UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): July 29, 2015
Belden Inc.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
Delaware | 001-12561 | 36-3601505 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
1 North Brentwood Boulevard, 15th Floor
St. Louis, Missouri 63105
(Address of Principal Executive Offices, including Zip Code)
(314) 854-8000
(Registrants telephone number, including area code)
n/a
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if this Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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EXHIBIT INDEX |
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Exhibit 99.1 News Release dated July 29, 2015 |
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Item 2.02. Results of Operations and Financial Condition.
On July 29, 2015, Belden Inc. issued a press release announcing its financial results for the second quarter 2015. A copy of the press release is attached as Exhibit 99.1 and is incorporated into this current report.
The information in this Item 2.02 and in the press release (attached as Exhibit 99.1 to this current report) shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise be subject to the liabilities of that Section or Section 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information contained in this Item 2.02 and in the accompanying exhibit shall not be incorporated by reference into any filing with the U.S. Securities and Exchange Commission made by Belden Inc., whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 | Company news release dated July 29, 2015, titled Belden Reports Second Quarter 2015 Results |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
BELDEN INC. | ||||||
Date: July 29, 2015 | By: | /s/ Brian E. Anderson | ||||
Brian E. Anderson | ||||||
Senior Vice President-Legal, General | ||||||
Counsel and Corporate Secretary |
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Exhibit 99.1
|
1 North Brentwood Boulevard | Phone: 314.854.8000 | ||
15th Floor | Fax: 314.854.8003 | |||
St. Louis, Missouri 63105 | ||||
www.Belden.com |
News Release
Belden Reports Second Quarter 2015 Results
St. Louis, Missouri July 29, 2015 Belden Inc. (NYSE: BDC), a global leader in high quality, end-to-end signal transmission solutions for mission-critical applications, today reported fiscal second quarter 2015 results for the period ended June 28, 2015.
Second Quarter 2015 Highlights
| Generated revenues of $585.8 million; |
| Achieved record adjusted gross profit margins of 41.7%, increasing 470 basis points from 37.0% in the year-ago period; |
| Expanded adjusted EBITDA margins to a record 16.7%, increasing 190 basis points from 14.8% in the year-ago period; |
| Generated adjusted income from continuing operations per diluted share of $1.21, up 15.2% over last years $1.05; and |
| Reduced the expected range of full-year adjusted revenues to $2.360 $2.390 billion, and adjusted income from continuing operations per diluted share to $4.70 $4.90. |
Second Quarter 2015
On a GAAP basis, revenues for the quarter totaled $585.8 million, down $15.1 million, or 2.5%, compared to $600.9 million in the second quarter 2014. Gross profit margin in the second quarter was 40.0%, increasing 600 basis points from 34.0% in the year-ago period. Operating profit margin in the second quarter was 7.5%, increasing 540 basis points from 2.1% in the year-ago period. Income from continuing operations per diluted share totaled $0.50, compared to $0.00 in the second quarter 2014.
Adjusted revenue for the quarter totaled $598.5 million, declining $6.5 million, or 1.1%, compared to $605.1 million in the second quarter 2014. Adjusted gross profit margin in the second quarter was a company record 41.7%, increasing 470 basis points from 37.0% in the year-ago period. Adjusted EBITDA margin in the second quarter was 16.7%, increasing 190 basis points from 14.8% in the year-ago period. Adjusted income from continuing operations per diluted share totaled $1.21, compared to $1.05 in the second quarter 2014, a year-over-year increase of 15.2%. Adjusted results are non-GAAP measures, and a non-GAAP reconciliation table is provided as an appendix to this release.
John Stroup, president and CEO of Belden Inc., said, As we closed the first half of 2015, the demand environment varied significantly by platform, with strength from our Enterprise and Network Security platforms partially offsetting weakness in the Broadcast and Industrial platforms. While Im disappointed with the results of our Broadcast segment, Im pleased with the teams execution. As a result, the company achieved record gross and EBITDA margins of 41.7% and 16.7% respectively, and earnings growth of more than 15% year over year.
