| [April 30, 2015] |
 |
Belden Reports Strong Results in First Quarter 2015
Belden Inc. (NYSE: BDC), a global leader in high quality, end-to-end
signal transmission solutions for mission-critical applications, today
reported fiscal first quarter 2015 results for the period ended March
29, 2015.
First Quarter 2015 Highlights
-
Grew revenues by 12.2% year-over-year;
-
Achieved record adjusted gross profit margins of 40.6%, increasing 450
basis points from 36.1% in the year-ago period;
-
Expanded adjusted EBITDA margins to 15.5%, increasing 40 basis points
from 15.1% in the year-ago period;
-
Generated adjusted income from continuing operations per diluted share
of $1.00, up 25% over last year's $0.80; and
-
Completed the acquisition of Tripwire, a leading global provider of
advanced threat, security and compliance solutions.
First Quarter 2015
On a GAAP basis, revenues for the quarter totaled $547.0 million, up
$59.3 million, or 12.2%, compared to $487.7 million in the first quarter
2014. Gross profit margin in the first quarter was 38.0%, increasing 200
basis points from 36.0% in the year-ago period. Operating profit margin
in the first quarter was 0.9%, decreasing from 10.2% in the year-ago
period. Loss from continuing operations per diluted share totaled
$(0.46), compared to income of $0.57 in the first quarter 2014. The
year-over-year decline in both operating profit margin and income from
continuing operations per diluted share was largely a result of
amortization expense and other purchase accounting effects related to
recent acquisitions.
Adjusted revenue for the quarter totaled $569.5 million, up $81.2
million, or 16.6%, compared to $488.3 million in the first quarter 2014.
Adjusted gross profit margin in the first quarter was a company record
40.6%, increasing 450 basis points from 36.1% in the year-ago period.
Adjusted EBITDA margin in the first quarter was 15.5%, increasing 40
basis points from 15.1% in the year-ago period. Adjusted income from
continuing operations per diluted share totaled $1.00, compared to $0.80
in the first quarter 2014, a year-over-year increase of 25.0%. Adjusted
results are non-GAAP measures, and a non-GAAP reconciliation table is
provided as an appendix to this release.
John Stroup, President and CEO of Belden Inc., said, "It was a solid
start to the year, with gross margins of 40.6% setting a new company
record. The demand environment as we entered 2015 varied by market and
geography, with strength in our Network Security, Enterprise and
Industrial platforms. This offset the impact of a stronger U.S. dollar
and economic uncertainty in several emerging markets that affected
demand within our Broadcast segment."
Outlook
"Although the stronger U.S. dollar does impact our results, I'm
encouraged by the positive secular growth trends that we're
experiencing, including improving demand for non-residential
infrastructure, industrial automation equipment, and sophisticated
cybersecurity solutions. While global economic uncertainty continues,
Belden is well positioned with a diverse portfolio and proven business
system," said Mr. Stroup.
The Company expects second quarter 2015 adjusted revenues to be $605 -
$625 million and adjusted income from continuing operations per diluted
share to be $1.15 - $1.25. For the full year ending December 31, 2015,
the Company now expects adjusted revenues to be $2.450 - $2.500 billion
compared to the previously guided range of $2.475 - $2.525 billion. The
expected range of adjusted income from continuing operations per diluted
share is now $5.28 - $5.48 compared to the previously guided range of
$5.28 - $5.58.
On a GAAP basis, the Company expects second quarter 2015 revenues to be
$588 - $608 million and income from continuing operations per diluted
share to be $0.32 - $0.42. For the full year ending December 31, 2015,
the Company now expects revenues to be $2.388 - $2.438 billion compared
to the previously guided range of $2.417 - $2.467 billion. The expected
range of income from continuing operations per diluted share is now
$2.37 - $2.57 compared to the previously guided range of $2.37 - $2.67.
