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Press release from Business Wire

Belden Announces Formation of Global Business Segments

<p class='bwalignc'> Solution-Oriented Alignment Accelerates Ability to Capitalize on New Market Opportunities and to Bring Innovative Solutions to a Growing Customer Base </p>

Thursday, April 25, 2013

Belden Announces Formation of Global Business Segments

07:30 EDT Thursday, April 25, 2013

ST. LOUIS (Business Wire) -- Belden Inc. (NYSE: BDC), a global leader in signal transmission solutions for mission-critical applications, today announced that the company is now organized across four global business segments: Industrial Connectivity Solutions, Industrial Information Technology (IT) Solutions, Enterprise Connectivity Solutions, and Broadcast Solutions. These newly defined operating segments are a result of Belden's purposeful transformation to a global provider of comprehensive signal transmission solutions. Through this new solution-oriented alignment, Belden further strengthens its ability to quickly capitalize on new market opportunities and provide complete connectivity solutions to a growing customer base around the world.

The four operating segments are briefly described below:

Industrial Connectivity Solutions – High-performance industrial cable and connector products that transport mission-critical signals enabling reliable network communication and machine-to-machine connectivity for industrial automation, machine building and automotive production applications. Christoph Gusenleitner now leads this business segment. Gusenleitner was previously EVP, EMEA Operations and Global Connector Products.

Industrial IT Solutions – High-performance, reliable and secure hardware and software systems that address the mission-critical networking demands of the discrete and process automation industries worldwide. This segment is led by Dhrupad Trivedi. Previously, Trivedi served as vice president of Strategy & Corporate Development for Belden.

Enterprise Connectivity Solutions – Efficient network infrastructure systems that transport voice, video and high-speed data in enterprise IT applications for data centers, healthcare, finance, and education markets. Glenn Pennycook enters a new role as leader of Enterprise Connectivity Solutions. Pennycook was previously president of Enterprise Solutions at Belden.

Broadcast Solutions – Advanced hardware, software and connectivity systems for media companies to create, manage and deliver high-quality content around the world. This portfolio of businesses will continue to be managed by Strath Goodship, Dave Jackson, and Jimmy Rayford.

“This announcement marks another key milestone in the transformation of our business. We believe this action highlights our strategic focus on continuing to build leading global businesses with strong financial attributes. Through this, Belden can deliver even more value to our enterprise, industrial and broadcast customers around the world and quickly capitalize on new market opportunities,” said John Stroup, president and CEO of Belden.

“These four new operating segments are directed by experienced Belden leaders that bring with them a wealth of knowledge of their markets, customers, and solutions. This team has served Belden in a variety of senior operating, strategy, and finance related roles and its members are considered by many as industry experts. While we're excited to begin this next phase of business at Belden, we also must recognize that transitions are often precursors for leadership change as well. Denis Suggs, EVP, Americas Operations & Global Cable Products has decided to pursue opportunities outside of Belden. Denis will continue at Belden through July to allow for an orderly transition. We thank Denis for his solid performance over the past six years, and appreciate the strong team he has assembled. We wish Denis the best in his future endeavors.”

An educational Webcast is available on Belden's website at http://investor.belden.com. This recorded event, designed with the investor community in mind, provides insight on rationale and our new financial reporting segmentation. In addition, 2012 segment results under our new segment methodology are attached as an appendix and posted on Belden's Investor Relations website.

There is no impact to Belden consolidated financial results and no adjustment to previously provided financial guidance or strategic goals is intended or implied by this announcement.

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 financial information included in this release and have been published to the investor relations section of the Company's website at http://investor.belden.com.

About Belden

Belden Inc., a global leader in high quality, end-to-end signal transmission solutions, delivers a comprehensive product portfolio designed to meet the mission-critical network infrastructure needs of industrial, enterprise and broadcast markets. With innovation 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; follow us on Twitter @BeldenInc.

 
BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)
                   
 
Three months ended Year ended
April 1, 2012 July 1, 2012 September 30, 2012 December 31, 2012 December 31, 2012
External customer revenues: (In thousands)
Industrial Connectivity Solutions $ 169,633 $ 173,640 $ 159,342 $ 167,497 $ 670,112
Industrial IT Solutions 50,882 56,231 56,309 56,257 219,679
Enterprise Connectivity Solutions 124,352 129,475 128,715 114,315 496,857
Broadcast Solutions 70,057 74,335 96,549 115,379 356,320
All other   24,676     24,537     24,319     24,239     97,771  
Consolidated $ 439,600   $ 458,218   $ 465,234   $ 477,687   $ 1,840,739  
 
