Belden Reports Second Quarter 2024 Results
Belden (NYSE: BDC) reported Q2 2024 results, with revenues of $604 million, down 13% y/y. GAAP EPS was $1.19, down 26%, and adjusted EPS was $1.51, down 21%. The company completed the acquisition of Precision Optical Technologies, Inc. Net income for Q2 was $49 million, a decrease from $69 million y/y. Adjusted EBITDA was $99 million, down 19% y/y, with an adjusted EBITDA margin of 16.5%.
For Q3 2024, Belden projects revenues between $635-$650 million, GAAP EPS of $1.00-$1.10, and adjusted EPS of $1.55-$1.65. The company sees steady demand and modest revenue growth sequentially. Net income as a percentage of revenues was 8.1%, down from 9.9% y/y. The decline in revenue and EPS was attributed to lower market demand and ongoing inventory adjustments by customers.
Belden (NYSE: BDC) ha riportato i risultati del Q2 2024, con ricavi di 604 milioni di dollari, in calo del 13% rispetto all'anno precedente. GAAP EPS è stato di 1,19 dollari, in diminuzione del 26%, mentre EPS rettificato è stato di 1,51 dollari, in calo del 21%. L'azienda ha completato l'acquisizione di Precision Optical Technologies, Inc. Il reddito netto per il Q2 è stato di 49 milioni di dollari, in diminuzione rispetto ai 69 milioni di dollari dell'anno precedente. L'EBITDA rettificato è stato di 99 milioni di dollari, in calo del 19% rispetto all'anno precedente, con un margine EBITDA rettificato del 16,5%.
Per il Q3 2024, Belden prevede ricavi tra 635 e 650 milioni di dollari, GAAP EPS tra 1,00 e 1,10 dollari, e adjusted EPS tra 1,55 e 1,65 dollari. L'azienda prevede una domanda costante e una modesta crescita dei ricavi su base sequenziale. Il reddito netto come percentuale dei ricavi è stato dell'8,1%, in calo dal 9,9% dell'anno precedente. Il calo dei ricavi e dell'EPS è stato attribuito a una minore domanda di mercato e agli aggiustamenti dell'inventario in corso da parte dei clienti.
Belden (NYSE: BDC) reportó los resultados del Q2 2024, con ingresos de 604 millones de dólares, lo que representa una disminución del 13% interanual. GAAP EPS fue de 1,19 dólares, un descenso del 26%, y EPS ajustado fue de 1,51 dólares, una baja del 21%. La compañía completó la adquisición de Precision Optical Technologies, Inc. La utilidad neta para el Q2 fue de 49 millones de dólares, lo que representa una disminución desde los 69 millones de dólares interanual. El EBITDA ajustado fue de 99 millones de dólares, un descenso del 19% interanual, con un margen de EBITDA ajustado del 16,5%.
Para el Q3 2024, Belden proyecta ingresos entre 635 y 650 millones de dólares, GAAP EPS de entre 1,00 y 1,10 dólares, y EPS ajustado de entre 1,55 y 1,65 dólares. La empresa ve una demanda constante y un crecimiento modesto de los ingresos secuencialmente. La utilidad neta como porcentaje de los ingresos fue del 8,1%, una disminución desde el 9,9% interanual. La caída en los ingresos y el EPS se atribuyó a una menor demanda del mercado y a los ajustes de inventario en curso por parte de los clientes.
벨든(Belden, NYSE: BDC)은 2024년 2분기 실적을 발표했습니다. 매출은 6억 4백만 달러로 전년 대비 13% 감소했습니다. GAAP EPS는 1.19달러로 26% 감소했으며, 조정 EPS는 1.51달러로 21% 감소했습니다. 회사는 Precision Optical Technologies, Inc.의 인수를 완료했습니다. 2분기 순이익은 4,900만 달러로 전년 대비 6,900만 달러에서 줄어들었습니다. 조정 EBITDA는 9,900만 달러로 19% 감소하였고 조정 EBITDA 마진은 16.5%였습니다.
2024년 3분기 동안 벨든은 매출이 6억 3천5백만에서 6억 5천만 달러 사이가 될 것으로 예상하며, GAAP EPS는 1.00-1.10달러, 조정 EPS는 1.55-1.65달러로 예상하고 있습니다. 회사는 안정적인 수요와 점진적인 매출 성장을 보고 있습니다. 순이익의 매출 비율은 8.1%로 전년 대비 9.9%에서 감소하였습니다. 매출 및 EPS의 감소는 시장 수요 감소와 고객의 재고 조정이 계속되고 있는 것에 따라 발생하였습니다.
