EX-99.1 2 c57819exv99w1.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 Strong First Quarter 2010 Results
First Quarter 2010 Highlights
  •   Grew adjusted income from continuing operations per diluted share 81% in the quarter to $0.29 from the prior year quarter.
 
  •   Increased revenue in the quarter 22% to $400.3 million from the prior year quarter.
 
  •   Expanded first quarter adjusted operating margin to 7.8 percent, a 250 basis point improvement over the prior year quarter.
 
  •   Improved working capital and inventory turns year-over-year by 3.1 and 1.6 turns to 9.0 and 7.0 turns, respectively.
 
  •   Raised full-year adjusted revenue and EPS guidance to between $1.58 billion and $1.63 billion and between $1.45 and $1.60, respectively.
St. Louis, Missouri — Thursday, April 29, 2010 — Belden Inc., (NYSE:BDC) a leader in designing, manufacturing, and marketing cable, connectivity, and networking products in markets including industrial automation, enterprise, transportation, infrastructure, and consumer electronics, today announced results of its 2010 fiscal first quarter.
First Quarter 2010 Results
The Company reported first quarter 2010 revenue of $400.3 million and operating income of $28.1 million, compared to revenue of $328.5 million and an operating loss of $36.4 million in the first quarter of 2009. Net income during the first quarter of 2010 increased to $11.7 million, or $0.25 per diluted share, up from a net loss of $32.5 million, or ($0.70) per diluted share, in the prior year period.
Adjusted operating income in the first quarter of 2010 was $31.0 million or 7.8 percent of revenue, compared to 5.3 percent a year ago. Adjusted income from continuing operations in the first quarter was $14.0 million or $0.29 per diluted share, compared to $7.3 million or $0.16 per diluted share in the first quarter of 2009. See the attached schedule, Adjusted Operating Results, for a reconciliation of GAAP results to adjusted results.
John Stroup, President and Chief Executive Officer of Belden said, “We are pleased to report a strong first quarter despite continued weakness in non-residential spending and a strengthening U.S. dollar. I am especially pleased to report improved execution of our Market Delivery System and Lean Enterprise initiatives which drove year-over-year revenue growth and margin expansion.”

 

 

Outlook
The Company expects adjusted second quarter revenue and EPS to be between $405 million and $415 million and $0.35 and $0.40 per share, respectively. For the year, the Company expects adjusted revenue and EPS to be between $1.58 billion and $1.63 billion and $1.45 and $1.60, 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.
Stroup remarked, “Although we expect that some of our traditional cable markets will remain challenging throughout 2010, we are encouraged by our commercial execution in the quarter and by the quality of our global product portfolio.”
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, 2009, filed with the SEC on February 26, 2010. 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 Inc. designs, manufacturers, and markets cable, connectivity, and networking products in markets including industrial automation, enterprise, transportation, infrastructure, and consumer electronics. It has approximately 6,400 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 in North America, Europe, and Asia, 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 2

 

BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
                 
    Three Months Ended  
    April 4, 2010     March 29, 2009  
    (In thousands, except per share amounts)  
Revenues
   $ 400,349     $ 328,512  
Cost of sales
     (281,941 )     (244,319 )
 
            
Gross profit
     118,408       84,193  
Selling, general and administrative expenses
     (73,860 )     (76,697 )
Research and development
     (14,797 )     (16,555 )
Amortization of intangibles
     (4,266 )     (3,865 )
Income from equity method investment
     2,641       1,290  
Asset impairment
     —       (24,723 )
 
            
Operating income (loss)
     28,126       (36,357 )
Interest expense
     (12,946 )     (7,323 )
Interest income
     183       364  
Other expense
     —       (1,541 )
 
            
Income (loss) from continuing operations before taxes
     15,363       (44,857 )
Income tax benefit (expense)
     (3,480 )     12,403  
 
            
Income (loss) from continuing operations
     11,883       (32,454 )
Loss from discontinued operations, net of tax
     (136 )     —  
Net income (loss)
   $ 11,747     $ (32,454 )
 
            
 
                
Weighted average number of common shares and equivalents:
                