Belden Reports Second Quarter 2015 Results
Outlook
Although earnings growth and margin expansion are robust, we now expect a softer demand environment in several served markets. A strong U.S. dollar, the impact of lower energy prices, and a lackluster Chinese economy are impacting demand for our industrial segments. Furthermore, its now clear that our broadcast customers will defer capital spending on traditional infrastructure equipment as they navigate through a number of important industry transitions. As a result, we believe its prudent to adjust our revenue expectations for the remainder of the year and take swift action to align our cost structure and protect margins. Were disappointed in this near-term outlook revision, yet we remain committed to executing our strategic plan and delivering long-term shareholder value, said Stroup.
The Company expects third quarter 2015 adjusted revenues to be $580 $600 million and adjusted income from continuing operations per diluted share to be $1.05 $1.15. For the full year ending December 31, 2015, the Company now expects adjusted revenues to be $2.360 $2.390 billion compared to the previously guided range of $2.450 - $2.500 billion. The expected range of adjusted income from continuing operations per diluted share is now $4.70 $4.90 compared to the previously guided range of $5.28 - $5.48.
On a GAAP basis, the Company expects third quarter 2015 revenues to be $567 $587 million and loss from continuing operations per diluted share to be ($0.16) ($0.06). For the full year ending December 31, 2015, the Company now expects revenues to be $2.303 $2.333 billion compared to the previously guided range of $2.388 $2.438 billion. The expected range of income from continuing operations per diluted share is now $0.94 $1.14 compared to the previously guided range of $2.37 $2.57.
Earnings Conference Call
Management will host a conference call today at 10:30 am EDT to discuss results of the quarter and full-year. 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 888-256-9157; the dial-in number for participants outside the U.S. is 913-312-0977. A replay of this conference call will remain accessible in the investor relations section of the Companys website for a limited time.
BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 28, 2015 | June 29, 2014 | June 28, 2015 | June 29, 2014 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Revenues |
$ | 585,755 | $ | 600,891 | $ | 1,132,712 | $ | 1,088,581 | ||||||||
Cost of sales |
(351,479 | ) | (396,506 | ) | (690,787 | ) | (708,479 | ) | ||||||||
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Gross profit |
234,276 | 204,385 | 441,925 | 380,102 | ||||||||||||
Selling, general and administrative expenses |
(127,927 | ) | (145,902 | ) | (268,743 | ) | (240,750 | ) | ||||||||
Research and development |
(36,632 | ) | (31,618 | ) | (72,831 | ) | (52,189 | ) | ||||||||
Amortization of intangibles |
(25,917 | ) | (15,795 | ) | (52,421 | ) | (27,536 | ) | ||||||||
Income from equity method investment |
343 | 1,256 | 1,111 | 2,210 | ||||||||||||
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Operating income |
44,143 | 12,326 | 49,041 | 61,837 | ||||||||||||
Interest expense, net |
(24,769 | ) | (18,092 | ) | (48,615 | ) | (36,762 | ) | ||||||||
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Income (loss) from continuing operations before taxes |
19,374 | (5,766 | ) | 426 | 25,075 | |||||||||||
Income tax benefit |
2,303 | 5,781 | 1,615 | 96 | ||||||||||||
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Income from continuing operations |
21,677 | 15 | 2,041 | 25,171 | ||||||||||||
Loss from disposal of discontinued operations, net of tax |
(86 | ) | | (86 | ) | (562 | ) | |||||||||
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Net income |
$ | 21,591 | $ | 15 | $ | 1,955 | $ | 24,609 | ||||||||
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Weighted average number of common shares and equivalents: |
||||||||||||||||
Basic |
42,655 | 43,603 | 42,596 | 43,559 | ||||||||||||
Diluted |
43,233 | 44,292 | 43,224 | 44,293 | ||||||||||||
Basic income (loss) per share: |
||||||||||||||||
Continuing operations |
$ | 0.51 | $ | | $ | 0.05 | $ | 0.58 | ||||||||
Discontinued operations |
| | | (0.01 | ) | |||||||||||
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Net income |
