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Belden Reports Results for Fourth Quarter 2020 and Announces CFO Transition

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Belden Inc. (NYSE: BDC), a leading global supplier of specialty networking solutions, today reported fiscal fourth quarter and full year 2020 results for the period ended December 31, 2020 and announced a CFO transition.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210210005261/en/

Jeremy Parks, Chief Financial Officer of Belden Inc. (Photo: Business Wire)

Fourth Quarter 2020

Revenues for the quarter totaled $498.5 million, compared to $549.7 million in the prior-year period. EPS totaled $0.35 compared to $0.05 in the fourth quarter 2019. EPS in the prior year period was negatively impacted by additional charges related to the Tax Cuts and Jobs Act.

Adjusted EPS was $0.90 compared to $1.20 in the fourth quarter 2019. Adjusted results are non-GAAP measures, and a non-GAAP reconciliation table is provided as an appendix to this release.

Roel Vestjens, President and CEO of Belden Inc., said, "Demand trends improved in the fourth quarter, and I am pleased to report that revenues, earnings, and cash flow exceeded our initial expectations. We delivered $15 million in quarterly run rate savings associated with our SG&A cost reduction program, and we are committed to delivering the full $60 million in annual savings in 2021."

Full Year 2020

Revenues for the year totaled $1.863 billion, compared to $2.131 billion in the full year 2019. EPS was $1.21 compared to $2.15 in 2019. Adjusted EPS was $2.75 compared to $4.52 in 2019.

Mr. Vestjens remarked, "2020 was a truly unprecedented year, with each of us facing significant challenges related to the global pandemic, both personally and professionally. I am extremely proud of the way our global workforce responded to these challenges and maintained a sharp focus on supporting our customers and executing our strategic plans while maintaining the safest possible working conditions. During the year, we took bold steps to improve our portfolio and streamline our cost structure, while continuing to fund compelling growth initiatives. We expect these actions to drive significantly improved business performance going forward."

Outlook

"2021 will be a year of recovery in most of our key markets. During the year, we expect to complete our transformative portfolio actions and turn the focus to accelerating organic growth. To that end, we are progressing with our ongoing divestiture process, and we closed the previously-announced acquisition of OTN Systems N.V. in late January. This exciting acquisition brings innovative networking products and technologies that will provide additional opportunities for profitable growth in our Industrial Solutions business. I am encouraged by our recent order rates, and confident in our ability to achieve our financial goals and drive superior returns for our shareholders," said Mr. Vestjens.

The Company expects first quarter 2021 revenues to be $490 - $505 million. For the year ending December 31, 2021, the Company expects revenues to be $1.990 - $2.050 billion.

The Company expects first quarter 2021 GAAP EPS to be $0.22 - $0.32. For the year ending December 31, 2021, the Company expects GAAP EPS to be $1.70 - $2.10.

The Company expects first quarter 2021 adjusted EPS to be $0.60 - $0.70. For the year ending December 31, 2021, the Company expects adjusted EPS to be $2.90 - $3.30.

CFO Transition

The Company also announced today that its Senior Vice President, Finance, and Chief Financial Officer, Henk Derksen, will be leaving Belden in March to pursue other endeavors. Mr. Derksen has been with the Company since 2000, and during that time has helped lead the Company’s transition into the leading supplier of networking solutions that it is today. Mr. Derksen’s successor will be Jeremy Parks. Mr. Parks worked with the Company from 2008 through August 2020, most recently as the Vice President of Finance for the Company’s Industrial Solutions segment, after which he joined International Wire Group, Inc. as its Chief Financial Officer. Mr. Vestjens commented, "Henk’s contributions to our success over the last 20 years are immeasurable. He has tackled every task before him with talent and determination, and he has demonstrated flawless integrity in everything that he has done. We will miss him, and wish him well as he pursues his next challenge. We are excited to have Jeremy back in the Belden family as we embark on the next chapter in our evolution." Mr. Derksen will continue to serve as CFO through the filing of the Company’s 2020 Form 10-K, at which time Mr. Parks will assume the role. Mr. Derksen will stay on with the Company through mid-March to aid the transition.

Earnings Conference Call

Management will host a conference call today at 8:30 am ET to discuss results of the quarter. The listen-only audio of the conference call will be broadcast live via the Internet at https://investor.belden.com. The dial-in number for participants in the U.S. is 866-248-8441, with confirmation code 7695993. 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)

All references to EPS within this earnings release refer to income from continuing operations per diluted share attributable to Belden common stockholders.

