Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - BELDEN INC. | d457676d8k.htm |
| EX-2.1 - PURCHASE AND SALE AGREEMENT - BELDEN INC. | d457676dex21.htm |
| EX-99.1 - NEWS RELEASE - BELDEN INC. | d457676dex991.htm |
| EX-99.2 - SUPPLEMENTAL SCHEDULE OF QUARTERLY FINANCIAL DATA - BELDEN INC. | d457676dex992.htm |
Exhibit 99.3
BELDEN INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
On December 17, 2012, Belden Inc. (“Belden” or the “Company”) completed the sale of the Thermax and Raydex cable business to Carlisle Companies Incorporated for approximately $265 million. The purchase price is subject to adjustment based on a post-closing analysis of the closing date balance sheet. The following unaudited condensed pro forma consolidated balance sheet of Belden as of September 30, 2012, assumes that the sale of the Thermax and Raydex cable business had been completed as of such date. The following unaudited condensed pro forma consolidated statements of operations of Belden for the nine months ended September 30, 2012 and October 2, 2011 and for the years ended December 31, 2011, 2010, and 2009 assume that the sale of the Thermax and Raydex cable business had been completed as of January 1, 2009. The unaudited pro forma results do not purport to be indicative of the results that would have been obtained if the sale of the Thermax and Raydex cable business had been completed as of such dates.
On July 27, 2012 the Company acquired Miranda Technologies Inc. (“Miranda”), a provider of hardware and software solutions for the broadcast infrastructure industry, for approximately $375 million. Pro forma financial information regarding the acquisition of Miranda is included in a Current Report on Form 8-K filed on October 12, 2012. The operating results of Miranda have been included in the historical consolidated operating results of Belden since July 27, 2012 and Miranda is included in the historical consolidated balance sheet of Belden as of September 30, 2012. On December 10, 2012, the Company acquired PPC Broadband, Inc. (“PPC”), a provider of broadband connectivity solutions, for approximately $516 million. Pro forma financial information related to the acquisition of PPC will be included in a Current Report on Form 8-K to be filed on or before February 25, 2013. The acquisition of PPC and the pro forma effects of Miranda prior to the July 27, 2012 acquisition date are not reflected in the attached unaudited pro forma condensed consolidated financial statements.
BELDEN INC.
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 2012
(Unaudited)
| Pro Forma Adjustments | ||||||||||||||||
| Belden Inc. Historical |
Thermax and Raydex Cable Business (1) |
Other Adjustments (2) |
Belden Inc. Pro Forma |
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| (In thousands) | ||||||||||||||||
| ASSETS | ||||||||||||||||
| Current assets: |
||||||||||||||||
| Cash and cash equivalents |
$ | 385,639 | $ | — | $ | 265,000 | $ | 650,639 | ||||||||
| Receivables, net |
299,936 | (14,256 | ) | — | 285,680 | |||||||||||
| Inventories, net |
208,478 | (13,431 | ) | — | 195,047 | |||||||||||
| Deferred income taxes |
15,648 | — | — | 15,648 | ||||||||||||
| Income tax receivable |
21,471 | — | — | 21,471 | ||||||||||||
| Other current assets |
18,977 | (154 | ) | — | 18,823 | |||||||||||
| Current assets held for sale |
52,829 | — | — | 52,829 | ||||||||||||
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| Total current assets |
1,002,978 | (27,841 | ) | 265,000 | 1,240,137 | |||||||||||
| Property, plant and equipment, less accumulated depreciation |
290,815 | (7,151 | ) | — | 283,664 | |||||||||||
| Goodwill |
516,424 | (11,440 | ) | — | 504,984 | |||||||||||
| Intangible assets, less accumulated amortization |
290,153 | (11,710 | ) | — | 278,443 | |||||||||||
| Deferred income taxes |
— | — | — | — | ||||||||||||
| Other long-lived assets |
75,229 | — | — | 75,229 | ||||||||||||
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| $ | 2,175,599 | $ | (58,142 | ) | $ | 265,000 | $ | 2,382,457 | ||||||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
