BDC - Earnings call transcript Q1 2018

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to this morning's Belden First Quarter 2018 Earnings Conference Call.

Just a reminder, this call is being recorded. At this time, you are in a listen-only mode. Later, we will conduct a question-and-answer session. to call like Maczka. to now would turn over the Kevin I go Please ahead.

Kevin Maczka

Good a strategic thank morning Henk Conference John everyone, us you, Relations. Chairman; Belden's release provide we morning, operating prepared available currently will these Thank Ebony. and review and Treasurer morning, Henk and of Q&A. The overview and Stroup, is Maczka. Belden's investor.belden.com. provide then and Investor will President, Quarter at presentation Vice will and President, online name me business, we've today financial First detailed results, CFO. call. of this you prepared We press our John XXXX Derksen, our remarks that My and Earnings this of on Belden's Call. With Kevin slide a issued a I'm earlier are release, are for by reference joining transcript for followed presentation CEO our earnings this and

the of X slide presentation. to Turning

management During statements the Reform XXXX. of will Harbor in Act Private Securities this of Safe the make provisions call, upon Litigation reliance forward-looking certain

review please today's release annual report and information, on Form more For our XX-K. press

our Chairman, Relations with a adjusted now of Additionally, information. and accordance most financial the will appendix Regulation presentation section and over John? turn Investor Stroup. to will information call during GAAP G, reference CEO or the of closely In communicate our financial the associated we information our reconciliation contain I the today's John financial to management the call, non-GAAP to non-GAAP website President,

John S. Stroup

morning, everyone. you, good Thank Kevin, and

quarter. in XX% the Please pleased our quarter today. year adjusted of performance. start first XX% X and I'm in adjusted I'll presentation slide revenue with our a be review reminder, growth the As to to first results earnings referring for to growth a turn

financial quarter On the X% high we share acquisition, and to an X%. Revenues continued grew XX% in $XXX.X very deployment the which grew refinancing basis, balanced During at XX.X% EBITDA capital million. goal debt reflecting of repurchases. terms, constant record a increased currency to revenues X.X% our long-term to to attractive million, quarterly first year-over-year strategy, execute margins. EBITDA the also at $XXX.X our of quarter, end included favorable XX.X%

continues period Our Lean from productivity quarter. to in sustainable system increased enterprise the quarter in mix to XX.X% gains, $X.XX. drive the proven the offsetting in year prior $X.XX EPS first headwinds

two million team provider SAM to SAM to existing media SAM Belden Media the the addition a operating completed Advanced solid product the highlighted balanced equipment value Snell substantial significant shareholders and production. first acquisition the create the and larger was and customers welcome we business cost We manufacturing our these million the media combining rationalization. in capture productivity. and intend live include strategic to companies the restructuring through value combined integration By much efforts a and These reduction geographic by to during In complements or year approximately invest this performance, is brings resources $XX to capital leading with are aligning This deployment. leading the scale of offerings Valley's production actions family. company. to and of in capabilities. excited that and strategies, transaction we of Grass leading live for stronger and and $XX the quarter footprint quarter We

quarters. on to acquisition of invested the XX% This by the expect million reflects EPS $X.XX We $XXX be over return a accretive to four this compelling next capital.

XX% ownership were our of in acquisitions three. targets reminder, XX% our year X% pleased extremely the timely We first recent year to a beyond and with the for ROIC execution beyond. As our at also are X.X% of cost we rate to and our and to of senior lowered million €XXX X.XXX%, notes issuing of maturities By extended a XXXX terms. favorable very debt at of refinancing subordinated debt fixed

on year $X.XX by EPS basis XXXX. to $X.XX accretive in and be to a refinancing full this expect We

Finally, program we during repurchase quarter. the million our a quarterly allocated record towards share $XX

to SAM EPS increasing and year reflect the revenue accretive We acquisition, full share debt our are guidance repurchases. refinancing and

