Belden Reports Strong Results for Second Quarter 2022
Belden Inc. (NYSE: BDC) reported fiscal Q2 2022 results showing revenues of $667 million, a 16% increase from $576 million in Q2 2021. Net income rose to $59 million with EPS at $1.31, up from $1.00 a year prior. Adjusted EBITDA reached $111 million, a 19% increase. The company raised its 2022 revenue guidance to $2.520 - $2.550 billion, reflecting a 12% to 13% organic growth. Despite anticipating a slight revenue dip in Q3 due to currency fluctuations, Belden remains positive about ongoing strategic initiatives and aims for $8 adjusted EPS by 2025.
- Q2 2022 revenues increased 16% to $667 million.
- Net income rose to $59 million, EPS increased to $1.31.
- Adjusted EBITDA grew by 19% to $111 million, with an adjusted EBITDA margin of 16.6%.
- Raised full-year revenue guidance to $2.520 - $2.550 billion, indicating 12% to 13% organic growth.
- Targeting adjusted EPS of at least $8.00 by 2025.
- Q3 2022 revenue expectations are lower, projected at $625 - $640 million, down approximately $25 million from Q2 due to currency impact.
- Macroeconomic conditions present considerable uncertainties, including volatile commodity prices.
Second Quarter 2022
Revenues for the quarter totaled
Adjusted revenues for the quarter totaled
Outlook
“As a result of the strong quarter and an improved outlook for the remainder of the year, we are increasing our full year 2022 guidance. Our full year revenue guidance now represents organic revenue growth of
The Company expects third quarter 2022 revenues to be
Driven by stronger organic growth, for the year ending
The Company expects third quarter 2022 GAAP EPS to be
The Company expects third quarter 2022 adjusted EPS to be
Earnings Conference Call
Management will host a conference call today at
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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
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Three Months Ended |
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Six Months Ended |
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(In thousands, except per share data) |
||||||||||||||
Revenues |
|
$ |
666,551 |
|
|
$ |
575,857 |
|
|
$ |
1,276,922 |
|
|
$ |
1,084,540 |
|
Cost of sales |
|
|
(444,246 |
) |
|
|
(384,503 |
) |
|
|
(845,757 |
) |
|
|
(724,003 |
) |
Gross profit |
|
|
222,305 |
|
|
|
191,354 |
|
|
|
431,165 |
|
|
|
360,537 |
|
Selling, general and administrative expenses |
|
|
(105,203 |
) |
|
|
(93,570 |
) |
|
|
(208,269 |
) |
|
|
(174,205 |
) |
Research and development expenses |
|
|
(25,989 |
) |
|
|
(22,263 |
) |
|
|
(49,445 |
) |
|
|
(44,875 |
) |
Amortization of intangibles |
|
|
(9,177 |
) |
|
|
(7,172 |
) |
|
|
(17,994 |
) |
|
|
(15,165 |
) |
Asset impairments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,995 |
) |
Operating income |
|
|
81,936 |
|
|
|
68,349 |
|
|
|
155,457 |
|
|
|
119,297 |
|
Interest expense, net |
|
|
(11,276 |
) |
|
|
(14,870 |
) |
|
|
(25,687 |
) |
|
|
(30,381 |
) |
Loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
(6,392 |
) |
|
|
— |
|
Non-operating pension benefit |
|
|
1,070 |
|
|
|
1,445 |
|
|
|
2,270 |
|
|
|
2,129 |
|
Income from continuing operations before taxes |
|
|
71,730 |
|
|
|
54,924 |
|
|
|
125,648 |
|
|
|
91,045 |
|
Income tax expense |
|
|
(13,088 |
) |
|
|
(9,578 |
) |
|
|
(22,910 |
) |
|
|
(16,634 |
) |
Income from continuing operations |
|
|
58,642 |
|
|
|
45,346 |
|
|
|
102,738 |
|
|
|
74,411 |
|
Loss from discontinued operations, net of tax |
|
|
— |
|
|
|
(1,374 |
) |
|
|
(3,685 |
) |
