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| 8-K - 8-K - BELDEN INC. | form8-k_q12017.htm |
Exhibit 99.1
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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 Solid Results for First Quarter 2017
St. Louis, Missouri - May 3, 2017 - Belden Inc. (NYSE: BDC), a global leader in high quality, end-to-end signal transmission solutions for mission-critical applications, today reported fiscal first quarter 2017 results for the period ended April 2, 2017.
First Quarter 2017
On a GAAP basis, revenues for the quarter totaled $551.4 million, increasing $9.9 million, or 1.8%, compared to $541.5 million in the first quarter 2016. Net income was $25.7 million, an increase of $9.2 million compared to the prior-year period. Net income as a percentage of revenues was 4.7%, increasing 170 basis points from 3.0% in the prior-year period. EPS totaled $0.40 compared to $0.39 in the first quarter 2016. The current year EPS includes a $0.20 per share dilutive impact from the mandatory convertible preferred stock.
Revenues for the quarter totaled $551.4 million, increasing $7.6 million, or 1.4%, compared to adjusted revenues of $543.8 million in the first quarter 2016. Adjusted EBITDA margin in the first quarter was 16.9%, increasing 50 basis points from 16.4% in the year-ago period. Adjusted net income was $47.8 million, an increase of $5.1 million compared to the prior-year period. Adjusted net income as a percentage of revenues was 8.7%, increasing 90 basis points from 7.8% in the prior-year period. Adjusted EPS was $0.92 compared to $1.01 in the first quarter 2016. The current year EPS includes a $0.20 per share dilutive impact from the mandatory convertible preferred stock. Adjusted results are non-GAAP measures, and a non-GAAP reconciliation table is provided as an appendix to this release.
John Stroup, President, CEO, and Chairman of Belden Inc., said, “The quarter unfolded as expected. Favorable secular trends, solid execution, and our attractive portfolio drove another quarter of organic growth. Furthermore, we continue to expand margins as we benefit from our robust Lean enterprise system.”
Outlook
“We are pleased with the solid start to the year and are encouraged by accelerating order growth and notable project wins. We are on track to meet our commitments for the full year 2017, and well positioned with a number of attractive inorganic opportunities,” said Mr. Stroup.
The Company expects second quarter 2017 revenues to be $595 - $615 million. For the full year ending December 31, 2017, the Company continues to expect revenues to be $2.355 - $2.405 billion.
The Company expects second quarter 2017 GAAP EPS to be $0.70 - $0.80. For the full year ending December 31, 2017, the Company now expects GAAP EPS to be $3.31 - $3.56, compared to the previously guided range of $3.35 - $3.60.
The Company expects second quarter 2017 adjusted EPS to be $1.15 - $1.25. For the full year ending December 31, 2017, the Company continues to expect adjusted EPS to be $4.95 - $5.20.
Segment Combination
In the first quarter, we formed a new segment called Network Solutions to leverage the Company’s strengths in networking, IoT, and cybersecurity technologies. This new segment represents the combination of the prior Industrial IT and Network Security segments. The formation is a natural evolution in our organic and inorganic strategies for a range of industrial and non-industrial applications. As a result of this change, the Company now has four reportable segments: Broadcast Solutions, Enterprise Solutions,
Industrial Solutions, and Network Solutions. Prior period segment information has been revised to conform to the change in the composition of reportable segments and is included as an appendix to this release.
