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Belden Reports Results for Fourth Quarter and Full Year 2019

·9 min read

Belden Inc. (NYSE:BDC), a leading global supplier of specialty networking solutions, today reported fiscal fourth quarter and full year 2019 results for the period ended December 31, 2019.

Fourth Quarter 2019

Revenues for the quarter totaled $549.7 million, decreasing $2.4 million, or 0.4%, compared to $552.1 million in the prior-year period. EPS totaled $0.05 compared to $0.68 in the fourth quarter 2018.

Adjusted EPS was $1.20 compared to $1.26 in the fourth quarter 2018. Adjusted results are non-GAAP measures, and a non-GAAP reconciliation table is provided as an appendix to this release.

John Stroup, President, CEO, and Chairman of Belden Inc., said, "I am pleased to report revenues and adjusted EPS above the high end of our guidance ranges for the fourth quarter. We delivered healthy organic growth after adjusting for changes in channel inventory levels a year ago, which demonstrates the enhanced growth potential of our improved portfolio of businesses."

Full Year 2019

Revenues for the year totaled $2.131 billion, compared to $2.166 billion in the full year 2018. EPS was $2.15 compared to $3.23 in 2018. Adjusted EPS was $4.52 compared to $4.67 in 2018.

Mr. Stroup remarked, "2019 was highlighted by the significant actions we initiated following our comprehensive strategic portfolio review. These include the recently announced divestiture of Grass Valley, the ongoing $40 million cost reduction program, and our planned exit of approximately $250 million in undifferentiated copper cable product lines. These actions will result in an improved portfolio of businesses that is aligned with favorable secular trends in industrial automation, cybersecurity, broadband & 5G, and smart buildings."

Outlook

"2020 will be a year of continued transformation as we position the Company for profitable growth. Near-term demand trends are challenging, but I am optimistic about our ability to achieve our financial goals and drive superior returns for our shareholders going forward," said Mr. Stroup.

The Company expects first quarter 2020 revenues to be $485 - $505 million. For the year ending December 31, 2020, the Company expects revenues to be $2.060 - $2.140 billion.

The Company expects first quarter 2020 GAAP EPS to be $0.23 - $0.38. For the year ending December 31, 2020, the Company expects GAAP EPS to be of $2.76 - $3.26.

The Company expects first quarter 2020 adjusted EPS to be $0.70 - $0.85. For the year ending December 31, 2020, the Company expects adjusted EPS of $4.25 - $4.75.

Earnings Conference Call

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

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 http://investor.belden.com.

BELDEN INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31, 2019

December 31, 2018

December 31, 2019

December 31, 2018

(In thousands, except per share data)

Revenues

$

549,688

$

552,052

$

2,131,278

$

2,165,702

Cost of sales

(346,916

)

(335,058

)

(1,337,773

)

(1,335,791

)

Gross profit

202,772

216,994

793,505

829,911

Selling, general and administrative expenses

(118,675

)

(104,814

)

(417,329

)

(411,352

)

Research and development expenses

(22,346

)

(22,223

)

(94,360

)

(91,552

)

Amortization of intangibles

(18,351

)

(18,693

)

(74,609

)

(75,140

)

Gain from patent litigation

62,141

Operating income

43,400

71,264

207,207

314,008

Interest expense, net

(13,863

)

(14,639

)

(55,814

)

(60,839

)

Non-operating pension benefit (cost)

(667

)

(1,108

)

1,017

(99

)

Loss on debt extinguishment

(22,990

)

Income from continuing operations before taxes

28,870

55,517

152,410

230,080

Income tax expense

(26,340

)

(19,552

)

(42,519

)

(62,936

)

Income from continuing operations

2,530

35,965

109,891

167,144

Income (loss) from discontinued operations, net of tax

(149,759

)

7,526

(486,667

)

(6,433

)

Net income (loss)

(147,229

)

43,491

(376,776

)

160,711

Less: Net income (loss) attributable to noncontrolling interest

179

(35

)

239

(183

)

Net income (loss) attributable to Belden

(147,408

)

43,526

(377,015

)

160,894

Less: Preferred stock dividends

8,733

18,437

34,931

Net income (loss) attributable to Belden common stockholders

$

(147,408

)

$

34,793

$

(395,452

)

$

125,963

Weighted average number of common shares and equivalents:

Basic

45,457

39,830

42,203

40,675

Diluted

45,684

40,031

42,416

40,956

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

Continuing operations attributable to Belden common stockholders

$

0.05

$

0.68

$

2.16

$

3.25

Discontinued operations attributable to Belden common stockholders

(3.29

)

0.19

(11.53

)

(0.16

)

Net income (loss) attributable to Belden common stockholders

$

(3.24

)

$

0.87

$

(9.37

)

$

3.10

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

Continuing operations attributable to Belden common stockholders

$

0.05

$

0.68

$

2.15

$

3.23

Discontinued operations attributable to Belden common stockholders

(3.29

)

0.19

(11.53

)

(0.16

)

Net income (loss) attributable to Belden common stockholders

$

(3.24

)

$

0.87

$

(9.37

)

$

3.08

Common stock dividends declared per share

$

0.05

$

0.05

$

0.20

$

0.20

BELDEN INC.

