EX-99.1 2 exhibit991_q32017.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1
 
graphica04.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 Solid Results for Third Quarter 2017

St. Louis, Missouri - November 1, 2017 - Belden Inc. (NYSE: BDC), a global leader in high quality, end-to-end signal transmission solutions for mission-critical applications, today reported fiscal third quarter 2017 results for the period ended October 1, 2017.

Third Quarter 2017

On a GAAP basis, revenues for the quarter totaled $621.7 million, increasing $20.6 million, or 3.4%, compared to $601.1 million in the third quarter 2016. Net income was $1.0 million, a decrease of $35.1 million from the prior-year period. Net income was impacted by a $32.2 million after-tax loss on debt extinguishment related to our recent debt refinancing and repayment. Net income as a percentage of revenues was 0.2% compared to 6.0% in the prior-year period. EPS was $(0.18) compared to $0.69 in the third quarter 2016.

The $621.7 million of quarterly revenues represents an increase of $19.2 million, or 3.2%, over the adjusted revenues of $602.5 million in the third quarter 2016. Adjusted EBITDA margin in the third quarter was 19.2%, increasing 70 basis points from 18.5% in the year-ago period. Adjusted net income was $73.9 million, increasing $12.3 million, or 20.1%, compared to the prior-year period. Adjusted EPS was $1.49, increasing 15.5% compared to $1.29 in the third quarter 2016. 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, “The third quarter performance was in line with our expectations, and I am obviously pleased to report double-digit adjusted earnings growth and meaningful margin expansion. Our recent debt refinancing provided the lowest long-term borrowing rate in the history of the company.”

Outlook

“We expect record quarterly revenues and EPS in the fourth quarter, and we are well-positioned for success longer term. Our balance sheet is healthy and we continue to aggressively pursue a number of attractive inorganic opportunities,” said Mr. Stroup.

The Company expects fourth quarter 2017 revenues to be $641 - $661 million. For the full year ending December 31, 2017, the Company now expects revenues to be $2.425 - $2.445 billion, compared to prior guidance of $2.415 - $2.445 billion.

The Company expects fourth quarter 2017 GAAP EPS to be $1.61 - $1.71. For the full year ending December 31, 2017, the Company now expects GAAP EPS to be $2.50 - $2.60, compared to the previously guided range of $2.82 - $3.02.

The Company expects fourth quarter 2017 adjusted EPS to be $1.71 - $1.81. For the full year ending December 31, 2017, the Company now expects adjusted EPS to be $5.45 - $5.55, compared to the previously guided range of $5.35 - $5.55.

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 888-339-3466; 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 website for a limited time.







BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
October 1, 2017
 
October 2, 2016
 
October 1, 2017
 
October 2, 2016
 
 
 
 
 
 
 
 
 
 
 
(In thousands, except per share data)
Revenues
 
$
621,745

 
$
601,109

 
$
1,783,759

 
$
1,744,237

Cost of sales
 
(381,921
)
 
(355,147
)
 
(1,079,312
)
 
(1,025,027
)
Gross profit
 
239,824

 
245,962

 
704,447

 
719,210

Selling, general and administrative expenses
 
(116,429
)
 
(126,662
)
 
(346,786
)
 
(372,125
)
Research and development
 
(35,442
)
 
(33,512
)
 
(105,108
)
 
(106,297
)
Amortization of intangibles
 
(27,162
)
 
(23,808
)
 
(77,944
)
 
(75,603
)
Operating income
 
60,791

 
61,980

 
174,609

 
165,185

Interest expense, net
 
(19,385
)
 
(23,513
)
 
(66,424
)
 
(71,958
)
Loss on debt extinguishment
 
(51,594
)
 

 
(52,441
)
 

Income (loss) before taxes
 
(10,188
)
 
38,467

 
55,744

 
93,227

Income tax benefit (expense)
 
11,133

 
(2,395
)
 
6,673

 
1,136

Net income
 
945

 
36,072

 
62,417

 
94,363

Less: Net loss attributable to noncontrolling interest
 
(82
)
 
