Belden delivers solid operating results in second quarter 2012
St. louis--(business wire)--belden inc. (nyse: bdc), a global leader in signal transmission solutions for mission-critical applications, today reported second quarter 2012 results for the period ended july 1, 2012. second quarter highlights generated record gross profit margin of 31.4%, increasing 220 basis points from 29.2% in the year-ago period; achieved operating profit margin of 12.1%, increasing 260 basis points sequentially and 120 basis points year over year; successfully completed the acquisition of miranda technologies, inc. in july 2012; purchased 776,240 shares of belden common stock for $25.0 million during the quarter, bringing the total program-to-date shares retired to 3.05 million under the previously announced share repurchase program; and guided full year 2012 adjusted revenue, inclusive of miranda, to a range of $1.95 – $1.97 billion and adjusted income from continuing operations per diluted share to a range of $2.95 – $3.05. second quarter results revenue for the quarter totaled $484.0 million, up 4% compared to $464.3 million in the first quarter 2012. income from continuing operations per diluted share for the quarter totaled $0.92, compared to $0.52 per diluted share in the first quarter 2012 and $0.72 per diluted share in the second quarter 2011. the effective tax rate for the quarter was less than the 25.0% rate estimated in the company’s previous guidance due to the timing within the year of favorable discrete tax items, which had a positive impact of $0.17 per diluted share. john stroup, president and ceo of belden inc., commented, "i am pleased with our second quarter results, including margin expansion both sequentially and year over year in all segments. our ability to improve financial results in this challenging macroeconomic environment is a testament to our improved business portfolio, robust business systems and a talented team. weakness in southern europe and china was partially offset by strong performance in the americas and germany. we believe we’re navigating the current business climate well, and we are implementing responsible cost measures to ensure a strong position going forward.” outlook “while i’m pleased with our execution, macroeconomic uncertainty is a concern. therefore, we remain committed to funding our growth initiatives while closely managing our overall cost structure,” said mr. stroup. for the full year 2012, the company expects adjusted revenues to be $1.95 – $1.97 billion and adjusted income from continuing operations per diluted share to be $2.95 – $3.05. this guidance includes miranda, with an adjusted impact of $80 million of revenue and $0.14 of income from continuing operations per diluted share. additionally, 2012 guidance now excludes the full year expense related to the amortization of intangible assets from prior period acquisitions, with a favorable impact of $0.15 on income from continuing operations per diluted share. for comparison against our future adjusted results, the attached appendix for reconciliation of non-gaap measures sets forth year to date and prior year results on a comparably adjusted basis. “we expect our third quarter 2012 adjusted revenues to be $490 – $500 million and adjusted income from continuing operations per diluted share to be $0.69 – $0.74.” adjusted results are non-gaap measures that reflect certain adjustments the company makes to provide insight into operating results. the company’s outlook excludes restructuring activities, purchase accounting effects related to acquisitions, amortization of intangible assets from prior period acquisitions, and revenue and cost of sale deferrals. 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. forward looking statements statements in this release other than historical facts are "forward looking statements" made in reliance upon the safe harbor of the private securities litigation reform act of 1995. forward looking statements include any 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. they are not guarantees of future performance and they involve risk and uncertainty. the company's actual results may differ materially from these expectations. changes in the global economy may impact the company's results. turbulence in financial markets may increase the company's borrowing costs. additional factors that may cause actual results to differ from the company's expectations include: the company's reliance 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 cable, connectivity and networking industries; 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, 2011, filed with the sec on february 29, 2012. belden disclaims any duty to update any forward looking statements as a result of new information, future developments, or otherwise. about belden st. louis-based belden inc. designs, manufactures, and markets cable, connectivity, and networking products in markets including industrial automation, enterprise, transportation, infrastructure, and consumer electronics. it has approximately 6,900 employees, and provides value for industrial automation, enterprise, education, healthcare, entertainment and broadcast, sound and security, transportation, infrastructure, consumer electronics and other industries. belden has manufacturing capabilities in north america, south america, europe, and asia, and a market presence in nearly every region of the world. belden was founded in 1902, and today is a leader with some of the strongest brands in the signal transmission industry. for more information, visit www.belden.com. three months ended july 1, 2012 (in thousands) three months ended july 3, 2011 six months ended july 1, 2012 six months ended july 3, 2011 three months ended july 1, 2012 three months ended july 3, 2011 six months ended july 1, 2012 six months ended july 3, 2011 adjusted revenues (3) diluted share (3) belden inc. reconciliation of non-gaap measures 2011 and ytd 2012 (unaudited) acquisitions of networking and connectivity companies are critical to our long-term strategy, and miranda is an example of an acquisition that we made in our networking platform. we expect to acquire additional networking and connectivity companies as we continue to expand. connectivity and networking companies tend to have technology and other attributes that result in a greater portion of their value being attributed to intangible assets. we believe that presenting operating results adjusted for certain items, including amortization of intangible assets, is useful for investors because it provides important insights into how management oversees our business operations on a day-to-day basis, including when comparing actual results to budgeted operating results. in addition to excluding amortization of intangibles, adjusted results may exclude the effects of asset impairments, purchase accounting effects related to acquisitions, revenue and cost of sales deferrals, severance charges, accelerated depreciation, gains (losses) recognized on the disposal of tangible assets, and other costs. adjusted revenues and income from continuing operations also exclude the impact of any deferral of revenues and cost of sales required under revenue recognition rules applicable to our acquired miranda operations. adjusted results should be considered only in conjunction with results reported according to accounting principles generally accepted in the united states. we present below a reconciliation, quarterly and full year, for 2011 and for the first and second quarters of 2012 of our gaap operating income to adjusted (non-gaap) income from continuing operations per diluted share. the adjusted results exclude amortization of intangibles, asset impairments, and severance and restructuring charges that were incurred during the covered periods. the results of miranda are excluded from this reconciliation because we completed the acquisition in the third quarter of 2012. we have not presented a reconciliation of non-gaap measures for the third quarter and full year 2012 guidance because we are unable to estimate the adjustment amounts.