$ | 0.51 | $ | | $ | 0.05 | $ | 0.57 | ||||||||
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Diluted income (loss) per share: |
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Continuing operations |
$ | 0.50 | $ | | $ | 0.05 | $ | 0.57 | ||||||||
Discontinued operations |
| | | (0.01 | ) | |||||||||||
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Net income |
$ | 0.50 | $ | | $ | 0.05 | $ | 0.56 | ||||||||
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Comprehensive income |
$ | 19,562 | $ | 13,894 | $ | 13,839 | $ | 27,175 | ||||||||
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Dividends declared per share |
$ | 0.05 | $ | 0.05 | $ | 0.10 | $ | 0.10 |
BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)
Broadcast Solutions | Enterprise Connectivity Solutions |
Industrial Connectivity Solutions |
Industrial IT Solutions |
Network Security Solutions |
Total Segments | |||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||
For the three months ended June 28, 2015 |
||||||||||||||||||||||||
Segment Revenues |
$ | 219,415 | $ | 117,335 | $ | 160,875 | $ | 61,270 | $ | 39,618 | $ | 598,513 | ||||||||||||
Segment EBITDA |
31,614 | 21,101 | 28,680 | 10,178 | 8,772 | 100,345 | ||||||||||||||||||
Segment EBITDA margin |
14.4 | % | 18.0 | % | 17.8 | % | 16.6 | % | 22.1 | % | 16.8 | % | ||||||||||||
Depreciation expense |
4,373 | 2,947 | 2,869 | 584 | 919 | 11,692 | ||||||||||||||||||
Amortization of intangibles |
12,889 | 135 | 807 | 1,479 | 10,607 | 25,917 | ||||||||||||||||||
Severance, restructuring, and acquisition integration costs |
3,283 | 83 | 1,163 | | 378 | 4,907 | ||||||||||||||||||
Deferred gross profit adjustments |
(924 | ) | | | | 14,364 | 13,440 | |||||||||||||||||
For the three months ended June 29, 2014 |
||||||||||||||||||||||||
Segment Revenues |
$ | 252,278 | $ | 121,272 | $ | 178,244 | $ | 53,260 | $ | | $ | 605,054 | ||||||||||||
Segment EBITDA |
31,318 | 19,667 | 29,462 | 8,806 | | 89,253 | ||||||||||||||||||
Segment EBITDA margin |
12.4 | % | 16.2 | % | 16.5 | % | 16.5 | % | n/a | 14.8 | % | |||||||||||||
Depreciation expense |
4,609 | 3,799 | 2,458 | 534 | | 11,400 | ||||||||||||||||||
Amortization of intangibles |
14,424 | 167 | 271 | 933 | | 15,795 | ||||||||||||||||||
Severance, restructuring, and acquisition integration costs |
27,524 | 1,821 | 8,144 | 719 | | 38,208 | ||||||||||||||||||
Purchase accounting effects of acquisitions |
7,148 | 147 | 250 | 618 | | 8,163 | ||||||||||||||||||
Deferred gross profit adjustments |
3,915 | | | | | 3,915 | ||||||||||||||||||
For the six months ended June 28, 2015 |
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Segment Revenues |
$ | 433,001 | $ | 222,030 | $ | 313,847 | $ | 122,343 | $ | 76,743 | $ | 1,167,964 | ||||||||||||
Segment EBITDA |
60,846 | 34,982 | 52,853 | 21,265 | 18,673 | 188,619 | ||||||||||||||||||
Segment EBITDA margin |
14.1 | % | 15.8 | % | 16.8 | % | 17.4 | % | 24.3 | % | 16.1 | % | ||||||||||||
Depreciation expense |
8,558 | 5,949 | 5,720 | 1,143 | 1,863 | 23,233 | ||||||||||||||||||
Amortization of intangibles |
25,609 | 273 | 1,630 | 2,889 | 22,020 | 52,421 | ||||||||||||||||||
Severance, restructuring, and acquisition integration costs |
14,821 | 640 | 2,936 | (52 | ) | 1,045 | 19,390 | |||||||||||||||||
Purchase accounting effects of acquisitions |
| | 267 | | 9,155 | 9,422 | ||||||||||||||||||
Deferred gross profit adjustments |
2,370 | | | | 32,728 | 35,098 | ||||||||||||||||||
For the six months ended June 29, 2014 |
||||||||||||||||||||||||
Segment Revenues |
$ | 418,763 | $ | 229,666 | $ | 337,562 | $ | 107,370 | $ | | $ | 1,093,361 | ||||||||||||
Segment EBITDA |
57,489 | 33,842 | 53,144 | 18,394 | | 162,869 | ||||||||||||||||||
Segment EBITDA margin |
13.7 | % | 14.7 | % | 15.7 | % | 17.1 | % | n/a | 14.9 | % | |||||||||||||
Depreciation expense |
7,490 | 7,499 | 4,842 | 1,066 | | 20,897 | ||||||||||||||||||
Amortization of intangibles |
24,943 | 335 | 536 | 1,722 | | 27,536 | ||||||||||||||||||
Severance, restructuring, and acquisition integration costs |
28,967 | 1,821 | 8,144 | 719 | | 39,651 | ||||||||||||||||||
Purchase accounting effects of acquisitions |
7,458 | 286 | 533 | 738 | | 9,015 | ||||||||||||||||||
Deferred gross profit adjustments |
4,365 | | | | | 4,365 |
BELDEN INC.
OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 28, 2015 | June 29, 2014 | June 28, 2015 | June 29, 2014 | |||||||||||||
(In thousands) | ||||||||||||||||
Total Segment Revenues |
$ | 598,513 | $ | 605,054 | $ | 1,167,964 | $ | 1,093,361 | ||||||||
Deferred revenue adjustments |
(12,758 | ) | (4,163 | ) | (35,252 | ) | (4,780 | ) | ||||||||
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Consolidated Revenues |
$ | 585,755 | $ | 600,891 | $ | 1,132,712 | $ | 1,088,581 | ||||||||
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Total Segment EBITDA |
$ | 100,345 | $ | 89,253 | $ | 188,619 | $ | 162,869 | ||||||||
Income from equity method investment |
343 | 1,256 | 1,111 | 2,210 | ||||||||||||
Eliminations |
(589 | ) | (702 | ) | (1,125 | ) | (1,778 | ) | ||||||||
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Consolidated Adjusted EBITDA (1) |
100,099 | 89,807 | 188,605 | 163,301 | ||||||||||||
Amortization of intangibles |
(25,917 | ) | (15,795 | ) | (52,421 | ) | (27,536 | ) | ||||||||
Deferred gross profit adjustments |
(13,440 | ) | (3,915 | ) | (35,098 | ) | (4,365 | ) | ||||||||
Severance, restructuring, and acquisition integration costs |
(4,907 | ) | (38,208 | ) | (19,390 | ) | (39,651 | ) | ||||||||
Depreciation expense |
(11,692 | ) | (11,400 | ) | (23,233 | ) | (20,897 | ) | ||||||||
Purchase accounting effects related to acquisitions |
| (8,163 | ) | (9,422 | ) | (9,015 | ) | |||||||||
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Consolidated operating income |
44,143 | 12,326 | 49,041 | 61,837 | ||||||||||||
Interest expense, net |
(24,769 | ) | (18,092 | ) | (48,615 | ) | (36,762 | ) | ||||||||
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Consolidated income (loss) from continuing operations before taxes |
$ | 19,374 | $ | (5,766 | ) | $ | 426 | $ | 25,075 | |||||||
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(1) | Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation of Non-GAAP Measures for additional information. |
BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 28, 2015 | December 31, 2014 | |||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
ASSETS | ||||||||
Current assets: |
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Cash and cash equivalents |
$ | 208,419 | $ | 741,162 | ||||
Receivables, net |
412,251 | 379,777 | ||||||
Inventories, net |
233,100 | 228,398 | ||||||
Deferred income taxes |
21,188 | 22,157 | ||||||
Other current assets |
72,388 | 42,656 | ||||||
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Total current assets |
947,346 | 1,414,150 | ||||||
Property, plant and equipment, less accumulated depreciation |
319,455 | 316,385 | ||||||
Goodwill |
1,418,031 | 943,374 | ||||||
Intangible assets, less accumulated amortization |
713,484 | 461,292 | ||||||
Deferred income taxes |
24,049 | 40,652 | ||||||
Other long-lived assets |
80,278 | 86,974 | ||||||
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$ | 3,502,643 | $ | 3,262,827 | |||||
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LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||
Current liabilities: |
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Accounts payable |
$ | 225,891 | $ | 272,439 | ||||
Accrued liabilities |
267,910 | 250,420 | ||||||
Current maturities of long-term debt |
2,500 | 2,500 | ||||||
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Total current liabilities |
496,301 | 525,359 | ||||||
Long-term debt |
1,918,695 | 1,765,422 | ||||||
Postretirement benefits |
115,806 | 122,627 | ||||||
Deferred income taxes |
115,060 | 10,824 | ||||||
Other long-term liabilities |
36,275 | 31,409 | ||||||
Stockholders equity: |
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Common stock |
503 | 503 | ||||||
Additional paid-in capital |
598,264 | 595,389 | ||||||
Retained earnings |
619,593 | 621,896 | ||||||
Accumulated other comprehensive loss |
(34,147 | ) | (46,031 | ) | ||||
Treasury stock |
(363,707 | ) | (364,571 | ) | ||||
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Total stockholders equity |
820,506 | 807,186 | ||||||
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$ | 3,502,643 | $ | 3,262,827 | |||||
