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Belden Reports Fourth Quarter and Full Year 2023 Results

Belden Inc. (NYSE: BDC) (the “Company”), a leading global supplier of network infrastructure and digitization solutions, today reported fiscal fourth quarter and full year results for the period ended December 31, 2023.

Fourth Quarter 2023 Highlights

  • Revenues of $551 million, down 16% y/y and down 18% organically
  • GAAP EPS of $0.91, down 35% y/y
  • Adjusted EPS of $1.46, down 17% y/y
  • Executed $42 million of share repurchases during the quarter, and $50 million through January 2024

Full Year 2023 Highlights

  • Revenues of $2.512 billion, down 4% y/y and down 4% organically
  • GAAP EPS of $5.66, down 6% y/y
  • Adjusted EPS of $6.83, up 7% y/y
  • Executed $192 million of share repurchases during the year, and $200 million through January 2024

“Given recent industry-wide demand challenges, our team performed well as we wrapped up another transformational year for Belden,” said Ashish Chand, President and CEO of Belden Inc. “For the fourth quarter, our revenues and EPS both exceeded expectations as our solutions transformation continues to drive incremental demand and margin expansion. Revenues for the year were down 4%, driven by broad customer destocking and other temporary headwinds. Despite lower volumes, our profitability continues to improve with gross profit margins increasing by 270 basis points to 38.5% and EBITDA margins increasing by 40 basis points to 17.4%. Our solid execution led to EPS increasing 7% for the full year to $6.83.”

Fourth Quarter 2023

Revenues for the quarter totaled $551 million, decreasing $108 million, or 16%, compared to $659 million in the year-ago period. Revenue declined organically by 18%, with Industrial Automation Solutions down 17% and Enterprise Solutions down 19%. Net income was $39 million, compared to $61 million in the year-ago period. Net income as a percentage of revenue was 7.0%, compared to 9.3% in the year-ago period. EPS totaled $0.91 for the quarter, compared to $1.40 in the year-ago period.

Adjusted EBITDA was $88 million, decreasing $27 million, down 23%, compared to $115 million in the year-ago period. Adjusted EBITDA margin was 16.0%, down 140 bps, compared to 17.4% in the year-ago period. Adjusted EPS was $1.46, decreasing 17% compared to $1.75 in the year-ago period. Relative to our prior guidance, Adjusted EPS benefited in the fourth quarter by $0.15 from a lower-than-expected tax rate. Adjusted results are non-GAAP measures, and a non-GAAP reconciliation table is provided as an appendix to this release.

Full Year 2023

Revenues for the year totaled $2.512 billion, decreasing $94 million, or 4%, compared to $2.606 billion in the prior year. Revenue declined organically by 4%, with Industrial Automation Solutions down 1% and Enterprise Solutions down 8%. Net income was $243 million, compared to $268 million in the prior year. Net income as a percentage of revenue was 9.7%, compared to 10.3% in the prior year. EPS totaled $5.66, compared to $6.01 in the prior year.

Adjusted EBITDA was $438 million, decreasing $6 million, or 1%, compared to $444 million in the prior year. Adjusted EBITDA margin was 17.4%, up 40 bps, compared to 17.0% in the prior year. Adjusted EPS was $6.83, increasing 7% compared to $6.41 in the prior year.

Outlook

“I am pleased with our full year 2023 results and execution during ongoing challenges,” said Dr. Chand. “The ever-increasing need for data and automation continues. Our long-term growth opportunities are considerable, and with our continued transformation towards solutions, our portfolio is well-positioned to succeed as the next investment cycle ramps up. I am confident in the ability of the Belden team to continue to transform our business, adjust to changing market conditions, leverage our superior product portfolio, and capitalize on growth opportunities in all market conditions as we continue to generate sustainable, long-term shareholder value.”

Challenges from the prior year are anticipated to continue into the first quarter, including customer destocking and other temporary headwinds. Relative to the fourth quarter, end demand is expected to be stable with revenue down, in line with normal seasonal patterns.

Assuming no significant changes to the current market environment, the table below provides guidance for the first quarter of 2024.