Use of Non-GAAP Financial Information

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

BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

2020

December 31,

2019

December 31,

2020

December 31,

2019

(In thousands, except per share data)

Revenues

$

498,540

$

549,688

$

1,862,716

$

2,131,278

Cost of sales

(323,284

)

(346,916

)

(1,199,427

)

(1,337,773

)

Gross profit

175,256

202,772

663,289

793,505

Selling, general and administrative expenses

(91,059

)

(118,675

)

(366,188

)

(417,329

)

Research and development expenses

(25,663

)

(22,346

)

(107,296

)

(94,360

)

Amortization of intangibles

(16,089

)

(18,351

)

(64,395

)

(74,609

)

Operating income

42,445

43,400

125,410

207,207

Interest expense, net

(15,700

)

(13,863

)

(58,888

)

(55,814

)

Non-operating pension benefit (cost)

(2,474

)

(667

)

(395

)

1,017

Income from continuing operations before taxes

24,271

28,870

66,127

152,410

Income tax expense

(8,501

)

(26,340

)

(11,724

)

(42,519

)

Income from continuing operations

15,770

2,530

54,403

109,891

Gain (loss) from discontinued operations, net of tax

3,882

(149,759

)

(99,513

)

(486,667

)

Loss on disposal of discontinued operations, net of tax

(12,691

)

(9,948

)

Net income (loss)

6,961

(147,229

)

(55,058

)

(376,776

)

Less: Net income attributable to noncontrolling interest

25

179

104

239

Net income (loss) attributable to Belden

6,936

(147,408

)

(55,162

)

(377,015

)

Less: Preferred stock dividends

18,437

Net income (loss) attributable to Belden common stockholders

$

6,936

$

(147,408

)

$

(55,162

)

$

(395,452

)

Weighted average number of common shares and equivalents:

Basic

44,620

45,457

44,778

42,203

Diluted

44,848

45,684

44,937

42,416

Basic income (loss) per share attributable to Belden common stockholders:

Continuing operations attributable to Belden common stockholders

$

0.35

$

0.05

$

1.21

$

2.16

Discontinued operations attributable to Belden common stockholders

0.09

(3.29

)

(2.22

)

(11.53

)

Disposal of discontinued operations attributable to Belden common stockholders

(0.28

)

(0.22

)

Net income (loss) per share attributable to Belden common stockholders

$

0.16

$

(3.24

)

$

(1.23

)

$

(9.37

)

Diluted income (loss) per share attributable to Belden common stockholders:

Continuing operations attributable to Belden common stockholders

$

0.35

$

0.05

$

1.21

$

2.15

Discontinued operations attributable to Belden common stockholders

0.09

(3.29

)

(2.22

)

(11.53

)

Disposal of discontinued operations attributable to Belden common stockholders

(0.28

)

(0.22

)

Net income (loss) per share attributable to Belden common stockholders

$

0.15

$

(3.24

)

$

(1.23

)

$

(9.37

)

Common stock dividends declared per share

$

0.05

$

0.05

$

0.20

$

0.20

BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)

Effective January 1, 2020, we transferred our West Penn Wire business and multi-conductor product lines from the Enterprise Solutions segment to the Industrial Solutions segment, and as such, have recast the prior period segment information.

Enterprise Solutions

Industrial Solutions

Total Segments

(In thousands, except percentages)

For the three months ended December 31, 2020

Segment Revenues

$

227,731

$

270,809

$

498,540

Segment EBITDA

26,140

47,259

73,399

Segment EBITDA margin

11.5

%

17.5

%

14.7

%

Depreciation expense

5,447

5,954

11,401

Amortization of intangibles

5,396

10,693

16,089

Amortization of software development intangible assets

61

515

576

Severance, restructuring, and acquisition integration costs

1,410

1,400

2,810

For the three months ended December 31, 2019

Segment Revenues

$

246,397

$

303,291

$

549,688

Segment EBITDA

33,852

60,854

94,706

Segment EBITDA margin

13.7

%

20.1

%

17.2

%

Depreciation expense

5,137

5,282

10,419

Amortization of intangibles

5,630

12,721

18,351

Amortization of software development intangible assets

55

263

318

Severance, restructuring, and acquisition integration costs

5,238

15,740

20,978

Purchase accounting effects of acquisitions

60

60

For the twelve months ended December 31, 2020

Segment Revenues

$

872,415

$

990,301

$

1,862,716

Segment EBITDA

99,333

147,626

246,959

Segment EBITDA margin

11.4

%

14.9

%

13.3

%

Depreciation expense

20,655

21,815

42,470

Amortization of intangibles

21,662

42,733

64,395

Amortization of software development intangible assets

245

1,576

1,821

Severance, restructuring, and acquisition integrations costs

7,720

4,538

12,258

Purchase accounting effects of acquisitions

125

125

For the twelve months ended December 31, 2019

Segment Revenues

$

946,041

$

1,185,237

$

2,131,278

Segment EBITDA

126,925

226,110

353,035

Segment EBITDA margin

13.4

%

19.1

%

16.6

%

Depreciation expense

19,771

20,638

40,409

Amortization of intangibles

22,324

52,285

74,609

Amortization of software development intangible assets

175

350

525

Severance, restructuring, and acquisition integrations costs

10,808

15,736

26,544

Purchase accounting effects of acquisitions

592

592

BELDEN INC.
OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS
(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