Earnings Conference Call
Management will host a conference call today at 8:30 am ET 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 888-339-3466; the dial-in number for participants outside the U.S. is 719-325-2360. 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
(Unaudited)
Three Months Ended | ||||||||
April 2, 2017 | April 3, 2016 | |||||||
(In thousands, except per share data) | ||||||||
Revenues | $ | 551,381 | $ | 541,497 | ||||
Cost of sales | (329,267 | ) | (316,462 | ) | ||||
Gross profit | 222,114 | 225,035 | ||||||
Selling, general and administrative expenses | (112,586 | ) | (122,406 | ) | ||||
Research and development | (34,522 | ) | (36,133 | ) | ||||
Amortization of intangibles | (23,669 | ) | (25,532 | ) | ||||
Operating income | 51,337 | 40,964 | ||||||
Interest expense, net | (23,506 | ) | (24,396 | ) | ||||
Income before taxes | 27,831 | 16,568 | ||||||
Income tax expense | (2,250 | ) | (210 | ) | ||||
Net income | 25,581 | 16,358 | ||||||
Less: Net loss attributable to noncontrolling interest | (106 | ) | (99 | ) | ||||
Net income attributable to Belden | 25,687 | 16,457 | ||||||
Less: Preferred stock dividends | 8,733 | — | ||||||
Net income attributable to Belden common stockholders | $ | 16,954 | $ | 16,457 | ||||
Weighted average number of common shares and equivalents: | ||||||||
Basic | 42,216 | 42,008 | ||||||
Diluted | 42,675 | 42,387 | ||||||
Basic income per share attributable to Belden common stockholders: | $ | 0.40 | $ | 0.39 | ||||
Diluted income per share attributable to Belden common stockholders: | $ | 0.40 | $ | 0.39 | ||||
Common stock dividends declared per share | $ | 0.05 | $ | 0.05 | ||||
BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)
Broadcast Solutions | Enterprise Solutions | Industrial Solutions | Network Solutions | Total Segments | ||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||
For the three months ended April 2, 2017 | ||||||||||||||||||||
Segment Revenues | $ | 168,596 | $ | 145,682 | $ | 146,181 | $ | 90,922 | $ | 551,381 | ||||||||||
Segment EBITDA | 25,400 | 24,100 | 25,733 | 17,877 | 93,110 | |||||||||||||||
Segment EBITDA margin | 15.1 | % | 16.5 | % | 17.6 | % | 19.7 | % | 16.9 | % | ||||||||||
Depreciation expense | 3,949 | 2,599 | 3,206 | 1,629 | 11,383 | |||||||||||||||
Amortization of intangibles | 10,015 | 424 | 642 | 12,588 | 23,669 | |||||||||||||||
Severance, restructuring, and acquisition integration costs | 408 | 4,873 | 1,121 | 198 | 6,600 | |||||||||||||||
For the three months ended April 3, 2016 | ||||||||||||||||||||
Segment Revenues | $ | 171,272 | $ | 135,892 | $ | 141,091 | $ | 95,545 | $ | 543,800 | ||||||||||
Segment EBITDA | 23,267 | 23,736 | 22,987 | 20,076 | 90,066 | |||||||||||||||
Segment EBITDA margin | 13.6 | % | 17.5 | % | 16.3 | % | 21.0 | % | 16.6 | % | ||||||||||
Depreciation expense | 3,962 | 3,389 | 2,718 | 1,594 | 11,663 | |||||||||||||||
Amortization of intangibles | 12,931 | 429 | 591 | 11,581 | 25,532 | |||||||||||||||
Severance, restructuring, and acquisition integration costs | 4,378 | 500 | 865 | 2,665 | 8,408 | |||||||||||||||
Purchase accounting effects related to acquisitions | 195 | — | — | — | 195 | |||||||||||||||
Deferred gross profit adjustments | 614 | — | — | 1,689 | 2,303 | |||||||||||||||
For the three months ended July 3, 2016 | ||||||||||||||||||||
Segment Revenues | $ | 193,521 | $ | 160,401 | $ | 147,808 | $ | 101,651 | $ | 603,381 | ||||||||||
Segment EBITDA | 29,505 | 29,575 | 27,064 | 22,191 | 108,335 | |||||||||||||||
Segment EBITDA margin | 15.2 | % | 18.4 | % | 18.3 | % | 21.8 | % | 18.0 | % | ||||||||||
Depreciation expense | 4,061 | 3,429 | 2,709 | 1,788 | 11,987 | |||||||||||||||
Amortization of intangibles | 13,420 | 432 | 601 | 11,810 | 26,263 | |||||||||||||||
Severance, restructuring, and acquisition integration costs | 1,319 | 1,207 | 2,371 | 972 | 5,869 | |||||||||||||||
Deferred gross profit adjustments | 494 | — | — | 1,256 | 1,750 | |||||||||||||||
For the three months ended October 2, 2016 | ||||||||||||||||||||
Segment Revenues | $ | 196,173 | $ | 156,658 | $ | 149,847 | $ | 99,790 | $ | 602,468 | ||||||||||
