Press release

Belden Reports Results for Fourth Quarter 2020 and Announces CFO Transition

0
Sponsored by Businesswire

Belden Inc. (NYSE: BDC), a leading global supplier of specialty networking solutions, today reported fiscal fourth quarter and full year 2020 results for the period ended December 31, 2020 and announced a CFO transition.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210210005261/en/

Jeremy Parks, Chief Financial Officer of Belden Inc. (Photo: Business Wire)

Jeremy Parks, Chief Financial Officer of Belden Inc. (Photo: Business Wire)

Fourth Quarter 2020

Revenues for the quarter totaled $498.5 million, compared to $549.7 million in the prior-year period. EPS totaled $0.35 compared to $0.05 in the fourth quarter 2019. EPS in the prior year period was negatively impacted by additional charges related to the Tax Cuts and Jobs Act.

Adjusted EPS was $0.90 compared to $1.20 in the fourth quarter 2019. Adjusted results are non-GAAP measures, and a non-GAAP reconciliation table is provided as an appendix to this release.

Roel Vestjens, President and CEO of Belden Inc., said, “Demand trends improved in the fourth quarter, and I am pleased to report that revenues, earnings, and cash flow exceeded our initial expectations. We delivered $15 million in quarterly run rate savings associated with our SG&A cost reduction program, and we are committed to delivering the full $60 million in annual savings in 2021.”

Full Year 2020

Revenues for the year totaled $1.863 billion, compared to $2.131 billion in the full year 2019. EPS was $1.21 compared to $2.15 in 2019. Adjusted EPS was $2.75 compared to $4.52 in 2019.

Mr. Vestjens remarked, “2020 was a truly unprecedented year, with each of us facing significant challenges related to the global pandemic, both personally and professionally. I am extremely proud of the way our global workforce responded to these challenges and maintained a sharp focus on supporting our customers and executing our strategic plans while maintaining the safest possible working conditions. During the year, we took bold steps to improve our portfolio and streamline our cost structure, while continuing to fund compelling growth initiatives. We expect these actions to drive significantly improved business performance going forward.”

Outlook

“2021 will be a year of recovery in most of our key markets. During the year, we expect to complete our transformative portfolio actions and turn the focus to accelerating organic growth. To that end, we are progressing with our ongoing divestiture process, and we closed the previously-announced acquisition of OTN Systems N.V. in late January. This exciting acquisition brings innovative networking products and technologies that will provide additional opportunities for profitable growth in our Industrial Solutions business. I am encouraged by our recent order rates, and confident in our ability to achieve our financial goals and drive superior returns for our shareholders,” said Mr. Vestjens.

The Company expects first quarter 2021 revenues to be $490 – $505 million. For the year ending December 31, 2021, the Company expects revenues to be $1.990 – $2.050 billion.

The Company expects first quarter 2021 GAAP EPS to be $0.22 – $0.32. For the year ending December 31, 2021, the Company expects GAAP EPS to be $1.70 – $2.10.

The Company expects first quarter 2021 adjusted EPS to be $0.60 – $0.70. For the year ending December 31, 2021, the Company expects adjusted EPS to be $2.90 – $3.30.

CFO Transition

The Company also announced today that its Senior Vice President, Finance, and Chief Financial Officer, Henk Derksen, will be leaving Belden in March to pursue other endeavors. Mr. Derksen has been with the Company since 2000, and during that time has helped lead the Company’s transition into the leading supplier of networking solutions that it is today. Mr. Derksen’s successor will be Jeremy Parks. Mr. Parks worked with the Company from 2008 through August 2020, most recently as the Vice President of Finance for the Company’s Industrial Solutions segment, after which he joined International Wire Group, Inc. as its Chief Financial Officer. Mr. Vestjens commented, “Henk’s contributions to our success over the last 20 years are immeasurable. He has tackled every task before him with talent and determination, and he has demonstrated flawless integrity in everything that he has done. We will miss him, and wish him well as he pursues his next challenge. We are excited to have Jeremy back in the Belden family as we embark on the next chapter in our evolution.” Mr. Derksen will continue to serve as CFO through the filing of the Company’s 2020 Form 10-K, at which time Mr. Parks will assume the role. Mr. Derksen will stay on with the Company through mid-March to aid the transition.

