ST. LOUIS--(BUSINESS WIRE)--
Belden Inc. (NYSE: BDC), a global leader in high quality, end-to-end
signal transmission solutions for mission-critical applications, today
reported fiscal second quarter 2017 results for the period ended July 2,
2017.
Second Quarter 2017
On a GAAP basis, revenues for the quarter totaled $610.6 million,
increasing $9.0 million, or 1.5%, compared to $601.6 million in the
second quarter 2016. Net income was $36.0 million, a decrease of $6.1
million compared to the prior-year period, primarily due to a $6.0
million increase in income tax expense. This was the result of discrete
incremental benefits from tax planning initiatives in the prior year.
Net income as a percentage of revenues was 5.9%, decreasing 110 basis
points from 7.0% in the prior-year period. EPS totaled $0.64 compared to
$0.99 in the second quarter 2016. The current quarter EPS includes a
$0.20 per share dilutive impact from the mandatory convertible preferred
stock issued in the third quarter 2016.
Revenues for the quarter totaled $610.6 million, increasing $7.2
million, or 1.2%, compared to adjusted revenues of $603.4 million in the
second quarter 2016. Adjusted EBITDA margin in the second quarter was
18.3%, increasing 40 basis points from 17.9% in the year-ago period.
Adjusted net income was $64.3 million, a decrease of $1.2 million
compared to the prior-year period, primarily due to the increase in
income tax expense discussed above. Adjusted EPS was $1.29 compared to
$1.54 in the second quarter 2016. The current quarter adjusted EPS
includes a $0.20 per share dilutive impact from the mandatory
convertible preferred stock. Adjusted results are non-GAAP measures, and
a non-GAAP reconciliation table is provided as an appendix to this
release.
John Stroup, President, CEO, and Chairman of Belden Inc., said,
“Overall, the business performed in line with our expectations in the
second quarter, and our proven Lean enterprise system continues to drive
margin expansion in 2017. We were very pleased to complete the
Thinklogical acquisition during the quarter, and we remain
well-positioned with a number of other attractive inorganic
opportunities.”
Outlook
“We are increasing our full-year revenue guidance to reflect the
Thinklogical acquisition. We are also updating our EPS guidance to
reflect the accretive impact of this acquisition and our recent debt
refinancing at very favorable terms. We expect double-digit EPS growth
in the second half of the year,” said Mr. Stroup.
The Company expects third quarter 2017 revenues to be $615 - $635
million. For the full year ending December 31, 2017, the Company now
expects revenues to be $2.415 - $2.445 billion, compared to prior
guidance of $2.355 - $2.405 billion.
The Company expects third quarter 2017 GAAP EPS to be $0.10 - $0.20. For
the full year ending December 31, 2017, the Company now expects GAAP EPS
to be $2.82 - $3.02, compared to the previously guided range of $3.31 -
$3.56.
The Company expects third quarter 2017 adjusted EPS to be $1.35 - $1.45.
For the full year ending December 31, 2017, the Company now expects
adjusted EPS to be $5.35 - $5.55, compared to the previously guided
range of $4.95 - $5.20.
Earnings Conference Call
Management will host a conference call today at 8:30 am ET to discuss
results of the quarter. The listen-only audio of the conference call
will be broadcast live via the Internet at http://investor.belden.com.
The dial-in number for participants in the U.S. is 888-339-3466; the
dial-in number for participants outside the U.S. is 719-325-2360. A
replay of this conference call will remain accessible in the investor
relations section of the Company’s website for a limited time.
