(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
d) Exhibits. | ||
Exhibit Number | Description | |
99.1 |
BELDEN INC. | ||||||
Date: February 4, 2020 | By: | /s/ Brian E. Anderson | ||||
Brian E. Anderson | ||||||
Senior Vice President-Legal, General | ||||||
Counsel and Corporate Secretary |
![]() | ||||
1 North Brentwood Boulevard | Phone: 314.854.8000 | |||
15th Floor | Fax: 314.854.8003 | |||
St. Louis, Missouri 63105 | ||||
www.Belden.com |
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Revenues | $ | 549,688 | $ | 552,052 | $ | 2,131,278 | $ | 2,165,702 | ||||||||
Cost of sales | (346,916 | ) | (335,058 | ) | (1,337,773 | ) | (1,335,791 | ) | ||||||||
Gross profit | 202,772 | 216,994 | 793,505 | 829,911 | ||||||||||||
Selling, general and administrative expenses | (118,675 | ) | (104,814 | ) | (417,329 | ) | (411,352 | ) | ||||||||
Research and development expenses | (22,346 | ) | (22,223 | ) | (94,360 | ) | (91,552 | ) | ||||||||
Amortization of intangibles | (18,351 | ) | (18,693 | ) | (74,609 | ) | (75,140 | ) | ||||||||
Gain from patent litigation | — | — | — | 62,141 | ||||||||||||
Operating income | 43,400 | 71,264 | 207,207 | 314,008 | ||||||||||||
Interest expense, net | (13,863 | ) | (14,639 | ) | (55,814 | ) | (60,839 | ) | ||||||||
Non-operating pension benefit (cost) | (667 | ) | (1,108 | ) | 1,017 | (99 | ) | |||||||||
Loss on debt extinguishment | — | — | — | (22,990 | ) | |||||||||||
Income from continuing operations before taxes | 28,870 | 55,517 | 152,410 | 230,080 | ||||||||||||
Income tax expense | (26,340 | ) | (19,552 | ) | (42,519 | ) | (62,936 | ) | ||||||||
Income from continuing operations | 2,530 | 35,965 | 109,891 | 167,144 | ||||||||||||
Income (loss) from discontinued operations, net of tax | (149,759 | ) | 7,526 | (486,667 | ) | (6,433 | ) | |||||||||
Net income (loss) | (147,229 | ) | 43,491 | (376,776 | ) | 160,711 | ||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 179 | (35 | ) | 239 | (183 | ) | ||||||||||
Net income (loss) attributable to Belden | (147,408 | ) | 43,526 | (377,015 | ) | 160,894 | ||||||||||
Less: Preferred stock dividends | — | 8,733 | 18,437 | 34,931 | ||||||||||||
Net income (loss) attributable to Belden common stockholders | $ | (147,408 | ) | $ | 34,793 | $ | (395,452 | ) | $ | 125,963 | ||||||
Weighted average number of common shares and equivalents: | ||||||||||||||||
Basic | 45,457 | 39,830 | 42,203 | 40,675 | ||||||||||||
Diluted | 45,684 | 40,031 | 42,416 | 40,956 | ||||||||||||
Basic income (loss) per share attributable to Belden common stockholders: | ||||||||||||||||
Continuing operations attributable to Belden common stockholders | $ | 0.05 | $ | 0.68 | $ | 2.16 | $ | 3.25 | ||||||||
Discontinued operations attributable to Belden common stockholders | (3.29 | ) | 0.19 | (11.53 | ) | (0.16 | ) | |||||||||
Net income (loss) attributable to Belden common stockholders | $ | (3.24 | ) | $ | 0.87 | $ | (9.37 | ) | $ | 3.10 | ||||||
Diluted income (loss) per share attributable to Belden common stockholders: | ||||||||||||||||
Continuing operations attributable to Belden common stockholders | $ | 0.05 | $ | 0.68 | $ | 2.15 | $ | 3.23 | ||||||||
Discontinued operations attributable to Belden common stockholders | (3.29 | ) | 0.19 | (11.53 | ) | (0.16 | ) | |||||||||
Net income (loss) attributable to Belden common stockholders | $ | (3.24 | ) | $ | 0.87 | $ | (9.37 | ) | $ | 3.08 | ||||||
Common stock dividends declared per share | $ | 0.05 | $ | 0.05 | $ | 0.20 | $ | 0.20 |
Enterprise Solutions | Industrial Solutions | Total Segments | ||||||||||
(In thousands, except percentages) | ||||||||||||
For the three months ended December 31, 2019 | ||||||||||||
Segment Revenues | $ | 280,196 | $ | 269,492 | $ | 549,688 | ||||||
