OREANDA-NEWS. 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 2016 results for the period ended April 3, 2016.

First Quarter 2016 Highlights

  • Delivered GAAP first quarter revenues of $541.5 million, and adjusted first quarter revenues of $543.8 million;
  • Expanded adjusted gross profit margins to 42.3%, an increase of 170 basis points from 40.6% in the year-ago period;
  • Generated adjusted EBITDA margins of 16.4%, an increase of 90 basis points from 15.5% in the year-ago period;
  • Repaid $51 million of debt during the quarter; and
  • Increased full-year adjusted revenues and adjusted EPS guidance.

First Quarter 2016

On a GAAP basis, revenues for the quarter totaled $541.5 million, declining $5.5 million, or 1.0%, compared to $547.0 million in the first quarter 2015. Gross profit margin in the first quarter was 41.6%, increasing 360 basis points from 38.0% in the year-ago period. Operating income was $41.0 million, an increase from the prior-year period of $4.9 million. Operating profit margin in the first quarter was 7.6%, increasing from 0.9% in the year-ago period. EPS totaled $0.39, compared to a loss of $(0.46) in the first quarter 2015. GAAP operating profit margin expansion and net income improvement was largely driven by purchase accounting effects in the year-ago period related to the acquisition of Tripwire.

Adjusted revenues for the quarter totaled $543.8 million, declining $25.7 million, or 4.5%, compared to $569.5 million in the first quarter 2015. Adjusted gross profit margin in the first quarter was 42.3%, increasing 170 basis points from 40.6% in the year-ago period. Adjusted EBITDA margin in the first quarter was 16.4%, increasing 90 basis points from 15.5% in the year-ago period. Adjusted EPS increased to $1.01 from $1.00 in the first quarter 2015. Adjusted results are non-GAAP measures, and a non-GAAP reconciliation table is provided as an appendix to this release.

To capitalize on the adoption of IP technology and accelerate our penetration of the commercial audio-video market, we elected in the first quarter to transfer the responsibility of audio-video cable and connectors to our Enterprise segment leadership team. As a result, revenues for this product category are now reported within the Enterprise Connectivity platform. Such revenues were previously reported within the Broadcast Connectivity platform. Prior period segment information has been revised to conform to the change in the composition of reportable segments and is included as an appendix to this release.

John Stroup, President and CEO of Belden Inc., said, “We are extremely pleased with our first quarter results, including earnings growth, margin expansion, and cash flow. As expected, strength within Broadband, Enterprise, and Network Security markets offset weakness from our industrial platforms. Despite a difficult year-over-year comparison due primarily to lower oil prices and a stronger U.S. dollar, our attractive portfolio, superior business system, and talented team enabled us to outperform.”

Outlook

“Given our strong start, we have increased our revenue and earnings outlook for the year. We expect our Broadband, Enterprise, and Network Security businesses will continue to perform well and benefit from favorable end-market conditions. Although our industrial businesses are down year-over-year, sequential performance, backlog, and order rates suggest stability that should lead to a better second half,” said Mr. Stroup.

The Company expects second quarter 2016 adjusted revenues to be $570 – $590 million and adjusted EPS to be $1.20 – $1.30. For the full year ending December 31, 2016, the Company now expects adjusted revenues to be $2.320 – $2.370 billion compared to the previously guided range of $2.295 – $2.345 billion. The expected range of adjusted EPS is now $5.15 – $5.45 compared to the previously guided range of $5.10 - $5.40.

On a GAAP basis, the Company expects second quarter 2016 revenues to be $568 – $588 million and EPS to be $0.62 – $0.72. For the full year ending December 31, 2016, the Company now expects revenues to be $2.313 – $2.363 billion compared to the previously guided range of $2.288 – $2.338 billion. The expected range of EPS is now $2.84 – $3.14 compared to the previously guided range of $2.68 - $2.98.

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.