| Current liabilities: |
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| Accounts payable |
$ | 231,477 | $ | (11,579 | ) | $ | — | $ | 219,898 | |||||||
| Accrued liabilities |
144,598 | (2,750 | ) | 74,000 | 215,848 | |||||||||||
| Current maturities of long-term debt |
12,770 | — | — | 12,770 | ||||||||||||
| Current liabilities held for sale |
20,664 | — | — | 20,664 | ||||||||||||
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| Total current liabilities |
409,509 | (14,329 | ) | 74,000 | 469,180 | |||||||||||
| Long-term debt |
959,762 | — | — | 959,762 | ||||||||||||
| Postretirement benefits |
132,731 | — | — | 132,731 | ||||||||||||
| Deferred income taxes |
118 | 1,280 | 19,000 | 20,398 | ||||||||||||
| Other long-term liabilities |
24,598 | — | — | 24,598 | ||||||||||||
| Stockholders’ equity: |
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| Common stock |
503 | — | — | 503 | ||||||||||||
| Other stockholders' equity |
648,378 | (45,093 | ) | 172,000 | 775,285 | |||||||||||
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| Total stockholders’ equity |
648,881 | (45,093 | ) | 172,000 | 775,788 | |||||||||||
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| $ | 2,175,599 | $ | (58,142 | ) | $ | 265,000 | $ | 2,382,457 | ||||||||
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2
BELDEN INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2012
(Unaudited)
| Belden Inc. Historical |
Thermax and Raydex Cable Business (3) |
Belden Inc. Pro Forma |
||||||||||
| (In thousands, except per share data) | ||||||||||||
| Revenues |
$ | 1,438,700 | $ | 75,648 | $ | 1,363,052 | ||||||
| Cost of sales |
(998,287 | ) | (51,495 | ) | (946,792 | ) | ||||||
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| Gross profit |
440,413 | 24,153 | 416,260 | |||||||||
| Selling, general and administrative expenses |
(261,277 | ) | (5,140 | ) | (256,137 | ) | ||||||
| Research and development |
(48,082 | ) | (648 | ) | (47,434 | ) | ||||||
| Amortization of intangibles |
(13,603 | ) | (458 | ) | (13,145 | ) | ||||||
| Income from equity method investment |
7,254 | — | 7,254 | |||||||||
| Asset impairment |
(29,998 | ) | (94 | ) | (29,904 | ) | ||||||
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| Operating income |
94,707 | 17,813 | 76,894 | |||||||||
| Interest expense |
(38,315 | ) | (7 | ) | (38,308 | ) | ||||||
| Interest income |
733 | — | 733 | |||||||||
| Loss on debt extinguishment |
(50,585 | ) | — | (50,585 | ) | |||||||
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| Income (loss) from continuing operations before taxes |
6,540 | 17,806 | (11,266 | ) | ||||||||
| Income tax benefit (expense) |
8,991 | (6,033 | ) | 15,024 | ||||||||
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| Income from continuing operations |
$ | 15,531 | $ | 11,773 | $ | 3,758 | ||||||
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| Weighted average number of common shares and equivalents: |
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| Basic |
45,410 | 45,410 | ||||||||||
| Diluted |
46,249 | 46,249 | ||||||||||
| Income from continuing operations per share: |
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| Basic |
$ | 0.34 | $ | 0.08 | ||||||||
| Diluted |
0.34 | 0.08 | ||||||||||
3
BELDEN INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
NINE MONTHS ENDED OCTOBER 2, 2011
(Unaudited)
| Belden Inc. Historical |
Thermax and Raydex Cable Business (3) |
Belden Inc. Pro Forma |
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| (In thousands, except per share data) | ||||||||||||
| Revenues |
$ | 1,517,592 | $ | 76,725 | $ | 1,440,867 | ||||||
| Cost of sales |
(1,077,772 | ) | (54,827 | ) | (1,022,945 | ) | ||||||
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| Gross profit |
439,820 | 21,898 | 417,922 | |||||||||
| Selling, general and administrative expenses |
(244,671 | ) | (5,243 | ) | (239,428 | ) | ||||||
| Research and development |