Earnings Conference Call
Management will host a conference call today at 10:30 am EDT to discuss
results of the quarter and full-year. 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 888-256-9157; the
dial-in number for participants outside the U.S. is 913-312-0977. A
replay of this conference call will remain accessible in the investor
relations section of the Company's Web site for a limited time.
|
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BELDEN INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
|
|
COMPREHENSIVE INCOME
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
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|
|
|
|
|
March 29, 2015
|
|
|
March 30, 2014
|
|
|
|
|
|
(In thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
$
|
546,957
|
|
|
|
$
|
487,690
|
|
|
Cost of sales
|
|
|
|
|
(339,308
|
)
|
|
|
|
(311,973
|
)
|
|
Gross profit
|
|
|
|
|
207,649
|
|
|
|
|
175,717
|
|
|
Selling, general and administrative expenses
|
|
|
|
|
(140,816
|
)
|
|
|
|
(94,848
|
)
|
|
Research and development
|
|
|
|
|
(36,199
|
)
|
|
|
|
(20,571
|
)
|
|
Amortization of intangibles
|
|
|
|
|
(26,504
|
)
|
|
|
|
(11,741
|
)
|
|
Income from equity method investment
|
|
|
|
|
768
|
|
|
|
|
954
|
|
|
Operating income
|
|
|
|
|
4,898
|
|
|
|
|
49,511
|
|
|
Interest expense
|
|
|
|
|
(23,926
|
)
|
|
|
|
(18,820
|
)
|
|
Interest income
|
|
|
|
|
80
|
|
|
|
|
150
|
|
|
Income (loss) from continuing operations before taxes
|
|
|
|
|
(18,948
|
)
|
|
|
|
30,841
|
|
|
Income tax expense
|
|
|
|
|
(688
|
)
|
|
|
|
(5,685
|
)
|
|
Income (loss) from continuing operations
|
|
|
|
|
(19,636
|
)
|
|
|
|
25,156
|
|
|
Loss from disposal of discontinued operations, net of tax
|
|
|
|
|
-
|
|
|
|
|
(562
|
)
|
|
Net income (loss)
|
|
|
|
$
|
(19,636
|
)
|
|
|
$
|
24,594
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares and equivalents:
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|
|
|
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|
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Basic
|
|
|
|
|
42,535
|
|
|
|
|
43,514
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Diluted
|
|
|
|
|
42,535
|
|
|
|
|
44,293
|
|
|
|
|
|
|
|
|
|
|
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Basic income (loss) per share
|
|
|
|
|
|
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|
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Continuing operations
|
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|
|
$
|
(0.46
|
)
|
|
|
$
|
0.58
|
|
|
Disposal of discontinued operations
|
|
|
|
|
-
|
|
|
|
|
(0.01
|
)
|
|
Net income (loss)
|
|
|
|
$
|
(0.46
|
)
|
|
|
$
|
0.57
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss) per share
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
$
|
(0.46
|
)
|
|
|
$
|
0.57
|
|
|
Disposal of discontinued operations
|
|
|
|
|
-
|
|
|
|
|
(0.01
|
)
|
|
Net income (loss)
|
|
|
|
$
|
(0.46
|
)
|
|
|
$
|
0.56
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss)
|
|
|
|
$
|
(5,723
|
)
|
|
|
$
|
13,281
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per share
|
|
|
|
$
|
0.05
|
|
|
|
$
|
0.05
|
|
|
|
|
|
|
|
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BELDEN INC.
