Slide 1: Q4 2020 Earnings Release
Q4 2020 EARNINGS RELEASE Conference Call | February 10, 2021 Q4 2020 Earnings Release |
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 and full- year 2021, the impacts of COVID-19 and our restructuring program. Forward
Slide 3: Q4 2020 Financial Highlights
Q4Financial Goals 2020 Highlights Revenue of $498.5M, EPS of $0.90, Free cash flow generation compared to initial compared to initial of $101M, guidance of guidance of resulting in cash on hand $460M - $485M $0.63 - $0.78 of $502M and revised guidance of and revised guidance of $494M - $499M $0.85 -
Slide 4: FY 2020 Financial Highlights
FYFinancial Goals 2020 Highlights Revenue of $1.863B Delivered $40M in Funded our growth Improved the portfolio: SG&A cost savings, initiatives: EPS of $2.75 including $15M in Q4 • Divested Grass Valley • Increased R&D Free cash flow of $86M Positioned to deliver investments by 14% • Initiated a pro
Slide 5: OTN Systems Acquisition
OTN Systems Acquisition Transaction closed on January 29, 2021 • Purchase price of $71M1 • Expected 2021 revenue of ~$36M (11 months of ownership) • Expected 2021 EPS accretion of ~$0.11 • Will be reported in the Industrial Solutions Segment OTN Systems is a leader in industrial backbone networking
Slide 6: Q4 2020 Financial Summary
Q4 2020 Financial Summary Q4 2020 Q3 2020 Q4 2019 Revenue $498.5M $475.8M $549.7M Gross profit $176.3M 168.2M $205.5M Gross profit percentage 35.4% 35.3% 37.4% EBITDA $74.0M $65.3M $92.9M EBITDA percentage 14.8% 13.7% 16.9% Net Income(1) $40.5M $32.2M $54.9M Earnings Per Share(2) $0.90 $0.72 $1.20 A
Slide 7: Q4 2020 Segment Results
Q4 2020 Segment Results Industrial Enterprise Consolidated Solutions Solutions Q4 2020 Revenue $270.8M $227.7M $498.5M EBITDA(1) $47.3M $26.1M $74.0M EBITDA Margin 17.5% 11.5% 14.8% Q3 2020 Revenue $246.7M $229.1M $475.8M EBITDA(1) $38.4M $26.3M $65.3M EBITDA Margin 15.6% 11.5% 13.7% Q4 2019 Revenue
Slide 8: Q4 2020 Balance Sheet Highlights
Q4 2020 Balance Sheet Highlights Q4 2020 Q3 2020 Q4 2019 Cash and Cash Equivalents(1) $502M $391M $426M Working Capital Turns 10.3x 6.6x 8.9x Days Sales Outstanding 50 58 52 Inventory Turns 5.2x 5.0x 6.0x Total Debt Principal Amount $1.59B $1.52B $1.46B Net Leverage(2) 4.0x 3.8x 2.5x (1) Cash and Ca
Slide 9: A Quality Balance Sheet Provides Significant Flexibility
A Quality Balance Sheet Provides Significant Flexibility Fixed, long-term maturities Euro-denominated debt Pre-tax cost of debt = 3.5% $M $600 $551 $500 NO NEAR-TERM MATURITIES $428 $400 $367 $300 $245 $200 NO MAINTENANCE COVENANTS $100 $0 2021 2022 2023 2024 2025 2026 2027 2028 Strong balance sheet
Slide 10: Q4 2020 Cash Flow Highlights
Q4 2020 Cash Flow Highlights Q4 2020 Q4 2019 FY 2020 FY 2019 Cash flows from operating activities $134.7M $187.4M $173.4M $276.9M Less: Net capital expenditures(1) $33.3M $35.9M $87.1M $110.0M Free cash flow(2) $101.3M $151.4M $86.3M $166.9M (1) Capital expenditures inclusive of Grass Valley, net of
Slide 11: Outlook
Outlook Q1 2021 • Revenue of $490 - $505 million • Adjusted Earnings Per Share(1)(2) of $0.60 - $0.70 Full Year 2021 • Revenue of $1.990 - $2.050 billion • Adjusted Earnings Per Share(1)(2) of $2.90 - $3.30 Full Year 2021 Assumptions • Interest expense of $61 million • Tax rate of 20% (1) Adjusted O
Slide 12: 2021 High End of Guidance
2021 High End of Guidance Revenue $36M $2.050B $70M $80M $1.863B 2020 Actual Cu/FX Volume OTN Systems Incremental Productivity R&D Investment Tax, Interest, 2021 Guidance Acquisition $20M Cost Share Count High End EPS Reduction $0.36 $0.09 ($0.24) ($0.20) $0.11 $3.30 $0.43 $2.75 2020 Actual Copper P
Slide 13: Aligned With Growth Markets
Aligned With Growth Markets 2021 Revenues Industrial Broadband & 5G STRATEGIC ALIGNMENT Automation WITH ATTRACTIVE ~50% ~22% GROWTH MARKETS Industrial Enterprise SIMPLIFIED PORTFOLIO Solutions Solutions POSITIONED FOR ~56% ~44% IMPROVED ORGANIC ~22% GROWTH ~6% Cybersecurity Smart Buildings Based on
Slide 14: Questions?
