Belden Announces Third Quarter 2009 Results
More News related to BDC
- Belden (BDC) Declares $0.05 Quarterly Dividend; 0.8% Yield
- Belden Declares Regular Quarterly Dividend
- WLAN Security With No Compromise: AirTight and Trapeze Announce Strategic Partnership
- Trapeze Networks Announces Condition Monitoring In Newbury ActiveAsset Solution
- Belden Expands Its Coverage of Electrical Distribution by Adding Omni Cable as a Master Redistributor
ST. LOUIS, Oct. 28 /PRNewswire-FirstCall/ -- Belden (NYSE: BDC), a leader in the design, manufacture, and marketing of signal transmission solutions for industrial automation, data networking, and a wide range of specialty electronics markets, today announced results of its 2009 fiscal third quarter.
Third Quarter 2009 Results
The Company reported third quarter 2009 revenue of $355.2 million and operating income of $18.4 million, compared to revenue and operating income of $520.5 million and $47.7 million in the third quarter of 2008, respectively. The Company reported a net loss of $7.5 million, or ($0.16) per diluted share, down from net income of $31.5 million, or $0.67 per diluted share, in the prior year period. Revenue in the most recent quarter included $7.7 million of unfavorable currency translation as compared to the prior year third quarter. Cash flow from operations was $50.6 million during the quarter, and net of capital expenditures was $42.8 million.
During the quarter, Belden recorded pre-tax operating charges for contract termination costs of $2.2 million, severance and employee relocation costs of $1.5 million, equipment relocation costs of $0.7 million, and other costs of $4.4 million associated with the Company's previously announced global restructuring plan.
In the third quarter of 2008, the Company incurred pre-tax operating charges of $8.4 million for revenue deferrals, purchase accounting effects for acquisitions, asset impairment and severance costs.
Adjusted for these items, operating income in the third quarter of 2009 was $27.2 million, or 7.7 percent of revenue, compared to $56.1 million or 10.6 percent one year ago. Adjusted net income per diluted share was $0.27 in the quarter, compared to $0.78 in the third quarter of 2008. See the attached schedule, Adjusted Operating Results, for a reconciliation of GAAP results to adjusted results.
"Though the world economy remains weakened, our results reflect stabilizing demand in most of our major markets, with improving levels in Asia. Further, we continue to see the benefits from our Lean approach, which forms the basis for disciplined cost control and strong cash flow generation despite this challenging economic environment," said John Stroup, President and Chief Executive Officer of Belden. "Our focus on customers, cost and cash flow, coupled with the dedication and skill of our worldwide associates, allows the Company to perform well in these uncertain times and positions us to excel when recovery re-ignites demand."
Stroup continued, "We are especially pleased with our third quarter free cash flow of $42.8 million. This brings our year-to-date free cash flow generation to $93.8 million and a cash balance in excess of $310 million."
Outlook
The Company expects adjusted fourth quarter revenue and EPS to be between $365 million and $375 million and $0.27 and $0.32 per share, respectively, excluding the impact of the deferral of revenues and cost of goods sold with respect to its wireless segment and the impact of charges associated with already announced restructuring actions.
Stroup remarked, "Despite a competitive environment we expect our fourth quarter results to benefit from slightly improved demand, seasonality and continued contributions from our global restructuring efforts."
Forward Looking Statements
Statements in this release other than historical facts are "forward looking statements" made in reliance upon the safe harbor of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statements regarding future revenues, costs and expenses, operating income, earnings per share, margins, cash flows, dividends and capital expenditures. These forward looking statements are based on forecasts and projections about the industries served by the Company and about general economic conditions. They reflect management's beliefs and expectations. They are not guarantees of future performance and they involve risk and uncertainty. The Company's actual results may differ materially from these expectations. The current global economic slowdown has adversely affected our results of operations and may continue to do so. Turbulence in financial markets may increase our borrowing costs. Additional factors that may cause actual results to differ from the Company's expectations include the Company's reliance on key distributors in marketing products; the Company's ability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control and productivity improvement programs); changes in the level of economic activity in the Company's major geographic markets; difficulties in realigning manufacturing capacity and capabilities among the Company's global manufacturing facilities; the competitiveness of the global cable, connectivity and wireless industries; variability in the Company's quarterly and annual effective tax rates; changes in accounting rules and interpretation of these rules which may affect the Company's reported earnings; changes in currency exchange rates and political and economic uncertainties in the countries where the Company conducts business; demand for the Company's products; the cost and availability of materials including copper, plastic compounds derived from fossil fuels, and other materials; energy costs; the Company's ability to integrate successfully acquired businesses; the ability of the Company to develop and introduce new products; the Company having to recognize charges that would reduce income as a result of impairing goodwill and other intangible assets; and other factors. For a more complete discussion of risk factors, please see our Annual Report on Form 10-K for the year ended December 31, 2008, filed with the SEC on February 27, 2009. Belden disclaims any duty to update any forward looking statements as a result of new information, future developments, or otherwise.
