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Belden Reports Strong Results for Second Quarter 2021

August 04, 2021

ST. LOUIS--(BUSINESS WIRE)-- Belden Inc. (NYSE: BDC), a leading global supplier of specialty networking solutions, today reported fiscal second quarter 2021 results for the period ended July 4, 2021.

Second Quarter 2021

Revenues for the quarter totaled $602.0 million, increasing $177.2 million, or 41.7%, compared to $424.8 million in the year-ago period. Net income was $44.0 million, compared to $3.2 million in the year-ago period. Net income as a percentage of revenue was 7.3% compared to 0.7% in the year-ago period. EPS totaled $0.97, compared to $0.07 in the second quarter 2020.

Adjusted revenues for the quarter totaled $602.8 million. Adjusted EBITDA was $93.4 million, increasing $44.3 million, or 90.2%, compared to $49.1 million in the year-ago period. Adjusted EBITDA margin was 15.5%, compared to 11.6% in the year-ago period. Adjusted EPS was $1.21, compared to $0.46 in the second quarter 2020. Adjusted results are non-GAAP measures, and a non-GAAP reconciliation table is provided as an appendix to this release.

Roel Vestjens, President and CEO of Belden Inc., said, “We performed well again this quarter, and I am pleased to report total revenues and EPS that exceeded the high end of our guidance ranges. Demand continued to strengthen across our end markets, with second quarter revenues increasing 42% overall and 28% on an organic basis. Our global teams are executing our strategic plans and successfully navigating the inflationary environment, resulting in meaningful earnings growth, free cash flow growth and margin expansion.”

Outlook

“I am encouraged by our recent order rates and solid execution. We are increasing our full year 2021 guidance to reflect better than expected performance in the second quarter and an improved outlook for the remainder of the year. We are taking bold actions to accelerate organic growth, including aligning our portfolio around growth markets, driving innovation, and enhancing our commercial and solution-selling capabilities. Our strong first half performance is very gratifying, and I am pleased that our strategic growth initiatives are gaining traction,” said Mr. Vestjens.

On a GAAP basis, the Company expects third quarter 2021 revenues to be $589 – $604 million and EPS to be $0.56 - $0.66. For the full year ending December 31, 2021, the Company now expects revenues to be $2.318 - $2.348 billion, compared to prior guidance of $2.130 - $2.180 billion, and EPS to be $2.83 - $3.03, compared to prior guidance of $1.97 - $2.27.

The Company expects third quarter 2021 adjusted revenues to be $590 - $605 million and adjusted EPS to be $1.11 - $1.21. For the full year ending December 31, 2021, the Company now expects adjusted revenues to be $2.320 - $2.350 billion, compared to prior guidance of $2.130 - $2.180 billion, and adjusted EPS to be $4.37 - $4.57, compared to prior guidance of $3.50 - $3.80.

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 https://investor.belden.com. The dial-in number for participants is 800-353-6461, with confirmation code 8744927. 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 income from continuing operations and income from continuing operations per diluted share attributable to Belden stockholders, respectively.

Use of Non-GAAP Financial Information

Adjusted results are non-GAAP measures that reflect certain adjustments the Company makes to provide insight into operating results. GAAP to non-GAAP reconciliations accompany the condensed consolidated financial statements included in this release and have been published to the investor relations section of the Company’s website at https://investor.belden.com.

BELDEN INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

July 4, 2021

 

June 28, 2020

 

July 4, 2021

 

June 28, 2020

 

 

(In thousands, except per share data)

Revenues

 

$

601,974

 

 

$

424,811

 

 

$

1,138,355

 

 

$

888,337

 

Cost of sales

 

(390,439

)

 

(274,871

)

 

(735,476

)

 

(567,896

)

Gross profit

 

211,535

 

 

149,940

 

 

402,879

 

 

320,441

 

Selling, general and administrative expenses

 

(105,554

)

 

(91,703

)

 

(204,003

)

 

(190,092

)

Research and development expenses

 

(30,922

)

 

(25,090

)

 

(62,422

)

 

(51,309

)

Amortization of intangibles

 

(9,102

)