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BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
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Three Months Ended
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Six Months Ended
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July 2, 2017
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July 3, 2016
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July 2, 2017
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July 3, 2016
|
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(In thousands, except per share data)
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Revenues
|
|
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$
|
610,633
|
|
|
|
$
|
601,631
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|
|
|
$
|
1,162,014
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|
|
$
|
1,143,128
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|
|
Cost of sales
|
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|
(368,124
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)
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(353,418
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)
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|
(697,391
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)
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(669,880
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)
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Gross profit
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242,509
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|
|
248,213
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464,623
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|
473,248
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Selling, general and administrative expenses
|
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(117,771
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)
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(123,057
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)
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(230,357
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)
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(245,463
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)
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Research and development
|
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(35,144
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)
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(36,652
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)
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(69,666
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)
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|
(72,785
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)
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Amortization of intangibles
|
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(27,113
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)
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(26,263
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)
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(50,782
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)
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(51,795
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)
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Operating income
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62,481
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62,241
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113,818
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103,205
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Interest expense, net
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(23,533
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)
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(24,049
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)
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(47,039
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)
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|
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(48,445
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)
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Loss on debt extinguishment
|
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(847
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)
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|
—
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|
(847
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)
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—
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Income before taxes
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38,101
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|
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38,192
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65,932
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|
|
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54,760
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Income tax benefit (expense)
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(2,210
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)
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3,741
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(4,460
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)
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|
3,531
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Net income
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35,891
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|
41,933
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|
61,472
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58,291
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Less: Net loss attributable to noncontrolling interest
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(86
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)
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(99
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)
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(192
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)
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(198
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)
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Net income attributable to Belden
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35,977
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42,032
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61,664
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58,489
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Less: Preferred stock dividends
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8,733
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—
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17,466
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—
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Net income attributable to Belden common stockholders
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$
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27,244
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$
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42,032
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$
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44,198
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|
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$
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58,489
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Weighted average number of common shares and equivalents:
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Basic
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42,283
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|
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42,085
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42,249
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42,046
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Diluted
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42,832
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42,533
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42,753
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42,459
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Basic income per share attributable to Belden common stockholders:
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$
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0.64
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$
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1.00
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$
|
1.05
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|
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$
|
1.39
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Diluted income per share attributable to Belden common stockholders:
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$
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0.64
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|
$
|
0.99
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|
|
$
|
1.03
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|
|
|
$
|
1.38
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|
|
|
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|
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|
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Common stock dividends declared per share
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|
$
|
0.05
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|
|
$
|
0.05