Belden (NYSE: BDC) a publié les résultats du 2ème trimestre 2024, avec des revenus de 604 millions de dollars, en baisse de 13% par rapport à l'année précédente. GAAP EPS était de 1,19 dollar, une baisse de 26%, et EPS ajusté était de 1,51 dollar, en baisse de 21%. L'entreprise a finalisé l'acquisition de Precision Optical Technologies, Inc. Le revenu net pour le 2ème trimestre était de 49 millions de dollars, en baisse par rapport à 69 millions de dollars l'année précédente. L'EBITDA ajusté était de 99 millions de dollars, en baisse de 19% par rapport à l'année précédente, avec une marge EBITDA ajustée de 16,5%.
Pour le 3ème trimestre 2024, Belden prévoit des revenus compris entre 635 et 650 millions de dollars, un GAAP EPS de 1,00 à 1,10 dollar, et un EPS ajusté de 1,55 à 1,65 dollar. L'entreprise anticipe une demande stable et une croissance modeste des revenus dans la séquence. Le revenu net en pourcentage des revenus était de 8,1%, en baisse par rapport à 9,9% l'année précédente. La baisse des revenus et de l'EPS a été attribuée à une demande du marché plus faible et à des ajustements d'inventaire continus de la part des clients.
Belden (NYSE: BDC) hat die Ergebnisse für das 2. Quartal 2024 veröffentlicht, mit Einnahmen von 604 Millionen Dollar, einem Rückgang von 13% im Jahresvergleich. GAAP EPS betrug 1,19 Dollar, ein Rückgang von 26%, während das bereinigte EPS 1,51 Dollar betrug, was einem Rückgang von 21% entspricht. Das Unternehmen hat die Übernahme von Precision Optical Technologies, Inc. abgeschlossen. Der Nettogewinn für das 2. Quartal betrug 49 Millionen Dollar, ein Rückgang von 69 Millionen Dollar im Jahresvergleich. Das bereinigte EBITDA betrug 99 Millionen Dollar, ein Rückgang von 19% im Jahresvergleich, mit einer bereinigten EBITDA-Marge von 16,5%.
Für das 3. Quartal 2024 prognostiziert Belden Einnahmen zwischen 635 und 650 Millionen Dollar, GAAP EPS von 1,00 bis 1,10 Dollar und bereinigtes EPS von 1,55 bis 1,65 Dollar. Das Unternehmen sieht eine stabilisierende Nachfrage und ein moderates Umsatzwachstum im Vergleich zum vorherigen Quartal. Der Nettogewinn als Prozentsatz der Einnahmen betrug 8,1%, ein Rückgang von 9,9% im Jahresvergleich. Der Rückgang der Einnahmen und des EPS wurde auf eine geringere Marktnachfrage und laufende Bestandsanpassungen der Kunden zurückgeführt.
- Completed acquisition of Precision Optical Technologies, Inc.
- Sequential growth in orders for the third consecutive quarter
- Projected Q3 2024 revenues of $635-$650 million
- Expected Q3 2024 adjusted EPS of $1.55-$1.65
- Q2 2024 revenues down 13% y/y
- GAAP EPS down 26% y/y
- Net income down from $69 million to $49 million y/y
- Adjusted EBITDA down 19% y/y
- Net income margin decreased from 9.9% to 8.1% y/y
Belden's Q2 2024 results reveal some concerning trends for investors. The company reported revenues of
Profitability metrics also deteriorated, with net income falling
While management noted "steady" demand and "moderate sequential growth in orders," the outlook remains cautious. Q3 guidance implies only modest sequential revenue growth. This suggests the challenging market environment is likely to persist in the near term.
On a positive note, Belden completed the acquisition of Precision Optical Technologies, expanding its fiber portfolio. This aligns with the company's focus on high-growth data markets and could provide a catalyst for future growth. However, investors should closely monitor integration progress and synergy realization.
Overall, Belden faces headwinds from inventory destocking and softer end-market demand. Its ability to navigate this environment while executing on strategic initiatives will be important for the stock's performance.
Belden's Q2 results offer valuable insights into broader industry trends. The
The company's commentary on customers "working through inventory" indicates ongoing destocking efforts across the supply chain. This inventory correction phase could continue to pressure revenues in the near term, even if end-demand stabilizes.
Notably, Belden highlighted "reindustrialization" as a long-term growth driver. This trend towards reshoring and modernizing industrial infrastructure in developed markets could indeed provide tailwinds for companies like Belden in the coming years.
The acquisition of Precision Optical Technologies reflects the growing importance of fiber optic solutions in network infrastructure. As data demands increase, this market segment is likely to see continued growth and investment.
Investors should watch for signs of a demand inflection point in Belden's end markets, particularly in industrial automation and enterprise networking. Any improvement in order patterns or book-to-bill ratios in upcoming quarters could signal the beginning of a recovery phase.
