Belden Reports Strong Results for Fourth Quarter and Full Year 2021 and Announces a Definitive Agreement to Divest Tripwire

Rhea-AI Summary

Belden Inc. (NYSE: BDC) reported Q4 2021 revenues of $638.9 million, up 28% YoY. However, the company faced a net loss of $51.6 million, primarily due to a $131.2 million impairment related to its Tripwire business. Adjusted EBITDA increased 37% to $101.3 million, with an adjusted EPS of $1.32, a 47% increase from the previous year. For full-year 2021, revenues reached $2.408 billion, growing 29% YoY, and adjusted EPS stood at $4.78. The company plans to divest Tripwire for $350 million, enhancing financial flexibility and enabling strategic growth initiatives moving forward.

Positive

• Q4 2021 revenues increased by 28% YoY to $638.9 million.
• Full-year 2021 revenues rose 29% YoY to $2.408 billion.
• Adjusted EBITDA for Q4 2021 was $101.3 million, a 37% increase YoY.
• Adjusted EPS saw a robust growth of 47% YoY, reaching $1.32.
• Successful divestiture of Tripwire for $350 million enhances financial flexibility.

Negative

• Net loss of $51.6 million in Q4 2021, compared to a net income of $15.8 million in the prior year.
• A non-cash impairment charge of $131.2 million related to the Tripwire business negatively impacted net income.

ST. LOUIS--(BUSINESS WIRE)-- Belden Inc. (NYSE: BDC), a leading global supplier of specialty networking solutions, today reported fiscal fourth quarter and full year 2021 results for the period ended December 31, 2021. The Company also announced a definitive agreement to divest its Tripwire cybersecurity business (“Tripwire”).

Fourth Quarter 2021

Revenues for the quarter totaled $638.9 million, increasing $140.4 million, or 28%, compared to $498.5 million in the year-ago period. Net loss was ($51.6) million, compared to net income of $15.8 million in the year-ago period. Net loss included a $131.2 million non-cash impairment charge related to Tripwire. Net loss as a percentage of revenue was (8.1%) compared to 3.2% in the year-ago period. EPS totaled ($1.15), compared to $0.35 in the fourth quarter 2020.

Adjusted revenues for the quarter totaled $637.6 million. Adjusted EBITDA was $101.3 million, increasing $27.3 million, or 37%, compared to $74.0 million in the year-ago period. Adjusted EBITDA margin was 15.9%, compared to 14.8% in the year-ago period. Adjusted EPS was $1.32, increasing 47% compared to $0.90 in the fourth 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, “We delivered another outstanding quarter with strong growth in total revenues, EPS and cash flow. Our team continues to execute very well in a challenging operating environment, driving 21% organic growth and solid margin expansion. We are prioritizing organic growth while cultivating acquisitions that add innovative new technologies. Subsequent to quarter end, we completed the acquisition of Macmon Secure GmbH for $43 million. Macmon adds important new capabilities to our industry-leading industrial networking solutions.”

Full Year 2021

Revenues for the year totaled $2.408 billion, increasing $545.4 million, or 29%, compared to $1.863 billion in the full year 2020. Net income was $62.5 million, compared to $54.4 million in 2020. Net income as a percentage of revenue was 2.6% compared to 2.9% in 2020. EPS totaled $1.37, compared to $1.21 in 2020.

Adjusted revenues for the year also totaled $2.408 billion. Adjusted EBITDA was $375.5 million, increasing $126.3 million, or 51%, compared to $249.2 million in 2020. Adjusted EBITDA margin was 15.6%, compared to 13.4% in 2020. Adjusted EPS was $4.78, increasing 74% compared to $2.75 in 2020.

Mr. Vestjens remarked, “2021 was an exceptional year for Belden that was highlighted by meaningful recovery in our end markets, significant progress on our organic growth strategies, and successful management of inflationary pressures and supply chain challenges. Full year revenues increased 20% on an organic basis, resulting in robust margin expansion and EPS growth. During the year we generated solid cash flow growth and further strengthened our balance sheet, reducing net leverage from 4.0x to 2.1x.”