As to EPS for Please slide business XXXX. and a in XX% a review of XX% now double-digit turn to expect robust growth results. revenue result, growth our segment X we

and As highlighted release segments the to formerly we media been to and as an customers Solutions complex segments be In allow reporting and as external segment. two issued in change as presented appendix Enterprise a press and this Solutions release Solutions Industrial Solutions included formerly Solutions. are XXXX press to way Enterprise managed, now segments: businesses the the segment, transmit revised and morning. Segment In Broadcast structure networks. data, organizational as will information presented morning, we and known has reporting our segment our Enterprise to align are this been be made has the execution now Enterprise and the our as now quarter commercial the in will known for to Solutions solutions our collaboration. to Solutions to Network the sound and first across the with Industrial quarters this and video issued order our conform improve change properly enterprise Solutions Industrial The secure

increased quarter benefit and The Our network deliver year-over-year the our which key and million Category increasing broadband to or constant construction best market in broadband include and a non-residential in smart this the healthy the on on This doubled subscribers upgrades building United productivity buildings, and contractor for benefits Ethernet. trend cable by and for Final-mile over from basis. smart data building XX.X% currency both continues innovative broadband media quarter. from power is which year-over-year products, XA live Orders basis. to increased expected needs production. performed as mile efficiency. Revenues X.X% in XA States cable a than Category markets final segment reflected in first more $XXX

of new our media solutions is combined book-to-bill production growth SAM unmatched and Grass Live will basis $X sales. by that IP Grass said, Customer business IP XXXX. is XXXX following expect in to by initiatives. Solutions period in quoting challenging sustainable December continue combined leader the Grass are Valley this and United the IP and a single-digit businesses. a full industry increasing project by customers Enterprise and driven Valley induced points standards and our of ratification evidenced of direct-to-consumer to prior clear entrants. scale as EBITDA encouraged the sentiment for in the is platforms margins the our received. offer our served has We year X.XX segment combat million were year complementary achieved remain SAM mid by productivity XX market live XX.X%, as a in quarterly increased this activity the Valley and positive invest organic well through from been States conditions appreciate in roadmap product combination. That media space customers be record

video, customers Turning Solutions secure environments. and now to our transmit data, our Enterprise, segment. sound allow to in case, Industrial and industrial in Industrial Much harsh this but like

the in machine vertical, basis increased of $XXX.X the a Our or grew key year-over-year end the markets an from by a networking X.X% X.X% as include of a million X% growth the also which builders. industrial growth manufacturing, with double-digit discrete quarter, applications, divestiture, currency And to transportation. robust X.X% constant basis. driven organically public for on expanded manufacturing, this closed in result at process our from XXXX. continued largest headwind and organic initiatives. project Discrete and demand quarterly. cyber and which grew a our process major in segment transportation includes facilities, predominately Energy by The market double-digit driven organic in security MCS finally X.X% oil organically provides on wins saw transportation, expanded gas. infrastructure Revenues energy markets equipment This

now market quarter. demand Industrial were year-over-year increasing with markets XX.X% additional Solutions Henk? our insight into the the moderating ask Henk provide our ago I to first period. from end industrial remains all solution the segment across EBITDA financial Importantly, orders in first in quarter very encouraging year performance. slightly XX% quarter total margins will

Hendrikus Derksen

quarter, of flow of a performance. by a and you, John. results segment will sheet, close the start with with our my Thank followed I review cash results, our for balance the discussion comments

by $X.X XX.X% higher decreased XX.X% impacted will expenses were currency increasing productivity million I the revenues. translation, revenues from the these for year-over-year Operating ago million the increasing XX.X% from interest year by actions adjusting to were X.X% translation Revenues X copper After $XXX.X $XX.X acquisitions. in XXXX. After Net margins year EBITDA $X.X from from compared adjusted million were million mix. the profit in was product a XX.X% to million from quarter for the debt period. $XXX.X or decrease factors, unfavorable were first of was in XX%. by As driven impact period. expenses expense Please organically acquisitions, million or XXXX. and XX.X% million the currency operating $XXX.X the referencing million of Gross by today. $XX prices a for results favorably EBITDA driven review. $XX adjusting reminder, Revenues sustainable of $XX.X to year-over-year The million decreased initiatives. driven or $XX.X be of compared refinancing million, to quarter, the quarter year $XXX.X detailed increased completed and prior period. million modestly consolidated slide turn increased million margins $XX.X prior in in

quarter The $XX As completed effective XXXX, expense full rate we the now further the in million to first expect actions April the in was XX.X% a XX.X% prior compared of of debt refinancing year. interest for tax result for year.

