EX-99.1 2 d766955dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO    1 North Brentwood Boulevard    Phone: 314.854.8000
   15th Floor    Fax: 314.854.8003
   St. Louis, Missouri 63105   

 

www.Belden.com

News Release

Belden Reports Record Revenues in the Second Quarter 2014

St. Louis, Missouri – July 30, 2014 – Belden Inc. (NYSE: BDC), a global leader in high quality, end-to-end signal transmission solutions for mission-critical applications, today reported fiscal second quarter 2014 results for the period ended June 29, 2014.

Second Quarter 2014 Highlights

 

    Grew revenues by 13.5% from the year-ago period;

 

    Generated record adjusted income from continuing operations per diluted share of $1.05;

 

    Achieved record adjusted gross profit margins of 37.0%, an increase of 180 basis points from 35.2% in the second quarter 2013;

 

    Announced the purchase of ProSoft, a leader in innovative solutions within the industrial market, for approximately $103 million; and

 

    Purchased 424,469 shares of Belden common stock for $31.2 million during the quarter.

Second Quarter 2014

On a GAAP basis, revenues for the quarter totaled $600.9 million and were a company record. Revenues were up $71.4 million, or 13.5%, compared to $529.5 million in the second quarter 2013. Gross profit margin in the second quarter was 34.0%, increasing 20 basis points from 33.8% in the year-ago period. Operating profit margin in the second quarter was 2.1%, decreasing from 10.2% in the year-ago period. Income from continuing operations per diluted share was $0.00, compared to $0.66 in the second quarter 2013. Both operating profit margin and income from continuing operations per diluted share were impacted by previously announced acquisition related restructuring expenses and productivity enhancement programs that were implemented during the quarter.

Adjusted revenues for the quarter totaled $605.1 million and were also a company record. Adjusted revenues were up $72.5 million, or 13.6%, compared to $532.6 million in the second quarter 2013. Adjusted gross profit margin in the second quarter was 37.0%, increasing 180 basis points from 35.2% in the year-ago period. Adjusted operating profit margin in the second quarter was 13.0%, decreasing 120 basis points from 14.2% in the year-ago period, due to the initial impact of recently acquired Grass Valley. Adjusted income from continuing operations per diluted share totaled $1.05, compared to $0.99 in the second quarter 2013. A non-GAAP reconciliation table is provided as an appendix to this release.

John Stroup, President and CEO of Belden Inc., said, “I’m proud of our ability to deliver record results in the second quarter including revenues of $605.1 million, earnings per share of $1.05, and gross margins of 37.0%. I’m also pleased to announce the acquisition of ProSoft, a leader in innovative technology to industrial markets. So far this year, we’ve deployed more than $340 million in strategic acquisitions and share repurchases. Overall, the business performed well, with revenue strength in our Broadcast and Industrial Connectivity platforms offsetting the margin expansion initiatives within our Enterprise Connectivity business.”


Belden Reports Record Revenues in the Second Quarter 2014

Outlook

“The integration of Grass Valley is progressing well, and we look forward to the benefits of ProSoft joining the company. We remain committed to our strategic plan as we shift our focus and resources towards higher value products and services, and believe the best is still before us,” said Mr. Stroup.

The Company expects third quarter 2014 adjusted revenues to be $605 – $625 million and adjusted income from continuing operations per diluted share to be $1.05 – $1.15. For the full year ending December 31, 2014, the Company expects adjusted revenues to be $2.30 – $2.35 billion and adjusted income from continuing operations per diluted share to be $4.10 – $4.30.

On a GAAP basis, the Company expects third quarter 2014 revenues to be $599 – $619 million and income from continuing operations per diluted share to be $0.43 – $0.53. For the full year ending December 31, 2014, the Company expects revenues to be $2.28 – $2.33 billion and income from continuing operations per diluted share to be $1.68 – $1.88.

