Belden Inc (NYSE:BDC)
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2 Years : From May 2011 to May 2013
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.
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.
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.
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
TotalSegments
Eliminations
Income fromEquity MethodInvestment
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
Three Months Ended
April 1, 2012
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
)
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