Delaware | 001-12561 | 36-3601505 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits. | ||
99.1 Company news release dated July 28, 2011, titled Belden Earnings Up 60% on Strong Revenue Growth in Second Quarter 2011. |
BELDEN INC. |
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Date: July 28, 2011 | By: | /s/ Kevin L. Bloomfield | ||
Kevin L. Bloomfield | ||||
Senior Vice President, Secretary and General Counsel |
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7733 Forsyth Boulevard Suite 800 St. Louis, Missouri 63105 |
Phone: 314.854.8000 Fax: 314.854.8003 |
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www.Belden.com | ||||||
News Release |
| Increased income from continuing operations per diluted share to $0.72, up 60% over $0.45 per diluted share in the second quarter 2010; | ||
| Grew revenue 31% year-over-year to $536.3 million and 17%, excluding acquisitions and currency effects; | ||
| Generated $38.8 million in free cash flow, increasing cash and cash equivalents to $329.3 million at quarter-end; | ||
| Improved operating income percentage to 10.9% from 9.6% in the year-ago period; and | ||
| Raised full-year guidance for fiscal 2011 to revenues of $2.01 - $2.03 billion and income from continuing operations per diluted share of $2.30 - $2.40, up from prior guidance of $1.96 - $2.00 billion and $2.15 - $2.30, respectively. |
Three Months Ended | Six Months Ended | |||||||||||||||
July 3, 2011 | July 4, 2010 | July 3, 2011 | July 4, 2010 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Revenues |
$ | 536,251 | $ | 410,563 | $ | 997,879 | $ | 794,987 | ||||||||
Cost of sales |
(379,637 | ) | (293,259 | ) | (710,810 | ) | (567,273 | ) | ||||||||
Gross profit |
156,614 | 117,304 | 287,069 | 227,714 | ||||||||||||
Selling, general and administrative expenses |
(84,380 | ) | (68,407 | ) | (159,316 | ) | (137,142 | ) | ||||||||
Research and development |
(14,530 | ) | (9,911 | ) | (28,159 | ) | (20,219 | ) | ||||||||
Amortization of intangibles |
(3,347 | ) | (2,587 | ) | (7,026 | ) | (5,300 | ) | ||||||||
Income from equity method investment |
3,855 | 3,211 | 7,717 | 5,852 | ||||||||||||
Operating income |
58,212 | 39,610 | 100,285 | 70,905 | ||||||||||||
Interest expense |
(12,748 | ) | (14,186 | ) | (24,556 | ) | (27,132 | ) | ||||||||
Interest income |
156 | 136 | 315 | 318 | ||||||||||||
Other income |
| 1,465 | | 1,465 | ||||||||||||
Income from continuing operations before taxes |
45,620 | 27,025 | 76,044 | 45,556 | ||||||||||||
Income tax expense |
(10,739 | ) | (5,440 | ) | (19,145 | ) | (9,641 | ) | ||||||||
Income from continuing operations |
34,881 | 21,585 | 56,899 | 35,915 | ||||||||||||
Loss from discontinued operations, net of tax |
(156 | ) | (1,913 | ) | (284 | ) | (4,496 | ) | ||||||||
Net income |
$ | 34,725 | $ | 19,672 | $ | 56,615 | $ | 31,419 | ||||||||
Weighted average number of common
shares and equivalents: |
||||||||||||||||
Basic |
47,401 | 46,779 | 47,304 | 46,737 | ||||||||||||
Diluted |
48,414 | 47,788 | 48,372 | 47,647 | ||||||||||||
Basic income (loss) per share: |
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Continuing operations |
$ | 0.73 | $ | 0.46 | $ | 1.20 | $ | 0.77 | ||||||||
Discontinued operations |
| (0.04 | ) | (0.01 | ) | (0.10 | ) | |||||||||
Net income |
$ | 0.73 | $ | 0.42 | $ | 1.19 | $ | 0.67 | ||||||||
Diluted income (loss) per share: |
||||||||||||||||
Continuing operations |
$ | 0.72 | $ | 0.45 | $ | 1.18 | $ | 0.75 | ||||||||
Discontinued operations |
| (0.04 | ) | (0.01 | ) | (0.09 | ) | |||||||||
Net income |
$ | 0.72 | $ | 0.41 | $ | 1.17 | $ | 0.66 | ||||||||
Dividends declared per share |
$ | 0.05 | $ | 0.05 | $ | 0.10 | $ | 0.10 |
Total | ||||||||||||||||||||||||
Three Months Ended July 3, 2011 | Americas | EMEA | Asia Pacific | Segments | Eliminations | Total | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
External customer revenues |