Tripwire Divestiture

The Company today also announced that it has signed a definitive agreement to divest Tripwire for $350 million in cash. The transaction is expected to close in the first quarter 2022. Under the terms of the agreement, Belden will act as an exclusive reseller of Tripwire’s industrial cybersecurity solutions.

Tripwire’s full year 2021 revenues were $107 million with an EPS contribution of $0.03 excluding asset impairments and amortization of intangibles. Belden had year-end 2021 net leverage of 2.1x, or 1.2x pro forma for this transaction, providing significant financial flexibility.

Roel Vestjens, President and CEO of Belden Inc., said, “This is an important transaction that will enable Belden and Tripwire to more effectively execute their strategic growth plans. We are pleased to monetize the business while maintaining a preferred commercial relationship with Tripwire that will allow us to continue providing integrated cybersecurity solutions to our customers in industrial end markets. I would like to thank the entire Tripwire team for their significant contributions to Belden and wish them every success going forward.”

Outlook

“We entered 2022 with significant momentum in our business. Our strategic growth initiatives are gaining traction, and I am encouraged by our recent order rates and execution. Our transformed portfolio is aligned with the favorable secular trends in industrial automation, broadband & 5G, and smart buildings. I am optimistic about our ability to drive solid and sustainable organic growth, and compelling returns for our shareholders,” said Mr. Vestjens.

For the full year 2021, adjusted revenues and EPS excluding Tripwire were $2.301 billion and $4.75, respectively. The outlook for 2022 represents results from continuing operations, which is expected to exclude Tripwire. The Company expects first quarter 2022 revenues to be $558 - $573 million, EPS to be $0.76 - $0.86 and adjusted EPS to be $1.03 - $1.13. For the full year ending December 31, 2022, the Company expects revenues to be $2.390 - $2.440 billion, EPS to be $4.10 - $4.45 and adjusted EPS to be $5.00 - $5.35.

Earnings Conference Call

Management will host a conference call today at 8:30 am ET to discuss results of the quarter and the Tripwire divestiture. 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 888-220-8451, with confirmation code 3170682. 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								Twelve Months Ended
		December 31, 2021				December 31, 2020				December 31, 2021				December 31, 2020
		(In thousands, except per share data)
Revenues		$	638,910			$	498,540			$	2,408,100			$	1,862,716
Cost of sales			(410,703	)			(323,284	)			(1,553,738	)			(1,199,427	)
Gross profit			228,207				175,256				854,362				663,289
Selling, general and administrative expenses			(121,652	)			(91,059	)			(426,335	)			(366,188	)
Research and development expenses			(29,787	)			(25,663	)			(124,660	)			(107,296	)
Amortization of intangibles			(9,601	)			(16,089	)			(38,346	)			(64,395	)
Goodwill and other asset impairment			(131,178	)			—				(140,461	)			—
Operating income (loss)			(64,011	)			42,445				124,560				125,410
Interest expense, net			(16,055	)			(15,700	)			(62,695	)			(58,888	)
Non-operating pension benefit (cost)			1,355				(2,474	)			4,476				(395	)
Gain on sale of note receivable			27,036				—				27,036				—
Loss on debt extinguishment			—				—				(5,715	)			—
Income (loss) from continuing operations before taxes			(51,675	)			24,271				87,662				66,127
Income tax benefit (expense)			102				(8,501	)			(25,205	)			(11,724	)
Income (loss) from continuing operations			(51,573	)			15,770				62,457				54,403
Gain (loss) from discontinued operations, net of tax			—				3,882				—				(99,513	)
Gain (loss) on disposal of discontinued operations, net of tax			1,860				(12,691	)			1,860				(9,948	)
Net income (loss)			(49,713	)			6,961				64,317				(55,058	)
Less: Net income attributable to noncontrolling interest			56				25				392				104
Net income (loss) attributable to Belden stockholders		$	(49,769	)		$	6,936			$	63,925			$	(55,162	)
Weighted average number of common shares and equivalents:
Basic			44,927				44,620				44,802				44,778
Diluted			45,729				44,848				45,361				44,937
Basic income (loss) per share attributable to Belden stockholders:
Continuing operations		$	(1.15	)		$	0.35			$	1.39			$	1.21
Discontinued operations			—				0.09				—				(2.22	)
Disposal of discontinued operations			0.04				(0.28	)			0.04				(0.22	)
Net income (loss)		$	(1.11	)		$	0.16			$	1.43			$	(1.23	)
Diluted income (loss) per share attributable to Belden stockholders:
Continuing operations		$	(1.15	)		$	0.35			$	1.37			$	1.21
Discontinued operations			—				0.09				—				(2.22	)
Disposal of discontinued operations			0.04				(0.28	)			0.04				(0.22	)
Net income (loss)		$	(1.11	)		$	0.15			$	1.41			$	(1.23	)
Common stock dividends declared per share		$	0.05			$	0.05			$	0.20			$	0.20

