Belden Reports Results for Second Quarter 2019

ST. LOUIS--()--Belden Inc. (NYSE: BDC), a global leader in high quality, end-to-end signal transmission solutions for mission-critical applications, today reported fiscal second quarter 2019 results for the period ended June 30, 2019.

Second Quarter 2019

Revenues for the quarter totaled $637.5 million, decreasing $31.1 million, or 4.7%, compared to $668.6 million in the second quarter 2018. Net income was $42.2 million, an increase of $13.3 million, or 46.2%, from the prior-year period. Net income as a percentage of revenue was 6.6% compared to 4.3% in the prior-year period. EPS totaled $0.84 compared to $0.49 in the second quarter 2018.

Adjusted revenues for the quarter also totaled $637.5 million, decreasing $33.9 million, or 5.1%, compared to adjusted revenues of $671.4 million in the second quarter 2018. Adjusted EBITDA margin in the second quarter was 15.9%, compared to 18.3% in the year-ago period. Adjusted EPS was $1.39 compared to $1.52 in the second quarter 2018. 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, “Revenues were consistent with our expectations across most of our portfolio in the second quarter, but demand trends softened in some of our key Industrial markets. Cash flow generation continues to improve, and I am pleased to report 24% growth in cash flow from operations.”

Outlook

We now expect a more challenging demand environment in our Industrial markets in the second half, so we are reducing our revenue and EPS expectations for the remainder of the year. Despite this near-term outlook revision, we remain extremely well positioned to benefit from a number of long-term secular trends,” said Mr. Stroup.

The Company expects third quarter 2019 revenues to be $620 - $645 million. For the full year ending December 31, 2019, the Company now expects revenues to be $2.485 - $2.535 billion, compared to prior guidance of $2.520 - $2.595 billion.

The Company expects third quarter 2019 GAAP EPS to be $0.84 - $1.04. For the full year ending December 31, 2019, the Company now expects GAAP EPS of $3.44 - $3.84, compared to prior guidance of $3.86 - $4.36.

The Company expects third quarter 2019 adjusted EPS to be $1.32 - $1.52. For the full year ending December 31, 2019, the Company now expects adjusted EPS of $5.38 - $5.78, compared to prior guidance of $5.65 - $6.15.

Earnings Conference Call

Management will host a conference call today at 8:30 am ET to discuss results of the quarter. The listen-only audio of the conference call will be broadcast live via the Internet at http://investor.belden.com. The dial-in number for participants in the U.S. is 888-599-8686; the dial-in number for participants outside the U.S. is 720-543-0302. 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

 

Six Months Ended

 

 

June 30, 2019

 

July 1, 2018

 

June 30, 2019

 

July 1, 2018

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except per share data)

Revenues

 

$

637,530

 

 

$

668,639

 

 

$

1,224,705

 

 

$

1,274,204

 

Cost of sales

 

(396,507

)

 

(411,043

)

 

(758,954

)

 

(786,014

)

Gross profit

 

241,023

 

 

257,596

 

 

465,751

 

 

488,190

 

Selling, general and administrative expenses

 

(122,482

)

 

(138,842

)

 

(245,270

)

 

(263,714

)

Research and development expenses

 

(35,034

)

 

(37,209

)

 

(69,188

)

 

(74,310

)

Amortization of intangibles

 

(22,368

)

 

(25,039

)

 

(45,709

)

 

(49,457

)

Operating income

 

61,139

 

 

56,506

 

 

105,584

 

 

100,709

 

Interest expense, net

 

(14,168

)

 

(15,088

)

 

(28,361

)

 

(32,066

)

Non-operating pension benefit (cost)

 

481

 

 

(257

)

 

1,028

 

 

(532

)

Loss on debt extinguishment

 

 

 

(3,030

)

 

 

 

(22,990

)

Income before taxes

 

47,452

 

 

38,131

 

 

78,251

 

 

45,121

 

Income tax expense

 

(5,162

)

 

(9,339

)

 

(10,783

)

 

(13,759

)

Net income

 

42,290

 

 

28,792

 

 

67,468

 

 

31,362

 

Less: Net income (loss) attributable to noncontrolling interests

 

90

 

 

(77

)

 

66

 

 

(125

)

Net income attributable to Belden

 

42,200

 

 

28,869

 

 

67,402

 

 

31,487

 