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|
|
|
$
|
0.10
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|
|
|
$
|
0.10
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BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)
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Broadcast
Solutions
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Enterprise
Solutions
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Industrial
Solutions
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Network
Solutions
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Total
Segments
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(In thousands, except percentages)
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For the three months ended July 2, 2017
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Segment Revenues
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$
|
188,071
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|
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$
|
160,733
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$
|
159,255
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|
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$
|
102,574
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$
|
610,633
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Segment EBITDA
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29,610
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26,801
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31,036
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|
22,780
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|
|
110,227
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|
|
Segment EBITDA margin
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|
15.7
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%
|
|
|
16.7
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%
|
|
|
19.5
|
%
|
|
|
22.2
|
%
|
|
|
18.1
|
%
|
|
Depreciation expense
|
|
|
4,058
|
|
|
|
2,695
|
|
|
|
3,168
|
|
|
|
1,607
|
|
|
|
11,528
|
|
|
Amortization of intangibles
|
|
|
13,453
|
|
|
|
429
|
|
|
|
640
|
|
|
|
12,591
|
|
|
|
27,113
|
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
970
|
|
|
|
8,141
|
|
|
|
346
|
|
|
|
103
|
|
|
|
9,560
|
|
|
Purchase accounting effects related to acquisitions
|
|
|
1,167
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,167
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|
|
|
|
|
|
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|
|
For the three months ended July 3, 2016
|
|
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|
|
|
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|
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|
|
|
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|
|
Segment Revenues
|
|
|
$
|
193,521
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|
|
|
$
|
160,401
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|
|
|
$
|
147,808
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|
|
|
$
|
101,651
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|
|
|
$
|
603,381
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|
|
Segment EBITDA
|
|
|
29,505
|
|
|
|
29,575
|
|
|
|
27,064
|
|
|
|
22,191
|
|
|
|
108,335
|
|
|
Segment EBITDA margin
|
|
|
15.2
|
%
|
|
|
18.4
|
%
|
|
|
18.3
|
%
|
|
|
21.8
|
%
|
|
|
18.0
|
%
|
|
Depreciation expense
|
|
|
4,061
|
|
|
|
3,429
|
|
|
|
2,709
|
|
|
|
1,788
|
|
|
|
11,987
|
|
|
Amortization of intangibles
|
|
|
13,420
|
|
|
|
432
|
|
|
|
601
|
|
|
|
11,810
|
|
|
|
26,263
|
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
1,319
|
|
|
|
1,207
|
|
|
|
2,371
|
|
|
|
972
|
|
|
|
5,869
|
|
|
Deferred gross profit adjustments
|
|
|
494
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,256
|
|
|
|
1,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended July 2, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenues
|
|
|
$
|
356,667
|
|
|
|
$
|
306,415
|
|
|
|
$
|
305,436
|
|
|
|
$
|
193,496
|
|
|
|
$
|
1,162,014
|
|
|
Segment EBITDA
|
|
|
55,010
|
|
|
|
50,901
|
|
|
|
56,769
|
|
|
|
40,657
|
|
|
|
203,337
|
|
|
Segment EBITDA margin
|
|
|
15.4
|
%
|
|
|
16.6
|
%
|
|
|
18.6
|
%
|
|
|
21.0
|
%
|
|
|
17.5
|
%
|
|
Depreciation expense
|
|
|
8,007
|
|
|
|
5,294
|
|
|
|
6,374
|
|
|
|
3,236
|
|
|
|
22,911
|
|
|
Amortization of intangibles
|
|
|
23,468
|
|
|
|
853
|
|
|
|
1,282
|
|
|
|
25,179
|
|
|
|
50,782
|
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
1,378
|
|
|
|
13,014
|
|
|
|
1,467
|
|
|
|
301
|
|
|
|
16,160
|
|
|
Purchase accounting effects related to acquisitions
|
|
|
1,167
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended July 3, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenues
|
|
|
$
|
364,793
|
|
|
|
$
|
296,293
|
|
|
|
$
|
288,899
|
|
|
|
$
|
197,196
|
|
|
|
$
|
1,147,181
|
|
|
Segment EBITDA
|
|
|
52,772
|
|
|
|
53,311
|
|
|
|
50,051
|
|
|
|
42,267
|
|
|
|
198,401
|
|
|
Segment EBITDA margin
|