BELDEN INC. OPERATING SEGMENT INFORMATION (Unaudited)
		Enterprise Solutions				Industrial Solutions				Total Segments
	(In thousands, except percentages)
For the three months ended December 31, 2021
Segment Revenues		$	294,312			$	343,246			$	637,558
Segment EBITDA			39,705				60,270				99,975
Segment EBITDA margin			13.5	%			17.6	%			15.7	%
Depreciation expense			5,609				6,134				11,743
Amortization of intangibles			4,393				5,208				9,601
Amortization of software development intangible assets			22				792				814
Severance, restructuring, and acquisition integration costs			6,044				5,309				11,353
Adjustments related to acquisitions and divestitures			—				(750	)			(750	)
Goodwill and other asset impairment			—				131,178				131,178
For the three months ended December 31, 2020
Segment Revenues		$	227,731			$	270,809			$	498,540
Segment EBITDA			26,140				47,259				73,399
Segment EBITDA margin			11.5	%			17.5	%			14.7	%
Depreciation expense			5,447				5,954				11,401
Amortization of intangibles			5,396				10,693				16,089
Amortization of software development intangible assets			61				515				576
Severance, restructuring, and acquisition integration costs			1,410				1,400				2,810
For the twelve months ended December 31, 2021
Segment Revenues		$	1,074,426			$	1,333,674			$	2,408,100
Segment EBITDA			143,236				227,946				371,182
Segment EBITDA margin			13.3	%			17.1	%			15.4	%
Depreciation expense			21,594				24,346				45,940
Amortization of intangibles			17,595				20,751				38,346
Amortization of software development intangible assets			94				2,806				2,900
Severance, restructuring, and acquisition integration costs			13,800				10,092				23,892
Adjustments related to acquisitions and divestitures			(6,828	)			1,792				(5,036	)
Goodwill and other asset impairment			—				140,461				140,461
For the twelve months ended December 31, 2020
Segment Revenues		$	872,415			$	990,301			$	1,862,716
Segment EBITDA			99,333				147,626				246,959
Segment EBITDA margin			11.4	%			14.9	%			13.3	%
Depreciation expense			20,655				21,815				42,470
Amortization of intangibles			21,662				42,733				64,395
Amortization of software development intangible assets			245				1,576				1,821
Severance, restructuring, and acquisition integrations costs			7,720				4,538				12,258
Adjustments related to acquisitions and divestitures			125				—				125