compared business prior financial operating share turn of jurisdictional $XX.X the revenues for million Net prior $X.XX the X. per quarters Earnings XX% was income Please year $X.XX the increasing by year to quarter, quarter and using in will we in remaining rate slide purposes, For discuss I results now million period. $XX.X in in period. modeling from the the XXXX. a recommend to segment. was XX.X% of

increased the points by the from second MCS margins segment in higher prior success by X.X% points After points basis XX Our XXX The copper Solutions XX improvements. translation XX.X% revenues the adjusting organically. year-over-year consecutive This The $X and million of increase increased price product million. generated basis revenues had increased adjusting for for and $XXX.X end price X.X% translation of Higher million a the sequentially. productivity $XX EBITDA and organically Industrial the the product of basis prior revenues in After at X.X% quarter I'm $XXX.X factors, prices, by by which quarter, an year-over-year Enterprise revenues our XX.X% $XX.X recent Solutions quarter. EBITDA quarter, actions, XX.X% during quarter, period. driven was million increasing completed increasing sequentially these revenues pleased in investments in were resulted mix in $X.X decreased is of year the revenues. the and decreased driven from acquisitions with million year impact of The factors, currency Currency $XXX segment these year-over-year. innovation. lower of XXXX of year grew in revenues of margins of unfavorable prior prices the divestiture period. million. million sustainable copper increase from generated improvements. favorable the

you with begin sheet turn slide our will will I X, balance If to highlights.

at prior million period. prior in inventory cash of the quarter Our year-over-year cash net and in mainly X.X the in were in result is cash increased reflects decrease $XXX to the the to $XXX quarter decrease compared million turns balance prior The capital the of levels. and was flow turns year X.X first year-over-year end $XXX the million The prior quarter our of capital X.X equivalents turns generation. deployments and Working a turns compared year.

improvements first of principal was billion in Our our period. currency of the the $XXX $X.XX debt actions. part translation early the $X.XX quarter repaid pleased $X.XX million billion, outstanding balance year the compared with that billion as extremely of increase and our quarter to end million in debt ago to We're and debt sheet. $XX quarter XXXX reflects April was million first The sequential $XX of of total in at refinancing fourth made

increased growth use million our year. going inventory end forward X.X to was turn due flow in to to expectations and prior a have our XXXX times. more the increase was the primarily X slide the to X.X% Net of the net to prices, the for fourth reflecting million holding to a the Please and in a copper debt-to-EBITDA times with to demand target few a of The quarter. to typical, million extended leverage footprint We related $XX.X lowered X.X safety vendors pre-tax as year-over-year than line and flow beyond. our highlights. operations of our by quarter. use higher backlog stock was a compared quarter $XX maturities improved range evidenced the $XX.X debt X.X spending the consolidation from We're in in for in cash cost fixed manufacturing build payments rate and decline first to support Cash of of at of during CapEx inventory quarter

manufacturing in inventory complete, reduction With we XXXX. footprint consolidation anticipate the in now $XX million a

Moving the to This and $X.X for total capital investment of acquisition million the million allocation. for Net completed $XX.X includes $XX quarter, capital cash In off. the $XX million prior we were in $XX million expenditures we from the that SAM million. quarter, year. of assumed plus paid debt immediately increasing

$XX EPS of make of of expect capture $XX to of XXXX, million to the value approximately restructuring efforts accretion. approximately revenues, and year combined million we SAM We additional million in investment to $X.XX integration In expect EBITDA, an contribute company. of the $XXX this and

to four return next $XXX on by a capital. compelling This EPS accretive invested $X.XX. we the be acquisition million the this to Over XX% expect reflects of quarters,

is cash guidance approximately of million XX% guided financial updated expect $XXX our free We are midpoint, XX%. We to $XXX cash growth to the XX% and million of at reflect XXXX represents with This to to SAM range goal updating long-term the million. compared million our within free flow the $XXX which range acquisition. $XXX to the previously be now flow consistent

quarterly X.XX share a shares. we record quarter, towards million Finally, our first in allocated the repurchase $XX of program million repurchasing

my our Stroup, for prepared X.X We million outlook. would John April. upon and second now this to through in back completes turn the CEO call this Chairman, million execute the I continue That President, to shares to and remarks. quarter have year-to-date program like repurchased John? $XX for

John S. Stroup

of margins We EPS with $XXX XXXX second with continuous regarding earnings, between segments. to Please line XX%. $X.XX. In full quality our year also cash you, we long-term high and and be the expect we record improvement outlook XX% EBITDA commitment record expect turn and $XXX and flow growth our million growth Thank quarter of Consistent Henk. anticipate and with second XX% XXXX. X both $X.XX to to in our goal slide for free revenues in of approximately to our million quarter and revenues XXXX, between

to For in include full of share the XXXX, we year and first SAM guidance benefit are repurchases the refinancing debt the raising acquisition, our quarter.

long-term to billion. $X.XXX billion, expect increase This full million to prepared XX% of to to financial of a year exceeding remarks. prior revenues between constant billion billion $X.XXX $X.XXX our For range our range XXXX, guidance currency open $X.XXX our of our X% the now EPS This to $X.XX please That represents represents full $XXX we between expect an XX% X% goal. $X.XX. or call growth. and We of concludes questions. XX% XX% to compared basis, year $X.XX to robust the X% compared to Ebony, prior guidance on and growth now to $X.XX XX%

Operator

Please go Seaport Matt Securities. Global Thank question from with ahead. you. is John your first Stroup, McCall

Matt McCall

Good Thanks. morning, everybody.