Segment EBITDA | 42,988 | 50,787 | 93,775 | |||||||||
Segment EBITDA margin | 15.3 | % | 18.8 | % | 17.1 | % | ||||||
Depreciation expense | 5,384 | 5,035 | 10,419 | |||||||||
Amortization of intangibles | 5,924 | 12,427 | 18,351 | |||||||||
Amortization of software development intangible assets | 55 | 263 | 318 | |||||||||
Severance, restructuring, and acquisition integration costs | 5,479 | 15,499 | 20,978 | |||||||||
Purchase accounting effects of acquisitions | 60 | — | 60 | |||||||||
For the three months ended December 31, 2018 | ||||||||||||
Segment Revenues | $ | 277,352 | $ | 274,700 | $ | 552,052 | ||||||
Segment EBITDA | 50,046 | 53,536 | 103,582 | |||||||||
Segment EBITDA margin | 18.0 | % | 19.5 | % | 18.8 | % | ||||||
Depreciation expense | 4,975 | 4,699 | 9,674 | |||||||||
Amortization of intangibles | 5,497 | 13,196 | 18,693 | |||||||||
Amortization of software development intangible assets | 35 | 8 | 43 | |||||||||
Severance, restructuring, and acquisition integration costs | 746 | 1,424 | 2,170 | |||||||||
Purchase accounting effects of acquisitions | 1,138 | — | 1,138 | |||||||||
For the twelve months ended December 31, 2019 | ||||||||||||
Segment Revenues | $ | 1,081,232 | $ | 1,050,046 | $ | 2,131,278 | ||||||
Segment EBITDA | 162,276 | 188,947 | 351,223 | |||||||||
Segment EBITDA margin | 15.0 | % | 18.0 | % | 16.5 | % | ||||||
Depreciation expense | 20,765 | 19,644 | 40,409 | |||||||||
Amortization of intangibles | 23,500 | 51,109 | 74,609 | |||||||||
Amortization of software development intangible assets | 175 | 350 | 525 | |||||||||
Severance, restructuring, and acquisition integration costs | 11,050 | 15,494 | 26,544 | |||||||||
Purchase accounting effects of acquisitions | 592 | — | 592 | |||||||||
For the twelve months ended December 31, 2018 | ||||||||||||
Segment Revenues | $ | 1,095,900 | $ | 1,069,802 | $ | 2,165,702 | ||||||
Segment EBITDA | 190,910 | 203,746 | 394,656 | |||||||||
Segment EBITDA margin | 17.4 | % | 19.0 | % | 18.2 | % | ||||||
Depreciation expense | 19,374 | 18,935 | 38,309 | |||||||||
Amortization of intangibles | 22,255 | 52,885 | 75,140 | |||||||||
Amortization of software development intangible assets | 71 | 8 | 79 | |||||||||
Severance, restructuring, and acquisition integration costs | 14,863 | 7,762 | 22,625 | |||||||||
Purchase accounting effects of acquisitions | 1,690 | — | 1,690 |
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||
(In thousands) | ||||||||||||||||
Total Segment Revenues | $ | 549,688 | $ | 552,052 | $ | 2,131,278 | $ | 2,165,702 | ||||||||
Deferred revenue adjustments | — | — | — | — | ||||||||||||
Consolidated Revenues | $ | 549,688 | $ | 552,052 | $ | 2,131,278 | $ | 2,165,702 | ||||||||
Total Segment EBITDA | $ | 93,775 | $ | 103,582 | $ | 351,223 | $ | 394,656 | ||||||||
Eliminations | (249 | ) | (600 | ) | (1,337 | ) | (2,218 | ) | ||||||||
Total non-operating pension benefit (cost) | (667 | ) | (1,108 | ) | 1,017 | (99 | ) | |||||||||
Non-operating pension settlement loss | — | 1,342 | — | 1,342 | ||||||||||||
Consolidated Adjusted EBITDA (1) | 92,859 | 103,216 | 350,903 | 393,681 | ||||||||||||
Amortization of intangibles | (18,351 | ) | (18,693 | ) | (74,609 | ) | (75,140 | ) | ||||||||
Interest expense, net | (13,863 | ) | (14,639 | ) | (55,814 | ) | (60,839 | ) | ||||||||
Depreciation expense | (10,419 | ) | (9,674 | ) | (40,409 | ) | (38,309 | ) | ||||||||
Severance, restructuring, and acquisition integration costs | (20,978 | ) | (2,170 | ) | (26,544 | ) | (22,625 | ) | ||||||||
Loss on debt extinguishment | — | — | — | (22,990 | ) | |||||||||||
Amortization of software development intangible assets | (318 | ) | (43 | ) | (525 | ) | (79 | ) | ||||||||