Second Quarter 2024 Highlights
-
Revenues of
$604 million 13% y/y and down13% y/y organically -
GAAP EPS of
$1.19 26% y/y -
Adjusted EPS of
$1.51 21% y/y - Closed acquisition of Precision Optical Technologies, Inc.
“Demand for the quarter was steady, with our team delivering second quarter revenues and EPS exceeding expectations,” said Ashish Chand, President and CEO of Belden. “In this dynamic environment where customers continue to work through inventory, our team executed well, delivering moderate sequential growth in orders for the third consecutive quarter. We continue to focus on enabling solutions across both segments by aligning on key secular trends in target verticals where data growth is high. Consistent with our capital allocation framework, during the quarter we closed on the acquisition of Precision Optical Technologies, Inc. With our expanded fiber portfolio, we look forward to delivering enhanced solutions to our customers.”
Second Quarter 2024
Revenues for the quarter totaled
Adjusted EBITDA was
Outlook
“Our solutions are being embraced by customers and partners, as our teams continue to lean into our transformation,” said Dr. Chand. “Data growth and network upgrades create opportunities for us to solve customer problems, especially as reindustrialization accelerates. Our long-term growth opportunities are considerable, and our portfolio is well-positioned to succeed as the next investment cycle ramps up. I am confident in the ability of the Belden team to continue to transform our business, leverage our superior technology, and capitalize on growth opportunities in all market conditions as we continue to generate sustainable, long-term shareholder value.”
Order patterns remain steady across our markets as customers navigate this dynamic environment. Relative to the second quarter, end demand is expected to increase modestly with revenues up sequentially.
Assuming no significant changes to the current market environment, the table below provides guidance for the third quarter of 2024.
Third Quarter 2024: |
|
|
|
|
Guidance |
Revenues (million) |
|
|
GAAP EPS |
|
|
Adjusted EPS |
|
|
Earnings Conference Call
Management will host a conference call today at 8:30 am ET to discuss the results. 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 is 1-888-882-4478 with confirmation code 1133069. 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) and Organic Growth
All references to EPS within this earnings release refer to net income per diluted share attributable to Belden stockholders. Organic growth is calculated as the change in revenues excluding the impacts from currency exchange rates, copper prices, acquisitions, and divestitures.
BELDEN INC. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, 2024 |
|
July 2, 2023 |
|
June 30, 2024 |
|
July 2, 2023 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
(In thousands, except per share data) |
||||||||||||||
Revenues |
|
$ |
604,336 |
|
|
$ |
692,245 |
|
|
$ |
1,140,011 |
|
|
$ |
1,334,034 |
|
Cost of sales |
|
|
(377,530 |
) |
|
|
(430,917 |
) |
|
|
(711,609 |
) |
|
|
(826,601 |
) |
Gross profit |
|
|
226,806 |
|
|
|
261,328 |
|
|
|
428,402 |
|
|
|
507,433 |
|
Selling, general and administrative expenses |
|
|
(119,497 |
) |
|
|
(126,635 |
) |
|
|
(230,265 |
) |
|
|
(248,209 |
) |
Research and development expenses |
|
|
(28,457 |
) |
|
|
(30,970 |
) |
|
|
(55,456 |
) |
|
|
(60,354 |
) |
Amortization of intangibles |
|
|
(9,940 |
) |
|
|
(11,126 |
) |
|
|
(20,749 |
) |
|
|
(20,736 |
) |
Operating income |
|
|
68,912 |
|
|
|
92,597 |
|
|
|
121,932 |
|
|
|
178,134 |
|
Interest expense, net |
|
|
(9,017 |
) |
|
|
(8,812 |
) |
|
|
(16,599 |
) |
|
|
(17,013 |
) |
Non-operating pension benefit |
|
|
230 |
|
|
|
646 |
|
|
|
461 |
|
|
|
1,134 |
|
Income before taxes |
|
|
60,125 |
|
|
|
84,431 |
|
|
|
105,794 |
|
|
|
162,255 |
