Belden Reports Strong Results for First Quarter 2021

Rhea-AI Summary

Belden reported strong fiscal Q1 2021 results, with revenues up 15.7% to $536.4 million and net income increasing from $14.9 million to $28.7 million.

EPS grew to $0.64 from $0.33. Adjusted EBITDA rose 31.7% to $80.1 million, reflecting improved demand trends.

Full year revenue guidance raised to $2.130 - $2.180 billion from $1.990 - $2.050 billion. Q2 revenue expected at $535 - $550 million.

Positive

• First quarter 2021 revenues increased 15.7% to $536.4 million.
• Net income rose to $28.7 million, significantly up from $14.9 million in Q1 2020.
• Adjusted EBITDA grew 31.7% to $80.1 million, with a margin improvement to 14.9%.
• EPS increased 40.3% to $0.94 compared to $0.67 in Q1 2020.
• Full year revenue guidance upgraded to $2.130 - $2.180 billion.

Negative

• Operating cash flow showed a negative trend with net cash used from operations of $41.5 million.

Belden Inc. (NYSE: BDC), a leading global supplier of specialty networking solutions, today reported fiscal first quarter 2021 results for the period ended April 4, 2021.

First Quarter 2021

Revenues for the quarter totaled $536.4 million, increasing $72.9 million, or 15.7%, compared to $463.5 million in the year-ago period. Net income was $28.7 million, compared to $14.9 million in the prior-year period. Net income as a percentage of revenue was 5.4% compared to 3.2% in the prior-year period. EPS totaled $0.64 compared to $0.33 in the first quarter 2020.

Adjusted revenues for the quarter also totaled $536.4 million. Adjusted EBITDA was $80.1 million, increasing $19.3 million, or 31.7%, compared to $60.8 million in the prior-year period. Adjusted EBITDA margin was 14.9%, compared to 13.1% in the prior-year period. Adjusted EPS was $0.94, increasing 40.3% compared to $0.67 in the first quarter 2020. 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, “Demand trends continued to improve in the first quarter, and I am pleased to report total revenues and EPS that exceeded the high end of our guidance ranges. Organic growth is a key priority, and first quarter revenues increased 16% overall and 8% on an organic basis, resulting in robust margin expansion and earnings growth.”

Outlook

“End market conditions are improving, and I am encouraged by our recent order rates and solid execution. We are increasing our full year 2021 guidance to reflect better than expected performance in the first quarter and an improved outlook for the remainder of the year. We are aligning our portfolio around markets with favorable secular trends and positioning the Company to drive healthy organic growth and meaningful margin expansion. I am confident that we have the management team, strategy, and business system to deliver on our commitments and drive compelling returns for our shareholders,” said Mr. Vestjens.

The Company expects second quarter 2021 revenues to be $535 - $550 million. For the year ending December 31, 2021, the Company now expects revenues to be $2.130 - $2.180 billion, compared to prior guidance of $1.990 - $2.050 billion.

The Company expects second quarter 2021 GAAP EPS to be $0.38 - $0.48. For the year ending December 31, 2021, the Company now expects GAAP EPS to be $1.97 - $2.27, compared to prior guidance of $1.70 - $2.10.

The Company expects second quarter 2021 adjusted EPS to be $0.88 - $0.98. For the year ending December 31, 2021, the Company now expects adjusted EPS to be $3.50 - $3.80, compared to prior guidance of $2.90 - $3.30.

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 is 800-353-6461, with confirmation code 6951226. 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 income from continuing operations and income from continuing operations per diluted share attributable to Belden 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 https://investor.belden.com.