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BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited)
Six Months Ended | ||||||||
June 28, 2015 | June 29, 2014 | |||||||
(In thousands) | ||||||||
Cash flows from operating activities: |
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Net income |
$ | 1,955 | $ | 24,609 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
75,654 | 48,433 | ||||||
Share-based compensation |
9,891 | 9,524 | ||||||
Income from equity method investment |
(1,111 | ) | (2,210 | ) | ||||
Tax benefit related to share-based compensation |
(5,288 | ) | (4,894 | ) | ||||
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses: |
||||||||
Receivables |
(6,250 | ) | (33,762 | ) | ||||
Inventories |
(11,837 | ) | 7,605 | |||||
Accounts payable |
(43,689 | ) | (4,584 | ) | ||||
Accrued liabilities |
(4,363 | ) | (32,271 | ) | ||||
Accrued taxes |
(10,214 | ) | (13,226 | ) | ||||
Other assets |
(625 | ) | 7,212 | |||||
Other liabilities |
923 | 4,119 | ||||||
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Net cash provided by operating activities |
5,046 | 10,555 | ||||||
Cash flows from investing activities: |
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Cash used to acquire businesses, net of cash acquired |
(695,345 | ) | (311,467 | ) | ||||
Capital expenditures |
(27,224 | ) | (20,963 | ) | ||||
Payments related to the disposal of a business |
| (956 | ) | |||||
Proceeds from disposal of tangible assets |
80 | 13 | ||||||
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Net cash used for investing activities |
(722,489 | ) | (333,373 | ) | ||||
Cash flows from financing activities: |
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Borrowings under credit arrangements |
200,000 | 200,000 | ||||||
Tax benefit related to share-based compensation |
5,288 | 4,894 | ||||||
Payments under share repurchase program |
| (31,197 | ) | |||||
Payments under borrowing arrangements |
(625 | ) | (625 | ) | ||||
Debt issuance costs paid |
(643 | ) | (5,702 | ) | ||||
Cash dividends paid |
(4,235 | ) | (4,358 | ) | ||||
Proceeds (payments) from exercise of stock options, net of withholding tax payments |
(11,439 | ) | (7,741 | ) | ||||
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Net cash provided by financing activities |
188,346 | 155,271 | ||||||
Effect of foreign currency exchange rate changes on cash and cash equivalents |
(3,646 | ) | (792 | ) | ||||
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Decrease in cash and cash equivalents |
(532,743 | ) | (168,339 | ) | ||||
Cash and cash equivalents, beginning of period |
741,162 | 613,304 | ||||||
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Cash and cash equivalents, end of period |
$ | 208,419 | $ | 444,965 | ||||
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BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)
In addition to reporting financial results in accordance with accounting principles generally accepted in the United States, we provide non-GAAP operating results adjusted for certain items, including: asset impairments; accelerated depreciation expense due to plant consolidation activities; purchase accounting effects related to acquisitions, such as the adjustment of acquired inventory and deferred revenue to fair value and transaction costs; revenue and cost of sales deferrals for certain acquired product lines subject to software revenue recognition accounting requirements; severance, restructuring, and acquisition integration costs; gains (losses) recognized on the disposal of businesses and tangible assets; amortization of intangible assets; gains (losses) on debt extinguishment; discontinued operations; 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 the adjusted results are useful to investors because they help them compare our results to previous periods and provide important insights into underlying trends in the business and how management oversees our business operations on a day-to-day basis. Adjusted results should be considered only in conjunction with results reported according to accounting principles generally accepted in the United States.