(41,800 | ) | (701 | ) | (41,099 | ) | ||||||
| Amortization of intangibles |
(10,397 | ) | (467 | ) | (9,930 | ) | ||||||
| Income from equity method investment |
9,196 | — | 9,196 | |||||||||
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| Operating income |
152,148 | 15,487 | 136,661 | |||||||||
| Interest expense |
(36,246 | ) | (4 | ) | (36,242 | ) | ||||||
| Interest income |
526 | — | 526 | |||||||||
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| Income from continuing operations before taxes |
116,428 | 15,483 | 100,945 | |||||||||
| Income tax expense |
(28,164 | ) | (5,754 | ) | (22,410 | ) | ||||||
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| Income from continuing operations |
$ | 88,264 | $ | 9,729 | $ | 78,535 | ||||||
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| Weighted average number of common shares and equivalents: |
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| Basic |
47,317 | 47,317 | ||||||||||
| Diluted |
48,329 | 48,329 | ||||||||||
| Income from continuing operations per share: |
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| Basic |
$ | 1.87 | $ | 1.66 | ||||||||
| Diluted |
1.83 | 1.63 | ||||||||||
4
BELDEN INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2011
(Unaudited)
| Belden Inc. Historical |
Thermax and Raydex Cable Business (3) |
Belden Inc. Pro Forma |
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| (In thousands, except per share data) | ||||||||||||
| Revenues |
$ | 1,981,953 | $ | 99,766 | $ | 1,882,187 | ||||||
| Cost of sales |
(1,410,134 | ) | (69,468 | ) | (1,340,666 | ) | ||||||
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| Gross profit |
571,819 | 30,298 | 541,521 | |||||||||
| Selling, general and administrative expenses |
(325,950 | ) | (6,916 | ) | (319,034 | ) | ||||||
| Research and development |
(55,711 | ) | (959 | ) | (54,752 | ) | ||||||
| Amortization of intangibles |
(13,772 | ) | (623 | ) | (13,149 | ) | ||||||
| Income from equity method investment |
13,169 | — | 13,169 | |||||||||
| Asset impairment |
(2,549 | ) | — | (2,549 | ) | |||||||
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| Operating income |
187,006 | 21,800 | 165,206 | |||||||||
| Interest expense |
(48,126 | ) | (8 | ) | (48,118 | ) | ||||||
| Interest income |
1,011 | — | 1,011 | |||||||||
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| Income from continuing operations before taxes |
139,891 | 21,792 | 118,099 | |||||||||
| Income tax expense |
(24,638 | ) | (7,847 | ) | (16,791 | ) | ||||||
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| Income from continuing operations |
$ | 115,253 | $ | 13,945 | $ | 101,308 | ||||||
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| Weighted average number of common shares and equivalents: |
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| Basic |
47,109 | 47,109 | ||||||||||
| Diluted |
48,104 | 48,104 | ||||||||||
| Income from continuing operations per share: |
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| Basic |
$ | 2.45 | $ | 2.15 | ||||||||
| Diluted |
2.40 | 2.11 | ||||||||||
5
BELDEN INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2010
(Unaudited)
| Belden Inc. Historical |
Thermax and Raydex Cable Business (3) |
Belden Inc. Pro Forma |
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| (In thousands, except per share data) | ||||||||||||
| Revenues |
$ | 1,617,090 | $ | 73,704 | $ | 1,543,386 | ||||||
| Cost of sales |
(1,149,796 | ) | (53,250 | ) | (1,096,546 | ) | ||||||
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| Gross profit |
467,294 | 20,454 | 446,840 | |||||||||
| Selling, general and administrative expenses |
(279,677 | ) | (6,407 | ) | (273,270 | ) | ||||||
| Research and development |
(42,605 | ) | (875 | ) | (41,730 | ) | ||||||
| Amortization of intangibles |
(11,189 | ) | (622 | ) | (10,567 | ) | ||||||
| Income from equity method investment |
11,940 | — | 11,940 | |||||||||
| Asset impairment |
(16,574 | ) | — | (16,574 | ) | |||||||
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| Operating income |
