Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Belden Reports Third Quarter Results By: Belden Inc. via Business Wire November 02, 2023 at 06:30 AM EDT Belden Inc. (NYSE: BDC) (the “Company”), a leading global supplier of network infrastructure and digitization solutions, today reported fiscal third quarter results for the period ended October 1, 2023. Third Quarter 2023 Highlights Revenues of $627 million, -7% y/y and Organic Growth of -9% y/y GAAP EPS of $1.70, -28% y/y and Adjusted EPS of $1.78, +1% y/y Executed $64 million of share repurchases during the quarter, and $150 million year to date "During the third quarter, as previously communicated, weak demand across our markets presented challenges, yet our expanding solutions-driven mix drove gross margin outperformance," said Ashish Chand, President and CEO of Belden Inc. "As we look ahead, we expect the challenges that have emerged to persist into the fourth quarter and most likely into the coming year. We will mitigate temporary demand weakness by taking productivity measures to better align with these expected conditions. With continued focus on our solutions business, we aim to not only capture share and support better margins but to further strengthen our robust foundation for sustainable long-term growth." Third Quarter 2023 Revenues for the quarter were $627 million, compared to $670 million in the year-ago period. Organic year-over-year growth for the quarter was off 9%, with Industrial Automation Solutions and Enterprise Solutions down 4% and 14%, respectively. Net income was $72 million, compared to $104 million in the year-ago period. Prior year net income included a pre-tax gain on sale of assets of $38 million compared to $12 million this year. Net income as a percentage of revenue was 11.5%, compared to 15.5% in the year-ago period. EPS totaled $1.70 for the quarter, compared to $2.35 in the year-ago period. Adjusted EBITDA was $115 million, compared to $118 million in the year-ago period. Adjusted EBITDA margins expanded 80bps to 18.4%, compared to 17.6% in the year-ago period. Adjusted EPS was $1.78, increasing 1% compared to $1.77 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 The fourth quarter is expected to be marked by ongoing demand headwinds, pauses in capital spending by customers, and channel destocking pressures. In the long term, the secular trends driving our business – automation, smart infrastructure, and data integration - remain intact, and Belden is uniquely positioned to provide market-leading digitization solutions. We expect to weather these temporary headwinds and surpass our prior revenue run rates as we increase our product and solution offerings, expand into additional use cases and verticals, and gain share with our solutions go-to-market strategy. Assuming no significant changes to the current market environment, the table below provides guidance for the fourth quarter of 2023. Fourth Quarter 2023: Guidance Revenues (million) $510 - $530 GAAP EPS $0.49 - $0.64 Adjusted EPS $1.05 - $1.20 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 888-394-8218 with confirmation code 6123821. 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, Earnings per Share (EPS), and Organic Growth All references to net income and EPS within this earnings release refer to income from continuing operations and income from continuing operations per diluted share attributable to Belden stockholders, respectively. 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 Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 (In thousands, except per share data) Revenues $ 626,807 $ 670,491 $ 1,960,841 $ 1,947,413 Cost of sales (385,639 ) (431,845 ) (1,212,240 ) (1,277,602 ) Gross profit 241,168 238,646 748,601 669,811 Selling, general and administrative expenses (118,079 ) (110,478 ) (366,288 ) (318,747 ) Research and development expenses (30,190 ) (26,306 ) (90,544 ) (75,751 ) Amortization of intangibles (9,526 ) (10,105 ) (30,262 ) (28,099 ) Gain on sale of assets 12,056 37,891 12,056 37,891 Operating income 95,429 129,648 273,563 285,105 Interest expense, net (8,580 ) (9,883 ) (25,593 ) (35,570 ) Non-operating pension benefit 328 26 1,462 2,296 Loss on debt extinguishment — — — (6,392 ) Income from continuing operations before taxes 87,177 119,791 249,432 245,439 Income tax expense (14,850 ) (16,104 ) (45,385 ) (39,014 ) Income from continuing operations 72,327 103,687 204,047 206,425 Loss from discontinued operations, net of tax — — — (3,685 ) Loss on disposal of discontinued operations, net of tax — (5,366 ) — (9,933 ) Net income 72,327 98,321 204,047 192,807 Less: Net income (loss) attributable to noncontrolling interest (20 ) 27 (245 ) 111 Net income attributable to Belden stockholders $ 72,347 $ 98,294 $ 204,292 $ 192,696 Weighted average number of common shares and equivalents: Basic 42,053 43,466 42,460 44,181 Diluted 42,625 44,063 43,129 44,810 Basic income (loss) per share attributable to Belden stockholders: Continuing operations $ 1.72 $ 2.38 $ 4.81 $ 4.67 Discontinued operations — — — (0.08 ) Disposal of discontinued operations — (0.12 ) — (0.22 ) Net income $ 1.72 $ 2.26 $ 4.81 $ 4.36 Diluted income (loss) per share attributable to Belden stockholders: Continuing operations $ 1.70 $ 2.35 $ 4.74 $ 4.60 Discontinued operations — — — (0.08 ) Disposal of discontinued operations — (0.12 ) — (0.22 ) Net income $ 1.70 $ 2.23 $ 4.74 $ 4.30 Common stock dividends declared per share $ 0.05 $ 0.05 $ 0.15 $ 0.15 BELDEN INC. OPERATING SEGMENT INFORMATION (Unaudited) Enterprise Solutions Industrial Automation Solutions Total Segments (In thousands, except percentages) For the three months ended October 1, 2023 Segment Revenues $ 283,905 $ 342,902 $ 626,807 Segment EBITDA 37,693 77,244 114,937 Segment EBITDA margin 13.3 % 22.5 % 18.3 % Depreciation expense 6,632 6,810 13,442 Amortization of intangibles 4,468 5,058 9,526 Amortization of software development intangible assets — 1,963 1,963 Severance, restructuring, and acquisition integration costs 3,453 2,622 6,075 Adjustments related to acquisitions and divestitures 197 298 495 For the three months ended October 2, 2022 Segment Revenues $ 319,201 $ 351,290 $ 670,491 Segment EBITDA 46,110 71,055 117,165 Segment EBITDA margin 14.4 % 20.2 % 17.5 % Depreciation expense 6,020 5,827 11,847 Amortization of intangibles 4,512 5,593 10,105 Amortization of software development intangible assets 8 860 868 Severance, restructuring, and acquisition integration costs 2,702 1,858 4,560 Adjustments related to acquisitions and divestitures (2,537 ) 514 (2,023 ) For the nine