|
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CONDENSED CONSOLIDATED BALANCE SHEETS
|
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|
|
March 29, 2015
|
|
|
December 31, 2014
|
|
|
|
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|
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(Unaudited)
|
|
|
|
|
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|
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|
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(In thousands)
|
|
ASSETS
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
166,700
|
|
|
|
$
|
741,162
|
|
|
Receivables, net
|
|
|
|
|
392,727
|
|
|
|
|
379,777
|
|
|
Inventories, net
|
|
|
|
|
238,243
|
|
|
|
|
228,398
|
|
|
Deferred income taxes
|
|
|
|
|
21,173
|
|
|
|
|
22,157
|
|
|
Other current assets
|
|
|
|
|
58,432
|
|
|
|
|
42,656
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
|
877,275
|
|
|
|
|
1,414,150
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, less accumulated depreciation
|
|
|
|
|
319,110
|
|
|
|
|
316,385
|
|
|
Goodwill
|
|
|
|
|
1,411,971
|
|
|
|
|
943,374
|
|
|
Intangible assets, less accumulated amortization
|
|
|
|
|
733,285
|
|
|
|
|
461,292
|
|
|
Deferred income taxes
|
|
|
|
|
38,215
|
|
|
|
|
40,652
|
|
|
Other long-lived assets
|
|
|
|
|
81,091
|
|
|
|
|
86,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,460,947
|
|
|
|
$
|
3,262,827
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
233,604
|
|
|
|
$
|
272,439
|
|
|
Accrued liabilities
|
|
|
|
|
247,945
|
|
|
|
|
250,420
|
|
|
Current maturities of long-term debt
|
|
|
|
|
2,500
|
|
|
|
|
2,500
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
|
484,049
|
|
|
|
|
525,359
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
|
1,904,413
|
|
|
|
|
1,765,422
|
|
|
Postretirement benefits
|
|
|
|
|
113,884
|
|
|
|
|
122,627
|
|
|
Deferred income taxes
|
|
|
|
|
126,367
|
|
|
|
|
10,824
|
|
|
Other long-term liabilities
|
|
|
|
|
35,019
|
|
|
|
|
31,409
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
503
|
|
|
|
|
503
|
|
|
Additional paid-in capital
|
|
|
|
|
592,837
|
|
|
|
|
595,389
|
|
|
Retained earnings
|
|
|
|
|
600,158
|
|
|
|
|
621,896
|
|
|
Accumulated other comprehensive loss
|
|
|
|
|
(32,118
|
)
|
|
|
|
(46,031
|
)
|
|
Treasury stock
|
|
|
|
|
(364,165
|
)
|
|
|
|
(364,571
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
|
|
797,215
|
|
|
|
|
807,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,460,947
|
|
|
|
$
|
3,262,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BELDEN INC.
|
|
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 29, 2015
|
|
|
March 30, 2014
|
|
|
|
|
|
(In thousands)
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
(19,636
|
)
|
|
|
$
|
24,594
|
|
|
Adjustments to reconcile net income (loss) to net cash used for
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
38,045
|
|
|
|
|
21,238
|
|
|
Share-based compensation
|
|
|
|
|
5,006
|
|
|
|
|
4,566
|
|
|
Loss on sale of business
|
|
|
|
|
-
|
|
|
|
|
562
|
|
|
Income from equity method investment
|
|
|
|
|
(768
|
)
|
|
|
|
(954
|
)
|
|
Tax benefit related to share-based compensation
|
|
|
|
|
(3,690
|
)
|
|
|
|
(3,264
|
)
|
|
Changes in operating assets and liabilities, net of the effects of
currency exchange rate changes and acquired businesses:
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
|
|
10,341
|
|
|
|
|
(6,490
|
)
|
|
Inventories
|
|
|
|
|
(18,211
|
)
|
|
|
|
(13,205
|
)
|
|
Accounts payable
|
|
|
|
|
(34,562
|
)
|
|
|
|
1,252
|
|
|
Accrued liabilities
|
|
|
|
|
(23,965
|
)
|
|
|
|
(40,748
|
)
|
|
Accrued taxes
|
|
|
|
|
(50
|
)
|
|
|
|
(3,622
|
)
|
|
Other assets
|
|
|
|
|
(1,638
|
)
|
|
|
|
(2,417
|
)
|
|
Other liabilities
|
|
|
|
|
923
|
|
|
|
|
(1,927
|
)
|
|
Net cash used for operating activities
|
|
|
|
|
(48,205
|
)
|
|
|
|
(20,415
|
)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Cash used to acquire businesses, net of cash acquired
|
|
|
|
|
(695,345
|
)
|
|
|
|
(4,700
|
)
|
|
Capital expenditures
|
|
|
|
|
(15,456
|
)
|
|
|
|
(10,356
|
)
|
|
Payments from disposal of business
|
|
|
|
|
-
|
|
|
|
|
(956
|
)
|
|
Proceeds from disposal of tangible assets
|
|
|
|
|
6
|
|
|
|
|
12
|
|
|
Net cash used for investing activities
|
|
|
|
|
(710,795
|
)
|
|
|
|
(16,000
|
)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Borrowings under credit arrangements
|
|
|
|
|
200,000
|
|
|
|
|
-
|
|
|
Tax benefit related to share-based compensation
|
|
|
|
|
3,690
|
|
|
|
|
3,264
|
|
|
Debt issuance costs paid
|
|
|
|
|
(622
|
)
|
|
|
|
(1,702
|
)
|
|
Cash dividends paid
|
|
|
|
|
(2,140
|
)
|
|
|
|
(2,172
|
)
|
|
Proceeds (payments) from exercise of stock options, net of
withholding tax payments
|
|
|
|
|
(10,842
|
)
|
|
|
|
(5,441
|
)
|
|
Net cash provided by (used for) financing activities
|
|
|
|
|
190,086
|
|
|
|
|
(6,051
|
)
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign currency exchange rate changes on cash and cash
equivalents
|
|
|
|
|
(5,548
|
)
|
|
|
|
(1,259
|
)
|
|
|
|
|
|
|
|
|
|
|
Decrease in cash and cash equivalents
|
|
|
|
|
(574,462
|
)
|
|
|
|
(43,725
|
)
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
|
741,162
|
|
|
|
|
613,304
|
|
|
Cash and cash equivalents, end of period
|
|
|
|
$
|
166,700
|
|
|
|
$
|
569,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BELDEN INC.