Segment EBITDA | 36,545 | 27,294 | 23,649 | 24,448 | 111,936 | |||||||||||||||
Segment EBITDA margin | 18.6 | % | 17.4 | % | 15.8 | % | 24.5 | % | 18.6 | % | ||||||||||
Depreciation expense | 4,063 | 3,210 | 2,738 | 1,592 | 11,603 | |||||||||||||||
Amortization of intangibles | 10,955 | 431 | 604 | 11,818 | 23,808 | |||||||||||||||
Severance, restructuring, and acquisition integration costs | 174 | 5,573 | 4,746 | 2,302 | 12,795 | |||||||||||||||
Deferred gross profit adjustments | 283 | — | — | 1,076 | 1,359 | |||||||||||||||
For the three months ended December 31, 2016 | ||||||||||||||||||||
Segment Revenues | $ | 208,787 | $ | 150,237 | $ | 146,730 | $ | 102,402 | $ | 608,156 | ||||||||||
Segment EBITDA | 48,553 | 20,693 | 27,548 | 26,058 | 122,852 | |||||||||||||||
Segment EBITDA margin | 23.3 | % | 13.8 | % | 18.8 | % | 25.4 | % | 20.2 | % | ||||||||||
Depreciation expense | 4,143 | 3,198 | 2,873 | 1,741 | 11,955 | |||||||||||||||
Amortization of intangibles | 9,942 | 426 | 598 | 11,816 | 22,782 | |||||||||||||||
Severance, restructuring, and acquisition integration costs | 4,543 | 4,682 | 1,941 | 532 | 11,698 | |||||||||||||||
Purchase accounting effects related to acquisitions | (3,186 | ) | 912 | — | — | (2,274 | ) | |||||||||||||
Deferred gross profit adjustments | 383 | — | — | 892 | 1,275 | |||||||||||||||
Patent settlement | (5,554 | ) | — | — | — | (5,554 | ) | |||||||||||||
Impairment of assets held for sale | — | — | 15,731 | — | 15,731 | |||||||||||||||
BELDEN INC.
OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS
(Unaudited)
Three Months Ended | ||||||||
April 2, 2017 | April 3, 2016 | |||||||
(In thousands) | ||||||||
Total Segment Revenues | $ | 551,381 | $ | 543,800 | ||||
Deferred revenue adjustments | — | (2,303 | ) | |||||
Consolidated Revenues | $ | 551,381 | $ | 541,497 | ||||
Total Segment EBITDA | $ | 93,110 | $ | 90,066 | ||||
Income (loss) from equity method investment | 1,007 | (170 | ) | |||||
Eliminations | (1,128 | ) | (831 | ) | ||||
Consolidated Adjusted EBITDA (1) | 92,989 | 89,065 | ||||||
Amortization of intangibles | (23,669 | ) | (25,532 | ) | ||||
Depreciation expense | (11,383 | ) | (11,663 | ) | ||||
Severance, restructuring, and acquisition integration costs | (6,600 | ) | (8,408 | ) | ||||
Deferred gross profit adjustments | — | (2,303 | ) | |||||
Purchase accounting effects related to acquisitions | — | (195 | ) | |||||
Consolidated operating income | 51,337 | 40,964 | ||||||
Interest expense, net | (23,506 | ) | (24,396 | ) | ||||
Consolidated income from continuing operations before taxes | $ | 27,831 | $ | 16,568 | ||||
(1) | Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation of Non-GAAP Measures for additional information. |
BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
April 2, 2017 | December 31, 2016 | |||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 815,924 | $ | 848,116 | ||||
Receivables, net | 381,704 | 388,059 | ||||||
Inventories, net | 218,404 | 190,408 | ||||||
Other current assets | 36,475 | 29,176 | ||||||
Assets held for sale | 25,916 | 23,193 | ||||||
Total current assets | 1,478,423 | 1,478,952 | ||||||
Property, plant and equipment, less accumulated depreciation | 311,393 | 309,291 | ||||||
Goodwill | 1,389,264 | 1,385,995 | ||||||
Intangible assets, less accumulated amortization | 538,382 | 560,082 | ||||||
Deferred income taxes | 34,445 | 33,706 | ||||||
Other long-lived assets | 35,734 | 38,777 | ||||||
$ | 3,787,641 | $ | 3,806,803 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 264,079 | $ | 258,203 | ||||
Accrued liabilities | 255,970 | 310,340 | ||||||
Liabilities held for sale | 1,661 | 1,736 | ||||||
Total current liabilities | 521,710 | 570,279 | ||||||
Long-term debt | 1,641,929 | 1,620,161 | ||||||
Postretirement benefits | 105,877 | 104,050 | ||||||
Deferred income taxes | 15,549 | 14,276 | ||||||
Other long-term liabilities | 36,455 | 36,720 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock | 1 | 1 | ||||||
Common stock | 503 | 503 | ||||||
Additional paid-in capital | 1,115,683 | 1,116,090 | ||||||