Earnings Conference Call

Management will host a conference call today at 8:30 am ET to discuss results of the quarter. The listen-only audio of the conference call will be broadcast live via the Internet at https://investor.belden.com. The dial-in number for participants in the U.S. is 866-248-8441, with confirmation code 7695993. A replay of this conference call will remain accessible in the investor relations section of the Company’s website for a limited time.

Earnings per Share (EPS)

All references to EPS within this earnings release refer to income from continuing operations per diluted share attributable to Belden common 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 Company’s website at https://investor.belden.com.

 
 
 

BELDEN INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

2020

 

December 31,

2019

 

December 31,

2020

 

December 31,

2019

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except per share data)

Revenues

 

$

498,540

 

 

$

549,688

 

 

$

1,862,716

 

 

$

2,131,278

 

Cost of sales

 

(323,284

)

 

(346,916

)

 

(1,199,427

)

 

(1,337,773

)

Gross profit

 

175,256

 

 

202,772

 

 

663,289

 

 

793,505

 

Selling, general and administrative expenses

 

(91,059

)

 

(118,675

)

 

(366,188

)

 

(417,329

)

Research and development expenses

 

(25,663

)

 

(22,346

)

 

(107,296

)

 

(94,360

)

Amortization of intangibles

 

(16,089

)

 

(18,351

)

 

(64,395

)

 

(74,609

)

Operating income

 

42,445

 

 

43,400

 

 

125,410

 

 

207,207

 

Interest expense, net

 

(15,700

)

 

(13,863

)

 

(58,888

)

 

(55,814

)

Non-operating pension benefit (cost)

 

(2,474

)

 

(667

)

 

(395

)

 

1,017

 

Income from continuing operations before taxes

 

24,271

 

 

28,870

 

 

66,127

 

 

152,410

 

Income tax expense

 

(8,501

)

 

(26,340

)

 

(11,724

)

 

(42,519

)

Income from continuing operations

 

15,770

 

 

2,530

 

 

54,403

 

 

109,891

 

Gain (loss) from discontinued operations, net of tax

 

3,882

 

 

(149,759

)

 

(99,513

)

 

(486,667

)

Loss on disposal of discontinued operations, net of tax

 

(12,691

)

 

 

 

(9,948

)

 

 

Net income (loss)

 

6,961

 

 

(147,229

)

 

(55,058

)

 

(376,776

)

Less: Net income attributable to noncontrolling interest

 

25

 

 

179

 

 

104

 

 

239

 

Net income (loss) attributable to Belden

 

6,936

 

 

(147,408

)

 

(55,162

)

 

(377,015

)

Less: Preferred stock dividends

 

 

 

 

 

 

 

18,437

 

Net income (loss) attributable to Belden common stockholders

 

$

6,936

 

 

$

(147,408

)

 

$

(55,162

)

 

$

(395,452

)

 

 

 

 

 

 

 

 

 

Weighted average number of common shares and equivalents:

 

 

 

 

 

 

 

 

Basic

 

44,620

 

 

45,457

 

 

44,778

 

 

42,203

 

Diluted

 

44,848

 

 

45,684

 

 

44,937

 

 

42,416

 

 

 

 

 

 

 

 

 

 

Basic income (loss) per share attributable to Belden common stockholders:

 

 

 

 

 

 

 

 

Continuing operations attributable to Belden common stockholders

 

$

0.35

 

 

$

0.05

 

 

$

1.21

 

 

$

2.16

 

Discontinued operations attributable to Belden common stockholders

 

0.09

 

 

(3.29

)

 

(2.22

)

 

(11.53

)

Disposal of discontinued operations attributable to Belden common stockholders

 

(0.28

)

 

 

 

(0.22

)

 

 

Net income (loss) per share attributable to Belden common stockholders

 

$

0.16

 

 

$

(3.24

)

 

$

(1.23

)

 

$

(9.37

)

Diluted income (loss) per share attributable to Belden common stockholders:

 

 

 

 

 

 

 

 

Continuing operations attributable to Belden common stockholders

 

$

0.35

 

 

$

0.05

 

 

$

1.21

 

 

$

2.15

 

Discontinued operations attributable to Belden common stockholders

 

0.09

 

 

(3.29

)

 

(2.22

)

 

(11.53

)

Disposal of discontinued operations attributable to Belden common stockholders

 

(0.28

)

 

 

 

(0.22

)

 

 

Net income (loss) per share attributable to Belden common stockholders

 

$

0.15

 

 

$

(3.24

)

 

$

(1.23

)

 

$

(9.37

)

 

 

 

 

 

 

 

 

 

Common stock dividends declared per share

 

$

0.05

 

 

$

0.05

 

 

$

0.20

 

 

$

0.20

 

 
 
 
 
 

BELDEN INC.

