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 fourth quarter and full year 2017 results for the period
ended December 31, 2017.
Fourth Quarter 2017
On a GAAP basis, revenues for the quarter totaled $604.9 million,
declining 1.2% from $612.4 million in the prior-year period. Net income
was $30.5 million, a decrease of $2.9 million, or 8.7%, compared to
$33.4 million in the year-ago period. Net income was impacted by a
one-time charge of $28.4 million related to the enactment of the Tax
Cuts and Jobs Act (“TCJA”). Net income as a percentage of revenues was
5.0%, decreasing 40 basis points from 5.4% in the prior-year period. EPS
totaled $0.51 compared to $0.58 in the fourth quarter 2016. The one-time
charge as a result of the TCJA enactment had an EPS impact of $0.67.
The $604.9 million of quarterly revenue represents a decrease of $3.3
million, or 0.6%, compared to adjusted revenue of $608.2 million in the
fourth quarter 2016. Adjusted EBITDA margin was 18.2%, decreasing 190
basis points compared to 20.1% in the year-ago period. Adjusted EPS was
$1.62, increasing 14.1% compared to $1.42 in the fourth quarter 2016.
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, “Most of
our businesses performed in line with our expectations, with the
exception of an isolated situation in our Broadcast Solutions segment.
We had expected to recognize revenue on $36 million of product that was
shipped in 2017, but we were unable to do so as a result of technical
U.S. GAAP revenue recognition requirements identified by our team during
the year-end closing process. As a result, these 2017 shipments will now
be recognized as revenue in 2018 and will be additive to the revenue
that we otherwise would have anticipated.”
Full Year 2017
On a GAAP basis, revenue for the year totaled $2.389 billion, up 1.4%
compared to $2.357 billion in the full year 2016. Net income was $93.2
million, a decrease of $34.8 million compared to $128.0 million in 2016.
Net income was impacted by a $32.2 million after-tax loss on debt
extinguishment related to our debt refinancing and repayment during the
year. In addition, net income was impacted by a one-time charge of $28.4
million related to the enactment of the TCJA. Net income as a percentage
of revenue was 3.9% for the full year compared to 5.4% in 2016. EPS was
$1.37 compared to $2.65 in 2016.
The $2.389 billion of annual revenue represents an increase of $30.8
million, or 1.3%, over the adjusted revenues of $2.358 billion in 2016.
Adjusted EBITDA margin was 18.2%, declining 10 basis points compared to
18.3% in 2016. Adjusted net income was $265.0 million, increasing $25.0
million, or 10.4%, compared to $240.0 million in 2016. Adjusted EPS
increased 1.5% to $5.35, compared to $5.27 in 2016.
Mr. Stroup remarked, “2017 was highlighted by significant improvements
to our balance sheet and disciplined capital deployment. We are pleased
with the acquisition of Thinklogical and increased investment in organic
initiatives, which we expect to drive meaningful growth in future
periods.”
Outlook
“I am optimistic about our opportunities to drive meaningful organic and
inorganic growth, as we continue to pursue a number of attractive
acquisition opportunities that complement our strategic plans. We also
expect our proven Lean enterprise system to continue to drive
substantial margin expansion,” said Mr. Stroup.
The Company expects first quarter 2018 revenue to be $575 - $595
million. For the full year ending December 31, 2018, the Company expects
revenue to be $2.528 - $2.578 billion compared to the previously guided
range of $2.492 - $2.542 billion. This $36.0 million increase reflects
the delayed revenue recognition described above.
The Company expects first quarter 2018 GAAP EPS to be $0.37 - $0.47. For
the full year ending December 31, 2018, the Company now expects GAAP EPS
to be $3.96 - $4.21, compared to the previously guided range of $4.33 -
$4.58.
The Company expects first quarter 2018 adjusted EPS to be $1.05 - $1.15.
For the full year ending December 31, 2018, the Company continues to
expect adjusted EPS of $5.95 - $6.20. This guidance includes an increase
in EPS related to the delayed revenue recognition and an offsetting
impact of a higher effective tax rate due to the enactment of the TCJA.
