Slide 1: 1st Quarter 2016 Earnings Release Conference Call
1st Quarter 2016 Earnings Release Conference Call May 4, 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 second quarter and full year. Forward- looking statements include projections of sales, earnings, general economic conditions, market conditions, working ca
Slide 3: Q1 2016 Highlights
Q1 2016 Highlights • Delivered first quarter revenues of $543.8 million; • Expanded gross profit margins to 42.3%, an increase of 170 basis points from 40.6% in the year-ago period; • Generated EBITDA margins of 16.4%, an increase of 90 basis points from 15.5% in the year-ago period; • Repaid $51 mi
Slide 4: 1st Quarter Segment Overview
1st Quarter Segment Overview Revenue $171.3M Broadcast Automation Playout Camera Mounted Signal Processing Monitoring EBITDA Margin 13.6% Fiber Solutions & Routing Systems & Branding Systems Revenue $135.9M Enterprise Connectivity Racks and Copper and Fiber Ethernet, Precision A/V EBITDA Margin 17.5
Slide 5: Q1 2016 Financial Summary
Q1 2016 Financial Summary Q1 2016 Q4 2015 Q1 2015 Revenue $543.8M $602.5M $569.5M Gross profit $229.8M $259.6M $231.0M Gross profit percentage 42.3% 43.1% 40.6% EBITDA $89.1M $114.6M $88.5M EBITDA percentage 16.4% 19.0% 15.5% Net Income1 $42.7M $69.3M $43.3M Earnings Per Share1 $1.01 $1.63 $1.00 Adj
Slide 6: Segment Results
Segment Results Enterprise Industrial Network Broadcast Industrial IT Consolidated Connectivity Connectivity Security Q1 2016 Revenue $171.3M $135.9M $141.1M $53.9M $41.7M $543.8M EBITDA(1) $23.3M $23.7M $23.0M $8.6M $11.5M $89.1M EBITDA Margin 13.6% 17.5% 16.3% 16.0% 27.5% 16.4% Q4 2015 Revenue $20
Slide 7: Q1 2016 Balance Sheet Highlights
Q1 2016 Balance Sheet Highlights Q1 2016 Q4 2015 Q1 2015 Cash and cash equivalents $146M $217M $167M Inventory turns 5.9x 7.1x 5.7x Days sales outstanding 60 days 62 days 63 days PP&E turns 6.8x 7.7x 6.9x Total debt principal amount $1.72B $1.75B $1.90B Net Leverage1 3.7x 3.6x 3.9x (1) Net leverage
Slide 8: Cash Flow Highlights
Cash Flow Highlights Q1 2016 Q1 2015 Cash flows from operating activities $12.7M $(48.2)M Less: Net capital expenditures(1) $13.4M $15.5M Free cash flow (2) $(0.7)M $(63.7)M Cash used to acquire businesses(3) $15.3M $695.3M Share repurchases and dividends $2.1M $ 2.1M (1) Capital expenditures, net o
Slide 9: Outlook
Outlook Q2 2016(1) • Revenue of $570 - $590 million • Earnings Per Share2 of $1.20 - $1.30 2016 Full Year(1) • Revenue of $2.320 - $2.370 billion • Earnings Per Share2 of $5.15 - $5.45 (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: Enterprise Broadcast: BAV to Enterprise Connectivity Quarterly 2015 Revised
BAV to Enterprise Connectivity Quarterly 2015 Revised Q115 Q215 Q315 Q415 Reported Revised Reported Revised Reported Revised Reported Revised Broadcast Revenue $ 213.6 $ 176.5 $ 219.4 $ 174.9 $ 228.1 $ 186.7 $ 239.5 $ 201.8 EBTIDA $ 29.2 $ 23.1 $ 31.6 $ 22.9 $ 34.9 $ 27.4 $ 46.7 $ 40.2 EBITDA % 13.7
Slide 13: Operating Segment Information
Operating Segment Information Unaudited Broadcast Enterprise Industrial Industrial Network S ecurity S olutions Connectivity Connectivity IT S olutions Total S egments (In thousands, e xce pt pe rce ntage s) For the three months ended April 3, 2016 Segment Revenues $ 171,272 $ 135,892 $ 141,091 $ 53
Slide 14: Statement of Operations
Statement of Operations Unaudited Three Months Ended April 3, 2016 March 29, 2015 (In thousands, except per share amounts) Revenues $ 541,497 $ 546,957 Cost of sales (316,462) (339,308) Gross profit 225,035 207,649 Selling, general and administrative expenses (122,406) (140,048) Research and develop
Slide 15: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Unaudited Three Months Ended April 3, 2016 March 29, 2015 December 31, 2015 (In thousands) Total Segment Revenues $ 543,800 $ 569,451 $ 602,504 Deferred revenue adjustments (2,303) (22,494) (5,260) Consolidated Revenues $ 541,497 $ 546,957 $ 5
Slide 16: Balance Sheet
Balance Sheet April 3, 2016 December 31, 2015 (Un au di te d) (In th ou san ds) ASSETS Current as s ets : Cas h and cas h equivalents $ 146,264 $ 216,751 Receivables , net 346,210 387,386 Inventories , net 215,947 195,942 Other current as s ets 44,489 37,079 Total current as s ets 752,910 837,158 Pr
Slide 17: Cash Flow Statement
Cash Flow Statement Unaudited Three Months Ended April 3, 2016 March 29, 2015 (In th ou san ds) Cash flows from operating activities: Net income (loss) $ 16,425 $ (19,636) Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: Depreciation and amortizatio
Slide 18: GAAP to Non-GAAP Reconciliation
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 depreciation expense due
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
Reconciliation of Non-GAAP Measures 2016 Revenue and Earnings Guidance Year Ended Three Months Ended December 31, 2016 July 3, 2016 Adjusted revenues $2.320 - $2.370 billion $570 - $590 million Deferred revenue adjustments ($7 million) ($2 million) GAAP revenues $2.313 - $2.363 billion $568 - $588 m