Belden Reports Results for Fourth Quarter and Full Year 2016

Feb 02, 2017

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 fourth quarter and full year 2016 results for the period ended December 31, 2016.

Fourth Quarter 2016

On a GAAP basis, revenues for the quarter totaled $612.4 million, increasing $15.2 million, or 2.5%, compared to $597.2 million in the fourth quarter 2015. Gross profit margin in the fourth quarter was 42.7%, increasing 80 basis points from 41.9% in the year-ago period. Net income was $34.0 million compared to $49.7 million in the prior-year period. Net income as a percentage of revenues was 5.5% in the fourth quarter, declining 280 basis points from 8.3% in the prior-year period. EPS totaled $0.59 compared to $1.17 in the fourth quarter 2015. The prior year EPS included incremental benefits of tax planning initiatives, and current year EPS included the dilutive impact of the mandatory convertible preferred stock.

Adjusted revenues for the quarter totaled $608.2 million, increasing $5.7 million, or 0.9%, compared to $602.5 million in the fourth quarter 2015. Adjusted gross profit margin was 43.4%, increasing 30 basis points from the year-ago period. Adjusted EBITDA margin was 20.1%, increasing 110 basis points from 19.0% in the year-ago period. Adjusted EPS was $1.42 compared to $1.63 in the fourth quarter 2015. The prior year adjusted EPS included incremental benefits of tax planning initiatives, and current year EPS included the dilutive impact of the mandatory convertible preferred stock. Adjusted results are non-GAAP measures, and a non-GAAP reconciliation table is provided as an appendix to this release.

John Stroup, President, CEO and Chairman of Belden Inc., said, “We are pleased to deliver another quarter of organic growth and margin expansion as our team continues to generate share capture and drive sustainable productivity improvements.”

Full Year 2016

On a GAAP basis, revenues for the year totaled $2.357 billion, up 2.1% compared to $2.309 billion in the full year 2015. Gross profit margin in 2016 was 41.6%, increasing 180 basis points from 39.8% in the year-ago period. Net income was $128.0 million compared to $66.2 million in 2015. Net income as a percentage of revenues was 5.4% for the full year, increasing 250 basis points from 2.9% in the prior year. EPS totaled $2.65, compared to $1.55 in 2015, an increase of 71.0%.

Adjusted revenues for the year totaled $2.358 billion, down slightly from $2.361 billion in 2015. Adjusted gross profit margin in 2016 was 42.3%, increasing 70 basis points from 41.6% in the year-ago period. Adjusted EBITDA margin was 18.3%, increasing 130 basis points from 17.0% in the year-ago period. Adjusted net income increased 12.3%, and adjusted EPS increased 5.8% to $5.27, compared to $4.98 in 2015.

Mr. Stroup remarked, “In 2016 we continued to significantly expand EBITDA margins, which are now within our long-term goal of 18-20% as a result of improvements in all five platforms. In addition, we generated record operating and free cash flow. We see many opportunities to build on these successes in 2017 and beyond.”

Outlook

“Our balanced portfolio and proven business system allow us to perform well under a variety of market situations. Consistent with our commitment to continuous improvement, we expect further EBITDA margin expansion across the organization in 2017. We also expect another year of organic growth. When paired with our strong balance sheet and optimism around acquisition-related opportunities, we feel confident that Belden remains well-positioned for success,” said Mr. Stroup.

The Company expects first quarter 2017 GAAP and adjusted revenues to be $540 - $560 million. For the full year ending December 31, 2017, the Company expects GAAP and adjusted revenues to be $2.355 - $2.405 billion.

The Company expects first quarter 2017 GAAP EPS to be $0.41 - $0.51. For the full year ending December 31, 2017, the Company expects GAAP EPS to be $3.35 - $3.60.

The Company expects first quarter 2017 adjusted EPS to be $0.83 - $0.93. For the full year ending December 31, 2017, the Company continues to expect adjusted EPS to be $4.95 - $5.20.

Earnings Conference Call

Management will host a conference call today at 8:30 am ET to discuss results of the quarter and full year. 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 888-339-3466; the dial-in number for participants outside the U.S. is 719-325-2360. A replay of this conference call will remain accessible in the investor relations section of the Company’s Web site for a limited time.

Net Income and Earnings per Share (EPS)

All references to Net Income and EPS within this earnings release refer to net income attributable to Belden and income from continuing operations per diluted share attributable to Belden common 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.

