Slide 1: Q3 2021 Earnings Release
Q3 2021 EARNINGS RELEASE Conference Call | November 3, 2021 Q3 2021 Earnings Release |
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements Our commentary and responses to your questions may contain forward-looking statements, including our outlook for the fourth quarter and full- year 2021, and the continuing impact of the global pandemic. Forward-loo
Slide 3: Executive Summary
Executive Summary Delivered another strong quarter • Revenue and EPS exceeded our guidance ranges 1 • Robust demand trends, resulted in a book to bill of 1.13x • Solution selling strategy and new product innovations gaining momentum Navigating the inflationary environment and supply chain challenges
Slide 4: Solution Selling Strategy
Solution Selling Strategy Industrial Automation Case Studies Customer Recent Engagement Business Outcome 1. World leader in warehouse Completed a factory floor network Expected deployment of a comprehensive automation systems assessment in anticipation of hardware / software networking solution prov
Slide 5: Innovative New Products Enabling Advanced Solutions
Innovative New Products Enabling Advanced Solutions Industrial Automation: ProLinx Edge Cellular Communications Gateway • Cloud-based device management platform with integrated security firewalls • Used to enable remote connection to machines and data monitoring via a smart and secure cloud-based ne
Slide 6: Q3 2021 Financial Highlights
Q3Financial Goals 2021 Highlights Revenue of $631M, EBITDA increased 54% EPS of $1.31, Increased FY 2021 compared to guidance of year over year to $101M compared to guidance revenue guidance from $590M - $605M of $1.11 - $1.21 $2.320 - $2.350 billion EBITDA margin of 16.0%, and $0.72 in the to Total
Slide 7: Q3 2021 Financial Summary
Q3 2021 Financial Summary Q3 2021 Q2 2021 Q3 2020 Revenue $631.3M $602.8M $475.8M Gross profit $227.9M $215.2M $168.2M Gross profit percentage 36.1% 35.7% 35.3% EBITDA $100.7M $93.4M $65.3M EBITDA percentage 16.0% 15.5% 13.7% Net Income(1) $59.6M $54.7M $32.2M Earnings Per Share(2) $1.31 $1.21 $0.72
Slide 8: Q3 2021 Segment Results
Q3 2021 Segment Results Industrial Enterprise Consolidated Solutions Solutions Q3 2021 Revenue $345.1M $286.2M $631.3M EBITDA(1) $59.6M $40.2M $100.7M EBITDA Margin 17.3% 14.0% 16.0% Q2 2021 Revenue $335.3M $267.5M $602.8M EBITDA(1) $56.7M $35.3M $93.4M EBITDA Margin 16.9% 13.2% 15.5% Q3 2020 Revenu
Slide 9: Q3 2021 Balance Sheet Highlights
Q3 2021 Balance Sheet Highlights Q3 2021 Q2 2021 Q3 2020 Cash and Cash Equivalents $458M $423M $391M Working Capital Turns 7.8x 7.6x 6.6x Days Sales Outstanding 56 53 58 Inventory Turns 5.2x 5.1x 5.0x Total Debt Principal Amount $1.51B $1.54B $1.52B Net Leverage(1) 2.8x 3.3x 3.8x (1) Net leverage is
Slide 10: Attractive Debt Maturity Schedule
Attractive Debt Maturity Schedule $M $600 Euro-denominated debt at a $523 New $500 pre-tax cost of 3.6% Issuance in July 2021 $407 $400 No maturities until $348 $300 2026 - 2031 $232 $200 No maintenance covenants $100 $0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Extended the 2025 maturi
Slide 11: Q3 2021 Cash Flow Highlights
Q3 2021 Cash Flow Highlights YTD YTD Q3 2021 Q3 2020 2021 2020 Cash flows from operating $75.0M $50.8M $101.9M $38.7M activities Less: Net capital expenditures(1) $24.7M $15.1M $52.3M $53.7M Free cash flow(2) $50.3M $35.7M $49.6M ($15.0M) (1) YTD 2020 is inclusive of Grass Valley, net of proceeds fr
Slide 12: Outlook
Outlook Q4 2021 • Revenue of $615 - $630 million • Earnings Per Share(1) of $1.21 - $1.31 Full Year 2021 • Revenue of $2.385 - $2.400 billion • Earnings Per Share(1) of $4.67 - $4.77 Full Year 2021 Assumptions • Interest expense of $62 million • Tax rate of 19.1% Adjusted Outlook. See Appendix for r
Slide 13: Investment Thesis
Investment Thesis Accelerating Organic Growth Expanding EBITDA Margin Strengthening Balance Sheet Aligned with secular growth markets Solid operating leverage Robust free cash flow growth Improved solution selling capabilities Improving productivity Reduced net leverage, back within the targeted ran
Slide 14: Questions?
QUESTIONS? Q3 2021 Earnings Release |
Slide 15: Appendix
APPENDIX Q3 2021 Earnings Release |
Slide 16: Statement of Operations
Statement of Operations Q3 2021 Earnings Release | 16
Slide 17: Operating Segment Information
Operating Segment Information Q3 2021 Earnings Release | 17
Slide 18: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Q3 2021 Earnings Release | 18
Slide 19: Balance Sheet
Balance Sheet Q3 2021 Earnings Release | 19
Slide 20: Cash Flow Statement
Cash Flow Statement Q3 2021 Earnings Release | 20
Slide 21: 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 22: 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 23: 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 24: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 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, our results