Delaware | 001-12561 | 36-3601505 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition. | 3 | ||
Item 9.01 Financial Statements and Exhibits. | 3 | ||
SIGNATURES | 3 | ||
EXHIBIT INDEX | |||
Exhibit 99.1 News Release dated November 2, 2016 |
99.1 | Company news release dated November 2, 2016, titled “Belden Reports Strong Results for Third Quarter 2016” |
BELDEN INC. | ||||||
Date: November 2, 2016 | By: | /s/ Brian E. Anderson | ||||
Brian E. Anderson | ||||||
Senior Vice President-Legal, General | ||||||
Counsel and Corporate Secretary |
![]() | ||||
1 North Brentwood Boulevard | Phone: 314.854.8000 | |||
15th Floor | Fax: 314.854.8003 | |||
St. Louis, Missouri 63105 | ||||
www.Belden.com |
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Revenues | $ | 601,109 | $ | 579,266 | $ | 1,744,237 | $ | 1,711,978 | ||||||||
Cost of sales | (355,147 | ) | (353,135 | ) | (1,025,027 | ) | (1,043,922 | ) | ||||||||
Gross profit | 245,962 | 226,131 | 719,210 | 668,056 | ||||||||||||
Selling, general and administrative expenses | (126,662 | ) | (127,792 | ) | (372,125 | ) | (395,424 | ) | ||||||||
Research and development | (33,512 | ) | (38,168 | ) | (106,297 | ) | (110,999 | ) | ||||||||
Amortization of intangibles | (23,808 | ) | (25,669 | ) | (75,603 | ) | (78,090 | ) | ||||||||
Operating income | 61,980 | 34,502 | 165,185 | 83,543 | ||||||||||||
Interest expense, net | (23,513 | ) | (25,416 | ) | (71,958 | ) | (74,031 | ) | ||||||||
Income from continuing operations before taxes | 38,467 | 9,086 | 93,227 | 9,512 | ||||||||||||
Income tax benefit (expense) | (2,902 | ) | 5,725 | 513 | 7,340 | |||||||||||
Income from continuing operations | 35,565 | 14,811 | 93,740 | 16,852 | ||||||||||||
Loss from discontinued operations, net of tax | — | (242 | ) | — | (242 | ) | ||||||||||
Loss from disposal of discontinued operations, net of tax | — | — | — | (86 | ) | |||||||||||
Net income | 35,565 | 14,569 | 93,740 | 16,524 | ||||||||||||
Less: Net loss attributable to noncontrolling interest | (88 | ) | — | (286 | ) | — | ||||||||||
Net income attributable to Belden | 35,653 | 14,569 | 94,026 | 16,524 | ||||||||||||
Less: Preferred stock dividends | 6,695 | — | 6,695 | — | ||||||||||||
Net income attributable to Belden common stockholders | $ | 28,958 | $ | 14,569 | $ | 87,331 | $ | 16,524 | ||||||||
Weighted average number of common shares and equivalents: | ||||||||||||||||
Basic | 42,126 | 42,417 | 42,073 | 42,536 | ||||||||||||
Diluted | 42,601 | 42,908 | 42,532 | 43,117 | ||||||||||||
Basic income (loss) per share attributable to Belden common stockholders: | ||||||||||||||||
Continuing operations | $ | 0.69 | $ | 0.35 | $ | 2.08 | $ | 0.40 | ||||||||
Discontinued operations | — | (0.01 | ) | — | (0.01 | ) | ||||||||||
Disposal of discontinued operations | — | — | — | — | ||||||||||||
Net income | $ | 0.69 | $ | 0.34 | $ | 2.08 | $ | 0.39 | ||||||||
Diluted income (loss) per share attributable to Belden common stockholders: | ||||||||||||||||
Continuing operations | $ | 0.68 | $ | 0.35 | $ | 2.05 | $ | 0.39 | ||||||||
Discontinued operations | — | (0.01 | ) | — | (0.01 | ) | ||||||||||
Disposal of discontinued operations | — | — | — | — | ||||||||||||
Net income | $ | 0.68 | $ | 0.34 | $ | 2.05 | $ | 0.38 | ||||||||
Common stock dividends declared per share | $ | 0.05 | $ | 0.05 | $ | 0.15 | $ | 0.15 |
