EX-99.1 2 d350677dex991.htm EX-99.1 EX-99.1

EXHIBIT 99.1

 

LOGO   

7733 Forsyth Boulevard

Suite 800

St. Louis, Missouri 63105

  

Phone: 314.854.8000

Fax: 314.854.8003

  
      www.Belden.com   

News Release

Belden Earnings up 13% in First Quarter 2012

St. Louis, Missouri - May 10, 2012 - Belden Inc. (NYSE: BDC), a global leader in signal transmission solutions for mission-critical applications, today reported fiscal first quarter 2012 results for the period ended April 1, 2012.

First Quarter Highlights

 

   

Increased income from continuing operations per diluted share to $0.52, up 13% over $0.46 per diluted share in the first quarter 2011;

 

   

Increased gross profit percentage 220 basis points to 30.5% from 28.3% in the year-ago period;

 

   

Generated $5.2 million in free cash flow, a $26.5 million increase over last year;

 

   

Purchased 640,816 shares of Belden common stock for $25.0 million during the quarter, bringing the total program-to-date shares retired to 2.28 million under the previously announced share repurchase program; and

 

   

Increased the low end of full-year guidance for fiscal 2012 income from continuing operations per diluted share to a new range of $2.75 – $2.90 and narrowed the range of revenues to $1.98 – $2.02 billion.

First Quarter Results

Revenue for the quarter totaled $464.3 million, up $2.7 million compared to $461.6 million in the first quarter 2011. Income from continuing operations per diluted share for the quarter totaled $0.52, compared to $0.46 per diluted share in the first quarter 2011.

John Stroup, President and CEO of Belden Inc., commented, "I am pleased with our first quarter results. Our ability to expand margins and achieve 13% earnings growth demonstrates our improved business portfolio and consistent execution. The strong performance in the Americas more than offset the softer end-markets in Europe and China. This clearly shows the benefit of having built a globally diversified portfolio. We continue to make progress towards transforming the Company and accomplishing our long-term goals.”

Outlook

“We expect to build upon the strong margins of the first quarter with seasonally higher revenue and favorable product platform mix in the second quarter. Therefore, we expect our second quarter 2012 revenues to be $500 – $510 million and income from continuing operations per diluted share to be $0.73 – $0.78,” said Mr. Stroup.


Belden Earnings up 13% in First Quarter 2012 – Page 2 of 3

For the full year 2012, the Company expects revenues to be $1.98 – $2.02 billion and income from continuing operations per diluted share to be $2.75 – $2.90. “This guidance implies stronger year-over-year organic growth in the second half than the first, based primarily on the relative customer and channel inventory dynamic experienced one year ago.”

Earnings Conference Call

Management will host a conference call today at 10:30 a.m. Eastern 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 888-599-8685; the dial-in number for participants outside the U.S. is 913-312-0403. A replay of this conference call will remain accessible in the investor relations section of the Company's website for a limited time.

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. Forward looking statements include any statements regarding future revenues, costs and expenses, operating income, earnings per share, margins, cash flows, dividends, and capital expenditures. These forward looking statements are based on forecasts and projections about the markets and 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. Changes in the global economy may impact the Company's results. Turbulence in financial markets may increase the Company's borrowing costs. Additional factors that may cause actual results to differ from the Company's expectations include: the Company's reliance on key distributors in marketing products; the Company's ability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); changes in the level of economic activity in the Company's major geographic markets; difficulties in realigning manufacturing capacity and capabilities among the Company's global manufacturing facilities; the competitiveness of the global cable, connectivity and networking industries; variability in the Company's quarterly and annual effective tax rates; changes in accounting rules and interpretation of these rules which may affect the Company's reported earnings; changes in currency exchange rates and political and economic uncertainties in the countries where the Company conducts business; demand for the Company's products; the cost and availability of materials including copper, plastic compounds derived from fossil fuels, electronic components, and other materials; energy costs; the Company's ability to achieve acquisition performance expectations and to integrate acquired businesses successfully; the ability of the Company to develop and introduce new products; the Company having to recognize charges that would reduce income as a result of impairing goodwill and other intangible assets; security risks and the potential for business interruption from operating in volatile countries; disruptions or failures of the Company's (or the Company's suppliers or customers) systems or operations in the event of a major earthquake, weather event, cyber-attack, terrorist attack, or other catastrophic event that could cause delays in completing sales, providing services, or performing other mission-critical functions; 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, 2011, filed with the SEC on February 29, 2012. Belden disclaims any duty to update any forward looking statements as a result of new information, future developments, or otherwise.