|
|
(1,698 |
) |
Loss on disposal of discontinued operations, net of tax |
|
|
— |
|
|
|
— |
|
|
|
(4,567 |
) |
|
|
— |
|
Net income |
|
|
58,642 |
|
|
|
43,972 |
|
|
|
94,486 |
|
|
|
72,713 |
|
Less: Net income attributable to noncontrolling interest |
|
|
81 |
|
|
|
208 |
|
|
|
84 |
|
|
|
283 |
|
Net income attributable to Belden stockholders |
|
$ |
58,561 |
|
|
$ |
43,764 |
|
|
$ |
94,402 |
|
|
$ |
72,430 |
|
|
|
|
|
|
|
|
|
|
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Weighted average number of common shares and equivalents: |
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|
|
|
|
|
|
||||||||
Basic |
|
|
44,252 |
|
|
|
44,759 |
|
|
|
44,535 |
|
|
|
44,717 |
|
Diluted |
|
|
44,782 |
|
|
|
45,262 |
|
|
|
45,179 |
|
|
|
45,162 |
|
|
|
|
|
|
|
|
|
|
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Basic income (loss) per share attributable to Belden stockholders: |
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Continuing operations |
|
$ |
1.32 |
|
|
$ |
1.01 |
|
|
$ |
2.31 |
|
|
$ |
1.66 |
|
Discontinued operations |
|
|
— |
|
|
|
(0.03 |
) |
|
|
(0.08 |
) |
|
|
(0.04 |
) |
Disposal of discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
(0.10 |
) |
|
|
— |
|
Net income |
|
$ |
1.32 |
|
|
$ |
0.98 |
|
|
$ |
2.12 |
|
|
$ |
1.62 |
|
|
|
|
|
|
|
|
|
|
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Diluted income (loss) per share attributable to Belden stockholders: |
|
|
|
|
|
|
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Continuing operations |
|
$ |
1.31 |
|
|
$ |
1.00 |
|
|
$ |
2.27 |
|
|
$ |
1.64 |
|
Discontinued operations |
|
|
— |
|
|
|
(0.03 |
) |
|
|
(0.08 |
) |
|
|
(0.04 |
) |
Disposal of discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
(0.10 |
) |
|
|
— |
|
Net income |
|
$ |
1.31 |
|
|
$ |
0.97 |
|
|
$ |
2.09 |
|
|
$ |
1.60 |
|
Common stock dividends declared per share |
|
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
0.10 |
|
|
$ |
0.10 |
|
OPERATING SEGMENT INFORMATION (Unaudited) |
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Enterprise Solutions |
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Industrial Automation Solutions |
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Total Segments |
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(In thousands, except percentages) |
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For the three months ended |
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Segment Revenues |
|
$ |
307,444 |
|
|
$ |
359,107 |
|
|
$ |
666,551 |
|
Segment EBITDA |
|
|
41,887 |
|
|
|
68,060 |
|
|
|
109,947 |
|
Segment EBITDA margin |
|
|
13.6 |
% |
|
|
19.0 |
% |
|
|
16.5 |
% |
Depreciation expense |
|
|
5,768 |
|
|
|
5,602 |
|
|
|
11,370 |
|
Amortization of intangibles |
|
|
4,442 |
|
|
|
4,735 |
|
|
|
9,177 |
|
Amortization of software development intangible assets |
|
|
22 |
|
|
|
959 |
|
|
|
981 |
|
Severance, restructuring, and acquisition integration costs |
|
|
4,575 |
|
|
|
1,282 |
|
|
|
5,857 |
|
Adjustments related to acquisitions and divestitures |
|
|
(558 |
) |
|
|
1,134 |
|
|
|
576 |
|
|
|
|
|
|
|
|
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For the three months ended |
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|
|
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|
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Segment Revenues |
|
$ |
267,528 |
|
|
$ |
309,178 |
|
|
$ |
576,706 |
|
Segment EBITDA |
|
|
36,001 |
|
|
|
55,464 |
|
|
|
91,465 |
|
Segment EBITDA margin |
|
|
13.5 |
% |
|
|
17.9 |
% |
|
|
15.9 |
% |
Depreciation expense |
