Slide 1: 3rd Quarter 2015 Earnings Release Conference Call
3rd Quarter 2015 Earnings Release Conference Call October 28, 2015 © 2015 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 2015 fourth quarter and full year. Forward- looking statements include statements regarding future financial performance (including revenues, expenses, earnings,
Slide 3: Q3 2015 Highlights
Q3 2015 Highlights • Generated revenues of $590.1 million; • Achieved gross profit margins of 40.8%, increasing 320 basis points from 37.6% in the year-ago period; • Expanded EBITDA margins to 16.5%, increasing 80 basis points from 15.7% in the year-ago period; • Repurchased approximately 698,000 sh
Slide 4: 3rd Quarter Segment Overview
3rd Quarter Segment Overview Revenue $228.1M Broadcast Automation Playout Camera Mounted Signal Processing Precision A/V Monitoring EBITDA Margin 15.3% & Branding Fiber Solutions & Routing Cable and Connectivity Systems Systems Revenue $113.8M Enterprise Connectivity Racks and Copper and Fiber Ether
Slide 5: Q3 2015 Financial Summary
Q3 2015 Financial Summary Q3 2015 Q2 2015 Q3 2014 Revenue $590.1M $598.5M $613.1M Gross profit $240.7M $249.5M $230.2M Gross profit percentage 40.8% 41.7% 37.6% EBITDA $97.5M $100.1M $96.3M EBITDA percentage 16.5% 16.7% 15.7% Income from continuing operations $48.9M $52.2M $50.4M Income from continu
Slide 6: Segment Results
Segment Results Enterprise Industrial Network Broadcast Industrial IT Consolidated Connectivity Connectivity Security Q3 2015 Revenue $228.1M $113.8M $147.7M $59.2M $41.4M $590.1M EBITDA(1) $34.9M $18.2M $23.2M $10.5M $11.2M $97.5M EBITDA Margin 15.3% 16.0% 15.7% 17.7% 27.2% 16.5% Q2 2015 Revenue $2
Slide 7: Balance Sheet Highlights
Balance Sheet Highlights Q3 2015 Q2 2015 Q3 2014 Cash and cash equivalents $241.9M $208.4M $449.1M Inventory turns 6.7x 6.0X 7.0 x Days sales outstanding 63 days 64 days 62 days PP&E turns 7.4x 7.3x 7.6x Total debt principal amount $1.91B $1.92B $1.54B © 2015 Belden Inc. | belden.com | @BeldenInc 7
Slide 8: Cash Flow Highlights
Cash Flow Highlights Q3 2015 Q2 2015 Q3 2014 Cash flows from operating activities $ 86.9M $ 53.3M $ 63.2M(1) Less: Net capital expenditures(2) $ 11.8M $ 11.7M $ 8.3M Free cash flow (3) $ 75.1M $ 41.6M $ 54.9M Cash used to acquire businesses(4) $ 0.0M $ 0.0M $ 1.6M Share repurchases and dividends $ 4
Slide 9: Outlook
Outlook Q4 2015(1) • Revenue of $595 - $615 million • Income from continuing operations per diluted share of $1.45 - $1.55 2015 Full Year(1) • Revenue of $2.353 - $2.373 billion • Income from continuing operations per diluted share of $4.80 - $4.90 (1) Adjusted outlook. See Appendix for reconciliati
Slide 10: Appendix
Appendix © 2015 Belden Inc. | belden.com | @BeldenInc 10
Slide 11: Statements of Operations and Comprehensive Income
Statements of Operations and Comprehensive Income (Unaudited) Three Months Ended Nine Months Ended September 27, 2015 September 28, 2014 September 27, 2015 September 28, 2014 (In thousands, e xce pt pe r share data) Revenues $ 579,266 $ 610,774 $ 1,711,978 $ 1,699,355 Cost of sales (353,135) (389,04
Slide 12: Balance Sheet
Balance Sheet September 27, 2015 December 31, 2014 (Unaudite d) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 241,897 $ 741,162 Receivables, net 403,436 379,777 Inventories, net 210,088 228,398 Deferred income taxes 20,727 22,157 Other current assets 77,227 42,656 Total current a
Slide 13: Cash Flow Statement
Cash Flow Statement (Unaudited) Nine Months Ended September 27, 2015 September 28, 2014 (In thousands) Cash flows from operating activities: Net income $ 16,524 $ 58,456 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 113,141 74,382 Sha
Slide 14: 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 provided by operating activities adjusted for capital expenditures net of the proceeds from the disposal of tangible assets, and cash payments for severance and oth
Slide 15: GAAP to Non-GAAP Reconciliation - Consolidated
GAAP to Non-GAAP Reconciliation - Consolidated (Unaudited) 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 deprecia
Slide 16: Segment Operating Information
Segment Operating Information (Unaudited) Broadcast Enterprise Industrial Industrial Network S olutions Connectivity Connectivity IT S ecurity Total S egments (In thousands, e xce pt pe rce ntage s) For the three months ended S eptember 27, 2015 Segment Revenues $ 228,097 $ 113,773 $ 147,702 $ 59,18
Slide 17: Segment Operating Information
Segment Operating Information (Unaudited) Three Months Ended September 27, 2015 June 28, 2015 September 28, 2014 (In thousands) Total Segment Revenues $ 590,115 $ 598,513 $ 613,131 Deferred revenue adjustments (10,849) (12,758) (2,357) Consolidated Revenues $ 579,266 $ 585,755 $ 610,774 Total Segmen
Slide 18: Reconciliation of Non-GAAP Measures 2015 Revenue and Earnings Guidance
Reconciliation of Non-GAAP Measures 2015 Revenue and Earnings Guidance Year Ended Three Months Ended December 31, 2015 December 31, 2015 Adjusted revenues $2.353 - $2.373 billion $595 - $615 million Deferred revenue adjustments ($55 million) ($9 million) GAAP revenues $2.298 - $2.318 billion $586 -