EX-99.1 2 c26042exv99w1.htm COMPANY NEWS RELEASE exv99w1
 

Exhibit 99.1
         
(BELDEN SENDING ALL THE RIGHT SIGNALS LOGO)
  7701 Forsyth Boulevard
Suite 800
St. Louis, Missouri 63105
  Phone: 314.854.8000
Fax: 314.854.8003

www.Belden.com
News Release
         
From:
  Belden
 
  Dee Johnson
 
  314.854.8054
For Immediate Release — April 24, 2008
BELDEN ANNOUNCES 37 PERCENT INCREASE IN ADJUSTED DILUTED EPS
First Quarter 2008 Highlights
    Consolidated revenue increased 52.0 percent to $511.8 million from $336.7 million.
 
    First quarter adjusted diluted EPS increased 36.7 percent to $0.67 per share from $0.49 in the prior-year period.
 
    Belden’s European segment achieved double-digit adjusted operating margin.
 
    The full-year 2008 outlook for adjusted diluted EPS is $3.45 to $3.65.
St. Louis, Missouri — Thursday, April 24, 2008 — Belden (NYSE:BDC), a leader in the design, manufacture, and marketing of signal transmission solutions for industrial automation, data networking, and a wide range of specialty electronics markets, today announced results of the first quarter ended March 30, 2008.
First Quarter 2008 Results
In the first quarter, revenue was $511.8 million and operating income was $26.6 million. Net income was $13.2 million, or $0.27 per diluted share. The quarter’s revenue included $167.0 million from businesses acquired during 2007 and $15.3 million of favorable currency translation.
During the quarter, Belden recorded non-cash asset impairment charges of $11.5 million pre-tax, primarily associated with the plan to close a plant in Manchester, Connecticut; a loss on the sale of real estate of $1.0 million pre-tax; severance charges of $6.5 million pre-tax associated with the previously announced Voluntary Separation Program; and severance and other restructuring costs of $5.6 million pre-tax primarily in connection with the reorganization of its European operations. Additionally, Belden recorded a one-time income tax charge of $2.0 million resulting from the enactment of tax rate changes affecting the Company’s recently acquired foreign operations. In the first quarter of 2007, the Company incurred pre-tax charges of $3.3 million for severance, asset impairment charges, and adjusted depreciation associated with restructuring actions in North America and Europe.
Adjusted for these items, operating income in the first quarter increased 26.6 percent year over year to $51.3 million. As a percent of revenue, adjusted operating income was 10.0 percent in the first quarter of 2008, compared with 12.0 percent in the first quarter of 2007. Adjusted diluted

 


 

income per share from continuing operations was $0.67 in the first quarter of 2008, a 36.7 percent increase from $0.49 in the first quarter of 2007. See the attached schedule, Adjusted Operating Results, for a reconciliation of GAAP results to adjusted results.
“Geographic diversity, driven by our successful 2007 acquisitions, is working in our favor. Strong revenue and margin performance by our European and Asian businesses offset weakness in North America,” said John Stroup, President and Chief Executive Officer. “Additionally, the operating margin of our European segment, as well as the legacy cable operations in the segment, exceeded our near-term goal of 10 percent. To address the weakness in our North American volume, we enacted countermeasures throughout the quarter, including reducing our work force in several locations, moving ahead with the decision to close the Connecticut plant, and delaying rehiring for most of the positions vacated through the Voluntary Separation Program.”
In a sale-and-leaseback arrangement, Belden received $23.4 million net cash proceeds during the first quarter from the sale of the recently built plant in Nogales, Mexico.
Outlook
“We continue to expect our total revenue to be between $2.2 and $2.3 billion for the year with a higher percentage coming from outside the United States,” said Mr. Stroup. “As a result, we expect our adjusted operating income to be between 12 and 13 percent of revenue and adjusted earnings per diluted share to be between $3.45 and $3.65.”
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. These forward-looking statements are based on forecasts and projections about the 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. Some of the factors that may cause actual results to differ from the Company’s expectations include demand for the Company’s products; the cost and availability of materials including copper, plastic compounds derived from fossil fuels, and other materials; energy costs; the Company’s ability to integrate successfully the acquired businesses; 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, 2007, filed with the SEC on February 29, 2008. Belden disclaims any duty to update any forward-looking statements as a result of new information, future developments, or otherwise.
About Belden
Belden is a leader in the design, manufacture, and marketing of signal transmission solutions for data networking and a wide range of specialty electronics markets including entertainment, industrial, security and aerospace applications. To obtain additional information contact Investor Relations at 314-854-8054, or visit our website at www.belden.com.
     
