|
7701 Forsyth Boulevard | Phone: 314.854.8000 | ||
| Suite 800 | Fax: 314.854.8003 | |||
| St. Louis, Missouri 63105 | ||||
| www.Belden.com |
| From: | Belden Dee Johnson 314.854.8054 |
| | On July 2, 2007, Belden completed the sale of its telecommunications cable operation in the Czech Republic for $25.7 million, resulting in a pre-tax gain of $7.8 million. The transaction completed the Companys exit from the telecommunications cable business. |
| | The Companys new plant in Nogales, Mexico, began production and shipment of coaxial and twisted-pair cable, as planned. | ||
| | The quarters effective tax rate reflects the impact of the one-time $3.1 million benefit from lower tax rates for the Companys operations in Germany, the utilization of net operating losses in Germany and the Netherlands, and the nontaxable gain on the sale of the Czech assets. | ||
| | Under its share repurchase program announced during the quarter, the Company repurchased 220,500 shares for $10.6 million. |
| | Comparative condensed consolidated statements of operations for the three-month and nine-month periods ended September 23, 2007, and September 24, 2006. | ||
| | Segment results for the same periods. | ||
| | Condensed consolidated balance sheets as of September 23, 2007, and December 31, 2006. | ||
| | A supplemental schedule of adjusted consolidated results for the quarter, the year to date, and the prior-year comparable periods, excluding certain non-recurring purchase accounting effects, gain on sale of assets, severance charges, asset impairment, adjusted depreciation and discrete tax items. |
Page 2
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 23, 2007 | September 24, 2006 | September 23, 2007 | September 24, 2006 | |||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
Revenues |
$ | 561,611 | $ | 385,581 | $ | 1,448,257 | $ | 1,117,054 | ||||||||
Cost of sales |
(403,914 | ) | (296,208 | ) | (1,048,671 | ) | (862,089 | ) | ||||||||
Gross profit |
157,697 | 89,373 | 399,586 | 254,965 | ||||||||||||
Selling, general and administrative expenses |
(93,756 | ) | (51,234 | ) | (243,406 | ) | (150,706 | ) | ||||||||
Gain on sale of assets |
8,556 | | 8,556 | | ||||||||||||
Asset impairment |
| (2,522 | ) | (3,262 | ) | (4,883 | ) | |||||||||
Operating income |
72,497 | 35,617 | 161,474 | 99,376 | ||||||||||||
Interest expense |
(7,561 | ) | (3,056 | ) | (18,769 | ) | (10,549 | ) | ||||||||
Interest income |
803 | 1,971 | 5,286 | 4,610 | ||||||||||||
Other income (expense) |
581 | (82 | ) | (864 | ) | (551 | ) | |||||||||
Income from continuing operations before taxes |
66,320 | 34,450 | 147,127 | 92,886 | ||||||||||||
Income tax expense |
(16,904 | ) | (10,064 | ) | (45,593 | ) | (32,036 | ) | ||||||||
Income from continuing operations |
49,416 | 24,386 | 101,534 | 60,850 | ||||||||||||
Loss from discontinued operations, net of tax |
| | | (1,330 | ) | |||||||||||
Loss on disposal of discontinued operations, net of tax |
| | | (4,298 | ) | |||||||||||
Net income |
$ | 49,416 | $ | 24,386 | $ | 101,534 | $ | 55,222 | ||||||||
Weighted average number of common shares and equivalents: |
||||||||||||||||
Basic |
45,084 | 43,513 | 44,887 | 43,044 | ||||||||||||
Diluted |
50,131 | 50,527 | 50,893 | 49,964 | ||||||||||||
Basic income (loss) per share: |
||||||||||||||||
Continuing operations |
$ | 1.10 | $ | 0.56 | $ | 2.26 | $ | 1.41 | ||||||||
Discontinued operations |
| | | (0.03 | ) | |||||||||||
Disposal of discontinued operations |
| | | (0.10 | ) | |||||||||||
Net income |
1.10 | 0.56 | 2.26 | 1.28 | ||||||||||||
Diluted income (loss) per share: |
||||||||||||||||
Continuing operations |
$ | 0.99 | $ | 0.50 | $ | 2.01 | $ | 1.26 | ||||||||
Discontinued operations |
| | | (0.03 | ) | |||||||||||
Disposal of discontinued operations |
| | | (0.08 | ) | |||||||||||
Net income |
0.99 | 0.50 | 2.01 | 1.15 | ||||||||||||
Dividends declared per share |
$ | 0.05 | $ | 0.05 | $ | 0.15 | $ | 0.15 | ||||||||
| External | Operating | |||||||||||||||
| Customer | Affiliate | Total | Income | |||||||||||||
Three Months Ended September 23, 2007 |
Revenues | Revenues | Revenues | (Loss) | ||||||||||||
| (In thousands) | ||||||||||||||||
Belden Americas |
$ | 231,625 | $ | 18,069 | $ | 249,694 | $ | 44,929 | ||||||||
Specialty Products |
60,575 | 26,459 | 87,034 | 14,557 | ||||||||||||
Europe |
171,828 | 7,271 | 179,099 | 23,627 | ||||||||||||
Asia Pacific |
97,583 | | 97,583 | 10,276 | ||||||||||||
Total Segments |
561,611 | 51,799 | 613,410 | 93,389 | ||||||||||||
Finance and Administration |
| | | (10,680 | ) | |||||||||||
Eliminations |
| (51,799 | ) | (51,799 | ) | (10,212 | ) | |||||||||
Total Continuing Operations |
