EX-99.1 2 c56148exv99w1.htm EX-99.1 exv99w1
         
Exhibit 99.1
             
(BELDEN LOGO)
  7733 Forsyth Boulevard
Suite 800
St. Louis, Missouri 63105
  Phone: 314.854.8000
Fax: 314.854.8003

www.Belden.com
   
 
        News Release
         
          From:   Belden Investor Relations
314.854.8054
Belden Announces Fourth Quarter and Full Year 2009 Results
Fourth Quarter and Full Year 2009 Highlights
    Adjusted income from continuing operations per diluted share was $0.39 in the quarter and $1.16 for the full year.
 
    Fourth quarter adjusted operating margin was 8.5 percent, a 410 basis point improvement over the prior year period.
 
    Working capital and inventory turns improved 1.5 and 0.7 turns on a sequential basis to 10.9 and 7.3 turns, respectively.
 
    Free cash flow (cash from operations less capital expenditures) for the fourth quarter and for the full year was $17.7 million and $111.4 million, respectively.
 
    Revenue and EPS, adjusted for certain items, for the first quarter of 2010 are expected to be between $370 million and $380 million and $0.20 and $0.25 per share, respectively.
St. Louis, Missouri — Thursday, February 4, 2010 — Belden (NYSE:BDC), a leader in comprehensive cable, wireless signal, industrial networking and other transmission solutions, today announced results of the fourth quarter and full year ended December 31, 2009.
Fourth Quarter 2009 Results
The Company reported fourth quarter 2009 revenue of $387.8 million with an operating profit of $16.6 million. Net income during the fourth quarter of 2009 was $19.9 million, or $0.42 per diluted share. Revenue in the fourth quarter of 2008 was $417.3 million with an operating loss of $482.4 million and a net loss of $448.1 million, or a loss of $9.641 per diluted share.
Adjusted operating income in the fourth quarter of 2009 was $33.0 million or 8.5 percent of revenue, compared to 4.4 percent a year ago. Adjusted income from continuing operations in the fourth quarter was $18.4 million or $0.39 per diluted share, compared to $12.2 million or $0.26 per diluted share in the fourth quarter of 2008. See the attached schedule, Adjusted Operating Results, for a reconciliation of GAAP results to adjusted results.
 
1   In 2008, in connection with its required annual goodwill and other asset impairment testing, the Company recorded a non-cash goodwill and other asset impairment charge of $461.1 million or $9.47 per share. The impairment charge resulted primarily from the significant deterioration of the equity markets that occurred in the fourth quarter of 2008.

 


 

Full-Year Results
Revenue of $1.4 billion in the year ended December 31, 2009, was approximately 29 percent lower than 2008 revenue of $2.0 billion. Operating income in 2009 was $1.6 million, and the net loss was $24.9 million, or a loss of $0.53 per diluted share. This compares to an operating loss of $342.2 million, and a net loss of $361.8 million or a loss of $8.10 per diluted share in 2008.
Adjusted operating income for fiscal 2009 was $105.5 million, and adjusted income from continuing operations was $54.4 million, or $1.16 per share. This compares to adjusted operating income of $196.5 million and adjusted income from continuing operations of $127.1 million, or $2.68 per share in 2008.
Discussing the results, John Stroup, President and Chief Executive Officer of Belden said, “Although we experienced a historic downturn as a result of the global economic crisis in 2009, our decision to take direct, aggressive restructuring actions early in the year allowed us to significantly improve our cost structure and exit the year a much stronger company. I would like to thank all of our associates for their hard work throughout this process.
“As a result of those efforts we yielded consecutive quarters of double-digit operating margins in our EMEA segment as well as sequential improvement in adjusted operating earnings in our Wireless segment in the second half of the year. Furthermore, cash flows remained very strong with full year free cash flow exceeding $111 million, which generated an ending cash balance of more than $308 million.
“Additionally we are very pleased to have recently announced the hiring of two new members to our senior leadership team, Dhrupad Trivedi and Christoph Gusenleitner, who will lead our Wireless and EMEA segments, respectively. We are fortunate to welcome both Dhrupad and Christoph aboard and believe their combined expertise will be a valuable asset as we continue to grow the Company and improve shareholder value.”
Outlook
The Company expects adjusted first quarter revenue and EPS to be between $370 million and $380 million and $0.20 and $0.25 per share, respectively. For the year, the Company expects adjusted revenue and EPS to be between $1.50 billion and $1.55 billion and $1.35 and $1.50, respectively. Both periods exclude the impact of the deferral of revenues and cost of goods sold with respect to its wireless segment, the impact of charges associated with already announced restructuring actions, and discontinued operations.

