Slide 1: 4th Quarter 2015 Earnings Release Conference Call
4th Quarter 2015 Earnings Release Conference Call February 9, 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 first quarter and full year. Forward- looking statements include projections of sales, earnings, general economic conditions, market conditions, working cap
Slide 3: Q4 2015 Highlights
Q4 2015 Highlights • Delivered revenues of $602.5 million; • Expanded gross profit margins to a record 43.1%, up 570 basis points year over year; • Generated record EBITDA of $114.6 million, an improvement of 14.9% year over year, representing 19.0% of revenue in the quarter; • Achieved record EPS o
Slide 4: FY 2015 Highlights
FY 2015 Highlights • Achieved revenues of $2.36 billion, an increase of 7.4% year- over-year in constant currency; • Expanded gross profit margins to a record 41.6%, increasing 460 basis points from 37.0% in the year-ago period; • Drove EBITDA margins to a record 17.0%, increasing 150 basis points f
Slide 5: 4th Quarter Segment Overview
4th Quarter Segment Overview Revenue $239.5M Broadcast Automation Playout Camera Mounted Signal Processing Precision A/V Monitoring EBITDA Margin 19.5% Fiber Solutions & Routing Cable and Connectivity Systems & Branding Systems Revenue $109.4M Enterprise Connectivity Racks and Copper and Fiber Ether
Slide 6: Q4 2015 Financial Summary
Q4 2015 Financial Summary Q4 2015 Q3 2015 Q4 2014 Revenue $602.5M $590.1M $613.7M Gross profit $259.6M $240.7M $229.4M Gross profit percentage 43.1% 40.8% 37.4% EBITDA $114.6M $97.5M $99.8M EBITDA percentage 19.0% 16.5% 16.3% Income from continuing operations $69.3M $48.9M $ 53.9M Income from contin
Slide 7: Segment Results
Segment Results Enterprise Industrial Network Broadcast Industrial IT Consolidated Connectivity Connectivity Security Q4 2015 Revenue $239.5M $109.4M $141.8M $62.8M $48.9M $602.5M EBITDA(1) $46.7M $18.3M $23.9M $11.5M $14.7M $114.6M EBITDA Margin 19.5% 16.7% 16.8% 18.4% 30.0% 19.0% Q3 2015 Revenue $
Slide 8: Q4 2015 Balance Sheet Highlights
Q4 2015 Balance Sheet Highlights Q4 2015 Q3 2015 Q4 2014 Cash and cash equivalents $217M $242M $741M Inventory turns 7.1x 6.7x 6.9x Days sales outstanding 62 days 63 days 59 days PP&E turns 7.7x 7.4x 7.7x Total debt principal amount $1.75B $1.91B $1.77B Net Leverage 3.6x1 4.0x 2.7x (1) Net leverage
Slide 9: Cash Flow Highlights
Cash Flow Highlights Q4 2015 Q4 2014 FY 2015 FY 2014 Cash flows from operating activities $ 144.4M $ 145.2M(1) $236.4M $ 231.7M(1) Less: Net capital expenditures(2) $ 15.5M $ 14.3M $ 54.4M $ 43.6M Free cash flow (3) $ 129.0M $ 130.9M $ 182.0M $ 188.2M Cash used to acquire businesses(4) $ 0.0M $ 34.8
Slide 10: Outlook
Outlook Q1 2016(1) • Revenue of $530 - $550 million • Income from continuing operations per diluted share of $0.90 - $1.00 2016 Full Year(1) • Revenue of $2.295 - $2.345 billion • Income from continuing operations per diluted share of $5.10 - $5.40 (1) Adjusted Outlook. See Appendix for reconciliati
Slide 11: Questions?
Questions? © 2015 Belden Inc. | belden.com | @BeldenInc © 2016 Belden Inc. | belden.com | @BeldenInc 11
Slide 12: Appendix
Appendix © 2016 Belden Inc. | belden.com | @BeldenInc 12
Slide 13: Statements of Operations
Statements of Operations Unaudited Three Months Ended Twelve Months Ended December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 (In thousands, except pe r share data) Revenues $ 597,244 $ 608,910 $ 2,309,222 $ 2,308,265 Cost of sales (347,127) (391,295) (1,391,049) (1,488,816) Gros
Slide 14: Operating Segment Information
Operating Segment Information Broadcast Enterprise Industrial Industrial Network Unaudited S olutions Connectivity Connectivity IT S ecurity Total S egments (In thousands, e xce pt pe rce ntage s) For the three months ended December 31, 2015 Segment Revenues $ 239,539 $ 109,440 $ 141,801 $ 62,776 $
Slide 15: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Unaudited Three Months Ended December 31, 2015 December 31, 2014 September 27, 2015 (In thousands) Total Segment Revenues $ 602,504 $ 613,727 $ 590,115 Deferred revenue adjustments (5,260) (4,817) (10,849) Consolidated Revenues $ 597,244 $ 608
Slide 16: Balance Sheet
December 31, 2015 December 31, 2014 Balance Sheet (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 216,751 $ 741,162 Receivables, net 387,386 379,777 Inventories, net 195,942 228,398 Other current assets 43,085 42,656 Total current assets 843,164 1,391,993 Property, plan
Slide 17: Cash Flow Statement
Cash Flow Statement Twelve Months Ended December 31, 2015 December 31, 2014 (In thousands) Unaudited Cash flows from operating activities: Net income $ 66,180 $ 74,449 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 150,342 102,162 Shar
Slide 18: Q4 2015 and FY 2015 GAAP to Non-GAAP Reconciliation
Q4 2015 and FY 2015 GAAP to Non-GAAP Reconciliation Unaudited 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 depre
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 provided by operating activities adjusted for capital expenditures net of the proceeds from the disposal of tangible assets and certain cash payments for severance an
Slide 20: Reconciliation of Non-GAAP Measures Revenue and Earnings Guidance
Reconciliation of Non-GAAP Measures 2015 Revenue and Earnings Guidance Year Ended Three Months Ended December 31, 2016 April 3, 2016 Adjusted revenues $2.295 - $2.345 billion $530 - $550 million Deferred revenue adjustments ($7 million) ($2 million) GAAP revenues $2.288 - $2.338 billion $528 - $548