Belden Reports Second Quarter 2024 Results

Belden Inc. (NYSE: BDC) (the “Company”), a leading global supplier of network infrastructure and digitization solutions, today reported fiscal second quarter results for the period ended June 30, 2024.

Second Quarter 2024 Highlights

  • Revenues of $604 million, down 13% y/y and down 13% y/y organically
  • GAAP EPS of $1.19, down 26% y/y
  • Adjusted EPS of $1.51, down 21% y/y
  • Closed acquisition of Precision Optical Technologies, Inc.

“Demand for the quarter was steady, with our team delivering second quarter revenues and EPS exceeding expectations,” said Ashish Chand, President and CEO of Belden. “In this dynamic environment where customers continue to work through inventory, our team executed well, delivering moderate sequential growth in orders for the third consecutive quarter. We continue to focus on enabling solutions across both segments by aligning on key secular trends in target verticals where data growth is high. Consistent with our capital allocation framework, during the quarter we closed on the acquisition of Precision Optical Technologies, Inc. With our expanded fiber portfolio, we look forward to delivering enhanced solutions to our customers.”

Second Quarter 2024

Revenues for the quarter totaled $604 million, decreasing $88 million, or 13%, compared to $692 million in the year-ago period. Driven primarily by lower market demand, revenues declined organically by 13%, with Industrial Automation Solutions down 13% and Enterprise Solutions down 14%. Net income was $49 million, compared to $69 million in the year-ago period. Net income as a percentage of revenues was 8.1%, compared to 9.9% in the year-ago period. EPS totaled $1.19 for the quarter, compared to $1.60 in the year-ago period.

Adjusted EBITDA was $99 million, down $24 million, or 19%, compared to $123 million in the year-ago period. Adjusted EBITDA margin was 16.5%, down 130 bps, compared to 17.8% in the year-ago period. Adjusted EPS was $1.51, decreasing 21% compared to $1.91 in the year-ago period. Adjusted results are non-GAAP measures, and a non-GAAP reconciliation table is provided as an appendix to this release.

Outlook

“Our solutions are being embraced by customers and partners, as our teams continue to lean into our transformation,” said Dr. Chand. “Data growth and network upgrades create opportunities for us to solve customer problems, especially as reindustrialization accelerates. Our long-term growth opportunities are considerable, and our portfolio is well-positioned to succeed as the next investment cycle ramps up. I am confident in the ability of the Belden team to continue to transform our business, leverage our superior technology, and capitalize on growth opportunities in all market conditions as we continue to generate sustainable, long-term shareholder value.”

Order patterns remain steady across our markets as customers navigate this dynamic environment. Relative to the second quarter, end demand is expected to increase modestly with revenues up sequentially.

Assuming no significant changes to the current market environment, the table below provides guidance for the third quarter of 2024.

Third Quarter 2024:

 

 

 

 

Guidance

Revenues (million)

 

$635 - $650

GAAP EPS

 

$1.00 - $1.10

Adjusted EPS

 

$1.55 - $1.65

Earnings Conference Call

Management will host a conference call today at 8:30 am ET to discuss the results. The listen-only audio of the conference call will be broadcast live via the Internet at https://investor.belden.com. The dial-in number for participants is 1-888-882-4478 with confirmation code 1133069. A replay of this conference call will remain accessible in the investor relations section of the Company’s website for a limited time.

Earnings per Share (EPS) and Organic Growth

All references to EPS within this earnings release refer to net income per diluted share attributable to Belden stockholders. Organic growth is calculated as the change in revenues excluding the impacts from currency exchange rates, copper prices, acquisitions, and divestitures.

