Belden reports solid results in first 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 first quarter 2014 results for the period ended march 30, 2014. first quarter 2014 highlights achieved adjusted income from continuing operations per diluted share of $0.80; expanded adjusted gross profit margins to 36.1%, increasing 160 basis points from 34.5% in the year-ago period; completed the purchase of grass valley for $220 million, a leader in innovative solutions within the broadcast market; and raised full year guidance for fiscal 2014 adjusted revenues to $2.30 - $2.35 billion and adjusted income from continuing operations per diluted share to $4.05 - $4.35. first quarter 2014 on a gaap basis, revenues for the quarter totaled $487.7 million, down $19.8 million, or 3.9%, compared to $507.5 million in the first quarter 2013. gross profit margin in the first quarter was 36.0%, increasing 300 basis points from 33.0% in the year-ago period. operating profit margin in the first quarter was 10.2%, increasing from 8.7% in the year-ago period. income from continuing operations per diluted share totaled $0.57, compared to $0.49 in the first quarter 2013, a year-over-year increase of 16.3%. adjusted revenues for the quarter totaled $488.3 million, down $22.1 million, or 4.3%, compared to $510.4 million in the first quarter 2013. adjusted gross profit margin in the first quarter was 36.1%, increasing 160 basis points from 34.5% in the year-ago period. adjusted operating profit margin in the first quarter was 13.1%, consistent with the year-ago period. adjusted income from continuing operations per diluted share totaled $0.80, compared to $0.84 in the first quarter 2013. a non-gaap reconciliation table is provided as an appendix to this release. john stroup, president and ceo of belden inc., said, “despite a reduction in revenue, due to difficult prior year comparisons and unforeseen adjustments in channel inventory, i’m pleased with gross margin expansion of 160 basis points. i’m especially proud of the results of our broadcast platform that benefitted from leverage on strong growth.” outlook “we are pleased to have completed the acquisition of grass valley, and we have incorporated the expected financial benefits into our q2 and full year outlook. the benefits of our lean enterprise initiative are also included in our updated guidance. shorter lead times allow our channel partners to operate effectively with reduced inventory levels. additionally, we’ve identified opportunities to improve our sg&a cost structure, and we intend to execute this plan quickly. this will have a favorable impact to our results in the second half of 2014, continuing through 2015,” said mr. stroup. the company expects second quarter 2014 adjusted revenues to be $585 – $605 million and adjusted income from continuing operations per diluted share to be $0.95 – $1.05. for the full year ending december 31, 2014, the company now expects adjusted revenues to be $2.30 – $2.35 billion and adjusted income from continuing operations per diluted share to be $4.05 – $4.35. previously, the company expected full year adjusted revenues of $2.11 - $2.15 billion and adjusted income from continuing operations per diluted share of $3.81 - $4.11. these amounts now include the expected results of grass valley and benefits of the above mentioned sg&a cost actions. on a gaap basis, the company expects second quarter 2014 revenues to be $579 – $599 million and income (loss) from continuing operations per diluted share to be $(0.03) – $0.07. for the full year ending december 31, 2014, the company now expects revenues to be $2.28 – $2.33 billion and income from continuing operations per diluted share to be $2.11 – $2.41. previously, the company expected full year revenues of $2.10 - $2.14 billion and income from continuing operations per diluted share of $2.95 - $3.25. these amounts now include the expected results of grass valley and the related impacts of purchase accounting, such as increased amortization of intangibles, as well as the restructuring costs and benefits resulting from both the grass valley integration and sg&a cost actions mentioned above. earnings conference call management will host a conference call today at 10:30 am edt to discuss results of the quarter and full-year. 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 888-599-8685; 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: 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 broadcast solutions enterprise connectivity solutions industrial connectivity solutions industrial it solutions total segments income from equity method investment adjusted operating income margin broadcast solutions enterprise connectivity solutions industrial connectivity solutions industrial it solutions income from equity method investment 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 second 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 st. louis−based 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
