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Belden Reports Strong Results for Third Quarter 2021

November 03, 2021

ST. LOUIS--(BUSINESS WIRE)-- Belden Inc. (NYSE: BDC), a leading global supplier of specialty networking solutions, today reported fiscal third quarter 2021 results for the period ended October 3, 2021.

Third Quarter 2021

Revenues for the quarter totaled $630.8 million, increasing $155.0 million, or 33%, compared to $475.8 million in the year-ago period. Net income was $41.3 million, compared to $20.6 million in the year-ago period. Net income as a percentage of revenue was 6.5% compared to 4.3% in the year-ago period. EPS totaled $0.91, compared to $0.46 in the third quarter 2020.

Adjusted revenues for the quarter totaled $631.3 million. Adjusted EBITDA was $100.7 million, increasing $35.4 million, or 54%, compared to $65.3 million in the year-ago period. Adjusted EBITDA margin was 16.0%, compared to 13.7% in the year-ago period. Adjusted EPS was $1.31, increasing 82% compared to $0.72 in the third 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 delivered another outstanding quarter. Total revenues and EPS exceeded the high end of our guidance ranges, with revenues increasing 33% overall and 24% on an organic basis. Our teams are navigating the inflationary environment and the global supply chain challenges, yet driving solid growth, margin expansion, and cash flow. We took steps to further strengthen our balance sheet during the quarter, and net leverage of 2.8x is now back within our targeted range for the first time since the outbreak of the pandemic.”

Outlook

“I am encouraged by our order rates and continued solid execution. We are increasing our full year 2021 guidance to reflect better than expected performance in the third quarter and an improved outlook for the fourth quarter. We are executing several strategic growth initiatives, such as enhancing our solution selling capabilities and introducing innovative new products, and our strong results reflect the significant momentum we are gaining with customers. I am optimistic about our future and confident that the Company is well positioned to drive profitable growth and shareholder value,” said Mr. Vestjens.

On a GAAP basis, the Company expects fourth quarter 2021 revenues to be $614 - $629 million and EPS to be $0.77 - $0.87. For the full year ending December 31, 2021, the Company now expects revenues to be $2.383 - $2.398 billion, compared to prior guidance of $2.318 - $2.348 billion, and EPS to be $3.27 - $3.37, compared to prior guidance of $2.83 - $3.03.

The Company expects fourth quarter 2021 adjusted revenues to be $615 - $630 million and adjusted EPS to be $1.21 - $1.31. For the full year ending December 31, 2021, the Company now expects adjusted revenues to be $2.385 - $2.400 billion, compared to prior guidance of $2.320 - $2.350 billion, and adjusted EPS to be $4.67 - $4.77, compared to prior guidance of $4.37 - $4.57.

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 800-367-2403, with confirmation code 6838798. 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

 

Nine Months Ended

 

October 3,
2021

 

September 27,
2020

 

October 3,
2021

 

September 27,
2020

 

 

.

 

.

 

.

 

 

(In thousands, except per share data)

Revenues

$

630,835

 

 

$

475,839

 

 

$

1,769,190

 

 

$

1,364,176

 

Cost of sales

(407,559

)

 

(308,247

)

 

(1,143,035

)

 

(876,143

)

Gross profit

223,276

 

 

167,592

 

 

626,155

 

 

488,033

 

Selling, general and administrative expenses

(109,963

)

 

(85,037

)

 

(313,966

)

 

(275,129

)

Research and development expenses

(32,451

)

 

(30,324

)

 

(94,873

)

 

(81,633

)

Amortization of intangibles

(9,696

)

 

(16,104

)

 

(28,745

)

 

(48,306

)

Operating income

71,166

 

 

36,127

 

 

188,571

 

 

82,965

 

Interest expense, net

(16,251

)

 

(15,607

)

 

(46,640

)

 

(43,188

)

Loss on debt extinguishment

(5,715

)

 

 

 

(5,715

)

 

 

Non-operating pension benefit

992

 

 

680

 

 

3,121

 

 

2,079

 

Income from continuing operations before taxes

50,192

 

 

21,200

 

 

139,337

 

 

41,856

 

Income tax expense

(8,875

)

 

(631

)

 

(25,307

)

 

(3,223

)

Income from continuing operations

41,317

 

 

20,569

 

 

114,030

 

 

38,633

 

Loss from discontinued operations, net of tax

 

 

(6,231

)

 

 

 

(103,395

)

Gain on disposal of discontinued operations, net of tax

 

 

2,743

 

 

 

 

2,743

 

Net income (loss)

41,317

 

 

17,081

 

 

114,030

 

 

(62,019

)

