Earnings call transcript Q4 2022

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to this morning's Belden Reports Fourth Quarter and Full Year 2022 Results Conference Call. [Operator Instructions]

I would now like to turn the conference over to Aaron Reddington, Vice President, Investor Relations. Please go ahead, sir.

Aaron Reddington

Jess. you, Thank and Belden's everyone for us joining Good quarter thank XXXX today's fourth earnings for morning you conference call. are President Parks. With and today Belden's CEO and me Roel Senior Vice and Jeremy CFO, President Vestjens; then Roel will overview followed financial provide strategic provide by our Q&A. detailed of operating Jeremy business, review of a and will our a and results,

of on We these presentation, presentation that slide have prepared issued our a currently release, are earnings remarks press release will prepared earlier this reference available this and investor.belden.com. The transcript morning, and we at call. we online

X Slide to in Turning the presentation.

certain During statements. this call, management will make forward-looking

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

today’s website associated GAAP In information the of presentation during non-GAAP and we closely management Regulation contain or the Relations most to adjusted financial accordance of section non-GAAP a our Additionally, Investor information. the financial communicate. reconciliation our will G, call financial reference with the to information appendix

turn call and will I our Vestjens. President Roel CEO the now over to

Roel Vestjens

you, to Thank the Aaron, Belden team. welcome and

a adjusted I'll today. As referring results be to reminder,

please a the achieved for we accomplishments summary XXXX. to turn major in Slide of Now X

First, with another outstanding quarter. and revenues that expectations delivered for XXth straight total exceeded the we EPS quarter,

with we environment and while XXXX, global supporting the I challenging year solutions. revenues full of $X.X their record innovative strong customers billion for teams the For like to over a navigating record and complex of $X.XX. of our EPS delivered would thank execution our in needs

leverage XX.X%, organic record basis our in expanded and for also for up segments. Revenues EPS, by increased of to by growth. year, organically, driven points EBITDA organic the year revenues XX margins strong the our both double-digit on XX% On top with growth we

in a broad-based as design XXXX to the solutions. a in partner and supplier value-added strength we continue across transition of businesses infrastructure implementation products trusted to network of from was Our our

is progress, excited very are our strong about performance. our reflected which in We financial

value. disciplined balanced capital shareholder drive Second, to to long-term continues allocation be strategy and our

generated the $XXX with and Xx cash of while flow level and of XXXX, declined X.Xx EBITDA execute plans, grew net quarter, M&A, X.Xx to prior the million at net end flexibility free fourth from in significant we shareholders, As end to returning leverage opportunities, down the while provides year. This below strategic capital of organic net at pursuing leverage our target growth all of our staying leverage. of us to the

Third, towards capital we high opportunities. on remain deploying return focused

Our which opportunities, through repurchase capital returning include to capabilities, three new finally repurchased M&A $XXX program, share investments XXXX. X.X top and which priorities on XXXX, innovation selling our in shareholders in we million and under of shares solution product bolt our completed strategic in for million we

performance of at strong XXXX that that goal. June, In to am with and year. concluded summary, we EPS this our record our we by internal a in are ahead I forth XXXX, $X another Fourth of our for which Day Belden set another report excellent finally, quarter last Investor happy target plan XXXX. in was reaching

in I turn of in fiber with how is provide action around example please X, innovation strategy to our Slide wins. details and product to Now customer leading exciting will an

Broadband & have fiber years, solution XG the our we optic building. technology Over invested in and strategically in business,

customers' reducing operating and Our expenditures our on solutions focus

time. deployment

within Over grown Broadband we the fiber have our last three business XG years, & meaningfully.

three-year increased fiber XXXX a with revenues of organic in Our CAGR revenue specific organically XX% XX%.

of ensure XX% is made total the for investments success to now the Broadband of XXXX and accounts of markets XG growth XX% have represented fiber XXXX as of we the Belden highlights total. Such fiber the solutions. & right with in the business, in industry-leading Further

provide for approximately in company our we large four solutions the the fourth of the of approximately based cabinets The a over a quarter received business happy million the win next On with I Netherlands. telecommunications in years. will from am $XX commitment that that note, cabinet to fiber total report meaningful X,XXX a fiber

and fiber critical in the reducing we Our business to solution, configure for time, the deployment and ahead. the easy well both single the commitment largest made an decision growth fiber our customers. marketplace have points offer as highlights future cabinets cost as This for is opportunity our

let and forward reviewing Looking trends a our benefiting our favorable Investor multiple see we many Day minute market. in recent themes. key of the Broadband I outlined XG these spend but me