Broadcast Solutions | Enterprise Connectivity Solutions | Industrial Connectivity Solutions | Industrial IT Solutions | Network Security Solutions | Total Segments | |||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||
For the three months ended October 2, 2016 | ||||||||||||||||||||||||
Segment Revenues | $ | 196,173 | $ | 156,658 | $ | 149,847 | $ | 60,168 | $ | 39,622 | $ | 602,468 | ||||||||||||
Segment EBITDA | 36,545 | 27,294 | 23,649 | 12,771 | 11,677 | 111,936 | ||||||||||||||||||
Segment EBITDA margin | 18.6 | % | 17.4 | % | 15.8 | % | 21.2 | % | 29.5 | % | 18.6 | % | ||||||||||||
Depreciation expense | 4,063 | 3,210 | 2,738 | 565 | 1,027 | 11,603 | ||||||||||||||||||
Amortization of intangibles | 10,955 | 431 | 604 | 1,501 | 10,317 | 23,808 | ||||||||||||||||||
Severance, restructuring, and acquisition integration costs | 174 | 5,573 | 4,746 | 2,302 | — | 12,795 | ||||||||||||||||||
Deferred gross profit adjustments | 283 | — | — | — | 1,076 | 1,359 | ||||||||||||||||||
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 nine months ended October 2, 2016 | ||||||||||||||||||||||||
Segment Revenues | $ | 560,966 | $ | 452,951 | $ | 438,746 | $ | 176,560 | $ | 120,426 | $ | 1,749,649 | ||||||||||||
Segment EBITDA | 89,317 | 80,605 | 73,700 | 34,056 | 32,659 | 310,337 | ||||||||||||||||||
Segment EBITDA margin | 15.9 | % | 17.8 | % | 16.8 | % | 19.3 | % | 27.1 | % | 17.7 | % | ||||||||||||
Depreciation expense | 12,086 | 10,028 | 8,165 | 1,749 | 3,225 | 35,253 | ||||||||||||||||||
Amortization of intangibles | 37,306 | 1,292 | 1,796 | 4,517 | 30,692 | 75,603 | ||||||||||||||||||
Severance, restructuring, and acquisition integration costs | 5,871 | 7,280 | 7,982 | 5,910 | 29 | 27,072 | ||||||||||||||||||
Purchase accounting effects of acquisitions | 195 | — | — | — | — | 195 | ||||||||||||||||||
Deferred gross profit adjustments | 1,391 | — | — | — | 4,021 | 5,412 | ||||||||||||||||||
For the nine months ended September 27, 2015 | ||||||||||||||||||||||||
Segment Revenues | $ | 538,145 | $ | 458,756 | $ | 461,549 | $ | 181,527 | $ | 118,102 | $ | 1,758,079 | ||||||||||||
Segment EBITDA | 73,374 | 75,506 | 76,078 | 31,731 | 29,913 | 286,602 | ||||||||||||||||||
Segment EBITDA margin | 13.6 | % | 16.5 | % | 16.5 | % | 17.5 | % | 25.3 | % | 16.3 | % | ||||||||||||
Depreciation expense | 12,140 | 9,550 | 8,530 | 1,713 | 3,118 | 35,051 | ||||||||||||||||||
Amortization of intangibles | 37,375 | 1,290 | 2,429 | 4,369 | 32,627 | 78,090 | ||||||||||||||||||
Severance, restructuring, and acquisition integration costs | 28,532 | 843 | 3,054 | 2 | 1,102 | 33,533 | ||||||||||||||||||
Purchase accounting effects of acquisitions | — | — | 267 | — | 9,155 | 9,422 | ||||||||||||||||||
Deferred gross profit adjustments | 2,789 | — | — | — | 43,637 | 46,426 |
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | |||||||||||||
(In thousands) | ||||||||||||||||
Total Segment Revenues | $ | 602,468 | $ | 590,115 | $ | 1,749,649 | $ | 1,758,079 | ||||||||
Deferred revenue adjustments | (1,359 | ) | (10,849 | ) | (5,412 | ) | (46,101 | ) | ||||||||
Consolidated Revenues | $ | 601,109 | $ | 579,266 | $ | 1,744,237 | $ | 1,711,978 | ||||||||
Total Segment EBITDA | $ | 111,936 | $ | 98,005 | $ | 310,337 | $ | 286,602 | ||||||||
Income from equity method investment | 586 | 348 | 1,077 | 1,459 | ||||||||||||
Eliminations | (977 | ) | (893 | ) | (2,694 | ) | (1,996 | ) | ||||||||