(88
)
 
(274
)
 
(286
)
Net income attributable to Belden
 
1,027

 
36,160

 
62,691

 
94,649

Less: Preferred stock dividends
 
8,732

 
6,695

 
26,198

 
6,695

Net income (loss) attributable to Belden common stockholders
 
$
(7,705
)
 
$
29,465

 
$
36,493

 
$
87,954

 
 
 
 
 
 
 
 
 
Weighted average number of common shares and equivalents:
 
 
 
 
 
 
 
 
Basic
 
42,256

 
42,126

 
42,251

 
42,073

Diluted
 
42,256

 
42,648

 
42,663

 
42,534

 
 
 
 
 
 
 
 
 
Basic income (loss) per share attributable to Belden common stockholders:
 
$
(0.18
)
 
$
0.70

 
$
0.86

 
$
2.09

 
 
 
 
 
 
 
 
 
Diluted income (loss) per share attributable to Belden common stockholders:
 
$
(0.18
)
 
$
0.69

 
$
0.86

 
$
2.07

 
 
 
 
 
 
 
 
 
Common stock dividends declared per share
 
$
0.05

 
$
0.05

 
$
0.15

 
$
0.15
























BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)
 
 
Broadcast 
Solutions
 
Enterprise
Solutions
 
Industrial
Solutions
 
Network Solutions
 
Total 
Segments
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands, except percentages)
For the three months ended October 1, 2017
 
 
 
 
 
 
 
 
 
 
Segment Revenues
 
$
193,753

 
$
167,089

 
$
160,471

 
$
100,432

 
$
621,745

Segment EBITDA
 
35,671

 
26,409

 
30,545

 
24,906

 
117,531

Segment EBITDA margin
 
18.4
%
 
15.8
%
 
19.0
%
 
24.8
%
 
18.9
%
Depreciation expense
 
4,088

 
2,740

 
3,285

 
1,570

 
11,683

Amortization of intangibles
 
13,482

 
438

 
646

 
12,596

 
27,162

Severance, restructuring, and acquisition integration costs
 
3,056

 
6,253

 
6,840

 
530

 
16,679

Purchase accounting effects related to acquisitions
 
2,922

 

 

 

 
2,922

 
 
 
 
 
 
 
 
 
 
 
For the three months ended October 2, 2016
 
 
 
 
 
 
 
 
 
 
Segment Revenues
 
$
196,173

 
$
156,658

 
$
149,847

 
$
99,790

 
$
602,468

Segment EBITDA
 
36,545

 
27,294

 
23,649

 
24,448

 
111,936

Segment EBITDA margin
 
18.6
%
 
17.4
%
 
15.8
%
 
24.5
%
 
18.6
%
Depreciation expense
 
4,063

 
3,210

 
2,738

 
1,592

 
11,603

Amortization of intangibles
 
10,955

 
431

 
604

 
11,818

 
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 nine months ended October 1, 2017
 
 
 
 
 
 
 
 
 
 
Segment Revenues
 
$
550,420

 
$
473,504

 
$
465,907

 
$
293,928

 
$
1,783,759

Segment EBITDA
 
90,681

 
77,310

 
87,314

 
65,563

 
320,868

Segment EBITDA margin
 
16.5
%
 
16.3
%
 
18.7
%
 
22.3
%
 
18.0
%
Depreciation expense
 
12,095

 
8,034

 
9,659

 
4,806

 
34,594

Amortization of intangibles
 
36,950

 
1,291

 
1,928

 
37,775

 
77,944

Severance, restructuring, and acquisition integration costs
 
4,434

 
19,267

 
8,307

 
831

 
32,839

Purchase accounting effects related to acquisitions
 
4,089

 

 

 

 
4,089

 
 
 
 
 
 
 
 
 
 
 
For the nine months ended October 2, 2016
 
 
 
 
 
 
 
 
 