Retained earnings | 798,642 | 783,812 | ||||||
Accumulated other comprehensive loss | (48,478 | ) | (39,067 | ) | ||||
Treasury stock | (401,071 | ) | (401,026 | ) | ||||
Total Belden stockholders’ equity | 1,465,280 | 1,460,313 | ||||||
Noncontrolling interest | 841 | 1,004 | ||||||
Total stockholders’ equity | 1,466,121 | 1,461,317 | ||||||
$ | 3,787,641 | $ | 3,806,803 | |||||
BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited)
Three Months Ended | ||||||||
April 2, 2017 | April 3, 2016 | |||||||
(In thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 25,581 | $ | 16,358 | ||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||
Depreciation and amortization | 35,052 | 37,195 | ||||||
Share-based compensation | 3,930 | 4,100 | ||||||
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses: | ||||||||
Receivables | 9,416 | 45,098 | ||||||
Inventories | (27,245 | ) | (16,625 | ) | ||||
Accounts payable | 3,400 | (17,187 | ) | |||||
Accrued liabilities | (53,733 | ) | (52,607 | ) | ||||
Accrued taxes | (2,387 | ) | (6,328 | ) | ||||
Other assets | (5,794 | ) | (1,226 | ) | ||||
Other liabilities | (483 | ) | 3,834 | |||||
Net cash provided by (used for) operating activities | (12,263 | ) | 12,612 | |||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (10,399 | ) | (13,431 | ) | ||||
Cash used to acquire businesses, net of cash acquired | — | (15,348 | ) | |||||
Proceeds from disposal of tangible assets | — | 10 | ||||||
Net cash used for investing activities | (10,399 | ) | (28,769 | ) | ||||
Cash flows from financing activities: | ||||||||
Cash dividends paid | (10,842 | ) | (2,101 | ) | ||||
Withholding tax payments for share-based payment awards, net of proceeds from the exercise of stock options | (4,382 | ) | (2,833 | ) | ||||
Debt issuance costs paid | (4 | ) | — | |||||
Payments under borrowing arrangements | — | (50,625 | ) | |||||
Net cash used for financing activities | (15,228 | ) | (55,559 | ) | ||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | 5,698 | 1,229 | ||||||
Decrease in cash and cash equivalents | (32,192 | ) | (70,487 | ) | ||||
Cash and cash equivalents, beginning of period | 848,116 | 216,751 | ||||||
Cash and cash equivalents, end of period | $ | 815,924 | $ | 146,264 | ||||
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 and deferred revenue to fair value and transaction costs; severance, restructuring, and acquisition integration costs; gains (losses) recognized on the disposal of businesses and tangible assets; amortization of intangible assets; gains (losses) on debt extinguishment; certain revenues and gains (losses) from patent settlements; discontinued operations; and other costs. We adjust for the items listed above in all periods presented, unless the impact is immaterial to our financial statements. When we calculate the tax effect of the adjustments, we include all current and deferred income tax expense commensurate with the adjusted measure of pre-tax profitability.
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. As an example, we adjust for the purchase accounting effect of recording deferred revenue at fair value in order to reflect the revenues that would have otherwise been recorded by acquired businesses had they remained as independent entities. We believe this presentation is useful in evaluating the underlying performance of acquired companies. Similarly, we adjust for other acquisition-related expenses, such as amortization of intangibles and other impacts of fair value adjustments because they generally are not related to the acquired business' core operating performance. As an additional example, we exclude the costs of restructuring programs, which can occur from time to time for our current businesses and/or recently acquired businesses. We exclude the costs in calculating adjusted results to allow us and investors to evaluate the performance of the business based upon its expected ongoing operating structure. We believe the adjusted measures, accompanied by the disclosure of the costs of these programs, provides valuable insight.