Consolidated Adjusted EBITDA (1) | 111,545 | 97,460 | 308,720 | 286,065 | ||||||||||||
Amortization of intangibles | (23,808 | ) | (25,669 | ) | (75,603 | ) | (78,090 | ) | ||||||||
Deferred gross profit adjustments | (1,359 | ) | (11,328 | ) | (5,412 | ) | (46,426 | ) | ||||||||
Severance, restructuring, and acquisition integration costs | (12,795 | ) | (14,143 | ) | (27,072 | ) | (33,533 | ) | ||||||||
Depreciation expense | (11,603 | ) | (11,818 | ) | (35,253 | ) | (35,051 | ) | ||||||||
Purchase accounting effects related to acquisitions | — | — | (195 | ) | (9,422 | ) | ||||||||||
Consolidated operating income | 61,980 | 34,502 | 165,185 | 83,543 | ||||||||||||
Interest expense, net | (23,513 | ) | (25,416 | ) | (71,958 | ) | (74,031 | ) | ||||||||
Consolidated income from continuing operations before taxes | $ | 38,467 | $ | 9,086 | $ | 93,227 | $ | 9,512 |
(1) | Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation of Non-GAAP Measures for additional information. |
October 2, 2016 | December 31, 2015 | |||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 748,305 | $ | 216,751 | ||||
Receivables, net | 400,528 | 387,386 | ||||||
Inventories, net | 193,500 | 195,942 | ||||||
Other current assets | 55,345 | 37,079 | ||||||
Total current assets | 1,397,678 | 837,158 | ||||||
Property, plant and equipment, less accumulated depreciation | 323,110 | 310,629 | ||||||
Goodwill | 1,399,847 | 1,385,115 | ||||||
Intangible assets, less accumulated amortization | 590,785 | 655,871 | ||||||
Deferred income taxes | 30,596 | 34,295 | ||||||
Other long-lived assets | 69,947 | 67,534 | ||||||
$ | 3,811,963 | $ | 3,290,602 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 220,827 | $ | 223,514 | ||||
Accrued liabilities | 294,209 | 323,249 | ||||||
Current maturities of long-term debt | 2,500 | 2,500 | ||||||
Total current liabilities | 517,536 | 549,263 | ||||||
Long-term debt | 1,690,932 | 1,725,282 | ||||||
Postretirement benefits | 106,779 | 105,230 | ||||||
Deferred income taxes | 45,381 | 46,034 | ||||||
Other long-term liabilities | 38,283 | 39,270 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock | 1 | — | ||||||
Common stock | 503 | 503 | ||||||
Additional paid-in capital | 1,114,348 | 605,660 | ||||||
Retained earnings | 760,688 | 679,716 | ||||||
Accumulated other comprehensive loss | (62,876 | ) | (58,987 | ) | ||||
Treasury stock | (400,718 | ) | (402,793 | ) | ||||
Total Belden stockholders’ equity | 1,411,946 | 824,099 | ||||||
Noncontrolling interest | 1,106 | 1,424 | ||||||
Total stockholders’ equity | 1,413,052 | 825,523 | ||||||
$ | 3,811,963 | $ | 3,290,602 |
Nine Months Ended | ||||||||
October 2, 2016 | September 27, 2015 | |||||||
(In thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 93,740 | $ | 16,524 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 110,857 | 113,141 | ||||||
Share-based compensation | 13,943 | 13,814 | ||||||
Tax benefit related to share-based compensation | (623 | ) | (5,064 | ) | ||||
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses: | ||||||||
Receivables | (9,843 | ) | (6,532 | ) | ||||
Inventories | 5,626 | 7,979 | ||||||
Accounts payable | (3,889 | ) | (55,973 | ) | ||||
Accrued liabilities | (43,594 | ) | 29,354 | |||||
Accrued taxes | (16,752 | ) | (23,884 | ) | ||||
Other assets | 2,798 | 1,935 | ||||||
Other liabilities | (5,457 | ) | 687 | |||||