 
Segment Revenues
 
$
560,966

 
$
452,951

 
$
438,746

 
$
296,986

 
$
1,749,649

Segment EBITDA
 
89,317

 
80,605

 
73,700

 
66,715

 
310,337

Segment EBITDA margin
 
15.9
%
 
17.8
%
 
16.8
%
 
22.5
%
 
17.7
%
Depreciation expense
 
12,086

 
10,028

 
8,165

 
4,974

 
35,253

Amortization of intangibles
 
37,306

 
1,292

 
1,796

 
35,209

 
75,603

Severance, restructuring, and acquisition integration costs
 
5,871

 
7,280

 
7,982

 
5,939

 
27,072

Purchase accounting effects related to acquisitions
 
195

 

 

 

 
195

Deferred gross profit adjustments
 
1,391

 

 

 
4,021

 
5,412






BELDEN INC.
OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS
(Unaudited)
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
October 1, 2017
 
October 2, 2016
 
October 1, 2017
 
October 2, 2016
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Total Segment Revenues
 
$
621,745

 
$
602,468

 
$
1,783,759

 
$
1,749,649

Deferred revenue adjustments
 

 
(1,359
)
 

 
(5,412
)
Consolidated Revenues
 
$
621,745

 
$
601,109

 
$
1,783,759

 
$
1,744,237

 
 
 
 
 
 
 
 
 
Total Segment EBITDA
 
$
117,531

 
$
111,936

 
$
320,868

 
$
310,337

Income from equity method investment
 
2,551

 
586

 
5,835

 
1,077

Eliminations
 
(845
)
 
(977
)
 
(2,628
)
 
(2,694
)
Consolidated Adjusted EBITDA (1)
 
119,237

 
111,545

 
324,075

 
308,720

Amortization of intangibles
 
(27,162
)
 
(23,808
)
 
(77,944
)
 
(75,603
)
Depreciation expense
 
(11,683
)
 
(11,603
)
 
(34,594
)
 
(35,253
)
Severance, restructuring, and acquisition integration costs
 
(16,679
)
 
(12,795
)
 
(32,839
)
 
(27,072
)
Purchase accounting effects related to acquisitions
 
(2,922
)
 

 
(4,089
)
 
(195
)
Deferred gross profit adjustments
 

 
(1,359
)
 

 
(5,412
)
Consolidated operating income
 
60,791

 
61,980

 
174,609

 
165,185

Interest expense, net
 
(19,385
)
 
(23,513
)
 
(66,424
)
 
(71,958
)
Loss on debt extinguishment
 
(51,594
)
 

 
(52,441
)
 

Consolidated income (loss) before taxes
 
$
(10,188
)
 
$
38,467

 
$
55,744

 
$
93,227

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


























BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
 
October 1, 2017
 
December 31, 2016
 
 
(Unaudited)
 
 
 
 
(In thousands)
ASSETS
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
461,363

 
$
848,116

Receivables, net
 
439,276

 
388,059

Inventories, net
 
262,494

 
190,408

Other current assets
 
67,048

 
29,176

Assets held for sale
 
35,953

 
23,193

            Total current assets
 
1,266,134

 
1,478,952

Property, plant and equipment, less accumulated depreciation
 
324,617

 
309,291

Goodwill
 
1,475,467

 
1,385,995

Intangible assets, less accumulated amortization
 
566,958

 
560,082

Deferred income taxes
 
35,565

 
33,706

Other long-lived assets
 
36,107

 
38,777

 
 
$
3,704,848

 
$
3,806,803

 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
 
 
 
 
Accounts payable
 
$
301,173

 
$
258,203

Accrued liabilities
 
257,729

 
310,340

Liabilities held for sale
 
1,732

 
1,736

Total current liabilities
 
560,634

 
570,279

Long-term debt
 
1,530,077

 
1,620,161

Postretirement benefits
 
112,938

 
104,050

Deferred income taxes
 
21,528

 
14,276

Other long-term liabilities
 
37,311

 
36,720

Stockholders’ equity:
 
 
 