months ended October 1, 2023 Segment Revenues $ 871,777 $ 1,089,064 $ 1,960,841 Segment EBITDA 118,854 229,662 348,516 Segment EBITDA margin 13.6 % 21.1 % 17.8 % Depreciation expense 18,779 19,699 38,478 Amortization of intangibles 15,171 15,091 30,262 Amortization of software development intangible assets — 5,235 5,235 Severance, restructuring, and acquisition integration costs 5,147 6,699 11,846 Adjustments related to acquisitions and divestitures 522 520 1,042 For the nine months ended October 2, 2022 Segment Revenues $ 895,075 $ 1,052,338 $ 1,947,413 Segment EBITDA 118,818 206,643 325,461 Segment EBITDA margin 13.3 % 19.6 % 16.7 % Depreciation expense 17,214 17,229 34,443 Amortization of intangibles 13,051 15,048 28,099 Amortization of software development intangible assets 52 2,804 2,856 Severance, restructuring, and acquisition integration costs 7,605 6,535 14,140 Adjustments related to acquisitions and divestitures (3,095 ) 1,648 (1,447 ) BELDEN INC. OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS (Unaudited) Three Months Ended Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 (In thousands) Total Segment and Consolidated Revenues $ 626,807 $ 670,491 $ 1,960,841 $ 1,947,413 Total Segment EBITDA $ 114,937 $ 117,165 $ 348,516 $ 325,461 Total non-operating pension benefit 328 26 1,462 2,296 Non-operating pension settlement loss — 954 — 954 Eliminations (63 ) (51 ) (146 ) (156 ) Consolidated Adjusted EBITDA (1) $ 115,202 $ 118,094 $ 349,832 $ 328,555 Depreciation expense (13,442 ) (11,847 ) (38,478 ) (34,443 ) Amortization of intangibles (9,526 ) (10,105 ) (30,262 ) (28,099 ) Interest expense, net (8,580 ) (9,883 ) (25,593 ) (35,570 ) Amortization of software development intangible assets (1,963 ) (868 ) (5,235 ) (2,856 ) Adjustments related to acquisitions and divestitures (495 ) 2,023 (1,042 ) 1,447 Severance, restructuring, and acquisition integration costs (6,075 ) (4,560 ) (11,846 ) (14,140 ) Non-operating pension settlement loss — (954 ) — (954 ) Loss on debt extinguishment — — — (6,392 ) Gain on sale of assets 12,056 37,891 12,056 37,891 Income from continuing operations before taxes $ 87,177 $ 119,791 $ 249,432 $ 245,439 (1) Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation of Non-GAAP Measures for additional information. BELDEN INC. CONDENSED CONSOLIDATED BALANCE SHEETS October 1, 2023 December 31, 2022 (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 530,971 $ 687,676 Receivables, net 481,125 440,102 Inventories, net 336,420 341,563 Other current assets 63,831 66,866 Total current assets 1,412,347 1,536,207 Property, plant and equipment, less accumulated depreciation 404,950 381,864 Operating lease right-of-use assets 78,497 73,376 Goodwill 892,711 862,253 Intangible assets, less accumulated amortization 271,615 246,830 Deferred income taxes 14,830 14,642 Other long-lived assets 54,449 46,503 $ 3,129,399 $ 3,161,675 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 304,851 $ 350,058 Accrued liabilities 248,320 289,861 Total current liabilities 553,171 639,919 Long-term debt 1,145,796 1,161,176 Postretirement benefits 65,063 67,828 Deferred income taxes 67,709 58,582 Long-term operating lease liabilities 65,477 59,250 Other long-term liabilities 32,780 30,970 Stockholders’ equity: Common stock 503 503 Additional paid-in capital 812,423 825,669 Retained earnings 949,422 751,522 Accumulated other comprehensive loss (6,605 ) (5,871 ) Treasury stock (556,343 ) (428,812 ) Total Belden stockholders’ equity 1,199,400 1,143,011 Noncontrolling interests 3 939 Total stockholders’ equity 1,199,403 1,143,950 $ 3,129,399 $ 3,161,675 BELDEN INC. CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Unaudited) Nine Months Ended October 1, 2023 October 2, 2022 (In thousands) Cash flows from operating activities: Net income $ 204,047 $ 192,807 Adjustments to reconcile net income to cash flows from operating activities: Depreciation and amortization 73,974 65,730 Share-based compensation 14,843 18,438 Loss on disposal of discontinued operations — 9,934 Loss on debt extinguishment — 6,392 Gain on sale of assets (12,056 ) (37,891 ) Changes in operating assets and liabilities, net of the effects of currency exchange rate changes, acquired businesses and disposals: Receivables (48,949 ) (42,808 ) Inventories 16,211 (11,393 ) Accounts payable (42,456 ) (65,584 ) Accrued liabilities (43,318 ) (41,247 ) Income taxes 548 (2,347 ) Other assets (6,706 ) 4,269 Other liabilities 3,855 (17,500 ) Net cash provided by operating activities 159,993 78,800 Cash flows from investing activities: Cash used for business acquisitions, net of cash acquired (106,712 ) (104,481 ) Capital expenditures (61,870 ) (50,250 ) Proceeds from disposal of tangible assets 13,785 43,534 Proceeds from disposal of businesses, net of cash sold 9,300 334,574 Net cash provided by (used for) investing activities (145,497 ) 223,377 Cash flows from financing activities: Payments under share repurchase program (150,000 ) (136,336 ) Withholding tax payments for share-based payment awards (17,309 ) (6,534 ) Cash dividends paid (6,408 ) (6,762 ) Payments under financing lease obligations (254 ) (123 ) Payments under borrowing arrangements — (230,639 ) Proceeds from issuance of common stock 6,568 3,717 Net cash used for financing activities (167,403 ) (376,677 ) Effect of foreign currency exchange rate changes on cash and cash equivalents (3,798 ) (21,791 ) Decrease in cash and cash equivalents (156,705 ) (96,291 ) Cash and cash equivalents, beginning of period 687,676 643,757 Cash and cash equivalents, end of period $ 530,971 $ 547,466 The Condensed Consolidated Cash Flow Statement for the nine months ended October 2, 2022 includes the results of discontinued operations up to the February 22, 2022 disposal date. 