Slide 1: 4th Quarter 2018 Earnings Release Conference Call
4th Quarter 2018 Earnings Release Conference Call February 20, 2019 1 | ©2019 Belden Inc. belden.com @beldeninc
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 first quarter and full-year 2019. Forward-looking statements include projections of sales, earnings, general economic conditions, market conditions, working capi
Slide 3: Q4 2018 Highlights
Q4 2018 Highlights • Revenues of $654.1M, increasing 8.1% year-over-year and 6.8% organically • EBITDA of $121.6M, increasing 10.4% year-over-year • EPS of $1.66, increasing 2.5% year-over-year • Reduced leverage to 2.2x net debt to EBITDA • Completed the $200M share repurchase program, announced a
Slide 4: FY 2018 Highlights
FY 2018 Highlights • Record revenues of $2.592B, increasing 8.5% year-over- year • Record EBITDA of $474.2M, increasing 9.2% year-over- year • Record EPS of $6.06, increasing 13.3% year-over-year • Cash flow from operations of $289.2M, increasing 13.3% year-over-year • Balanced capital deployment in
Slide 5: Q4 2018 Segment Overview
Q4 2018 Segment Overview Revenue $379.4 M Key Markets • Smart Buildings Enterprise Organic Growth % (Y/Y) +7.4% Solutions • Final Mile Broadband • Live Media Production EBITDA Margin 17.8% Revenue $274.7M • Discrete Manufacturing • Process Facilities Industrial Organic Growth % (Y/Y) +6.0% • Transpo
Slide 6: Q4 2018 Financial Summary
Q4 2018 Financial Summary Q4 2018 Q3 2018 Q4 2017 Revenue $654.1M $659.0M $604.9M Gross profit $265.6M $270.1M $237.7M Gross profit percentage 40.6% 41.0% 39.3% EBITDA $121.6M $126.7M $110.2M EBITDA percentage 18.6% 19.2% 18.2% Net Income(1) $77.7M $81.9M $79.0M Earnings Per Share(2) $1.66 $1.72 $1.
Slide 7: Q4 2018 Segment Results
Q4 2018 Segment Results Enterprise Industrial Consolidated Solutions Solutions 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% Q3 2018 Revenue $392.1M $266.9M $659.0M EBITDA(1) $72.2M $53.8M $126.7M EBITDA Margin 18.4% 20.1% 19.2% Q4 2017 Reven
Slide 8: Q4 2018 Balance Sheet Highlights
Q4 2018 Balance Sheet Highlights Q4 2018 Q3 2018 Q4 2017 Cash and Cash Equivalents $421M $329M $561M Working Capital Turns 9.5x 6.2x 8.2x Days Sales Outstanding 65 66 71 Inventory Turns 5.0x 4.9x 5.1x PP&E Turns 7.2x 7.5x 7.2x Total Debt Principal Amount $1.49B $1.53B $1.58B Net Leverage(1) 2.2x 2.5
Slide 9: Q4 2018 Cash Flow Highlights
Q4 2018 Cash Flow Highlights Q4 2018 Q4 2017 FY 2018 FY 2017 Cash flows from operating $188.4M $151.7M $289.2M $255.3M activities Less: Net capital expenditures(1) $34.4M $29.8M $96.2M $63.2M Free cash flow(2) $154.0M $121.9M $193.0M $192.1M Cash used to acquire $0.0M $0.0M $84.6M $166.9M businesses
Slide 10: Outlook
Outlook Q1 2019 • Revenue of $564 - $594 million • Earnings Per Share(1)(2) of $0.80 - $1.00 Full Year 2019 • Revenue of $2.495 - $2.595 billion • Earnings Per Share(1)(2) of $5.50 - $6.15 Full Year 2019 Assumptions • Interest expense of $59 million • Tax rate of 21% • No impact of potential 2019 M&
Slide 11: 2019 High End of Guidance
2019 High End of Guidance Revenue ($34M) $50M $9M ($22M) $2.592B $2.595B Adjusted EPS ($0.35) $0.25 $0.28 ($0.09) $6.06 $6.15 • Organic growth when adjusted for changes in copper / currency is -2% to +2% • This guidance does not include the impact of future capital deployments 11 | ©2019 Belden Inc.
Slide 12: Questions?
Questions? 12 | ©2019 Belden Inc. belden.com @beldeninc
Slide 13: Appendix
Appendix 13 | ©2019 Belden Inc. belden.com @beldeninc
Slide 14: Statement of Operations
Statement of Operations Unaudited Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (In thousands, except per share data) Revenues $ 655,390 $ 604,884 $ 2,585,368 $ 2,388,643 Cost of sales (396,025) (375
Slide 15: Operating Segment Information
Operating Segment Information Enterprise Industrial Total Unaudited Solutions Solutions Segments (In thousands, except percentages) For the three months ended December 31, 2018 Segment Revenues $ 379,413 $ 274,700 $ 654,113 Segment EBITDA 67,713 54,323 122,036 Segment EBITDA margin 17.8% 19.8% 18.7%
Slide 16: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Unaudited Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2018 2017 2018 2017 (In thousands) Total Segment Revenues $ 654,113 $ 604,884 $ 2,591,980 $ 2,388,643 Deferred revenue adjustments 1,277 — (6,
Slide 17: Balance Sheet
Balance Sheet December 31, December 31, 2018 2017 (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 420,610 $ 561,108 Receivables, net 465,939 473,570 Inventories, net 316,418 297,226 Other current assets 55,757 40,167 Total current assets 1,258,724 1,372,071 Property, pl
Slide 18: Cash Flow Statement
Cash Flow Statement Twelve Months Ended December 31, 2018 December 31, 2017 Unaudited (Unaudited) (In thousands) Cash flows from operating activities: Net income $ 160,711 $ 92,853 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 148,632
Slide 19: Q4 2018 GAAP to Non-GAAP Reconciliation
Q4 2018 GAAP to Non-GAAP Reconciliation Unaudited Three Months Ended December 31, December 31, Twelve Months Ended December 31, December 31, 2018 2017 2018 2017 (In thousands, except percentages and per share amounts) GAAP revenues $ 655,390 $ 604,884 $ 2,585,368 $ 2,388,643 In addition to reporting
Slide 20: GAAP to Non-GAAP Reconciliation (continued)
Q4 2018 GAAP to Non-GAAP Reconciliation (continued) Unaudited Three Months Ended December 31, December 31, Twelve Months Ended December 31, December 31, 2018 2017 2018 2017 GAAP net income attributable to Belden $ 43,526 (In $ except thousands, 30,519 $ percentages 160,894 and per share$ amounts) 93
Slide 21: 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 22: Reconciliation of Non-GAAP Measures Q4 and Full-Year 2018 Earnings Guidance
Reconciliation of Non-GAAP Measures Q4 and Full-Year 2018 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 p