 

(16,017

)

 

(19,049

)

 

(32,202

)

Operating income

 

65,957

 

 

17,130

 

 

117,405

 

 

46,838

 

Interest expense, net

 

(14,878

)

 

(14,257

)

 

(30,389

)

 

(27,581

)

Non-operating pension benefit

 

1,445

 

 

700

 

 

2,129

 

 

1,399

 

Income from continuing operations before taxes

 

52,524

 

 

3,573

 

 

89,145

 

 

20,656

 

Income tax expense

 

(8,552

)

 

(400

)

 

(16,432

)

 

(2,592

)

Income from continuing operations

 

43,972

 

 

3,173

 

 

72,713

 

 

18,064

 

Loss from discontinued operations, net of tax

 

 

 

(71,054

)

 

 

 

(97,164

)

Net income (loss)

 

43,972

 

 

(67,881

)

 

72,713

 

 

(79,100

)

Less: Net income (loss) attributable to noncontrolling interest

 

208

 

 

24

 

 

283

 

 

(6

)

Net income (loss) attributable to Belden stockholders

 

$

43,764

 

 

$

(67,905

)

 

$

72,430

 

 

$

(79,094

)

Weighted average number of common shares and equivalents:

 

 

 

 

 

 

 

 

Basic

 

44,759

 

 

44,557

 

 

44,717

 

 

44,969

 

Diluted

 

45,262

 

 

44,665

 

 

45,162

 

 

45,097

 

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

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.98

 

 

$

0.07

 

 

$

1.62

 

 

$

0.40

 

Discontinued operations

 

 

 

(1.59

)

 

 

 

(2.16

)

Net income (loss)

 

$

0.98

 

 

$

(1.52

)

 

$

1.62

 

 

$

(1.76

)

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

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.97

 

 

$

0.07

 

 

$

1.60

 

 

$

0.40

 

Discontinued operations

 

 

 

(1.59

)

 

 

 

(2.16

)

Net income (loss)

 

$

0.97

 

 

$

(1.52

)

 

$

1.60

 

 

$

(1.76

)

Common stock dividends declared per share

 

$

0.05

 

 

$

0.05

 

 

$

0.10

 

 

$

0.10

 

BELDEN INC.

OPERATING SEGMENT INFORMATION

(Unaudited)

 

 

 

Enterprise Solutions

 

Industrial Solutions

 

Total Segments

 

(In thousands, except percentages)

 

 

 

 

 

 

 

For the three months ended July 4, 2021

 

 

 

 

 

 

Segment Revenues

 

$

267,528

 

 

$

335,295

 

 

$

602,823

 

Segment EBITDA

 

35,269

 

 

56,731

 

 

92,000

 

Segment EBITDA margin

 

13.2

%

 

16.9

%

 

15.3

%

Depreciation expense

 

5,365

 

 

6,002

 

 

11,367

 

Amortization of intangibles

 

4,439

 

 

4,663

 

 

9,102

 

Amortization of software development intangible assets

 

20

 

 

587

 

 

607

 

Severance, restructuring, and acquisition integration costs

 

2,460

 

 

580

 

 

3,040

 

Adjustments related to acquisitions and divestitures

 

(32

)

 

1,944

 

 

1,912

 

 

 

 

 

 

 

 

For the three months ended June 28, 2020

 

 

 

 

 

 

Segment Revenues

 

$

203,374

 

 

$

221,437

 

 

$

424,811

 

Segment EBITDA

 

22,231

 

 

26,449

 

 

48,680

 

Segment EBITDA margin

 

10.9

%

 

11.9

%

 

11.5

%

Depreciation expense

 

5,122

 

 

5,210

 

 

10,332

 

Amortization of intangibles

 

5,354

 

 

10,663

 

 

16,017

 

Amortization of software development intangible assets

 

56

 

 

330

 

 

386

 

Severance, restructuring, and acquisition integration costs

 

2,423

 

 

2,049

 

 

4,472

 

Adjustments related to acquisitions and divestitures

 

105

 

 

 

 

105

 

 

 

 

 

 

 

 

For the six months ended July 4, 2021

 

