Slide 1: 2nd Quarter 2015 Earnings Release Conference Call
2nd Quarter 2015 Earnings Release Conference Call July 29, 2015 © 2015 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 2015 third quarter and full year. Forward- looking statements include statements regarding future financial performance (including revenues, expenses, earnings,
Slide 3: Q2 2015 Highlights
Q2 2015 Highlights • Generated revenues of $598.5 million; • Achieved record gross profit margins of 41.7%, increasing 470 basis points from 37.0% in the year-ago period; • Expanded EBITDA margins to a record 16.7%, increasing 190 basis points from 14.8% in the year-ago period; • Generated income fr
Slide 4: 2nd Quarter Segment Overview
2nd Quarter Segment Overview Revenue $219.4M Broadcast Automation Playout Camera Mounted Signal Processing Precision A/V Monitoring EBITDA Margin 14.4% & Branding Fiber Solutions & Routing Cable and Connectivity Systems Systems Revenue $117.3M Enterprise Connectivity Racks and Copper and Fiber Ether
Slide 5: Q2 2015 Financial Summary
Q2 2015 Financial Summary Q2 2015 Q1 2015 Q2 2014 Revenue $598.5M $569.5M $605.1M Gross profit $249.5M $231.0M $223.8M Gross profit percentage 41.7% 40.6% 37.0% EBITDA $100.1M $88.5M $89.8M EBITDA percentage 16.7% 15.5% 14.8% Income from continuing operations $52.2M $43.3M $46.5M Income from continu
Slide 6: Segment Results
Segment Results Enterprise Industrial Network Broadcast Industrial IT Consolidated Connectivity Connectivity Security Q2 2015 Revenue $219.4M $117.3M $160.9M $61.3M $39.6M $598.5M EBITDA(1) $31.6M $21.1M $28.7M $10.2M $8.8M $100.1M EBITDA Margin 14.4% 18.0% 17.8% 16.6% 22.1% 16.7% Q1 2015 Revenue $2
Slide 7: Balance Sheet Highlights
Balance Sheet Highlights Q2 2015 Q2 2014 Cash and cash equivalents $208.4M $445.0M Inventory turns 6.0x 6.9x Days sales outstanding 64 days 63 days PP&E turns 7.3x 7.3x Total debt principal amount $1.92B $1.56B © 2015 Belden Inc. | belden.com | @BeldenInc 7
Slide 8: Cash Flow Highlights
Cash Flow Highlights Q2 2015 Q2 2014 Cash flows from operating activities $ 53.3M $ 43.7M(1) Less: Net capital expenditures(2) $ 11.7M $ 10.6M Free cash flow (3) $ 41.6M $ 33.1M Cash used to acquire businesses(4) $ 0.0M $ 306.8M Share repurchases and dividends $ 2.1M $ 33.4M (1) Adjusted for cash pa
Slide 9: Outlook
Outlook Q3 2015(1) • Revenue of $580 - $600 million • Income from continuing operations per diluted share of $1.05 - $1.15 2015 Full Year(1) • Revenue of $2.360 - $2.390 billion • Income from continuing operations per diluted share of $4.70 - $4.90 (1) Adjusted outlook. See Appendix for reconciliati
Slide 10: Appendix
Appendix © 2015 Belden Inc. | belden.com | @BeldenInc 10
Slide 11: Statements of Operations and Comprehensive Income
Statements of Operations and Comprehensive Income (Unaudited) Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 (In thousands, e xce pt pe r share data) Revenues $ 585,755 $ 600,891 $ 1,132,712 $ 1,088,581 Cost of sales (351,479) (396,506) (690,787) (708,479
Slide 12: Balance Sheet
Balance Sheet June 28, 2015 December 31, 2014 (Unaudite d) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 208,419 $ 741,162 Receivables, net 412,251 379,777 Inventories, net 233,100 228,398 Deferred income taxes 21,188 22,157 Other current assets 72,388 42,656 Total current assets
Slide 13: Cash Flow Statement
Cash Flow Statement (Unaudited) Six Months Ended June 28, 2015 June 29, 2014 (In thousands) Cash flows from operating activities: Net income $ 1,955 $ 24,609 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 75,654 48,433 Share-based comp
Slide 14: 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 cash payments for severance and oth
Slide 15: GAAP to Non-GAAP Reconciliation - Consolidated
GAAP to Non-GAAP Reconciliation - Consolidated (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 deprecia
Slide 16: Segment Operating Information
Segment Operating 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 June 28, 2015 Segment Revenues $ 219,415 $ 117,335 $ 160,875 $ 61,270 $ 39
Slide 17: Segment Operating Information
Segment Operating Information (Unaudited) Three Months Ended June 28, 2015 June 29, 2014 March 29, 2015 (In thousands) Total Segment Revenues $ 598,513 $ 605,054 $ 569,451 Deferred revenue adjustments (12,758) (4,163) (22,494) Consolidated Revenues $ 585,755 $ 600,891 $ 546,957 Total Segment EBITDA
Slide 18: Reconciliation of Non-GAAP Measures 2015 Revenue and Earnings Guidance
Reconciliation of Non-GAAP Measures 2015 Revenue and Earnings Guidance Year Ended Three Months Ended December 31, 2015 September 27, 2015 Adjusted revenues $2.360 - $2.390 billion $580 - $600 million Deferred revenue adjustments ($57 million) ($13 million) GAAP revenues $2.303 - $2.333 billion $567