[May 04, 2016] |
|
Belden Reports Strong Results for First Quarter 2016
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 2016 results for the period ended April 3,
2016.
First Quarter 2016 Highlights
-
Delivered GAAP first quarter revenues of $541.5 million, and adjusted
first quarter revenues of $543.8 million;
-
Expanded adjusted gross profit margins to 42.3%, an increase of 170
basis points from 40.6% in the year-ago period;
-
Generated adjusted EBITDA margins of 16.4%, an increase of 90 basis
points from 15.5% in the year-ago period;
-
Repaid $51 million of debt during the quarter; and
-
Increased full-year adjusted revenues and adjusted EPS guidance.
First Quarter 2016
On a GAAP basis, revenues for the quarter totaled $541.5 million,
declining $5.5 million, or 1.0%, compared to $547.0 million in the first
quarter 2015. Gross profit margin in the first quarter was 41.6%,
increasing 360 basis points from 38.0% in the year-ago period. Operating
income was $41.0 million, an increase from the prior-year period of $4.9
million. Operating profit margin in the first quarter was 7.6%,
increasing from 0.9% in the year-ago period. EPS totaled $0.39, compared
to a loss of $(0.46) in the first quarter 2015. GAAP operating profit
margin expansion and net income improvement was largely driven by
purchase accounting effects in the year-ago period related to the
acquisition of Tripwire.
Adjusted revenues for the quarter totaled $543.8 million, declining
$25.7 million, or 4.5%, compared to $569.5 million in the first quarter
2015. Adjusted gross profit margin in the first quarter was 42.3%,
increasing 170 basis points from 40.6% in the year-ago period. Adjusted
EBITDA margin in the first quarter was 16.4%, increasing 90 basis points
from 15.5% in the year-ago period. Adjusted EPS increased to $1.01 from
$1.00 in the first quarter 2015. Adjusted results are non-GAAP measures,
and a non-GAAP reconciliation table is provided as an appendix to this
release.
To capitalize on the adoption of IP technology and accelerate our
penetration of the commercial audio-video market, we elected in the
first quarter to transfer the responsibility of audio-video cable and
connectors to our Enterprise segment leadership team. As a result,
revenues for this product category are now reported within the
Enterprise Connectivity platform. Such revenues were previously reported
within the Broadcast Connectivity platform. Prior period segment
information has been revised to conform to the change in the composition
of reportable segments and is included as an appendix to this release.
John Stroup, President and CEO of Belden Inc., said, "We are extremely
pleased with our first quarter results, including earnings growth,
margin expansion, and cash flow. As expected, strength within Broadband,
Enterprise, and Network Security markets offset weakness from our
industrial platforms. Despite a difficult year-over-year comparison due
primarily to lower oil prices and a stronger U.S. dollar, our attractive
portfolio, superior business system, and talented team enabled us to
outperform."
Outlook
"Given our strong start, we have increased our revenue and earnings
outlook for the year. We expect our Broadband, Enterprise, and Network
Security businesses will continue to perform well and benefit from
favorable end-market conditions. Although our industrial businesses are
down year-over-year, sequential performance, backlog, and order rates
suggest stability that should lead to a better second half," said Mr.
Stroup.
The Company expects second quarter 2016 adjusted revenues to be $570 -
$590 million and adjusted EPS to be $1.20 - $1.30. For the full year
ending December 31, 2016, the Company now expects adjusted revenues to
be $2.320 - $2.370 billion compared to the previously guided range of
$2.295 - $2.345 billion. The expected range of adjusted EPS is now $5.15
- $5.45 compared to the previously guided range of $5.10 - $5.40.
On a GAAP basis, the Company expects second quarter 2016 revenues to be
$568 - $588 million and EPS to be $0.62 - $0.72. For the full year
ending December 31, 2016, the Company now expects revenues to be $2.313
- $2.363 billion compared to the previously guided range of $2.288 -
$2.338 billion. The expected range of EPS is now $2.84 - $3.14 compared
to the previously guided range of $2.68 - $2.98.