We Belden. a investment United States First, $XX broadband major billion federal totaling has in will recently in focus legislation. become which provide growth with opportunities broadband rural meaningful for see investments passed the combined meaningful

the reinvesting MSOs in meet are preserve the base bandwidth to amongst to the customer networks increasing current Second, demand, competition. increased

positions of upgrade to these solutions Our support cycles. multiyear portfolio us

next third, wireless include the five dominate will small plus upgrades cell and carrier will macro And major years. This XG cell construction. over spend new rollouts

need as XG As fiber multiple in cell ways. will sites as participate power, this to allow both well Belden

to We high-speed customers summarize, trends allow to fiber fiber and So fiber networks. offer ever-increasing the and We favorable strong products. see from broadband quickly we which continue network our investments long-term solutions see the upgrade by for reliably. demand to connectivity demand resulting operators connections install easy-to-use driven for to required

ask to our additional provide now insight performance. Jeremy financial fourth into year full will quarter I and

Jeremy Parks

Roel. you, Thank

and year, results by flow our sheet balance I of will quarter discussion comments for with segment performance. the the full a start my results a fourth of cash followed and and review

I referencing reminder, today. results adjusted will a As be

$XXX and X $XXX quarter quarter our to increasing again in this organically. quarter fourth had please Fourth We to Automation impressive XX% increased presentation XX% revenue year-over-year million. growth X% meaningful in quarter. results. Now Industrial for organically our revenues We review range exceeding a Slide margin our with $XXX expansion million, and another of delivered turn to of guidance

to demand for customers shortages, as of drivers automation solutions industrial production. We continue labor compelling requirements, to reshoring respond capacity and see longer-term

year-over-year Enterprise digit Solutions growth and revenue Smart organic and an XG Buildings. increased mid-single both basis, solid X% in with Broadband on

with As expected, up year in over $XXX which we was ended the million year-over-year. XX% backlog

to book-to-bill X.XX with was of which a backlog we performance to our from decrease modestly segments. supply book From a the both down the prior with perspective, in quarter. we to with ended more ended X.XX year quarter chain We bill XXXX As level. expect similar a of a stabilize, full in normalized X.XX, continues the to

and Gross increasing profit XXX quarter Gross the million. profit XX.X% ago points, EBITDA the impact to in benefited year. earlier better a compared period normal leverage product basis of period. price in XX.X% XX.X%, in $XXX margins points levels volume in combined year-over-year than XX to basis the from on margins XX.X%. year-ago quarter the robust increased margins higher from year the the increases XX% were expanded enacted to fourth EBITDA mix in with

up quarter prior-year the of from EPS period. to $X.XX, in $XX million year-over-year million, compared our to period XX% range $X.XX $X.XX increased the year-ago Net and income in guidance in exceeded the And was XX% $X.XX. $XX to

double turn increased XXXX. record the to a review grew X $X.X highlight Both please segments full XX% margins. EPS to both same organically, we Now billion. of quickly and year revenues the year and Belden versus at prior the in Slide record time a our XXXX performance, for results. revenues record digits achieved organically and To expanded XX%

and organically. with both strong growing revenue Industrial organically XX% Our Solutions was Solutions XX% Enterprise Automation segments growing in performance

in XX%. early basis debt in points, period XX% from quarter completed $XX foreign favorable for $XXX was to prior year, to year, that the Net million down expanded the from well XX.X% exchange interest the benefiting margins nearly increased the rates. repayment the in $XX expense EBITDA EBITDA XX as we million. first million year-ago from as

expect At full current net be year foreign to exchange the we million for at XXXX. expense flat rates, interest approximately $XX

XXXX. XX% was in effective rate Our tax

year effective an rate robust We were expect and for compared margin the XX% once the tax to EPS We XXXX. full $X.XX, deliver for growth expansion of a very again. to the $X.XX ago in to year record increased pleased year XX% approximately such period.