|
|
CONSOLIDATED 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;
revenue and cost of sales deferrals for certain acquired product
lines subject to software revenue recognition accounting
requirements; 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; discontinued operations; and other costs. 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. Adjusted results should be
considered only in conjunction with results reported according to
accounting principles generally accepted in the United States.
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 29, 2015
|
|
March 30, 2014
|
|
|
|
|
(In thousands, except percentages and per share amounts)
|
|
|
|
|
|
|
|
|
GAAP revenues
|
|
|
$
|
546,957
|
|
|
$
|
487,690
|
|
|
Deferred revenue adjustments
|
|
|
|
22,494
|
|
|
|
617
|
|
|
Adjusted revenues
|
|
|
$
|
569,451
|
|
|
$
|
488,307
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
|
$
|
207,649
|
|
|
$
|
175,717
|
|
|
Deferred gross profit adjustments
|
|
|
|
21,658
|
|
|
|
450
|
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
|
1,466
|
|
|
|
(49
|
)
|
|
Purchase accounting effects related to acquisitions
|
|
|
|
267
|
|
|
|
-
|
|
|
Adjusted gross profit
|
|
|
$
|
231,040
|
|
|
$
|
176,118
|
|
|
|
|
|
|
|
|
|
GAAP gross profit margin
|
|
|
|
38.0
|
%
|
|
|
36.0
|
%
|
|
Adjusted gross profit margin
|
|
|
|
40.6
|
%
|
|
|
36.1
|
%
|
|
|
|
|
|
|
|
|
GAAP operating income
|
|
|
$
|
4,898
|
|
|
$
|
49,511
|
|
|
Amortization of intangible assets
|
|
|
|
26,504
|
|
|
|
11,741
|
|
|
Deferred gross profit adjustments
|
|
|
|
21,658
|
|
|
|
450
|
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
|
14,483
|
|
|
|
2,295
|
|
|
Purchase accounting effects related to acquisitions
|
|
|
|
9,422
|
|
|
|
-
|
|
|
Accelerated depreciation
|
|
|
|
140
|
|
|
|
-
|
|
|
Total operating income adjustments
|
|
|
|
72,207
|
|
|
|
14,486
|
|
|
Adjusted operating income
|
|
|
$
|
77,105
|
|
|
$
|
63,997
|
|
|
Depreciation expense
|
|
|
|
11,401
|
|
|
|
9,497
|
|
|
Adjusted EBITDA
|
|
|
$
|
88,506
|
|
|
$
|
73,494
|
|
|
|
|
|
|
|
|
|
GAAP operating income margin
|
|
|
|
0.9
|
%
|
|
|
10.2
|
%
|
|
Adjusted operating income margin
|
|
|
|
13.5
|
%
|
|
|
13.1
|
%
|
|
Adjusted EBITDA margin
|
|
|
|
15.5
|
%
|
|
|
15.1
|
%
|
|
|
|
|
|
|
|
|
GAAP income (loss) from continuing operations
|
|
|
$
|
(19,636
|
)
|
|
$
|
25,156
|
|
|
Operating income adjustments from above
|
|
|
|
72,207
|
|
|
|
14,486
|
|
|
Tax effect of adjustments
|
|
|
|
(9,309
|
)
|
|
|
(4,220
|
)
|
|
Adjusted income from continuing operations
|
|
|
$
|
43,262
|
|
|
$
|
35,422
|
|
|
|
|
|
|
|
|
|
GAAP income (loss) from continuing operations per diluted share
|
|
|
$
|
(0.46
|
)
|
|
$
|
0.57
|
|
|
Adjusted income from continuing operations per diluted share
|
|
|
$
|
1.00
|
|
|
$
|
0.80
|
|
|
|
|
|
|
|
|
|
GAAP diluted weighted average shares
|
|
|
|
42,535
|
|
|
|
44,293
|
|
|
Adjustment for anti-dilutive shares that are dilutive under adjusted
measures
|
|
|
|
677
|
|
|
|
-
|
|
|
Adjusted diluted weighted average shares
|
|
|
|
43,212
|
|
|
|
44,293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BELDEN INC.