Earnings Conference Call
Management will host a conference call today at 8:30 am EDT 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 888-287-5563; the
dial-in number for participants outside the U.S. is 719-325-2432. A
replay of this conference call will remain accessible in the investor
relations section of the Company's Web site for a limited time.
|
BELDEN INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
April 3, 2016
|
|
|
March 29, 2015
|
|
|
|
|
(In thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
$
|
541,497
|
|
|
|
$
|
546,957
|
|
Cost of sales
|
|
|
|
|
(316,462
|
)
|
|
|
|
(339,308
|
)
|
Gross profit
|
|
|
|
|
225,035
|
|
|
|
|
207,649
|
|
Selling, general and administrative expenses
|
|
|
|
|
(122,406
|
)
|
|
|
|
(140,048
|
)
|
Research and development
|
|
|
|
|
(36,133
|
)
|
|
|
|
(36,199
|
)
|
Amortization of intangibles
|
|
|
|
|
(25,532
|
)
|
|
|
|
(26,504
|
)
|
Operating income
|
|
|
|
|
40,964
|
|
|
|
|
4,898
|
|
Interest expense, net
|
|
|
|
|
(24,396
|
)
|
|
|
|
(23,846
|
)
|
Income (loss) before taxes
|
|
|
|
|
16,568
|
|
|
|
|
(18,948
|
)
|
Income tax expense
|
|
|
|
|
(143
|
)
|
|
|
|
(688
|
)
|
Net income (loss)
|
|
|
|
|
16,425
|
|
|
|
|
(19,636
|
)
|
Less: Net loss attributable to noncontrolling interest
|
|
|
|
|
(99
|
)
|
|
|
|
-
|
|
Net income (loss) attributable to Belden stockholders
|
|
|
|
$
|
16,524
|
|
|
|
$
|
(19,636
|
)
|
|
|
|
|
|
|
|
|
Weighted average number of common shares and equivalents:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
42,008
|
|
|
|
|
42,535
|
|
Diluted
|
|
|
|
|
42,440
|
|
|
|
|
42,535
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per share attributable to Belden stockholders
|
|
|
|
$
|
0.39
|
|
|
|
$
|
(0.46
|
)
|
|
|
|
|
|
|
|
|
Diluted income (loss) per share attributable to Belden stockholders
|
|
|
|
$
|
0.39
|
|
|
|
$
|
(0.46
|
)
|
|
|
|
|
|
|
|
|
Dividends declared per share
|
|
|
|
$
|
0.05
|
|
|
|
$
|
0.05
|
|
|
BELDEN INC.
|
OPERATING SEGMENT INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Broadcast
Solutions
|
|
|
Enterprise
Connectivity
|
|
|
Industrial
Connectivity
|
|
|
Industrial
IT
|
|
|
Network Security
Solutions
|
|
|
Total
Segments
|
|
|
|
|
(In thousands, except percentages)
|
For the three months ended April 3, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenues
|
|
|
|
$
|
171,272
|
|
|
|
$
|
135,892
|
|
|
|
$
|
141,091
|
|
|
|
$
|
53,882
|
|
|
|
$
|
41,663
|
|
|
|
$
|
543,800
|
|
Segment EBITDA
|
|
|
|
|
23,267
|
|
|
|
|
23,736
|
|
|
|
|
22,987
|
|
|
|
|
8,609
|
|
|
|
|
11,467
|
|
|
|
|
90,066
|
|
Segment EBITDA margin
|
|
|
|
|
13.6
|
%
|
|
|
|
17.5
|
%
|
|
|
|
16.3
|
%
|
|
|
|
16.0
|
%
|
|
|
|
27.5
|
%
|
|
|
|
16.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
|
|
|
3,962
|
|
|
|
|
3,389
|
|
|
|
|
2,718
|
|
|
|
|
524
|
|
|
|
|
1,070
|
|
|
|
|
11,663
|
|
Amortization of intangibles
|
|
|
|
|
12,931
|
|
|
|
|
429
|
|
|
|
|
591
|
|
|
|
|
1,510
|
|
|
|
|
10,071
|
|
|
|
|
25,532
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
|
|
4,378
|
|
|
|
|
500
|
|
|
|
|
865
|
|
|
|
|
2,665