|
Income tax expense |
|
|
(11,091 |
) |
|
|
(15,656 |
) |
|
|
(19,451 |
) |
|
|
(30,535 |
) |
Net income |
|
|
49,034 |
|
|
|
68,775 |
|
|
|
86,343 |
|
|
|
131,720 |
|
Less: Net income (loss) attributable to noncontrolling interest |
|
|
(10 |
) |
|
|
22 |
|
|
|
(14 |
) |
|
|
(225 |
) |
Net income attributable to Belden stockholders |
|
$ |
49,044 |
|
|
$ |
68,753 |
|
|
$ |
86,357 |
|
|
$ |
131,945 |
|
Weighted average number of common shares and equivalents: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
40,690 |
|
|
|
42,497 |
|
|
|
40,838 |
|
|
|
42,663 |
|
Diluted |
|
|
41,204 |
|
|
|
43,088 |
|
|
|
41,348 |
|
|
|
43,380 |
|
Basic income per share attributable to Belden stockholders |
|
$ |
1.21 |
|
|
$ |
1.62 |
|
|
$ |
2.11 |
|
|
$ |
3.09 |
|
Diluted income per share attributable to Belden stockholders |
|
$ |
1.19 |
|
|
$ |
1.60 |
|
|
$ |
2.09 |
|
|
$ |
3.04 |
|
Common stock dividends declared per share |
|
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
0.10 |
|
|
$ |
0.10 |
|
BELDEN INC. |
||||||||||||
OPERATING SEGMENT INFORMATION |
||||||||||||
(Unaudited) |
||||||||||||
|
|
Enterprise
|
|
Industrial
|
|
Total
|
||||||
|
(In thousands, except percentages) |
|||||||||||
|
|
|
|
|
|
|
||||||
For the three months ended June 30, 2024 |
|
|
|
|
|
|
||||||
Segment Revenues |
|
$ |
270,473 |
|
|
$ |
333,863 |
|
|
$ |
604,336 |
|
Segment EBITDA |
|
|
31,456 |
|
|
|
67,737 |
|
|
|
99,193 |
|
Segment EBITDA margin |
|
|
11.6 |
% |
|
|
20.3 |
% |
|
|
16.4 |
% |
Depreciation expense |
|
|
6,214 |
|
|
|
7,363 |
|
|
|
13,577 |
|
Amortization of intangibles |
|
|
5,022 |
|
|
|
4,918 |
|
|
|
9,940 |
|
Amortization of software development intangible assets |
|
|
— |
|
|
|
2,464 |
|
|
|
2,464 |
|
Severance, restructuring, and acquisition integration costs |
|
|
2,309 |
|
|
|
1,684 |
|
|
|
3,993 |
|
Adjustments related to acquisitions and divestitures |
|
|
— |
|
|
|
298 |
|
|
|
298 |
|
|
|
|
|
|
|
|
||||||
For the three months ended July 2, 2023 |
|
|
|
|
|
|
||||||
Segment Revenues |
|
$ |
312,529 |
|
|
$ |
379,716 |
|
|
$ |
692,245 |
|
Segment EBITDA |
|
|
43,956 |
|
|
|
78,631 |
|
|
|
122,587 |
|
Segment EBITDA margin |
|
|
14.1 |
% |
|
|
20.7 |
% |
|
|
17.7 |
% |
Depreciation expense |
|
|
6,193 |
|
|
|
6,489 |
|
|
|
12,682 |
|
Amortization of intangibles |
|
|
6,208 |
|
|
|
4,918 |
|
|
|
11,126 |
|
Amortization of software development intangible assets |
|
|
— |
|
|
|
1,820 |
|
|
|
1,820 |
|
Severance, restructuring, and acquisition integration costs |
|
|
1,669 |
|
|
|
2,390 |
|
|
|
4,059 |
|
Adjustments related to acquisitions and divestitures |
|
|
325 |
|
|
|
(76 |
) |
|
|
249 |
|
|
|
|
|
|
|
|
||||||
For the six months ended June 30, 2024 |
|
|
|
|
|
|
||||||
Segment Revenues |
|
$ |
504,562 |
|
|
$ |
635,449 |
|
|
$ |
1,140,011 |
|
Segment EBITDA |
|
|
57,244 |
|
|
|
126,482 |
|
|
|
183,726 |
|
Segment EBITDA margin |
|
|
11.3 |
% |
|
|
19.9 |
% |
|
|
16.1 |
% |
Depreciation expense |
|
|
12,519 |
|
|
|
14,523 |
|
|
|
27,042 |
|
Amortization of intangibles |
|
|
10,741 |
|
|
|
10,008 |
|
|
|
20,749 |
|
Amortization of software development intangible assets |
|
|
— |
|
|
|
5,177 |
|
|
|
5,177 |
|
Severance, restructuring, and acquisition integration costs |
|
|
3,899 |
|
|
|
4,306 |
|
|
|
8,205 |
|
Adjustments related to acquisitions and divestitures |
|
|
— |
|
|
|
596 |
|
|
|
596 |
|
|
|
|
|
|
|
|
||||||
For the six months ended July 2, 2023 |
|
|
|
|
|
|
||||||
Segment Revenues |
|
$ |
587,872 |
|
|
$ |
746,162 |
|
|
$ |
1,334,034 |
|
Segment EBITDA |
|
|
81,161 |
|
|
|
152,418 |
|
|
|
233,579 |
|
Segment EBITDA margin |
|
|
13.8 |
% |
|
|
20.4 |
% |
|
|
17.5 |
% |
Depreciation expense |
|
|
12,147 |
|
|
|
12,889 |
|
|
|
25,036 |
|
Amortization of intangibles |
|
|
10,703 |
|
|
|
10,033 |
|
|
|
20,736 |
|
Amortization of software development intangible assets |
|
|
— |
|
|
|
