EX-99.1 2 c14558exv99w1.htm COMPANY NEWS RELEASE exv99w1
 

         
(BELDEN LOGO)
  7701 Forsyth Boulevard
Suite 800
St. Louis, Missouri 63105
  Phone: 314.854.8000
Fax: 314.854.8003

www.Belden.com
Exhibit 99.1
         
From:
  Belden
 
  Dee Johnson
 
  314.854.8054
For Immediate Release – April 26, 2007
BELDEN ANNOUNCES FIRST QUARTER 2007 RESULTS
First-quarter adjusted earnings per diluted share were $0.49. Strong operating profit reflects progress in implementation of strategic initiatives, and Belden raised its 2007 outlook.
St. Louis, Missouri – Belden (NYSE:BDC) today announced that revenue for the first quarter ended March 25, 2007, was $336.7 million and operating income was $37.2 million. Income from continuing operations was $22.0 million, or $0.44 per diluted share. The quarterly revenue increase of 4.6 percent from the prior-year first quarter revenue included 1.6 percent favorable currency translation.
During the quarter, Belden recorded $3.3 million pretax in severance, asset impairment, and adjusted depreciation charges associated with previously announced restructuring activities in North America and Europe. In the first quarter of 2006, the Company incurred pretax charges of $2.4 million for severance and accelerated depreciation associated with European restructuring.
Adjusted for these items, operating income increased 38.0 percent year over year to $40.5 million in the first quarter 2007. As a percent of revenue, adjusted operating income was 12.0 percent in the first quarter of 2007, compared with 9.1 percent in the first quarter of 2006. Adjusted diluted income per share from continuing operations was $0.49 in the first quarter of 2007, a 36.1 percent increase from $0.36 in the first quarter of 2006. See the attached schedule, Adjusted Operating Results, for a reconciliation of GAAP results to adjusted results.
“Our 2007 performance is off to a good start,” said John Stroup, President and Chief Executive Officer of Belden. “In the first quarter we made further progress in the implementation of our strategic plan. Our operating income increased significantly from the 2006 first quarter both in dollars and as a percent of revenues. These increases reflect the continuing impact of our product portfolio management and regional manufacturing initiatives. The healthy operating results were combined with continuing progress in reducing our working capital to generate strong free cash flow in the quarter.”
Items of Note
Items of special note for the quarter include the following:
  §   On January 11 and January 16, the Company completed the sale of two manufacturing facilities previously closed as part of its regional manufacturing strategy, providing net cash proceeds of $6.7 million during the quarter.
 
  §   On February 16, the Company expanded its credit facility from $165 million to $225 million and prepaid its $62 million private placement notes.
 
  §   On March 16, the Company completed an offering of $350 million of senior subordinated notes due 2017 at an interest rate of 7.0%.

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Subsequent Events
The following events occurred after the March 25 quarter end:
  §   The acquisition of Hirschmann Automation and Control on March 26.
 
  §   The acquisition of LTK Wiring Company Limited on March 27.
 
  §   The announcement on March 28 of plans to acquire Lumberg Automation Components.
 
  §   The exchange of the Company’s $110 million of convertible debentures, to insert a net share settlement feature, on April 20. One hundred percent of the issue was exchanged.
Outlook
“Our first-quarter financial performance was very strong and indicates progress on many of our operating margin improvement initiatives,” Mr. Stroup said. “Additionally, first-quarter new orders represented a book-to-bill ratio of over 1.1, which reflects a strong climate for our products and vertical markets.”
The Company’s previous guidance for the year 2007 included the anticipated accretive benefits of the LTK Wiring and Hirschmann Automation acquisitions, as well as the impact associated with the successful sale of $350 million of senior subordinated debt. Previous guidance was for consolidated revenue to be between $1.9 to $2.0 billion and earnings per diluted share between $2.40 and $2.65 for the year, excluding any future charges for severance and asset impairment that may result from actions already announced.
“Including the pending acquisition of Lumberg Automation Components and the favorable execution of our convertible note exchange, we now expect consolidated revenue to achieve $2.0 billion and earnings per diluted share to be between $2.50 and $2.70 for the year, excluding any future charges for severance and asset impairment that may result from actions already announced,” Mr. Stroup concluded.
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, 2006, filed with the SEC on March 1, 2007. Belden disclaims any duty to update any forward-looking statements as a result of new information, future developments, or otherwise.

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About Belden
Belden is a leader in the design, manufacture, and marketing of signal transmission products 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
314-854-8054
The following schedules are provided:
    comparative condensed consolidated statements of operations for the three-month periods ended March 25, 2007, and March 26, 2006.
 
    segment results for the same periods.
 
    condensed consolidated balance sheets as of March 25, 2007, and December 31, 2006.
 
    a supplemental schedule of adjusted consolidated results for the quarter, excluding severance charges, asset impairment, adjusted depreciation, and a loss recognized on the disposal of certain tangible assets.