the now a business in to of segment begin Automation results. Solutions review our presentation will Turning our Slide segment. X with Industrial I for

secure industrial data our solutions video, and transmit customers to reminder, a allow and environments. industrial harsh in As audio,

include key transit. manufacturing, energy, Our mass process markets discrete facilities, and

billion, Automation the Industrial in segment prior billion generated of $X.X XX% The from $X.X increasing year. Solutions revenues

of basis, primary growth Industrial increased on our previously, mentioned verticals. organic market revenues As an double-digit in Automation with each XX%

EBITDA leverage and favorable segment volume for compared XXX margins in points year, the the prior increasing year XX.X%, on to XX.X% pricing. due growth operating solid Automation Industrial were basis to

Turning Enterprise segment. now our to

customers to across and complex transmit networks. audio, secure and allow data video, solutions enterprise enterprise Our

broadband XX% from Our increasing and $X.X buildings. smart the $X.X include XG and Enterprise key markets revenues year. billion billion, of The in prior Solutions generated segment

As segment mentioned previously, revenues organically. increased XX%

on strong connectivity Revenues execution in XX% and our products. increased solid fiber to an Broadband organic XG demand basis due for and

we this upgrades. on increased network for Smart trends impacts for an strong, the the in government of As business remain are XX% encouraged market Buildings early the and Roel by basis. Revenues organic funding mentioned,

data and the on particularly to growth performance. verticals, governments, Our solid continued focus centers, revenue contributed healthcare,

one-time EBITDA points quarter prior XX.X%, to higher of encouraged bad the being margins increase expense expedite XX by of in segment with XX.X% fourth compared am were saw margins Solutions pricing, volumes how fourth and the compared Enterprise offset in favorable and debt year. to very That benefits with in XX.X% segment quarter, on We cost said, I the the temporary quarter. prior Finally, EBITDA ended the a first year year up to basis the the in leverage XX.X% materials a period.

to X highlights. If for Slide you our turn sheet will please balance

Days and in fourth fourth the cash XX $XXX and quarter. the X.Xx, was million outstanding Inventory sales compared the cash and in prior were prior in the XXXX. million quarter to days, million turns year X.Xx to balance quarter. the of the compared X.Xx of end the quarter Our XX XX $XXX compared the in at quarter of equivalents to and prior days third year prior in days $XXX in

debt was quarter, ago. financial X.Xx quarter the fourth in X.Xx at to Our and year of third a end the EBITDA leverage to net compared the X.Xx

As net approximately we leverage to of intend maintain going our Investor XXXX in forward. Day, X.Xx communicated we

an year, shares X.X per approximately For of average we share. the for million, price at full repurchased $XXX $XX million

emphasizing our additional priorities will considering and allocation capital growth forward be also share while initiatives balanced, organic M&A repurchases. strategic Going

Please was up flow year. turn $XXX $XX million, from million up Capital for to were X few prior prior the $XX million a from compared Slide quarter operations flow fourth cash the Total cash the expenditures year. highlights. the to quarter, in XX% from for

quarter, of the the down $XXX in prior achieved we flow fourth For year. free million $XXX from cash million,

note Valley quarter sale reminder, facility fourth free a sale the a XXXX, receivable for $XX as from leaseback of combined benefit well related million the a the Germany. transaction of divestiture to flow in a Grass our as realized in As a cash

from For free prior year. up the $XXX year, flow million in of achieved cash full the million, we $XXX

to That for concludes the the back President our CEO, outlook. would like my prepared and now call remarks. to I Roel turn Vestjens,

Roel Vestjens

Jeremy. you, Thank

Slide outlook. for Please turn to XX our

enter excess of our in deliver growth remain XXXX, conditions as While portfolio macro GDP. organic uncertain we to designed is

our are We generate sustainable, strategy in confident ability execute shareholder our and value. to long-term

trends secular bandwidth all that lengthy long-term Our earnings investment growth. usage, key network produce Investments aligns and have transformed Belden portfolio increased to reshoring, automation, for well increasing cycles. connectivity, Belden with in sustainable upgrades bode

expect This the mid high-single For of when growing Automation and the to revenues billion in we and mid-single organic growing consolidated full see And represents growth to $X.XX $X.XX organically we XXXX, organically X%. digits. billion. of we deeper, Broadband in X% XG Industrial dig to digits, year the

expectations. lower In anticipate Buildings slightly in compared growth. long-term uncertainty impacted organic Smart We see more Smart of flat being we XXXX year currently expecting growth recent macro and are a Buildings, to by our

view of the being remains market Smart unchanged. Now long-term our that Buildings said,

