ST. LOUIS--(BUSINESS WIRE)--
Belden Inc. (NYSE: BDC), a global leader in high quality, end-to-end
signal transmission solutions for mission-critical applications, today
reported fiscal second quarter 2016 results for the period ended July 3,
2016.
Second Quarter 2016
On a GAAP basis, revenues for the quarter totaled $601.6 million,
increasing $15.8 million, or 2.7%, compared to $585.8 million in the
second quarter 2015. Gross profit margin in the second quarter was
41.3%, increasing 130 basis points from 40.0% in the year-ago period.
Net income was $41.8 million, increasing from $21.7 million in the
prior-year period. Net income as a percentage of revenues was 7.0% in
the second quarter, increasing 330 basis points from 3.7% in the
prior-year period. EPS totaled $0.98, compared to $0.50 in the second
quarter 2015. The Company recognized an income tax benefit for the
quarter, primarily as a result of tax planning initiatives.
Adjusted revenues for the quarter totaled $603.4 million, increasing
$4.9 million, or 0.8%, compared to $598.5 million in the second quarter
2015. Adjusted gross profit margin in the second quarter was 41.8%,
increasing 10 basis points from the year-ago period. Adjusted EBITDA
margin in the second quarter was 17.9%, increasing 120 basis points from
16.7% in the year-ago period. Adjusted EPS increased to $1.54 from $1.21
in the second quarter 2015. Adjusted EPS includes the benefit of tax
planning initiatives. Adjusted results are non-GAAP measures, and a
non-GAAP reconciliation table is provided as an appendix to this release.
John Stroup, President and CEO of Belden Inc., said, “We are extremely
pleased to generate revenues and earnings for the second quarter that
exceeded our expectations, and we are proud to report organic revenue
growth for the second quarter and first half of 2016. In addition to
continued success in our Enterprise platform, the Broadcast platform
generated broad-based, double-digit revenue growth in the quarter.
Furthermore, margin expansion continues to be exceptional across the
organization, as we benefit from our robust lean enterprise system.”
Outlook
“Given our strong first half, we are once again increasing our revenue
and earnings outlook for the year. In addition to continued strength in
the Broadcast, Enterprise and Network Security platforms, we expect our
combined Industrial businesses to return to growth in the second half of
the year,” said Mr. Stroup.
On a GAAP basis, the Company expects third quarter 2016 revenues to be
$593 – $613 million and EPS to be $0.66 – $0.76. For the full year
ending December 31, 2016, the Company now expects revenues to be $2.348
– $2.378 billion compared to the previously guided range of $2.313 –
$2.363 billion. The expected range of EPS is now $3.23 – $3.43 compared
to the previously guided range of $2.84 – $3.14.
The Company expects third quarter 2016 adjusted revenues to be $595 –
$615 million and adjusted EPS to be $1.35 – $1.45. For the full year
ending December 31, 2016, the Company now expects adjusted revenues to
be $2.355 – $2.385 billion compared to the previously guided range of
$2.320 – $2.370 billion. The expected range of adjusted EPS is now $5.50
– $5.70 compared to the previously guided range of $5.15 - $5.45.
Earnings Conference Call
Management will host a conference call today at 8:30 am EDT to discuss
results of the quarter. The listen-only audio of the conference call
will be broadcast live via the Internet at http://investor.belden.com.
The dial-in number for participants in the U.S. is 888-287-5563; the
dial-in number for participants outside the U.S. is 719-325-2432. A
replay of this conference call will remain accessible in the investor
relations section of the Company’s Web site for a limited time.