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BELDEN CDT INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
                 
    Three Months Ended  
    March 25, 2007     March 26, 2006  
    (In thousands, except per share amounts)  
Revenues
  $ 336,703     $ 321,905  
Cost of sales
    (246,014 )     (248,490 )
 
           
Gross profit
    90,689       73,415  
Selling, general and administrative expenses
    (52,049 )     (46,459 )
Asset impairment
    (1,392 )      
 
           
Operating income
    37,248       26,956  
Interest expense
    (2,526 )     (3,792 )
Interest income
    2,743       995  
Other expense
    (2,016 )     (217 )
 
           
Income from continuing operations before taxes
    35,449       23,942  
Income tax expense
    (13,435 )     (9,002 )
 
           
Income from continuing operations
    22,014       14,940  
Loss from discontinued operations, net of tax
          (1,330 )
Loss on disposal of discontinued operations, net of tax
          (4,298 )
 
           
Net income
  $ 22,014     $ 9,312  
 
           
 
               
Weighted average number of common shares and equivalents:
               
Basic
    44,465       42,550  
Diluted
    51,689       49,307  
 
               
Basic income (loss) per share:
               
Continuing operations
  $ 0.50     $ 0.35  
Discontinued operations
          (0.03 )
Disposal of discontinued operations
          (0.10 )
Net income
    0.50       0.22  
 
               
Diluted income (loss) per share:
               
Continuing operations
  $ 0.44     $ 0.32  
Discontinued operations
          (0.03 )
Disposal of discontinued operations
          (0.09 )
Net income
    0.44       0.20  
 
               
Dividends declared
  $ 0.05     $ 0.05  

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BELDEN CDT INC.
OPERATING SEGMENT INFORMATION
(Unaudited)
                                 
    External                     Operating  
    Customer     Affiliate     Total     Income  
    Revenues     Revenues     Revenues     (Loss)  
    (In thousands)                          
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  
 
                       
 
Three Months Ended March 26, 2006
                               
Belden Americas
  $ 178,395     $ 15,034     $ 193,429     $ 31,378  
Specialty Products
    57,689       5,248       62,937       6,557  
Europe
    73,012       2,136       75,148       (1,140 )
Asia Pacific
    12,809             12,809       1,453  
 
                       
Total Segments
    321,905       22,418       344,323       38,248  
Finance and Administration
                      (6,265 )
Eliminations
          (22,418 )     (22,418 )     (5,027 )
 
                       
Total Continuing Operations
  $ 321,905     $     $ 321,905     $ 26,956  
 
                       

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BELDEN CDT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
                 
    March 25,     December 31,  
    2007     2006  
    (Unaudited)          
    (In thousands)  
ASSETS
               
Current assets:
               
Cash and cash equivalents
  $ 602,530     $ 254,151  
Receivables
    230,503       217,908  
Inventories, net
    191,722       202,248  
Deferred income taxes
    34,632       34,664  
Other current assets
    12,017       10,465  
 
           
 
               
Total current assets
    1,071,404       719,436  
 
               
Property, plant and equipment, less accumulated depreciation
    267,613       272,285  
Goodwill, less accumulated amortization
    275,554       275,134  
Intangible assets, less accumulated amortization
    70,424       70,964  
Other long-lived assets
    28,555       18,149  
 
           
 
               
 
  $ 1,713,550     $ 1,355,968  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable and accrued liabilities
  $ 214,422     $ 200,008  
Current maturities of long-term debt
          62,000  
 
           
 
               
Total current liabilities
    214,422       262,008  
 
               
Long-term debt
    460,000       110,000  
Postretirement benefits other than pensions
    43,539       43,397  
Deferred income taxes
    66,188       71,399  
Other long-term liabilities
    26,074       25,263  
 
               
Stockholders’ equity:
               
Common stock
    503       503  
Additional paid-in capital
    623,651       591,416  
Retained earnings
    370,503       348,069  
Accumulated other comprehensive income
    20,083       15,013  
Treasury stock
    (111,413 )     (111,100 )
 
           
 
               
Total stockholders’ equity
    903,327       843,901  
 
           
 
  $ 1,713,550     $ 1,355,968  
 
           

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BELDEN CDT 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 impairment, and gains (losses) recognized on the disposal of certain tangible assets. 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 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 %
 
                       
Income from continuing operations
  $ 22,014     $ 2,515     $ 24,529  
as a percent of revenues
    6.5 %             7.3 %
 
                       
Income from continuing operations per diluted share
  $ 0.44     $ 0.05     $ 0.49  
 
                       
Three Months Ended March 26, 2006
                       
Revenues
  $ 321,905     $     $ 321,905  
 
                       
Gross profit
  $ 73,415     $ 1,638     $ 75,053  
as a percent of revenues
    22.8 %             23.3 %
 
                       
Operating income
  $ 26,956     $ 2,399     $ 29,355  
as a percent of revenues
    8.4 %             9.1 %
 
                       
Income from continuing operations
  $ 14,940     $ 2,161     $ 17,101  
as a percent of revenues
    4.6 %             5.3 %
 
                       
Income from continuing operations per diluted share
  $ 0.32     $ 0.04     $ 0.36  
Adjustments for the three months ended March 25, 2007 included after-tax charges for asset impairment, severance, and adjusted depreciation of $1.3 million, $0.5 million, and $0.5 million, respectively, and a $0.1 million after-tax loss on the disposal of certain tangible assets.
Adjustments for the three months ended March 26, 2006 included after-tax charges for severance and adjusted depreciation of $1.1 million and $1.1 million, respectively.

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