Belden Reports Results for Third Quarter 2020

Rhea-AI Summary

Belden Inc. (BDC) reported fiscal Q3 2020 results with revenues of $475.8 million, down from $533.1 million in Q3 2019. EPS fell to $0.46, compared to $0.83 in the previous year. Adjusted EPS was $0.72, down from $1.19. The company anticipates full-year revenues between $1.824 billion and $1.849 billion. A $60 million SG&A cost reduction plan is underway, expected to yield $15 million in quarterly savings by Q4. Management expresses optimism about improving demand trends and plans to resume traditional guidance practices.

Positive

• Solid double-digit sequential increases in revenue, EPS, and cash flow.
• Cost reduction program expected to deliver $15 million in savings.
• Improving demand trends and visibility, indicating potential growth.

Negative

• Revenues decreased by 10.8% year-over-year.
• EPS decline of 44.6% compared to Q3 2019.

ST. LOUIS--(BUSINESS WIRE)--Belden Inc. (NYSE: BDC), a leading global supplier of specialty networking solutions, today reported fiscal third quarter 2020 results for the period ended September 27, 2020.

Third Quarter 2020

Revenues for the quarter totaled $475.8 million, compared to $533.1 million in the prior-year period. EPS totaled $0.46 compared to $0.83 in the third quarter 2019.

Adjusted EPS was $0.72 compared to $1.19 in the third quarter 2019. Adjusted results are non-GAAP measures, and a non-GAAP reconciliation table is provided as an appendix to this release.

Roel Vestjens, President and CEO of Belden Inc., said, “Business conditions improved during the third quarter, and I am pleased to report solid double-digit sequential increases in revenue, EPS and cash flow. We expect to deliver the full $15 million quarterly run rate savings in the fourth quarter 2020 associated with our $60 million SG&A cost reduction program. We are comfortable with our balance sheet and liquidity position, and as a result we repaid all remaining short-term revolver borrowings during the third quarter.”

Outlook

“Demand trends and visibility in our business are improving. As a result, we are resuming our traditional guidance practices. Assuming no further material disruptions related to COVID-19, we expect modest sequential improvement in underlying demand in the fourth quarter. Throughout this challenging period, we continue to invest in our business and align our portfolio around the favorable secular trends in industrial automation, cybersecurity, broadband & 5G, and smart buildings. The Company is well positioned for improving growth and robust margin expansion,” said Mr. Vestjens.

The Company expects fourth quarter 2020 revenues to be $460 - $485 million. For the full year ending December 31, 2020, the Company expects revenues to be $1.824 - $1.849 billion.

The Company expects fourth quarter 2020 GAAP EPS to be $0.13 - $0.28. For the full year ending December 31, 2020, the Company expects GAAP EPS of $0.99 - $1.14.

The Company expects fourth quarter 2020 adjusted EPS to be $0.63 - $0.78. For the full year ending December 31, 2020, the Company expects adjusted EPS of $2.47 - $2.62.

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.

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 http://investor.belden.com.

BELDEN INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
		Three Months Ended								Nine Months Ended
		September 27, 2020				September 29, 2019				September 27, 2020				September 29, 2019
		(In thousands, except per share data)
Revenues		$	475,839			$	533,098			$	1,364,176			$	1,581,590
Cost of sales		(308,247)				(334,293)				(876,143)				(990,857)
Gross profit		167,592				198,805				488,033				590,733
Selling, general and administrative expenses		(85,037)				(98,245)				(275,129)				(298,654)
Research and development expenses		(30,324)				(23,992)				(81,633)				(72,014)
Amortization of intangibles		(16,104)				(19,026)				(48,306)				(56,258)
Operating income		36,127				57,542				82,965				163,807
Interest expense, net		(15,607)				(14,002)				(43,188)				(41,951)
Non-operating pension benefit		680				544				2,079				1,684
Income from continuing operations before taxes		21,200				44,084				41,856				123,540
Income tax expense		(631)				(6,053)				(3,223)				(16,179)
Income from continuing operations		20,569				38,031				38,633				107,361
Loss from discontinued operations, net of tax		(6,231)				(335,046)				(103,395)				(336,908)
Gain on disposal of discontinued operations, net of tax		2,743				—				2,743				—
Net income (loss)		17,081				(297,015)				(62,019)				(229,547)
Less: Net income (loss) attributable to noncontrolling interest		85				(6)				79				60
Net income (loss) attributable to Belden		16,996				(297,009)				(62,098)				(229,607)
Less: Preferred stock dividends		—				971				—				18,437
Net income (loss) attributable to Belden common stockholders		$	16,996			$	(297,980)			$	(62,098)			$	(248,044)
Weighted average number of common shares and equivalents:
Basic		44,567				44,444				44,834				41,090
Diluted		44,709				44,610				44,968				41,299
Basic income (loss) per share attributable to Belden common stockholders:
Continuing operations attributable to Belden common stockholders		$	0.46			$	0.83			$	0.86			$	2.16
Discontinued operations attributable to Belden common stockholders		(0.14)				(7.54)				(2.31)				(8.20)
Disposal of discontinued operations attributable to Belden common stockholders		0.06				—				0.06				—
Net income (loss) per share attributable to Belden common stockholders		$	0.38			$	(6.70)			$	(1.39)			$	(6.04)
Diluted income (loss) per share attributable to Belden common stockholders:
Continuing operations attributable to Belden common stockholders		$	0.46			$	0.83			$	0.86			$	2.15
Discontinued operations attributable to Belden common stockholders		(0.14)				(7.54)				(2.31)				(8.20)
Disposal of discontinued operations attributable to Belden common stockholders		0.06				—				0.06				—
Net income (loss) per share attributable to Belden common stockholders		$	0.38			$	(6.70)			$	(1.39)			$	(6.04)
Common stock dividends declared per share		$	0.05			$	0.05			$	0.15			$	0.15

