Belden reports strong results for third quarter 2016
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 third quarter 2016 results for the period ended october 2, 2016. third quarter 2016 on a gaap basis, revenues for the quarter totaled $601.1 million, increasing $21.8 million, or 3.8%, compared to $579.3 million in the third quarter 2015. gross profit margin in the third quarter was 40.9%, increasing 190 basis points from 39.0% in the year-ago period. net income was $35.7 million, increasing from $14.6 million in the prior-year period. net income as a percentage of revenues was 5.9% in the third quarter, increasing 340 basis points from 2.5% in the prior-year period. eps totaled $0.68, compared to $0.35 in the third quarter 2015. adjusted revenues for the quarter totaled $602.5 million, increasing 2.1%, compared to $590.1 million in the third quarter 2015. adjusted gross profit margin in the third quarter was 41.6%, increasing 80 basis points from the year-ago period. adjusted ebitda margin in the third quarter was 18.5%, increasing 200 basis points from 16.5% in the year-ago period. adjusted eps increased by 13.2% to $1.29 from $1.14 in the third quarter 2015. adjusted results are non-gaap measures, and a non-gaap reconciliation table is provided as an appendix to this release. john stroup, president and ceo of belden inc., said, “we are pleased to deliver another quarter of organic revenue growth, margin expansion and double-digit earnings growth. our team continues to execute well and our lean enterprise system is clearly driving sustainable productivity improvements and strong free cash flow.” outlook “our balanced portfolio and proven business system allow us to perform well under a variety of market situations. when paired with our strong balance sheet and optimism around acquisition-related opportunities, we feel confident belden is well-positioned for success,” said mr. stroup. on a gaap basis, the company expects fourth quarter 2016 revenues to be $604 – $624 million and eps to be $0.91 – $1.01. for the full year ending december 31, 2016, the company now expects revenues to be $2.348 – $2.368 billion compared to the previously guided range of $2.348 – $2.378 billion. the expected range of eps is now $2.94 – $3.04 compared to the previously guided range of $2.88 – $3.08. the company expects fourth quarter 2016 adjusted revenues to be $605 – $625 million and adjusted eps to be $1.36 – $1.46. for the full year ending december 31, 2016, the company now expects adjusted revenues to be $2.355 – $2.375 billion compared to the previously guided range of $2.355 – $2.385 billion. the expected range of adjusted eps is now $5.20 – $5.30 compared to the previously guided range of $5.15 – $5.35. earnings conference call management will host a conference call today at 8:30 am edt 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 888-287-5563; the dial-in number for participants outside the u.s. is 719-325-2432. a replay of this conference call will remain accessible in the investor relations section of the company’s web site for a limited time. broadcastsolutions enterpriseconnectivitysolutions industrialconnectivitysolutions industrialitsolutions network securitysolutions total segments for the three months ended october 2, 2016 for the three months ended september 27, 2015 for the nine months ended october 2, 2016 for the nine months ended september 27, 2015 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; 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. gaap gross profit margin ($0.54) 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 web site at http://investor.belden.com. forward-looking statements this release contains, and statements made by us concerning the release may contain, forward-looking statements, including our expectations for the fourth quarter, and full-year 2016. forward-looking statements also 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 cost and availability of raw materials including copper, plastic compounds, electronic components, and other materials; the competitiveness of the global broadcast, enterprise, and industrial markets; disruption of, or changes in, the company’s key distribution channels; volatility in credit and foreign exchange markets; the inability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); the inability to successfully complete and integrate acquisitions in furtherance of the company’s strategic plan; the inability of the company to develop and introduce new products and competitive responses to our products; 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 inability to retain senior management and key employees; disruptions in the company’s information systems including due to cyber-attacks; variability in the company’s quarterly and annual effective tax rates; 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; the impact of regulatory requirements and other legal compliance issues; 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, 2015, filed with the sec on february 25, 2016. 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. bdc-e
