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8-K - FORM 8-K - BELDEN INC.c64353e8vk.htm
Exhibit 99.1
         
(BELDEN LOGO)
  7733 Forsyth Boulevard   Phone: 314.854.8000
  Suite 800   Fax: 314.854.8003
  St. Louis, Missouri 63105    
      www.Belden.com
News Release
Belden Reports Solid First Quarter 2011 Results; Raises Full-Year Guidance
First Quarter Highlights
    Increased earnings from continuing operations per diluted share to $0.46, up 53% over last year’s results of $0.30 per diluted share;
 
    Grew revenue 20% year-over-year to $461.6 million;
 
    Improved the Company’s presence in emerging markets with the acquisition of Poliron, a leading Brazilian cable company;
 
    Enhanced the Company’s broadcast business with the acquisition of ICM Corp., Belden’s second broadcast connectivity acquisition in the past six months; and
 
    Raised full-year guidance for fiscal 2011 to revenues of $1.96 — $2.00 billion and income from continuing operations per diluted share of $2.15 — $2.30, up from prior guidance of $1.85 — $1.90 billion and $2.05 — $2.25, respectively.
St. Louis, Missouri — April 27, 2011 — Belden Inc. (NYSE: BDC), a global leader in signal transmission solutions for mission critical applications, today reported fiscal first quarter 2011 results for the period ended April 3, 2011.
First Quarter Results
Revenue for the quarter totaled $461.6 million, up $77.2 million or 20% compared to $384.4 million in the first quarter 2010. Earnings from continuing operations per diluted share for the quarter totaled $0.46, compared to $0.30 for the period ended April 4, 2010.
Results for the current quarter include the acquisitions of GarrettCom and the Thomas & Betts communications products business completed in the fourth quarter 2010, plus the acquisition of ICM Corp. completed in January 2011. Due to the closing of the Poliron transaction on April 1, 2011, first quarter 2011 revenues and earnings were unaffected by that acquisition.
John Stroup, President and CEO of Belden Inc., said, “We are benefiting from strategic portfolio actions that were immediately accretive to earnings and are expected to contribute increasingly to our business over the long term. In addition to these changes to our portfolio, we are experiencing a return to growth in many of our end markets, particularly in the industrial sector. Further, we have been able to leverage this growth into expanded operating margin and continued investment in our strategic priorities.”
Mr. Stroup continued, “We also recently expanded the Company’s financial capacity with the execution of a 5-year, $400 million revolving credit facility. This new facility offers significant improvements in the flexibility and cost of any future short-term borrowings.”

 


 

Belden Reports Solid First Quarter 2011 Results; Raises Full Year Guidance— Page 2 of 3
Outlook
“Based on this very solid start to the year, I am increasingly confident that Belden will deliver another year of improved operating performance in 2011. We are well positioned on a global basis despite minor disruptions to Belden’s business resulting from the earthquake in Japan and turmoil in the Middle East and North Africa, which have been incorporated in our forecast,” said Mr. Stroup.
The Company expects second quarter 2011 revenues to be $510 — $515 million and income from continuing operations per diluted share of $0.58 — $0.61. For the full year ending December 31, 2011, the Company expects revenues to be $1.96 — $2.00 billion and income from continuing operations per diluted share of $2.15 — $2.30.
Earnings Conference Call
Management will host a conference call today at 10:30 a.m. Eastern to discuss results of the quarter. The listen-only audio of the conference call will be broadcast live via the Internet at http://investor.belden.com. The dial-in number for participants in the U.S. is 866-304-1238; the dial-in number for participants outside the U.S. is 913-312-6650. A replay of this conference call will remain accessible in the investor relations section of the Company’s Web site for a limited time.
Forward Looking Statements
Statements in this release other than historical facts are “forward looking statements” made in reliance upon the safe harbor of the Private Securities Litigation Reform Act of 1995. Forward looking statements include any 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 beliefs and expectations. They are not guarantees of future performance and they involve risk and uncertainty. The Company’s actual results may differ materially from these expectations. There can be no assurance that the recent improvement in the global economy will continue. Turbulence in financial markets may increase our borrowing costs. Additional factors that may cause actual results to differ from the Company’s expectations include: the Company’s reliance 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 cable, connectivity and networking industries; 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, 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

 


 