Less: Net income attributable to noncontrolling interest

53

 

 

85

 

 

336

 

 

79

 

Net income (loss) attributable to Belden stockholders

$

41,264

 

 

$

16,996

 

 

$

113,694

 

 

$

(62,098

)

 

 

 

 

 

 

 

 

Weighted average number of common shares and equivalents:

 

 

 

 

 

 

 

Basic

44,851

 

 

44,567

 

 

44,762

 

 

44,834

 

Diluted

45,425

 

 

44,709

 

 

45,242

 

 

44,968

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Continuing operations

$

0.92

 

 

$

0.46

 

 

$

2.54

 

 

$

0.86

 

Discontinued operations

 

 

(0.14

)

 

 

 

(2.31

)

Disposal of discontinued operations

 

 

0.06

 

 

 

 

0.06

 

Net income (loss)

$

0.92

 

 

$

0.38

 

 

$

2.54

 

 

$

(1.39

)

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Continuing operations

$

0.91

 

 

$

0.46

 

 

$

2.51

 

 

$

0.86

 

Discontinued operations

 

 

(0.14

)

 

 

 

(2.31

)

Disposal of discontinued operations

 

 

0.06

 

 

 

 

0.06

 

Net income (loss)

$

0.91

 

 

$

0.38

 

 

$

2.51

 

 

$

(1.39

)

 

 

 

 

 

 

 

 

Common stock dividends declared per share

$

0.05

 

 

$

0.05

 

 

$

0.15

 

 

$

0.15

 

 
BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)

 

 

Enterprise Solutions

 

Industrial Solutions

 

Total Segments

 

 

 

 

 

 

 

 

(In thousands, except percentages)

 

 

 

 

 

 

 

For the three months ended October 3, 2021

 

 

 

 

 

 

Segment Revenues

 

$

286,231

 

 

$

345,107

 

 

$

631,338

 

Segment EBITDA

 

40,156

 

 

59,582

 

 

99,738

 

Segment EBITDA margin

 

14.0

%

 

17.3

%

 

15.8

%

Depreciation expense

 

5,270

 

 

6,000

 

 

11,270

 

Amortization of intangibles

 

4,427

 

 

5,269

 

 

9,696

 

Amortization of software development intangible assets

 

20

 

 

770

 

 

790

 

Severance, restructuring, and acquisition integration costs

 

3,381

 

 

947

 

 

4,328

 

Adjustments related to acquisitions and divestitures

 

(510

)

 

2,974

 

 

2,464

 

 

 

 

 

 

 

 

For the three months ended September 27, 2020

 

 

 

 

 

 

Segment Revenues

 

$

229,097

 

 

$

246,742

 

 

$

475,839

 

Segment EBITDA

 

26,250

 

 

38,391

 

 

64,641

 

Segment EBITDA margin

 

11.5

%

 

15.6

%

 

13.6

%

Depreciation expense

 

5,005

 

 

5,450

 

 

10,455

 

Amortization of intangibles

 

5,408

 

 

10,696

 

 

16,104

 

Amortization of software development intangible assets

 

73

 

 

456

 

 

529

 

Severance, restructuring, and acquisition integration costs

 

1,337

 

 

20

 

 

1,357

 

 

 

 

 

 

 

 

For the nine months ended October 3, 2021

 

 

 

 

 

 

Segment Revenues

 

$

780,114

 

 

$

990,428

 

 

$

1,770,542

 

Segment EBITDA

 

103,531

 

 

167,676

 

 

271,207

 

Segment EBITDA margin

 

13.3

%

 

16.9

%

 

15.3

%

Depreciation expense

 

15,985

 

 

18,212

 

 

34,197

 

Amortization of intangibles

 

13,202

 

 

15,543

 

 

28,745

 

Amortization of software development intangible assets

 

72

 

 

2,014

 

 

2,086

 

Severance, restructuring, and acquisition integration costs

 

7,756

 

 

4,783

 

 

12,539

 

Adjustments related to acquisitions and divestitures

 

(6,828

)

 

11,825

 

 

4,997

 

 

 

 

 

 

 

 

For the nine months ended September 27, 2020

 

 

 

 

 

 

Segment Revenues

 

$

644,684

 

 

$

719,492

 

 

$

1,364,176

 

Segment EBITDA

 

73,193

 

 

100,367

 

 

173,560

 

Segment EBITDA margin

 

11.4

%

 

13.9

%

 

12.7

%

Depreciation expense

 

15,208

 

 

15,861

 

 

31,069

 

Amortization of intangibles

 

16,266

 

 

32,040

 

 

48,306

 