BELDEN INC.

OPERATING SEGMENT INFORMATION

(Unaudited)

Effective January 1, 2020, we transferred our West Penn Wire business and multi-conductor product lines from the Enterprise Solutions segment to the Industrial Solutions segment, and as such, have recast the prior period segment information.

		Enterprise Solutions				Industrial Solutions				Total Segments
	(In thousands, except percentages)
For the three months ended September 27, 2020
Segment Revenues		$	229,097			$	246,742			$	475,839
Segment EBITDA		26,250				38,391				64,641
Segment EBITDA margin		11.5		%		15.6		%		13.6		%
Depreciation expense		5,005				5,450				10,455
Amortization of intangibles		5,408				10,696				16,104
Amortization of software development intangible assets		73				456				529
Severance, restructuring, and acquisition integration costs		1,337				20				1,357
For the three months ended September 29, 2019
Segment Revenues		$	247,236			$	285,862			$	533,098
Segment EBITDA		35,868				54,849				90,717
Segment EBITDA margin		14.5		%		19.2		%		17.0		%
Depreciation expense		4,919				5,060				9,979
Amortization of intangibles		6,269				12,757				19,026
Amortization of software development intangible assets		49				36				85
Severance, restructuring, and acquisition integration costs		3,047				—				3,047
Purchase accounting effects of acquisitions		(186)				—				(186)
For the nine months ended September 27, 2020
Segment Revenues		$	644,684			$	719,492			$	1,364,176
Segment EBITDA		73,193				100,367				173,560
Segment EBITDA margin		11.4		%		13.9		%		12.7		%
Depreciation expense		15,208				15,861				31,069
Amortization of intangibles		16,266				32,040				48,306
Amortization of software development intangible assets		184				1,061				1,245
Severance, restructuring, and acquisition integrations costs		6,310				3,138				9,448
Purchase accounting effects of acquisitions		125				—				125
For the nine months ended September 29, 2019
Segment Revenues		$	699,644			$	881,946			$	1,581,590
Segment EBITDA		93,074				165,257				258,331
Segment EBITDA margin		13.3		%		18.7		%		16.3		%
Depreciation expense		14,576				15,414				29,990
Amortization of intangibles		16,694				39,564				56,258
Amortization of software development intangible assets		120				87				207
Severance, restructuring, and acquisition integrations costs		5,566				—				5,566
Purchase accounting effects of acquisitions		532				—				532

BELDEN INC. OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS (Unaudited)
		Three Months Ended								Nine Months Ended
		September 27, 2020				September 29, 2019				September 27, 2020				September 29, 2019
		(In thousands)
Total Segment Revenues		$	475,839			$	533,098			$	1,364,176			$	1,581,590
Deferred revenue adjustments		—				—				—				—
Consolidated Revenues		$	475,839			$	533,098			$	1,364,176			$	1,581,590
Total Segment EBITDA		$	64,641			$	90,717			$	173,560			$	258,331
Eliminations		(69)				(1,224)				(402)				(1,971)
Total non-operating pension benefit		680				544				2,079				1,684
Consolidated Adjusted EBITDA (1)		65,252				90,037				175,237				258,044
Amortization of intangibles		(16,104)				(19,026)				(48,306)				(56,258)
Interest expense, net		(15,607)				(14,002)				(43,188)				(41,951)
Depreciation expense		(10,455)				(9,979)				(31,069)				(29,990)
Severance, restructuring, and acquisition integration costs		(1,357)				(3,047)				(9,448)				(5,566)
Amortization of software development intangible assets		(529)				(85)				(1,245)				(207)
Purchase accounting effects related to acquisitions		—				186				(125)				(532)
Income from continuing operations before taxes		$	21,200			$	44,084			$	41,856			$	123,540

