Belden Reports Results for Fourth Quarter and Full Year 2019

Feb 04, 2020

ST. LOUIS--(BUSINESS WIRE)-- Belden Inc. (NYSE:BDC), a leading global supplier of specialty networking solutions, today reported fiscal fourth quarter and full year 2019 results for the period ended December 31, 2019.

Fourth Quarter 2019

Revenues for the quarter totaled $549.7 million, decreasing $2.4 million, or 0.4%, compared to $552.1 million in the prior-year period. EPS totaled $0.05 compared to $0.68 in the fourth quarter 2018.

Adjusted EPS was $1.20 compared to $1.26 in the fourth quarter 2018. 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, “I am pleased to report revenues and adjusted EPS above the high end of our guidance ranges for the fourth quarter. We delivered healthy organic growth after adjusting for changes in channel inventory levels a year ago, which demonstrates the enhanced growth potential of our improved portfolio of businesses.”

Full Year 2019

Revenues for the year totaled $2.131 billion, compared to $2.166 billion in the full year 2018. EPS was $2.15 compared to $3.23 in 2018. Adjusted EPS was $4.52 compared to $4.67 in 2018.

Mr. Stroup remarked, “2019 was highlighted by the significant actions we initiated following our comprehensive strategic portfolio review. These include the recently announced divestiture of Grass Valley, the ongoing $40 million cost reduction program, and our planned exit of approximately $250 million in undifferentiated copper cable product lines. These actions will result in an improved portfolio of businesses that is aligned with favorable secular trends in industrial automation, cybersecurity, broadband & 5G, and smart buildings.”

Outlook

“2020 will be a year of continued transformation as we position the Company for profitable growth. Near-term demand trends are challenging, but I am optimistic about our ability to achieve our financial goals and drive superior returns for our shareholders going forward,” said Mr. Stroup.

The Company expects first quarter 2020 revenues to be $485 - $505 million. For the year ending December 31, 2020, the Company expects revenues to be $2.060 - $2.140 billion.

The Company expects first quarter 2020 GAAP EPS to be $0.23 - $0.38. For the year ending December 31, 2020, the Company expects GAAP EPS to be of $2.76 - $3.26.

The Company expects first quarter 2020 adjusted EPS to be $0.70 - $0.85. For the year ending December 31, 2020, the Company expects adjusted EPS of $4.25 - $4.75.

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 888-599-8686; the dial-in number for participants outside the U.S. is 720-543-0302. A replay of this conference call will remain accessible in the investor relations section of the Company’s website for a limited time.

Earnings per Share (EPS)

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

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, 2019

 

December 31, 2018

 

December 31, 2019

 

December 31, 2018

 

 

(In thousands, except per share data)

Revenues

 

$

549,688

 

 

$

552,052

 

 

$

2,131,278

 

 

$

2,165,702

 

Cost of sales

 

(346,916

)

 

(335,058

)

 

(1,337,773

)

 

(1,335,791

)

Gross profit

 

202,772

 

 

216,994

 

 

793,505

 

 

829,911

 

Selling, general and administrative expenses

 

(118,675

)

 

(104,814

)

 

(417,329

)

 

(411,352

)

Research and development expenses

 

(22,346

)

 

(22,223

)

 

(94,360

)

 

(91,552

)

Amortization of intangibles

 

(18,351

)

 

(18,693

)

 

(74,609

)

 

(75,140

)

Gain from patent litigation

 

 

 

 

 

 

 

62,141

 

Operating income

 

43,400

 

 

71,264

 

 

207,207

 

 

314,008

 

Interest expense, net

 

(13,863

)

 

(14,639

)

 

(55,814

)

 

(60,839

)

Non-operating pension benefit (cost)

 

(667

)

 

(1,108

)

 

1,017

 

 

(99

)

Loss on debt extinguishment

 

 

 

 

 

 

 

(22,990

)

Income from continuing operations before taxes

 

28,870

 

 

55,517

 

 

152,410

 

 

230,080

 

Income tax expense

 

(26,340

)

 

(19,552

)

 

(42,519

)

 

(62,936

)

Income from continuing operations

 

2,530

 

 

35,965

 

 

109,891

 

 

167,144

 

Income (loss) from discontinued operations, net of tax

 

(149,759

)

 

7,526

 

 

(486,667

)

 

(6,433

)

Net income (loss)

 

(147,229

)

 

43,491

 

 

(376,776

)

 

160,711

 

