 30, 2024 versus a gain of $0.2 million for the same period in 2023 due to the fluctuation of the spot rates of certain currencies in effect when translating our balance sheet accounts at September 30, versus those in effect at June 30, of each year.
Current wording
Other income, net was $2.6 million and $1.8 million for the three months ended March 31, 2025 and 2024, respectively. The year-over-year change within this line item was largely driven by themarket fluctuations in our SERP investments which resulted in a gain of $0.3 million and loss of $0.6 million during the three months ended March 31, 2025 and 2024, respectively. The Company also recorded income of $0.3 million and $0.2 million associated with its investment in innolectric during thefirst quarters of 2025 and 2024, respectively. We also realized foreign exchange transactional gains of $4.3 million and $0.6 million during the three-month periods ended March 31, 2025 and 2024, respectively, due to the fluctuation of the spot rates of certain currencies in effect when translating our balance sheet accounts at March 31 each year versus those in effect at December 31.
Previous wording
The provision for income taxes for the nine months ended September 30, 2024 and 2023 was $11.7 million and $8.0 million, respectively. The Company’s earnings before income taxes for the nine months ended September 30, 2024, were approximately $15.4 million lower when compared with the same period in 2023, primarily attributable to decrease in income from the North America and Asia regions, partially offset by an increase in the Europe region. The Company’s effective tax rate was 21.4% and 11.5% for the nine months ended September 30, 2024 and 2023, respectively. The change in the effective tax rate during the nine months ended September 30, 2024 as compared to the same period in 2023, is primarily attributable to an increase in tax expense relating to valuation allowances and prior period accruals as well as a decrease in the tax benefit relating to the reversal of uncertain tax positions resulting from the expiration of certain statute of limitations. See Note 12, “Income Taxes”.
Current wording
The provision for income taxes for the three months ended March 31, 2025 and 2024 was $5.5 million and $4.5 million, respectively. The Company’s earnings before income taxes for the three months ended March 31, 2025 were $3.4 million higher when compared with the first quarter of 2024, primarily attributable to an increase in income from the Europe and Asia regions, offset by a decrease in the North America region. The Company’s effective tax rate was 23.0% and 22.0% for the three months ended March 31, 2025 and 2024, respectively. Our tax rate for the first quarter of 2025 remained relatively consistent compared to the first quarter of 2024, affected by rates in foreign jurisdictions and the relative amounts of income earned in those jurisdictions. See Note 12, “Income Taxes”.
Previous wording
Our principal sources of liquidity include $134.3 million of cash and cash equivalents at September 30, 2024, $29.5 million of held to maturity investments in U.S. Treasury securities, cash provided by operating activities and borrowings available under our credit facility. We expect to use this liquidity for operating expenses, investments in working capital, capital expenditures, interest, taxes, dividends, purchases of common stock under our Repurchase Program, and debt obligations and other long-term liabilities. Our liquidity may also be utilized to fund potential acquisitions in future periods. We believe that our current liquidity position and future cash flows from operations will enable us to fund our operations, both in the next twelve months and in the longer term.
Current wording
Our principal sources of liquidity include $65.9 million of cash and cash equivalents at March 31, 2025, $1.0 million of held to maturity investments in U.S. Treasury securities, cash provided by operating activities and borrowings available under our credit facility. We expect to use this liquidity for operating expenses, investments in working capital, capital expenditures, interest, taxes, lease and purchase obligations, pension benefit obligations, dividends, purchases of common stock under our Repurchase Program, and debt obligations and other long-term liabilities. Our liquidity may also be utilized to fund potential acquisitions in future periods, as well as potential future cash requirements related to the Enercon acquisition, including potential Earnout Payments that may become due and the put-call options under the Enercon shareholders agreement, pursuant to which Bel has the current intention to purchase the remaining 20% interest by early 2027. See the “Liquidity and Capital Resources” discussion appearing in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. We believe that our current liquidity position and future cash flows from operations will enable us to fund our operations, both in the next twelve months and in the longer term.
