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Belden Reports Strong Results for First Quarter 2022

May 04, 2022

ST. LOUIS--(BUSINESS WIRE)-- Belden Inc. (NYSE: BDC), a leading global supplier of specialty networking solutions, today reported fiscal first quarter 2022 results for the period ended April 3, 2022.

First Quarter 2022

Revenues for the quarter totaled $610.4 million, increasing $101.7 million, or 20%, compared to $508.7 million in the year-ago period. Net income was $44.1 million, compared to $29.1 million in the year-ago period. Net income as a percentage of revenue was 7.2%, compared to 5.7% in the year-ago period. EPS totaled $0.97, compared to $0.64 in the first quarter 2021.

Adjusted EBITDA was $99.5 million, increasing $22.9 million, or 30%, compared to $76.6 million in the year-ago period. Adjusted EBITDA margin was 16.3%, compared to 15.0% in the year-ago period. Adjusted EPS was $1.31, increasing 46% compared to $0.90 in the first quarter 2021. Adjusted results are non-GAAP measures, and a non-GAAP reconciliation table is provided as an appendix to this release.

The first quarter 2022 included the following portfolio repositioning and capital deployment activities:

  • Divested Tripwire for $350 million in gross proceeds, as previously announced;
  • Acquired Macmon Secure GmbH for $42 million in the Industrial Automation market, as previously announced;
  • Acquired NetModule AG for $24 million in the Industrial Automation market;
  • Acquired Communication Associates, Inc. for $19 million in the Broadband & 5G market, subsequent to quarter end;
  • Redeemed the full €200 million outstanding on our 2026 senior subordinated notes; and
  • Repurchased approximately 885,000 shares for $50 million under our existing authorization.

Roel Vestjens, President and CEO of Belden Inc., said, “We delivered another outstanding quarter that was highlighted by strong financial performance, the completion of the Tripwire divestiture, and accretive capital deployment. Organic growth of 19% and solid execution by our teams resulted in further margin expansion and robust EPS growth. We reduced net leverage to 1.6x while completing strategic acquisitions that add important technologies and enhance our ability to provide comprehensive solutions in the Industrial Automation and Broadband & 5G markets.”

Outlook

“We are increasing our full year 2022 guidance to reflect better than expected performance in the quarter, an improved outlook for the remainder of the year, and recent accretive capital deployments. The macroeconomic environment is very dynamic with considerable uncertainties, but I am encouraged by our strong year-to-date order rates. We continue to gain momentum with our strategic growth initiatives, and I am confident in our ability to support our customers and deliver on our commitments to shareholders,” said Mr. Vestjens.

The Company expects second quarter 2022 revenues to be $625 - $640 million. For the year ending December 31, 2022, the Company now expects revenues to be $2.480 - $2.530 billion, compared to prior guidance of $2.390 - $2.440 billion. The full year revenue guidance now represents organic growth of 7% to 9%.

The Company expects second quarter 2022 GAAP EPS to be $0.98 - $1.08. For the year ending December 31, 2022, the Company now expects GAAP EPS to be $4.31 - $4.61, compared to prior guidance of $4.10 - $4.45.

The Company expects second quarter 2022 adjusted EPS to be $1.35 - $1.45. For the year ending December 31, 2022, the Company now expects adjusted EPS to be $5.55 - $5.85, compared to prior guidance of $5.00 - $5.35. The full year EPS guidance now represents growth of 17% to 23%.

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 888-204-4368, with confirmation code 8215820. 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.

Discontinued Operations

During the first quarter of 2022, we completed the sale of Tripwire, which represented a strategic shift impacting our operations and financial results. As a result, Tripwire is reported within discontinued operations through the disposal date, and prior year results have been recast accordingly.