|
|
|
|
|
-
|
|
|
|
|
8,408
|
|
Purchase accounting effects of acquisitions
|
|
|
|
|
195
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
195
|
|
Deferred gross profit adjustments
|
|
|
|
|
614
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
1,689
|
|
|
|
|
2,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended March 29, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenues
|
|
|
|
$
|
176,500
|
|
|
|
$
|
141,781
|
|
|
|
$
|
152,972
|
|
|
|
$
|
61,073
|
|
|
|
$
|
37,125
|
|
|
|
$
|
569,451
|
|
Segment EBITDA
|
|
|
|
|
23,127
|
|
|
|
|
20,009
|
|
|
|
|
24,173
|
|
|
|
|
11,087
|
|
|
|
|
9,901
|
|
|
|
|
88,297
|
|
Segment EBITDA margin
|
|
|
|
|
13.1
|
%
|
|
|
|
14.1
|
%
|
|
|
|
15.8
|
%
|
|
|
|
18.2
|
%
|
|
|
|
26.7
|
%
|
|
|
|
15.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
|
|
|
3,973
|
|
|
|
|
3,214
|
|
|
|
|
2,851
|
|
|
|
|
559
|
|
|
|
|
944
|
|
|
|
|
11,541
|
|
Amortization of intangibles
|
|
|
|
|
12,426
|
|
|
|
|
432
|
|
|
|
|
823
|
|
|
|
|
1,410
|
|
|
|
|
11,413
|
|
|
|
|
26,504
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
|
|
11,527
|
|
|
|
|
568
|
|
|
|
|
1,773
|
|
|
|
|
(52
|
)
|
|
|
|
667
|
|
|
|
|
14,483
|
|
Purchase accounting effects of acquisitions
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
267
|
|
|
|
|
-
|
|
|
|
|
9,155
|
|
|
|
|
9,422
|
|
Deferred gross profit adjustments
|
|
|
|
|
3,294
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
18,364
|
|
|
|
|
21,658
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 28, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenues
|
|
|
|
$
|
174,923
|
|
|
|
$
|
161,827
|
|
|
|
$
|
160,875
|
|
|
|
$
|
61,270
|
|
|
|
$
|
39,618
|
|
|
|
$
|
598,513
|
|
Segment EBITDA
|
|
|
|
|
22,878
|
|
|
|
|
29,792
|
|
|
|
|
28,680
|
|
|
|
|
10,178
|
|
|
|
|
8,772
|
|
|
|
|
100,300
|
|
Segment EBITDA margin
|
|
|
|
|
13.1
|
%
|
|
|
|
18.4
|
%
|
|
|
|
17.8
|
%
|
|
|
|
16.6
|
%
|
|
|
|
22.1
|
%
|
|
|
|
16.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
|
|
|
4,140
|
|
|
|
|
3,180
|
|
|
|
|
2,869
|
|
|
|
|
584
|
|
|
|
|
919
|
|
|
|
|
11,692
|
|
Amortization of intangibles
|
|
|
|
|
12,595
|
|
|
|
|
429
|
|
|
|
|
807
|
|
|
|
|
1,479
|
|
|
|
|
10,607
|
|
|
|
|
25,917
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
|
|
3,283
|
|
|
|
|
83
|
|
|
|
|
1,163
|
|
|
|
|
-
|
|
|
|
|
378
|
|
|
|
|
4,907
|
|
Deferred gross profit adjustments
|
|
|
|
|
(924
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
14,364
|
|
|
|
|
13,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended September 27,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenues
|
|
|
|
$
|
186,722
|
|
|
|
$
|
155,148
|
|
|
|
$
|
147,702
|
|
|
|
$
|
59,184
|
|
|
|
$
|
41,359
|
|
|
|
$
|
590,115
|
|
Segment EBITDA
|
|
|
|
|
27,369
|
|
|
|
|
25,705
|
|
|
|
|
23,225
|
|
|
|
|
10,466
|
|
|
|
|
11,240
|
|
|
|
|
98,005
|
|
Segment EBITDA margin
|
|
|
|
|
14.7
|
%
|
|
|
|
16.6
|
%
|
|
|
|
15.7
|
%
|
|
|
|
17.7
|
%
|
|
|
|
27.2
|
%
|
|
|
|
16.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
|
|
|
4,027
|
|
|
|
|
3,156
|
|
|
|
|
2,810
|
|
|
|