Previous wording
During the nine months ended September 30, 2024, our cash and cash equivalents increased by $44.9 million. This increase was primarily due to the following:
Current wording
During the three months ended March 31, 2025, our cash and cash equivalents decreased by $2.3 million. This decrease was primarily due to the following:
Previous wording
Cash and cash equivalents, held to maturity U.S. Treasury securities and accounts receivable comprised approximately 41.0% and 36.9% of our total assets at September 30, 2024 and at December 31, 2023, respectively. Our current ratio (i.e., the ratio of current assets to current liabilities) was 4.0 to 1 at September 30, 2024 and 3.4 to 1 at December 31, 2023. At September 30, 2024 and December 31, 2023, $50.5 million and $40.9 million, respectively (or 38% and 46%, respectively), of our cash and cash equivalents was held by our foreign subsidiaries. We repatriated $11 million from outside of the U.S. during the nine months ended September 30, 2024. We continue to analyze our global working capital and cash requirements and the potential tax liabilities attributable to further repatriation, and we have yet to make any further determination regarding repatriation of funds from outside the U.S. to fund our U.S. operations in the future. In the event these funds were needed for our U.S. operations, we would be required to accrue and pay U.S. state taxes and any applicable foreign withholding taxes to repatriate these funds.
Current wording
Cash and cash equivalents, held to maturity U.S. Treasury securities and accounts receivable comprised approximately 18.1% and 19.0% of our total assets at March 31, 2025 and December 31, 2024, respectively. Our current ratio (i.e., the ratio of current assets to current liabilities) was 3.3 to 1 at March 31, 2025 and 2.9 to 1 at December 31, 2024. At March 31, 2025 and December 31, 2024, $44.6 million and $48.4 million, respectively (or 68% and 71%, respectively), of our cash and cash equivalents was held by our foreign subsidiaries. We repatriated $5.5 million from outside of the U.S. during the three months ended March 31, 2025. We continue to analyze our global working capital and cash requirements and the potential tax liabilities attributable to further repatriation, and we have yet to make any further determination regarding repatriation of funds from outside the U.S. to fund our U.S. operations in the future. In the event these funds were needed for our U.S. operations, we would be required to accrue and pay U.S. state taxes and any applicable foreign withholding taxes to repatriate these funds.
Previous wording
We expect foreseeable liquidity and capital resource requirements in the ordinary course to be met through existing cash and cash equivalents and anticipated cash flows from operations, as well as borrowings available under our revolving credit facility, if needed. Our material cash requirements arising in the normal course of business are outlined in Item 7A, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Other than cash requirements arising from the Enercon acquisition pursuant to the Enercon Purchase Agreement expected to close in the fourth quarter of 2024 as described in the immediately following paragraph, there were no material changes to our future cash requirements during the nine months ended September 30, 2024.
Current wording
We expect foreseeable liquidity and capital resource requirements in the ordinary course to be met through existing cash and cash equivalents, held to maturity investments in U.S. Treasury securities and anticipated cash flows from operations, as well as borrowings available under our revolving credit facility, if needed. Our material cash requirements arising in the normal course of business are outlined in Item 7A, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. There were no material changes to our future cash requirements during the three months ended March 31, 2025.
Previous wording
At September 30, 2024, we were in compliance with our debt covenants, including the most restrictive covenant, the Fixed Charge Coverage Ratio. The unused credit available under the credit facility at September 30, 2024 was $115.0 million, all of which we had the ability to borrow without violating our Leverage Ratio covenant based on our existing consolidated EBITDA.
Current wording
The Company had $45 million of available borrowings under its revolving credit facility at March 31, 2025, as further described below and in Note 11, "Debt". There are no mandatory principal payments due on the credit facility borrowings during 2025. The current balance of $280 million is due upon expiration of the credit facility on September 1, 2026. Anticipated interest payments due amount to $23.9 million, of which $12.6 million is expected to be paid in 2025 based on our debt balance and interest rate in place at March 31, 2024. At March 31, 2025, we were in compliance with our debt covenants, including the most restrictive covenant, the Fixed Charge Coverage Ratio. The unused credit available under the credit facility at March 31, 2025 was $45.0 million, all of which we had the ability to borrow without violating our Leverage Ratio covenant based on our existing consolidated EBITDA.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Other (expense) income, net was less than$0.1 million and ($0.3) million for the nine months ended September 30, 2024 and 2023, respe ctively. The year-over-year change within this line item was largely driven by themarket fluctuations in our SERP investments which resulted in a gain of $1.3 million during the nine months ended September 30, 2024 and a gain of $0.3 million during the same period in 2023. The Company also recorded $0.3 million of loss associated with its investment in innolectric during thenine months ended September 30, 2024. We also realized foreign exchange transactional losses of $1.3 million during the nine months ended September 30, 2024, due to the fluctuation of the spot rates of certain currencies in effect when translating our balance sheet accounts at September 30, 2024 versus those in effect at December 31, 2023. This compares to foreign exchange transactional losses of $0.1 million recorded during the nine months ended September 30, 2023.