Belden Inc. (NYSE: BDC) (the “Company”), a leading global
supplier of network infrastructure solutions, today reported fiscal
fourth quarter and full year results for the period ended December
31, 2022.
“Belden delivered another strong quarter of continued growth
with expanding margins. For the full year 2022, we achieved both
record revenues and record EPS. I am proud of how our teams
navigated this challenging year by focusing on customer success and
business outcomes. Our strength in 2022 was broad-based,
demonstrating the strong secular growth trends benefiting our
strategically positioned portfolio. For the full year, revenues
grew 16% organically with improved profitability and expanded
margins. We continue to invest our capital strategically in new
product innovation, selective bolt-on acquisitions, and share
repurchases. Our balance sheet is strong, as we ended the year with
net leverage of 1.0x, down from 2.1x a year ago,” said Roel
Vestjens, President and CEO of Belden Inc.
Fourth Quarter 2022
GAAP revenues for the quarter totaled $659 million, increasing
$47 million, or 8%, compared to $612 million in the year-ago
period. Organic year-over-year growth for the quarter was 12%, with
Industrial Automation Solutions at 18% and Enterprise Solutions at
6%. Net income was $61 million, compared to $80 million in the
year-ago period. Net income as a percentage of revenue was 9.3%,
compared to 13.1% in the year-ago period. EPS totaled $1.40 for the
quarter, compared to $1.76 in the year-ago period.
Adjusted revenues for the quarter totaled $659 million,
increasing $48 million, or 8%, compared to $611 million in the
year-ago period. Adjusted EBITDA was $115 million, increasing $14
million, or 14%, compared to $101 million in the year-ago period.
Adjusted EBITDA margin was 17.4%, up 90 bps, compared to 16.5% in
the year-ago period. Adjusted EPS was $1.75, increasing 35%
compared to $1.30 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.
Full Year 2022
GAAP and Adjusted revenues for the year totaled a record $2.606
billion, increasing $305 million, or 13%, compared to $2.301
billion in the prior year. Organic growth for the year was 16%,
with Industrial Automation Solutions at 19% and Enterprise
Solutions at 13%. Net income was $268 million, compared to $199
million in the prior year. Net income as a percentage of revenue
was 10.3%, compared to 8.6% in the prior year. EPS totaled an
annual record $6.01, compared to $4.37 in the prior year, up
38%.
Adjusted EBITDA was $444 million, increasing $72 million, or
19%, compared to $372 million in the prior year. Adjusted EBITDA
margin was 17.0%, up 90 bps, compared to 16.1% in the year-ago
period. Adjusted EPS was an annual record $6.41, increasing 35%
compared to $4.75 in the prior year.
Outlook
“2022 was a record year for Belden with growth across the
business. While macro conditions remain uncertain as we enter 2023,
our portfolio is designed to deliver organic growth in excess of
GDP. We are confident in our ability to execute our strategy and
generate sustainable, long-term shareholder value. Our transformed
portfolio aligns Belden with key long-term secular trends that have
lengthy investment cycles. Investments in automation, reshoring,
increased connectivity, increasing bandwidth usage, and network
upgrades all bode well for Belden to produce sustainable earnings
growth. We ended 2022 with low leverage and significant liquidity,
which will allow us to invest in future organic and inorganic
growth opportunities. After record performance in 2022, we are
confident in our ability to deliver at least $8.00 of adjusted EPS
by 2025,” said Mr. Vestjens.
The table below provides guidance for both the full year 2023,
as well as the first quarter of 2023.
Full Year 2023:
- Revenues between $2.670 billion and $2.720 billion
- Organic growth between 3% and 5%
- GAAP EPS between $5.73 and $6.13
- Adjusted EPS between $6.60 and $7.00
First Quarter 2023:
- Revenues between $615 million and $630 million
- Organic growth between 3% and 6%
- GAAP EPS between $1.29 and $1.39
- Adjusted EPS between $1.50 and $1.60
Earnings Conference Call
Management will host a conference call today at 8:30 am ET to
discuss 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 888-394-8218 with confirmation code 2705002. A
replay of this conference call will remain accessible in the
investor relations section of the Company’s website for a limited
time.
Net Income, Earnings per Share (EPS), Net Leverage, and
Organic Growth
All references to net income and EPS within this earnings
release refer to income from continuing operations and income from
continuing operations per diluted share attributable to Belden
stockholders, respectively. Net leverage is calculated as (A) total
debt less cash and cash equivalents divided by (B) the sum of
trailing twelve months Adjusted EBITDA plus trailing twelve months
stock-based compensation expense. Organic growth is calculated as
the change in revenues excluding the impacts of changes in currency
exchange rates and copper prices, as well as acquisitions and
divestitures.
BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31, 2022
December 31, 2021
December 31, 2022
December 31, 2021
(In thousands, except per
share data)
Revenues
$
659,072
$
611,959
$
2,606,485
$
2,301,260
Cost of sales
(412,594
)
(404,030
)
(1,690,196
)
(1,529,417
)
Gross profit
246,478
207,929
916,289
771,843
Selling, general and administrative
expenses
(129,889
)
(108,485
)
(448,636
)
(378,027
)
Research and development expenses
(28,599
)
(22,117
)
(104,350
)
(90,227
)
Amortization of intangibles
(9,761
)
(7,685
)
(37,860
)
(30,630
)
Asset impairments
—
—
—
(9,283
)
Gain on sale of asset
—
—
37,891
—
Operating income
78,229
69,642
363,334
263,676
Interest expense, net
(7,984
)
(16,061
)
(43,554
)
(62,693
)
Loss on debt extinguishment
—
—
(6,392
)
(5,715
)
Non-operating pension benefit
1,709
1,355
4,005
4,476
Gain on sale of note receivable
—
27,036
—
27,036
Income from continuing operations before
taxes
71,954
81,972
317,393
226,780
Income tax expense
(10,631
)
(1,506
)
(49,645
)
(27,939
)
Income from continuing operations
61,323
80,466
267,748
198,841
Loss from discontinued operations, net of
tax
—
(132,039
)
(3,685
)
(136,384
)
Gain (loss) on disposal of discontinued
operations, net of tax
692
1,860
(9,241
)
1,860
Net income (loss)
62,015
(49,713
)
254,822
64,317
Less: Net income attributable to
noncontrolling interest
48
56
159
392
Net income (loss) attributable to Belden
stockholders
$
61,967
$
(49,769
)
$
254,663
$
63,925
Weighted average number of common shares
and equivalents:
Basic
42,819
44,927
43,845
44,802
Diluted
43,705
45,729
44,537
45,361
Basic income (loss) per share attributable
to Belden stockholders:
Continuing operations
$
1.43
$
1.79
$
6.10
$
4.43
Discontinued operations
—
(2.94
)
(0.08
)
(3.04
)
Disposal of discontinued operations
0.02
0.04
(0.21
)
0.04
Net income (loss)
$
1.45
$
(1.11
)
$
5.81
$
1.43
Diluted income (loss) per share
attributable to Belden stockholders:
Continuing operations
$
1.40
$
1.76
$
6.01
$
4.37
Discontinued operations
—
(2.94
)
(0.08
)
(3.04
)
Disposal of discontinued operations
0.02
0.04
(0.21
)
0.04
Net income (loss)
$
1.42
$
(1.11
)
$
5.72
$
1.41
Common stock dividends declared per
share
$
0.05
$
0.05
$
0.20
$
0.20
BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)
Enterprise
Solutions
Industrial Automation
Solutions
Total
Segments
(In thousands, except
percentages)
For the three
months ended December 31, 2022
Segment Revenues
$
303,403
$
355,669
$
659,072
Segment EBITDA
42,699
70,436
113,135
Segment EBITDA margin
14.1
%
19.8
%
17.2
%
Depreciation expense
6,173
6,053
12,226
Amortization of intangibles
4,544
5,217
9,761
Amortization of software development
intangible assets
2
1,017
1,019
Severance, restructuring, and acquisition
integration costs
1,595
950
2,545
Adjustments related to acquisitions and
divestitures
8,684
596
9,280
For the three
months ended December 31, 2021
Segment Revenues
$
294,312
$
316,295
$
610,607
Segment EBITDA
39,806
59,662
99,468
Segment EBITDA margin
13.5
%
18.9
%
16.3
%
Depreciation expense
5,613
5,489
11,102
Amortization of intangibles
4,393
3,292
7,685
Amortization of software development
intangible assets
22
392
414
Severance, restructuring, and acquisition
integration costs
6,044
5,284
11,328
Adjustments related to acquisitions and
divestitures
—
(750
)
(750
)
For the twelve
months ended December 31, 2022
Segment Revenues
$
1,198,478
$
1,408,007
$
2,606,485
Segment EBITDA
161,517
277,079
438,596
Segment EBITDA margin
13.5
%
19.7
%
16.8
%
Depreciation expense
23,387
23,282
46,669
Amortization of intangibles
17,595
20,265
37,860
Amortization of software development
intangible assets
54
3,821
3,875
Severance, restructuring, and acquisition
integration costs
9,200
7,485
16,685
Adjustments related to acquisitions and
divestitures
5,589
2,244
7,833
For the twelve
months ended December 31, 2021
Segment Revenues
$
1,074,426
$
1,226,834
$
2,301,260
Segment EBITDA
144,509
222,684
367,193
Segment EBITDA margin
13.4
%
18.2
%
16.0
%
Depreciation expense
21,627
21,446
43,073
Amortization of intangibles
17,595
13,035
30,630
Amortization of software development
intangible assets
94
1,485
1,579
Severance, restructuring, and acquisition
integration costs
13,800
10,067
23,867
Adjustments related to acquisitions and
divestitures
(7,052
)
2,017
(5,035
)
Asset impairments
—
9,283
9,283
BELDEN INC.