2020

December 31,

2019

December 31,

2020

December 31,

2019

(In thousands)

Total Segment Revenues

$

498,540

$

549,688

$

1,862,716

$

2,131,278

Deferred revenue adjustments

Consolidated Revenues

$

498,540

$

549,688

$

1,862,716

$

2,131,278

Total Segment EBITDA

$

73,399

$

94,706

$

246,959

$

353,037

Total non-operating pension benefit (cost)

(2,474

)

(667

)

(395

)

1,017

Non-operating pension settlement loss

3,153

3,153

Eliminations

(78

)

(1,180

)

(480

)

(3,151

)

Consolidated Adjusted EBITDA (1)

74,000

92,859

249,237

350,903

Amortization of intangibles

(16,089

)

(18,351

)

(64,395

)

(74,609

)

Interest expense, net

(15,700

)

(13,863

)

(58,888

)

(55,814

)

Depreciation expense

(11,401

)

(10,419

)

(42,470

)

(40,409

)

Severance, restructuring, and acquisition integration costs

(2,810

)

(20,978

)

(12,258

)

(26,544

)

Non-operating pension settlement loss

(3,153

)

(3,153

)

Amortization of software development intangible assets

(576

)

(318

)

(1,821

)

(525

)

Purchase accounting effects related to acquisitions

(60

)

(125

)

(592

)

Income from continuing operations before taxes

$

24,271

$

28,870

$

66,127

$

152,410

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

BELDEN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

December 31, 2020

December 31, 2019

(Unaudited)

(In thousands)

ASSETS

Current assets:

Cash and cash equivalents

$

501,994

$

407,480

Receivables, net

296,817

334,634

Inventories, net

247,298

231,333

Other current assets

52,289

29,172

Current assets of discontinued operations

375,135

Total current assets

1,098,398

1,377,754

Property, plant and equipment, less accumulated depreciation

368,620

345,918

Operating lease right-of-use assets

54,787

62,251

Goodwill

1,251,938

1,243,669

Intangible assets, less accumulated amortization

287,071

339,505

Deferred income taxes

29,536

25,216

Other long-lived assets

49,384

12,446

$

3,139,734

$

3,406,759

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

244,120

$

268,466

Accrued liabilities

276,641

283,799

Current liabilities of discontinued operations

170,279

Total current liabilities

520,761

722,544

Long-term debt

1,573,726

1,439,484

Postretirement benefits

136,227

Deferred income taxes

38,400

48,725

Long-term operating lease liabilities

46,398

55,652

Other long-term liabilities

42,998

...

38,308

Stockholders’ equity:

Common stock

503

503

Additional paid-in capital

823,605

811,955

Retained earnings

450,876

518,004

Accumulated other comprehensive loss

(191,851

)

(63,418

)

Treasury stock

(332,552

)

(307,197

)

Total Belden stockholders’ equity

750,581

959,847

Noncontrolling interests

6,470

5,972

Total stockholders’ equity

757,051

965,819

$

3,139,734

$

3,406,759

BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(Unaudited)

Twelve Months Ended

December 31, 2020

December 31, 2019

(In thousands)

Cash flows from operating activities:

Net loss

$

(55,058

)

$

(376,776

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Asset impairment of discontinued operations

113,007

521,441

Depreciation and amortization

108,687

139,259

Share-based compensation

20,030

17,751

Loss on disposal of business

946

Deferred income tax benefit

(19,410

)

(23,540

)

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

Receivables

70,707

22,926

Inventories

(8,507

)

44,477

Accounts payable

(43,567

)

(41,527

)

Accrued liabilities

7,374

(17,654

)

Income taxes

(22,823

)

5,497

Other assets

2,018

(16,118

)

Other liabilities

(40

)

1,157

Net cash provided by operating activities

173,364

276,893

Cash flows from investing activities:

Capital expenditures

(90,215

)

(110,002

)

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

590

(74,392

)

Proceeds from disposal of tangible assets

3,161

25

Proceeds from disposal of business, net of cash sold

54,821

Net cash used for investing activities

(31,643

)