XXXX year to X%. representing to EPS We $X.XX be approximately growth X% expect full of $X, EPS to

to with quarter, For X% we expect organic million the $XXX million, of growth between first $XXX to X%. revenues

We quarter $X.XX. expect to to first $X.XX EPS be

creation quick last XXXX three years. Now progress reflection and we XX Slide and on have please value review framework turn the in over our to made to the a

would First, to framework. I reiterate value like creation our

XXXX and healthy EPS $X by drive more of cash to excess disciplined GDP, to capital is robust growth commitment flow, through allocation. or in Our organic margins,

$X.XX set XXXX goal When initial substantially we Investor $X we previously, actual of EPS June, $X.XX. our goal targeting of Day and as were we with last beat discussed our the at EPS

EPS new achieve well of target. our our $X.XX to ahead range for we $X with XXXX forward, guidance plans to are internal Looking XXXX at

has over team to at the moment made I and like last recognize progress three Next, would transforming significant take years. the our Belden a

I was to in Belden’s Belden proud XXXX, since, of and efforts on for If CEO incredibly we interesting very team what future. am reflecting appointed of the I accomplished took the a we time sure. reshape of recall And you May have

we to First, of required divest growing that amounts excessive the capital. slow businesses decision made

balance our Second, core reduce growth And outcomes reshaped businesses third, sheet attractive been financial efforts the increase with and our of flexibility. towards we investments The our our refocused impressive. dynamics. significantly to we have leverage

we X%, XX.X% of compared revenue On XXXX, XX%, in X.X% up with we a achieved capital basis CAGR grown pro-forma XXX of and basis of CAGR a points. return considerably, an an in invested to XXXX have EPS organic on

leverage the XXXX. and Finally, X.Xx our decreased sheet balance we also net of to at reshaped end the considerably

innovation provides in Our meaningful markets to We streamlined invest accordingly. product with capitalize on trends. continue business growth to sales solution-based a key and our focus the long-term on and see framework opportunity will

to From I the teams work inflationary Now we have supply hard from and to to conclude, years. the operating environment our would pressures, challenges business successfully as encountered recognize record results. like few the these disruptions navigated past significant chain delivered global

That open prepared concludes please the questions. our remarks. Jess, to call

Operator

Garner [Operator Our The with Instructions] Company. Reuben question first comes Benchmark from

open. is ahead. go line Please Your

Reuben Garner

Thanks, good morning, congrats on everyone, another and strong quarter.

Roel Vestjens

Reuben. you, Thank

Reuben Garner

in your how the year, economic your just outlook that assumptions know this detail from for underlying is would if range. be insulate to just I us a sensitive kind but that slowdown you guess you in I guess if give [technical in talk start difficulty] maybe embedded I could business about economy. could things have -- of more little some that, great. maybe the going can you you And there

Roel Vestjens

Yes.

First of the Reuben. appreciate words all, nice I

we to the future predict year it's recognize same for humble in. even that us to live enough Secondly, we within very are the hard that

we and the feel our from the or that prevail. good based on feel that macro we will strong the favor trends and businesses we our -- think So secular guidance good

is So that automation factories. we're seeing the that made there case we that trends is we're only strong activities is will for capital cost need is higher that of to will a start from if that starting industrial hence that be continue. to going automation There and continue, we're deglobalization increase at with seeing a reshoring made to the already to benefit already be case

of to of macroeconomic is because or tied XG State and well, rates conditions will required, higher stimulus. and really because tremendous that United business stimulus I Broadband is that government In think the the prevail not this interest decided

year, And a QX but growth in we as a we bit Strong very centers, little be predicted as in be care this tougher we re-lowered very, double verticals tougher that government health will that XXXX. this little to expectations even hence high-growth the flat. recognize, smart business well buildings will the we year did facilities, bit in data in and digits and

Reuben Garner

what XG, it the federal kind Is there gives the referenced Broadband way you benefit way kind to -- kind getting any know of what $XX of to the any the you you're and and of I billion visibility next over from few reference, in of stimulus couple years.

