EX-99.1 2 exhibit991newsreleasedated.htm EXHIBIT 99.1 NEWS RELEASE DATED FEBRUARY 2, 2017 Exhibit


Exhibit 99.1
 
graphic.jpg
 
 
 
 
  
1 North Brentwood Boulevard
  
Phone: 314.854.8000
  
15th Floor
  
Fax: 314.854.8003
  
St. Louis, Missouri 63105
  
 
  
 
  
www.Belden.com
News Release

Belden Reports Results for Fourth Quarter and Full Year 2016

St. Louis, Missouri - February 2, 2017 - Belden Inc. (NYSE: BDC), a global leader in high quality, end-to-end signal transmission solutions for mission-critical applications, today reported fiscal fourth quarter and full year 2016 results for the period ended December 31, 2016.

Fourth Quarter 2016
On a GAAP basis, revenues for the quarter totaled $612.4 million, increasing $15.2 million, or 2.5%, compared to $597.2 million in the fourth quarter 2015. Gross profit margin in the fourth quarter was 42.7%, increasing 80 basis points from 41.9% in the year-ago period. Net income was $34.0 million compared to $49.7 million in the prior-year period. Net income as a percentage of revenues was 5.5% in the fourth quarter, declining 280 basis points from 8.3% in the prior-year period. EPS totaled $0.59 compared to $1.17 in the fourth quarter 2015. The prior year EPS included incremental benefits of tax planning initiatives, and current year EPS included the dilutive impact of the mandatory convertible preferred stock.

Adjusted revenues for the quarter totaled $608.2 million, increasing $5.7 million, or 0.9%, compared to $602.5 million in the fourth quarter 2015. Adjusted gross profit margin was 43.4%, increasing 30 basis points from the year-ago period. Adjusted EBITDA margin was 20.1%, increasing 110 basis points from 19.0% in the year-ago period. Adjusted EPS was $1.42 compared to $1.63 in the fourth quarter 2015. The prior year adjusted EPS included incremental benefits of tax planning initiatives, and current year EPS included the dilutive impact of the mandatory convertible preferred stock. 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, “We are pleased to deliver another quarter of organic growth and margin expansion as our team continues to generate share capture and drive sustainable productivity improvements.”

Full Year 2016
On a GAAP basis, revenues for the year totaled $2.357 billion, up 2.1% compared to $2.309 billion in the full year 2015. Gross profit margin in 2016 was 41.6%, increasing 180 basis points from 39.8% in the year-ago period. Net income was $128.0 million compared to $66.2 million in 2015. Net income as a percentage of revenues was 5.4% for the full year, increasing 250 basis points from 2.9% in the prior year. EPS totaled $2.65, compared to $1.55 in 2015, an increase of 71.0%.
 
Adjusted revenues for the year totaled $2.358 billion, down slightly from $2.361 billion in 2015. Adjusted gross profit margin in 2016 was 42.3%, increasing 70 basis points from 41.6% in the year-ago period. Adjusted EBITDA margin was 18.3%, increasing 130 basis points from 17.0% in the year-ago period. Adjusted net income increased 12.3%, and adjusted EPS increased 5.8% to $5.27, compared to $4.98 in 2015.

Mr. Stroup remarked, “In 2016 we continued to significantly expand EBITDA margins, which are now within our long-term goal of 18-20% as a result of improvements in all five platforms. In addition, we generated record operating and free cash flow. We see many opportunities to build on these successes in 2017 and beyond.”

Outlook
“Our balanced portfolio and proven business system allow us to perform well under a variety of market situations. Consistent with our commitment to continuous improvement, we expect further EBITDA margin expansion across the organization in 2017. We also expect another year of organic growth. When paired with our strong balance sheet and optimism around acquisition-related opportunities, we feel confident that Belden remains well-positioned for success,” said Mr. Stroup.






The Company expects first quarter 2017 GAAP and adjusted revenues to be $540 - $560 million. For the full year ending December 31, 2017, the Company expects GAAP and adjusted revenues to be $2.355 - $2.405 billion.
 
The Company expects first quarter 2017 GAAP EPS to be $0.41 - $0.51. For the full year ending December 31, 2017, the Company expects GAAP EPS to be $3.35 - $3.60.