BELDEN INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
	Three Months Ended
	April 4, 2021				March 29, 2020
	(In thousands, except per share data)
Revenues	$	536,381			$	463,526
Cost of sales	(345,037		)		(293,025		)
Gross profit	191,344				170,501
Selling, general and administrative expenses	(98,449		)		(98,389		)
Research and development expenses	(31,500		)		(26,219		)
Amortization of intangibles	(9,947		)		(16,185		)
Operating income	51,448				29,708
Interest expense, net	(15,511		)		(13,324		)
Non-operating pension benefit	684				699
Income from continuing operations before taxes	36,621				17,083
Income tax expense	(7,880		)		(2,192		)
Income from continuing operations	28,741				14,891
Loss from discontinued operations, net of tax	—				(26,110		)
Net income (loss)	28,741				(11,219		)
Less: Net income (loss) attributable to noncontrolling interest	75				(30		)
Net income (loss) attributable to Belden stockholders	$	28,666			$	(11,189	)
Weighted average number of common shares and equivalents:
Basic	44,679				45,390
Diluted	45,045				45,538
Basic income (loss) per share attributable to Belden stockholders:
Continuing operations	$	0.64			$	0.33
Discontinued operations	—				(0.58		)
Net income (loss)	$	0.64			$	(0.25	)
Diluted income (loss) per share attributable to Belden stockholders:
Continuing operations	$	0.64			$	0.33
Discontinued operations	—				(0.58		)
Net income (loss)	$	0.64			$	(0.25	)
Common stock dividends declared per share	$	0.05			$	0.05

BELDEN INC. OPERATING SEGMENT INFORMATION (Unaudited)
		Enterprise Solutions					Industrial Solutions				Total Segments
	(In thousands, except percentages)
For the three months ended April 4, 2021
Segment Revenues		$	226,355				$	310,026			$	536,381
Segment EBITDA		28,106					51,363				79,469
Segment EBITDA margin		12.4		%			16.6		%		14.8		%
Depreciation expense		5,350					6,210				11,560
Amortization of intangibles		4,336					5,611				9,947
Amortization of software development intangible assets		32					657				689
Severance, restructuring, and acquisition integration costs		1,915					3,256				5,171
Adjustments related to acquisitions and divestitures		(6,286		)			6,907				621
For the three months ended March 29, 2020
Segment Revenues		$	212,213				$	251,313			$	463,526
Segment EBITDA		24,712					35,527				60,239
Segment EBITDA margin		11.6		%			14.1		%		13.0		%
Depreciation expense		5,081					5,201				10,282
Amortization of intangibles		5,504					10,681				16,185
Amortization of software development intangible assets		55					275				330
Severance, restructuring, and acquisition integration costs		2,550					1,069				3,619
Adjustments related to acquisitions and divestitures		20					—				20

BELDEN INC. OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS (Unaudited)
	Three Months Ended
	April 4, 2021				March 29, 2020
	(In thousands)
Total Segment Revenues	$	536,381			$	463,526
Deferred revenue adjustments	—				—
Consolidated Revenues	$	536,381			$	463,526
Total Segment EBITDA	$	79,469			$	60,239
Eliminations	(33		)		(95		)
Total non-operating pension benefit	684				699
Consolidated Adjusted EBITDA (1)	80,120				60,843
Interest expense, net	(15,511		)		(13,324		)
Depreciation expense	(11,560		)		(10,282		)
Amortization of intangibles	(9,947		)		(16,185		)
Severance, restructuring, and acquisition integration costs	(5,171		)		(3,619		)
Amortization of software development intangible assets	(689		)		(330		)
Adjustments related to acquisitions and divestitures	(621		)		(20		)
Income from continuing operations before taxes	$	36,621			$	17,083

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

BELDEN INC. CONDENSED CONSOLIDATED BALANCE SHEETS
		April 4, 2021					December 31, 2020
		(Unaudited)
		(In thousands)
ASSETS
Current assets:
Cash and cash equivalents		$	370,552				$	501,994
Receivables, net		342,416					296,817
Inventories, net		275,405					247,298
Other current assets		59,741					52,289
Current assets held for sale		16,279					—
Total current assets		1,064,393					1,098,398
Property, plant and equipment, less accumulated depreciation		356,780					368,620
Operating lease right-of-use assets		54,660					54,787
Goodwill		1,284,913					1,251,938
Intangible assets, less accumulated amortization		309,618					287,071
Deferred income taxes		29,114					29,536
Other long-lived assets		48,190					49,384
		$	3,147,668				$	3,139,734
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	250,426				$	244,120
Accrued liabilities		252,025					276,641
Current liabilities held for sale		5,555					—
Total current liabilities		508,006					520,761
Long-term debt		1,509,708					1,573,726
Postretirement benefits		154,171					160,400
Deferred income taxes		43,101					38,400
Long-term operating lease liabilities		45,642					46,398
Other long-term liabilities		41,580					42,998
Stockholders’ equity:
Common stock		503					503
Additional paid-in capital		827,271					823,605
Retained earnings		477,279					450,876
Accumulated other comprehensive loss		(138,126		)			(191,851		)
Treasury stock		(327,835		)			(332,552		)
Total Belden stockholders’ equity		839,092					750,581
Noncontrolling interests		6,368					6,470
Total stockholders’ equity		845,460					757,051
		$	3,147,668				$	3,139,734