Amortization of software development intangible assets

 

184

 

 

1,061

 

 

1,245

 

Severance, restructuring, and acquisition integration costs

 

6,310

 

 

3,138

 

 

9,448

 

Adjustments related to acquisitions and divestitures

 

125

 

 

 

 

125

 

 
BELDEN INC.
OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS

(Unaudited)

 

 

Three Months Ended

 

Nine Months Ended

 

 

October 3,
2021

 

September 27,
2020

 

October 3,
2021

 

September 27,
2020

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Total Segment Revenues

 

$

631,338

 

 

$

475,839

 

 

$

1,770,542

 

 

$

1,364,176

 

Adjustments related to acquisitions

 

(503

)

 

 

 

(1,352

)

 

 

Consolidated Revenues

 

$

630,835

 

 

$

475,839

 

 

$

1,769,190

 

 

$

1,364,176

 

 

 

 

 

 

 

 

 

 

Total Segment EBITDA

 

$

99,738

 

 

$

64,641

 

 

$

271,207

 

 

$

173,560

 

Eliminations

 

(24

)

 

(69

)

 

(72

)

 

(402

)

Total non-operating pension benefit

 

992

 

 

680

 

 

3,121

 

 

2,079

 

Consolidated Adjusted EBITDA (1)

 

100,706

 

 

65,252

 

 

274,256

 

 

175,237

 

Interest expense, net

 

(16,251

)

 

(15,607

)

 

(46,640

)

 

(43,188

)

Depreciation expense

 

(11,270

)

 

(10,455

)

 

(34,197

)

 

(31,069

)

Amortization of intangibles

 

(9,696

)

 

(16,104

)

 

(28,745

)

 

(48,306

)

Severance, restructuring, and acquisition integration costs

 

(4,328

)

 

(1,357

)

 

(12,539

)

 

(9,448

)

Loss on debt extinguishment

 

(5,715

)

 

 

 

(5,715

)

 

 

Adjustments related to acquisitions and divestitures

 

(2,464

)

 

 

 

(4,997

)

 

(125

)

Amortization of software development intangible assets

 

(790

)

 

(529

)

 

(2,086

)

 

(1,245

)

Income from continuing operations before taxes

 

$

50,192

 

 

$

21,200

 

 

$

139,337

 

 

$

41,856

 

 

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

BELDEN INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

October 3, 2021

 

December 31, 2020

 

 

(Unaudited)

 

 

 

 

(In thousands)

ASSETS

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

457,753

 

 

$

501,994

 

Receivables, net

 

421,703

 

 

296,817

 

Inventories, net

 

312,088

 

 

247,298

 

Other current assets

 

48,890

 

 

52,289

 

Assets held for sale

 

27,559

 

 

 

Total current assets

 

1,267,993

 

 

1,098,398

 

Property, plant and equipment, less accumulated depreciation

 

334,407

 

 

368,620

 

Operating lease right-of-use assets

 

57,141

 

 

54,787

 

Goodwill

 

1,283,364

 

 

1,251,938

 

Intangible assets, less accumulated amortization

 

307,186

 

 

287,071

 

Deferred income taxes

 

29,057

 

 

29,536

 

Other long-lived assets

 

56,037

 

 

49,384

 

 

 

$

3,335,185

 

 

$

3,139,734

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

 

Accounts payable

 

$

321,253

 

 

$

244,120

 

Accrued liabilities

 

301,174

 

 

276,641

 

Total current liabilities

 

622,427

 

 

520,761

 

Long-term debt

 

1,492,642

 

 

1,573,726

 

Postretirement benefits

 

144,526

 

 

160,400

 

Deferred income taxes

 

42,867

 

 

38,400

 

Long-term operating lease liabilities

 

47,054

 

 

46,398

 

Other long-term liabilities

 

39,898

 

 

42,998

 

Stockholders’ equity:

 

 

 

 

Common stock

 

503

 

 

503

 

Additional paid-in capital

 

830,368

 

 

823,605

 

Retained earnings

 

557,764

 

 

450,876

 

Accumulated other comprehensive loss

 

(131,265

)

 

(191,851

)

Treasury stock

 

(317,852

)

 

(332,552

)

Total Belden stockholders’ equity

 

939,518

 

 

750,581

 

Noncontrolling interests

 

6,253

 

 

6,470

 

Total stockholders’ equity

 

945,771

 

 

757,051

 

 

 

$

3,335,185

 

 

$

3,139,734

 

BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited)

 

 

Nine Months Ended

 

 

October 3, 2021

 

September 27, 2020

 

 

 

 

 

 

 

(In thousands)

Cash flows from operating activities:

