EX-99.2 3 c61946exv99w2.htm EX-99.2 exv99w2
Exhibit 99.2
BELDEN INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
On December 16, 2010, Belden Inc. (Belden) completed the sale of Trapeze Networks, Inc. (Trapeze) to Juniper Networks, Inc. for a purchase price of approximately $152.1 million. Approximately $15.2 million of the purchase price was deposited into an escrow account according to terms negotiated between the parties. The purchase price is subject to adjustment based on a post-closing analysis of the closing date balance sheet. The following unaudited condensed pro forma consolidated balance sheet of Belden as of October 3, 2010, assumes that the sale of Trapeze had been completed as of such date. The following unaudited condensed pro forma consolidated statements of operations of Belden for the nine months ended October 3, 2010 and for the years ended December 31, 2009 and 2008 assume that the sale of Trapeze had been completed as of July 16, 2008, the date that Belden acquired Trapeze. The unaudited pro forma results do not purport to be indicative of the results that would have been obtained if the sale of Trapeze had been completed as of such dates.

 

BELDEN INC.
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
OCTOBER 3, 2010
(Unaudited)
                                 
            Pro Forma Adjustments        
    Belden Inc.             Other     Belden Inc.  
    Historical     Trapeze (1)     Adjustments (2)     Pro Forma  
    (In thousands)  
ASSETS
Current assets:
                                
Cash and cash equivalents
   $ 296,081     $ (482 )   $ 136,890     $ 432,489  
Receivables, net
     291,132       (8,391 )     15,210       297,951  
Inventories, net
     167,483       (3,064 )     —       164,419  
Deferred income taxes
     26,854       (5,882 )     —       20,972  
Other current assets
     18,077       (1,862 )     —       16,215  
 
                        
Total current assets
     799,627       (19,681 )     152,100       932,046  
 
                                
Property, plant and equipment, less accumulated depreciation
     282,517       (1,151 )     —       281,366  
Goodwill
     308,864       (39,904 )     —       268,960  
Intangible assets, less accumulated amortization
     128,014       (21,764 )     —       106,250  
Deferred income taxes
     36,376       (29,044 )     —       7,332  
Other long-lived assets
     70,261       (543 )     —       69,718  
 
                        
 
   $ 1,625,659     $ (112,087 )   $ 152,100     $ 1,665,672  
 
                        
 
                                
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
                                
Accounts payable
   $ 203,835     $ (4,010 )   $ —     $ 199,825  
Accrued liabilities
     140,602       (10,450 )     12,700       142,852  
 
                        
Total current liabilities
     344,437       (14,460 )     12,700       342,677  
 
                                
Long-term debt
     551,247       —       —       551,247  
Postretirement benefits
     115,642       —       —       115,642  
Other long-term liabilities
     31,050       (1,603 )     —       29,447  
Stockholders’ equity:
                                
Common stock
     503       —       —       503  
Other stockholders’ equity
     582,780       (96,024 )     139,400       626,156  
 
                        
Total stockholders’ equity
     583,283       (96,024 )     139,400       626,659  
 
                        
 
   $ 1,625,659     $ (112,087 )   $ 152,100     $ 1,665,672  
 
                        

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BELDEN INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
NINE MONTHS ENDED OCTOBER 3, 2010
(Unaudited)
                         
    Belden Inc.             Belden Inc.  
    Historical     Trapeze (3)     Pro Forma  
    (In thousands, except per share data)  
 
                        
Revenues
   $ 1,237,961     $ 46,047     $ 1,191,914  
Cost of sales
     (868,061 )     (22,045 )     (846,016 )
 
                  
Gross profit
     369,900       24,002       345,898  
Selling, general and administrative expenses
     (219,775 )     (16,020 )     (203,755 )
Research and development
     (42,991 )     (11,885 )     (31,106 )
Amortization of intangibles
     (12,558 )     (4,657 )     (7,901 )
Income from equity method investment
     8,905       —       8,905  
 
                  
Operating income (loss)
     103,481       (8,560 )     112,041  
Interest expense
     (38,912 )     (1 )     (38,911 )
Interest income
     446       49       397  
Other income
     1,465       —       1,465  
 
                  
Income (loss) from continuing operations before taxes
     66,480       (8,512 )     74,992  
Income tax benefit (expense)
     (14,014 )     2,765       (16,779 )
 
