Belden Reports Results for Fourth Quarter and Full Year 2017

Feb 01, 2018

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 2017 results for the period ended December 31, 2017.

Fourth Quarter 2017

On a GAAP basis, revenues for the quarter totaled $604.9 million, declining 1.2% from $612.4 million in the prior-year period. Net income was $30.5 million, a decrease of $2.9 million, or 8.7%, compared to $33.4 million in the year-ago period. Net income was impacted by a one-time charge of $28.4 million related to the enactment of the Tax Cuts and Jobs Act (“TCJA”). Net income as a percentage of revenues was 5.0%, decreasing 40 basis points from 5.4% in the prior-year period. EPS totaled $0.51 compared to $0.58 in the fourth quarter 2016. The one-time charge as a result of the TCJA enactment had an EPS impact of $0.67.

The $604.9 million of quarterly revenue represents a decrease of $3.3 million, or 0.6%, compared to adjusted revenue of $608.2 million in the fourth quarter 2016. Adjusted EBITDA margin was 18.2%, decreasing 190 basis points compared to 20.1% in the year-ago period. Adjusted EPS was $1.62, increasing 14.1% compared to $1.42 in the fourth quarter 2016. 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, “Most of our businesses performed in line with our expectations, with the exception of an isolated situation in our Broadcast Solutions segment. We had expected to recognize revenue on $36 million of product that was shipped in 2017, but we were unable to do so as a result of technical U.S. GAAP revenue recognition requirements identified by our team during the year-end closing process. As a result, these 2017 shipments will now be recognized as revenue in 2018 and will be additive to the revenue that we otherwise would have anticipated.”

Full Year 2017

On a GAAP basis, revenue for the year totaled $2.389 billion, up 1.4% compared to $2.357 billion in the full year 2016. Net income was $93.2 million, a decrease of $34.8 million compared to $128.0 million in 2016. Net income was impacted by a $32.2 million after-tax loss on debt extinguishment related to our debt refinancing and repayment during the year. In addition, net income was impacted by a one-time charge of $28.4 million related to the enactment of the TCJA. Net income as a percentage of revenue was 3.9% for the full year compared to 5.4% in 2016. EPS was $1.37 compared to $2.65 in 2016.

The $2.389 billion of annual revenue represents an increase of $30.8 million, or 1.3%, over the adjusted revenues of $2.358 billion in 2016. Adjusted EBITDA margin was 18.2%, declining 10 basis points compared to 18.3% in 2016. Adjusted net income was $265.0 million, increasing $25.0 million, or 10.4%, compared to $240.0 million in 2016. Adjusted EPS increased 1.5% to $5.35, compared to $5.27 in 2016.

Mr. Stroup remarked, “2017 was highlighted by significant improvements to our balance sheet and disciplined capital deployment. We are pleased with the acquisition of Thinklogical and increased investment in organic initiatives, which we expect to drive meaningful growth in future periods.”

Outlook

“I am optimistic about our opportunities to drive meaningful organic and inorganic growth, as we continue to pursue a number of attractive acquisition opportunities that complement our strategic plans. We also expect our proven Lean enterprise system to continue to drive substantial margin expansion,” said Mr. Stroup.

The Company expects first quarter 2018 revenue to be $575 - $595 million. For the full year ending December 31, 2018, the Company expects revenue to be $2.528 - $2.578 billion compared to the previously guided range of $2.492 - $2.542 billion. This $36.0 million increase reflects the delayed revenue recognition described above.

The Company expects first quarter 2018 GAAP EPS to be $0.37 - $0.47. For the full year ending December 31, 2018, the Company now expects GAAP EPS to be $3.96 - $4.21, compared to the previously guided range of $4.33 - $4.58.

The Company expects first quarter 2018 adjusted EPS to be $1.05 - $1.15. For the full year ending December 31, 2018, the Company continues to expect adjusted EPS of $5.95 - $6.20. This guidance includes an increase in EPS related to the delayed revenue recognition and an offsetting impact of a higher effective tax rate due to the enactment of the TCJA.

Earnings Conference Call

Management will host a conference call today at 8:30 am ET 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 800-281-7973; the dial-in number for participants outside the U.S. is 323-794-2093. A replay of this conference call will remain accessible in the investor relations section of the Company’s website 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 website at http://investor.belden.com.