 

 

 

 

 

Segment Revenues

 

$

493,883

 

 

$

645,321

 

 

$

1,139,204

 

Segment EBITDA

 

63,375

 

 

108,094

 

 

171,469

 

Segment EBITDA margin

 

12.8

%

 

16.8

%

 

15.1

%

Depreciation expense

 

10,715

 

 

12,212

 

 

22,927

 

Amortization of intangibles

 

8,775

 

 

10,274

 

 

19,049

 

Amortization of software development intangible assets

 

52

 

 

1,244

 

 

1,296

 

Severance, restructuring, and acquisition integration costs

 

4,375

 

 

3,836

 

 

8,211

 

Adjustments related to acquisitions and divestitures

 

(6,318

)

 

8,851

 

 

2,533

 

 

 

 

 

 

 

 

For the six months ended June 28, 2020

 

 

 

 

 

 

Segment Revenues

 

$

415,587

 

 

$

472,750

 

 

$

888,337

 

Segment EBITDA

 

46,943

 

 

61,976

 

 

108,919

 

Segment EBITDA margin

 

11.3

%

 

13.1

%

 

12.3

%

Depreciation expense

 

10,203

 

 

10,411

 

 

20,614

 

Amortization of intangibles

 

10,858

 

 

21,344

 

 

32,202

 

Amortization of software development intangible assets

 

111

 

 

605

 

 

716

 

Severance, restructuring, and acquisition integration costs

 

4,973

 

 

3,118

 

 

8,091

 

Adjustments related to acquisitions and divestitures

 

125

 

 

 

 

125

 

BELDEN INC.

OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

July 4, 2021

 

June 28, 2020

 

July 4, 2021

 

June 28, 2020

 

 

(In thousands)

Total Segment Revenues

 

$

602,823

 

 

$

424,811

 

 

$

1,139,204

 

 

$

888,337

 

Adjustments related to acquisitions

 

(849

)

 

 

 

(849

)

 

 

Consolidated Revenues

 

$

601,974

 

 

$

424,811

 

 

$

1,138,355

 

 

$

888,337

 

Total Segment EBITDA

 

$

92,000

 

 

$

48,680

 

 

$

171,469

 

 

$

108,919

 

Eliminations

 

(15

)

 

(238

)

 

(48

)

 

(333

)

Total non-operating pension benefit

 

1,445

 

 

700

 

 

2,129

 

 

1,399

 

Consolidated Adjusted EBITDA (1)

 

93,430

 

 

49,142

 

 

173,550

 

 

109,985

 

Interest expense, net

 

(14,878

)

 

(14,257

)

 

(30,389

)

 

(27,581

)

Depreciation expense

 

(11,367

)

 

(10,332

)

 

(22,927

)

 

(20,614

)

Amortization of intangibles

 

(9,102

)

 

(16,017

)

 

(19,049

)

 

(32,202

)

Severance, restructuring, and acquisition integration costs

 

(3,040

)

 

(4,472

)

 

(8,211

)

 

(8,091

)

Adjustments related to acquisitions and divestitures

 

(1,912

)

 

(105

)

 

(2,533

)

 

(125

)

Amortization of software development intangible assets

 

(607

)

 

(386

)

 

(1,296

)

 

(716

)

Income from continuing operations before taxes

 

$

52,524

 

 

$

3,573

 

 

$

89,145

 

 

$

20,656

 

(1)

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

BELDEN INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

July 4, 2021

 

December 31, 2020

 

 

(Unaudited)

 

 

 

 

(In thousands)

ASSETS

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

423,291

 

 

$

501,994

 

Receivables, net

 

386,133

 

 

296,817

 

Inventories, net

 

304,821

 

 

247,298

 

Other current assets

 

50,725

 

 

52,289

 

Total current assets

 

1,164,970

 

 

1,098,398

 

Property, plant and equipment, less accumulated depreciation

 

360,338

 

 

368,620

 

Operating lease right-of-use assets

 

59,509

 

 

54,787

 

Goodwill

 

1,286,617

 

 

1,251,938

 

Intangible assets, less accumulated amortization

 