BELDEN INC. OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS (Unaudited)
		Three Months Ended								Twelve Months Ended
		December 31, 2021				December 31, 2020				December 31, 2021				December 31, 2020
		(In thousands)
Total Segment Revenues		$	637,558			$	498,540			$	2,408,100			$	1,862,716
Adjustments related to acquisitions			1,352				—				—				—
Consolidated Revenues		$	638,910			$	498,540			$	2,408,100			$	1,862,716
Total Segment EBITDA		$	99,975			$	73,399			$	371,182			$	246,959
Total non-operating pension benefit (cost)			1,355				(2,474	)			4,476				(395	)
Non-operating pension settlement loss			—				3,153				—				3,153
Eliminations			(47	)			(78	)			(119	)			(480	)
Consolidated Adjusted EBITDA (1)			101,283				74,000				375,539				249,237
Goodwill and other asset impairment			(131,178	)			—				(140,461	)			—
Interest expense, net			(16,055	)			(15,700	)			(62,695	)			(58,888	)
Depreciation expense			(11,743	)			(11,401	)			(45,940	)			(42,470	)
Severance, restructuring, and acquisition integration costs			(11,353	)			(2,810	)			(23,892	)			(12,258	)
Amortization of intangibles			(9,601	)			(16,089	)			(38,346	)			(64,395	)
Amortization of software development intangible assets			(814	)			(576	)			(2,900	)			(1,821	)
Loss on debt extinguishment			—				—				(5,715	)			—
Non-operating pension settlement loss			—				(3,153	)			—				(3,153	)
Adjustments related to acquisitions and divestitures			750				—				5,036				(125	)
Gain on sale of note receivable			27,036				—				27,036				—
Income from continuing operations before taxes		$	(51,675	)		$	24,271			$	87,662			$	66,127

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

BELDEN INC. CONDENSED CONSOLIDATED BALANCE SHEETS
		December 31, 2021				December 31, 2020
		(Unaudited)
		(In thousands)
ASSETS
Current assets:
Cash and cash equivalents		$	643,757			$	501,994
Receivables, net			412,217				296,817
Inventories, net			345,354				247,298
Other current assets			65,700				52,289
Total current assets			1,467,028				1,098,398
Property, plant and equipment, less accumulated depreciation			349,814				368,620
Operating lease right-of-use assets			79,464				54,787
Goodwill			1,152,472				1,251,938
Intangible assets, less accumulated amortization			301,696				287,071
Deferred income taxes			32,321				29,536
Other long-lived assets			34,882				49,384
		$	3,417,677			$	3,139,734
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	384,223			$	244,120
Accrued liabilities			334,316				276,641
Total current liabilities			718,539				520,761
Long-term debt			1,459,991				1,573,726
Postretirement benefits			120,997				160,400
Deferred income taxes			59,990				38,400
Long-term operating lease liabilities			67,225				46,398
Other long-term liabilities			34,853				42,998
Stockholders’ equity:
Common stock			503				503
Additional paid-in capital			833,627				823,605
Retained earnings			505,717				450,876
Accumulated other comprehensive loss			(70,566	)			(191,851	)
Treasury stock			(313,994	)			(332,552	)
Total Belden stockholders’ equity			955,287				750,581
Noncontrolling interests			795				6,470
Total stockholders’ equity			956,082				757,051
		$	3,417,677			$	3,139,734