Less: Net income (loss) attributable to noncontrolling interest

 

179

 

 

(35

)

 

239

 

 

(183

)

Net income (loss) attributable to Belden

 

(147,408

)

 

43,526

 

 

(377,015

)

 

160,894

 

Less: Preferred stock dividends

 

 

 

8,733

 

 

18,437

 

 

34,931

 

Net income (loss) attributable to Belden common stockholders

 

$

(147,408

)

 

$

34,793

 

 

$

(395,452

)

 

$

125,963

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares and equivalents:

 

 

 

 

 

 

 

 

Basic

 

45,457

 

 

39,830

 

 

42,203

 

 

40,675

 

Diluted

 

45,684

 

 

40,031

 

 

42,416

 

 

40,956

 

 

 

 

 

 

 

 

 

 

Basic income (loss) per share attributable to Belden common stockholders:

 

 

 

 

 

 

 

 

Continuing operations attributable to Belden common stockholders

 

$

0.05

 

 

$

0.68

 

 

$

2.16

 

 

$

3.25

 

Discontinued operations attributable to Belden common stockholders

 

(3.29

)

 

0.19

 

 

(11.53

)

 

(0.16

)

Net income (loss) attributable to Belden common stockholders

 

$

(3.24

)

 

$

0.87

 

 

$

(9.37

)

 

$

3.10

 

Diluted income (loss) per share attributable to Belden common stockholders:

 

 

 

 

 

 

 

 

Continuing operations attributable to Belden common stockholders

 

$

0.05

 

 

$

0.68

 

 

$

2.15

 

 

$

3.23

 

Discontinued operations attributable to Belden common stockholders

 

(3.29

)

 

0.19

 

 

(11.53

)

 

(0.16

)

Net income (loss) attributable to Belden common stockholders

 

$

(3.24

)

 

$

0.87

 

 

$

(9.37

)

 

$

3.08

 

 

 

 

 

 

 

 

 

 

Common stock dividends declared per share

 

$

0.05

 

 

$

0.05

 

 

$

0.20

 

 

$

0.20

 

 

BELDEN INC.

OPERATING SEGMENT INFORMATION

(Unaudited)

 

 

 

Enterprise

 

Industrial

 

Total

Solutions

Solutions

Segments

 

(In thousands, except percentages)

For the three months ended December 31, 2019

 

 

 

 

 

 

Segment Revenues

 

$

280,196

 

 

$

269,492

 

 

$

549,688

 

Segment EBITDA

 

42,988

 

 

50,787

 

 

93,775

 

Segment EBITDA margin

 

15.3

%

 

18.8

%

 

17.1

%

Depreciation expense

 

5,384

 

 

5,035

 

 

10,419

 

Amortization of intangibles

 

5,924

 

 

12,427

 

 

18,351

 

Amortization of software development intangible assets

 

55

 

 

263

 

 

318

 

Severance, restructuring, and acquisition integration costs

 

5,479

 

 

15,499

 

 

20,978

 

Purchase accounting effects of acquisitions

 

60

 

 

 

 

60

 

 

 

 

 

 

 

 

For the three months ended December 31, 2018

 

 

 

 

 

 

Segment Revenues

 

$

277,352

 

 

$

274,700

 

 

$

552,052

 

Segment EBITDA

 

50,046

 

 

53,536

 

 

103,582

 

Segment EBITDA margin

 

18.0

%

 

19.5

%

 

18.8

%

Depreciation expense

 

4,975

 

 

4,699

 

 

9,674

 

Amortization of intangibles

 

5,497

 

 

13,196

 

 

18,693

 

Amortization of software development intangible assets

 

35

 

 

8

 

 

43

 

Severance, restructuring, and acquisition integration costs

 

746

 

 

1,424

 

 

2,170

 

Purchase accounting effects of acquisitions

 

1,138

 

 

 

 

1,138

 

 

 

 

 

 

 

 

For the twelve months ended December 31, 2019

 

 

 

 

 

 

Segment Revenues

 

$

1,081,232

 

 

$

1,050,046

 

 

$

2,131,278

 

Segment EBITDA

 

162,276

 

 

188,947

 

 

351,223

 

Segment EBITDA margin

 

15.0

%

 

18.0

%

 

16.5

%

Depreciation expense

 

20,765

 

 

19,644

 

 

40,409

 

Amortization of intangibles

 

23,500

 

 

51,109

 

 

74,609

 

Amortization of software development intangible assets

 

175

 

 

350

 

 