Adjusted results should be considered only in conjunction with results reported according to accounting principles generally accepted in the United States.
Three Months Ended | ||||||||
April 2, 2017 | April 3, 2016 | |||||||
(In thousands, except percentages and per share amounts) | ||||||||
GAAP revenues | $ | 551,381 | $ | 541,497 | ||||
Deferred revenue adjustments | — | 2,303 | ||||||
Adjusted revenues | $ | 551,381 | $ | 543,800 | ||||
GAAP gross profit | $ | 222,114 | $ | 225,035 | ||||
Severance, restructuring, and acquisition integration costs | 5,928 | 2,092 | ||||||
Deferred gross profit adjustments | — | 2,303 | ||||||
Purchase accounting effects related to acquisitions | — | 195 | ||||||
Accelerated depreciation | 266 | 206 | ||||||
Adjusted gross profit | $ | 228,308 | $ | 229,831 | ||||
GAAP gross profit margin | 40.3 | % | 41.6 | % | ||||
Adjusted gross profit margin | 41.4 | % | 42.3 | % | ||||
GAAP selling, general and administrative expenses | $ | (112,586 | ) | $ | (122,406 | ) | ||
Severance, restructuring, and acquisition integration costs | 728 | 6,055 | ||||||
Adjusted selling, general and administrative expenses | $ | (111,858 | ) | $ | (116,351 | ) | ||
GAAP research and development | $ | (34,522 | ) | $ | (36,133 | ) | ||
Severance, restructuring, and acquisition integration costs | (56 | ) | 261 | |||||
Adjusted research and development | $ | (34,578 | ) | $ | (35,872 | ) | ||
GAAP net income attributable to Belden | $ | 25,687 | $ | 16,457 | ||||
Interest expense, net | 23,506 | 24,396 | ||||||
Income tax expense | 2,250 | 210 | ||||||
Noncontrolling interest | (106 | ) | (99 | ) | ||||
Total non-operating adjustments | 25,650 | 24,507 | ||||||
Amortization of intangible assets | 23,669 | 25,532 | ||||||
Severance, restructuring, and integration costs | 6,600 | 8,408 | ||||||
Deferred gross profit adjustments | — | 2,303 | ||||||
Accelerated depreciation | 266 | 206 | ||||||
Purchase accounting effects related to acquisitions | — | 195 | ||||||
Total operating income adjustments | 30,535 | 36,644 | ||||||
Depreciation expense | 11,117 | 11,457 | ||||||
Adjusted EBITDA | $ | 92,989 | $ | 89,065 | ||||
GAAP net income margin | 4.7 | % | 3.0 | % | ||||
Adjusted EBITDA margin | 16.9 | % | 16.4 | % | ||||
GAAP net income | $ | 25,581 | $ | 16,358 | ||||
Operating income adjustments from above | 30,535 | 36,644 | ||||||
Tax effect of adjustments | (8,376 | ) | (10,427 | ) | ||||
Adjusted net income | $ | 47,740 | $ | 42,575 | ||||
GAAP net income | $ | 25,581 | $ | 16,358 | ||||
Less: Net loss attributable to noncontrolling interest | (106 | ) | (99 | ) | ||||
Less: Preferred stock dividends | 8,733 | — | ||||||
GAAP net income attributable to Belden common stockholders | $ | 16,954 | $ | 16,457 | ||||
Adjusted net income | $ | 47,740 | $ | 42,575 | ||||
Less: Net loss attributable to noncontrolling interest | (106 | ) | (99 | ) | ||||
Less: Amortization expense attributable to noncontrolling interest, net of tax | 15 | 16 | ||||||
Less: Preferred stock dividends | 8,733 | — | ||||||
Adjusted net income attributable to Belden common stockholders | $ | 39,098 | $ | 42,658 | ||||
GAAP income per diluted share attributable to Belden common stockholders | $ | 0.40 | $ | 0.39 | ||||
Adjusted income per diluted share attributable to Belden common stockholders | $ | 0.92 | $ | 1.01 | ||||
GAAP and adjusted diluted weighted average shares | 42,675 | 42,387 | ||||||
BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)
We define free cash flow, which is a non-GAAP financial measure, as net cash from operating activities adjusted for capital expenditures net of the proceeds from the disposal of tangible assets. 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 | ||||||||
April 2, 2017 | April 3, 2016 | |||||||
(In thousands) | ||||||||
GAAP net cash provided by (used for) operating activities | $ | (12,263 | ) | $ | 12,612 | |||
Capital expenditures, net of proceeds from the disposal of tangible assets | (10,399 | ) | (13,421 | ) | ||||
Non-GAAP free cash flow | $ | (22,662 | ) | $ | (809 | ) | ||
BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
2017 EARNINGS GUIDANCE
Year Ended December 31, 2017 | Three Months Ended July 2, 2017 | |||
Adjusted income per diluted share attributable to Belden common stockholders | $4.95 - $5.20 | $1.15 - $1.25 | ||
Amortization of intangible assets | $(1.37) | $(0.36) | ||
Severance, restructuring, and acquisition integration costs | $(0.27) | $(0.09) | ||