OPERATING SEGMENT INFORMATION

(Unaudited)

 

Effective January 1, 2020, we transferred our West Penn Wire business and multi-conductor product lines from the Enterprise Solutions segment to the Industrial Solutions segment, and as such, have recast the prior period segment information.

 

 

Enterprise Solutions

 

Industrial Solutions

 

Total Segments

 

 

 

 

 

 

 

 

(In thousands, except percentages)

For the three months ended December 31, 2020

 

 

 

 

 

 

Segment Revenues

 

$

227,731

 

 

$

270,809

 

 

$

498,540

 

Segment EBITDA

 

26,140

 

 

47,259

 

 

73,399

 

Segment EBITDA margin

 

11.5

%

 

17.5

%

 

14.7

%

Depreciation expense

 

5,447

 

 

5,954

 

 

11,401

 

Amortization of intangibles

 

5,396

 

 

10,693

 

 

16,089

 

Amortization of software development intangible assets

 

61

 

 

515

 

 

576

 

Severance, restructuring, and acquisition integration costs

 

1,410

 

 

1,400

 

 

2,810

 

 

 

 

 

 

 

 

For the three months ended December 31, 2019

 

 

 

 

 

 

Segment Revenues

 

$

246,397

 

 

$

303,291

 

 

$

549,688

 

Segment EBITDA

 

33,852

 

 

60,854

 

 

94,706

 

Segment EBITDA margin

 

13.7

%

 

20.1

%

 

17.2

%

Depreciation expense

 

5,137

 

 

5,282

 

 

10,419

 

Amortization of intangibles

 

5,630

 

 

12,721

 

 

18,351

 

Amortization of software development intangible assets

 

55

 

 

263

 

 

318

 

Severance, restructuring, and acquisition integration costs

 

5,238

 

 

15,740

 

 

20,978

 

Purchase accounting effects of acquisitions

 

60

 

 

 

 

60

 

 

 

 

 

 

 

 

For the twelve months ended December 31, 2020

 

 

 

 

 

 

Segment Revenues

 

$

872,415

 

 

$

990,301

 

 

$

1,862,716

 

Segment EBITDA

 

99,333

 

 

147,626

 

 

246,959

 

Segment EBITDA margin

 

11.4

%

 

14.9

%

 

13.3

%

Depreciation expense

 

20,655

 

 

21,815

 

 

42,470

 

Amortization of intangibles

 

21,662

 

 

42,733

 

 

64,395

 

Amortization of software development intangible assets

 

245

 

 

1,576

 

 

1,821

 

Severance, restructuring, and acquisition integrations costs

 

7,720

 

 

4,538

 

 

12,258

 

Purchase accounting effects of acquisitions

 

125

 

 

 

 

125

 

 

 

 

 

 

 

 

For the twelve months ended December 31, 2019

 

 

 

 

 

 

Segment Revenues

 

$

946,041

 

 

$

1,185,237

 

 

$

2,131,278

 

Segment EBITDA

 

126,925

 

 

226,110

 

 

353,035

 

Segment EBITDA margin

 

13.4

%

 

19.1

%

 

16.6

%

Depreciation expense

 

19,771

 

 

20,638

 

 

40,409

 

Amortization of intangibles

 

22,324

 

 

52,285

 

 

74,609

 

Amortization of software development intangible assets

 

175

 

 

350

 

 

525

 

Severance, restructuring, and acquisition integrations costs

 

10,808

 

 

15,736

 

 

26,544

 

Purchase accounting effects of acquisitions

 

592

 

 

 

 

592

 

 
 
 
 
 

BELDEN INC.

OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS

(Unaudited)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

2020

 

December 31,

2019

 

December 31,

2020

 

December 31,

2019

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Total Segment Revenues

 

$

498,540

 

 

$

549,688

 

 

$

1,862,716

 

 

$

2,131,278

 

Deferred revenue adjustments

 

 

 

 

 

 

 

 

Consolidated Revenues

 

$

498,540

 

 

$

549,688

 

 

$

1,862,716

 

 

$

2,131,278

 

 

 

 

 

 

 

 

 

 

Total Segment EBITDA

 

$

73,399

 

 

$

94,706

 

 

$

246,959

 

 

$

353,037

 

Total non-operating pension benefit (cost)

 

(2,474

)

 

(667

)

 

(395

)

 

1,017

 

Non-operating pension settlement loss

 

3,153

 

 

 

 

3,153

 

 

 

Eliminations

 

(78

)

 

(1,180

)

 

(480

)

 

(3,151

)

Consolidated Adjusted EBITDA (1)

 

74,000

 

 

92,859

 

 

249,237

 

 

350,903

 

Amortization of intangibles

 

(16,089

)

 

(18,351

)

 

(64,395

)

 

(74,609

)

Interest expense, net

 

(15,700

)

 

(13,863

)

 

(58,888

)

 

(55,814

)

Depreciation expense

 

(11,401

)

 

(10,419

)

 

(42,470

)

 

(40,409

)

Severance, restructuring, and acquisition integration costs

 

(2,810

)

 

(20,978

)

 

(12,258

)

 

(26,544

)

Non-operating pension settlement loss

 

(3,153

)

 

 

 

(3,153

)

 

 

Amortization of software development intangible assets

 

(576

)

 

(318

)

 

(1,821

)

 

(525

)

Purchase accounting effects related to acquisitions

 

 

 

(60

)

 

(125

)

 

(592

)

Income from continuing operations before taxes

 

$

24,271

 

 

$

28,870

 

 

$

66,127

 

 

$

152,410

 

 
(1) Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation of Non-GAAP Measures for additional information.
 
 
 
 
 

BELDEN INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

December 31, 2020

 

December 31, 2019

 

 

(Unaudited)

 

 

 

 

(In thousands)

ASSETS

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

501,994

 

 

$

407,480

 

Receivables, net

 

296,817

 

 

334,634

 

Inventories, net

 

247,298

 

 

231,333

 

Other current assets

 

52,289

 

 

29,172

 

Current assets of discontinued operations

 

 

 

375,135

 

Total current assets

 

1,098,398

 

 

1,377,754

 

Property, plant and equipment, less accumulated depreciation

 

368,620

 

 

345,918

 

Operating lease right-of-use assets

 

54,787

 

 

62,251

 

Goodwill

 

1,251,938

 

 

1,243,669

 

Intangible assets, less accumulated amortization

 

287,071

 

 

339,505

 

Deferred income taxes

 

29,536

 

 

25,216

 

Other long-lived assets

 

49,384

 

 

12,446

 

 

 

$

3,139,734

 

 

$

3,406,759

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

 

Accounts payable

 

$

244,120

 

 

$

268,466

 

Accrued liabilities

 

276,641

 

 

283,799

 

Current liabilities of discontinued operations

 

 

 

170,279

 

Total current liabilities

 

520,761

 

 

722,544

 

Long-term debt

 

1,573,726

 

 

1,439,484

 

Postretirement benefits

 

160,400

 

 

136,227

 

Deferred income taxes

 

38,400

 

 

48,725

 

Long-term operating lease liabilities

 

46,398

 

 

55,652

 

Other long-term liabilities

 

42,998

 

 

38,308

 

Stockholders’ equity:

 

 

 

 

Common stock

 

503

 

 

503

 

Additional paid-in capital

 

823,605

 

 

811,955

 

Retained earnings

 

450,876

 

 

518,004

 

Accumulated other comprehensive loss

 

(191,851

)

 

(63,418

)

Treasury stock

 

(332,552

)

 

(307,197

)

Total Belden stockholders’ equity

 

750,581

 

 

959,847

 

Noncontrolling interests

 

6,470

 

 

5,972

 

Total stockholders’ equity

 

757,051

 

 

965,819

 

 

 

$

3,139,734

 

 

$

3,406,759

 

 
 
 
 
 

BELDEN INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(Unaudited)

 

 

Twelve Months Ended

 

 

December 31, 2020

 

December 31, 2019

 

 

 

 

 

 

 

(In thousands)

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(55,058

)

 

$

(376,776

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

Asset impairment of discontinued operations

 

113,007

 

 

521,441

 

Depreciation and amortization

 

108,687

 

 

139,259

 