|
|
RECONCILIATION OF OPERATING SEGMENT MEASURES TO CONSOLIDATED
MEASURES
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In addition to reporting consolidated financial results in
accordance with accounting principles generally accepted in the
United States, we provide non-GAAP consolidated 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; revenue and cost of sales
deferrals for certain acquired product lines subject to software
revenue recognition accounting requirements; severance,
restructuring, and acquisition integration costs; gains (losses)
recognized on the disposal of businesses and tangible assets;
amortization of intangible assets; and other costs. We utilize the
consolidated adjusted results to review our ongoing operations
without the effect of these adjustments and for comparison to
consolidated budgeted operating results. We believe the consolidated
adjusted results are useful to investors because they help them
compare our consolidated 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.
Consolidated adjusted results should be considered only in
conjunction with consolidated results reported according to
accounting principles generally accepted in the United States.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 29, 2015
|
|
|
|
|
Broadcast
Solutions
|
|
Enterprise
Connectivity
Solutions
|
|
Industrial
Connectivity
Solutions
|
|
Industrial IT
Solutions
|
|
Network Security
Solutions
|
|
Total Segments
|
|
Eliminations
|
|
Income from
equity method
investment
|
|
Consolidated
|
|
|
|
|
(In thousands, except percentages)
|
|
Segement revenues
|
|
|
$
|
213,586
|
|
|
$
|
104,695
|
|
|
$
|
152,972
|
|
|
$
|
61,073
|
|
|
$
|
37,125
|
|
|
$
|
569,451
|
|
|
$
|
-
|
|
|
$
|
-
|
|
$
|
569,451
|
|
|
Deferred revenue adjustments
|
|
|
|
(4,130
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(18,364
|
)
|
|
|
(22,494
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(22,494
|
)
|
|
Consolidated revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
546,957
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBITDA
|
|
|
$
|
29,232
|
|
|
$
|
13,881
|
|
|
$
|
24,173
|
|
|
$
|
11,087
|
|
|
$
|
9,901
|
|
|
$
|
88,274
|
|
|
$
|
(536
|
)
|
|
$
|
768
|
|
$
|
88,506
|
|
|
Depreciation expense
|
|
|
|
(4,045
|
)
|
|
|
(3,002
|
)
|
|
|
(2,851
|
)
|
|
|
(559
|
)
|
|
|
(944
|
)
|
|
|
(11,401
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(11,401
|
)
|
|
Adjusted operating income(A)
|
|
|
$
|
25,187
|
|
|
$
|
10,879
|
|
|
$
|
21,322
|
|
|
$
|
10,528
|
|
|
$
|
8,957
|
|
|
$
|
76,873
|
|
|
$
|
(536
|
)
|
|
$
|
768
|
|
$
|
77,105
|
|
|
Amortization of intangible assets
|
|
|
|
(12,720
|
)
|
|
|
(138
|
)
|
|
|
(823
|
)
|
|
|
(1,410
|
)
|
|
|
(11,413
|
)
|
|
|
(26,504
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(26,504
|
)
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
|
(11,538
|
)
|
|
|
(557
|
)
|
|
|
(1,773
|
)
|
|
|
52
|
|
|
|
(667
|
)
|
|
|
(14,483
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(14,483
|
)
|
|
Deferred gross profit adjustments
|
|
|
|
(3,294
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(18,364
|
)
|
|
|
(21,658
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(21,658
|
)
|
|
Purchase accounting effects related to acquisitions
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(267
|
)
|
|
|
-
|
|
|
|
(9,155
|
)
|
|
|
(9,422
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(9,422
|
)
|
|
Accelerated depreciation
|
|
|
|
(140
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(140