BELDEN INC. CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Unaudited)
		Three Months Ended
		April 4, 2021					March 29, 2020
		(In thousands)
Cash flows from operating activities:
Net income (loss)		$	28,741				$	(11,219	)
Adjustments to reconcile net income (loss) to net cash used for operating activities:
Depreciation and amortization		22,196					26,798
Share-based compensation		7,285					3,708
Asset impairment		6,995					23,197
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes, acquired businesses and disposals:
Receivables		(50,208		)			43,627
Inventories		(19,313		)			(29,054		)
Accounts payable		3,269					(50,827		)
Accrued liabilities		(30,765		)			(38,425		)
Income taxes		1,416					(16,500		)
Other assets		(4,226		)			6,144
Other liabilities		(6,885		)			(9,501		)
Net cash used for operating activities		(41,495		)			(52,052		)
Cash flows from investing activities:
Cash from (used for) business acquisitions, net of cash acquired		(72,232		)			590
Capital expenditures		(11,223		)			(20,935		)
Proceeds from disposal of tangible assets		12					2,090
Proceeds from disposal of business		1,106					—
Net cash used for investing activities		(82,337		)			(18,255		)
Cash flows from financing activities:
Cash dividends paid		(2,246		)			(2,296		)
Payments under borrowing arrangements		(1,841		)			—
Withholding tax payments for share-based payment awards		(905		)			(1,003		)
Other		(43		)			(58		)
Payment of earnout consideration		—					(29,300		)
Payments under share repurchase program		—					(21,239		)
Net cash used for financing activities		(5,035		)			(53,896		)
Effect of foreign currency exchange rate changes on cash and cash equivalents		(2,277		)			(7,947		)
Decrease in cash and cash equivalents		(131,144		)			(132,150		)
Cash and cash equivalents, beginning of period		501,994					425,885
Cash and cash equivalents, end of period		$	370,850				$	293,735