Three Months Ended | Six Months Ended | |||||||||||||||
June 28, 2015 | June 29, 2014 | June 28, 2015 | June 29, 2014 | |||||||||||||
(In thousands, except percentages and per share amounts) | ||||||||||||||||
GAAP revenues |
$ | 585,755 | $ | 600,891 | $ | 1,132,712 | $ | 1,088,581 | ||||||||
Deferred revenue adjustments |
12,758 | 4,163 | 35,252 | 4,780 | ||||||||||||
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Adjusted revenues |
$ | 598,513 | $ | 605,054 | $ | 1,167,964 | $ | 1,093,361 | ||||||||
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GAAP gross profit |
$ | 234,276 | $ | 204,385 | $ | 441,925 | $ | 380,102 | ||||||||
Severance, restructuring, and integration costs |
1,783 | 8,035 | 3,174 | 7,986 | ||||||||||||
Purchase accounting effects related to acquisitions |
| 7,442 | 267 | 7,442 | ||||||||||||
Deferred gross profit adjustments |
13,440 | 3,915 | 35,098 | 4,365 | ||||||||||||
Accelerated depreciation |
25 | | 100 | | ||||||||||||
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Adjusted gross profit |
$ | 249,524 | $ | 223,777 | $ | 480,564 | $ | 399,895 | ||||||||
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GAAP gross profit margin |
40.0 | % | 34.0 | % | 39.0 | % | 34.9 | % | ||||||||
Adjusted gross profit margin |
41.7 | % | 37.0 | % | 41.1 | % | 36.6 | % | ||||||||
GAAP operating income |
$ | 44,143 | $ | 12,326 | $ | 49,041 | $ | 61,837 | ||||||||
Severance, restructuring, and integration costs |
4,907 | 38,208 | 19,390 | 39,651 | ||||||||||||
Amortization of intangible assets |
25,917 | 15,795 | 52,421 | 27,536 | ||||||||||||
Purchase accounting effects related to acquisitions |
| 8,163 | 9,422 | 9,015 | ||||||||||||
Deferred gross profit adjustments |
13,440 | 3,915 | 35,098 | 4,365 | ||||||||||||
Accelerated depreciation |
42 | | 182 | | ||||||||||||
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Total operating income adjustments |
44,306 | 66,081 | 116,513 | 80,567 | ||||||||||||
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Depreciation expense |
11,650 | 11,400 | 23,051 | 20,897 | ||||||||||||
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Adjusted EBITDA |
$ | 100,099 | $ | 89,807 | $ | 188,605 | $ | 163,301 | ||||||||
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GAAP operating income margin |
7.5 | % | 2.1 | % | 4.3 | % | 5.7 | % | ||||||||
Adjusted EBITDA margin |
16.7 | % | 14.8 | % | 16.1 | % | 14.9 | % | ||||||||
GAAP income from continuing operations |
$ | 21,677 | $ | 15 | $ | 2,041 | $ | 25,171 | ||||||||
Operating income adjustments from above |
44,306 | 66,081 | 116,513 | 80,567 | ||||||||||||
Tax effect of adjustments |
(13,768 | ) | (19,635 | ) | (23,077 | ) | (23,855 | ) | ||||||||
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Adjusted income from continuing operations |
$ | 52,215 | $ | 46,461 | $ | 95,477 | $ | 81,883 | ||||||||
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GAAP income from continuing operations per diluted share |
$ | 0.50 | $ | | $ | 0.05 | $ | 0.57 | ||||||||
Adjusted income from continuing operations per diluted share |
$ | 1.21 | $ | 1.05 | $ | 2.21 | $ | 1.85 | ||||||||
GAAP and Adjusted diluted weighted average shares |
43,233 | 44,292 | 43,224 | 44,293 |
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 adjusted for capital expenditures net of the proceeds from the disposal of tangible assets, and cash payments for severance and other costs for the integration of our 2014 acquisition of Grass Valley. 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 | Six Months Ended | |||||||||||||||
June 28, 2015 | June 29, 2014 | June 28, 2015 | June 29, 2014 | |||||||||||||
(In thousands) | ||||||||||||||||
GAAP net cash provided by operating activities |
$ | 53,251 | $ | 30,970 | $ | 5,046 | $ | 10,555 | ||||||||
Capital expenditures, net of proceeds from the disposal of tangible assets |
(11,694 | ) | (10,606 | ) | (27,144 | ) | (20,950 | ) | ||||||||
Cash paid for severance and other costs for the integration of our acquisition of Grass Valley |
| 12,768 | | 12,768 | ||||||||||||
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Non-GAAP free cash flow |
$ | 41,557 | $ | 33,132 | $ | (22,098 | ) | $ | 2,373 | |||||||
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BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
2015 REVENUES AND EARNINGS GUIDANCE
Year Ended December 31, 2015 |
Three Months Ended September 27, 2015 | |||
Adjusted revenues |
$2.360 - $2.390 billion | $580 - $600 million | ||
Deferred revenue adjustments |
($57 million) | ($13 million) | ||
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GAAP revenues |
$2.303 - $2.333 billion | $567 - $587 million | ||