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 800-281-7973; the
dial-in number for participants outside the U.S. is 323-794-2093. 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 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.
|
|
|
|
|
|
BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share data)
|
|
Revenues
|
|
$
|
604,884
|
|
|
$
|
612,435
|
|
|
$
|
2,388,643
|
|
|
$
|
2,356,672
|
|
|
Cost of sales
|
|
(375,292
|
)
|
|
(350,651
|
)
|
|
(1,454,604
|
)
|
|
(1,375,678
|
)
|
|
Gross profit
|
|
229,592
|
|
|
261,784
|
|
|
934,039
|
|
|
980,994
|
|
|
Selling, general and administrative expenses
|
|
(114,236
|
)
|
|
(122,099
|
)
|
|
(461,022
|
)
|
|
(494,224
|
)
|
|
Research and development
|
|
(29,222
|
)
|
|
(34,304
|
)
|
|
(134,330
|
)
|
|
(140,601
|
)
|
|
Amortization of intangibles
|
|
(26,053
|
)
|
|
(22,782
|
)
|
|
(103,997
|
)
|
|
(98,385
|
)
|
|
Impairment of assets held for sale
|
|
—
|
|
|
(23,931
|
)
|
|
—
|
|
|
(23,931
|
)
|
|
Operating income
|
|
60,081
|
|
|
58,668
|
|
|
234,690
|
|
|
223,853
|
|
|
Interest expense, net
|
|
(16,477
|
)
|
|
(23,092
|
)
|
|
(82,901
|
)
|
|
(95,050
|
)
|
|
Loss on debt extinguishment
|
|
—
|
|
|
(2,342
|
)
|
|
(52,441
|
)
|
|
(2,342
|
)
|
|
Income before taxes
|
|
43,604
|
|
|
33,234
|
|
|
99,348
|
|
|
126,461
|
|
|
Income tax benefit (expense)
|
|
(13,168
|
)
|
|
49
|
|
|
(6,495
|
)
|
|
1,185
|
|
|
Net income
|
|
30,436
|
|
|
33,283
|
|
|
92,853
|
|
|
127,646
|
|
|
Less: Net loss attributable to noncontrolling interest
|
|
(83
|
)
|
|
(71
|
)
|
|
(357
|
)
|
|
(357
|
)
|
|
Net income attributable to Belden
|
|
30,519
|
|
|
33,354
|
|
|
93,210
|
|
|
128,003
|
|
|
Less: Preferred stock dividends
|
|
8,733
|
|
|
8,733
|
|
|
34,931
|
|
|
15,428
|
|
|
Net income attributable to Belden common stockholders
|
|
$
|
21,786
|
|
|
$
|
24,621
|
|
|
$
|
58,279
|
|
|
$
|
112,575
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares and equivalents:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
42,126
|
|
|
42,157
|
|
|
42,220
|
|
|
42,093
|
|
|
Diluted
|
|
42,581
|
|
|
42,674
|
|
|
42,643
|
|
|
42,557
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per share attributable to Belden common stockholders:
|
|
$
|
0.52
|
|
|
$
|
0.58
|
|
|
$
|
1.38
|
|
|
$
|
2.67
|
|
|
Diluted income per share attributable to Belden common stockholders:
|
|
$
|
0.51
|
|
|
$
|
0.58
|
|
|
$
|
1.37
|
|
|
$
|
2.65
|
|
|
|
|
|
|
|
|
|
|
|
Common stock dividends declared per share
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Broadcast
Solutions
|
|
Enterprise
Solutions
|
|
Industrial
Solutions
|
|
Network
Solutions
|
|
Total
Segments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenues
|
|
$
|
174,719
|
|
|
$
|
157,662
|
|
|
$
|
162,551
|
|
|
$
|
109,952
|
|
|
$
|
604,884
|
|
|
Segment EBITDA
|
|
22,168
|
|
|
26,340
|
|
|
32,328
|
|
|
28,330
|
|
|
109,166
|
|
|
Segment EBITDA margin
|
|
12.7
|
%
|
|
16.7
|
%
|
|
19.9
|
%
|
|
25.8
|
%
|
|
18.0
|
%
|
|
Depreciation expense
|
|
3,668
|
|
|
2,475
|
|
|
3,309
|
|
|
1,551
|
|
|
11,003
|
|
|
Amortization of intangibles
|
|
12,375
|
|
|
438
|
|
|
643
|
|
|
12,597
|
|
|
26,053
|
|
|