Contact:
   
 
  Belden
 
  Dee Johnson, Director of Investor Relations
 
  and Corporate Communications
 
  314-854-8054
The following schedules are provided:
    Comparative condensed consolidated statements of operations for the three-month periods ended March 30, 2008, and March 25, 2007.

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    Segment results for the same periods.
 
    Condensed consolidated balance sheets as of March 30, 2008, and December 31, 2007.
 
    A supplemental schedule of adjusted consolidated results for the quarter and the prior-year comparable period, excluding certain non-recurring severance charges, asset impairment, restructuring charges, adjusted depreciation and discrete tax items.

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BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
                 
    Three Months Ended  
    March 30, 2008     March 25, 2007  
    (In thousands, except per share amounts)  
 
               
Revenues
  $ 511,826     $ 336,703  
Cost of sales
    (366,009 )     (246,014 )
 
           
Gross profit
    145,817       90,689  
Selling, general and administrative expenses
    (97,715 )     (51,903 )
Research and development
    (9,071 )     (146 )
Loss on sale of assets
    (884 )      
Asset impairment
    (11,549 )     (1,392 )
 
           
Operating income
    26,598       37,248  
Interest expense
    (7,819 )     (2,526 )
Interest income
    957       2,743  
Other income (expense)
    1,168       (2,016 )
 
           
Income before taxes
    20,904       35,449  
Income tax expense
    (7,684 )     (13,435 )
 
           
Net income
  $ 13,220     $ 22,014  
 
           
 
               
Weighted average number of common shares and equivalents:
               
Basic
    44,139       44,465  
Diluted
    48,377       51,689  
 
               
Basic income per share
  $ 0.30     $ 0.50  
 
               
Diluted income per share
  $ 0.27     $ 0.44  
 
               
Dividends declared
  $ 0.05     $ 0.05  

 


 

BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)
                                 
    External                     Operating  
    Customer     Affiliate     Total     Income  
    Revenues     Revenues     Revenues     (Loss)  
    (In thousands)  
 
                               
Three Months Ended March 30, 2008
                               
 
                               
Belden Americas
  $ 186,278     $ 19,828     $ 206,106     $ 31,281  
Specialty Products
    53,432       18,345       71,777       (7,082 )
Europe
    184,563       6,056       190,619       16,909  
Asia Pacific
    87,553             87,553       8,897  
 
                       
Total Segments
    511,826       44,229       556,055       50,005  
Finance and Administration
                      (13,896 )
Eliminations
          (44,229 )     (44,229 )     (9,511 )
 
                       
Total Continuing Operations
  $ 511,826     $     $ 511,826     $ 26,598  
 
                       
 
                               
Three Months Ended March 25, 2007
                               
 
                               
Belden Americas
  $ 186,298     $ 11,278     $ 197,576     $ 34,308  
Specialty Products
    56,653       12,423       69,076       10,315  
Europe
    81,948       2,708       84,656       3,802  
Asia Pacific
    11,804             11,804       1,527  
 
                       
Total Segments
    336,703       26,409       363,112       49,952  
Finance and Administration
                      (7,940 )
Eliminations
          (26,409 )     (26,409 )     (4,764 )
 
                       
Total Continuing Operations
  $ 336,703     $     $ 336,703     $ 37,248  
 
                       

 


 

BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
                 
    March 30, 2008     December 31, 2007  
    (Unaudited)          
    (In thousands)  
 
               
ASSETS
Current assets:
               