Belden Earnings up 13% in First Quarter 2012 – Page 3 of 3

About Belden

St. Louis-based Belden Inc. designs, manufactures, and markets cable, connectivity, and networking products in markets including industrial automation, enterprise, transportation, infrastructure, and consumer electronics. It has approximately 6,800 employees, and provides value for industrial automation, enterprise, education, healthcare, entertainment and broadcast, sound and security, transportation, infrastructure, consumer electronics and other industries. Belden has manufacturing capabilities in North America, South America, Europe, and Asia, and a market presence in nearly every region of the world. Belden was founded in 1902, and today is a leader with some of the strongest brands in the signal transmission industry. For more information, visit www.belden.com.

 

Contact:  
  Belden Investor Relations
  314-854-8054
  Investor.Relations@Belden.com


BELDEN INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE INCOME

(Unaudited)

 

     Three Months Ended  
     April 1, 2012     April 3, 2011  
     (In thousands, except per share amounts)  

Revenues

   $ 464,291      $ 461,628   

Cost of sales

     (322,573     (331,173
  

 

 

   

 

 

 

Gross profit

     141,718        130,455   

Selling, general and administrative expenses

     (83,226     (74,936

Research and development

     (14,033     (13,629

Amortization of intangibles

     (3,235     (3,679

Income from equity method investment

     2,741        3,862   
  

 

 

   

 

 

 

Operating income

     43,965        42,073   

Interest expense

     (11,921     (11,808

Interest income

     351        159   
  

 

 

   

 

 

 

Income from continuing operations before taxes

     32,395        30,424   

Income tax expense

     (8,120     (8,406
  

 

 

   

 

 

 

Income from continuing operations

     24,275        22,018   

Loss from discontinued operations, net of tax

     —          (128
  

 

 

   

 

 

 

Net income

   $ 24,275      $ 21,890   
  

 

 

   

 

 

 

Weighted average number of common shares and equivalents:

    

Basic

     45,912        47,209   

Diluted

     46,938        48,330   

Basic income (loss) per share

    

Continuing operations

   $ 0.53      $ 0.47   

Discontinued operations

     —          (0.01
  

 

 

   

 

 

 

Net income

   $ 0.53      $ 0.46   
  

 

 

   

 

 

 

Diluted income (loss) per share

    

Continuing operations

   $ 0.52      $ 0.46   

Discontinued operations

     —          (0.01
  

 

 

   

 

 

 

Net income

   $ 0.52      $ 0.45   
  

 

 

   

 

 

 

Comprehensive income

   $ 34,901      $ 44,647   
  

 

 

   

 

 

 

Dividends declared per share

   $ 0.05      $ 0.05   


BELDEN INC.

OPERATING SEGMENT INFORMATION

(Unaudited)

 

Three Months Ended April 1, 2012

   Americas      EMEA      Asia Pacific      Total
Segments
     Eliminations     Income from
Equity Method
Investment
     Total  
     (In thousands)  

External customer revenues

   $ 299,622       $ 94,129       $ 70,540       $ 464,291       $ —        $ —         $ 464,291   

Affiliate revenues

     10,086         27,488         606         38,180         (38,180     —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total revenues

   $ 309,708       $ 121,617       $ 71,146       $ 502,471       $ (38,180   $ —         $ 464,291   

Operating income

   $ 36,278       $ 17,415       $ 4,669       $ 58,362       $ (17,138   $ 2,741       $ 43,965   

Three Months Ended April 3, 2011

                                               

External customer revenues

   $ 276,998       $ 103,690       $ 80,940       $ 461,628       $ —        $ —         $ 461,628   

Affiliate revenues

     12,068         22,666         101         34,835         (34,835     —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total revenues

   $ 289,066       $ 126,356       $ 81,041       $ 496,463       $ (34,835   $ —         $ 461,628   

Operating income

   $ 31,117       $ 13,769       $ 6,283       $ 51,169       $ (12,958   $ 3,862       $ 42,073   


BELDEN INC.