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BELDEN INC.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(Unaudited)
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Three Months Ended
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Six Months Ended
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July 3, 2016
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June 28, 2015
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July 3, 2016
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June 28, 2015
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(In thousands, except per share data)
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Revenues
|
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$
|
601,631
|
|
|
$
|
585,755
|
|
|
$
|
1,143,128
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|
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$
|
1,132,712
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|
|
Cost of sales
|
|
|
(353,418
|
)
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|
(351,479
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)
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|
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(669,880
|
)
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|
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(690,787
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)
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Gross profit
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248,213
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|
|
|
234,276
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|
|
473,248
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|
|
|
441,925
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Selling, general and administrative expenses
|
|
|
(123,057
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)
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(127,584
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)
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(245,463
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)
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(267,632
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)
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Research and development
|
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(36,652
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)
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(36,632
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)
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(72,785
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)
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|
|
(72,831
|
)
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Amortization of intangibles
|
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(26,263
|
)
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|
|
(25,917
|
)
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|
|
(51,795
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)
|
|
|
(52,421
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)
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Operating income
|
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|
62,241
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|
|
44,143
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|
|
103,205
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|
|
|
49,041
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Interest expense, net
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(24,049
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)
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|
|
(24,769
|
)
|
|
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(48,445
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)
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|
|
(48,615
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)
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Income from continuing operations before taxes
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38,192
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|
|
19,374
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|
|
54,760
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|
|
|
426
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|
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Income tax benefit
|
|
|
3,558
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|
|
2,303
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|
|
3,415
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|
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1,615
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Income from continuing operations
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41,750
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|
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21,677
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|
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58,175
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|
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2,041
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Loss from disposal of discontinued operations, net of tax
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-
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|
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(86
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)
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|
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-
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|
|
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(86
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)
|
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Net income
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|
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41,750
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|
|
21,591
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|
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58,175
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|
|
1,955
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Less: Net loss attributable to noncontrolling interest
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|
|
(99
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)
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-
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|
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(198
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)
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-
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Net income attributable to Belden stockholders
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$
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41,849
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$
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21,591
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|
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$
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58,373
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|
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$
|
1,955
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Weighted average number of common shares and equivalents:
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Basic
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42,085
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|
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42,655
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42,046
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42,596
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Diluted
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42,548
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|
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43,233