John S. Stroup

doing? Hey, Matt. How you're

Hendrikus Derksen

Good morning.

Matt McCall

Thank great. doing you. I'm

talk about comments the try into let's – I'll mix the to the mix, one Maybe fit well, talk follow-up. about this a and So first.

few little from the forward about mentioned as perspective more perspective, the can quarter, times You've of and you guidance? go bit mix I a guess assumed a in detail look we margin we what's the in from impact the as mix a into

John S. Stroup

more as $XX to we don't concerning where lines also was in that had not we or good were profitable. think there million the a surprised the to lines And that the we to growing mix were by therefore, alarming product grow some a little big plans deal fast, some number as than quarter not a our are So us in within couple it. characterize didn't all $X start things. of quarter saw would trend. a relates the quite bit as and I there's here some profitable areas profitable, that And with It of it were faster more. our weren't of as to of then of And that it. businesses businesses included in I around product think is businesses place where and in somewhere mix million that headwind was anything that as of a it we

full our and I But what we would to believe include the normal forward, how mix. been the with be performing. variation of is the year be going updated quarter guidance So for scenario for most to has business consider it to within well likely the

Matt McCall

Okay.

ask does that make guess, that to we the are quarter I about last So it, more. see. one right. update, the adjustments All is no recognition of I question right information, behind revenue there the sure information and received mention assume is Valley. wanted issues mostly Well, kind in I No that no Grass still of you? I the

Hendrikus Derksen

Yeah, first we $XX we were quarter part during able the made the quarter. million of in a in third recover will recover to We the think and quarter. first million little the in actually great bit second $XX progress remaining we the and

We implemented third and So issue additional close the it, this great expect team out we're in top progress. to quarter. controls, so of made on us the I

Matt McCall

for just now Okay, apologies, new you maybe is and a let Enterprise and view segments hop profitability that little the at it the restated And us The segments we've within the incrementals math, bit. a how of But sneak two bit the were around is quick little look things? we like a in give I Can Industrial XX%. segments, two what okay. fresh of year-over-year, should off. outlook Kevin, simplified before me around down up Industrial was more Enterprise is so looks margins one XX%,

John S. Stroup

around basis. somewhere on be businesses of XX% Yeah, year I both full to so think that these ought a

basis think of And a that in XX%. on the of is will these business Enterprise But to going XX%. be both I to tad consistently the the XX%. come think a of I think be probably businesses Industrial in that ought full I year business around excess short

a situation bit point we as mix, really of about a to ought be first the little of about variable activity to and margin Matt, a of pricing. therefore, sequentially pricing on we the in falling with something quarter. course, that is in to somewhere revenues. on the typically see would you said, bit course, don't underscore, I it businesses, around expect But from Henk from first the it'll We the with through we a Of revenue thinking to then, fall by and And vary quarter were think view our margins very that'll pleased included kind the But those the saw relates you our businesses that QX. lightest, always like vary guidance. as through and to QX nice We've improvement continue. little XX%,

Operator

will Harrison from Our come next with Longbow question go Please Shawn Research. ahead.

Shawn M. Harrison

morning, everybody. Hi,

Hendrikus Derksen

Good morning.

Shawn M. Harrison

as buyback to $XX well to on Just those versus question like going the my going you closer up you as million $X.XX, I acquisition, there mix, debt $X.XX maybe mix the But right, it up as million the three the add more. help Matt's only of the back original quarter. just combination you with $X.XX earnings the obviously, impact me math can in refinancing if to EPS? out maybe is characterized going and If or my hopefully, of benefit, are math it's cost $X John, the guidance, on is looks EPS to to it