|
|
14.5
|
%
|
|
|
18.0
|
%
|
|
|
17.3
|
%
|
|
|
21.4
|
%
|
|
|
17.3
|
%
|
|
Depreciation expense
|
|
|
8,023
|
|
|
|
6,818
|
|
|
|
5,427
|
|
|
|
3,382
|
|
|
|
23,650
|
|
|
Amortization of intangibles
|
|
|
26,351
|
|
|
|
861
|
|
|
|
1,192
|
|
|
|
23,391
|
|
|
|
51,795
|
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
5,697
|
|
|
|
1,707
|
|
|
|
3,236
|
|
|
|
3,637
|
|
|
|
14,277
|
|
|
Purchase accounting effects related to acquisitions
|
|
|
195
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
195
|
|
|
Deferred gross profit adjustments
|
|
|
1,108
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,945
|
|
|
|
4,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BELDEN INC.
OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
July 2, 2017
|
|
|
July 3, 2016
|
|
|
July 2, 2017
|
|
|
July 3, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
Total Segment Revenues
|
|
|
$
|
610,633
|
|
|
|
$
|
603,381
|
|
|
|
$
|
1,162,014
|
|
|
|
$
|
1,147,181
|
|
|
Deferred revenue adjustments
|
|
|
—
|
|
|
|
(1,750
|
)
|
|
|
—
|
|
|
|
(4,053
|
)
|
|
Consolidated Revenues
|
|
|
$
|
610,633
|
|
|
|
$
|
601,631
|
|
|
|
$
|
1,162,014
|
|
|
|
$
|
1,143,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Segment EBITDA
|
|
|
$
|
110,227
|
|
|
|
$
|
108,335
|
|
|
|
$
|
203,337
|
|
|
|
$
|
198,401
|
|
|
Income from equity method investment
|
|
|
2,277
|
|
|
|
661
|
|
|
|
3,284
|
|
|
|
491
|
|
|
Eliminations
|
|
|
(655
|
)
|
|
|
(886
|
)
|
|
|
(1,783
|
)
|
|
|
(1,717
|
)
|
|
Consolidated Adjusted EBITDA (1)
|
|
|
111,849
|
|
|
|
108,110
|
|
|
|
204,838
|
|
|
|
197,175
|
|
|
Amortization of intangibles
|
|
|
(27,113
|
)
|
|
|
(26,263
|
)
|
|
|
(50,782
|
)
|
|
|
(51,795
|
)
|
|
Depreciation expense
|
|
|
(11,528
|
)
|
|
|
(11,987
|
)
|
|
|
(22,911
|
)
|
|
|
(23,650
|
)
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
(9,560
|
)
|
|
|
(5,869
|
)
|
|
|
(16,160
|
)
|
|
|
(14,277
|
)
|
|
Purchase accounting effects related to acquisitions
|
|
|
(1,167
|
)
|
|
|
—
|
|
|
|
(1,167
|
)
|
|
|
(195
|
)
|
|
Deferred gross profit adjustments
|
|
|
—
|
|
|
|
(1,750
|
)
|
|
|
—
|
|
|
|
(4,053
|
)
|
|
Consolidated operating income
|
|
|
62,481
|
|
|
|
62,241
|
|
|
|
113,818
|
|
|
|
103,205
|
|
|
Interest expense, net
|
|
|
(23,533
|
)
|
|
|
(24,049
|
)
|
|
|
(47,039
|
)
|
|
|
(48,445
|
)
|
|
Loss on debt extinguishment
|
|
|
(847
|
)
|
|
|
—
|
|
|
|
(847
|
)
|
|
|
—
|
|
|
Consolidated income before taxes
|
|
|
$
|
38,101
|
|
|
|
$
|
38,192
|
|
|
|
$
|
65,932
|
|
|
|
$
|
54,760
|
|
|
|
|
|
(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 2, 2017
|
|
|
December 31, 2016
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
(In thousands)
|
|
ASSETS
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
670,360
|
|
|
|
$
|
848,116
|
|
|
Receivables, net
|
|
|
419,591
|
|
|
|
388,059
|
|
|
Inventories, net
|
|
|
252,534
|
|
|
|
190,408
|
|
|
Other current assets
|
|
|
43,623
|
|
|
|
29,176
|
|
|
Assets held for sale
|
|
|
30,743
|
|
|
|
23,193
|
|
|
Total current assets
|
|
|
1,416,851
|
|
|
|
1,478,952
|
|
|
Property, plant and equipment, less accumulated depreciation
|
|
|
319,371
|
|
|
|
309,291
|
|
|
Goodwill
|
|
|
1,453,993
|
|
|
|
1,385,995
|
|
|
Intangible assets, less accumulated amortization
|
|
|
600,417
|
|
|
|
560,082
|
|
|
Deferred income taxes
|
|
|
35,735
|
|
|
|
33,706
|
|
|
Other long-lived assets
|
|
|
36,303
|
|
|
|
38,777
|
|
|
|
|
$
|
3,862,670
|
|
|
|
$
|
3,806,803
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
280,796
|
|
|
|
$
|
258,203
|
|
|
Accrued liabilities
|
|
|
255,092
|
|
|
|
310,340
|
|
|
Liabilities held for sale
|
|
|
1,803
|
|
|
|
1,736
|
|
|
Total current liabilities
|
|
|
537,691
|
|
|
|
570,279
|
|
|
Long-term debt
|
|
|
1,679,382
|
|
|
|
1,620,161
|
|
|
Postretirement benefits
|
|
|
109,599
|
|
|
|
104,050
|
|
|
Deferred income taxes
|
|
|
18,341
|
|
|
|
14,276
|
|
|
Other long-term liabilities
|
|
|
38,554
|
|
|
|
36,720
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
1
|
|
|
|
1
|
|
|
Common stock
|
|
|
503
|
|
|
|
503
|
|
|
Additional paid-in capital
|
|
|
1,119,763
|
|
|
|
1,116,090
|
|
|
Retained earnings
|
|
|
823,761
|
|
|
|
783,812
|
|
|
Accumulated other comprehensive loss
|
|
|
(65,188
|
)
|
|
|
(39,067
|
)
|
|
Treasury stock
|
|
|
(400,501
|
)
|
|
|
(401,026
|
)
|
|
Total Belden stockholders’ equity
|
|
|
1,478,339
|
|
|
|
1,460,313
|
|
|
Noncontrolling interest
|
|
|
764
|
|
|
|
1,004
|
|
|
Total stockholders’ equity
|
|
|
1,479,103
|
|
|
|
1,461,317
|
|
|
|
|
$
|
3,862,670
|
|
|
|
$
|
3,806,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited)
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
July 2, 2017
|
|
July 3, 2016
|
|
|
|
|
|
|
|
(In thousands)
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
61,472
|
|
|
$
|
58,291
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
73,693
|
|
|
75,445
|
|
|
Share-based compensation
|
|
8,924
|
|
|
8,587
|
|
|
Loss on debt extinguishment