|
|
5,372 |
|
|
|
5,286 |
|
|
|
10,658 |
|
Amortization of intangibles |
|
|
4,439 |
|
|
|
2,733 |
|
|
|
7,172 |
|
Amortization of software development intangible assets |
|
|
20 |
|
|
|
302 |
|
|
|
322 |
|
Severance, restructuring, and acquisition integration costs |
|
|
2,464 |
|
|
|
576 |
|
|
|
3,040 |
|
Adjustments related to acquisitions and divestitures |
|
|
(32 |
) |
|
|
1,944 |
|
|
|
1,912 |
|
|
|
|
|
|
|
|
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For the six months ended |
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|
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|
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Segment Revenues |
|
$ |
575,874 |
|
|
$ |
701,048 |
|
|
$ |
1,276,922 |
|
Segment EBITDA |
|
|
72,708 |
|
|
|
135,588 |
|
|
|
208,296 |
|
Segment EBITDA margin |
|
|
12.6 |
% |
|
|
19.3 |
% |
|
|
16.3 |
% |
Depreciation expense |
|
|
11,194 |
|
|
|
11,402 |
|
|
|
22,596 |
|
Amortization of intangibles |
|
|
8,539 |
|
|
|
9,455 |
|
|
|
17,994 |
|
Amortization of software development intangible assets |
|
|
44 |
|
|
|
1,944 |
|
|
|
1,988 |
|
Severance, restructuring, and acquisition integration costs |
|
|
4,903 |
|
|
|
4,677 |
|
|
|
9,580 |
|
Adjustments related to acquisitions and divestitures |
|
|
(558 |
) |
|
|
1,134 |
|
|
|
576 |
|
|
|
|
|
|
|
|
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For the six months ended |
|
|
|
|
|
|
||||||
Segment Revenues |
|
$ |
493,883 |
|
|
$ |
591,506 |
|
|
$ |
1,085,389 |
|
Segment EBITDA |
|
|
64,292 |
|
|
|
103,075 |
|
|
|
167,367 |
|
Segment EBITDA margin |
|
|
13.0 |
% |
|
|
17.4 |
% |
|
|
15.4 |
% |
Depreciation expense |
|
|
10,735 |
|
|
|
10,650 |
|
|
|
21,385 |
|
Amortization of intangibles |
|
|
8,775 |
|
|
|
6,390 |
|
|
|
15,165 |
|
Amortization of software development intangible assets |
|
|
52 |
|
|
|
679 |
|
|
|
731 |
|
Severance, restructuring, and acquisition integration costs |
|
|
4,416 |
|
|
|
3,795 |
|
|
|
8,211 |
|
Adjustments related to acquisitions and divestitures |
|
|
(6,339 |
) |
|
|
1,877 |
|
|
|
(4,462 |
) |
Asset impairments |
|
|
— |
|
|
|
6,995 |
|
|
|
6,995 |
|
OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
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|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
||||||||
|
|
(In thousands) |
||||||||||||||
Total segment revenues |
|
$ |
666,551 |
|
|
$ |
576,706 |
|
|
$ |
1,276,922 |
|
|
$ |
1,085,389 |
|
Adjustments related to acquisitions |
|
|
— |
|
|
|
(849 |
) |
|
|
— |
|
|
|
(849 |
) |
Consolidated revenues |
|
$ |
666,551 |
|
|
$ |
575,857 |
|
|
$ |
1,276,922 |
|
|
$ |
1,084,540 |
|
|
|
|
|
|
|
|
|
|
||||||||
Total Segment EBITDA |
|
$ |
109,947 |
|
|
$ |
91,465 |
|
|
$ |
208,296 |
|
|
$ |
167,367 |
|
Eliminations |
|
|
(50 |
) |
|
|
(12 |
) |
|
|
(105 |
) |
|
|
(45 |
) |
Total non-operating pension benefit |
|
|
1,070 |
|
|
|
1,445 |
|
|
|
2,270 |
|
|
|
2,129 |
|
Consolidated Adjusted EBITDA (1) |
|
|
110,967 |
|
|
|
92,898 |
|
|
|
210,461 |
|
|
|
169,451 |
|
Interest expense, net |
|
|
(11,276 |
) |
|
|
(14,870 |
) |
|
|
(25,687 |
) |
|
|
(30,381 |
) |
Depreciation expense |
|
|
(11,370 |
) |
|
|
(10,658 |
) |
|
|
(22,596 |
) |
|
|
(21,385 |
) |
Amortization of intangibles |
|
|
(9,177 |
) |
|
|
(7,172 |
) |
|
|
(17,994 |
) |
|
|
(15,165 |
) |
Amortization of software development intangible assets |
|
|
(981 |
) |
|
|
(322 |
) |
|
|
(1,988 |
) |
|
|
(731 |
) |
Loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
(6,392 |
) |
|
|
— |
|
Severance, restructuring, and acquisition integration costs |
|
|