Share-based compensation

 

20,030

 

 

17,751

 

Loss on disposal of business

 

946

 

 

 

Deferred income tax benefit

 

(19,410

)

 

(23,540

)

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

 

 

 

 

Receivables

 

70,707

 

 

22,926

 

Inventories

 

(8,507

)

 

44,477

 

Accounts payable

 

(43,567

)

 

(41,527

)

Accrued liabilities

 

7,374

 

 

(17,654

)

Income taxes

 

(22,823

)

 

5,497

 

Other assets

 

2,018

 

 

(16,118

)

Other liabilities

 

(40

)

 

1,157

 

Net cash provided by operating activities

 

173,364

 

 

276,893

 

Cash flows from investing activities:

 

 

 

 

Capital expenditures

 

(90,215

)

 

(110,002

)

Cash from (used for) business acquisitions, net of cash acquired

 

590

 

 

(74,392

)

Proceeds from disposal of tangible assets

 

3,161

 

 

25

 

Proceeds from disposal of business, net of cash sold

 

54,821

 

 

 

Net cash used for investing activities

 

(31,643

)

 

(184,369

)

Cash flows from financing activities:

 

 

 

 

Borrowings on revolver

 

190,000

 

 

 

Payments under borrowing arrangements

 

(190,000

)

 

 

Payments under share repurchase program

 

(35,000

)

 

(50,000

)

Payment of earnout consideration

 

(29,300

)

 

 

Cash dividends paid

 

(9,029

)

 

(34,439

)

Withholding tax payments for share-based payment awards

 

(1,388

)

 

(2,149

)

Other

 

(194

)

 

(360

)

Net cash used for financing activities

 

(74,911

)

 

(86,948

)

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

 

9,299

 

 

(301

)

Increase in cash and cash equivalents

 

76,109

 

 

5,275

 

Cash and cash equivalents, beginning of period

 

425,885

 

 

420,610

 

Cash and cash equivalents, end of period

 

$

501,994

 

 

$

425,885

 

For all periods presented, the Consolidated Cash Flow Statement includes the results of the Grass Valley disposal group up to the disposal date, July 2, 2020.

BELDEN INC.

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; certain revenues and gains (losses) from patent settlements; discontinued operations; and other costs. We adjust for the items listed above in all periods presented, unless the impact is clearly immaterial to our financial statements. When we calculate the tax effect of the adjustments, we include all current and deferred income tax expense commensurate with the adjusted measure of pre-tax profitability.

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. As an example, we adjust for the purchase accounting effect of recording deferred revenue at fair value in order to reflect the revenues that would have otherwise been recorded by acquired businesses had they remained as independent entities. We believe this presentation is useful in evaluating the underlying performance of acquired companies. Similarly, we adjust for other acquisition-related expenses, such as amortization of intangibles and other impacts of fair value adjustments because they generally are not related to the acquired business’ core business performance. As an additional example, we exclude the costs of restructuring programs, which can occur from time to time for our current businesses and/or recently acquired businesses. We exclude the costs in calculating adjusted results to allow us and investors to evaluate the performance of the business based upon its expected ongoing operating structure. We believe the adjusted measures, accompanied by the disclosure of the costs of these programs, provides valuable insight.

Adjusted results should be considered only in conjunction with results reported according to accounting principles generally accepted in the United States.

 
 
 
 
 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

2020

 

December 31,

2019

 

December 31,

2020

 

December 31,

2019

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except percentages and per share amounts)

GAAP and adjusted revenues

 

$

498,540

 

 

$

549,688

 

 

$

1,862,716

 

 

$

2,131,278

 

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

175,256

 

 

$

202,772

 

 

$

663,289

 

 

$

793,505

 

Amortization of software development intangible assets

 

576

 

 

318

 

 

1,821

 

 

525

 

Severance, restructuring, and acquisition integration costs

 

482

 

 

2,333

 

 

704

 

 

3,425

 

Purchase accounting effects related to acquisitions

 

 

 

60

 

 

125

 

 

592

 

Adjusted gross profit

 

$

176,314

 

 

$

205,483

 

 

$

665,939

 

 

$

798,047

 

 

 

 

 

 

 

 

 

 

GAAP gross profit margin

 

35.2

%

 

36.9

%

 

35.6

%

 

37.2

%

Adjusted gross profit margin

 

35.4

%

 