BELDEN INC. CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Unaudited)
		Twelve Months Ended
		December 31, 2021				December 31, 2020
		(In thousands)
Cash flows from operating activities:
Net income (loss)		$	64,317			$	(55,058	)
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation and amortization			87,988				108,687
Goodwill and other asset impairment			140,461				113,007
Share-based compensation			24,871				20,030
Loss on debt extinguishment			5,715				—
Deferred income tax expense (benefit)			3,575				(19,410	)
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes, acquired businesses and disposals:
Receivables			(119,012	)			70,707
Inventories			(92,984	)			(8,507	)
Accounts payable			135,666				(43,567	)
Accrued liabilities			61,241				7,374
Income taxes			(6,448	)			(22,823	)
Other assets			(12,693	)			2,018
Other liabilities			(20,642	)			906
Net cash provided by operating activities			272,055				173,364
Cash flows from investing activities:
Capital expenditures			(90,982	)			(90,215	)
Cash from (used for) business acquisitions, net of cash acquired			(73,340	)			590
Purchase of intangible assets			(3,650	)			—
Proceeds from disposal of tangible assets			30,234				3,161
Proceeds from disposal of businesses, net of cash sold			45,735				54,821
Net cash used for investing activities			(92,003	)			(31,643	)
Cash flows from financing activities:
Payments under borrowing arrangements			(360,304	)			(190,000	)
Cash dividends paid			(9,056	)			(9,029	)
Debt issuance costs paid			(8,173	)			—
Withholding tax payments for share-based payment awards			(5,570	)			(1,388	)
Payments under financing lease obligations			(3,151	)			(194	)
Payments to noncontrolling interest holders			(2,682	)			—
Payments under share repurchase program			—				(35,000	)
Payment of earnout consideration			—				(29,300	)
Borrowings under credit arrangements			356,010				190,000
Net cash used for financing activities			(32,926	)			(74,911	)
Effect of foreign currency exchange rate changes on cash and cash equivalents			(5,363	)			9,299
Increase in cash and cash equivalents			141,763				76,109
Cash and cash equivalents, beginning of period			501,994				425,885
Cash and cash equivalents, end of period		$	643,757			$	501,994

For the year ended December 31, 2020, the Condensed Consolidated Cash Flow Statement includes the results of discontinued operations 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								Twelve Months Ended
		December 31, 2021				December 31, 2020				December 31, 2021				December 31, 2020
		(In thousands, except percentages and per share amounts)
GAAP revenues		$	638,910			$	498,540			$	2,408,100			$	1,862,716
Adjustments related to acquisitions			(1,352	)			—				—				—
Adjusted revenues		$	637,558			$	498,540			$	2,408,100			$	1,862,716
GAAP gross profit		$	228,207			$	175,256			$	854,362			$	663,289
Severance, restructuring, and acquisition integration costs			7,002				482				11,308				704
Amortization of software development intangible assets			814				576				2,900				1,821
Adjustments related to acquisitions and divestitures			(1,352	)			—				2,349				125
Adjusted gross profit		$	234,671			$	176,314			$	870,919			$	665,939
GAAP gross profit margin			35.7	%			35.2	%			35.5	%			35.6	%
Adjusted gross profit margin			36.8	%			35.4	%			36.2	%			35.8	%
GAAP selling, general and administrative expenses		$	(121,652	)		$	(91,059	)		$	(426,335	)		$	(366,188	)
Severance, restructuring, and acquisition integration costs			4,351				2,328				12,584				11,554
Adjustments related to acquisitions and divestitures			602				—				(7,385	)			—
Adjusted selling, general and administrative expenses		$	(116,699	)		$	(88,731	)		$	(421,136	)		$	(354,634	)
GAAP and adjusted research and development expenses		$	(29,787	)		$	(25,663	)		$	(124,660	)		$	(107,296	)
GAAP income (loss) from continuing operations		$	(51,573	)		$	15,770			$	62,457			$	54,403
Interest expense, net			16,055				15,700				62,695				58,888
Income tax expense (benefit)			(102	)			8,501				25,205				11,724
Gain on sale of note receivable			(27,036	)			—				(27,036	)			—
Loss on debt extinguishment			—				—				5,715				—
Non-operating pension settlement loss			—				3,153				—				3,153
Total non-operating adjustments			(11,083	)			27,354				66,579				73,765
Goodwill and other asset impairment			131,178				—				140,461				—
Severance, restructuring, and acquisition integration costs			11,353				2,810				23,892				12,258
Amortization of intangible assets			9,601				16,089				38,346				64,395
Amortization of software development intangible assets			814				576				2,900				1,821
Adjustments related to acquisitions and divestitures			(750	)			—				(5,036	)			125
Total operating income adjustments			152,196				19,475				200,563				78,599
Depreciation expense			11,743				11,401				45,940				42,470
Adjusted EBITDA		$	101,283			$	74,000			$	375,539			$	249,237
GAAP income (loss) from continuing operations margin			(8.1	) %			3.2	%			2.6	%			2.9	%
Adjusted EBITDA margin			15.9	%			14.8	%			15.6	%			13.4	%
GAAP income (loss) from continuing operations		$	(51,573	)		$	15,770			$	62,457			$	54,403
Less: Net income attributable to noncontrolling interest			56				25				392				104
GAAP net income (loss) from continuing operations attributable to Belden stockholders		$	(51,629	)		$	15,745			$	62,065			$	54,299
GAAP income (loss) from continuing operations		$	(51,573	)		$	15,770			$	62,457			$	54,403
Plus: Operating income adjustments from above			152,196				19,475				200,563				78,599
Plus: Loss on debt extinguishment			—				—				5,715				—
Plus: Non-operating pension settlement loss			—				3,153				—				3,153
Less: Gain on sale of note receivable			27,036				—				27,036				—
Less: Net income attributable to noncontrolling interest			56				25				392				104
Less: Tax effect of adjustments above			13,363				(2,172	)			24,365				12,515
Adjusted net income from continuing operations attributable to Belden stockholders		$	60,168			$	40,545			$	216,942			$	123,536
GAAP income (loss) from continuing operations per diluted share attributable to Belden stockholders		$	(1.15	)		$	0.35			$	1.37			$	1.21
Adjusted income from continuing operations per diluted share attributable to Belden stockholders		$	1.32			$	0.90			$	4.78			$	2.75
GAAP diluted weighted average shares			44,927				44,848				45,361				44,937
Adjustment for anti-dilutive shares that are dilutive under adjusted measures			802				—				—				—
Adjusted diluted weighted average shares			45,729				44,848				45,361				44,937