Belden Reports Solid First Quarter 2011 Results; Raises Full Year Guidance— Page 3 of 3
intangible assets; security risks and the potential for business interruption from operating in volatile countries; 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, 2010, filed with the SEC on February 25, 2011. Belden disclaims any duty to update any forward looking statements as a result of new information, future developments, or otherwise.
About Belden
St. Louis-based Belden Inc. designs, manufactures, and markets cable, connectivity, and networking products in markets including industrial automation, enterprise, transportation, infrastructure, and consumer electronics. It has approximately 6,900 employees, and provides value for industrial automation, enterprise, education, healthcare, entertainment and broadcast, sound and security, transportation, infrastructure, consumer electronics and other industries. Belden has manufacturing capabilities in North America, Europe, and Asia, and a market presence in nearly every region of the world. Belden was founded in 1902, and today is a leader with some of the strongest brands in the signal transmission industry. For more information, visit www.belden.com.
Contact:
Belden Investor Relations
314-854-8054
Investor.Relations@Belden.com

 


 

BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
                 
    Three Months Ended  
    April 3, 2011     April 4, 2010  
    (In thousands, except per share amounts)  
Revenues
  $ 461,628     $ 384,424  
Cost of sales
    (331,173 )     (274,014 )
 
           
Gross profit
    130,455       110,410  
Selling, general and administrative expenses
    (74,936 )     (68,735 )
Research and development
    (13,629 )     (10,308 )
Amortization of intangibles
    (3,679 )     (2,713 )
Income from equity method investment
    3,862       2,641  
 
           
Operating income
    42,073       31,295  
Interest expense
    (11,808 )     (12,946 )
Interest income
    159       182  
 
           
Income from continuing operations before taxes
    30,424       18,531  
Income tax expense
    (8,406 )     (4,201 )
 
           
Income from continuing operations
    22,018       14,330  
Loss from discontinued operations, net of tax
    (128 )     (2,583 )
 
           
Net income
  $ 21,890     $ 11,747  
 
           
 
               
Weighted average number of common shares and equivalents:
               
Basic
    47,209       46,697  
Diluted
    48,330       47,510  
 
           
 
               
Basic income (loss) per share
               
Continuing operations
  $ 0.47     $ 0.31  
Discontinued operations
    (0.01 )     (0.06 )
 
           
Net income
  $ 0.46     $ 0.25  
 
           
 
               
Diluted income (loss) per share
               
Continuing operations
  $ 0.46     $ 0.30  
Discontinued operations
    (0.01 )     (0.05 )
 
           
Net income
  $ 0.45     $ 0.25  
 
           
 
               
Dividends declared per share
  $ 0.05     $ 0.05  

 


 

BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)
                                                 
                            Total              
    Americas     EMEA     Asia Pacific     Segments     Eliminations     Total  
    (In thousands)  
Three Months Ended April 3, 2011
                                               
External customer revenues
  $ 276,998     $ 103,690     $ 80,940     $ 461,628     $     $ 461,628  
Affiliate revenues
    12,068       22,666       101       34,835       (34,835 )      
 
                                   
Total revenues
  $ 289,066     $ 126,356     $ 81,041     $ 496,463     $ (34,835 )   $ 461,628  
 
                                               
Operating income
  $ 31,572     $ 17,098     $ 6,373     $ 55,043     $ (12,970 )   $ 42,073  
 
                                               
Three Months Ended April 4, 2010
                                               
External customer revenues
  $ 217,929     $ 90,550     $ 75,945     $ 384,424     $     $ 384,424  
Affiliate revenues
    12,737       14,743             27,480       (27,480 )      
 
                                   
Total revenues
  $ 230,666     $ 105,293     $ 75,945     $ 411,904     $ (27,480 )   $ 384,424  
 
                                               
Operating income
  $ 23,788     $ 11,061     $ 5,710     $ 40,559     $ (9,264 )   $ 31,295  

 


 

BELDEN INC.
SUPPLEMENTAL PRODUCT GROUP INFORMATION
(Unaudited)
                                 
    Americas     EMEA     Asia Pacific     Total  
    (In thousands)  
Three Months Ended April 3, 2011
                               
Cable products
  $ 211,106     $ 43,211     $ 64,811     $ 319,128  
Networking products
    26,614       32,593       12,048       71,255  
Connectivity products
    39,278       27,886       4,081       71,245  
 