Amortization of software development intangible assets
|
|
56
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|
Severance, restructuring, and acquisition integration costs
|
|
1,098
|
|
|
4,244
|
|
|
3,966
|
|
|
643
|
|
|
9,951
|
|
|
Purchase accounting effects of acquisitions
|
|
2,044
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenues
|
|
$
|
208,787
|
|
|
$
|
150,237
|
|
|
$
|
146,730
|
|
|
$
|
102,402
|
|
|
$
|
608,156
|
|
|
Segment EBITDA
|
|
48,553
|
|
|
20,693
|
|
|
27,548
|
|
|
26,058
|
|
|
122,852
|
|
|
Segment EBITDA margin
|
|
23.3
|
%
|
|
13.8
|
%
|
|
18.8
|
%
|
|
25.4
|
%
|
|
20.2
|
%
|
|
Depreciation expense
|
|
4,143
|
|
|
3,198
|
|
|
2,873
|
|
|
1,741
|
|
|
11,955
|
|
|
Amortization of intangibles
|
|
9,942
|
|
|
426
|
|
|
598
|
|
|
11,816
|
|
|
22,782
|
|
|
Severance, restructuring, and acquisition integration costs
|
|
4,543
|
|
|
4,682
|
|
|
1,941
|
|
|
532
|
|
|
11,698
|
|
|
Purchase accounting effects of acquisitions
|
|
(3,186
|
)
|
|
912
|
|
|
—
|
|
|
—
|
|
|
(2,274
|
)
|
|
Deferred gross profit adjustments
|
|
383
|
|
|
—
|
|
|
—
|
|
|
892
|
|
|
1,275
|
|
|
Patent settlement
|
|
(5,554
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,554
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the twelve months ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenues
|
|
$
|
725,139
|
|
|
$
|
631,166
|
|
|
$
|
628,458
|
|
|
$
|
403,880
|
|
|
$
|
2,388,643
|
|
|
Segment EBITDA
|
|
112,849
|
|
|
103,650
|
|
|
119,642
|
|
|
93,893
|
|
|
430,034
|
|
|
Segment EBITDA margin
|
|
15.6
|
%
|
|
16.4
|
%
|
|
19.0
|
%
|
|
23.2
|
%
|
|
18.0
|
%
|
|
Depreciation expense
|
|
15,763
|
|
|
10,509
|
|
|
12,968
|
|
|
6,357
|
|
|
45,597
|
|
|
Amortization of intangibles
|
|
49,325
|
|
|
1,729
|
|
|
2,571
|
|
|
50,372
|
|
|
103,997
|
|
|
Amortization of software development intangible assets
|
|
56
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|
Severance, restructuring, and acquisition integration costs
|
|
5,532
|
|
|
23,511
|
|
|
12,272
|
|
|
1,475
|
|
|
42,790
|
|
|
Purchase accounting effects of acquisitions
|
|
6,133
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the twelve months ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenues
|
|
$
|
769,753
|
|
|
$
|
603,188
|
|
|
$
|
585,476
|
|
|
$
|
399,388
|
|
|
$
|
2,357,805
|
|
|
Segment EBITDA
|
|
137,870
|
|
|
101,298
|
|
|
101,248
|
|
|
92,773
|
|
|
433,189
|
|
|
Segment EBITDA margin
|
|
17.9
|
%
|
|
16.8
|
%
|
|
17.3
|
%
|
|
23.2
|
%
|
|
18.4
|
%
|
|
Depreciation expense
|
|
16,229
|
|
|
13,226
|
|
|
11,038
|
|
|
6,715
|
|
|
47,208
|
|
|
Amortization of intangibles
|
|
47,248
|
|
|
1,718
|
|
|
2,394
|
|
|
47,025
|
|
|
98,385
|
|
|
Severance, restructuring, and acquisition integration costs
|
|
10,414
|
|
|
11,962
|
|
|
9,923
|
|
|
6,471
|
|
|
38,770
|
|
|
Purchase accounting effects of acquisitions
|
|
(2,991
|
)
|
|
912
|
|
|
—
|
|
|
—
|
|
|
(2,079
|
)
|
|
Deferred gross profit adjustments
|
|
1,774
|
|
|
—
|
|
|
—
|
|
|
4,913
|
|
|
6,687
|
|
|
Patent settlement
|
|
(5,554
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,554
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BELDEN INC.
OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
|
Total Segment Revenues
|
|
$
|
604,884
|
|
|
$
|
608,156
|
|
|
$
|
2,388,643
|
|
|
$
|
2,357,805
|
|
|
Deferred revenue adjustments
|
|
—
|
|
|
(1,275
|
)
|
|
—
|
|
|
(6,687
|
)
|
|
Patent settlement
|
|
—
|
|
|
5,554
|
|
|
—
|
|
|
5,554
|
|
|
Consolidated Revenues
|
|
$
|
604,884
|
|
|
$
|
612,435
|
|
|
$
|
2,388,643
|
|
|
$
|
2,356,672
|
|
|
|
|
|
|
|
|
|
|
|
Total Segment EBITDA
|
|
$
|
109,166
|
|
|
$
|
122,852
|
|
|
$
|
430,034
|
|
|
$
|
433,189
|
|
|
Income from equity method investment
|
|
1,667
|
|
|
716
|
|
|
7,502
|
|
|
1,793
|
|
|
Eliminations
|
|
(632
|
)
|
|
(1,087
|
)
|
|
(3,260
|
)
|
|
(3,781
|
)
|
|
Consolidated Adjusted EBITDA (1)
|
|
110,201
|
|
|
122,481
|
|
|
434,276
|
|
|
431,201
|
|
|
Amortization of intangibles
|
|
(26,053
|
)
|
|
(22,782
|
)
|
|
(103,997
|
)
|
|
(98,385
|
)
|
|
Depreciation expense
|
|
(11,003
|
)
|
|
(11,955
|
)
|
|
(45,597
|
)
|
|
(47,208
|
)
|
|
Severance, restructuring, and acquisition integration costs
|
|
(9,951
|
)
|
|
(11,698
|
)
|
|
(42,790
|
)
|
|
(38,770
|
)
|
|
Purchase accounting effects related to acquisitions
|
|
(2,044
|
)
|
|
2,274
|
|
|
(6,133
|
)
|
|
2,079
|
|
|
Loss on sale of assets
|
|
(1,013
|
)
|
|
—
|
|
|
(1,013
|
)
|
|
—
|
|
|
Amortization of software development costs
|
|
(56
|
)
|
|
—
|
|
|
(56
|
)
|
|
—
|
|
|
Patent settlement
|
|
—
|
|
|
5,554
|
|
|
—
|
|
|
5,554
|
|
|
Impairment of assets held for sale
|
|
—
|
|
|
(23,931
|
)
|
|
—
|
|
|
(23,931
|
)
|
|
Deferred gross profit adjustments
|
|
—
|
|
|
(1,275
|
)
|
|
—
|
|
|
(6,687
|
)
|
|
Consolidated operating income
|
|
60,081
|
|
|
58,668
|
|
|
234,690
|
|
|
223,853
|
|
|
Interest expense, net
|
|
(16,477
|
)
|
|
(23,092
|
)
|
|
(82,901
|
)
|
|
(95,050
|
)
|
|
Loss on debt extinguishment
|
|
—
|
|
|
(2,342
|
)
|
|
(52,441
|
)
|
|
(2,342
|
)
|
|
Consolidated income before taxes
|
|
$
|
43,604
|
|
|
$
|
33,234
|
|
|
$
|
99,348
|
|
|
$
|
126,461
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Consolidated Adjusted EBITDA is a non-GAAP measure. See
Reconciliation of Non-GAAP Measures for additional information.
|
|
|
|
|
|
BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
December 31, 2017
|
|
December 31, 2016
|
|
|
(In thousands)
|
|
ASSETS
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
561,108
|
|
|
$
|
848,116
|
|
|
Receivables, net
|
|
466,325
|
|
|
388,059
|
|
|
Inventories, net
|
|
297,226
|
|
|
190,408
|
|
|
Other current assets
|
|
40,167
|
|
|
29,176
|
|
|
Assets held for sale
|
|
—
|
|
|
23,193
|
|
|
Total current assets
|
|
1,364,826
|
|
|
1,478,952
|
|
|
Property, plant and equipment, less accumulated depreciation
|
|
337,322
|
|
|
309,291
|
|
|
Goodwill
|
|
1,478,257
|
|
|
1,385,995
|
|
|
Intangible assets, less accumulated amortization
|
|
545,207
|
|
|
560,082
|
|
|
Deferred income taxes
|
|
42,549
|
|
|
33,706
|
|
|
Other long-lived assets
|
|
65,207
|
|
|
38,777
|
|
|
|
$
|
3,833,368
|
|
|
$
|
3,806,803
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
376,277
|
|
|
$
|
258,203
|
|
|
Accrued liabilities
|
|
295,406
|
|
|
310,340
|
|
|
Liabilities held for sale
|
|
—
|
|
|
1,736
|
|
|
Total current liabilities
|
|
671,683
|
|
|
570,279
|
|
|
Long-term debt
|
|
1,560,748
|
|
|
1,620,161
|
|
|
Postretirement benefits
|
|
102,085
|
|
|
104,050
|
|
|
Deferred income taxes
|
|
27,713
|
|
|
14,276
|
|
|
Other long-term liabilities
|
|
36,273
|
|
|
36,720
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
Preferred stock
|
|
1
|
|
|
1
|
|
|
Common stock
|
|
503
|
|
|
503
|
|
|
Additional paid-in capital
|
|
1,123,832
|
|
|
1,116,090
|
|
|
Retained earnings
|
|
833,610
|
|
|
783,812
|
|
|
Accumulated other comprehensive loss
|
|
(98,026
|
)
|
|
(39,067
|
)
|
|
Treasury stock
|
|
(425,685
|
)
|
|
(401,026
|
)
|
|
Total Belden stockholders’ equity
|
|
1,434,235
|
|
|
1,460,313
