![]() | 7733 Forsyth Boulevard | Phone: 314.854.8000 | ||
Suite 800 | Fax: 314.854.8003 | |||
St. Louis, Missouri 63105 | ||||
www.Belden.com |
News Release
Belden Reports Solid Results in Second Quarter 2013
St. Louis, Missouri – August 8, 2013 – Belden Inc. (NYSE: BDC), a global leader in high quality, end-to-end signal transmission solutions for mission-critical applications, today reported fiscal second quarter 2013 results for the period ended June 30, 2013.
Second Quarter Highlights
• | Increased adjusted income from continuing operations per diluted share to $0.99, up 11.2% over last year’s $0.89 per diluted share; |
• | Expanded adjusted gross margin to 35.2% on adjusted revenues of $532.6 million, increasing 360 basis points from 31.6% in the year-ago period; |
• | Grew adjusted operating income margin to 14.2%, increasing 210 basis points from 12.1% in the year-ago period; |
• | Purchased 584,198 shares of Belden common stock for $31.25 million during the quarter; and |
• | Raised the midpoint of full-year guidance for fiscal 2013 adjusted revenue to $2.09 – $2.12 billion and adjusted income from continuing operations per diluted share to $3.54 – $3.69. |
Second Quarter 2013
Revenue for the quarter totaled $529.5 million, up $71.3 million, or 15.6%, compared to $458.2 million in the second quarter 2012. Gross margin in the second quarter was 33.8%, increasing 220 basis points from 31.6% in the year-ago period. Operating income margin in the second quarter was 10.2%, decreasing 140 basis points from 11.6% in the year-ago period. Income from continuing operations per diluted share totaled $0.66, compared to $0.86 in the second quarter 2012.
Adjusted revenue for the quarter totaled $532.6 million, up $74.4 million, or 16.2%, compared to $458.2 million in the second quarter 2012. Adjusted gross margin in the second quarter was 35.2%, increasing 360 basis points from 31.6% in the year-ago period. Adjusted operating income margin was 14.2%, increasing 210 basis points from 12.1% in the year-ago period. Adjusted income from continuing operations per diluted share totaled $0.99, compared to $0.89 in the second quarter 2012. A reconciliation of non-GAAP (adjusted) financial measures to comparable GAAP financial measures is provided as an appendix to this release.
John Stroup, President and CEO of Belden Inc., said, “Belden’s formation of four global segments announced in April was a considerable endeavor and a necessary element to achieving our long-term strategic goals, so our ability to deliver solid second quarter results is especially gratifying. Our strong performance in emerging markets offset soft demand in developed markets. We are pleased with our adjusted gross and operating income margins of 35.2% and 14.2%, respectively; a direct result of our continued focus on portfolio enhancement and business system improvements.
Belden Reports Solid Results in Second Quarter 2013 – Page 2 of 3
Outlook
“The global macroeconomic environment in 2013 is generally as we anticipated, and we remain confident in our ability to deliver consistent operating results in the second half of the year. Therefore, we are increasing the midpoint of both our revenue and earnings outlook for the full year,” said Mr. Stroup.
The Company expects third quarter 2013 adjusted revenues to be $525 – $535 million and adjusted income from continuing operations per diluted share to be $0.90 – $0.95. For the full year ending December 31, 2013, the Company now expects adjusted revenues to be $2.09 – $2.12 billion and adjusted income from continuing operations per diluted share to be $3.54 – $3.69. Previously, the Company expected full year adjusted revenues to be $2.07 – $2.12 billion and adjusted income from continuing operations per diluted share to be $3.49 – $3.69.
On a GAAP basis, the Company expects third quarter 2013 revenues to be $522 – $532 million and income from continuing operations per diluted share to be $0.55 – $0.60. For the full year ending December 31, 2013, the Company expects revenues to be $2.08 – $2.11 billion and income from continuing operations per diluted share to be $2.11 – $2.26.
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 website for a limited time.
Use of Non-GAAP Financial Information
Adjusted results are non-GAAP measures that 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 website athttp://investor.belden.com.