|
570
|
|
|
|
|
1,255
|
|
|
|
|
11,818
|
|
Amortization of intangibles
|
|
|
|
|
12,354
|
|
|
|
|
429
|
|
|
|
|
799
|
|
|
|
|
1,480
|
|
|
|
|
10,607
|
|
|
|
|
25,669
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
|
|
13,722
|
|
|
|
|
192
|
|
|
|
|
118
|
|
|
|
|
54
|
|
|
|
|
57
|
|
|
|
|
14,143
|
|
Deferred gross profit adjustments
|
|
|
|
|
419
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
10,909
|
|
|
|
|
11,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenues
|
|
|
|
$
|
201,825
|
|
|
|
$
|
147,154
|
|
|
|
$
|
141,801
|
|
|
|
$
|
62,776
|
|
|
|
$
|
48,948
|
|
|
|
$
|
602,504
|
|
Segment EBITDA
|
|
|
|
|
40,264
|
|
|
|
|
24,708
|
|
|
|
|
23,863
|
|
|
|
|
11,522
|
|
|
|
|
14,707
|
|
|
|
|
115,064
|
|
Segment EBITDA margin
|
|
|
|
|
19.9
|
%
|
|
|
|
16.8
|
%
|
|
|
|
16.8
|
%
|
|
|
|
18.4
|
%
|
|
|
|
30.0
|
%
|
|
|
|
19.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
|
|
|
4,052
|
|
|
|
|
3,144
|
|
|
|
|
2,705
|
|
|
|
|
580
|
|
|
|
|
1,019
|
|
|
|
|
11,500
|
|
Amortization of intangibles
|
|
|
|
|
12,439
|
|
|
|
|
428
|
|
|
|
|
725
|
|
|
|
|
1,490
|
|
|
|
|
10,619
|
|
|
|
|
25,701
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
|
|
10,535
|
|
|
|
|
(109
|
)
|
|
|
|
3,174
|
|
|
|
|
167
|
|
|
|
|
(130
|
)
|
|
|
|
13,637
|
|
Purchase accounting effects of acquisitions
|
|
|
|
|
114
|
|
|
|
|
70
|
|
|
|
|
67
|
|
|
|
|
32
|
|
|
|
|
42
|
|
|
|
|
325
|
|
Deferred gross profit adjustments
|
|
|
|
|
(343
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
6,793
|
|
|
|
|
6,450
|
|
|
BELDEN INC.
|
OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
April 3, 2016
|
|
|
March 29, 2015
|
|
|
June 28, 2015
|
|
|
September 27, 2015
|
|
|
December 31, 2015
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Segment Revenues
|
|
|
|
$
|
543,800
|
|
|
|
$
|
569,451
|
|
|
|
$
|
598,513
|
|
|
|
$
|
590,115
|
|
|
|
$
|
602,504
|
|
Deferred revenue adjustments
|
|
|
|
|
(2,303
|
)
|
|
|
|
(22,494
|
)
|
|
|
|
(12,758
|
)
|
|
|
|
(10,849
|
)
|
|
|
|
(5,260
|
)
|
Consolidated Revenues
|
|
|
|
$
|
541,497
|
|
|
|
$
|
546,957
|
|
|
|
$
|
585,755
|
|
|
|
$
|
579,266
|
|
|
|
$
|
597,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Segment EBITDA
|
|
|
|
$
|
90,066
|
|
|
|
$
|
88,297
|
|
|
|
$
|
100,300
|
|
|
|
$
|
98,005
|
|
|
|
$
|
115,064
|
|
Income (loss) from equity method investment
|
|
|
|
|
(170
|
)
|
|
|
|
768
|
|
|
|
|
343
|
|
|
|
|
348
|
|
|
|
|
311
|
|
Eliminations
|
|
|
|
|
(831
|
)
|
|
|
|
(559
|
)
|
|
|
|
(544
|
)
|
|
|
|
(893
|
)
|
|
|
|
(752
|
)
|
Consolidated Adjusted EBITDA (1)
|
|
|
|
|
89,065
|
|
|
|
|
88,506
|
|
|
|
|
100,099
|
|
|
|
|
97,460
|
|
|
|
|
114,623
|
|
Depreciation expense
|
|
|
|
|
(11,663
|
)
|
|
|
|
(11,541
|
)
|
|
|
|
(11,692
|
)
|
|
|
|
(11,818
|
)
|
|
|
|
(11,500
|
)
|
Amortization of intangibles
|
|
|
|
|
(25,532
|
)
|
|
|
|
(26,504
|
)
|
|
|
|
(25,917
|
)
|
|
|
|
(25,669
|
)
|
|
|
|
(25,701
|
)
|
Severance, restructuring, and acquisition integration costs
|
|
|
|
|
(8,408
|
)
|
|
|
|
(14,483
|
)
|
|
|
|
(4,907
|
)
|
|
|
|
(14,143
|
)
|
|
|
|
(13,637
|
)
|
