EX-99.1 2 companynewsreleasedatedfeb.htm EXHIBIT 99.1 Exhibit

Exhibit 99.1
 
graphica09.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 2018

St. Louis, Missouri - February 20, 2019 - 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 2018 results for the period ended December 31, 2018.

Fourth Quarter 2018

On a GAAP basis, revenues for the quarter totaled $655.4 million, increasing $50.5 million, or 8.4%, compared to $604.9 million in the prior-year period. Net income was $43.5 million, an increase of $13.0 million, or 42.6%, compared to $30.5 million in the year-ago period. Net income in the fourth quarter 2017 was negatively impacted by a one-time charge related to the enactment of the Tax Cuts and Jobs Act (“TCJA”). Net income as a percentage of revenues was 6.6% compared to 5.0% in the prior-year period. EPS totaled $0.87 compared to $0.51 in the fourth quarter 2017.

Adjusted revenues for the quarter totaled $654.1 million, increasing $49.2 million, or 8.1%, from $604.9 million in the prior-year period. Adjusted EBITDA margin was 18.6%, increasing 40 basis points compared to 18.2% in the year-ago period. Adjusted EPS was $1.66, increasing 2.5% compared to $1.62 in the fourth quarter 2017. 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 fourth quarter when adjusted for unfavorable movements in foreign currency rates and copper prices. I am pleased with the progress we are making on our manufacturing capacity constraints. Going forward we expect significantly reduced lead times and inventory levels.”

Full Year 2018

On a GAAP basis, revenue for the year totaled $2.585 billion, up 8.2% compared to $2.389 billion in the full year 2017. Net income was $160.9 million, an increase of $67.7 million compared to $93.2 million in 2017. Net income included a $46.1 million after-tax gain from patent litigation. Net income as a percentage of revenue was 6.2% for the full year compared to 3.9% in 2017. EPS was $3.08 compared to $1.37 in 2017.

Adjusted revenues for the year totaled $2.592 billion, an increase of $203 million, or 8.5%, over the adjusted revenues of $2.389 billion in 2017. Adjusted EBITDA margin was 18.3%, up 10 basis points compared to 18.2% in 2017. Adjusted net income was $289.6 million, increasing $24.6 million, or 9.3%, compared to $265.0 million in 2017. Adjusted EPS increased 13.3% to $6.06, compared to $5.35 in 2017.

Mr. Stroup remarked, “2018 was highlighted by record revenues and 13% growth in both earnings per share and cash flow from operations. During the year, we continued to strengthen our balance sheet and execute our disciplined capital deployment strategy, which included increased investments in organic growth initiatives, record share repurchases, and two successful strategic acquisitions.”








Outlook

“We entered 2019 facing an increased level of global economic uncertainty and some secular headwinds in our Enterprise Segment. This will pressure our 2019 revenue and earnings growth rates, but I am confident that we have the strategy, balance sheet, and proven Lean enterprise system to drive meaningful growth and margin expansion longer-term”, said Mr. Stroup.
 
The Company expects first quarter 2019 revenue to be $564 - $594 million. For the full year ending December 31, 2019, the Company expects revenue to be $2.495 - $2.595 billion. This full year 2019 guidance reflects year-over-year revenue headwinds of approximately $56 million related to unfavorable foreign currency rates and the previously disclosed revenue recognition timing.

The Company expects first quarter 2019 GAAP EPS to be $0.23 - $0.43. For the full year ending December 31, 2019, the Company expects GAAP EPS to be of $3.84 - $4.49.