 
 
 
 
 

BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

 
      Three Months Ended     Twelve Months Ended

December 31,

2016

   

December 31,

2015

December 31,

2016

   

December 31,

2015

 
(In thousands, except per share data)
Revenues $ 612,435 $ 597,244 $ 2,356,672 $ 2,309,222
Cost of sales (350,651 ) (347,127 ) (1,375,678 ) (1,391,049 )
Gross profit 261,784 250,117 980,994 918,173
Selling, general and administrative expenses (122,099 ) (130,094 ) (494,224 ) (525,518 )
Research and development (34,304 ) (37,312 ) (140,601 ) (148,311 )
Amortization of intangibles (22,782 ) (25,701 ) (98,385 ) (103,791 )
Impairment of assets held for sale (23,931 )   (23,931 )  
Operating income 58,668 57,010 223,853 140,553
Interest expense, net (23,092 ) (26,582 ) (95,050 ) (100,613 )
Loss on debt extinguishment (2,342 )   (2,342 )  
Income from continuing operations before taxes 33,234 30,428 126,461 39,940
Income tax benefit 672   19,228   1,185   26,568  
Income from continuing operations 33,906 49,656 127,646 66,508
Loss from discontinued operations, net of tax (242 )
Loss from disposal of discontinued operations, net of tax       (86 )
Net income 33,906 49,656 127,646 66,180
Less: Net loss attributable to noncontrolling interest (71 ) (24 ) (357 ) (24 )
Net income attributable to Belden 33,977 49,680 128,003 66,204
Less: Preferred stock dividends 8,733     15,428    
Net income attributable to Belden common stockholders $ 25,244   $ 49,680   $ 112,575   $ 66,204  
Weighted average number of common shares and equivalents:
Basic 42,157 41,978 42,093 42,390
Diluted 42,674 42,482 42,557 42,953
Basic income (loss) per share attributable to Belden common stockholders:
Continuing operations $ 0.60 $ 1.18 $ 2.67 $ 1.57
Discontinued operations (0.01 )
Disposal of discontinued operations        
Net income $ 0.60   $ 1.18   $ 2.67   $ 1.56  
Diluted income (loss) per share attributable to Belden common stockholders:
Continuing operations $ 0.59 $ 1.17 $ 2.65 $ 1.55
Discontinued operations (0.01 )
Disposal of discontinued operations        
Net income $ 0.59   $ 1.17   $ 2.65   $ 1.54  
Common stock dividends declared per share $ 0.05 $ 0.05 $ 0.20 $ 0.20
 
 
 
 
 
 
 

BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)

 
      Broadcast

Solutions

    Enterprise

Connectivity

Solutions

    Industrial

Connectivity

Solutions

    Industrial

IT

Solutions

    Network

Security

Solutions

    Total

Segments

 
(In thousands, except percentages)

For the three months ended December 31, 2016

Segment Revenues $ 208,787 $ 150,237 $ 146,730 $ 58,881 $ 43,521 $ 608,156
Segment EBITDA 48,553 20,693 27,548 11,011 15,047 122,852
Segment EBITDA margin 23.3 % 13.8 % 18.8 % 18.7 % 34.6 % 20.2 %
Depreciation expense 4,143 3,198 2,873 647 1,094 11,955
Amortization of intangibles 9,942 426 598 1,499 10,317 22,782
Severance, restructuring, and acquisition integration costs 4,543 4,682 1,941 410 122 11,698
Purchase accounting effects of acquisitions (3,186 ) 912 (2,274 )
Deferred gross profit adjustments 383 892 1,275
Patent settlement (5,554 ) (5,554 )
Impairment of assets held for sale 15,731 15,731

For the three months ended December 31, 2015

Segment Revenues $ 201,825 $ 147,154 $ 141,801 $ 62,776 $ 48,948 $602,504
Segment EBITDA 40,264 24,708 23,863 11,522 14,707 115,064
Segment EBITDA margin 19.9 % 16.8 % 16.8 % 18.4 % 30.0 % 19.1 %
Depreciation expense 4,052 3,144 2,705 580 1,019 11,500
Amortization of intangibles 12,439 428 725 1,490 10,619 25,701
Severance, restructuring, and acquisition integration costs 10,535 (109 ) 3,174 167 (130 ) 13,637
Purchase accounting effects of acquisitions 114 70 67 32 42 325
Deferred gross profit adjustments (343 ) 6,793 6,450

