Slide 1: 3rd Quarter 2018 Earnings Release Conference Call
3rd Quarter 2018 Earnings Release Conference Call October 31, 2018 1 | ©2018 Belden Inc. belden.com @beldeninc
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 fourth quarter and full year. Forward- looking statements include projections of sales, earnings, general economic conditions, market conditions, working ca
Slide 3: Q3 2018 Highlights
Q3 2018 Highlights • Revenues of $659.0M, increasing 6.0% year-over-year and 3.2% organically • Record EBITDA of $126.7M, increasing 6.3% year-over- year • Record EPS of $1.72, increasing 15.4% year-over-year • Updated full-year 2018 revenue guidance from $2.643 - $2.673 billion to $2.595 - $2.615 b
Slide 4: Segment Overview
Q3 2018 Segment Overview Revenue $392.1 M Key Markets • Smart Buildings Enterprise Organic Growth % (Y/Y) +1.1% Solutions • Final Mile Broadband EBITDA Margin 18.4% • Live Media Production Revenue $266.9M Key Markets • Discrete Manufacturing Industrial Organic Growth % (Y/Y) +6.2% Solutions • Proces
Slide 5: Financial Summary
Q3 2018 Financial Summary Q3 2018 Q2 2018 Q3 2017 Revenue $659.0M $671.4M $621.7M Gross profit $270.1M $268.9M $255.4M Gross profit percentage 41.0% 40.0% 41.1% EBITDA $126.7M $122.6M $119.2M EBITDA percentage 19.2% 18.3% 19.2% Net Income(1) $81.9M $72.6M $73.9M Earnings Per Share(2) $1.72 $1.52 $1.
Slide 6: Segment Results
Q3 2018 Segment Results Enterprise Industrial Consolidated Solutions Solutions Q3 2018 Revenue $392.1M $266.9M $659.0M EBITDA(1) $72.2M $53.8M $126.7M EBITDA Margin 18.4% 20.1% 19.2% Q2 2018 Revenue $399.7M $271.7M $671.4M EBITDA(1) $70.3M $53.2M $122.6M EBITDA Margin 17.6% 19.6% 18.3% Q3 2017 Reven
Slide 7: Balance Sheet Highlights
Q3 2018 Balance Sheet Highlights Q3 2018 Q2 2018 Q3 2017 Cash and Cash Equivalents $329M $261M $461M Working Capital Turns 6.2x 6.4x 7.1x Days Sales Outstanding 66 63 64 Days Payable Outstanding 93 87 89 Inventory Turns 4.9x 5.2x 5.8x PP&E Turns 7.5x 7.7x 7.7x Total Debt Principal Amount $1.53B $1.5
Slide 8: Cash Flow Highlights
Q3 2018 Cash Flow Highlights Q3 2018 Q3 2017 YTD 2018 YTD 2017 Cash flows from operating $130.2M $68.8M $100.9M $103.6M activities Less: Net capital expenditures(1) $23.9M $11.2M $61.9M $33.4M Free cash flow(2) $106.3M $57.6M $39.0M $70.2M Cash used to acquire $0.0M $0.0M $84.6M $166.9M businesses(3
Slide 9: Outlook
Outlook Q4 2018 • Revenue of $657 - $677 million • Earnings Per Share(1)(2) of $1.60 - $1.70 2018 Full Year • Revenue of $2.595- $2.615 billion • Earnings Per Share(1)(2) of $6.00 - $6.10 (1) Adjusted Outlook. See Appendix for reconciliation to comparable GAAP outlook. (2) All references to Earnings
Slide 10: Questions?
Questions? 10 | ©2018 Belden Inc. belden.com @beldeninc
Slide 11: Appendix
Appendix 11 | ©2018 Belden Inc. belden.com @beldeninc
Slide 12: Statement of Operations
Statement of Operations Unaudited Three Months Ended Nine Months Ended September 30, September 30, 2018 October 1, 2017 2018 October 1, 2017 (In thousands, except per share data) Revenues $ 655,774 $ 621,745 $ 1,929,978 $ 1,783,759 Cost of sales (394,917) (381,896) (1,180,931) (1,078,432) Gross prof
Slide 13: Operating Segment Information
Operating Segment Information Unaudited Enterprise Industrial Total Solutions Solutions Segments (In thousands, except percentages) For the three months ended September 30, 2018 Segment Revenues $ 392,080 $ 266,923 $ 659,003 Segment EBITDA 72,210 53,750 125,960 Segment EBITDA margin 18.4 % 20.1 % 19
Slide 14: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Unaudited Three Months Ended Nine Months Ended September 30, October 1, September 30, 2018 2017 2018 October 1, 2017 (In thousands) Total Segment Revenues $ 659,003 $ 621,745 $ 1,937,867 $ 1,783,759 Deferred revenue adjustments (3,229) — (7,88
Slide 15: Balance Sheet
Balance Sheet September 30, December 31, 2018 2017 (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 329,027 $ 561,108 Receivables, net 474,870 473,570 Inventories, net 322,194 297,226 Other current assets 50,361 40,167 Total current assets 1,176,452 1,372,071 Property, p
Slide 16: Cash Flow Statement
Cash Flow Statement Nine Months Ended Unaudited September 30, 2018 October 1, 2017 (In thousands) Cash flows from operating activities: Net income $ 117,220 $ 62,417 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 111,896 112,538 Share-
Slide 17: GAAP to Non-GAAP Reconciliation
Q3 2018 GAAP to Non-GAAP Reconciliation Three Months Ended Nine Months Ended Unaudited September 30, October 1, 2017 September 30, October 1, 2017 2018 2018 (In thousands, except percentages and per share amounts) GAAP revenues $ 655,774 $ 621,745 $ 1,929,978 $ 1,783,759 In addition to reporting fin
Slide 18: GAAP to Non-GAAP Reconciliation (continued)
Q3 2018 GAAP to Non-GAAP Reconciliation (continued) Unaudited GAAP net income attributable to Belden $ 85,881 $ 1,027 $ 117,368 $ 62,691 In addition to reporting financial results in accordance with accounting principles Operating income adjustments from above (17,616) 47,029 84,179 115,670 generall
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 Q3 and Full-Year 2018 Earnings Guidance Unaudited 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 p