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): May 4, 2016
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)) |
TABLE OF CONTENTS
Item 2.02 Results of Operations and Financial Condition. | 3 | |
Item 9.01 Financial Statements and Exhibits. | 3 | |
SIGNATURES | 3 | |
EXHIBIT INDEX | ||
2
Item 2.02. | Results of Operations and Financial Condition. |
On May 4, 2016, Belden Inc. issued a press release announcing its financial results for the first quarter 2016. 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 May 4, 2016, titled Belden Reports Strong Results for First Quarter 2016 |
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: May 4, 2016 | By: | /s/ Brian E. Anderson | ||||
Brian E. Anderson | ||||||
Senior Vice President-Legal, General Counsel and Corporate Secretary |
3
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 Strong Results for First Quarter 2016
St. Louis, Missouri May 4, 2016 Belden Inc. (NYSE: BDC), a global leader in high quality, end-to-end signal transmission solutions for mission-critical applications, today reported fiscal first quarter 2016 results for the period ended April 3, 2016.
First Quarter 2016 Highlights
| Delivered GAAP first quarter revenues of $541.5 million, and adjusted first quarter revenues of $543.8 million; |
| Expanded adjusted gross profit margins to 42.3%, an increase of 170 basis points from 40.6% in the year-ago period; |
| Generated adjusted EBITDA margins of 16.4%, an increase of 90 basis points from 15.5% in the year-ago period; |
| Repaid $51 million of debt during the quarter; and |
| Increased full-year adjusted revenues and adjusted EPS guidance. |
First Quarter 2016
On a GAAP basis, revenues for the quarter totaled $541.5 million, declining $5.5 million, or 1.0%, compared to $547.0 million in the first quarter 2015. Gross profit margin in the first quarter was 41.6%, increasing 360 basis points from 38.0% in the year-ago period. Operating income was $41.0 million, an increase from the prior-year period of $4.9 million. Operating profit margin in the first quarter was 7.6%, increasing from 0.9% in the year-ago period. EPS totaled $0.39, compared to a loss of $(0.46) in the first quarter 2015. GAAP operating profit margin expansion and net income improvement was largely driven by purchase accounting effects in the year-ago period related to the acquisition of Tripwire.
Adjusted revenues for the quarter totaled $543.8 million, declining $25.7 million, or 4.5%, compared to $569.5 million in the first quarter 2015. Adjusted gross profit margin in the first quarter was 42.3%, increasing 170 basis points from 40.6% in the year-ago period. Adjusted EBITDA margin in the first quarter was 16.4%, increasing 90 basis points from 15.5% in the year-ago period. Adjusted EPS increased to $1.01 from $1.00 in the first quarter 2015. Adjusted results are non-GAAP measures, and a non-GAAP reconciliation table is provided as an appendix to this release.
To capitalize on the adoption of IP technology and accelerate our penetration of the commercial audio-video market, we elected in the first quarter to transfer the responsibility of audio-video cable and connectors to our Enterprise segment leadership team. As a result, revenues for this product category are now reported within the Enterprise Connectivity platform. Such revenues were previously reported within the Broadcast Connectivity platform. Prior period segment
Belden Reports Strong Results for First Quarter 2016
information has been revised to conform to the change in the composition of reportable segments and is included as an appendix to this release.
John Stroup, President and CEO of Belden Inc., said, We are extremely pleased with our first quarter results, including earnings growth, margin expansion, and cash flow. As expected, strength within Broadband, Enterprise, and Network Security markets offset weakness from our industrial platforms. Despite a difficult year-over-year comparison due primarily to lower oil prices and a stronger U.S. dollar, our attractive portfolio, superior business system, and talented team enabled us to outperform.
Outlook
Given our strong start, we have increased our revenue and earnings outlook for the year. We expect our Broadband, Enterprise, and Network Security businesses will continue to perform well and benefit from favorable end-market conditions. Although our industrial businesses are down year-over-year, sequential performance, backlog, and order rates suggest stability that should lead to a better second half, said Mr. Stroup.
The Company expects second quarter 2016 adjusted revenues to be $570 $590 million and adjusted EPS to be $1.20 $1.30. For the full year ending December 31, 2016, the Company now expects adjusted revenues to be $2.320 $2.370 billion compared to the previously guided range of $2.295 $2.345 billion. The expected range of adjusted EPS is now $5.15 $5.45 compared to the previously guided range of $5.10 - $5.40.
