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

NYSE: BDC 52.87 +0.38 ( +0.72% ) Volume: 472,938 min 20 minute delay January 18, 2019

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