OPERATING SEGMENT RECONCILIATION TO
CONSOLIDATED RESULTS
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31, 2022
December 31, 2021
December 31, 2022
December 31, 2021
(In thousands)
Total Segment Revenues
$
659,072
$
610,607
$
2,606,485
$
2,301,260
Adjustments related to acquisitions
—
1,352
—
—
Consolidated Revenues
$
659,072
$
611,959
$
2,606,485
$
2,301,260
Total Segment EBITDA
$
113,135
$
99,468
$
438,596
$
367,193
Total non-operating pension benefit
1,709
1,355
4,005
4,476
Non-operating pension settlement loss
235
—
1,189
—
Eliminations
(75
)
(47
)
(231
)
(120
)
Consolidated Adjusted EBITDA (1)
115,004
100,776
443,559
371,549
Depreciation expense
(12,226
)
(11,102
)
(46,669
)
(43,073
)
Amortization of intangibles
(9,761
)
(7,685
)
(37,860
)
(30,630
)
Adjustments related to acquisitions and
divestitures
(9,280
)
750
(7,833
)
5,035
Interest expense, net
(7,984
)
(16,061
)
(43,554
)
(62,693
)
Severance, restructuring, and acquisition
integration costs
(2,545
)
(11,328
)
(16,685
)
(23,867
)
Amortization of software development
intangible assets
(1,019
)
(414
)
(3,875
)
(1,579
)
Non-operating pension settlement loss
(235
)
—
(1,189
)
—
Loss on debt extinguishment
—
—
(6,392
)
(5,715
)
Asset impairments
—
—
—
(9,283
)
Gain on sale of asset
—
—
37,891
—
Gain on sale of note receivable
—
27,036
—
27,036
Income from continuing operations before
taxes
$
71,954
$
81,972
$
317,393
$
226,780
(1)
Consolidated Adjusted EBITDA is a non-GAAP
measure. See Reconciliation of Non-GAAP Measures for additional
information.
BELDEN INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
December 31, 2022
December 31, 2021
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents
$
687,676
$
641,563
Receivables, net
440,102
383,444
Inventories, net
341,563
345,203
Other current assets
66,866
58,283
Assets of discontinued operations
—
449,152
Total current assets
1,536,207
1,877,645
Property, plant and equipment, less
accumulated depreciation
381,864
343,564
Operating lease right-of-use assets
73,376
75,571
Goodwill
862,253
821,448
Intangible assets, less accumulated
amortization
246,830
238,155
Deferred income taxes
14,642
31,736
Other long-lived assets
46,503
29,558
$
3,161,675
$
3,417,677
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
350,058
$
377,765
Accrued liabilities
289,861
278,108
Liabilities of discontinued operations
—
96,993
Total current liabilities
639,919
752,866
Long-term debt
1,161,176
1,459,991
Postretirement benefits
67,828
120,997
Deferred income taxes
58,582
51,113
Long-term operating lease liabilities
59,250
61,967
Other long-term liabilities
30,970
14,661
Stockholders’ equity:
Common stock
503
503
Additional paid-in capital
825,669
833,627
Retained earnings
751,522
505,717
Accumulated other comprehensive loss
(5,871
)
(70,566
)
Treasury stock
(428,812
)
(313,994
)
Total Belden stockholders’ equity
1,143,011
955,287
Noncontrolling interests
939
795
Total stockholders’ equity
1,143,950
956,082
$
3,161,675
$
3,417,677
BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW
STATEMENTS
(Unaudited)
Twelve Months Ended
December 31, 2022
December 31, 2021
(In thousands)
Cash flows from operating activities:
Net income
$
254,822
$
64,316
Adjustments to reconcile net income to net
cash from operating activities:
Depreciation and amortization
88,738
87,988
Share-based compensation
23,676
24,871
Loss on debt extinguishment
6,392
5,715
Goodwill and other asset impairment
—
140,461
Deferred income tax expense (benefit)
(627
)
3,575
Gain on sale of asset
(37,891
)
—
Changes in operating assets and
liabilities, net of the effects of currency exchange rate changes,
acquired businesses and disposals:
Receivables
(33,605
)
(119,012
)
Inventories
5,558
(92,984
)
Accounts payable
(20,595