|
|
847
|
|
|
—
|
|
|
Changes in operating assets and liabilities, net of the effects of
currency exchange rate changes and acquired businesses:
|
|
|
|
|
|
Receivables
|
|
(17,982
|
)
|
|
(3,750
|
)
|
|
Inventories
|
|
(42,052
|
)
|
|
368
|
|
|
Accounts payable
|
|
14,748
|
|
|
(20,730
|
)
|
|
Accrued liabilities
|
|
(55,094
|
)
|
|
(39,356
|
)
|
|
Accrued taxes
|
|
(12,523
|
)
|
|
(17,875
|
)
|
|
Other assets
|
|
(6,573
|
)
|
|
2,457
|
|
|
Other liabilities
|
|
9,321
|
|
|
(2,867
|
)
|
|
Net cash provided by operating activities
|
|
34,781
|
|
|
60,570
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Cash used to acquire businesses, net of cash acquired
|
|
(166,945
|
)
|
|
(17,848
|
)
|
|
Capital expenditures
|
|
(22,197
|
)
|
|
(25,124
|
)
|
|
Proceeds from disposal of tangible assets
|
|
—
|
|
|
41
|
|
|
Net cash used for investing activities
|
|
(189,142
|
)
|
|
(42,931
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Cash dividends paid
|
|
(21,688
|
)
|
|
(4,204
|
)
|
|
Payments under borrowing arrangements
|
|
(5,221
|
)
|
|
(51,250
|
)
|
|
Withholding tax payments for share-based payment awards, net of
proceeds from the exercise of stock options
|
|
(4,726
|
)
|
|
(3,598
|
)
|
|
Debt issuance costs paid
|
|
(2,044
|
)
|
|
—
|
|
|
Net cash used for financing activities
|
|
(33,679
|
)
|
|
(59,052
|
)
|
|
Effect of foreign currency exchange rate changes on cash and cash
equivalents
|
|
10,284
|
|
|
434
|
|
|
Decrease in cash and cash equivalents
|
|
(177,756
|
)
|
|
(40,979
|
)
|
|
Cash and cash equivalents, beginning of period
|
|
848,116
|
|
|
216,751
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
670,360
|
|
|
$
|
175,772
|
|
|
|
|
|
|
|
|
|
|
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 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
operating 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 2, 2017
|
|
|
July 3, 2016
|
|
|
July 2, 2017
|
|
|
July 3, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except percentages and per share amounts)
|
|
GAAP revenues
|
|
|
$
|
610,633
|
|
|
|
$
|
601,631
|
|
|
|
$
|
1,162,014
|
|
|
|
$
|
1,143,128
|
|
|
Deferred revenue adjustments
|
|
|
—
|
|
|
|
1,750
|
|
|
|
—
|
|
|
|
4,053
|
|
|
Adjusted revenues
|
|
|
$
|
610,633
|
|
|
|
$
|
603,381
|
|
|
|
$
|
1,162,014
|
|
|
|
$
|
1,147,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
|
$
|
242,509
|
|
|
|
$
|
248,213
|
|
|
|
$
|
464,623
|
|
|
|
$
|
473,248
|
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
8,189
|
|
|
|
1,826
|
|
|
|
14,117
|
|
|
|
3,918
|
|
|
Deferred gross profit adjustments
|
|
|
—
|
|
|
|
1,750
|
|
|
|
—
|
|
|
|
4,053
|
|
|
Purchase accounting effects related to acquisitions
|
|
|
1,167
|
|
|
|
—
|
|
|
|
1,167
|
|
|
|
195
|
|
|
Accelerated depreciation
|
|
|
266
|
|
|
|
206
|
|
|
|
532
|
|
|
|
412
|
|
|
Adjusted gross profit
|
|
|
$
|
252,131
|
|
|
|
$
|
251,995
|
|
|
|
$
|
480,439
|
|
|
|
$
|
481,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit margin
|
|
|
39.7
|
%
|
|
|
41.3
|
%
|
|
|
40.0
|
%
|
|
|
41.4
|
%
|
|
Adjusted gross profit margin
|
|
|
41.3
|
%
|
|
|
41.8
|
%
|
|
|
41.3
|
%
|
|
|
42.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling, general and administrative expenses
|
|
|
$
|
(117,771
|
)
|
|
|
$
|
(123,057
|
)
|
|
|
$
|
(230,357
|
)
|
|
|
$
|
(245,463
|
)
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
1,362
|
|
|
|
3,625
|
|
|
|
2,090
|
|
|
|
9,680
|
|
|
Adjusted selling, general and administrative expenses
|
|
|
$
|
(116,409
|
)
|
|
|
$
|
(119,432
|
)
|
|
|
$
|
(228,267
|
)
|
|
|
$
|
(235,783
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP research and development
|
|
|
$
|
(35,144
|
)
|
|
|
$
|
(36,652
|
)
|
|
|
$
|
(69,666
|
)
|
|
|
$
|
(72,785
|
)
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
9
|
|
|
|
418
|
|
|
|
(47
|
)
|
|
|
679
|
|
|
Adjusted research and development
|
|
|
$
|
(35,135
|
)
|
|
|
$
|
(36,234
|
)
|
|
|
$
|
(69,713
|
)
|
|
|
$
|
(72,106
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable to Belden
|
|
|
$
|
35,977
|
|
|
|
$
|
42,032
|
|
|
|
$
|
61,664
|
|
|
|
$
|
58,489
|
|
|
Interest expense, net
|
|
|
23,533
|
|
|
|
24,049
|
|
|
|
47,039
|
|
|
|
48,445
|
|
|
Income tax expense (benefit)
|
|
|
2,210
|
|
|
|
(3,741
|
)
|
|
|
4,460
|
|
|
|
(3,531
|
)
|
|
Loss on debt extinguishment
|
|
|
847
|
|
|
|
—
|
|
|
|
847
|
|
|
|
—
|
|
|
Noncontrolling interest
|
|
|
(86
|
)
|
|
|
(99
|
)
|
|
|
(192
|
)
|
|
|
(198
|
)
|
|
Total non-operating adjustments
|
|
|
26,504
|
|
|
|
20,209
|
|
|
|
52,154
|
|
|
|
44,716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
27,113
|
|
|
|
26,263
|
|
|
|
50,782
|
|
|
|
51,795
|
|
|
Severance, restructuring, and integration costs
|
|
|
9,560
|
|
|
|
5,869
|
|
|
|
16,160
|
|
|
|
14,277
|
|
|
Purchase accounting effects related to acquisitions
|
|
|
1,167
|
|
|
|
—
|
|
|
|
1,167
|
|
|
|
195
|
|
|
Accelerated depreciation
|
|
|
266
|
|
|
|
206
|
|
|
|
532
|
|
|
|
412
|
|
|