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Adjusted income from continuing operations per diluted share |
$4.70 - $4.90 | $1.05 - $1.15 | ||
Amortization of intangible assets |
($1.82) | ($0.50) | ||
Deferred gross profit adjustments |
($0.97) | ($0.24) | ||
Severance, restructuring, and acquisition integration costs |
($0.81) | ($0.47) | ||
Purchase accounting effects of acquisitions |
($0.16) | $0.00 | ||
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GAAP income (loss) from continuing operations per diluted share |
$0.94 - $1.14 | ($0.16 - $0.06) | ||
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Our guidance for revenues and income from continuing operations per diluted share is based upon the extent of information currently available regarding events and conditions that will impact our future operating results for 2015. Our actual results are likely to be impacted by other additional events for which information is not available, such as asset impairments, purchase accounting effects related to acquisitions, severance and other restructuring costs, gains (losses) recognized on the disposal of tangible assets, gains (losses) on debt extinguishment, discontinued operations, and other gains (losses) related to events or conditions that are not yet known.
Belden Reports Second Quarter 2015 Results
Use of Non-GAAP Financial Information
Adjusted results are non-GAAP measures that 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 Companys Web site at http://investor.belden.com.
Forward-Looking Statements
This release contains forward-looking statements including our expectations for the third quarter and full-year 2015. Forward-looking statements also include any other statements regarding future financial performance (including revenues, expenses, earnings, margins, cash flows, dividends, capital expenditures and financial condition), plans and objectives, and related assumptions. Forward-looking statements reflect managements current beliefs and expectations and are not guarantees of future performance. Actual results may differ materially from those suggested by any forward-looking statements for a number of reasons, including: the impact of a challenging global economy or a downturn in served markets; the cost and availability of raw materials including copper, plastic compounds, electronic components, and other materials; the competitiveness of the global broadcast, enterprise, and industrial markets; disruption of, or changes in, the Companys key distribution channels; volatility in credit and foreign exchange markets; the inability to successfully complete and integrate acquisitions in furtherance of the Companys strategic plan; the inability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); political and economic uncertainties in the countries where the Company conducts business, including emerging markets; the inability of the Company to develop and introduce new products and competitive responses to our products; assertions that the Company violates the intellectual property of others and the ownership of intellectual property by competitors and others that prevents the use of that intellectual property by the Company; variability in the Companys quarterly and annual effective tax rates; the impairment of goodwill and other intangible assets and the resulting impact on financial performance; the impact of regulatory requirements and other legal compliance issues; disruptions in the Companys information systems including due to cyber-attacks; perceived or actual product failures; risks related to the use of open source software; disruptions and increased costs attendant to collective bargaining groups and other labor matters; 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, 2014, filed with the SEC on February 23, 2015. Belden disclaims any duty to update any forward looking statements as a result of new information, future developments, or otherwise, except as required by law.
Belden Reports Second Quarter 2015 Results
About Belden
Belden Inc. delivers a comprehensive product portfolio designed to meet the mission-critical network infrastructure needs of industrial, enterprise and broadcast markets. With innovative solutions targeted at reliable and secure transmission of rapidly growing amounts of data, audio and video needed for todays applications, Belden is at the center of the global transformation to a connected world. Founded in 1902, the company is headquartered in St. Louis and has manufacturing capabilities in North and South America, Europe and Asia. For more information, visit us at www.belden.com or follow us on Twitter @BeldenInc.
Contact:
Belden Investor Relations
314-854-8054
Investor.Relations@Belden.com
BDC-E