Slide 1: 2nd Quarter 2016 Earnings Release Conference Call
2nd Quarter 2016 Earnings Release Conference Call July 19, 2016 © 2016 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 2016 third quarter, second half and full year. Forward-looking statements also include projections of sales, earnings, general economic conditions, market condit
Slide 3: Q2 2016 Highlights
Q2 2016 Highlights • Achieved revenues of $603.4 million, an increase of 2.6% organically from the prior-year period; • Generated EBITDA margins of 17.9%, increasing 120 basis from 16.7% in the year-ago period; • Achieved EPS of $1.54, up 27% over last year’s $1.21; • Generated an additional $57.5 m
Slide 4: Q2 2016 Segment Overview
Q2 2016 Segment Overview Revenue $193.5M Broadcast Automation Playout Camera Mounted Signal Processing Monitoring Drop, Headend and EBITDA Margin 15.2% Fiber Solutions & Routing Systems & Branding Hardline Connectors Systems Revenue $160.4M Enterprise Connectivity Racks and Copper and Fiber Ethernet
Slide 5: Q2 2016 Financial Summary
Q2 2016 Financial Summary Q2 2016 Q1 2016 Q2 2015 Revenue $603.4M $543.8M $598.5M Gross profit $252.0M $229.8M $249.5M Gross profit percentage 41.8% 42.3% 41.7% EBITDA $108.1M $89.1M $100.1M EBITDA percentage 17.9% 16.4% 16.7% Net Income1 $65.5M $42.7M $52.2M Earnings Per Share1 $1.54 $1.01 $1.21 Ad
Slide 6: Q2 2016 Segment Results
Q2 2016 Segment Results Enterprise Industrial Network Broadcast Industrial IT Consolidated Connectivity Connectivity Security Q2 2016 Revenue $193.5M $160.4M $147.8M $62.5M $39.1M $603.4M EBITDA(1) $29.5M $29.6M $27.1M $12.7M $9.5M $108.1M EBITDA Margin 15.2% 18.4% 18.3% 20.3% 24.3% 17.9% Q1 2016 Re
Slide 7: Q2 2016 Balance Sheet Highlights
Q2 2016 Balance Sheet Highlights Q2 2016 Q1 2016 Q2 2015 Cash and cash equivalents $176M $146M $208M Inventory turns 7.1x 5.9x 6.0x Days sales outstanding 60 days 60 days 64 days PP&E turns 7.6x 6.8x 7.3x Total debt principal amount $1.71B $1.72B $1.92B Net Leverage1 3.6x 3.7x 3.9x (1) Net leverage
Slide 8: Q2 2016 Cash Flow Highlights
Q2 2016 Cash Flow Highlights Q2 2016 Q2 2015 YTD 2016 YTD 2015 Cash flows from operating activities $ 47.8M $ 53.3M $60.5M $ 5.0M Less: Net capital expenditures(1) $ 11.7M $ 11.7M $ 25.1M $ 27.1M Free cash flow (2) $ 36.1M $ 41.6M $ 35.4M $ (22.1M) Cash used to acquire businesses(3) $ 2.5M $ 0.0M $
Slide 9: Outlook
Outlook Q3 2016(1) • Revenue of $595 - $615 million • Earnings Per Share2 of $1.35 - $1.45 2016 Full Year(1) • Revenue of $2.355 - $2.385 billion • Earnings Per Share2 of $5.50 - $5.70 (1) Adjusted Outlook. See Appendix for reconciliation to comparable GAAP outlook. (2) All references to EPS refer t
Slide 10: Questions?
Questions? © 2015 Belden Inc. | belden.com | @BeldenInc © 2016 Belden Inc. | belden.com | @BeldenInc 10
Slide 11: Appendix
Appendix © 2016 Belden Inc. | belden.com | @BeldenInc 11
Slide 12: Statement of Operations
Statement of Operations Unaudited Three Months Ended Six Months Ended July 3, 2016 June 28, 2015 July 3, 2016 June 28, 2015 (In thousands, except per share data) Revenues $ 601,631 $ 585,755 $ 1,143,128 $ 1,132,712 Cost of sales (353,418) (351,479) (669,880) (690,787) Gross profit 248,213 234,276 47
Slide 13: Operating Segment Information
Operating Segment Information Unaudited Broadcast Enterprise Industrial Industrial Network S olutions Connectivity Connectivity IT S ecurity Total S egments (In thousands, except percentages) For the three months ended July 3, 2016 Segment Revenues $ 193,521 $ 160,401 $ 147,808 $ 62,510 $ 39,141 $ 6
Slide 14: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Unaudited Three Months Ended July 3, 2016 June 28, 2015 April 3, 2016 (In thousands) Total Segment Revenues $ 603,381 $ 598,513 $ 543,800 Deferred revenue adjustments (1,750) (12,758) (2,303) Consolidated Revenues $ 601,631 $ 585,755 $ 541,497
Slide 15: Balance Sheet
July 3, 2016 December 31, 2015 Balance Sheet (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 175,772 $ 216,751 Receivables, net 393,436 387,386 Inventories, net 198,625 195,942 Other current assets 51,403 37,079 Total current assets 819,236 837,158 Property, plant and e
Slide 16: Cash Flow Statement
Cash Flow Statement Unaudited Six Months Ended July 3, 2016 June 28, 2015 (In thousands) Cash flows from operating activities: Net income $ 58,175 $ 1,955 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 75,445 75,654 Share-based compens
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 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 Unaudited certain items, including: asset impairments; accelerated depreciation expense due
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 2016 Revenue and Earnings Guidance
Reconciliation of Non-GAAP Measures 2016 Revenue and Earnings Guidance Year Ended Three Months Ended December 31, 2016 October 2, 2016 Adjusted revenues $2.355 - $2.385 billion $595 - $615 million Deferred revenue adjustments ($7 million) ($2 million) GAAP revenues $2.348 - $2.378 billion $593 - $61