The Company expects first quarter 2017 adjusted EPS to be $0.83 - $0.93. For the full year ending December 31, 2017, the Company continues to expect adjusted EPS to be $4.95 - $5.20.

Earnings Conference Call
Management will host a conference call today at 8:30 am ET to discuss results of the quarter and full year. The listen-only audio of the conference call will be broadcast live via the Internet at http://investor.belden.com. The dial-in number for participants in the U.S. is 888-339-3466; the dial-in number for participants outside the U.S. is 719-325-2360. A replay of this conference call will remain accessible in the investor relations section of the Company’s Web site 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 Web site at http://investor.belden.com.









BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
 
 
Three Months Ended
 
Twelve Months Ended
 
 
December 31, 2016
 
December 31, 2015
 
December 31, 2016
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
(In thousands, except per share data)
Revenues
 
$
612,435

 
$
597,244

 
$
2,356,672

 
$
2,309,222

Cost of sales
 
(350,651
)
 
(347,127
)
 
(1,375,678
)
 
(1,391,049
)
Gross profit
 
261,784

 
250,117

 
980,994

 
918,173

Selling, general and administrative expenses
 
(122,099
)
 
(130,094
)
 
(494,224
)
 
(525,518
)
Research and development
 
(34,304
)
 
(37,312
)
 
(140,601
)
 
(148,311
)
Amortization of intangibles
 
(22,782
)
 
(25,701
)
 
(98,385
)
 
(103,791
)
Impairment of assets held for sale
 
(23,931
)
 

 
(23,931
)
 

Operating income
 
58,668

 
57,010

 
223,853

 
140,553

Interest expense, net
 
(23,092
)
 
(26,582
)
 
(95,050
)
 
(100,613
)
Loss on debt extinguishment
 
(2,342
)
 

 
(2,342
)
 

Income from continuing operations before taxes
 
33,234

 
30,428

 
126,461

 
39,940

Income tax benefit
 
672

 
19,228

 
1,185

 
26,568

Income from continuing operations
 
33,906

 
49,656

 
127,646

 
66,508

Loss from discontinued operations, net of tax
 

 

 

 
(242
)
Loss from disposal of discontinued operations, net of tax
 

 

 

 
(86
)
Net income
 
33,906

 
49,656

 
127,646

 
66,180

Less: Net loss attributable to noncontrolling interest
 
(71
)
 
(24
)
 
(357
)
 
(24
)
Net income attributable to Belden
 
33,977

 
49,680

 
128,003

 
66,204

Less: Preferred stock dividends
 
8,733

 

 
15,428

 

Net income attributable to Belden common stockholders
 
$
25,244

 
$
49,680

 
$
112,575

 
$
66,204

Weighted average number of common shares and equivalents:
 
 
 
 
 
 
 
 
Basic
 
42,157

 
41,978

 
42,093

 
42,390

Diluted
 
42,674

 
42,482

 
42,557

 
42,953

Basic income (loss) per share attributable to Belden common stockholders:
 
 
 
 
 
 
 
 
Continuing operations
 
$
0.60

 
$
1.18

 
$
2.67

 
$
1.57

Discontinued operations
 

 

 

 
(0.01
)
Disposal of discontinued operations
 

 

 

 

Net income
 
$
0.60

 
$
1.18

 
$
2.67

 
$
1.56

Diluted income (loss) per share attributable to Belden common stockholders:
 
 
 
 
 
 
 
 
Continuing operations
 
$
0.59

 
$
1.17

 
$
2.65

 
$
1.55

Discontinued operations
 

 

 

 
(0.01
)
Disposal of discontinued operations
 

 

 

 

Net income
 
$
0.59

 
$
1.17

 
$
2.65

 
$
1.54

Common stock dividends declared per share
 
$
0.05

 
$
0.05

 
$
0.20

 
$
0.20









BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)
 
 
 
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 December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
Segment Revenues
 