Hendrikus Derksen

our outlook, impact mandatory obviously refi, also the had comes of mix our adjust the to Right. it EPS is full for as as repo here, for preferred. the we so We terms But the for in share for the when updated acquisition well there's been the to $X.XX, Shawn. change the accretive. of year, of impact guidance the Yeah, SAM no

of share mandatory conversion should result sort higher preferred. a in updated count, guidance. the your dilutive a include as So, potential And to that bit the is of you a little

that's So effectively. a $X.XX headwind

Shawn M. Harrison

reduction from And then then the them Maybe related on the guess That's about you SAM of management focal company you a of to expect The two-part point XXXX? how facility acquisition, would fantastic, you maybe of follow-up, throughout working expect reports how I'll you some then capital I kind could build inventory the a accretion the Henk. And highlighted calendar your the and year? a I dynamics $XX brief. that throughout short to to know closure. would million improve talk keep

Hendrikus Derksen

So on let question your first me SAM. answer

in grew on the remaining in second and the So third expecting is $XX inventory improvement backlog quarter quarter. roughly quarter, the accretion million. $X.XX, in And $X.XX the of and sequentially a fourth $X.XX significant management, penny we're our

quarter, will and inventory and where have over of year are. we normalized So reduction end typically the at levels our in inventories, the the in line and turnover be expect I a think second third with we

Shawn M. Harrison

Okay. Thank Henk. you,

Hendrikus Derksen

You're welcome.

Operator

come Our from SunTrust. go Stein William ahead. next with Please will question

William Stein

for Thanks Great. taking my questions.

can you hoping talk about First, growth. Enterprise

expect do to we're organic still think to I When in you negative positive? territory. that turn

John S. Stroup

our live up roughly within growth, broadband, and the that year-over-year a encouraged Enterprise share. We saw would were we especially first the in basis enterprise enterprise by on means order what segment, So which on the XA year-over-year grow was flat networking, was call includes and took quarter. networking a CAT backlog think substantially media, which we we business We basis.

to from integration going SAM. a broadband sale also we're the in inventory optimistic EPS point, year, networking modeling were, the little of see that live to in our and a of state will that with of Snell entering of enterprise year our funnel probably backlog see our And have business at So Then look which endure full media we the a large bit come the most low basis Grass Valley on first at this and single-digits. point and we activities, at. business, business flat full going a single-digit Grass of given mid on information reasonably quarter. includes year-over-year couple the think business somewhere and to growth the They of of basis reduction that from did our is in customers also improvement growth then Valley EBITDA our is QX,

William Stein

at of The we helpful. remind more versus pace. say, as and that pretty should we might That's you might continue if authorization year Can let's how continues go a the look? the buyback how us that anticipate and through can. One programmatic, I rapid opportunistic

John S. Stroup

that gave maybe quite it. not authorization all $XXX And yet we have today, million used us So the the $XXX is of as approximately it, board of million. of

the trading And to evaluate price think And way is in so where whenever stock think it of from that that $XX The the intrinsic we the that buyers. we'll discuss continue. authorization board we our the meeting unchanged about we're another of have we're obviously, period below QX million is and substantially in we we a have and is, value board this our company, month. board it later with our in

William Stein

Thanks the quarter for Congrats and good Great. updates. outlook. on the

John S. Stroup

Thank you.

Hendrikus Derksen

William. you, Thank

Operator

will Sherri Deutsche ahead. Our Scribner with next go from question Please Bank. come

Sherri A. Scribner

Hi, thanks.

about are are seeing that organic growth? driving Just that on doing Do an what you Industrial some basis. well of seems and thinking and growth Industrial pretty that like to It expect segment the performing you that specifically outperform well. to be strong generally year segments this seems segment, segment

John S. Stroup

Sherri. was saw more strong We on gas year-over-year it verticals, Yeah, we've in time, so much than seen saw we robust, really a and all basis. some up XX% across growth four oil in especially

look at X% it and on would include almost year-over-year basis. up which a If oil was gas, you process,

at bit segment the up was XX%. was the Maybe four discrete little up surprising, energy of Our X%. was a X%. lowest Transportation

point struggling book capacity is though. growth they to with timing with their mainly I manufacturing Industrial be more at good order orders. this really quarter. my To honest in think with are ability the had that's team than you, We

whether years that we to see capacity that time that of them perform reasons expanding to of down. with that customers, because making with has, is lot project don't we way investment a in And the rate that funnel year. If in hear, everything ago it predicted spending an some we're the it appropriate conversations in would all for happening it's grow we or number automation see and correctly point, continues So economy the I this we see this expect the their thought. throughout this certain at is they're our slowing

Sherri A. Scribner

were the Henk, think talked was then, tax Okay. more Great. the And and last think rate rate assumptions the you quarter your the does now of too Have right about and number? we I XX% some about to had pessimistic. maybe whether time discussion there seem like tax

Hendrikus Derksen

Well, is very require XX% has here. clarification. initiative. The lot But there's this point, any almost jurisdictional have We're to studying close doesn't it. that We case effectively include at uncertainty our We're of yet. because which legislation it still guided scenario still no it. a elements we rate worst planning update

Sherri A. Scribner

Great. you. Thank

Hendrikus Derksen

Thank you, Sherri.