525

 

Severance, restructuring, and acquisition integration costs

 

11,050

 

 

15,494

 

 

26,544

 

Purchase accounting effects of acquisitions

 

592

 

 

 

 

592

 

 

 

 

 

 

 

 

For the twelve months ended December 31, 2018

 

 

 

 

 

 

Segment Revenues

 

$

1,095,900

 

 

$

1,069,802

 

 

$

2,165,702

 

Segment EBITDA

 

190,910

 

 

203,746

 

 

394,656

 

Segment EBITDA margin

 

17.4

%

 

19.0

%

 

18.2

%

Depreciation expense

 

19,374

 

 

18,935

 

 

38,309

 

Amortization of intangibles

 

22,255

 

 

52,885

 

 

75,140

 

Amortization of software development intangible assets

 

71

 

 

8

 

 

79

 

Severance, restructuring, and acquisition integration costs

 

14,863

 

 

7,762

 

 

22,625

 

Purchase accounting effects of acquisitions

 

1,690

 

 

 

 

1,690

 

 

BELDEN INC.

OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS

(Unaudited)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31, 2019

 

December 31, 2018

 

December 31, 2019

 

December 31, 2018

 

 

(In thousands)

Total Segment Revenues

 

$

549,688

 

 

$

552,052

 

 

$

2,131,278

 

 

$

2,165,702

 

Deferred revenue adjustments

 

 

 

 

 

 

 

 

Consolidated Revenues

 

$

549,688

 

 

$

552,052

 

 

$

2,131,278

 

 

$

2,165,702

 

 

 

 

 

 

 

 

 

 

Total Segment EBITDA

 

$

93,775

 

 

$

103,582

 

 

$

351,223

 

 

$

394,656

 

Eliminations

 

(249

)

 

(600

)

 

(1,337

)

 

(2,218

)

Total non-operating pension benefit (cost)

 

(667

)

 

(1,108

)

 

1,017

 

 

(99

)

Non-operating pension settlement loss

 

 

 

1,342

 

 

 

 

1,342

 

Consolidated Adjusted EBITDA (1)

 

92,859

 

 

103,216

 

 

350,903

 

 

393,681

 

Amortization of intangibles

 

(18,351

)

 

(18,693

)

 

(74,609

)

 

(75,140

)

Interest expense, net

 

(13,863

)

 

(14,639

)

 

(55,814

)

 

(60,839

)

Depreciation expense

 

(10,419

)

 

(9,674

)

 

(40,409

)

 

(38,309

)

Severance, restructuring, and acquisition integration costs

 

(20,978

)

 

(2,170

)

 

(26,544

)

 

(22,625

)

Loss on debt extinguishment

 

 

 

 

 

 

 

(22,990

)

Amortization of software development intangible assets

 

(318

)

 

(43

)

 

(525

)

 

(79

)

Purchase accounting effects related to acquisitions

 

(60

)

 

(1,138

)

 

(592

)

 

(1,690

)

Loss on sale of assets

 

 

 

 

 

 

 

(94

)

Non-operating pension settlement loss

 

 

 

(1,342

)

 

 

 

(1,342

)

Costs related to patent litigation

 

 

 

 

 

 

 

(2,634

)

Gain from patent litigation

 

 

 

 

 

 

 

62,141

 

Income from continuing operations before taxes

 

$

28,870

 

 

$

55,517

 

 

$

152,410

 

 

$

230,080

 

 

(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, 2019

 

December 31, 2018

 

 

(Unaudited)

 

 

 

 

(In thousands)

ASSETS

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

407,480

 

 

$

407,454

 

Receivables, net

 

334,634

 

 

335,956

 

Inventories, net

 

231,333

 

 

265,002

 

Other current assets

 

29,172

 

 

30,590

 

Current assets of discontinued operations

 

375,135

 

 

219,722

 

Total current assets

 

1,377,754

 

 

1,258,724

 

Property, plant and equipment, less accumulated depreciation

 

345,918

 

 

310,960

 

Operating lease right-of-use assets

 

62,251

 

 

 

Goodwill

 

1,243,669

 

 

1,206,877

 

Intangible assets, less accumulated amortization

 

339,505

 

 

359,931

 

Deferred income taxes

 

25,216

 

 

26,459

 

Other long-lived assets

 

12,446

 

 

13,249

 

Long-term assets of discontinued operations

 

 

 

603,121

 

 

 

$

3,406,759

 

 

$

3,779,321

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

 