$
208,787

 
$
150,237

 
$
146,730

 
$
58,881

 
$
43,521

 
$
608,156

Segment EBITDA
 
48,553

 
20,693

 
27,548

 
11,011

 
15,047

 
122,852

Segment EBITDA margin
 
23.3
%
 
13.8
%
 
18.8
%
 
18.7
%
 
34.6
%
 
20.2
%
Depreciation expense
 
4,143

 
3,198

 
2,873

 
647

 
1,094

 
11,955

Amortization of intangibles
 
9,942

 
426

 
598

 
1,499

 
10,317

 
22,782

Severance, restructuring, and acquisition integration costs
 
4,543

 
4,682

 
1,941

 
410

 
122

 
11,698

Purchase accounting effects of acquisitions
 
(3,186
)
 
912

 

 

 

 
(2,274
)
Deferred gross profit adjustments
 
383

 

 

 

 
892

 
1,275

Patent settlement
 
(5,554
)
 

 

 

 

 
(5,554
)
Impairment of assets held for sale
 

 

 
15,731

 

 

 
15,731

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
For the twelve months ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
Segment Revenues
 
$
769,753

 
$
603,188

 
$
585,476

 
$
235,441

 
$
163,947

 
$
2,357,805

Segment EBITDA
 
137,870

 
101,298

 
101,248

 
45,067

 
47,706

 
433,189

Segment EBITDA margin
 
17.9
%
 
16.8
%
 
17.3
%
 
19.1
%
 
29.1
%
 
18.4
%
Depreciation expense
 
16,229

 
13,226

 
11,038

 
2,396

 
4,319

 
47,208

Amortization of intangibles
 
47,248

 
1,718

 
2,394

 
6,016

 
41,009

 
98,385

Severance, restructuring, and acquisition integration costs
 
10,414

 
11,962

 
9,923

 
6,320

 
151

 
38,770

Purchase accounting effects of acquisitions
 
(2,991
)
 
912

 

 

 

 
(2,079
)
Deferred gross profit adjustments
 
1,774

 

 

 

 
4,913

 
6,687

Patent settlement
 
(5,554
)
 

 

 

 

 
(5,554
)
Impairment of assets held for sale
 

 

 
15,731

 

 

 
15,731

For the twelve months ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
Segment Revenues
 
$
739,970

 
$
605,910

 
$
603,350

 
$
244,303

 
$
167,050

 
$
2,360,583

Segment EBITDA
 
113,638

 
100,214

 
99,941

 
43,253

 
44,620

 
401,666

Segment EBITDA margin
 
15.4
%
 
16.5
%
 
16.6
%
 
17.7
%
 
26.7
%
 
17.0
%
Depreciation expense
 
16,295

 
12,591

 
11,235

 
2,293

 
4,137

 
46,551

Amortization of intangibles
 
49,812

 
1,720

 
3,154

 
5,859

 
43,246

 
103,791

Severance, restructuring, and acquisition integration costs
 
39,078

 
723

 
6,228

 
169

 
972

 
47,170

Purchase accounting effects of acquisitions
 
132

 
52

 
334

 
32

 
9,197

 
9,747

Deferred gross profit adjustments
 
2,446

 

 

 

 
50,430

 
52,876








BELDEN INC.
OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS
(Unaudited)
 
 
 
Three Months Ended
 
Twelve Months Ended
 
 
December 31, 2016
 
December 31, 2015
 
December 31, 2016
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Total Segment Revenues
 
$
608,156

 
$
602,504

 
$
2,357,805

 
$
2,360,583

    Deferred revenue adjustments
 
(1,275
)
 
(5,260
)
 
(6,687
)
 
(51,361
)
    Patent settlement
 
5,554

 

 
5,554

 

Consolidated Revenues
 
$
612,435

 
$
597,244

 
$
2,356,672

 
$
2,309,222

Total Segment EBITDA
 
$
122,852

 
$
115,064

 
$
433,189

 
$
401,666

    Income from equity method investment
 
716

 
311

 
1,793

 
1,770

    Eliminations
 
(1,087
)
 
(752
)
 
(3,781
)
 
(2,748
)
Consolidated Adjusted EBITDA (1)
 
122,481

 
114,623

 
431,201

 
400,688

    Amortization of intangibles
 
(22,782
)
 
(25,701
)
 
(98,385
)
 