   

BELDEN INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 
Three Months Ended Twelve Months Ended

December 31,
2017

 

December 31,
2016

December 31,
2017

 

December 31,
2016

 
(In thousands, except per share data)
Revenues $ 604,884 $ 612,435 $ 2,388,643 $ 2,356,672
Cost of sales (375,292 ) (350,651 ) (1,454,604 ) (1,375,678 )
Gross profit 229,592 261,784 934,039 980,994
Selling, general and administrative expenses (114,236 ) (122,099 ) (461,022 ) (494,224 )
Research and development (29,222 ) (34,304 ) (134,330 ) (140,601 )
Amortization of intangibles (26,053 ) (22,782 ) (103,997 ) (98,385 )
Impairment of assets held for sale   (23,931 )   (23,931 )
Operating income 60,081 58,668 234,690 223,853
Interest expense, net (16,477 ) (23,092 ) (82,901 ) (95,050 )
Loss on debt extinguishment   (2,342 ) (52,441 ) (2,342 )
Income before taxes 43,604 33,234 99,348 126,461
Income tax benefit (expense) (13,168 ) 49   (6,495 ) 1,185  
Net income 30,436 33,283 92,853 127,646
Less: Net loss attributable to noncontrolling interest (83 ) (71 ) (357 ) (357 )
Net income attributable to Belden 30,519 33,354 93,210 128,003
Less: Preferred stock dividends 8,733   8,733   34,931   15,428  
Net income attributable to Belden common stockholders $ 21,786   $ 24,621   $ 58,279   $ 112,575  
 
Weighted average number of common shares and equivalents:
Basic 42,126 42,157 42,220 42,093
Diluted 42,581 42,674 42,643 42,557
 
Basic income per share attributable to Belden common stockholders: $ 0.52   $ 0.58   $ 1.38   $ 2.67  
Diluted income per share attributable to Belden common stockholders: $ 0.51   $ 0.58   $ 1.37   $ 2.65  
 
Common stock dividends declared per share $ 0.05 $ 0.05 $ 0.20 $ 0.20
 
         

BELDEN INC.

OPERATING SEGMENT INFORMATION

(Unaudited)

 

Broadcast
Solutions

Enterprise
Solutions

Industrial
Solutions

Network
Solutions

Total
Segments

 
(In thousands, except percentages)
 
For the three months ended December 31, 2017
Segment Revenues $ 174,719 $ 157,662 $ 162,551 $ 109,952 $ 604,884
Segment EBITDA 22,168 26,340 32,328 28,330 109,166
Segment EBITDA margin 12.7 % 16.7 % 19.9 % 25.8 % 18.0 %
Depreciation expense 3,668 2,475 3,309 1,551 11,003
Amortization of intangibles 12,375 438 643 12,597 26,053
Amortization of software development intangible assets 56 56
Severance, restructuring, and acquisition integration costs 1,098 4,244 3,966 643 9,951
Purchase accounting effects of acquisitions 2,044 2,044
 
For the three months ended December 31, 2016
Segment Revenues $ 208,787 $ 150,237 $ 146,730 $ 102,402 $ 608,156
Segment EBITDA 48,553 20,693 27,548 26,058 122,852
Segment EBITDA margin 23.3 % 13.8 % 18.8 % 25.4 % 20.2 %
Depreciation expense 4,143 3,198 2,873 1,741 11,955
Amortization of intangibles 9,942 426 598 11,816 22,782
Severance, restructuring, and acquisition integration costs 4,543 4,682 1,941 532 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 )
 
For the twelve months ended December 31, 2017
Segment Revenues $ 725,139 $ 631,166 $ 628,458 $ 403,880 $ 2,388,643
Segment EBITDA 112,849 103,650 119,642 93,893 430,034
Segment EBITDA margin 15.6 % 16.4 % 19.0 % 23.2 % 18.0 %
Depreciation expense 15,763 10,509 12,968 6,357 45,597
Amortization of intangibles 49,325 1,729 2,571 50,372 103,997
Amortization of software development intangible assets 56 56
Severance, restructuring, and acquisition integration costs 5,532 23,511 12,272 1,475 42,790
Purchase accounting effects of acquisitions 6,133 6,133
 
For the twelve months ended December 31, 2016
Segment Revenues $ 769,753 $ 603,188 $ 585,476 $ 399,388 $ 2,357,805
Segment EBITDA 137,870 101,298 101,248 92,773 433,189
Segment EBITDA margin 17.9 % 16.8 % 17.3 % 23.2 % 18.4 %
Depreciation expense 16,229 13,226 11,038 6,715 47,208
Amortization of intangibles 47,248 1,718 2,394 47,025 98,385
Severance, restructuring, and acquisition integration costs 10,414 11,962 9,923 6,471 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 )
 
   

BELDEN INC.

OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS

(Unaudited)

 
Three Months Ended Twelve Months Ended

December 31,
2017

 

December 31,
2016

December 31,
2017

 

December 31,
2016

 
(In thousands)
 
Total Segment Revenues $ 604,884 $ 608,156 $ 2,388,643 $ 2,357,805
Deferred revenue adjustments (1,275 ) (6,687 )
Patent settlement   5,554     5,554  
Consolidated Revenues $ 604,884   $ 612,435   $ 2,388,643   $ 2,356,672  
 
Total Segment EBITDA $ 109,166 $ 122,852 $ 430,034 $ 433,189
Income from equity method investment 1,667 716 7,502 1,793
Eliminations (632 ) (1,087 ) (3,260 ) (3,781 )
Consolidated Adjusted EBITDA (1) 110,201 122,481 434,276 431,201
Amortization of intangibles (26,053 ) (22,782 ) (103,997 ) (98,385 )
Depreciation expense (11,003 ) (11,955 ) (45,597 ) (47,208 )
Severance, restructuring, and acquisition integration costs (9,951 ) (11,698 ) (42,790 ) (38,770 )
Purchase accounting effects related to acquisitions (2,044 ) 2,274 (6,133 ) 2,079
Loss on sale of assets (1,013 ) (1,013 )
Amortization of software development costs (56 ) (56 )
Patent settlement 5,554 5,554
Impairment of assets held for sale (23,931 ) (23,931 )
Deferred gross profit adjustments   (1,275 )   (6,687 )
Consolidated operating income 60,081 58,668 234,690 223,853
Interest expense, net (16,477 ) (23,092 ) (82,901 ) (95,050 )
Loss on debt extinguishment   (2,342 ) (52,441 ) (2,342 )
Consolidated income before taxes $ 43,604   $ 33,234   $ 99,348   $ 126,461  
 

(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, 2017 December 31, 2016
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 561,108 $ 848,116
Receivables, net 466,325 388,059
Inventories, net 297,226 190,408
Other current assets 40,167 29,176
Assets held for sale   23,193  
Total current assets 1,364,826 1,478,952
Property, plant and equipment, less accumulated depreciation 337,322 309,291
Goodwill 1,478,257 1,385,995
Intangible assets, less accumulated amortization 545,207 560,082
Deferred income taxes 42,549 33,706
Other long-lived assets 65,207   38,777  
$ 3,833,368   $ 3,806,803  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 376,277 $ 258,203
Accrued liabilities 295,406 310,340
Liabilities held for sale   1,736  
Total current liabilities 671,683 570,279
Long-term debt 1,560,748 1,620,161
Postretirement benefits 102,085 104,050
Deferred income taxes 27,713 14,276
Other long-term liabilities 36,273 36,720
Stockholders’ equity:
Preferred stock 1 1
Common stock 503 503
Additional paid-in capital 1,123,832 1,116,090
Retained earnings 833,610 783,812
Accumulated other comprehensive loss (98,026 ) (39,067 )
Treasury stock (425,685 ) (401,026 )
Total Belden stockholders’ equity 1,434,235   1,460,313  
Noncontrolling interest 631   1,004  
Total stockholders’ equity 1,434,866   1,461,317  
$ 3,833,368   $ 3,806,803  
 
 

BELDEN INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(Unaudited)