(184,369

)

Cash flows from financing activities:

Borrowings on revolver

190,000

Payments under borrowing arrangements

(190,000

)

Payments under share repurchase program

(35,000

)

(50,000

)

Payment of earnout consideration

(29,300

)

Cash dividends paid

(9,029

)

(34,439

)

Withholding tax payments for share-based payment awards

(1,388

)

(2,149

)

Other

(194

)

(360

)

Net cash used for financing activities

(74,911

)

(86,948

)

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

9,299

(301

)

Increase in cash and cash equivalents

76,109

5,275

Cash and cash equivalents, beginning of period

425,885

420,610

Cash and cash equivalents, end of period

$

501,994

$

425,885

For all periods presented, the Consolidated Cash Flow Statement includes the results of the Grass Valley disposal group up to the disposal date, July 2, 2020.




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 and deferred revenue to fair value and transaction costs; severance, restructuring, and acquisition integration costs; gains (losses) recognized on the disposal of businesses and tangible assets; amortization of intangible assets; gains (losses) on debt extinguishment; certain revenues and 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 the purchase accounting effect of recording deferred revenue at fair value in order to reflect the revenues that would have otherwise been recorded by acquired businesses had they remained as independent entities. We believe this presentation is useful in evaluating the underlying performance of acquired companies. Similarly, we adjust for other acquisition-related expenses, such as amortization of intangibles and other 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

Twelve Months Ended

December 31,

2020

December 31,

2019

December 31,

2020

December 31,

2019

(In thousands, except percentages and per share amounts)

GAAP and adjusted revenues

$

498,540

$

549,688

$

1,862,716

$

2,131,278

GAAP gross profit

$

175,256

$

202,772

$

663,289

$

793,505

Amortization of software development intangible assets

576

318

1,821

525

Severance, restructuring, and acquisition integration costs

482

2,333

704

3,425

Purchase accounting effects related to acquisitions

60

125

592

Adjusted gross profit

$

176,314

$

205,483

$

665,939

$

798,047

GAAP gross profit margin

35.2

%

36.9

%

35.6

%

37.2

%

Adjusted gross profit margin

35.4

%

37.4

%

35.8

%

37.4

%

GAAP selling, general and administrative expenses

$

(91,059

)

$

(118,675

)

$

(366,188

)

$

(417,329

)

Severance, restructuring, and acquisition integration costs

2,328

18,645

11,554

23,119

Adjusted selling, general and administrative expenses

$

(88,731

)

$

(100,030

)

$

(354,634

)

$

(394,210

)

GAAP and adjusted research and development expenses

$

(25,663

)

$

(22,346

)

$

(107,296

)

$

(94,360

)

GAAP net income (loss) attributable to Belden

$

6,936

$

(147,408

)

$

(55,162

)

$

(377,015

)

Interest expense, net

15,700

13,863

58,888

55,814

Loss (gain) from discontinued operations, net of tax

(3,882

)

149,759

99,513

486,667

Loss on disposal of discontinued operations, net of tax

12,691

9,948

Income tax expense

8,501

26,340

11,724

42,519

Non-operating pension settlement loss

3,153

3,153

Noncontrolling interest

25

179

104

239

Total non-operating adjustments

36,188

190,141

183,330

585,239

Amortization of intangible assets

16,089

18,351

64,395

74,609

Severance, restructuring, and acquisition integration costs

2,810

20,978

12,258

26,544

Amortization of software development intangible assets

576

318

1,821

525

Purchase accounting effects related to acquisitions

60

125

592

Total operating income adjustments

19,475

39,707

78,599

102,270

Depreciation expense

11,401

10,419

42,470

40,409

Adjusted EBITDA

$

74,000

$

92,859

$

249,237

$

350,903

GAAP net income (loss) margin

1.4

%

(26.8

)%

(3.0

)%

(17.7

)%

Adjusted EBITDA margin

14.8

%

16.9

%

13.4

%

16.5

%

GAAP net income (loss) attributable to Belden

$

6,936

$

(147,408

)

$

(55,162

)

$

(377,015

)

Operating income adjustments from above

19,475

39,707

78,599

102,270

Loss (gain) from discontinued operations, net of tax

(3,882

)

149,759

99,513

486,667

Loss on disposal of discontinued operations, net of tax

12,691

9,948

Non-operating pension settlement loss

3,153

3,153

Tax effect of adjustments above

2,172

12,796

(12,515

)

(1,948

)

Adjusted net income attributable to Belden

$

40,545

$

54,854

$

123,536

$

209,974

GAAP net income (loss) attributable to Belden

$

6,936

$

(147,408

)