Deferred gross profit adjustments
|
|
|
|
|
(2,303
|
)
|
|
|
|
(21,658
|
)
|
|
|
|
(13,440
|
)
|
|
|
|
(11,328
|
)
|
|
|
|
(6,450
|
)
|
Purchase accounting effects related to acquisitions
|
|
|
|
|
(195
|
)
|
|
|
|
(9,422
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(325
|
)
|
Consolidated operating income
|
|
|
|
|
40,964
|
|
|
|
|
4,898
|
|
|
|
|
44,143
|
|
|
|
|
34,502
|
|
|
|
|
57,010
|
|
Interest expense, net
|
|
|
|
|
(24,396
|
)
|
|
|
|
(23,846
|
)
|
|
|
|
(24,769
|
)
|
|
|
|
(25,416
|
)
|
|
|
|
(26,582
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated income (loss) before taxes
|
|
|
|
$
|
16,568
|
|
|
|
$
|
(18,948
|
)
|
|
|
$
|
19,374
|
|
|
|
$
|
9,086
|
|
|
|
$
|
30,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Consolidated Adjusted EBITDA is a non-GAAP measure. See
Reconciliation of Non-GAAP Measures for additional information.
|
|
BELDEN INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
April 3, 2016
|
|
|
December 31, 2015
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
(In thousands)
|
ASSETS
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
146,264
|
|
|
|
$
|
216,751
|
|
Receivables, net
|
|
|
|
|
346,210
|
|
|
|
|
387,386
|
|
Inventories, net
|
|
|
|
|
215,947
|
|
|
|
|
195,942
|
|
Other current assets
|
|
|
|
|
44,489
|
|
|
|
|
37,079
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
|
752,910
|
|
|
|
|
837,158
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, less accumulated depreciation
|
|
|
|
|
316,435
|
|
|
|
|
310,629
|
|
Goodwill
|
|
|
|
|
1,406,058
|
|
|
|
|
1,385,115
|
|
Intangible assets, less accumulated amortization
|
|
|
|
|
642,939
|
|
|
|
|
655,871
|
|
Deferred income taxes
|
|
|
|
|
36,481
|
|
|
|
|
34,295
|
|
Other long-lived assets
|
|
|
|
|
68,772
|
|
|
|
|
67,534
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,223,595
|
|
|
|
$
|
3,290,602
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
208,921
|
|
|
|
$
|
223,514
|
|
Accrued liabilities
|
|
|
|
|
281,392
|
|
|
|
|
323,249
|
|
Current maturities of long-term debt
|
|
|
|
|
2,500
|
|
|
|
|
2,500
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
|
492,813
|
|
|
|
|
549,263
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
|
1,689,664
|
|
|
|
|
1,725,282
|
|
Postretirement benefits
|
|
|
|
|
107,054
|
|
|
|
|
105,230
|
|
Deferred income taxes
|
|
|
|
|
49,341
|
|
|
|
|
46,034
|
|
Other long-term liabilities
|
|
|
|
|
45,416
|
|
|
|
|
39,270
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
503
|
|
|
|
|
503
|
|
Additional paid-in capital
|
|
|
|
|
606,591
|
|
|
|
|
605,660
|
|
Retained earnings
|
|
|
|
|
694,119
|
|
|
|
|
679,716
|
|
Accumulated other comprehensive loss
|
|
|
|
|
(60,705
|
)
|
|
|
|
(58,987
|
)
|
Treasury stock
|
|
|
|
|
(402,524
|
)
|
|
|
|
(402,793
|
)
|
Total Belden stockholders' equity
|
|
|
|
|
837,984
|
|
|
|
|
824,099
|
|
Noncontrolling interest
|
|
|
|
|
1,323
|
|
|
|
|
1,424
|
|
Total stockholders' equity
|
|
|
|
|
839,307
|
|
|
|
|
825,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,223,595
|
|
|
|
$
|
3,290,602
|
|
|
BELDEN INC.