Deferred gross profit adjustments
|
|
|
—
|
|
|
|
1,750
|
|
|
|
—
|
|
|
|
4,053
|
|
|
Total operating income adjustments
|
|
|
38,106
|
|
|
|
34,088
|
|
|
|
68,641
|
|
|
|
70,732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
|
11,262
|
|
|
|
11,781
|
|
|
|
22,379
|
|
|
|
23,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
111,849
|
|
|
|
$
|
108,110
|
|
|
|
$
|
204,838
|
|
|
|
$
|
197,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income margin
|
|
|
5.9
|
%
|
|
|
7.0
|
%
|
|
|
5.3
|
%
|
|
|
5.1
|
%
|
|
Adjusted EBITDA margin
|
|
|
18.3
|
%
|
|
|
17.9
|
%
|
|
|
17.6
|
%
|
|
|
17.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
|
$
|
35,891
|
|
|
|
$
|
41,933
|
|
|
|
$
|
61,472
|
|
|
|
$
|
58,291
|
|
|
Operating income adjustments from above
|
|
|
38,106
|
|
|
|
34,088
|
|
|
|
68,641
|
|
|
|
70,732
|
|
|
Loss on debt extinguishment
|
|
|
847
|
|
|
|
—
|
|
|
|
847
|
|
|
|
—
|
|
|
Tax effect of adjustments
|
|
|
(10,592
|
)
|
|
|
(10,603
|
)
|
|
|
(18,968
|
)
|
|
|
(21,030
|
)
|
|
Adjusted net income
|
|
|
$
|
64,252
|
|
|
|
$
|
65,418
|
|
|
|
$
|
111,992
|
|
|
|
$
|
107,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
|
$
|
35,891
|
|
|
|
$
|
41,933
|
|
|
|
$
|
61,472
|
|
|
|
$
|
58,291
|
|
|
Less: Net loss attributable to noncontrolling interest
|
|
|
(86
|
)
|
|
|
(99
|
)
|
|
|
(192
|
)
|
|
|
(198
|
)
|
|
Less: Preferred stock dividends
|
|
|
8,733
|
|
|
|
—
|
|
|
|
17,466
|
|
|
|
—
|
|
|
GAAP net income attributable to Belden common stockholders
|
|
|
$
|
27,244
|
|
|
|
$
|
42,032
|
|
|
|
$
|
44,198
|
|
|
|
$
|
58,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
|
|
|
$
|
64,252
|
|
|
|
$
|
65,418
|
|
|
|
$
|
111,992
|
|
|
|
$
|
107,993
|
|
|
Less: Net loss attributable to noncontrolling interest
|
|
|
(86
|
)
|
|
|
(99
|
)
|
|
|
(192
|
)
|
|
|
(198
|
)
|
|
Less: Amortization expense attributable to noncontrolling interest,
net of tax
|
|
|
16
|
|
|
|
16
|
|
|
|
31
|
|
|
|
32
|
|
|
Less: Preferred stock dividends
|
|
|
—
|
|
|
|
—
|
|
|
|
17,466
|
|
|
|
—
|
|
|
Adjusted net income attributable to Belden common stockholders
|
|
|
$
|
64,322
|
|
|
|
$
|
65,501
|
|
|
|
$
|
94,687
|
|
|
|
$
|
108,159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income per diluted share attributable to Belden common
stockholders
|
|
|
$
|
0.64
|
|
|
|
$
|
0.99
|
|
|
|
$
|
1.03
|
|
|
|
$
|
1.38
|
|
|
Adjusted income per diluted share attributable to Belden common
stockholders
|
|
|
$
|
1.29
|
|
|
|
$
|
1.54
|
|
|
|
$
|
2.21
|
|
|
|
$
|
2.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted weighted average shares
|
|
|
42,832
|
|
|
|
42,533
|
|
|
|
42,753
|
|
|
|
42,459
|
|
|
Adjustment for assumed conversion of preferred stock into common
stock
|
|
|
6,857
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Adjusted diluted weighted average shares
|
|
|
49,689
|
|
|
|
42,533
|
|
|
|
42,753
|
|
|
|
42,459
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 2, 2017
|
|
|
July 3, 2016
|
|
|
July 2, 2017
|
|
|
July 3, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
GAAP net cash provided by operating activities
|
|
|
$
|
47,044
|
|
|
|
$
|
47,958
|
|
|
|
$
|
34,781
|
|
|
|
$
|
60,570
|
|
|
Capital expenditures, net of proceeds from the disposal of tangible
assets
|
|
|
(11,798
|
)
|
|
|
(11,662
|
)
|
|
|
(22,197
|
)
|
|
|
(25,083
|
)
|
|
Non-GAAP free cash flow
|
|
|
$
|
35,246
|
|
|
|
$
|
36,296
|
|
|
|
$
|
12,584
|
|
|
|
$
|
35,487
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
2017
EARNINGS GUIDANCE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2017
|
|
|
Three Months Ended
October 1, 2017
|
|
|
|
|
|
|
|
|
Adjusted income per diluted share attributable to Belden common
stockholders
|
|
|
$5.35 - $5.55
|
|
|
$1.35 - $1.45
|
|
Amortization of intangible assets
|
|
|
$(1.51)
|
|
|
$(0.47)
|
|
Loss on debt extinguishment
|
|
|
$(0.52)
|
|
|
$(0.51)
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
$(0.40)
|
|
|
$(0.21)
|
|
Purchase accounting effects related to acquisitions
|
|
|
$(0.10)
|
|
|
$(0.06)
|
|
GAAP income per diluted share attributable to Belden common
stockholders
|
|
|
$2.82 - $3.02
|
|
|
$0.10 - $0.20
|
|
|
|
|
|
|
|
Our guidance for income per diluted share attributable to Belden common
stockholders is based upon information currently available regarding
events and conditions that will impact our future operating results. In
particular, our results are subject to the factors listed under
"Forward-Looking Statements" in this release. In addition, our actual
results are likely to be impacted by other additional events for which
information is not available, such as asset impairments, purchase
accounting effects related to acquisitions, severance, restructuring,
and acquisition integration costs, gains (losses) recognized on the
disposal of tangible assets, gains (losses) on debt extinguishment,
discontinued operations, and other gains (losses) related to events or
conditions that are not yet known.
