EX-99.1 2 companynewsreleasedatedoct.htm EXHIBIT 99.1 Exhibit

Exhibit 99.1
 
graphica08.jpg
 
 
 
 
  
1 North Brentwood Boulevard
  
Phone: 314.854.8000
  
15th Floor
  
Fax: 314.854.8003
  
St. Louis, Missouri 63105
  
 
  
 
  
www.Belden.com
News Release

Belden Reports Results for Third Quarter 2018

St. Louis, Missouri - October 31, 2018 - Belden Inc. (NYSE: BDC), a global leader in high quality, end-to-end signal transmission solutions for mission-critical applications, today reported fiscal third quarter 2018 results for the period ended September 30, 2018.

Third Quarter 2018

On a GAAP basis, revenues for the quarter totaled $655.8 million, increasing $34.1 million, or 5.5%, compared to $621.7 million in the third quarter 2017. Net income was $85.9 million, an increase of $84.9 million from the prior-year period. Net income included a $46.1 million after-tax gain from patent litigation, and net income in the third quarter 2017 included a $32.2 million after-tax loss on debt extinguishment related to debt refinancing and repayment. Net income as a percentage of revenues was 13.1% compared to 0.2% in the prior-year period. EPS was $1.80 compared to $(0.18) in the third quarter 2017.

Adjusted revenues for the quarter totaled $659.0 million, increasing $37.3 million, or 6.0%, compared to $621.7 million in the third quarter 2017. Adjusted EBITDA margin in the third quarter was 19.2%, consistent with the year-ago period. Adjusted EPS was $1.72, increasing 15.4% compared to $1.49 in the third quarter 2017. 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 are pleased to report strong year-over-year earnings growth. However, despite entering the quarter with record backlog, order softness in our Enterprise segment and capacity constraints in our Industrial segment prevented us from meeting our revenue guidance.”

Outlook

“We expect these challenges will continue in the fourth quarter. As a result, we are reducing our revenue and EPS expectations for the remainder of the year. We are disappointed in this near-term outlook revision, yet we remain committed to executing our strategic plan and delivering robust growth and margin expansion longer-term,” said Mr. Stroup.

On a GAAP basis, the Company expects fourth quarter 2018 revenues to be $654 - $674 million and EPS to be $0.84 - $0.94. For the full year ending December 31, 2018, the Company now expects revenues to be $2.585 - $2.605 billion, compared to prior guidance of $2.633 - $2.663 billion, and EPS to be $3.09 - $3.19, compared to prior guidance of $3.52 - $3.72.

The Company expects fourth quarter 2018 adjusted revenues to be $657 - $677 million and adjusted EPS to be $1.60 - $1.70. For the full year ending December 31, 2018, the Company now expects adjusted revenues to be $2.595 - $2.615 billion, compared to prior guidance of $2.643 - $2.673 billion, and adjusted EPS to be $6.00 - $6.10, compared to prior guidance of $6.28 - $6.48.

Earnings Conference Call

Management will host a conference call today at 8:30 am ET to discuss the 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 800-281-7973; the dial-in number for participants outside the U.S. is 323-794-2093. 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.














BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30, 2018
 
October 1, 2017
 
September 30, 2018
 
October 1, 2017
 
 
 
 
 
 
 
 
 
 
 
(In thousands, except per share data)
Revenues
 
$
655,774

 
$
621,745

 
$
1,929,978

 
$
1,783,759

Cost of sales
 
(394,917
)
 
(381,896
)
 
(1,180,931
)
 
(1,078,432
)
Gross profit
 
260,857

 
239,849

 
749,047

 
705,327

Selling, general and administrative expenses
 
(132,716
)
 
(116,129
)
 
(396,430
)
 
(346,786
)
Research and development
 
(33,471
)
 
(35,442
)
 
(107,781
)
 
(105,108
)
Amortization of intangibles
 
(25,533
)
 
(27,162
)
 
(74,990
)
 
(77,944
)
Gain from patent litigation
 
62,141

 
—

 
62,141

 
—

Operating income
 
131,278

 
61,116

 
231,987

 
175,489

Interest expense, net
 
(14,472
)
 