The Company expects first quarter 2019 adjusted EPS to be $0.80 - $1.00. For the full year ending December 31, 2019, the Company expects adjusted EPS of $5.50 - $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 877-260-1479; the dial-in number for participants outside the U.S. is 334-323-0522. 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
 
 
 
Three Months Ended
 
Twelve Months Ended
 
 
December 31, 2018
 
December 31, 2017
 
December 31, 2018
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
 
 
 
(In thousands, except per share data)
Revenues
 
$
655,390

 
$
604,884

 
$
2,585,368

 
$
2,388,643

Cost of sales
 
(396,025
)
 
(375,458
)
 
(1,576,956
)
 
(1,453,890
)
Gross profit
 
259,365

 
229,426

 
1,008,412

 
934,753

Selling, general and administrative expenses
 
(129,488
)
 
(114,236
)
 
(525,918
)
 
(461,022
)
Research and development expenses
 
(32,804
)
 
(29,222
)
 
(140,585
)
 
(134,330
)
Amortization of intangibles
 
(23,839
)
 
(26,053
)
 
(98,829
)
 
(103,997
)
Gain from patent litigation
 
—

 
—

 
62,141

 
—

Operating income
 
73,234

 
59,915

 
305,221

 
235,404

Interest expense, net
 
(15,021
)
 
(16,477
)
 
(61,559
)
 
(82,901
)
Non-operating pension benefit (cost)
 
(1,166
)
 
166

 
(342
)
 
(714
)
Loss on debt extinguishment
 
—

 
—

 
(22,990
)
 
(52,441
)
Income before taxes
 
57,047

 
43,604

 
220,330

 
99,348

Income tax expense
 
(13,556
)
 
(13,168
)
 
(59,619
)
 
(6,495
)
Net income
 
43,491

 
30,436

 
160,711

 
92,853

Less: Net loss attributable to noncontrolling interest
 
(35
)
 
(83
)
 
(183
)
 
(357
)
Net income attributable to Belden
 
43,526

 
30,519

 
160,894

 
93,210

Less: Preferred stock dividends
 
8,733

 
8,733

 
34,931

 
34,931

Net income attributable to Belden common stockholders
 
$
34,793

 
$
21,786

 
$
125,963

 
$
58,279

 
 
 
 
 
 
 
 
 
Weighted average number of common shares and equivalents:
 
 
 
 
 
 
 
 
Basic
 
39,830

 
42,126

 
40,675

 
42,220

Diluted
 
40,031

 
42,581

 
40,956

 
42,643

 
 
 
 
 
 
 
 
 
Basic income per share attributable to Belden common stockholders:
 
$
0.87

 
$
0.52

 
$
3.10

 
$
1.38

 
 
 
 
 
 
 
 
 
Diluted income per share attributable to Belden common stockholders:
 
$
0.87

 
$
0.51

 
$
3.08

 
$
1.37

 
 
 
 
 
 
 
 
 
Common stock dividends declared per share
 
$
0.05

 
$
0.05

 
$
0.20

 
$
0.20






BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)
 
 
 
Enterprise
Solutions
 
Industrial
Solutions
 
Total 
Segments
 
 
 
 
 
 
 
 
(In thousands, except percentages)
 
 
 
 
 
 
 
For the three months ended December 31, 2018
 
 
 
 
 
 
Segment Revenues
 
$
379,413

 
$
274,700

 
$
654,113

Segment EBITDA
 
67,713

 
54,323

 
122,036

Segment EBITDA margin
 
17.8
%
 
19.8
%
 
18.7
%
Depreciation expense
 
7,396

 
4,657

 
12,053

Amortization of intangibles
 
10,643

 
13,196

 
23,839

Amortization of software development intangible assets
 
836

 
8

 
844

Severance, restructuring, and acquisition integration costs
 
10,614

 
989

 
11,603

Purchase accounting effects of acquisitions
 
1,138

 
—

 
1,138

Deferred revenue adjustments
 
(1,277
)
 
—

 
(1,277
)
 
 
 
 
 
 
 
For the three months ended December 31, 2017
 
 
 
 
 
 
Segment Revenues
 
$
332,381

 
$
272,503

 
$
604,884

Segment EBITDA
 
48,485

 
60,515

 
109,000

Segment EBITDA margin
 
14.6
%
 
22.2
%
 
18.0
%
Depreciation expense
 
6,143

 
4,860

 
11,003

Amortization of intangibles
 
12,813

 
13,240

 
26,053

Amortization of software development intangible assets
 
56

 
—

 
56

Severance, restructuring, and acquisition integration costs
 
5,342

 
4,609

 
9,951

Purchase accounting effects of acquisitions
 
2,044

 
—

 
2,044

 
 
