Belden reports strong earnings in third quarter 2013
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 2013 results for the period ended september 29, 2013. third quarter highlights improved adjusted income from continuing operations per diluted share to $0.95, up 43.9% over last year’s $0.66; expanded adjusted gross margin to 36.0% on adjusted revenues of $525.6 million, increasing 290 basis points from 33.1% in the year-ago period; grew adjusted operating income margin to 14.2%, increasing 270 basis points from 11.5% in the year-ago period; purchased 514,738 shares of belden common stock for $31.25 million during the calendar quarter; and confirmed the higher-end of full-year guidance range for fiscal 2013 adjusted income from continuing operations per diluted share of $3.64 - $3.69. third quarter 2013 revenue for the quarter totaled $522.5 million, up $57.3 million, or 12.3%, compared to $465.2 million in the third quarter 2012. gross margin in the third quarter was 35.0%, increasing 520 basis points from 29.8% in the year-ago period. operating income margin in the third quarter was 10.3%, increasing from negative 2.9% in the year-ago period. income from continuing operations per diluted share totaled $0.65, compared to a loss of $1.24 in the third quarter 2012. adjusted revenue for the quarter totaled $525.6 million, up $57.6 million, or 12.3%, compared to $468.0 million in the third quarter 2012. adjusted gross margin in the third quarter was 36.0%, increasing 290 basis points from 33.1% in the year-ago period. adjusted operating income margin was 14.2%, increasing 270 basis points from 11.5% in the year-ago period. adjusted income from continuing operations per diluted share totaled $0.95, compared to $0.66 in the third quarter 2012. a reconciliation of non-gaap (adjusted) financial measures to comparable gaap financial measures is provided as an appendix to this release. john stroup, president and ceo of belden inc., said, “the quarter evolved as anticipated, with revenue and margins within our expected range. strength from our broadcast and industrial platforms offset weakness in the enterprise market. we are pleased with our adjusted gross and operating income margins of 36.0% and 14.2%, respectively; a direct result of our improved business portfolio and robust business systems.” outlook “macroeconomic uncertainty in combination with lower commodity prices has led us to slightly reduce our expectations for full-year revenue; however, we are confirming the high-end of our earnings outlook for the year. we remain focused on market share capture and margin expansion. when paired with our strong balance sheet and optimism around acquisition-related opportunities, we feel confident that belden is well positioned for success,” said mr. stroup. the company expects fourth quarter 2013 adjusted revenues to be $510 – $520 million and adjusted income from continuing operations per diluted share to be $0.86 – $0.91. for the full year ending december 31, 2013, the company now expects adjusted revenues to be $2.078 – $2.088 billion and adjusted income from continuing operations per diluted share to be $3.64 – $3.69. previously, the company expected full year adjusted revenues to be $2.09 - $2.12 billion and adjusted income from continuing operations per diluted share to be $3.54 - $3.69. on a gaap basis, the company expects fourth quarter 2013 revenues to be $506 – $516 million and income from continuing operations per diluted share to be $0.56 – $0.61. for the full year ending december 31, 2013, the company now expects revenues to be $2.065 – $2.075 billion and income from continuing operations per diluted share to be $2.36 – $2.41. previously, the company expected full year revenues to be $2.08 - $2.11 billion and income from continuing operations per diluted share to be $2.11 - $2.26. earnings conference call management will host a conference call today at 10:30 a.m. eastern 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 888-599-8685; 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 website for a limited time. 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 website at http://investor.belden.com. forward looking statements this release contains forward looking statements including our expectations for the fourth quarter and full-year 2013. 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 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, 2012, filed with the sec on february 28, 2013. 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 september 29, 2013 weighted average number of common shares and equivalents: 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 broadcastsolutions enterpriseconnectivitysolutions industrialconnectivitysolutions industrial itsolutions income fromequity methodinvestment broadcastsolutions enterpriseconnectivitysolutions industrialconnectivitysolutions industrial itsolutions income fromequity methodinvestment