Roel Vestjens

dollars, It's the the extent not, obviously control what hard to express that seeing in it we're fourth terms distributed, because which pace quarter saw we're now we deployments the funds being in of we we're and seeing it at to are cannot but occurring.

that prepared network upgrades. broad we massive we amount plus in we ways a expected our from segment take we So it's as since to years obviously five multiple that such highlighted in benefit a portfolio within have business remarks. within we expect, And that product

terms in that dollar benefit. will quantify significantly to of we hard it's So terms, but

Reuben Garner

Okay. one to sneak more could. I I'm if in, going

outlook, for your referenced the outlook I in in to industry the something in backlog things you've normalizing margin margin normalize it's you you think about pricing accounted as supply there this had risk that year. the is for you for referenced and just something any your Is products, easier in guys get chain to you normalizing. that So, that and

Roel Vestjens

to to We say of on These similar will we significant our inflationary then increase -- pressures pretty it's price it's in these XXXX. XXXX for been felt. we to successful expectations quite will, expect adjust. don't obviously fair think further passing pricing I that We've prices Our exit they rate if increases.

pointed last throughout two years. we the As out

then to we've as worried significantly, in drop it. costs. adjust pricing to because were been as passing it and we well, perceive we our not expectations prices If honest input were when always and setting about straight what comes I'm So to on

Reuben Garner

Great, this thanks. guys. Congrats again good year, luck and

Roel Vestjens

Thank it. Appreciate you.

Operator

comes Our next question with Dankert Loop from Chris Capital.

ahead. line open. Your Please go is

Chris Dankert

everyone. XXXX a congrats on and Hi, good morning great

Roel Vestjens

Thank you.

Chris Dankert

strong caught little eye modest a if growth the that is I I guess my kind have outlook kind and more think in the XG 'XX, bit though most I you've Broadband the be I that assumed, of would for of at than assumption look of digging then very assumption for I going organic XXXX. is money and fact just comp stimulus given hill some a it flowing that through hey, decline got to heck an an we've got guess Is probably the high more in fully of there.

in Just broadband help for understand, organic me how assumption digit just conservative size that mid-single us. or

Roel Vestjens

like that to two I Yes, guess, comments I'd make. there's,

understand feel please to guidance But is expect to issued. business First, about applies that we obviously States. stimulus the we confident it. business because guidance not obviously have don't secondly, a that that's miss global the our otherwise We United would and the

So themselves, down. growth parts macro how on of that might manifest might in other the conditions that depending -- slow be world

in it at was out thought to mid-single we this So spell time prudent point digits.

Chris Dankert

makes impact having been from quarter That you for materials? that the what and it. complete Got assuming of raw gross was again, Maybe kind XXXX just in what impact we've of highlight could materials of and sense. kind And copper. raw on some then noise and you're margin the

Jeremy Parks

Yes.

So XXXX I'll start with the Chris. assumption,

we're other of with reductions a change much. not So compounds copper inflation they very offset expecting in year-over-year any in logistics. by A And of little not net on out respect some in cost bit and sort to to resins, materials, material basis.

very everything of sort nets to material So impact. out not a

was little up in Hope, were maybe helpful. were actually roughly terms QX, ballpark a $XX that's bit copper of And or million kind In it $XX up basis. million. year-over-year other Call a materials at of year-over-year down the a basis. same the

Chris Dankert

Thanks queue. so very hop guess there it guys. I helpful. much in That's I'll and back leave

Roel Vestjens

Thank you, Chris.

Operator

to with will We go next Jefferies. Instructions] Kelley David [Operator

open. go Please Your line is ahead.

David Kelley

channel heard taking hoping from Thanks seeing suppliers that exposure. about for are some We've I pockets some good ask to my questions. guys. of destocking. other Hi, broadly was morning,

So you distribution you're about how about your XXXX? thinking talk channel demand could into and from partners visibility

Roel Vestjens

sure. Yes,

the appreciate I So question.

good from have we visibility that important partners. built information up levels So the channel of sale inventory our and received visibility and we decades, and we partners. pretty channel continuously improved our Throughout that

much at to inventory They're have, the appropriate channel are they they That's are turns need our we levels or right? we and So that them how whether pretty they're unchanged. not partners, be. the where measure unchanged

bit they So massive sales about at worried inventory. have obviously comes up, down, goes more little are When seen carry bonus little destocking then not when a channel business inventory. it -- nor a our But they carry bit we less partners.

