Belden Reports Fourth Quarter and Full Year 2011 Results and Reaffirms 2012 Guidance
ST. LOUIS, Feb. 9, 2012 /PRNewswire/ -- Belden Inc. (NYSE: BDC), a global leader in signal transmission solutions for mission critical applications, today reported fiscal fourth quarter and full year 2011 results for the period ended December 31, 2011.
Fourth Quarter Highlights
-- Increased income from continuing operations per diluted share to $0.57,
up 159% over last year's $0.22 per diluted share;
-- Grew revenue 9.2% year-over-year to $464.4 million, from $425.2 million
in the fourth quarter 2010;
-- Purchased 768,000 shares of Belden common stock for $25.0 million under
the previously announced share repurchase program, and
-- Reaffirms full-year guidance for fiscal 2012 to revenues of $1.98 -
$2.03 billion and income from continuing operations per diluted share of
$2.70 - $2.90.
Full Year 2011 Highlights
-- Increased income from continuing operations per diluted share to $2.40,
up 66% over last year's $1.45 per diluted share;
-- Grew revenue 23% to $1.98 billion, from $1.62 billion in 2010, and
-- Generated $145.7 million in free cash flow, exceeding net income for the
year and up 70% over 2010.
Fourth Quarter 2011
Revenue for the quarter totaled $464.4 million, up $39.2 million, or 9.2%, compared to $425.2 million in the fourth quarter 2010. Income from continuing operations per diluted share totaled $0.57, compared to $0.22 in the fourth quarter 2010.
John Stroup, President and CEO of Belden Inc., said, "Our fourth quarter results reflect a solid finish to a strong year. End-market demand for Belden products remains healthy as evidenced by our sell-through performance. In response to an uncertain economic environment, volatile commodity prices, and shorter lead-times, our customers and channel partners aggressively reduced inventory levels. Due to similar economic concerns, we executed restructuring actions during the quarter to improve our cost position and flexibility in Europe and our consumer electronics business in Asia. I am pleased that such actions could be accomplished in a quarter where earnings grew 159% year-over-year."
The fourth quarter 2011 results include $7.6 million of non-recurring charges, primarily restructuring charges in Europe and China, and favorable non-recurring tax items with an impact of $5.5 million.
Full Year 2011
Revenue for the year totaled $1.98 billion, up $360 million or 23% compared to $1.62 billion in 2010. Operating income totaled $187 million or 9.4% of revenue for the year, compared to $129 million or 8.0% of revenue in 2010. Income from continuing operations per diluted share totaled $2.40 for the year, compared to $1.45 in 2010, a 66% increase.
Mr. Stroup remarked, "I am extremely pleased with the Company's 2011 results, which include 66% earnings growth, 12% organic growth and robust free cash flow at 127% of net income."
Outlook
"Global economic forecasts predict modest growth in the world economy in 2012, which could continue to weaken, should the European economic situation deteriorate. We are focusing on our strategic goals, including our Market Delivery System and Lean Enterprise initiatives, which position us to perform in this uncertain environment. We are, therefore, reaffirming our previous outlook for 2012," said Mr. Stroup.
The Company expects first quarter 2012 revenues to be $445 million to $455 million, and income from continuing operations per diluted share to be $0.48 to $0.53. For the full year ending December 31, 2012, the Company expects revenues to be $1.98 billion to $2.03 billion, and income from continuing operations per diluted share to be $2.70 to $2.90.
Earnings Conference Call
Management will host a conference call today at 10:30 a.m. Eastern to discuss results of the quarter. The listen-only audio of the conference call will be broadcast live via the Internet at http://investor.belden.com. The dial-in number for participants in the U.S. is 888-599-8685; the dial-in number for participants outside the U.S. is 913-312-0403. A replay of this conference call will remain accessible in the investor relations section of the Company's Web site for a limited time.
Use of Non-GAAP Financial Information
Non-GAAP measures reflect certain adjustments the Company makes to provide insight into operating results. All GAAP to non-GAAP reconciliations accompany the consolidated financial statements included in this release and have been published to the investor relations section of the Company's Web site at http://investor.belden.com.