“Our markets are stable, but the timing and magnitude of the recovery remains uncertain. Therefore, our focus remains on those things within our control, including our Lean Enterprise and Market Delivery System,” commented Stroup. “The business is well-positioned to deliver expanded profitability and solid cash flow and to further benefit from the economic recovery whenever it occurs.”

Page 2


 

Forward Looking Statements
Statements in this release other than historical facts are “forward looking statements” made in reliance upon the safe harbor of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statements regarding future revenues, costs and expenses, operating income, earnings per share, margins, cash flows, dividends and capital expenditures. These forward looking statements are based on forecasts and projections about the industries served by the Company and about general economic conditions. They reflect management’s beliefs and expectations. They are not guarantees of future performance and they involve risk and uncertainty. The Company’s actual results may differ materially from these expectations. The current global economic slowdown has adversely affected our results of operations and may continue to do so. Turbulence in financial markets may increase our borrowing costs. Additional factors that may cause actual results to differ from the Company’s expectations include the Company’s reliance on key distributors in marketing products; the Company’s ability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control and productivity improvement programs); changes in the level of economic activity in the Company’s major geographic markets; difficulties in realigning manufacturing capacity and capabilities among the Company’s global manufacturing facilities; the competitiveness of the global cable, connectivity and wireless industries; variability in the Company’s quarterly and annual effective tax rates; changes in accounting rules and interpretation of these rules which may affect the Company’s reported earnings; changes in currency exchange rates and political and economic uncertainties in the countries where the Company conducts business; demand for the Company’s products; the cost and availability of materials including copper, plastic compounds derived from fossil fuels, and other materials; energy costs; the Company’s ability to integrate successfully acquired businesses; the ability of the Company to develop and introduce new products; the Company having to recognize charges that would reduce income as a result of impairing goodwill and other intangible assets; 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, 2008, filed with the SEC on February 27, 2009. Belden disclaims any duty to update any forward looking statements as a result of new information, future developments, or otherwise.
About Belden
St. Louis-based Belden is a leader in comprehensive cable, wireless signal, industrial networking and other transmission solutions. It has approximately 6,200 employees, and provides value for industrial automation, enterprise, education, healthcare, entertainment and broadcast, sound and security, transportation, infrastructure, consumer electronics and other industries. Belden has manufacturing capabilities throughout North America and Europe and a market presence in nearly every region of the world. Belden was founded in 1902, and today is a leader with some of the strongest brands in the signal transmission industry. For more information, visit www.belden.com.
Contact:
Belden Investor Relations
314-854-8054

Page 3


 

BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)
                                 
    Three Months Ended     Twelve Months Ended  
    December 31,     December 31,  
    2009     2008     2009     2008  
    (In thousands, except per share data)  
Revenues
  $ 387,770     $ 417,267     $ 1,415,262     $ 2,005,890  
Cost of sales
    (275,356 )     (319,527 )     (1,002,064 )     (1,442,208 )
 
                       
Gross profit
    112,414       97,740       413,198       563,682  
Selling, general and administrative expenses
    (73,907 )     (94,897 )     (289,672 )     (362,122 )
Research and development
    (16,032 )     (14,038 )     (60,870 )     (50,089 )
Amortization of intangibles
    (4,321 )     (4,154 )     (16,080 )     (13,440 )
Loss on sale of assets
          (2,843 )     (17,184 )     (3,727 )
Goodwill and other asset impairment
    (1,575 )     (464,190 )     (27,751 )     (476,492 )
 
                       
Operating income (loss)
    16,579       (482,382 )     1,641       (342,188 )
Interest expense
    (13,064 )     (9,642 )     (41,857 )     (37,908 )
Interest income
    245       1,242       1,046       5,300  
Other income
    1,894       2,359       4,756       6,326  
 
                       
Income (loss) from continuing operations before taxes
    5,654       (488,423 )     (34,414 )     (368,470 )
Income tax benefit
    15,657       40,373       10,909       6,644  
 
                       
Income (loss) from continuing operations
    21,311       (448,050 )     (23,505 )     (361,826 )
Loss from discontinued operations, net of tax
    (1,396 )           (1,396 )      
 
                       
Net income (loss)
  $ 19,915     $ (448,050 )   $ (24,901 )   $ (361,826 )
 
                       
 
                               
Weighted average number of common shares
                               
and equivalents:
                               
Basic
    46,650       46,488       46,594       44,692  
Diluted
    47,315       46,488       46,594       44,692  
 
