EX-99.1 2 d297968dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO  

7733 Forsyth Boulevard

Suite 800

St. Louis, Missouri 63105

  

Phone: 314.854.8000

Fax: 314.854.8003

 

www.Belden.com

News Release

Belden Reports Fourth Quarter and Full Year 2011 Results

and Reaffirms 2012 Guidance

Fourth Quarter Highlights

 

   

Increased income from continuing operations per diluted share to $0.57, up 159% over last year’s $0.22 per diluted share;

 

   

Grew revenue 9.2% year-over-year to $464.4 million, from $425.2 million in the fourth quarter 2010;

 

   

Purchased 768,000 shares of Belden common stock for $25.0 million under the previously announced share repurchase program, and

 

   

Reaffirms full-year guidance for fiscal 2012 to revenues of $1.98 – $2.03 billion and income from continuing operations per diluted share of $2.70 – $2.90.

Full Year 2011 Highlights

 

   

Increased income from continuing operations per diluted share to $2.40, up 66% over last year's $1.45 per diluted share;

 

   

Grew revenue 23% to $1.98 billion, from $1.62 billion in 2010, and

 

   

Generated $145.7 million in free cash flow, exceeding net income for the year and up 70% over 2010.

St. Louis, Missouri – February 9, 2012 – Belden Inc. (NYSE: BDC), a global leader in signal transmission solutions for mission critical applications, today reported fiscal fourth quarter and full year 2011 results for the period ended December 31, 2011.

Fourth Quarter 2011

Revenue for the quarter totaled $464.4 million, up $39.2 million, or 9.2%, compared to $425.2 million in the fourth quarter 2010. Income from continuing operations per diluted share totaled $0.57, compared to $0.22 in the fourth quarter 2010.

John Stroup, President and CEO of Belden Inc., said, “Our fourth quarter results reflect a solid finish to a strong year. End-market demand for Belden products remains healthy as evidenced by our sell-through performance. In response to an uncertain economic environment, volatile commodity prices, and shorter lead-times, our customers and channel partners aggressively reduced inventory levels. Due to similar economic concerns, we executed restructuring actions during the quarter to improve our cost position and flexibility in Europe and our consumer electronics business in Asia. I am pleased that such actions could be accomplished in a quarter where earnings grew 159% year-over-year.”

The fourth quarter 2011 results include $7.6 million of non-recurring charges, primarily restructuring charges in Europe and China, and favorable non-recurring tax items with an impact of $5.5 million.


Belden Reports Fourth Quarter and Full Year 2011 Results and Reaffirms 2012 Guidance

— Page 2 of 3

 

Full Year 2011

Revenue for the year totaled $1.98 billion, up $360 million or 23% compared to $1.62 billion in 2010. Operating income totaled $187 million or 9.4% of revenue for the year, compared to $129 million or 8.0% of revenue in 2010. Income from continuing operations per diluted share totaled $2.40 for the year, compared to $1.45 in 2010, a 66% increase.

Mr. Stroup remarked, “I am extremely pleased with the Company’s 2011 results, which include 66% earnings growth, 12% organic growth and robust free cash flow at 127% of net income.”

Outlook

“Global economic forecasts predict modest growth in the world economy in 2012, which could continue to weaken, should the European economic situation deteriorate. We are focusing on our strategic goals, including our Market Delivery System and Lean Enterprise initiatives, which position us to perform in this uncertain environment. We are, therefore, reaffirming our previous outlook for 2012,” said Mr. Stroup.

The Company expects first quarter 2012 revenues to be $445 million to $455 million, and income from continuing operations per diluted share to be $0.48 to $0.53. For the full year ending December 31, 2012, the Company expects revenues to be $1.98 billion to $2.03 billion, and income from continuing operations per diluted share to be $2.70 to $2.90.

Earnings Conference Call

Management will host a conference call today at 10:30 a.m. Eastern 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 888-599-8685; the dial-in number for participants outside the U.S. is 913-312-0403. A replay of this conference call will remain accessible in the investor relations section of the Company’s Web site for a limited time.