Operating income (loss):
Industrial Connectivity Solutions $ 18,973 $ 26,725 $ 7,017 $ 19,651 $ 72,366
Industrial IT Solutions 5,713 9,782 8,446 8,866 32,807
Enterprise Connectivity Solutions 9,752 14,284 8,311 7,709 40,056
Broadcast Solutions 1,168 2,467 (11,334 ) (3,958 ) (11,657 )
All other   (542 )   (1,638 )   (27,659 )   (2,801 )   (32,640 )
Total segments 35,064 51,620 (15,219 ) 29,467 100,932
Eliminations (679 ) (543 ) (603 ) (314 ) (2,139 )
Income from equity method investment   2,741     1,960     2,553     2,450     9,704  
Consolidated $ 37,126   $ 53,037   $ (13,269 ) $ 31,603   $ 108,497  
                                   
BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)
 
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, purchase accounting effects related to acquisitions, acquisition and divestiture transaction costs, revenue and cost of sales deferrals, severance and other restructuring costs, gains (losses) recognized on the disposal of businesses and tangible assets, amortization of intangible assets, and other costs. 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. Adjusted results should be considered only in conjunction with results reported according to accounting principles generally accepted in the United States.
 
 
 
Three Months Ended April 1, 2012

Industrial

Connectivity

Solutions

   

Industrial IT

Solutions

 

   

Enterprise

Connectivity

Solutions

   

Broadcast

Solutions

    All Other     Total Segments     Eliminations    

Income from

equity method

investment

    Consolidated
(In thousands, except percentages)
 
GAAP revenues $ 169,633 $ 50,882 $ 124,352 $ 70,057 $ 24,676 $ 439,600 $ - $ - $ 439,600
Deferred revenue adjustments   -         -         -         -         -         -         -         -       -  
Adjusted revenues $ 169,633       $ 50,882       $ 124,352       $ 70,057       $ 24,676       $ 439,600       $ -       $ -     $ 439,600  
 
GAAP operating income (loss) $ 18,973 $ 5,713 $ 9,752 $ 1,168 $ (542 ) $ 35,064 $ (679 ) $ 2,741 $ 37,126
Amortization of intangible assets   770         812         122         1,029         351         3,084         -         -       3,084  
Total operating income adjustments   770         812         122         1,029         351         3,084         -         -       3,084  
Adjusted operating income (loss) $ 19,743       $ 6,525       $ 9,874       $ 2,197       $ (191 )     $ 38,148       $ (679 )     $ 2,741     $ 40,210  
Adjusted operating income as a percent of adjusted revenues 11.6 % 12.8 % 7.9 % 3.1 % -0.8 % 8.7 % 9.1 %
 
Three Months Ended July 1, 2012

Industrial

Connectivity

Solutions

   

Industrial IT

Solutions

   

Enterprise

Connectivity

Solutions

   

Broadcast

Solutions

    All Other     Total Segments     Eliminations    

Income from

equity method

investment

    Consolidated
(In thousands, except percentages)
 
GAAP revenues $ 173,640 $ 56,231 $ 129,475 $ 74,335 $ 24,537 $ 458,218 $ - $ - $ 458,218
Deferred revenue adjustments   -         -         -         -         -         -         -         -       -  
Adjusted revenues $ 173,640       $ 56,231       $ 129,475       $ 74,335       $ 24,537       $ 458,218       $ -       $ -     $ 458,218  
 
GAAP operating income (loss) $ 26,725 $ 9,782 $ 14,284 $ 2,467 $ (1,638 ) $ 51,620 $ (543 ) $ 1,960 $ 53,037
Amortization of intangible assets   354         804         152         1,003         102         2,415         -         -       2,415  
Total operating income adjustments   354         804         152         1,003         102         2,415         -         -       2,415  
Adjusted operating income (loss) $ 27,079       $ 10,586       $ 14,436       $ 3,470       $ (1,536 )     $ 54,035       $ (543 )     $ 1,960     $ 55,452  
Adjusted operating income as a percent of adjusted revenues 15.6 % 18.8 % 11.1 % 4.7 % -6.3 % 11.8 % 12.1 %
                           

BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)

 
Three Months Ended September 30, 2012

Industrial

Connectivity

Solutions

   

Industrial IT

Solutions

   

Enterprise

Connectivity

Solutions

   

Broadcast

Solutions

    All Other     Total Segments     Eliminations    

Income from

equity method

investment

    Consolidated
(In thousands, except percentages)
       
GAAP revenues $ 159,342 $ 56,309 $ 128,715 $ 96,549 $ 24,319 $ 465,234 $ - $ - $ 465,234
Deferred revenue adjustments - - - 1,080 - 1,080 - - 1,080
Purchase accounting effects related to acquisitions   -         -         -         1,710         -         1,710         -         -       1,710  
Adjusted revenues $ 159,342       $ 56,309       $ 128,715       $ 99,339       $ 24,319       $ 468,024       $ -       $ -     $ 468,024  
 