 
     Preferred stock
 
1

 
1

Common stock
 
503

 
503

Additional paid-in capital
 
1,123,623

 
1,116,090

Retained earnings
 
813,936

 
783,812

Accumulated other comprehensive loss
 
(84,342
)
 
(39,067
)
Treasury stock
 
(412,059
)
 
(401,026
)
Total Belden stockholders’ equity
 
1,441,662

 
1,460,313

Noncontrolling interest
 
698

 
1,004

Total stockholders’ equity
 
1,442,360

 
1,461,317

 
 
$
3,704,848

 
$
3,806,803
















BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited)
 
 
 
Nine Months Ended
 
 
October 1, 2017
 
October 2, 2016
 
 
 
 
 
 
 
(In thousands)
Cash flows from operating activities:
 
 
 
 
Net income
 
$
62,417

 
$
94,363

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
 
112,538

 
110,857

Share-based compensation
 
13,431

 
13,943

Loss on debt extinguishment
 
52,441

 

Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses:
 
 
 
 
Receivables
 
(32,950
)
 
(9,843
)
Inventories
 
(50,232
)
 
5,626

Accounts payable
 
30,290

 
(3,889
)
Accrued liabilities
 
(54,828
)
 
(43,594
)
Income taxes
 
(32,071
)
 
(17,375
)
Other assets
 
(9,046
)
 
2,798

Other liabilities
 
11,625

 
(5,457
)
Net cash provided by operating activities
 
103,615

 
147,429

Cash flows from investing activities:
 
 
 
 
Cash used to acquire businesses, net of cash acquired
 
(166,896
)
 
(17,848
)
Capital expenditures
 
(33,430
)
 
(36,057
)
Other
 

 
(971
)
Proceeds from disposal of tangible assets
 
15

 
282

Net cash used for investing activities
 
(200,311
)
 
(54,594
)
Cash flows from financing activities:
 
 
 
 
Payments under borrowing arrangements
 
(1,105,892
)
 
(51,875
)
Cash dividends paid
 
(32,535
)
 
(6,307
)
Debt issuance costs paid
 
(16,586
)
 

Payments under share repurchase program
 
(11,508
)
 

Withholding tax payments for share-based payment awards, net of proceeds from the exercise of stock options
 
(5,421
)
 
(5,302
)
Proceeds from issuance of preferred stock, net
 

 
501,498

Borrowings under credit arrangements
 
866,700

 

Net cash provided by (used for) financing activities
 
(305,242
)
 
438,014

Effect of foreign currency exchange rate changes on cash and cash equivalents
 
15,185

 
705

Increase (decrease) in cash and cash equivalents
 
(386,753
)
 
531,554

Cash and cash equivalents, beginning of period
 
848,116

 
216,751

Cash and cash equivalents, end of period
 
$
461,363

 
$
748,305















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 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 operating performance and vary in amount and frequency. 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 in accordance with accounting principles generally accepted in the United States.
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
October 1, 2017
 
October 2, 2016
 
October 1, 2017
 
October 2, 2016
 
 
 
 
 
 
 
 
 
 
 
(In thousands, except percentages and per share amounts)
GAAP revenues
 
$
621,745

 
$
601,109

 
$
1,783,759

 
$
1,744,237

Deferred revenue adjustments
 

 
1,359

 

 
5,412

Adjusted revenues
 
$
621,745

 
$
602,468

 
$
1,783,759

 
$
1,749,649

 
 
 
 
 
 
 
 
 
GAAP gross profit
 
$
239,824

 
$
245,962

 
$
704,447

 
$
719,210

Severance, restructuring, and acquisition integration costs
 
12,406

 
2,897

 
26,523

 
6,815

Purchase accounting effects related to acquisitions
 
2,922

 

 
4,089

 
195

Accelerated depreciation
 
266

 
206

 
798

 
618

Deferred gross profit adjustments
 

 
1,359

 

 
5,412

Adjusted gross profit
 
$
255,418

 
$
250,424

 
$
735,857

 
$
732,250

 
 