|
|
|
Noncontrolling interest
|
|
631
|
|
|
1,004
|
|
|
Total stockholders’ equity
|
|
1,434,866
|
|
|
1,461,317
|
|
|
|
$
|
3,833,368
|
|
|
$
|
3,806,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited)
|
|
|
|
|
|
Twelve Months Ended
|
|
|
December 31, 2017
|
|
December 31, 2016
|
|
|
|
|
|
|
|
(In thousands)
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
92,853
|
|
|
$
|
127,646
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
149,650
|
|
|
145,593
|
|
|
Loss on debt extinguishment
|
|
52,441
|
|
|
2,342
|
|
|
Share-based compensation
|
|
14,647
|
|
|
18,178
|
|
|
Impairment of assets held for sale
|
|
—
|
|
|
23,931
|
|
|
Deferred income tax benefit
|
|
(24,098
|
)
|
|
(30,034
|
)
|
|
Changes in operating assets and liabilities, net of the effects of
currency exchange rate changes and acquired businesses:
|
|
|
|
|
|
Receivables
|
|
(17,686
|
)
|
|
(10,115
|
)
|
|
Inventories
|
|
(84,088
|
)
|
|
2,677
|
|
|
Accounts payable
|
|
100,752
|
|
|
39,298
|
|
|
Accrued liabilities
|
|
(32,321
|
)
|
|
(13,181
|
)
|
|
Accrued taxes
|
|
5,001
|
|
|
11,722
|
|
|
Other assets
|
|
(13,255
|
)
|
|
760
|
|
|
Other liabilities
|
|
11,404
|
|
|
(4,023
|
)
|
|
Net cash provided by operating activities
|
|
255,300
|
|
|
314,794
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Cash used to acquire businesses, net of cash acquired
|
|
(166,896
|
)
|
|
(18,848
|
)
|
|
Capital expenditures
|
|
(64,261
|
)
|
|
(53,974
|
)
|
|
Other
|
|
—
|
|
|
(827
|
)
|
|
Proceeds from disposal of tangible assets
|
|
1,039
|
|
|
392
|
|
|
Net cash used for investing activities
|
|
(230,118
|
)
|
|
(73,257
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Payments under borrowing arrangements
|
|
(1,105,892
|
)
|
|
(294,375
|
)
|
|
Cash dividends paid
|
|
(43,376
|
)
|
|
(16,079
|
)
|
|
Payments under share repurchase program
|
|
(25,000
|
)
|
|
—
|
|
|
Debt issuance costs paid
|
|
(17,316
|
)
|
|
(3,910
|
)
|
|
Withholding tax payments for share-based payment awards, net of
proceeds from the exercise of stock options
|
|
(6,564
|
)
|
|
(7,480
|
)
|
|
Proceeds from issuance of preferred stock, net
|
|
—
|
|
|
501,498
|
|
|
Borrowings under credit arrangements
|
|
866,700
|
|
|
222,050
|
|
|
Net cash provided by (used for) financing activities
|
|
(331,448
|
)
|
|
401,704
|
|
|
Effect of foreign currency exchange rate changes on cash and cash
equivalents
|
|
19,258
|
|
|
(11,876
|
)
|
|
Increase (decrease) in cash and cash equivalents
|
|
(287,008
|
)
|
|
631,365
|
|
|
Cash and cash equivalents, beginning of period
|
|
848,116
|
|
|
216,751
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
561,108
|
|
|
$
|
848,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BELDEN INC.
|
|
RECONCILIATION OF NON-GAAP MEASURES
|
|
(Unaudited)
|
|
|
|
In addition to reporting financial results in accordance with
accounting principles generally accepted in the United States, we
provide non-GAAP operating results adjusted for certain items,
including: asset impairments; accelerated depreciation expense due
to plant consolidation activities; purchase accounting effects
related to acquisitions, such as the adjustment of acquired
inventory and deferred revenue to fair value and transaction costs;
severance, restructuring, and acquisition integration costs; gains
(losses) recognized on the disposal of businesses and tangible
assets; amortization of intangible assets; gains (losses) on debt
extinguishment; certain revenues and gains (losses) from patent
settlements; discontinued operations; and other costs. We adjust for
the items listed above in all periods presented, unless the impact
is clearly immaterial to our financial statements. When we calculate
the tax effect of the adjustments, we include all current and
deferred income tax expense commensurate with the adjusted measure
of pre-tax profitability.
