[May 10, 2016]

Black Box Corporation Reports Fourth Quarter of Fiscal 2016 Results; Declares an Increase to Its Dividend for the Sixth Consecutive Year

Black Box Corporation (NASDAQ:BBOX), a leading technology solutions provider dedicated to helping customers design, build, manage and secure their IT infrastructure, today reported results for the fourth quarter of Fiscal 2016 and twelve-month period ended March 31, 2016.

4Q16 Results

• Revenues were $224.1 million, down 9% from $245.1 million for the same period last year and up 1% from $222.5 million in the sequential period.
• Benefit for income taxes was $2.6 million, compared to $0.4 million for the same period last year and compared to a provision for income taxes of $0.1 million in the sequential period.
• Operating net income* was $2.1 million, down 71% from $7.1 million for the same period last year and down 64% from $5.7 million in the sequential period.
• Operating EPS* was $0.14, down 70% from $0.46 for the same period last year and down 63% from $0.37 in the sequential period.
• Net loss was $47.7 million, which included $34.9 million ($34.8 million net of tax) of goodwill and intangible asset impairment loss, compared to net income of $2.9 million for the same period last year and compared to a net income of $5.7 million in the sequential period.
• Diluted loss per share was $3.13, compared to Diluted earnings per share of $0.19 for the same period last year and compared to Diluted earnings per share of $0.37 in the sequential period.
• Cash flow provided by operations was $22.3 million, down 40% from $37.0 million for the same period last year and down 23% from $28.8 million in the sequential period.
• We provided $6.0 million to our shareholders by repurchasing $4.3 million of common stock and paying $1.7 million in dividends.

FY16 Results

• Revenues were $912.7 million, down 8% from $992.4 million for the same period last year.
• Benefit from income taxes was $22.0 million, compared to provision for income taxes of $8.2 million for the same period last year.
• Operating net income* was $17.0 million, down 34% from $25.9 million for the same period last year.
• Operating EPS* was $1.11, down 34% from $1.67 for the same period last year.
• Net loss was $171.1 million, which included $192.2 million ($167.6 million net of tax) of goodwill and intangible asset impairment loss, compared to net income of $15.3 million for the same period last year.
• Diluted loss per share was $11.18, compared to diluted earnings per share of $0.99 for the same period last year.
• Cash flow provided by operations was $37.2 million, down 20% from $46.5 million for the same period last year.
• We provided $13.9 million to our shareholders by repurchasing $7.2 million of common stock and paying $6.6 million in dividends.

* See the information under the caption "Non-GAAP Financial Measures" below for a discussion regarding the usefulness of the non-GAAP financial measures contained in this release, definitions of those non-GAAP financial measures and reconciliations to their most directly comparable GAAP financial measures.

Dividend Increase

The Company also announced that its Board of Directors has declared a 9% increase to its quarterly cash dividend resulting in a payout of $0.12 per share of its Common Stock. The $0.12 per share dividend was declared on all outstanding shares of Black Box's Common Stock and will be payable on July 16, 2016 to stockholders of record at the close of business on July 1, 2016. Black Box will pay the dividend through its transfer agent, American Stock Transfer & Trust Company, LLC, 6201 15th Avenue, Brooklyn, NY 11219. This is the sixth consecutive year that the Company has increased its dividend.

New Credit Facility

The Company also announced that it has refinanced its senior credit facility with a new, five year, $200,000,000 senior secured credit facility with a group of lenders led by PNC Bank, National Association, as Administrative Agent, and Bank of America, N.A., as Syndication Agent. This credit facility includes a provision to increase the commitments to $250,000,000.

Commenting on the fourth quarter of Fiscal 2016 results, E.C. Sykes, President and Chief Executive Officer, said, "I am pleased to join Black Box and look forward to working with the team to improve the Company's position in the market and its financial results. As can be seen from our 4Q16 results, our profitability and predictability remain challenged and this is getting immediate attention. While profitability was lower than target, the team was able to exceed our revenue target and produce strong cash flows. Our dividend and new credit facility are positive events. Our quarterly dividend is being raised 9% to $0.12. And our new credit facility will provide us the flexibility to address our cost structure over the coming quarters as we first look to stabilize the business and then to build a pattern of sustainable profitable revenue growth."

Mr. Sykes continued, "Over the past 2 ½ months, I have been listening to our customers, partners, and team members. I am personally excited by the opportunities that lie before us. This Company has the talent and market position to consistently deliver valuable, high quality network solutions. As we complete the transformational efforts that are in process, we will be in position to capitalize on those capabilities."

Earnings Conference Call

The Company will conduct a conference call beginning at 5:00 p.m. Eastern Time today, May 10, 2016. E.C. Sykes, President and Chief Executive Officer, will host the call. To listen only to the live webcast, access the event at http://investor.blackbox.com/events.cfm. To participate in the teleconference, dial 877-303-3145 (USA) or 253-237-1194 (International) approximately 15 minutes prior to the starting time and ask to be connected to conference 93159574. A replay of the audio webcast will be available at http://investor.blackbox.com/events.cfm for a limited period of time.

About Black Box

Black Box is a leading technology solutions provider dedicated to helping customers design, build, manage and secure their IT infrastructure. Black Box delivers high-value products and services through its global presence and 3,631 team members. To learn more, visit the Black Box Web site at http://www.blackbox.com.

Black Box^® and the Double Diamond logo are registered trademarks of BB Technologies, Inc.

