Slide 1: Q4 2019 Earnings Release Conference Call
Q4 2019 Earnings Release Conference Call February 4, 2020 Q4 2019 Earnings Release |
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 first quarter and full-year 2020, the Grass Valley divestment plan and our restructuring program. Forward-looking statements include projections of sales, earnin
Slide 3: Q4 2019 Highlights
Q4 2019 Highlights • Announced a definitive agreement to divest Grass Valley in a transaction scheduled to close in the first half of 2020 • Revenues of $549.7M, compared to the guidance range of $510M to $530M and increasing 2.7% organically excluding changes in channel inventory levels • EPS of $1
Slide 4: FY 2019 Highlights
FY 2019 Highlights • Initiated transformative actions, including the divesture of Grass Valley, the ongoing $40M cost reduction program, and the planned exit of $250M in low growth/margin copper cable products • Revenues of $2.131B, increasing 1.0% organically excluding changes in channel inventory
Slide 5: Q4 2019 Segment Overview
Q4 2019 Segment Overview Revenue $280.2M Smart Buildings Enterprise Organic Growth % (Y/Y) 2.7%* Solutions Broadband & 5G EBITDA Margin 15.3% Revenue $269.5M Industrial Automation Industrial Organic Growth % (Y/Y) 2.7%* Solutions EBITDA Margin 18.8% Cybersecurity Adjusted results. See Appendix for r
Slide 6: Q4 2019 Financial Summary
Q4 2019 Financial Summary Q4 2019 Q3 2019 Q4 2018 Revenue $549.7M $533.1M $552.1M Gross profit $205.5M $199.5M $219.0M Gross profit percentage 37.4% 37.4% 39.7% EBITDA $92.9M $90.0M $103.2M EBITDA percentage 16.9% 16.9% 18.7% Net Income(1) $54.9M $54.4M $50.3M Earnings Per Share(2) $1.20 $1.19 $1.26
Slide 7: Q4 2019 Segment Results
Q4 2019 Segment Results Enterprise Industrial Consolidated Solutions Solutions Q4 2019 Revenue $280.2M $269.5M $549.7M EBITDA(1) $43.0M $50.8M $92.9M EBITDA Margin 15.3% 18.8% 16.9% Q3 2019 Revenue $280.9M $252.2M $533.1M EBITDA(1) $45.0M $44.8M $90.0M EBITDA Margin 16.0% 17.8% 16.9% Q4 2018 Revenue
Slide 8: Q4 2019 Balance Sheet Highlights
Q4 2019 Balance Sheet Highlights Q4 2019 Q3 2019 Q4 2018 Cash and Cash Equivalents(1) $426M $297M $421M Working Capital Turns 13.0x 6.0x 10.8x Days Sales Outstanding 57 61 56 Inventory Turns 6.0x 5.4x 5.1x PP&E Turns 6.4x 6.5x 7.1x Total Debt Principal Amount $1.46B $1.42B $1.49B Net Leverage(2) 2.5
Slide 9: Q4 2019 Cash Flow Highlights
Q4 2019 Cash Flow Highlights Q4 2019 Q4 2018 FY 2019 FY 2018 Cash flows from operating activities $187.4M $188.4M $276.9M $289.2M Less: Net capital expenditures(1) $35.9M $34.4M $110.0M $96.3M Free cash flow(2) $151.4M $154.0M $166.9M $193.0M Cash used to acquire businesses(3)(4) $23.4M $0.0M $74.4M
Slide 10: Outlook
Outlook Q1 2020 • Revenue of $485 - $505 million • Adjusted Earnings Per Share(1)(2) of $0.70 - $0.85 Full Year 2020 • Revenue of $2.060 - $2.140 billion • Adjusted Earnings Per Share(1)(2) of $4.25 - $4.75 Full Year 2020 Assumptions • Interest expense of $56 million • Tax rate of 20% (1) Adjusted O
Slide 11: 2020 High End of Guidance
2020 High End of Guidance Revenue $15M $44M $2.18B $2.13B $2.14B ($50M) 2019 Actual FY Impact of Cost Reduction Tax Rate Subtotal Organic Growth Productivity Channel 2019 Guidance 2019 Acquisitions Program Inventory High End EPS Reduction $0.38 $0.09 $0.12 $4.82 $4.75 $4.52 $0.07 ($0.15) ($0.28) 201
Slide 12: Questions?
Questions? Q4 2019 Earnings Release |
Slide 13: Appendix
Appendix Q4 2019 Earnings Release |
Slide 14: Statement of Operations
Statement of Operations Three Months Ended Twelve Months Ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 (In thousands, except per share data) Revenues $ 549,688 $ 552,052 $ 2,131,278 $ 2,165,702 Cost of sales (346,916) (335,058) (1,337,773) (1,335,791) Gross profit 202
Slide 15: Operating Segment Information
Operating Segment Information Enterprise Industrial Total (Unaudited) Solutions Solutions Segments (In thousands, except percentages) For the three months ended December 31, 2019 Segment Revenues $ 280,196 $ 269,492 $ 549,688 Segment EBITDA 42,988 50,787 93,775 Segment EBITDA margin 15.3 % 18.8 % 17
Slide 16: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, (Unaudited) 2019 2018 2019 2018 (In thousands) Total Segment Revenues $ 549,688 $ 552,052 $ 2,131,278 $ 2,165,702 Deferred revenue adjustments — — — — C
Slide 17: Balance Sheet
Balance Sheet December 31, 2019 December 31, 2018 (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 407,480 $ 407,454 Receivables, net 334,634 335,956 Inventories, net 231,333 265,002 Other current assets 29,172 31,828 Current assets of discontinued operations 375,978 219
Slide 18: Cash Flow Statement
Cash Flow Statement Twelve Months Ended (Unaudited) December 31, 2019 December 31, 2018 (In thousands) Cash flows from operating activities: Net income (loss) $ (376,776) 160,711 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Asset impairment of discontinued
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Three Months Ended Twelve Months Ended (Unaudited) December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 In addition to reporting financial results in accordance with accounting principles generally accepted in the United States, we provide non-G
Slide 20: Reconciliation of Non-GAAP Measures (continued)
Reconciliation of Non-GAAP Measures (continued) Three Months Ended Twelve Months Ended In addition to reporting financial results in accordance with accounting principles generally accepted in the United States, we provide non-GAAP operating results December 31, 2019 December 31, 2018 December 31, 2
Slide 21: Free Cash Flow GAAP to Non-GAAP Reconciliation
Free Cash Flow GAAP to Non-GAAP Reconciliation Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, (Unaudited) 2019 2018 2019 2018 (In thousands) GAAP net cash provided by operating activities $ 187,376 $ 188,361 $ 276,893 $ 289,220 Capital expenditures, net of
Slide 22: Reconciliation of Non-GAAP Measures: Q1 and Full-Year 2020 Guidance
Reconciliation of Non-GAAP Measures Q1 and Full-Year 2020 Earnings Guidance Three Months Ended Year Ended (Unaudited) March 29, 2020 December 31, 2020 Adjusted income from continuing operations per diluted share attributable to Belden common stockholders $0.70 - $0.85 $4.25 - $4.75 Amortization of i