|
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
April 3, 2016
|
|
|
March 29, 2015
|
|
|
|
|
(In thousands)
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
16,425
|
|
|
|
$
|
(19,636
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by
(used for) operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
37,195
|
|
|
|
|
38,045
|
|
Share-based compensation
|
|
|
|
|
4,100
|
|
|
|
|
5,006
|
|
Tax deficiency (benefit) related to share-based compensation
|
|
|
|
|
67
|
|
|
|
|
(3,690
|
)
|
Changes in operating assets and liabilities, net of the effects of
currency exchange rate changes and acquired businesses:
|
|
|
|
|
|
|
|
Receivables
|
|
|
|
|
45,098
|
|
|
|
|
10,341
|
|
Inventories
|
|
|
|
|
(16,625
|
)
|
|
|
|
(18,211
|
)
|
Accounts payable
|
|
|
|
|
(17,187
|
)
|
|
|
|
(34,562
|
)
|
Accrued liabilities
|
|
|
|
|
(52,607
|
)
|
|
|
|
(23,965
|
)
|
Accrued taxes
|
|
|
|
|
(6,395
|
)
|
|
|
|
(50
|
)
|
Other assets
|
|
|
|
|
(1,226
|
)
|
|
|
|
(2,406
|
)
|
Other liabilities
|
|
|
|
|
3,834
|
|
|
|
|
923
|
|
Net cash provided by (used for) operating activities
|
|
|
|
|
12,679
|
|
|
|
|
(48,205
|
)
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Cash used to acquire businesses, net of cash acquired
|
|
|
|
|
(15,348
|
)
|
|
|
|
(695,345
|
)
|
Capital expenditures
|
|
|
|
|
(13,431
|
)
|
|
|
|
(15,456
|
)
|
Proceeds from disposal of tangible assets
|
|
|
|
|
10
|
|
|
|
|
6
|
|
Net cash used for investing activities
|
|
|
|
|
(28,769
|
)
|
|
|
|
(710,795
|
)
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Payments under borrowing arrangements
|
|
|
|
|
(50,625
|
)
|
|
|
|
-
|
|
Withholding tax payments for share-based payment awards, net of
proceeds from the exercise of stock options
|
|
|
|
|
(2,833
|
)
|
|
|
|
(10,842
|
)
|
Cash dividends paid
|
|
|
|
|
(2,101
|
)
|
|
|
|
(2,140
|
)
|
Tax benefit (deficiency) related to share-based compensation
|
|
|
|
|
(67
|
)
|
|
|
|
3,690
|
|
Borrowings under credit arrangements
|
|
|
|
|
-
|
|
|
|
|
200,000
|
|
Debt issuance costs paid
|
|
|
|
|
-
|
|
|
|
|
(622
|
)
|
Net cash provided by (used for) financing activities
|
|
|
|
|
(55,626
|
)
|
|
|
|
190,086
|
|
|
|
|
|
|
|
|
|
Effect of foreign currency exchange rate changes on cash and cash
equivalents
|
|
|
|
|
1,229
|
|
|
|
|
(5,548
|
)
|
|
|
|
|
|
|
|
|
Decrease in cash and cash equivalents
|
|
|
|
|
(70,487
|
)
|
|
|
|
(574,462
|
)
|
Cash and cash equivalents, beginning of period
|
|
|
|
|
216,751
|
|
|
|
|
741,162
|
|
Cash and cash equivalents, end of period
|
|
|
|
$
|
146,264
|
|
|
|
$
|
166,700
|
|
|
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;
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
|
|
|
|
|
April 3, 2016
|
|
|
March 29, 2015
|
|
|
December 31, 2015
|
|
|
|
|
(In thousands, except percentages and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
GAAP revenues
|
|
|
|
$
|
541,497
|
|
|
|
$
|
546,957
|
|
|
|
$
|
597,244
|
|
Deferred revenue adjustments
|
|
|
|
|
2,303
|
|
|
|
|
22,494
|
|
|
|
|
5,260
|
|
Adjusted revenues
|
|
|
|
$
|
543,800
|
|
|
|
$
|
569,451
|
|
|
|
$
|
602,504
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
|
|
$
|
225,034
|
|
|
|
$
|
207,649
|
|
|
|
$
|
250,117
|
|
Deferred gross profit adjustments
|
|
|
|
|
2,303
|
|
|
|
|
21,658
|
|
|
|
|
6,450