SUPPLEMENTAL PRODUCT GROUP INFORMATION

(Unaudited)

 

Three Months Ended April 1, 2012

   Americas      EMEA      Asia Pacific      Total  
     (In thousands)  

Cable products

   $ 231,221       $ 39,995       $ 58,049       $ 329,265   

Networking products

     26,256         29,776         9,278         65,310   

Connectivity products

     42,145         24,358         3,213         69,716   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenues

   $ 299,622       $ 94,129       $ 70,540       $ 464,291   
  

 

 

    

 

 

    

 

 

    

 

 

 

Three Months Ended April 3, 2011

                           

Cable products

   $ 211,106       $ 43,211       $ 64,811       $ 319,128   

Networking products

     26,614         32,593         12,048         71,255   

Connectivity products

     39,278         27,886         4,081         71,245   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenues

   $ 276,998       $ 103,690       $ 80,940       $ 461,628   
  

 

 

    

 

 

    

 

 

    

 

 

 


BELDEN INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

      April 1, 2012     December 31, 2011  
     (Unaudited)        
     (In thousands)  
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 370,017      $ 382,716   

Receivables, net

     289,915        299,070   

Inventories, net

     200,900        202,143   

Deferred income taxes

     20,123        19,660   

Other current assets

     20,781        21,832   
  

 

 

   

 

 

 

Total current assets

     901,736        925,421   

Property, plant and equipment, less accumulated depreciation

     290,257        286,933   

Goodwill

     349,552        348,032   

Intangible assets, less accumulated amortization

     149,419        151,683   

Deferred income taxes

     9,816        12,219   

Other long-lived assets

     66,946        63,832   
  

 

 

   

 

 

 
   $ 1,767,726      $ 1,788,120   
  

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY     

Current liabilities:

    

Accounts payable

   $ 222,725      $ 227,571   

Accrued liabilities

     123,732        153,995   
  

 

 

   

 

 

 

Total current liabilities

     346,457        381,566   

Long-term debt

     550,295        550,926   

Postretirement benefits

     133,948        131,237   

Other long-term liabilities

     29,138        29,842   

Stockholders’ equity:

    

Common stock

     503        503   

Additional paid-in capital

     593,282        601,484   

Retained earnings

     298,321        276,363   

Accumulated other comprehensive loss

     (12,083     (22,709

Treasury stock

     (172,135     (161,092
  

 

 

   

 

 

 

Total stockholders’ equity

     707,888        694,549   
  

 

 

   

 

 

 
   $ 1,767,726      $ 1,788,120   
  

 

 

   

 

 

 


BELDEN INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(Unaudited)

 

     Three Months Ended  
     April 1, 2012     April 3, 2011  
     (In thousands)  

Cash flows from operating activities:

    

Net income

   $ 24,275      $ 21,890   

Adjustments to reconcile net income to net cash provided by (used for) operating activities:

    

Depreciation and amortization

     12,157        12,860   

Share-based compensation

     2,977        2,925   

Provision for inventory obsolescence

     2,491        878   

Pension funding less than pension expense

     756        1,613   

Income from equity method investment

     (2,741     (3,862

Tax benefit related to share-based compensation

     (4,119     (1,668

Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses:

    

Receivables

     11,904        (12,431

Inventories

     (4     (24,622

Accounts payable

     (5,634     10,528   

Accrued liabilities

     (30,141     (30,638

Accrued taxes

     5,105        7,347   

Other assets

     (215     (794

Other liabilities

     (4,063     347   
  

 

 

   

 

 

 

Net cash provided by (used for) operating activities

     12,748        (15,627

Cash flows from investing activities:

    

Capital expenditures

     (7,557     (6,798

Cash used to acquire businesses, net of cash acquired

     (587     (23,192

Proceeds from disposal of tangible assets

     —          1,136   
  

 

 

   

 

 

 

Net cash used for investing activities

     (8,144     (28,854

Cash flows from financing activities:

    

Payments under share repurchase program

     (25,000     —     

Cash dividends paid

     (2,409     (2,392

Payments under borrowing arrangements

     (600     —     

Proceeds from exercise of stock options

     2,179        3,952   

Tax benefit related to share-based compensation

     4,119        1,668   
  

 

 

   

 

 

 

Net cash provided by (used for) financing activities

     (21,711     3,228   

Effect of foreign currency exchange rate changes on cash and cash equivalents

     4,408        5,685   
  

 

 

   

 

 

 

Decrease in cash and cash equivalents

     (12,699     (35,568

Cash and cash equivalents, beginning of period

     382,716        358,653   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 370,017      $ 323,085   
  

 

 

   

 

 

 


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 (used for) operating activities less capital expenditures, net of 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
April 1, 2012
    Three Months Ended
April 3, 2011
 
     (In thousands)  

GAAP net cash provided by (used for) operating activities

   $  12,748      $ (15,627

Capital expenditures, net of proceeds from the disposal of tangible assets

     (7,557     (5,662
  

 

 

   

 

 

 

Non-GAAP free cash flow

   $ 5,191      $ (21,289