Forward Looking Statements
This release contains forward looking statements including our expectations for the third quarter and full-year 2013. Forward looking statements also include any other 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 and are not guarantees of future performance. The Company’s actual results may differ materially from these expectations for a number of reasons including: changes in the global economy may impact the Company’s results;
Belden Reports Solid Results in Second Quarter 2013 – Page 3 of 3
turbulence in financial markets may increase the Company’s borrowing costs; the Company relies 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 broadcast, enterprise, and industrial markets; 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, 2012, filed with the SEC on February 28, 2013. 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
St. Louis–based Belden Inc. delivers a comprehensive product portfolio designed to meet the mission-critical network infrastructure needs of industrial, enterprise and broadcast markets. With innovative solutions targeted at reliable and secure transmission of rapidly growing amounts of data, audio and video needed for today’s applications, Belden is at the center of the global transformation to a connected world. Founded in 1902, the company is headquartered in St. Louis and has manufacturing capabilities in North and South America, Europe and Asia. For more information, visit us at www.belden.com or follow us on Twitter @BeldenInc.
Contact:
Belden Investor Relations
314-854-8054
Investor.Relations@Belden.com
BDC-E
BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2013 | July 1, 2012 | June 30, 2013 | July 1, 2012 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Revenues | $ | 529,491 | $ | 458,218 | $ | 1,036,964 | $ | 897,818 | ||||||||
Cost of sales | (350,295 | ) | (313,570 | ) | (690,415 | ) | (620,371 | ) | ||||||||
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Gross profit | 179,196 | 144,648 | 346,549 | 277,447 | ||||||||||||
Selling, general and administrative expenses | (93,503 | ) | (76,342 | ) | (185,485 | ) | (157,864 | ) | ||||||||
Research and development | (20,931 | ) | (14,814 | ) | (41,356 | ) | (28,622 | ) | ||||||||
Amortization of intangibles | (13,105 | ) | (2,415 | ) | (26,082 | ) | (5,499 | ) | ||||||||
Income from equity method investment | 2,256 | 1,960 | 4,527 | 4,701 | ||||||||||||
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Operating income | 53,913 | 53,037 | 98,153 | 90,163 | ||||||||||||
Interest expense | (18,345 | ) | (12,499 | ) | (34,250 | ) | (24,418 | ) | ||||||||
Interest income | 149 | 211 | 257 | 562 | ||||||||||||
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Income from continuing operations before taxes | 35,717 | 40,749 | 64,160 | 66,307 | ||||||||||||
Income tax expense | (6,225 | ) | (1,044 | ) | (12,423 | ) | (6,863 | ) | ||||||||
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Income from continuing operations | 29,492 | 39,705 | 51,737 | 59,444 | ||||||||||||
Income from discontinued operations, net of tax | — | 2,685 | — | 7,221 | ||||||||||||
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Net income | $ | 29,492 | $ | 42,390 | $ | 51,737 | $ | 66,665 | ||||||||
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Weighted average number of common shares and equivalents: | ||||||||||||||||
Basic | 43,928 | 45,526 | 44,173 | 45,720 | ||||||||||||
Diluted | 44,790 | 46,305 | 45,107 | 46,623 | ||||||||||||
Basic income per share: | ||||||||||||||||
Continuing operations | $ | 0.67 | $ | 0.87 | $ | 1.17 | $ | 1.30 | ||||||||
Discontinued operations | — | 0.06 | — | 0.16 | ||||||||||||
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Net income | $ | 0.67 | $ | 0.93 | $ | 1.17 | $ | 1.46 | ||||||||
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Diluted income per share: | ||||||||||||||||
Continuing operations | $ | 0.66 | $ | 0.86 | $ | 1.15 | $ | 1.28 | ||||||||
Discontinued operations | — | 0.06 | — | 0.15 | ||||||||||||
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Net income | $ | 0.66 | $ | 0.92 | $ | 1.15 | $ | 1.43 | ||||||||
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Comprehensive income | $ | 23,950 | $ | 14,152 | $ | 38,842 | $ | 49,053 | ||||||||