Net cash provided by operating activities | 146,806 | 91,981 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (36,057 | ) | (39,106 | ) | ||||
Cash used to acquire businesses, net of cash acquired | (17,848 | ) | (695,345 | ) | ||||
Proceeds from disposal of tangible assets | 282 | 145 | ||||||
Proceeds from disposable of business | — | 3,527 | ||||||
Other | (971 | ) | — | |||||
Net cash used for investing activities | (54,594 | ) | (730,779 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of preferred stock, net | 501,498 | — | ||||||
Tax benefit related to share-based compensation | 623 | 5,064 | ||||||
Borrowings under credit arrangements | — | 200,000 | ||||||
Payments under borrowing arrangements | (51,875 | ) | (1,250 | ) | ||||
Dividends paid on common stock | (6,307 | ) | (6,386 | ) | ||||
Withholding tax payments for share-based payment awards, net of proceeds from the exercise of stock options | (5,302 | ) | (11,517 | ) | ||||
Debt issuance costs paid | — | (643 | ) | |||||
Payments under share repurchase program | — | (39,053 | ) | |||||
Net cash provided by financing activities | 438,637 | 146,215 | ||||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | 705 | (6,682 | ) | |||||
Increase (decrease) in cash and cash equivalents | 531,554 | (499,265 | ) | |||||
Cash and cash equivalents, beginning of period | 216,751 | 741,162 | ||||||
Cash and cash equivalents, end of period | $ | 748,305 | $ | 241,897 |
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | |||||||||||||
(In thousands, except percentages and per share amounts) | ||||||||||||||||
GAAP revenues | $ | 601,109 | $ | 579,266 | $ | 1,744,237 | $ | 1,711,978 | ||||||||
Deferred revenue adjustments | 1,359 | 10,849 | 5,412 | 46,101 | ||||||||||||
Adjusted revenues | $ | 602,468 | $ | 590,115 | $ | 1,749,649 | $ | 1,758,079 | ||||||||
GAAP gross profit | $ | 245,962 | $ | 226,131 | $ | 719,210 | $ | 668,056 | ||||||||
Severance, restructuring, and integration costs | 2,897 | 3,166 | 6,815 | 6,340 | ||||||||||||
Deferred gross profit adjustments | 1,359 | 11,328 | 5,412 | 46,426 | ||||||||||||
Accelerated depreciation | 206 | 75 | 618 | 175 | ||||||||||||
Purchase accounting effects related to acquisitions | — | — | 195 | 267 | ||||||||||||
Adjusted gross profit | $ | 250,424 | $ | 240,700 | $ | 732,250 | $ | 721,264 | ||||||||
GAAP gross profit margin | 40.9 | % | 39.0 | % | 41.2 | % | 39.0 | % | ||||||||
Adjusted gross profit margin | 41.6 | % | 40.8 | % | 41.9 | % | 41.0 | % | ||||||||
GAAP net income attributable to Belden | $ | 35,653 | $ | 14,569 | $ | 94,026 | $ | 16,524 | ||||||||
Interest expense, net | 23,513 | 25,416 | 71,958 | 74,031 | ||||||||||||
Income tax expense (benefit) | 2,902 | (5,725 | ) | (513 | ) | (7,340 | ) | |||||||||
Loss from discontinued operations | — | 242 | — | 242 | ||||||||||||
Loss from disposal of discontinued operations | — | — | — | 86 |
Noncontrolling interest | (88 | ) | — | (286 | ) | — | ||||||||||
Total non-operating adjustments | $ | 26,327 | $ | 19,933 | $ | 71,159 | $ | 67,019 | ||||||||
Amortization of intangible assets | 23,808 | 25,669 | 75,603 | 78,090 | ||||||||||||
Severance, restructuring, and integration costs | 12,795 | 14,143 | 27,072 | 33,533 | ||||||||||||
Deferred gross profit adjustments | 1,359 | 11,328 | 5,412 | 46,426 | ||||||||||||
Accelerated depreciation | 222 | 125 | 634 | 307 | ||||||||||||
Purchase accounting effects related to acquisitions | — | — | 195 | 9,422 | ||||||||||||