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|
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42,493
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|
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43,224
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Basic income per share attributable to Belden stockholders:
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Continuing operations
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$
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0.99
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|
$
|
0.51
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|
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$
|
1.39
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|
|
$
|
0.05
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|
|
Disposal of discontinued operations
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|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Net income
|
|
$
|
0.99
|
|
|
$
|
0.51
|
|
|
$
|
1.39
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|
|
$
|
0.05
|
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|
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Diluted income per share attributable to Belden stockholders:
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|
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|
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Continuing operations
|
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$
|
0.98
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|
|
$
|
0.50
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|
|
$
|
1.37
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|
|
$
|
0.05
|
|
|
Disposal of discontinued operations
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|
-
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|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Net income
|
|
$
|
0.98
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|
|
$
|
0.50
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|
|
$
|
1.37
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$
|
0.05
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Dividends declared per share
|
|
$
|
0.05
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|
|
$
|
0.05
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|
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$
|
0.10
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$
|
0.10
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BELDEN INC.
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OPERATING SEGMENT INFORMATION
|
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(Unaudited)
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Enterprise
|
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Industrial
|
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Industrial
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Connectivity
|
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Connectivity
|
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IT
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Network Security
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Broadcast Solutions
|
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Solutions
|
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Solutions
|
|
Solutions
|
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Solutions
|
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Total Segments
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(In thousands, except percentages)
|
|
For the three months ended July 3, 2016
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Segment Revenues
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|
$
|
193,521
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|
|
$
|
160,401
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|
|
$
|
147,808
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|
|
$
|
62,510
|
|
|
$
|
39,141
|
|
|
$
|
603,381
|
|
|
Segment EBITDA
|
|
|
29,505
|
|
|
|
29,575
|
|
|
|
27,064
|
|
|
|
12,676
|
|
|
|
9,515
|
|
|
|
108,335
|
|
|
Segment EBITDA margin
|
|
|
15.2
|
%
|
|
|
18.4
|
%
|
|
|
18.3
|
%
|
|
|
20.3
|
%
|
|
|
24.3
|
%
|
|
|
18.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
|
4,061
|
|
|
|
3,429
|
|
|
|
2,709
|
|
|
|
660
|
|
|
|
1,128
|
|
|
|
11,987
|
|
|
Amortization of intangibles
|
|
|
13,420
|
|
|
|
432
|
|
|
|
601
|
|
|
|
1,506
|
|
|
|
10,304
|
|
|
|
26,263
|
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
1,319
|
|
|
|
1,207
|
|
|
|
2,371
|
|
|
|
943
|
|
|
|
29
|
|
|
|
5,869
|
|
|
Deferred gross profit adjustments
|
|
|
494
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,256
|
|
|
|
1,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 28, 2015
|
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|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
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|
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Segment Revenues
|
|
$
|
174,923
|
|
|
$
|
161,827
|
|
|
$
|
160,875
|
|
|
$
|
61,270
|
|
|
$
|
39,618
|
|
|
$
|
598,513
|
|
|
Segment EBITDA
|
|
|
22,878
|
|
|
|
29,792
|
|
|
|
28,680
|
|
|
|
10,178
|
|
|
|
8,772
|
|
|
|
100,300
|
|
|
Segment EBITDA margin
|
|
|
13.1
|
%
|
|
|
18.4
|
%
|
|
|
17.8
|
%
|
|
|
16.6
|
%
|
|
|
22.1
|
%
|
|
|
16.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
|
4,140
|
|
|
|
3,180
|
|
|
|
2,869
|
|
|
|
584
|
|
|
|
919
|
|
|
|
11,692
|
|
|
Amortization of intangibles
|
|
|
12,595
|
|
|
|
429
|
|
|
|
807
|
|
|
|
1,479
|
|
|
|
10,607
|
|
|
|
25,917
|
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
3,283
|
|
|
|
83
|
|
|
|
1,163
|
|
|
|
-
|
|
|
|
378
|
|
|
|
4,907
|
|
|
Deferred gross profit adjustments
|
|
|
(924
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
14,364
|
|
|
|
13,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended July 3, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenues
|
|
$
|
364,793
|
|
|
$
|
296,293
|
|
|
$
|
288,899
|
|
|
$
|
116,392
|
|
|
$
|
80,804
|
|
|
$
|
1,147,181
|
|
|
Segment EBITDA
|
|
|
52,772
|
|
|
|
53,311
|
|
|
|
50,051
|
|
|
|
21,285
|
|
|
|
20,982
|
|
|
|
198,401
|
|
|
Segment EBITDA margin
|
|
|
14.5
|
%
|
|
|
18.0
|
%
|
|
|
17.3
|
%
|
|
|
18.3
|
%
|
|
|
26.0
|
%
|
|
|
17.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
|
8,023
|
|
|
|
6,818
|
|
|
|
5,427
|
|
|
|
1,184
|
|
|
|
2,198
|
|
|
|
23,650
|
|
|
Amortization of intangibles
|
|
|
26,351
|
|
|
|
861
|
|
|
|
1,192
|
|
|
|
3,016
|
|
|
|
20,375
|
|
|
|
51,795
|
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
5,697
|
|
|
|
1,707
|
|
|
|
3,236
|
|
|
|
3,608
|
|
|
|
29
|
|
|
|
14,277
|
|
|
Purchase accounting effects of acquisitions
|
|
|
195
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
195
|
|
|
Deferred gross profit adjustments
|
|
|
1,108
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,945
|
|
|
|
4,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June 28, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenues
|
|
$
|
351,423
|
|
|
$
|
303,608
|
|
|
$
|
313,847
|
|
|
$
|
122,343
|
|
|
$
|
76,743
|
|
|
$
|
1,167,964
|
|
|
Segment EBITDA
|
|
|
46,005
|
|
|
|
49,801
|
|
|
|
52,853
|
|
|
|
21,265
|
|
|
|
18,673
|
|
|
|
188,597
|
|
|
Segment EBITDA margin
|
|
|
13.1
|
%
|
|
|
16.4
|
%
|
|
|
16.8
|
%
|
|
|
17.4
|
%
|
|
|
24.3
|
%
|
|
|
16.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
|
8,113
|
|
|
|
6,394
|
|
|
|
5,720
|
|
|
|
1,143
|
|
|
|
1,863
|
|
|
|
23,233
|
|
|
Amortization of intangibles
|
|
|
25,021
|
|
|
|
861
|
|
|
|
1,630
|
|
|
|
2,889
|
|
|
|
22,020
|
|
|
|
52,421
|
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
14,810
|
|
|
|
651
|
|
|
|
2,936
|
|
|
|
(52
|
)
|
|
|
1,045
|
|
|
|
19,390
|
|
|
Purchase accounting effects of acquisitions
|
|
|
-
|
|
|
|
-
|
|
|
|
267
|
|
|
|
-
|
|
|
|
9,155
|
|
|
|
9,422
|
|
|
Deferred gross profit adjustments
|
|
|
2,370
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
32,728
|
|
|
|
35,098
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BELDEN INC.