Net Income and Earnings per Share (EPS)
All references to Net Income and EPS within this earnings release refer
to net income attributable to Belden and income from continuing
operations per diluted share attributable to Belden common stockholders,
respectively.
Use of Non-GAAP Financial Information
Adjusted results are non-GAAP measures that reflect certain adjustments
the Company makes to provide insight into operating results. GAAP to
non-GAAP reconciliations accompany the condensed consolidated financial
statements included in this release and have been published to the
investor relations section of the Company’s website at http://investor.belden.com.
Forward-Looking Statements
This release and any statements made by us concerning the release may
contain forward-looking statements including our expectations for the
third quarter and full-year 2017. Forward-looking statements include
statements regarding future financial performance (including revenues,
expenses, earnings, margins, cash flows, dividends, capital expenditures
and financial condition), plans and objectives, and related assumptions.
In some cases these statements are identifiable through the use of words
such as “anticipate,” “believe,” “estimate,” “forecast,” “guide,”
“expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,”
“should,” “will,” “would” and similar expressions. Forward-looking
statements reflect management’s current beliefs and expectations and are
not guarantees of future performance. Actual results may differ
materially from those suggested by any forward-looking statements for a
number of reasons, including, without limitation: the impact of a
challenging global economy or a downturn in served markets; the
competitiveness of the global broadcast, enterprise, and industrial
markets; the inability to successfully complete and integrate
acquisitions in furtherance of the Company’s strategic plan; volatility
in credit and foreign exchange markets; variability in the Company’s
quarterly and annual effective tax rates; the cost and availability of
raw materials including copper, plastic compounds, electronic
components, and other materials; disruption of, or changes in, the
Company’s key distribution channels; the inability to execute and
realize the expected benefits from strategic initiatives (including
revenue growth, cost control, and productivity improvement programs);
disruptions in the Company’s information systems including due to
cyber-attacks; the inability of the Company to develop and introduce new
products and competitive responses to our products; the inability to
retain senior management and key employees; assertions that the Company
violates the intellectual property of others and the ownership of
intellectual property by competitors and others that prevents the use of
that intellectual property by the Company; risks related to the use of
open source software; the impact of regulatory requirements and other
legal compliance issues; perceived or actual product failures; political
and economic uncertainties in the countries where the Company conducts
business, including emerging markets; the impairment of goodwill and
other intangible assets and the resulting impact on financial
performance; disruptions and increased costs attendant to collective
bargaining groups and other labor matters; and other factors.
For a more complete discussion of risk factors, please see our Annual
Report on Form 10-K for the year ended December 31, 2016, filed with the
SEC on February 17, 2017. Although the content of this release
represents our best judgment as of the date of this report based on
information currently available and reasonable assumptions, we give no
assurances that the expectations will prove to be accurate. Deviations
from the expectations may be material. For these reasons, Belden
cautions readers to not place undue reliance on these forward-looking
statements, which speak only as of the date made. Belden disclaims any
duty to update any forward-looking statements as a result of new
information, future developments, or otherwise, except as required by
law.
About Belden
Belden Inc. delivers a comprehensive product portfolio designed to meet
the mission-critical network infrastructure needs of industrial,
enterprise and broadcast markets. With innovative solutions targeted at
reliable and secure transmission of rapidly growing amounts of data,
audio and video needed for today's applications, Belden is at the center
of the global transformation to a connected world. Founded in 1902, the
company is headquartered in St. Louis and has manufacturing capabilities
in North and South America, Europe and Asia. For more information, visit
us at www.belden.com
or follow us on Twitter @BeldenInc.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170802005256/en/
Source: Belden Inc.