The Condensed Consolidated Cash Flow Statement for the period ended March 29, 2020 includes the results of discontinued operations, which were sold on 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
		April 4, 2021					March 29, 2020
		(In thousands, except percentages and per share amounts)
GAAP and adjusted revenues		$	536,381				$	463,526
GAAP gross profit		$	191,344				$	170,501
Adjustments related to acquisitions and divestitures		816					20
Amortization of software development intangible assets		689					330
Severance, restructuring, and acquisition integration costs		260					45
Adjusted gross profit		$	193,109				$	170,896
GAAP gross profit margin		35.7		%			36.8		%
Adjusted gross profit margin		36.0		%			36.9		%
GAAP selling, general and administrative expenses		$	(98,449	)			$	(98,389	)
Severance, restructuring, and acquisition integration costs		4,911					3,574
Adjustments related to acquisitions and divestitures		(195		)			—
Adjusted selling, general and administrative expenses		$	(93,733	)			$	(94,815	)
GAAP and adjusted research and development expenses		$	(31,500	)			$	(26,219	)
GAAP net income (loss) attributable to Belden stockholders		$	28,666				$	(11,189	)
Interest expense, net		15,511					13,324
Income tax expense		7,880					2,192
Loss from discontinued operations, net of tax		—					26,110
Noncontrolling interest		75					(30		)
Total non-operating adjustments		23,466					41,596
Amortization of intangible assets		9,947					16,185
Severance, restructuring, and acquisition integration costs		5,171					3,619
Amortization of software development intangible assets		689					330
Adjustments related to acquisitions and divestitures		621					20
Total operating income adjustments		16,428					20,154
Depreciation expense		11,560					10,282
Adjusted EBITDA		$	80,120				$	60,843
GAAP net income (loss) margin		5.3		%			(2.4		)%
Adjusted EBITDA margin		14.9		%			13.1		%
GAAP net income (loss) attributable to Belden stockholders		$	28,666				$	(11,189	)
Loss from discontinued operations, net of tax		—					26,110
GAAP net income from continuing operations attributable to Belden stockholders		$	28,666				$	14,921
GAAP net income (loss) attributable to Belden stockholders		$	28,666				$	(11,189	)
Operating income adjustments from above		16,428					20,154
Loss from discontinued operations, net of tax		—					{ "@context": "https://schema.org", "@type": "FAQPage", "name": "Belden Reports Strong Results for First Quarter 2021 FAQs", "mainEntity": [ { "@type": "Question", "name": "What were Belden's Q1 2021 earnings results?", "acceptedAnswer": { "@type": "Answer", "text": "Belden reported Q1 2021 revenues of $536.4 million and net income of $28.7 million." } }, { "@type": "Question", "name": "What is Belden's EPS for the first quarter of 2021?", "acceptedAnswer": { "@type": "Answer", "text": "Belden's EPS for Q1 2021 was $0.64, up from $0.33 in the prior year." } }, { "@type": "Question", "name": "How has Belden's revenue outlook changed for 2021?", "acceptedAnswer": { "@type": "Answer", "text": "Belden raised its full year revenue guidance to $2.130 - $2.180 billion from $1.990 - $2.050 billion." } }, { "@type": "Question", "name": "What are Belden's expectations for Q2 2021 revenues?", "acceptedAnswer": { "@type": "Answer", "text": "Belden expects Q2 2021 revenues to be between $535 million and $550 million." } }, { "@type": "Question", "name": "How did Belden's adjusted EBITDA perform in Q1 2021?", "acceptedAnswer": { "@type": "Answer", "text": "Belden's adjusted EBITDA increased 31.7% to $80.1 million in Q1 2021." } } ] } FAQ What were Belden's Q1 2021 earnings results? Belden reported Q1 2021 revenues of $536.4 million and net income of $28.7 million. What is Belden's EPS for the first quarter of 2021? Belden's EPS for Q1 2021 was $0.64, up from $0.33 in the prior year. How has Belden's revenue outlook changed for 2021? Belden raised its full year revenue guidance to $2.130 - $2.180 billion from $1.990 - $2.050 billion. What are Belden's expectations for Q2 2021 revenues? Belden expects Q2 2021 revenues to be between $535 million and $550 million. How did Belden's adjusted EBITDA perform in Q1 2021? Belden's adjusted EBITDA increased 31.7% to $80.1 million in Q1 2021. Belden Inc. NYSE:BDC BDC Rankings #1333 Ranked by Market Cap #2109 Ranked by Dividends BDC Latest News Dec 12, 2024 Belden, a Leader in Innovation for Over 120 Years, Opens 2025 Joseph C. Belden Innovation Award Program Dec 5, 2024 Connect to What’s Possible: Belden Debuts New Corporate Brand Platform Dec 2, 2024 Connect to What’s Possible: Belden Debuts New Corporate Brand Platform Nov 21, 2024 Belden Declares Quarterly Dividend Nov 18, 2024 Belden Launches Products that Support Maximum Data Security and Reliable Connectivity BDC Stock Data Market Cap 4.63B Float 39.78M Insiders Ownership 1.26% Institutions Ownership 105.29% Short Percent 2.28% Industry Communication Equipment Sector Drawing & Insulating of Nonferrous Wire Website Link Country United States of America City ST. LOUIS Explore About Rhea-AI Sitemap Legal Terms of Use Cookie Notice Privacy Policy Links RSS feed Patreon Discord Server Facebook Reddit Google News © 2020-2024 StockTitan.net