Forward Looking Statements
Statements in this release other than historical facts are "forward looking statements" made in reliance upon the safe harbor of the Private Securities Litigation Reform Act of 1995. Forward looking statements include any statements regarding future revenues, costs and expenses, operating income, earnings per share, margins, cash flows, dividends, and capital expenditures. These forward looking statements are based on forecasts and projections about the markets and industries served by the Company and about general economic conditions. They reflect management's beliefs and expectations. They are not guarantees of future performance and they involve risk and uncertainty. The Company's actual results may differ materially from these expectations. Changes in the global economy may impact the Company's results. Turbulence in financial markets may increase the Company's borrowing costs. Additional factors that may cause actual results to differ from the Company's expectations include: the Company's reliance on key distributors in marketing products; the Company's ability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); changes in the level of economic activity in the Company's major geographic markets; difficulties in realigning manufacturing capacity and capabilities among the Company's global manufacturing facilities; the competitiveness of the global cable, connectivity and networking industries; variability in the Company's quarterly and annual effective tax rates; changes in accounting rules and interpretation of these rules which may affect the Company's reported earnings; changes in currency exchange rates and political and economic uncertainties in the countries where the Company conducts business; demand for the Company's products; the cost and availability of materials including copper, plastic compounds derived from fossil fuels, electronic components, and other materials; energy costs; the Company's ability to achieve acquisition performance expectations and to integrate acquired businesses successfully; the ability of the Company to develop and introduce new products; the Company having to recognize charges that would reduce income as a result of impairing goodwill and other intangible assets; security risks and the potential for business interruption from operating in volatile countries; disruptions or failures of the Company's (or the Company's suppliers or customers) systems or operations in the event of a major earthquake, weather event, cyber-attack, terrorist attack, or other catastrophic event that could cause delays in completing sales, providing services, or performing other mission-critical functions; and other factors. For a more complete discussion of risk factors, please see our Annual Report on Form 10-K for the year ended December 31, 2010, filed with the SEC on February 25, 2011. Belden disclaims any duty to update any forward looking statements as a result of new information, future developments, or otherwise.
About Belden
St. Louis-based Belden Inc. designs, manufactures, and markets cable, connectivity, and networking products in markets including industrial automation, enterprise, transportation, infrastructure, and consumer electronics. It has approximately 6,800 employees, and provides value for industrial automation, enterprise, education, healthcare, entertainment and broadcast, sound and security, transportation, infrastructure, consumer electronics and other industries. Belden has manufacturing capabilities in North America, South America, Europe, and Asia, and a market presence in nearly every region of the world. Belden was founded in 1902, and today is a leader with some of the strongest brands in the signal transmission industry. For more information, visit www.belden.com.
Contact:
Belden Investor Relations
314-854-8054
Investor.Relations@Belden.com
BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2011 2010 2011 2010
------------- ------------- ------------- -------------
(In thousands, except per share data)
Revenues $464,361 $425,176 $1,981,953 $1,617,090
Cost of sales (332,362) (303,780) (1,410,134) (1,149,796)
-------- -------- ---------- ----------
Gross profit 131,999 121,396 571,819 467,294
Selling, general and
administrative expenses (81,279) (76,371) (325,950) (279,677)
Research and development (13,911) (11,499) (55,711) (42,605)
Amortization of
intangibles (3,375) (3,289) (13,772) (11,189)
Income from equity method
investment 3,973 3,035 13,169 11,940
Asset impairment (2,549) (16,574) (2,549) (16,574)
------ ------- ------ -------
Operating income 34,858 16,698 187,006 129,189
Interest expense (11,880) (10,916) (48,126) (49,826)
Interest income 485 786 1,011 1,184
Other income - - - 1,465
--- --- --- -----
Income from continuing
operations before taxes 23,463 6,568 139,891 82,012
Income tax benefit
(expense) 3,526 4,171 (24,638) (12,714)
----- ----- ------- -------
Income from continuing
operations 26,989 10,739 115,253 69,298
Gain (loss) from
discontinued operations,
net of tax (462) 849 (908) (5,686)
Gain on disposal of
discontinued operations,
net of tax - 44,847 - 44,847
--- ------ --- ------
Net income $26,527 $56,435 $114,345 $108,459
======= ======= ======== ========
Weighted average number
of common
shares and equivalents:
Basic 46,472 46,936 47,109 46,805
Diluted 47,415 48,134 48,104 47,783
Basic income (loss) per
share
Continuing operations $0.58 $0.23 $2.45 $1.48
Discontinued operations (0.01) 0.02 (0.02) (0.11)
Disposal of discontinued
operations - 0.95 - 0.95
Net income $0.57 $1.20 $2.43 $2.32
===== ===== ===== =====
Diluted income (loss) per
share
Continuing operations $0.57 $0.22 $2.40 $1.45
Discontinued operations (0.01) 0.02 (0.02) (0.11)
Disposal of discontinued
operations - 0.93 - 0.93
Net income $0.56 $1.17 $2.38 $2.27
===== ===== ===== =====
Dividends declared per
share $0.05 $0.05 $0.20 $0.20
BELDEN
INC.