David Kelley

That's of thinking it. light cash maybe got shifting through we about should XXXX? one-off Can free any here? Okay, just And helpful. cash of target in cumulative. And talk conversion be into set gears $X the about the XXXX are billion if there up modeling you factors kind free

Jeremy Parks

This Hi, Jeremy. David. Yes. is

So would we'll year in And years. few had think about to in of terms net pretty to a I are expect I income, good in next I probably be XXXX XXX%. the to over gradually improve closer XX% think. that we we conversion XXXX,

is means to of in which in growth, are first a invest depreciation. So we organic spending our bit ahead CapEx plan

plan and would next XX% ramping then of XXXX conversion in maybe I So years. up couple over the

David Kelley

guys. Thanks perfect. Okay, along. will pass I

Jeremy Parks

you. Thank

Roel Vestjens

Thank you.

Operator

Dilts comes Our Noelle with next from question Stifel.

Your go ahead. open. line Please is

Noelle Dilts

could about the how And for various solutions? energy, process level level within you. you're growth congrats or into software any thinking notable that, dig you assumptions the you're your etcetera? Hi, I touch and how on in maybe for XXXX, the discrete about deeper could XXXX. go strong outliers was Thank growth growth terms you a for thanks. hoping outlook of on thinking And again data your verticals, some -- industrial specifically can of then just

Roel Vestjens

for Noelle. for you, you Thank words. thank you the kind Thank question and the

each are industrial the assumptions but that the differ much in don't from positive space other, outliers So discrete. automation solution per vertical

food we We and expect see above discrete So within see automation growth beverage. -- we average that energy. and

the we we feel very, there. customers over energy vertical that the for with see as world solutions "crisis", provide we good energy about Our very our transition this and the current all

space. are positive industrial that automation those in So see even outliers the we

far as that know. you software solution only is as launched And as we concerned, June the in

first last our I order called think call. out we

because a out it's for a traction kind solution. industrial might we very point But be to talk feel it customers. of it's about interesting builders, -- machine feel that of we our standalone so And good product, is interest. growth the pointless market We don't level we the base It about have. don't So about product the small. that as of our good that percentage solution to for part enables we typically a extremely

Noelle Dilts

Great.

of line Okay, enterprise of then they're rural into mean, on, broadband, trends in next kind and anything I versus great. going to of in you're -- thinking And about the you from in see play? on XG. I cable at -- year are much seeing mix been guess how of what XG, you any I home? solutions questioning cadence and coming side. guess, I And carriers think then the maybe of notable you're outside kind telcos thoughts is the the spending that how when of inside Thanks. any I terms spend guess look how much the year? home versus similar terms on there's trends a next I guess, And

Roel Vestjens

right. All

conditions So growth will little of the to come business will lion's be our modest. still tied think the from MSOs. is in it So a from And that all our a I is element globally, do first to obviously bit that it's little macro And of very The bit share hard growth XG spend, our and predict. of that, on MSOs assumptions, from international. our growth

So that's one.

Two that expand is telcos we Yes, offerings. cable versus telcos. broadband see their

-- as for doesn't sides. we play on know, matter really us. and both you So It

we So we So see on gaining with that -- traction voice traction gaining MSOs solutions, them offering we sides. play both see and yes, right? the

great is for us. that So

we the the outside inside increase home. our will that expectation As outside, as is trend versus of that -- far further

XXXX. expect of XX% So and we outside of XX%, in to go with XX% ended home in roughly our revenue XXXX, we the that to

Noelle Dilts

Great. Okay.

Okay. Thank you.

Operator

with comes next from Our question Sachs. Goldman Delaney Mark

go Please Your line open. is ahead.

Mark Delaney

and for let me strong have congratulations taking the questions my on morning. XXXX. you results Good Thank for my

Roel Vestjens

Mark. Thank you,

Mark Delaney

on is question First pricing.