Accounts payable

 

$

268,466

 

 

$

297,498

 

Accrued liabilities

 

283,799

 

 

272,396

 

Current liabilities of discontinued operations

 

170,279

 

 

147,028

 

Total current liabilities

 

722,544

 

 

716,922

 

Long-term debt

 

1,439,484

 

 

1,463,200

 

Postretirement benefits

 

136,227

 

 

127,748

 

Deferred income taxes

 

48,725

 

 

36,109

 

Long-term operating lease liabilities

 

55,652

 

 

 

Other long-term liabilities

 

38,308

 

 

30,140

 

Long-term liabilities of discontinued operations

 

 

 

17,614

 

Stockholders’ equity:

 

 

 

 

Preferred stock

 

 

 

1

 

Common stock

 

503

 

 

503

 

Additional paid-in capital

 

811,955

 

 

1,139,395

 

Retained earnings

 

518,004

 

 

922,000

 

Accumulated other comprehensive loss

 

(63,418

)

 

(74,907

)

Treasury stock

 

(307,197

)

 

(599,845

)

Total Belden stockholders’ equity

 

959,847

 

 

1,387,147

 

Noncontrolling interest

 

5,972

 

 

441

 

Total stockholders’ equity

 

965,819

 

 

1,387,588

 

 

 

$

3,406,759

 

 

$

3,779,321

 

 

BELDEN INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(Unaudited)

 

 

 

Twelve Months Ended

 

 

December 31, 2019

 

December 31, 2018

 

 

(In thousands)

Cash flows from operating activities:

 

 

 

 

Net income (loss)

 

$

(376,776

)

 

160,711

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

Asset impairment of discontinued operations

 

521,441

 

 

 

Depreciation and amortization

 

139,259

 

 

148,632

 

Share-based compensation

 

17,751

 

 

18,497

 

Loss on debt extinguishment

 

 

 

22,990

 

Deferred income tax expense (benefit)

 

(23,540

)

 

11,300

 

Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses:

 

 

 

 

Receivables

 

22,926

 

 

(21,748

)

Inventories

 

44,477

 

 

(14,779

)

Accounts payable

 

(41,527

)

 

(29,401

)

Accrued liabilities

 

(17,654

)

 

17,238

 

Income taxes

 

5,497

 

 

(4,390

)

Other assets

 

(16,118

)

 

(18,748

)

Other liabilities

 

1,157

 

 

(1,082

)

Net cash provided by operating activities

 

276,893

 

 

289,220

 

Cash flows from investing activities:

 

 

 

 

Capital expenditures

 

(110,002

)

 

(97,847

)

Cash used to acquire businesses, net of cash acquired

 

(74,392

)

 

(84,580

)

Proceeds from disposal of tangible assets

 

25

 

 

1,580

 

Proceeds from disposal of business

 

 

 

40,171

 

Net cash used for investing activities

 

(184,369

)

 

(140,676

)

Cash flows from financing activities:

 

 

 

 

Payments under borrowing arrangement

 

 

 

(484,757

)

Payments under share repurchase program

 

(50,000

)

 

(175,000

)

Cash dividends paid

 

(34,439

)

 

(43,169

)

Debt issuance costs paid

 

 

 

(7,609

)

Witholding tax payment payments for share-based payment awards

 

(2,149

)

 

(2,094

)

Redemption of stockholders' rights agreement

 

 

 

(411

)

Other

 

(360

)

 

 

Borrowings under credit arrangements

 

 

 

431,270

 

Net cash used for financing activities

 

(86,948

)

 

(281,770

)

Effect of foreign currency exchange rate changes on cash and cash equivalents

 

(301

)

 

(7,272

)

Increase (decrease) in cash and cash equivalents

 

5,275

 

 

(140,498

)

Cash and cash equivalents, beginning of period

 

420,610

 

 

561,108

 

Cash and cash equivalents, end of period

 

$

425,885

 

 

$

420,610

 

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,
2019

 

December 31,
2018

 

December 31,
2019

 

December 31,
2018

 

 

(In thousands, except percentages and per share amounts)

GAAP revenues

 

$

549,688

 

 

$

552,052

 

 

$

2,131,278

 

 

$

2,165,702

 

Deferred revenue adjustments

 

 

 

 

 

 

 

 

Adjusted revenues

 

$

549,688

 

 

$

552,052

 

 

$

2,131,278

 

 

$

2,165,702

 

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

202,772

 

 

$

216,994

 

 