About Belden
Sending All the Right Signals - from industrial automation to data centers, from broadcast studios to aerospace, from cutting-edge wireless communications to consumer electronics, Belden people are committed to delivering the best signal transmission solutions in the world. Belden associates work in copper cable, fiber, wireless technology, connectors, switches and active components to bring voice, video and data to mission-critical applications. With 2008 revenue of $2.0 billion, Belden has manufacturing capability in North America, Europe and Asia. To obtain additional information contact Investor Relations at 314-854-8054, or visit our website at www.belden.com.
Contact:
Belden Investor Relations
314-854-8054
BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September September September September
27, 2009 28, 2008 27, 2009 28, 2008
--------- --------- --------- ---------
(In thousands, except per share data)
Revenues $355,159 $520,494 $1,027,492 $1,588,623
Cost of sales (247,086) (366,842) (726,708) (1,122,681)
-------- -------- -------- ----------
Gross profit 108,073 153,652 300,784 465,942
Selling, general and
administrative expenses (71,489) (85,149) (215,765) (267,225)
Research and development (14,161) (15,887) (44,838) (36,051)
Amortization of intangibles (3,983) (4,125) (11,759) (9,286)
Asset impairment - (753) (26,176) (12,302)
Loss on sale of assets - - (17,184) (884)
--- --- ------- ----
Operating income (loss) 18,440 47,738 (14,938) 140,194
Interest expense (12,575) (8,857) (28,793) (28,266)
Interest income 199 1,226 801 4,058
Other income 2,418 813 2,862 3,967
----- --- ----- -----
Income (loss) before
taxes 8,482 40,920 (40,068) 119,953
Income tax expense (15,958) (9,386) (4,748) (33,729)
------- ------ ------ -------
Net income (loss) $(7,476) $31,534 $(44,816) $86,224
======= ======= ======== =======
Weighted average number of common
shares and equivalents:
Basic 46,607 44,571 46,574 44,072
Diluted 46,607 47,082 46,574 47,643
Basic income (loss) per share $(0.16) $0.71 $(0.96) $1.96
Diluted income (loss) per share $(0.16) $0.67 $(0.96) $1.81
Dividends declared per share $0.05 $0.05 $0.15 $0.15
BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)
External Operating
Three Months Ended Customer Affiliate Total Income
September 27, 2009 Revenues Revenues Revenues (Loss)
------------------ -------- -------- -------- ------
(In thousands)
Americas $192,135 $12,994 $205,129 $31,153
Wireless 14,910 - 14,910 (6,644)
EMEA 81,012 13,099 94,111 5,596
Asia Pacific 67,102 - 67,102 6,700
------ --- ------ -----
Total Segments 355,159 26,093 381,252 36,805
Corporate expenses - - - (10,141)
Eliminations - (26,093) (26,093) (8,224)
--- ------- ------- ------
Total $355,159 $- $355,159 $18,440
======== == ======== =======
Three Months Ended
September 28, 2008
------------------
Americas $277,235 $13,692 $290,927 $51,148
Wireless 7,792 38 7,830 (8,784)
EMEA 139,489 20,818 160,307 11,674
Asia Pacific 95,978 - 95,978 11,755
------ --- ------ ------
Total Segments 520,494 34,548 555,042 65,793
Corporate expenses - - - (10,824)
Eliminations - (34,548) (34,548) (7,231)
--- ------- ------- ------
Total $520,494 $- $520,494 $47,738
======== == ======== =======
Nine Months Ended
September 27, 2009
------------------
Americas $561,079 $31,873 $592,952 $89,332
Wireless 40,147 - 40,147 (22,944)
EMEA 255,310 38,681 293,991 (51,029)
Asia Pacific 170,956 - 170,956 18,296
------- --- ------- ------
Total Segments 1,027,492 70,554 1,098,046 33,655
Corporate expenses - - - (27,808)
Eliminations - (70,554) (70,554) (20,785)
--- ------- ------- -------
Total $1,027,492 $- $1,027,492 $(14,938)
========== == ========== ========
Nine Months Ended
September 28, 2008
------------------
Americas $812,407 $51,069 $863,476 $121,628
Wireless 7,792 38 7,830 (8,784)
EMEA 472,707 65,483 538,190 52,903
Asia Pacific 295,717 111 295,828 38,817
------- --- ------- ------
Total Segments 1,588,623 116,701 1,705,324 204,564
Corporate expenses - - - (37,047)
Eliminations - (116,701) (116,701) (27,323)
--- -------- -------- -------