(5,857 |
) |
|
|
(3,040 |
) |
|
|
(9,580 |
) |
|
|
(8,211 |
) |
Asset impairments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,995 |
) |
Adjustments related to acquisitions and divestitures |
|
|
(576 |
) |
|
|
(1,912 |
) |
|
|
(576 |
) |
|
|
4,462 |
|
Income from continuing operations before taxes |
|
$ |
71,730 |
|
|
$ |
54,924 |
|
|
$ |
125,648 |
|
|
$ |
91,045 |
|
(1) Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation of Non-GAAP Measures for additional information. |
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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
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(In thousands) |
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ASSETS |
||||||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
527,682 |
|
|
$ |
641,563 |
|
Receivables, net |
|
|
425,553 |
|
|
|
383,444 |
|
Inventories, net |
|
|
394,346 |
|
|
|
345,203 |
|
Other current assets |
|
|
61,268 |
|
|
|
58,283 |
|
Current assets of discontinued operations |
|
|
— |
|
|
|
449,402 |
|
Total current assets |
|
|
1,408,849 |
|
|
|
1,877,895 |
|
Property, plant and equipment, less accumulated depreciation |
|
|
340,610 |
|
|
|
343,564 |
|
Operating lease right-of-use assets |
|
|
73,225 |
|
|
|
75,571 |
|
|
|
|
861,131 |
|
|
|
821,448 |
|
Intangible assets, less accumulated amortization |
|
|
256,207 |
|
|
|
238,155 |
|
Deferred income taxes |
|
|
33,731 |
|
|
|
31,486 |
|
Other long-lived assets |
|
|
52,264 |
|
|
|
29,558 |
|
|
|
$ |
3,026,017 |
|
|
$ |
3,417,677 |
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
349,446 |
|
|
$ |
377,765 |
|
Accrued liabilities |
|
|
240,891 |
|
|
|
278,108 |
|
Current liabilities of discontinued operations |
|
|
— |
|
|
|
99,079 |
|
Total current liabilities |
|
|
590,337 |
|
|
|
754,952 |
|
Long-term debt |
|
|
1,137,853 |
|
|
|
1,459,991 |
|
Postretirement benefits |
|
|
107,394 |
|
|
|
120,997 |
|
Deferred income taxes |
|
|
59,849 |
|
|
|
49,027 |
|
Long-term operating lease liabilities |
|
|
60,018 |
|
|
|
61,967 |
|
Other long-term liabilities |
|
|
21,483 |
|
|
|
14,661 |
|
Stockholders’ equity: |
|
|
|
|
||||
Common stock |
|
|
503 |
|
|
|
503 |
|
Additional paid-in capital |
|
|
820,602 |
|
|
|
833,627 |
|
Retained earnings |
|
|
595,613 |
|
|
|
505,717 |
|
Accumulated other comprehensive loss |
|
|
(14,487 |
) |
|
|
(70,566 |
) |
|
|
|
(354,029 |
) |
|
|
(313,994 |
) |
Total Belden stockholders’ equity |
|
|
1,048,202 |
|
|
|
955,287 |
|
Noncontrolling interests |
|
|
881 |
|
|
|
795 |
|
Total stockholders’ equity |
|
|
1,049,083 |
|
|
|
956,082 |
|
|
|
$ |
3,026,017 |
|
|
$ |
3,417,677 |
|
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Unaudited) |
||||||||
|
|
Six Months Ended |
||||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
(In thousands) |
||||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
94,486 |
|
|
$ |
72,713 |
|
Adjustments to reconcile net income to net cash from operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
42,686 |
|
|
|
43,272 |
|
Loss on debt extinguishment |
|
|
6,392 |
|
|
|
— |
|
Share-based compensation |
|
|
10,870 |
|
|
|
13,513 |
|
Asset impairments |
|
|
— |
|
|
|
6,995 |
|
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes, acquired businesses and disposals: |
|
|
|
|
||||
Receivables |
|
|
(20,699 |
) |
|
|
(90,810 |
) |
Inventories |
|
|
(47,305 |
) |
|
|
(50,111 |
) |
Accounts payable |
|
|
(23,563 |
) |
|
|
50,158 |
|
Accrued liabilities |
|
|
(58,525 |
) |
|
|
227 |
|
Income taxes |
|
|
163 |
|
|
|
1,474 |
|
Other assets |
|
|
(2,634 |
) |
|