 
 
 
 
 
 
 
  GAAP gross profit margin
 
38.6
%
 
40.9
%
 
39.5
%
 
41.2
%
  Adjusted gross profit margin
 
41.1
%
 
41.6
%
 
41.3
%
 
41.9
%
 
 
 
 
 
 
 
 
 
GAAP selling, general and administrative expenses
 
$
(116,429
)
 
$
(126,662
)
 
$
(346,786
)
 
$
(372,125
)
Severance, restructuring, and acquisition integration costs
 
4,174

 
9,924

 
6,264

 
19,604

Accelerated depreciation
 

 
16

 

 
16

Adjusted selling, general and administrative expenses
 
$
(112,255
)
 
$
(116,722
)
 
$
(340,522
)
 
$
(352,505
)
 
 
 
 
 
 
 
 
 
GAAP research and development
 
$
(35,442
)
 
$
(33,512
)
 
$
(105,108
)
 
$
(106,297
)
Severance, restructuring, and acquisition integration costs
 
99

 
(26
)
 
52

 
653

Adjusted research and development
 
$
(35,343
)
 
$
(33,538
)
 
$
(105,056
)
 
$
(105,644
)
 
 
 
 
 
 
 
 
 





GAAP net income attributable to Belden
 
$
1,027

 
$
36,160

 
$
62,691

 
$
94,649

Interest expense, net
 
19,385

 
23,513

 
66,424

 
71,958

Income tax expense (benefit)
 
(11,133
)
 
2,395

 
(6,673
)
 
(1,136
)
Loss on debt extinguishment
 
51,594

 

 
52,441

 

Noncontrolling interest
 
(82
)
 
(88
)
 
(274
)
 
(286
)
Total non-operating adjustments
 
59,764

 
25,820

 
111,918

 
70,536

 
 
 
 
 
 
 
 
 
Amortization of intangible assets
 
27,162

 
23,808

 
77,944

 
75,603

Severance, restructuring, and integration costs
 
16,679

 
12,795

 
32,839

 
27,072

Purchase accounting effects related to acquisitions
 
2,922

 

 
4,089

 
195

Accelerated depreciation
 
266

 
222

 
798

 
634

Deferred gross profit adjustments
 

 
1,359

 

 
5,412

Total operating income adjustments
 
47,029

 
38,184

 
115,670

 
108,916

 
 
 
 
 
 
 
 
 
Depreciation expense
 
11,417

 
11,381

 
33,796

 
34,619

 
 
 
 
 
 
 
 
 
Adjusted EBITDA
 
$
119,237

 
$
111,545

 
$
324,075

 
$
308,720

 
 
 
 
 
 
 
 
 
  GAAP net income margin
 
0.2
%
 
6.0
%
 
3.5
%
 
5.4
%
  Adjusted EBITDA margin
 
19.2
%
 
18.5
%
 
18.2
%
 
17.6
%
 
 
 
 
 
 
 
 
 
GAAP net income attributable to Belden
 
$
1,027

 
$
36,160

 
$
62,691

 
$
94,649

Operating income adjustments from above
 
47,029

 
38,184

 
115,670

 
108,916

Loss on debt extinguishment
 
51,594

 

 
52,441

 

Amortization expense attributable to noncontrolling interest, net of tax
 
(16
)
 
(16
)
 
(47
)
 
(48
)
Tax effect of adjustments
 
(25,782
)
 
(12,820
)
 
(44,750
)
 
(33,850
)
Adjusted net income attributable to Belden
 
$
73,852

 
$
61,508

 
$
186,005

 
$
169,667

 
 
 
 
 
 
 
 
 
GAAP net income attributable to Belden
 
$
1,027

 
$
36,160

 
$
62,691

 
$
94,649

Less: Preferred stock dividends
 
8,732

 
6,695

 
26,198

 
6,695

GAAP net income (loss) attributable to Belden common stockholders
 
$
(7,705
)
 
