Belden Inc. (NYSE: BDC) (“Belden” or the “Company”), a leading global supplier of network infrastructure and digitization solutions, today reported fiscal third quarter results for the period ...
ST. LOUIS: Belden Inc. (NYSE: BDC) (“Belden” or the “Company”), a leading global supplier of network infrastructure and digitization solutions, today reported fiscal third quarter results for the period ended September 29, 2024.
Third Quarter 2024 Highlights
“I am pleased that our team continues to navigate this dynamic environment and delivered another solid quarter,” said Ashish Chand, President and CEO of Belden. “Demand was stable, with both revenues and EPS exceeding expectations. Performance for the quarter was steady, with improved sequential margins and continued growth in orders, up 8% sequentially and 28% on a year-over-year basis. We continue to capitalize on our strong financial position to increase shareholder value, deploying $115 million towards share repurchases year-to-date, further reducing our share count by 1.2 million shares.”
Third Quarter 2024
Driven primarily by the acquisition of Precision Optical Technologies, revenues for the quarter increased $28 million, or 4%, to $655 million from $627 million in the year-ago period. Revenue was down 2% organically, with Automation Solutions down 3% and Smart Infrastructure Solutions down 1%. Net income was $54 million, compared to $72 million in the year-ago period. Net income as a percentage of revenues was 8.2%, compared to 11.5% in the year-ago period. EPS totaled $1.30 for the quarter, compared to $1.70 in the year-ago period. Prior year net income was favorably impacted by a $12 million one-time pre-tax gain from the sale of an asset.
Adjusted EBITDA was $113 million, down $2 million, or 2%, compared to $115 million in the year-ago period. Adjusted EBITDA margin was 17.2%, down 120 bps, compared to 18.4% in the year-ago period. Adjusted EPS was $1.70, decreasing 4% compared to $1.78 in the year-ago period. Adjusted results are non-GAAP measures, and a non-GAAP reconciliation table is provided as an appendix to this release.
Outlook
“Looking ahead to the fourth quarter, the economic environment remains uncertain. However, as outlined in our most recent Investor Day, our business is well-positioned to succeed as the next investment cycle ramps up. We are successfully executing our solutions transformation and focusing our efforts on key verticals with solid secular growth trends and high data needs. Our strong financial position allows us to further accelerate growth in solutions with tuck-in acquisitions and provides excess capital to opportunistically repurchase shares. I am confident in the ability of the Belden team to continue to transform our business, leverage our superior technology, and capitalize on growth opportunities in all market conditions as we generate sustainable, long-term shareholder value.”
For the fourth quarter, we anticipate order patterns to remain steady across our markets as customers navigate this dynamic environment. Revenues are expected to be in the range of $645 million to $660 million, representing a 17% to 20% increase over the prior-year quarter. GAAP EPS is expected to be in the range of $1.05 to $1.15, representing a 15% to 26% increase over the prior-year quarter. Adjusted EPS is expected to be in the range of $1.62 to $1.72, representing an 11% to 18% increase over the prior-year quarter.
Fourth Quarter 2024: |
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| Guidance |
Revenues (million) |
| $645 - $660 |
GAAP EPS |
| $1.05 - $1.15 |
Adjusted EPS |
| $1.62 - $1.72 |
Earnings Conference Call
Management will host a conference call today at 8:30 am ET to discuss the results. The listen-only audio of the conference call will be broadcast live via the Internet at https://investor.belden.com. The dial-in number for participants is 1-888-394-8218 with confirmation code 7788069. A replay of this conference call will remain accessible in the investor relations section of the Company’s website for a limited time.
Earnings per Share (EPS) and Organic Growth
All references to EPS within this earnings release refer to net income per diluted share attributable to Belden stockholders. Organic growth is calculated as the change in revenues excluding the impacts from currency exchange rates, copper prices, acquisitions, and divestitures.
BELDEN INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||
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| Three Months Ended |
| Nine Months Ended | ||||||||||||
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| September 29, |
| October 1, |
| September 29, |
| October 1, | ||||||||
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| (In thousands, except per share data) | ||||||||||||||
Revenues |
| $ | 654,926 |
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| $ | 626,807 |
|
| $ | 1,794,937 |
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| $ | 1,960,841 |
|
Cost of sales |
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| (410,922 | ) |
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| (385,639 | ) |
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| (1,122,531 | ) |
|
| (1,212,240 | ) |
Gross profit |
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| 244,004 |
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| 241,168 |
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| 672,406 |
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| 748,601 |
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Selling, general and administrative expenses |
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| (126,976 | ) |
|
| (118,079 | ) |
|
| (357,241 | ) |
|
| (366,288 | ) |
Research and development expenses |
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| (27,941 | ) |
|
| (30,190 | ) |
|
| (83,397 | ) |
|
| (90,544 | ) |
Amortization of intangibles |
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| (13,738 | ) |
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| (9,526 | ) |
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| (34,487 | ) |
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| (30,262 | ) |
Gain on sale of assets |
|
| — |
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| 12,056 |
|
|
| — |
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| 12,056 |
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Operating income |
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| 75,349 |
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|
| 95,429 |
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| 197,281 |
|
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| 273,563 |
|
Interest expense, net |
|
| (10,855 | ) |
|
| (8,580 | ) |
|
| (27,454 | ) |
|
| (25,593 | ) |
Non-operating pension benefit |
|
| 286 |
|
|
| 328 |
|
|
| 747 |
|
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| 1,462 |
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Income before taxes |
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| 64,780 |
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| 87,177 |
|
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| 170,574 |
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| 249,432 |
|
Income tax expense |
|
| (11,091 | ) |
|
| (14,850 | ) |
|
| (30,542 | ) |
|
| (45,385 | ) |
Net income |
|
| 53,689 |
|
|
| 72,327 |
|
|
| 140,032 |
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| 204,047 |
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Less: Net loss attributable to noncontrolling interest |
|
| (3 | ) |
|
| (20 | ) |
|
| (17 | ) |
|
| (245 | ) |
Net income attributable to Belden stockholders |
| $ | 53,692 |
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| $ | 72,347 |
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| $ | 140,049 |
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| $ | 204,292 |
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Weighted average number of common shares and equivalents: |
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Basic |
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| 40,798 |
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| 42,053 |
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| 40,825 |
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| 42,460 |
|
Diluted |
|
| 41,417 |
|
|
| 42,625 |
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|
| 41,371 |
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| 43,129 |
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Basic income per share attributable to Belden stockholders |
| $ | 1.32 |
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| $ | 1.72 |
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| $ | 3.43 |
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| $ | 4.81 |
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Diluted income per share attributable to Belden stockholders |
| $ | 1.30 |
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| $ | 1.70 |
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| $ | 3.39 |
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| $ | 4.74 |
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Common stock dividends declared per share |
| $ | 0.05 |
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| $ | 0.05 |
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| $ | 0.15 |
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| $ | 0.15 |
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BELDEN INC. OPERATING SEGMENT INFORMATION (Unaudited) | ||||||||
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| Smart Infrastructure Solutions |
| Automation Solutions | ||||
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| (In thousands, except p
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