Operator

move And Chip Please to with we Canaccord. Moore will next go ahead.

Chip Moore

Thanks. Morning.

John S. Stroup

Good morning.

Chip Moore

Good a the that, about investment upturn restructuring the head sort Maybe in you at How point? Valley/SAM? talk payback Thanks. as morning. bit more broadcast do think Grass next for particularly cyclical we about on could we the of into some

John S. Stroup

Sure.

our That integrating planning sales footprint. our we engineering our marketing and as as us and to would So, organizations said harmonizing million our in businesses. we're remarks, well the currently manufacturing integrating invest as prepared and SAM $XX in integration of Grass include and Valley

also think capital at about ahead the expect expect And business be would quarters. roughly quarters, return that We four of we to typically approximately on at X% time the we we think would where is you acquired of breakeven can we four are. in it. through commented invested typically achieve to I a which as the next XX% SAM of

So that would investment the as to $XXX take that return will $XX you give if quick see to would return that on a on restructuring the XX% compare investment, million investment. numerator the and be you you your expect math million that

Chip Moore

guys. helpful. That's it. Thanks, Got

John S. Stroup

welcome. You're

Hendrikus Derksen

you. Thank

Operator

Delaney Sachs. go ahead. next from with Mark Goldman come Our Please will question

Mark Delaney

taking morning. Thanks good for questions. Yes, the

First hoping seen on in question, detail for was had Enterprise. company more the I some improved pricing the trends

America Enterprise mixed raise some price to in internationally. talked competitors your there success of I One think and were about but able region in not maybe cabling North

could at positive do stand or are be your potentially regional nicely attribute to play? your does comment exposure and that other that there So factors just out you

John S. Stroup

have Well, they isolated relatively we've America been in have internationally. in quite the issue been to been than our products. networking pricing And had North they've enterprise an struggles of frankly, more

costs in input and and We quarter, accounting generally are increase see half about not input we except began We of of some think first and were sure as to is. successful our delay the recognition improve we on end generally cost beginning were back their the It going North input I'm quarter competitors Enterprise just the year, do passing towards might within of in within system income some the fact whose fourth so statement. So, we last the for might successful America of doing the Industrial segment. that in why up. be in that have costs that

reasons delayed. why one So they the maybe that's of

have the some of competitors year strong. But may last targets. end we trying year it in had volume trying the think that quarter, and inflation partners input our is were not felt were as some by were these way, needed costs people they Sales to on greater at I hit was And to certainly they to focused dealt of end competition copper. the real that like and isolated recognition by first by to our be with. channel the there

see focus team our intact that we that, as it did we're inflation but appropriately, so seeing making of improve. a materials, our compounds, other margins we're vigilant stay Sometimes pricing taking on in so and certain transportation, and we're we care that

Mark Delaney

fiber organically you broadband a question know about about if Okay. how That's helpful. thinking that's exposure updates historically to is the to your I business, Thank for more And inorganically? Curious, us either or increasing any on been piece copper. follow-up you. Belden tied of have for

John S. Stroup

investments been number around innovate a has strong investing been our that in has a the like continuously and customer of within team and and been fiber ask our that. expand considerable inorganic have amount capabilities improving capabilities. we've with leading made. the responsive We they a to feel broadband and we to This segment, so we've organically both position MSOs us and increasing our our Yeah, very world small

So we continue expect think broadband think remain globally you to I investments. positioned should that exceptionally will bullish subscriber growth very make around there. and we on those well We we're

Operator

question go Noelle next come Stifel. with will from Please ahead. Dilts Our

Noelle Christine Dilts

morning. good guys, Hi,

John S. Stroup

Noelle. Hi,

Noelle Christine Dilts

that expand customers a little and new of some already about had of some your issues, Can moving on broadcast asked. on you to platforms just a first, there seeing you made direct-to-consumer I have comment if But how expectations bit you're connectivity forward? Hi. combat kind what entrants. these evolves so and investing in sorry, been