$ | 561,611 | $ | | $ | 561,611 | $ | 72,497 | ||||||||
Three Months Ended September 24, 2006 |
||||||||||||||||
Belden Americas |
$ | 209,166 | $ | 15,266 | $ | 224,432 | $ | 35,768 | ||||||||
Specialty Products |
62,270 | 8,366 | 70,636 | 11,256 | ||||||||||||
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 | ||||||||
Nine Months Ended September 23, 2007 |
||||||||||||||||
Belden Americas |
$ | 639,661 | $ | 47,766 | $ | 687,427 | $ | 121,590 | ||||||||
Specialty Products |
181,808 | 62,097 | 243,905 | 40,962 | ||||||||||||
Europe |
430,115 | 15,012 | 445,127 | 33,382 | ||||||||||||
Asia Pacific |
196,673 | | 196,673 | 18,596 | ||||||||||||
Total Segments |
1,448,257 | 124,875 | 1,573,132 | 214,530 | ||||||||||||
Finance and Administration |
| | | (29,872 | ) | |||||||||||
Eliminations |
| (124,875 | ) | (124,875 | ) | (23,184 | ) | |||||||||
Total Continuing Operations |
$ | 1,448,257 | $ | | $ | 1,448,257 | $ | 161,474 | ||||||||
Nine Months Ended September 24, 2006 |
||||||||||||||||
Belden Americas |
$ | 610,550 | $ | 49,141 | $ | 659,691 | $ | 105,167 | ||||||||
Specialty Products |
190,382 | 22,420 | 212,802 | 27,086 | ||||||||||||
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 | ||||||||
| September 23, 2007 (1) | December 31, 2006 | |||||||
| (Unaudited) | ||||||||
| (In thousands) | ||||||||
| ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 120,324 | $ | 254,151 | ||||
Receivables |
429,609 | 217,908 | ||||||
Inventories, net |
259,542 | 202,248 | ||||||
Deferred income taxes |
40,828 | 34,664 | ||||||
Other current assets |
16,860 | 10,465 | ||||||
Total current assets |
867,163 | 719,436 | ||||||
Property, plant and equipment, less accumulated depreciation |
382,885 | 272,285 | ||||||
Goodwill, less accumulated amortization |
637,095 | 275,134 | ||||||
Intangible assets, less accumulated amortization |
163,494 | 70,964 | ||||||
Other long-lived assets |
53,115 | 18,149 | ||||||
| $ | 2,103,752 | $ | 1,355,968 | |||||
| LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable and accrued liabilities |
$ | 410,219 | $ | 200,008 | ||||
Current maturities of long-term debt |
110,000 | 62,000 | ||||||
Total current liabilities |
520,219 | 262,008 | ||||||
Long-term debt |
350,000 | 110,000 | ||||||
Postretirement benefits |
127,891 | 62,995 | ||||||
Deferred income taxes |
91,753 | 71,399 | ||||||
Other long-term liabilities |
6,866 | 5,665 | ||||||
Stockholders equity: |
||||||||
Common stock |
503 | 503 | ||||||
Additional paid-in capital |
634,034 | 591,416 | ||||||
Retained earnings |
445,469 | 348,069 | ||||||
Accumulated other comprehensive income |
47,384 | 15,013 | ||||||
Treasury stock |
(120,367 | ) | (111,100 | ) | ||||
Total stockholders equity |
1,007,023 | 843,901 | ||||||
| $ | 2,103,752 | $ | 1,355,968 | |||||
| (1) | The September 23, 2007 condensed consolidated balance sheet includes the assets and liabilities of Hirschmann Automation and Control, LTK Wiring and Lumberg Automation, all of which were acquired during 2007. |
| As | ||||||||||||
Three Months Ended September 23, 2007 |
Reported | Adjustments | Adjusted | |||||||||
| (In thousands, except percentages and per share amounts) | ||||||||||||
Revenues |
$ | 561,611 | $ | | $ | 561,611 | ||||||
Gross profit |
$ | 157,697 | $ | (435 | ) | $ | 157,262 | |||||
as a percent of revenues |
28.1 | % | 28.0 | % | ||||||||
Operating income |
$ | 72,497 | $ | (8,973 | ) | $ | 63,524 | |||||
as a percent of revenues |
12.9 | % | 11.3 | % | ||||||||
Income from continuing operations |
$ | 49,416 | $ | (11,015 | ) | $ | 38,401 | |||||
as a percent of revenues |
8.8 | % | 6.8 | % | ||||||||
Income from continuing operations
per diluted share |
$ | 0.99 | $ | (0.22 | ) | $ | 0.77 | |||||
Three Months Ended
September 24, 2006 |
||||||||||||
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 | ||||||
| As | ||||||||||||
Nine Months Ended September 23, 2007 |
Reported | Adjustments | Adjusted | |||||||||
| (In thousands, except percentages and per share amounts) | ||||||||||||
Revenues |
$ | 1,448,257 | $ | | $ | 1,448,257 | ||||||
Gross profit |
$ | 399,586 | $ | 10,374 | $ | 409,960 | ||||||
as a percent of revenues |
27.6 | % | 28.3 | % | ||||||||
Operating income |
$ | 161,474 | $ | 9,418 | $ | 170,892 | ||||||
as a percent of revenues |
11.1 | % | 11.8 | % | ||||||||
Income from continuing operations |
$ | 101,534 | $ | 1,421 | $ | 102,955 | ||||||
as a percent of revenues |
7.0 | % | 7.1 | % | ||||||||
Income from continuing operations
per diluted share |
$ | 2.01 | $ | 0.03 | $ | 2.04 | ||||||
Nine Months Ended
September 24, 2006 |
||||||||||||
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 | ||||||