Slide 1: 4th Quarter 2017 Earnings Release Conference Call
4th Quarter 2017 Earnings Release Conference Call February 1, 2018 © 2018 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 2018 first quarter and full year. Forward- looking statements include projections of sales, earnings, general economic conditions, market conditions, working cap
Slide 3: Q4 2017 Overview
Q4 2017 Overview • Revenues of $604.9M, decreasing 50 basis points year-over-year • Generated EBITDA of $110.2M • EPS of $1.62, increasing 14.1% year-over-year • Increased full-year 2018 revenue guidance to $2.528 - $2.578 billion from $2.492 - $2.542 billion Adjusted results. See Appendix for recon
Slide 4: FY 2017 Highlights
FY 2017 Highlights • Record revenues of $2.389B • Generated record EBITDA of $434.3M • Record net income of $265.0M, increasing 10.4% • Strengthened balance sheet, acquired Thinklogical and increased investment in attractive organic growth initiatives Adjusted results. See Appendix for reconciliatio
Slide 5: Q4 2017 Segment Overview
Q4 2017 Segment Overview Revenue $174.7M Broadcast Solutions Automation Playout Drop, Headend & Cameras Signal Processing Monitoring KVM & Branding EBITDA Margin 12.7% & Routing Systems Systems Hardline Connectors Switches Revenue $157.7M Enterprise Solutions Racks & Copper & Fiber Ethernet, Precisi
Slide 6: Q4 2017 Financial Summary
Q4 2017 Financial Summary Q4 2017 Q3 2017 Q4 2016 Revenue $604.9M $621.7M $608.2M Gross profit $237.7M $255.4M $264.1M Gross profit percentage 39.3% 41.1% 43.4% EBITDA $110.2M $119.2M $122.5M EBITDA percentage 18.2% 19.2% 20.1% Net Income(1) $79.0M $73.9M $70.3M Earnings Per Share(2) $1.62 $1.49 $1.
Slide 7: Q4 2017 Segment Results
Q4 2017 Segment Results Broadcast Enterprise Industrial Network Consolidated Solutions Solutions Solutions Solutions Q4 2017 Revenue $174.7M $157.7M $162.6M $110.0M $604.9M EBITDA(1) $22.2M $26.3M $32.3M $28.3M $110.2M EBITDA Margin 12.7% 16.7% 19.9% 25.8% 18.2% Q3 2017 Revenue $193.8M $167.1M $160.
Slide 8: Q4 2017 Balance Sheet Highlights
Q4 2017 Balance Sheet Highlights Q4 2017 Q3 2017 Q4 2016 Cash and cash equivalents $561M $461M $848M Working Capital Turns 8.6x 7.1x 15.4x PP&E turns 7.2x 7.7x 7.9x Total debt principal amount $1.58B $1.55B $1.64B Net Leverage(1) 2.3x 2.3x 1.8x (1) Net leverage is calculated as (A) total debt less c
Slide 9: Q4 2017 Cash Flow Highlights
Q4 2017 Cash Flow Highlights Q4 2017 Q4 2016 FY 2017 FY 2016 Cash flows from operating activities $151.7M $167.4M $255.3M $314.8M Less: Net capital expenditures(1) $29.8M $17.8M $63.2M $53.6M Free cash flow (2) $121.9M $149.6M $192.1M $261.2M Cash used to acquire businesses(3) $0.0M $1.0M $166.9M $1
Slide 10: Outlook
Outlook Q1 2018 • Revenue of $575 - $595 million • Earnings Per Share(1)(2) of $1.05 - $1.15 2018 Full Year • Revenue of $2.528 - $2.578 billion • Earnings Per Share(1)(2) of $5.95 - $6.20 (1) Adjusted Outlook. See Appendix for reconciliation to comparable GAAP outlook. (2) All references to Earning
Slide 11: Questions?
Questions? © 2018 Belden Inc. | belden.com | @BeldenInc © 2018 Belden Inc. | belden.com | @BeldenInc 11
Slide 12: Appendix
Appendix © 2018 Belden Inc. | belden.com | @BeldenInc 12
Slide 13: Statements of Operations
Statements of Operations Unaudited Three Months Ended Twelve Months Ended December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 (In thousands, except per share data) Revenues $ 604,884 $ 612,435 $ 2,388,643 $ 2,356,672 Cost of sales (375,292) (350,651) (1,454,604) (1,375,678) Gross
Slide 14: Operating Segment Information
Operating Segment Information Unaudited Broadcast Enterprise Industrial Network Total Solutions Solutions Solutions Solutions Segments (In thousands, except percentages) For the three months ended December 31, 2017 Segment Revenues $ 174,719 $ 157,662 $ 162,551 $ 109,952 $ 604,884 Segment EBITDA 22,
Slide 15: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Unaudited Three Months Ended Twelve Months Ended December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 (In thousands) Total Segment Revenues $ 604,884 $ 608,156 $ 2,388,643 $ 2,357,805 Deferred revenue adjustments — (1,275) —
Slide 16: Balance Sheet
Balance Sheet December 31, 2017 December 31, 2016 (In thousands) ASSETS Current assets: Cash and cash equivalents $ 561,108 $ 848,116 Receivables, net 466,325 388,059 Inventories, net 297,226 190,408 Other current assets 40,167 29,176 Assets held for sale — 23,193 Total current assets 1,364,826 1,47
Slide 17: Cash Flow Statement
Cash Flow Statement Unaudited Twelve Months Ended December 31, 2017 December 31, 2016 (In thousands) Cash flows from operating activities: Net income $ 92,853 $ 127,646 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 149,650 145,593 Los
Slide 18: Q4 2017 GAAP to Non-GAAP Reconciliation
Q4 2017 GAAP to Non-GAAP Reconciliation Three Months Ended Twelve Months Ended Unaudited December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 (In thousands, except percentages and per share amounts) GAAP revenues $ 604,884 $ 612,435 $ 2,388,643 $ 2,356,672 Deferred revenue adjustm
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 Q1 and Full-Year 2018 Earnings Guidance
Reconciliation of Non-GAAP Measures Q1 and Full-Year 2018 Earnings Guidance 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,