)
135,666
Accrued liabilities
(5,416
)
61,241
Income taxes
2,335
(6,448
)
Other assets
2,881
(12,692
)
Other liabilities
(4,972
)
(20,642
)
Net cash provided by operating
activities
281,296
272,055
Cash flows from investing activities:
Proceeds from disposal of businesses, net
of cash sold
334,574
45,735
Proceeds from disposal of tangible
assets
43,534
30,234
Purchase of intangible assets
—
(3,650
)
Cash used for acquisitions and
investments, net of cash acquired
(104,603
)
(73,340
)
Capital expenditures
(105,094
)
(90,982
)
Net cash provided by (used for)
investing activities
168,411
(92,003
)
Cash flows from financing activities:
Payments under borrowing arrangements
(230,639
)
(360,304
)
Payments under share repurchase
program
(150,000
)
—
Cash dividends paid
(8,949
)
(9,056
)
Withholding tax payments for share-based
payment awards
(7,186
)
(5,570
)
Payments under financing lease
obligations
(157
)
(3,151
)
Debt issuance costs paid
—
(8,173
)
Payments to noncontrolling interest
holders
—
(2,682
)
Proceeds from issuance of common stock
3,717
—
Borrowings under credit arrangements
—
356,010
Net cash used for financing activities
(393,214
)
(32,926
)
Effect of foreign currency exchange rate
changes on cash and cash equivalents
(12,574
)
(5,363
)
Increase in cash and cash equivalents
43,919
141,763
Cash and cash equivalents, beginning of
period
643,757
501,994
Cash and cash equivalents, end of
period
$
687,676
$
643,757
The Condensed Consolidated Cash Flow Statement includes the
results of discontinued operations up to the disposal date,
February 22, 2022.
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; accelerated depreciation expense due
to plant consolidation activities; purchase accounting effects
related to acquisitions, such as the adjustment of acquired
inventory and deferred revenue to fair value and transaction costs;
severance, restructuring, and acquisition integration costs; gains
(losses) recognized on the disposal of businesses and tangible
assets; amortization of intangible assets; gains (losses) on debt
extinguishment; certain revenues and gains (losses) from patent
settlements; discontinued operations; and other costs. We adjust
for the items listed above in all periods presented, unless the
impact is clearly immaterial to our financial statements. When we
calculate the tax effect of the adjustments, we include all current
and deferred income tax expense commensurate with the adjusted
measure of pre-tax profitability.
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. As an example, we adjust for the
purchase accounting effect of recording deferred revenue at fair
value in order to reflect the revenues that would have otherwise
been recorded by acquired businesses had they remained as
independent entities. We believe this presentation is useful in
evaluating the underlying performance of acquired companies.
Similarly, we adjust for other acquisition-related expenses, such
as amortization of intangibles and other impacts of fair value
adjustments because they generally are not related to the acquired
business' core business performance. As an additional example, we
exclude the costs of restructuring programs, which can occur from
time to time for our current businesses and/or recently acquired
businesses. We exclude the costs in calculating adjusted results to
allow us and investors to evaluate the performance of the business
based upon its expected ongoing operating structure. We believe the
adjusted measures, accompanied by the disclosure of the costs of
these programs, provides valuable insight.
Adjusted results should be considered only in conjunction with
results reported according to accounting principles generally
accepted in the United States.
