Slide 1: 2nd Quarter 2014 Earnings Release Conference Call
2nd Quarter 2014 Earnings Release Conference Call July 30, 2014 © 2014 Belden Inc. | belden.com | @BeldenInc PROPRIETARY AND CONFIDENTIAL. COPYING RESTRICTED. FOR INTERNAL USE ONLY.
Slide 2: Safe Harbor Statement; Non-GAAP Measures
Safe Harbor Statement Our commentary and responses to your questions may contain forward-looking statements, including our outlook for the 2014 third quarter and full year. Forward- looking statements include projections of sales, earnings, general economic conditions, market conditions, working cap
Slide 3: Q2 2014 Highlights
Q2 2014 Highlights Grew revenues by 13.6% from the year-ago period; Achieved record income from continuing operations per diluted share of $1.05; Delivered record gross profit margins of 37.0%, an increase of 180 basis points from 35.2% in the second quarter 2013; Announced the purchase of P
Slide 4: 2nd Quarter Segment Overview
2nd Quarter Segment Overview Broadcast Solutions Enterprise Connectivity Revenue $252.3M Revenue $121.3M Operating Profit Margin 10.6% Operating Profit Margin 13.1% Automation Playout Servers Signal Processing Precision A/V Monitoring Racks and Copper and Fiber Ethernet, & Branding & Routing Cable a
Slide 5: Financial Summary
Financial Summary Q2 2014 Q1 2014 Q2 2013 Revenue $605.1M $488.3M $532.6M Gross profit $223.8M $176.1M $187.4M Gross profit percentage 37.0% 36.1% 35.2% Operating income $ 78.4M $ 64.0M $ 75.8M Operating income percentage 13.0% 13.1% 14.2% Income from continuing operations $ 46.5M $ 35.4M $ 44.2M In
Slide 6: Segment Results
Segment Results Enterprise Industrial Broadcast Industrial IT Consolidated Connectivity Connectivity Q2 2014 Revenue $252.3M $121.3M $178.2M $53.3M $605.1M Operating income(1) $26.7M $15.9M $27.0M $8.3M $78.4M Operating income percentage 10.6% 13.1% 15.2% 15.5% 13.0% Q1 2014 Revenue $166.5M $108.4M
Slide 7: Q2 2014 Balance Sheet Highlights
Q2 2014 Balance Sheet Highlights Q2 2014 Q1 2014 Q2 2013 Cash and cash equivalents $445.0M $569.6M $476.2M Inventory turns 6.9x 5.7x 6.7x Days sales outstanding 63 days 57 days 56 days Working capital turns 7.9x 6.0x 6.8x PP&E Turns 7.3x 6.5x 7.1x Total debt principal amount $1.56B $1.37B $1.33B © 2
Slide 8: Cash Flow Highlights
Cash Flow Highlights Q2 2014 Q2 2013 Cash flows from operating activities $43.7M(1) $ 58.6M(2) Less: Net capital expenditures(3) $ 10.6M $ 11.8M Free cash flow (4) $ 33.1M $ 46.8M Cash used to acquire businesses(5) $ 306.8M $ 0.5M Share repurchases and dividends $ 33.4M $ 33.5M (1) Adjusted for one-
Slide 9: Belden Acquires ProSoft
Belden Acquires ProSoft Purchase Price $103M Annual Revenue* ≈ $50M • Leader in industrial embedded Automotive, Energy and Power, Food and network gateways Markets Beverage, Oil and Gas, Packaging • Provider of industrial wireless products (cellular, 802.11) Industrial Embedded Gateways and • Founde
Slide 10: Outlook
Outlook Q3 2014(1) • Revenue of $605 - $625 million • Income from continuing operations per diluted share of $1.05 - $1.15 2014 Full Year(1) • Revenue of $2.30 - $2.35 billion • Income from continuing operations per diluted share of $4.10 - $4.30 (1) Adjusted outlook. See Appendix for reconciliation
Slide 11: Appendix
Appendix © 2014 Belden Inc. | belden.com | @BeldenInc 11
Slide 12: Statements of Operations and Comprehensive Income
Statements of Operations and Comprehensive Income © 2014 Belden Inc. | belden.com | @BeldenInc 12
Slide 13: Operating Segment Information
Operating Segment Information © 2014 Belden Inc. | belden.com | @BeldenInc 13
Slide 14: Balance Sheet
Balance Sheet © 2014 Belden Inc. | belden.com | @BeldenInc 14
Slide 15: Cash Flow Statement
Cash Flow Statement © 2014 Belden Inc. | belden.com | @BeldenInc 15
Slide 16: Free Cash Flow GAAP to Non-GAAP Reconciliation
Free Cash Flow GAAP to Non-GAAP Reconciliation © 2014 Belden Inc. | belden.com | @BeldenInc 16
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation © 2014 Belden Inc. | belden.com | @BeldenInc 17
Slide 18: GAAP to Non-GAAP Reconciliation – Segments
GAAP to Non-GAAP Reconciliation – Segments © 2014 Belden Inc. | belden.com | @BeldenInc 18
Slide 19: Reconciliation of Non-GAAP Measures 2014 Revenue and Earnings Guidance
Reconciliation of Non-GAAP Measures 2014 Revenue and Earnings Guidance © 2014 Belden Inc. | belden.com | @BeldenInc 19