BELDEN INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2024

 

July 2, 2023

 

June 30, 2024

 

July 2, 2023

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except per share data)

Revenues

 

$

604,336

 

 

$

692,245

 

 

$

1,140,011

 

 

$

1,334,034

 

Cost of sales

 

 

(377,530

)

 

 

(430,917

)

 

 

(711,609

)

 

 

(826,601

)

Gross profit

 

 

226,806

 

 

 

261,328

 

 

 

428,402

 

 

 

507,433

 

Selling, general and administrative expenses

 

 

(119,497

)

 

 

(126,635

)

 

 

(230,265

)

 

 

(248,209

)

Research and development expenses

 

 

(28,457

)

 

 

(30,970

)

 

 

(55,456

)

 

 

(60,354

)

Amortization of intangibles

 

 

(9,940

)

 

 

(11,126

)

 

 

(20,749

)

 

 

(20,736

)

Operating income

 

 

68,912

 

 

 

92,597

 

 

 

121,932

 

 

 

178,134

 

Interest expense, net

 

 

(9,017

)

 

 

(8,812

)

 

 

(16,599

)

 

 

(17,013

)

Non-operating pension benefit

 

 

230

 

 

 

646

 

 

 

461

 

 

 

1,134

 

Income before taxes

 

 

60,125

 

 

 

84,431

 

 

 

105,794

 

 

 

162,255

 

Income tax expense

 

 

(11,091

)

 

 

(15,656

)

 

 

(19,451

)

 

 

(30,535

)

Net income

 

 

49,034

 

 

 

68,775

 

 

 

86,343

 

 

 

131,720

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

(10

)

 

 

22

 

 

 

(14

)

 

 

(225

)

Net income attributable to Belden stockholders

 

$

49,044

 

 

$

68,753

 

 

$

86,357

 

 

$

131,945

 

Weighted average number of common shares and equivalents:

 

 

 

 

 

 

 

 

Basic

 

 

40,690

 

 

 

42,497

 

 

 

40,838

 

 

 

42,663

 

Diluted

 

 

41,204

 

 

 

43,088

 

 

 

41,348

 

 

 

43,380

 

Basic income per share attributable to Belden stockholders

 

$

1.21

 

 

$

1.62

 

 

$

2.11

 

 

$

3.09

 

Diluted income per share attributable to Belden stockholders

 

$

1.19

 

 

$

1.60

 

 

$

2.09

 

 

$

3.04

 

Common stock dividends declared per share

 

$

0.05

 

 

$

0.05

 

 

$

0.10

 

 

$

0.10

 

BELDEN INC.

OPERATING SEGMENT INFORMATION

(Unaudited)

 

 

 

Enterprise

Solutions

 

Industrial

Automation

Solutions

 

Total

Segments

 

(In thousands, except percentages)

 

 

 

 

 

 

 

For the three months ended June 30, 2024

 

 

 

 

 

 

Segment Revenues

 

$

270,473

 

 

$

333,863

 

 

$

604,336

 

Segment EBITDA

 

 

31,456

 

 

 

67,737

 

 

 

99,193

 

Segment EBITDA margin

 

 

11.6

%

 

 

20.3

%

 

 

16.4

%

Depreciation expense

 

 

6,214

 

 

 

7,363

 

 

 

13,577

 

Amortization of intangibles

 

 

5,022

 

 

 

4,918

 

 

 

9,940

 

Amortization of software development intangible assets

 

 

 

 

 

2,464

 

 

 

2,464

 

Severance, restructuring, and acquisition integration costs

 

 

2,309

 

 

 

1,684

 

 

 

3,993

 

Adjustments related to acquisitions and divestitures

 

 

 

 

 

298

 

 

 

298

 

 

 

 

 

 

 

 

For the three months ended July 2, 2023

 

 

 

 

 

 

Segment Revenues

 

$

312,529

 

 

$

379,716

 

 

$

692,245

 

Segment EBITDA

 

 

43,956

 

 

 

78,631

 

 

 

122,587

 

Segment EBITDA margin

 

 

14.1

%

 

 

20.7

%

 

 

17.7

%

Depreciation expense

 

 

6,193

 

 

 

6,489

 

 

 

12,682

 

Amortization of intangibles

 

 

6,208

 

 

 

4,918

 

 

 

11,126

 

Amortization of software development intangible assets

 

 

 

 

 

1,820

 

 

 

1,820

 

Severance, restructuring, and acquisition integration costs

 

 

1,669

 

 

 

2,390

 

 

 

4,059

 

Adjustments related to acquisitions and divestitures

 

 

325

 

 

 

(76

)

 

 

249

 

 

 

 

 

 

 

 

For the six months ended June 30, 2024

 

 

 

 

 

 

Segment Revenues

 

$

504,562

 

 

$

635,449

 

 

$

1,140,011

 

Segment EBITDA

 

 

