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8-K - FORM 8-K - BELDEN INC. | c64353e8vk.htm |
Exhibit 99.1
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 years results of $0.30 per diluted share; | ||
| Grew revenue 20% year-over-year to $461.6 million; | ||
| Improved the Companys presence in emerging markets with the acquisition of Poliron, a leading Brazilian cable company; | ||
| Enhanced the Companys broadcast business with the acquisition of ICM Corp., Beldens 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 Companys 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 Beldens 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 Companys 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 managements beliefs and
expectations. They are not guarantees of future performance and they involve risk and uncertainty.
The Companys 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 Companys expectations include: the Companys reliance on key distributors in
marketing products; the Companys 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 Companys major geographic markets;
difficulties in realigning manufacturing capacity and capabilities among the Companys global
manufacturing facilities; the competitiveness of the global cable, connectivity and networking
industries; variability in the Companys quarterly and annual effective tax rates; changes in
accounting rules and interpretation of these rules which may affect the Companys reported
earnings; changes in currency exchange rates and political and economic uncertainties in the
countries where the Company conducts business; demand for the Companys products; the cost and
availability of materials including copper, plastic compounds derived from fossil fuels, and other
materials; energy costs; the Companys 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
314-854-8054
Investor.Relations@Belden.com
BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
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)
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)
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
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)
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 | ||||