		Three Months Ended																Twelve Months Ended
		April 4, 2021				July 4, 2021				October 3, 2021				December 31, 2021				December 31, 2021				December 31, 2020
		(In thousands, except percentages and per share amounts)
GAAP revenues		$	536,381			$	601,974			$	630,835			$	638,910			$	2,408,100			$	1,862,716
Adjustments related to acquisitions			—				849				503				(1,352	)			—				—
Less: Tripwire revenues			27,698			$	26,117			$	26,074			$	26,951			$	106,840			$	110,524
Adjusted revenues excluding Tripwire		$	508,683			$	576,706			$	605,264			$	610,607			$	2,301,260			$	1,752,192
GAAP gross profit		$	191,344			$	211,535			$	223,276			$	228,207			$	854,362			$	663,289
Severance, restructuring, and acquisition integration costs			260				1,103				2,943				7,002				11,308				704
Amortization of software development intangible assets			689				607				790				814				2,900				1,821
Adjustments related to acquisitions and divestitures			816				1,995				890				(1,352	)			2,349				125
Less: Tripwire gross profit			22,441				20,466				20,255				20,678				83,840				88,630
Adjusted gross profit excluding Tripwire		$	170,668			$	194,774			$	207,644			$	213,993			$	787,079			$	577,309
GAAP gross profit margin			35.7	%			35.1	%			35.4	%			35.7	%			35.5	%			35.6	%
Adjusted gross profit margin excluding Tripwire			33.6	%			33.8	%			34.3	%			35.0	%			34.2	%			32.9	%
GAAP selling, general and administrative expenses		$	(91,453	)		$	(105,554	)		$	(107,676	)		$	(121,652	)		$	(426,335	)		$	(366,188	)
Severance, restructuring, and acquisition integration costs			4,911				1,937				1,385				4,351				12,584				11,554
Adjustments related to acquisitions and divestitures			(7,191	)			(83	)			(713	)			602				(7,385	)			—
Less: Tripwire selling, general and administrative expenses			(10,819	)			(11,984	)			(12,339	)			(13,142	)			(48,284	)			(42,629	)
Adjusted selling, general and administrative expenses excluding Tripwire		$	(82,914	)		$	(91,716	)		$	(94,665	)		$	(103,557	)		$	(372,852	)		$	(312,005	)
GAAP research and development expenses		$	(31,500	)		$	(30,922	)		$	(32,451	)		$	(29,787	)		$	(124,660	)		$	(107,296	)
Less: Tripwire research and development expenses			(8,888	)			(8,659	)			(9,216	)			(7,670	)			(34,433	)			(34,276	)
Adjusted research and development expenses excluding Tripwire		$	(22,612	)		$	(22,263	)		$	(23,235	)		$	(22,117	)		$	(90,227	)		$	(73,020	)
GAAP income (loss) from continuing operations		$	28,741			$	43,972			$	41,317			$	(51,573	)		$	62,457			$	54,403
Interest expense, net			15,511				14,878				16,251				16,055				62,695				58,888
Income tax expense (benefit)			7,880				8,552				8,875				(102	)			25,205				11,724
Gain on sale of note receivable			—				—				—				(27,036	)			(27,036	)			—
Loss on debt extinguishment			—				—				5,715				—				5,715				—
Non-operating pension settlement loss			—				—				—				—				—				3,153
Total non-operating adjustments			23,391				23,430				30,841				(11,083	)			66,579				73,765