 
 
 
 
 
For the twelve months ended December 31, 2018
 
 
 
 
 
 
Segment Revenues
 
$
1,522,178

 
$
1,069,802

 
$
2,591,980

Segment EBITDA
 
267,656

 
207,724

 
475,380

Segment EBITDA margin
 
17.6
%
 
19.4
%
 
18.3
%
Depreciation expense
 
28,861

 
18,754

 
47,615

Amortization of intangibles
 
45,944

 
52,885

 
98,829

Amortization of software development intangible assets
 
2,180

 
8

 
2,188

Severance, restructuring, and acquisition integration costs
 
57,563

 
11,050

 
68,613

Purchase accounting effects of acquisitions
 
3,497

 
—

 
3,497

Deferred revenue adjustments
 
6,612

 
—

 
6,612

 
 
 
 
 
 
 
For the twelve months ended December 31, 2017
 
 
 
 
 
 
Segment Revenues
 
$
1,356,305

 
$
1,032,338

 
$
2,388,643

Segment EBITDA
 
216,558

 
214,190

 
430,748

Segment EBITDA margin
 
16.0
%
 
20.7
%
 
18.0
%
Depreciation expense
 
26,272

 
19,325

 
45,597

Amortization of intangibles
 
51,054

 
52,943

 
103,997

Amortization of software development intangible assets
 
56

 
—

 
56

Severance, restructuring, and acquisition integration costs
 
29,043

 
13,747

 
42,790

Purchase accounting effects of acquisitions
 
6,133

 
—

 
6,133





BELDEN INC.
OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS
(Unaudited)
 
 
 
Three Months Ended
 
Twelve Months Ended
 
 
December 31, 2018
 
December 31, 2017
 
December 31, 2018
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Total Segment Revenues
 
$
654,113

 
$
604,884

 
$
2,591,980

 
$
2,388,643

    Deferred revenue adjustments
 
1,277

 
—

 
(6,612
)
 
—

Consolidated Revenues
 
$
655,390

 
$
604,884

 
$
2,585,368

 
$
2,388,643

 
 
 
 
 
 
 
 
 
Total Segment EBITDA
 
$
122,036

 
$
109,000

 
$
475,380

 
$
430,748

    Eliminations
 
(602
)
 
(632
)
 
(2,218
)
 
(3,260
)
    Total non-operating pension benefit (cost)
 
(1,166
)
 
166

 
(342
)
 
(714
)
    Non-operating pension settlement loss
 
1,342

 
—

 
1,342

 
—

    Income from equity method investment
 
—

 
1,667

 
—

 
7,502

Consolidated Adjusted EBITDA (1)
 
121,610

 
110,201

 
474,162

 
434,276

    Amortization of intangibles
 
(23,839
)
 
(26,053
)
 
(98,829
)
 
(103,997
)
    Severance, restructuring, and acquisition integration costs
 
(11,603
)
 
(9,951
)
 
(68,613
)
 
(42,790
)
    Interest expense, net
 
(15,021
)
 
(16,477
)
 
(61,559
)
 
(82,901
)
    Depreciation expense
 
(12,053
)
 
(11,003
)
 
(47,615
)
 
(45,597
)
    Loss on debt extinguishment
 
—

 
—

 
(22,990
)
 
(52,441
)
    Deferred revenue adjustments
 
1,277

 
—

 
(6,612
)
 
—

    Purchase accounting effects related to acquisitions
 
(1,138
)
 
(2,044
)
 
(3,497
)
 
(6,133
)
Costs related to patent litigation
 
—

 
—

 
(2,634
)
 
—

    Amortization of software development intangible assets
 
(844
)
 
(56
)
 
(2,188
)
 
(56
)
    Non-operating pension settlement loss
 
(1,342
)
 
—

 
(1,342
)
 
—

    Loss on sale of assets
 
—

 
(1,013
)
 
(94
)
 
(1,013
)
    Gain from patent litigation
 
—

 
—

 
62,141

 
—

Consolidated income before taxes
 
$
57,047

 
$
43,604

 
$
220,330

 
$
99,348

 
(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,
2018
 
December 31,
2017
 
 
(Unaudited)
 