Earnings Conference Call

Management will host a conference call today at 10:30 am EDT to discuss results of the quarter and full-year. The listen-only audio of the conference call will be broadcast live via the Internet at http://investor.belden.com. An accompanying slide presentation and transcript of the prepared remarks will be available for download shortly before the call begins. The dial-in number for participants in the U.S. is 888-599-8685; the dial-in number for participants outside the U.S. is 913-312-0403. A replay of this conference call will remain accessible in the investor relations section of the Company’s Web site for a limited time.


BELDEN INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE INCOME

(Unaudited)

 

     Three Months Ended     Six Months Ended  
     June 29, 2014     June 30, 2013     June 29, 2014     June 30, 2013  
     (In thousands, except per share data)  

Revenues

   $ 600,891      $ 529,491      $ 1,088,581      $ 1,036,964   

Cost of sales

     (396,506     (350,295     (708,479     (690,415
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     204,385        179,196        380,102        346,549   

Selling, general and administrative expenses

     (145,902     (93,503     (240,750     (185,485

Research and development

     (31,618     (20,931     (52,189     (41,356

Amortization of intangibles

     (15,795     (13,105     (27,536     (26,082

Income from equity method investment

     1,256        2,256        2,210        4,527   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     12,326        53,913        61,837        98,153   

Interest expense

     (18,203     (18,345     (37,023     (34,250

Interest income

     111        149        261        257   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before taxes

     (5,766     35,717        25,075        64,160   

Income tax benefit (expense)

     5,781        (6,225     96        (12,423
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     15        29,492        25,171        51,737   

Loss from disposal of discontinued operations, net of tax

     —          —          (562     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 15      $ 29,492      $ 24,609      $ 51,737   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of common shares and equivalents:

        

Basic

     43,603        43,928        43,559        44,173   

Diluted

     44,292        44,790        44,293        45,107   

Basic income (loss) per share:

        

Continuing operations

   $ —        $ 0.67      $ 0.58      $ 1.17   

Discontinued operations

     —          —          (0.01     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ —        $ 0.67      $ 0.57      $ 1.17   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted income (loss) per share:

        

Continuing operations

   $ —        $ 0.66      $ 0.57      $ 1.15   

Discontinued operations

     —          —          (0.01     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ —        $ 0.66      $ 0.56      $ 1.15   
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

   $ 13,894      $ 23,950      $ 27,175      $ 38,842   
  

 

 

   

 

 

   

 

 

   

 

 

 

Dividends declared per share

   $ 0.05      $ 0.05      $ 0.10      $ 0.10   


BELDEN INC.

OPERATING SEGMENT INFORMATION

(Unaudited)

 

     Three months ended     Six months ended  
   June 29, 2014     June 30, 2013     June 29, 2014     June 30, 2013  
     (In thousands)  

Revenues:

        

Broadcast Solutions

   $ 248,115      $ 166,551      $ 413,983      $ 322,137   

Enterprise Connectivity Solutions

     121,272        132,929        229,666        249,556   

Industrial Connectivity Solutions

     178,244        171,892        337,562        348,613   

Industrial IT Solutions

     53,260        58,119        107,370        116,658   
  

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated

   $ 600,891      $ 529,491      $ 1,088,581      $ 1,036,964   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss):

        

Broadcast Solutions

   $ (26,302   $ 3,505      $ (15,734   $ 3,359   

Enterprise Connectivity Solutions

     13,733        14,675        23,901        23,510   

Industrial Connectivity Solutions

     18,339        24,344        39,089        48,793   

Industrial IT Solutions

     6,002        9,225        14,149        18,742   

All other

     —          1,278        —          1,278   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total segments

     11,772        53,027        61,405        95,682   

Eliminations

     (702     (1,370     (1,778     (2,056

Income from equity method investment

     1,256        2,256        2,210        4,527   
  

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated

   $ 12,326      $ 53,913      $ 61,837      $ 98,153   
  

 

 

   

 

 

   

 

 

   

 

 

 


BELDEN INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

     June 29, 2014     December 31, 2013  
     (Unaudited)        
     (In thousands)  
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 444,965      $ 613,304   