XXXX quarter. raising I understood the of at though in pricing the assumption course the stays is correctly, that the believe were seen in over fourth if that I price levels the XXXX. So company was

So I in year-over-year to relative 'XX if current might there in be at benefit total. pricing holds think would levels, some XXXX

year correctly, So benefit maybe help us I'm year understand through if given there much this pricing just full that be understanding may how that a dynamic? of flow

Roel Vestjens

Since we've the -- Since increases second modest. of modest. appreciate I the the the the of question, growth price guided were that in percent. our element The launched Mark. pricing organic year very It's half less a relatively for XXXX is than

Mark Delaney

Got that. for question you the clarifying it. better and on That's helpful. understanding my dynamics. second backlog was Thank bookings And

You mentioned strong the very backlog.

this I quite is covers we've up of so there in a XX% advance. customers need think could And given order come similar much you and other in to backlog lot down far bookings said companies don't the how seen year-on-year. to space,

targets though back When for But get bookings organic what's new book-to-bill the growth is to question think to you as to would we're necessary 'XX? get above about do terms thinking the X? have of in

Jeremy Parks

Yes.

So expectation in below Mark, our XXXX that book-to-bill stays X. is

As where answer and to quarter in expectation probably it couple next doesn't the and worse X.XX from gradually improves was teams at that the heard our what absolute we've my where need book-to-bill we kind far but of orders, as lowest that's a I the of question. is difficult be, to amount what like it and the expectation fourth good That's any think of over quarters. is than get

Mark Delaney

you. Thank

Operator

with to go Stein We'll Truist William Securities. next

go ahead. Your open. is line Please

William Stein

pretty taking to outlook my on I'm some good and on Congrats focus Great. results things. remarkable I the would hoping term longer question. for Thanks say.

Someone asked about software. the

but influencing another I'm can innovation motion, generally? solution update and trends I think that customer to is important how your hoping your you us that's selling open. on demand you've an one, that's centers begun selling

Roel Vestjens

I appreciate that with happy very much results. we're very the Yes, question.

the So fully Clara, be visiting just one We a Santa in first Shanghai quick I'm we opened the second reminder, Stuttgart, operational, third this quarter. one, the while -- end in will one planning the of California. Germany in which we opened in on

Illinois in open later year will India. thereafter, this we and soon one fourth Bangalore, on Chicago, And in the

have The customer been center. from that feedback the stem are of the that opportunities And innovation at positive funnel a has part we our significant sales from interaction extremely the customer our in customers. the with

So easy talking supplier this transition a about that transition. provider solutions we've component not an is from to been

we in salespeople, reference to I et our cetera. cetera, past, think solutions the having to having compensation et for change hire consultants, plans

including confidence solutions have capabilities customers indeed at the technical we're innovation those with able that that those But our and provide obviously, environment centers. we're you provide that able a to to demonstrate have to

I happier with we're the to not expanding could communicated. So we've have and we that five the rapidly therefore be them initial results

William Stein

about one One other Great. Thank allocation. I you. is guess capital

possibility QX. talked few organic larger months? that the also the with like You've in buybacks on over macro. this little interpret greater a be acquisition as there about coming a the just I'm sounds believe is prioritize buybacks. sounding focus for that M&A overreading, like they trying overinterpreting growth to relative both and Or about would Should an incrementally bit positive data? perhaps decelerated to we potential I square especially outlook, that the what in

Jeremy Parks

Yes, into too much it, I wouldn't Will. read

of we is that a quite the capital. bit deployed XXXX, So truth in

So shares we back bought million €XXX in debt. companies. €XXX we and off three remember, million in We paid bought

quite of bit we So a capital deployed XXXX. in had

large organic As we Roel XXXX share acquisitions, mentioned number anything going options growth, in our then are have in bolt-on and in acquisitions, be and focus two, number buybacks. of is anything Number investing would three, be in one. remarks, significant, his well investing to prepared it strategic unlikely a but really and lot positioned

William Stein

congrats and Thanks again. Great.

Roel Vestjens

Appreciate it. Sure.

Operator

no closing to other turn comments. now holding, And the with back Mr. questions conference additional or I'll Reddington any for

Aaron Reddington

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

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

much. address email Our is good a Thank investor.relations@belden.com. very Have day. you

Operator

that conference. today's conclude will your participation. you Ladies and thank for We gentlemen,

time. may at disconnect You this

Belden (BDC) 8 Feb 232022 Q4 Earnings call transcript