 
 
 
(In thousands)
ASSETS
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
420,610

 
$
561,108

Receivables, net
 
465,939

 
473,570

Inventories, net
 
316,418

 
297,226

Other current assets
 
55,757

 
40,167

            Total current assets
 
1,258,724

 
1,372,071

Property, plant and equipment, less accumulated depreciation
 
365,970

 
337,322

Goodwill
 
1,557,653

 
1,478,257

Intangible assets, less accumulated amortization
 
511,093

 
545,207

Deferred income taxes
 
56,018

 
42,549

Other long-lived assets
 
29,863

 
65,207

 
 
$
3,779,321

 
$
3,840,613

 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
 
 
 
 
Accounts payable
 
$
352,646

 
$
376,277

Accrued liabilities
 
364,276

 
302,651

Total current liabilities
 
716,922

 
678,928

Long-term debt
 
1,463,200

 
1,560,748

Postretirement benefits
 
132,791

 
102,085

Deferred income taxes
 
39,943

 
27,713

Other long-term liabilities
 
38,877

 
36,273

Stockholders’ equity:
 
 
 
 
     Preferred stock
 
1

 
1

Common stock
 
503

 
503

Additional paid-in capital
 
1,139,395

 
1,123,832

Retained earnings
 
922,000

 
833,610

Accumulated other comprehensive loss
 
(74,907
)
 
(98,026
)
Treasury stock
 
(599,845
)
 
(425,685
)
Total Belden stockholders’ equity
 
1,387,147

 
1,434,235

Noncontrolling interest
 
441

 
631

Total stockholders’ equity
 
1,387,588

 
1,434,866

 
 
$
3,779,321

 
$
3,840,613







BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
 
 
 
Twelve Months Ended
 
 
December 31, 2018
 
December 31, 2017
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
(In thousands)
Cash flows from operating activities:
 
 
 
 
Net income
 
$
160,711

 
$
92,853

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
 
148,632

 
149,650

Share-based compensation
 
18,497

 
14,647

Loss on debt extinguishment
 
22,990

 
52,441

Deferred income tax expense (benefit)
 
11,300

 
(24,098
)
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses:
 
 
 
 
Receivables
 
(21,748
)
 
(24,931
)
Inventories
 
(14,779
)
 
(84,088
)
Accounts payable
 
(29,401
)
 
100,752

Accrued liabilities
 
17,238

 
(25,076
)
Income taxes
 
(4,390
)
 
5,001

Other assets
 
(18,748
)
 
(13,255
)
Other liabilities
 
(1,082
)
 
11,404

Net cash provided by operating activities
 
289,220

 
255,300

Cash flows from investing activities:
 
 
 
 
Capital expenditures
 
(97,847
)
 
(64,261
)
Cash used to acquire businesses, net of cash acquired
 
(84,580
)
 
(166,896
)
Proceeds from disposal of tangible assets
 
1,580

 
1,039

Proceeds from disposal of business
 
40,171

 
—

Net cash used for investing activities
 
(140,676
)
 
(230,118
)
Cash flows from financing activities:
 
 
 
 
Payments under borrowing arrangements
 
(484,757
)
 
(1,105,892
)
Payments under share repurchase program
 
(175,000
)
 
(25,000
)
Cash dividends paid
 
(43,169
)
 
(43,376
)
Debt issuance costs paid
 
(7,609
)
 
(17,316
)
Withholding tax payments for share-based payment awards
 
(2,094
)
 
(6,564
)
Redemption of stockholders' rights agreement
 
(411
)
 
—

Borrowings under credit arrangements
 
431,270

 
866,700

Net cash used for financing activities
 
(281,770
)
 
(331,448
)
Effect of foreign currency exchange rate changes on cash and cash equivalents
 
(7,272
)
 
19,258

Decrease in cash and cash equivalents
 
(140,498
)
 
(287,008
)
Cash and cash equivalents, beginning of period
 
561,108

 
848,116

Cash and cash equivalents, end of period
 
$
420,610

 
$
561,108





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, 2018
 
December 31, 2017
 
December 31, 2018
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
(In thousands, except percentages and per share amounts)
GAAP revenues
 