(19,385
)
 
(46,538
)
 
(66,424
)
Non-operating pension benefit (cost)
 
1,356

 
(325
)
 
824

 
(880
)
Loss on debt extinguishment
 
—

 
(51,594
)
 
(22,990
)
 
(52,441
)
Income (loss) before taxes
 
118,162

 
(10,188
)
 
163,283

 
55,744

Income tax benefit (expense)
 
(32,304
)
 
11,133

 
(46,063
)
 
6,673

Net income
 
85,858

 
945

 
117,220

 
62,417

Less: Net loss attributable to noncontrolling interest
 
(23
)
 
(82
)
 
(148
)
 
(274
)
Net income attributable to Belden
 
85,881

 
1,027

 
117,368

 
62,691

Less: Preferred stock dividends
 
8,732

 
8,732

 
26,198

 
26,198

Net income (loss) attributable to Belden common stockholders
 
$
77,149

 
$
(7,705
)
 
$
91,170

 
$
36,493

 
 
 
 
 
 
 
 
 
Weighted average number of common shares and equivalents:
 
 
 
 
 
 
 
 
Basic
 
40,510

 
42,256

 
40,960

 
42,251

Diluted
 
47,678

 
42,256

 
41,268

 
42,663

 
 
 
 
 
 
 
 
 
Basic income (loss) per share attributable to Belden common stockholders:
 
$
1.90

 
$
(0.18
)
 
$
2.23

 
$
0.86

 
 
 
 
 
 
 
 
 
Diluted income (loss) per share attributable to Belden common stockholders:
 
$
1.80

 
$
(0.18
)
 
$
2.21

 
$
0.86

 
 
 
 
 
 
 
 
 
Common stock dividends declared per share
 
$
0.05

 
$
0.05

 
$
0.15

 
$
0.15






BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)
 
 
 
Enterprise
Solutions
 
Industrial
Solutions
 
Total 
Segments
 
 
 
 
 
 
 
 
(In thousands, except percentages)
 
 
 
 
 
 
 
For the three months ended September 30, 2018
 
 
 
 
 
 
Segment Revenues
 
$
392,080

 
$
266,923

 
$
659,003

Segment EBITDA
 
72,210

 
53,750

 
125,960

Segment EBITDA margin
 
18.4
%
 
20.1
%
 
19.1
%
Depreciation expense
 
7,092

 
4,579

 
11,671

Amortization of intangibles
 
12,322

 
13,211

 
25,533

Amortization of software development intangible assets
 
620

 
—

 
620

Severance, restructuring, and acquisition integration costs
 
9,528

 
2,160

 
11,688

Purchase accounting effects of acquisitions
 
821

 
—

 
821

Deferred revenue adjustments
 
3,229

 
—

 
3,229

 
 
 
 
 
 
 
For the three months ended October 1, 2017
 
 
 
 
 
 
Segment Revenues
 
$
360,842

 
$
260,903

 
$
621,745

Segment EBITDA
 
62,109

 
55,747

 
117,856

Segment EBITDA margin
 
17.2
%
 
21.4
%
 
19.0
%
Depreciation expense
 
6,828

 
4,855

 
11,683

Amortization of intangibles
 
13,920

 
13,242

 
27,162

Severance, restructuring, and acquisition integration costs
 
9,309

 
7,370

 
16,679

Purchase accounting effects of acquisitions
 
2,922

 
—

 
2,922

 
 
 
 
 
 
 
For the nine months ended September 30, 2018
 
 
 
 
 
 
Segment Revenues
 
$
1,142,765

 
$
795,102

 
$
1,937,867

Segment EBITDA
 
199,943

 
153,401

 
353,344

Segment EBITDA margin
 
17.5
%
 
19.3
%
 
18.2
%
Depreciation expense
 
21,465

 
14,097

 
35,562

Amortization of intangibles
 
35,301

 
39,689

 
74,990

Amortization of software development intangible assets
 
1,344

 
—

 
1,344

Severance, restructuring, and acquisition integration costs
 
46,949

 
10,061

 
57,010

Purchase accounting effects of acquisitions
 
2,359

 
—

 
2,359

Deferred revenue adjustments
 
7,889

 
—

 
7,889

 
 
