Exhibit 99.1
Belden CDT Inc.
[BELDEN CDT LOGO] NEWS RELEASE 7701 Forsyth Boulevard, Suite 800
St. Louis, Missouri 63105
314-854-8000
www.beldencdt.com
April 27, 2006
BELDEN CDT REPORTS REVENUE UP 12.4 PERCENT,
ADJUSTED OPERATING PROFIT OF 9.1 PERCENT FOR FIRST QUARTER
RAISES OUTLOOK DRIVEN BY EFFECTIVE PRODUCT PRICING AND INDUSTRIAL DEMAND
St. Louis - Belden CDT Inc. (NYSE:BDC) announced today that revenue for the
first quarter ended March 26, 2006, was $321.9 million. For the quarter,
operating income was $27.0 million, income from continuing operations was $14.9
million, and earnings per diluted share from continuing operations were $0.32.
Quarterly revenue increased 12.4 percent from the prior year, reflecting organic
growth of 13.7 percent, offset by unfavorable currency translation of
1.3percent.
During the first quarter of 2006, the Company recorded pretax charges of $2.4
million for severance and accelerated depreciation associated with its
previously communicated European restructuring. First-quarter 2005 results
included pretax charges of $2.0 million for severance, restructuring and
merger-related costs. Operating income, adjusted for these charges, increased 76
percent from $16.7 million to $29.4 million, and the operating margin rose 330
basis points to 9.1 percent of revenue. Earnings from continuing operations per
diluted share, similarly adjusted, rose 100 percent from $0.18 in 2005 to $0.36
in 2006.
MANAGEMENT COMMENT
"We are pleased with the results of our first quarter," said John Stroup,
President and Chief Executive Officer. "We experienced strong volume in our
industrial markets in most regions of the world. In North America, we achieved
significant benefit from our late-fourth-quarter price increases in the
industrial and specialty markets. In the networking category, we instituted
improved pricing policies and practices that led to lower levels of discounting.
While we still have much work to do in this category, we have begun to see
improvement," he continued.
"Overall, despite record-high copper prices, we delivered increased operating
profits from more disciplined pricing, improved factory utilization, favorable
mix and the impact of cost reduction programs implemented during 2005," said Mr.
Stroup. "At the same time, we successfully sold our telecommunications business
in the United Kingdom and continued to implement our European restructuring
program."
ITEMS OF NOTE
Items of special note for the quarter include the following:
- - In early February, the Company announced organizational changes that
resulted in a change in reported segments. The four new segments are
Belden Americas, Specialty, Europe, and Asia/Pacific.
- - The Company announced on March 21 that it had completed the sale of its
telecommunications cable business in Manchester, England. That operation
is now reflected in the Company's financial statements as a discontinued
operation. The Company had announced in September, 2005, its plans to exit
this business.
- - On April 4, the Company announced plans to cease manufacturing in Orebro,
Sweden, as part of its restructuring in Europe. The Company incurred $2.4
million (pretax) in severance charges and accelerated depreciation during
the first quarter related to Orebro and other European locations. There
was minimal tax benefit available in the jurisdictions where these charges
were recorded.
OUTLOOK
"We are in a highly volatile material cost environment. It will be a continuing
challenge in such an environment to manage our pricing in all markets to ensure
that we are maintaining and improving our profitability," said Mr. Stroup.
"While this might entail additional, perhaps sizable price increases, we now
have the processes in place to move quickly and prudently.
"Our original earnings outlook for 2006 excluded the incremental expense
related to the implementation of FAS 123(R), which requires the expensing of
stock options. We now expect that option expense will be $0.02 to $0.03 for
2006.
"We are raising our earnings guidance for the year 2006," said Mr. Stroup. "We
expect our earnings per share will be between $1.55 and $1.70. This guidance
includes option expense but excludes any further restructuring charges,
severance pay, and accelerated depreciation associated with the European
restructuring program and any similar charges that might occur. Of course, our
success in keeping pace with material cost increases will heavily influence our
ability to achieve this level of profitability.
"For the second quarter of 2006, we expect earnings per share between $0.37 and
$0.42," he concluded.
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. These forward-looking statements are based on
forecasts and projections about the 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 significantly from these
expectations. Some of the factors that may cause actual results to differ from
the Company's expectations include the Company's ability to implement its
announced restructuring plans; the Company's
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degree of success in managing its European operations during the restructuring;
the outcome of routine labor negotiations in Canada and Europe; the cost and
availability of materials including copper, plastic compounds derived from
fossil fuels, and other materials; energy costs; the degree to which the Company
will be able to compensate for rising costs through the pricing of its products;
demand for the Company's products; and other factors. For a more complete
discussion of risk factors, please see Belden CDT's Annual Report on Form 10-K
for the year ended December 31, 2005, filed with the SEC on March 16, 2006.
Belden CDT Inc. assumes no responsibility to update any forward-looking
statements as a result of new information or future developments.
ABOUT BELDEN CDT
Belden CDT Inc. is one of the largest U.S.-based manufacturers of high-speed
electronic cables and focuses on products for specialty electronics and data
networking, including connectivity. To obtain additional information contact
Investor Relations at 314-854-8054, or visit Belden CDT's website at
www.beldencdt.com.