$ | 325,732 | $ | 115,498 | $ | 95,021 | $ | 536,251 | $ | | $ | 536,251 | ||||||||||||
Affiliate revenues |
11,475 | 27,482 | 398 | 39,355 | (39,355 | ) | | |||||||||||||||||
Total revenues |
$ | 337,207 | $ | 142,980 | $ | 95,419 | $ | 575,606 | $ | (39,355 | ) | $ | 536,251 | |||||||||||
Operating income |
$ | 40,379 | $ | 23,469 | $ | 9,228 | $ | 73,076 | $ | (14,864 | ) | $ | 58,212 | |||||||||||
Three Months Ended July 4, 2010 |
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External customer revenues |
$ | 236,923 | $ | 92,193 | $ | 81,447 | $ | 410,563 | $ | | $ | 410,563 | ||||||||||||
Affiliate revenues |
12,133 | 17,880 | 62 | 30,075 | (30,075 | ) | | |||||||||||||||||
Total revenues |
$ | 249,056 | $ | 110,073 | $ | 81,509 | $ | 440,638 | $ | (30,075 | ) | $ | 410,563 | |||||||||||
Operating income |
$ | 27,053 | $ | 15,241 | $ | 7,833 | $ | 50,127 | $ | (10,517 | ) | $ | 39,610 | |||||||||||
Six Months Ended July 3, 2011 |
||||||||||||||||||||||||
External customer revenues |
$ | 602,730 | $ | 219,188 | $ | 175,961 | $ | 997,879 | $ | | $ | 997,879 | ||||||||||||
Affiliate revenues |
23,543 | 50,148 | 499 | 74,190 | (74,190 | ) | | |||||||||||||||||
Total revenues |
$ | 626,273 | $ | 269,336 | $ | 176,460 | $ | 1,072,069 | $ | (74,190 | ) | $ | 997,879 | |||||||||||
Operating income |
$ | 71,951 | $ | 40,567 | $ | 15,601 | $ | 128,119 | $ | (27,834 | ) | $ | 100,285 | |||||||||||
Six Months Ended July 4, 2010 |
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External customer revenues |
$ | 454,852 | $ | 182,743 | $ | 157,392 | $ | 794,987 | $ | | $ | 794,987 | ||||||||||||
Affiliate revenues |
24,870 | 32,623 | 62 | 57,555 | (57,555 | ) | | |||||||||||||||||
Total revenues |
$ | 479,722 | $ | 215,366 | $ | 157,454 | $ | 852,542 | $ | (57,555 | ) | $ | 794,987 | |||||||||||
Operating income |
$ | 50,841 | $ | 26,302 | $ | 13,543 | $ | 90,686 | $ | (19,781 | ) | $ | 70,905 |
Three Months Ended July 3, 2011 | Americas | EMEA | Asia Pacific | Total | ||||||||||||
(In thousands) | ||||||||||||||||
Cable products |
$ | 254,826 | $ | 46,628 | $ | 77,043 | $ | 378,497 | ||||||||
Networking products |
27,863 | 40,080 | 13,591 | 81,534 | ||||||||||||
Connectivity products |
43,043 | 28,790 | 4,387 | 76,220 | ||||||||||||
Total revenues |
$ | 325,732 | $ | 115,498 | $ | 95,021 | $ | 536,251 | ||||||||
Three Months Ended July 4, 2010 |
||||||||||||||||
Cable products |
$ | 205,648 | $ | 37,967 | $ | 68,831 | $ | 312,446 | ||||||||
Networking products |
15,139 | 29,950 | 8,873 | 53,962 | ||||||||||||
Connectivity products |
16,136 | 24,276 | 3,743 | 44,155 | ||||||||||||
Total revenues |
$ | 236,923 | $ | 92,193 | $ | 81,447 | $ | 410,563 | ||||||||
Six Months Ended July 3, 2011 |
||||||||||||||||
Cable products |
$ | 465,932 | $ | 89,839 | $ | 141,854 | $ | 697,625 | ||||||||
Networking products |
54,477 | 72,673 | 25,639 | 152,789 | ||||||||||||
Connectivity products |
82,321 | 56,676 | 8,468 | 147,465 | ||||||||||||
Total revenues |
$ | 602,730 | $ | 219,188 | $ | 175,961 | $ | 997,879 | ||||||||
Six Months Ended July 4, 2010 |
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Cable products |
$ | 392,399 | $ | 77,846 | $ | 133,512 | $ | 603,757 | ||||||||
Networking products |
28,448 | 58,324 | 16,448 | 103,220 | ||||||||||||
Connectivity products |
34,005 | 46,573 | 7,432 | 88,010 | ||||||||||||
Total revenues |
$ | 454,852 | $ | 182,743 | $ | 157,392 | $ | 794,987 | ||||||||
July 3, 2011 | ||||||||
(Unaudited) | December 31, 2010 | |||||||
(In thousands) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 329,312 | $ | 358,653 | ||||
Receivables, net |
363,373 | 298,266 | ||||||
Inventories, net |
201,930 | 175,659 | ||||||
Deferred income taxes |
9,097 | 9,473 | ||||||
Other current assets |
18,575 | 18,804 | ||||||
Total current assets |
922,287 | 860,855 | ||||||
Property, plant and equipment, less accumulated