|
|
OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
July 3, 2016
|
|
June 28, 2015
|
|
July 3, 2016
|
|
June 28, 2015
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Segment Revenues
|
|
|
|
|
$
|
603,381
|
|
|
$
|
598,513
|
|
|
$
|
1,147,181
|
|
|
$
|
1,167,964
|
|
|
Deferred revenue adjustments
|
|
|
|
(1,750
|
)
|
|
|
(12,758
|
)
|
|
|
(4,053
|
)
|
|
|
(35,252
|
)
|
|
Consolidated Revenues
|
|
|
|
|
$
|
601,631
|
|
|
$
|
585,755
|
|
|
$
|
1,143,128
|
|
|
$
|
1,132,712
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Segment EBITDA
|
|
|
|
|
$
|
108,335
|
|
|
$
|
100,300
|
|
|
$
|
198,401
|
|
|
$
|
188,597
|
|
|
Income from equity method investment
|
|
|
661
|
|
|
|
343
|
|
|
|
491
|
|
|
|
1,111
|
|
|
Eliminations
|
|
|
|
(886
|
)
|
|
|
(544
|
)
|
|
|
(1,717
|
)
|
|
|
(1,103
|
)
|
|
Consolidated Adjusted EBITDA (1)
|
|
|
|
108,110
|
|
|
|
100,099
|
|
|
|
197,175
|
|
|
|
188,605
|
|
|
Amortization of intangibles
|
|
|
(26,263
|
)
|
|
|
(25,917
|
)
|
|
|
(51,795
|
)
|
|
|
(52,421
|
)
|
|
Deferred gross profit adjustments
|
|
|
(1,750
|
)
|
|
|
(13,440
|
)
|
|
|
(4,053
|
)
|
|
|
(35,098
|
)
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
(5,869
|
)
|
|
|
(4,907
|
)
|
|
|
(14,277
|
)
|
|
|
(19,390
|
)
|
|
Depreciation expense
|
|
|
(11,987
|
)
|
|
|
(11,692
|
)
|
|
|
(23,650
|
)
|
|
|
(23,233
|
)
|
|
Purchase accounting effects related to acquisitions
|
|
|
-
|
|
|
|
-
|
|
|
|
(195
|
)
|
|
|
(9,422
|
)
|
|
Consolidated operating income
|
|
|
|
|
62,241
|
|
|
|
44,143
|
|
|
|
103,205
|
|
|
|
49,041
|
|
|
Interest expense, net
|
|
|
(24,049
|
)
|
|
|
(24,769
|
)
|
|
|
(48,445
|
)
|
|
|
(48,615
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated income from continuing operations before taxes
|
|
$
|
38,192
|
|
|
$
|
19,374
|
|
|
$
|
54,760
|
|
|
$
|
426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Consolidated Adjusted EBITDA is a non-GAAP measure. See
Reconciliation of Non-GAAP Measures for additional information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BELDEN INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 3, 2016
|
|
December 31, 2015
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
(In thousands)
|
|
ASSETS
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
175,772
|
|
|
$
|
216,751
|
|
|
Receivables, net
|
|
|
|
393,436
|
|
|
|
387,386
|
|
|
Inventories, net
|
|
|
|
198,625
|
|
|
|
195,942
|
|
|
Other current assets
|
|
|
|
51,403
|
|
|
|
37,079
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
819,236
|
|
|
|
837,158
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, less accumulated depreciation
|
|
|
|
314,697
|
|
|
|
310,629
|
|
|
Goodwill
|
|
|
|
1,404,099
|
|
|
|
1,385,115
|
|
|
Intangible assets, less accumulated amortization
|
|
|
|
614,422
|
|
|
|
655,871
|
|
|
Deferred income taxes
|
|
|
|
34,747
|
|
|
|
34,295
|
|
|
Other long-lived assets
|
|
|
|
67,689
|
|
|
|
67,534
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,254,890
|
|
|
$
|
3,290,602
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
204,272
|
|
|
$
|
223,514
|
|
|
Accrued liabilities
|
|
|
|
291,944
|
|
|
|
323,249
|
|
|
Current maturities of long-term debt
|
|
|
|
2,500
|
|
|
|
2,500
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
498,716
|
|
|
|
549,263
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
1,681,866
|
|
|
|
1,725,282
|
|
|
Postretirement benefits
|
|
|
|
106,862
|
|
|
|
105,230
|
|
|
Deferred income taxes
|
|
|
|
43,700
|
|
|
|
46,034
|
|
|
Other long-term liabilities
|
|
|
|
39,291
|
|
|
|
39,270
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
Common stock
|
|
|
|
503
|
|
|
|
503
|
|
|
Additional paid-in capital
|
|
|
|
609,061
|
|
|
|
605,660
|
|
|
Retained earnings
|
|
|
|
733,852
|
|
|
|
679,716
|
|
|
Accumulated other comprehensive loss
|
|
|
|
(59,069
|
)
|
|
|
(58,987
|
)
|
|
Treasury stock
|
|
|
|
(401,089
|
)
|
|
|
(402,793
|
)
|
|
Total Belden stockholders’ equity
|
|
|
|
883,258
|
|
|
|
824,099
|
|
|
Noncontrolling interest
|
|
|
|
1,197
|
|
|
|
1,424
|
|
|
Total stockholders' equity
|
|
|
|
884,455
|
|
|
|
825,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,254,890
|
|
|
$
|
3,290,602
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BELDEN INC.