On a GAAP basis, the Company expects second quarter 2016 revenues to be $568 $588 million and EPS to be $0.62 $0.72. For the full year ending December 31, 2016, the Company now expects revenues to be $2.313 $2.363 billion compared to the previously guided range of $2.288 $2.338 billion. The expected range of EPS is now $2.84 $3.14 compared to the previously guided range of $2.68 - $2.98.
Earnings Conference Call
Management will host a conference call today at 8:30 am EDT 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 888-287-5563; the dial-in number for participants outside the U.S. is 719-325-2432. A replay of this conference call will remain accessible in the investor relations section of the Companys Web site for a limited time.
BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended | ||||||||
April 3, 2016 | March 29, 2015 | |||||||
(In thousands, except per share amounts) | ||||||||
Revenues |
$ | 541,497 | $ | 546,957 | ||||
Cost of sales |
(316,462 | ) | (339,308 | ) | ||||
|
|
|
|
|||||
Gross profit |
225,035 | 207,649 | ||||||
Selling, general and administrative expenses |
(122,406 | ) | (140,048 | ) | ||||
Research and development |
(36,133 | ) | (36,199 | ) | ||||
Amortization of intangibles |
(25,532 | ) | (26,504 | ) | ||||
|
|
|
|
|||||
Operating income |
40,964 | 4,898 | ||||||
Interest expense, net |
(24,396 | ) | (23,846 | ) | ||||
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|
|
|
|||||
Income (loss) before taxes |
16,568 | (18,948 | ) | |||||
Income tax expense |
(143 | ) | (688 | ) | ||||
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|
|
|
|||||
Net income (loss) |
16,425 | (19,636 | ) | |||||
Less: Net loss attributable to noncontrolling interest |
(99 | ) | | |||||
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|
|||||
Net income (loss) attributable to Belden stockholders |
$ | 16,524 | $ | (19,636 | ) | |||
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|||||
Weighted average number of common shares and equivalents: |
||||||||
Basic |
42,008 | 42,535 | ||||||
Diluted |
42,440 | 42,535 | ||||||
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Basic income (loss) per share attributable to Belden stockholders |
$ | 0.39 | $ | (0.46 | ) | |||
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Diluted income (loss) per share attributable to Belden stockholders |
$ | 0.39 | $ | (0.46 | ) | |||
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Dividends declared per share |
$ | 0.05 | $ | 0.05 |
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 April 3, 2016 |
||||||||||||||||||||||||
Segment Revenues |
$ | 171,272 | $ | 135,892 | $ | 141,091 | $ | 53,882 | $ | 41,663 | $ | 543,800 | ||||||||||||
Segment EBITDA |
23,267 | 23,736 | 22,987 | 8,609 | 11,467 | 90,066 | ||||||||||||||||||
Segment EBITDA margin |
13.6 | % | 17.5 | % | 16.3 | % | 16.0 | % | 27.5 | % | 16.6 | % | ||||||||||||
Depreciation expense |
3,962 | 3,389 | 2,718 | 524 | 1,070 | 11,663 | ||||||||||||||||||
Amortization of intangibles |
12,931 | 429 | 591 | 1,510 | 10,071 | 25,532 | ||||||||||||||||||
Severance, restructuring, and acquisition integration costs |
4,378 | 500 | 865 | 2,665 | | 8,408 | ||||||||||||||||||