                               
Basic income (loss) per share:
                               
Continuing operations
  $ 0.46     $ (9.64 )   $ (0.50 )   $ (8.10 )
Discontinued operations
    (0.03 )           (0.03 )      
 
                       
Net income (loss)
  $ 0.43     $ (9.64 )   $ (0.53 )   $ (8.10 )
 
                       
 
                               
Diluted income (loss) per share:
                               
Continuing operations
  $ 0.45     $ (9.64 )   $ (0.50 )   $ (8.10 )
Discontinued operations
    (0.03 )           (0.03 )      
 
                       
Net income (loss)
  $ 0.42     $ (9.64 )   $ (0.53 )   $ (8.10 )
 
                       
 
                               
Dividends declared per share
  $ 0.05     $ 0.05     $ 0.20     $ 0.20  

 


 

BELDEN INC.
OPERATING SEGMENT INFORMATION

(Unaudited)
                                 
    External                     Operating  
    Customer     Affiliate     Total     Income  
    Revenues     Revenues     Revenues     (Loss)  
            (In thousands)          
Three Months Ended December 31, 2009
                               
 
                               
Americas
  $ 205,490     $ 11,616     $ 217,106     $ 27,992  
Wireless
    13,100             13,100       (5,381 )
EMEA
    89,886       16,575       106,461       7,797  
Asia Pacific
    79,294             79,294       10,498  
 
                       
Total Segments
    387,770       28,191       415,961       40,906  
Corporate expenses
                      (13,570 )
Eliminations
          (28,191 )     (28,191 )     (10,757 )
 
                       
Total
  $ 387,770     $     $ 387,770     $ 16,579  
 
                       
 
                               
Three Months Ended December 31, 2008
                               
 
                               
Americas
  $ 228,840     $ 10,499     $ 239,339     $ (14,735 )
Wireless
    5,930       260       6,190       (45,533 )
EMEA
    104,965       20,156       125,121       (271,285 )
Asia Pacific
    77,532             77,532       (104,910 )
 
                       
Total Segments
    417,267       30,915       448,182       (436,463 )
Corporate expenses
                      (37,842 )
Eliminations
          (30,915 )     (30,915 )     (8,077 )
 
                       
Total
  $ 417,267     $     $ 417,267     $ (482,382 )
 
                       
 
                               
Twelve Months Ended December 31, 2009
                               
 
                               
Americas
  $ 766,569     $ 43,489     $ 810,058     $ 117,324  
Wireless
    53,247             53,247       (28,325 )
EMEA
    345,196       55,256       400,452       (43,232 )
Asia Pacific
    250,250             250,250       28,794  
 
                       
Total Segments
    1,415,262       98,745       1,514,007       74,561  
Corporate expenses
                      (41,378 )
Eliminations
          (98,745 )     (98,745 )     (31,542 )
 
                       
Total
  $ 1,415,262     $     $ 1,415,262     $ 1,641  
 
                       
 
                               
Twelve Months Ended December 31, 2008
                               
 
                               
Americas
  $ 1,041,247     $ 61,568     $ 1,102,815     $ 106,893  
Wireless
    13,722       298       14,020       (54,317 )
EMEA
    577,672       85,639       663,311       (218,382 )
Asia Pacific
    373,249       111       373,360       (66,093 )
 
                       
Total Segments
    2,005,890       147,616       2,153,506       (231,899 )
Corporate expenses
                      (74,889 )
Eliminations
          (147,616 )     (147,616 )     (35,400 )
 
                       
Total
  $ 2,005,890     $     $ 2,005,890     $ (342,188 )
 
                       

 


 

BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(Unaudited)
                 
    Twelve Months Ended  
    December 31, 2009     December 31, 2008  
    (In thousands)  
Cash flows from operating activities:
               
Net loss
  $ (24,901 )   $ (361,826 )
Adjustments to reconcile net loss to net cash provided by operating activities:
               
Depreciation and amortization
    55,857       56,836  
Goodwill and other asset impairment
    27,751       476,492  
Loss on disposal of tangible assets
    17,184       3,727  
Share-based compensation
    11,748       13,568  
Provision for inventory obsolescence
    4,550       12,994  
Tax deficiency (benefit) related to share-based compensation
    1,564       (1,279 )
Amortization of discount on long-term debt
    210       1,256  
Deferred income tax benefit
    (23,421 )     (37,803 )
Pension funding in excess of pension expense
    (8,973 )     (6,917 )
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses:
               