$
29,465

 
$
36,493

 
$
87,954

 
 
 
 
 
 
 
 
 
Adjusted net income attributable to Belden
 
$
73,852

 
$
61,508

 
$
186,005

 
$
169,667

Less: Preferred stock dividends
 

 
6,695

 
26,198

 
6,695

Adjusted net income attributable to Belden common stockholders
 
$
73,852

 
$
54,813

 
$
159,807

 
$
162,972

 
 
 
 
 
 
 
 
 
GAAP income (loss) per diluted share attributable to Belden common stockholders
 
$
(0.18
)
 
$
0.69

 
$
0.86

 
$
2.07

Adjusted income per diluted share attributable to Belden common stockholders
 
$
1.49

 
$
1.29

 
$
3.75

 
$
3.83

 
 
 
 
 
 
 
 
 
GAAP diluted weighted average shares
 
42,256

 
42,648

 
42,663

 
42,534

Adjustment for assumed conversion of preferred stock
 
 
 
 
 
 
 
 
into common stock
 
6,848

 

 

 

Adjustment for anti-dilutive shares that are dilutive under
 
 
 
 
 
 
 
 
adjusted measures
 
414

 

 

 

Adjusted diluted weighted average shares
 
49,518

 
42,648

 
42,663

 
42,534














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
 
Nine Months Ended
 
 
October 1, 2017
 
October 2, 2016
 
October 1, 2017
 
October 2, 2016
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
GAAP net cash provided by operating activities
 
$
68,834

 
$
86,859

 
$
103,615

 
$
147,429

Capital expenditures, net of proceeds from the disposal of tangible assets
 
(11,218
)
 
(10,692
)
 
(33,415
)
 
(35,775
)
Non-GAAP free cash flow
 
$
57,616

 
$
76,167

 
$
70,200

 
$
111,654




BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
2017 EARNINGS GUIDANCE
 
 
  
Year Ended
December 31, 2017
  
Three Months Ended
December 31, 2017
 
 
 
 
 
Adjusted income per diluted share attributable to Belden common stockholders
  
$5.45 - $5.55
 
 $1.71 - $1.81
     Amortization of intangible assets
  
$(1.51)
 
$(0.07)
     Loss on debt extinguishment
 
$(0.76)
 
$0.00
     Severance, restructuring, and acquisition integration costs
  
$(0.59)
 
$(0.02)
     Purchase accounting effects related to acquisitions
 
$(0.09)
 
$(0.01)
GAAP income per diluted share attributable to Belden common stockholders
  
 $2.50 - $2.60
 
 $1.61 - $1.71
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.


















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.

Forward-Looking Statements

This release and any statements made by us concerning the release may contain forward-looking statements including our expectations for the fourth quarter and full-year 2017. Forward-looking statements include statements regarding future financial performance (including revenues, expenses, earnings, margins, cash flows, dividends, capital expenditures and financial condition), plans and objectives, and related assumptions. In some cases these statements are identifiable through the use of words such as “anticipate,” “believe,” “estimate,” “forecast,” “guide,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would” and similar expressions. Forward-looking statements reflect management’s current beliefs and expectations and are not guarantees of future performance. Actual results may differ materially from those suggested by any forward-looking statements for a number of reasons, including, without limitation: the impact of a challenging global economy or a downturn in served markets; the competitiveness of the global broadcast, enterprise, and industrial markets; the inability to successfully complete and integrate acquisitions in furtherance of the Company’s strategic plan; volatility in credit and foreign exchange markets; variability in the Company’s quarterly and annual effective tax rates; the cost and availability of raw materials including copper, plastic compounds, electronic components, and other materials; disruption of, or changes in, the Company’s key distribution channels; the inability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); disruptions in the Company’s information systems including due to cyber-attacks; the inability of the Company to develop and introduce new products and competitive responses to our products; 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; risks related to the use of open source software; the impact of regulatory requirements and other legal compliance issues; 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; 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, 2016, filed with the SEC on February 17, 2017. 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