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

 

 

April 3, 2022

 

April 4, 2021

 

 

 

 

 

 

 

(In thousands, except per share data)

Revenues

 

$

610,371

 

 

$

508,683

 

Cost of sales

 

 

(401,511

)

 

 

(339,500

)

Gross profit

 

 

208,860

 

 

 

169,183

 

Selling, general and administrative expenses

 

 

(103,066

)

 

 

(80,635

)

Research and development expenses

 

 

(23,456

)

 

 

(22,612

)

Amortization of intangibles

 

 

(8,817

)

 

 

(7,993

)

Asset impairments

 

 

 

 

 

(6,995

)

Operating income

 

 

73,521

 

 

 

50,948

 

Interest expense, net

 

 

(14,411

)

 

 

(15,511

)

Loss on debt extinguishment

 

 

(6,392

)

 

 

 

Non-operating pension benefit

 

 

1,200

 

 

 

684

 

Income from continuing operations before taxes

 

 

53,918

 

 

 

36,121

 

Income tax expense

 

 

(9,822

)

 

 

(7,056

)

Income from continuing operations

 

 

44,096

 

 

 

29,065

 

Loss from discontinued operations, net of tax

 

 

(3,685

)

 

 

(324

)

Loss on disposal of discontinued operations, net of tax

 

 

(4,567

)

 

 

 

Net income

 

 

35,844

 

 

 

28,741

 

Less: Net income attributable to noncontrolling interest

 

 

3

 

 

 

75

 

Net income attributable to Belden stockholders

 

$

35,841

 

 

$

28,666

 

 

 

 

 

 

Weighted average number of common shares and equivalents:

 

 

 

 

Basic

 

 

44,811

 

 

 

44,679

 

Diluted

 

 

45,567

 

 

 

45,045

 

 

 

 

 

 

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

 

 

 

 

Continuing operations

 

$

0.98

 

 

$

0.65

 

Discontinued operations

 

 

(0.08

)

 

 

(0.01

)

Disposal of discontinued operations

 

 

(0.10

)

 

 

 

Net income

 

$

0.80

 

 

$

0.64

 

 

 

 

 

 

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

 

 

 

 

Continuing operations

 

$

0.97

 

 

$

0.64

 

Discontinued operations

 

 

(0.08

)

 

 

(0.01

)

Disposal of discontinued operations

 

 

(0.10

)

 

 

 

Net income

 

$

0.79

 

 

$

0.64

 

 

 

 

 

 

Common stock dividends declared per share

 

$

0.05

 

 

$

0.05

 

BELDEN INC.

OPERATING SEGMENT INFORMATION

(Unaudited)

 

 

 

Enterprise Solutions

 

Industrial
Automation
Solutions

 

Total Segments

 

 

 

 

 

 

 

 

(In thousands, except percentages)

 

 

 

 

 

 

 

For the three months ended April 3, 2022

 

 

 

 

 

 

Segment Revenues

 

$

268,430

 

 

$

341,941

 

 

$

610,371

 

Segment EBITDA

 

 

30,821

 

 

 

67,528

 

 

 

98,349

 

Segment EBITDA margin

 

 

11.5

%

 

 

19.7

%

 

 

16.1

%

Depreciation expense

 

 

5,426

 

 

 

5,800

 

 

 

11,226

 

Amortization of intangibles

 

 

4,097

 

 

 

4,720

 

 

 

8,817

 

Amortization of software development intangible assets

 

 

22

 

 

 

985

 

 

 

1,007

 

Severance, restructuring, and acquisition integration costs

 

 

328

 

 

 

3,395

 

 

 

3,723

 

 

 

 

 

 

 

 

For the three months ended April 4, 2021

 

 

 

 

 

 

Segment Revenues

 

$

226,355

 

 

$

282,328

 

 

$

508,683

 

Segment EBITDA

 

 

28,291

 

 

 

47,611

 

 

 

75,902

 

Segment EBITDA margin

 

 

12.5

%

 

 

16.9

%

 

 

14.9

%

Depreciation expense

 

 

5,363

 

 

 

5,364

 

 

 

10,727

 

Amortization of intangibles

 

 

4,336

 

 

 

3,657

 

 

 

7,993

 

Amortization of software development intangible assets

 

 

32

 

 

 

377

 

 

 

409

 

Severance, restructuring, and acquisition integration costs

 

 

1,952

 

 

 

3,219

 

 

 

5,171

 

Adjustments related to acquisitions and divestitures

 

 

(6,307

)

 

 

(67

)

 

 

(6,374

)

Asset impairments

 

 

 

 

 

6,995

 

 

 

6,995

 

BELDEN INC.

OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS

(Unaudited)

 

 

 

Three Months Ended

 

 

April 3, 2022

 

April 4, 2021

 

 

 

 

 

 

 

(In thousands)

Total Segment and Consolidated Revenues

 

$

610,371

 

 

$

508,683

 

 

 

 

 

 

Total Segment EBITDA

 

$

98,349

 

 

$

75,902

 

Eliminations

 

 

(55

)

 

 

(33

)

Total non-operating pension benefit

 

 

1,200

 

 

 

684

 

Consolidated Adjusted EBITDA (1)

 

 

99,494

 

 

 

76,553

 

Interest expense, net

 

 

(14,411

)

 

 

(15,511

)

Depreciation expense

 

 

(11,226

)

 

 

(10,727

)

Amortization of intangibles

 

 

(8,817

)

 

 

(7,993

)

Amortization of software development intangible assets

 

 

(1,007

)

 

 

(409

)

Loss on debt extinguishment

 

 

(6,392

)

 

 

 

Severance, restructuring, and acquisition integration costs

 

 

(3,723

)

 

 

(5,171

)

Asset impairments

 

 

 

 

 

(6,995

)

Adjustments related to acquisitions and divestitures

 

 

 

 

 

6,374

 

Income from continuing operations before taxes

 

$

53,918

 

 

$

36,121

 

(1)

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

BELDEN INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

April 3, 2022

 

December 31, 2021

 

 

 

 

 

 

 

(In thousands)

ASSETS

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

559,582

 

 

$

641,563

 

Receivables, net

 

 

375,626

 

 

 

383,444

 

Inventories, net

 

 

396,497

 

 

 

345,203

 

Other current assets

 

 

61,980

 

 

 

58,283

 

Current assets of discontinued operations

 

 

 

 

 

449,402

 

Total current assets

 

 

1,393,685

 

 

 

1,877,895

 

Property, plant and equipment, less accumulated depreciation

 

 

340,081

 

 

 

343,564

 

Operating lease right-of-use assets

 

 

80,219

 

 

 

75,571

 

Goodwill

 

 

859,276

 

 

 

821,448

 

Intangible assets, less accumulated amortization

 

 

267,429

 

 

 

238,155

 

Deferred income taxes

 

 

32,747

 

 

 

31,486

 

Other long-lived assets

 

 

29,834

 

 

 

29,558

 

 

 

$

3,003,271

 

 

$

3,417,677

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

 

Accounts payable

 

$

359,811

 

 

$

377,765

 

Accrued liabilities

 

 

223,737

 

 

 

278,108

 

Current liabilities of discontinued operations

 

 

 

 

 

99,079

 

Total current liabilities

 

 

583,548

 

 

 

754,952

 

Long-term debt

 

 

1,213,639

 

 

 

1,459,991

 

Postretirement benefits

 

 

116,597

 

 

 

120,997

 

Deferred income taxes

 

 

60,014

 

 

 

49,027

 

Long-term operating lease liabilities

 

 

65,943

 

 

 

61,967

 

Other long-term liabilities

 

 

15,935

 

 

 

14,661

 

Stockholders’ equity:

 

 

 

 

Common stock

 

 

503

 

 

 

503

 

Additional paid-in capital

 

 

826,682

 

 

 

833,627

 

Retained earnings

 

 

539,294

 

 

 

505,717

 

Accumulated other comprehensive loss

 

 

(66,638

)

 

 

(70,566

)

Treasury stock

 

 

(353,071

)

 

 

(313,994

)