Total $1,588,623 $- $1,588,623 $140,194
========== == ========== ========
BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited)
Nine Months Ended
September September
27, 2009 28, 2008
--------- ---------
(In thousands)
Cash flows from operating activities:
Net income (loss) $(44,816) $86,224
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation and amortization 40,630 42,394
Asset impairment 26,176 12,302
Loss on sale of assets 17,184 884
Share-based compensation 8,373 10,614
Provision for inventory obsolescence 4,912 6,495
Tax deficiency (benefit) related to
share-based compensation 1,507 (1,297)
Amortization of discount on long-term
debt 103 1,256
Pension funding in excess of pension
expense (7,000) (1,114)
Changes in operating assets and
liabilities, net of the effects of
currency exchange rate changes and
acquired businesses:
Receivables 40,784 (9,297)
Inventories 49,631 (7,440)
Deferred cost of sales (514) (3,300)
Accounts payable 2,517 21,148
Accrued liabilities (23,543) (33,154)
Deferred revenue 843 8,721
Accrued taxes 1,996 (5,890)
Other assets 1,987 (1,995)
Other liabilities (834) 1,316
---- -----
Net cash provided by
operating activities 119,936 127,867
Cash flows from investing activities:
Capital expenditures (26,178) (32,421)
Cash used to invest in and acquire
businesses - (144,625)
Proceeds from disposal of tangible assets 367 40,488
--- ------
Net cash used for investing
activities (25,811) (136,558)
Cash flows from financing activities:
Borrowings under credit arrangements 193,732 240,000
Payments under borrowing arrangements (193,732) (110,000)
Debt issuance costs (11,810) -
Cash dividends paid (7,037) (6,616)
Tax benefit (deficiency) related to share-
based compensation (1,507) 1,297
Proceeds from exercise of stock options 23 5,957
Payments under share repurchase program - (68,336)
--- -------
Net cash provided by (used
for) financing activities (20,331) 62,302
Effect of foreign currency exchange rate
changes on cash and cash equivalents 10,585 1,864
------ -----
Increase in cash and cash equivalents 84,379 55,475
Cash and cash equivalents, beginning of
period 227,413 159,964
------- -------
Cash and cash equivalents, end of period $311,792 $215,439
======== ========
Free cash flow is defined as net cash provided by operating activities
less capital expenditures. Free cash flow was $93,758 ($119,936 -
$26,178) and $95,446 ($127,867 - $32,421) for the nine months ended
September 27, 2009 and September 28, 2008, respectively.
BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
September 27, 2009 December 31, 2008
------------------ -----------------
(Unaudited)
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents $311,792 $227,413
Receivables, net 253,318 292,236
Inventories, net 150,476 216,022
Deferred income taxes 25,595 22,606
Other current assets 40,419 34,826
------ ------
Total current assets 781,600 793,103
Property, plant and equipment,
less accumulated depreciation 301,911 324,569
Goodwill 308,620 321,478
Intangible assets, less
accumulated amortization 140,764 156,025
Deferred income taxes 3,145 -
Other long-lived assets 66,139 53,388
------ ------
$1,602,179 $1,648,563
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $162,625 $160,744
Accrued liabilities 153,676 180,801
------- -------
Total current liabilities 316,301 341,545
Long-term debt 590,103 590,000
Postretirement benefits 124,903 120,256
Deferred income taxes - 4,270
Other long-term liabilities 20,732 21,624
Stockholders' equity:
Common stock 503 503
Additional paid-in capital 589,274 585,704
Retained earnings 55,069 106,949
Accumulated other comprehensive
income 34,969 10,227
Treasury stock (129,675) (132,515)
-------- --------
Total stockholders' equity 550,140 570,868
------- -------
$1,602,179 $1,648,563
========== ==========
Inventory turns are calculated by dividing annualized cost of sales for
the quarter by the inventory balance at the end of the quarter. Inventory
turns for the quarters ended September 27, 2009 and September 28, 2008
were 6.6 and 5.5 turns, respectively.