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 Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 (In thousands, except percentages and per share amounts) GAAP and Adjusted Revenues $ 626,807 $ 670,491 $ 1,960,841 $ 1,947,413 GAAP gross profit $ 241,168 $ 238,646 $ 748,601 $ 669,811 Severance, restructuring, and acquisition integration costs 912 2,796 1,400 8,771 Amortization of software development intangible assets 1,963 868 5,235 2,856 Adjustments related to acquisitions and divestitures 197 514 522 1,648 Adjusted gross profit $ 244,240 $ 242,824 $ 755,758 $ 683,086 GAAP gross profit margin 38.5 % 35.6 % 38.2 % 34.4 % Adjusted gross profit margin 39.0 % 36.2 % 38.5 % 35.1 % GAAP selling, general and administrative expenses $ (118,079 ) $ (110,478 ) $ (366,288 ) $ (318,747 ) Severance, restructuring, and acquisition integration costs 5,213 1,764 10,402 5,369 Adjustments related to acquisitions and divestitures 298 (2,537 ) 520 (3,095 ) Adjusted selling, general and administrative expenses $ (112,568 ) $ (111,251 ) $ (355,366 ) $ (316,473 ) GAAP research and development expenses $ (30,190 ) $ (26,306 ) $ (90,544 ) $ (75,751 ) Severance, restructuring, and acquisition integration costs (50 ) — 44 — Adjusted research and development expenses $ (30,240 ) $ (26,306 ) $ (90,500 ) $ (75,751 ) GAAP income from continuing operations $ 72,327 $ 103,687 $ 204,047 $ 206,425 Income tax expense 14,850 16,104 45,385 39,014 Interest expense, net 8,580 9,883 25,593 35,570 Non-operating pension settlement loss — 954 — 954 Loss on debt extinguishment — — — 6,392 Total non-operating adjustments 23,430 26,941 70,978 81,930 Amortization of intangible assets 9,526 10,105 30,262 28,099 Severance, restructuring, and acquisition integration costs 6,075 4,560 11,846 14,140 Amortization of software development intangible assets 1,963 868 5,235 2,856 Adjustments related to acquisitions and divestitures 495 (2,023 ) 1,042 (1,447 ) Gain on sale of assets (12,056 ) (37,891 ) (12,056 ) (37,891 ) Total operating income adjustments 6,003 (24,381 ) 36,329 5,757 Depreciation expense 13,442 11,847 38,478 34,443 Adjusted EBITDA $ 115,202 $ 118,094 $ 349,832 $ 328,555 GAAP income from continuing operations margin 11.5 % 15.5 % 10.4 % 10.6 % Adjusted EBITDA margin 18.4 % 17.6 % 17.8 % 16.9 % GAAP income from continuing operations $ 72,327 $ 103,687 $ 204,047 $ 206,425 Less: Net income (loss) attributable to noncontrolling interest (20 ) 27 (245 ) 111 GAAP net income from continuing operations attributable to Belden stockholders $ 72,347 $ 103,660 $ 204,292 $ 206,314 GAAP income from continuing operations $ 72,327 $ 103,687 $ 204,047 $ 206,425 Plus: Operating income adjustments from above 6,003 (24,381 ) 36,329 5,757 Plus: Non-operating pension settlement loss — 954 — 954 Plus: Loss on debt extinguishment — — — 6,392 Less: Net income (loss) attributable to noncontrolling interest (20 ) 27 (245 ) 111 Less: Tax effect of adjustments above 2,682 2,121 9,202 10,360 Adjusted net income from continuing operations attributable to Belden stockholders $ 75,668 $ 78,112 $ 231,419 $ 209,057 GAAP income from continuing operations per diluted share attributable to Belden stockholders $ 1.70 $ 2.35 $ 4.74 $ 4.60 Adjusted income from continuing operations per diluted share attributable to Belden stockholders $ 1.78 $ 1.77 $ 5.37 $ 4.67 GAAP and adjusted diluted weighted average shares 42,625 44,063 43,129 44,810 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 Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 (In thousands) GAAP net cash provided by operating activities $ 105,278 $ 87,381 $ 159,993 $ 78,800 Capital expenditures (29,141 ) (19,240 ) (61,870 ) (50,250 ) Proceeds from disposal of tangible assets 13,776 42,110 13,785 43,534 Non-GAAP free cash flow $ 89,913 $ 110,251 $ 111,908 $ 72,084 BELDEN INC. RECONCILIATION OF NON-GAAP MEASURES 2023 Guidance Three Months Ended December 31, 2023 GAAP income from continuing operations per diluted share attributable to Belden common stockholders $0.49 - $0.64 Amortization of intangible assets 0.21 Severance, restructuring, and acquisition integration costs 0.34 Adjustments related to acquisitions and divestitures 0.01 Adjusted income from continuing operations per diluted share attributable to Belden common stockholders $1.05 - $1.20 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 fourth quarter and full year 2023 and Adjusted EPS for 2025. 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 or a downturn in served 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); 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; volatility in credit and foreign exchange markets; 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 a resurgence of COVID-19 or the spread of other viruses; difficulty in forecasting revenue due to the unpredictable timing of orders related to customer projects as well as the impacts of channel inventory; 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 in furtherance of the Company’s strategic plan; 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, 2022, filed with the SEC on February 24, 2023. 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20231102193583/en/Contacts Belden Investor Relations Aaron Reddington, CFA (317) 219-9359 Investor.Relations@Belden.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Belden Reports Third Quarter Results By: Belden Inc. via Business Wire November 02, 2023 at 06:30 AM EDT Belden Inc. (NYSE: BDC) (the “Company”), a leading global supplier of network infrastructure and digitization solutions, today reported fiscal third quarter results for the period ended October 1, 2023. Third Quarter 2023 Highlights Revenues of $627 million, -7% y/y and Organic Growth of -9% y/y GAAP EPS of $1.70, -28% y/y and Adjusted EPS of $1.78, +1% y/y Executed $64 million of share repurchases during the quarter, and $150 million year to date "During the third quarter, as previously communicated, weak demand across our markets presented challenges, yet our expanding solutions-driven mix drove gross margin outperformance," said Ashish Chand, President and CEO of Belden Inc. "As we look ahead, we expect the challenges that have emerged to persist into the fourth quarter and most likely into the coming year. We will mitigate temporary demand weakness by taking productivity measures to better align with these expected conditions. With continued focus on our solutions business, we aim to not only capture share and support better margins but to further strengthen our robust foundation for sustainable long-term growth." Third Quarter 2023 Revenues for the quarter were $627 million, compared to $670 million in the year-ago period. Organic year-over-year growth for the quarter was off 9%, with Industrial Automation Solutions and Enterprise Solutions down 4% and 14%, respectively. Net income was $72 million, compared to $104 million in the year-ago period. Prior year net income included a pre-tax gain on sale of assets of $38 million compared to $12 million this year. Net income as a percentage of revenue was 11.5%, compared to 15.5% in the year-ago period. EPS totaled $1.70 for the quarter, compared to $2.35 in the year-ago period. Adjusted EBITDA was $115 million, compared to $118 million in the year-ago period. Adjusted EBITDA margins expanded 80bps to 18.4%, compared to 17.6% in the year-ago period. Adjusted EPS was $1.78, increasing 1% compared