37.4

%

 

35.8

%

 

37.4

%

 

 

 

 

 

 

 

 

 

GAAP selling, general and administrative expenses

 

$

(91,059

)

 

$

(118,675

)

 

$

(366,188

)

 

$

(417,329

)

Severance, restructuring, and acquisition integration costs

 

2,328

 

 

18,645

 

 

11,554

 

 

23,119

 

Adjusted selling, general and administrative expenses

 

$

(88,731

)

 

$

(100,030

)

 

$

(354,634

)

 

$

(394,210

)

 

 

 

 

 

 

 

 

 

GAAP and adjusted research and development expenses

 

$

(25,663

)

 

$

(22,346

)

 

$

(107,296

)

 

$

(94,360

)

 

 

 

 

 

 

 

 

 

GAAP net income (loss) attributable to Belden

 

$

6,936

 

 

$

(147,408

)

 

$

(55,162

)

 

$

(377,015

)

Interest expense, net

 

15,700

 

 

13,863

 

 

58,888

 

 

55,814

 

Loss (gain) from discontinued operations, net of tax

 

(3,882

)

 

149,759

 

 

99,513

 

 

486,667

 

Loss on disposal of discontinued operations, net of tax

 

12,691

 

 

 

 

9,948

 

 

 

Income tax expense

 

8,501

 

 

26,340

 

 

11,724

 

 

42,519

 

Non-operating pension settlement loss

 

3,153

 

 

 

 

3,153

 

 

 

Noncontrolling interest

 

25

 

 

179

 

 

104

 

 

239

 

Total non-operating adjustments

 

36,188

 

 

190,141

 

 

183,330

 

 

585,239

 

Amortization of intangible assets

 

16,089

 

 

18,351

 

 

64,395

 

 

74,609

 

Severance, restructuring, and acquisition integration costs

 

2,810

 

 

20,978

 

 

12,258

 

 

26,544

 

Amortization of software development intangible assets

 

576

 

 

318

 

 

1,821

 

 

525

 

Purchase accounting effects related to acquisitions

 

 

 

60

 

 

125

 

 

592

 

Total operating income adjustments

 

19,475

 

 

39,707

 

 

78,599

 

 

102,270

 

Depreciation expense

 

11,401

 

 

10,419

 

 

42,470

 

 

40,409

 

Adjusted EBITDA

 

$

74,000

 

 

$

92,859

 

 

$

249,237

 

 

$

350,903

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss) margin

 

1.4

%

 

(26.8

)%

 

(3.0

)%

 

(17.7

)%

Adjusted EBITDA margin

 

14.8

%

 

16.9

%

 

13.4

%

 

16.5

%

 

 

 

 

 

 

 

 

 

GAAP net income (loss) attributable to Belden

 

$

6,936

 

 

$

(147,408

)

 

$

(55,162

)

 

$

(377,015

)

Operating income adjustments from above

 

19,475

 

 

39,707

 

 

78,599

 

 

102,270

 

Loss (gain) from discontinued operations, net of tax

 

(3,882

)

 

149,759

 

 

99,513

 

 

486,667

 

Loss on disposal of discontinued operations, net of tax

 

12,691

 

 

 

 

9,948

 

 

 

Non-operating pension settlement loss

 

3,153

 

 

 

 

3,153

 

 

 

Tax effect of adjustments above

 

2,172

 

 

12,796

 

 

(12,515

)

 

(1,948

)

Adjusted net income attributable to Belden

 

$

40,545

 

 

$

54,854

 

 

$

123,536

 

 

$

209,974

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss) attributable to Belden

 

$

6,936

 

 

$

(147,408

)

 

$

(55,162

)

 

$

(377,015

)

Loss (gain) from discontinued operations, net of tax

 

(3,882

)

 

149,759

 

 

99,513

 

 

486,667

 

Loss on disposal of discontinued operations, net of tax

 

12,691

 

 

 

 

9,948

 

 

 

Less: Preferred stock dividends

 

 

 

 

 

 

 

(18,437

)

GAAP net income from continuing operations attributable to Belden common stockholders

 

$

15,745

 

 

$

2,351

 

 

$

54,299

 

 

$

91,215

 

 

 

 

 

 

 

 

 

 

Adjusted net income attributable to Belden

 

$

40,545

 

 

$

54,854

 

 

$

123,536

 