 

 

 

 

Net income (loss)

 

$

114,030

 

 

$

(62,019

)

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

 

 

 

 

Depreciation and amortization

 

65,028

 

 

80,620

 

Share-based compensation

 

18,242

 

 

13,650

 

Asset impairment

 

9,283

 

 

113,007

 

Loss on debt extinguishment

 

5,715

 

 

 

Gain on disposal of business

 

 

 

(2,743

)

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

 

 

 

 

Receivables

 

(128,997

)

 

35,645

 

Inventories

 

(58,900

)

 

(9,327

)

Accounts payable

 

73,740

 

 

(69,579

)

Accrued liabilities

 

17,796

 

 

(11,646

)

Income taxes

 

5,159

 

 

(30,416

)

Other assets

 

(1,794

)

 

1,860

 

Other liabilities

 

(17,383

)

 

(20,363

)

Net cash provided by operating activities

 

101,919

 

 

38,689

 

Cash flows from investing activities:

 

 

 

 

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

 

(73,749

)

 

590

 

Capital expenditures

 

(55,569

)

 

(56,809

)

Purchase of intangible assets

 

(3,650

)

 

 

Proceeds from disposal of tangible assets

 

3,249

 

 

3,090

 

Proceeds from disposal of businesses, net of cash sold

 

10,798

 

 

50,051

 

Net cash used for investing activities

 

(118,921

)

 

(3,078

)

Cash flows from financing activities:

 

 

 

 

Payments under borrowing arrangements

 

(360,304

)

 

(190,000

)

Debt issuance costs paid

 

(7,785

)

 

 

Cash dividends paid

 

(6,740

)

 

(6,800

)

Payments under financing lease obligations

 

(3,116

)

 

(154

)

Withholding tax payments for share-based payment awards

 

(2,103

)

 

(1,331

)

Payments under share repurchase program

 

 

 

(35,000

)

Payment of earnout consideration

 

 

 

(29,300

)

Borrowings under credit arrangements

 

356,010

 

 

190,000

 

Net cash used for financing activities

 

(24,038

)

 

(72,585

)

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

 

(3,201

)

 

2,586

 

Decrease in cash and cash equivalents

 

(44,241

)

 

(34,388

)

Cash and cash equivalents, beginning of period

 

501,994

 

 

425,885

 

Cash and cash equivalents, end of period

 

$

457,753

 

 

$

391,497

 

 

For the period ended September 27, 2020, the Condensed Consolidated Cash Flow Statement includes the results of discontinued operations up to the disposal date, 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

 

Nine Months Ended

 

 

October 3,
2021

 

September 27,
2020

 

October 3,
2021

 

September 27,
2020

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except percentages and per share amounts)

GAAP revenues

 

$

630,835

 

 

$

475,839

 

 

$

1,769,190

 

 

$

1,364,176

 

Adjustments related to acquisitions

 

503

 

 

 

 

1,352

 

 

 

Adjusted revenues

 

$

631,338

 

 

$

475,839

 

 

$

1,770,542

 

 

$

1,364,176

 

GAAP gross profit

 

$

223,276

 

 

$

167,592

 

 

$

626,155

 

 

$

488,033

 

Adjustments related to acquisitions and divestitures

 

890

 

 

 

 

3,701

 

 

125

 

Severance, restructuring, and acquisition integration costs

 

2,943

 

 

85

 

 

4,306

 

 

222

 

Amortization of software development intangible assets

 

790

 

 

529

 

 

2,086

 

 

1,245

 

Adjusted gross profit

 

$

227,899

 

 

$

168,206

 

 

$

636,248

 

 

$

489,625

 

GAAP gross profit margin

 

35.4

%

 

35.2

%

 

35.4

%

 

35.8

%

Adjusted gross profit margin

 

36.1

%

 

35.3

%

 

35.9

%

 

35.9

%

GAAP selling, general and administrative expenses

 

$

(109,963

)

 

$

(85,037

)

 

$

(313,966

)

 

$

(275,129

)

Severance, restructuring, and acquisition integration costs

 

1,385

 

 

1,272

 

 

8,233

 

 

9,226

 

Adjustments related to acquisitions and divestitures

 

1,574

 

 

 

 

1,296

 

 

 

Adjusted selling, general and administrative expenses

 

$

(107,004

)

 

$

(83,765

)

 

$

(304,437

)

 

$

(265,903

)

GAAP and adjusted research and development expenses

 

$

(32,451

)

 

$

(30,324

)

 

$

(94,873

)

 

$

(81,633

)

GAAP income from continuing operations

 

$

41,317

 

 

$

20,569

 