CONTACT: Belden CDT Inc.
Dee Johnson, Director of Investor Relations
314-854-8054
The following schedules are provided:
- - Comparative condensed consolidated statements of operations of Belden CDT
Inc. for the three-month periods ended March 26, 2006 and March 27, 2005.
- - Segment results for the quarter ended March 26, 2006, and retrospectively
for each quarter of 2005.
- - Condensed consolidated balance sheets as of March 26, 2006, and December
31, 2005.
- - A supplemental schedule of adjusted consolidated results for the quarter,
excluding severance charges and accelerated depreciation.
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BELDEN CDT INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended MARCH 26, March 27,
2006 2005
- -------------------------------------------------------------------------------------------
(in thousands, except per share data)
(unaudited)
Revenues $ 321,905 $ 286,268
Cost of sales (248,490) (223,483)
- -------------------------------------------------------------------------------------------
Gross profit 73,415 62,785
Selling, general and administrative expenses (46,459) (48,134)
- -------------------------------------------------------------------------------------------
Operating income 26,956 14,651
Interest expense (3,792) (3,758)
Interest income 995 756
Minority interest (217) (167)
- -------------------------------------------------------------------------------------------
Income from continuing operations before taxes 23,942 11,482
Income tax expense (9,002) (4,100)
- -------------------------------------------------------------------------------------------
Income from continuing operations 14,940 7,382
Loss from discontinued operations, net of tax
benefit of $570 and $467, respectively (1,330) (739)
Gain (loss) on disposal of discontinued operations, net of tax
benefit (expense) of $1,842 and $(3,600), respectively (4,298) 6,400
===========================================================================================
Net income $ 9,312 $ 13,043
===========================================================================================
Weighted average number of common shares and equivalents:
Basic 42,550 47,007
Diluted 49,307 53,684
===========================================================================================
Basic income (loss) per share:
Continuing operations $ .35 $ .16
Discontinued operations (.03) (.02)
Disposal of discontinued operations (.10) .14
Net income .22 .28
===========================================================================================
Diluted income (loss) per share:
Continuing operations $ .32 $ .15
Discontinued operations (.03) (.01)
Disposal of discontinued operations (.09) .12
Net income .20 .26
===========================================================================================
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BELDEN CDT INC.
SEGMENT INFORMATION
(in thousands)
(unaudited)
THREE MONTHS ENDED MARCH 26, 2006
EXTERNAL OPERATING
CUSTOMER AFFILIATE TOTAL INCOME
REVENUES REVENUES REVENUES (LOSS)
- -----------------------------------------------------------------------------------------
BELDEN AMERICAS $ 175,366 $ 14,912 $ 190,278 $ 31,033
SPECIALTY PRODUCTS 60,718 5,370 66,088 6,902
EUROPE 73,012 2,136 75,148 (1,140)
ASIA PACIFIC 12,809 -- 12,809 1,453
- -----------------------------------------------------------------------------------------
TOTAL SEGMENTS 321,905 22,418 344,323 38,248
FINANCE AND ADMINISTRATION -- -- -- (6,265)
ELIMINATIONS -- (22,418) (22,418) (5,027)
- -----------------------------------------------------------------------------------------
TOTAL CONTINUING OPERATIONS $ 321,905 $ -- $ 321,905 $ 26,956
=========================================================================================
Three Months Ended March 27, 2005
External Operating
Customer Affiliate Total Income
Revenues Revenues Revenues (Loss)
- ------------------------------------------------------------------------------------------
Belden Americas $ 142,421 $ 17,965 $ 160,386 $ 16,644
Specialty Products 53,920 4,054 57,974 7,428
Europe 78,947 1,602 80,549 719
Asia Pacific 10,980 -- 10,980 95
- ------------------------------------------------------------------------------------------
Total Segments 286,268 23,621 309,889 24,886
Finance and Administration -- -- -- (5,952)
Eliminations -- (23,621) (23,621) (4,283)
- ------------------------------------------------------------------------------------------
Total Continuing Operations $ 286,268 $ -- $ 286,268 $ 14,651
==========================================================================================
Three Months Ended June 26, 2005
External Operating
Customer Affiliate Total Income
Revenues Revenues Revenues (Loss)
- -----------------------------------------------------------------------------------------
Belden Americas $ 152,238 $ 23,435 $ 175,673 $ 20,912
Specialty Products 61,950 4,038 65,988 8,622
Europe 84,425 2,925 87,350 2,748
Asia Pacific 12,825 -- 12,825 434
- -----------------------------------------------------------------------------------------
Total Segments 311,438 30,398 341,836 32,716
Finance and Administration -- -- -- (11,482)
Eliminations -- (30,398) (30,398) (4,875)
- -----------------------------------------------------------------------------------------
Total Continuing Operations $ 311,438 $ -- $ 311,438 $ 16,359
=========================================================================================
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BELDEN CDT INC.