57,244

 

 

 

126,482

 

 

 

183,726

 

Segment EBITDA margin

 

 

11.3

%

 

 

19.9

%

 

 

16.1

%

Depreciation expense

 

 

12,519

 

 

 

14,523

 

 

 

27,042

 

Amortization of intangibles

 

 

10,741

 

 

 

10,008

 

 

 

20,749

 

Amortization of software development intangible assets

 

 

 

 

 

5,177

 

 

 

5,177

 

Severance, restructuring, and acquisition integration costs

 

 

3,899

 

 

 

4,306

 

 

 

8,205

 

Adjustments related to acquisitions and divestitures

 

 

 

 

 

596

 

 

 

596

 

 

 

 

 

 

 

 

For the six months ended July 2, 2023

 

 

 

 

 

 

Segment Revenues

 

$

587,872

 

 

$

746,162

 

 

$

1,334,034

 

Segment EBITDA

 

 

81,161

 

 

 

152,418

 

 

 

233,579

 

Segment EBITDA margin

 

 

13.8

%

 

 

20.4

%

 

 

17.5

%

Depreciation expense

 

 

12,147

 

 

 

12,889

 

 

 

25,036

 

Amortization of intangibles

 

 

10,703

 

 

 

10,033

 

 

 

20,736

 

Amortization of software development intangible assets

 

 

 

 

 

3,272

 

 

 

3,272

 

Severance, restructuring, and acquisition integration costs

 

 

1,694

 

 

 

4,077

 

 

 

5,771

 

Adjustments related to acquisitions and divestitures

 

 

325

 

 

 

222

 

 

 

547

 

BELDEN INC.

OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS

(Unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2024

 

July 2, 2023

 

June 30, 2024

 

July 2, 2023

 

 

(In thousands)

Total Segment and Consolidated Revenues

 

$

604,336

 

 

$

692,245

 

 

$

1,140,011

 

 

$

1,334,034

 

Total Segment EBITDA

 

$

99,193

 

 

$

122,587

 

 

$

183,726

 

 

$

233,579

 

Total non-operating pension benefit

 

 

230

 

 

 

646

 

 

 

461

 

 

 

1,134

 

Eliminations

 

 

(9

)

 

 

(54

)

 

 

(25

)

 

 

(83

)

Consolidated Adjusted EBITDA (1)

 

$

99,414

 

 

$

123,179

 

 

$

184,162

 

 

$

234,630

 

Depreciation expense

 

 

(13,577

)

 

 

(12,682

)

 

 

(27,042

)

 

 

(25,036

)

Amortization of intangibles

 

 

(9,940

)

 

 

(11,126

)

 

 

(20,749

)

 

 

(20,736

)

Interest expense, net

 

 

(9,017

)

 

 

(8,812

)

 

 

(16,599

)

 

 

(17,013

)

Severance, restructuring, and acquisition integration costs

 

 

(3,993

)

 

 

(4,059

)

 

 

(8,205

)

 

 

(5,771

)

Amortization of software development intangible assets

 

 

(2,464

)

 

 

(1,820

)

 

 

(5,177

)

 

 

(3,272

)

Adjustments related to acquisitions and divestitures

 

 

(298

)

 

 

(249

)

 

 

(596

)

 

 

(547

)

Income before taxes

 

$

60,125

 

 

$

84,431

 

 

$

105,794

 

 

$

162,255

 

(1)

Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation of Non-GAAP Measures for additional information.

BELDEN INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

June 30,

2024

 

December 31,

2023

 

 

(Unaudited)

 

 

 

 

(In thousands)

ASSETS

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

564,751

 

 

$

597,044

 

Receivables, net

 

 

396,850

 

 

 

413,806

 

Inventories, net

 

 

374,991

 

 

 

366,987

 

Other current assets

 

 

75,951

 

 

 

79,142

 

Total current assets

 

 

1,412,543

 

 

 

1,456,979

 

Property, plant and equipment, less accumulated depreciation

 

 

460,949

 

 

 

451,069

 

Operating lease right-of-use assets

 

 

127,824

 

 

 

89,686

 

Goodwill

 

 

1,031,119

 

 

 

907,331

 

Intangible assets, less accumulated amortization

 

 

423,781

 

 

 

269,144

 