OPERATING SEGMENT INFORMATION

(Unaudited)

Enterprise

Industrial

Total

Solutions

Solutions

Segments

(In thousands, except percentages)

For the three months ended December 31, 2019

Segment Revenues

$

280,196

$

269,492

$

549,688

Segment EBITDA

42,988

50,787

93,775

Segment EBITDA margin

15.3

%

18.8

%

17.1

%

Depreciation expense

5,384

5,035

10,419

Amortization of intangibles

5,924

12,427

18,351

Amortization of software development intangible assets

55

263

318

Severance, restructuring, and acquisition integration costs

5,479

15,499

20,978

Purchase accounting effects of acquisitions

60

60

For the three months ended December 31, 2018

Segment Revenues

$

277,352

$

274,700

$

552,052

Segment EBITDA

50,046

53,536

103,582

Segment EBITDA margin

18.0

%

19.5

%

18.8

%

Depreciation expense

4,975

4,699

9,674

Amortization of intangibles

5,497

13,196

18,693

Amortization of software development intangible assets

35

8

43

Severance, restructuring, and acquisition integration costs

746

1,424

2,170

Purchase accounting effects of acquisitions

1,138

1,138

For the twelve months ended December 31, 2019

Segment Revenues

$

1,081,232

$

1,050,046

$

2,131,278

Segment EBITDA

162,276

188,947

351,223

Segment EBITDA margin

15.0

%

18.0

%

16.5

%

Depreciation expense

20,765

19,644

40,409

Amortization of intangibles

23,500

51,109

74,609

Amortization of software development intangible assets

175

350

525

Severance, restructuring, and acquisition integration costs

11,050

15,494

26,544

Purchase accounting effects of acquisitions

592

592

For the twelve months ended December 31, 2018

Segment Revenues

$

1,095,900

$

1,069,802

$

2,165,702

Segment EBITDA

190,910

203,746

394,656

Segment EBITDA margin

17.4

%

19.0

%

18.2

%

Depreciation expense

19,374

18,935

38,309

Amortization of intangibles

22,255

52,885

75,140

Amortization of software development intangible assets

71

8

79

Severance, restructuring, and acquisition integration costs

14,863

7,762

22,625

Purchase accounting effects of acquisitions

1,690

1,690

BELDEN INC.

OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31, 2019

December 31, 2018

December 31, 2019

December 31, 2018

(In thousands)

Total Segment Revenues

$

549,688

$

552,052

$

2,131,278

$

2,165,702

Deferred revenue adjustments

Consolidated Revenues

$

549,688

$

552,052

$

2,131,278

$

2,165,702

Total Segment EBITDA

$

93,775

$

103,582

$

351,223

$

394,656

Eliminations

(249

)

(600

)

(1,337

)

(2,218

)

Total non-operating pension benefit (cost)

(667

)

(1,108

)

1,017

(99

)

Non-operating pension settlement loss

1,342

1,342

Consolidated Adjusted EBITDA (1)

92,859

103,216

350,903

393,681

Amortization of intangibles

(18,351

)

(18,693

)

(74,609

)

(75,140

)

Interest expense, net

(13,863

)

(14,639

)

(55,814

)

(60,839

)

Depreciation expense

(10,419

)

(9,674

)

(40,409

)

(38,309

)

Severance, restructuring, and acquisition integration costs

(20,978

)

(2,170

)

(26,544

)

(22,625

)

Loss on debt extinguishment

(22,990

)

Amortization of software development intangible assets

(318

)

(43

)

(525

)

(79

)

Purchase accounting effects related to acquisitions

(60

)

(1,138

)

(592

)

(1,690

)

Loss on sale of assets

(94

)

Non-operating pension settlement loss

(1,342

)

(1,342

)

Costs related to patent litigation

(2,634

)

Gain from patent litigation

62,141

Income from continuing operations before taxes

$

28,870

$

55,517

$

152,410

$

230,080

(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, 2019

December 31, 2018

(Unaudited)

(In thousands)

ASSETS

Current assets:

