Slide 1: 3rd Quarter 2016 Earnings Release Conference Call
3rd Quarter 2016 Earnings Release Conference Call November 2, 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 fourth quarter and full year. Forward- looking statements also include projections of sales, earnings, general economic conditions, market conditions, worki
Slide 3: Q3 2016 Highlights
Q3 2016 Highlights • Achieved revenues of $602.5 million, an increase of 2.6% organically from the prior-year period; • Generated EBITDA margins of 18.5%, an increase of 200 basis points from the year-ago period and within our long-term target range of 18-20%; • Achieved EPS of $1.29, up 13% over la
Slide 4: Q3 2016 Segment Overview
Q3 2016 Segment Overview Revenue $196.2M Broadcast Automation Playout Camera Mounted Signal Processing Monitoring Drop, Headend and EBITDA Margin 18.6% Fiber Solutions & Routing Systems & Branding Hardline Connectors Systems Revenue $156.7M Enterprise Connectivity Racks and Copper and Fiber Ethernet
Slide 5: Q3 2016 Financial Summary
Q3 2016 Financial Summary Q3 2016 Q2 2016 Q3 2015 Revenue $602.5M $603.4M $590.1M Gross profit $250.4M $252.0M $240.7M Gross profit percentage 41.6% 41.8% 40.8% EBITDA $111.5M $108.1M $97.5M EBITDA percentage 18.5% 17.9% 16.5% Net Income1 $61.4M $65.5M $48.9M Earnings Per Share2 $1.29 $1.54 $1.14 Ad
Slide 6: Q3 2016 Segment Results
Q3 2016 Segment Results Enterprise Industrial Network Broadcast Industrial IT Consolidated Connectivity Connectivity Security Q3 2016 Revenue $196.2M $156.7M $149.8M $60.2M $39.6M $602.5M EBITDA(1) $36.5M $27.3M $23.6M $12.8M $11.7M $111.5M EBITDA Margin 18.6% 17.4% 15.8% 21.2% 29.5% 18.5% Q2 2016 R
Slide 7: Q3 2016 Balance Sheet Highlights
Q3 2016 Balance Sheet Highlights Q3 2016 Q2 2016 Q3 2015 Cash and cash equivalents $748M $176M $242M Inventory turns 7.3x 7.1x 6.7x Days sales outstanding 61 days 60 days 63 days PP&E turns 7.4x 7.6x 7.4x Total debt principal amount $1.71B $1.71B $1.91B Net Leverage1 2.2x 3.6x 4.0x (1) Net leverage
Slide 8: Q3 2016 Cash Flow Highlights
Q3 2016 Cash Flow Highlights Q3 2016 Q3 2015 YTD 2016 YTD 2015 Cash flows from operating activities $ 86.4M $ 86.9M $146.8M $ 92.0M Less: Net capital expenditures(1) $ 10.7M $ 11.8M $ 35.8M $ 39.0M Free cash flow (2) $ 75.7M $ 75.1M $ 111.0M $ 53.0M Cash used to acquire businesses(3) $ 0.0M $ 0.0M $
Slide 9: Outlook
Outlook Q4 2016(1) • Revenue of $605 - $625 million • Earnings Per Share2 of $1.36 - $1.46 2016 Full Year(1) • Revenue of $2.355 - $2.375 billion • Earnings Per Share2 of $5.20 - $5.30 (1) Adjusted Outlook. See Appendix for reconciliation to comparable GAAP outlook. (2) All references to EPS refer t
Slide 10: Questions?
Questions? © 2015 Belden Inc. | belden.com | @BeldenInc © 2016 Belden Inc. | belden.com | @BeldenInc 10
Slide 11: Appendix
Appendix © 2016 Belden Inc. | belden.com | @BeldenInc 11
Slide 12: Statement of Operations
Statement of Operations Three Months Ended Nine Months Ended October 2, 2016 September 27, 2015 October 2, 2016 September 27, 2015 Unaudited (In thousands, e xce pt pe r share data) Revenues $ 601,109 $ 579,266 $ 1,744,237 $ 1,711,978 Cost of sales (355,147) (353,135) (1,025,027) (1,043,922) Gross p
Slide 13: Operating Segment Information
Operating Segment Information Unaudited Broadcast Enterprise Industrial Industrial Network S olutions Connectivity Connectivity IT S ecurity Total S egments (In thousands, e xce pt pe rce ntage s) For the three months ended October 2, 2016 Segment Revenues $ 196,173 $ 156,658 $ 149,847 $ 60,168 $ 39
Slide 14: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Unaudited Three Months Ended Nine Months Ended October 2, 2016 September 27, 2015 October 2, 2016 September 27, 2015 (In thousands) Total Segment Revenues $ 602,468 $ 590,115 $ 1,749,649 $ 1,758,079 Deferred revenue adjustments (1,359) (10,849
Slide 15: Balance Sheet
October 2, 2016 December 31, 2015 Balance Sheet (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 748,305 $ 216,751 Receivables, net 400,528 387,386 Inventories, net 193,500 195,942 Other current assets 55,345 37,079 Total current assets 1,397,678 837,158 Property, plant
Slide 16: Cash Flow Statement
Cash Flow Statement Nine Months Ended Unaudited October 2, 2016 September 27, 2015 (In thousands) Cash flows from operating activities: Net income $ 93,740 $ 16,524 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 110,857 113,141 Share-b
Slide 17: GAAP to Non-GAAP Reconciliation
business performance. As an additional example, we exclude the costs of restructuring programs, which can occur from time to time for our current businesses and/or recently acquired businesses. We exclude the costs in calculating adjusted results to allow us and investors to evaluate the performance
Slide 18: 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 19: Reconciliation of Non-GAAP Measures 2016 Revenue and Earnings Guidance
Reconciliation of Non-GAAP Measures 2016 Revenue and Earnings Guidance Year Ended Three Months Ended December 31, 2016 December 31, 2016 Adjusted revenues $2.355 - $2.375 billion $605 - $625 million Deferred revenue adjustments ($7 million) ($1 million) GAAP revenues $2.348 - $2.368 billion $604 - $