Deferred income taxes

 

 

16,318

 

 

 

15,739

 

Other long-lived assets

 

 

50,062

 

 

 

50,243

 

 

 

$

3,522,596

 

 

$

3,240,191

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

 

Accounts payable

 

$

260,857

 

 

$

343,215

 

Accrued liabilities

 

 

277,290

 

 

 

290,289

 

Payable to sellers of Precision Optical Technologies

 

 

291,508

 

 

 

 

Total current liabilities

 

 

829,655

 

 

 

633,504

 

Long-term debt

 

 

1,164,840

 

 

 

1,204,211

 

Postretirement benefits

 

 

70,250

 

 

 

74,573

 

Deferred income taxes

 

 

90,411

 

 

 

49,472

 

Long-term operating lease liabilities

 

 

110,148

 

 

 

74,941

 

Other long-term liabilities

 

 

37,415

 

 

 

37,188

 

Stockholders’ equity:

 

 

 

 

Common stock

 

 

503

 

 

 

503

 

Additional paid-in capital

 

 

823,205

 

 

 

818,663

 

Retained earnings

 

 

1,068,052

 

 

 

985,807

 

Accumulated other comprehensive loss

 

 

(25,219

)

 

 

(41,279

)

Treasury stock

 

 

(646,695

)

 

 

(597,437

)

Total Belden stockholders’ equity

 

 

1,219,846

 

 

 

1,166,257

 

Noncontrolling interests

 

 

31

 

 

 

45

 

Total stockholders’ equity

 

 

1,219,877

 

 

 

1,166,302

 

 

 

$

3,522,596

 

 

$

3,240,191

 

BELDEN INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(Unaudited)

 

 

 

Six Months Ended

 

 

June 30, 2024

 

July 2, 2023

 

 

(In thousands)

Cash flows from operating activities:

 

 

 

 

Net income

 

$

86,343

 

 

$

131,720

 

Adjustments to reconcile net income to cash flows from operating activities:

 

 

 

 

Depreciation and amortization

 

 

52,968

 

 

 

49,044

 

Share-based compensation

 

 

14,643

 

 

 

12,154

 

Changes in operating assets and liabilities, net of the effects of currency exchange rate changes, acquired businesses and disposals:

 

 

 

 

Receivables

 

 

30,880

 

 

 

(71,212

)

Inventories

 

 

204

 

 

 

10,347

 

Accounts payable

 

 

(90,025

)

 

 

(59,295

)

Accrued liabilities

 

 

(16,788

)

 

 

(22,855

)

Income taxes

 

 

2,097

 

 

 

5,204

 

Other assets

 

 

1,728

 

 

 

(4,197

)

Other liabilities

 

 

3,630

 

 

 

3,805

 

Net cash provided by operating activities

 

 

85,680

 

 

 

54,715

 

Cash flows from investing activities:

 

 

 

 

Capital expenditures

 

 

(46,246

)

 

 

(32,729

)

Cash from (used for) business acquisitions, net of cash acquired

 

 

526

 

 

 

(97,585

)

Proceeds from disposal of tangible assets

 

 

60

 

 

 

9

 

Proceeds from disposal of businesses, net of cash sold

 

 

 

 

 

9,300

 

Net cash used for investing activities

 

 

(45,660

)

 

 

(121,005

)

Cash flows from financing activities:

 

 

 

 

Payments under share repurchase program

 

 

(57,865

)

 

 

(86,224

)

Withholding tax payments for share-based payment awards

 

 

(8,110

)

 

 

(16,940

)

Cash dividends paid

 

 

(4,119

)

 

 

(4,285

)

Payments under financing lease obligations

 

 

(455

)

 

 

(115

)

Proceeds from issuance of common stock

 

 

3,152

 

 

 

1,679

 

Net cash used for financing activities

 

 

(67,397

)

 

 

(105,885

)

Effect of foreign currency exchange rate changes on cash and cash equivalents

 

 

(4,916

)

 

 

(734

)

Decrease in cash and cash equivalents

 

 

(32,293

)

 

 

(172,909

)

Cash and cash equivalents, beginning of period

 

 

597,044

 

 

 

687,676

 

Cash and cash equivalents, end of period

 

$

564,751

 

 

$

514,767

 

BELDEN INC.