|
|
|
|
We utilize the adjusted results to review our ongoing operations
without the effect of these adjustments and for comparison to
budgeted operating results. We believe the adjusted results are
useful to investors because they help them compare our results to
previous periods and provide important insights into underlying
trends in the business and how management oversees our business
operations on a day-to-day basis. As an example, we adjust for the
purchase accounting effect of recording deferred revenue at fair
value in order to reflect the revenues that would have otherwise
been recorded by acquired businesses had they remained as
independent entities. We believe this presentation is useful in
evaluating the underlying performance of acquired companies.
Similarly, we adjust for other acquisition-related expenses, such as
amortization of intangibles and other impacts of fair value
adjustments because they generally are not related to the acquired
business' core business performance. As an additional example, we
exclude the costs of restructuring programs, which can occur from
time to time for our current businesses and/or recently acquired
businesses. We exclude the costs in calculating adjusted results to
allow us and investors to evaluate the performance of the business
based upon its expected ongoing operating structure. We believe the
adjusted measures, accompanied by the disclosure of the costs of
these programs, provides valuable insight.
|
|
|
|
Adjusted results should be considered only in conjunction with
results reported according to accounting principles generally
accepted in the United States.
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except percentages and per share amounts)
|
|
GAAP revenues
|
|
$
|
604,884
|
|
|
$
|
612,435
|
|
|
$
|
2,388,643
|
|
|
$
|
2,356,672
|
|
|
Deferred revenue adjustments
|
|
—
|
|
|
1,275
|
|
|
—
|
|
|
6,687
|
|
|
Patent settlement
|
|
—
|
|
|
(5,554
|
)
|
|
—
|
|
|
(5,554
|
)
|
|
Adjusted revenues
|
|
$
|
604,884
|
|
|
$
|
608,156
|
|
|
$
|
2,388,643
|
|
|
$
|
2,357,805
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
$
|
229,592
|
|
|
$
|
261,784
|
|
|
$
|
934,039
|
|
|
$
|
980,994
|
|
|
Severance, restructuring, and acquisition integration costs
|
|
6,039
|
|
|
5,461
|
|
|
32,562
|
|
|
12,276
|
|
|
Purchase accounting effects related to acquisitions
|
|
2,044
|
|
|
912
|
|
|
6,133
|
|
|
1,107
|
|
|
Amortization of software development intangible assets
|
|
56
|
|
|
—
|
|
|
56
|
|
|
—
|
|
|
Deferred gross profit adjustments
|
|
—
|
|
|
1,275
|
|
|
—
|
|
|
6,687
|
|
|
Accelerated depreciation
|
|
—
|
|
|
246
|
|
|
798
|
|
|
864
|
|
|
Patent settlement
|
|
—
|
|
|
(5,554
|
)
|
|
—
|
|
|
(5,554
|
)
|
|
Adjusted gross profit
|
|
$
|
237,731
|
|
|
$
|
264,124
|
|
|
$
|
973,588
|
|
|
$
|
996,374
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit margin
|
|
38.0
|
%
|
|
42.7
|
%
|
|
39.1
|
%
|
|
41.6
|
%
|
|
Adjusted gross profit margin
|
|
39.3
|
%
|
|
43.4
|
%
|
|
40.8
|
%
|
|
42.3
|
%
|
|
|
|
|
|
|
|
|
|
|
GAAP selling, general and administrative expenses
|
|
$
|
(114,236
|
)
|
|
$
|
(122,099
|
)
|
|
$
|
(461,022
|
)
|
|
$
|
(494,224
|
)
|
|
Severance, restructuring, and acquisition integration costs
|
|
3,727
|
|
|
6,053
|
|
|
9,991
|
|
|
25,657
|
|
|
Loss on sale of assets
|
|
1,013
|
|
|
—
|
|
|
1,013
|
|
|
—
|
|
|
Accelerated depreciation
|
|
—
|
|
|
48
|
|
|
—
|
|
|
64
|
|
|
Purchase accounting effects related to acquisitions
|
|
—
|
|
|
(3,186
|
)
|
|
—
|
|
|
(3,186
|
)
|
|
Adjusted selling, general and administrative expenses
|
|
$
|
(109,496
|
)
|
|
$
|
(119,184
|
)
|
|
$
|
(450,018
|