3,272 |
|
|
|
3,272 |
|
Severance, restructuring, and acquisition integration costs |
|
|
1,694 |
|
|
|
4,077 |
|
|
|
5,771 |
|
Adjustments related to acquisitions and divestitures |
|
|
325 |
|
|
|
222 |
|
|
|
547 |
|
BELDEN INC. |
||||||||||||||||
OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, 2024 |
|
July 2, 2023 |
|
June 30, 2024 |
|
July 2, 2023 |
||||||||
|
|
(In thousands) |
||||||||||||||
Total Segment and Consolidated Revenues |
|
$ |
604,336 |
|
|
$ |
692,245 |
|
|
$ |
1,140,011 |
|
|
$ |
1,334,034 |
|
Total Segment EBITDA |
|
$ |
99,193 |
|
|
$ |
122,587 |
|
|
$ |
183,726 |
|
|
$ |
233,579 |
|
Total non-operating pension benefit |
|
|
230 |
|
|
|
646 |
|
|
|
461 |
|
|
|
1,134 |
|
Eliminations |
|
|
(9 |
) |
|
|
(54 |
) |
|
|
(25 |
) |
|
|
(83 |
) |
Consolidated Adjusted EBITDA (1) |
|
$ |
99,414 |
|
|
$ |
123,179 |
|
|
$ |
184,162 |
|
|
$ |
234,630 |
|
Depreciation expense |
|
|
(13,577 |
) |
|
|
(12,682 |
) |
|
|
(27,042 |
) |
|
|
(25,036 |
) |
Amortization of intangibles |
|
|
(9,940 |
) |
|
|
(11,126 |
) |
|
|
(20,749 |
) |
|
|
(20,736 |
) |
Interest expense, net |
|
|
(9,017 |
) |
|
|
(8,812 |
) |
|
|
(16,599 |
) |
|
|
(17,013 |
) |
Severance, restructuring, and acquisition integration costs |
|
|
(3,993 |
) |
|
|
(4,059 |
) |
|
|
(8,205 |
) |
|
|
(5,771 |
) |
Amortization of software development intangible assets |
|
|
(2,464 |
) |
|
|
(1,820 |
) |
|
|
(5,177 |
) |
|
|
(3,272 |
) |
Adjustments related to acquisitions and divestitures |
|
|
(298 |
) |
|
|
(249 |
) |
|
|
(596 |
) |
|
|
(547 |
) |
Income before taxes |
|
$ |
60,125 |
|
|
$ |
84,431 |
|
|
$ |
105,794 |
|
|
$ |
162,255 |
|
(1) |
Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation of Non-GAAP Measures for additional information. |
BELDEN INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
|
|
June 30,
|
|
December 31,
|
||||
|
|
(Unaudited) |
|
|
||||
|
|
(In thousands) |
||||||
ASSETS |
||||||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
564,751 |
|
|
$ |
597,044 |
|
Receivables, net |
|
|
396,850 |
|
|
|
413,806 |
|
Inventories, net |
|
|
374,991 |
|
|
|
366,987 |
|
Other current assets |
|
|
75,951 |
|
|
|
79,142 |
|
Total current assets |
|
|
1,412,543 |
|
|
|
1,456,979 |
|
Property, plant and equipment, less accumulated depreciation |
|
|
460,949 |
|
|
|
451,069 |
|
Operating lease right-of-use assets |
|
|
127,824 |
|
|
|
89,686 |
|
Goodwill |
|
|
1,031,119 |
|
|
|
907,331 |
|
Intangible assets, less accumulated amortization |
|
|
423,781 |
|
|
|
269,144 |
|
Deferred income taxes |
|
|
16,318 |
|
|
|
15,739 |
|
Other long-lived assets |
|
|
50,062 |
|
|
|
50,243 |
|
|
|
$ |
3,522,596 |
|
|
$ |
3,240,191 |
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
260,857 |
|
|
$ |
343,215 |
|
Accrued liabilities |
|
|
277,290 |
|
|
|
290,289 |
|
Payable to sellers of Precision Optical Technologies |
|
|
291,508 |
|
|
|
— |
|
Total current liabilities |
|
|
829,655 |
|
|
|
633,504 |
|
Long-term debt |
|
|
1,164,840 |
|
|
|
1,204,211 |
|
Postretirement benefits |
|
|
70,250 |
|
|
|
74,573 |
|
Deferred income taxes |
|
|
90,411 |
|
|
|
49,472 |
|
Long-term operating lease liabilities |
|
|
110,148 |
|
|
|
74,941 |
|
Other long-term liabilities |
|
|
37,415 |
|
|
|
37,188 |
|
Stockholders’ equity: |
|
|
|
|
||||
Common stock |
|
|
503 |
|
|
|
503 |
|
Additional paid-in capital |
|
|
823,205 |
|
|
|
818,663 |
|
Retained earnings |
|
|
1,068,052 |
|
|
|
985,807 |
|
Accumulated other comprehensive loss |
|
|
(25,219 |
) |
|
|
(41,279 |
) |
Treasury stock |
|
|
(646,695 |
) |
|
|
(597,437 |
) |
Total Belden stockholders’ equity |
|
|
1,219,846 |
|
|
|
1,166,257 |
|
Noncontrolling interests |
|
|
31 |
|
|
|
45 |
|
Total stockholders’ equity |
|
|
1,219,877 |
|
|
|
1,166,302 |
|
|
|
$ |
3,522,596 |
|
|
$ |
3,240,191 |
|
BELDEN INC. |
||||||||
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS |
||||||||
(Unaudited) |
||||||||
|
|
Six Months Ended |
||||||
|
|
June 30, 2024 |
|
July 2, 2023 |
||||
|
|
(In thousands) |
||||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
86,343 |
|
|
$ |
131,720 |
|
Adjustments to reconcile net income to cash flows from operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
52,968 |
|
|
|
49,044 |
|
Share-based compensation |
|
|
14,643 |
|
|
|
12,154 |
|
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes, acquired businesses and disposals: |
|
|
|
|
||||
Receivables |
|
|
30,880 |
|
|
|
(71,212 |
) |
Inventories |
|
|
204 |
|
|
|
10,347 |
|
Accounts payable |
|
|
(90,025 |
) |
|
|
(59,295 |
) |
Accrued liabilities |
|
|
(16,788 |
) |
|
|
(22,855 |
) |
Income taxes |
|
|
2,097 |
|
|
|
5,204 |
|
Other assets |
|
|
1,728 |
|
|
|
(4,197 |
) |
Other liabilities |
|
|
3,630 |
|
|
|
3,805 |
|
Net cash provided by operating activities |
|
|
85,680 |
|
|
|
54,715 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Capital expenditures |
|
|
(46,246 |
) |
|
|
(32,729 |
) |
Cash from (used for) business acquisitions, net of cash acquired |
|
|
526 |
|
|
|
(97,585 |
) |
Proceeds from disposal of tangible assets |
|
|
60 |
|
|
|
9 |
|
Proceeds from disposal of businesses, net of cash sold |
|
|
— |
|
|
|
9,300 |
|
Net cash used for investing activities |
|
|
(45,660 |
) |
|
|
(121,005 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Payments under share repurchase program |
|
|
(57,865 |
) |
|
|
(86,224 |
) |
Withholding tax payments for share-based payment awards |
|
|
(8,110 |
) |
|
|
(16,940 |
) |
Cash dividends paid |
|
|
(4,119 |
) |
|
|
(4,285 |
) |
Payments under financing lease obligations |
|
|
(455 |
) |
|
|
(115 |
) |
Proceeds from issuance of common stock |
|
|
3,152 |
|
|
|
1,679 |
|
Net cash used for financing activities |
|
|
(67,397 |
) |
|
|
(105,885 |
) |
Effect of foreign currency exchange rate changes on cash and cash equivalents |
|
|
(4,916 |
) |
|
|
(734 |
) |
Decrease in cash and cash equivalents |
|
|
(32,293 |
) |
|
|
(172,909 |
) |
Cash and cash equivalents, beginning of period |
|
|
597,044 |
|
|
|
687,676 |
|
Cash and cash equivalents, end of period |
|
$ |
564,751 |
|
|
$ |
514,767 |
|
BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)
In addition to reporting financial results in accordance with accounting principles generally accepted in
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 acquisition-related expenses, such as amortization of intangibles and 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
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, 2024 |
|
July 2, 2023 |
|
June 30, 2024 |
|
July 2, 2023 |
||||||||
|
|
(In thousands, except percentages and per share amounts) |
||||||||||||||
GAAP and Adjusted Revenues |
|
$ |
604,336 |
|
|
$ |
692,245 |
|
$ |
1,140,011 |
|
$ |
1,334,034 |
|
||
GAAP gross profit |
|
$ |
226,806 |
|
|
$ |
261,328 |
|
|
$ |
428,402 |
|
|
$ |
507,433 |
|
Amortization of software development intangible assets |
|
|
2,464 |
|
|
|
1,820 |
|
|
|
5,177 |
|
|
|
3,272 |
|
Severance, restructuring, and acquisition integration costs |
|
|
1,299 |
|
|
|
259 |
|
|
|
2,586 |
|
|
|
488 |
|
Adjustments related to acquisitions and divestitures |
|
|
— |
|
|
|
325 |
|
|
|
— |
|
|
|
325 |
|
Adjusted gross profit |
|
$ |
230,569 |
|
|
$ |
263,732 |
|
|
$ |
436,165 |
|
|
$ |
511,518 |
|
GAAP gross profit margin |
|
|
37.5 |
% |
|
|
37.8 |
% |
|
|
37.6 |
% |
|
|
38.0 |
% |
Adjusted gross profit margin |
|
|
38.2 |
% |
|
|
38.1 |
% |
|
|
38.3 |
% |
|
|
38.3 |
% |
GAAP selling, general and administrative expenses |
|
$ |
(119,497 |
) |
|
$ |
(126,635 |
) |
|
$ |
(230,265 |
) |
|
$ |
(248,209 |
) |
Severance, restructuring, and acquisition integration costs |
|
|
2,941 |
|
|
|
3,706 |
|
|
|
5,267 |
|
|
|
5,189 |
|
Adjustments related to acquisitions and divestitures |
|
|
298 |
|
|
|