to $1.77 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 The fourth quarter is expected to be marked by ongoing demand headwinds, pauses in capital spending by customers, and channel destocking pressures. In the long term, the secular trends driving our business – automation, smart infrastructure, and data integration - remain intact, and Belden is uniquely positioned to provide market-leading digitization solutions. We expect to weather these temporary headwinds and surpass our prior revenue run rates as we increase our product and solution offerings, expand into additional use cases and verticals, and gain share with our solutions go-to-market strategy. Assuming no significant changes to the current market environment, the table below provides guidance for the fourth quarter of 2023. Fourth Quarter 2023: Guidance Revenues (million) $510 - $530 GAAP EPS $0.49 - $0.64 Adjusted EPS $1.05 - $1.20 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 888-394-8218 with confirmation code 6123821. 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, Earnings per Share (EPS), and Organic Growth All references to net income and EPS within this earnings release refer to income from continuing operations and income from continuing operations per diluted share attributable to Belden stockholders, respectively. 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 Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 (In thousands, except per share data) Revenues $ 626,807 $ 670,491 $ 1,960,841 $ 1,947,413 Cost of sales (385,639 ) (431,845 ) (1,212,240 ) (1,277,602 ) Gross profit 241,168 238,646 748,601 669,811 Selling, general and administrative expenses (118,079 ) (110,478 ) (366,288 ) (318,747 ) Research and development expenses (30,190 ) (26,306 ) (90,544 ) (75,751 ) Amortization of intangibles (9,526 ) (10,105 ) (30,262 ) (28,099 ) Gain on sale of assets 12,056 37,891 12,056 37,891 Operating income 95,429 129,648 273,563 285,105 Interest expense, net (8,580 ) (9,883 ) (25,593 ) (35,570 ) Non-operating pension benefit 328 26 1,462 2,296 Loss on debt extinguishment — — — (6,392 ) Income from continuing operations before taxes 87,177 119,791 249,432 245,439 Income tax expense (14,850 ) (16,104 ) (45,385 ) (39,014 ) Income from continuing operations 72,327 103,687 204,047 206,425 Loss from discontinued operations, net of tax — — — (3,685 ) Loss on disposal of discontinued operations, net of tax — (5,366 ) — (9,933 ) Net income 72,327 98,321 204,047 192,807 Less: Net income (loss) attributable to noncontrolling interest (20 ) 27 (245 ) 111 Net income attributable to Belden stockholders $ 72,347 $ 98,294 $ 204,292 $ 192,696 Weighted average number of common shares and equivalents: Basic 42,053 43,466 42,460 44,181 Diluted 42,625 44,063 43,129 44,810 Basic income (loss) per share attributable to Belden stockholders: Continuing operations $ 1.72 $ 2.38 $ 4.81 $ 4.67 Discontinued operations — — — (0.08 ) Disposal of discontinued operations — (0.12 ) — (0.22 ) Net income $ 1.72 $ 2.26 $ 4.81 $ 4.36 Diluted income (loss) per share attributable to Belden stockholders: Continuing operations $ 1.70 $ 2.35 $ 4.74 $ 4.60 Discontinued operations — — — (0.08 ) Disposal of discontinued operations — (0.12 ) — (0.22 ) Net income $ 1.70 $ 2.23 $ 4.74 $ 4.30 Common stock dividends declared per share $ 0.05 $ 0.05 $ 0.15 $ 0.15 BELDEN INC. OPERATING SEGMENT INFORMATION (Unaudited) Enterprise Solutions Industrial Automation Solutions Total Segments (In thousands, except percentages) For the three months ended October 1, 2023 Segment Revenues $ 283,905 $ 342,902 $ 626,807 Segment EBITDA 37,693 77,244 114,937 Segment EBITDA margin 13.3 % 22.5 % 18.3 % Depreciation expense 6,632 6,810 13,442 Amortization of intangibles 4,468 5,058 9,526 Amortization of software development intangible assets — 1,963 1,963 Severance, restructuring, and acquisition integration costs 3,453 2,622 6,075 Adjustments related to acquisitions and divestitures 197 298 495 For the three months ended October 2, 2022 Segment Revenues $ 319,201 $ 351,290 $ 670,491 Segment EBITDA 46,110 71,055 117,165 Segment EBITDA margin 14.4 % 20.2 % 17.5 % Depreciation expense 6,020 5,827 11,847 Amortization of intangibles 4,512 5,593 10,105 Amortization of software development intangible assets 8 860 868 Severance, restructuring, and acquisition integration costs 2,702 1,858 4,560 Adjustments related to acquisitions and divestitures (2,537 ) 514 (2,023 ) For the nine months ended October 1, 2023 Segment Revenues $ 871,777 $ 1,089,064 $ 1,960,841 Segment EBITDA 118,854 229,662 348,516 Segment EBITDA margin 13.6 % 21.1 % 17.8 % Depreciation expense 18,779 19,699 38,478 Amortization of intangibles 15,171 15,091 30,262 Amortization of software development intangible assets — 5,235 5,235 Severance, restructuring, and acquisition integration costs 5,147 6,699 11,846 Adjustments related to acquisitions and divestitures 522 520 1,042 For the nine months ended October 2, 2022 Segment Revenues $ 895,075 $ 1,052,338 $ 1,947,413 Segment EBITDA 118,818 206,643 325,461 Segment EBITDA margin 13.3 % 19.6 % 16.7 % Depreciation expense 17,214 17,229 34,443 Amortization of intangibles 13,051 15,048 28,099 Amortization of software development intangible assets 52 2,804 2,856 Severance, restructuring, and acquisition integration costs 7,605 6,535 14,140 Adjustments related to acquisitions and divestitures (3,095 ) 1,648 (1,447 ) BELDEN INC. OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS (Unaudited) Three Months Ended Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 (In thousands) Total Segment and Consolidated Revenues $ 626,807 $ 670,491 $ 1,960,841 $ 1,947,413 Total Segment EBITDA $ 114,937 $ 117,165 $ 348,516 $ 325,461 Total non-operating pension benefit 328 26 1,462 2,296 Non-operating pension settlement loss — 954 — 954 Eliminations (63 ) (51 ) (146 ) (156 ) Consolidated Adjusted EBITDA (1) $ 115,202 $ 118,094 $ 349,832 $ 328,555 Depreciation expense (13,442 ) (11,847 ) (38,478 ) (34,443 ) Amortization of intangibles (9,526 ) (10,105 ) (30,262 ) (28,099 ) Interest expense, net (8,580 ) (9,883 ) (25,593 ) (35,570 ) Amortization of software development intangible assets (1,963 ) (868 ) (5,235 ) (2,856 ) Adjustments related to acquisitions and divestitures (495 ) 2,023 (1,042 ) 1,447 Severance, restructuring, and acquisition integration costs (6,075 ) (4,560 ) (11,846 ) (14,140 ) Non-operating pension settlement loss — (954 ) — (954 ) Loss on debt extinguishment — — — (6,392 ) Gain on sale of assets 12,056 37,891 12,056 37,891 Income from continuing operations before