GAAP operating income (loss) $ 7,017 $ 8,446 $ 8,311 $ (11,334 ) $ (27,659 ) $ (15,219 ) $ (603 ) $ 2,553 $ (13,269 )
Asset impairment 2,435 - 1,468 - 26,001 29,904 - - 29,904
Severance and other restructuring costs 9,150 515 3,217 4,378 167 17,427 - - 17,427
Purchase accounting effects related to acquisitions 826 436 597 9,360 - 11,219 - - 11,219
Amortization of intangible assets 270 800 123 6,353 100 7,646 - - 7,646
Deferred gross profit adjustments   -         -         -         864         -         864         -         -       864  
Total operating income adjustments   12,681         1,751         5,405         20,955         26,268         67,060         -         -       67,060  
Adjusted operating income (loss) $ 19,698       $ 10,197       $ 13,716       $ 9,621       $ (1,391 )     $ 51,841       $ (603 )     $ 2,553     $ 53,791  
Adjusted operating income as a percent of adjusted revenues 12.4 % 18.1 % 10.7 % 9.7 % -5.7 % 11.1 % 11.5 %
 
 
Three Months Ended December 31, 2012

Industrial

Connectivity

Solutions

   

Industrial IT

Solutions

   

Enterprise

Connectivity

Solutions

   

Broadcast

Solutions

    All Other    

Total Segments

    Eliminations    

Income from

equity method

investment

    Consolidated
(In thousands, except percentages)
 
GAAP revenues $ 167,497 $ 56,257 $ 114,315 $ 115,379 $ 24,239 $ 477,687 $ - $ - $ 477,687
Deferred revenue adjustments   -         -         -         3,482         -         3,482         -         -       3,482  
Adjusted revenues $ 167,497       $ 56,257       $ 114,315       $ 118,861       $ 24,239       $ 481,169       $ -       $ -     $ 481,169  
 
GAAP operating income (loss) $ 19,651 $ 8,866 $ 7,709 $ (3,958 ) $ (2,801 ) $ 29,467 $ (314 ) $ 2,450 $ 31,603
Asset impairment - - - - 3,772 3,772 - - 3,772
Severance and other restructuring costs - - - 500 - 500 - - 500
Purchase accounting effects related to acquisitions 158 103 178 7,124 - 7,563 - - 7,563
Amortization of intangible assets 271 749 189 8,438 - 9,647 - - 9,647
Deferred gross profit adjustments   -         -         -         2,038         -         2,038         -         -       2,038  
Total operating income adjustments   429         852         367         18,100         3,772         23,520         -         -       23,520  
Adjusted operating income (loss) $ 20,080       $ 9,718       $ 8,076       $ 14,142       $ 971       $ 52,987       $ (314 )     $ 2,450     $ 55,123  
Adjusted operating income as a percent of adjusted revenues 12.0 % 17.3 % 7.1 % 11.9 % 4.0 % 11.0 % 11.5 %
                           

BELDEN INC.
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)

 
Twelve Months Ended December 31, 2012

Industrial

Connectivity

Solutions

   

Industrial IT

Solutions

   

Enterprise

Connectivity

Solutions

   

Broadcast

Solutions

    All Other     Total Segments     Eliminations    

Income from

equity method

investment

    Consolidated
(In thousands, except percentages)
       
GAAP revenues $ 670,112 $ 219,679 $ 496,857 $ 356,320 $ 97,771 $ 1,840,739 $ - $ - $ 1,840,739
Deferred revenue adjustments   -         -         -         6,272         -         6,272         -         -       6,272  
Adjusted revenues $ 670,112       $ 219,679       $ 496,857       $ 362,592       $ 97,771       $ 1,847,011       $ -       $ -     $ 1,847,011  
 
GAAP operating income (loss) $ 72,366 $ 32,807 $ 40,056 $ (11,657 ) $ (32,640 ) $ 100,932 $ (2,139 ) $ 9,704 $ 108,497
Asset impairment 2,435 - 1,468 - 29,773 33,676 - - 33,676
Severance and other restructuring costs 9,150 515 3,217 4,878 167 17,927 - - 17,927
Purchase accounting effects related to acquisitions 984 539 775 16,484 - 18,782 - - 18,782
Amortization of intangible assets 1,665 3,165 586 16,823 553 22,792 - - 22,792
Deferred gross profit adjustments   -         -         -         2,902         -         2,902         -         -       2,902  
Total operating income adjustments   14,234         4,219         6,046         41,087         30,493         96,079         -         -       96,079  
Adjusted operating income (loss) $ 86,600       $ 37,026       $ 46,102       $ 29,430       $ (2,147 )     $ 197,011       $ (2,139 )     $ 9,704     $ 204,576  
Adjusted operating income as a percent of adjusted revenues 12.9 % 16.9 % 9.3 % 8.1 % -2.2 % 10.7 % 11.1 %

Belden Investor Relations
Matt Tractenberg, 314-854-8089
Matthew.Tractenberg@Belden.com
or
Belden Media Relations
Eric Ehlers, 314-854-8045
Eric.Ehlers@Belden.com

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