Cash and cash equivalents
  $ 196,842     $ 159,964  
Receivables
    370,882       373,108  
Inventories, net
    262,687       257,540  
Deferred income taxes
    28,931       28,578  
Other current assets
    17,313       17,392  
 
           
 
               
Total current assets
    876,655       836,582  
 
               
Property, plant and equipment, less accumulated depreciation
    328,516       369,803  
Goodwill
    704,399       648,882  
Intangible assets, less accumulated amortization
    157,484       154,786  
Other long-lived assets
    65,414       58,796  
 
           
 
               
 
  $ 2,132,468     $ 2,068,849  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
               
Accounts payable and accrued liabilities
  $ 375,693     $ 350,047  
Current maturities of long-term debt
    110,000       110,000  
 
           
 
               
Total current liabilities
    485,693       460,047  
 
               
Long-term debt
    350,000       350,000  
Postretirement benefits
    103,387       98,084  
Deferred income taxes
    64,075       78,140  
Other long-term liabilities
    13,558       9,915  
Stockholders’ equity:
               
Common stock
    503       503  
Additional paid-in capital
    642,524       638,690  
Retained earnings
    489,790       478,776  
Accumulated other comprehensive income
    153,975       93,198  
Treasury stock
    (171,037 )     (138,504 )
 
           
 
               
Total stockholders’ equity
    1,115,755       1,072,663  
 
           
 
               
 
  $ 2,132,468     $ 2,068,849  
 
           

 


 

BELDEN INC.
ADJUSTED OPERATING RESULTS
(Unaudited)
In addition to reporting financial results in accordance with accounting principles generally accepted in the United States, we provide operating results adjusted for severance charges, adjusted depreciation, asset impairments, gains (losses) on disposals of assets, and one time tax benefits (charges). We utilize the adjusted results to review our ongoing operations without the effect of restructuring and related charges and for comparison to budgeted operating results. We believe these adjusted results are useful to investors because they help them compare our results to previous periods and provide insights into underlying trends in the business. Adjusted results should be considered only in conjunction with results reported according to accounting principles generally accepted in the United States.
                         
    As        
    Reported   Adjustments   Adjusted
    (In thousands, except percentages and per share amounts)
 
                       
Three Months Ended March 30, 2008
                       
 
                       
Revenues
  $ 511,826     $     $ 511,826  
 
                       
Gross profit
  $ 145,817     $ 3,956     $ 149,773  
as a percent of revenues
    28.5 %             29.3 %
 
                       
Operating income
  $ 26,598     $ 24,688     $ 51,286  
as a percent of revenues
    5.2 %             10.0 %
 
                       
Net income
  $ 13,220     $ 18,963     $ 32,183  
as a percent of revenues
    2.6 %             6.3 %
 
                       
Net income per diluted share
  $ 0.27     $ 0.40     $ 0.67  
 
                       
Three Months Ended March 25, 2007
                       
 
                       
Revenues
  $ 336,703     $     $ 336,703  
 
                       
Gross profit
  $ 90,689     $ 1,543     $ 92,232  
as a percent of revenues
    26.9 %             27.4 %
 
                       
Operating income
  $ 37,248     $ 3,273     $ 40,521  
as a percent of revenues
    11.1 %             12.0 %
 
                       
Net income
  $ 22,014     $ 2,515     $ 24,529  
as a percent of revenues
    6.5 %             7.3 %
 
                       
Net income per diluted share
  $ 0.44     $ 0.05     $ 0.49  
Adjustments for the three months ended March 30, 2008 included pre-tax charges for asset impairment, severance associated with the Voluntary Separation Program, and severance and other restructuring costs of $11.5 million, $6.5 million, and $5.6 million, respectively, a $1.0 million pre-tax loss on the disposal of certain tangible assets, and a $2.0 million one-time tax charge.
Adjustments for the three months ended March 25, 2007 included pre-tax charges for asset impairment, severance, and adjusted depreciation of $1.4 million, $0.8 million, and $0.8 million, respectively, and a $0.2 million pre-tax loss on the disposal of certain tangible assets.