Belden reports results for fourth quarter and full year 2017
St. louis--(business wire)--belden inc. (nyse: bdc), a global leader in high quality, end-to-end signal transmission solutions for mission-critical applications, today reported fiscal fourth quarter and full year 2017 results for the period ended december 31, 2017. fourth quarter 2017 on a gaap basis, revenues for the quarter totaled $604.9 million, declining 1.2% from $612.4 million in the prior-year period. net income was $30.5 million, a decrease of $2.9 million, or 8.7%, compared to $33.4 million in the year-ago period. net income was impacted by a one-time charge of $28.4 million related to the enactment of the tax cuts and jobs act (“tcja”). net income as a percentage of revenues was 5.0%, decreasing 40 basis points from 5.4% in the prior-year period. eps totaled $0.51 compared to $0.58 in the fourth quarter 2016. the one-time charge as a result of the tcja enactment had an eps impact of $0.67. the $604.9 million of quarterly revenue represents a decrease of $3.3 million, or 0.6%, compared to adjusted revenue of $608.2 million in the fourth quarter 2016. adjusted ebitda margin was 18.2%, decreasing 190 basis points compared to 20.1% in the year-ago period. adjusted eps was $1.62, increasing 14.1% compared to $1.42 in the fourth quarter 2016. 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, “most of our businesses performed in line with our expectations, with the exception of an isolated situation in our broadcast solutions segment. we had expected to recognize revenue on $36 million of product that was shipped in 2017, but we were unable to do so as a result of technical u.s. gaap revenue recognition requirements identified by our team during the year-end closing process. as a result, these 2017 shipments will now be recognized as revenue in 2018 and will be additive to the revenue that we otherwise would have anticipated.” full year 2017 on a gaap basis, revenue for the year totaled $2.389 billion, up 1.4% compared to $2.357 billion in the full year 2016. net income was $93.2 million, a decrease of $34.8 million compared to $128.0 million in 2016. net income was impacted by a $32.2 million after-tax loss on debt extinguishment related to our debt refinancing and repayment during the year. in addition, net income was impacted by a one-time charge of $28.4 million related to the enactment of the tcja. net income as a percentage of revenue was 3.9% for the full year compared to 5.4% in 2016. eps was $1.37 compared to $2.65 in 2016. the $2.389 billion of annual revenue represents an increase of $30.8 million, or 1.3%, over the adjusted revenues of $2.358 billion in 2016. adjusted ebitda margin was 18.2%, declining 10 basis points compared to 18.3% in 2016. adjusted net income was $265.0 million, increasing $25.0 million, or 10.4%, compared to $240.0 million in 2016. adjusted eps increased 1.5% to $5.35, compared to $5.27 in 2016. mr. stroup remarked, “2017 was highlighted by significant improvements to our balance sheet and disciplined capital deployment. we are pleased with the acquisition of thinklogical and increased investment in organic initiatives, which we expect to drive meaningful growth in future periods.” outlook “i am optimistic about our opportunities to drive meaningful organic and inorganic growth, as we continue to pursue a number of attractive acquisition opportunities that complement our strategic plans. we also expect our proven lean enterprise system to continue to drive substantial margin expansion,” said mr. stroup. the company expects first quarter 2018 revenue to be $575 - $595 million. for the full year ending december 31, 2018, the company expects revenue to be $2.528 - $2.578 billion compared to the previously guided range of $2.492 - $2.542 billion. this $36.0 million increase reflects the delayed revenue recognition described above. the company expects first quarter 2018 gaap eps to be $0.37 - $0.47. for the full year ending december 31, 2018, the company now expects gaap eps to be $3.96 - $4.21, compared to the previously guided range of $4.33 - $4.58. the company expects first quarter 2018 adjusted eps to be $1.05 - $1.15. for the full year ending december 31, 2018, the company continues to expect adjusted eps of $5.95 - $6.20. this guidance includes an increase in eps related to the delayed revenue recognition and an offsetting impact of a higher effective tax rate due to the enactment of the tcja. 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 800-281-7973; the dial-in number for participants outside the u.s. is 323-794-2093. a replay of this conference call will remain accessible in the investor relations section of the company’s website for a limited time. net income and earnings per share (eps) all references to net income and eps within this earnings release refer to net income attributable to belden and income from continuing operations per diluted share attributable to belden common stockholders, respectively. use of non-gaap financial information adjusted results are non-gaap measures that reflect certain adjustments the company makes to provide insight into operating results. gaap to non-gaap reconciliations accompany the condensed consolidated financial statements included in this release and have been published to the investor relations section of the company’s website at http://investor.belden.com. belden inc. condensed consolidated statements of operations (unaudited) december 31,2017 december 31,2016 december 31,2017 december 31,2016 belden inc. operating segment information (unaudited) broadcastsolutions enterprisesolutions industrialsolutions networksolutions totalsegments belden inc. operating segment reconciliation to consolidated results (unaudited) december 31,2017 december 31,2016 december 31,2017 december 31,2016 (1) consolidated adjusted ebitda is a non-gaap measure. see reconciliation of non-gaap measures for additional information. belden inc. condensed consolidated balance sheets belden inc. condensed consolidated cash flow statements (unaudited) belden inc. reconciliation of non-gaap measures (unaudited) december 31,2017 december 31,2016 december 31,2017 december 31,2016 belden inc. reconciliation of non-gaap measures (unaudited) december 31,2017 december 31,2016 december 31,2017 december 31,2016 belden inc. reconciliation of non-gaap measures 2018 earnings guidance year endeddecember 31, 2018 three months endedapril 1, 2018 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 2018. 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 impact of a challenging global economy or a downturn in served markets; the competitiveness of the global broadcast, enterprise, and industrial markets; the inability to successfully complete and integrate acquisitions in furtherance of the company’s strategic plan; volatility in credit and foreign exchange markets; variability in the company’s quarterly and annual effective tax rates; the cost and availability of raw materials including copper, plastic compounds, electronic components, and other materials; disruption of, or changes in, the company’s key distribution channels; the inability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); disruptions in the company’s information systems including due to cyber-attacks; the inability of the company to develop and introduce new products and competitive responses to our products; 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; risks related to the use of open source software; the impact of regulatory requirements and other legal compliance issues; perceived or actual product failures; political and economic uncertainties in the countries where the company conducts business, including emerging markets; 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, 2016, filed with the sec on february 17, 2017. 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, enterprise and broadcast 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.