 

$

209,974

 

Less: Preferred stock dividends

 

 

 

 

 

 

 

(18,437

)

Adjusted net income from continuing operations attributable to Belden common stockholders

 

$

40,545

 

 

$

54,854

 

 

$

123,536

 

 

$

191,537

 

GAAP income from continuing operations per diluted share attributable to Belden common stockholders

 

$

0.35

 

 

$

0.05

 

 

$

1.21

 

 

$

2.15

 

Adjusted income from continuing operations per diluted share attributable to Belden common stockholders

 

$

0.90

 

 

$

1.20

 

 

$

2.75

 

 

$

4.52

 

 

 

 

 

 

 

 

 

 

GAAP and adjusted diluted weighted average shares

 

44,848

 

 

45,684

 

 

44,937

 

 

42,416

 

 
 
 
 

BELDEN INC.

RECONCILIATION OF NON-GAAP MEASURES

(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

 

Twelve Months Ended

 

 

December 31,

2020

 

December 31,

2019

 

December 31,

2020

 

December 31,

2019

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

GAAP net cash provided by operating activities

 

$

134,675

 

 

$

187,376

 

 

$

173,364

 

 

$

276,893

 

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

 

(33,335

)

 

(35,928

)

 

(87,054

)

 

(109,977

)

Non-GAAP free cash flow

 

$

101,340

 

 

$

151,448

 

 

$

86,310

 

 

$

166,916

 

 
 
 
 

BELDEN INC.

RECONCILIATION OF NON-GAAP MEASURES

2021 Earnings Guidance

 

 

 

Year Ended

 

Three Months Ended

 

 

December 31, 2021

 

April 4, 2021

 

 

 

 

 

 

 

(In thousands)

GAAP income from continuing operations per diluted share attributable to Belden common stockholders

 

$1.70 – $2.10

 

$0.22 – $0.32

Amortization of intangible assets

 

0.67

 

0.20

Severance, restructuring, and acquisition integration costs

 

0.45

 

0.10

Purchase accounting effects related to acquisitions

 

0.08

 

0.08

Adjusted income from continuing operations per diluted share attributable to Belden common stockholders

 

$2.90 – $3.30

 

$0.60 – $0.70

 
 

Our guidance for income from continuing operations per diluted share attributable to Belden common 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 under “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.

Forward-Looking Statements

This release and any statements made by us concerning the subject matter of this release may contain forward-looking statements, including our expectations for the first quarter and full-year 2021 and the results of our restructuring program. Forward-looking statements also include any 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 management’s 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 lack of certainty as to the duration and magnitude of the impact of COVID-19 and the economic recovery from that impact; the results of the Company’s impairment analysis, which could reduce EPS, adjusted EPS, and various other financial metrics; the presence of substitute products in the marketplace; the inability of the Company to develop and introduce new products and competitive responses to our products; the increased prevalence of cloud computing; the inability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); the inability to achieve our strategic priorities in emerging markets; the inability to successfully complete and integrate acquisitions in furtherance of the Company’s strategic plan; foreign and domestic political, economic and other uncertainties, including changes in currency exchange rates; changes in tax laws and variability in the Company’s quarterly and annual effective tax rates; the impact of a challenging global economy or a downturn in served markets; the impact of changes in global tariffs and trade agreements; difficulty in forecasting revenue due to the unpredictable timing of orders related to customer projects; the competitiveness of the global markets in which we operate; volatility in credit and foreign exchange markets; the cost and availability of raw materials including copper, plastic compounds, electronic components, and other materials; the inability to obtain components in sufficient quantities on commercially reasonable terms; disruptions in the Company’s information systems including due to cyber-attacks; perceived or actual product failures; risks related to the use of open source software; disruption of, or changes in, the Company’s key distribution channels; the inability to retain senior management and key employees; 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; the impact of regulatory requirements and other legal compliance issues; the impairment of goodwill and other intangible assets and the resulting impact on financial performance; 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, 2019, filed with the SEC on February 11, 2020, as well as enhancements made to our risk factors throughout the year, including as disclosed in our first quarter 2020 Form 10-Q filed with the SEC on May 4, 2020. Although the content of this release represents our best judgment as of the date of this report based on 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 and enterprise markets. With innovative solutions targeted at reliable and secure transmission of rapidly growing amounts of data, audio and video needed for today’s 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.