|
(6,924 |
) |
Other liabilities |
|
|
(10,452 |
) |
|
|
(13,853 |
) |
Net cash provided by (used for) operating activities |
|
|
(8,581 |
) |
|
|
26,654 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Proceeds from disposal of businesses, net of cash sold |
|
|
338,686 |
|
|
|
10,798 |
|
Proceeds from disposal of tangible assets |
|
|
1,424 |
|
|
|
3,249 |
|
Capital expenditures |
|
|
(31,010 |
) |
|
|
(30,866 |
) |
Cash used for business acquisitions, net of cash acquired |
|
|
(104,123 |
) |
|
|
(73,749 |
) |
Purchase of intangible assets |
|
|
— |
|
|
|
(3,650 |
) |
Net cash provided by (used for) investing activities |
|
|
204,977 |
|
|
|
(94,218 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Payments under borrowing arrangements |
|
|
(230,639 |
) |
|
|
(1,841 |
) |
Payments under share repurchase program |
|
|
(66,559 |
) |
|
|
— |
|
Withholding tax payments for share-based payment awards |
|
|
(5,167 |
) |
|
|
(2,009 |
) |
Cash dividends paid |
|
|
(4,520 |
) |
|
|
(4,493 |
) |
Payments under financing lease obligations |
|
|
(83 |
) |
|
|
(75 |
) |
Debt issuance costs paid |
|
|
— |
|
|
|
(1,728 |
) |
Proceeds from issuance of common stock |
|
|
3,717 |
|
|
|
— |
|
Net cash used for financing activities |
|
|
(303,251 |
) |
|
|
(10,146 |
) |
Effect of foreign currency exchange rate changes on cash and cash equivalents |
|
|
(9,220 |
) |
|
|
(993 |
) |
Decrease in cash and cash equivalents |
|
|
(116,075 |
) |
|
|
(78,703 |
) |
Cash and cash equivalents, beginning of period |
|
|
643,757 |
|
|
|
501,994 |
|
Cash and cash equivalents, end of period |
|
$ |
527,682 |
|
|
$ |
423,291 |
|
The Condensed Consolidated Cash Flow Statement includes the results of discontinued operations up to the disposal date,
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 |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
(In thousands, except percentages and per share amounts) |
||||||||||||||
GAAP revenues |
|
$ |
666,551 |
|
|
$ |
575,857 |
|
|
$ |
1,276,922 |
|
|
$ |
1,084,540 |
|
Adjustments related to acquisitions |
|
|
— |
|
|
|
849 |
|
|
|
— |
|
|
|
849 |
|
Adjusted revenues |
|
$ |
666,551 |
|
|
$ |
576,706 |
|
|
$ |
1,276,922 |
|
|
$ |
1,085,389 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP gross profit |
|
$ |
222,305 |
|
|
$ |
191,354 |
|
|
$ |
431,165 |
|
|
$ |
360,537 |
|
Severance, restructuring, and acquisition integration costs |
|
|
4,611 |
|
|
|
1,103 |
|
|
|
5,975 |
|
|
|
1,363 |
|
Amortization of software development intangible assets |
|
|
981 |
|
|
|
322 |
|
|
|
1,988 |
|
|
|
731 |
|
Adjustments related to acquisitions and divestitures |
|
|
1,134 |
|
|
|
1,995 |
|
|
|
1,134 |
|
|
|
2,811 |
|
Adjusted gross profit |
|
$ |
229,031 |
|
|
$ |
194,774 |
|
|
$ |
440,262 |
|
|
$ |
365,442 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP gross profit margin |
|
|
33.4 |
% |
|
|
33.2 |
% |
|
|
33.8 |
% |
|
|
33.2 |
% |
Adjusted gross profit margin |
|
|
34.4 |
% |
|
|
33.8 |
% |
|
|
34.5 |
% |
|
|
33.7 |
% |
|
|
|
|
|
|
|
|
|
||||||||
GAAP selling, general and administrative expenses |
|
$ |
(105,203 |
) |
|
$ |
(93,570 |
) |
|
$ |
(208,269 |
) |
|
$ |
(174,205 |
) |
Severance, restructuring, and acquisition integration costs |
|
|
1,246 |
|
|
|
1,937 |
|
|
|
3,605 |
|
|
|
6,848 |
|
Adjustments related to acquisitions and divestitures |
|
|
(558 |
) |
|
|
(83 |
) |
|
|
(558 |
) |
|
|
(7,273 |
) |
Adjusted selling, general and administrative expenses |
|
$ |
(104,515 |
) |
|
$ |
(91,716 |
) |
|
$ |
(205,222 |
) |
|
$ |
(174,630 |
) |
|
|
|
|
|
|
|
|
|
||||||||