First Quarter 2024:

 

 

 

 

Guidance

Revenues (million)

 

$505 - $520

GAAP EPS

 

$0.65 - $0.75

Adjusted EPS

 

$1.00 - $1.10

Earnings Conference Call

Management will host a conference call today at 8:30 am ET to discuss the results. The listen-only audio of the conference call will be broadcast live via the Internet at https://investor.belden.com. The dial-in number for participants is 1-888-254-3590 with confirmation code 9183010. A replay of this conference call will remain accessible in the investor relations section of the Company’s website for a limited time.

Net Income, Earnings per Share (EPS), and Organic Growth

All references to net income and EPS within this earnings release refer to income from continuing operations and income from continuing operations per diluted share attributable to Belden stockholders, respectively. Organic growth is calculated as the change in revenues excluding the impacts from currency exchange rates, copper prices, acquisitions and divestitures.

 
 
 

BELDEN INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)
 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

2023

 

December 31,

2022

 

December 31,

2023

 

December 31,

2022

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except per share data)

Revenues

 

$

551,243

 

 

$

659,072

 

 

$

2,512,084

 

 

$

2,606,485

 

Cost of sales

 

 

(344,878

)

 

 

(412,594

)

 

 

(1,557,118

)

 

 

(1,690,196

)

Gross profit

 

 

206,365

 

 

 

246,478

 

 

 

954,966

 

 

 

916,289

 

Selling, general and administrative expenses

 

 

(126,414

)

 

 

(129,889

)

 

 

(492,702

)

 

 

(448,636

)

Research and development expenses

 

 

(25,883

)

 

 

(28,599

)

 

 

(116,427

)

 

 

(104,350

)

Amortization of intangibles

 

 

(10,113

)

 

 

(9,761

)

 

 

(40,375

)

 

 

(37,860

)

Gain on sale of assets

 

 

 

 

 

 

 

 

12,056

 

 

 

37,891

 

Operating income

 

 

43,955

 

 

 

78,229

 

 

 

317,518

 

 

 

363,334

 

Interest expense, net

 

 

(8,032

)

 

 

(7,984

)

 

 

(33,625

)

 

 

(43,554

)

Loss on debt extinguishment

 

 

 

 

 

 

 

 

 

 

 

(6,392

)

Non-operating pension benefit

 

 

401

 

 

 

1,709

 

 

 

1,863

 

 

 

4,005

 

Income from continuing operations before taxes

 

 

36,324

 

 

 

71,954

 

 

 

285,756

 

 

 

317,393

 

Income tax benefit (expense)

 

 

2,185

 

 

 

(10,631

)

 

 

(43,200

)

 

 

(49,645

)

Income from continuing operations

 

 

38,509

 

 

 

61,323

 

 

 

242,556

 

 

 

267,748

 

Loss from discontinued operations, net of tax

 

 

 

 

 

 

 

 

 

 

 

(3,685

)

Gain (loss) on disposal of discontinued operations, net of tax

 

 

 

 

 

692

 

 

 

 

 

 

(9,241

)

Net income

 

 

38,509

 

 

 

62,015

 

 

 

242,556

 

 

 

254,822

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

42

 

 

 

48

 

 

 

(203

)

 

 

159

 

Net income attributable to Belden stockholders

 

$

38,467

 

 

$

61,967

 

 

$

242,759

 

 

$

254,663

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares and equivalents:

 

 

 

 

 

 

 

 

Basic

 

 

41,565

 

 

 

42,819

 

 

 

42,237

 

 

 

43,845

 

Diluted

 

 

42,046

 

 

 

43,705

 

 

 

42,859

 

 

 

44,537

 

 

 

 

 

 

 

 

 

 

Basic income (loss) per share attributable to Belden stockholders:

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.93

 

 

$

1.43

 

 

$

5.75

 

 

$

6.10

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

(0.08

)

Disposal of discontinued operations

 

 

 

 

 

0.02

 

 

 

 

 

 

(0.21

)

Net income (loss)

 

$

0.93

 

 

$

1.45

 

 

$

5.75

 

 

$

5.81

 

 

 

 

 

 

 

 

 

 

Diluted income (loss) per share attributable to Belden stockholders:

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.91

 

 

$

1.40

 

 

$

5.66

 

 

$

6.01

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

(0.08

)

Disposal of discontinued operations

 

 

 

 

 

0.02

 

 

 

 

 

 

(0.21

)

Net income (loss)

 

$

0.91

 

 

$

1.42

 

 

$

5.66

 

 

$

5.72

 

 

 

 

 

 

 

 

 

 

Common stock dividends declared per share

 

$

0.05

 

 

$

0.05

 

 

$

0.20

 

 

$

0.20

 

 
 
 
 

BELDEN INC.