Use of Non-GAAP Financial Information

Non-GAAP measures reflect certain adjustments the Company makes to provide insight into operating results. All GAAP to non-GAAP reconciliations accompany the consolidated financial statements included in this release and have been published to the investor relations section of the Company’s Web site at http://investor.belden.com.

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 markets and 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. Changes in the global economy may impact the Company’s results. Turbulence in

 


Belden Reports Fourth Quarter and Full Year 2011 Results and Reaffirms 2012 Guidance

— Page 3 of 3

 

financial markets may increase the Company’s 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 networking 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, electronic components, and other materials; energy costs; the Company’s ability to achieve acquisition performance expectations and to integrate acquired businesses successfully; 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; security risks and the potential for business interruption from operating in volatile countries; disruptions or failures of the Company’s (or the Company’s suppliers or customers) systems or operations in the event of a major earthquake, weather event, cyber-attack, terrorist attack, or other catastrophic event that could cause delays in completing sales, providing services, or performing other mission-critical functions; 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, 2010, filed with the SEC on February 25, 2011. 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, manufactures, and markets cable, connectivity, and networking products in markets including industrial automation, enterprise, transportation, infrastructure, and consumer electronics. It has approximately 6,800 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, South 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

Investor.Relations@Belden.com

 


BELDEN INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

     Three Months Ended     Twelve Months Ended  
     December 31, 2011     December 31, 2010     December 31, 2011     December 31, 2010  
     (In thousands, except per share data)  

Revenues

   $ 464,361      $ 425,176      $ 1,981,953      $ 1,617,090   

Cost of sales

     (332,362     (303,780     (1,410,134     (1,149,796
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     131,999        121,396        571,819        467,294   

Selling, general and administrative expenses

     (81,279     (76,371     (325,950     (279,677

Research and development

     (13,911     (11,499     (55,711     (42,605

Amortization of intangibles

     (3,375     (3,289     (13,772     (11,189

Income from equity method investment

     3,973        3,035        13,169        11,940   

Asset impairment

     (2,549     (16,574     (2,549     (16,574
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     34,858        16,698        187,006        129,189   

Interest expense

     (11,880     (10,916     (48,126     (49,826

Interest income

     485        786        1,011        1,184   

Other income

     —          —          —          1,465   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations before taxes

     23,463        6,568        139,891        82,012   

Income tax benefit (expense)

     3,526        4,171        (24,638     (12,714
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     26,989        10,739        115,253        69,298   

Gain (loss) from discontinued operations, net of tax

     (462     849        (908     (5,686

Gain on disposal of discontinued operations, net of tax

     —          44,847        —          44,847   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 26,527      $ 56,435      $ 114,345      $ 108,459   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of common shares and equivalents:

        

Basic

     46,472        46,936        47,109        46,805   

Diluted

     47,415        48,134        48,104        47,783   

Basic income (loss) per share

        

Continuing operations

   $ 0.58      $ 0.23      $ 2.45      $ 1.48   

Discontinued operations

     (0.01     0.02        (0.02     (0.11

Disposal of discontinued operations

     —          0.95        —          0.95   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 0.57      $ 1.20      $ 2.43      $ 2.32   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted income (loss) per share

        

Continuing operations

   $ 0.57      $ 0.22      $ 2.40      $ 1.45   

Discontinued operations

     (0.01     0.02        (0.02     (0.11

Disposal of discontinued operations

     —          0.93        —          0.93   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 0.56      $ 1.17      $ 2.38      $ 2.27   
  

 

 

   

 

 

   

 

 

   

 

 

 

Dividends declared per share

   $ 0.05      $ 0.05      $ 0.20      $ 0.20   


BELDEN INC.