Purchase accounting effects of acquisitions |
195 | | | | | 195 | ||||||||||||||||||
Deferred gross profit adjustments |
614 | | | | 1,689 | 2,303 | ||||||||||||||||||
For the three months ended March 29, 2015 |
||||||||||||||||||||||||
Segment Revenues |
$ | 176,500 | $ | 141,781 | $ | 152,972 | $ | 61,073 | $ | 37,125 | $ | 569,451 | ||||||||||||
Segment EBITDA |
23,127 | 20,009 | 24,173 | 11,087 | 9,901 | 88,297 | ||||||||||||||||||
Segment EBITDA margin |
13.1 | % | 14.1 | % | 15.8 | % | 18.2 | % | 26.7 | % | 15.5 | % | ||||||||||||
Depreciation expense |
3,973 | 3,214 | 2,851 | 559 | 944 | 11,541 | ||||||||||||||||||
Amortization of intangibles |
12,426 | 432 | 823 | 1,410 | 11,413 | 26,504 | ||||||||||||||||||
Severance, restructuring, and acquisition integration costs |
11,527 | 568 | 1,773 | (52 | ) | 667 | 14,483 | |||||||||||||||||
Purchase accounting effects of acquisitions |
| | 267 | | 9,155 | 9,422 | ||||||||||||||||||
Deferred gross profit adjustments |
3,294 | | | | 18,364 | 21,658 | ||||||||||||||||||
For the three months ended June 28, 2015 |
||||||||||||||||||||||||
Segment Revenues |
$ | 174,923 | $ | 161,827 | $ | 160,875 | $ | 61,270 | $ | 39,618 | $ | 598,513 | ||||||||||||
Segment EBITDA |
22,878 | 29,792 | 28,680 | 10,178 | 8,772 | 100,300 | ||||||||||||||||||
Segment EBITDA margin |
13.1 | % | 18.4 | % | 17.8 | % | 16.6 | % | 22.1 | % | 16.8 | % | ||||||||||||
Depreciation expense |
4,140 | 3,180 | 2,869 | 584 | 919 | 11,692 | ||||||||||||||||||
Amortization of intangibles |
12,595 | 429 | 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 |
||||||||||||||||||||||||
Segment Revenues |
$ | 186,722 | $ | 155,148 | $ | 147,702 | $ | 59,184 | $ | 41,359 | $ | 590,115 | ||||||||||||
Segment EBITDA |
27,369 | 25,705 | 23,225 | 10,466 | 11,240 | 98,005 | ||||||||||||||||||
Segment EBITDA margin |
14.7 | % | 16.6 | % | 15.7 | % | 17.7 | % | 27.2 | % | 16.6 | % | ||||||||||||
Depreciation expense |
4,027 | 3,156 | 2,810 | 570 | 1,255 | 11,818 | ||||||||||||||||||
Amortization of intangibles |
12,354 | 429 | 799 | 1,480 | 10,607 | 25,669 | ||||||||||||||||||
Severance, restructuring, and acquisition integration costs |
13,722 | 192 | 118 | 54 | 57 | 14,143 | ||||||||||||||||||
Deferred gross profit adjustments |
419 | | | | 10,909 | 11,328 | ||||||||||||||||||
For the three months ended |
||||||||||||||||||||||||
Segment Revenues |
$ | 201,825 | $ | 147,154 | $ | 141,801 | $ | 62,776 | $ | 48,948 | $ | 602,504 | ||||||||||||
Segment EBITDA |
40,264 | 24,708 | 23,863 | 11,522 | 14,707 | 115,064 | ||||||||||||||||||
Segment EBITDA margin |
19.9 | % | 16.8 | % | 16.8 | % | 18.4 | % | 30.0 | % | 19.1 | % | ||||||||||||
Depreciation expense |
4,052 | 3,144 | 2,705 | 580 | 1,019 | 11,500 | ||||||||||||||||||
Amortization of intangibles |
12,439 | 428 | 725 | 1,490 | 10,619 | 25,701 | ||||||||||||||||||
Severance, restructuring, and acquisition integration costs |
10,535 | (109 | ) | 3,174 | 167 | (130 | ) | 13,637 | ||||||||||||||||
Purchase accounting effects of acquisitions |
114 | 70 | 67 | 32 | 42 | 325 | ||||||||||||||||||
Deferred gross profit adjustments |
(343 | ) | | | | 6,793 | 6,450 |
BELDEN INC.
OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS
(Unaudited)
Three Months Ended | ||||||||||||||||||||
April 3, 2016 | March 29, 2015 | June 28, 2015 | September 27, 2015 | December 31, 2015 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Total Segment Revenues |
$ | 543,800 | $ | 569,451 | $ | 598,513 | $ | 590,115 | $ | 602,504 | ||||||||||
Deferred revenue adjustments |
(2,303 | ) | (22,494 | ) | (12,758 | ) | (10,849 | ) | (5,260 | ) | ||||||||||
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Consolidated Revenues |
$ | 541,497 | $ | 546,957 | $ | 585,755 | $ | 579,266 | $ | 597,244 | ||||||||||
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|||||||||||
Total Segment EBITDA |
$ | 90,066 | $ | 88,297 | $ | 100,300 | $ | 98,005 | $ | 115,064 | ||||||||||
Income (loss) from equity method investment |
(170 | ) | 768 | 343 | 348 | 311 | ||||||||||||||
Eliminations |
(831 | ) | (559 | ) | (544 | ) | (893 | ) | (752 | ) | ||||||||||
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|||||||||||
Consolidated Adjusted EBITDA (1) |
89,065 | 88,506 | 100,099 | 97,460 | 114,623 | |||||||||||||||
Depreciation expense |
(11,663 | ) | (11,541 | ) | (11,692 | ) | (11,818 | ) | (11,500 | ) | ||||||||||
Amortization of intangibles |
(25,532 | ) | (26,504 | ) | (25,917 | ) | (25,669 | ) | (25,701 | ) | ||||||||||
Severance, restructuring, and acquisition integration costs |
(8,408 | ) | (14,483 | ) | (4,907 | ) | (14,143 | ) | (13,637 | ) | ||||||||||
Deferred gross profit adjustments |
(2,303 | ) | (21,658 | ) | (13,440 | ) | (11,328 | ) | (6,450 | ) | ||||||||||
Purchase accounting effects related to acquisitions |
(195 | ) | (9,422 | ) | | | (325 | ) | ||||||||||||
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Consolidated operating income |
40,964 | 4,898 | 44,143 | 34,502 | 57,010 | |||||||||||||||
Interest expense, net |
(24,396 | ) | (23,846 | ) | (24,769 | ) | (25,416 | ) | (26,582 | ) | ||||||||||
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Consolidated income (loss) before taxes |
$ | 16,568 | $ | (18,948 | ) | $ | 19,374 | $ | 9,086 | $ | 30,428 | |||||||||
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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
April 3, 2016 | December 31, 2015 | |||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
ASSETS | ||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 146,264 | $ | 216,751 | ||||
Receivables, net |
346,210 | 387,386 | ||||||
Inventories, net |
215,947 | 195,942 | ||||||
Other current assets |
44,489 | 37,079 | ||||||
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|
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Total current assets |
752,910 | 837,158 | ||||||
Property, plant and equipment, less accumulated depreciation |
316,435 | 310,629 | ||||||
Goodwill |
1,406,058 | 1,385,115 | ||||||
Intangible assets, less accumulated amortization |
642,939 | 655,871 | ||||||
Deferred income taxes |
36,481 | 34,295 | ||||||
Other long-lived assets |
68,772 | 67,534 | ||||||
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|
|||||
$ | 3,223,595 | $ | 3,290,602 | |||||
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LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 208,921 | $ | 223,514 | ||||
Accrued liabilities |
281,392 | 323,249 | ||||||
Current maturities of long-term debt |
2,500 | 2,500 | ||||||
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|
|||||
Total current liabilities |
492,813 | 549,263 | ||||||
Long-term debt |
1,689,664 | 1,725,282 | ||||||
Postretirement benefits |
107,054 | 105,230 | ||||||
Deferred income taxes |
49,341 | 46,034 | ||||||
Other long-term liabilities |
45,416 | 39,270 | ||||||
Stockholders equity: |
||||||||
Common stock |
503 | 503 | ||||||
Additional paid-in capital |
606,591 | 605,660 | ||||||
Retained earnings |
694,119 | 679,716 | ||||||
Accumulated other comprehensive loss |
(60,705 | ) | (58,987 | ) | ||||
Treasury stock |
(402,524 | ) | (402,793 | ) | ||||
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|
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Total Belden stockholders equity |
837,984 | 824,099 | ||||||
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|
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Noncontrolling interest |
1,323 | 1,424 | ||||||
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|
|||||
Total stockholders equity |
839,307 | 825,523 | ||||||
|
|
|
|
|||||
$ | 3,223,595 | $ | 3,290,602 | |||||
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BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited)
Three Months Ended | ||||||||
April 3, 2016 | March 29, 2015 | |||||||
(In thousands) | ||||||||
Cash flows from operating activities: |
||||||||
Net income (loss) |
$ | 16,425 | $ | (19,636 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: |
||||||||
Depreciation and amortization |
37,195 | 38,045 | ||||||
Share-based compensation |
4,100 | 5,006 | ||||||
Tax deficiency (benefit) related to share-based compensation |
67 | (3,690 | ) | |||||
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses: |
||||||||
Receivables |
45,098 | 10,341 | ||||||
Inventories |
(16,625 | ) | (18,211 | ) | ||||
Accounts payable |
(17,187 | ) | (34,562 | ) | ||||
