EX-99.1 2 c09411exv99w1.txt NEWS RELEASE [BELDEN LETTERHEAD] NEWS RELEASE EXHIBIT 99.1 FROM: BELDEN DEE JOHNSON 314.854.8054 FOR IMMEDIATE RELEASE -- OCTOBER 26, 2006 BELDEN ANNOUNCES THIRD QUARTER RESULTS OPERATING PROFIT EXCLUDING CHARGES IS 11.2 PERCENT, ADJUSTED EPS $0.54 ST. LOUIS, MISSOURI -- Belden (NYSE:BDC) today announced that revenue for the third quarter ended September 24, 2006, was $385.6 million and operating income was $35.6 million. Income from continuing operations was $24.4 million, or $0.50 per diluted share. The quarterly revenue increase of 21.8 percent from the prior-year third quarter revenue included 2.3 percent favorable currency translation. During the quarter, Belden recorded $7.7 million pretax in severance and asset impairment charges associated with previously announced restructuring activities in Europe and North America. The Company also recorded a one-time tax benefit of $4.7 million for the favorable resolution of prior-period tax contingencies. In the third quarter of 2005, the Company incurred pretax charges of $9.7 million for asset impairment and severance, executive succession, and merger integration and recorded a one-time tax benefit of $0.9 million. Adjusted for the charges, operating income increased 56.3 percent year over year to $43.3 million in the third quarter 2006. As a percent of revenue, operating income thus adjusted was 11.2 percent in the third quarter of 2006, compared with 8.7 percent in the third quarter of 2005. Adjusted for the charges and the tax items, diluted income per share from continuing operations was $0.54 in the third quarter of 2006, a 63.6 percent increase from $0.33 in the third quarter of 2005. See the attached schedule, Adjusted Operating Results, for a reconciliation of adjusted results to GAAP results. YEAR-TO-DATE RESULTS Year to date revenue of $1.12 billion increased 22.2 percent compared with $914 million in the first three quarters of 2005, including a favorable currency impact of $7.7 million, or 0.8 percent. Operating income year to date was $99.4 million, and income from continuing operations was $60.9 million, or $1.26 per diluted share. MANAGEMENT COMMENT "We are excited to see our strategic initiatives beginning to bear fruit," said John Stroup, President and Chief Executive Officer of Belden. "Through our product portfolio management activities, we improved our operating income while deliberately curtailing some less profitable sales. As we expected, our profitability in Europe improved, and we announced further steps in our European restructuring. During the period, we launched a new look for the Belden product brand and transitioned our corporate identity graphics from the post-merger Belden CDT to Belden. And in the enterprise market, we introduced the Belden Wireless Solution." ITEMS OF NOTE Items of special note for the quarter include the following: - On August 4, John Stroup and other members of the senior leadership team presented Belden's strategic plan and a business overview to an audience of analysts and institutional investors in New York. The slides and audio presentation are available at http://investor.belden.com/MediaList.cfm. - Gray Benoist joined Belden as Vice President, Finance and Chief Financial Officer. - Cash flow provided by operations exceeded $42 million in the quarter. OUTLOOK "We are reiterating our outlook for the remainder of the year," Mr. Stroup said. "We expect to report earnings per diluted share from continuing operations of $0.43 to $0.48 for the fourth quarter of this year, which would bring our annual result to $1.69 to $1.74. These estimates include expected severance charges of approximately $0.01 per share in the fourth quarter from the continuing implementation of our previously announced restructuring actions and $0.15 during the first three quarters for the net effect of severance costs, asset impairment charges, accelerated depreciation and the one-time tax benefit." FORWARD-LOOKING STATEMENTS Statements in this release, including those under "Outlook," 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 degree to which the Company will be able to compensate for rising costs through the pricing of its products; the Company's Page 2 ability to implement its announced restructuring plans; the Company's ability to rationalize production as it reduces working capital; 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, 2005, filed with the SEC on March 16, 2006. Belden disclaims any duty to update any forward-looking statements as a result of new information, future developments, or otherwise, or to continue the practice of providing earnings guidance such as that found under the above heading "Outlook." 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- and nine-month periods ended September 24, 2006, and September 25, 2005. - Segment results for the same periods. - Condensed consolidated balance sheets as of September 24, 2006, and December 31, 2005. - A supplemental schedule of adjusted consolidated results for the quarter and year to date, excluding charges for severance, asset impairment, accelerated depreciation, executive succession, merger-related costs, and nonrecurring tax benefits. Page 3 BELDEN CDT INC. -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) ================================================================================

THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 24, 2006 SEPTEMBER 25, 2005 SEPTEMBER 24, 2006 SEPTEMBER 25, 2005 ------------------ ------------------ ------------------ ------------------ (IN THOUSANDS, EXCEPT PER SHARE DATA) Revenues $ 385,581 $ 316,480 $ 1,117,054 $ 914,186 Cost of sales (296,208) (242,478) (862,089) (705,123) ----------- ----------- ----------- ----------- Gross profit 89,373 74,002 254,965 209,063 Selling, general and administrative (51,234) (47,974) (150,706) (152,025) expenses Asset impairment (2,522) (8,010) (4,883) (8,010) ----------- ----------- ----------- ----------- Operating income 35,617 18,018 99,376 49,028 Interest expense (3,056) (3,610) (10,549) (11,286) Interest income 1,971 1,367 4,610 3,441 Minority interest (82) (215) (551) (551) ----------- ----------- ----------- ----------- Income from continuing operations 34,450 15,560 92,886 40,632 before taxes Income tax expense (10,064) (6,442) (32,036) (15,274) ----------- ----------- ----------- ----------- Income from continuing operations 24,386 9,118 60,850 25,358 Loss from discontinued operations, net of tax - (3,053) (1,330) (2,648) Gain (loss) on disposal of discontinued operations, net of tax - - (4,298) 15,163 ----------- ----------- ----------- ----------- Net income $ 24,386 $ 6,065 $ 55,222 $ 37,873 =========== =========== =========== =========== Weighted average number of common shares and equivalents: Basic 43,513 45,540 43,044 46,518 Diluted 50,527 52,213 49,964 53,167 Basic income (loss) per share: Continuing operations $ 0.56 $ 0.20 $ 1.41 $ 0.54 Discontinued operations - (0.07) (0.03) $ (0.06) Disposal of discontinued operations - - (0.10) $ 0.33 Net income 0.56 0.13 1.28 $ 0.81 Diluted income (loss) per share: Continuing operations $ 0.50 $ 0.19 $ 1.26 $ 0.52 Discontinued operations - (0.06) (0.03) (0.05) Disposal of discontinued operations - - (0.08) 0.28 Net income 0.50 0.13 1.15 0.75 Dividends declared per share $ 0.05 $ 0.05 $ 0.15 $ 0.15

BELDEN CDT INC. -------------------------------------------------------------------------------- SEGMENT INFORMATION (Unaudited) ================================================================================ (in thousands)