Any forward-looking statements contained in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and speak only as of the date of this release. You can identify these forward-looking statements by the fact that they use words such as "should," "anticipate," "estimate," "approximate," "expect," "target," "may," "will," "project," "intend," "plan," "believe" and other words of similar meaning and expression in connection with any discussion of future operating or financial performance. One can also identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. Forward-looking statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. Although it is not possible to predict or identify all risk factors, they may include levels of business activity and operating expenses, expenses relating to corporate compliance requirements, cash flows, global economic and business conditions, successful integration of acquisitions, the timing and costs of restructuring programs and other initiatives, successful marketing of the Company's product and services offerings, successful implementation of the Company's integration initiatives, successful implementation of the Company's government contracting programs, competition, changes in foreign, political and economic conditions, fluctuating foreign currencies compared to the U.S. dollar, rapid changes in technologies, client preferences, the Company's arrangements with suppliers of voice equipment and technology, government budgetary constraints and various other matters, many of which are beyond the Company's control. Additional risk factors are included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2015. We can give no assurance that any goal, plan or target set forth in forward-looking statements will be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments and caution you not to unduly rely on any such forward-looking statements.

Non-GAAP Financial Measures

As a supplement to United States Generally Accepted Accounting Principles ("GAAP"), the Company provides non-GAAP financial measures such as operating income before provision for income taxes ("EBIT"), operating net income, operating earnings per share ("EPS"), revenues excluding foreign currency, adjusted operating income, Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), Operating EBITDA and free cash flow to illustrate the Company's operational performance. These non-GAAP financial measures are not prepared in accordance with GAAP, are not reported by all of the Company's competitors and may not be directly comparable to similarly-titled measures of the Company's competitors due to potential differences in the exact method of calculation. However, each of the amounts included in the calculation of non-GAAP financial measures are computed in accordance with GAAP. See below for reconciliations to the most directly comparable GAAP financial measures.

Management uses these non-GAAP financial measures (a) to evaluate the Company's historical and prospective financial performance as well as its performance relative to its competitors, (b) to set internal sales targets and associated operating budgets, (c) to allocate resources and (d) to measure operational profitability. Management uses similar non-GAAP measures as an important factor in determining variable compensation for Management and its team members.

Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP financial measures. The Company's non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.

Operating EBIT, operating net income and operating EPS

Management believes that operating EBIT, defined by the Company as net income (loss) plus provision (benefit) for income taxes and adjustments, operating net income, defined by the Company as operating EBIT less operational income taxes, and operating EPS, defined as operating net income divided by weighted average common shares outstanding (diluted), provide investors additional important information to enable them to assess, in the way Management assesses, the Company's current and future operations. Adjustments include intangibles amortization, the change in fair value of the interest-rate swaps, goodwill and intangible asset impairment loss, Accounts receivable impairment loss (primarily due to a non-recurring write-down of Accounts receivable for one large project)), Inventory impairment loss (due to a non-recurring write-down to the lower of cost or market as a result of a product line discontinuation and excess inventory given current revenue levels), each of which are non-cash charges, and restructuring expense and CEO transition costs (non-recurring costs related to the transition of the Chief Executive Officer ("CEO") position), each of which is a cash charge.

A reconciliation of Net income (loss) to operating EBIT and Operating net income is presented below:

(1) The effective tax rate used to determine operational income taxes is based on the Company's projected full-year ordinary income tax expense and the projected full-year impact of certain discreet tax items.

A reconciliation of Diluted earnings (loss) per share to operating EPS is presented below:

* EPS impact is the result of excluding the provision for income taxes and the adjustments and utilizing an operational effective tax rate.

Revenues excluding foreign currency

Management is presented with and reviews revenues which exclude foreign currency and enable an investor to assess, in the way Management assesses, revenues from its core operations.

Information on quarterly revenues excluding foreign currency compared to the same period last year is presented below:

Information on quarterly revenues excluding foreign currency compared to the sequential quarter is presented below:

Information on year-to-date revenues excluding foreign currency compared to the same period last year is presented below:

Segment Information

Management is presented with and reviews Revenues, Gross profit, Operating income (loss) and Adjusted operating income by segment. Management believes that Adjusted operating income, defined by the Company as Operating income (loss) plus adjustments, provides investors additional important information to enable them to assess, in the way Management assesses, the Company's current and future operations. Adjustments include intangibles amortization, asset impairment loss, Accounts receivable impairment loss, Inventory impairment loss, CEO transition costs and restructuring expense.

A reconciliation of Operating income (loss) to Adjusted operating income (by segment) is presented below:

EBITDA and Operating EBITDA

Management believes that EBITDA, defined as Net income (loss) plus provision (benefit) for income taxes, interest, depreciation and amortization, is a widely-accepted measure of profitability that may be used to measure the Company's ability to service its debt. Operating EBITDA, defined as EBITDA plus stock compensation expense, Accounts Receivable impairment loss, Inventory impairment loss and Goodwill impairment loss may also be used to measure the Company's ability to service its debt.

A reconciliation of Net income (loss) to EBITDA and Operating EBITDA is presented below:

Free cash flow

Management believes that free cash flow, defined by the Company as Net cash provided by (used for) operating activities less net capital expenditures, plus or minus Foreign currency exchange impact on cash, plus Proceeds from stock option exercises, is an important measurement of liquidity as it represents the total cash available to the Company.

A reconciliation of Net cash provided by (used for) operating activities to free cash flow is presented below:

Significant Balance Sheet ratios and Other Information

Information on certain balance sheet ratios, backlog and headcount is presented below:

* Leverage ratio is based on Adjusted EBITDA as defined under the applicable credit facility.

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