Belden Inc · NYSE:BDC
Belden — Q4 2022 Earnings Presentation
24 slides from Belden's earnings presentation, Feb 8, 2023
Slide 1: Q4 2022 Earnings Release
Q4 2022 EARNINGS RELEASE Conference Call | February 8, 2023
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements Our commentary and responses to your questions may contain forward-looking statements, including our outlook for the first quarter, full year 2023, and adjusted EPS for 2025. Forward-looking statements include proj
Slide 3: 2022 Performance Overview
2022 Performance Overview Momentum Continues with Healthy Balance Sheet Delivered another strong quarter with record full year revenue and EPS(1) • Record full year revenue and record full year EPS 1 • Continued strong execution resulted in 16% organic growth(2) YoY with double-digit organic growth
Slide 4: Broadband & 5G Fiber Opportunity
Broadband & 5G Fiber Opportunity 4Q22 Key Customer Win Fiber Revenue as % of Broadband & 5G Product Revenues million $50 over 4 years 16% Fiber +48% Belden was selected as the single source for all 37% Fiber Fiber CAGR fiber cabinet solutions as our products offer easy configuration to reduce costs
Slide 5: Q4 2022 Financial Results Overview
Q4 2022 Financial Results Overview Q4 Q4 • Revenue up 8% YoY $ millions 2022(1) 2021(1) YoY • Organic Revenue Growth 12%(4) • Industrial Automation Solutions Organic Revenue Growth 18% YoY Revenue $659.1 $610.6 +8% • Enterprise Solutions Organic Revenue Growth 6% YoY • Gross margin 37.8%, +280 bps Y
Slide 6: Full Year 2022 Financial Results Overview
Full Year 2022 Financial Results Overview FY FY • Record Full Year Revenue, up 13% YoY $ millions 2022(1) 2021(1) YoY • Organic Revenue Growth 16% YoY(4) • Industrial Automation Solutions Organic Revenue Growth 19% YoY Revenue $2,606.5 $2,301.3 +13% • Enterprise Solutions Organic Revenues Growth 13%
Slide 7: Full Year 2022 Segment Results
Full Year 2022 Segment Results Industrial Automation Solutions Enterprise Solutions FY FY FY FY $ millions 2022 2021 YoY $ millions 2022 2021 YoY Revenue $1,408.0 $1,226.8 +15% Revenue $1,198.5 $1,074.4 +12% EBITDA $277.1 $222.7 +24% EBITDA $161.5 $144.5 +12% EBITDA % 19.7% 18.2% +150 bps EBITDA % 1
Slide 8: Q4 2022 Balance Sheet Highlights
Q4 2022 Balance Sheet Highlights $ millions 4Q 3Q 4Q (unless otherwise stated) 2022 2022 2021 Cash and Cash Equivalents $687.7 $547.5 $641.6 Days Sales Outstanding 60 59 56 Inventory Turns 4.8x 4.9x 4.7x Total Debt Principal Amount $1.17 billion $1.06 billion $1.48 billion Net Leverage(1) 1.0x 1.1x
Slide 9: Q4 2022 and Full Year 2022 Free Cash Flow
Q4 2022 and Full Year 2022 Free Cash Flow $ millions 4Q 4Q FY FY (unless otherwise stated) 2022 2021 2022 2021 Cash flows from operating activities $202.5 $170.1 $281.3 $272.1 Less: Capital expenditures ($54.8) ($35.4) ($105.1) ($91.0) Plus: Proceeds from disposal of assets - $27.0 $43.5 $30.2 Free
Slide 10: Full Year and First Quarter 2023 Outlook
Full Year and First Quarter 2023 Outlook As of February 8, 2023 Full Year 2023 Outlook 1Q 2023 Outlook Total Revenue ($billion) $2.670 - $2.720 Total Revenue ($million) $615 - $630 Organic Revenue Growth 3% - 5% Organic Revenue Growth 3% - 6% GAAP EPS $5.73 - $6.13 GAAP EPS $1.29 - $1.39 Adjusted EP
Slide 11: Value Creation Framework
VALUE CREATION FRAMEWORK ORGANIC REVENUE INCREMENTAL GROWTH EBITDA MARGINS GDP+ ~30% DISCIPLINED CAPITAL ALLOCATION $8.00+ ROBUST FREE CASH FLOW GENERATION EPS by 2025 ~1.5x ~$1.0B net leverage allows for cumulative over next 4 years substantial capital deployment (2022 – 2025) over next 4 years 1
Slide 12: Our customers are building the future
Our customers are building the future. We build the network that makes it possible. Let’s Build The Future. 12
Slide 13: Questions?
BELDEN QUESTIONS?
Slide 14: Appendix
BELDEN APPENDIX
Slide 15: Statement of Operations
Statement of Operations Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, (Unaudited) 2022 2021 2022 2021 (In thousands, except per share data) Revenues $ 659,072 $ 611,959 $ 2,606,485 $ 2,301,260 Cost of sales (412,594) (404,030) (1,690,196) (1,529,417) Gros
Slide 16: Operating Segment Information
Operating Segment Information Enterprise Industrial Automation Total Solutions Solutions Segments (Unaudited) (In thousands, except percentages) For the three months ended December 31, 2022 Segment Revenues $ 303,403 $ 355,669 $ 659,072 Segment EBITDA 42,699 70,436 113,135 Segment EBITDA margin 14.1
Slide 17: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, (Unaudited) 2022 2021 2022 2021 (In thousands) Total Segment Revenues $ 659,072 $ 610,607 $ 2,606,485 $ 2,301,260 Adjustments related to acquisitions —
Slide 18: Balance Sheet
Balance Sheet December 31, 2022 December 31, 2021 (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 687,676 $ 641,563 Receivables, net 440,102 383,444 Inventories, net 341,563 345,203 Other current assets 66,866 58,283 Assets of discontinued operations — 449,152 Total cur
Slide 19: Cash Flow Statement
Cash Flow Statement Twelve Months Ended December 31, 2022 December 31, 2021 (Unaudited) (In thousands) Cash flows from operating activities: Net income $ 254,822 $ 64,316 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 88,738 87,988 Share-base
Slide 20: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2022 2021 2022 2021 In addition to reporting financial results in accordance with accounting principles generally (Unaudited) (In thousands, except percentages and per share
Slide 21: Reconciliation of Non-GAAP Measures (continued)
Reconciliation of Non-GAAP Measures (continued) 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, Three Months Ended Twelve Months Ended including: asset impai
Slide 22: Free Cash Flow GAAP to Non-GAAP Reconciliation
Free Cash Flow GAAP to Non-GAAP Reconciliation 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 i
Slide 23: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Our guidance 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,
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