GAAP and adjusted research and development expenses |
|
$ |
(25,989 |
) |
|
$ |
(22,263 |
) |
|
$ |
(49,445 |
) |
|
$ |
(44,875 |
) |
|
|
|
|
|
|
|
|
|
||||||||
GAAP income from continuing operations |
|
$ |
58,642 |
|
|
$ |
45,346 |
|
|
$ |
102,738 |
|
|
$ |
74,411 |
|
Interest expense, net |
|
|
11,276 |
|
|
|
14,870 |
|
|
|
25,687 |
|
|
|
30,381 |
|
Income tax expense |
|
|
13,088 |
|
|
|
9,578 |
|
|
|
22,910 |
|
|
|
16,634 |
|
Loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
6,392 |
|
|
|
— |
|
Total non-operating adjustments |
|
|
24,364 |
|
|
|
24,448 |
|
|
|
54,989 |
|
|
|
47,015 |
|
|
|
|
|
|
|
|
|
|
||||||||
Amortization of intangible assets |
|
|
9,177 |
|
|
|
7,172 |
|
|
|
17,994 |
|
|
|
15,165 |
|
Severance, restructuring, and acquisition integration costs |
|
|
5,857 |
|
|
|
3,040 |
|
|
|
9,580 |
|
|
|
8,211 |
|
Amortization of software development intangible assets |
|
|
981 |
|
|
|
322 |
|
|
|
1,988 |
|
|
|
731 |
|
Asset impairments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,995 |
|
Adjustments related to acquisitions and divestitures |
|
|
576 |
|
|
|
1,912 |
|
|
|
576 |
|
|
|
(4,462 |
) |
Total operating income adjustments |
|
|
16,591 |
|
|
|
12,446 |
|
|
|
30,138 |
|
|
|
26,640 |
|
Depreciation expense |
|
|
11,370 |
|
|
|
10,658 |
|
|
|
22,596 |
|
|
|
21,385 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA |
|
$ |
110,967 |
|
|
$ |
92,898 |
|
|
$ |
210,461 |
|
|
$ |
169,451 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP income from continuing operations margin |
|
|
8.8 |
% |
|
|
7.9 |
% |
|
|
8.0 |
% |
|
|
6.9 |
% |
Adjusted EBITDA margin |
|
|
16.6 |
% |
|
|
16.1 |
% |
|
|
16.5 |
% |
|
|
15.6 |
% |
|
|
|
|
|
|
|
|
|
||||||||
GAAP income from continuing operations |
|
$ |
58,642 |
|
|
$ |
45,346 |
|
|
$ |
102,738 |
|
|
$ |
74,411 |
|
Less: Net income attributable to noncontrolling interest |
|
|
81 |
|
|
|
208 |
|
|
|
84 |
|
|
|
283 |
|
GAAP net income from continuing operations attributable to Belden stockholders |
|
$ |
58,561 |
|
|
$ |
45,138 |
|
|
$ |
102,654 |
|
|
$ |
74,128 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP income from continuing operations |
|
$ |
58,642 |
|
|
$ |
45,346 |
|
|
$ |
102,738 |
|
|
$ |
74,411 |
|
Plus: Operating income adjustments from above |
|
|
16,591 |
|
|
|
12,446 |
|
|
|
30,138 |
|
|
|
26,640 |
|
Plus: Loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
6,392 |
|
|
|
— |
|
Less: Net income attributable to noncontrolling interest |
|
|
81 |
|
|
|
208 |
|
|
|
84 |
|
|
|
283 |
|
Less: Tax effect of adjustments above |
|
|
3,692 |
|
|
|
2,498 |
|
|
|
8,239 |
|
|
|
5,318 |
|
Adjusted net income from continuing operations attributable to Belden stockholders |
|
$ |
71,460 |
|
|
$ |
55,086 |
|
|
$ |
130,945 |
|
|
$ |
95,450 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP income from continuing operations per diluted share attributable to Belden stockholders |
|
$ |
1.31 |
|
|
$ |
1.00 |
|
|
$ |
2.27 |
|
|
$ |
1.64 |
|
Adjusted income from continuing operations per diluted share attributable to Belden stockholders |
|
$ |
1.60 |
|
|
$ |
1.22 |
|
|
$ |
2.90 |
|
|
$ |
2.11 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP and adjusted diluted weighted average shares |
|
|
44,782 |
|
|
|
45,262 |
|
|
|
45,179 |
|
|
|
45,162 |
|
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
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
(In thousands) |
||||||||||||||
GAAP net cash provided by (used for) operating activities |
|
$ |
49,374 |
|
|
$ |
68,149 |
|
|
$ |
(8,581 |
) |
|
$ |
26,654 |
|