Receivables, net

     416,998        304,204   

Inventories, net

     228,443        207,980   

Deferred income taxes

     28,630        28,767   

Other current assets

     59,645        41,243   
  

 

 

   

 

 

 

Total current assets

     1,178,681        1,195,498   

Property, plant and equipment, less accumulated depreciation

     328,039        300,835   

Goodwill

     934,285        773,048   

Intangible assets, less accumulated amortization

     482,967        376,976   

Deferred income taxes

     27,246        26,034   

Other long-lived assets

     99,168        79,362   
  

 

 

   

 

 

 
   $ 3,050,386      $ 2,751,753   
  

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY     

Current liabilities:

    

Accounts payable

   $ 248,095      $ 199,897   

Accrued liabilities

     224,430        199,169   

Current maturities of long-term debt

     2,500        2,500   
  

 

 

   

 

 

 

Total current liabilities

     475,025        401,566   

Long-term debt

     1,559,071        1,364,536   

Postretirement benefits

     120,856        105,924   

Other long-term liabilities

     60,658        43,186   

Stockholders’ equity:

    

Common stock

     503        503   

Additional paid-in capital

     588,320        585,753   

Retained earnings

     576,403        556,214   

Accumulated other comprehensive loss

     (26,615     (29,181

Treasury stock

     (303,835     (276,748
  

 

 

   

 

 

 

Total stockholders’ equity

     834,776        836,541   
  

 

 

   

 

 

 
   $ 3,050,386      $ 2,751,753   
  

 

 

   

 

 

 


BELDEN INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(Unaudited)

 

     Six Months Ended  
     June 29, 2014     June 30, 2013  
     (In thousands)  

Cash flows from operating activities:

    

Net income

   $ 24,609      $ 51,737   

Adjustments to reconcile net income to net cash provided by (used for) operating activities:

    

Depreciation and amortization

     48,433        47,787   

Share-based compensation

     9,524        7,366   

Provision for inventory obsolescence

     4,119        963   

Pension funding less than pension expense

     1,721        1,723   

Income from equity method investment

     (2,210     (4,527

Deferred income tax benefit

     (4,787     (897

Tax benefit related to share-based compensation

     (4,894     (5,362

Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses:

    

Receivables

     (33,762     (43,370

Inventories

     3,486        6,312   

Accounts payable

     (4,584     5,500   

Accrued liabilities

     (32,271     (1,854

Accrued taxes

     (8,439     (85,769

Other assets

     7,212        232   

Other liabilities

     2,398        3,659   
  

 

 

   

 

 

 

Net cash provided by (used for) operating activities

     10,555        (16,500

Cash flows from investing activities:

    

Cash used to acquire businesses, net of cash acquired

     (311,467     (9,979

Capital expenditures

     (20,963     (20,266

Proceeds from (payments for) disposal of business

     (956     3,735   

Proceeds from disposal of tangible assets

     13        3,136   
  

 

 

   

 

 

 

Net cash used for investing activities

     (333,373     (23,374

Cash flows from financing activities:

    

Borrowings under credit arrangements

     200,000        388,220   

Payments under share repurchase program

     (31,197     (62,500

Proceeds (payments) from exercise of stock options, net of withholding tax payments

     (7,741     (1,186

Debt issuance costs paid

     (5,702     (7,817

Cash dividends paid

     (4,358     (2,310

Payments under borrowing arrangements

     (625     (197,191

Tax benefit related to share-based compensation

     4,894        5,362   
  

 

 

   

 

 

 

Net cash provided by financing activities

     155,271        122,578   

Effect of foreign currency exchange rate changes on cash and cash equivalents

     (792     (1,598
  

 

 

   

 

 

 

Increase (decrease) in cash and cash equivalents

     (168,339     81,106   

Cash and cash equivalents, beginning of period

     613,304        395,095   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 444,965      $ 476,201   
  

 

 

   

 

 

 


BELDEN INC.