Total Belden stockholders’ equity

 

 

946,770

 

 

 

955,287

 

Noncontrolling interests

 

 

825

 

 

 

795

 

Total stockholders’ equity

 

 

947,595

 

 

 

956,082

 

 

 

$

3,003,271

 

 

$

3,417,677

 

BELDEN INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(Unaudited)

 

 

Three Months Ended

 

 

April 3, 2022

 

April 4, 2021

 

 

 

 

 

 

 

(In thousands)

Cash flows from operating activities:

 

 

 

 

Net income

 

$

35,844

 

 

$

28,741

 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

Depreciation and amortization

 

 

21,083

 

 

 

22,196

 

Loss on debt extinguishment

 

 

6,392

 

 

 

 

Share-based compensation

 

 

5,224

 

 

 

7,285

 

Asset impairments

 

 

 

 

 

6,995

 

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

 

 

 

 

Receivables

 

 

37,617

 

 

 

(50,208

)

Inventories

 

 

(46,959

)

 

 

(19,313

)

Accounts payable

 

 

(21,373

)

 

 

3,269

 

Accrued liabilities

 

 

(83,527

)

 

 

(30,765

)

Income taxes

 

 

2,209

 

 

 

1,416

 

Other assets

 

 

(2,915

)

 

 

(4,226

)

Other liabilities

 

 

(11,550

)

 

 

(6,885

)

Net cash used for operating activities

 

 

(57,955

)

 

 

(41,495

)

Cash flows from investing activities:

 

 

 

 

Proceeds from disposal of businesses, net of cash sold

 

 

338,686

 

 

 

1,106

 

Proceeds from disposal of tangible assets

 

 

56

 

 

 

12

 

Capital expenditures

 

 

(10,963

)

 

 

(11,223

)

Cash used for business acquisitions, net of cash acquired

 

 

(65,990

)

 

 

(72,232

)

Net cash provided by (used for) investing activities

 

 

261,789

 

 

 

(82,337

)

Cash flows from financing activities:

 

 

 

 

Payments under borrowing arrangements

 

 

(230,639

)

 

 

(1,841

)

Payments under share repurchase program

 

 

(50,000

)

 

 

 

Withholding tax payments for share-based payment awards

 

 

(3,700

)

 

 

(905

)

Cash dividends paid

 

 

(2,276

)

 

 

(2,246

)

Payments under financing lease obligations

 

 

(45

)

 

 

(43

)

Net cash used for financing activities

 

 

(286,660

)

 

 

(5,035

)

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

 

 

(1,349

)

 

 

(2,277

)

Decrease in cash and cash equivalents

 

 

(84,175

)

 

 

(131,144

)

Cash and cash equivalents, beginning of period

 

 

643,757

 

 

 

501,994

 

Cash and cash equivalents, end of period

 

$

559,582

 

 

$

370,850

 

The Condensed Consolidated Cash Flow Statement includes the results of discontinued operations up to the disposal date, February 22, 2022.

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 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 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 acquisition-related expenses, such as amortization of intangibles and 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

 

 

April 3, 2022

 

April 4, 2021

 

 

 

 

 

 

 

(In thousands, except percentages and per share amounts)

GAAP and adjusted revenues

 

$

610,371

 

 

$

508,683

 

 

 

 

 

 

GAAP gross profit

 

$

208,860

 

 

$

169,183

 

Severance, restructuring, and acquisition integration costs

 

 

1,364

 

 

 

260

 

Amortization of software development intangible assets

 

 

1,007

 

 

 

409

 

Adjustments related to acquisitions and divestitures

 

 

 

 

 

816

 

Adjusted gross profit

 

$

211,231

 

 

$

170,668

 

 

 

 

 

 

GAAP gross profit margin

 

 

34.2

%

 

 

33.3

%

Adjusted gross profit margin

 

 

34.6

%

 

 

33.6

%

 

 

 

 

 

GAAP selling, general and administrative expenses

 

$

(103,066

)