Accrued liabilities |
(52,607 | ) | (23,965 | ) | ||||
Accrued taxes |
(6,395 | ) | (50 | ) | ||||
Other assets |
(1,226 | ) | (2,406 | ) | ||||
Other liabilities |
3,834 | 923 | ||||||
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|
|||||
Net cash provided by (used for) operating activities |
12,679 | (48,205 | ) | |||||
Cash flows from investing activities: |
||||||||
Cash used to acquire businesses, net of cash acquired |
(15,348 | ) | (695,345 | ) | ||||
Capital expenditures |
(13,431 | ) | (15,456 | ) | ||||
Proceeds from disposal of tangible assets |
10 | 6 | ||||||
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|
|||||
Net cash used for investing activities |
(28,769 | ) | (710,795 | ) | ||||
Cash flows from financing activities: |
||||||||
Payments under borrrowing arrangements |
(50,625 | ) | | |||||
Withholding tax payments for share-based payment awards, net of proceeds from the exercise of stock options |
(2,833 | ) | (10,842 | ) | ||||
Cash dividends paid |
(2,101 | ) | (2,140 | ) | ||||
Tax benefit (deficiency) related to share-based compensation |
(67 | ) | 3,690 | |||||
Borrowings under credit arrangements |
| 200,000 | ||||||
Debt issuance costs paid |
| (622 | ) | |||||
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|
|
|
|||||
Net cash provided by (used for) financing activities |
(55,626 | ) | 190,086 | |||||
Effect of foreign currency exchange rate changes on cash and cash equivalents |
1,229 | (5,548 | ) | |||||
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|
|
|||||
Decrease in cash and cash equivalents |
(70,487 | ) | (574,462 | ) | ||||
Cash and cash equivalents, beginning of period |
216,751 | 741,162 | ||||||
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Cash and cash equivalents, end of period |
$ | 146,264 | $ | 166,700 | ||||
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BELDEN INC.
CONSOLIDATED 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; 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 | ||||||||||||
April 3, 2016 | March 29, 2015 | December 31, 2015 | ||||||||||
(In thousands, except percentages and per share amounts) | ||||||||||||
GAAP revenues |
$ | 541,497 | $ | 546,957 | $ | 597,244 | ||||||
Deferred revenue adjustments |
2,303 | 22,494 | 5,260 | |||||||||
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|||||||
Adjusted revenues |
$ | 543,800 | $ | 569,451 | $ | 602,504 | ||||||
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|
|||||||
GAAP gross profit |
$ | 225,034 | $ | 207,649 | $ | 250,117 | ||||||
Deferred gross profit adjustments |
2,303 | 21,658 | 6,450 | |||||||||
Severance, restructuring, and acquisition integration costs |
2,298 | 1,466 | 3,074 | |||||||||
Purchase accounting effects related to acquisitions |
195 | 267 | | |||||||||
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|||||||
Adjusted gross profit |
$ | 229,830 | $ | 231,040 | $ | 259,641 | ||||||
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|||||||
GAAP gross profit margin |
41.6 | % | 38.0 | % | 41.9 | % | ||||||
Adjusted gross profit margin |
42.3 | % | 40.6 | % | 43.1 | % | ||||||
GAAP operating income |
$ | 40,964 | $ | 4,898 | $ | 57,010 | ||||||
Amortization of intangible assets |
25,532 | 26,504 | 25,701 | |||||||||
Severance, restructuring, and acquisition integration costs |
8,408 | 14,483 | 13,637 | |||||||||
Deferred gross profit adjustments |
2,303 | 21,658 | 6,450 | |||||||||
Accelerated depreciation |
206 | 140 | 81 | |||||||||
Purchase accounting effects related to acquisitions |
195 | 9,422 | 325 | |||||||||
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Total operating income adjustments |
36,644 | 72,207 | 46,194 | |||||||||
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Depreciation expense |
11,457 | 11,401 | 11,419 | |||||||||
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Adjusted EBITDA |
$ | 89,065 | $ | 88,506 | $ | 114,623 | ||||||
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GAAP operating income margin |
7.6 | % | 0.9 | % | 9.5 | % | ||||||
Adjusted EBITDA margin |
16.4 | % | 15.5 | % | 19.0 | % | ||||||
GAAP net income (loss) |
$ | 16,425 | $ | (19,636 | ) | $ | 49,656 | |||||
Operating income adjustments from above |
36,644 | 72,207 | 46,194 | |||||||||
Tax effect of adjustments |
(10,494 | ) | (9,309 | ) | (26,558 | ) | ||||||
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Adjusted net income |
$ | 42,575 | $ | 43,262 | $ | 69,292 | ||||||
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GAAP net income (loss) |
$ | 16,425 | $ | (19,636 | ) | $ | 49,656 | |||||
Less: Net loss attributable to noncontrolling interest |
(99 | ) | | (24 | ) | |||||||
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GAAP net income (loss) attributable to Belden stockholders |
$ | 16,524 | $ | (19,636 | ) | $ | 49,680 | |||||
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Adjusted net income |
$ | 42,575 | $ | 43,262 | $ | 69,292 | ||||||
Less: Net loss attributable to noncontrolling interest |
(99 | ) | | (24 | ) | |||||||
Less: Amortization expense attributable to noncontrolling interest, net of tax |
16 | | 5 | |||||||||
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Adjusted net income attributable to Belden stockholders |