 
 
 
 
 
For the nine months ended October 1, 2017
 
 
 
 
 
 
Segment Revenues
 
$
1,023,924

 
$
759,835

 
$
1,783,759

Segment EBITDA
 
168,073

 
153,675

 
321,748

Segment EBITDA margin
 
16.4
%
 
20.2
%
 
18.0
%
Depreciation expense
 
20,129

 
14,465

 
34,594

Amortization of intangibles
 
38,241

 
39,703

 
77,944

Severance, restructuring, and acquisition integration costs
 
23,701

 
9,138

 
32,839

Purchase accounting effects of acquisitions
 
4,089

 
—

 
4,089





BELDEN INC.
OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS
(Unaudited)
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30, 2018
 
October 1, 2017
 
September 30, 2018
 
October 1, 2017
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Total Segment Revenues
 
$
659,003

 
$
621,745

 
$
1,937,867

 
$
1,783,759

    Deferred revenue adjustments
 
(3,229
)
 
—

 
(7,889
)
 
—

Consolidated Revenues
 
$
655,774

 
$
621,745

 
$
1,929,978

 
$
1,783,759

 
 
 
 
 
 
 
 
 
Total Segment EBITDA
 
$
125,960

 
$
117,856

 
$
353,344

 
$
321,748

    Income from equity method investment
 
—

 
2,551

 
—

 
5,835

    Non-operating pension benefit (cost)
 
1,356

 
(325
)
 
824

 
(880
)
    Eliminations
 
(627
)
 
(845
)
 
(1,616
)
 
(2,628
)
Consolidated Adjusted EBITDA (1)
 
126,689

 
119,237

 
352,552

 
324,075

    Amortization of intangibles
 
(25,533
)
 
(27,162
)
 
(74,990
)
 
(77,944
)
    Severance, restructuring, and acquisition integration costs
 
(11,688
)
 
(16,679
)
 
(57,010
)
 
(32,839
)
    Interest expense, net
 
(14,472
)
 
(19,385
)
 
(46,538
)
 
(66,424
)
    Depreciation expense
 
(11,671
)
 
(11,683
)
 
(35,562
)
 
(34,594
)
    Loss on debt extinguishment
 
—

 
(51,594
)
 
(22,990
)
 
(52,441
)
    Deferred revenue adjustments
 
(3,229
)
 
—

 
(7,889
)
 
—

    Purchase accounting effects related to acquisitions
 
(821
)
 
(2,922
)
 
(2,359
)
 
(4,089
)
    Amortization of software development intangible assets
 
(620
)
 
—

 
(1,344
)
 
—

    Loss on sale of assets
 
—

 
—

 
(94
)
 
—

    Gain from patent litigation
 
62,141

 
—

 
62,141

 
—

Costs related to patent litigation
 
(2,634
)
 
—

 
(2,634
)
 
—

Consolidated income (loss) before taxes
 
$
118,162

 
$
(10,188
)
 
$
163,283

 
$
55,744

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



















BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
 
September 30,
2018
 
December 31,
2017
 
 
(Unaudited)
 
 
 
 
(In thousands)
ASSETS
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
329,027

 
$
561,108

Receivables, net
 
474,870

 
473,570

Inventories, net
 
322,194

 
297,226

Other current assets
 
50,361

 
40,167

            Total current assets
 
1,176,452

 
1,372,071

Property, plant and equipment, less accumulated depreciation
 
351,628

 
337,322

Goodwill
 
1,554,830

 
1,478,257

Intangible assets, less accumulated amortization
 
537,087

 
545,207

Deferred income taxes
 
63,853

 
42,549

Other long-lived assets
 
31,062

 
65,207

 
 
$
3,714,912

 
$
3,840,613

 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
 
 
 
 
Accounts payable
 
$
304,923

 
$
376,277

Accrued liabilities
 
314,667

 
302,651

Total current liabilities
 
619,590

 
678,928

Long-term debt
 
1,503,597

 
1,560,748

Postretirement benefits
 
124,013

 
102,085

Deferred income taxes
 
38,771

 
27,713

Other long-term liabilities
 
38,639

 
36,273

Stockholders’ equity:
 