(103,791
)
    Depreciation expense
 
(11,955
)
 
(11,500
)
 
(47,208
)
 
(46,551
)
    Severance, restructuring, and acquisition integration costs
 
(11,698
)
 
(13,637
)
 
(38,770
)
 
(47,170
)
    Impairment of assets held for sale
 
(23,931
)
 

 
(23,931
)
 

    Deferred gross profit adjustments
 
(1,275
)
 
(6,450
)
 
(6,687
)
 
(52,876
)
    Patent settlement
 
5,554

 

 
5,554

 

    Purchase accounting effects related to acquisitions
 
2,274

 
(325
)
 
2,079

 
(9,747
)
Consolidated operating income
 
58,668

 
57,010

 
223,853

 
140,553

    Interest expense, net
 
(23,092
)
 
(26,582
)
 
(95,050
)
 
(100,613
)
    Loss on debt extinguishment
 
(2,342
)
 

 
(2,342
)
 

Consolidated income from continuing operations before taxes
 
$
33,234

 
$
30,428

 
$
126,461

 
$
39,940

 
(1)
Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation of Non-GAAP Measures for additional information.






















BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
 
December 31, 2016
 
December 31, 2015
 
 
(In thousands)
ASSETS
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
848,116

 
$
216,751

Receivables, net
 
388,059

 
387,386

Inventories, net
 
190,408

 
195,942

Other current assets
 
29,176

 
37,079

Assets held for sale
 
23,193

 

            Total current assets
 
1,478,952

 
837,158

Property, plant and equipment, less accumulated depreciation
 
309,291

 
310,629

Goodwill
 
1,385,995

 
1,385,115

Intangible assets, less accumulated amortization
 
560,082

 
655,871

Deferred income taxes
 
33,706

 
34,295

Other long-lived assets
 
38,777

 
67,534

 
 
$
3,806,803

 
$
3,290,602

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
Current liabilities:
 
 
 
 
Accounts payable
 
$
258,203

 
$
223,514

Accrued liabilities
 
310,340

 
323,249

Current maturities of long-term debt
 

 
2,500

Liabilities held for sale
 
1,736

 

Total current liabilities
 
570,279

 
549,263

Long-term debt
 
1,620,161

 
1,725,282

Postretirement benefits
 
104,050

 
105,230

Deferred income taxes
 
14,276

 
46,034

Other long-term liabilities
 
36,720

 
39,270

Stockholders’ equity:
 
 
 
 
     Preferred stock
 
1

 

Common stock
 
503

 
503

Additional paid-in capital
 
1,116,090

 
605,660

Retained earnings
 
783,812

 
679,716

Accumulated other comprehensive loss
 
(39,067
)
 
(58,987
)
Treasury stock
 
(401,026
)
 
(402,793
)
Total Belden stockholders’ equity
 
1,460,313

 
824,099

Noncontrolling interest
 
1,004

 
1,424

Total stockholders’ equity
 
1,461,317

 
825,523

 
 
$
3,806,803

 
$
3,290,602









BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited)
 
 
 
Twelve Months Ended
 
 
December 31, 2016
 
December 31, 2015
 
 
 
 
 
 
 
(In thousands)
Cash flows from operating activities:
 
 
 
 
Net income
 
$
127,646

 
$
66,180

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
 
145,593

 
150,342

Impairment of assets held for sale
 
23,931

 

Share-based compensation
 
18,178

 
17,745

Loss on debt extinguishment
 
2,342

 

Deferred income tax benefit
 
(30,034
)
 
(45,674
)
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses:
 
 
 
 
Receivables
 
(10,115
)
 
6,066

Inventories
 
2,677

 
19,204

Accounts payable
 
39,298

 
(38,907
)
Accrued liabilities
 
(13,181
)
 
59,214

Accrued taxes
 
11,722

 
11,981

Other assets
 
760

 
(4,840
)
Other liabilities
 
(4,023
)
 
149

Net cash provided by operating activities
 
314,794

 
241,460

Cash flows from investing activities:
 
 
 
 
Capital expenditures
 
(53,974
)
 
(54,969
)
Cash used to acquire businesses, net of cash acquired
 
(18,848
)
 