Goodwill and other asset impairment			6,996				—				2,287				131,178				140,461				—
Severance, restructuring, and acquisition integration costs			5,171				3,040				4,328				11,353				23,892				12,258
Amortization of intangible assets			9,947				9,102				9,696				9,601				38,346				64,395
Amortization of software development intangible assets			689				607				790				814				2,900				1,821
Adjustments related to acquisitions and divestitures			(6,375	)			1,912				177				(750	)			(5,036	)			125
Total operating income adjustments			16,428				14,661				17,278				152,196				200,563				78,599
Depreciation expense			11,560				11,367				11,270				11,743				45,940				42,470
Adjusted EBITDA			80,120				93,430				100,706				101,283				375,539				249,237
Less: Tripwire adjusted EBITDA			3,567				532				(616	)			507				3,990				14,875
Adjusted EBITDA excluding Tripwire		$	76,553			$	92,898			$	101,322			$	100,776			$	371,549			$	234,362
GAAP income (loss) from continuing operations margin			5.4	%			7.3	%			6.5	%			(8.1	) %			2.6	%			2.9	%
Adjusted EBITDA margin excluding Tripwire			15.0	%			16.1	%			16.7	%			16.5	%			16.1	%			13.4	%
GAAP income (loss) from continuing operations		$	28,741			$	43,972			$	41,317			$	(51,573	)		$	62,457			$	54,403
Less: Net income attributable to noncontrolling interest			75				208				53				56				392				104
GAAP net income (loss) from continuing operations attributable to Belden stockholders		$	28,666			$	43,764			$	41,264			$	(51,629	)		$	62,065			$	54,299
GAAP income (loss) from continuing operations		$	28,741			$	43,972			$	41,317			$	(51,573	)		$	62,457			$	54,403
Plus: Operating income adjustments from above			16,428				14,661				17,278				152,196				200,563				78,599
Plus: Loss on debt extinguishment			—				—				5,715				—				5,715				—
Plus: Non-operating pension settlement loss			—				—				—				—				—				3,153
Less: Gain on sale of note receivable			—				—				—				27,036				27,036				—
Less: Net income attributable to noncontrolling interest			75				208				53				56				392				104
Less: Tax effect of adjustments above			2,688				3,676				4,638				13,363				24,365				12,515
Less: Tripwire adjusted net income (loss)			2,042				(337	)			(972	)			715				1,448				10,374
Adjusted net income from continuing operations attributable to Belden stockholders excluding Tripwire		$	40,364			$	55,086			$	60,591			$	59,453			$	215,494			$	113,162
GAAP income (loss) from continuing operations per diluted share attributable to Belden stockholders		$	0.64			$	0.97			$	0.91			$	(1.15	)		$	1.37			$	1.21
Adjusted income from continuing operations excluding Tripwire per diluted share attributable to Belden stockholders		$	0.90			$	1.22			$	1.33			$	1.30			$	4.75			$	2.52
GAAP diluted weighted average shares			45,045				45,262				45,425				44,927				45,361				44,937
Adjustment for anti-dilutive shares that are dilutive under adjusted measures			—				—				—				802				—				—
Adjusted diluted weighted average shares			45,045				45,262				45,425				45,729				45,361				44,937