314,283

 

 

287,071

 

Deferred income taxes

 

30,144

 

 

29,536

 

Other long-lived assets

 

54,066

 

 

49,384

 

 

 

$

3,269,927

 

 

$

3,139,734

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

 

Accounts payable

 

$

299,428

 

 

$

244,120

 

Accrued liabilities

 

283,109

 

 

276,641

 

Total current liabilities

 

582,537

 

 

520,761

 

Long-term debt

 

1,527,047

 

 

1,573,726

 

Postretirement benefits

 

152,080

 

 

160,400

 

Deferred income taxes

 

43,205

 

 

38,400

 

Long-term operating lease liabilities

 

49,805

 

 

46,398

 

Other long-term liabilities

 

41,155

 

 

42,998

 

Stockholders’ equity:

 

 

 

 

Common stock

 

503

 

 

503

 

Additional paid-in capital

 

827,139

 

 

823,605

 

Retained earnings

 

518,774

 

 

450,876

 

Accumulated other comprehensive loss

 

(159,391

)

 

(191,851

)

Treasury stock

 

(319,274

)

 

(332,552

)

Total Belden stockholders’ equity

 

867,751

 

 

750,581

 

Noncontrolling interests

 

6,347

 

 

6,470

 

Total stockholders’ equity

 

874,098

 

 

757,051

 

 

 

$

3,269,927

 

 

$

3,139,734

 

BELDEN INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(Unaudited)

 

 

 

Six Months Ended

 

 

July 4, 2021

 

June 28, 2020

 

 

(In thousands)

Cash flows from operating activities:

 

 

 

 

Net income (loss)

 

$

72,430

 

 

$

(79,100

)

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

 

 

 

 

Depreciation and amortization

 

43,272

 

 

53,533

 

Share-based compensation

 

13,513

 

 

8,798

 

Asset impairment

 

6,995

 

 

113,007

 

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

 

 

 

 

Receivables

 

(90,810

)

 

52,602

 

Inventories

 

(50,111

)

 

(9,769

)

Accounts payable

 

50,158

 

 

(86,382

)

Accrued liabilities

 

227

 

 

(13,697

)

Income taxes

 

1,474

 

 

(46,274

)

Other assets

 

(6,924

)

 

13,971

 

Other liabilities

 

(13,570

)

 

(18,819

)

Net cash provided by (used for) operating activities

 

26,654

 

 

(12,130

)

Cash flows from investing activities:

 

 

 

 

Cash from (used for) business acquisitions, net of cash acquired

 

(73,749

)

 

590

 

Capital expenditures

 

(30,866

)

 

(41,734

)

Purchase of intangible assets

 

(3,650

)

 

 

Proceeds from disposal of tangible assets

 

3,249

 

 

3,090

 

Proceeds from disposal of business, net of cash sold

 

10,798

 

 

 

Net cash used for investing activities

 

(94,218

)

 

(38,054

)

Cash flows from financing activities:

 

 

 

 

Cash dividends paid

 

(4,493

)

 

(4,572

)

Withholding tax payments for share-based payment awards

 

(2,009

)

 

(1,058

)

Payments under borrowing arrangements

 

(1,841

)

 

(100,000

)

Debt issuance costs paid

 

(1,728

)

 

 

Other

 

(75

)

 

(111

)

Payments under share repurchase program

 

 

 

(35,000

)

Payment of earnout consideration

 

 

 

(29,300

)

Borrowings on revolver

 

 

 

190,000

 

Net cash provided by (used for) financing activities

 

(10,146

)

 

19,959

 

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

 

(993

)

 

(2,620

)

Decrease in cash and cash equivalents

 

(78,703

)

 

(32,845

)

Cash and cash equivalents, beginning of period

 

501,994

 

 

425,885

 

Cash and cash equivalents, end of period

 

$

423,291

 

 

$

393,040

 

The Condensed Consolidated Cash Flow Statement for the period ended June 28, 2020 includes the results of discontinued operations, which were sold on July 2, 2020.