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(140
|
)
|
|
Subtotal of reconciling items
|
|
|
|
(27,692
|
)
|
|
|
(695
|
)
|
|
|
(2,863
|
)
|
|
|
(1,358
|
)
|
|
|
(39,599
|
)
|
|
|
(72,207
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(72,207
|
)
|
|
Consolidated operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBITDA margin
|
|
|
|
13.7
|
%
|
|
|
13.3
|
%
|
|
|
15.8
|
%
|
|
|
18.2
|
%
|
|
|
26.7
|
%
|
|
|
15.5
|
%
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15.5
|
%
|
|
Adjusted operating income margin
|
|
|
|
11.8
|
%
|
|
|
10.4
|
%
|
|
|
13.9
|
%
|
|
|
17.2
|
%
|
|
|
24.1
|
%
|
|
|
13.5
|
%
|
|
|
|
|
|
|
13.5
|
%
|
|
GAAP operating income margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.9
|
%
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 30, 2014
|
|
|
|
|
Broadcast
Solutions
|
|
Enterprise
Connectivity
Solutions
|
|
Industrial
Connectivity
Solutions
|
|
Industrial IT
Solutions
|
|
Network Security
Solutions
|
|
Total Segments
|
|
Eliminations
|
|
Income from
equity method
investment
|
|
Consolidated
|
|
|
|
|
(In thousands, except percentages)
|
|
Segement revenues
|
|
|
$
|
166,485
|
|
|
$
|
108,394
|
|
|
$
|
159,318
|
|
|
$
|
54,110
|
|
|
$
|
-
|
|
|
$
|
488,307
|
|
|
$
|
-
|
|
|
$
|
-
|
|
$
|
488,307
|
|
|
Deferred revenue adjustments
|
|
|
|
(617
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(617
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(617
|
)
|
|
Consolidated revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
487,690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBITDA
|
|
|
$
|
26,171
|
|
|
$
|
14,175
|
|
|
$
|
23,682
|
|
|
$
|
9,588
|
|
|
$
|
-
|
|
|
$
|
73,616
|
|
|
$
|
(1,076
|
)
|
|
$
|
954
|
|
$
|
73,494
|
|
|
Depreciation expense
|
|
|
|
(2,881
|
)
|
|
|
(3,700
|
)
|
|
|
(2,384
|
)
|
|
|
(532
|
)
|
|
|
-
|
|
|
|
(9,497
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(9,497
|
)
|
|
Adjusted operating income(A)
|
|
|
$
|
23,290
|
|
|
$
|
10,475
|
|
|
$
|
21,298
|
|
|
$
|
9,056
|
|
|
$
|
-
|
|
|
$
|
64,119
|
|
|
$
|
(1,076
|
)
|
|
$
|
954
|
|
$
|
63,997
|
|
|
Amortization of intangible assets
|
|
|
|
(10,519
|
)
|
|
|
(168
|
)
|
|
|
(265
|
)
|
|
|
(789
|
)
|
|
|
-
|
|
|
|
(11,741
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(11,741
|
)
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
|
(1,753
|
)
|
|
|
(139
|
)
|
|
|
(283
|
)
|
|
|
(120
|
)
|
|
|
-
|
|
|
|
(2,295
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(2,295
|
)
|
|
Deferred gross profit adjustments
|
|
|
|
(450
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(450
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(450
|
)
|
|
Subtotal of reconciling items
|
|
|
|
(12,722
|
)
|
|
|
(307
|
)
|
|
|
(548
|
)
|
|
|
(909
|
)
|
|
|
-
|
|
|
|
(14,486
|
)
|
|
|
-
|
|
|
|
-
|
|
|
(14,486
|
)
|
|
Consolidated operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
49,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBITDA margin
|
|
|
|
15.7
|
%
|
|
|
13.1
|
%
|
|
|
14.9
|
%
|
|
|
17.7
|
%
|
|
|
|
|
15.1
|
%
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15.1
|
%
|
|
Adjusted operating income margin
|
|
|
|
14.0
|
%
|
|
|
9.7
|
%
|
|
|
13.4
|
%
|
|
|
16.7
|
%
|
|
|
|
|
13.1
|
%
|
|
|
|
|
|
|
13.1
|
%
|
|
GAAP operating income margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Adjusted operating income by segment is presented for
informational purposes only. Effective January 1, 2015, our
measurement of segment profit or loss is Segment EBITDA. The prior
periods presentation has been updated accordingly.