                       
Total revenues
  $ 276,998     $ 103,690     $ 80,940     $ 461,628  
 
                       
 
                               
Three Months Ended April 4, 2010
                               
Cable products
  $ 186,751     $ 39,879     $ 64,681     $ 291,311  
Networking products
    13,309       28,374       7,575       49,258  
Connectivity products
    17,869       22,297       3,689       43,855  
 
                       
Total revenues
  $ 217,929     $ 90,550     $ 75,945     $ 384,424  
 
                       

 


 

BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
                 
    April 3, 2011     December 31, 2010  
    (Unaudited)          
    (In thousands)  
ASSETS
Current assets:
               
Cash and cash equivalents
  $ 323,085     $ 358,653  
Receivables, net
    322,556       298,266  
Inventories, net
    208,080       175,659  
Deferred income taxes
    9,231       9,473  
Other current assets
    19,914       18,804  
 
           
 
               
Total current assets
    882,866       860,855  
 
               
Property, plant and equipment, less accumulated depreciation
    286,637       278,866  
Goodwill
    353,772       322,556  
Intangible assets, less accumulated amortization
    158,755       143,820  
Deferred income taxes
    28,113       27,565  
Other long-lived assets
    68,646       62,822  
 
           
 
               
 
  $ 1,778,789     $ 1,696,484  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
               
Accounts payable
  $ 228,585     $ 212,084  
Accrued liabilities
    156,923       145,840  
 
           
 
               
Total current liabilities
    385,508       357,924  
 
               
Long-term debt
    551,056       551,155  
Postretirement benefits
    118,668       112,426  
Other long-term liabilities
    36,327       36,464  
Stockholders’ equity:
               
Common stock
    503       503  
Additional paid-in capital
    595,305       595,519  
Retained earnings
    191,063       171,568  
Accumulated other comprehensive income (loss)
    13,838       (8,919 )
Treasury stock
    (113,479 )     (120,156 )
 
           
 
               
Total stockholders’ equity
    687,230       638,515  
 
           
 
               
 
  $ 1,778,789     $ 1,696,484  
 
           

 


 

BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited)
                 
    Three Months Ended  
    April 3, 2011     April 4, 2010  
    (In thousands)  
Cash flows from operating activities:
               
Net income
  $ 21,890     $ 11,747  
Adjustments to reconcile net income to net cash used for operating activities:
               
Depreciation and amortization
    12,860       14,614  
Share-based compensation
    2,925       3,325  
Pension funding less than (greater than) pension expense
    1,613       (6,004 )
Provision for inventory obsolescence
    878       919  
Tax deficiency (benefit) related to share-based compensation
    (1,668 )     278  
Income from equity method investment
    (3,862 )     (2,641 )
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses:
               
Receivables
    (12,431 )     (20,255 )
Inventories
    (24,622 )     (12,520 )
Accounts payable
    10,528       18,429  
Accrued liabilities
    (30,638 )     (21,293 )
Accrued taxes
    7,347       (1,191 )
Other assets
    (794 )     3,298  
Other liabilities
    347       (1,913 )
 
           
Net cash used for operating activities
    (15,627 )     (13,207 )
 
               
Cash flows from investing activities:
               
Cash used to acquire businesses, net of cash acquired
    (23,192 )      
Capital expenditures
    (6,798 )     (7,002 )
Proceeds from disposal of tangible assets
    1,136       1,824  
Cash provided by other investing activities
          163  
 
           
Net cash used for investing activities
    (28,854 )     (5,015 )
 
               
Cash flows from financing activities:
               
Payments under borrowing arrangements
          (46,268 )
Cash dividends paid
    (2,392 )     (2,361 )
Tax benefit (deficiency) related to share-based compensation
    1,668       (278 )
Proceeds from exercise of stock options
    3,952       543  
 
           
Net cash provided by (used for) financing activities
    3,228       (48,364 )
 
               
Effect of foreign currency exchange rate changes on cash and cash equivalents
    5,685       (3,410 )
 
           
 
               
Decrease in cash and cash equivalents
    (35,568 )     (69,996 )
Cash and cash equivalents, beginning of period
    358,653       308,879  
 
           
Cash and cash equivalents, end of period
  $ 323,085     $ 238,883