EXTERNAL OPERATING CUSTOMER AFFILIATE TOTAL INCOME THREE MONTHS ENDED SEPTEMBER 24, 2006 REVENUES REVENUES REVENUES (LOSS) ---------------------------------------- ----------- ----------- ----------- ----------- (IN THOUSANDS) Belden Americas $ 205,192 $ 15,107 $ 220,299 $ 35,278 Specialty Products 66,244 8,525 74,769 11,746 Europe 95,569 2,618 98,187 170 Asia Pacific 18,576 - 18,576 1,386 ----------- ----------- ----------- ----------- Total Segments 385,581 26,250 411,831 48,580 Finance and Administration - - - (8,087) Eliminations - (26,250) (26,250) (4,876) ----------- ----------- ----------- ----------- Total Continuing Operations $ 385,581 $ - $ 385,581 $ 35,617 =========== =========== =========== =========== THREE MONTHS ENDED SEPTEMBER 25, 2005 ---------------------------------------- Belden Americas $ 159,374 $ 16,505 $ 175,879 $ 28,820 Specialty Products 63,527 4,940 68,467 4,502 Europe 80,845 1,840 82,685 (3,959) Asia Pacific 12,734 - 12,734 1,237 ----------- ----------- ----------- ----------- Total Segments 316,480 23,285 339,765 30,600 Finance and Administration - - - (8,274) Eliminations - (23,285) (23,285) (4,308) ----------- ----------- ----------- ----------- Total Continuing Operations $ 316,480 $ - $ 316,480 $ 18,018 =========== =========== =========== =========== NINE MONTHS ENDED SEPTEMBER 24, 2006 ---------------------------------------- Belden Americas $ 600,388 $ 48,821 $ 649,209 $ 104,107 Specialty Products 200,544 22,740 223,284 28,146 Europe 269,082 6,627 275,709 (901) Asia Pacific 47,040 - 47,040 4,319 ----------- ----------- ----------- ----------- Total Segments 1,117,054 78,188 1,195,242 135,671 Finance and Administration - - - (21,128) Eliminations - (78,188) (78,188) (15,167) ----------- ----------- ----------- ----------- Total Continuing Operations $ 1,117,054 $ - $ 1,117,054 $ 99,376 =========== =========== =========== =========== NINE MONTHS ENDED SEPTEMBER 25, 2005 ---------------------------------------- Belden Americas $ 454,033 $ 57,905 $ 511,938 $ 66,376 Specialty Products 179,397 13,032 192,429 20,552 Europe 244,217 6,367 250,584 (492) Asia Pacific 36,539 - 36,539 1,766 ----------- ----------- ----------- ----------- Total Segments 914,186 77,304 991,490 88,202 Finance and Administration - - - (25,708) Eliminations - (77,304) (77,304) (13,466) ----------- ----------- ----------- ----------- Total Continuing Operations $ 914,186 $ - $ 914,186 $ 49,028 =========== =========== =========== ===========

BELDEN CDT INC. -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED BALANCE SHEETS ================================================================================

SEPTEMBER 24, 2006 DECEMBER 31, 2005 ------------------ ----------------- (UNAUDITED) ASSETS (IN THOUSANDS) Current assets: Cash and cash equivalents $ 190,576 $ 134,638 Receivables 230,660 195,018 Inventories 251,743 245,481 Deferred income taxes 28,407 27,845 Other current assets 7,748 8,015 Current assets of discontinued operations - 56,997 ----------- ----------- Total current assets 709,134 667,994 Property, plant and equipment, less accumulated 274,568 287,778 depreciation Goodwill, less accumulated amortization 274,185 272,290 Other intangibles, less accumulated amortization 71,245 72,459 Other long-lived assets 19,612 6,214 ----------- ----------- $ 1,348,744 $ 1,306,735 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 207,571 $ 216,736 Current maturities of long-term debt 15,000 59,000 Current liabilities of discontinued operations - 13,342 ----------- ----------- Total current liabilities 222,571 289,078 Long-term debt 157,000 172,051 Postretirement benefits other than pensions 35,259 33,167 Deferred income taxes 81,954 73,851 Other long-term liabilities 14,143 17,166 Minority interest 7,070 7,914 Stockholders' equity: Preferred stock - - Common stock 503 503 Additional paid-in capital 585,061 540,430 Retained earnings 339,574 290,870 Accumulated other comprehensive income (loss) 17,229 (6,881) Unearned deferred compensation - (336) Treasury stock (111,620) (111,078) ----------- ----------- Total stockholders' equity 830,747 713,508 ----------- ----------- $ 1,348,744 $ 1,306,735 =========== ===========