RECONCILIATION OF NON-GAAP MEASURES

(Unaudited)

In addition to reporting financial results in accordance with accounting principles generally accepted in the United States, we provide non-GAAP operating results adjusted for certain items, including: asset impairments; accelerated depreciation expense due to plant consolidation activities; purchase accounting effects related to acquisitions, such as the adjustment of acquired inventory to fair value, and transaction costs; severance, restructuring, and acquisition integration costs; gains (losses) recognized on the disposal of businesses and assets; amortization of intangible assets; gains (losses) on debt extinguishment; certain gains (losses) from patent settlements; discontinued operations; and other costs. We adjust for the items listed above in all periods presented, unless the impact is clearly immaterial to our financial statements. When we calculate the tax effect of the adjustments, we include all current and deferred income tax expense commensurate with the adjusted measure of pre-tax profitability.

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 the adjusted results are useful to investors because they help them compare our results to previous periods and provide important insights into underlying trends in the business and how management oversees our business operations on a day-to-day basis. As an example, we adjust for acquisition-related expenses, such as amortization of intangibles and impacts of fair value adjustments because they generally are not related to the acquired business' core business performance. As an additional example, we exclude the costs of restructuring programs, which can occur from time to time for our current businesses and/or recently acquired businesses. We exclude the costs in calculating adjusted results to allow us and investors to evaluate the performance of the business based upon its expected ongoing operating structure. We believe the adjusted measures, accompanied by the disclosure of the costs of these programs, provides valuable insight.

Adjusted results should be considered only in conjunction with results reported according to accounting principles generally accepted in the United States.

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2024

 

July 2, 2023

 

June 30, 2024

 

July 2, 2023

 

 

(In thousands, except percentages and per share amounts)

GAAP and Adjusted Revenues

 

$

604,336

 

 

$

692,245

 

$

1,140,011

 

$

1,334,034

 

GAAP gross profit

 

$

226,806

 

 

$

261,328

 

 

$

428,402

 

 

$

507,433

 

Amortization of software development intangible assets

 

 

2,464

 

 

 

1,820

 

 

 

5,177

 

 

 

3,272

 

Severance, restructuring, and acquisition integration costs

 

 

1,299

 

 

 

259

 

 

 

2,586

 

 

 

488

 

Adjustments related to acquisitions and divestitures

 

 

 

 

 

325

 

 

 

 

 

 

325

 

Adjusted gross profit

 

$

230,569

 

 

$

263,732

 

 

$

436,165

 

 

$

511,518

 

GAAP gross profit margin

 

 

37.5

%

 

 

37.8

%

 

 

37.6

%

 

 

38.0

%

Adjusted gross profit margin

 

 

38.2

%

 

 

38.1

%

 

 

38.3

%

 

 

38.3

%

GAAP selling, general and administrative expenses

 

$

(119,497

)

 

$

(126,635

)

 

$

(230,265

)

 

$

(248,209

)

Severance, restructuring, and acquisition integration costs

 

 

2,941

 

 

 

3,706

 

 

 

5,267

 

 

 

5,189

 

Adjustments related to acquisitions and divestitures

 

 

298

 

 

 

(76

)

 

 

596

 

 

 

222

 

Adjusted selling, general and administrative expenses

 

$

(116,258

)

 

$

(123,005

)

 

$

(224,402

)

 

$

(242,798

)

GAAP research and development expenses

 

$

(28,457

)

 

$

(30,970

)

 

$

(55,456

)

 

$

(60,354

)

Severance, restructuring, and acquisition integration costs

 

 

(247

)

 

 

94

 

 

 

352

 

 

 

94

 

Adjusted research and development expenses

 

$

(28,704

)

 

$

(30,876

)

 

$

(55,104

)

 

$

(60,260

)

GAAP net income

 

$

49,034

 

 

$

68,775

 

 

$

86,343

 

 

$

131,720

 

Income tax expense

 

 

11,091

 

 

 

15,656

 

 

 

19,451

 

 

 

30,535

 

Interest expense, net

 

 

9,017

 

 

 

8,812

 

 

 

16,599

 

 

 

17,013

 

Total non-operating adjustments

 

 

20,108

 

 

 

24,468

 

 

 

36,050

 