John S. Stroup

Sure.

what So models. that of from significant a going own of broadcast America customers is hear budget into our we the their capital North larger amount consistently their direct-to-consumer is creation

it carefully think a that's also as America us important IP phenomenon. shipments, we bit managing number is are the obvious quarter, that of for making capital relates showed a direct-to-consumer pressure they're investments. it's these think create also to it adoption improvement to first most seeing and direct-to-consumer with ESPN, IP known Disney's although making maybe best to still NBC our the going ABC, you in the investing And with but the up most numbers as their capital note they're that all and So us. to with a it what nascent North And it models. investments they record how that relates budgets in in to our of relatively customers I continuously we're little or also It's see allocate CBS, mainly

it within As you look eye our to North close business, in than more in we're very on continues America. orders it our far does media be that. international And markets stable keeping our a at growth

Noelle Christine Dilts

investments the any drive could quarters? growth an you've kind initiatives then organic to you to on kind And making, India over facility, other have here of internal help more that us on update next the you going of few been of the some Great. meaningful and give

John S. Stroup

Sure.

of is expected online. capacity quarter they this part there year. demand So to being making the be brought of in progress advance in in The of and that the manufacturing online facility create third to team India early is the continue good

So model their, they basically – there. quarter it's as We to their well The from see in market a the on we a great the nice as team what progress I cloud. about Tripwire call SaaS that. cloud very fourth made feel in has continue had win good acceptance and the

high-speed continue make to business the center data investments market. in We our within

the the of boxes. but I benefiting say course industrial industrial growth out I/O year. think connectivity of our tailwinds I team market in So investments is business in investments in XXXX, to from, networking business including that think Industrial I'd also because that growth is going and pronounced more our through be they're play that organic to making in going the organic those are our

made I we've up So pleased I'm show and think the will with very the progress year. it throughout

Noelle Christine Dilts

tell incorporating quick euro what of assumptions? in us you're the terms but And can I assumptions housekeeping you currency question, in Okay. copper guess one and then particular,

Hendrikus Derksen

for about Yes, copper, round we over bit euro, and it's so $X.XX. for the $X a per pound are at little

Noelle Christine Dilts

Perfect. Thank you.

Operator

ahead. our We Guggenheim from Cihra Please with next Rob question will take go Partners.

Robert Cihra

the business into ROI million wondering is the Valley. but know business, is can are I divest on have drivers $XXX business you when related mean, within focus SAM revenue other a growth ROI? talked adds focus side then that the what's get in compelling what the is really or the given or rationale I a your on a the you very side thanks way, is beyond acquisition thing payback, rationale now the there? Grass guess think more the that I a XXXX, it was that beyond the Thanks. much. MCS ROI in is on to And strategic a you businesses, about you you with sort I Hi, that of or the of growth if it divested just reverse

John S. Stroup

of view, we the acquisition the an relates ROIC SAM justice but from it so haven't to of is of done obviously business. the it compelling quality probably Yeah, as point

be outside also our continue more find in to attractive especially complementary to exposure of So very complementary a and is business have to to first Valley. live business we the North America. on. media, They switchers They're mix line They of the in more lot have all, a market far which their attractive. that most of is own Grass geographic and end strong we bullish

whether felt like fit. we of a better couple that a seen over this business great the market last And businesses of two the think so growth has It's very customers congratulating the for in acquisition and that at opportunity on us had an April SAM we confirmed we them. an the and the in but also NAB Las and a goals. think thanking a look unique – important because consistently it the were us really where growth combination than we from was years. show think us point business divestitures, at acquisition the point to it our about or financial technology very about important contribute from is think of view, not margin a ROIC to is we about going We a view. company of four it's When We to and Vegas is achieving

and margin flow? of helpful that also view, point So in like valuable to us. case better others that's we than a to and view, the get point of capital ROIC view, areas is investment. we of going why use MCS, other that more growth cash on divest that that to reason was business it our felt we it to from the return And of And was point obviously then business we be a in expansion could where concluded decided

simple. not process So portfolio. it's evaluating businesses, company strategic our our that obviously make that it's but on that frequently occasion. important an do we're certain we of all We're a divest of And part elements planning to

Robert Cihra

sense. Makes Thanks. Great.