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Dividends declared per share | $ | 0.05 | $ | 0.05 | $ | 0.10 | $ | 0.10 |
BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)
Three months ended | Six months ended | |||||||||||||||
June 30, 2013 | July 1, 2012 | June 30, 2013 | July 1, 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
Revenues: | ||||||||||||||||
Broadcast Solutions | $ | 166,551 | $ | 74,335 | $ | 322,137 | $ | 144,392 | ||||||||
Enterprise Connectivity Solutions | 132,929 | 129,475 | 249,556 | 253,827 | ||||||||||||
Industrial Connectivity Solutions | 171,892 | 173,640 | 348,613 | 343,273 | ||||||||||||
Industrial IT Solutions | 58,119 | 56,231 | 116,658 | 107,113 | ||||||||||||
All other | — | 24,537 | — | 49,213 | ||||||||||||
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Consolidated | $ | 529,491 | $ | 458,218 | $ | 1,036,964 | $ | 897,818 | ||||||||
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Operating income (loss): | ||||||||||||||||
Broadcast Solutions | $ | 3,505 | $ | 2,467 | $ | 3,359 | $ | 3,635 | ||||||||
Enterprise Connectivity Solutions | 14,675 | 14,284 | 23,510 | 24,036 | ||||||||||||
Industrial Connectivity Solutions | 24,344 | 26,725 | 48,793 | 45,698 | ||||||||||||
Industrial IT Solutions | 9,225 | 9,782 | 18,742 | 15,495 | ||||||||||||
All other | 1,278 | (1,638 | ) | 1,278 | (2,180 | ) | ||||||||||
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Total segments | 53,027 | 51,620 | 95,682 | 86,684 | ||||||||||||
Eliminations | (1,370 | ) | (543 | ) | (2,056 | ) | (1,222 | ) | ||||||||
Income from equity method investment | 2,256 | 1,960 | 4,527 | 4,701 | ||||||||||||
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Consolidated | $ | 53,913 | $ | 53,037 | $ | 98,153 | $ | 90,163 | ||||||||
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BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, 2013 | December 31, 2012 | |||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 476,201 | $ | 395,095 | ||||
Receivables, net | 326,413 | 300,864 | ||||||
Inventories, net | 209,691 | 215,282 | ||||||
Income tax receivable | 20,382 | — | ||||||
Deferred income taxes | 22,718 | 19,885 | ||||||
Other current assets | 21,786 | 28,456 | ||||||
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Total current assets | 1,077,191 | 959,582 | ||||||
Property, plant and equipment, less accumulated depreciation | 299,838 | 307,048 | ||||||
Goodwill | 772,014 | 778,708 | ||||||
Intangible assets, less accumulated amortization | 400,330 | 428,273 | ||||||
Deferred income taxes | 40,098 | 46,970 | ||||||
Other long-lived assets | 75,173 | 64,002 | ||||||
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$ | 2,664,644 | $ | 2,584,583 | |||||
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LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 190,531 | $ | 183,672 | ||||
Accrued liabilities | 162,275 | 166,272 | ||||||
Current maturities of long-term debt | 23,810 | 15,678 | ||||||
Current liabilities of discontinued operations | — | 86,860 | ||||||
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Total current liabilities | 376,616 | 452,482 | ||||||
Long-term debt | 1,307,104 | 1,135,527 | ||||||
Postretirement benefits | 139,573 | 144,320 | ||||||
Other long-term liabilities | 46,039 | 40,394 | ||||||
Stockholders’ equity: | ||||||||
Common stock | 503 | 503 | ||||||
Additional paid-in capital | 587,029 | 598,180 | ||||||
Retained earnings | 509,041 | 461,756 | ||||||
Accumulated other comprehensive loss | (43,460 | ) | (30,565 | ) | ||||
Treasury stock | (257,801 | ) | (218,014 | ) | ||||
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Total stockholders’ equity | 795,312 | 811,860 | ||||||
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$ | 2,664,644 | $ | 2,584,583 | |||||
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BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited)
Six Months Ended | ||||||||
June 30, 2013 | July 1, 2012 | |||||||
(In thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 51,737 | $ | 66,665 | ||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||
Depreciation and amortization | 47,787 | 23,659 | ||||||
Share-based compensation | 7,366 | 6,339 | ||||||
Pension funding less than pension expense | 1,723 | 883 | ||||||