)
|
|
$
|
(471,689
|
)
|
|
|
|
|
|
|
|
|
|
|
GAAP research and development
|
|
$
|
(29,222
|
)
|
|
$
|
(34,304
|
)
|
|
$
|
(134,330
|
)
|
|
$
|
(140,601
|
)
|
|
Severance, restructuring, and acquisition integration costs
|
|
185
|
|
|
184
|
|
|
237
|
|
|
837
|
|
|
Adjusted research and development
|
|
$
|
(29,037
|
)
|
|
$
|
(34,120
|
)
|
|
$
|
(134,093
|
)
|
|
$
|
(139,764
|
)
|
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable to Belden
|
|
$
|
30,519
|
|
|
$
|
33,354
|
|
|
$
|
93,210
|
|
|
$
|
128,003
|
|
|
Interest expense, net
|
|
16,477
|
|
|
23,092
|
|
|
82,901
|
|
|
95,050
|
|
|
Loss on debt extinguishment
|
|
—
|
|
|
2,342
|
|
|
52,441
|
|
|
2,342
|
|
|
Income tax expense (benefit)
|
|
13,168
|
|
|
(49
|
)
|
|
6,495
|
|
|
(1,185
|
)
|
|
Noncontrolling interest
|
|
(83
|
)
|
|
(71
|
)
|
|
(357
|
)
|
|
(357
|
)
|
|
Total non-operating adjustments
|
|
29,562
|
|
|
25,314
|
|
|
141,480
|
|
|
95,850
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
26,053
|
|
|
22,782
|
|
|
103,997
|
|
|
98,385
|
|
|
Severance, restructuring, and acquisition integration costs
|
|
9,951
|
|
|
11,698
|
|
|
42,790
|
|
|
38,770
|
|
|
Purchase accounting effects related to acquisitions
|
|
2,044
|
|
|
(2,274
|
)
|
|
6,133
|
|
|
(2,079
|
)
|
|
Loss on sale of assets
|
|
1,013
|
|
|
—
|
|
|
1,013
|
|
|
—
|
|
|
Accelerated depreciation
|
|
—
|
|
|
294
|
|
|
798
|
|
|
928
|
|
|
Amortization of software development intangible assets
|
|
56
|
|
|
—
|
|
|
56
|
|
|
—
|
|
|
Impairment of assets held for sale
|
|
—
|
|
|
23,931
|
|
|
—
|
|
|
23,931
|
|
|
Deferred gross profit adjustments
|
|
—
|
|
|
1,275
|
|
|
—
|
|
|
6,687
|
|
|
Patent settlement
|
|
—
|
|
|
(5,554
|
)
|
|
—
|
|
|
(5,554
|
)
|
|
Total operating income adjustments
|
|
39,117
|
|
|
52,152
|
|
|
154,787
|
|
|
161,068
|
|
|
Depreciation expense
|
|
11,003
|
|
|
11,661
|
|
|
44,799
|
|
|
46,280
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
110,201
|
|
|
$
|
122,481
|
|
|
$
|
434,276
|
|
|
$
|
431,201
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income margin
|
|
5.0
|
%
|
|
5.4
|
%
|
|
3.9
|
%
|
|
5.4
|
%
|
|
Adjusted EBITDA margin
|
|
18.2
|
%
|
|
20.1
|
%
|
|
18.2
|
%
|
|
18.3
|
%
|
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable to Belden
|
|
$
|
30,519
|
|
|
$
|
33,354
|
|
|
$
|
93,210
|
|
|
$
|
128,003
|
|
|
Operating income adjustments from above
|
|
39,117
|
|
|
52,152
|
|
|
154,787
|
|
|
161,068
|
|
|
Loss on debt extinguishment
|
|
—
|
|
|
2,342
|
|
|
52,441
|
|
|
2,342
|
|
|
Tax effect of adjustments above
|
|
(19,046
|
)
|
|
(17,524
|
)
|
|
(63,796
|
)
|
|
(51,374
|
)
|
|
Impact of Tax Cuts and Jobs Act enactment
|
|
28,440
|
|
|
—
|
|
|
28,440
|
|
|
—
|
|
|
Amortization expense attributable to noncontrolling interest, net of
tax
|
|
(16
|
)
|
|
(16
|
)
|
|
(63
|
)
|
|
(64
|
)
|
|
Adjusted net income attributable to Belden
|
|
$
|
79,014
|
|
|
$
|
70,308
|
|
|
$
|
265,019
|
|
|
$
|
239,975
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable to Belden
|
|
$
|
30,519
|
|
|
$
|
33,354
|
|
|
$
|
93,210
|
|
|
$
|
128,003
|
|
|
Less: Preferred stock dividends
|
|
8,733
|
|
|
8,733
|
|
|
34,931
|
|
|
15,428
|
|
|
GAAP net income attributable to Belden common stockholders
|
|
$
|
21,786
|
|
|
$
|
24,621
|
|
|
$
|
58,279
|
|
|
$
|
112,575
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income attributable to Belden
|
|
$
|
79,014
|
|
|
$
|
70,308
|
|
|
$
|
265,019
|
|
|
$
|
239,975
|
|
|
Less: Preferred stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Adjusted net income attributable to Belden common stockholders
|
|
$
|
79,014
|
|
|
$
|
70,308
|
|
|
$
|
265,019
|
|
|