(695,345
)
Other
 
(827
)
 

Proceeds from disposal of business
 

 
3,527

Proceeds from disposal of tangible assets
 
392

 
533

Net cash used for investing activities
 
(73,257
)
 
(746,254
)
Cash flows from financing activities:
 
 
 
 
Proceeds from issuance of preferred stock, net
 
501,498

 

Borrowings under credit arrangements
 
222,050

 
200,000

Contribution from non-controlling interest
 

 
1,470

Payments under borrowing arrangements
 
(294,375
)
 
(152,500
)
Cash dividends paid
 
(16,079
)
 
(8,395
)
Withholding tax payments for share-based payment awards, net of proceeds from the exercise of stock options
 
(7,480
)
 
(11,693
)
Debt issuance costs paid
 
(3,910
)
 
(898
)
Payments under share repurchase program
 

 
(39,053
)
Net cash provided by (used for) financing activities
 
401,704

 
(11,069
)
Effect of foreign currency exchange rate changes on cash and cash equivalents
 
(11,876
)
 
(8,548
)
Increase (decrease) in cash and cash equivalents
 
631,365


(524,411
)
Cash and cash equivalents, beginning of period
 
216,751

 
741,162

Cash and cash equivalents, end of period
 
$
848,116

 
$
216,751








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
 
Twelve Months Ended
 
 
December 31, 2016
 
December 31, 2015
 
December 31, 2016
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
(In thousands, except percentages and per share amounts)
GAAP revenues
 
$
612,435

 
$
597,244

 
$
2,356,672

 
$
2,309,222

Deferred revenue adjustments
 
1,275

 
5,260

 
6,687

 
51,361

Patent settlement
 
(5,554
)
 

 
(5,554
)
 

Adjusted revenues
 
$
608,156

 
$
602,504

 
$
2,357,805

 
$
2,360,583

 
 
 
 
 
 
 
 
 
GAAP gross profit
 
$
261,784

 
$
250,117

 
$
980,994

 
$
918,173

Severance, restructuring, and acquisition integration costs
 
5,461

 
3,024

 
12,276

 
9,364

Deferred gross profit adjustments
 
1,275

 
6,450

 
6,687

 
52,876

Purchase accounting effects related to acquisitions
 
912

 

 
1,107

 
267

Accelerated depreciation
 
246

 
50

 
864

 
225

Patent settlement
 
(5,554
)
 

 
(5,554
)
 

Adjusted gross profit
 
$
264,124

 
$
259,641

 
$
996,374

 
$
980,905

 
 
 
 
 
 
 
 
 
GAAP gross profit margin
 
42.7
%
 
41.9
%
 
41.6
%
 
39.8
%
Adjusted gross profit margin
 
43.4
%
 
43.1
%
 
42.3
%
 
41.6
%
 
 
 
 
 
 
 
 
 
GAAP net income attributable to Belden
 
$
33,977

 
$
49,680

 
$
128,003

 
$
66,204

Interest expense, net
 
23,092

 
26,582

 
95,050

 
100,613

Loss on debt extinguishment
 
2,342

 

 
2,342

 






Income tax benefit
 
(672
)
 
(19,228
)
 
(1,185
)
 
(26,568
)
Loss from discontinued operations
 

 

 

 
242

Loss from disposal of discontinued operations
 

 

 

 
86

Noncontrolling interest
 
(71
)
 
(24
)
 
(357
)
 
(24
)
Total non-operating adjustments
 
24,691

 
7,330

 
95,850

 
74,349

 
 
 
 
 
 
 
 
 
Amortization of intangible assets
 
22,782

 
25,701

 
98,385

 
103,791

Severance, restructuring, and acquisition integration costs
 
11,698

 
13,637

 
38,770

 
47,170

Impairment of assets held for sale
 
23,931

 

 
23,931

 

Deferred gross profit adjustments
 
1,275

 
6,450

 
6,687

 
52,876

Accelerated depreciation
 
294

 
81

 
928

 
388

Purchase accounting effects related to acquisitions
 
(2,274
)
 
325

 
(2,079
)
 
9,747

Patent settlement
 
(5,554
)
 

 
(5,554
)
 