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BELDEN INC.
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RECONCILIATION OF NON-GAAP MEASURES
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FREE CASH FLOW
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(Unaudited)
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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.
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Three Months Ended
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Three Months Ended
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March 29, 2015
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March 30, 2014
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(In thousands)
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GAAP net cash used for operating activities
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$
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(48,205
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)
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$
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(20,415
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)
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Capital expenditures, net of proceeds from the disposal of
tangible assets
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(15,450
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)
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(10,344
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)
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Non-GAAP free cash flow
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$
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(63,655
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)
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$
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(30,759
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)
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BELDEN INC.
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RECONCILIATION OF NON-GAAP MEASURES
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2015 REVENUE AND EARNINGS GUIDANCE
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Year Ended
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Three Months Ended
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December 31, 2015
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June 28, 2015
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Adjusted revenues
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$2.450 - $2.500 billion
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$605 - $625 million
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Deferred revenue adjustments
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($62 million)
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($17 million)
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GAAP revenues
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$2.388 - $2.438 billion
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$588 - $608 million
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Adjusted income from continuing operations per diluted share
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$5.28 - $5.48
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$1.15 - $1.25
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Amortization of intangible assets
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($1.52)
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($0.40)
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Deferred gross profit adjustments
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($0.86)
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($0.25)
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Severance, restructuring, and acquisition integration costs
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($0.39)
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($0.18)
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Purchase accounting effects of acquisitions
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($0.14)
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$0.00
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GAAP income from continuing operations per diluted share
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|
$2.37 - $2.57
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|
$0.32 - $0.42
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Our guidance for revenues and income from continuing operations per
diluted share is based upon the extent of information currently
available regarding events and conditions that will impact our
future operating results for 2015. 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 and other restructuring 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.
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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. All GAAP to
non-GAAP reconciliations accompany the consolidated financial statements
included in this release and have been published to the investor
relations section of the Company's Web site at http://investor.belden.com.
Forward-Looking Statements
This release contains forward-looking statements including our
expectations for the second quarter and full-year 2015. Forward-looking
statements also include any other statements regarding future financial
performance (including revenues, expenses, earnings, margins, cash
flows, dividends, capital expenditures and financial condition), plans
and objectives, and related assumptions. 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: the impact of a challenging global economy or a
downturn in served markets; the cost and availability of raw materials
including copper, plastic compounds, electronic components, and other
materials; the competitiveness of the global broadcast, enterprise, and
industrial markets; disruption of, or changes in, the Company's key
distribution channels; volatility in credit and foreign exchange
markets; the inability to successfully complete and integrate
acquisitions in furtherance of the Company's strategic plan; the
inability to execute and realize the expected benefits from strategic
initiatives (including revenue growth, cost control, and productivity
improvement programs); political and economic uncertainties in the
countries where the Company conducts business, including emerging
markets; the inability of the Company to develop and introduce new
products and competitive responses to our products; 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; variability in the
Company's quarterly and annual effective tax rates; the impairment of
goodwill and other intangible assets and the resulting impact on
financial performance; the impact of regulatory requirements and other
legal compliance issues; disruptions in the Company's information
systems including due to cyber-attacks; perceived or actual product
failures; risks related to the use of open source software; 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, 2014, filed with the
SEC on February 23, 2015. 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.
BDC-E
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