GAAP income per diluted share attributable to Belden common stockholders | $3.31 - $3.56 | $0.70 - $0.80 | ||
Our guidance for income per diluted share attributable to Belden common stockholders is based upon information currently available regarding events and conditions that will impact our future operating results. In particular, our results are subject to the factors listed under "Forward-Looking Statements" in this release. In addition, our actual results are likely to be impacted by other additional events for which information is not available, such as asset impairments, purchase accounting effects related to acquisitions, severance, restructuring, and acquisition integration costs, gains (losses) recognized on the disposal of tangible assets, gains (losses) on debt extinguishment, discontinued operations, and other gains (losses) related to events or conditions that are not yet known.
Net Income and Earnings per Share (EPS)
All references to Net Income and EPS within this earnings release refer to net income attributable to Belden and income from continuing operations per diluted share attributable to Belden common stockholders, respectively.
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. GAAP to non-GAAP reconciliations accompany the condensed 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 and any statements made by us concerning the release may contain forward-looking statements including our expectations for the second quarter and full-year 2017. Forward-looking statements include statements regarding future financial performance (including revenues, expenses, earnings, margins, cash flows, dividends, capital expenditures and financial condition), plans and objectives, and related assumptions. In some cases these statements are identifiable through the use of words such as “anticipate,” “believe,” “estimate,” “forecast,” “guide,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would” and similar expressions. Forward-looking statements reflect management’s current beliefs and expectations and are not guarantees of future performance. Actual results may differ materially from those suggested by any forward-looking statements for a number of reasons, including, without limitation: the impact of a challenging global economy or a downturn in served markets; the competitiveness of the global broadcast, enterprise, and industrial markets; the inability to successfully complete and integrate acquisitions in furtherance of the Company’s strategic plan; volatility in credit and foreign exchange markets; variability in the Company’s quarterly and annual effective tax rates; the cost and availability of raw materials including copper, plastic compounds, electronic components, and other materials; disruption of, or changes in, the Company’s key distribution channels; the inability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); disruptions in the Company’s information systems including due to cyber-attacks; the inability of the Company to develop and introduce new products and competitive responses to our products; the inability to retain senior management and key employees; assertions that the Company violates the intellectual property of others and the ownership of intellectual property by competitors and others that prevents the use of that intellectual property by the Company; risks related to the use of open source software; the impact of regulatory requirements and other legal compliance issues; perceived or actual product failures; political and economic uncertainties in the countries where the Company conducts business, including emerging markets; the impairment of goodwill and other intangible assets and the resulting impact on financial performance; disruptions and increased costs attendant to collective bargaining groups and other labor matters; 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, 2016, filed with the SEC on February 17, 2017. Although the content of this release represents our best judgment as of the date of this report based on information currently available and reasonable assumptions, we give no assurances that the expectations will prove to be accurate. Deviations from the expectations may be material. For these reasons, Belden cautions readers to not place undue reliance on these forward-looking statements, which speak only as of the date made. 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.
About Belden
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