|
|
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
July 3, 2016
|
|
June 28, 2015
|
|
|
|
(In thousands)
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
58,175
|
|
|
$
|
1,955
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
75,445
|
|
|
|
75,654
|
|
|
Share-based compensation
|
|
|
8,587
|
|
|
|
9,891
|
|
|
Tax benefit related to share-based compensation
|
|
|
(116
|
)
|
|
|
(5,288
|
)
|
|
Changes in operating assets and liabilities, net of the effects of
currency exchange rate changes and acquired businesses:
|
|
|
|
|
|
Receivables
|
|
|
(3,750
|
)
|
|
|
(6,250
|
)
|
|
Inventories
|
|
|
368
|
|
|
|
(11,837
|
)
|
|
Accounts payable
|
|
|
(20,730
|
)
|
|
|
(43,689
|
)
|
|
Accrued liabilities
|
|
|
(39,356
|
)
|
|
|
(4,363
|
)
|
|
Accrued taxes
|
|
|
(17,759
|
)
|
|
|
(10,214
|
)
|
|
Other assets
|
|
|
2,457
|
|
|
|
(1,736
|
)
|
|
Other liabilities
|
|
|
(2,867
|
)
|
|
|
923
|
|
|
Net cash provided by operating activities
|
|
|
60,454
|
|
|
|
5,046
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Capital expenditures
|
|
|
(25,124
|
)
|
|
|
(27,224
|
)
|
|
Cash used to acquire businesses, net of cash acquired
|
|
|
(17,848
|
)
|
|
|
(695,345
|
)
|
|
Proceeds from disposal of tangible assets
|
|
|
41
|
|
|
|
80
|
|
|
Net cash used for investing activities
|
|
|
(42,931
|
)
|
|
|
(722,489
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Payments under borrowing arrangements
|
|
|
(51,250
|
)
|
|
|
(625
|
)
|
|
Cash dividends paid
|
|
|
(4,204
|
)
|
|
|
(4,235
|
)
|
|
Withholding tax payments for share-based payment awards, net of
proceeds from the exercise of stock options
|
|
|
(3,598
|
)
|
|
|
(11,439
|
)
|
|
Borrowings under credit arrangements
|
|
|
-
|
|
|
|
200,000
|
|
|
Debt issuance costs paid
|
|
|
-
|
|
|
|
(643
|
)
|
|
Tax benefit related to share-based compensation
|
|
|
116
|
|
|
|
5,288
|
|
|
Net cash provided by (used for) financing activities
|
|
|
(58,936
|
)
|
|
|
188,346
|
|
|
|
|
|
|
|
|
Effect of foreign currency exchange rate changes on cash and cash
equivalents
|
|
|
434
|
|
|
|
(3,646
|
)
|
|
|
|
|
|
|
|
Decrease in cash and cash equivalents
|
|
|
(40,979
|
)
|
|
|
(532,743
|
)
|
|
Cash and cash equivalents, beginning of period
|
|
|
216,751
|
|
|
|
741,162
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
175,772
|
|
|
$
|
208,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BELDEN INC.
|
|
RECONCILIATION OF NON-GAAP MEASURES
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
In addition to reporting financial results in accordance with
accounting principles generally accepted in the United States, we
provide non-GAAP operating results adjusted for certain items,
including: asset impairments; accelerated depreciation expense due
to plant consolidation activities; purchase accounting effects
related to acquisitions, such as the adjustment of acquired
inventory and deferred revenue to fair value and transaction
costs; severance, restructuring, and acquisition integration
costs; gains (losses) recognized on the disposal of businesses and
tangible assets; amortization of intangible assets; gains (losses)
on debt extinguishment; discontinued operations; and other costs.
We adjust for the items listed above in all periods presented,
unless the impact is clearly immaterial to our financial
statements. When we calculate the tax effect of the adjustments,
we include all current and deferred income tax expense
commensurate with the adjusted measure of pre-tax profitability.
|
|
|
|
|
|
|
|
|
|
|
|
We utilize the adjusted results to review our ongoing operations
without the effect of these adjustments and for comparison to
budgeted operating results. We believe the adjusted results are
useful to investors because they help them compare our results to
previous periods and provide important insights into underlying
trends in the business and how management oversees our business
operations on a day-to-day basis. As an example, we adjust for the
purchase accounting effect of recording deferred revenue at fair
value in order to reflect the revenues that would have otherwise
been recorded by acquired businesses had they remained as
independent entities. We believe this presentation is useful in
evaluating the underlying performance of acquired companies.
Similarly, we adjust for other acquisition-related expenses, such
as amortization of intangibles and other impacts of fair value
adjustments because they generally are not related to the acquired
business' core business performance. As an additional example, we
exclude the costs of restructuring programs, which can occur from
time to time for our current businesses and/or recently acquired
businesses. We exclude the costs in calculating adjusted results
to allow us and investors to evaluate the performance of the
business based upon its expected ongoing operating structure. We
believe the adjusted measures, accompanied by the disclosure of
the costs of these programs, provides valuable insight.