For the twelve months ended December 31, 2016

Segment Revenues $ 769,753 $ 603,188 $ 585,476 $ 235,441 $ 163,947 $ 2,357,805
Segment EBITDA 137,870 101,298 101,248 45,067 47,706 433,189
Segment EBITDA margin 17.9 % 16.8 % 17.3 % 19.1 % 29.1 % 18.4 %
Depreciation expense 16,229 13,226 11,038 2,396 4,319 47,208
Amortization of intangibles 47,248 1,718 2,394 6,016 41,009 98,385
Severance, restructuring, and acquisition integration costs 10,414 11,962 9,923 6,320 151 38,770
Purchase accounting effects of acquisitions (2,991 ) 912 (2,079 )
Deferred gross profit adjustments 1,774 4,913 6,687
Patent settlement (5,554 ) (5,554 )
Impairment of assets held for sale 15,731 15,731

For the twelve months ended December 31, 2015

Segment Revenues $ 739,970 $ 605,910 $ 603,350 $ 244,303 $ 167,050 $ 2,360,583
Segment EBITDA 113,638 100,214 99,941 43,253 44,620 401,666
Segment EBITDA margin 15.4 % 16.5 % 16.6 % 17.7 % 26.7 % 17.0 %
Depreciation expense 16,295 12,591 11,235 2,293 4,137 46,551
Amortization of intangibles 49,812 1,720 3,154 5,859 43,246 103,791
Severance, restructuring, and acquisition integration costs 39,078 723 6,228 169 972 47,170
Purchase accounting effects of acquisitions 132 52 334 32 9,197 9,747
Deferred gross profit adjustments 2,446 50,430 52,876
 
 
 
 
 
 
 

BELDEN INC.
OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS
(Unaudited)

 
      Three Months Ended   Twelve Months Ended

December 31,

2016

 

December 31,

2015

December 31,

2016

 

December 31,

2015

 
(In thousands)
Total Segment Revenues $ 608,156 $ 602,504 $ 2,357,805 $ 2,360,583
Deferred revenue adjustments (1,275 ) (5,260 ) (6,687 ) (51,361 )
Patent settlement 5,554     5,554    
Consolidated Revenues $ 612,435   $ 597,244   $ 2,356,672   $ 2,309,222  
Total Segment EBITDA $ 122,852 $ 115,064 $ 433,189 $ 401,666
Income from equity method investment 716 311 1,793 1,770
Eliminations (1,087 ) (752 ) (3,781 ) (2,748 )
Consolidated Adjusted EBITDA (1) 122,481 114,623 431,201 400,688
Amortization of intangibles (22,782 ) (25,701 ) (98,385 ) (103,791 )
Depreciation expense (11,955 ) (11,500 ) (47,208 ) (46,551 )
Severance, restructuring, and acquisition integration costs (11,698 ) (13,637 ) (38,770 ) (47,170 )
Impairment of assets held for sale (23,931 ) (23,931 )
Deferred gross profit adjustments (1,275 ) (6,450 ) (6,687 ) (52,876 )
Patent settlement 5,554 5,554
Purchase accounting effects related to acquisitions 2,274   (325 ) 2,079   (9,747 )
Consolidated operating income 58,668 57,010 223,853 140,553
Interest expense, net (23,092 ) (26,582 ) (95,050 ) (100,613 )
Loss on debt extinguishment (2,342 )   (2,342 )  
Consolidated income from continuing operations before taxes $ 33,234   $ 30,428   $ 126,461   $ 39,940  
 

(1) Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation of Non-GAAP Measures for additional information.

 
 
 
 
 
 
 

BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

 
      December 31, 2016     December 31, 2015
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 848,116 $ 216,751
Receivables, net 388,059 387,386
Inventories, net 190,408 195,942
Other current assets 29,176 37,079
Assets held for sale 23,193    
Total current assets 1,478,952 837,158
Property, plant and equipment, less accumulated depreciation 309,291 310,629
Goodwill 1,385,995 1,385,115
Intangible assets, less accumulated amortization 560,082 655,871
Deferred income taxes 33,706 34,295
Other long-lived assets 38,777   67,534  
$ 3,806,803   $ 3,290,602  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 258,203 $ 223,514
Accrued liabilities 310,340 323,249
Current maturities of long-term debt 2,500
Liabilities held for sale 1,736    
Total current liabilities 570,279 549,263
Long-term debt 1,620,161 1,725,282
Postretirement benefits 104,050 105,230
Deferred income taxes 14,276 46,034
Other long-term liabilities 36,720 39,270
Stockholders’ equity:
Preferred stock 1
Common stock 503 503
Additional paid-in capital 1,116,090 605,660
Retained earnings 783,812 679,716
Accumulated other comprehensive loss (39,067 ) (58,987 )
Treasury stock (401,026 ) (402,793 )
Total Belden stockholders’ equity 1,460,313   824,099  
Noncontrolling interest 1,004   1,424  
Total stockholders’ equity 1,461,317   825,523  
$ 3,806,803   $ 3,290,602  
 
 
 
 
 
 
 

BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited)

 
      Twelve Months Ended
December 31, 2016     December 31, 2015
 
(In thousands)
Cash flows from operating activities:
Net income $ 127,646 $ 66,180
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 145,593 150,342
Impairment of assets held for sale 23,931
Share-based compensation 18,178 17,745
Loss on debt extinguishment 2,342
Deferred income tax benefit (30,034 ) (45,674 )
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses:
Receivables (10,115 ) 6,066
Inventories 2,677 19,204
Accounts payable 39,298 (38,907 )
Accrued liabilities (13,181 ) 59,214
Accrued taxes 11,722 11,981
Other assets 760 (4,840 )
Other liabilities (4,023 ) 149  
Net cash provided by operating activities 314,794 241,460
Cash flows from investing activities:
Capital expenditures (53,974 ) (54,969 )
Cash used to acquire businesses, net of cash acquired (18,848 ) (695,345 )
Other (827 )
Proceeds from disposal of business 3,527
Proceeds from disposal of tangible assets 392   533  
Net cash used for investing activities (73,257 ) (746,254 )
Cash flows from financing activities:
Proceeds from issuance of preferred stock, net 501,498
Borrowings under credit arrangements 222,050 200,000
Contribution from non-controlling interest 1,470
Payments under borrowing arrangements (294,375 ) (152,500 )
Cash dividends paid (16,079 ) (8,395 )
Withholding tax payments for share-based payment awards, net of proceeds from the exercise of stock options (7,480 ) (11,693 )
Debt issuance costs paid (3,910 ) (898 )
Payments under share repurchase program   (39,053 )
Net cash provided by (used for) financing activities 401,704 (11,069 )
Effect of foreign currency exchange rate changes on cash and cash equivalents (11,876 )   (8,548 )
Increase (decrease) in cash and cash equivalents 631,365 (524,411 )
Cash and cash equivalents, beginning of period 216,751   741,162  
Cash and cash equivalents, end of period $ 848,116   $ 216,751  
 
 
 
 
 
 
 

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; certain revenues and gains (losses) from patent settlements; 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     Twelve Months Ended

December 31,

2016

   

December 31,

2015

December 31,

2016

   

December 31,

2015

 
(In thousands, except percentages and per share amounts)
GAAP revenues $ 612,435 $ 597,244 $ 2,356,672 $ 2,309,222
Deferred revenue adjustments 1,275 5,260 6,687 51,361
Patent settlement (5,554 )   (5,554 )  
Adjusted revenues $ 608,156   $ 602,504   $ 2,357,805   $ 2,360,583  
 
GAAP gross profit $ 261,784 $ 250,117 $ 980,994 $ 918,173
Severance, restructuring, and acquisition integration costs 5,461 3,024 12,276 9,364
Deferred gross profit adjustments 1,275 6,450 6,687 52,876
Purchase accounting effects related to acquisitions 912 1,107 267
Accelerated depreciation 246 50 864 225
Patent settlement (5,554 )   (5,554 )  
Adjusted gross profit $ 264,124   $ 259,641   $ 996,374   $ 980,905  
 
GAAP gross profit margin 42.7 % 41.9 % 41.6 % 39.8 %
Adjusted gross profit margin 43.4 % 43.1 % 42.3 % 41.6 %
 
GAAP net income attributable to Belden $ 33,977 $ 49,680 $ 128,003 $ 66,204
Interest expense, net 23,092 26,582 95,050 100,613
Loss on debt extinguishment 2,342 2,342
Income tax benefit (672 ) (19,228 ) (1,185 ) (26,568 )
Loss from discontinued operations 242
Loss from disposal of discontinued operations 86
Noncontrolling interest (71 ) (24 ) (357 ) (24 )
Total non-operating adjustments 24,691   7,330   95,850   74,349  
 