taxes $ 87,177 $ 119,791 $ 249,432 $ 245,439 (1) Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation of Non-GAAP Measures for additional information. BELDEN INC. CONDENSED CONSOLIDATED BALANCE SHEETS October 1, 2023 December 31, 2022 (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 530,971 $ 687,676 Receivables, net 481,125 440,102 Inventories, net 336,420 341,563 Other current assets 63,831 66,866 Total current assets 1,412,347 1,536,207 Property, plant and equipment, less accumulated depreciation 404,950 381,864 Operating lease right-of-use assets 78,497 73,376 Goodwill 892,711 862,253 Intangible assets, less accumulated amortization 271,615 246,830 Deferred income taxes 14,830 14,642 Other long-lived assets 54,449 46,503 $ 3,129,399 $ 3,161,675 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 304,851 $ 350,058 Accrued liabilities 248,320 289,861 Total current liabilities 553,171 639,919 Long-term debt 1,145,796 1,161,176 Postretirement benefits 65,063 67,828 Deferred income taxes 67,709 58,582 Long-term operating lease liabilities 65,477 59,250 Other long-term liabilities 32,780 30,970 Stockholders’ equity: Common stock 503 503 Additional paid-in capital 812,423 825,669 Retained earnings 949,422 751,522 Accumulated other comprehensive loss (6,605 ) (5,871 ) Treasury stock (556,343 ) (428,812 ) Total Belden stockholders’ equity 1,199,400 1,143,011 Noncontrolling interests 3 939 Total stockholders’ equity 1,199,403 1,143,950 $ 3,129,399 $ 3,161,675 BELDEN INC. CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Unaudited) Nine Months Ended October 1, 2023 October 2, 2022 (In thousands) Cash flows from operating activities: Net income $ 204,047 $ 192,807 Adjustments to reconcile net income to cash flows from operating activities: Depreciation and amortization 73,974 65,730 Share-based compensation 14,843 18,438 Loss on disposal of discontinued operations — 9,934 Loss on debt extinguishment — 6,392 Gain on sale of assets (12,056 ) (37,891 ) Changes in operating assets and liabilities, net of the effects of currency exchange rate changes, acquired businesses and disposals: Receivables (48,949 ) (42,808 ) Inventories 16,211 (11,393 ) Accounts payable (42,456 ) (65,584 ) Accrued liabilities (43,318 ) (41,247 ) Income taxes 548 (2,347 ) Other assets (6,706 ) 4,269 Other liabilities 3,855 (17,500 ) Net cash provided by operating activities 159,993 78,800 Cash flows from investing activities: Cash used for business acquisitions, net of cash acquired (106,712 ) (104,481 ) Capital expenditures (61,870 ) (50,250 ) Proceeds from disposal of tangible assets 13,785 43,534 Proceeds from disposal of businesses, net of cash sold 9,300 334,574 Net cash provided by (used for) investing activities (145,497 ) 223,377 Cash flows from financing activities: Payments under share repurchase program (150,000 ) (136,336 ) Withholding tax payments for share-based payment awards (17,309 ) (6,534 ) Cash dividends paid (6,408 ) (6,762 ) Payments under financing lease obligations (254 ) (123 ) Payments under borrowing arrangements — (230,639 ) Proceeds from issuance of common stock 6,568 3,717 Net cash used for financing activities (167,403 ) (376,677 ) Effect of foreign currency exchange rate changes on cash and cash equivalents (3,798 ) (21,791 ) Decrease in cash and cash equivalents (156,705 ) (96,291 ) Cash and cash equivalents, beginning of period 687,676 643,757 Cash and cash equivalents, end of period $ 530,971 $ 547,466 The Condensed Consolidated Cash Flow Statement for the nine months ended October 2, 2022 includes the results of discontinued operations up to the February 22, 2022 disposal date. 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 Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 (In thousands, except percentages and per share amounts) GAAP and Adjusted Revenues $ 626,807 $ 670,491 $ 1,960,841 $ 1,947,413 GAAP gross profit $ 241,168 $ 238,646 $ 748,601 $ 669,811 Severance, restructuring, and acquisition integration costs 912 2,796 1,400 8,771 Amortization of software development intangible assets 1,963 868 5,235 2,856 Adjustments related to acquisitions and divestitures 197 514 522 1,648 Adjusted gross profit $ 244,240 $ 242,824 $ 755,758 $ 683,086 GAAP gross profit margin 38.5 % 35.6 % 38.2 % 34.4 % Adjusted gross profit margin 39.0 % 36.2 % 38.5 % 35.1 % GAAP selling, general and administrative expenses $ (118,079 ) $ (110,478 ) $ (366,288 ) $ (318,747 ) Severance, restructuring, and acquisition integration costs 5,213 1,764 10,402 5,369 Adjustments related to acquisitions and divestitures 298 (2,537 ) 520 (3,095 ) Adjusted selling, general and administrative expenses $ (112,568 ) $ (111,251 ) $ (355,366 ) $ (316,473 ) GAAP research and development expenses $ (30,190 ) $ (26,306 ) $ (90,544 ) $ (75,751 ) Severance, restructuring, and acquisition integration costs (50 ) — 44 — Adjusted research and development expenses $ (30,240 ) $ (26,306 ) $ (90,500 ) $ (75,751 ) GAAP income from continuing operations $ 72,327 $ 103,687 $ 204,047 $ 206,425 Income tax expense 14,850 16,104 45,385 39,014 Interest expense, net 8,580 9,883 25,593 35,570 Non-operating pension settlement loss — 954 — 954 Loss on debt extinguishment — — — 6,392 Total non-operating adjustments 23,430 26,941 70,978 81,930 Amortization of intangible assets 9,526 10,105 30,262 28,099 Severance, restructuring, and acquisition integration costs 6,075 4,560 11,846 14,140 Amortization of software development intangible assets 1,963 868 5,235 2,856 Adjustments related to acquisitions and divestitures 495 (2,023 ) 1,042 (1,447 ) Gain on sale of assets (12,056 ) (37,891 ) (12,056 ) (37,891 ) Total operating income adjustments 6,003 (24,381 ) 36,329 5,757 Depreciation expense 13,442 11,847 38,478 34,443 Adjusted EBITDA $ 115,202 $ 118,094 $ 349,832 $ 328,555 GAAP income from continuing operations margin 11.5 % 15.5 % 10.4 % 10.6 % Adjusted EBITDA margin 18.4 % 17.6 % 17.8 % 16.9 % GAAP income from continuing operations $ 72,327 $ 103,687 $ 204,047 $ 206,425 Less: Net income (loss) attributable to noncontrolling interest (20 ) 27 (245 ) 111 GAAP net income from continuing operations attributable to Belden stockholders $ 72,347 $ 103,660 $ 204,292 $ 206,314 GAAP income from continuing operations $ 72,327 $ 103,687 $ 204,047 $ 206,425 Plus: Operating income adjustments from above 6,003 (24,381 ) 36,329 5,757 Plus: Non-operating pension settlement loss — 954 — 954 Plus: Loss on debt extinguishment — — — 6,392 Less: Net income (loss) attributable to noncontrolling interest (20 ) 27 (245 ) 111 Less: Tax effect of adjustments above 