OPERATING SEGMENT INFORMATION

(Unaudited)
 

 

 

 

Enterprise

Solutions

 

Industrial

Automation

Solutions

 

Total

Segments

 

 

 

 

 

 

 

 

(In thousands, except percentages)

 

 

 

 

 

 

 

For the three months ended December 31, 2023

 

 

 

 

 

 

Segment Revenues

 

$

251,054

 

 

$

300,189

 

 

$

551,243

 

Segment EBITDA

 

 

30,253

 

 

 

57,666

 

 

 

87,919

 

Segment EBITDA margin

 

 

12.1

%

 

 

19.2

%

 

 

15.9

%

Depreciation expense

 

 

6,164

 

 

 

6,737

 

 

 

12,901

 

Amortization of intangibles

 

 

4,914

 

 

 

5,199

 

 

 

10,113

 

Amortization of software development intangible assets

 

 

 

 

 

2,457

 

 

 

2,457

 

Severance, restructuring, and acquisition integration costs

 

 

6,074

 

 

 

7,232

 

 

 

13,306

 

Adjustments related to acquisitions and divestitures

 

 

4,837

 

 

 

298

 

 

 

5,135

 

 

 

 

 

 

 

 

For the three months ended December 31, 2022

 

 

 

 

 

 

Segment Revenues

 

$

303,403

 

 

$

355,669

 

 

$

659,072

 

Segment EBITDA

 

 

42,699

 

 

 

70,436

 

 

 

113,135

 

Segment EBITDA margin

 

 

14.1

%

 

 

19.8

%

 

 

17.2

%

Depreciation expense

 

 

6,173

 

 

 

6,053

 

 

 

12,226

 

Amortization of intangibles

 

 

4,544

 

 

 

5,217

 

 

 

9,761

 

Amortization of software development intangible assets

 

 

2

 

 

 

1,017

 

 

 

1,019

 

Severance, restructuring, and acquisition integration costs

 

 

1,595

 

 

 

950

 

 

 

2,545

 

Adjustments related to acquisitions and divestitures

 

 

8,684

 

 

 

596

 

 

 

9,280

 

 

 

 

 

 

 

 

For the twelve months ended December 31, 2023

 

 

 

 

 

 

Segment Revenues

 

$

1,122,831

 

 

$

1,389,253

 

 

$

2,512,084

 

Segment EBITDA

 

 

149,107

 

 

 

287,328

 

 

 

436,435

 

Segment EBITDA margin

 

 

13.3

%

 

 

20.7

%

 

 

17.4

%

Depreciation expense

 

 

24,943

 

 

 

26,436

 

 

 

51,379

 

Amortization of intangibles

 

 

20,085

 

 

 

20,290

 

 

 

40,375

 

Amortization of software development intangible assets

 

 

 

 

 

7,692

 

 

 

7,692

 

Severance, restructuring, and acquisition integration costs

 

 

11,221

 

 

 

13,931

 

 

 

25,152

 

Adjustments related to acquisitions and divestitures

 

 

5,359

 

 

 

818

 

 

 

6,177

 

 

 

 

 

 

 

 

For the twelve months ended December 31, 2022

 

 

 

 

 

 

Segment Revenues

 

$

1,198,478

 

 

$

1,408,007

 

 

$

2,606,485

 

Segment EBITDA

 

 

161,517

 

 

 

277,079

 

 

 

438,596

 

Segment EBITDA margin

 

 

13.5

%

 

 

19.7

%

 

 

16.8

%

Depreciation expense

 

 

23,387

 

 

 

23,282

 

 

 

46,669

 

Amortization of intangibles

 

 

17,595

 

 

 

20,265

 

 

 

37,860

 

Amortization of software development intangible assets

 

 

54

 

 

 

3,821

 

 

 

3,875

 

Severance, restructuring, and acquisition integration costs

 

 

9,200

 

 

 

7,485

 

 

 

16,685

 

Adjustments related to acquisitions and divestitures

 

 

5,589

 

 

 

2,244

 

 

 

7,833

 

 
 
 
 

BELDEN INC.

OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS

(Unaudited)
 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

2023

 

December 31,

2022

 

December 31,

2023

 

December 31,

2022

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Total Segment and Consolidated Revenues

 

$

551,243

 

 

$

659,072

 

 

$

2,512,084

 

 

$

2,606,485

 

 

 

 

 

 

 

 

 

 

Total Segment EBITDA

 

$

87,919

 

 

$

113,135

 

 

$

436,435

 

 

$

438,596

 

Total non-operating pension benefit

 

 

401

 

 

 

1,709

 

 

 

1,863

 

 

 

4,005

 

Non-operating pension settlement loss

 

 

 

 

 

235

 

 

 

 

 

 

1,189

 

Eliminations

 

 

(52

)

 

 

(75

)

 

 

(198

)

 

 

(231

)

Consolidated Adjusted EBITDA (1)

 

 

88,268

 

 

 

115,004

 

 

 

438,100

 

 

 

443,559

 

Severance, restructuring, and acquisition integration costs

 

 

(13,306

)

 

 

(2,545

)

 

 

(25,152

)

 

 

(16,685

)

Depreciation expense

 

 

(12,901

)

 

 

(12,226

)

 

 

(51,379

)

 

 

(46,669

)

Amortization of intangibles

 

 

(10,113

)

 

 

(9,761

)

 

 

(40,375

)

 

 

(37,860

)

Interest expense, net

 

 

(8,032

)

 

 

(7,984

)

 

 

(33,625

)

 

 

(43,554

)

Adjustments related to acquisitions and divestitures

 

 

(5,135

)

 

 

(9,280

)

 

 

(6,177

)

 

 

(7,833

)

Amortization of software development intangible assets

 

 

(2,457

)

 

 

(1,019

)

 

 

(7,692

)

 

 

(3,875

)

Non-operating pension settlement loss

 

 

 

 

 

(235

)

 

 

 

 

 

(1,189

)

Loss on debt extinguishment

 

 

 

 

 

 

 

 

 

 

 

(6,392

)

Gain on sale of assets

 

 

 

 

 

 

 

 

12,056

 

 

 

37,891

 

Income from continuing operations before taxes

 

$

36,324

 

 

$

71,954

 

 

$

285,756

 

 

$

317,393

 

 

(1) Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation of Non-GAAP Measures for additional information. 

 
 
 
 

BELDEN INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
 

 

 

 

December 31, 2023

 

December 31, 2022

 

 

(Unaudited)

 

 

 

 

(In thousands)

ASSETS

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

597,044

 

 

$

687,676

 

Receivables, net

 

 

413,806

 

 

 

440,102

 

Inventories, net

 

 

366,987

 

 

 

341,563

 

Other current assets

 

 

79,142

 

 

 

66,866

 

Total current assets

 

 

1,456,979

 

 

 

1,536,207

 

Property, plant and equipment, less accumulated depreciation

 

 

451,069

 

 

 

381,864

 

Operating lease right-of-use assets

 

 

89,686

 

 

 

73,376

 

Goodwill

 

 

907,331

 

 

 

862,253

 

Intangible assets, less accumulated amortization

 

 

269,144

 

 

 

246,830

 

Deferred income taxes

 

 

15,739

 

 

 

14,642

 

Other long-lived assets

 

 

50,243

 

 

 

46,503

 

 

 

$

3,240,191

 

 

$

3,161,675

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

 

Accounts payable

 

$

343,215

 

 

$

350,058

 

Accrued liabilities

 

 

290,289

 

 

 

289,861

 

Total current liabilities

 

 

633,504

 

 

 

639,919

 

Long-term debt

 

 

1,204,211

 

 

 

1,161,176

 

Postretirement benefits

 

 

74,573

 

 

 

67,828

 

Deferred income taxes

 

 

49,472

 

 

 

58,582

 

Long-term operating lease liabilities

 

 

74,941

 

 

 

59,250

 

Other long-term liabilities

 

 

37,188

 

 

 

30,970

 

Stockholders’ equity:

 

 

 

 

Common stock

 

 

503

 

 

 

503

 

