Slide 1: Q1 2021 Earnings Release
Q1 2021 EARNINGS RELEASE Conference Call | May 5, 2021 Q1 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 second quarter and full- year 2021, and the continuing impact of the global pandemic. Forward-loo
Slide 3: Q1 2021 Highlights
Q1Financial Goals 2021 Highlights Revenue of $536.4M, EBITDA increased 32% EPS of $0.94, Increased FY 2021 compared to guidance year over year to compared to guidance revenue guidance from of $80.1M of $0.60 - $0.70 $1.990 - $2.050 billion $490M - $505M to EBITDA margin of EPS growth of 40% $2.130 -
Slide 4: Strategic Growth Initiatives
Strategic Growth Initiatives ALIGNMENT WITH COMMITMENT TO COMMERCIAL SECULAR GROWTH INNOVATION EXCELLENCE MARKETS Industrial Automation End-to-end industrial Enhanced solution selling networking solutions Cybersecurity Customer Innovation Cloud solutions and Centers (CICs) industrial cybersecurity B
Slide 5: Q1 2021 Financial Summary
Q1 2021 Financial Summary Q1 2021 Q4 2020 Q1 2020 Revenue $536.4M $498.5M $463.5M Gross profit $193.1M $176.3M $170.9M Gross profit percentage 36.0% 35.4% 36.9% EBITDA $80.1M $74.0M $60.8M EBITDA percentage 14.9% 14.8% 13.1% Net Income(1) $42.4M $40.5M $30.5M Earnings Per Share(2) $0.94 $0.90 $0.67
Slide 6: Q1 2021 Segment Results
Q1 2021 Segment Results Industrial Enterprise Consolidated Solutions Solutions Q1 2021 Revenue $310.0M $226.4M $536.4M EBITDA(1) $51.4M $28.1M $80.1M EBITDA Margin 16.6% 12.4% 14.9% Q4 2020 Revenue $270.8M $227.7M $498.5M EBITDA(1) $47.3M $26.1M $74.0M EBITDA Margin 17.5% 11.5% 14.8% Q1 2020 Revenue
Slide 7: Q1 2021 Balance Sheet Highlights
Q1 2021 Balance Sheet Highlights Q1 2021 Q4 2020 Q1 2020 Cash and Cash Equivalents $371M $502M $251M Working Capital Turns 6.7x 10.3x 5.6x Days Sales Outstanding 54 50 57 Inventory Turns 5.0x 5.2x 4.6x Total Debt Principal Amount $1.53B $1.59B $1.40B Net Leverage(1) 4.0x 4.0x 2.8x (1) Net leverage i
Slide 8: A Quality Balance Sheet Provides Significant Flexibility
A Quality Balance Sheet Provides Significant Flexibility Fixed, long-term maturities Euro-denominated debt Pre-tax cost of debt = 3.5% $M $600 $528 $500 NO NEAR-TERM MATURITIES $411 $400 $352 $300 $235 $200 NO MAINTENANCE COVENANTS $100 $0 2021 2022 2023 2024 2025 2026 2027 2028 Strong balance sheet
Slide 9: Q1 2021 Cash Flow Highlights
Q1 2021 Cash Flow Highlights Q1 2021 Q1 2020 Cash flows from operating activities ($41.5M) ($52.1M) Less: Net capital expenditures(1) $11.2M $18.8M Free cash flow(2) ($52.7M) ($70.9M) (1) Q1 2020 is inclusive of Grass Valley, net of proceeds from the disposal of tangible assets. See Appendix for rec
Slide 10: Outlook
Outlook Q2 2021 • Revenue of $535 - $550 million • Adjusted Earnings Per Share(1)(2) of $0.88 - $0.98 Full Year 2021 • Revenue of $2.130 - $2.180 billion • Adjusted Earnings Per Share(1)(2) of $3.50 - $3.80 Full Year 2021 Assumptions • Interest expense of $61 million • Tax rate of 20% (1) Adjusted O
Slide 11: 2021 High End of Guidance
2021 High End of Guidance Revenue $40M $2.180B $90M $2.050B Prior 2021 Guidance Volume Copper prices/FX rates New 2021 Guidance EPS $0.50 $3.80 $3.30 Prior FY 2021 Guidance Volume Copper Prices / FX New FY 2021 Guidance (1) Adjusted Outlook, based on management’s best estimates. See Appendix for rec
Slide 12: Investment Thesis
Investment Thesis ACCELERATING EBITDA MARGIN DE-LEVERING ORGANIC GROWTH EXPANSION Aligned with secular growth EBITDA margin potential Robust free cash flow markets above prior peaks growth Exiting low-growth Exiting low-margin Targeting leverage of product lines product lines 2x – 3x net debt to EBI
Slide 13: Questions?
QUESTIONS? Q1 2021 Earnings Release |
Slide 14: Appendix
APPENDIX Q1 2021 Earnings Release |
Slide 15: Statement of Operations
Statement of Operations Q1 2021 Earnings Release | 15
Slide 16: Operating Segment Information
Operating Segment Information Q1 2021 Earnings Release | 16
Slide 17: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results (1) Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation of Non-GAAP Measures for additional information. Q1 2021 Earnings Release | 17
Slide 18: Balance Sheet
Balance Sheet Q1 2021 Earnings Release | 18
Slide 19: Cash Flow Statement
Cash Flow Statement The Consolidated Cash Flow Statement for the period ended March 29, 2020 includes the results of the Grass Valley disposal group sold on July 2, 2020. Q1 2021 Earnings Release | 19
Slide 20: 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 21: 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 22: 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 23: 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