Belden Inc · NYSE:BDC
Belden — Q3 2020 Earnings Presentation
21 slides from Belden's earnings presentation, Oct 28, 2020
Slide 1: Q3 2020 Earnings Release
Q3 2020 EARNINGS RELEASE Conference Call | October 28, 2020 Q3 2020 Earnings Release |
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 fourth quarter and full- year 2020, the impacts of COVID-19 and our restructuring program. Forward-looking statements include projections of sales, earnings, gen
Slide 3: Q3 2020 Highlights and Financial Goals
Q3Financial Goals 2020 Highlights Reinstated guidance: Revenues of $475.8M, Delivered $12M in up 12% sequential savings associated with Ample liquidity with Q4 2020 revenue of our $60M SG&A cost cash on hand of $460M-$485M and EPS of $0.72, reduction program $391M at the end EPS of $0.63-$0.78 up 57
Slide 4: Strategic Priorities
Strategic Priorities │ Belden Vision INDUSTRIAL CYBERSECURITY AUTOMATION Ever-increasing Growing demand for need for network automated production security BROADBAND SMART & 5G BUILDINGS Consumer demand Integrated networks for more bandwidth require connectivity and faster speeds Q3 2020 Earnings Rel
Slide 5: Q3 2020 Financial Summary
Q3 2020 Financial Summary Q3 2020 Q2 2020 Q3 2019 Revenue $475.8M $424.8M $533.1M Gross profit 168.2M $150.5M $199.0M Gross profit percentage 35.3% 35.4% 37.4% EBITDA $65.3M $49.1M $90.0M EBITDA percentage 13.7% 11.6% 16.9% Net Income(1) $32.2M $20.3M $54.4M Earnings Per Share(2) $0.72 $0.46 $1.19 A
Slide 6: Q3 2020 Segment Results
Q3 2020 Segment Results Industrial Enterprise Consolidated Solutions Solutions 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% Q2 2020 Revenue $221.4M $203.4M $424.8M EBITDA(1) $26.4M $22.2M $49.1M EBITDA Margin 11.9% 10.9% 11.6% Q3 2019 Revenue
Slide 7: Q3 2020 Balance Sheet Highlights
Q3 2020 Balance Sheet Highlights Q3 2020 Q2 2020 Q3 2019 Cash and Cash Equivalents(1) $391M $393M $297M Working Capital Turns 7.5x 6.6x 6.9x Days Sales Outstanding 63 65 61 Inventory Turns 5.0x 4.5x 5.4x Total Debt Principal Amount $1.52B $1.56B $1.42B Net Leverage(2) 3.8x 3.6x 2.6x (1) Cash and Cas
Slide 8: 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 $500 NO NEAR-TERM MATURITIES $526 $400 $409 $300 $350 $200 NO MAINTENANCE COVENANTS $234 $100 $0 2020 2021 2022 2023 2024 2025 2026 2027 2028 Strong balance
Slide 9: Q3 2020 Cash Flow Highlights
Q3 2020 Cash Flow Highlights TTM TTM Q3 2020 Q3 2019 Q3 2020 Q3 2019 Cash flows from operating activities $50.8M $67.9M $226.1M $277.9M Less: Net capital expenditures(1) $15.1M $23.3M $92.7M $108.5M Free cash flow(2) $35.7M $44.6M $136.4M $169.4M (1) Capital expenditures inclusive of Grass Valley, n
Slide 10: Outlook
Outlook Q4 2020 • Revenue of $460 - $485 million • Adjusted Earnings Per Share(1)(2) of $0.63 - $0.78 Full Year 2020 • Revenue of $1.824 - $1.849 billion • Adjusted Earnings Per Share(1)(2) of $2.47 - $2.62 Full Year 2020 Assumptions • Interest expense of $58 million • Tax rate of 18% (1) Adjusted O
Slide 11: Questions?
QUESTIONS? Q3 2020 Earnings Release |
Slide 12: Appendix
APPENDIX Q3 2020 Earnings Release |
Slide 13: Statement of Operations
Statement of Operations Three Months Ended Nine Months Ended September 27, September 29, September 27, September 29, 2020 2019 2020 2019 (In thousands, except per share data) Revenues $ 475,839 $ 533,098 $ 1,364,176 $ 1,581,590 Cost of sales (308,247) (334,293) (876,143) (990,857) Gross profit 167,5
Slide 14: Operating Segment Information
Operating Segment Information Effective January 1, 2020, we transferred our West Penn Wire business and multi- conductor product lines from the Enterprise Solutions segment to the Industrial Solutions segment, and as such, have recast the prior period segment information. Q3 2020 Earnings Release |
Slide 15: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results (1) Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation of Non-GAAP Measures for additional information. Q3 2020 Earnings Release | 15
Slide 16: Balance Sheet
Balance Sheet September 27, 2020 December 31, 2019 (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 391,497 $ 407,480 Receivables, net 331,232 334,634 Inventories, net 244,815 231,333 Other current assets 39,211 29,172 Current assets of discontinued operations — 375,135
Slide 17: Cash Flow Statement
Cash Flow Statement Nine Months Ended September 27, September 29, 2020 2019 (In thousands) Cash flows from operating activities: Net loss $ (62,019) $ (229,547) Adjustments to reconcile net loss to net cash provided by operating activities: Asset impairment of discontinued operations 113,007 342,146
Slide 18: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 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 expense due to pla
Slide 19: 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 expens
Slide 20: 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 21: Free Cash Flow GAAP to Non-GAAP Reconciliation
Free Cash Flow GAAP to Non-GAAP Reconciliation Our guidance for income from continuing operations 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, o