Purchase accounting effects related to acquisitions | (60 | ) | (1,138 | ) | (592 | ) | (1,690 | ) | ||||||||
Loss on sale of assets | — | — | — | (94 | ) | |||||||||||
Non-operating pension settlement loss | — | (1,342 | ) | — | (1,342 | ) | ||||||||||
Costs related to patent litigation | — | — | — | (2,634 | ) | |||||||||||
Gain from patent litigation | — | — | — | 62,141 | ||||||||||||
Income from continuing operations before taxes | $ | 28,870 | $ | 55,517 | $ | 152,410 | $ | 230,080 |
(1) | Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation of Non-GAAP Measures for additional information. |
December 31, 2019 | December 31, 2018 | |||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 407,480 | $ | 407,454 | ||||
Receivables, net | 334,634 | 335,956 | ||||||
Inventories, net | 231,333 | 265,002 | ||||||
Other current assets | 29,172 | 30,590 | ||||||
Current assets of discontinued operations | 375,135 | 219,722 | ||||||
Total current assets | 1,377,754 | 1,258,724 | ||||||
Property, plant and equipment, less accumulated depreciation | 345,918 | 310,960 | ||||||
Operating lease right-of-use assets | 62,251 | — | ||||||
Goodwill | 1,243,669 | 1,206,877 | ||||||
Intangible assets, less accumulated amortization | 339,505 | 359,931 | ||||||
Deferred income taxes | 25,216 | 26,459 | ||||||
Other long-lived assets | 12,446 | 13,249 | ||||||
Long-term assets of discontinued operations | — | 603,121 | ||||||
$ | 3,406,759 | $ | 3,779,321 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 268,466 | $ | 297,498 | ||||
Accrued liabilities | 283,799 | 272,396 | ||||||
Current liabilities of discontinued operations | 170,279 | 147,028 | ||||||
Total current liabilities | 722,544 | 716,922 | ||||||
Long-term debt | 1,439,484 | 1,463,200 | ||||||
Postretirement benefits | 136,227 | 127,748 | ||||||
Deferred income taxes | 48,725 | 36,109 | ||||||
Long-term operating lease liabilities | 55,652 | — | ||||||
Other long-term liabilities | 38,308 | 30,140 | ||||||
Long-term liabilities of discontinued operations | — | 17,614 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock | — | 1 | ||||||
Common stock | 503 | 503 | ||||||
Additional paid-in capital | 811,955 | 1,139,395 | ||||||
Retained earnings | 518,004 | 922,000 | ||||||
Accumulated other comprehensive loss | (63,418 | ) | (74,907 | ) | ||||
Treasury stock | (307,197 | ) | (599,845 | ) | ||||
Total Belden stockholders’ equity | 959,847 | 1,387,147 | ||||||
Noncontrolling interest | 5,972 | 441 | ||||||
Total stockholders’ equity | 965,819 | 1,387,588 | ||||||
$ | 3,406,759 | $ | 3,779,321 |
Twelve Months Ended | ||||||||
December 31, 2019 | December 31, 2018 | |||||||
(In thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | (376,776 | ) | 160,711 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Asset impairment of discontinued operations | 521,441 | — | ||||||
Depreciation and amortization | 139,259 | 148,632 | ||||||
Share-based compensation | 17,751 | 18,497 | ||||||
Loss on debt extinguishment | — | 22,990 | ||||||
Deferred income tax expense (benefit) | (23,540 | ) | 11,300 | |||||
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses: | ||||||||
Receivables | 22,926 | (21,748 | ) | |||||
Inventories | 44,477 | (14,779 | ) | |||||
Accounts payable | (41,527 | ) | (29,401 | ) | ||||
Accrued liabilities | (17,654 | ) | 17,238 | |||||
Income taxes | 5,497 | (4,390 | ) | |||||
Other assets | (16,118 | ) | (18,748 | ) | ||||
Other liabilities | 1,157 | (1,082 | ) | |||||
Net cash provided by operating activities | 276,893 | 289,220 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (110,002 | ) | (97,847 | ) | ||||
Cash used to acquire businesses, net of cash acquired | (74,392 | ) | (84,580 | ) | ||||