 
Twelve Months Ended
December 31, 2017   December 31, 2016
 
(In thousands)
Cash flows from operating activities:
Net income $ 92,853 $ 127,646
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 149,650 145,593
Loss on debt extinguishment 52,441 2,342
Share-based compensation 14,647 18,178
Impairment of assets held for sale 23,931
Deferred income tax benefit (24,098 ) (30,034 )
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses:
Receivables (17,686 ) (10,115 )
Inventories (84,088 ) 2,677
Accounts payable 100,752 39,298
Accrued liabilities (32,321 ) (13,181 )
Accrued taxes 5,001 11,722
Other assets (13,255 ) 760
Other liabilities 11,404   (4,023 )
Net cash provided by operating activities 255,300 314,794
Cash flows from investing activities:
Cash used to acquire businesses, net of cash acquired (166,896 ) (18,848 )
Capital expenditures (64,261 ) (53,974 )
Other (827 )
Proceeds from disposal of tangible assets 1,039   392  
Net cash used for investing activities (230,118 ) (73,257 )
Cash flows from financing activities:
Payments under borrowing arrangements (1,105,892 ) (294,375 )
Cash dividends paid (43,376 ) (16,079 )
Payments under share repurchase program (25,000 )
Debt issuance costs paid (17,316 ) (3,910 )
Withholding tax payments for share-based payment awards, net of proceeds from the exercise of stock options (6,564 ) (7,480 )
Proceeds from issuance of preferred stock, net 501,498
Borrowings under credit arrangements 866,700   222,050  
Net cash provided by (used for) financing activities (331,448 ) 401,704
Effect of foreign currency exchange rate changes on cash and cash equivalents 19,258     (11,876 )
Increase (decrease) in cash and cash equivalents (287,008 ) 631,365
Cash and cash equivalents, beginning of period 848,116   216,751  
Cash and cash equivalents, end of period $ 561,108   $ 848,116  
 
 

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,
2017

 

December 31,
2016

December 31,
2017

 

December 31,
2016

 
(In thousands, except percentages and per share amounts)
GAAP revenues $ 604,884 $ 612,435 $ 2,388,643 $ 2,356,672
Deferred revenue adjustments 1,275 6,687
Patent settlement   (5,554 )   (5,554 )
Adjusted revenues $ 604,884   $ 608,156   $ 2,388,643   $ 2,357,805  
 
GAAP gross profit $ 229,592 $ 261,784 $ 934,039 $ 980,994
Severance, restructuring, and acquisition integration costs 6,039 5,461 32,562 12,276
Purchase accounting effects related to acquisitions 2,044 912 6,133 1,107
Amortization of software development intangible assets 56 56
Deferred gross profit adjustments 1,275 6,687
Accelerated depreciation 246 798 864
Patent settlement   (5,554 )   (5,554 )
Adjusted gross profit $ 237,731   $ 264,124   $ 973,588   $ 996,374  
 
GAAP gross profit margin 38.0 % 42.7 % 39.1 % 41.6 %
Adjusted gross profit margin 39.3 % 43.4 % 40.8 % 42.3 %
 
GAAP selling, general and administrative expenses $ (114,236 ) $ (122,099 ) $ (461,022 ) $ (494,224 )
Severance, restructuring, and acquisition integration costs 3,727 6,053 9,991 25,657
Loss on sale of assets 1,013 1,013
Accelerated depreciation 48 64
Purchase accounting effects related to acquisitions   (3,186 )   (3,186 )
Adjusted selling, general and administrative expenses $ (109,496 ) $ (119,184 ) $ (450,018 ) $ (471,689 )
 
GAAP research and development $ (29,222 ) $ (34,304 ) $ (134,330 ) $ (140,601 )
Severance, restructuring, and acquisition integration costs 185   184   237   837  
Adjusted research and development $ (29,037 ) $ (34,120 ) $ (134,093 ) $ (139,764 )
 
GAAP net income attributable to Belden $ 30,519 $ 33,354 $ 93,210 $ 128,003
Interest expense, net 16,477 23,092 82,901 95,050
Loss on debt extinguishment 2,342 52,441 2,342
Income tax expense (benefit) 13,168 (49 ) 6,495 (1,185 )
Noncontrolling interest (83 ) (71 ) (357 ) (357 )
Total non-operating adjustments 29,562   25,314   141,480   95,850  
 
Amortization of intangible assets 26,053 22,782 103,997 98,385
Severance, restructuring, and acquisition integration costs 9,951 11,698 42,790 38,770
Purchase accounting effects related to acquisitions 2,044 (2,274 ) 6,133 (2,079 )
Loss on sale of assets 1,013 1,013
Accelerated depreciation 294 798 928
Amortization of software development intangible assets 56 56
Impairment of assets held for sale 23,931 23,931
Deferred gross profit adjustments 1,275 6,687
Patent settlement   (5,554 )   (5,554 )
Total operating income adjustments 39,117 52,152 154,787 161,068
Depreciation expense 11,003   11,661   44,799   46,280  
 