Additional paid-in capital

 

 

818,663

 

 

 

825,669

 

Retained earnings

 

 

985,807

 

 

 

751,522

 

Accumulated other comprehensive loss

 

 

(41,279

)

 

 

(5,871

)

Treasury stock

 

 

(597,437

)

 

 

(428,812

)

Total Belden stockholders’ equity

 

 

1,166,257

 

 

 

1,143,011

 

Noncontrolling interests

 

 

45

 

 

 

939

 

Total stockholders’ equity

 

 

1,166,302

 

 

 

1,143,950

 

 

 

$

3,240,191

 

 

$

3,161,675

 

 
 
 
 

BELDEN INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(Unaudited)
 

 

 

 

Twelve Months Ended

 

 

December 31, 2023

 

December 31, 2022

 

 

 

 

 

 

 

(In thousands)

Cash flows from operating activities:

 

 

 

 

Net income

 

$

242,556

 

 

$

254,822

 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

Depreciation and amortization

 

 

99,446

 

 

 

88,738

 

Share-based compensation

 

 

21,024

 

 

 

23,676

 

Loss on debt extinguishment

 

 

 

 

 

6,392

 

Deferred income tax benefit

 

 

(12,957

)

 

 

(627

)

Gain on sale of assets

 

 

(12,056

)

 

 

(37,891

)

Changes in operating assets and liabilities, net of the effects of currency exchange rate changes, acquired businesses and disposals:

 

 

 

 

Receivables

 

 

24,527

 

 

 

(33,605

)

Inventories

 

 

(15,331

)

 

 

5,558

 

Accounts payable

 

 

(8,175

)

 

 

(20,595

)

Accrued liabilities

 

 

(16,292

)

 

 

(5,416

)

Income taxes

 

 

(3,668

)

 

 

2,335

 

Other assets

 

 

(9,314

)

 

 

2,881

 

Other liabilities

 

 

9,878

 

 

 

(4,972

)

Net cash provided by operating activities

 

 

319,638

 

 

 

281,296

 

Cash flows from investing activities:

 

 

 

 

Capital expenditures

 

 

(116,731

)

 

 

(105,094

)

Cash used for acquisitions and investments, net of cash acquired

 

 

(106,712

)

 

 

(104,603

)

Proceeds from disposal of businesses, net of cash sold

 

 

9,300

 

 

 

334,574

 

Proceeds from disposal of tangible assets

 

 

13,785

 

 

 

43,534

 

Net cash provided by (used for) investing activities

 

 

(200,358

)

 

 

168,411

 

Cash flows from financing activities:

 

 

 

 

Payments under share repurchase program

 

 

(192,135

)

 

 

(150,000

)

Withholding tax payments for share-based payment awards

 

 

(17,444

)

 

 

(7,186

)

Cash dividends paid

 

 

(8,498

)

 

 

(8,949

)

Payments under financing lease obligations

 

 

(423

)

 

 

(157

)

Payments under borrowing arrangements

 

 

 

 

 

(230,639

)

Proceeds from issuance of common stock

 

 

6,568

 

 

 

3,717

 

Net cash used for financing activities

 

 

(211,932

)

 

 

(393,214

)

Effect of foreign currency exchange rate changes on cash and cash equivalents

 

 

2,020

 

 

 

(12,574

)

Increase (decrease) in cash and cash equivalents

 

 

(90,632

)

 

 

43,919

 

Cash and cash equivalents, beginning of period

 

 

687,676

 

 

 

643,757

 

Cash and cash equivalents, end of period

 

$

597,044

 

 

$

687,676

 

 

The Condensed Consolidated Cash Flow Statement includes the results of discontinued operations up to the disposal date, February 22, 2022. 

 
 
 
 

BELDEN INC.

RECONCILIATION OF NON-GAAP MEASURES

(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 to plant consolidation activities; purchase accounting effects related to acquisitions, such as the adjustment of acquired inventory to fair value, and transaction costs; severance, restructuring, and acquisition integration costs; gains (losses) recognized on the disposal of businesses and assets; amortization of intangible assets; gains (losses) on debt extinguishment; certain gains (losses) from patent settlements; discontinued operations; and other costs. We adjust for the items listed above in all periods presented, unless the impact is clearly immaterial to our financial statements. When we calculate the tax effect of the adjustments, we include all current and deferred income tax expense commensurate with the adjusted measure of pre-tax profitability.