Basic
     46,697       46,526  
Diluted
     47,510       46,526  
 
            
 
                
Basic income (loss) per share
                
Continuing operations
   $ 0.25     $ (0.70 )
Discontinued operations
     —       —  
 
            
Net income (loss)
   $ 0.25     $ (0.70 )
 
            
 
                
Diluted income (loss) per share
                
Continuing operations
   $ 0.25     $ (0.70 )
Discontinued operations
     —       —  
 
            
Net income (loss)
   $ 0.25     $ (0.70 )
 
            
 
                
Dividends declared per share
   $ 0.05     $ 0.05  

 

 

BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)
                                 
    External                     Operating  
    Customer     Affiliate     Total     Income  
Three Months Ended April 4, 2010   Revenues     Revenues     Revenues     (Loss)  
                (In thousands)          
Americas
   $ 217,929     $ 12,737     $ 230,666     $ 31,357  
Wireless
     15,925       —       15,925       (3,169 )
EMEA
     90,550       14,743       105,293       14,580  
Asia Pacific
     75,945       —       75,945       7,526  
 
                        
Total Segments
     400,349       27,480       427,829       50,294  
Corporate expenses
                     —       (12,904 )
Eliminations
             (27,480 )     (27,480 )     (9,264 )
 
                        
Total
   $ 400,349     $ —     $ 400,349     $ 28,126  
 
                        
                                 
Three Months Ended March 29, 2009                                
Americas
   $ 182,210     $ 7,991     $ 190,201     $ 24,658  
Wireless
     12,003       —       12,003       (8,322 )
EMEA
     88,061       12,473       100,534       (41,955 )
Asia Pacific
     46,238       —       46,238       3,334  
 
                        
Total Segments
     328,512       20,464       348,976       (22,285 )
Corporate expenses
     —       —       —       (8,357 )
Eliminations
     —       (20,464 )     (20,464 )     (5,715 )
 
                              
 
                        
Total
   $ 328,512     $ —     $ 328,512     $ (36,357 )
 
                        

 

 

BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited)
                 
    Three Months Ended  
    April 4, 2010     March 29, 2009  
    (In thousands)  
Cash flows from operating activities:
                
Net income (loss)
   $ 11,747     $ (32,454 )
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
                
Depreciation and amortization
     14,614       13,288  
Share-based compensation
     3,325       2,020  
Provision for inventory obsolescence
     919       2,548  
Asset impairment
     —       24,723  
Amortization of discount on long-term debt
     106       —  
Pension funding in excess of pension expense
     (6,004 )     (2,318 )
Tax deficiency related to share-based compensation
     278       1,104  
Income from equity method investment
     (2,641 )     (1,290 )
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses:
                
Receivables
     (20,255 )     40,847  
Inventories
     (12,520 )     29,497  
Deferred cost of sales
     2,539       228  
Accounts payable
     18,429       (31,204 )
Accrued liabilities
     (15,408 )     (18,372 )
Deferred revenue
     (5,885 )     (49 )
Accrued taxes
     (1,191 )     (11,209 )
Other assets
     759       (1,057 )
Other liabilities
     (2,019 )     (3,679 )
 
            
Net cash provided by (used for) operating activities
     (13,207 )     12,623  
 
                
Cash flows from investing activities:
                
Capital expenditures
     (7,002 )     (9,554 )
Proceeds from disposal of tangible assets
     1,824       —  
Cash provided by (used for) other investing activities
     163       (18 )
 
            
Net cash used for investing activities
     (5,015 )     (9,572 )
 
                
Cash flows from financing activities:
                
Payments under borrowing arrangements
     (46,268 )     —  
Cash dividends paid
     (2,361 )     (2,373 )
Debt issuance costs
     —       (1,541 )
Tax deficiency related to share-based compensation
     (278 )     (1,104 )
Proceeds from exercise of stock options
     543       —  
 
            
Net cash used for financing activities
     (48,364 )     (5,018 )
 
                
Effect of foreign currency exchange rate changes on cash and cash equivalents
     (3,410 )     (1,003 )
 
            
 
                
Decrease in cash and cash equivalents
     (69,996 )     (2,970 )
Cash and cash equivalents, beginning of period
     308,879       227,413  
 