 

$

(80,635

)

Severance, restructuring, and acquisition integration costs

 

 

2,359

 

 

 

4,911

 

Adjustments related to acquisitions and divestitures

 

 

 

 

 

(7,190

)

Adjusted selling, general and administrative expenses

 

$

(100,707

)

 

$

(82,914

)

 

 

 

 

 

GAAP and adjusted research and development expenses

 

$

(23,456

)

 

$

(22,612

)

 

 

 

 

 

GAAP income from continuing operations

 

$

44,096

 

 

$

29,065

 

Interest expense, net

 

 

14,411

 

 

 

15,511

 

Income tax expense

 

 

9,822

 

 

 

7,056

 

Loss on debt extinguishment

 

 

6,392

 

 

 

 

Total non-operating adjustments

 

 

30,625

 

 

 

22,567

 

 

 

 

 

 

Amortization of intangible assets

 

 

8,817

 

 

 

7,993

 

Severance, restructuring, and acquisition integration costs

 

 

3,723

 

 

 

5,171

 

Amortization of software development intangible assets

 

 

1,007

 

 

 

409

 

Asset impairments

 

 

 

 

 

6,995

 

Adjustments related to acquisitions and divestitures

 

 

 

 

 

(6,374

)

Total operating income adjustments

 

 

13,547

 

 

 

14,194

 

Depreciation expense

 

 

11,226

 

 

 

10,727

 

 

 

 

 

 

Adjusted EBITDA

 

$

99,494

 

 

$

76,553

 

 

 

 

 

 

GAAP income from continuing operations margin

 

 

7.2

%

 

 

5.7

%

Adjusted EBITDA margin

 

 

16.3

%

 

 

15.0

%

 

 

 

 

 

GAAP income from continuing operations

 

$

44,096

 

 

$

29,065

 

Less: Net income attributable to noncontrolling interest

 

 

3

 

 

 

75

 

GAAP net income from continuing operations attributable to Belden stockholders

 

$

44,093

 

 

$

28,990

 

 

 

 

 

 

GAAP income from continuing operations

 

$

44,096

 

 

$

29,065

 

Plus: Operating income adjustments from above

 

 

13,547

 

 

 

14,194

 

Plus: Loss on debt extinguishment

 

 

6,392

 

 

 

 

Less: Net income attributable to noncontrolling interest

 

 

3

 

 

 

75

 

Less: Tax effect of adjustments above

 

 

4,547

 

 

 

2,820

 

Adjusted net income from continuing operations attributable to Belden stockholders

 

$

59,485

 

 

$

40,364

 

 

 

 

 

 

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

 

$

0.97

 

 

$

0.64

 

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

 

$

1.31

 

 

$

0.90

 

 

 

 

 

 

GAAP and adjusted diluted weighted average shares

 

 

45,567

 

 

 

45,045

 

 

 

Three Months Ended

Year Ended

 

 

April 4, 2021

 

July 4, 2021

 

October 3,
2021

 

December 31,
2021

December 31,
2021

 

 

(In thousands)

(In thousands)

GAAP revenues

 

$

508,683

 

 

$

575,857

 

 

$

604,761

 

 

$

611,959

 

$

2,301,260

 

Adjustments related to acquisitions

 

 

 

 

 

849

 

 

 

503

 

 

 

(1,352

)

 

 

Adjusted revenues

 

$

508,683

 

 

$

576,706

 

 

$

605,264

 

 

$

610,607

 

$

2,301,260

 

 

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

169,183

 

 

$

191,354

 

 

$

203,377

 

 

$

207,929

 

$

771,843

 

Amortization of software development intangible assets

 

 

409

 

 

 

322

 

 

 

434

 

 

 

414

 

 

1,579

 

Severance, restructuring, and acquisition integration costs

 

 

260

 

 

 

1,103

 

 

 

2,943

 

 

 

7,002

 

 

11,308

 

Adjustments related to acquisitions and divestitures

 

 

816

 