Cash and cash equivalents

$

407,480

$

407,454

Receivables, net

334,634

335,956

Inventories, net

231,333

265,002

Other current assets

29,172

30,590

Current assets of discontinued operations

375,135

219,722

Total current assets

1,377,754

1,258,724

Property, plant and equipment, less accumulated depreciation

345,918

310,960

Operating lease right-of-use assets

62,251

Goodwill

1,243,669

1,206,877

Intangible assets, less accumulated amortization

339,505

359,931

Deferred income taxes

25,216

26,459

Other long-lived assets

12,446

13,249

Long-term assets of discontinued operations

603,121

$

3,406,759

$

3,779,321

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

268,466

$

297,498

Accrued liabilities

283,799

272,396

Current liabilities of discontinued operations

170,279

147,028

Total current liabilities

722,544

716,922

Long-term debt

1,439,484

1,463,200

Postretirement benefits

136,227

127,748

Deferred income taxes

48,725

36,109

Long-term operating lease liabilities

55,652

Other long-term liabilities

38,308

30,140

Long-term liabilities of discontinued operations

...

17,614

Stockholders’ equity:

Preferred stock

1

Common stock

503

503

Additional paid-in capital

811,955

1,139,395

Retained earnings

518,004

922,000

Accumulated other comprehensive loss

(63,418

)

(74,907

)

Treasury stock

(307,197

)

(599,845

)

Total Belden stockholders’ equity

959,847

1,387,147

Noncontrolling interest

5,972

441

Total stockholders’ equity

965,819

1,387,588

$

3,406,759

$

3,779,321

BELDEN INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(Unaudited)

Twelve Months Ended

December 31, 2019

December 31, 2018

(In thousands)

Cash flows from operating activities:

Net income (loss)

$

(376,776

)

160,711

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Asset impairment of discontinued operations

521,441

Depreciation and amortization

139,259

148,632

Share-based compensation

17,751

18,497

Loss on debt extinguishment

22,990

Deferred income tax expense (benefit)

(23,540

)

11,300

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

Receivables

22,926

(21,748

)

Inventories

44,477

(14,779

)

Accounts payable

(41,527

)

(29,401

)

Accrued liabilities

(17,654

)

17,238

Income taxes

5,497

(4,390

)

Other assets

(16,118

)

(18,748

)

Other liabilities

1,157

(1,082

)

Net cash provided by operating activities

276,893

289,220

Cash flows from investing activities:

Capital expenditures

(110,002

)

(97,847

)

Cash used to acquire businesses, net of cash acquired

(74,392

)

(84,580

)

Proceeds from disposal of tangible assets

25

1,580

Proceeds from disposal of business

40,171

Net cash used for investing activities

(184,369

)

(140,676

)

Cash flows from financing activities:

Payments under borrowing arrangement

(484,757

)

Payments under share repurchase program

(50,000

)

(175,000

)

Cash dividends paid

(34,439

)

(43,169

)

Debt issuance costs paid

(7,609

)

Witholding tax payment payments for share-based payment awards

(2,149

)

(2,094

)

Redemption of stockholders' rights agreement

(411

)

Other

(360

)

Borrowings under credit arrangements

431,270

Net cash used for financing activities

(86,948

)

(281,770

)

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

(301

)

(7,272

)

Increase (decrease) in cash and cash equivalents

5,275

(140,498

)

Cash and cash equivalents, beginning of period

420,610

561,108

Cash and cash equivalents, end of period

$

425,885

$

420,610

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,
2019

December 31,
2018

December 31,
2019

December 31,
2018

(In thousands, except percentages and per share amounts)

GAAP revenues

$

549,688

$

552,052

$

2,131,278

$

2,165,702

Deferred revenue adjustments

Adjusted revenues

$

549,688

$

552,052

$

2,131,278

$

2,165,702

GAAP gross profit

$

202,772

$

216,994

$

793,505

$

829,911

Severance, restructuring, and acquisition integration costs

2,333

1,979

3,425

17,962

Purchase accounting effects related to acquisitions

60

592

27

Amortization of software development intangible assets

318

43

525

79

Adjusted gross profit

$

205,483

$

219,016

$

798,047

$

847,979

GAAP gross profit margin

36.9

%

39.3

%

37.2

%

38.3

%

Adjusted gross profit margin

37.4

%

39.7

%

37.4

%

39.2

%

GAAP selling, general and administrative expenses

$

(118,675

)

$

(104,813

)

$

(417,329

)

$

(411,352

)