 
 
 
     Preferred stock
 
1

 
1

Common stock
 
503

 
503

Additional paid-in capital
 
1,135,699

 
1,123,832

Retained earnings
 
889,189

 
833,610

Accumulated other comprehensive loss
 
(85,667
)
 
(98,026
)
Treasury stock
 
(549,899
)
 
(425,685
)
Total Belden stockholders’ equity
 
1,389,826

 
1,434,235

Noncontrolling interest
 
476

 
631

Total stockholders’ equity
 
1,390,302

 
1,434,866

 
 
$
3,714,912

 
$
3,840,613







BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited)
 
 
 
Nine Months Ended
 
 
September 30, 2018
 
October 1, 2017
 
 
 
 
 
 
 
(In thousands)
Cash flows from operating activities:
 
 
 
 
Net income
 
$
117,220

 
$
62,417

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
 
111,896

 
112,538

Share-based compensation
 
14,657

 
13,431

Loss on debt extinguishment
 
22,990

 
52,441

Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses:
 
 
 
 
Receivables
 
(25,338
)
 
(32,950
)
Inventories
 
(16,642
)
 
(50,232
)
Accounts payable
 
(81,296
)
 
30,290

Accrued liabilities
 
(29,474
)
 
(54,828
)
Income taxes
 
4,463

 
(32,071
)
Other assets
 
(13,267
)
 
(9,046
)
Other liabilities
 
(4,350
)
 
11,625

Net cash provided by operating activities
 
100,859

 
103,615

Cash flows from investing activities:
 
 
 
 
Cash used to acquire businesses, net of cash acquired
 
(84,580
)
 
(166,896
)
Capital expenditures
 
(63,451
)
 
(33,430
)
Proceeds from disposal of tangible assets
 
1,556

 
15

Proceeds from disposal of business
 
40,171

 
—

Net cash used for investing activities
 
(106,304
)
 
(200,311
)
Cash flows from financing activities:
 
 
 
 
Payments under borrowing arrangements
 
(484,757
)
 
(1,105,892
)
Payments under share repurchase program
 
(125,000
)
 
(11,508
)
Cash dividends paid
 
(32,421
)
 
(32,535
)
Debt issuance costs paid
 
(7,609
)
 
(16,586
)
Withholding tax payments for share-based payment awards
 
(2,004
)
 
(5,421
)
Redemption of stockholders' rights agreement
 
(411
)
 
—

Borrowings under credit arrangements
 
431,270

 
866,700

Net cash used for financing activities
 
(220,932
)
 
(305,242
)
Effect of foreign currency exchange rate changes on cash and cash equivalents
 
(5,704
)
 
15,185

Decrease in cash and cash equivalents
 
(232,081
)
 
(386,753
)
Cash and cash equivalents, beginning of period
 
561,108

 
848,116

Cash and cash equivalents, end of period
 
$
329,027

 
$
461,363





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
 
Nine Months Ended
 
 
September 30, 2018
 
October 1, 2017
 
September 30, 2018
 
October 1, 2017
 
 
 
 
 
 
 
 
 
 
 
(In thousands, except percentages and per share amounts)
GAAP revenues
 
$
655,774

 
$
621,745

 
$
1,929,978

 
$
1,783,759

Deferred revenue adjustments
 
3,229

 
—

 
7,889

 
—

Adjusted revenues
 
$
659,003

 
$
621,745

 
$
1,937,867

 
$
1,783,759

 
 
 
 
 
 
 
 
 
GAAP gross profit
 
$
260,857

 
$
239,849

 
$
749,047

 
$
705,327

Severance, restructuring, and acquisition integration costs
 
4,820

 
12,406

 
21,482

 
26,523

Deferred revenue adjustments
 
3,229

 
—

 
7,889

 
—

Purchase accounting effects related to acquisitions
 
558

 
2,922

 
1,833

 
4,089

Amortization of software development intangible assets
 
620

 
—

 
1,344

 
—

Accelerated depreciation
 
—

 
266

 
—

 
798

Adjusted gross profit
 
$
270,084

 
$
255,443

 
$
781,595

 
$
736,737

 
 
