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Belden Reports Results for Second Quarter 2019

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Belden Inc. (NYSE:BDC), a global leader in high quality, end-to-end signal transmission solutions for mission-critical applications, today reported fiscal second quarter 2019 results for the period ended June 30, 2019.

Second Quarter 2019

Revenues for the quarter totaled $637.5 million, decreasing $31.1 million, or 4.7%, compared to $668.6 million in the second quarter 2018. Net income was $42.2 million, an increase of $13.3 million, or 46.2%, from the prior-year period. Net income as a percentage of revenue was 6.6% compared to 4.3% in the prior-year period. EPS totaled $0.84 compared to $0.49 in the second quarter 2018.

Adjusted revenues for the quarter also totaled $637.5 million, decreasing $33.9 million, or 5.1%, compared to adjusted revenues of $671.4 million in the second quarter 2018. Adjusted EBITDA margin in the second quarter was 15.9%, compared to 18.3% in the year-ago period. Adjusted EPS was $1.39 compared to $1.52 in the second quarter 2018. Adjusted results are non-GAAP measures, and a non-GAAP reconciliation table is provided as an appendix to this release.

John Stroup, President, CEO, and Chairman of Belden Inc., said, "Revenues were consistent with our expectations across most of our portfolio in the second quarter, but demand trends softened in some of our key Industrial markets. Cash flow generation continues to improve, and I am pleased to report 24% growth in cash flow from operations."

Outlook

"We now expect a more challenging demand environment in our Industrial markets in the second half, so we are reducing our revenue and EPS expectations for the remainder of the year. Despite this near-term outlook revision, we remain extremely well positioned to benefit from a number of long-term secular trends," said Mr. Stroup.

The Company expects third quarter 2019 revenues to be $620 - $645 million. For the full year ending December 31, 2019, the Company now expects revenues to be $2.485 - $2.535 billion, compared to prior guidance of $2.520 - $2.595 billion.

The Company expects third quarter 2019 GAAP EPS to be $0.84 - $1.04. For the full year ending December 31, 2019, the Company now expects GAAP EPS of $3.44 - $3.84, compared to prior guidance of $3.86 - $4.36.

The Company expects third quarter 2019 adjusted EPS to be $1.32 - $1.52. For the full year ending December 31, 2019, the Company now expects adjusted EPS of $5.38 - $5.78, compared to prior guidance of $5.65 - $6.15.

Earnings Conference Call

Management will host a conference call today at 8:30 am ET to discuss results of the quarter. The listen-only audio of the conference call will be broadcast live via the Internet at http://investor.belden.com. The dial-in number for participants in the U.S. is 888-599-8686; the dial-in number for participants outside the U.S. is 720-543-0302. A replay of this conference call will remain accessible in the investor relations section of the Company's website for a limited time.

Net Income and Earnings per Share (EPS)

All references to Net Income and EPS within this earnings release refer to net income attributable to Belden and income from continuing operations per diluted share attributable to Belden common stockholders, respectively.

Use of Non-GAAP Financial Information

Adjusted results are non-GAAP measures that reflect certain adjustments the Company makes to provide insight into operating results. GAAP to non-GAAP reconciliations accompany the condensed consolidated financial statements included in this release and have been published to the investor relations section of the Company's website at http://investor.belden.com.

 

 

BELDEN INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2019

 

July 1, 2018

 

June 30, 2019

 

July 1, 2018

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except per share data)

Revenues

 

$

637,530

 

 

$

668,639

 

 

$

1,224,705

 

 

$

1,274,204

 

Cost of sales

 

(396,507

)

 

(411,043

)

 

(758,954

)

 

(786,014

)

Gross profit

 

241,023

 

 

257,596

 

 

465,751

 

 

488,190

 

Selling, general and administrative expenses

 

(122,482

)

 

(138,842

)

 

(245,270

)

 

(263,714

)

Research and development expenses

 

(35,034

)

 

(37,209

)

 

(69,188

)

 

(74,310

)

Amortization of intangibles

 

(22,368

)

 

(25,039

)

 

(45,709

)

 

(49,457

)

Operating income

 

61,139

 

 

56,506

 

 

105,584

 

 

100,709

 

Interest expense, net

 

(14,168

)

 

(15,088

)

 

(28,361

)

 

(32,066

)

Non-operating pension benefit (cost)

 

481

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