Slide 1: 4th Quarter 2016 Earnings Release Conference Call
4th Quarter 2016 Earnings Release Conference Call February 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 first quarter and full year. Forward- looking statements also include projections of sales, earnings, general economic conditions, market conditions, workin
Slide 3: Q4 2016 Highlights
Q4 2016 Highlights • Delivered revenues of $608.2 million, increasing 80 basis points organically from the prior-year period • Generated record EBITDA of $122.5 million, growing 7% year-over-year • Achieved record EBITDA margins of 20.1%, an increase of 110 basis points from 19.0% in the year-ago pe
Slide 4: FY 2016 Highlights
FY 2016 Highlights • Achieved revenues of $2.36 billion, growing 130 basis points on an organic basis • Expanded EBITDA margins to a record 18.3%, increasing 130 basis points from 17.0% in 2015 • Delivered net income of $240.0 million, growing 12% • Generated $261.2 million of free cash flow, increa
Slide 5: Q4 2016 Segment Overview
Q4 2016 Segment Overview Revenue $208.8M Broadcast Solutions Camera Mounted Signal Processing Monitoring Automation Playout Drop, Headend and EBITDA Margin 23.3% Fiber Solutions & Routing Systems & Branding Hardline Connectors Systems Revenue $150.2M Enterprise Connectivity Racks and Copper and Fibe
Slide 6: Q4 2016 Financial Summary
Q4 2016 Financial Summary Q4 2016 Q3 2016 Q4 2015 Revenue $608.2M $602.5M $602.5M Gross profit $264.1M $250.4M $259.6M Gross profit percentage 43.4% 41.6% 43.1% EBITDA $122.5M $111.5M $114.6M EBITDA percentage 20.1% 18.5% 19.0% Net Income1 $70.3M $61.4M $69.3M Earnings Per Share2 $1.42 $1.29 $1.63 A
Slide 7: Q4 2016 Segment Results
Q4 2016 Segment Results Enterprise Industrial Network Broadcast Industrial IT Consolidated Connectivity Connectivity Security Q4 2016 Revenue $208.8M $150.2M $146.7M $58.9M $43.5M $608.2M EBITDA(1) $48.6M $20.7M $27.5M $11.0M $15.0M $122.5M EBITDA Margin 23.3% 13.8% 18.8% 18.7% 34.6% 20.1% Q3 2016 R
Slide 8: Q4 2016 Balance Sheet Highlights
Q4 2016 Balance Sheet Highlights Q4 2016 Q3 2016 Q4 2015 Cash and cash equivalents $848M $748M $217M Inventory turns 7.4x 7.3x 7.1x Days sales outstanding 57 days 61 days 62 days PP&E turns 7.9x 7.4x 7.7x Total debt principal amount $1.64B $1.71B $1.75B Net Leverage1 1.8x 2.2x 3.6x (1) Net leverage
Slide 9: Q4 2016 Cash Flow Highlights
Q4 2016 Cash Flow Highlights Q4 2016 Q4 2015 FY 2016 FY 2015 Cash flows from operating activities $167.4M $ 144.4M $314.8M $241.5M Less: Net capital expenditures(1) $17.8M $ 15.5M $53.6M $ 54.4M Free cash flow (2) $149.6M $ 128.9M $261.2M $ 187.0M Cash used to acquire businesses(3) $1.0M $ 0.0M $18.
Slide 10: Outlook
Outlook Q1 2017(1) • Revenue of $540 - $560 million • Earnings Per Share2 of $0.83 - $0.93 2017 Full Year(1) • Revenue of $2.355 - $2.405 billion • Earnings Per Share2 of $4.95 - $5.20 (1) Adjusted Outlook. See Appendix for reconciliation to comparable GAAP outlook. (2) All references to Earnings Pe
Slide 11: Questions?
Questions? © 2017 Belden Inc. | belden.com | @BeldenInc © 2017 Belden Inc. | belden.com | @BeldenInc 11
Slide 12: Appendix
Appendix © 2017 Belden Inc. | belden.com | @BeldenInc 12
Slide 13: Statements of Operations
Statements of Operations Unaudited Three Months Ended Twelve Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (In thousands, except per share data) Revenues $ 612,435 $ 597,244 $ 2,356,672 $ 2,309,222 Cost of sales (350,651) (347,127) (1,375,678) (1,391,049) Gross
Slide 14: Operating Segment Information
Operating Segment Information Unaudited Enterprise Industrial Industrial Network Broadcast Connectivity Connectivity IT Security Total Solutions Solutions Solutions Solutions Solutions Segments (In thousands, except percentages) For the three months ended December 31, 2016 Segment Revenues $ 208,787
Slide 15: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Unaudited Three Months Ended Twelve Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (In thousands) Total Segment Revenues $ 608,156 $ 602,504 $ 2,357,805 $ 2,360,583 Deferred revenue adjustments (1,275) (5,
Slide 16: Balance Sheet
Balance Sheet December 31, 2016 December 31, 2015 (In thousands) ASSETS Current assets: Cash and cash equivalents $ 848,116 $ 216,751 Receivables, net 388,059 387,386 Inventories, net 190,408 195,942 Other current assets 29,176 37,079 Assets held for sale 23,193 — Total current assets 1,478,952 837,
Slide 17: Cash Flow Statement
Cash Flow Statement Twelve Months Ended Unaudited December 31, 2016 December 31, 2015 (In thousands) Cash flows from operating activities: Net income $ 127,646 $ 66,180 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 145,593 150,342 Imp
Slide 18: Q4 2016 and FY 2016 GAAP to Non-GAAP Reconciliation
Q4 2016 and FY 2016 GAAP to Non-GAAP Reconciliation Unaudited Three Months Ended Twelve Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (In thousands, except percentages and per share amounts) GAAP revenues $ 612,435 $ 597,244 $ 2,356,672 $ 2,309,222 Deferred rev
Slide 19: 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 20: Reconciliation of Non-GAAP Measures: Revenue and Earnings Guidance
Reconciliation of Non-GAAP Measures 2016 Revenue and 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, our