OPERATING SEGMENT INFORMATION
(Unaudited)
Three
Months
Ended
December
31,
2011 Total
--------
Asia
Americas EMEA Pacific Segments Eliminations Total
-------- ---- -------- -------- ------------ -----
(In thousands)
External
customer
revenues $288,839 $92,441 $83,081 $464,361 $- $464,361
Affiliate
revenues 8,978 36,348 520 45,846 (45,846) -
----- ------ --- ------ ------- ---
Total
revenues $297,817 $128,789 $83,601 $510,207 $(45,846) $464,361
Operating
income $33,233 $20,763 $2,762 $56,758 $(21,900) $34,858
Three
Months
Ended
December
31,
2010
--------
External
customer
revenues $248,834 $92,656 $83,686 $425,176 $- $425,176
Affiliate
revenues 12,294 23,156 - 35,450 (35,450) -
------ ------ --- ------ ------- ---
Total
revenues $261,128 $115,812 $83,686 $460,626 $(35,450) $425,176
Operating
income $17,318 $5,939 $7,383 $30,640 $(13,942) $16,698
Twelve
Months
Ended
December
31,
2011
--------
External
customer
revenues $1,216,817 $415,342 $349,794 $1,981,953 $- $1,981,953
Affiliate
revenues 42,440 117,291 1,178 160,909 (160,909) -
------ ------- ----- ------- -------- ---
Total
revenues $1,259,257 $532,633 $350,972 $2,142,862 $(160,909) $1,981,953
Operating
income $144,820 $84,097 $25,343 $254,260 $(67,254) $187,006
Twelve
Months
Ended
December
31,
2010
--------
External
customer
revenues $935,819 $365,796 $315,475 $1,617,090 $- $1,617,090
Affiliate
revenues 48,899 76,485 62 125,446 (125,446) -
------ ------ --- ------- -------- ---
Total
revenues $984,718 $442,281 $315,537 $1,742,536 $(125,446) $1,617,090
Operating
income $98,633 $47,091 $29,555 $175,279 $(46,090) $129,189
BELDEN INC.
SUPPLEMENTAL PRODUCT GROUP INFORMATION
(Unaudited)
Three Months Ended
December 31, 2011
------------------
Asia
Americas EMEA Pacific Total
-------- ---- -------- -----
(In thousands)
Cable products $217,367 $38,280 $66,628 $322,275
Networking products 28,110 33,777 13,150 75,037
Connectivity products 43,362 20,384 3,303 67,049
Total revenues $288,839 $92,441 $83,081 $464,361
======== ======= ======= ========
Three Months Ended
December 31, 2010
------------------
Cable products $208,392 $37,588 $67,722 $313,702
Networking products 17,284 28,237 11,800 57,321
Connectivity products 23,158 26,831 4,164 54,153
Total revenues $248,834 $92,656 $83,686 $425,176
======== ======= ======= ========
Twelve Months Ended
December 31, 2011
-------------------
Cable products $937,154 $167,666 $281,047 $1,385,867
Networking products 109,400 144,895 52,893 307,188
Connectivity products 170,263 102,781 15,854 288,898
Total revenues $1,216,817 $415,342 $349,794 $1,981,953
========== ======== ======== ==========
Twelve Months Ended
December 31, 2010
-------------------
Cable products $798,833 $152,018 $263,020 $1,213,871
Networking products 62,015 115,700 36,536 214,251
Connectivity products 74,971 98,078 15,919 188,968
Total revenues $935,819 $365,796 $315,475 $1,617,090
======== ======== ======== ==========
BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2011 2010
------------- -------------
(Unaudited)
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents $382,716 $358,653
Receivables, net 299,070 298,266
Inventories, net 202,143 175,659
Deferred income taxes 19,660 9,473
Other current assets 21,832 18,804
------ ------
Total current assets 925,421 860,855
Property, plant and
equipment, less accumulated
depreciation 286,933 278,866
Goodwill 348,032 322,556
Intangible assets, less
accumulated amortization 151,683 143,820
Deferred income taxes 12,219 27,565
Other long-lived assets 63,832 62,822
------ ------
$1,788,120 $1,696,484