(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 27, 2020				December 31, 2019
		(Unaudited)
		(In thousands)
ASSETS
Current assets:
Cash and cash equivalents		$	391,497			$	407,480
Receivables, net		331,232				334,634
Inventories, net		244,815				231,333
Other current assets		39,211				29,172
Current assets of discontinued operations		—				375,135
Total current assets		1,006,755				1,377,754
Property, plant and equipment, less accumulated depreciation		347,668				345,918
Operating lease right-of-use assets		57,380				62,251
Goodwill		1,247,432				1,243,669
Intangible assets, less accumulated amortization		294,592				339,505
Deferred income taxes		29,845				25,216
Other long-lived assets		52,410				12,446
		$	3,036,082			$	3,406,759
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	211,269			$	268,466
Accrued liabilities		246,513				283,799
Current liabilities of discontinued operations		—				170,279
Total current liabilities		457,782				722,544
Long-term debt		1,500,716				1,439,484
Postretirement benefits		130,581				136,227
Deferred income taxes		48,896				48,725
Long-term operating lease liabilities		49,209				55,652
Other long-term liabilities		50,311				38,308
Stockholders’ equity:
Common stock		503				503
Additional paid-in capital		818,661				811,955
Retained earnings		446,198				518,004
Accumulated other comprehensive loss		(137,458)				(63,418)
Treasury stock		(335,508)				(307,197)
Total Belden stockholders’ equity		792,396				959,847
Noncontrolling interests		6,191				5,972
Total stockholders’ equity		798,587				965,819
		$	3,036,082			$	3,406,759

BELDEN INC. CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Unaudited)
		Nine Months Ended
		September 27, 2020				September 29, 2019
		(In thousands)
Cash flows from operating activities:
Net loss		$	(62,019)			$	(229,547)
Adjustments to reconcile net loss to net cash provided by operating activities:
Asset impairment of discontinued operations		113,007				342,146
Depreciation and amortization		80,620				108,328
Share-based compensation		13,650				12,115
Gain on disposal of business		(2,743)				—
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes, acquired businesses and disposals:
Receivables		35,645				6,002
Inventories		(9,327)				32,261
Accounts payable		(69,579)				(78,346)
Accrued liabilities		(11,646)				(70,368)
Income taxes		(30,416)				(19,650)
Other assets		1,860				(9,088)
Other liabilities		(20,363)				(4,336)
Net cash provided by operating activities		38,689				89,517
Cash flows from investing activities:
Capital expenditures		(56,809)				(74,068)
Cash used to acquire businesses, net of cash acquired		590				(50,951)
Proceeds from disposal of tangible assets		3,090				19
Proceeds from disposal of business, net of cash sold		50,051				—
Net cash used for investing activities		(3,078)				(125,000)
Cash flows from financing activities:
Borrowings on revolver		190,000				—
Payments under borrowing arrangements		(190,000)				—
Payments under share repurchase program		(35,000)				(50,000)
Payment of earnout consideration		(29,300)				—
Cash dividends paid		(6,800)				(32,153)
Withholding tax payments for share-based payment awards		(1,331)				(2,063)
Other		(154)				(232)
Net cash used for financing activities		(72,585)				(84,448)
Effect of foreign currency exchange rate changes on cash and cash equivalents		2,586				(3,937)
Decrease in cash and cash equivalents		(34,388)				(123,868)
Cash and cash equivalents, beginning of period		425,885				420,610
Cash and cash equivalents, end of period		$	391,497			$	296,742

For all periods presented, the Consolidated Cash Flow Statement includes the results of the Grass Valley disposal group up to the disposal date, July 2, 2020.