Amortization of intangible assets 22,782 25,701 98,385 103,791
Severance, restructuring, and acquisition integration costs 11,698 13,637 38,770 47,170
Impairment of assets held for sale 23,931 23,931
Deferred gross profit adjustments 1,275 6,450 6,687 52,876
Accelerated depreciation 294 81 928 388
Purchase accounting effects related to acquisitions (2,274 ) 325 (2,079 ) 9,747
Patent settlement (5,554 )   (5,554 )  
Total operating income adjustments 52,152   46,194   161,068   213,972  
Depreciation expense 11,661 11,419 46,280 46,163
       
Adjusted EBITDA $ 122,481   $ 114,623   $ 431,201   $ 400,688  
 
GAAP net income margin 5.5 % 8.3 % 5.4 % 2.9 %
Adjusted EBITDA margin 20.1 % 19.0 % 18.3 % 17.0 %
 
GAAP income from continuing operations $ 33,906 $ 49,656 $ 127,646 $ 66,508
Operating income adjustments from above 52,152 46,194 161,068 213,972
Loss on debt extinguishment 2,342 2,342
Tax effect of adjustments (18,147 ) (26,558 ) (51,374 ) (66,777 )
Adjusted income from continuing operations $ 70,253   $ 69,292   $ 239,682   $ 213,703  
 
GAAP income from continuing operations $ 33,906 $ 49,656 $ 127,646 $ 66,508
Less: Net loss attributable to noncontrolling interest (71 ) (24 ) (357 ) (24 )
Less: Preferred stock dividends 8,733     15,428    
GAAP income from continuing operations attributable to Belden common stockholders $ 25,244   $ 49,680   $ 112,575   $ 66,532  
 
Adjusted income from continuing operations $ 70,253 $ 69,292 $ 239,682 $ 213,703
Less: Net loss attributable to noncontrolling interest (71 ) (24 ) (357 ) (24 )
Less: Amortization expense attributable to noncontrolling interest, net of tax 16   5   64   5  
Adjusted income from continuing operations attributable to Belden common stockholders $ 70,308   $ 69,311   $ 239,975   $ 213,722  
 
GAAP income from continuing operations per diluted share attributable to Belden common stockholders $ 0.59 $ 1.17 $ 2.65 $ 1.55
Adjusted income from continuing operations per diluted share attributable to Belden common stockholders $ 1.42 $ 1.63 $ 5.27 $ 4.98
 
GAAP diluted weighted average shares 42,674 42,482 42,557 42,953
Adjustment for assumed conversion of preferred stock into common stock 6,857     2,979    
Adjusted diluted weighted average shares 49,531 42,482 45,536 42,953
 
 
 
 
 
 
 

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     Twelve Months Ended

December 31,

2016

   

December 31,

2015

December 31,

2016

   

December 31,

2015

 
(In thousands)
GAAP net cash provided by operating activities $ 167,365 $ 144,415 $ 314,794 $ 241,460
Capital expenditures, net of proceeds from the disposal of tangible assets (17,807 ) (15,475 ) (53,582 ) (54,436 )
Non-GAAP free cash flow $ 149,558   $ 128,940   $ 261,212   $ 187,024  
 
 
 

BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
2017 EARNINGS GUIDANCE

 
      Year Ended

December 31, 2017

    Three Months Ended

April 2, 2017

Adjusted income per diluted share attributable to Belden common stockholders $4.95 - $5.20 $0.83 - $0.93
Amortization of intangible assets $(1.33) $(0.34)
Severance, restructuring, and acquisition integration costs $(0.27) $(0.08)
GAAP income per diluted share attributable to Belden common stockholders $3.35 - $3.60 $0.41 - $0.51
 

Our guidance for income per diluted share attributable to Belden common 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.

Forward-Looking Statements

This release contains, and statements made by us concerning the release may contain, forward-looking statements, including our expectations for the first quarter, and full-year 2017. 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

Source: Belden Inc.

Belden Investor Relations

314-854-8054

Investor.Relations@Belden.com

NYSE: BDC 74.22 +1.38 ( +1.9% ) Volume: 967,765 min 20 minute delay February 24, 2017