Proceeds from disposal of tangible assets | 25 | 1,580 | ||||||
Proceeds from disposal of business | — | 40,171 | ||||||
Net cash used for investing activities | (184,369 | ) | (140,676 | ) | ||||
Cash flows from financing activities: | ||||||||
Payments under borrowing arrangement | — | (484,757 | ) | |||||
Payments under share repurchase program | (50,000 | ) | (175,000 | ) | ||||
Cash dividends paid | (34,439 | ) | (43,169 | ) | ||||
Debt issuance costs paid | — | (7,609 | ) | |||||
Witholding tax payment payments for share-based payment awards | (2,149 | ) | (2,094 | ) | ||||
Redemption of stockholders' rights agreement | — | (411 | ) | |||||
Other | (360 | ) | — | |||||
Borrowings under credit arrangements | — | 431,270 | ||||||
Net cash used for financing activities | (86,948 | ) | (281,770 | ) | ||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | (301 | ) | (7,272 | ) | ||||
Increase (decrease) in cash and cash equivalents | 5,275 | (140,498 | ) | |||||
Cash and cash equivalents, beginning of period | 420,610 | 561,108 | ||||||
Cash and cash equivalents, end of period | $ | 425,885 | $ | 420,610 |
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||
(In thousands, except percentages and per share amounts) | ||||||||||||||||
GAAP revenues | $ | 549,688 | $ | 552,052 | $ | 2,131,278 | $ | 2,165,702 | ||||||||
Deferred revenue adjustments | — | — | — | — | ||||||||||||
Adjusted revenues | $ | 549,688 | $ | 552,052 | $ | 2,131,278 | $ | 2,165,702 | ||||||||
GAAP gross profit | $ | 202,772 | $ | 216,994 | $ | 793,505 | $ | 829,911 | ||||||||
Severance, restructuring, and acquisition integration costs | 2,333 | 1,979 | 3,425 | 17,962 | ||||||||||||
Purchase accounting effects related to acquisitions | 60 | — | 592 | 27 | ||||||||||||
Amortization of software development intangible assets | 318 | 43 | 525 | 79 | ||||||||||||
Adjusted gross profit | $ | 205,483 | $ | 219,016 | $ | 798,047 | $ | 847,979 | ||||||||
GAAP gross profit margin | 36.9 | % | 39.3 | % | 37.2 | % | 38.3 | % | ||||||||
Adjusted gross profit margin | 37.4 | % | 39.7 | % | 37.4 | % | 39.2 | % | ||||||||
GAAP selling, general and administrative expenses | $ | (118,675 | ) | $ | (104,813 | ) | $ | (417,329 | ) | $ | (411,352 | ) | ||||
Severance, restructuring, and acquisition integration costs | 18,645 | 191 | 23,119 | 4,546 | ||||||||||||
Costs related to patent litigation | — | — | — | 2,634 | ||||||||||||
Purchase accounting effects related to acquisitions | — | 1,138 | — | 1,663 | ||||||||||||
Loss on sale of assets | — | — | — | 94 | ||||||||||||
Adjusted selling, general and administrative expenses | $ | (100,030 | ) | $ | (103,484 | ) | $ | (394,210 | ) | $ | (402,415 | ) | ||||
GAAP research and development expenses | $ | (22,346 | ) | $ | (22,223 | ) | $ | (94,360 | ) | $ | (91,552 | ) | ||||
Severance, restructuring, and acquisition integration costs | — | — | — | 117 | ||||||||||||
Adjusted research and development expenses | $ | (22,346 | ) | $ | (22,223 | ) | $ | (94,360 | ) | $ | (91,435 | ) |
GAAP net income (loss) attributable to Belden | $ | (147,408 | ) | $ | 43,526 | $ | (377,015 | ) | $ | 160,894 | ||||||
Loss (income) from discontinued operations, net of tax | 149,759 | (7,526 | ) | 486,667 | 6,433 | |||||||||||
Interest expense, net | 13,863 | 14,639 | 55,814 | 60,839 | ||||||||||||
Income tax expense | 26,340 | 19,552 | 42,519 | 62,936 | ||||||||||||
Non-operating pension settlement loss | — | 1,342 | — | 1,342 | ||||||||||||
Loss on debt extinguishment | — | — | — | 22,990 | ||||||||||||
Noncontrolling interests | 179 | (35 | ) | 239 | (183 | ) | ||||||||||
Total non-operating adjustments | 190,141 | 27,972 | 585,239 | 154,357 | ||||||||||||
Amortization of intangible assets | 18,351 | 18,693 | 74,609 | 75,140 | ||||||||||||
