Slide 1: 1st Quarter 2019 Earnings Release Conference Call
1st Quarter 2019 Earnings Release Conference Call May 1, 2019 1 | ©2019 Belden Inc. belden.com @beldeninc
Slide 2: Safe Harbor Statement and Non-GAAP Measures
Safe Harbor Statement Our commentary and responses to your questions may contain forward-looking statements, including our outlook for the second quarter and full-year 2019. Forward- looking statements include projections of sales, earnings, general economic conditions, market conditions, working ca
Slide 3: Q1 2019 Highlights
Q1 2019 Highlights • Revenues of $587.2M, compared to the guidance range of $564M to $594M • EPS of $0.99, compared to the guidance range of $0.80 to $1.00 • Free cash flow improved $30M year-over-year, with trailing- twelve-months free cash flow increasing from $115M a year ago to $223M • Completed
Slide 4: Q1 2019 Segment Overview
Q1 2019 Segment Overview Revenue $326.5 M Key Markets • Smart Buildings Enterprise Organic Growth % (Y/Y) +0.3%* Solutions • Final Mile Broadband • Live Media Production EBITDA Margin 12.1% Revenue $260.7M • Discrete Manufacturing • Process Facilities Industrial Organic Growth % (Y/Y) +6.0% • Transp
Slide 5: Q1 2019 Financial Summary
Q1 2019 Financial Summary Q1 2019 Q4 2018 Q1 2018 Revenue $587.2M $654.1M $607.4M Gross profit $226.2M $265.6M $242.6M Gross profit percentage 38.5% 40.6% 39.9% EBITDA $87.1M $121.6M $103.3M EBITDA percentage 14.8% 18.6% 17.0% Net Income(1) $48.1M $77.7M $57.5M Earnings Per Share(2) $0.99 $1.66 $1.1
Slide 6: Q1 2019 Segment Results
Q1 2019 Segment Results Enterprise Industrial Consolidated Solutions Solutions Q1 2019 Revenue $326.5M $260.7M $587.2M EBITDA(1) $39.6M $47.5M $87.0M EBITDA Margin 12.1% 18.2% 14.8% Q4 2018 Revenue $379.4M $274.7M $654.1M EBITDA(1) $67.7M $54.3M $121.6M EBITDA Margin 17.8% 19.8% 18.6% Q1 2018 Revenu
Slide 7: Q1 2019 Balance Sheet Highlights
Q1 2019 Balance Sheet Highlights Q1 2019 Q4 2018 Q1 2018 Cash and Cash Equivalents $339M $421M $363M Working Capital Turns 5.8x 9.5x 5.7x Days Sales Outstanding 62 65 66 Inventory Turns 4.4x 5.0x 4.6x PP&E Turns 6.3x 7.2x 6.9x Total Debt Principal Amount $1.46B $1.49B $1.69B Net Leverage(1) 2.4x 2.2
Slide 8: Q1 2019 Cash Flow Highlights
Q1 2019 Cash Flow Highlights TTM TTM Q1 2019 Q1 2018 Q1 2019 Q1 2018 Cash flows from operating $(46.1)M $(83.9)M $327.0M $183.7M activities Less: Net capital expenditures(1) $23.6M $15.9M $104.0M $68.7M Free cash flow(2) $(69.6)M $(99.7)M $223.0M $115.0M Cash used to acquire $0.0M $95.4M $8.5M $262.
Slide 9: Outlook
Outlook Q2 2019 • Revenue of $630 - $660 million • Earnings Per Share(1)(2) of $1.30 - $1.50 Full Year 2019 • Revenue of $2.520 - $2.595 billion • Earnings Per Share(1)(2) of $5.65 - $6.15 Full Year 2019 Assumptions • Interest expense of $58 million • Tax rate of 20% • No impact of potential share r
Slide 10: Questions?
Questions? 10 | ©2019 Belden Inc. belden.com @beldeninc
Slide 11: Appendix
Appendix 11 | ©2019 Belden Inc. belden.com @beldeninc
Slide 12: Statement of Operations
Statement of Operations Unaudited Three Months Ended March 31, 2019 April 1, 2018 (In thousands, except per share data) Revenues $ 587,175 $ 605,565 Cost of sales (362,447) (374,971) Gross profit 224,728 230,594 Selling, general and administrative expenses (122,788) (124,872) Research and developmen
Slide 13: Operating Segment Information
Operating Segment Information Unaudited Enterprise Industrial Total Solutions Solutions Segments (In thousands, except percentages) For the three months ended March 31, 2019 Segment Revenues $ 326,527 $ 260,648 $ 587,175 Segment EBITDA 39,558 47,459 87,017 Segment EBITDA margin 12.1 % 18.2 % 14.8 %
Slide 14: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Unaudited Three Months Ended March 31, 2019 April 1, 2018 (In thousands) Total Segment Revenues $ 587,175 $ 607,423 Deferred revenue adjustments — (1,858) Consolidated Revenues $ 587,175 $ 605,565 Total Segment EBITDA $ 87,017 $ 103,878 Elimin
Slide 15: Balance Sheet
Balance Sheet March 31, 2019 (Unaudited) December 31, 2018 (In thousands) ASSETS Current assets: Cash and cash equivalents $ 338,982 $ 420,610 Receivables, net 404,609 465,939 Inventories, net 326,770 316,418 Other current assets 59,381 55,757 Total current assets 1,129,742 1,258,724 Property, plant
Slide 16: Cash Flow Statement
Cash Flow Statement Three Months Ended Unaudited March 31, 2019 April 1, 2018 (In thousands) Cash flows from operating activities: Net income $ 25,178 $ 2,570 Adjustments to reconcile net income to net cash used for operating activities: Depreciation and amortization 37,001 36,519 Share-based compen
Slide 17: GAAP to Non-GAAP Reconciliation
Q1 2019 GAAP to Non-GAAP Reconciliation Three Months Ended Unaudited March 31, 2019 April 1, 2018 (In thousands, except percentages and per share amounts) GAAP revenues $ 587,175 $ 605,565 In addition to reporting financial results in accordance with accounting Deferred revenue adjustments — 1,858 p
Slide 18: GAAP to Non-GAAP Reconciliation (continued)
Q1 2019 GAAP to Non-GAAP Reconciliation (continued) Unaudited In addition to reporting financial results in accordance with accounting GAAP net income attributable to Belden $ 25,202 $ 2,618 principles generally accepted in the United States, we provide non-GAAP Operating income adjustments from abo
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: 2019 Earnings Guidance
Reconciliation of Non-GAAP Measures 2019 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 particular, our re