129,189 | 12,550 | 116,639 | |||||||||
| Interest expense |
(49,826 | ) | (4 | ) | (49,822 | ) | ||||||
| Interest income |
1,184 | — | 1,184 | |||||||||
| Other income |
1,465 | — | 1,465 | |||||||||
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| Income from continuing operations before taxes |
82,012 | 12,546 | 69,466 | |||||||||
| Income tax expense |
(12,714 | ) | (4,524 | ) | (8,190 | ) | ||||||
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| Income from continuing operations |
$ | 69,298 | $ | 8,022 | $ | 61,276 | ||||||
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| Weighted average number of common shares and equivalents: |
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| Basic |
46,805 | 46,805 | ||||||||||
| Diluted |
47,783 | 47,783 | ||||||||||
| Income from continuing operations per share: |
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| Basic |
$ | 1.48 | $ | 1.31 | ||||||||
| Diluted |
1.45 | 1.28 | ||||||||||
6
BELDEN INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2009
(Unaudited)
| Belden Inc. Historical |
Thermax and Raydex Cable Business (3) |
Belden Inc. Pro Forma |
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| (In thousands, except per share data) | ||||||||||||
| Revenues |
$ | 1,362,016 | $ | 57,928 | $ | 1,304,088 | ||||||
| Cost of sales |
(974,331 | ) | (42,089 | ) | (932,242 | ) | ||||||
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| Gross profit |
387,685 | 15,839 | 371,846 | |||||||||
| Selling, general and administrative expenses |
(262,473 | ) | (6,587 | ) | (255,886 | ) | ||||||
| Research and development |
(40,441 | ) | (818 | ) | (39,623 | ) | ||||||
| Amortization of intangibles |
(9,871 | ) | (623 | ) | (9,248 | ) | ||||||
| Income from equity method investment |
6,405 | — | 6,405 | |||||||||
| Asset impairment |
(27,751 | ) | (2,506 | ) | (25,245 | ) | ||||||
| Loss on sale of assets |
(17,184 | ) | — | (17,184 | ) | |||||||
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| Operating income |
36,370 | 5,305 | 31,065 | |||||||||
| Interest expense |
(41,962 | ) | (4 | ) | (41,958 | ) | ||||||
| Interest income |
1,043 | — | 1,043 | |||||||||
| Other expense |
(1,541 | ) | — | (1,541 | ) | |||||||
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| Income (loss) from continuing operations before taxes |
(6,090 | ) | 5,301 | (11,391 | ) | |||||||
| Income tax benefit (expense) |
(1,175 | ) | (2,345 | ) | 1,170 | |||||||
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| Income (loss) from continuing operations |
$ | (7,265 | ) | $ | 2,956 | $ | (10,221 | ) | ||||
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| Weighted average number of common shares and equivalents: |
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| Basic |
46,594 | 46,594 | ||||||||||
| Diluted |
46,594 | 46,594 | ||||||||||
| Income from continuing operations per share: |
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| Basic |
$ | (0.16 | ) | $ | (0.22 | ) | ||||||
| Diluted |
(0.16 | ) | (0.22 | ) | ||||||||
7
BELDEN INC.
NOTES TO PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
| (1) | Elimination of the Thermax and Raydex cable business assets and liabilities (intercompany balances are excluded) from Belden’s historical net assets as a result of the disposition. |
| (2) | Reflects other effects of the disposition including: (i) the cash proceeds of $265 million received at closing, (ii) transaction costs, and (iii) tax adjustments related to the disposition. The estimated after-tax gain on the sale of the Thermax and Raydex cable business assuming the disposition closed on September 30, 2012 is approximately $127 million and is included in Other stockholders’ equity. The actual gain will be determined as of the closing date, December 17, 2012, and could be materially different than this estimate. |
| (3) | Elimination of the Thermax and Raydex cable business revenues and expenses from Belden’s historical results as a result of the disposition. |
8