BELDEN CDT INC. -------------------------------------------------------------------------------- ADJUSTED OPERATING RESULTS ================================================================================ (in thousands) (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, accelerated depreciation, asset impairment, executive succession charges, merger-related costs, and tax reserve adjustments related to resolution of certain prior period tax contingencies. 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 THREE MONTHS ENDED SEPTEMBER 24, 2006 REPORTED ADJUSTMENTS ADJUSTED ---------------------------------------- ------------ ------------ ------------- (In thousands, except percentages and per share amounts) Revenues $ 385,581 $ - $ 385,581 Gross profit $ 89,373 $ 4,907 $ 94,280 as a percent of revenues 23.2% 24.5% Operating income $ 35,617 $ 7,671 $ 43,288 as a percent of revenues 9.2% 11.2% Income from continuing operations $ 24,386 $ 2,271 $ 26,657 as a percent of revenues 6.3% 6.9% Income from continuing operations per diluted share $ 0.50 $ 0.04 $ 0.54 THREE MONTHS ENDED SEPTEMBER 25, 2005 ---------------------------------------- Revenues $ 316,480 $ - $ 316,480 Gross profit $ 74,002 $ - $ 74,002 as a percent of revenues 23.4% 23.4% Operating income $ 18,018 $ 9,673 $ 27,691 as a percent of revenues 5.7% 8.7% Income from continuing operations $ 9,118 $ 7,424 $ 16,542 as a percent of revenues 2.9% 5.2% Income from continuing operations per diluted share $ 0.19 $ 0.14 $ 0.33

Adjustments for the three months ended September 24, 2006 included after-tax charges for severance and asset impairment of $4.9 million and $2.1 million, respectively, and a one-time tax benefit of $4.7 million. Adjustments for the three months ended September 25, 2005 included after-tax charges for asset impairment, executive succession, and merger integration of $7.1 million, $0.6 million, and $0.5 million, respectively, and a one-time tax benefit of $0.9 million. BELDEN CDT INC. -------------------------------------------------------------------------------- ADJUSTED OPERATING RESULTS ================================================================================ (in thousands) (unaudited)

AS NINE MONTHS ENDED SEPTEMBER 24, 2006 REPORTED ADJUSTMENTS ADJUSTED -------------------------------------------- ------------ ------------ ------------- (In thousands, except percentages and per share amounts) Revenues $ 1,117,054 $ - $1,117,054 Gross profit $ 254,965 $ 8,067 $ 263,032 as a percent of revenues 22.8% 23.5% Operating income $ 99,376 $ 14,393 $ 113,769 as a percent of revenues 8.9% 10.2% Income from continuing operations $ 60,850 $ 7,794 $ 68,644 as a percent of revenues 5.4% 6.1% Income from continuing operations per diluted share $ 1.26 $ 0.15 $ 1.41 NINE MONTHS ENDED SEPTEMBER 25, 2005 -------------------------------------------- Revenues $ 914,186 $ - $ 914,186 Gross profit $ 209,063 $ 700 $ 209,763 as a percent of revenues 22.9% 22.9% Operating income $ 49,028 $ 18,240 $ 67,268 as a percent of revenues 5.4% 7.4% Income from continuing operations $ 25,358 $ 13,229 $ 38,587 as a percent of revenues 2.8% 4.2% Income from continuing operations per diluted share $ 0.52 $ 0.24 $ 0.76

Adjustments for the nine months ended September 24, 2006 included after-tax charges for severance, asset impairment, and accelerated depreciation totaling $7.9 million, $3.6 million, and $1.1 million, respectively, and a one-time tax benefit of $4.7 million. Adjustments for the nine months ended September 25, 2005 included after-tax charges for asset impairment, executive succession, merger integration, and severance totaling $7.1 million, $4.0 million, $2.4 million, and $0.5 million, respectively, and a one-time tax benefit of $0.9 million.