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 27, 2020				September 29, 2019				September 27, 2020				September 29, 2019
		(In thousands, except percentages and per share amounts)
GAAP and adjusted revenues		$	475,839			$	533,098			$	1,364,176			$	1,581,590
GAAP gross profit		$	167,592			$	198,805			$	488,033			$	590,733
Amortization of software development intangible assets		529				85				1,245				207
Severance, restructuring, and acquisition integration costs		85				792				222				1,092
Purchase accounting effects related to acquisitions		—				(186)				125				532
Adjusted gross profit		$	168,206			$	199,496			$	489,625			$	592,564
GAAP gross profit margin		35.2		%		37.3		%		35.8		%		37.4		%
Adjusted gross profit margin		35.3		%		37.4		%		35.9		%		37.5		%
GAAP selling, general and administrative expenses		$	(85,037)			$	(98,245)			$	(275,129)			$	(298,654)
Severance, restructuring, and acquisition integration costs		1,272				2,255				9,226				4,474
Adjusted selling, general and administrative expenses		$	(83,765)			$	(95,990)			$	(265,903)			$	(294,180)
GAAP and adjusted research and development expenses		$	(30,324)			$	(23,992)			$	(81,633)			$	(72,014)
GAAP net income (loss) attributable to Belden		$	16,996			$	(297,009)			$	(62,098)			$	(229,607)
Interest expense, net		15,607				14,002				43,188				41,951
Loss from discontinued operations, net of tax		6,231				335,046				103,395				336,908
Gain on disposal of discontinued operations, net of tax		(2,743)				—				(2,743)				—
Income tax expense		631				6,053				3,223				16,179
Noncontrolling interest		85				(6)				79				60
Total non-operating adjustments		19,811				355,095				147,142				395,098
Amortization of intangible assets		16,104				19,026				48,306				56,258
Severance, restructuring, and acquisition integration costs		1,357				3,047				9,448				5,566
Amortization of software development intangible assets		529				85				1,245				207
Purchase accounting effects related to acquisitions		—				(186)				125				532
Total operating income adjustments		17,990				21,972				59,124				62,563
Depreciation expense		10,455				9,979				31,069				29,990
Adjusted EBITDA		$	65,252			$	90,037			$	175,237			$	258,044
GAAP net income (loss) margin		3.6		%		(55.7)		%		(4.6)		%		(14.5)		%
Adjusted EBITDA margin		13.7		%		16.9		%		12.8		%		16.3		%
GAAP net income (loss) attributable to Belden		$	16,996			$	(297,009)			$	(62,098)			$	(229,607)
Operating income adjustments from above		17,990				21,972				59,124				62,563
Loss from discontinued operations, net of tax		6,231				335,046				103,395				336,908
Gain on disposal of discontinued operations, net of tax		(2,743)				—				(2,743)				—
Tax effect of adjustments above		(6,292)				(5,625)				(14,687)				(14,743)
Adjusted net income attributable to Belden		$	32,182			$	54,384			$	82,991			$	155,121
GAAP net income (loss) attributable to Belden		$	16,996			$	(297,009)			$	(62,098)			$	(229,607)
Loss from discontinued operations, net of tax		6,231				335,046				103,395				336,908
Gain on disposal of discontinued operations, net of tax		(2,743)				—				(2,743)				—
Less: Preferred stock dividends		—				971				—				18,437
GAAP net income from continuing operations attributable to Belden common stockholders		$	20,484			$	37,066			$	38,554			$	88,864
Adjusted net income attributable to Belden		$	32,182			$	54,384			$	82,991			$	155,121
Less: Preferred stock dividends		—				—				—				18,437
Adjusted net income from continuing operations attributable to Belden common stockholders		$	32,182			$	54,384			$	82,991			$	136,684
GAAP income from continuing operations per diluted share attributable to Belden common stockholders		$	0.46			$	0.83			$	0.86			$	2.15
Adjusted income from continuing operations per diluted share attributable to Belden common stockholders		$	0.72			$	1.19			$	1.85			$	3.31
GAAP diluted weighted average shares		44,709				44,610				44,968				41,299
Adjusted for assumed conversion of preferred stock into common stock		—				1,130				—				—
Adjusted diluted weighted average shares		44,709				45,740				44,968				41,299

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 27, 2020				September 29, 2019				September 27, 2020				September 29, 2019
		(In thousands)
GAAP net cash provided by operating activities		$	50,819			$	67,872			$	38,689			$	89,517
Capital expenditures, net of proceeds from the disposal of tangible assets		(15,075)				(23,299)				(53,719)				(74,049)
Non-GAAP free cash flow		$	35,744			$	44,573			$	(15,030)			$	15,468

BELDEN INC. RECONCILIATION OF NON-GAAP MEASURES 2020 Earnings Guidance
		Year Ended		Three Months Ended
		December 31, 2020		December 31, 2020
		(In thousands)
GAAP income from continuing operations per diluted share attributable to Belden common stockholders		$0.99 - $1.14		$0.13 - $0.28
Amortization of intangible assets		1.08		0.26
Severance, restructuring, and acquisition integration costs		0.40		0.24
Adjusted income from continuing operations per diluted share attributable to Belden common stockholders		$2.47 - $2.62		$0.63 - $0.78

Our guidance for income from continuing operations 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 subject matter of this release may contain forward-looking statements, including our expectations for the fourth quarter and full-year 2020 and the results of our restructuring program. Forward-looking statements also include any 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 lack of certainty as to the duration and magnitude of the impact of COVID-19 and the economic recovery from that impact; the results of the Company’s impairment analysis, which could reduce EPS, adjusted EPS, and various other financial metrics; 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 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 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 impact of a challenging global economy or a downturn in served markets; 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; 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 year ended December 31, 2019, filed with the SEC on February 11, 2020, as well as enhancements made to our risk factors throughout the year, including as disclosed in our first quarter 2020 Form 10-Q filed with the SEC on May 4, 2020. 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.