$
655,390

 
$
604,884

 
$
2,585,368

 
$
2,388,643

Deferred revenue adjustments
 
(1,277
)
 
—

 
6,612

 
—

Adjusted revenues
 
$
654,113

 
$
604,884

 
$
2,591,980

 
$
2,388,643

 
 
 
 
 
 
 
 
 
GAAP gross profit
 
$
259,365

 
$
229,426

 
$
1,008,412

 
$
934,753

Severance, restructuring, and acquisition integration costs
 
6,648

 
6,039

 
28,130

 
32,562

Deferred revenue adjustments
 
(1,277
)
 
—

 
6,612

 
—

Purchase accounting effects related to acquisitions
 
—

 
2,044

 
1,833

 
6,133

Amortization of software development intangible assets
 
844

 
56

 
2,188

 
56

Accelerated depreciation
 
—

 
—

 
—

 
798

Adjusted gross profit
 
$
265,580

 
$
237,565

 
$
1,047,175

 
$
974,302

 
 
 
 
 
 
 
 
 
GAAP gross profit margin
 
39.6
%
 
37.9
%
 
39.0
%
 
39.1
%
Adjusted gross profit margin
 
40.6
%
 
39.3
%
 
40.4
%
 
40.8
%
 
 
 
 
 
 
 
 
 
GAAP selling, general and administrative expenses
 
$
(129,488
)
 
$
(114,236
)
 
$
(525,918
)
 
$
(461,022
)
Severance, restructuring, and acquisition integration costs
 
4,752

 
3,727

 
35,039

 
9,991

Costs related to patent litigation
 
—

 
—

 
2,634

 
—

Purchase accounting effects related to acquisitions
 
1,138

 
—

 
1,664

 
—

    Loss on sale of assets
 
—

 
1,013

 
94

 
1,013

Adjusted selling, general and administrative expenses
 
$
(123,598
)
 
$
(109,496
)
 
$
(486,487
)
 
$
(450,018
)
 
 
 
 
 
 
 
 
 
GAAP research and development expenses
 
$
(32,804
)
 
$
(29,222
)
 
$
(140,585
)
 
$
(134,330
)



Severance, restructuring, and acquisition integration costs
 
203

 
185

 
5,444

 
237

Adjusted research and development expenses
 
$
(32,601
)
 
$
(29,037
)
 
$
(135,141
)
 
$
(134,093
)
 
 
 
 
 
 
 
 
 
GAAP net income attributable to Belden
 
$
43,526

 
$
30,519

 
$
160,894

 
$
93,210

Interest expense, net
 
15,021

 
16,477

 
61,559

 
82,901

Income tax expense
 
13,556

 
13,168

 
59,619

 
6,495

Loss on debt extinguishment
 
—

 
—

 
22,990

 
52,441

Noncontrolling interest
 
(35
)
 
(83
)
 
(183
)
 
(357
)
Total non-operating adjustments
 
28,542

 
29,562

 
143,985

 
141,480

 
 
 
 
 
 
 
 
 
Amortization of intangible assets
 
23,839

 
26,053

 
98,829

 
103,997

Severance, restructuring, and acquisition integration costs
 
11,603

 
9,951

 
68,613

 
42,790

Deferred revenue adjustments
 
(1,277
)
 
—

 
6,612

 
—

Costs related to patent litigation
 
—

 
—

 
2,634

 
—

Purchase accounting effects related to acquisitions
 
1,138

 
2,044

 
3,497

 
6,133

Amortization of software development intangible assets
 
844

 
56

 
2,188

 
56

    Non-operating pension settlement loss
 
1,342

 
—

 
1,342

 
—

Loss on sale of assets
 
—

 
1,013

 
94

 
1,013

Accelerated depreciation
 
—

 
—

 
—

 
798

    Gain from patent litigation
 
—

 
—

 
(62,141
)
 
—

Total operating income adjustments
 
37,489

 
39,117

 
121,668

 
154,787

Depreciation expense
 
12,053

 
11,003

 
47,615

 
44,799

 
 
