Belden Reports Solid Results for First Quarter 2019

Belden Inc. (NYSE: BDC), a global leader in high quality, end-to-end
signal transmission solutions for mission-critical applications, today
reported fiscal first quarter 2019 results for the period ended March
31, 2019.

First Quarter 2019

Revenues for the quarter totaled $587.2 million, decreasing $18.4
million, or 3.0%, compared to $605.6 million in the first quarter 2018.
Net income was $25.2 million, an increase of $22.6 million from the
prior-year period. Net income as a percentage of revenue was 4.3%
compared to 0.4% in the prior-year period. EPS totaled $0.42 compared to
$(0.15) in the first quarter 2018.

Adjusted revenues for the quarter also totaled $587.2 million,
decreasing $20.2 million, or 3.3%, compared to adjusted revenues of
$607.4 million in the first quarter 2018. Adjusted EBITDA margin in the
first quarter was 14.8%, compared to 17.0% in the year-ago period.
Adjusted EPS was $0.99 compared to $1.16 in the first quarter 2018.
Adjusted results in the first quarter 2018 benefited from previously
disclosed revenue recognition timing. Adjusted results are non-GAAP
measures, and a non-GAAP reconciliation table is provided as an appendix
to this release.

John Stroup, President, CEO, and Chairman of Belden Inc., said, “We
delivered first quarter revenues and EPS near the high end of our
guidance ranges. We continued to see robust growth in our Industrial
Solutions segment, including strong momentum in our cybersecurity
business, and our Enterprise Solutions segment performed as expected. I
am pleased to report significantly improved operating and free cash
flows for the first quarter and trailing twelve month period.”

Outlook

“We are on track to meet our commitments for 2019, and we are raising
the low end of our full-year guidance ranges. Subsequent to quarter end,
we completed two strategic broadband fiber acquisitions for a combined
purchase price of approximately $50 million. These businesses complement
our product roadmap with a set of innovative fiber connectivity
solutions that we expect to enable further growth and share capture in
our broadband business,” said Mr. Stroup.

The Company expects second quarter 2019 revenues to be $630 – $660
million. For the full year ending December 31, 2019, the Company now
expects revenues to be $2.520 – $2.595 billion, compared to prior
guidance of $2.495 – $2.595 billion.

The Company expects second quarter 2019 GAAP EPS to be $0.75 – $0.95.
For the full year ending December 31, 2019, the Company now expects GAAP
EPS of $3.86 – $4.36, compared to prior guidance of $3.84 – $4.49.

The Company expects second quarter 2019 adjusted EPS to be $1.30 –
$1.50. For the full year ending December 31, 2019, the Company now
expects adjusted EPS of $5.65 – $6.15, compared to prior guidance of
$5.50 – $6.15.

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 http://investor.belden.com.
The dial-in number for participants in the U.S. is 888-599-8686; the
dial-in number for participants outside the U.S. is 720-543-0302. A
replay of this conference call will remain accessible in the investor
relations section of the Company’s website for a limited time.

Net Income and Earnings per Share (EPS)

All references to Net Income and EPS within this earnings release refer
to net income attributable to Belden and income from continuing
operations per diluted share attributable to Belden common stockholders,
respectively.

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 http://investor.belden.com.

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

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.

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.

Our guidance for income 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 release may
contain forward-looking statements including our expectations for the
second quarter and full-year 2019. Forward-looking statements include
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 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 increased influence of chief information officers and
similar high-level executives; 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 successfully complete
and integrate acquisitions in furtherance of the Company’s strategic
plan; 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; 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 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 quarter ended December 31, 2018, filed with
the SEC on February 20, 2019. 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.

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