Total operating income adjustments
 
52,152

 
46,194

 
161,068

 
213,972

Depreciation expense
 
11,661

 
11,419

 
46,280

 
46,163

 
 
 
 
 
 
 
 
 
Adjusted EBITDA
 
$
122,481

 
$
114,623

 
$
431,201

 
$
400,688

 
 
 
 
 
 
 
 
 
GAAP net income margin
 
5.5
%
 
8.3
%
 
5.4
%
 
2.9
%
Adjusted EBITDA margin
 
20.1
%
 
19.0
%
 
18.3
%
 
17.0
%
 
 
 
 
 
 
 
 
 
GAAP income from continuing operations
 
$
33,906

 
$
49,656

 
$
127,646

 
$
66,508

Operating income adjustments from above
 
52,152

 
46,194

 
161,068

 
213,972

Loss on debt extinguishment
 
2,342

 

 
2,342

 

Tax effect of adjustments
 
(18,147
)
 
(26,558
)
 
(51,374
)
 
(66,777
)
Adjusted income from continuing operations
 
$
70,253

 
$
69,292

 
$
239,682

 
$
213,703

 
 
 
 
 
 
 
 
 
GAAP income from continuing operations
 
$
33,906

 
$
49,656

 
$
127,646

 
$
66,508

Less: Net loss attributable to noncontrolling interest
 
(71
)
 
(24
)
 
(357
)
 
(24
)
Less: Preferred stock dividends
 
8,733

 

 
15,428

 

GAAP income from continuing operations attributable to Belden common stockholders
 
$
25,244

 
$
49,680

 
$
112,575

 
$
66,532

 
 
 
 
 
 
 
 
 
Adjusted income from continuing operations
 
$
70,253

 
$
69,292

 
$
239,682

 
$
213,703

Less: Net loss attributable to noncontrolling interest
 
(71
)
 
(24
)
 
(357
)
 
(24
)
Less: Amortization expense attributable to noncontrolling interest, net of tax
 
16

 
5

 
64

 
5

Adjusted income from continuing operations attributable to Belden common stockholders
 
$
70,308

 
$
69,311

 
$
239,975

 
$
213,722

 
 
 
 
 
 
 
 
 
GAAP income from continuing operations per diluted share attributable to Belden common stockholders
 
$
0.59

 
$
1.17

 
$
2.65

 
$
1.55

Adjusted income from continuing operations per diluted share attributable to Belden common stockholders
 
$
1.42

 
$
1.63

 
$
5.27

 
$
4.98

 
 
 
 
 
 
 
 
 
GAAP diluted weighted average shares
 
42,674

 
42,482

 
42,557

 
42,953

Adjustment for assumed conversion of preferred stock into common stock
 
6,857

 

 
2,979

 

Adjusted diluted weighted average shares
 
49,531

 
42,482

 
45,536

 
42,953








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
 
Twelve Months Ended
 
 
December 31, 2016
 
December 31, 2015
 
December 31, 2016
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
GAAP net cash provided by operating activities
 
$
167,365

 
$
144,415

 
$
314,794

 
$
241,460

Capital expenditures, net of proceeds from the disposal of tangible assets
 
(17,807
)
 
(15,475
)
 
(53,582
)
 
(54,436
)
Non-GAAP free cash flow
 
$
149,558

 
$
128,940

 
$
261,212

 
$
187,024


BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
2017 EARNINGS GUIDANCE
 
 
 
 
 
 
 
  
Year Ended
December 31, 2017
  
Three Months Ended
April 2, 2017
Adjusted income per diluted share attributable to Belden common stockholders
  
 $4.95 - $5.20
 
 $0.83 - $0.93
     Amortization of intangible assets
  
$(1.33)
 
$(0.34)
     Severance, restructuring, and acquisition integration costs
  
$(0.27)
 
$(0.08)
GAAP income per diluted share attributable to Belden common stockholders
  
 $3.35 - $3.60
 
 $0.41 - $0.51
 
  
 
  
 
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 contains, and statements made by us concerning the release may contain, forward-looking statements, including our expectations for the first quarter, and full-year 2017. Forward-looking statements also 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.

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

BDC-E