 
 
 
 
 
 
 
Adjusted EBITDA
 
$
121,610

 
$
110,201

 
$
474,162

 
$
434,276

 
 
 
 
 
 
 
 
 
GAAP net income margin
 
6.6
%
 
5.0
%
 
6.2
%
 
3.9
%
Adjusted EBITDA margin
 
18.6
%
 
18.2
%
 
18.3
%
 
18.2
%
 
 
 
 
 
 
 
 
 
GAAP net income attributable to Belden
 
$
43,526

 
$
30,519

 
$
160,894

 
$
93,210

Operating income adjustments from above
 
37,489

 
39,117

 
121,668

 
154,787

Loss on debt extinguishment
 
—

 
—

 
22,990

 
52,441

Tax effect of adjustments above
 
(7,979
)
 
(19,046
)
 
(25,838
)
 
(63,796
)
Impact of Tax Cuts and Jobs Act enactment
 
4,689

 
28,440

 
9,997

 
28,440

Amortization expense attributable to noncontrolling interest, net of tax
 
(16
)
 
(16
)
 
(66
)
 
(63
)
Adjusted net income attributable to Belden
 
$
77,709

 
$
79,014

 
$
289,645

 
$
265,019

 
 
 
 
 
 
 
 
 
GAAP net income attributable to Belden
 
$
43,526

 
$
30,519

 
$
160,894

 
$
93,210

Less: Preferred stock dividends
 
8,733

 
8,733

 
34,931

 
34,931

GAAP net income attributable to Belden common stockholders
 
$
34,793

 
$
21,786

 
$
125,963

 
$
58,279

 
 
 
 
 
 
 
 
 
Adjusted net income attributable to Belden common stockholders
 
$
77,709

 
$
79,014

 
$
289,645

 
$
265,019

 
 
 
 
 
 
 
 
 
GAAP income per diluted share attributable to Belden common stockholders
 
$
0.87

 
$
0.51

 
$
3.08

 
$
1.37

Adjusted income per diluted share attributable to Belden common stockholders
 
$
1.66

 
$
1.62

 
$
6.06

 
$
5.35

 
 
 
 
 
 
 
 
 
GAAP diluted weighted average shares
 
40,031

 
42,581

 
40,956

 
42,643

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

 
6,268

 
6,857

 
6,857

Adjusted diluted weighted average shares
 
46,888

 
48,849

 
47,813

 
49,500






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, 2018
 
December 31, 2017
 
December 31, 2018
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
GAAP net cash provided by operating activities
 
$
188,361

 
$
151,685

 
$
289,220

 
$
255,300

Capital expenditures, net of proceeds from the disposal of tangible assets
 
(34,372
)
 
(29,807
)
 
(96,267
)
 
(63,222
)
Non-GAAP free cash flow
 
$
153,989

 
$
121,878

 
$
192,953

 
$
192,078



BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
2019 EARNINGS GUIDANCE
 
 
  
Year Ended
December 31, 2019
 
Three Months Ended March 31, 2019
 
 
 
 
 
Adjusted income per diluted share attributable to Belden common stockholders
  
$5.50 - $6.15
 
$0.80 - $1.00
     Amortization of intangible assets
  
(1.57)
 
(0.48)
     Severance, restructuring, and acquisition integration costs
 
(0.06)
 
(0.06)
     Purchase accounting effects of acquisitions
 
(0.03)
 
(0.03)
GAAP income per diluted share attributable to Belden common stockholders
  
$3.84 - $4.49
 
$0.23 - $0.43
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 first 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 impact of a challenging global economy or a downturn in served markets; the competitiveness of the global broadcast, enterprise, and industrial markets; 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 achieve our strategic priorities in emerging markets; 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; 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 increased influence of chief information officers and similar high-level executives; 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; the cost and availability of raw materials including copper, plastic compounds, electronic components, and other materials; difficulty in forecasting revenue due to the unpredictable timing of large orders; 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 changes in global tariffs and trade agreements; 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 Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, filed with the SEC on November 5, 2018. 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