2,682 2,121 9,202 10,360 Adjusted net income from continuing operations attributable to Belden stockholders $ 75,668 $ 78,112 $ 231,419 $ 209,057 GAAP income from continuing operations per diluted share attributable to Belden stockholders $ 1.70 $ 2.35 $ 4.74 $ 4.60 Adjusted income from continuing operations per diluted share attributable to Belden stockholders $ 1.78 $ 1.77 $ 5.37 $ 4.67 GAAP and adjusted diluted weighted average shares 42,625 44,063 43,129 44,810 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 Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 (In thousands) GAAP net cash provided by operating activities $ 105,278 $ 87,381 $ 159,993 $ 78,800 Capital expenditures (29,141 ) (19,240 ) (61,870 ) (50,250 ) Proceeds from disposal of tangible assets 13,776 42,110 13,785 43,534 Non-GAAP free cash flow $ 89,913 $ 110,251 $ 111,908 $ 72,084 BELDEN INC. RECONCILIATION OF NON-GAAP MEASURES 2023 Guidance Three Months Ended December 31, 2023 GAAP income from continuing operations per diluted share attributable to Belden common stockholders $0.49 - $0.64 Amortization of intangible assets 0.21 Severance, restructuring, and acquisition integration costs 0.34 Adjustments related to acquisitions and divestitures 0.01 Adjusted income from continuing operations per diluted share attributable to Belden common stockholders $1.05 - $1.20 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 fourth quarter and full year 2023 and Adjusted EPS for 2025. 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 or a downturn in served 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); 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; volatility in credit and foreign exchange markets; 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 a resurgence of COVID-19 or the spread of other viruses; difficulty in forecasting revenue due to the unpredictable timing of orders related to customer projects as well as the impacts of channel inventory; 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 in furtherance of the Company’s strategic plan; 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, 2022, filed with the SEC on February 24, 2023. 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20231102193583/en/Contacts Belden Investor Relations Aaron Reddington, CFA (317) 219-9359 Investor.Relations@Belden.com
Belden Inc. (NYSE: BDC) (the “Company”), a leading global supplier of network infrastructure and digitization solutions, today reported fiscal third quarter results for the period ended October 1, 2023. Third Quarter 2023 Highlights Revenues of $627 million, -7% y/y and Organic Growth of -9% y/y GAAP EPS of $1.70, -28% y/y and Adjusted EPS of $1.78, +1% y/y Executed $64 million of share repurchases during the quarter, and $150 million year to date "During the third quarter, as previously communicated, weak demand across our markets presented challenges, yet our expanding solutions-driven mix drove gross margin outperformance," said Ashish Chand, President and CEO of Belden Inc. "As we look ahead, we expect the challenges that have emerged to persist into the fourth quarter and most likely into the coming year. We will mitigate temporary demand weakness by taking productivity measures to better align with these expected conditions. With continued focus on our solutions business, we aim to not only capture share and support better margins but to further strengthen our robust foundation for sustainable long-term growth." Third Quarter 2023 Revenues for the quarter were $627 million, compared to $670 million in the year-ago period. Organic year-over-year growth for the quarter was off 9%, with Industrial Automation Solutions and Enterprise Solutions down 4% and 14%, respectively. Net income was $72 million, compared to $104 million in the year-ago period. Prior year net income included a pre-tax gain on sale of assets of $38 million compared to $12 million this year. Net income as a percentage of revenue was 11.5%, compared to 15.5% in the year-ago period. EPS totaled $1.70 for the quarter, compared to $2.35 in the year-ago period. Adjusted EBITDA was $115 million, compared to $118 million in the year-ago period. Adjusted EBITDA margins expanded 80bps to 18.4%, compared to 17.6% in the year-ago period. Adjusted EPS was $1.78, increasing 1% compared to $1.77 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 The fourth quarter is expected to be marked by ongoing demand headwinds, pauses in capital spending by customers, and channel destocking pressures. In the long term, the secular trends driving our business – automation, smart infrastructure, and data integration - remain intact, and Belden is uniquely positioned to provide market-leading digitization solutions. We expect to weather these temporary headwinds and surpass our prior revenue run rates as we increase our product and solution offerings, expand into additional use cases and verticals, and gain share with our solutions go-to-market strategy. Assuming no significant changes to the current market environment, the table below provides guidance for the fourth quarter of 2023. Fourth Quarter 2023: Guidance Revenues (million) $510 - $530 GAAP EPS $0.49 - $0.64 Adjusted EPS $1.05 - $1.20 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 888-394-8218 with confirmation code 6123821. 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, Earnings per Share (EPS), and Organic Growth All references to net income and EPS within this earnings release refer to income from continuing operations and income from continuing operations per diluted share attributable to Belden stockholders, respectively. 