(76 |
) |
|
|
596 |
|
|
|
222 |
|
Adjusted selling, general and administrative expenses |
|
$ |
(116,258 |
) |
|
$ |
(123,005 |
) |
|
$ |
(224,402 |
) |
|
$ |
(242,798 |
) |
GAAP research and development expenses |
|
$ |
(28,457 |
) |
|
$ |
(30,970 |
) |
|
$ |
(55,456 |
) |
|
$ |
(60,354 |
) |
Severance, restructuring, and acquisition integration costs |
|
|
(247 |
) |
|
|
94 |
|
|
|
352 |
|
|
|
94 |
|
Adjusted research and development expenses |
|
$ |
(28,704 |
) |
|
$ |
(30,876 |
) |
|
$ |
(55,104 |
) |
|
$ |
(60,260 |
) |
GAAP net income |
|
$ |
49,034 |
|
|
$ |
68,775 |
|
|
$ |
86,343 |
|
|
$ |
131,720 |
|
Income tax expense |
|
|
11,091 |
|
|
|
15,656 |
|
|
|
19,451 |
|
|
|
30,535 |
|
Interest expense, net |
|
|
9,017 |
|
|
|
8,812 |
|
|
|
16,599 |
|
|
|
17,013 |
|
Total non-operating adjustments |
|
|
20,108 |
|
|
|
24,468 |
|
|
|
36,050 |
|
|
|
47,548 |
|
Amortization of intangible assets |
|
|
9,940 |
|
|
|
11,126 |
|
|
|
20,749 |
|
|
|
20,736 |
|
Severance, restructuring, and acquisition integration costs |
|
|
3,993 |
|
|
|
4,059 |
|
|
|
8,205 |
|
|
|
5,771 |
|
Amortization of software development intangible assets |
|
|
2,464 |
|
|
|
1,820 |
|
|
|
5,177 |
|
|
|
3,272 |
|
Adjustments related to acquisitions and divestitures |
|
|
298 |
|
|
|
249 |
|
|
|
596 |
|
|
|
547 |
|
Total operating income adjustments |
|
|
16,695 |
|
|
|
17,254 |
|
|
|
34,727 |
|
|
|
30,326 |
|
Depreciation expense |
|
|
13,577 |
|
|
|
12,682 |
|
|
|
27,042 |
|
|
|
25,036 |
|
Adjusted EBITDA |
|
$ |
99,414 |
|
|
$ |
123,179 |
|
|
$ |
184,162 |
|
|
$ |
234,630 |
|
GAAP net income margin |
|
|
8.1 |
% |
|
|
9.9 |
% |
|
|
7.6 |
% |
|
|
9.9 |
% |
Adjusted EBITDA margin |
|
|
16.5 |
% |
|
|
17.8 |
% |
|
|
16.2 |
% |
|
|
17.6 |
% |
GAAP net income |
|
$ |
49,034 |
|
|
$ |
68,775 |
|
|
$ |
86,343 |
|
|
$ |
131,720 |
|
Less: Net income (loss) attributable to noncontrolling interest |
|
|
(10 |
) |
|
|
22 |
|
|
|
(14 |
) |
|
|
(225 |
) |
GAAP net income attributable to Belden stockholders |
|
$ |
49,044 |
|
|
$ |
68,753 |
|
|
$ |
86,357 |
|
|
$ |
131,945 |
|
GAAP net income |
|
$ |
49,034 |
|
|
$ |
68,775 |
|
|
$ |
86,343 |
|
|
$ |
131,720 |
|
Plus: Operating income adjustments from above |
|
|
16,695 |
|
|
|
17,254 |
|
|
|
34,727 |
|
|
|
30,326 |
|
Less: Net income (loss) attributable to noncontrolling interest |
|
|
(10 |
) |
|
|
22 |
|
|
|
(14 |
) |
|
|
(225 |
) |
Less: Tax effect of adjustments above |
|
|
3,541 |
|
|
|
3,638 |
|
|
|
7,610 |
|
|
|
6,520 |
|
Adjusted net income attributable to Belden stockholders |
|
$ |
62,198 |
|
|
$ |
82,369 |
|
|
$ |
113,474 |
|
|
$ |
155,751 |
|
GAAP income per diluted share attributable to Belden stockholders |
|
$ |
1.19 |
|
|
$ |
1.60 |
|
|
$ |
2.09 |
|
|
$ |
3.04 |
|
Adjusted income per diluted share attributable to Belden stockholders |
|
$ |
1.51 |
|
|
$ |
1.91 |
|
|
$ |
2.74 |
|
|
$ |
3.59 |
|
GAAP and adjusted diluted weighted average shares |
|
|
41,204 |
|
|
|
43,088 |
|
|
|
41,348 |
|
|
|
43,380 |
|
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 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
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, 2024 |
|
July 2, 2023 |
|
June 30, 2024 |
|
July 2, 2023 |
||||||||
|
|
(In thousands) |
||||||||||||||
GAAP net cash provided by operating activities |
|
$ |
82,959 |
|
|
$ |
86,587 |
|
|
$ |
85,680 |
|
|
$ |
54,715 |
|
Capital expenditures, net of proceeds from disposal of tangible assets |
|
|
(21,996 |
) |
|
|
(18,877 |
) |
|
|
(46,186 |
) |
|
|
(32,720 |
) |
Non-GAAP free cash flow |
|
$ |
60,963 |
|
|
$ |
67,710 |
|
|
$ |
39,494 |
|
|
$ |
21,995 |
|
BELDEN INC. |
||
RECONCILIATION OF NON-GAAP MEASURES |
||
2024 Guidance |
||
|
||
|
|
Three Months Ended |
|
|
September 29, 2024 |
GAAP income per diluted share attributable to Belden stockholders |
|
|
Amortization of intangible assets |
|
0.32 |