$

(55,162

)

$

(377,015

)

Loss (gain) from discontinued operations, net of tax

(3,882

)

149,759

99,513

486,667

Loss on disposal of discontinued operations, net of tax

12,691

9,948

Less: Preferred stock dividends

(18,437

)

GAAP net income from continuing operations attributable to Belden common stockholders

$

15,745

$

2,351

$

54,299

$

91,215

Adjusted net income attributable to Belden

$

40,545

$

54,854

$

123,536

$

209,974

Less: Preferred stock dividends

(18,437

)

Adjusted net income from continuing operations attributable to Belden common stockholders

$

40,545

$

54,854

$

123,536

$

191,537

GAAP income from continuing operations per diluted share attributable to Belden common stockholders

$

0.35

$

0.05

$

1.21

$

2.15

Adjusted income from continuing operations per diluted share attributable to Belden common stockholders

$

0.90

$

1.20

$

2.75

$

4.52

GAAP and adjusted diluted weighted average shares

44,848

45,684

44,937

42,416

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 tangible 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

Twelve Months Ended

December 31,

2020

December 31,

2019

December 31,

2020

December 31,

2019

(In thousands)

GAAP net cash provided by operating activities

$

134,675

$

187,376

$

173,364

$

276,893

Capital expenditures, net of proceeds from the disposal of tangible assets

(33,335

)

(35,928

)

(87,054

)

(109,977

)

Non-GAAP free cash flow

$

101,340

$

151,448

$

86,310

$

166,916

BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
2021 Earnings Guidance

Year Ended

Three Months Ended

December 31, 2021

April 4, 2021

(In thousands)

GAAP income from continuing operations per diluted share attributable to Belden common stockholders

$1.70 - $2.10

$0.22 - $0.32

Amortization of intangible assets

0.67

0.20

Severance, restructuring, and acquisition integration costs

0.45

0.10

Purchase accounting effects related to acquisitions

0.08

0.08

Adjusted income from continuing operations per diluted share attributable to Belden common stockholders

$2.90 - $3.30

$0.60 - $0.70

Our guidance for income from continuing operations per diluted share attributable to Belden common stockholders 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, purchase accounting effects related to acquisitions, severance, restructuring, and acquisition integration costs, gains (losses) recognized on the disposal of tangible 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 and any statements made by us concerning the subject matter of this release may contain forward-looking statements, including our expectations for the first quarter and full-year 2021 and the results of our restructuring program. Forward-looking statements also include any statements regarding future financial performance (including revenues, 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 lack of certainty as to the duration and magnitude of the impact of COVID-19 and the economic recovery from that impact; the results of the Company’s impairment analysis, which could reduce EPS, adjusted EPS, and various other financial metrics; the presence of substitute products in the marketplace; the inability of the Company to develop and introduce new products and competitive responses to our products; the increased prevalence of cloud computing; the inability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); the inability to achieve our strategic priorities in emerging markets; the inability to successfully complete and integrate acquisitions in furtherance of the Company’s strategic plan; foreign and domestic political, economic and other uncertainties, including changes in currency exchange rates; changes in tax laws and variability in the Company’s quarterly and annual effective tax rates; the impact of a challenging global economy or a downturn in served markets; the impact of changes in global tariffs and trade agreements; difficulty in forecasting revenue due to the unpredictable timing of orders related to customer projects; the competitiveness of the global markets in which we operate; volatility in credit and foreign exchange markets; the cost and availability of raw materials including copper, plastic compounds, electronic components, and other materials; the inability to obtain components in sufficient quantities on commercially reasonable terms; disruptions in the Company’s information systems including due to cyber-attacks; perceived or actual product failures; risks related to the use of open source software; disruption of, or changes in, the Company’s key distribution channels; the inability to retain senior management and key employees; 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; the impact of regulatory requirements and other legal compliance issues; 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 year ended December 31, 2019, filed with the SEC on February 11, 2020, as well as enhancements made to our risk factors throughout the year, including as disclosed in our first quarter 2020 Form 10-Q filed with the SEC on May 4, 2020. 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 a comprehensive product portfolio designed to meet the mission-critical network infrastructure needs of industrial and enterprise markets. With innovative solutions targeted at reliable and secure transmission of rapidly growing amounts of data, audio and video needed for today's applications, Belden is at the center of the global transformation to a connected world. Founded in 1902, the company is headquartered in St. Louis and has manufacturing capabilities in North and South America, Europe and Asia. For more information, visit us at www.belden.com or follow us on Twitter @BeldenInc.

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Contacts

Belden Investor Relations
314-854-8054
Investor.Relations@Belden.com