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted results should be considered only in conjunction with
results reported according to accounting principles generally
accepted in the United States.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
July 3, 2016
|
|
June 28, 2015
|
|
July 3, 2016
|
|
June 28, 2015
|
|
|
|
(In thousands, except percentages and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
GAAP revenues
|
|
$
|
601,631
|
|
|
$
|
585,755
|
|
|
$
|
1,143,128
|
|
|
$
|
1,132,712
|
|
|
Deferred revenue adjustments
|
|
|
1,750
|
|
|
|
12,758
|
|
|
|
4,053
|
|
|
|
35,252
|
|
|
Adjusted revenues
|
|
$
|
603,381
|
|
|
$
|
598,513
|
|
|
$
|
1,147,181
|
|
|
$
|
1,167,964
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
$
|
248,213
|
|
|
$
|
234,276
|
|
|
$
|
473,248
|
|
|
$
|
441,925
|
|
|
Severance, restructuring, and integration costs
|
|
|
1,826
|
|
|
|
1,783
|
|
|
|
3,918
|
|
|
|
3,174
|
|
|
Deferred gross profit adjustments
|
|
|
1,750
|
|
|
|
13,440
|
|
|
|
4,053
|
|
|
|
35,098
|
|
|
Accelerated depreciation
|
|
|
206
|
|
|
|
25
|
|
|
|
412
|
|
|
|
100
|
|
|
Purchase accounting effects related to acquisitions
|
|
|
-
|
|
|
|
-
|
|
|
|
195
|
|
|
|
267
|
|
|
Adjusted gross profit
|
|
$
|
251,995
|
|
|
$
|
249,524
|
|
|
$
|
481,826
|
|
|
$
|
480,564
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit margin
|
|
|
41.3
|
%
|
|
|
40.0
|
%
|
|
|
41.4
|
%
|
|
|
39.0
|
%
|
|
Adjusted gross profit margin
|
|
|
41.8
|
%
|
|
|
41.7
|
%
|
|
|
42.0
|
%
|
|
|
41.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable to Belden stockholders
|
|
$
|
41,849
|
|
|
$
|
21,591
|
|
|
$
|
58,373
|
|
|
$
|
1,955
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
24,049
|
|
|
|
24,769
|
|
|
|
48,445
|
|
|
|
48,615
|
|
|
Loss from disposal of discontinued operations
|
|
|
-
|
|
|
|
86
|
|
|
|
-
|
|
|
|
86
|
|
|
Noncontrolling interest
|
|
|
(99
|
)
|
|
|
-
|
|
|
|
(198
|
)
|
|
|
-
|
|
|
Income tax benefit
|
|
|
(3,558
|
)
|
|
|
(2,303
|
)
|
|
|
(3,415
|
)
|
|
|
(1,615
|
)
|
|
Total non-operating adjustments
|
|
|
20,392
|
|
|
|
22,552
|
|
|
|
44,832
|
|
|
|
47,086
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
26,263
|
|
|
|
25,917
|
|
|
|
51,795
|
|
|
|
52,421
|
|
|
Severance, restructuring, and integration costs
|
|
|
5,869
|
|
|
|
4,907
|
|
|
|
14,277
|
|
|
|
19,390
|
|
|
Deferred gross profit adjustments
|
|
|
1,750
|
|
|
|
13,440
|
|
|
|
4,053
|
|
|
|
35,098
|
|
|
Accelerated depreciation
|
|
|
206
|
|
|
|
42
|
|
|
|
412
|
|
|
|
182
|
|
|
Purchase accounting effects related to acquisitions
|
|
|
-
|
|
|
|
-
|
|
|
|
195
|
|
|
|
9,422
|
|
|
Total operating income adjustments
|
|
|
34,088
|
|
|
|
44,306
|
|
|
|
70,732
|
|
|
|
116,513
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
|
11,781
|
|
|
|
11,650
|
|
|
|
23,238
|
|
|
|
23,051
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
108,110
|
|
|
$
|
100,099
|
|
|
$
|
197,175
|
|
|
$
|
188,605
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income margin
|
|
|
7.0
|
%
|
|
|
3.7
|
%
|
|
|
5.1
|
%
|
|
|
0.2
|
%
|
|
Adjusted EBITDA margin
|
|
|
17.9
|
%
|
|
|
16.7
|
%
|
|
|
17.2
|
%
|
|
|
16.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income from continuing operations
|
|
$
|
41,750
|
|
|
$
|
21,677
|
|
|
$
|
58,175
|
|
|
$
|
2,041
|
|
|
Operating income adjustments from above
|
|
|
34,088
|
|
|
|
44,306
|
|
|
|
70,732
|
|
|
|
116,513
|
|
|
Tax effect of adjustments
|
|
|
(10,420
|
)
|
|
|
(13,768
|
)
|
|
|
(20,914
|
)
|
|
|
(23,077
|
)
|
|
Adjusted income from continuing operations
|
|
$
|
65,418
|
|
|
$
|
52,215
|
|
|
$
|
107,993
|
|
|
$
|
95,477
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income from continuing operations
|
|
$
|
41,750
|
|
|
$
|
21,677
|
|
|
$
|
58,175
|
|
|
$
|
2,041
|
|
|
Less: Net loss attributable to noncontrolling interest
|
|
|
(99
|
)
|
|
|
-
|
|
|
|
(198
|
)
|
|
|
-
|
|
|
GAAP income from continuing operations attributable to Belden