$ | 42,658 | $ | 43,262 | $ | 69,311 | ||||||
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GAAP income (loss) per diluted share attributable to Belden stockholders |
$ | 0.39 | $ | (0.46 | ) | $ | 1.17 | |||||
Adjusted income per diluted share attributable to Belden stockholders |
$ | 1.01 | $ | 1.00 | $ | 1.63 | ||||||
GAAP diluted weighted average shares |
42,440 | 42,535 | 42,482 | |||||||||
Adjustment for anti-dilutive shares that are dilutive under adjusted measures |
| 677 | | |||||||||
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Adjusted diluted weighted average shares |
42,440 | 43,212 | 42,482 |
BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
FREE CASH FLOW
(Unaudited)
We define free cash flow, which is a non-GAAP financial measure, as net cash from operating activities adjusted for capital expenditures net of the 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 | Three Months Ended | |||||||
April 3, 2016 | March 29, 2015 | |||||||
(In thousands) | ||||||||
GAAP net cash provided by (used for) operating activities |
$ | 12,679 | $ | (48,205 | ) | |||
Capital expenditures, net of proceeds from |
||||||||
the disposal of tangible assets |
(13,421 | ) | (15,450 | ) | ||||
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Non-GAAP free cash flow |
$ | (742 | ) | $ | (63,655 | ) | ||
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BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
2016 REVENUES AND EARNINGS GUIDANCE
Year Ended | Three Months Ended | |||
December 31, 2016 | July 3, 2016 | |||
Adjusted revenues |
$2.320 - $2.370 billion | $570 - $590 million | ||
Deferred revenue adjustments |
($7 million) | ($2 million) | ||
|
| |||
GAAP revenues |
$2.313 - $2.363 billion | $568 - $588 million | ||
|
| |||
Adjusted income per diluted share attributable to Belden stockholders |
$5.15 - $5.45 | $1.20 - $1.30 | ||
Amortization of intangible assets |
($1.64) | ($0.43) | ||
Severance, restructuring, and acquisition integration costs |
($0.56) | ($0.12) | ||
Deferred gross profit adjustments |
($0.11) | ($0.03) | ||
|
| |||
GAAP income per diluted share attributable to Belden stockholders |
$2.84 - $3.14 | $0.62 - $0.72 | ||
|
|
Our guidance for revenues and income per diluted share attributable to Belden stockholders is based upon information currently available regarding events and conditions that will impact our future operating results. In particular, our results are subject to the factors listed in the Forward-Looking Statements in this release. In addition, 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, restructuring, and acquisition integration 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 Strong Results for First Quarter 2016
Earnings per Share (EPS)
All references to EPS within this earnings release refer to income per diluted share attributable to Belden stockholders.
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. GAAP to non-GAAP reconciliations accompany the condensed 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, and statements made by us concerning the release may contain, forward-looking statements, including our expectations for the second quarter and full-year 2016. Forward-looking statements include statements regarding future financial performance (including revenues, expenses, earnings, margins, cash flows, dividends, capital expenditures and financial condition), plans and objectives, and related assumptions. In some cases these statements are identifiable through the use of words such as anticipate, believe, estimate, forecast, guide, expect, intend, plan, project, target, can, could, may, should, will, would and similar expressions. 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, without limitation: 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 execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); the inability to successfully complete and integrate acquisitions in furtherance of the Companys strategic plan; 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; risks related to the use of open source software; the inability to retain senior management and key employees; disruptions in the Companys information systems including due to cyber-attacks; variability in the Companys quarterly and annual effective tax rates; perceived or actual product failures; political and economic uncertainties in the countries where the Company conducts business, including emerging markets; 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 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, 2015, filed with the SEC on February 25, 2016. Although the content of this release represents our best judgment as of the date of this report based on
Belden Reports Strong Results for First Quarter 2016
information currently available and reasonable assumptions, we give no assurances that the expectations will prove to be accurate. Deviations from the expectations may be material. For these reasons, Belden cautions readers to not place undue reliance on these forward-looking statements, which speak only as of the date made. 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.
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
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