 

$

114,030

 

 

$

38,633

 

Interest expense, net

 

16,251

 

 

15,607

 

 

46,640

 

 

43,188

 

Income tax expense

 

8,875

 

 

631

 

 

25,307

 

 

3,223

 

Loss on debt extinguishment

 

5,715

 

 

 

 

5,715

 

 

 

Total non-operating adjustments

 

30,841

 

 

16,238

 

 

77,662

 

 

46,411

 

Amortization of intangible assets

 

9,696

 

 

16,104

 

 

28,745

 

 

48,306

 

Severance, restructuring, and acquisition integration costs

 

4,328

 

 

1,357

 

 

12,539

 

 

9,448

 

Adjustments related to acquisitions and divestitures

 

2,464

 

 

 

 

4,997

 

 

125

 

Amortization of software development intangible assets

 

790

 

 

529

 

 

2,086

 

 

1,245

 

Total operating income adjustments

 

17,278

 

 

17,990

 

 

48,367

 

 

59,124

 

Depreciation expense

 

11,270

 

 

10,455

 

 

34,197

 

 

31,069

 

Adjusted EBITDA

 

$

100,706

 

 

$

65,252

 

 

$

274,256

 

 

$

175,237

 

GAAP income from continuing operations margin

 

6.5

%

 

4.3

%

 

6.4

%

 

2.8

%

Adjusted EBITDA margin

 

16.0

%

 

13.7

%

 

15.5

%

 

12.8

%

GAAP income from continuing operations

 

$

41,317

 

 

$

20,569

 

 

$

114,030

 

 

$

38,633

 

Less: Net income attributable to noncontrolling interest

 

53

 

 

85

 

 

336

 

 

79

 

GAAP net income from continuing operations attributable to Belden stockholders

 

$

41,264

 

 

$

20,484

 

 

$

113,694

 

 

$

38,554

 

GAAP income from continuing operations

 

$

41,317

 

 

$

20,569

 

 

$

114,030

 

 

$

38,633

 

Plus: Operating income adjustments from above

 

17,278

 

 

17,990

 

 

48,367

 

 

59,124

 

Plus: Loss on debt extinguishment

 

5,715

 

 

 

 

5,715

 

 

 

Less: Net income attributable to noncontrolling interest

 

53

 

 

85

 

 

336

 

 

79

 

Less: Tax effect of adjustments above

 

4,638

 

 

6,292

 

 

11,002

 

 

14,687

 

Adjusted net income from continuing operations attributable to Belden stockholders

 

$

59,619

 

 

$

32,182

 

 

$

156,774

 

 

$

82,991

 

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

 

$

0.91

 

 

$

0.46

 

 

$

2.51

 

 

$

0.86

 

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

 

$

1.31

 

 

$

0.72

 

 

$

3.47

 

 

$

1.85

 

GAAP and adjusted diluted weighted average shares

 

45,425

 

 

44,709

 

 

45,242

 

 

44,968

 

 
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

 

Nine Months Ended

 

 

October 3, 2021

 

September 27, 2020

 

October 3, 2021

 

September 27, 2020

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

GAAP net cash provided by operating activities

 

$

74,982

 

 

$

50,819

 

 

$

101,919

 

 

$

38,689

 

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

 

(24,703

)

 

(15,075

)

 

(52,320

)

 

(53,719

)

Non-GAAP free cash flow

 

$

50,279

 

 

$

35,744

 

 

$

49,599

 

 

$

(15,030

)

 
BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES

2021 Guidance

 

 

Year Ended

 

Three Months Ended

 

 

December 31, 2021

 

December 31, 2021

 

 

(In thousands)

GAAP revenues

 

$2.383 - $2.398 billion

 

$614 - $629 million

Adjustments related to acquisitions

 

$2 million

 

$1 million

Adjusted revenues

 

$2.385 - $2.400 billion

 

$615 - $630 million

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

 

$3.27 - $3.37

 

$0.77 - $0.87

Amortization of intangible assets

 

0.73

 

0.18

Severance, restructuring, and acquisition integration costs

 

0.47

 

0.25

Loss from debt extinguishment

 

0.10

 

Adjustments related to acquisitions and divestitures

 

0.10

 

0.01

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

 

$4.67 - $4.77

 

$1.21 - $1.31

 

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 fourth 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, particularly given the recent increase in inflation and the financial impact if we are not able to pass through cost increases to customers; the impact of the recent disruptions in the global supply chain, including 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 Quarterly Report on Form 10-Q for the period ended July 4, 2021, filed with the SEC on August 9, 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 America, Europe, Asia, and Africa. 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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