stockholders
|
|
$
|
41,849
|
|
|
$
|
21,677
|
|
|
$
|
58,373
|
|
|
$
|
2,041
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income from continuing operations
|
|
$
|
65,418
|
|
|
$
|
52,215
|
|
|
$
|
107,993
|
|
|
$
|
95,477
|
|
|
Less: Net loss attributable to noncontrolling interest
|
|
|
(99
|
)
|
|
|
-
|
|
|
|
(198
|
)
|
|
|
-
|
|
|
Less: Amortization expense attributable to noncontrolling interest,
net of tax
|
|
|
16
|
|
|
|
-
|
|
|
|
32
|
|
|
|
-
|
|
|
Adjusted income from continuing operations attributable to Belden
stockholders
|
|
$
|
65,501
|
|
|
$
|
52,215
|
|
|
$
|
108,159
|
|
|
$
|
95,477
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income from continuing operations per diluted share
attributable to Belden stockholders
|
|
$
|
0.98
|
|
|
$
|
0.50
|
|
|
$
|
1.37
|
|
|
$
|
0.05
|
|
|
Adjusted income from continuing operations per diluted share
attributable to Belden stockholders
|
|
$
|
1.54
|
|
|
$
|
1.21
|
|
|
$
|
2.55
|
|
|
$
|
2.21
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP and Adjusted diluted weighted average shares
|
|
|
42,548
|
|
|
|
43,233
|
|
|
|
42,493
|
|
|
|
43,224
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BELDEN INC.
|
|
RECONCILIATION OF NON-GAAP MEASURES
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
We define free cash flow, which is a non-GAAP financial measure, as
net cash from operating activities adjusted for capital expenditures
net of the proceeds from the disposal of tangible assets. We believe
free cash flow provides useful information to investors regarding
our ability to generate cash from business operations that is
available for acquisitions and other investments, service of debt
principal, dividends and share repurchases. We use free cash flow,
as defined, as one financial measure to monitor and evaluate
performance and liquidity. Non-GAAP financial measures should be
considered only in conjunction with financial measures reported
according to accounting principles generally accepted in the United
States. Our definition of free cash flow may differ from definitions
used by other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
July 3, 2016
|
|
June 28, 2015
|
|
July 3, 2016
|
|
June 28, 2015
|
|
|
|
(In thousands)
|
|
GAAP net cash provided by operating activities
|
|
$
|
47,775
|
|
|
$
|
53,251
|
|
|
$
|
60,454
|
|
|
$
|
5,046
|
|
|
Capital expenditures, net of proceeds from the disposal of
tangible assets
|
|
|
(11,662
|
)
|
|
|
(11,694
|
)
|
|
|
(25,083
|
)
|
|
|
(27,144
|
)
|
|
Non-GAAP free cash flow
|
|
$
|
36,113
|
|
|
$
|
41,557
|
|
|
$
|
35,371
|
|
|
$
|
(22,098
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BELDEN INC.
|
|
RECONCILIATION OF NON-GAAP MEASURES
|
|
2016 REVENUES AND EARNINGS GUIDANCE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
Three Months Ended
|
|
|
|
|
|
December 31, 2016
|
|
October 2, 2016
|
|
Adjusted revenues
|
|
$2.355 - $2.385 billion
|
|
$595 - $615 million
|
|
Deferred revenue adjustments
|
|
($7 million)
|
|
($2 million)
|
|
GAAP revenues
|
|
|
$2.348 - $2.378 billion
|
|
$593 - $613 million
|
|
|
|
|
|
|
|
|
|
Adjusted income per diluted share attributable to Belden stockholders
|
|
$5.50 - $5.70
|
|
$1.35 - $1.45
|
|
Amortization of intangible assets
|
|
($1.61)
|
|
($0.41)
|
|
Severance, restructuring, and acquisition integration costs
|
|
($0.55)
|
|
($0.26)
|
|
Deferred gross profit adjustments
|
|
($0.11)
|
|
($0.02)
|
|
GAAP income per diluted share attributable to Belden stockholders
|
|
$3.23 - $3.43
|
|
$0.66 - $0.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Our guidance for revenues and income per diluted share attributable
to Belden stockholders is based upon information currently available
regarding events and conditions that will impact our future
operating results. In particular, our results are subject to the
factors listed under "Forward-Looking Statements" in this release.
