Belden reports record revenues in the third quarter 2014
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 2014 results for the period ended september 28, 2014. third quarter 2014 highlights grew revenues by 16.9% from the year-ago period; achieved record adjusted gross profit margins of 37.6%, an increase of 160 basis points from 36.0% in the third quarter 2013; delivered a record $85.6 million in adjusted operating profit in the third quarter, and expanded adjusted operating profit margins 100 basis points sequentially to 14.0%; generated record adjusted income from continuing operations per diluted share of $1.15, an increase of 21% from $0.95 in the prior year period; and purchased 431,746 shares of belden common stock for $31.0 million during the quarter. third quarter 2014 on a gaap basis, revenues for the quarter totaled $610.8 million and were a company record. revenues were up $88.3 million, or 16.9%, compared to $522.5 million in the third quarter 2013. gross profit margin in the third quarter was 36.3%, increasing 130 basis points from 35.0% in the year-ago period. operating profit margin in the third quarter was 9.5%, increasing 740 basis points from the previous quarter and decreasing 80 basis points from the year-ago period. income from continuing operations per diluted share was $0.77, compared to $0.65 in the third quarter 2013, an increase of 18.5% year over year. adjusted revenues for the quarter totaled $613.1 million and were also a company record. adjusted revenues were up $87.5 million, or 16.7%, compared to $525.6 million in the third quarter 2013. adjusted gross profit margin in the third quarter was 37.6%, increasing 160 basis points from 36.0% in the year-ago period. adjusted operating profit margin in the third quarter was 14.0%, increasing 100 basis points from previous quarter and decreasing 20 basis points from 14.2% in the year-ago period. adjusted income from continuing operations per diluted share totaled $1.15, an increase of 21% compared to $0.95 in the third quarter 2013. adjusted amounts 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, “i’m pleased with our record results including revenues of $613.1 million, earnings per share of $1.15, and gross profit margins of 37.6%. sequential operating profit margin improvement was a highlight and a result of the progress made within grass valley. overall, the business performed as expected, with revenue growth in our broadcast and industrial platforms offsetting the portfolio improvement initiatives within our enterprise connectivity business.” outlook “despite a strengthening us dollar and european uncertainty, i’m pleased to provide a full-year earnings forecast consistent with the prior quarter and exceeding the guidance communicated one year ago. i’m confident in our ability to navigate these challenges given our proven business system and focus on attractive end markets. i look forward to sharing full year 2015 guidance during our financial analyst and investor day on december 2,” said mr. stroup. the company expects fourth quarter 2014 adjusted revenues to be $590 – $610 million, which incorporates the impact of both a stronger us dollar and lower commodity prices. adjusted income from continuing operations per diluted share is expected to be $1.15 – $1.25. for the full year ending december 31, 2014, the company now expects adjusted revenues to be $2.30 – $2.32 billion and adjusted income from continuing operations per diluted share to be $4.15 – $4.25. previously, the company expected full year adjusted revenues to be $2.30 - $2.35 billion and adjusted income from continuing operations per diluted share to be $4.10 - $4.30. on a gaap basis, the company expects fourth quarter 2014 revenues to be $588 – $608 million and income from continuing operations per diluted share to be $0.55 – $0.65. for the full year ending december 31, 2014, the company now expects revenues to be $2.29 – $2.31 billion and income from continuing operations per diluted share to be $1.90 – $2.00. previously, the company expected full year revenues to be $2.28 - $2.33 billion and income from continuing operations per diluted share to be $1.68 - $1.88. earnings conference call management will host a conference call today at 10:30 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. an accompanying slide presentation and transcript of the prepared remarks will be available for download shortly before the call begins. the dial-in number for participants in the u.s. is 888-599-8685; the dial-in number for participants outside the u.s. is 913-312-0403. a replay of this conference call will remain accessible in the investor relations section of the company’s web site for a limited time. changes in operating assets and liabilities, net of the effects of currency exchange rate changes and acquired businesses: broadcast solutions enterprise connectivity solutions industrial connectivity solutions industrial it solutions income from equity method investment broadcast solutions enterprise connectivity solutions industrial connectivity solutions industrial it solutions income from equity method investment capital expenditures, net of proceeds from the disposal of tangible assets non-recurring tax payments made for gain on 2012 sale of thermax and raydex cable business non-recurring tax payments made in settlement of tax sharing agreement with cooper industries cash paid for severance and other costs for the integration of our acquisition of grass valley 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. all gaap to non-gaap reconciliations accompany the 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 forward looking statements including our expectations for the fourth quarter and full-year 2014. forward looking statements also include any other statements regarding future revenues, costs and expenses, operating income, earnings per share, margins, cash flows, dividends, and capital expenditures. these forward looking statements are based on forecasts and projections about the markets and industries served by the company and about general economic conditions. they reflect management’s current beliefs and expectations and are not guarantees of future performance. the company’s actual results may differ materially from these expectations for a number of reasons including: changes in the global economy may impact the company’s results; turbulence in financial markets may increase the company’s borrowing costs; the company relies on key distributors in marketing products; the company’s ability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); changes in the level of economic activity in the company’s major geographic markets; difficulties in realigning manufacturing capacity and capabilities among the company’s global manufacturing facilities; the competitiveness of the global broadcast, enterprise, and industrial markets; variability in the company’s quarterly and annual effective tax rates; changes in accounting rules and interpretation of these rules which may affect the company’s reported earnings; changes in currency exchange rates and political and economic uncertainties in the countries where the company conducts business; demand for the company’s products; the cost and availability of materials including copper, plastic compounds derived from fossil fuels, electronic components, and other materials; energy costs; the company’s ability to achieve acquisition performance expectations and to integrate acquired businesses successfully; the ability of the company to develop and introduce new products; the company having to recognize charges that would reduce income as a result of impairing goodwill and other intangible assets; security risks and the potential for business interruption from operating in volatile countries; disruptions or failures of the company’s (or the company’s suppliers or customers) systems or operations in the event of a major earthquake, weather event, cyber-attack, terrorist attack, or other catastrophic event that could cause delays in completing sales, providing services, or performing other mission-critical functions; 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, 2013, filed with the sec on february 27, 2014. 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