BELDEN INC.
ADJUSTED OPERATING RESULTS
(Unaudited)
In addition to reporting financial results in accordance with accounting
principles generally accepted in the United States, we provide operating
results adjusted for certain items including asset impairment, severance
charges, revenue deferrals related to our Wireless segment, gains (losses)
on sales of assets, and other costs related to our restructurings. We
utilize the adjusted results to review our ongoing operations without the
effect of these adjustments and for comparison to budgeted operating
results. We believe these adjusted results are useful to investors because
they help them compare our results to previous periods and provide
insights into underlying trends in the business. Adjusted results should
be considered only in conjunction with results reported according to
accounting principles generally accepted in the United States.
As
Three Months Ended September 27, 2009 Reported Adjustments Adjusted
------------------------------------- -------- ----------- --------
(In thousands, except percentages
and per share amounts)
Revenues $355,159 $61 $355,220
Gross profit $108,073 $5,385 $113,458
as a percent of revenues 30.4% 31.9%
Operating income $18,440 $8,768 $27,208
as a percent of revenues 5.2% 7.7%
Net income (loss) $(7,476) $20,372 $12,896
as a percent of revenues -2.1% 3.6%
Net income (loss) per diluted share $(0.16) $0.43 $0.27
Three Months Ended September 28, 2008
-------------------------------------
Revenues $520,494 $8,721 $529,215
Gross profit $153,652 $5,754 $159,406
as a percent of revenues 29.5% 30.1%
Operating income $47,738 $8,389 $56,127
as a percent of revenues 9.2% 10.6%
Net income $31,534 $5,292 $36,826
as a percent of revenues 6.1% 7.0%
Net income per diluted share $0.67 $0.11 $0.78
Adjustments for the three months ended September 27, 2009 included pre-tax
operating charges for contract termination costs, severance and employee
relocation costs, equipment transfer costs, and other costs related to our
restructurings of $2.2 million, $1.5 million, $0.7 million, and $4.4
million, respectively.
Adjustments for the three months ended September 28, 2008 included pre-tax
operating charges for revenue deferrals, purchase accounting effects for
acquisitions, asset impairment, and severance of $6.3 million, $1.2
million, $0.8 million, and $0.1 million, respectively, and pre-tax non-
operating charges of $0.2 million.
As
Nine Months Ended September 27, 2009 Reported Adjustments Adjusted
------------------------------------ -------- ----------- --------
(In thousands, except percentages
and per share amounts)
Revenues $1,027,492 $843 $1,028,335
Gross profit $300,784 $28,914 $329,698
as a percent of revenues 29.3% 32.1%
Operating income (loss) $(14,938) $87,380 $72,442
as a percent of revenues -1.5% 7.0%
Net income (loss) $(44,816) $80,810 $35,994
as a percent of revenues -4.4% 3.5%
Net income (loss) per diluted share $(0.96) $1.73 $0.77
Nine Months Ended September 28, 2008
------------------------------------
Revenues $1,588,623 $8,721 $1,597,344
Gross profit $465,942 $11,996 $477,938
as a percent of revenues 29.3% 29.9%
Operating income $140,194 $37,353 $177,547
as a percent of revenues 8.8% 11.1%
Net income $86,224 $28,610 $114,834
as a percent of revenues 5.4% 7.2%
Net income per diluted share $1.81 $0.60 $2.41
Adjustments for the nine months ended September 27, 2009 included pre-tax
operating charges for severance and employee relocation costs, asset
impairment, loss on sale of assets, equipment transfer costs, contract
termination costs, and other costs related to our restructurings of $27.5
million, $26.2 million, $17.2 million, $2.9 million, $2.2 million, and
$11.4 million, respectively, and pre-tax non-operating charges of $1.5
million.
Adjustments for the nine months ended September 28, 2008 included pre-tax
operating charges for severance, asset impairment, revenue deferrals,
pension settlements, purchase accounting effects for acquisitions, loss on
sale of assets, and other costs related to our restructurings of $13.5
million, $12.3 million, $6.3 million, $1.8 million, $1.2 million, $0.9
million, and $1.4 million, respectively, and pre-tax non-operating charges
of $3.1 million.
SOURCE Belden
Related Categories
Press ReleasesStocks Mentioned
-0.49Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