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $227,571 $212,084
Accrued liabilities 153,995 145,840
------- -------
Total current liabilities 381,566 357,924
Long-term debt 550,926 551,155
Postretirement benefits 131,237 112,426
Other long-term liabilities 29,842 36,464
Stockholders' equity:
Common stock 503 503
Additional paid-in capital 601,484 595,519
Retained earnings 276,363 171,568
Accumulated other
comprehensive loss (22,709) (8,919)
Treasury stock (161,092) (120,156)
-------- --------
Total stockholders' equity 694,549 638,515
------- -------
$1,788,120 $1,696,484
========== ==========
BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited)
Twelve Months Ended
December 31, December 31,
2011 2010
------------- -------------
(In thousands)
Cash flows from operating activities:
Net income $114,345 $108,459
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 50,174 55,279
Share-based compensation 11,241 12,177
Pension funding less than (greater than)
pension expense 3,812 (4,289)
Asset impairment 2,549 16,574
Deferred income tax expense (benefit) 2,294 (11,577)
Provision for inventory obsolescence 1,160 3,210
Non-cash loss on derivatives and hedging
instruments - 2,893
Gain on sale of assets - (44,847)
Tax deficiency (benefit) related to share-
based compensation (1,790) 110
Income from equity method investment (13,169) (11,940)
Changes in operating assets and liabilities,
net of the effects of currency exchange
rate changes and acquired businesses:
Receivables 4,680 (39,458)
Inventories (22,873) (14,031)
Accounts payable 9,281 38,513
Accrued liabilities 12,317 (8,203)
Accrued taxes (55) (3,793)
Other assets 12,219 27,209
Other liabilities (1,622) (14,737)
------ -------
Net cash provided by operating activities 184,563 111,549
Cash flows from investing activities:
Cash used to acquire businesses, net of cash
acquired (60,519) (119,110)
Capital expenditures (40,053) (28,194)
Proceeds from disposal of businesses and
tangible assets 1,213 138,952
----- -------
Net cash used for investing activities (99,359) (8,352)
Cash flows from financing activities:
Payments under share repurchase program (50,000) -
Cash dividends paid (9,410) (9,412)
Debt issuance costs (3,296) -
Payments under borrowing arrangements - (46,268)
Cash received upon termination of derivative
instruments - 4,217
Tax benefit (deficiency) related to share-
based compensation 1,790 (110)
Proceeds from exercise of stock options 4,599 3,158
----- -----
Net cash used for financing activities (56,317) (48,415)
Effect of foreign currency exchange rate
changes on cash and cash equivalents (4,824) (5,008)
------ ------
Increase in cash and cash equivalents 24,063 49,774
Cash and cash equivalents, beginning of period 358,653 308,879
------- -------
Cash and cash equivalents, end of period $382,716 $358,653
======== ========
BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)
We define free cash flow, which is a non-GAAP financial measure, as net cash provided by
operating activities less capital expenditures, net of 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 Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
December 31, December 31,
2011 2010 December 31, 2011 December 31, 2010
------------- ------------- ----------------- -----------------
(In thousands)
GAAP net cash
provided by
operating
activities $85,101 $56,138 $184,563 $111,549
Capital
expenditures,
net of proceeds
from
the disposal of
tangible assets (18,286) (8,903) (38,840) (25,769)
Non-GAAP free
cash flow $66,815 $47,235 $145,723 $85,780
======= ======= ======== =======
SOURCE Belden Inc.