In addition, our actual results are likely to be impacted by other
additional events for which information is not available, such as
asset impairments, purchase accounting effects related to
acquisitions, severance, restructuring, and acquisition integration
costs, gains (losses) recognized on the disposal of tangible assets,
gains (losses) on debt extinguishment, discontinued operations, and
other gains (losses) related to events or conditions that are not
yet known.
|
|
|
|
|
|
|
Net Income and Earnings per Share (EPS)
All references to Net Income and EPS within this earnings release refer
to income attributable to Belden stockholders and income per diluted
share attributable to Belden stockholders, respectively.
Use of Non-GAAP Financial Information
Adjusted results are non-GAAP measures that reflect certain adjustments
the Company makes to provide insight into operating results. GAAP to
non-GAAP reconciliations accompany the condensed consolidated financial
statements included in this release and have been published to the
investor relations section of the Company’s Web site at http://investor.belden.com.
Forward-Looking Statements
This release contains, and statements made by us concerning the release
may contain, forward-looking statements, including our expectations for
the third quarter, second half and full-year 2016. Forward-looking
statements also include statements regarding future financial
performance (including revenues, expenses, earnings, margins, cash
flows, dividends, capital expenditures and financial condition), plans
and objectives, and related assumptions. In some cases these statements
are identifiable through the use of words such as “anticipate,”
“believe,” “estimate,” “forecast,” “guide,” “expect,” “intend,” “plan,”
“project,” “target,” “can,” “could,” “may,” “should,” “will,” “would”
and similar expressions. Forward-looking statements reflect management’s
current beliefs and expectations and are not guarantees of future
performance. Actual results may differ materially from those suggested
by any forward-looking statements for a number of reasons, including,
without limitation: the impact of a challenging global economy or a
downturn in served markets; the cost and availability of raw materials
including copper, plastic compounds, electronic components, and other
materials; the competitiveness of the global broadcast, enterprise, and
industrial markets; disruption of, or changes in, the Company’s key
distribution channels; volatility in credit and foreign exchange
markets; the inability to execute and realize the expected benefits from
strategic initiatives (including revenue growth, cost control, and
productivity improvement programs); the inability to successfully
complete and integrate acquisitions in furtherance of the Company’s
strategic plan; the inability of the Company to develop and introduce
new products and competitive responses to our products; assertions that
the Company violates the intellectual property of others and the
ownership of intellectual property by competitors and others that
prevents the use of that intellectual property by the Company; risks
related to the use of open source software; the inability to retain
senior management and key employees; disruptions in the Company’s
information systems including due to cyber-attacks; variability in the
Company’s quarterly and annual effective tax rates; perceived or actual
product failures; political and economic uncertainties in the countries
where the Company conducts business, including emerging markets; the
impairment of goodwill and other intangible assets and the resulting
impact on financial performance; the impact of regulatory requirements
and other legal compliance issues; disruptions and increased costs
attendant to collective bargaining groups and other labor matters; and
other factors.
For a more complete discussion of risk factors, please see our Annual
Report on Form 10-K for the year ended December 31, 2015, filed with the
SEC on February 25, 2016. Although the content of this release
represents our best judgment as of the date of this report based on
information currently available and reasonable assumptions, we give no
assurances that the expectations will prove to be accurate. Deviations
from the expectations may be material. For these reasons, Belden
cautions readers to not place undue reliance on these forward-looking
statements, which speak only as of the date made. Belden disclaims any
duty to update any forward looking statements as a result of new
information, future developments, or otherwise, except as required by
law.
About Belden
Belden Inc. delivers a comprehensive product portfolio designed to meet
the mission-critical network infrastructure needs of industrial,
enterprise and broadcast markets. With innovative solutions targeted at
reliable and secure transmission of rapidly growing amounts of data,
audio and video needed for today's applications, Belden is at the center
of the global transformation to a connected world. Founded in 1902, the
Company is headquartered in St. Louis and has manufacturing capabilities
in North and South America, Europe and Asia. For more information, visit
us at www.belden.com
or follow us on Twitter @BeldenInc.
BDC-E
View source version on businesswire.com: http://www.businesswire.com/news/home/20160719005365/en/
Source: Belden Inc.