 

 

1,995

 

 

 

890

 

 

 

(1,352

)

 

2,349

 

Adjusted gross profit

 

$

170,668

 

 

$

194,774

 

 

$

207,644

 

 

$

213,993

 

$

787,079

 

 

 

 

 

 

 

 

 

 

 

GAAP gross profit margin

 

 

33.3

%

 

 

33.2

%

 

 

33.6

%

 

 

34.0

%

 

33.5

%

Adjusted gross profit margin

 

 

33.6

%

 

 

33.8

%

 

 

34.3

%

 

 

35.0

%

 

34.2

%

 

 

 

 

 

 

 

 

 

 

GAAP selling, general and administrative expenses

 

$

(80,635

)

 

$

(93,570

)

 

$

(95,337

)

 

$

(108,485

)

$

(378,027

)

Severance, restructuring, and acquisition integration costs

 

 

4,911

 

 

 

1,937

 

 

 

1,385

 

 

 

4,326

 

 

12,559

 

Adjustments related to acquisitions and divestitures

 

 

(7,190

)

 

 

(83

)

 

 

(713

)

 

 

602

 

 

(7,384

)

Adjusted selling, general and administrative expenses

 

$

(82,914

)

 

$

(91,716

)

 

$

(94,665

)

 

$

(103,557

)

$

(372,852

)

 

 

 

 

 

 

 

 

 

 

GAAP and adjusted research and development expenses

 

$

(22,612

)

 

$

(22,263

)

 

$

(23,235

)

 

$

(22,117

)

$

(90,227

)

 

 

 

 

 

 

 

 

 

 

GAAP income from continuing operations

 

$

29,065

 

 

$

45,348

 

 

$

43,964

 

 

$

80,464

 

$

198,841

 

Interest expense, net

 

 

15,511

 

 

 

14,870

 

 

 

16,251

 

 

 

16,061

 

 

62,693

 

Income tax expense

 

 

7,056

 

 

 

9,578

 

 

 

9,799

 

 

 

1,506

 

 

27,939

 

Gain on sale of note receivable

 

 

 

 

 

 

 

 

 

 

 

(27,036

)

 

(27,036

)

Loss on debt extinguishment

 

 

 

 

 

 

 

 

5,715

 

 

 

 

 

5,715

 

Total non-operating adjustments

 

 

22,567

 

 

 

24,448

 

 

 

31,765

 

 

 

(9,469

)

 

69,311

 

Amortization of intangible assets

 

 

7,993

 

 

 

7,172

 

 

 

7,781

 

 

 

7,684

 

 

30,630

 

Severance, restructuring, and acquisition integration costs

 

 

5,171

 

 

 

3,040

 

 

 

4,328

 

 

 

11,328

 

 

23,867

 

Adjustments related to acquisitions and divestitures

 

 

(6,374

)

 

 

1,912

 

 

 

177

 

 

 

(750

)

 

(5,035

)

Amortization of software development intangible assets

 

 

409

 

 

 

322

 

 

 

434

 

 

 

414

 

 

1,579

 

Asset impairments

 

 

6,995

 

 

 

 

 

 

2,287

 

 

 

 

 

9,282

 

Total operating income adjustments

 

 

14,194

 

 

 

12,446

 

 

 

15,007

 

 

 

18,676

 

 

60,323

 

Depreciation expense

 

 

10,727

 

 

 

10,656

 

 

 

10,586

 

 

 

11,105

 

 

43,074

 

Adjusted EBITDA

 

$

76,553

 

 

$

92,898

 

 

$

101,322

 

 

$

100,776

 

$

371,549

 

 

 

 

 

 

 

 

 

 

 

GAAP income from continuing operations margin

 

 

5.7

%

 

 

7.9

%

 

 

7.3

%

 

 

13.1

%

 

8.6

%

Adjusted EBITDA margin

 

 

15.0

%

 

 

16.1

%

 

 

16.7

%

 

 

16.5

%

 

16.1

%

 

