Slide 1: 3rd Quarter 2017 Earnings Release Conference Call
3rd Quarter 2017 Earnings Release Conference Call November 1, 2017 © 2017 Belden Inc. | belden.com | @BeldenInc PROPRIETARY AND CONFIDENTIAL. COPYING RESTRICTED. FOR INTERNAL USE ONLY.
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 2017 fourth quarter and full year. Forward- looking statements include projections of sales, earnings, general economic conditions, market conditions, working ca
Slide 3: Q3 2017 Highlights
Q3 2017 Highlights • Achieved record quarterly revenue of $621.7M • Generated EBITDA of $119.2M, growing 6.9% year-over- year • Expanded EBITDA margins 70 basis points to 19.2% • Delivered EPS of $1.49, increasing 15.5% from the year-ago period • Reduced total debt principal and refinanced €450M and
Slide 4: Q3 2017 Segment Overview
Q3 2017 Segment Overview Revenue $193.8M Broadcast Solutions Automation Playout Drop, Headend & Cameras Signal Processing Monitoring KVM & Branding EBITDA Margin 18.4% & Routing Systems Systems Hardline Connectors Switches Revenue $167.1M Enterprise Solutions Racks & Copper & Fiber Ethernet, Precisi
Slide 5: Q3 2017 Financial Summary
Q3 2017 Financial Summary Q3 2017 Q2 2017 Q3 2016 Revenue $621.7M $610.6M $602.5M Gross profit $255.4M $252.1M $250.4M Gross profit percentage 41.1% 41.3% 41.6% EBITDA $119.2M $111.8M $111.5M EBITDA percentage 19.2% 18.3% 18.5% Net Income(1) $73.9M $64.3M $61.5M Earnings Per Share(2) $1.49 $1.29 $1.
Slide 6: Q3 2017 Segment Results
Q3 2017 Segment Results Broadcast Enterprise Industrial Network Consolidated Solutions Solutions Solutions Solutions Q3 2017 Revenue $193.8M $167.1M $160.5M $100.4M $621.7M EBITDA(1) $35.7M $26.4M $30.5M $24.9M $119.2M EBITDA Margin 18.4% 15.8% 19.0% 24.8% 19.2% Q2 2017 Revenue $188.1M $160.7M $159.
Slide 7: Q3 2017 Balance Sheet Highlights
Q3 2017 Balance Sheet Highlights Q3 2017 Q2 2017 Q3 2016 Cash and cash equivalents $461M $670M $748M Working Capital Turns 7.1x 7.0x 8.9x PP&E turns 7.7x 7.6x 7.4x Total debt principal amount $1.55B $1.70B $1.71B Net Leverage(1) 2.3x 2.2x 2.2x (1) Net leverage is calculated as (A) total debt less ca
Slide 8: Q3 2017 Cash Flow Highlights
Q3 2017 Cash Flow Highlights Q3 2017 Q3 2016 YTD 2017 YTD 2016 Cash flows from operating activities $68.8M $86.9M $103.6M $147.4M Less: Net capital expenditures(1) $11.2M $10.7M $33.4M $35.8M Free cash flow (2) $57.6M $76.2M $70.2M $111.7M Cash used to acquire businesses(3) $0.0M $0.0M $166.9M $17.8
Slide 9: Outlook
Outlook Q4 2017 • Revenue of $641 - $661 million • Earnings Per Share(1)(2) of $1.71 - $1.81 2017 Full Year • Revenue of $2.425 - $2.445 billion • Earnings Per Share(1)(2) of $5.45 - $5.55 (1) Adjusted Outlook. See Appendix for reconciliation to comparable GAAP outlook. (2) All references to Earning
Slide 10: Questions?
Questions? © 2017 Belden Inc. | belden.com | @BeldenInc © 2017 Belden Inc. | belden.com | @BeldenInc 10
Slide 11: Appendix
Appendix © 2017 Belden Inc. | belden.com | @BeldenInc 11
Slide 12: Statements of Operations
Statements of Operations Unaudited Three Months Ended Nine Months Ended October 1, 2017 October 2, 2016 October 1, 2017 October 2, 2016 (In thousands, except per share data) Revenues $ 621,745 $ 601,109 $ 1,783,759 $ 1,744,237 Cost of sales (381,921) (355,147) (1,079,312) (1,025,027 Gross profit 239
Slide 13: Operating Segment Information
Operating Segment Information Unaudited Broadcast Enterprise Industrial Network Total Solutions Solutions Solutions Solutions Segments (In thousands, except percentages) For the three months ended October 1, 2017 Segment Revenues $ 193,753 $ 167,089 $ 160,471 $ 100,432 $ 621,745 Segment EBITDA 35,67
Slide 14: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Unaudited Three Months Ended Nine Months Ended October 1, 2017 October 2, 2016 October 1, 2017 October 2, 2016 (In thousands) Total Segment Revenues $ 621,745 $ 602,468 $ 1,783,759 $ 1,749,649 Deferred revenue adjustments — (1,359) — (5,412) C
Slide 15: Balance Sheet
Balance Sheet October 1, 2017 December 31, 2016 (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 461,363 $ 848,116 Receivables, net 439,276 388,059 Inventories, net 262,494 190,408 Other current assets 67,048 29,176 Assets held for sale 35,953 23,193 Total current assets
Slide 16: Cash Flow Statement
Cash Flow Statement Unaudited Nine Months Ended October 1, 2017 October 2, 2016 (In thousands) Cash flows from operating activities: Net income $ 62,417 $ 94,363 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 112,538 110,857 Share-base
Slide 17: GAAP to Non-GAAP Reconciliation
Q3 2017 GAAP to Non-GAAP Reconciliation Unaudited Three Months Ended Nine Months Ended October 1, 2017 October 2, 2016 October 1, 2017 October 2, 2016 In addition to reporting financial results in accordance with accounting principles generally (In thousands, except percentages and per share amounts
Slide 18: 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 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Q4 and Full-Year 2017 Earnings Guidance 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,