RECONCILIATION OF NON-GAAP MEASURES

(Unaudited)

We define free cash flow, which is a non-GAAP financial measure, as net cash provided by operating activities adjusted for capital expenditures net of the proceeds from the disposal of tangible assets, non-recurring tax payments related to divestitures and the settlement of a tax sharing agreement, and cash payments for severance and other costs for the integration of our 2014 acquisition of Grass Valley. 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     Six Months Ended  
     June 29, 2014     June 30, 2013     June 29, 2014     June 30, 2013  
     (In thousands)  

GAAP net cash provided by (used for) operating activities

   $ 30,970      $ 55,226      $ 10,555      $ (16,500

Capital expenditures, net of proceeds from the disposal of tangible assets

     (10,606     (11,770     (20,950     (17,130

Non-recurring tax payments made for gain on 2012 sale of Thermax and Raydex cable business

     —          3,355        —          41,808   

Non-recurring tax payments made in settlement of tax sharing agreement with Cooper Industries

     —          —          —          30,000   

Cash paid for severance and other costs for the integration of our acquisition of Grass Valley

     12,768        —          12,768        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP free cash flow

   $ 33,132      $ 46,811      $ 2,373      $ 38,178   
  

 

 

   

 

 

   

 

 

   

 

 

 


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 to fair value and transaction costs; revenue and cost of sales deferrals for acquired product lines subject to software revenue recognition accounting requirements; severance, restructuring, and acquisition integration costs; gains (losses) recognized on the disposal of businesses and tangible assets; amortization of intangible assets; and other costs. 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. Adjusted results should be considered only in conjunction with results reported according to accounting principles generally accepted in the United States.

 

     Three Months Ended     Six Months Ended  
     June 29, 2014     June 30, 2013     June 29, 2014     June 30, 2013  
     (In thousands, except percentages and per share amounts)  

GAAP revenues

   $ 600,891      $ 529,491      $ 1,088,581      $ 1,036,964   

Deferred revenue adjustments

     4,163        3,139        4,780        6,055   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted revenues

   $ 605,054      $ 532,630      $ 1,093,361      $ 1,043,019   
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP gross profit

   $ 204,385      $ 179,196      $ 380,102      $ 346,549   

Severance, restructuring, and integration costs

     8,035        3,061        7,986        3,170   

Purchase accounting effects related to acquisitions

     7,442        —          7,442        6,550   

Deferred gross profit adjustments

     3,915        2,445        4,365        4,572   

Accelerated depreciation

     —          2,685        —          2,685   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted gross profit

   $ 223,777      $ 187,387      $ 399,895      $ 363,526   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted gross profit margin

     37.0     35.2     36.6     34.9

GAAP operating income

   $ 12,326      $ 53,913      $ 61,837      $ 98,153   

Severance, restructuring, and integration costs

     38,208        4,965        39,651        5,753   

Amortization of intangible assets

     15,795        13,105        27,536        26,082   

Purchase accounting effects related to acquisitions

     8,163        —          9,015        6,550   

Deferred gross profit adjustments

     3,915        2,445        4,365        4,572   

Accelerated depreciation

     —          2,685        —          2,685   

Gain on sale of assets

     —          (1,278     —          (1,278
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating income adjustments

     66,081        21,922        80,567        44,364   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating income

   $ 78,407      $ 75,835      $ 142,404      $ 142,517   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating income margin

     13.0     14.2     13.0     13.7

GAAP income from continuing operations

   $ 15      $ 29,492      $ 25,171      $ 51,737   

Operating income adjustments from above

     66,081        21,922        80,567        44,364   

Tax effect of adjustments

     (19,635     (7,248     (23,855     (13,609
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted income from continuing operations

   $ 46,461      $ 44,166      $ 81,883      $ 82,492   
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP income from continuing operations per diluted share

   $ —        $ 0.66      $ 0.57      $ 1.15   

Adjusted income from continuing operations per diluted share

   $ 1.05      $ 0.99      $ 1.85      $ 1.83   

GAAP and Adjusted diluted weighted average shares

     44,292        44,790        44,293        45,107   


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 to fair value and transaction costs; revenue and cost of sales deferrals for acquired product lines subject to software revenue recognition accounting requirements; severance, restructuring, and acquisition integration costs; gains (losses) recognized on the disposal of businesses and tangible assets; amortization of intangible assets; and other costs. 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. Adjusted results should be considered only in conjunction with results reported according to accounting principles generally accepted in the United States.

