Slide 1: 2nd Quarter 2019 Earnings Release Conference Call
2nd Quarter 2019 Earnings Release Conference Call July 31, 2019 1 | ©2019 Belden Inc. belden.com @beldeninc
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 third quarter and full-year 2019. Forward- looking statements include projections of sales, earnings, general economic conditions, market conditions, working cap
Slide 3: Q2 2019 Highlights
Q2 2019 Highlights • Revenues of $637.5M, compared to the guidance range of $630M to $660M • EPS of $1.39, compared to the guidance range of $1.30 to $1.50 • Free cash flow improved 25% year-over-year, with trailing- twelve-months free cash flow more than doubling to $231M • Balanced year-to-date ca
Slide 4: Q2 2019 Segment Overview
Q2 2019 Segment Overview Revenue $369.9 M Key Markets • Smart Buildings Enterprise Organic Growth % (Y/Y) -6.6%* Solutions • Final Mile Broadband • Live Media Production EBITDA Margin 14.5% Revenue $267.7M • Discrete Manufacturing • Process Facilities Industrial Organic Growth % (Y/Y) +1.9% • Transp
Slide 5: Q2 2019 Financial Summary
Q2 2019 Financial Summary Q2 2019 Q1 2019 Q2 2018 Revenue $637.5M $587.2M $671.4M Gross profit $243.2M $226.2M $268.9M Gross profit percentage 38.2% 38.5% 40.0% EBITDA $101.2M $87.1M $122.6M EBITDA percentage 15.9% 14.8% 18.3% Net Income(1) $64.4M $48.1M $72.6M Earnings Per Share(2) $1.39 $0.99 $1.5
Slide 6: Q2 2019 Segment Results
Q2 2019 Segment Results Enterprise Industrial Consolidated Solutions Solutions Q2 2019 Revenue $369.9M $267.7M $637.5M EBITDA(1) $53.5M $47.5M $101.2M EBITDA Margin 14.5% 17.7% 15.9% Q1 2019 Revenue $326.5M $260.7M $587.2M EBITDA(1) $39.6M $47.5M $87.1M EBITDA Margin 12.1% 18.2% 14.8% Q2 2018 Revenu
Slide 7: Q2 2019 Balance Sheet Highlights
Q2 2019 Balance Sheet Highlights Q2 2019 Q1 2019 Q2 2018 Cash and Cash Equivalents $295M $339M $261M Working Capital Turns 6.0x 5.8x 6.4x Days Sales Outstanding 64 62 63 Inventory Turns 5.1x 4.4x 5.2x PP&E Turns 6.7x 6.3x 7.7x Total Debt Principal Amount $1.48B $1.46B $1.51B Net Leverage(1) 2.6x 2.4
Slide 8: Q2 2019 Cash Flow Highlights
Q2 2019 Cash Flow Highlights TTM TTM Q2 2019 Q2 2018 Q2 2019 Q2 2018 Cash flows from operating $67.7M $54.5M $340.2M $191.2M activities Less: Net capital expenditures(1) $27.2M $22.1M $109.0M $79.0M Free cash flow(2) $40.5M $32.4M $231.2M $112.2M Cash used to acquire $50.5M $8.5M $50.5M $103.8M busi
Slide 9: Outlook
Outlook Q3 2019 • Revenue of $620 - $645 million • Earnings Per Share(1)(2) of $1.32 - $1.52 Full Year 2019 • Revenue of $2.485 - $2.535 billion • Earnings Per Share(1)(2) of $5.38 - $5.78 Full Year 2019 Assumptions • Interest expense of $57 million • Tax rate of 18% (1) Adjusted Outlook. See Append
Slide 10: Questions?
Questions? 10 | ©2019 Belden Inc. belden.com @beldeninc
Slide 11: Appendix
Appendix 11 | ©2019 Belden Inc. belden.com @beldeninc
Slide 12: Statement of Operations
Statement of Operations Three Months Ended Six Months Ended Unaudited June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (In thousands, except per share data) Revenues $ 637,530 $ 668,639 $ 1,224,705 $ 1,274,204 Cost of sales (396,507) (411,043) (758,954) (786,014) Gross profit 241,023 257,596 46
Slide 13: Operating Segment Information
Operating Segment Information Enterprise Industrial Total Unaudited Solutions Solutions Segments (In thousands, except percentages) For the three months ended June 30, 2019 Segment Revenues $ 369,862 $ 267,668 $ 637,530 Segment EBITDA 53,483 47,458 100,941 Segment EBITDA margin 14.5% 17.7% 15.8% Dep
Slide 14: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Unaudited Three Months Ended Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (In thousands) Total Segment Revenues $ 637,530 $ 671,441 $ 1,224,705 $ 1,278,864 Deferred revenue adjustments — (2,802) — (4,660) Consolidated
Slide 15: Balance Sheet
June 30, 2019 December 31, 2018 Balance Sheet (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 295,243 $ 420,610 Receivables, net 451,487 465,939 Inventories, net 309,711 316,418 Other current assets 60,017 55,757 Total current assets 1,116,458 1,258,724 Property, plant
Slide 16: Cash Flow Statement
Cash Flow Statement Six Months Ended June 30, 2019 July 1, 2018 Unaudited (In thousands) Cash flows from operating activities: Net income $ 67,468 31,362 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation and amortization 72,739 74,072 Share-bas
Slide 17: GAAP to Non-GAAP Reconciliation
Q2 2019 GAAP to Non-GAAP Reconciliation Three Months Ended Six Months Ended Unaudited June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (In thousands, except percentages and per share amounts) GAAP revenues $ 637,530 $ 668,639 $ 1,224,705 $ 1,274,204 Deferred revenue adjustments — 2,802 — 4,660
Slide 18: GAAP to Non-GAAP Reconciliation (continued)
Q2 2019 GAAP to Non-GAAP Reconciliation (continued) Unaudited GAAP net income attributable to Belden $ 42,200 $ 28,869 $ 67,402 $ 31,487 Operating income adjustments from In addition to reporting financial results in accordance with accounting above 27,240 54,293 56,609 101,795 principles generally
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 2019 Earnings Guidance
Reconciliation of Non-GAAP Measures 2019 Earnings Guidance Unaudited 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 re