 

 

 

 

 

 

 

 

 

GAAP income from continuing operations

 

 

29,065

 

 

 

45,348

 

 

 

43,964

 

 

 

80,464

 

 

198,841

 

Less: Net income attributable to noncontrolling interests

 

 

75

 

 

 

208

 

 

 

53

 

 

 

56

 

 

392

 

GAAP net income from continuing operations attributable to Belden stockholders

 

$

28,990

 

 

$

45,140

 

 

$

43,911

 

 

$

80,408

 

$

198,449

 

 

 

 

 

 

 

 

 

 

 

GAAP income from continuing operations

 

$

29,065

 

 

$

45,348

 

 

$

43,964

 

 

$

80,464

 

$

198,841

 

Plus: Operating income adjustments from above

 

 

14,194

 

 

 

12,446

 

 

 

15,007

 

 

 

18,676

 

 

60,323

 

Plus: Loss on debt extinguishment

 

 

 

 

 

 

 

 

5,715

 

 

 

 

 

5,715

 

Less: Gain on sale of note receivable

 

 

 

 

 

 

 

 

 

 

 

27,036

 

 

27,036

 

Less: Net income attributable to noncontrolling interests

 

 

75

 

 

 

208

 

 

 

53

 

 

 

56

 

 

392

 

Less: Tax effect of adjustments above

 

 

2,820

 

 

 

2,500

 

 

 

4,042

 

 

 

12,595

 

 

21,957

 

Adjusted net income from continuing operations attributable to Belden stockholders

 

$

40,364

 

 

$

55,086

 

 

$

60,591

 

 

$

59,453

 

$

215,494

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.64

 

 

$

1.00

 

 

$

0.97

 

 

$

1.76

 

$

4.37

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.90

 

 

$

1.22

 

 

$

1.33

 

 

$

1.30

 

$

4.75

 

 

 

 

 

 

 

 

 

 

 

GAAP and adjusted diluted weighted average shares

 

 

45,045

 

 

 

45,262

 

 

 

45,425

 

 

 

45,729

 

 

45,361

 

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

 

 

April 3, 2022

 

April 4, 2021

 

 

 

 

 

 

 

(In thousands)

GAAP net cash used for operating activities

 

$

(57,955

)

 

$

(41,495

)

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

 

 

(10,907

)

 

 

(11,211

)

Non-GAAP free cash flow

 

$

(68,862

)

 

$

(52,706

)

BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
2022 Guidance

 

 

Year Ended

 

Three Months Ended

 

 

December 31, 2022

 

July 3, 2022

 

 

 

 

 

 

 

(In thousands)

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

 

$4.31 - $4.61

 

$0.98 - $1.08

Amortization of intangible assets

 

0.70

 

0.18

Severance, restructuring, and acquisition integration costs

 

0.43

 

0.19

Loss from debt extinguishment

 

0.11

 

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

 

$5.55 - $5.85

 

$1.35 - $1.45

Our guidance 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, adjustments related to acquisitions and divestitures, 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 second quarter and full-year 2022, 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 impact of disruptions in the global supply chain, including the inability to obtain raw materials and components in sufficient quantities on commercially reasonable terms; the lack of certainty as to the duration and magnitude of the impact of COVID-19 and the economic recovery from that impact; foreign and domestic political, economic and other uncertainties, including changes in currency exchange rates; the impact of a challenging global economy or a downturn in served markets; the inability to successfully complete and integrate acquisitions in furtherance of the Company’s strategic plan; difficulty in forecasting revenue due to the unpredictable timing of orders related to customer projects as well as the impacts of channel inventory; inflation and changes in the price and availability of raw materials leading to higher input and labor costs; the inability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); the inability to retain key employees; the increased influence of chief information officers on purchasing decisions; 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 competitiveness of the global markets in which we operate; 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 inability to achieve our strategic priorities in emerging markets; 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; 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 period ended December 31, 2021, filed with the SEC on February 15, 2022. 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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