We utilize the adjusted results to review our ongoing operations without the effect of these adjustments and for comparison to budgeted operating results. We believe the adjusted results are useful to investors because they help them compare our results to previous periods and provide important insights into underlying trends in the business and how management oversees our business operations on a day-to-day basis. As an example, we adjust for acquisition-related expenses, such as amortization of intangibles and impacts of fair value adjustments because they generally are not related to the acquired business' core 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 of the business based upon its expected ongoing operating structure. We believe the adjusted measures, accompanied by the disclosure of the costs of these programs, provides valuable insight.

Adjusted results should be considered only in conjunction with results reported according to accounting principles generally accepted in the United States.

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

2023

 

December 31,

2022

 

December 31,

2023

 

December 31,

2022

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except percentages and per share amounts)

GAAP and Adjusted Revenues

 

$

551,243

 

 

$

659,072

 

 

$

2,512,084

 

 

$

2,606,485

 

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

206,365

 

 

$

246,478

 

 

$

954,966

 

 

$

916,289

 

Severance, restructuring, and acquisition integration costs

 

 

2,088

 

 

 

1,317

 

 

 

3,488

 

 

 

10,088

 

Amortization of software development intangible assets

 

 

2,457

 

 

 

1,019

 

 

 

7,692

 

 

 

3,875

 

Adjustments related to acquisitions and divestitures

 

 

(270

)

 

 

 

 

 

252

 

 

 

1,648

 

Adjusted gross profit

 

$

210,640

 

 

$

248,814

 

 

$

966,398

 

 

$

931,900

 

 

 

 

 

 

 

 

 

 

GAAP gross profit margin

 

 

37.4

%

 

 

37.4

%

 

 

38.0

%

 

 

35.2

%

Adjusted gross profit margin

 

 

38.2

%

 

 

37.8

%

 

 

38.5

%

 

 

35.8

%

 

 

 

 

 

 

 

 

 

GAAP selling, general and administrative expenses

 

$

(126,414

)

 

$

(129,889

)

 

 

(492,702

)

 

 

(448,636

)

Severance, restructuring, and acquisition integration costs

 

 

9,637

 

 

 

1,228

 

 

 

20,039

 

 

 

6,597

 

Adjustments related to acquisitions and divestitures

 

 

5,405

 

 

 

9,280

 

 

 

5,925

 

 

 

6,185

 

Adjusted selling, general and administrative expenses

 

$

(111,372

)

 

$

(119,381

)

 

$

(466,738

)

 

$

(435,854

)

 

 

 

 

 

 

 

 

 

GAAP research and development expenses

 

$

(25,883

)

 

$

(28,599

)

 

$

(116,427

)

 

$

(104,350

)

Severance, restructuring, and acquisition integration costs

 

 

1,581

 

 

 

 

 

 

1,625

 

 

 

 

Adjusted research and development expenses

 

$

(24,302

)

 

$

(28,599

)

 

$

(114,802

)

 

$

(104,350

)

 

 

 

 

 

 

 

 

 

GAAP income from continuing operations

 

$

38,509

 

 

$

61,323

 

 

$

242,556

 

 

$

267,748

 

Income tax expense (benefit)

 

 

(2,185

)

 

 

10,631

 

 

 

43,200

 

 

 

49,645

 

Interest expense, net

 

 

8,032

 

 

 

7,984

 

 

 

33,625

 

 

 

43,554

 

Loss on debt extinguishment

 

 

 

 

 

 

 

 

 

 

 

6,392

 

Non-operating pension settlement loss

 

 

 

 

 

235

 

 

 

 

 

 

1,189

 

Total non-operating adjustments

 

 

5,847

 

 

 

18,850

 

 

 

76,825

 

 

 

100,780

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

10,113

 

 

 

9,761

 

 

 

40,375

 

 

 

37,860

 

Severance, restructuring, and acquisition integration costs

 

 

13,306

 

 

 

2,545

 

 

 

25,152

 

 

 

16,685

 

Amortization of software development intangible assets

 

 

2,457

 

 

 

1,019

 

 

 

7,692

 

 

 

3,875

 