Less: Preferred stock dividends

 

8,733

 

 

8,733

 

 

17,466

 

 

17,466

 

Net income attributable to Belden common stockholders

 

$

33,467

 

 

$

20,136

 

 

$

49,936

 

 

$

14,021

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares and equivalents:

 

 

 

 

 

 

 

 

Basic

 

39,389

 

 

40,735

 

 

39,405

 

 

41,184

 

Diluted

 

39,611

 

 

40,974

 

 

39,635

 

 

41,492

 

 

 

 

 

 

 

 

 

 

Basic income per share attributable to Belden common stockholders:

 

$

0.85

 

 

$

0.49

 

 

$

1.27

 

 

$

0.34

 

 

 

 

 

 

 

 

 

 

Diluted income per share attributable to Belden common stockholders:

 

$

0.84

 

 

$

0.49

 

 

$

1.26

 

 

$

0.34

 

 

 

 

 

 

 

 

 

 

Common stock dividends declared per share

 

$

0.05

 

 

$

0.05

 

 

$

0.10

 

 

$

0.10

 

 

BELDEN INC.

OPERATING SEGMENT INFORMATION

(Unaudited)

 

 

 

Enterprise

Solutions

 

Industrial

Solutions

 

Total

Segments

 

 

 

 

 

 

 

 

(In thousands, except percentages)

 

 

 

 

 

 

 

For the three months ended June 30, 2019

 

 

 

 

 

 

Segment Revenues

 

$

369,862

 

 

$

267,668

 

 

$

637,530

 

Segment EBITDA

 

53,483

 

 

47,458

 

 

100,941

 

Segment EBITDA margin

 

14.5

%

 

17.7

%

 

15.8

%

Depreciation expense

 

7,540

 

 

4,761

 

 

12,301

 

Amortization of intangibles

 

9,320

 

 

13,048

 

 

22,368

 

Amortization of software development intangible assets

 

1,044

 

 

28

 

 

1,072

 

Severance, restructuring, and acquisition integration costs

 

3,082

 

 

 

 

3,082

 

Purchase accounting effects of acquisitions

 

718

 

 

 

 

718

 

 

 

 

 

 

 

 

For the three months ended July 1, 2018

 

 

 

 

 

 

Segment Revenues

 

$

399,695

 

 

$

271,746

 

 

$

671,441

 

Segment EBITDA

 

70,281

 

 

53,225

 

 

123,506

 

Segment EBITDA margin

 

17.6

%

 

19.6

%

 

18.4

%

Depreciation expense

 

7,153

 

 

4,873

 

 

12,026

 

Amortization of intangibles

 

11,809

 

 

13,230

 

 

25,039

 

Amortization of software development intangible assets

 

488

 

 

 

 

488

 

Severance, restructuring, and acquisition integration costs

 

22,887

 

 

2,041

 

 

24,928

 

Purchase accounting effects of acquisitions

 

1,036

 

 

 

 

1,036

 

Deferred revenue adjustments

 

2,802

 

 

 

 

2,802

 

 

 

 

 

 

 

 

For the six months ended June 30, 2019

 

 

 

 

 

 

Segment Revenues

 

$

696,389

 

 

$

528,316

 

 

$

1,224,705

 

Segment EBITDA

 

93,041

 

 

94,917

 

 

187,958

 

Segment EBITDA margin

 

13.4

%

 

18.0

%

 

15.3

%

Depreciation expense

 

15,273

 

 

9,748

 

 

25,021

 

Amortization of intangibles

 

19,490

 

 

26,219

 

 

45,709

 

Amortization of software development intangible assets

 

1,958

 

 

51

 

 

2,009

 

Severance, restructuring, and acquisition integration costs

 

6,860

 

 

 

 

6,860

 

Purchase accounting effects of acquisitions

 

2,031

 

 

 

 

2,031

 

 

 

 

 

 

 

 

For the six months ended July 1, 2018

 

 

 

 

 

 

Segment Revenues

 

$

750,685

 

 

$

528,179

 

 

$

1,278,864

 

Segment EBITDA

 

127,733

 

 

99,651

 

 

227,384

 

Segment EBITDA margin

 

17.0

%

 

18.9

%

 

17.8

%

Depreciation expense

 

14,373

 

 

9,518

 

 

23,891

 

Amortization of intangibles

 

22,979

 

 

26,478

 

 

49,457

 

Amortization of software development intangible assets

 

724

 

 

 

 

724

 

Severance, restructuring, and acquisition integration costs

 

37,421

 

 

7,901

 

 

45,322

 

Purchase accounting effects of acquisitions

 

1,538

 

 

 

 

1,538

 

Deferred revenue adjustments

 

4,660

 

 

 

 

4,660

  

 

BELDEN INC.

OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2019

 

July 1, 2018

 

June 30, 2019

 

July 1, 2018

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

 

 

 

Total Segment Revenues

 

$

637,530

 

 

$

671,441

 

 

$

1,224,705

 

 

$

1,278,864

 

Deferred revenue adjustments

 

 

 

(2,802

)

 

 

 

(4,660

)

Consolidated Revenues

 

$

637,530

 

 

$

668,639

 

 

$

1,224,705

 

 

$

1,274,204

 

 

 

 

 

 

 

 

 

 

Total Segment EBITDA

 

$

100,941

 

 

$

123,506

 

 

$

187,958

 

 

$

227,384

 

Eliminations

 

(261

)

 

(681

)

 

(744

)

 

(989

)

Total non-operating pension benefit (cost)

 

481

 

 

(257

)

 

1,028

 

 

(532

)

Consolidated Adjusted EBITDA (1)

 

101,161

 

 

122,568

 

 

188,242

 

 

225,863

 

Amortization of intangibles

 

(22,368

)

 

(25,039

)

 

(45,709

)

 

(49,457

)

Interest expense, net

 

(14,168

)

 

(15,088

)

 

(28,361

)

 

(32,066

)

Depreciation expense

 

(12,301

)

 

(12,026

)

 

(25,021

)

 

(23,891

)

Severance, restructuring, and acquisition integration costs

 

(3,082

)

 

(24,928

)

 

(6,860

)

 

(45,322

)

Purchase accounting effects related to acquisitions

 

(718

)

 

(1,036

)

 

(2,031

)

 

(1,538

)

Amortization of software development intangible assets

 

(1,072

)

 

(488

)

 

(2,009

)

 

(724

)

Loss on debt extinguishment

 

 

 

(3,030

)

 

 

 

(22,990

)

Deferred revenue adjustments

 

 

 

(2,802

)

 

 

 

(4,660

)

Loss on sale of assets

 

 

 

 

 

 

 

(94

)

Consolidated income before taxes

 

$

47,452

 

 

$

38,131

 

 

$

78,251

 

 

$

45,121

 

 (1)

Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation of Non-GAAP Measures for additional information.

 

BELDEN INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

June 30, 2019

 

December 31, 2018

 

 

(Unaudited)

 

 

 

 

(In thousands)

ASSETS

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

295,243

 

 

$

420,610

 

Receivables, net

 

451,487

 

 

465,939

 

Inventories, net

 

309,711

 

 

316,418

 

Other current assets

 

60,017

 

 

55,757

 

Total current assets

 

1,116,458

 

 

1,258,724

 

Property, plant and equipment, less accumulated depreciation

 

383,067

 

 

365,970

 

Operating lease right-of-use assets

 

84,099

 

 

 

Goodwill

 

1,607,848

 

 

1,557,653

 

Intangible assets, less accumulated amortization

 

506,706

 

 

511,093

 

Deferred income taxes

 

90,112

 

 

56,018

 

Other long-lived assets

 

34,690

 

 

29,863

 

 

 

$

3,822,980

 

 

$

3,779,321

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

 

Accounts payable

 

$

266,897

 

 

$

352,646

 

Accrued liabilities

 

323,124

 

 

364,276

 

Total current liabilities

 

590,021

 

 

716,922

 

Long-term debt

 

1,457,571

 

 

1,463,200

 

Postretirement benefits

 

131,023

 

 

132,791

 

Deferred income taxes

 

79,224

 

 

39,943

 

Long-term operating lease liabilities

 

77,679

 

 

 

Other long-term liabilities

 

53,929

 

 

38,877

 

Stockholders’ equity:

 

 

 

 

Preferred stock

 

1

 

 

1

 

Common stock

 

503

 

 

503

 

Additional paid-in capital

 

1,143,494

 

 

1,139,395

 

Retained earnings

 

967,970

 

 

922,000

 

Accumulated other comprehensive loss

 