OPERATING SEGMENT INFORMATION

(Unaudited)

 

Three Months Ended December 31, 2011

   Americas      EMEA      Asia Pacific      Total
Segments
     Eliminations     Total  
     (In thousands)  

External customer revenues

   $ 288,839       $ 92,441       $ 83,081       $ 464,361       $ —        $ 464,361   

Affiliate revenues

     8,978         36,348         520         45,846         (45,846     —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total revenues

   $ 297,817       $ 128,789       $ 83,601       $ 510,207       $ (45,846   $ 464,361   

Operating income

   $ 33,233       $ 20,763       $ 2,762       $ 56,758       $ (21,900   $ 34,858   

Three Months Ended December 31, 2010

                                        

External customer revenues

   $ 248,834       $ 92,656       $ 83,686       $ 425,176       $ —        $ 425,176   

Affiliate revenues

     12,294         23,156         —           35,450         (35,450     —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total revenues

   $ 261,128       $ 115,812       $ 83,686       $ 460,626       $ (35,450   $ 425,176   

Operating income

   $ 17,318       $ 5,939       $ 7,383       $ 30,640       $ (13,942   $ 16,698   

Twelve Months Ended December 31, 2011

                                        

External customer revenues

   $ 1,216,817       $ 415,342       $ 349,794       $ 1,981,953       $ —        $ 1,981,953   

Affiliate revenues

     42,440         117,291         1,178         160,909         (160,909     —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total revenues

   $ 1,259,257       $ 532,633       $ 350,972       $ 2,142,862       $ (160,909   $ 1,981,953   

Operating income

   $ 144,820       $ 84,097       $ 25,343       $ 254,260       $ (67,254   $ 187,006   

Twelve Months Ended December 31, 2010

                                        

External customer revenues

   $ 935,819       $ 365,796       $ 315,475       $ 1,617,090       $ —        $ 1,617,090   

Affiliate revenues

     48,899         76,485         62         125,446         (125,446     —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total revenues

   $ 984,718       $ 442,281       $ 315,537       $ 1,742,536       $ (125,446   $ 1,617,090   

Operating income

   $ 98,633       $ 47,091       $ 29,555       $ 175,279       $ (46,090   $ 129,189   


BELDEN INC.

SUPPLEMENTAL PRODUCT GROUP INFORMATION

(Unaudited)

 

Three Months Ended December 31, 2011

   Americas      EMEA      Asia Pacific      Total  
     (In thousands)  

Cable products

   $ 217,367       $ 38,280       $ 66,628       $ 322,275   

Networking products

     28,110         33,777         13,150         75,037   

Connectivity products

     43,362         20,384         3,303         67,049   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenues

   $ 288,839       $ 92,441       $ 83,081       $ 464,361   
  

 

 

    

 

 

    

 

 

    

 

 

 

Three Months Ended December 31, 2010

           

Cable products

   $ 208,392       $ 37,588       $ 67,722       $ 313,702   

Networking products

     17,284         28,237         11,800         57,321   

Connectivity products

     23,158         26,831         4,164         54,153   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenues

   $ 248,834       $ 92,656       $ 83,686       $ 425,176   
  

 

 

    

 

 

    

 

 

    

 

 

 

Twelve Months Ended December 31, 2011

           

Cable products

   $ 937,154       $ 167,666       $ 281,047       $ 1,385,867   

Networking products

     109,400         144,895         52,893         307,188   

Connectivity products

     170,263         102,781         15,854         288,898   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenues

   $ 1,216,817       $ 415,342       $ 349,794       $ 1,981,953   
  

 

 

    

 

 

    

 

 

    

 

 

 

Twelve Months Ended December 31, 2010

           

Cable products

   $ 798,833       $ 152,018       $ 263,020       $ 1,213,871   

Networking products

     62,015         115,700         36,536         214,251   

Connectivity products

     74,971         98,078         15,919         188,968   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenues

   $ 935,819       $ 365,796       $ 315,475       $ 1,617,090   
  

 

 

    

 

 

    

 

 

    

 

 

 


BELDEN INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

     December 31, 2011     December 31, 2010  
     (Unaudited)        
     (In thousands)  

ASSETS

  

Current assets:

    

Cash and cash equivalents

   $ 382,716      $ 358,653   

Receivables, net

     299,070        298,266   

Inventories, net

     202,143        175,659   

Deferred income taxes

     19,660        9,473   

Other current assets

     21,832        18,804   
  

 

 

   

 

 

 

Total current assets

     925,421        860,855   

Property, plant and equipment, less accumulated depreciation

     286,933        278,866   

Goodwill

     348,032        322,556   

Intangible assets, less accumulated amortization

     151,683        143,820   

Deferred income taxes

     12,219        27,565   

Other long-lived assets

     63,832        62,822   
  

 

