Belden Reports Results for Fourth Quarter 2020 and Announces CFO Transition
Belden Inc. (NYSE: BDC) announced its fourth quarter and full year 2020 results, reporting revenues of $498.5 million for Q4 and $1.863 billion for the year, down from $549.7 million and $2.131 billion in the prior-year periods. EPS rose to $0.35, up from $0.05, while adjusted EPS decreased to $0.90 from $1.20. The company achieved $15 million in quarterly savings from its SG&A cost reduction program. With an outlook for 2021, Belden expects revenues of $1.990 - $2.050 billion and GAAP EPS of $1.70 - $2.10. A CFO transition was also announced, with Jeremy Parks succeeding Henk Derksen.
- Q4 2020 EPS increased to $0.35 from $0.05 in Q4 2019.
- $15 million in quarterly run-rate savings achieved from cost reduction programs.
- Expectations for revenue growth in 2021, with projected revenues of $1.990 - $2.050 billion.
- Q4 2020 revenues declined to $498.5 million, down from $549.7 million in Q4 2019.
- Full year 2020 revenues decreased to $1.863 billion from $2.131 billion in 2019.
- Adjusted EPS fell to $0.90 in Q4 2020, down from $1.20 in Q4 2019.
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.
Jeremy Parks, Chief Financial Officer of Belden Inc. (Photo: Business Wire)
Fourth Quarter 2020
Revenues for the quarter totaled
Adjusted EPS was
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
Full Year 2020
Revenues for the year totaled
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
The Company expects first quarter 2021 GAAP EPS to be
The Company expects first quarter 2021 adjusted EPS to be
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.
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Three Months Ended |
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Twelve Months Ended |
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December 31, 2020 |
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December 31, 2019 |
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December 31, 2020 |
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December 31, 2019 |
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(In thousands, except per share data) |
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Revenues |
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$ |
498,540 |
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$ |
549,688 |
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$ |
1,862,716 |
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$ |
2,131,278 |
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Cost of sales |
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(323,284 |
) |
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(346,916 |
) |
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(1,199,427 |
) |
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(1,337,773 |
) |
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Gross profit |
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175,256 |
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202,772 |
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663,289 |
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793,505 |
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Selling, general and administrative expenses |
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(91,059 |
) |
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(118,675 |
) |
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(366,188 |
) |
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(417,329 |
) |
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Research and development expenses |
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(25,663 |
) |
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(22,346 |
) |
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(107,296 |
) |
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(94,360 |
) |
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Amortization of intangibles |
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(16,089 |
) |
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(18,351 |
) |
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(64,395 |
) |
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(74,609 |
) |
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Operating income |
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42,445 |
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43,400 |
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125,410 |
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207,207 |
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Interest expense, net |
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(15,700 |
) |
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(13,863 |
) |
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(58,888 |
) |
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(55,814 |
) |
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Non-operating pension benefit (cost) |
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(2,474 |
) |
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(667 |
) |
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(395 |
) |
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1,017 |
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Income from continuing operations before taxes |
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24,271 |
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28,870 |
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66,127 |
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152,410 |
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Income tax expense |
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(8,501 |
) |
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(26,340 |
) |
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(11,724 |
) |
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