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
|
|
2,298
|
|
|
|
|
1,466
|
|
|
|
|
3,074
|
|
Purchase accounting effects related to acquisitions
|
|
|
|
|
195
|
|
|
|
|
267
|
|
|
|
|
-
|
|
Adjusted gross profit
|
|
|
|
$
|
229,830
|
|
|
|
$
|
231,040
|
|
|
|
$
|
259,641
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit margin
|
|
|
|
|
41.6
|
%
|
|
|
|
38.0
|
%
|
|
|
|
41.9
|
%
|
Adjusted gross profit margin
|
|
|
|
|
42.3
|
%
|
|
|
|
40.6
|
%
|
|
|
|
43.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income
|
|
|
|
$
|
40,964
|
|
|
|
$
|
4,898
|
|
|
|
$
|
57,010
|
|
Amortization of intangible assets
|
|
|
|
|
25,532
|
|
|
|
|
26,504
|
|
|
|
|
25,701
|
|
Severance, restructuring, and acquisition integration costs
|
|
|
|
|
8,408
|
|
|
|
|
14,483
|
|
|
|
|
13,637
|
|
Deferred gross profit adjustments
|
|
|
|
|
2,303
|
|
|
|
|
21,658
|
|
|
|
|
6,450
|
|
Accelerated depreciation
|
|
|
|
|
206
|
|
|
|
|
140
|
|
|
|
|
81
|
|
Purchase accounting effects related to acquisitions
|
|
|
|
|
195
|
|
|
|
|
9,422
|
|
|
|
|
325
|
|
Total operating income adjustments
|
|
|
|
|
36,644
|
|
|
|
|
72,207
|
|
|
|
|
46,194
|
|
Depreciation expense
|
|
|
|
|
11,457
|
|
|
|
|
11,401
|
|
|
|
|
11,419
|
|
Adjusted EBITDA
|
|
|
|
$
|
89,065
|
|
|
|
$
|
88,506
|
|
|
|
$
|
114,623
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income margin
|
|
|
|
|
7.6
|
%
|
|
|
|
0.9
|
%
|
|
|
|
9.5
|
%
|
Adjusted EBITDA margin
|
|
|
|
|
16.4
|
%
|
|
|
|
15.5
|
%
|
|
|
|
19.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
|
|
$
|
16,425
|
|
|
|
$
|
(19,636
|
)
|
|
|
$
|
49,656
|
|
Operating income adjustments from above
|
|
|
|
|
36,644
|
|
|
|
|
72,207
|
|
|
|
|
46,194
|
|
Tax effect of adjustments
|
|
|
|
|
(10,494
|
)
|
|
|
|
(9,309
|
)
|
|
|
|
(26,558
|
)
|
Adjusted net income
|
|
|
|
$
|
42,575
|
|
|
|
$
|
43,262
|
|
|
|
$
|
69,292
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
|
|
$
|
16,425
|
|
|
|
$
|
(19,636
|
)
|
|
|
$
|
49,656
|
|
Less: Net loss attributable to noncontrolling interest
|
|
|
|
|
(99
|
)
|
|
|
|
-
|
|
|
|
|
(24
|
)
|
GAAP net income (loss) attributable to Belden stockholders
|
|
|
|
$
|
16,524
|
|
|
|
$
|
(19,636
|
)
|
|
|
$
|
49,680
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
|
|
|
|
$
|
42,575
|
|
|
|
$
|
43,262
|
|
|
|
$
|
69,292
|
|
Less: Net loss attributable to noncontrolling interest
|
|
|
|
|
(99
|
)
|
|
|
|
-
|
|
|
|
|
(24
|
)
|
Less: Amortization expense attributable to noncontrolling interest,
net of tax
|
|
|
|
|
16
|
|
|
|
|
-
|
|
|
|
|
5
|
|
Adjusted net income attributable to Belden stockholders
|
|
|
|
$
|
42,658
|
|
|
|
$
|
43,262
|
|
|
|
$
|
69,311
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income (loss) per diluted share attributable to Belden
stockholders
|
|
|
|
$
|
0.39
|
|
|
|
$
|
(0.46
|
)
|
|
|
$
|
1.17
|
|
Adjusted income per diluted share attributable to Belden stockholders
|
|
|
|
$
|
1.01
|
|
|
|
$
|
1.00
|
|
|
|
$
|
1.63
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted weighted average shares
|
|
|
|
|
42,440
|
|
|
|
|
42,535
|
|
|
|
|
42,482
|
|
Adjustment for anti-dilutive shares that are dilutive under adjusted
measures
|
|
|
|
|
-
|
|
|
|
|
677
|
|
|
|
|
-
|
|
Adjusted diluted weighted average shares
|
|
|
|
|
42,440
|
|
|
|
|
43,212
|
|
|
|
|
42,482
|
|
|
BELDEN INC.