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 Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 (In thousands, except per share data) Revenues $ 626,807 $ 670,491 $ 1,960,841 $ 1,947,413 Cost of sales (385,639 ) (431,845 ) (1,212,240 ) (1,277,602 ) Gross profit 241,168 238,646 748,601 669,811 Selling, general and administrative expenses (118,079 ) (110,478 ) (366,288 ) (318,747 ) Research and development expenses (30,190 ) (26,306 ) (90,544 ) (75,751 ) Amortization of intangibles (9,526 ) (10,105 ) (30,262 ) (28,099 ) Gain on sale of assets 12,056 37,891 12,056 37,891 Operating income 95,429 129,648 273,563 285,105 Interest expense, net (8,580 ) (9,883 ) (25,593 ) (35,570 ) Non-operating pension benefit 328 26 1,462 2,296 Loss on debt extinguishment — — — (6,392 ) Income from continuing operations before taxes 87,177 119,791 249,432 245,439 Income tax expense (14,850 ) (16,104 ) (45,385 ) (39,014 ) Income from continuing operations 72,327 103,687 204,047 206,425 Loss from discontinued operations, net of tax — — — (3,685 ) Loss on disposal of discontinued operations, net of tax — (5,366 ) — (9,933 ) Net income 72,327 98,321 204,047 192,807 Less: Net income (loss) attributable to noncontrolling interest (20 ) 27 (245 ) 111 Net income attributable to Belden stockholders $ 72,347 $ 98,294 $ 204,292 $ 192,696 Weighted average number of common shares and equivalents: Basic 42,053 43,466 42,460 44,181 Diluted 42,625 44,063 43,129 44,810 Basic income (loss) per share attributable to Belden stockholders: Continuing operations $ 1.72 $ 2.38 $ 4.81 $ 4.67 Discontinued operations — — — (0.08 ) Disposal of discontinued operations — (0.12 ) — (0.22 ) Net income $ 1.72 $ 2.26 $ 4.81 $ 4.36 Diluted income (loss) per share attributable to Belden stockholders: Continuing operations $ 1.70 $ 2.35 $ 4.74 $ 4.60 Discontinued operations — — — (0.08 ) Disposal of discontinued operations — (0.12 ) — (0.22 ) Net income $ 1.70 $ 2.23 $ 4.74 $ 4.30 Common stock dividends declared per share $ 0.05 $ 0.05 $ 0.15 $ 0.15 BELDEN INC. OPERATING SEGMENT INFORMATION (Unaudited) Enterprise Solutions Industrial Automation Solutions Total Segments (In thousands, except percentages) For the three months ended October 1, 2023 Segment Revenues $ 283,905 $ 342,902 $ 626,807 Segment EBITDA 37,693 77,244 114,937 Segment EBITDA margin 13.3 % 22.5 % 18.3 % Depreciation expense 6,632 6,810 13,442 Amortization of intangibles 4,468 5,058 9,526 Amortization of software development intangible assets — 1,963 1,963 Severance, restructuring, and acquisition integration costs 3,453 2,622 6,075 Adjustments related to acquisitions and divestitures 197 298 495 For the three months ended October 2, 2022 Segment Revenues $ 319,201 $ 351,290 $ 670,491 Segment EBITDA 46,110 71,055 117,165 Segment EBITDA margin 14.4 % 20.2 % 17.5 % Depreciation expense 6,020 5,827 11,847 Amortization of intangibles 4,512 5,593 10,105 Amortization of software development intangible assets 8 860 868 Severance, restructuring, and acquisition integration costs 2,702 1,858 4,560 Adjustments related to acquisitions and divestitures (2,537 ) 514 (2,023 ) For the nine months ended October 1, 2023 Segment Revenues $ 871,777 $ 1,089,064 $ 1,960,841 Segment EBITDA 118,854 229,662 348,516 Segment EBITDA margin 13.6 % 21.1 % 17.8 % Depreciation expense 18,779 19,699 38,478 Amortization of intangibles 15,171 15,091 30,262 Amortization of software development intangible assets — 5,235 5,235 Severance, restructuring, and acquisition integration costs 5,147 6,699 11,846 Adjustments related to acquisitions and divestitures 522 520 1,042 For the nine months ended October 2, 2022 Segment Revenues $ 895,075 $ 1,052,338 $ 1,947,413 Segment EBITDA 118,818 206,643 325,461 Segment EBITDA margin 13.3 % 19.6 % 16.7 % Depreciation expense 17,214 17,229 34,443 Amortization of intangibles 13,051 15,048 28,099 Amortization of software development intangible assets 52 2,804 2,856 Severance, restructuring, and acquisition integration costs 7,605 6,535 14,140 Adjustments related to acquisitions and divestitures (3,095 ) 1,648 (1,447 ) BELDEN INC. OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS (Unaudited) Three Months Ended Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 (In thousands) Total Segment and Consolidated Revenues $ 626,807 $ 670,491 $ 1,960,841 $ 1,947,413 Total Segment EBITDA $ 114,937 $ 117,165 $ 348,516 $ 325,461 Total non-operating pension benefit 328 26 1,462 2,296 Non-operating pension settlement loss — 954 — 954 Eliminations (63 ) (51 ) (146 ) (156 ) Consolidated Adjusted EBITDA (1) $ 115,202 $ 118,094 $ 349,832 $ 328,555 Depreciation expense (13,442 ) (11,847 ) (38,478 ) (34,443 ) Amortization of intangibles (9,526 ) (10,105 ) (30,262 ) (28,099 ) Interest expense, net (8,580 ) (9,883 ) (25,593 ) (35,570 ) Amortization of software development intangible assets (1,963 ) (868 ) (5,235 ) (2,856 ) Adjustments related to acquisitions and divestitures (495 ) 2,023 (1,042 ) 1,447 Severance, restructuring, and acquisition integration costs (6,075 ) (4,560 ) (11,846 ) (14,140 ) Non-operating pension settlement loss — (954 ) — (954 ) Loss on debt extinguishment — — — (6,392 ) Gain on sale of assets 12,056 37,891 12,056 37,891 Income from continuing operations before taxes $ 87,177 $ 119,791 $ 249,432 $ 245,439 (1) Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation of Non-GAAP Measures for additional information. BELDEN INC. CONDENSED CONSOLIDATED BALANCE SHEETS October 1, 2023 December 31, 2022 (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 530,971 $ 687,676 Receivables, net 481,125 440,102 Inventories, net 336,420 341,563 Other current assets 63,831 66,866 Total current assets 1,412,347 1,536,207 Property, plant and equipment, less accumulated depreciation 404,950 381,864 Operating lease right-of-use assets 78,497 73,376 Goodwill 892,711 862,253 Intangible assets, less accumulated amortization 271,615 246,830 Deferred income taxes 14,830 14,642 Other long-lived assets 54,449 46,503 $ 3,129,399 $ 3,161,675 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 304,851 $ 350,058 Accrued liabilities 248,320 289,861 Total current liabilities 553,171 639,919 Long-term debt 1,145,796 1,161,176 Postretirement benefits 65,063 67,828 Deferred income taxes 67,709 58,582 Long-term operating lease liabilities 65,477 59,250 Other long-term liabilities 32,780 30,970 Stockholders’ equity: Common stock 503 503 Additional paid-in capital 812,423 825,669 Retained earnings 949,422 751,522 Accumulated other comprehensive loss (6,605 ) (5,871 ) Treasury stock (556,343 ) (428,812 ) Total Belden stockholders’ equity 1,199,400 1,143,011 Noncontrolling interests 3 939 Total stockholders’ equity 1,199,403 1,143,950 $ 3,129,399 $ 3,161,675 BELDEN INC. CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Unaudited) Nine Months Ended October 1, 2023 October 2, 2022 (In thousands) Cash flows from operating activities: Net income $ 204,047 $ 192,807 Adjustments to reconcile net income to cash flows from operating activities: Depreciation and amortization 73,974 65,730 Share-based compensation 14,843 18,438 Loss on disposal of discontinued operations — 9,934 Loss on debt extinguishment — 6,392 Gain on sale of assets (12,056 ) (37,891 ) Changes in operating assets and liabilities, net of the effects of currency exchange rate changes, acquired businesses and disposals: Receivables (48,949 ) (42,808 ) Inventories 16,211 (11,393 ) Accounts payable (42,456 ) (65,584 ) Accrued liabilities (43,318 ) (41,247 ) Income taxes 548 (2,347 ) Other assets (6,706 ) 4,269 Other liabilities 3,855 (17,500 ) Net cash provided by operating activities 159,993 78,800 Cash flows from investing activities: Cash used for business acquisitions, net of cash acquired (106,712 ) (104,481 ) Capital expenditures (61,870 ) (50,250 ) Proceeds from disposal of tangible assets 13,785 43,534 Proceeds from disposal of businesses, net of cash sold 9,300 334,574 Net cash provided by (used for) investing activities (145,497 ) 223,377 Cash flows from financing activities: Payments under share repurchase program (150,000 ) (136,336 ) Withholding tax payments for share-based payment awards (17,309 ) (6,534 ) Cash dividends paid (6,408 ) (6,762 ) Payments under financing lease obligations (254 ) (123 ) Payments under borrowing arrangements — (230,639 ) Proceeds from issuance of common stock 6,568 3,717 Net cash used for financing activities (167,403 ) (376,677 ) Effect of foreign currency exchange rate changes on cash and cash equivalents (3,798 ) (21,791 ) Decrease in cash and cash equivalents (156,705 ) (96,291 ) Cash and cash equivalents, beginning of period 687,676 643,757 Cash and cash equivalents, end of period $ 530,971 $ 547,466 The Condensed Consolidated Cash Flow Statement for the nine months ended October 2, 2022 includes the results of discontinued operations up to the February 22, 2022 disposal date. 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 Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 (In thousands, except percentages and per share amounts) GAAP and Adjusted Revenues $ 626,807 $ 670,491 $ 1,960,841 $ 1,947,413 GAAP gross profit $ 241,168 $ 238,646 $ 748,601 $ 669,811 Severance, restructuring, and acquisition integration costs 912 2,796 1,400 8,771 Amortization of software development intangible assets 1,963 868 5,235 2,856 Adjustments related to acquisitions and divestitures 197 514 522 1,648 Adjusted gross profit $ 244,240 $ 242,824 $ 755,758 $ 683,086 GAAP gross profit margin 38.5 % 35.6 % 38.2 % 34.4 % Adjusted gross profit margin 39.0 % 36.2 % 38.5 % 35.1 % GAAP selling, general and administrative expenses $ (118,079 ) $ (110,478 ) $ (366,288 ) $ (318,747 ) Severance, restructuring, and acquisition integration costs 5,213 1,764 10,402 5,369 Adjustments related to acquisitions and divestitures 298 (2,537 ) 520 (3,095 ) Adjusted selling, general and administrative expenses $ (112,568 ) $ (111,251 ) $ (355,366 ) $ (316,473 ) GAAP research and development expenses $ (30,190 ) $ (26,306 ) $ (90,544 ) $ (75,751 ) Severance, restructuring, and acquisition integration costs (50 ) — 44 — Adjusted research and development expenses $ (30,240 ) $ (26,306 ) $ (90,500 ) $ (75,751 ) GAAP income from continuing operations $ 72,327 $ 103,687 $ 204,047 $ 206,425 Income tax expense 14,850 16,104 45,385 39,014 Interest expense, net 8,580 9,883 25,593 35,570 Non-operating pension settlement loss — 954 — 954 Loss on debt extinguishment — — — 6,392 Total non-operating adjustments 23,430 26,941 70,978 81,930 Amortization of intangible assets 9,526 10,105 30,262 28,099 Severance, restructuring, and acquisition integration costs 6,075 4,560 11,846 14,140 Amortization of software development intangible assets 1,963 868 5,235 2,856 Adjustments related to acquisitions and divestitures 495 (2,023 ) 1,042 (1,447 ) Gain on sale of assets (12,056 ) (37,891 ) (12,056 ) (37,891 ) Total operating income adjustments 6,003 (24,381 ) 36,329 5,757 Depreciation expense 13,442 11,847 38,478 34,443 Adjusted EBITDA $ 115,202 $ 118,094 $ 349,832 $ 328,555 GAAP income from continuing operations margin 11.5 % 15.5 % 10.4 % 10.6 % Adjusted EBITDA margin 18.4 % 17.6 % 17.8 % 16.9 % GAAP income from continuing operations $ 72,327 $ 103,687 $ 204,047 $ 206,425 Less: Net income (loss) attributable to noncontrolling interest (20 ) 27 (245 ) 111 GAAP net income from continuing operations attributable to Belden stockholders $ 72,347 $ 103,660 $ 204,292 $ 206,314 GAAP income from continuing operations $ 72,327 $ 103,687 $ 204,047 $ 206,425 Plus: Operating income adjustments from above 6,003 (24,381 ) 36,329 5,757 Plus: Non-operating pension settlement loss — 954 — 954 Plus: Loss on debt extinguishment — — — 6,392 Less: Net income (loss) attributable to noncontrolling interest (20 ) 27 (245 ) 111 Less: Tax effect of adjustments above 2,682 2,121 9,202 10,360 Adjusted net income from continuing operations attributable to Belden stockholders $ 75,668 $ 78,112 $ 231,419 $ 209,057 GAAP income from continuing operations per diluted share attributable to Belden stockholders $ 1.70 $ 2.35 $ 4.74 $ 4.60 Adjusted income from continuing operations per diluted share attributable to Belden stockholders $ 1.78 $ 1.77 $ 5.37 $ 4.67 GAAP and adjusted diluted weighted average shares 42,625 44,063 43,129 44,810 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 Nine Months Ended October 1, 2023 October 2, 2022 October 1, 2023 October 2, 2022 (In thousands) GAAP net cash provided by operating activities $ 105,278 $ 87,381 $ 159,993 $ 78,800 Capital expenditures (29,141 ) (19,240 ) (61,870 ) (50,250 ) Proceeds from disposal of tangible assets 13,776 42,110 13,785 43,534 Non-GAAP free cash flow $ 89,913 $ 110,251 $ 111,908 $ 72,084 BELDEN INC. RECONCILIATION OF NON-GAAP MEASURES 2023 Guidance Three Months Ended December 31, 2023 GAAP income from continuing operations per diluted share attributable to Belden common stockholders $0.49 - $0.64 Amortization of intangible assets 0.21 Severance, restructuring, and acquisition integration costs 0.34 Adjustments related to acquisitions and divestitures 0.01 Adjusted income from continuing operations per diluted share attributable to Belden common stockholders $1.05 - $1.20 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 fourth quarter and full year 2023 and Adjusted EPS for 2025. 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 or a downturn in served 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); 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; volatility in credit and foreign exchange markets; 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 a resurgence of COVID-19 or the spread of other viruses; difficulty in forecasting revenue due to the unpredictable timing of orders related to customer projects as well as the impacts of channel inventory; 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 in furtherance of the Company’s strategic plan; 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, 2022, filed with the SEC on February 24, 2023. 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20231102193583/en/