 

   

 

 

 
   $ 1,788,120      $ 1,696,484   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

  

Current liabilities:

    

Accounts payable

   $ 227,571      $ 212,084   

Accrued liabilities

     153,995        145,840   
  

 

 

   

 

 

 

Total current liabilities

     381,566        357,924   

Long-term debt

     550,926        551,155   

Postretirement benefits

     131,237        112,426   

Other long-term liabilities

     29,842        36,464   

Stockholders’ equity:

    

Common stock

     503        503   

Additional paid-in capital

     601,484        595,519   

Retained earnings

     276,363        171,568   

Accumulated other comprehensive loss

     (22,709     (8,919

Treasury stock

     (161,092     (120,156
  

 

 

   

 

 

 

Total stockholders’ equity

     694,549        638,515   
  

 

 

   

 

 

 
   $ 1,788,120      $ 1,696,484   
  

 

 

   

 

 

 


BELDEN INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(Unaudited)

 

     Twelve Months Ended  
      December 31, 2011     December 31, 2010  
     (In thousands)  

Cash flows from operating activities:

    

Net income

   $ 114,345      $ 108,459   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     50,174        55,279   

Share-based compensation

     11,241        12,177   

Pension funding less than (greater than) pension expense

     3,812        (4,289

Asset impairment

     2,549        16,574   

Deferred income tax expense (benefit)

     2,294        (11,577

Provision for inventory obsolescence

     1,160        3,210   

Non-cash loss on derivatives and hedging instruments

     —          2,893   

Gain on sale of assets

     —          (44,847

Tax deficiency (benefit) related to share-based compensation

     (1,790     110   

Income from equity method investment

     (13,169     (11,940

Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses:

    

Receivables

     4,680        (39,458

Inventories

     (22,873     (14,031

Accounts payable

     9,281        38,513   

Accrued liabilities

     12,317        (8,203

Accrued taxes

     (55     (3,793

Other assets

     12,219        27,209   

Other liabilities

     (1,622     (14,737
  

 

 

   

 

 

 

Net cash provided by operating activities

     184,563        111,549   

Cash flows from investing activities:

    

Cash used to acquire businesses, net of cash acquired

     (60,519     (119,110

Capital expenditures

     (40,053     (28,194

Proceeds from disposal of businesses and tangible assets

     1,213        138,952   
  

 

 

   

 

 

 

Net cash used for investing activities

     (99,359     (8,352

Cash flows from financing activities:

    

Payments under share repurchase program

     (50,000     —     

Cash dividends paid

     (9,410     (9,412

Debt issuance costs

     (3,296     —     

Payments under borrowing arrangements

     —          (46,268

Cash received upon termination of derivative instruments

     —          4,217   

Tax benefit (deficiency) related to share-based compensation

     1,790        (110

Proceeds from exercise of stock options

     4,599        3,158   
  

 

 

   

 

 

 

Net cash used for financing activities

     (56,317     (48,415

Effect of foreign currency exchange rate changes on cash and cash equivalents

     (4,824     (5,008
  

 

 

   

 

 

 

Increase in cash and cash equivalents

     24,063        49,774   

Cash and cash equivalents, beginning of period

     358,653        308,879   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 382,716      $ 358,653   
  

 

 

   

 

 

 


BELDEN INC.

RECONCILIATION OF NON-GAAP MEASURES

(Unaudited)

We define free cash flow, which is a non-GAAP financial measure, as net cash provided by operating activities less capital expenditures, net of 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
December 31, 2011
    Three Months Ended
December 31, 2010
    Twelve Months Ended
December 31, 2011
    Twelve Months Ended
December 31, 2010
 
     (In thousands)  

GAAP net cash provided by operating activities

   $ 85,101      $ 56,138      $ 184,563      $ 111,549   

Capital expenditures, net of proceeds from

        

the disposal of tangible assets

     (18,286     (8,903     (38,840     (25,769
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP free cash flow

   $ 66,815      $ 47,235      $ 145,723      $ 85,780