SEGMENT INFORMATION
(in thousands)
(unaudited)
Three Months Ended September 25, 2005
External Operating
Customer Affiliate Total Income
Revenues Revenues Revenues (Loss)
- -----------------------------------------------------------------------------------------
Belden Americas $ 159,374 $ 16,505 $ 175,879 $ 28,820
Specialty Products 63,527 4,940 68,467 4,502
Europe 80,845 1,840 82,685 (3,959)
Asia Pacific 12,734 -- 12,734 1,237
- -----------------------------------------------------------------------------------------
Total Segments 316,480 23,285 339,765 30,600
Finance and Administration -- -- -- (8,274)
Eliminations -- (23,285) (23,285) (4,308)
- -----------------------------------------------------------------------------------------
Total Continuing Operations $ 316,480 $ -- $ 316,480 $ 18,018
=========================================================================================
Three Months Ended December 31, 2005
External Operating
Customer Affiliate Total Income
Revenues Revenues Revenues (Loss)
- -----------------------------------------------------------------------------------------
Belden Americas $ 173,103 $ 15,621 $ 188,724 $ 29,916
Specialty Products 64,670 5,781 70,451 6,046
Europe 80,041 2,626 82,667 (8,050)
Asia Pacific 13,669 -- 13,669 1,072
- -----------------------------------------------------------------------------------------
Total Segments 331,483 24,028 355,511 28,984
Finance and Administration -- -- -- (5,009)
Eliminations -- (24,028) (24,028) (4,465)
- -----------------------------------------------------------------------------------------
Total Continuing Operations $ 331,483 $ -- $ 331,483 $ 19,510
=========================================================================================
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BELDEN CDT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 26, December 31,
2006 2005
- ---------------------------------------------------------------------------------------------
(in thousands) (UNAUDITED)
ASSETS
Current assets
Cash and cash equivalents $ 153,216 $ 134,638
Receivables 202,132 174,360
Inventories 261,859 245,481
Deferred income taxes 27,893 27,845
Other current assets 7,224 8,015
Current assets of discontinued operations -- 56,997
- ---------------------------------------------------------------------------------------------
Total current assets 652,324 647,336
Property, plant and equipment, less accumulated depreciation 283,114 287,778
Goodwill, less accumulated amortization 272,996 272,290
Intangible assets, less accumulated amortization 72,065 72,459
Other long-lived assets 17,621 6,214
- ---------------------------------------------------------------------------------------------
$ 1,298,120 $ 1,286,077
=============================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 195,962 $ 196,078
Current maturities of long-term debt 59,052 59,000
Current liabilities of discontinued operations 357 13,342
- ---------------------------------------------------------------------------------------------
Total current liabilities 255,371 268,420
Long-term debt 172,000 172,051
Postretirement benefits other than pensions 33,917 33,167
Deferred income taxes 76,057 73,851
Other long-term liabilities 17,699 17,166
Minority interest 8,342 7,914
Stockholders' equity
Preferred stock -- --
Common stock 503 503
Additional paid-in capital 549,181 540,430
Retained earnings 298,047 290,870
Accumulated other comprehensive loss (1,535) (6,881)
Unearned deferred compensation -- (336)
Treasury stock (111,462) (111,078)
- ---------------------------------------------------------------------------------------------
Total stockholders' equity 734,734 713,508
- ---------------------------------------------------------------------------------------------
$ 1,298,120 $ 1,286,077
=============================================================================================
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BELDEN CDT INC.
ADJUSTED OPERATING RESULTS
(in thousands)
(unaudited)
In addition to reporting financial results in accordance with accounting
principles generally accepted in the United States, we provide operating results
adjusted for severance charges, accelerated depreciation, and merger-related
costs. We believe these adjusted results are useful to investors because they
help to provide insights into underlying trends in the business. Adjusted
results should be considered only in conjunction with results reported according
to generally accepted accounting principles.
As Reported Adjusted
Three Months Three Months
Ended Ended
March 26, 2006 Adjustments (1) March 26, 2006
- -------------------------------------------------------------------------------------------------------
Revenues $ 321,905 $ -- $ 321,905
Gross profit $ 73,415 $ 1,638 $ 75,053
as a percent of revenues 22.8% 23.3%
Operating income $ 26,956 $ 2,399 $ 29,355
as a percent of revenues 8.4% 9.1%
Income from continuing operations $ 14,940 $ 2,161 $ 17,101
as a percent of revenues 4.6% 5.3%
Income from continuing operations per diluted
share $ .32 $ .04 $ .36
=======================================================================================================
As Reported Adjusted
Three Months Three Months
Ended Ended
March 27, 2005 Adjustments (2) March 27, 2005
- -------------------------------------------------------------------------------------------------------
Revenues $ 286,268 $ -- $ 286,268
Gross profit $ 62,785 $ 482 $ 63,267
as a percent of revenues 21.9% 22.1%
Operating income $ 14,651 $ 2,045 $ 16,696
as a percent of revenues 5.1% 5.8%
Income from continuing operations $ 7,382 $ 1,430 $ 8,812
as a percent of revenues 2.6% 3.1%
Income from continuing operations per diluted
share $ .15 $ .03 $ .18
=======================================================================================================
(1) Severance charges and accelerated depreciation.
(2) Adjusted for severance charges and merger-related costs.
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