Adjustments related to acquisitions and divestitures

 

 

5,135

 

 

 

9,280

 

 

 

6,177

 

 

 

7,833

 

Gain on sale of assets

 

 

 

 

 

 

 

 

(12,056

)

 

 

(37,891

)

Total operating income adjustments

 

 

31,011

 

 

 

22,605

 

 

 

67,340

 

 

 

28,362

 

Depreciation expense

 

 

12,901

 

 

 

12,226

 

 

 

51,379

 

 

 

46,669

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

88,268

 

 

$

115,004

 

 

$

438,100

 

 

$

443,559

 

 

 

 

 

��

 

 

 

 

GAAP income from continuing operations margin

 

 

7.0

%

 

 

9.3

%

 

 

9.7

%

 

 

10.3

%

Adjusted EBITDA margin

 

 

16.0

%

 

 

17.4

%

 

 

17.4

%

 

 

17.0

%

 

 

 

 

 

 

 

 

 

GAAP income from continuing operations

 

$

38,509

 

 

$

61,323

 

 

$

242,556

 

 

$

267,748

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

42

 

 

 

48

 

 

 

(203

)

 

 

159

 

GAAP net income from continuing operations attributable to Belden stockholders

 

$

38,467

 

 

$

61,275

 

 

$

242,759

 

 

$

267,589

 

 

 

 

 

 

 

 

 

 

GAAP income from continuing operations

 

$

38,509

 

 

$

61,323

 

 

$

242,556

 

 

$

267,748

 

Plus: Operating income adjustments from above

 

 

31,011

 

 

 

22,605

 

 

 

67,340

 

 

 

28,362

 

Plus: Loss on debt extinguishment

 

 

 

 

 

 

 

 

 

 

 

6,392

 

Plus: Non-operating pension settlement loss

 

 

 

 

 

235

 

 

 

 

 

 

1,189

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

42

 

 

 

48

 

 

 

(203

)

 

 

159

 

Less: Tax effect of adjustments above

 

 

8,108

 

 

 

7,809

 

 

 

17,310

 

 

 

18,169

 

Adjusted net income from continuing operations attributable to Belden stockholders

 

$

61,370

 

 

$

76,306

 

 

$

292,789

 

 

$

285,363

 

 

 

 

 

 

 

 

 

 

GAAP income from continuing operations per diluted share attributable to Belden stockholders (EPS)

 

$

0.91

 

 

$

1.40

 

 

$

5.66

 

 

$

6.01

 

Adjusted income from continuing operations per diluted share attributable to Belden stockholders(Adjusted EPS)

 

$

1.46

 

 

$

1.75

 

 

$

6.83

 

 

$

6.41

 

 

 

 

 

 

 

 

 

 

GAAP and adjusted diluted weighted average shares

 

 

42,046

 

 

 

43,705

 

 

 

42,859

 

 

 

44,537

 

 
 
 
 

BELDEN INC.

RECONCILIATION OF NON-GAAP MEASURES

(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 information to investors regarding our ability to generate cash from business operations that is available for acquisitions and other investments, service of debt principal, dividends and share repurchases. We use free cash flow, as defined, as one financial measure to monitor and evaluate performance and liquidity. Non-GAAP financial measures should be considered only in conjunction with financial measures reported according to accounting principles generally accepted in the United States. Our definition of free cash flow may differ from definitions used by other companies.

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

2023

 

December 31,

2022

 

December 31,

2023

 

December 31,

2022

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

GAAP net cash provided by operating activities

 

$

159,645

 

 

$

202,496

 

 

$

319,638

 

 

$

281,296

 

Capital expenditures

 

 

(54,861

)

 

 

(54,844

)

 

 

(116,731

)

 

 

(105,094

)

Proceeds from disposal of assets

 

 

 

 

 

 

 

 

13,785

 

 

 

43,534

 

Non-GAAP free cash flow

 

$

104,784

 

 

$

147,652

 

 

$

216,692

 

 

$

219,736

 

 
 
 

BELDEN INC.