$

793,505

 

 

$

829,911

 

Severance, restructuring, and acquisition integration costs

 

2,333

 

 

1,979

 

 

3,425

 

 

17,962

 

Purchase accounting effects related to acquisitions

 

60

 

 

 

 

592

 

 

27

 

Amortization of software development intangible assets

 

318

 

 

43

 

 

525

 

 

79

 

Adjusted gross profit

 

$

205,483

 

 

$

219,016

 

 

$

798,047

 

 

$

847,979

 

 

 

 

 

 

 

 

 

 

GAAP gross profit margin

 

36.9

%

 

39.3

%

 

37.2

%

 

38.3

%

Adjusted gross profit margin

 

37.4

%

 

39.7

%

 

37.4

%

 

39.2

%

GAAP selling, general and administrative expenses

 

$

(118,675

)

 

$

(104,813

)

 

$

(417,329

)

 

$

(411,352

)

Severance, restructuring, and acquisition integration costs

 

18,645

 

 

191

 

 

23,119

 

 

4,546

 

Costs related to patent litigation

 

 

 

 

 

 

 

2,634

 

Purchase accounting effects related to acquisitions

 

 

 

1,138

 

 

 

 

1,663

 

Loss on sale of assets

 

 

 

 

 

 

 

94

 

Adjusted selling, general and administrative expenses

 

$

(100,030

)

 

$

(103,484

)

 

$

(394,210

)

 

$

(402,415

)

 

 

 

 

 

 

 

 

 

GAAP research and development expenses

 

$

(22,346

)

 

$

(22,223

)

 

$

(94,360

)

 

$

(91,552

)

Severance, restructuring, and acquisition integration costs

 

 

 

 

 

 

 

117

 

Adjusted research and development expenses

 

$

(22,346

)

 

$

(22,223

)

 

$

(94,360

)

 

$

(91,435

)

GAAP net income (loss) attributable to Belden

 

$

(147,408

)

 

$

43,526

 

 

$

(377,015

)

 

$

160,894

 

Loss (income) from discontinued operations, net of tax

 

149,759

 

 

(7,526

)

 

486,667

 

 

6,433

 

Interest expense, net

 

13,863

 

 

14,639

 

 

55,814

 

 

60,839

 

Income tax expense

 

26,340

 

 

19,552

 

 

42,519

 

 

62,936

 

Non-operating pension settlement loss

 

 

 

1,342

 

 

 

 

1,342

 

Loss on debt extinguishment

 

 

 

 

 

 

 

22,990

 

Noncontrolling interests

 

179

 

 

(35

)

 

239

 

 

(183

)

Total non-operating adjustments

 

190,141

 

 

27,972

 

 

585,239

 

 

154,357

 

Amortization of intangible assets

 

18,351

 

 

18,693

 

 

74,609

 

 

75,140

 

Severance, restructuring, and acquisition integration costs

 

20,978

 

 

2,170

 

 

26,544

 

 

22,625

 

Costs related to patent litigation

 

 

 

 

 

 

 

2,634

 

Purchase accounting effects related to acquisitions

 

60

 

 

1,138

 

 

592

 

 

1,690

 

Amortization of software development intangible assets

 

318

 

 

43

 

 

525

 

 

79

 

Loss on sale of assets

 

 

 

 

 

 

 

94

 

Gain from patent litigation

 

 

 

 

 

 

 

(62,141

)

Total operating income adjustments

 

39,707

 

 

22,044

 

 

102,270

 

 

40,121

 

Depreciation expense

 

10,419

 

 

9,674

 

 

40,409

 

 

38,309

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

92,859

 

 

$

103,216

 

 

$

350,903

 

 

$

393,681

 

GAAP net income (loss) margin

 

(26.8

)%

 

7.9

%

 

(17.7

)%

 

7.4

%

Adjusted EBITDA margin

 

16.9

%

 

18.7

%

 

16.5

%

 

18.2

%

 

 

 

 

 

 

 

 

 

GAAP net income (loss) attributable to Belden

 

$

(147,408

)

 

$

43,526

 

 

$

(377,015

)

 

$

160,894

 

Operating income adjustments from above

 

39,707

 

 

22,044

 

 

102,270

 

 

40,121

 

Loss (income) from discontinued operations, net of tax

 

149,759

 

 

(7,526

)

 

486,667

 

 

6,433

 

Non-operating pension settlement loss

 

 

 

1,342

 

 

 

 

1,342

 

Loss on debt extinguishment

 