QUESTIONS? Q4 2020 Earnings Release |
Slide 15: Appendix
APPENDIX Q4 2020 Earnings Release |
Slide 16: Statement of Operations
Statement of Operations Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2020 2019 2020 2019 (In thousands, except per share data) Revenues $ 498,540 $ 549,688 $ 1,862,716 $ 2,131,278 Cost of sales (323,284) (346,916) (1,199,427) (1,337,773) Gross profit 175
Slide 17: Operating Segment Information
Operating Segment Information Enterprise Solutions Industrial Solutions Total Segments (In thousands, except percentages) For the three months ended December 31, 2020 Segment Revenues $ 227,731 $ 270,809 $ 498,540 Segment EBITDA 26,140 47,259 73,399 Segment EBITDA margin 11.5 % 17.5 % 14.7 % Depreci
Slide 18: 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, 2020 2019 2020 2019 (In thousands) Total Segment Revenues $ 498,540 $ 549,688 $ 1,862,716 $ 2,131,278 Deferred revenue adjustments — — — — Consolidated
Slide 19: Balance Sheet
Balance Sheet December 31, 2020 December 31, 2019 (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 501,994 $ 407,480 Receivables, net 296,817 334,634 Inventories, net 247,298 231,333 Other current assets 52,289 29,172 Current assets of discontinued operations — 375,135 T
Slide 20: Cash Flow Statement
Cash Flow Statement Twelve Months Ended December 31, 2020 December 31, 2019 (In thousands) Cash flows from operating activities: Net loss $ (55,058) $ (376,776) Adjustments to reconcile net loss to net cash provided by operating activities: Asset impairment of discontinued operations 113,007 521,441
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures In addition to reporting financial results in accordance with accounting principles Three Months Ended Twelve Months Ended generally accepted in the United States, we provide non-GAAP operating results December 31, December 31, December 31, December 31, 2020 2019
Slide 22: 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, including: asset impairments; accelerated depreciation Three
Slide 23: Free Cash Flow GAAP to Non-GAAP Reconciliation
Free Cash Flow GAAP to Non-GAAP Reconciliation Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2020 2019 2020 2019 (In thousands) GAAP net cash provided by operating activities $ 134,675 $ 187,376 $ 173,364 $ 276,893 Capital expenditures, net of proceeds fr
Slide 24: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Year Ended Three Months Ended December 31, 2021 April 4, 2021 (In thousands) GAAP income from continuing operations per diluted share attributable to Belden common stockholders $1.70 - $2.10 $0.22 - $0.32 Amortization of intangible assets 0.67 0.20 Severance, rest
Slide 25: Reconciliation of Non-GAAP Measures: 2021 OTN Systems Earnings Guidance
Reconciliation of Non-GAAP Measures 2021 OTN Systems Earnings Guidance Year Ended December 31, 2021 GAAP loss from continuing operations per diluted share attributable to Belden common stockholders ($0.11) Amortization of intangible assets 0.09 Purchase accounting effects related to acquisition 0.08