 

 

47,548

 

Amortization of intangible assets

 

 

9,940

 

 

 

11,126

 

 

 

20,749

 

 

 

20,736

 

Severance, restructuring, and acquisition integration costs

 

 

3,993

 

 

 

4,059

 

 

 

8,205

 

 

 

5,771

 

Amortization of software development intangible assets

 

 

2,464

 

 

 

1,820

 

 

 

5,177

 

 

 

3,272

 

Adjustments related to acquisitions and divestitures

 

 

298

 

 

 

249

 

 

 

596

 

 

 

547

 

Total operating income adjustments

 

 

16,695

 

 

 

17,254

 

 

 

34,727

 

 

 

30,326

 

Depreciation expense

 

 

13,577

 

 

 

12,682

 

 

 

27,042

 

 

 

25,036

 

Adjusted EBITDA

 

$

99,414

 

 

$

123,179

 

 

$

184,162

 

 

$

234,630

 

GAAP net income margin

 

 

8.1

%

 

 

9.9

%

 

 

7.6

%

 

 

9.9

%

Adjusted EBITDA margin

 

 

16.5

%

 

 

17.8

%

 

 

16.2

%

 

 

17.6

%

GAAP net income

 

$

49,034

 

 

$

68,775

 

 

$

86,343

 

 

$

131,720

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

(10

)

 

 

22

 

 

 

(14

)

 

 

(225

)

GAAP net income attributable to Belden stockholders

 

$

49,044

 

 

$

68,753

 

 

$

86,357

 

 

$

131,945

 

GAAP net income

 

$

49,034

 

 

$

68,775

 

 

$

86,343

 

 

$

131,720

 

Plus: Operating income adjustments from above

 

 

16,695

 

 

 

17,254

 

 

 

34,727

 

 

 

30,326

 

Less: Net income (loss) attributable to noncontrolling interest

 

 

(10

)

 

 

22

 

 

 

(14

)

 

 

(225

)

Less: Tax effect of adjustments above

 

 

3,541

 

 

 

3,638

 

 

 

7,610

 

 

 

6,520

 

Adjusted net income attributable to Belden stockholders

 

$

62,198

 

 

$

82,369

 

 

$

113,474

 

 

$

155,751

 

GAAP income per diluted share attributable to Belden stockholders

 

$

1.19

 

 

$

1.60

 

 

$

2.09

 

 

$

3.04

 

Adjusted income per diluted share attributable to Belden stockholders

 

$

1.51

 

 

$

1.91

 

 

$

2.74

 

 

$

3.59

 

GAAP and adjusted diluted weighted average shares

 

 

41,204

 

 

 

43,088

 

 

 

41,348

 

 

 

43,380

 

BELDEN INC.

RECONCILIATION OF NON-GAAP MEASURES

(Unaudited)

We define free cash flow, which is a non-GAAP financial measure, as net cash from operating activities adjusted for capital expenditures net of the proceeds from the disposal of assets. We believe free cash flow provides useful information to investors regarding our ability to generate cash from business operations that is available for acquisitions and other investments, service of debt principal, dividends and share repurchases. We use free cash flow, as defined, as one financial measure to monitor and evaluate performance and liquidity. Non-GAAP financial measures should be considered only in conjunction with financial measures reported according to accounting principles generally accepted in the United States. Our definition of free cash flow may differ from definitions used by other companies.

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2024

 

July 2, 2023

 

June 30, 2024

 

July 2, 2023

 

 

(In thousands)

GAAP net cash provided by operating activities

 

$

82,959

 

 

$

86,587

 

 

$

85,680

 

 

$

54,715

 

Capital expenditures, net of proceeds from disposal of tangible assets

 

 

(21,996

)

 

 

(18,877

)

 

 

(46,186

)

 

 

(32,720

)

Non-GAAP free cash flow

 

$

60,963

 

 

$

67,710

 

 

$

39,494

 

 

$

21,995

 

BELDEN INC.