Receivables
    52,369       73,526  
Inventories
    50,645       28,188  
Deferred cost of sales
    (1,036 )     (7,270 )
Accounts payable
    9,728       (35,666 )
Accrued liabilities
    (33,483 )     (14,042 )
Deferred revenue
    2,564       18,266  
Accrued taxes
    7,597       (31,562 )
Other assets
    5,260       (1,533 )
Other liabilities
    (3,403 )     (13,081 )
 
           
Net cash provided by operating activities
    151,810       173,874  
 
Cash flows from investing activities:
               
Capital expenditures
    (40,377 )     (53,561 )
Cash used to invest in and acquire businesses
    (20,703 )     (147,384 )
Proceeds from disposal of tangible assets
    2,031       40,898  
 
           
Net cash used for investing activities
    (59,049 )     (160,047 )
 
Cash flows from financing activities:
               
Borrowings under credit arrangements
    193,732       240,000  
Payments under borrowing arrangements
    (193,732 )     (110,000 )
Debt issuance costs
    (11,810 )      
Cash dividends paid
    (9,373 )     (8,926 )
Tax benefit (deficiency) related to share-based compensation
    (1,564 )     1,279  
Proceeds from exercise of stock options
    699       6,103  
Payments under share repurchase program
          (68,336 )
 
           
Net cash provided by (used for) financing activities
    (22,048 )     60,120  
 
Effect of foreign currency exchange rate changes on cash and cash equivalents
    10,753       (6,498 )
 
           
 
Increase in cash and cash equivalents
    81,466       67,449  
Cash and cash equivalents, beginning of period
    227,413       159,964  
 
                       
Cash and cash equivalents, end of period
  $ 308,879     $ 227,413  
 
           
Free cash flow is defined as net cash provided by operating activities less capital expenditures. Free cash flow was $111,433 ($151,810 - $40,377) for 2009 and $120,313 ($173,874 - $53,561) for 2008.

 


 

BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
                 
    December 31, 2009     December 31, 2008  
    (Unaudited)      
    (In thousands)  
ASSETS
Current assets:
               
Cash and cash equivalents
  $ 308,879     $ 227,413  
Receivables, net
    242,145       292,236  
Inventories, net
    151,262       216,022  
Deferred income taxes
    26,996       22,606  
Other current assets
    35,036       34,826  
 
           
 
               
Total current assets
    764,318       793,103  
 
               
Property, plant and equipment, less accumulated depreciation
    299,586       324,569  
Goodwill
    313,030       321,478  
Intangible assets, less accumulated amortization
    143,013       156,025  
Deferred income taxes
    37,205       9,830  
Other long-lived assets
    63,426       53,388  
 
           
 
               
 
  $ 1,620,578     $ 1,658,393  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
               
Current liabilities:
               
Accounts payable
  $ 169,763     $ 160,744  
Accrued liabilities
    141,922       180,801  
 
           
 
               
Total current liabilities
    311,685       341,545  
 
               
Long-term debt
    590,210       590,000  
Postretirement benefits
    121,745       120,256  
Other long-term liabilities
    45,890       35,724  
Stockholders’ equity:
               
Common stock
    503       503  
Additional paid-in capital
    591,917       585,704  
Retained earnings
    72,625       106,949  
Accumulated other comprehensive income
    14,614       10,227  
Treasury stock
    (128,611 )     (132,515 )
 
           
 
               
Total stockholders’ equity
    551,048       570,868  
 
           
 
               
 
  $ 1,620,578     $ 1,658,393  
 
           
Inventory turns are calculated by dividing annualized cost of sales for the quarter by the inventory balance at the end of the quarter. Inventory turns for the quarters ended December 31, 2009 and December 31, 2008 were 7.3 and 5.9 turns, respectively. Working capital is defined as receivables plus inventories less accounts payable and accrued liabilities (excluding current deferred revenue). Working capital turns are calculated by dividing annualized cost of sales for the quarter by the working capital balance at the end of the quarter. Working capital turns for the quarters ended December 31, 2009 and December 31, 2008 were 10.9 and 6.9 turns, respectively.

 


 

BELDEN INC.
ADJUSTED OPERATING RESULTS

(Unaudited)
In addition to reporting financial results in accordance with accounting principles generally accepted in the United States, we provide operating results adjusted for certain items including goodwill and other asset impairment, purchase accounting effects related to acquisitions (inventory cost step-up, amortization of sales backlog intangibles, and in-process research and development charges), revenue deferrals related to our Wireless segment, severance charges, adjusted depreciation, gains (losses) recognized on the disposal of tangible assets, and other restructuring costs. 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 these adjusted results are useful to investors because they help them compare our results to previous periods and provide insights into underlying trends in the business. Adjusted results should be considered only in conjunction with results reported according to accounting principles generally accepted in the United States.
                         