 
 
 
 
 
 
 
GAAP gross profit margin
 
39.8
%
 
38.6
%
 
38.8
%
 
39.5
%
Adjusted gross profit margin
 
41.0
%
 
41.1
%
 
40.3
%
 
41.3
%
 
 
 
 
 
 
 
 
 
GAAP selling, general and administrative expenses
 
$
(132,716
)
 
$
(116,129
)
 
$
(396,430
)
 
$
(346,786
)
Severance, restructuring, and acquisition integration costs
 
6,341

 
4,174

 
30,287

 
6,264

Costs related to patent litigation
 
2,634

 
—

 
2,634

 
—

Purchase accounting effects related to acquisitions
 
263

 
—

 
526

 
—

    Loss on sale of assets
 
—

 
—

 
94

 
—

Adjusted selling, general and administrative expenses
 
$
(123,478
)
 
$
(111,955
)
 
$
(362,889
)
 
$
(340,522
)
 
 
 
 
 
 
 
 
 
GAAP research and development
 
$
(33,471
)
 
$
(35,442
)
 
$
(107,781
)
 
$
(105,108
)



Severance, restructuring, and acquisition integration costs
 
527

 
99

 
5,241

 
52

Adjusted research and development
 
$
(32,944
)
 
$
(35,343
)
 
$
(102,540
)
 
$
(105,056
)
 
 
 
 
 
 
 
 
 
GAAP net income attributable to Belden
 
$
85,881

 
$
1,027

 
$
117,368

 
$
62,691

Interest expense, net
 
14,472

 
19,385

 
46,538

 
66,424

Income tax expense (benefit)
 
32,304

 
(11,133
)
 
46,063

 
(6,673
)
Loss on debt extinguishment
 
—

 
51,594

 
22,990

 
52,441

Noncontrolling interest
 
(23
)
 
(82
)
 
(148
)
 
(274
)
Total non-operating adjustments
 
46,753

 
59,764

 
115,443

 
111,918

 
 
 
 
 
 
 
 
 
Amortization of intangible assets
 
25,533

 
27,162

 
74,990

 
77,944

Severance, restructuring, and acquisition integration costs
 
11,688

 
16,679

 
57,010

 
32,839

Deferred revenue adjustments
 
3,229

 
—

 
7,889

 
—

Purchase accounting effects related to acquisitions
 
821

 
2,922

 
2,359

 
4,089

Amortization of software development intangible assets
 
620

 
—

 
1,344

 
—

Loss on sale of assets
 
—

 
—

 
94

 
—

Accelerated depreciation
 
—

 
266

 
—

 
798

    Gain from patent litigation
 
(62,141
)
 
—

 
(62,141
)
 
—

Costs related to patent litigation
 
2,634

 
—

 
2,634

 
—

Total operating income adjustments
 
(17,616
)
 
47,029

 
84,179

 
115,670

Depreciation expense
 
11,671

 
11,417

 
35,562

 
33,796

 
 
 
 
 
 
 
 
 
Adjusted EBITDA
 
$
126,689

 
$
119,237

 
$
352,552

 
$
324,075

 
 
 
 
 
 
 
 
 
GAAP net income margin
 
13.1
%
 
0.2
%
 
6.1
%
 
3.5
%
Adjusted EBITDA margin
 
19.2
%
 
19.2
%
 
18.2
%
 
18.2
%
 
 
 
 
 
 
 
 
 
GAAP net income attributable to Belden
 
$
85,881

 
$
1,027

 
$
117,368

 
$
62,691

Operating income adjustments from above
 
(17,616
)
 
47,029

 
84,179

 
115,670

Loss on debt extinguishment
 
—

 
51,594

 
22,990

 
52,441

Tax effect of adjustments above
 
8,776

 
(25,782
)
 
(17,859
)
 
(44,750
)
Impact of Tax Cuts and Jobs Act enactment
 
4,835

 
—

 
5,308

 
—

Amortization expense attributable to noncontrolling interest, net of tax
 
(17
)
 