$
|
239,975
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income per diluted share attributable to Belden common
stockholders
|
|
$
|
0.51
|
|
|
$
|
0.58
|
|
|
$
|
1.37
|
|
|
$
|
2.65
|
|
|
Adjusted income per diluted share attributable to Belden common
stockholders
|
|
$
|
1.62
|
|
|
$
|
1.42
|
|
|
$
|
5.35
|
|
|
$
|
5.27
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted weighted average shares
|
|
42,581
|
|
|
42,674
|
|
|
42,643
|
|
|
42,557
|
|
|
Adjustment for assumed conversion of preferred stock into common
stock
|
|
6,268
|
|
|
6,857
|
|
|
6,857
|
|
|
2,979
|
|
|
Adjusted diluted weighted average shares
|
|
48,849
|
|
|
49,531
|
|
|
49,500
|
|
|
45,536
|
|
|
|
|
BELDEN INC.
|
|
RECONCILIATION OF NON-GAAP MEASURES
|
|
(Unaudited)
|
|
|
|
We define free cash flow, which is a non-GAAP financial measure, as
net cash from operating activities adjusted for capital expenditures
net of the proceeds from the disposal of tangible assets. We believe
free cash flow provides useful information to investors regarding
our ability to generate cash from business operations that is
available for acquisitions and other investments, service of debt
principal, dividends and share repurchases. We use free cash flow,
as defined, as one financial measure to monitor and evaluate
performance and liquidity. Non-GAAP financial measures should be
considered only in conjunction with financial measures reported
according to accounting principles generally accepted in the United
States. Our definition of free cash flow may differ from definitions
used by other companies.
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
GAAP net cash provided by operating activities
|
|
$
|
151,685
|
|
|
$
|
167,365
|
|
|
$
|
255,300
|
|
|
$
|
314,794
|
|
|
Capital expenditures, net of proceeds from the disposal of tangible
assets
|
|
(29,807
|
)
|
|
(17,807
|
)
|
|
(63,222
|
)
|
|
(53,582
|
)
|
|
Non-GAAP free cash flow
|
|
$
|
121,878
|
|
|
$
|
149,558
|
|
|
$
|
192,078
|
|
|
$
|
261,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
2018 EARNINGS GUIDANCE
|
|
|
|
|
|
|
|
Year Ended
December 31, 2018
|
|
Three Months Ended
April 1, 2018
|
|
Adjusted income per diluted share attributable to Belden common
stockholders
|
|
$5.95 - $6.20
|
|
$1.05 - $1.15
|
|
Amortization of intangible assets
|
|
$(1.49)
|
|
$(0.39)
|
|
Severance, restructuring, and acquisition integration costs
|
|
$(0.50)
|
|
$(0.29)
|
|
GAAP income per diluted share attributable to Belden common
stockholders
|
|
$3.96 - $4.21
|
|
$0.37 - $0.47
|
Our guidance for income per diluted share attributable to Belden common
stockholders is based upon information currently available regarding
events and conditions that will impact our future operating results. In
particular, our results are subject to the factors listed under
"Forward-Looking Statements" in this release. In addition, our actual
results are likely to be impacted by other additional events for which
information is not available, such as asset impairments, purchase
accounting effects related to acquisitions, severance, restructuring,
and acquisition integration costs, gains (losses) recognized on the
disposal of tangible assets, gains (losses) on debt extinguishment,
discontinued operations, and other gains (losses) related to events or
conditions that are not yet known.
Forward-Looking Statements
This release and any statements made by us concerning the release may
contain forward-looking statements including our expectations for the
first quarter and full-year 2018. 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/20180201005409/en/
Source: Belden Inc.