 

    Three Months Ended June 29, 2014  
    Broadcast
Solutions
    Enterprise
Connectivity
Solutions
    Industrial
Connectivity
Solutions
    Industrial IT
Solutions
    All Other     Total
Segments
    Eliminations     Income from
equity method
investment
    Consolidated  
    (In thousands, except percentages)  

GAAP revenues

  $ 248,115      $ 121,272      $ 178,244      $ 53,260      $ —        $ 600,891      $ —        $ —        $ 600,891   

Deferred revenue adjustments

    4,163        —          —          —          —          4,163        —          —          4,163   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted revenues

  $ 252,278      $ 121,272      $ 178,244      $ 53,260      $ —        $ 605,054      $ —        $ —        $ 605,054   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP operating income (loss)

  $ (26,302   $ 13,733      $ 18,339      $ 6,002      $ —        $ 11,772      $ (702   $ 1,256      $ 12,326   

Severance, restructuring, and integration costs

    27,524        1,821        8,144        719        —          38,208        —          —          38,208   

Amortization of intangible assets

    14,424        167        271        933        —          15,795        —          —          15,795   

Purchase accounting effects related to acquisitions

    7,148        147        250        618        —          8,163        —          —          8,163   

Deferred gross profit adjustments

    3,915        —          —          —          —          3,915        —          —          3,915   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating income adjustments

    53,011        2,135        8,665        2,270        —          66,081        —          —          66,081   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating income

  $ 26,709      $ 15,868      $ 27,004      $ 8,272      $ —        $ 77,853      $ (702   $ 1,256      $ 78,407   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating income margin

    10.6     13.1     15.2     15.5       12.9         13.0
    Three Months Ended June 30, 2013  
    Broadcast
Solutions
    Enterprise
Connectivity
Solutions
    Industrial
Connectivity
Solutions
    Industrial IT
Solutions
    All Other     Total
Segments
    Eliminations     Income from
equity method
investment
    Consolidated  
    (In thousands, except percentages)  

GAAP revenues

  $ 166,551      $ 132,929      $ 171,892      $ 58,119      $ —        $ 529,491      $ —        $ —        $ 529,491   

Deferred revenue adjustments

    3,139        —          —          —          —          3,139        —          —          3,139   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted revenues

  $ 169,690      $ 132,929      $ 171,892      $ 58,119      $ —        $ 532,630      $ —        $ —        $ 532,630   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP operating income

  $ 3,505      $ 14,675      $ 24,344      $ 9,225      $ 1,278      $ 53,027      $ (1,370   $ 2,256      $ 53,913   

Amortization of intangible assets

    11,940        101        274        790        —          13,105        —          —          13,105   

Severance, restructuring, and integration costs

    3,530        34        57        1,344        —          4,965        —          —          4,965   

Accelerated depreciation

    2,685        —          —          —            2,685        —          —          2,685   

Deferred gross profit adjustments

    2,445        —          —          —          —          2,445        —          —          2,445   

Gain on sale of assets

    —          —          —          —          (1,278     (1,278     —          —          (1,278
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating income adjustments

    20,600        135        331        2,134        (1,278     21,922        —          —          21,922   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating income

  $ 24,105      $ 14,810      $ 24,675      $ 11,359      $ —        $ 74,949      $ (1,370   $ 2,256      $ 75,835   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating income margin

    14.2     11.1     14.4     19.5       14.1         14.2


BELDEN INC.