                  
Income (loss) from continuing operations
   $ 52,466     $ (5,747 )   $ 58,213  
 
                  
 
                        
Weighted average number of common shares and equivalents:
                        
Basic
     46,762               46,762  
Diluted
     47,665               47,665  
 
                        
Income from continuing operations per share:
                        
Basic
   $ 1.12             $ 1.24  
Diluted
     1.10               1.22  

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BELDEN INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2009
(Unaudited)
                         
    Belden Inc.             Belden Inc.  
    Historical     Trapeze (3)     Pro Forma  
    (In thousands, except per share amounts)  
 
                        
Revenues
   $ 1,415,262     $ 53,246     $ 1,362,016  
Cost of sales
     (1,002,064 )     (27,733 )     (974,331 )
 
                  
Gross profit
     413,198       25,513       387,685  
Selling, general and administrative expenses
     (289,672 )     (27,199 )     (262,473 )
Research and development
     (60,870 )     (20,428 )     (40,442 )
Amortization of intangibles
     (16,080 )     (6,210 )     (9,870 )
Loss on sale of assets
     (17,184 )     —       (17,184 )
Asset impairment
     (27,751 )     —       (27,751 )
 
                  
Operating income (loss)
     1,641       (28,324 )     29,965  
Interest expense
     (41,857 )     (3 )     (41,854 )
Interest income
     1,046       3       1,043  
Other income
     4,756       —       4,756  
 
                  
Loss from continuing operations before taxes
     (34,414 )     (28,324 )     (6,090 )
Income tax benefit (expense)
     10,909       12,399       (1,490 )
 
                  
Loss from continuing operations
   $ (23,505 )   $ (15,925 )   $ (7,580 )
 
                  
 
                        
Weighted average number of common shares and equivalents:
                        
Basic
     46,594               46,594  
Diluted
     46,594               46,594  
 
                        
Loss from continuing operations per share:
                        
Basic
   $ (0.50 )           $ (0.16 )
Diluted
     (0.50 )             (0.16 )

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BELDEN INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2008
(Unaudited)
                         
    Belden Inc.             Belden Inc.  
    Historical     Trapeze (3)     Pro Forma  
    (In thousands, except per share amounts)  
 
                        
Revenues
   $ 2,005,890     $ 13,722     $ 1,992,168  
Cost of sales
     (1,442,208 )     (9,262 )     (1,432,946 )
 
                  
Gross profit
     563,682       4,460       559,222  
Selling, general and administrative expenses
     (362,122 )     (14,432 )     (347,690 )
Research and development
     (50,089 )     (8,268 )     (41,821 )
Amortization of intangibles
     (13,440 )     (3,566 )     (9,874 )
Loss on sale of assets
     (3,727 )     —       (3,727 )
Goodwill impairment
     (433,737 )     (29,541 )     (404,196 )
Other asset impairment
     (42,755 )     (3,267 )     (39,488 )
 
                  
Operating loss
     (342,188 )     (54,614 )     (287,574 )
Interest expense
     (37,908 )     —       (37,908 )
Interest income
     5,300       15       5,285  
Other income
     6,326       —       6,326  
 
                  
Loss from continuing operations before taxes
     (368,470 )     (54,599 )     (313,871 )
Income tax benefit (expense)
     6,644       9,126       (2,482 )
 
                  
Loss from continuing operations
   $ (361,826 )   $ (45,473 )   $ (316,353 )
 
                  
Weighted average number of common shares and equivalents:
                        
Basic
     44,692               44,692  
Diluted
     44,692               44,692  
Loss from continuing operations per share:
                        
Basic
   $ (8.10 )           $ (7.08 )
Diluted
     (8.10 )             (7.08 )

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BELDEN INC.
NOTES TO PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
  (1)   Elimination of Trapeze’s assets and liabilities (intercompany balances are excluded) from Belden’s historical net assets as a result of the disposition.
 
  (2)   Reflects other effects of the disposition including: (i) the cash proceeds of $136.9 million received at closing, (ii) the receivable of $15.2 million related to the amount deposited into an escrow account, and (iii) tax adjustments related to the disposition. The estimated after-tax gain on the sale of Trapeze assuming the disposition closed on October 3, 2010 is $43.4 million. The actual gain will be determined as of the closing date, December 16, 2010, and could be materially different than this estimate.
 
  (3)   Deduction of Trapeze’s revenues and expenses from Belden’s historical results as a result of the disposition.

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