Capital expenditures, net of proceeds from the disposal of tangible assets |
|
|
(18,679 |
) |
|
|
(16,406 |
) |
|
|
(29,586 |
) |
|
|
(27,617 |
) |
Non-GAAP free cash flow |
|
$ |
30,695 |
|
|
$ |
51,743 |
|
|
$ |
(38,167 |
) |
|
$ |
(963 |
) |
RECONCILIATION OF NON-GAAP MEASURES 2022 Guidance |
||||
|
|
Year Ended |
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
||
GAAP income from continuing operations per diluted share attributable to Belden common stockholders |
|
|
|
|
Amortization of intangible assets |
|
0.71 |
|
0.19 |
Severance, restructuring, and acquisition integration costs |
|
0.39 |
|
0.15 |
Loss from debt extinguishment |
|
0.11 |
|
— |
Adjustments related to acquisitions and divestitures |
|
0.02 |
|
— |
Adjusted income from continuing operations per diluted share attributable to Belden common 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 tangible assets, gains (losses) on debt extinguishment, discontinued operations, and other gains (losses) related to events or conditions that are not yet known. Such information is not available for our 2025 fiscal year, and as such we are unable to estimate 2025 GAAP income from continuing operations per diluted share attributable to Belden common stockholders.
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 third quarter and full-year 2022, 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 impact of disruptions in the global supply chain, including the inability to obtain raw materials and components in sufficient quantities on commercially reasonable terms; the lack of certainty as to the duration and magnitude of the impact of COVID-19 and the economic recovery from that impact; foreign and domestic political, economic and other uncertainties, including changes in currency exchange rates; the impact of a challenging global economy or a downturn in served markets; the inability to successfully complete and integrate acquisitions in furtherance of the Company’s strategic plan; difficulty in forecasting revenue due to the unpredictable timing of orders related to customer projects as well as the impacts of channel inventory; inflation and changes in the price and availability of raw materials leading to higher input and labor costs; the inability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); the inability to retain key employees; the increased influence of chief information officers on purchasing decisions; 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 competitiveness of the global markets in which we operate; 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 inability to achieve our strategic priorities in emerging markets; 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; assertions that the Company violates the intellectual property of others and the ownership of intellectual property by competitors and others that prevents the use of that intellectual property by the Company; the impact of regulatory requirements and other legal compliance issues; the impairment of goodwill and other intangible assets and the resulting impact on financial performance; disruptions and increased costs attendant to collective bargaining groups and other labor matters; and other factors.
For a more complete discussion of risk factors, please see our Annual Report on Form 10-K for the period ended
About Belden
View source version on businesswire.com: https://www.businesswire.com/news/home/20220803005091/en/
Belden Investor Relations
314-854-8054
Investor.Relations@Belden.com
Source:
FAQ
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