Slide 1: 2nd Quarter 2018 Earnings Release Conference Call
2nd Quarter 2018 Earnings Release Conference Call August 1, 2018 1 | ©2018 Belden Inc. belden.com @beldeninc
Slide 2: Safe Harbor Statement
Safe Harbor Statement Our commentary and responses to your questions may contain forward-looking statements, including our outlook for the 2018 third quarter and full year. Forward- looking statements include projections of sales, earnings, general economic conditions, market conditions, working cap
Slide 3: Q2 2018 Highlights
Q2 2018 Highlights • Revenues of $671.4M, increasing 10.0% year-over-year • EBITDA of $122.6M, increasing 9.6% year-over-year • EPS of $1.52, increasing 17.8% year-over-year • Updated full-year 2018 revenue guidance to $2.643 - $2.673 billion from $2.633 - $2.683 billion and EPS guidance to $6.28 -
Slide 4: Q2 2018 Segment Overview
Q2 2018 Segment Overview Revenue $399.7 M Key Markets • Smart Buildings Enterprise Revenue Growth % (Y/Y) +14.6% Solutions • Final Mile Broadband EBITDA Margin 17.6% • Live Media Production Revenue $271.7M Key Markets • Discrete Manufacturing Industrial Revenue Growth % (Y/Y) +3.8% Solutions • Proce
Slide 5: Q2 2018 Financial Summary
Q2 2018 Financial Summary Q2 2018 Q1 2018 Q2 2017 Revenue $671.4M $607.4M $610.6M Gross profit $268.9M $242.6M $252.6M Gross profit percentage 40.0% 39.9% 41.4% EBITDA $122.6M $103.3M $111.8M EBITDA percentage 18.3% 17.0% 18.3% Net Income(1) $72.6M $57.5M $64.3M Earnings Per Share(2) $1.52 $1.16 $1.
Slide 6: Q2 2018 Segment Results
Q2 2018 Segment Results Enterprise Industrial Consolidated Solutions Solutions Q2 2018 Revenue $399.7M $271.7M $671.4M EBITDA(1) $70.3M $53.2M $122.6M EBITDA Margin 17.6% 19.6% 18.3% Q1 2018 Revenue $351.0M $256.4M $607.4M EBITDA(1) $57.5M $46.4M $103.3M EBITDA Margin 16.4% 18.1% 17.0% Q2 2017 Reven
Slide 7: Q2 2018 Balance Sheet Highlights
Q2 2018 Balance Sheet Highlights Q2 2018 Q1 2018 Q2 2017 Cash and Cash Equivalents $261M $363M $670M Working Capital Turns 6.4x 5.7x 7.0x Days Sales Outstanding 63 66 63 Days Payable Outstanding 87 92 87 Inventory Turns 5.2x 4.6x 5.8x PP&E Turns 7.7x 6.9x 7.6x Total Debt Principal Amount $1.51B $1.6
Slide 8: Q2 2018 Cash Flow Highlights
Q2 2018 Cash Flow Highlights Q2 2018 Q2 2017 YTD 2018 YTD 2017 Cash flows from operating $54.5M $47.0M $(29.4M) $34.8M activities Less: Net capital expenditures(1) $22.1M $11.8M $38.0M $22.2M Free cash flow(2) $32.4M $35.2M $(67.3M) $12.6M Cash used to acquire $8.5M $166.9M $84.6M $166.9M businesses
Slide 9: Outlook
Outlook Q3 2018 • Revenue of $670 - $690 million • Earnings Per Share(1)(2) of $1.65 - $1.75 2018 Full Year • Revenue of $2.643 - $2.673 billion • Earnings Per Share(1)(2) of $6.28 - $6.48 (1) Adjusted Outlook. See Appendix for reconciliation to comparable GAAP outlook. (2) All references to Earning
Slide 10: Questions?
Questions? 10 | ©2018 Belden Inc. belden.com @beldeninc
Slide 11: Appendix
Appendix 11 | ©2018 Belden Inc. belden.com @beldeninc
Slide 12: Statement of Operations
Statement of Operations Unaudited Three Months Ended Six Months Ended July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 (In thousands, except per share data) Revenues $ 668,639 $ 610,633 $ 1,274,204 $ 1,162,014 Cost of sales (411,043) (367,529) (786,014) (696,536) Gross profit 257,596 243,104 488,
Slide 13: Operating Segment Information
Operating Segment Information Unaudited Enterprise Industrial Total Solutions Solutions Segments (In thousands, except percentages) For the three months ended July 1, 2018 Segment Revenues $ 399,695 $ 271,746 $ 671,441 Segment EBITDA 70,281 53,225 123,506 Segment EBITDA margin 17.6 % 19.6 % 18.4 % D
Slide 14: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Unaudited Three Months Ended Six Months Ended July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 (In thousands) Total Segment Revenues $ 671,441 $ 610,633 $ 1,278,864 $ 1,162,014 Deferred revenue adjustments (2,802) — (4,660) — Consolidated R
Slide 15: Balance Sheet
Balance Sheet July 1, 2018 December 31, 2017 (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 261,449 $ 561,108 Receivables, net 463,225 473,570 Inventories, net 319,133 297,226 Other current assets 48,779 40,167 Total current assets 1,092,586 1,372,071 Property, plant a
Slide 16: Cash Flow Statement
Cash Flow Statement Unaudited Six Months Ended July 1, 2018 July 2, 2017 (In thousands) Cash flows from operating activities: Net income $ 31,362 $ 61,472 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation and amortization 74,072 73,693 Share-ba
Slide 17: Q2 2018 GAAP to Non-GAAP Reconciliation
Q2 2018 GAAP to Non-GAAP Reconciliation Unaudited Three Months Ended Six Months Ended July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 (In thousands, except percentages and per share amounts) GAAP revenues $ 668,639 $ 610,633 $ 1,274,204 $ 1,162,014 In addition to reporting financial results in a
Slide 18: GAAP to Non-GAAP Reconciliation (continued)
Q2 2018 GAAP to Non-GAAP Reconciliation (continued) Unaudited Three Months Ended Six Months Ended July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 In addition to reporting financial results in accordance with accounting principles (In thousands, except percentages and per share amounts) generally
Slide 19: Free Cash Flow GAAP to Non-GAAP Reconciliation
Free Cash Flow GAAP to Non-GAAP Reconciliation 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 inform
Slide 20: Reconciliation of Non-GAAP Measures Q3 and Full-Year 2018 Earnings Guidance
Reconciliation of Non-GAAP Measures Q3 and Full-Year 2018 Earnings Guidance Unaudited 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 p