Severance, restructuring, and acquisition integration costs |
|
0.20 |
Adjustments related to acquisitions and divestitures |
|
0.03 |
Adjusted income per diluted share attributable to Belden stockholders |
|
|
Our guidance 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, adjustments related to acquisitions and divestitures, severance, restructuring, and acquisition integration costs, gains (losses) recognized on the disposal of 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 contains, and any statements made by us concerning the subject matter of this release may contain, forward-looking statements, including our outlook for the third quarter of 2024 and beyond. Forward-looking statements also include any statements regarding future financial performance (including revenues, growth, 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, including the impact of inflation, or a downturn in served markets; volatility in credit and foreign exchange markets; the competitiveness of the global markets in which we operate; the inability of the Company to develop and introduce new products; competitive responses to our products; the inability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); difficulty in forecasting revenues due to the unpredictable timing of orders related to customer projects as well as the impacts of channel inventory; foreign and domestic political, economic and other uncertainties, including changes in currency exchange rates; the impact of disruptions in the global supply chain, including the inability to timely obtain raw materials and components in sufficient quantities on commercially reasonable terms; the inability to achieve our strategic priorities in emerging markets; the impact of changes in global tariffs and trade agreements; the presence of substitute products in the marketplace; disruptions in the Company’s information systems including due to cyber-attacks; inflation and changes in the price and availability of raw materials leading to higher input and labor costs; the possibility of future epidemics or pandemics; changes in tax laws and variability in the Company’s quarterly and annual effective tax rates; the increased prevalence of cloud computing; the inability to successfully complete and integrate acquisitions, including the acquisition of Precision Optical Technologies, Inc., in furtherance of the Company’s strategic plan, as well as the inability to accurately forecast the financial impacts of acquisitions; the inability to retain key employees; disruption of, or changes in, the Company’s key distribution channels; the presence of activists proposing certain actions by the Company; perceived or actual product failures; the impact of regulatory requirements and other legal compliance issues; inability to satisfy the increasing expectations with respect to environmental, social and governance matters; 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; risks related to the use of open source software; 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 period ended December 31, 2023, filed with the SEC on February 13, 2024. 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 the infrastructure that makes the digital journey simpler, smarter and secure. We’re moving beyond connectivity, from what we make to what we make possible through a performance-driven portfolio, forward-thinking expertise and purpose-built solutions. With a legacy of quality and reliability spanning 120-plus years, we have a strong foundation to continue building the future. We are headquartered in
BDC-Financial
View source version on businesswire.com: https://www.businesswire.com/news/home/20240801411785/en/
Belden Investor Relations
Aaron Reddington, CFA
(317) 219-9359
Investor.Relations@Belden.com
Source: Belden Inc.
FAQ
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