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								Twelve Months Ended
		December 31, 2021				December 31, 2020				December 31, 2021				December 31, 2020
		(In thousands)
GAAP net cash provided by operating activities		$	170,136			$	134,675			$	272,055			$	173,364
Capital expenditures, net of proceeds from the disposal of tangible assets			(8,428	)			(33,335	)			(60,748	)			(87,054	)
Non-GAAP free cash flow		$	161,708			$	101,340			$	211,307			$	86,310

BELDEN INC. RECONCILIATION OF NON-GAAP MEASURES 2022 Guidance
		Year Ended		Three Months Ended
		December 31, 2022		April 3, 2022
		(In thousands)
GAAP income from continuing operations per diluted share attributable to Belden common stockholders		$4.10 - $4.45		$0.76 - $0.86
Amortization of intangible assets		0.59		0.16
Severance, restructuring, and acquisition integration costs		0.31		0.11
Adjusted income from continuing operations per diluted share attributable to Belden common stockholders		$5.00 - $5.35		$1.03 - $1.13

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 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 first quarter and full-year 2022, the Tripwire divestiture, 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 impact of a challenging global economy or a downturn in served markets; disruptions in the Company’s information systems including due to cyber-attacks leading to exposures of personally identifiable information; changes in tax laws and variability in the Company’s quarterly and annual effective tax rates; the cost and availability of raw materials including copper, plastic compounds, electronic components, and other materials, particularly given the recent increase in inflation and the financial impact if we are not able to pass through cost increases to customers; the impact of the recent disruptions in the global supply chain, including the inability to obtain components in sufficient quantities on commercially reasonable terms; the competitiveness of the global markets in which we operate; difficulty in forecasting revenue due to the unpredictable timing of orders related to customer projects as well as the impacts of channel inventory; the presence of substitute products in the marketplace; the increased prevalence of cloud computing; the inability of the Company to develop and introduce new products and competitive responses to our products; the increased influence of chief information officers on purchasing decisions; 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; the impact of changes in global tariffs and trade agreements; volatility in credit and foreign exchange markets; the presence of activists proposing certain actions by the Company; 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 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 Quarterly Report on Form 10-Q for the period ended July 4, 2021, filed with the SEC on August 9, 2021. 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 audio, video and data 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 America, Europe, Asia, and Africa. For more information, visit us at www.belden.com or follow us on Twitter @BeldenInc.

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Belden Investor Relations

314-854-8054

Investor.Relations@Belden.com

Source: Belden Inc.

FAQ

What were Belden's Q4 2021 revenue figures?

Belden reported Q4 2021 revenues of $638.9 million, a 28% increase year-over-year.

How did Belden perform financially in 2021?

For the full year 2021, Belden's revenues totaled $2.408 billion, up 29% from 2020.

What is the adjusted EPS for Belden in Q4 2021?

Belden's adjusted EPS for Q4 2021 was $1.32, reflecting a 47% increase from the previous year.

What led to the net loss reported by Belden in Q4 2021?

Belden incurred a net loss of $51.6 million in Q4 2021 primarily due to a $131.2 million impairment charge related to Tripwire.

What is the significance of the Tripwire divestiture for Belden?

The divestiture of Tripwire for $350 million is expected to improve Belden's financial flexibility and support its strategic growth initiatives.