(62,591

)

 

(74,907

)

Treasury stock

 

(621,167

)

 

(599,845

)

Total Belden stockholders’ equity

 

1,428,210

 

 

1,387,147

 

Noncontrolling interests

 

5,323

 

 

441

 

Total stockholders’ equity

 

1,433,533

 

 

1,387,588

 

 

 

$

3,822,980

 

 

$

3,779,321

 

 

BELDEN INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(Unaudited)

 

 

 

Six Months Ended

 

 

June 30, 2019

 

July 1, 2018

 

 

 

 

 

 

 

(In thousands)

Cash flows from operating activities:

 

 

 

 

Net income

 

$

67,468

 

 

31,362

 

Adjustments to reconcile net income to net cash provided by (used for) operating activities:

 

 

 

 

Depreciation and amortization

 

72,739

 

 

74,072

 

Share-based compensation

 

7,594

 

 

7,868

 

Loss on debt extinguishment

 

 

 

22,990

 

Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses:

 

 

 

 

Receivables

 

20,329

 

 

(12,370

)

Inventories

 

17,351

 

 

(14,486

)

Accounts payable

 

(91,542

)

 

(84,689

)

Accrued liabilities

 

(59,410

)

 

(30,351

)

Income taxes

 

(12,361

)

 

(4,142

)

Other assets

 

5,092

 

 

(17,275

)

Other liabilities

 

(5,615

)

 

(2,341

)

Net cash provided by (used for) operating activities

 

21,645

 

 

(29,362

)

Cash flows from investing activities:

 

 

 

 

Capital expenditures

 

(50,769

)

 

(39,493

)

Cash used to acquire businesses, net of cash acquired

 

(50,517

)

 

(84,580

)

Proceeds from disposal of tangible assets

 

19

 

 

1,517

 

Proceeds from disposal of business

 

 

 

40,171

 

Net cash used for investing activities

 

(101,267

)

 

(82,385

)

Cash flows from financing activities:

 

 

 

 

Payments under share repurchase program

 

(22,815

)

 

(100,000

)

Cash dividends paid

 

(21,448

)

 

(22,034

)

Withholding tax payments for share-based payment awards

 

(2,002

)

 

(1,579

)

Other

 

(173

)

 

 

Payments under borrowing arrangements

 

 

 

(484,757

)

Debt issuance costs paid

 

 

 

(7,469

)

Redemption of stockholders' rights agreement

 

 

 

(411

)

Borrowings under credit arrangements

 

 

 

431,270

 

Net cash used for financing activities

 

(46,438

)

 

(184,980

)

Effect of foreign currency exchange rate changes on cash and cash equivalents

 

693

 

 

(2,932

)

Decrease in cash and cash equivalents

 

(125,367

)

 

(299,659

)

Cash and cash equivalents, beginning of period

 

420,610

 

 

561,108

 

Cash and cash equivalents, end of period

 

$

295,243

 

 

$

261,449

 

 

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

 

Six Months Ended

 

 

June 30, 2019

 

July 1, 2018

 

June 30, 2019

 

July 1, 2018

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except percentages and per share amounts)

GAAP revenues

 

$

637,530

 

 

$

668,639

 

 

$

1,224,705

 

 

$

1,274,204

 

Deferred revenue adjustments

 

 

 

2,802

 

 

 

 

4,660

 

Adjusted revenues

 

$

637,530

 

 

$

671,441

 

 

$

1,224,705

 

 

$

1,278,864

 

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

241,023

 

 

$

257,596

 

 

$

465,751

 

 

$

488,190

 

Severance, restructuring, and acquisition integration costs

 

423

 

 

7,231

 

 

985

 

 

16,662

 

Deferred revenue adjustments

 

 

 

2,802

 

 

 

 

4,660

 

Purchase accounting effects related to acquisitions

 

718

 

 

773

 

 

718

 

 

1,275

 

Amortization of software development intangible assets

 

1,072

 

 

488

 

 

2,009

 

 

724

 

Adjusted gross profit

 

$

243,236

 

 

$

268,890

 

 

$

469,463

 

 

$

511,511

 

 

 

 

 

 

 

 

 

 

GAAP gross profit margin

 

37.8

%

 

38.5

%

 

38.0

%

 

38.3

%

Adjusted gross profit margin

 

38.2

%

 

40.0

%

 