Adjusted EBITDA $ 110,201   $ 122,481   $ 434,276   $ 431,201  
 
GAAP net income margin 5.0 % 5.4 % 3.9 % 5.4 %
Adjusted EBITDA margin 18.2 % 20.1 % 18.2 % 18.3 %
 
GAAP net income attributable to Belden $ 30,519 $ 33,354 $ 93,210 $ 128,003
Operating income adjustments from above 39,117 52,152 154,787 161,068
Loss on debt extinguishment 2,342 52,441 2,342
Tax effect of adjustments above (19,046 ) (17,524 ) (63,796 ) (51,374 )
Impact of Tax Cuts and Jobs Act enactment 28,440 28,440
Amortization expense attributable to noncontrolling interest, net of tax (16 ) (16 ) (63 ) (64 )
Adjusted net income attributable to Belden $ 79,014   $ 70,308   $ 265,019   $ 239,975  
 
GAAP net income attributable to Belden $ 30,519 $ 33,354 $ 93,210 $ 128,003
Less: Preferred stock dividends 8,733   8,733   34,931   15,428  
GAAP net income attributable to Belden common stockholders $ 21,786   $ 24,621   $ 58,279   $ 112,575  
 
Adjusted net income attributable to Belden $ 79,014 $ 70,308 $ 265,019 $ 239,975
Less: Preferred stock dividends        
Adjusted net income attributable to Belden common stockholders $ 79,014   $ 70,308   $ 265,019   $ 239,975  
 
GAAP income per diluted share attributable to Belden common stockholders $ 0.51 $ 0.58 $ 1.37 $ 2.65
Adjusted income per diluted share attributable to Belden common stockholders $ 1.62 $ 1.42 $ 5.35 $ 5.27
 
GAAP diluted weighted average shares 42,581 42,674 42,643 42,557
Adjustment for assumed conversion of preferred stock into common stock 6,268   6,857   6,857   2,979  
Adjusted diluted weighted average shares 48,849   49,531   49,500   45,536  
 

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,
2017

 

December 31,
2016

December 31,
2017

 

December 31,
2016

 
(In thousands)
GAAP net cash provided by operating activities $ 151,685 $ 167,365 $ 255,300 $ 314,794
Capital expenditures, net of proceeds from the disposal of tangible assets (29,807 ) (17,807 ) (63,222 ) (53,582 )
Non-GAAP free cash flow $ 121,878   $ 149,558   $ 192,078   $ 261,212  
 
   

BELDEN INC.

RECONCILIATION OF NON-GAAP MEASURES

2018 EARNINGS GUIDANCE

 

Year Ended
December 31, 2018

Three Months Ended
April 1, 2018

Adjusted income per diluted share attributable to Belden common stockholders $5.95 - $6.20 $1.05 - $1.15
Amortization of intangible assets $(1.49) $(0.39)
Severance, restructuring, and acquisition integration costs $(0.50) $(0.29)
GAAP income per diluted share attributable to Belden common stockholders $3.96 - $4.21 $0.37 - $0.47

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 and any statements made by us concerning the release may contain forward-looking statements including our expectations for the first quarter and full-year 2018. Forward-looking statements 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 competitiveness of the global broadcast, enterprise, and industrial markets; the inability to successfully complete and integrate acquisitions in furtherance of the Company’s strategic plan; volatility in credit and foreign exchange markets; variability in the Company’s quarterly and annual effective tax rates; the cost and availability of raw materials including copper, plastic compounds, electronic components, and other materials; disruption of, or changes in, the Company’s key distribution channels; the inability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); disruptions in the Company’s information systems including due to cyber-attacks; the inability of the Company to develop and introduce new products and competitive responses to our products; the inability to retain senior management and key employees; 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 impact of regulatory requirements and other legal compliance issues; 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; 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, 2016, filed with the SEC on February 17, 2017. 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.

Source: Belden Inc.

Belden Investor Relations

314-854-8054

Investor.Relations@Belden.com

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