Slide 1: 2nd Quarter 2017 Earnings Release Conference Call
2nd Quarter 2017 Earnings Release Conference Call August 2, 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 third quarter and full year. Forward- looking statements include projections of sales, earnings, general economic conditions, market conditions, working cap
Slide 3: Q2 2017 Highlights
Q2 2017 Highlights • Delivered revenues of $610.6 million, increasing 2.3% year- over-year on a constant currency basis • Generated EBITDA margins of 18.3%, increasing 40 basis points year-over-year • Completed the acquisition of Thinklogical, a leading global provider of secure, high-performance sw
Slide 4: Q2 2017 Segment Overview
Q2 2017 Segment Overview Revenue $188.1M Broadcast Solutions Automation Playout Drop, Headend & Cameras Signal Processing Monitoring KVM & Branding EBITDA Margin 15.7% & Routing Systems Systems Hardline Connectors Switches Revenue $160.7M Enterprise Solutions Racks & Copper & Fiber Ethernet, Precisi
Slide 5: Q2 2017 Financial Summary
Q2 2017 Financial Summary Q2 2017 Q1 2017 Q2 2016 Revenue $610.6M $551.4M $603.4M Gross profit $252.1M $228.3M $252.0M Gross profit percentage 41.3% 41.4% 41.8% EBITDA $111.8M $93.0M $108.1M EBITDA percentage 18.3% 16.9% 17.9% Net Income(1) $64.3M $47.8M $65.5M Earnings Per Share(2) $1.29 $0.92 $1.5
Slide 6: Q2 2017 Segment Results
Q2 2017 Segment Results Broadcast Enterprise Industrial Network Consolidated Solutions Solutions Solutions Solutions Q2 2017 Revenue $188.1M $160.7M $159.3M $102.6M $610.6M EBITDA(1) $29.6M $26.8M $31.0M $22.8M $111.8M EBITDA Margin 15.7% 16.7% 19.5% 22.2% 18.3% Q1 2017 Revenue $168.6M $145.7M $146.
Slide 7: Q2 2017 Balance Sheet Highlights
Q2 2017 Balance Sheet Highlights Q2 2017 Q1 2017 Q2 2016 Cash and cash equivalents $670M $816M $176M Working Capital Turns 7.0x 8.1x 7.1x Days sales outstanding 63 days 64 days 60 days PP&E turns 7.6x 7.1x 7.6x Total debt principal amount $1.70B $1.66B $1.71B Net Leverage(1) 2.2x 1.9x 3.6x (1) Net l
Slide 8: Q2 2017 Cash Flow Highlights
Q2 2017 Cash Flow Highlights Q2 2017 Q2 2016 YTD 2017 YTD 2016 Cash flows from operating activities $ 47.0M $ 48.0M $ 34.8M $ 60.6M Less: Net capital expenditures(1) $ 11.8M $ 11.7M $ 22.2M $ 25.1M Free cash flow (2) $ 35.2M $ 36.3M $ 12.6M $ 35.5M Cash used to acquire businesses(3) $ 166.9M $ 2.5M
Slide 9: Outlook
Outlook Q3 2017 • Revenue of $615 - $635 million • Earnings Per Share(1)(2) of $1.35 - $1.45 2017 Full Year • Revenue of $2.415 - $2.445 billion • Earnings Per Share(1)(2) of $5.35 - $5.55 (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 Six Months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 (In thousands, except per share data) Revenues $ 610,633 $ 601,631 $ 1,162,014 $ 1,143,128 Cost of sales (368,124) (353,418) (697,391) (669,880) Gross profit 242,509 248,213 464
Slide 13: Operating Segment Information
Operating Segment Information Unaudited Broadcast Enterprise Industrial Network Total Solutions Solutions Solutions Solutions Segments (In thousands, except percentages) For the three months ended July 2, 2017 Segment Revenues $ 188,071 $ 160,733 $ 159,255 $ 102,574 $ 610,633 Segment EBITDA 29,610 2
Slide 14: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Unaudited Three Months Ended Six Months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 (In thousands) Total Segment Revenues $ 610,633 $ 603,381 $ 1,162,014 $ 1,147,181 Deferred revenue adjustments — (1,750) — (4,053) Consolidated R
Slide 15: Balance Sheet
Balance Sheet July 2, 2017 December 31, 2016 (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 670,360 $ 848,116 Receivables, net 419,591 388,059 Inventories, net 252,534 190,408 Other current assets 43,623 29,176 Assets held for sale 30,743 23,193 Total current assets 1,
Slide 16: Cash Flow Statement
Cash Flow Statement Unaudited Six Months Ended July 2, 2017 July 3, 2016 (In thousands) Cash flows from operating activities: Net income $ 61,472 $ 58,291 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 73,693 75,445 Share-based compens
Slide 17: GAAP to Non-GAAP Reconciliation
Q2 2017 GAAP to Non-GAAP Reconciliation Unaudited Three Months Ended Six Months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 (In thousands, except percentages and per share amounts) GAAP revenues $ 610,633 $ 601,631 $ 1,162,014 $ 1,143,128 Deferred revenue adjustments — 1,750 — 4,053 In
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 Q3 and Full-Year 2017 Earnings Guidance
Reconciliation of Non-GAAP Measures Q3 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,