Total operating income adjustments | 38,184 | 51,265 | 108,916 | 167,778 | ||||||||||||
Depreciation expense | 11,381 | 11,693 | 34,619 | 34,744 | ||||||||||||
Adjusted EBITDA | $ | 111,545 | $ | 97,460 | $ | 308,720 | $ | 286,065 | ||||||||
GAAP net income margin | 5.9 | % | 2.5 | % | 5.4 | % | 1.0 | % | ||||||||
Adjusted EBITDA margin | 18.5 | % | 16.5 | % | 17.6 | % | 16.3 | % | ||||||||
GAAP income from continuing operations | $ | 35,565 | $ | 14,811 | $ | 93,740 | $ | 16,852 | ||||||||
Operating income adjustments from above | 38,184 | 51,265 | 108,916 | 167,778 | ||||||||||||
Tax effect of adjustments | (12,313 | ) | (17,142 | ) | (33,227 | ) | (40,219 | ) | ||||||||
Adjusted income from continuing operations | $ | 61,436 | $ | 48,934 | $ | 169,429 | $ | 144,411 | ||||||||
GAAP income from continuing operations | $ | 35,565 | $ | 14,811 | $ | 93,740 | $ | 16,852 | ||||||||
Less: Net loss attributable to noncontrolling interest | (88 | ) | — | (286 | ) | — | ||||||||||
Less: Preferred stock dividends | 6,695 | — | 6,695 | — | ||||||||||||
GAAP income from continuing operations attributable to Belden common stockholders | $ | 28,958 | $ | 14,811 | $ | 87,331 | $ | 16,852 | ||||||||
Adjusted income from continuing operations | $ | 61,436 | $ | 48,934 | $ | 169,429 | $ | 144,411 | ||||||||
Less: Net loss attributable to noncontrolling interest | (88 | ) | — | (286 | ) | — | ||||||||||
Less: Amortization expense attributable to noncontrolling interest, net of tax | 16 | — | 48 | — | ||||||||||||
Less: Preferred stock dividends | 6,695 | — | 6,695 | — | ||||||||||||
Adjusted income from continuing operations attributable to Belden common stockholders | $ | 54,813 | $ | 48,934 | $ | 162,972 | $ | 144,411 | ||||||||
GAAP income from continuing operations per diluted share attributable to Belden common stockholders | $ | 0.68 | $ | 0.35 | $ | 2.05 | $ | 0.39 | ||||||||
Adjusted income from continuing operations per diluted share attributable to Belden common stockholders | $ | 1.29 | $ | 1.14 | $ | 3.83 | $ | 3.35 | ||||||||
GAAP and Adjusted diluted weighted average shares | 42,601 | 42,908 | 42,532 | 43,117 |
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | |||||||||||||
(In thousands) | ||||||||||||||||
GAAP net cash provided by operating activities | $ | 86,352 | $ | 86,935 | $ | 146,806 | $ | 91,981 | ||||||||
Capital expenditures, net of proceeds from the disposal of tangible assets | (10,692 | ) | (11,817 | ) | (35,775 | ) | (38,961 | ) | ||||||||
Non-GAAP free cash flow | $ | 75,660 | $ | 75,118 | $ | 111,031 | $ | 53,020 |
Year Ended December 31, 2016 | Three Months Ended December 31, 2016 | |||
Adjusted revenues | $2.355 - $2.375 billion | $605 - $625 million | ||
Deferred revenue adjustments | ($7 million) | ($1 million) | ||
GAAP revenues | $2.348 - $2.368 billion | $604 - $624 million | ||
Adjusted income per diluted share attributable to Belden common stockholders | $5.20 - $5.30 | $1.36 - $1.46 | ||
Amortization of intangible assets | $(1.56) | $(0.30) | ||
Severance, restructuring, and acquisition integration costs | $(0.54) | $(0.08) | ||
Deferred gross profit adjustments | $(0.11) | $(0.02) | ||
Loss on debt extinguishment | ($0.03) | ($0.03) | ||
Purchase accounting effects | ($0.02) | ($0.02) | ||
GAAP income per diluted share attributable to Belden common stockholders | $2.94 - $3.04 | $0.91 - $1.01 | ||