RECONCILIATION OF NON-GAAP MEASURES

2024 Guidance
 

 

 

 

Three Months Ended

 

 

March 31, 2024

 

 

 

 

 

GAAP income from continuing operations per diluted share attributable to Belden common stockholders

 

$0.65 - $0.75

Amortization of intangible assets

 

0.24

Severance, restructuring, and acquisition integration costs

 

0.10

Adjustments related to acquisitions and divestitures

 

0.01

Adjusted income from continuing operations per diluted share attributable to Belden common stockholders

 

$1.00 - $1.10

 

Our guidance is based upon information currently available regarding events and conditions that will impact our future operating results. In particular, our results are subject to the factors listed under "Forward-Looking Statements" in this release. In addition, our actual results are likely to be impacted by other additional events for which information is not available, such as asset impairments, adjustments related to acquisitions and divestitures, severance, restructuring, and acquisition integration costs, gains (losses) recognized on the disposal of assets, gains (losses) on debt extinguishment, discontinued operations, and other gains (losses) related to events or conditions that are not yet known.

Forward-Looking Statements

This release contains, and any statements made by us concerning the subject matter of this release may contain, forward-looking statements, including our outlook for the first quarter of 2024 and beyond. Forward-looking statements also include any statements regarding future financial performance (including revenues, growth, expenses, earnings, margins, cash flows, dividends, capital expenditures and financial condition), plans and objectives, and related assumptions. In some cases these statements are identifiable through the use of words such as “anticipate,” “believe,” “estimate,” “forecast,” “guide,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would” and similar expressions. Forward-looking statements reflect management’s current beliefs and expectations and are not guarantees of future performance. Actual results may differ materially from those suggested by any forward-looking statements for a number of reasons, including, without limitation: the impact of a challenging global economy, including the impact of inflation, or a downturn in served markets; the competitiveness of the global markets in which we operate; the inability of the Company to develop and introduce new products; competitive responses to our products; the inability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); foreign and domestic political, economic and other uncertainties, including changes in currency exchange rates; the impact of disruptions in the global supply chain, including the inability to timely obtain raw materials and components in sufficient quantities on commercially reasonable terms; the inability to achieve our strategic priorities in emerging markets; the impact of changes in global tariffs and trade agreements; volatility in credit and foreign exchange markets; the presence of substitute products in the marketplace; disruptions in the Company’s information systems including due to cyber-attacks; inflation and changes in the price and availability of raw materials leading to higher input and labor costs; the possibility of a resurgence of COVID-19 or the spread of other viruses; difficulty in forecasting revenue due to the unpredictable timing of orders related to customer projects as well as the impacts of channel inventory; changes in tax laws and variability in the Company’s quarterly and annual effective tax rates; the increased prevalence of cloud computing; the inability to successfully complete and integrate acquisitions in furtherance of the Company’s strategic plan; the inability to retain key employees; disruption of, or changes in, the Company’s key distribution channels; the presence of activists proposing certain actions by the Company; perceived or actual product failures; the impact of regulatory requirements and other legal compliance issues; inability to satisfy the increasing expectations with respect to environmental, social and governance matters; assertions that the Company violates the intellectual property of others and the ownership of intellectual property by competitors and others that prevents the use of that intellectual property by the Company; risks related to the use of open source software; the impairment of goodwill and other intangible assets and the resulting impact on financial performance; disruptions and increased costs attendant to collective bargaining groups and other labor matters; and other factors.

For a more complete discussion of risk factors, please see our Annual Report on Form 10-K for the period ended December 31, 2022, filed with the SEC on February 24, 2023. Although the content of this release represents our best judgment as of the date of this report based on information currently available and reasonable assumptions, we give no assurances that the expectations will prove to be accurate. Deviations from the expectations may be material. For these reasons, Belden cautions readers to not place undue reliance on these forward-looking statements, which speak only as of the date made. Belden disclaims any duty to update any forward-looking statements as a result of new information, future developments, or otherwise, except as required by law.

About Belden

Belden Inc. delivers the infrastructure that makes the digital journey simpler, smarter and secure. We’re moving beyond connectivity, from what we make to what we make possible through a performance-driven portfolio, forward-thinking expertise and purpose-built solutions. With a legacy of quality and reliability spanning 120-plus years, we have a strong foundation to continue building the future. We are headquartered in St. Louis and have manufacturing capabilities in North America, Europe, Asia, and Africa. For more information, visit us at www.belden.com; follow us on Facebook, LinkedIn and Twitter.

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