John S. Stroup

you. Thank

Operator

with Ashwin next our JPMorgan. ahead. Please will take Kesireddy question We from go

Ashwin X. Kesireddy

organic then of XXXX? during terms product of the you taking it the Industrial you you question. about increased network how Solutions investments to areas comment what on upon to for some innovation. And in on performed segment quarter thinking investments? you're and of are hi, any made want Yeah, back on Could and thank for rest solutions focusing touch my the you go in I the the also comments it

John S. Stroup

question? I'm me. second one? – what the was So What the Industrial. sorry I Pardon caught second the was

Ashwin X. Kesireddy

network the now to is part segment, of solutions a which Industrial? Related

John S. Stroup

Okay.

how technology Cyber their It's are So investment worth making the three but their in a that now bringing that top the largest developing bookings Industrial more technology within look also by if our quarter, networks, noting the vertical Tripwire customers how we're markets. the technology industrial investment and networks bringing making that at of non-renewal way the and of our Industrial significant investments to areas securing single are follows. as business. security, for the in area, they're to cloud with contemporary in is you

So we're segment, that to substantial proud very improvement the Industrial which we've of made bringing technology of.

investment achieve out and more the of our working particular wireless to continue substantial our also automation Things, industrial I/O or decentralized a initiatives Germany, are in for in to in a facility routers we're thirdly, then them to boxes Industry industrial X.X in companies investment make on Internet we substantial with in the with commercial applications. technologies our We And of making switches variety our control investments world's largest of in approach automation. help and consistent

I the the would areas are those as three most organic So investments. substantial highlight

Ashwin X. Kesireddy

expectations there performance about and during and network And quarter XXXX? the the solutions for

John S. Stroup

performed about business expected. year in It performed a a On call would say. of expect we business fine full as basis, on would expect year quarter. was full Yeah, sort network solutions, used They I that would so to the that that, what we grow noteworthy to we we basis. not

Ashwin X. Kesireddy

I you. just question. could one If Thank follow-up last

of think recovery been million way I I customers you a in during to that? for too understand call it's think is closely, sign mentioned $X early waiting trying you sales their have manage that to or this about the the about quarter, we do Valley talked but IP budgets segment you Grass

John S. Stroup

I cautious about would be bit little recovery. a calling a

standard a it short But because is that putting seeing expect be close we reason we're are solutions what going us result, the comfortable feel in is basis clearly That's investment customers place be didn't feel year. the coming flat though capital more comfortable or customers exist feel their they going might and very it's our budgets. prudent That to now because there have momentum IP cautious but is for to it's lot is North market keeping change. a think their is think more on mindful would a a optimistic we're XXXX, as of industry this also to throughout we're like America, and of fact year-over-year be lot out probably important though are as a end And to tabs we be that I on and we be globally the an seeing. standard to I lived business to becoming not for about clearly in going what forward. this going us

Ashwin X. Kesireddy

you. Thank

Operator

question George next Please Godfrey our ahead. C.L. go from take will King. with We

George J. Godfrey

you for Thanks and question. my morning. good Thank taking

$XX million the year? is wanted CapEx an you idea What total of the investments Just the CapEx, in the expected the for to acquisition. now get highlighted

Hendrikus Derksen

million. will approximately updated The be $XXX total CapEx SAM you if for

George J. Godfrey

$XXX $XXX now million, $XX it, million $XX an incremental, for $XX million expectation QX, to in million? so million is call the so

Hendrikus Derksen

right. That's

in In a requires prior fact a during investment update conversation, million, total towards little bit SAM, CapEx we SAM of $XX we're of guided the $XX for now company million, in updating for CapEx.

now to close we're $XXX million. So

George J. Godfrey

if close I or here quarter in in revenue out. of Okay. serves, was And the all then you last you. that the pushed close QX? the quarter majority think would memory in Thank Did thought $XX million

Hendrikus Derksen

majority. the Yeah,

So closed $XX $XX QX. out million out of in the million

George J. Godfrey

do you expect And in here quarters? the three $XX remaining million, the next

Hendrikus Derksen

QX. and QX

George J. Godfrey

Thank Okay. you much. very

Hendrikus Derksen

Okay. Thank you.

Operator

Kevin And with no continue this time. Maczka, closing any Please at there questions additional or remarks. are further

Kevin Maczka

for you, Ebony, joining and call. Thank you everyone thank today's Okay.

If you IR reach please any out the to have team questions at here Belden.

investor.relations@belden.com. Our and email Thank have you address day. is great a

Operator

our concludes Thank today. for call you. gentlemen, this Ladies and

for you You the may now Thank disconnect from call. participating.

Belden (BDC) 2 May 182018 Q1 Earnings call transcript