 

 

 

 

 

 

22,990

 

Tax effect of adjustments above

 

12,796

 

 

(359

)

 

(1,948

)

 

(5,351

)

Amortization expense attributable to noncontrolling interest, net of tax

 

 

 

(16

)

 

 

 

(66

)

Adjusted net income attributable to Belden

 

$

54,854

 

 

$

59,011

 

 

$

209,974

 

 

$

226,363

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss) attributable to Belden

 

$

(147,408

)

 

$

43,526

 

 

$

(377,015

)

 

$

160,894

 

Loss (income) from discontinued operations, net of tax

 

149,759

 

 

(7,526

)

 

486,667

 

 

6,433

 

Less: Preferred stock dividends

 

 

 

(8,733

)

 

(18,437

)

 

(34,931

)

GAAP net income attributable to Belden common stockholders

 

$

2,351

 

 

$

27,267

 

 

$

91,215

 

 

$

132,396

 

 

 

 

 

 

 

 

 

 

Adjusted net income attributable to Belden

 

$

54,854

 

 

$

59,011

 

 

209,974

 

 

226,363

 

Less: Preferred stock dividends

 

 

 

(8,733

)

 

(18,437

)

 

(34,931

)

Adjusted net income attributable to Belden common stockholders

 

$

54,854

 

 

50,278

 

 

191,537

 

 

191,432

 

GAAP income from continuing operations per diluted share attributable to Belden common stockholders

 

$

0.05

 

 

$

0.68

 

 

$

2.15

 

 

$

3.23

 

Adjusted income from continuing operations per diluted share attributable to Belden common stockholders

 

$

1.20

 

 

$

1.26

 

 

$

4.52

 

 

$

4.67

 

 

 

 

 

 

 

 

 

 

GAAP and adjusted diluted weighted average shares

 

45,684

 

 

40,031

 

 

42,416

 

 

40,956

 

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,
2019

 

December 31,
2018

 

December 31,
2019

 

December 31,
2018

 

 

(In thousands)

GAAP net cash provided by operating activities

 

$

187,376

 

 

$

188,361

 

 

$

276,893

 

 

$

289,220

 

Capital expenditures, net of proceeds from the disposal of tangible assets

 

(35,928

)

 

(34,372

)

 

(109,977

)

 

(96,267

)

Non-GAAP free cash flow

 

$

151,448

 

 

$

153,989

 

 

$

166,916

 

 

$

192,953

 

BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
2020 EARNINGS GUIDANCE

 

 

Three Months Ended
March 29, 2020

 

Year Ended
December 31, 2020

Adjusted income from continuing operations per diluted share attributable to Belden common stockholders

 

$0.70 - $0.85

 

$4.25 - $4.75

Amortization of intangible assets

 

(0.29

)

 

(1.14

)

Severance, restructuring, and acquisition integration costs

 

(0.18

)

 

(0.35

)

GAAP income from continuing operations per diluted share attributable to Belden common stockholders

 

$0.23 - $0.38

 

$2.76 - $3.26

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 2020, the Grass Valley divestment plan and the results of our restructuring program. 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 inability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); the inability to achieve our strategic priorities in emerging markets; the increased influence of chief information officers and similar high-level executives; the presence of substitute products in the marketplace; the inability of the Company to develop and introduce new products and competitive responses to our products; the increased prevalence of cloud computing; the inability to successfully complete and integrate acquisitions in furtherance of the Company’s strategic plan; the impact of changes in global tariffs and trade agreements; difficulty in forecasting revenue due to the unpredictable timing of orders related to customer projects; foreign and domestic political, economic and other uncertainties, including changes in currency exchange rates; changes in tax laws and variability in the Company’s quarterly and annual effective tax rates; the impact of a challenging global economy or a downturn in served markets; the competitiveness of the global markets in which we operate; volatility in credit and foreign exchange markets; the cost and availability of raw materials including copper, plastic compounds, electronic components, and other materials; the inability to obtain components in sufficient quantities on commercially reasonable terms; disruptions in the Company’s information systems including due to cyber-attacks; perceived or actual product failures; risks related to the use of open source software; disruption of, or changes in, the Company’s key distribution channels; 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; the impact of regulatory requirements and other legal compliance issues; 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 quarter ended December 31, 2018, filed with the SEC on February 20, 2019. 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 and enterprise 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.

Belden Investor Relations
314-854-8054
Investor.Relations@Belden.com

Source: Belden Inc.

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