RECONCILIATION OF NON-GAAP MEASURES

2024 Guidance

 

 

 

Three Months Ended

 

 

September 29, 2024

GAAP income per diluted share attributable to Belden stockholders

 

$1.00 - $1.10

Amortization of intangible assets

 

0.32

Severance, restructuring, and acquisition integration costs

 

0.20

Adjustments related to acquisitions and divestitures

 

0.03

Adjusted income per diluted share attributable to Belden stockholders

 

$1.55 - $1.65

Our guidance is based upon information currently available regarding events and conditions that will impact our future operating results. In particular, our results are subject to the factors listed under "Forward-Looking Statements" in this release. In addition, our actual results are likely to be impacted by other additional events for which information is not available, such as asset impairments, adjustments related to acquisitions and divestitures, severance, restructuring, and acquisition integration costs, gains (losses) recognized on the disposal of assets, gains (losses) on debt extinguishment, discontinued operations, and other gains (losses) related to events or conditions that are not yet known.

Forward-Looking Statements

This release contains, and any statements made by us concerning the subject matter of this release may contain, forward-looking statements, including our outlook for the third quarter of 2024 and beyond. Forward-looking statements also include any statements regarding future financial performance (including revenues, growth, expenses, earnings, margins, cash flows, dividends, capital expenditures and financial condition), plans and objectives, and related assumptions. In some cases these statements are identifiable through the use of words such as “anticipate,” “believe,” “estimate,” “forecast,” “guide,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would” and similar expressions. Forward-looking statements reflect management’s current beliefs and expectations and are not guarantees of future performance. Actual results may differ materially from those suggested by any forward-looking statements for a number of reasons, including, without limitation: the impact of a challenging global economy, including the impact of inflation, or a downturn in served markets; volatility in credit and foreign exchange markets; the competitiveness of the global markets in which we operate; the inability of the Company to develop and introduce new products; competitive responses to our products; the inability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); difficulty in forecasting revenues due to the unpredictable timing of orders related to customer projects as well as the impacts of channel inventory; foreign and domestic political, economic and other uncertainties, including changes in currency exchange rates; the impact of disruptions in the global supply chain, including the inability to timely obtain raw materials and components in sufficient quantities on commercially reasonable terms; the inability to achieve our strategic priorities in emerging markets; the impact of changes in global tariffs and trade agreements; the presence of substitute products in the marketplace; disruptions in the Company’s information systems including due to cyber-attacks; inflation and changes in the price and availability of raw materials leading to higher input and labor costs; the possibility of future epidemics or pandemics; changes in tax laws and variability in the Company’s quarterly and annual effective tax rates; the increased prevalence of cloud computing; the inability to successfully complete and integrate acquisitions, including the acquisition of Precision Optical Technologies, Inc., in furtherance of the Company’s strategic plan, as well as the inability to accurately forecast the financial impacts of acquisitions; the inability to retain key employees; disruption of, or changes in, the Company’s key distribution channels; the presence of activists proposing certain actions by the Company; perceived or actual product failures; the impact of regulatory requirements and other legal compliance issues; inability to satisfy the increasing expectations with respect to environmental, social and governance matters; assertions that the Company violates the intellectual property of others and the ownership of intellectual property by competitors and others that prevents the use of that intellectual property by the Company; risks related to the use of open source software; the impairment of goodwill and other intangible assets and the resulting impact on financial performance; disruptions and increased costs attendant to collective bargaining groups and other labor matters; and other factors.

For a more complete discussion of risk factors, please see our Annual Report on Form 10-K for the period ended December 31, 2023, filed with the SEC on February 13, 2024. Although the content of this release represents our best judgment as of the date of this report based on information currently available and reasonable assumptions, we give no assurances that the expectations will prove to be accurate. Deviations from the expectations may be material. For these reasons, Belden cautions readers to not place undue reliance on these forward-looking statements, which speak only as of the date made. Belden disclaims any duty to update any forward-looking statements as a result of new information, future developments, or otherwise, except as required by law.

About Belden

Belden Inc. delivers the infrastructure that makes the digital journey simpler, smarter and secure. We’re moving beyond connectivity, from what we make to what we make possible through a performance-driven portfolio, forward-thinking expertise and purpose-built solutions. With a legacy of quality and reliability spanning 120-plus years, we have a strong foundation to continue building the future. We are headquartered in St. Louis and have manufacturing capabilities in North America, Europe, Asia, and Africa. For more information, visit us at www.belden.com; follow us on Facebook, LinkedIn and Twitter.

BDC-Financial

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