            
Cash and cash equivalents, end of period
   $ 238,883     $ 224,443  
 
            

 

 

BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
                 
    April 4, 2010     December 31, 2009  
    (Unaudited)          
    (In thousands)  
ASSETS
                
Current assets:
                
Cash and cash equivalents
   $ 238,883     $ 308,879  
Receivables, net
     258,061       242,145  
Inventories, net
     160,675       151,262  
Deferred income taxes
     26,687       26,996  
Other current assets
     32,388       35,036  
 
            
 
                
Total current assets
     716,694       764,318  
 
                
Property, plant and equipment, less accumulated depreciation
     289,139       299,586  
Goodwill
     308,616       313,030  
Intangible assets, less accumulated amortization
     136,046       143,013  
Deferred income taxes
     36,190       37,205  
Other long-lived assets
     63,966       63,426  
 
            
 
   $ 1,550,651     $ 1,620,578  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities:
                
Accounts payable
   $ 186,541     $ 169,763  
Accrued liabilities
     119,673       141,922  
Current maturities of long-term debt
     —       46,268  
 
            
 
                
Total current liabilities
     306,214       357,953  
 
                
Long-term debt
     544,048       543,942  
Postretirement benefits
     114,607       121,745  
Other long-term liabilities
     44,514       45,890  
Stockholders’ equity:
                
Common stock
     503       503  
Additional paid-in capital
     593,067       591,917  
Retained earnings
     81,993       72,625  
Accumulated other comprehensive income (loss)
     (7,492 )     14,614  
Treasury stock
     (126,803 )     (128,611 )
 
            
 
                
Total stockholders’ equity
     541,268       551,048  
 
            
 
   $ 1,550,651     $ 1,620,578  
 
            
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 April 4, 2010 and March 29, 2009 were 7.0 and 5.4 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 April 4, 2010 and March 29, 2009 were 9.0 and 5.9 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 asset impairment, purchase accounting effects related to acquisitions, revenue deferrals related to our Wireless segment, severance charges, accelerated depreciation, gains (losses) recognized on the disposal of tangible assets, and other 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              
Three Months Ended April 4, 2010   Reported     Adjustments     Adjusted  
    (In thousands, except percentages and per share amounts)  
Revenues
   $ 400,349     $ (5,885 )   $ 394,464  
 
                        
Gross profit
   $ 118,408     $ 1,949     $ 120,357  
as a percent of revenues
     29.6 %             30.5 %
 
                        
Operating income
   $ 28,126     $ 2,834     $ 30,960  
as a percent of revenues
     7.0 %             7.8 %
 
                        
Income from continuing operations
   $ 11,883     $ 2,074     $ 13,957  
as a percent of revenues
     3.0 %             3.5 %
 
                        
Income from continuing operations per diluted share
   $ 0.25     $ 0.04     $ 0.29  
                         
Three Months Ended March 29, 2009                        
Revenues
   $ 328,512     $ (49 )   $ 328,463  
 
                        
Gross profit
   $ 84,193     $ 17,895     $ 102,088  
as a percent of revenues
     25.6 %             31.1 %
 
                        
Operating income (loss)
   $ (36,357 )   $ 53,727     $ 17,370  
as a percent of revenues
     -11.1 %             5.3 %
 
                        
Income (loss) from continuing operations
   $ (32,454 )   $ 39,712     $ 7,258  
as a percent of revenues
     -9.9 %             2.2 %
 
                        
Income (loss) from continuing operations per diluted share
   $ (0.70 )   $ 0.86     $ 0.16  
Adjustments for the three months ended April 4, 2010 included pre-tax operating charges for severance and other restructuring related costs, accelerated depreciation, and purchase accounting effects related to acquisitions of $4.0 million, $1.1 million, and $1.0 million, respectively, partially offset by changes in deferred revenue of $3.3 million.
Adjustments for the three months ended March 29, 2009 included pre-tax operating charges for severance, asset impairment, and other costs of $25.9 million, $24.7 million, and $3.1 million, respectively, and pre-tax non-operating charges of $1.5 million.