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

 

Six Months Ended

 

 

July 4, 2021

 

June 28, 2020

 

July 4, 2021

 

June 28, 2020

 

 

(In thousands, except percentages and per share amounts)

GAAP revenues

 

$

601,974

 

 

$

424,811

 

 

$

1,138,355

 

 

$

888,337

 

Adjustments related to acquisitions

 

849

 

 

 

 

849

 

 

 

Adjusted revenues

 

$

602,823

 

 

$

424,811

 

 

$

1,139,204

 

 

$

888,337

 

GAAP gross profit

 

$

211,535

 

 

$

149,940

 

 

$

402,879

 

 

$

320,441

 

Adjustments related to acquisitions and divestitures

 

1,995

 

 

105

 

 

2,811

 

 

125

 

Severance, restructuring, and acquisition integration costs

 

1,103

 

 

92

 

 

1,363

 

 

137

 

Amortization of software development intangible assets

 

607

 

 

386

 

 

1,296

 

 

716

 

Adjusted gross profit

 

$

215,240

 

 

$

150,523

 

 

$

408,349

 

 

$

321,419

 

GAAP gross profit margin

 

35.1

%

 

35.3

%

 

35.4

%

 

36.1

%

Adjusted gross profit margin

 

35.7

%

 

35.4

%

 

35.8

%

 

36.2

%

GAAP selling, general and administrative expenses

 

$

(105,554)

 

 

$

(91,703)

 

 

$

(204,003)

 

 

$

(190,092)

 

Severance, restructuring, and acquisition integration costs

 

1,937

 

 

4,380

 

 

6,848

 

 

7,954

 

Adjustments related to acquisitions and divestitures

 

(83)

 

 

 

 

(278)

 

 

 

Adjusted selling, general and administrative expenses

 

$

(103,700)

 

 

$

(87,323)

 

 

$

(197,433)

 

 

$

(182,138)

 

GAAP and adjusted research and development expenses

 

$

(30,922)

 

 

$

(25,090)

 

 

$

(62,422)

 

 

$

(51,309)

 

GAAP income from continuing operations

 

$

43,972

 

 

$

3,173

 

 

$

72,713

 

 

$

18,064

 

Interest expense, net

 

14,878

 

 

14,257

 

 

30,389

 

 

27,581

 

Income tax expense

 

8,552

 

 

400

 

 

16,432

 

 

2,592

 

Total non-operating adjustments

 

23,430

 

 

14,657

 

 

46,821

 

 

30,173

 

Amortization of intangible assets

 

9,102

 

 

16,017

 

 

19,049

 

 

32,202

 

Severance, restructuring, and acquisition integration costs

 

3,040

 

 

4,472

 

 

8,211

 

 

8,091

 

Adjustments related to acquisitions and divestitures

 

1,912

 

 

105

 

 

2,533

 

 

125

 

Amortization of software development intangible assets

 

607

 

 

386

 

 

1,296

 

 

716

 

Total operating income adjustments

 

14,661

 

 

20,980

 

 

31,089

 

 

41,134

 

Depreciation expense

 

11,367

 

 

10,332

 

 

22,927

 

 

20,614

 

Adjusted EBITDA

 

$

93,430

 

 

$

49,142

 

 

$

173,550

 

 

$

109,985

 

GAAP income from continuing operations margin

 

7.3

%

 

0.7

%

 

6.4

%

 

2.0

%

Adjusted EBITDA margin

 

15.5

%

 

11.6

%

 

15.2

%

 

12.4

%

GAAP income from continuing operations

 

$

43,972

 

 

$

3,173

 

 

$

72,713

 

 

$

18,064

 

Less: Net income (loss) attributable to noncontrolling interest

 

208

 

 

24

 

 

283

 

 

(6)

 

GAAP net income from continuing operations attributable to Belden stockholders

 

$

43,764

 

 

$

3,149

 

 

$

72,430

 

 

$

18,070

 

GAAP income from continuing operations

 

$

43,972

 

 

$

3,173

 

 

$

72,713

 

 

$

18,064

 

Plus: Operating income adjustments from above

 

14,661

 

 

20,980

 

 

31,089

 

 

41,134

 