Provision for inventory obsolescence | 963 | 3,056 | ||||||
Deferred income tax benefit | (897 | ) | (10,368 | ) | ||||
Income from equity method investment | (4,527 | ) | (4,701 | ) | ||||
Tax benefit related to share-based compensation | (5,362 | ) | (3,909 | ) | ||||
Changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses: | ||||||||
Receivables | (43,370 | ) | (27,553 | ) | ||||
Inventories | 6,312 | 13,418 | ||||||
Accounts payable | 5,500 | (10,823 | ) | |||||
Accrued liabilities | (1,854 | ) | (23,754 | ) | ||||
Accrued taxes | (85,769 | ) | 3,566 | |||||
Other assets | 232 | (1,832 | ) | |||||
Other liabilities | 3,659 | (4,084 | ) | |||||
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Net cash provided by (used for) operating activities | (16,500 | ) | 30,562 | |||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (20,266 | ) | (21,753 | ) | ||||
Cash used to acquire businesses, net of cash acquired | (9,979 | ) | (587 | ) | ||||
Proceeds from disposal of tangible assets | 3,136 | 353 | ||||||
Proceeds from disposal of business | 3,735 | — | ||||||
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Net cash used for investing activities | (23,374 | ) | (21,987 | ) | ||||
Cash flows from financing activities: | ||||||||
Borrowings under credit arrangements | 388,220 | — | ||||||
Payments under borrowing arrangements | (197,191 | ) | (600 | ) | ||||
Payments under share repurchase program | (62,500 | ) | (50,000 | ) | ||||
Debt issuance costs paid | (7,817 | ) | — | |||||
Cash dividends paid | (2,310 | ) | (4,712 | ) | ||||
Proceeds (payments) from exercise of stock options, net of withholding tax payments | (1,186 | ) | 2,198 | |||||
Proceeds from settlement of derivatives | — | 2,733 | ||||||
Tax benefit related to share-based compensation | 5,362 | 3,909 | ||||||
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Net cash provided by (used for) financing activities | 122,578 | (46,472 | ) | |||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | (1,598 | ) | (7,541 | ) | ||||
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Increase (decrease) in cash and cash equivalents | 81,106 | (45,438 | ) | |||||
Cash and cash equivalents, beginning of period | 395,095 | 382,716 | ||||||
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Cash and cash equivalents, end of period | $ | 476,201 | $ | 337,278 | ||||
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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 adjusted for acquisition and divestiture transaction costs, capital expenditures net of the proceeds from the disposal of tangible assets, and non-recurring tax payments related to divestitures and settlement of a tax sharing agreement. 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 | Six Months Ended | |||||||||||||||
June 30, 2013 | July 1, 2012 | June 30, 2013 | July 1, 2012 | |||||||||||||
(In thousands) | ||||||||||||||||
GAAP net cash provided by (used for) operating activities | $ | 55,226 | $ | 17,814 | $ | (16,500 | ) | $ | 30,562 | |||||||
Capital expenditures, net of proceeds from the disposal of tangible assets | (11,770 | ) | (13,843 | ) | (17,130 | ) | (21,400 | ) | ||||||||
Non-recurring tax payments made for gain on 2012 sale of Thermax and Raydex cable business | 3,355 | — | 41,808 | — | ||||||||||||
Non-recurring tax payments made in settlement of tax sharing agreement with Cooper Industries | — | — | 30,000 | — | ||||||||||||
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Non-GAAP free cash flow | $ | 46,811 | $ | 3,971 | $ | 38,178 | $ | 9,162 | ||||||||
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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; acquisition and divestiture transaction costs; revenue and cost of sales deferrals for acquired product lines subject to software revenue recognition accounting requirements; severance and other restructuring costs; gains (losses) recognized on the disposal of businesses and tangible assets; amortization of intangible assets; gains (losses) on debt extinguishment; and other costs. 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. Adjusted results should be considered only in conjunction with results reported according to accounting principles generally accepted in the United States.