(16
)
 
(50
)
 
(47
)
Adjusted net income attributable to Belden
 
$
81,859

 
$
73,852

 
$
211,936

 
$
186,005

 
 
 
 
 
 
 
 
 
GAAP net income attributable to Belden
 
$
85,881

 
$
1,027

 
$
117,368

 
$
62,691

Less: Preferred stock dividends
 
—

 
8,732

 
26,198

 
26,198

GAAP net income (loss) attributable to Belden common stockholders
 
$
85,881

 
$
(7,705
)
 
$
91,170

 
$
36,493

 
 
 
 
 
 
 
 
 
Adjusted net income attributable to Belden
 
$
81,859

 
$
73,852

 
$
211,936

 
$
186,005

Less: Preferred stock dividends
 
—

 
—

 
—

 
26,198

Adjusted net income attributable to Belden common stockholders
 
$
81,859

 
$
73,852

 
$
211,936

 
$
159,807

 
 
 
 
 
 
 
 
 
GAAP income (loss) per diluted share attributable to Belden common stockholders
 
$
1.80

 
$
(0.18
)
 
$
2.21

 
$
0.86

Adjusted income per diluted share attributable to Belden common stockholders
 
$
1.72

 
$
1.49

 
$
4.40

 
$
3.75

 
 
 
 
 
 
 
 
 
GAAP diluted weighted average shares
 
47,678

 
42,256

 
41,268

 
42,663

Adjustment for assumed conversion of preferred stock into common stock
 
—

 
6,848

 
6,857

 
—

Adjustment for anti-dilutive shares that are dilutive under adjusted measures
 
—

 
414

 
—

 
—

Adjusted diluted weighted average shares
 
47,678

 
49,518

 
48,125

 
42,663






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
 
Nine Months Ended
 
 
September 30, 2018
 
October 1, 2017
 
September 30, 2018
 
October 1, 2017
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
GAAP net cash provided by operating activities
 
$
130,221

 
$
68,834

 
$
100,859

 
$
103,615

Capital expenditures, net of proceeds from the disposal of tangible assets
 
(23,919
)
 
(11,218
)
 
(61,895
)
 
(33,415
)
Non-GAAP free cash flow
 
$
106,302

 
$
57,616

 
$
38,964

 
$
70,200



BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
2018 REVENUES AND EARNINGS GUIDANCE
 
 
  
Year Ended
December 31, 2018
  
Three Months Ended
December 31, 2018
Adjusted revenues
 
$2.595 - $2.615 billion
 
$657 - $677 million
     Deferred revenue adjustments
 
($10 million)
 
($3 million)
GAAP revenues
 
$2.585 - $2.605 billion
 
$654 - $674 million
 
 
 
 
 
Adjusted income per diluted share attributable to Belden common stockholders
  
$6.00 - $6.10
 
$1.60 - $1.70
     Amortization of intangible assets
  
(1.92)
 
(0.48)
     Severance, restructuring, and acquisition integration costs
  
(1.29)
 
(0.22)
     Gain from patent litigation, net of costs
 
0.96
 
—
     Loss on debt extinguishment
 
(0.41)
 
—
     Deferred revenue adjustments
 
(0.20)
 
(0.06)
     Purchase accounting effects of acquisitions
 
(0.05)
 
—
GAAP income per diluted share attributable to Belden common stockholders
  
$3.09 - $3.19
 
$0.84 - $0.94
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 fourth quarter and full-year 2018. 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 impact of a challenging global economy or a downturn in served markets; the competitiveness of the global broadcast, enterprise, and industrial markets; volatility in credit and foreign exchange markets; 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 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; 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 increased influence of chief information officers and similar high-level executives; 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; the cost and availability of raw materials including copper, plastic compounds, electronic components, and other materials; difficulty in forecasting revenue due to the unpredictable timing of large orders; 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 changes in global tariffs and trade agreements; 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 Quarterly Report on Form 10-Q for the quarter ended July 1, 2018, filed with the SEC on August 6, 2018. 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.

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