38.3

%

 

40.0

%

 

 

 

 

 

 

 

 

 

GAAP selling, general and administrative expenses

 

$

(122,482

)

 

$

(138,842

)

 

$

(245,270

)

 

$

(263,714

)

Severance, restructuring, and acquisition integration costs

 

2,335

 

 

14,544

 

 

5,111

 

 

23,946

 

Purchase accounting effects related to acquisitions

 

 

 

263

 

 

1,313

 

 

263

 

Loss on sale of assets

 

 

 

 

 

 

 

94

 

Adjusted selling, general and administrative expenses

 

$

(120,147

)

 

$

(124,035

)

 

$

(238,846

)

 

$

(239,411

)

 

 

 

 

 

 

 

 

 

GAAP research and development expenses

 

$

(35,034

)

 

$

(37,209

)

 

$

(69,188

)

 

$

(74,310

)

Severance, restructuring, and acquisition integration costs

 

326

 

 

3,153

 

 

763

 

 

4,714

 

Adjusted research and development expenses

 

$

(34,708

)

 

$

(34,056

)

 

$

(68,425

)

 

$

(69,596

)

 

 

 

 

 

 

 

 

 

GAAP net income attributable to Belden

 

$

42,200

 

 

$

28,869

 

 

$

67,402

 

 

$

31,487

 

Interest expense, net

 

14,168

 

 

15,088

 

 

28,361

 

 

32,066

 

Income tax expense

 

5,162

 

 

9,339

 

 

10,783

 

 

13,759

 

Loss on debt extinguishment

 

 

 

3,030

 

 

 

 

22,990

 

Non-controlling interests

 

90

 

 

(77

)

 

66

 

 

(125

)

Total non-operating adjustments

 

19,420

 

 

27,380

 

 

39,210

 

 

68,690

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

22,368

 

 

25,039

 

 

45,709

 

 

49,457

 

Severance, restructuring, and acquisition integration costs

 

3,082

 

 

24,928

 

 

6,860

 

 

45,322

 

Purchase accounting effects related to acquisitions

 

718

 

 

1,036

 

 

2,031

 

 

1,538

 

Amortization of software development intangible assets

 

1,072

 

 

488

 

 

2,009

 

 

724

 

Deferred revenue adjustments

 

 

 

2,802

 

 

 

 

4,660

 

Loss on sale of assets

 

 

 

 

 

 

 

94

 

Total operating income adjustments

 

27,240

 

 

54,293

 

 

56,609

 

 

101,795

 

Depreciation expense

 

12,301

 

 

12,026

 

 

25,021

 

 

23,891

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

101,161

 

 

$

122,568

 

 

$

188,242

 

 

$

225,863

 

 

 

 

 

 

 

 

 

 

GAAP net income margin

 

6.6

%

 

4.3

%

 

5.5

%

 

2.5

%

Adjusted EBITDA margin

 

15.9

%

 

18.3

%

 

15.4

%

 

17.7

%

 

 

 

 

 

 

 

 

 

GAAP net income attributable to Belden

 

$

42,200

 

 

$

28,869

 

 

$

67,402

 

 

$

31,487

 

Operating income adjustments from above

 

27,240

 

 

54,293

 

 

56,609

 

 

101,795

 

Loss on debt extinguishment

 

 

 

3,030

 

 

 

 

22,990

 

Tax effect of adjustments above

 

(5,053

)

 

(13,577

)

 

(11,472

)

 

(25,689

)

Impact of Tax Cuts and Jobs Act enactment

 

 

 

 

 

 

 

(473

)

Amortization expense attributable to noncontrolling interest, net of tax

 

 

 

(16

)

 

 

 

(33

)

Adjusted net income attributable to Belden

 

$

64,387

 

 

$

72,599

 

 

$

112,539

 

 

$

130,077

 

 

 

 

 

 

 

 

 

 

GAAP net income attributable to Belden

 

$

42,200

 

 

$

28,869

 

 

$

67,402

 

 

$

31,487

 

Less: Preferred stock dividends

 

8,733

 

 

8,733

 

 

17,466

 

 

17,466

 

GAAP net income attributable to Belden common stockholders

 

$

33,467

 

 

$

20,136

 

 

$

49,936

 

 

$

14,021

 

 

 

 

 

 

 

 

 

 

Adjusted net income attributable to Belden

 