    As              
    Reported     Adjustments     Adjusted  
    (In thousands, except percentages and per share amounts)  
Three Months Ended December 31, 2009
                       
 
                       
Revenues
  $ 387,770     $ 1,721     $ 389,491  
 
                       
Gross profit
  $ 112,414     $ 11,457     $ 123,871  
as a percent of revenues
    29.0 %             31.8 %
 
                       
Operating income
  $ 16,579     $ 16,445     $ 33,024  
as a percent of revenues
    4.3 %             8.5 %
 
                       
Income (loss) from continuing operations
  $ 21,311     $ (2,878 )   $ 18,433  
as a percent of revenues
    5.5 %             4.7 %
 
                       
Income (loss) from continuing operations per diluted share
  $ 0.45     $ (0.06 )   $ 0.39  
 
                       
Three Months Ended December 31, 2008
                       
 
                       
Revenues
  $ 417,267     $ 9,545     $ 426,812  
 
                       
Gross profit
  $ 97,740     $ 20,279     $ 118,019  
as a percent of revenues
    23.4 %             27.7 %
 
                       
Operating income (loss)
  $ (482,382 )   $ 501,328     $ 18,946  
as a percent of revenues
    -115.6 %             4.4 %
 
                       
Income (loss) from continuing operations
  $ (448,050 )   $ 460,286     $ 12,236  
as a percent of revenues
    -107.4 %             2.9 %
 
                       
Income (loss) from continuing operations per diluted share
  $ (9.64 )   $ 9.90     $ 0.26  
Adjustments for the three months ended December 31, 2009 included pre-tax operating charges for severance and employee relocation costs, accelerated depreciation, asset impairment, contract termination costs, revenue deferrals, and other restructuring costs of $3.2 million, $1.7 million, $1.6 million, $1.6 million, $1.2 million, and $7.1 million, respectively.
Adjustments for the three months ended December 31, 2008 included pre-tax operating charges for goodwill and other asset impairment, severance, revenue deferrals, loss on sale of assets, and other restructuring costs of $464.2 million, $26.5 million, $5.8 million, $2.8 million, and $2.0 million, respectively.

 


 

                         
    As              
    Reported     Adjustments     Adjusted  
    (In thousands, except percentages and per share amounts)  
Twelve Months Ended December 31, 2009
                       
 
                       
Revenues
  $ 1,415,262     $ 2,564     $ 1,417,826  
 
                       
Gross profit
  $ 413,198     $ 40,371     $ 453,569  
as a percent of revenues
    29.2 %             32.0 %
 
                       
Operating income
  $ 1,641     $ 103,825     $ 105,466  
as a percent of revenues
    0.1 %             7.4 %
 
                       
Income (loss) from continuing operations
  $ (23,505 )   $ 77,932     $ 54,427  
as a percent of revenues
    -1.7 %             3.8 %
 
                       
Income (loss) from continuing operations per diluted share
  $ (0.50 )   $ 1.66     $ 1.16  
 
                       
Twelve Months Ended December 31, 2008
                       
 
                       
Revenues
  $ 2,005,890     $ 18,266     $ 2,024,156  
 
                       
Gross profit
  $ 563,682     $ 32,275     $ 595,957  
as a percent of revenues
    28.1 %             29.4 %
 
                       
Operating income (loss)
  $ (342,188 )   $ 538,681     $ 196,493  
as a percent of revenues
    -17.1 %             9.7 %
 
                       
Income (loss) from continuing operations
  $ (361,826 )   $ 488,896     $ 127,070  
as a percent of revenues
    -18.0 %             6.3 %
 
                       
Income (loss) from continuing operations per diluted share
  $ (8.10 )   $ 10.78     $ 2.68  
Adjustments for the twelve months ended December 31, 2009 included pre-tax operating charges for severance and employee relocations costs, asset impairment, loss on sale of assets, contract termination costs, accelerated depreciation, revenue deferrals, and other restructuring costs of $30.7 million, $27.8 million, $17.2 million, $3.8 million, $2.6 million, $1.5 million, and $20.2 million, respectively.
Adjustments for the twelve months ended December 31, 2008 included pre-tax operating charges for goodwill and other asset impairment, severance, revenue deferrals, loss on sale of assets, and other restructuring items of $476.5 million, $39.9 million, $12.1 million, $3.7 million, and $6.5 million, respectively.