RECONCILIATION OF NON-GAAP MEASURES

2014 REVENUE AND EARNINGS GUIDANCE

 

     Year Ended   Three Months Ended
     December 31, 2014   September 28, 2014

Adjusted revenues

   $2.300 - $2.350 billion   $605 - $625 million

Deferred revenue adjustments

   ($17 million)   ($6 million)
  

 

 

 

GAAP revenues

   $2.283 - $2.333 billion   $599 - $619 million
  

 

 

 

Adjusted income from continuing operations per diluted share

   $4.10 - $4.30   $1.05 - $1.15

Productivity improvement programs

   ($1.12)   ($0.27)

Amortization of intangible assets

   ($0.89)   ($0.23)

Deferred gross profit adjustments

   ($0.22)   ($0.08)

Purchase accounting effects of acquisitions

   ($0.19)   ($0.04)
  

 

 

 

GAAP income from continuing operations per diluted share

   $1.68 - $1.88   $0.43 - $0.53
  

 

 

 

Our guidance for revenues and income from continuing operations per diluted share is based upon the extent of information currently available regarding events and conditions that will impact our future operating results for 2014. Our actual results may be impacted by other additional events for which information is not available, such as asset impairments, purchase accounting effects related to acquisitions, severance and other restructuring costs, gains (losses) recognized on the disposal of tangible assets, gains (losses) on debt extinguishment, and other gains (losses) related to events or conditions that are not yet known.


Belden Reports Record Revenues in the Second Quarter 2014

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. All GAAP to non-GAAP reconciliations accompany the consolidated financial statements included in this release and have been published to the investor relations section of the Company’s Web site at http://investor.belden.com.

Forward Looking Statements

This release contains forward looking statements including our expectations for the third quarter and full-year 2014. Forward looking statements also include any other statements regarding future revenues, costs and expenses, operating income, earnings per share, margins, cash flows, dividends, and capital expenditures. These forward looking statements are based on forecasts and projections about the markets and industries served by the Company and about general economic conditions. They reflect management’s current beliefs and expectations and are not guarantees of future performance. The Company’s actual results may differ materially from these expectations for a number of reasons including: changes in the global economy may impact the Company’s results; turbulence in financial markets may increase the Company’s borrowing costs; the Company relies on key distributors in marketing products; the Company’s ability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); changes in the level of economic activity in the Company’s major geographic markets; difficulties in realigning manufacturing capacity and capabilities among the Company’s global manufacturing facilities; the competitiveness of the global broadcast, enterprise, and industrial markets; variability in the Company’s quarterly and annual effective tax rates; changes in accounting rules and interpretation of these rules which may affect the Company’s reported earnings; changes in currency exchange rates and political and economic uncertainties in the countries where the Company conducts business; demand for the Company’s products; the cost and availability of materials including copper, plastic compounds derived from fossil fuels, electronic components, and other materials; energy costs; the Company’s ability to achieve acquisition performance expectations and to integrate acquired businesses successfully; the ability of the Company to develop and introduce new products; the Company having to recognize charges that would reduce income as a result of impairing goodwill and other intangible assets; security risks and the potential for business interruption from operating in volatile countries; disruptions or failures of the Company’s (or the Company’s suppliers or customers) systems or operations in the event of a major earthquake, weather event, cyber-attack, terrorist attack, or other catastrophic event that could cause delays in completing sales, providing services, or performing other mission-critical functions; and other factors. For a more complete discussion of risk factors, please see our Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on February 27, 2014. 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.


Belden Reports Record Revenues in the Second Quarter 2014

About Belden

St. Louis–based Belden Inc. delivers a comprehensive product portfolio designed to meet the mission-critical network infrastructure needs of industrial, enterprise and broadcast markets. With innovative solutions targeted at reliable and secure transmission of rapidly growing amounts of data, audio and video needed for today’s applications, Belden is at the center of the global transformation to a connected world. Founded in 1902, the company is headquartered in St. Louis and has manufacturing capabilities in North and South America, Europe and Asia. For more information, visit us at www.belden.com or follow us on Twitter @BeldenInc.

Contact:

Belden Investor Relations

314-854-8054

Investor.Relations@Belden.com

BDC-E