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2013 | July 1, 2012 | June 30, 2013 | July 1, 2012 | |||||||||||||
(In thousands, except percentages and per share amounts) | ||||||||||||||||
GAAP revenues | $ | 529,491 | $ | 458,218 | $ | 1,036,964 | $ | 897,818 | ||||||||
Deferred revenue adjustments | 3,139 | — | 6,055 | — | ||||||||||||
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Adjusted revenues | $ | 532,630 | $ | 458,218 | $ | 1,043,019 | $ | 897,818 | ||||||||
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GAAP gross profit | $ | 179,196 | $ | 144,648 | $ | 346,549 | $ | 277,447 | ||||||||
Severance and other restructuring costs | 3,061 | — | 3,170 | — | ||||||||||||
Accelerated depreciation | 2,685 | — | 2,685 | — | ||||||||||||
Deferred gross profit adjustments | 2,445 | — | 4,572 | — | ||||||||||||
Purchase accounting effects related to acquisitions | — | — | 6,550 | — | ||||||||||||
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Adjusted gross profit | $ | 187,387 | $ | 144,648 | $ | 363,526 | $ | 277,447 | ||||||||
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Adjusted gross profit margin | 35.2 | % | 31.6 | % | 34.9 | % | 30.9 | % | ||||||||
GAAP operating income | $ | 53,913 | $ | 53,037 | $ | 98,153 | $ | 90,163 | ||||||||
Amortization of intangible assets | 13,105 | 2,415 | 26,082 | 5,499 | ||||||||||||
Severance and other restructuring costs | 4,965 | — | 5,753 | — | ||||||||||||
Accelerated depreciation | 2,685 | — | 2,685 | — | ||||||||||||
Deferred gross profit adjustments | 2,445 | — | 4,572 | — | ||||||||||||
Purchase accounting effects related to acquisitions | — | — | 6,550 | — | ||||||||||||
Gain on sale of assets | (1,278 | ) | — | (1,278 | ) | — | ||||||||||
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Total operating income adjustments | 21,922 | 2,415 | 44,364 | 5,499 | ||||||||||||
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Adjusted operating income | $ | 75,835 | $ | 55,452 | $ | 142,517 | $ | 95,662 | ||||||||
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Adjusted operating income margin | 14.2 | % | 12.1 | % | 13.7 | % | 10.7 | % | ||||||||
GAAP income from continuing operations | $ | 29,492 | $ | 39,705 | $ | 51,737 | $ | 59,444 | ||||||||
Operating income adjustments from above | 21,922 | 2,415 | 44,364 | 5,499 | ||||||||||||
Tax effect of adjustments | (7,248 | ) | (868 | ) | (13,609 | ) | (1,893 | ) | ||||||||
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Adjusted income from continuing operations | $ | 44,166 | $ | 41,252 | $ | 82,492 | $ | 63,050 | ||||||||
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GAAP income from continuing operations per diluted share | $ | 0.66 | $ | 0.86 | $ | 1.15 | $ | 1.28 | ||||||||
Adjusted income from continuing operations per diluted share | $ | 0.99 | $ | 0.89 | $ | 1.83 | $ | 1.35 | ||||||||
GAAP and Adjusted diluted weighted average shares | 44,790 | 46,305 | 45,107 | 46,623 |
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; acquisition and divestiture transaction costs; revenue and cost of sales deferrals for acquired product lines subject to software revenue recognition accounting requirements; severance and other restructuring costs; gains (losses) recognized on the disposal of businesses and tangible assets; amortization of intangible assets; gains (losses) on debt extinguishment; and other costs. 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. Adjusted results should be considered only in conjunction with results reported according to accounting principles generally accepted in the United States.
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||
Broadcast Solutions | Enterprise Connectivity Solutions | Industrial Connectivity Solutions | Industrial IT Solutions | All Other | Total Segments | Eliminations | Income from equity method investment | Consolidated | ||||||||||||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||||||||||||||
GAAP revenues | $ | 166,551 | $ | 132,929 | $ | 171,892 | $ | 58,119 | $ | — | $ | 529,491 | $ | — | $ | — | $ | 529,491 | ||||||||||||||||||
Deferred revenue adjustments | 3,139 | — | — | — | — | 3,139 | — | — | 3,139 | |||||||||||||||||||||||||||
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Adjusted revenues | $ | 169,690 | $ | 132,929 | $ | 171,892 | $ | 58,119 | $ | — | $ | 532,630 | $ | — | $ | — | $ | 532,630 | ||||||||||||||||||
