Slide 1: 1st Quarter 2017 Earnings Release Conference Call
1st Quarter 2017 Earnings Release Conference Call May 3, 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 second quarter and full year. Forward- looking statements include projections of sales, earnings, general economic conditions, market conditions, working ca
Slide 3: Q1 2017 Highlights
Q1 2017 Highlights • Delivered revenues of $551.4 million, increasing 140 basis points from the prior-year period • Generated EBITDA of $93.0 million, growing 4.4% year- over-year • Expanded EBITDA margins 50 basis points to 16.9% • Achieved net income of $47.8 million, increasing 12.1% from the yea
Slide 4: Q1 2017 Segment Overview
Q1 2017 Segment Overview Revenue $168.6M Broadcast Solutions Camera Mounted Signal Processing Monitoring Automation Playout Drop, Headend & & Branding EBITDA Margin 15.1% Fiber Solutions & Routing Systems Systems Hardline Connectors Revenue $145.7M Enterprise Solutions Racks & Copper & Fiber Etherne
Slide 5: Q1 2017 Financial Summary
Q1 2017 Financial Summary Q1 2017 Q4 2016 Q1 2016 Revenue $551.4M $608.2M $543.8M Gross profit $228.3M $264.1M $229.8M Gross profit percentage 41.4% 43.4% 42.3% EBITDA $93.0M $122.5M $89.1M EBITDA percentage 16.9% 20.1% 16.4% Net Income(1) $47.8M $70.3M $42.7M Earnings Per Share(2) $0.92 $1.42 $1.01
Slide 6: Q1 2017 Segment Results
Q1 2017 Segment Results Broadcast Enterprise Industrial Network Consolidated Solutions Solutions Solutions Solutions Q1 2017 Revenue $168.6M $145.7M $146.2M $90.9M $551.4M EBITDA(1) $25.4M $24.1M $25.7M $17.9M $93.0M EBITDA Margin 15.1% 16.5% 17.6% 19.7% 16.9% Q4 2016 Revenue $208.8M $150.2M $146.7M
Slide 7: Q1 2017 Balance Sheet Highlights
Q1 2017 Balance Sheet Highlights Q1 2017 Q4 2016 Q1 2016 Cash and cash equivalents $816M $848M $146M Working Capital Turns 8.1x 15.4x 7.5x Days sales outstanding 64 days 57 days 60 days PP&E turns 7.1x 7.9x 6.8x Total debt principal amount $1.66B $1.64B $1.72B Net Leverage(1) 1.9x 1.8x 3.7x (1) Net
Slide 8: Q1 2017 Cash Flow Highlights
Q1 2017 Cash Flow Highlights Q1 2017 Q1 2016 Cash flows from operating activities $(12.3)M $12.6 M Less: Net capital expenditures(1) $10.4M $13.4M Free cash flow (2) $(22.7)M $(0.8)M Cash used to acquire businesses(3) $0.0M $15.3M Share repurchases and dividends $10.8M $2.1M (1) Capital expenditures
Slide 9: Outlook
Outlook Q2 2017 • Revenue of $595 - $615 million • Earnings Per Share(1)(2) of $1.15 - $1.25 2017 Full Year • Revenue of $2.355 - $2.405 billion • Earnings Per Share(1)(2) of $4.95 - $5.20 (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 April 2, 2017 April 3, 2016 (In thousands, except per share data) Revenues $ 551,381 $ 541,497 Cost of sales (329,267) (316,462) Gross profit 222,114 225,035 Selling, general and administrative expenses (112,586) (122,406) Research and developmen
Slide 13: Operating Segment Information
Operating Segment Information Broadcast Solutions Enterprise Solutions Industrial Solutions Network Solutions Total Segments Unaudited (In thousands, except percentages) For the three months ended April 2, 2017 Segment Revenues $ 168,596 $ 145,682 $ 146,181 $ 90,922 $ 551,381 Segment EBITDA 25,400 2
Slide 14: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Unaudited Three Months Ended April 2, 2017 April 3, 2016 (In thousands) Total Segment Revenues $ 551,381 $ 543,800 Deferred revenue adjustments — (2,303) Consolidated Revenues $ 551,381 $ 541,497 Total Segment EBITDA $ 93,110 $ 90,066 Income (
Slide 15: Balance Sheet
Balance Sheet April 2, 2017 December 31, 2016 (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 815,924 $ 848,116 Receivables, net 381,704 388,059 Inventories, net 218,404 190,408 Other current assets 36,475 29,176 Assets held for sale 25,916 23,193 Total current assets 1
Slide 16: Cash Flow Statement
Cash Flow Statement Unaudited Three Months Ended April 2, 2017 April 3, 2016 (In thousands) Cash flows from operating activities: Net income $ 25,581 $ 16,358 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation and amortization 35,052 37,195 Shar
Slide 17: GAAP to Non-GAAP Reconciliation
Q1 2017 GAAP to Non-GAAP Reconciliation Unaudited Three Months Ended April 2, 2017 April 3, 2016 (In thousands, except percentages and per share amounts) GAAP revenues $ 551,381 $ 541,497 Deferred revenue adjustments — 2,303 Adjusted revenues $ 551,381 $ 543,800 In addition to reporting financial re
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 Q2 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,