Severance, restructuring, and acquisition integration costs | 20,978 | 2,170 | 26,544 | 22,625 | ||||||||||||
Costs related to patent litigation | — | — | — | 2,634 | ||||||||||||
Purchase accounting effects related to acquisitions | 60 | 1,138 | 592 | 1,690 | ||||||||||||
Amortization of software development intangible assets | 318 | 43 | 525 | 79 | ||||||||||||
Loss on sale of assets | — | — | — | 94 | ||||||||||||
Gain from patent litigation | — | — | — | (62,141 | ) | |||||||||||
Total operating income adjustments | 39,707 | 22,044 | 102,270 | 40,121 | ||||||||||||
Depreciation expense | 10,419 | 9,674 | 40,409 | 38,309 | ||||||||||||
Adjusted EBITDA | $ | 92,859 | $ | 103,216 | $ | 350,903 | $ | 393,681 | ||||||||
GAAP net income (loss) margin | (26.8 | )% | 7.9 | % | (17.7 | )% | 7.4 | % | ||||||||
Adjusted EBITDA margin | 16.9 | % | 18.7 | % | 16.5 | % | 18.2 | % | ||||||||
GAAP net income (loss) attributable to Belden | $ | (147,408 | ) | $ | 43,526 | $ | (377,015 | ) | $ | 160,894 | ||||||
Operating income adjustments from above | 39,707 | 22,044 | 102,270 | 40,121 | ||||||||||||
Loss (income) from discontinued operations, net of tax | 149,759 | (7,526 | ) | 486,667 | 6,433 | |||||||||||
Non-operating pension settlement loss | — | 1,342 | — | 1,342 | ||||||||||||
Loss on debt extinguishment | — | — | — | 22,990 | ||||||||||||
Tax effect of adjustments above | 12,796 | (359 | ) | (1,948 | ) | (5,351 | ) | |||||||||
Amortization expense attributable to noncontrolling interest, net of tax | — | (16 | ) | — | (66 | ) | ||||||||||
Adjusted net income attributable to Belden | $ | 54,854 | $ | 59,011 | $ | 209,974 | $ | 226,363 | ||||||||
GAAP net income (loss) attributable to Belden | $ | (147,408 | ) | $ | 43,526 | $ | (377,015 | ) | $ | 160,894 | ||||||
Loss (income) from discontinued operations, net of tax | 149,759 | (7,526 | ) | 486,667 | 6,433 | |||||||||||
Less: Preferred stock dividends | — | (8,733 | ) | (18,437 | ) | (34,931 | ) | |||||||||
GAAP net income attributable to Belden common stockholders | $ | 2,351 | $ | 27,267 | $ | 91,215 | $ | 132,396 | ||||||||
Adjusted net income attributable to Belden | $ | 54,854 | $ | 59,011 | 209,974 | 226,363 | ||||||||||
Less: Preferred stock dividends | — | (8,733 | ) | (18,437 | ) | (34,931 | ) | |||||||||
Adjusted net income attributable to Belden common stockholders | $ | 54,854 | 50,278 | 191,537 | 191,432 | |||||||||||
GAAP income from continuing operations per diluted share attributable to Belden common stockholders | $ | 0.05 | $ | 0.68 | $ | 2.15 | $ | 3.23 | ||||||||
Adjusted income from continuing operations per diluted share attributable to Belden common stockholders | $ | 1.20 | $ | 1.26 | $ | 4.52 | $ | 4.67 | ||||||||
GAAP and adjusted diluted weighted average shares | 45,684 | 40,031 | 42,416 | 40,956 |
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||
(In thousands) | ||||||||||||||||
GAAP net cash provided by operating activities | $ | 187,376 | $ | 188,361 | $ | 276,893 | $ | 289,220 | ||||||||
Capital expenditures, net of proceeds from the disposal of tangible assets | (35,928 | ) | (34,372 | ) | (109,977 | ) | (96,267 | ) | ||||||||
Non-GAAP free cash flow | $ | 151,448 | $ | 153,989 | $ | 166,916 | $ | 192,953 |
Three Months Ended March 29, 2020 | Year Ended December 31, 2020 | |||
Adjusted income from continuing operations per diluted share attributable to Belden common stockholders | $0.70 - $0.85 | $4.25 - $4.75 | ||
Amortization of intangible assets | (0.29) | (1.14) | ||
Severance, restructuring, and acquisition integration costs | (0.18) | (0.35) | ||
GAAP income from continuing operations per diluted share attributable to Belden common stockholders | $0.23 - $0.38 | $2.76 - $3.26 |