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GAAP operating income | $ | 3,505 | $ | 14,675 | $ | 24,344 | $ | 9,225 | $ | 1,278 | $ | 53,027 | $ | (1,370 | ) | $ | 2,256 | $ | 53,913 | |||||||||||||||||
Amortization of intangible assets | 11,940 | 101 | 274 | 790 | — | 13,105 | — | — | 13,105 | |||||||||||||||||||||||||||
Severance and other restructuring costs | 3,530 | 34 | 57 | 1,344 | — | 4,965 | — | — | 4,965 | |||||||||||||||||||||||||||
Accelerated depreciation | 2,685 | — | — | — | 2,685 | — | — | 2,685 | ||||||||||||||||||||||||||||
Deferred gross profit adjustments | 2,445 | — | — | — | — | 2,445 | — | — | 2,445 | |||||||||||||||||||||||||||
Gain on sale of assets | — | — | — | — | (1,278 | ) | (1,278 | ) | — | — | (1,278 | ) | ||||||||||||||||||||||||
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Total operating income adjustments | 20,600 | 135 | 331 | 2,134 | (1,278 | ) | 21,922 | — | — | 21,922 | ||||||||||||||||||||||||||
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Adjusted operating income | $ | 24,105 | $ | 14,810 | $ | 24,675 | $ | 11,359 | $ | — | $ | 74,949 | $ | (1,370 | ) | $ | 2,256 | $ | 75,835 | |||||||||||||||||
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Adjusted operating income margin | 14.2 | % | 11.1 | % | 14.4 | % | 19.5 | % | 14.1 | % | 14.2 | % | ||||||||||||||||||||||||
Three Months Ended July 1, 2012 | ||||||||||||||||||||||||||||||||||||
Broadcast Solutions | Enterprise Connectivity Solutions | Industrial Connectivity Solutions | Industrial IT Solutions | All Other | Total Segments | Eliminations | Income from equity method investment | Consolidated | ||||||||||||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||||||||||||||
GAAP revenues | $ | 74,335 | $ | 129,475 | $ | 173,640 | $ | 56,231 | $ | 24,537 | $ | 458,218 | $ | — | $ | — | $ | 458,218 | ||||||||||||||||||
Deferred revenue adjustments | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
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Adjusted revenues | $ | 74,335 | $ | 129,475 | $ | 173,640 | $ | 56,231 | $ | 24,537 | $ | 458,218 | $ | — | $ | — | $ | 458,218 | ||||||||||||||||||
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GAAP operating income (loss) | $ | 2,467 | $ | 14,284 | $ | 26,725 | $ | 9,782 | $ | (1,638 | ) | $ | 51,620 | $ | (543 | ) | $ | 1,960 | $ | 53,037 | ||||||||||||||||
Amortization of intangible assets | 1,003 | 152 | 354 | 804 | 102 | 2,415 | — | — | 2,415 | |||||||||||||||||||||||||||
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Total operating income adjustments | 1,003 | 152 | 354 | 804 | 102 | 2,415 | — | — | 2,415 | |||||||||||||||||||||||||||
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Adjusted operating income (loss) | $ | 3,470 | $ | 14,436 | $ | 27,079 | $ | 10,586 | $ | (1,536 | ) | $ | 54,035 | $ | (543 | ) | $ | 1,960 | $ | 55,452 | ||||||||||||||||
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Adjusted operating income margin | 4.7 | % | 11.1 | % | 15.6 | % | 18.8 | % | -6.3 | % | 11.8 | % | 12.1 | % |
BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
2013 REVENUE AND EARNINGS GUIDANCE
Year Ended | Three Months Ended | |||
Non-GAAP revenue | $2.09 - $2.12 billion | $525 - $535 million | ||
Deferred revenue adjustments | ($12 million) | ($3 million) | ||
GAAP revenue | $2.08 - $2.11 billion | $522 - $532 million | ||
Non-GAAP income from continuing operations per diluted share | $3.54 - $3.69 | $0.90 - $0.95 | ||
Amortization of intangible assets | ($0.85) | ($0.21) | ||
Plant consolidation and other restructuring costs | ($0.33) | ($0.10) | ||
Deferred gross profit adjustments | ($0.16) | ($0.04) | ||
Purchase accounting effects related to Miranda, PPC, and Softel acquisitions | ($0.11) | — | ||
Gain on sale of assets | $0.02 | — | ||
GAAP income from continuing operations per diluted share | $2.11 - $2.26 | $0.55 - $0.60 |
Our guidance for income from continuing operations per diluted share is based upon the extent of information currently available regarding events and conditions that will impact our future operating results for 2013. Our actual income from continuing operations per diluted share may be impacted by other additional events for which information is not available, such as asset impairments, purchase accounting effects related to acquisitions, severance and other restructuring costs, gains (losses) recognized on the disposal of tangible assets, gains (losses) on debt extinguishment, and other gains (losses) related to events or conditions that are not yet known.