$

64,387

 

 

$

72,599

 

 

$

112,539

 

 

$

130,077

 

Less: Preferred stock dividends

 

 

 

 

 

17,466

 

 

 

Adjusted net income attributable to Belden common stockholders

 

$

64,387

 

 

$

72,599

 

 

$

95,073

 

 

$

130,077

 

 

 

 

 

 

 

 

 

 

GAAP income per diluted share attributable to Belden common stockholders

 

$

0.84

 

 

$

0.49

 

 

$

1.26

 

 

$

0.34

 

Adjusted income per diluted share attributable to Belden common stockholders

 

$

1.39

 

 

$

1.52

 

 

$

2.40

 

 

$

2.69

 

 

 

 

 

 

 

 

 

 

GAAP diluted weighted average shares

 

39,611

 

 

40,974

 

 

39,635

 

 

41,492

 

Adjustment for assumed conversion of preferred stock into common stock

 

6,857

 

 

6,857

 

 

 

 

6,857

 

Adjusted diluted weighted average shares

 

46,468

 

 

47,831

 

 

39,635

 

 

48,349

 

BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)

We define free cash flow, which is a non-GAAP financial measure, as net cash from operating activities adjusted for capital expenditures net of the proceeds from the disposal of tangible assets. We believe free cash flow provides useful information to investors regarding our ability to generate cash from business operations that is available for acquisitions and other investments, service of debt principal, dividends and share repurchases. We use free cash flow, as defined, as one financial measure to monitor and evaluate performance and liquidity. Non-GAAP financial measures should be considered only in conjunction with financial measures reported according to accounting principles generally accepted in the United States. Our definition of free cash flow may differ from definitions used by other companies.

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2019

 

July 1, 2018

 

June 30, 2019

 

July 1, 2018

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

GAAP net cash provided by (used for) operating activities

 

$

67,705

 

 

$

54,498

 

 

$

21,645

 

 

$

(29,362

)

Capital expenditures, net of proceeds from the disposal of tangible assets

 

(27,165

)

 

(22,101

)

 

(50,750

)

 

(37,976

)

Non-GAAP free cash flow

 

$

40,540

 

 

$

32,397

 

 

$

(29,105

)

 

$

(67,338

)

 

BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
2019 EARNINGS GUIDANCE

 

 

 

Year Ended
December 31, 2019

 

Three Months Ended
September 29, 2019

 

 

 

 

 

Adjusted income per diluted share attributable to Belden common stockholders

 

$5.38 - $5.78

 

$1.32 - $1.52

Amortization of intangible assets

 

(1.69)

 

(0.41)

Severance, restructuring, and acquisition integration costs

 

(0.20)

 

(0.06)

Purchase accounting effects of acquisitions

 

(0.05)

 

(0.01)

GAAP income per diluted share attributable to Belden common stockholders

 

$3.44 - $3.84

 

$0.84 - $1.04

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 second quarter and full-year 2019. 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 inability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); the inability to achieve our strategic priorities in emerging markets; the increased influence of chief information officers and similar high-level executives; the presence of substitute products in the marketplace; the inability of the Company to develop and introduce new products and competitive responses to our products; the increased prevalence of cloud computing; the inability to successfully complete and integrate acquisitions in furtherance of the Company’s strategic plan; the impact of changes in global tariffs and trade agreements; difficulty in forecasting revenue due to the unpredictable timing of orders related to customer projects; foreign and domestic political, economic and other uncertainties, including changes in currency exchange rates; changes in tax laws and variability in the Company’s quarterly and annual effective tax rates; the impact of a challenging global economy or a downturn in served markets; the competitiveness of the global markets in which we operate; volatility in credit and foreign exchange markets; the cost and availability of raw materials including copper, plastic compounds, electronic components, and other materials; the inability to obtain components in sufficient quantities on commercially reasonable terms; 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; disruption of, or changes in, the Company’s key distribution channels; 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; the impact of regulatory requirements and other legal compliance issues; 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 quarter ended December 31, 2018, filed with the SEC on February 20, 2019. 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 and enterprise 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.

Contacts

Belden Investor Relations
314-854-8054
Investor.Relations@Belden.com

Release Summary

Belden Reports Results for Second Quarter 2019

Contacts

Belden Investor Relations
314-854-8054
Investor.Relations@Belden.com