Less: Net income (loss) attributable to noncontrolling interest

 

208

 

 

24

 

 

283

 

 

(6)

 

Less: Tax effect of adjustments above

 

3,676

 

 

3,800

 

 

6,364

 

 

8,395

 

Adjusted net income from continuing operations attributable to Belden stockholders

 

$

54,749

 

 

$

20,329

 

 

$

97,155

 

 

$

50,809

 

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

 

$

0.97

 

 

$

0.07

 

 

$

1.60

 

 

$

0.40

 

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

 

$

1.21

 

 

$

0.46

 

 

$

2.15

 

 

$

1.13

 

GAAP and adjusted diluted weighted average shares

 

45,262

 

 

44,665

 

 

45,162

 

 

45,097

 

BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)

We define free cash flow, which is a non-GAAP financial measure, as net cash from operating activities adjusted for capital expenditures net of the proceeds from the disposal of tangible assets. We believe free cash flow provides useful information to investors regarding our ability to generate cash from business operations that is available for acquisitions and other investments, service of debt principal, dividends and share repurchases. We use free cash flow, as defined, as one financial measure to monitor and evaluate performance and liquidity. Non-GAAP financial measures should be considered only in conjunction with financial measures reported according to accounting principles generally accepted in the United States. Our definition of free cash flow may differ from definitions used by other companies.

 

 

Three Months Ended

 

Six Months Ended

 

 

July 4, 2021

 

June 28, 2020

 

July 4, 2021

 

June 28, 2020

 

 

(In thousands)

GAAP net cash provided by (used for) operating activities

 

$

68,149

 

 

$

39,922

 

 

$

26,654

 

 

$

(12,130

)

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

 

(16,406

)

 

(19,799

)

 

(27,617

)

 

(38,644

)

Non-GAAP free cash flow

 

$

51,743

 

 

$

20,123

 

 

$

(963

)

 

$

(50,774

)

BELDEN INC.

RECONCILIATION OF NON-GAAP MEASURES

2021 Guidance

 

 

 

 

Year Ended

 

Three Months Ended

 

 

December 31, 2021

 

October 3, 2021

 

 

(In thousands)

GAAP revenues

 

$2.318 - $2.348 billion

 

$589 - $604 million

Adjustments related to acquisitions

 

$2 million

 

$1 million

Adjusted revenues

 

$2.320 - $2.350 billion

 

$590 - $605 million

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

 

$2.83 - $3.03

 

$0.56 - $0.66

Amortization of intangible assets

 

0.72

 

0.19

Severance, restructuring, and acquisition integration costs

 

0.56

 

0.21

Loss from debt extinguishment

 

0.14

 

0.14

Adjustments related to acquisitions and divestitures

 

0.12

 

0.01

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

 

$4.37 - $4.57

 

$1.11 - $1.21

Our guidance for income from continuing operations 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 subject matter of this release may contain forward-looking statements, including our expectations for the third quarter and full-year 2021 and the results of our restructuring program. Forward-looking statements also include any 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 lack of certainty as to the duration and magnitude of the impact of COVID-19 and the economic recovery from that impact; the impact of a challenging global economy or a downturn in served markets; disruptions in the Company’s information systems including due to cyber-attacks leading to exposures of personally identifiable information; changes in tax laws and 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; the inability to obtain components in sufficient quantities on commercially reasonable terms; the competitiveness of the global markets in which we operate; difficulty in forecasting revenue due to the unpredictable timing of orders related to customer projects as well as the impacts of channel inventory; the presence of substitute products in the marketplace; the increased prevalence of cloud computing; the inability of the Company to develop and introduce new products and competitive responses to our products; the increased influence of chief information officers on purchasing decisions; 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 inability to successfully complete and integrate acquisitions in furtherance of the Company’s strategic plan; foreign and domestic political, economic and other uncertainties, including changes in currency exchange rates; the impact of changes in global tariffs and trade agreements; volatility in credit and foreign exchange markets; the presence of activists proposing certain actions by the Company; 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 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 year ended December 31, 2020, filed with the SEC on February 16, 2021. 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 audio, video and data 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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