depreciation |
291,793 | 278,866 | ||||||
Goodwill |
353,849 | 322,556 | ||||||
Intangible assets, less accumulated amortization |
161,257 | 143,820 | ||||||
Deferred income taxes |
22,567 | 27,565 | ||||||
Other long-lived assets |
72,473 | 62,822 | ||||||
$ | 1,824,226 | $ | 1,696,484 | |||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 239,138 | $ | 212,084 | ||||
Accrued liabilities |
144,814 | 145,840 | ||||||
Total current liabilities |
383,952 | 357,924 | ||||||
Long-term debt |
550,984 | 551,155 | ||||||
Postretirement benefits |
119,485 | 112,426 | ||||||
Other long-term liabilities |
39,338 | 36,464 | ||||||
Stockholders equity: |
||||||||
Common stock |
503 | 503 | ||||||
Additional paid-in capital |
596,684 | 595,519 | ||||||
Retained earnings |
223,382 | 171,568 | ||||||
Accumulated other comprehensive income (loss) |
21,439 | (8,919 | ) | |||||
Treasury stock |
(111,541 | ) | (120,156 | ) | ||||
Total stockholders equity |
730,467 | 638,515 | ||||||
$ | 1,824,226 | $ | 1,696,484 | |||||
Six Months Ended | ||||||||
July 3, 2011 | July 4, 2010 | |||||||
(In thousands) | ||||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 56,615 | $ | 31,419 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
25,111 | 28,676 | ||||||
Share-based compensation |
5,716 | 6,588 | ||||||
Pension funding less than (greater than) pension expense |
1,820 | (2,700 | ) | |||||
Provision for inventory obsolescence |
1,160 | 1,752 | ||||||
Non-cash loss related to derivatives and hedging instruments |
| 2,749 | ||||||
Tax deficiency (benefit) related to share-based compensation |
(1,796 | ) | 210 | |||||
Income from equity method investment |
(7,717 | ) | (5,852 | ) | ||||
Changes in operating assets and liabilities, net of the effects of currency
exchange
rate changes and acquired businesses: |
||||||||
Receivables |
(50,623 | ) | (61,382 | ) | ||||
Inventories |
(18,616 | ) | (11,326 | ) | ||||
Accounts payable |
19,282 | 27,182 | ||||||
Accrued liabilities |
(14,535 | ) | (10,708 | ) | ||||
Accrued taxes |
13,040 | (5,267 | ) | |||||
Other assets |
1,310 | 11,638 | ||||||
Other liabilities |
383 | (7,466 | ) | |||||
Net cash provided by operating activities |
31,150 | 5,513 | ||||||
Cash flows from investing activities: |
||||||||
Cash used to acquire businesses, net of cash acquired |
(52,418 | ) | | |||||
Capital expenditures |
(14,883 | ) | (12,705 | ) | ||||
Proceeds from disposal of tangible assets |
1,222 | 2,332 | ||||||
Cash provided by other investing activities |
| 163 | ||||||
Net cash used for investing activities |
(66,079 | ) | (10,210 | ) | ||||
Cash flows from financing activities: |
||||||||
Payments under borrowing arrangements |
| (46,268 | ) | |||||
Cash dividends paid |
(4,718 | ) | (4,712 | ) | ||||
Debt issuance costs |
(3,296 | ) | | |||||
Tax benefit (deficiency) related to share-based compensation |
1,796 | (210 | ) | |||||
Proceeds from exercise of stock options |
4,554 | 634 | ||||||
Net cash used for financing activities |
(1,664 | ) | (50,556 | ) | ||||
Effect of foreign currency exchange rate changes on cash and cash equivalents |
7,252 | (8,011 | ) | |||||
Decrease in cash and cash equivalents |
(29,341 | ) | (63,264 | ) | ||||
Cash and cash equivalents, beginning of period |
358,653 | 308,879 | ||||||
Cash and cash equivalents, end of period |
$ | 329,312 | $ | 245,615 | ||||
Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | |||||||||||||
July 3, 2011 | July 4, 2010 | July 3, 2011 | July 4, 2010 | |||||||||||||
(In thousands) | ||||||||||||||||
GAAP net cash provided by operating activities |
$ | 46,777 | $ | 18,720 | $ | 31,150 | $ | 5,513 | ||||||||
Capital expenditures, net of proceeds from the
disposal of tangible assets |
(7,999 | ) | (5,195 | ) | (13,661 | ) | (10,373 | ) | ||||||||
Non-GAAP free cash flow |
$ | 38,778 | $ | 13,525 | $ | 17,489 | $ | (4,860 | ) | |||||||