Severance, restructuring, and acquisition integration costs

18,645

191

23,119

4,546

Costs related to patent litigation

2,634

Purchase accounting effects related to acquisitions

1,138

1,663

Loss on sale of assets

94

Adjusted selling, general and administrative expenses

$

(100,030

)

$

(103,484

)

$

(394,210

)

$

(402,415

)

GAAP research and development expenses

$

(22,346

)

$

(22,223

)

$

(94,360

)

$

(91,552

)

Severance, restructuring, and acquisition integration costs

117

Adjusted research and development expenses

$

(22,346

)

$

(22,223

)

$

(94,360

)

$

(91,435

)

GAAP net income (loss) attributable to Belden

$

(147,408

)

$

43,526

$

(377,015

)

$

160,894

Loss (income) from discontinued operations, net of tax

149,759

(7,526

)

486,667

6,433

Interest expense, net

13,863

14,639

55,814

60,839

Income tax expense

26,340

19,552

42,519

62,936

Non-operating pension settlement loss

1,342

1,342

Loss on debt extinguishment

22,990

Noncontrolling interests

179

(35

)

239

(183

)

Total non-operating adjustments

190,141

27,972

585,239

154,357

Amortization of intangible assets

18,351

18,693

74,609

75,140

Severance, restructuring, and acquisition integration costs

20,978

2,170

26,544

22,625

Costs related to patent litigation

2,634

Purchase accounting effects related to acquisitions

60

1,138

592

1,690

Amortization of software development intangible assets

318

43

525

79

Loss on sale of assets

94

Gain from patent litigation

(62,141

)

Total operating income adjustments

39,707

22,044

102,270

40,121

Depreciation expense

10,419

9,674

40,409

38,309

Adjusted EBITDA

$

92,859

$

103,216

$

350,903

$

393,681

GAAP net income (loss) margin

(26.8

)%

7.9

%

(17.7

)%

7.4

%

Adjusted EBITDA margin

16.9

%

18.7

%

16.5

%

18.2

%

GAAP net income (loss) attributable to Belden

$

(147,408

)

$

43,526

$

(377,015

)

$

160,894

Operating income adjustments from above

39,707

22,044

102,270

40,121

Loss (income) from discontinued operations, net of tax

149,759

(7,526

)

486,667

6,433

Non-operating pension settlement loss

1,342

1,342

Loss on debt extinguishment

22,990

Tax effect of adjustments above

12,796

(359

)

(1,948

)

(5,351

)

Amortization expense attributable to noncontrolling interest, net of tax

(16

)

(66

)

Adjusted net income attributable to Belden

$

54,854

$

59,011

$

209,974

$

226,363

GAAP net income (loss) attributable to Belden

$

(147,408

)

$

43,526

$

(377,015

)

$

160,894

Loss (income) from discontinued operations, net of tax

149,759

(7,526

)

486,667

6,433

Less: Preferred stock dividends

(8,733

)

(18,437

)

(34,931

)

GAAP net income attributable to Belden common stockholders

$

2,351

$

27,267

$

91,215

$

132,396

Adjusted net income attributable to Belden

$

54,854

$

59,011

209,974

226,363

Less: Preferred stock dividends

(8,733

)

(18,437

)

(34,931

)

Adjusted net income attributable to Belden common stockholders

$

54,854

50,278

191,537

191,432

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

$

0.05

$

0.68

$

2.15

$

3.23

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

$

1.20

$

1.26

$

4.52

$

4.67

GAAP and adjusted diluted weighted average shares

45,684

40,031

42,416

40,956

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,
2019

December 31,
2018

December 31,
2019

December 31,
2018

(In thousands)

GAAP net cash provided by operating activities

$

187,376

$

188,361

$

276,893

$

289,220

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

(35,928

)

(34,372

)

(109,977

)

(96,267

)

Non-GAAP free cash flow

$

151,448

$

153,989

$

166,916

$

192,953

BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
2020 EARNINGS GUIDANCE

Three Months Ended
March 29, 2020

Year Ended
December 31, 2020

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

$0.70 - $0.85

$4.25 - $4.75

Amortization of intangible assets

(0.29

)

(1.14

)

Severance, restructuring, and acquisition integration costs

(0.18

)

(0.35

)

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

$0.23 - $0.38

$2.76 - $3.26

Our guidance for income 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 release may contain forward-looking statements including our expectations for the first quarter and full-year 2020, the Grass Valley divestment plan and the results of our restructuring program. Forward-looking statements include 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 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 increased influence of chief information officers and similar high-level executives; 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 successfully complete and integrate acquisitions in furtherance of the Company’s strategic plan; 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; 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 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 quarter ended December 31, 2018, filed with the SEC on February 20, 2019. 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