|
RECONCILIATION OF NON-GAAP MEASURES
|
FREE CASH FLOW
|
(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
|
|
|
Three Months Ended
|
|
|
|
|
April 3, 2016
|
|
|
March 29, 2015
|
|
|
|
|
(In thousands)
|
GAAP net cash provided by (used for) operating activities
|
|
|
|
$
|
12,679
|
|
|
|
$
|
(48,205
|
)
|
Capital expenditures, net of proceeds from the disposal of
tangible assets
|
|
|
|
|
(13,421
|
)
|
|
|
|
(15,450
|
)
|
Non-GAAP free cash flow
|
|
|
|
$
|
(742
|
)
|
|
|
$
|
(63,655
|
)
|
|
BELDEN INC.
|
RECONCILIATION OF NON-GAAP MEASURES
|
2016 REVENUES AND EARNINGS GUIDANCE
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
Three Months Ended
|
|
|
|
|
December 31, 2016
|
|
|
July 3, 2016
|
Adjusted revenues
|
|
|
|
$2.320 - $2.370 billion
|
|
|
$570 - $590 million
|
Deferred revenue adjustments
|
|
|
|
($7 million)
|
|
|
($2 million)
|
GAAP revenues
|
|
|
|
$2.313 - $2.363 billion
|
|
|
$568 - $588 million
|
|
|
|
|
|
|
|
|
Adjusted income per diluted share attributable to Belden stockholders
|
|
|
|
$5.15 - $5.45
|
|
|
$1.20 - $1.30
|
Amortization of intangible assets
|
|
|
|
($1.64)
|
|
|
($0.43)
|
Severance, restructuring, and acquisition integration costs
|
|
|
|
($0.56)
|
|
|
($0.12)
|
Deferred gross profit adjustments
|
|
|
|
($0.11)
|
|
|
($0.03)
|
GAAP income per diluted share attributable to Belden stockholders
|
|
|
|
$2.84 - $3.14
|
|
|
$0.62 - $0.72
|
|
|
Our guidance for revenues and income per diluted share attributable
to Belden 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 in the 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.
|
|
Earnings per Share (EPS)
All references to EPS within this earnings release refer to income per
diluted share attributable to Belden stockholders.
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 Web site at http://investor.belden.com.
Forward-Looking Statements
This release contains, and statements made by us concerning the release
may contain, forward-looking statements, including our expectations for
the second quarter and full-year 2016. 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 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 execute and realize the expected benefits from strategic
initiatives (including revenue growth, cost control, and productivity
improvement programs); the inability to successfully complete and
integrate acquisitions in furtherance of the Company's strategic plan;
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; risks related to the use of
open source software; the inability to retain senior management and key
employees; disruptions in the Company's information systems including
due to cyber-attacks; variability in the Company's quarterly and annual
effective tax rates; 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; the impact of regulatory requirements and other legal
compliance issues; 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, 2015, filed with the
SEC on February 25, 2016. 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.
BDC-E
View source version on businesswire.com: http://www.businesswire.com/news/home/20160504005590/en/
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