Three Months Ended
Twelve Months Ended
December 31, 2022
December 31, 2021
December 31, 2022
December 31, 2021
(In thousands, except
percentages and per share amounts)
GAAP revenues
$
659,072
$
611,959
$
2,606,485
$
2,301,260
Adjustments related to acquisitions
—
(1,352
)
—
—
Adjusted revenues
$
659,072
$
610,607
$
2,606,485
$
2,301,260
GAAP gross profit
$
246,478
$
207,929
$
916,289
$
771,843
Severance, restructuring, and acquisition
integration costs
1,317
7,002
10,088
11,308
Amortization of software development
intangible assets
1,019
414
3,875
1,579
Adjustments related to acquisitions and
divestitures
—
(1,352
)
1,648
2,349
Adjusted gross profit
$
248,814
$
213,993
$
931,900
$
787,079
GAAP gross profit margin
37.4
%
34.0
%
35.2
%
33.5
%
Adjusted gross profit margin
37.8
%
35.0
%
35.8
%
34.2
%
GAAP selling, general and administrative
expenses
$
(129,890
)
$
(108,485
)
$
(448,637
)
$
(378,027
)
Severance, restructuring, and acquisition
integration costs
1,228
4,326
6,597
12,559
Adjustments related to acquisitions and
divestitures
9,280
602
7,833
(7,384
)
Adjusted selling, general and
administrative expenses
$
(119,382
)
$
(103,557
)
$
(434,207
)
$
(372,852
)
GAAP and adjusted research and development
expenses
$
(28,599
)
$
(22,117
)
$
(104,350
)
$
(90,227
)
GAAP income from continuing operations
$
61,323
$
80,466
$
267,748
$
198,841
Interest expense, net
7,984
16,061
43,554
62,693
Income tax expense
10,631
1,506
49,645
27,939
Loss on debt extinguishment
—
—
6,392
5,715
Non-operating pension settlement loss
235
—
1,189
—
Gain on sale of note receivable
—
(27,036
)
—
(27,036
)
Total non-operating adjustments
18,850
(9,469
)
100,780
69,311
Asset impairments
—
—
—
9,283
Severance, restructuring, and acquisition
integration costs
2,545
11,328
16,685
23,867
Amortization of intangible assets
9,761
7,685
37,860
30,630
Amortization of software development
intangible assets
1,019
414
3,875
1,579
Adjustments related to acquisitions and
divestitures
9,280
(750
)
7,833
(5,035
)
Gain on sale of asset
—
—
(37,891
)
—
Total operating income adjustments
22,605
18,677
28,362
60,324
Depreciation expense
12,226
11,102
46,669
43,073
Adjusted EBITDA
$
115,004
$
100,776
$
443,559
$
371,549
GAAP income from continuing operations
margin
9.3
%
13.1
%
10.3
%
8.6
%
Adjusted EBITDA margin
17.4
%
16.5
%
17.0
%
16.1
%
GAAP income from continuing operations
$
61,323
$
80,466
$
267,748
$
198,841
Less: Net income attributable to
noncontrolling interest
48
56
159
392
GAAP net income from continuing operations
attributable to Belden
stockholders
$
61,275
$
80,410
$
267,589
$
198,449
GAAP income from continuing operations
$
61,323
$
80,466
$
267,748
$
198,841
Plus: Operating income adjustments from
above
22,605
18,677
28,362
60,324
Plus: Loss on debt extinguishment
—
—
6,392
5,715
Plus: Non-operating pension settlement
loss
235
—
1,189
—
Less: Gain on sale of note receivable
—
27,036
—
27,036
Less: Net income attributable to
noncontrolling interest
48
56
159
392
Less: Tax effect of adjustments above
7,809
12,595
18,169
21,957
Adjusted net income from continuing
operations attributable to Belden
stockholders
$
76,306
$
59,456
$
285,363
$
215,495
GAAP income from continuing operations per
diluted share attributable to
Belden stockholders (EPS)
$
1.40
$
1.76
$
6.01
$
4.37
Adjusted income from continuing operations
per diluted share attributable to Belden stockholders (Adjusted
EPS)
$
1.75
$
1.30
$
6.41
$
4.75
GAAP and adjusted diluted weighted average
shares
43,705
45,729
44,537
45,361
BELDEN INC.
RECONCILIATION OF NON-GAAP
MEASURES
(Unaudited)
We define free cash flow, which is a non-GAAP financial measure,
as net cash from operating activities adjusted for capital
expenditures net of the proceeds from the disposal of tangible
assets. We believe free cash flow provides useful information to
investors regarding our ability to generate cash from business
operations that is available for acquisitions and other
investments, service of debt principal, dividends and share
repurchases. We use free cash flow, as defined, as one financial
measure to monitor and evaluate performance and liquidity. Non-GAAP
financial measures should be considered only in conjunction with
financial measures reported according to accounting principles
generally accepted in the United States. Our definition of free
cash flow may differ from definitions used by other companies.
Three Months Ended
Twelve Months Ended
December 31, 2022
December 31, 2021
December 31, 2022
December 31, 2021
(In thousands)
GAAP net cash provided by operating
activities
$
202,496
$
170,136
$
281,296
$
272,055
Capital expenditures
(54,844
)
(35,413
)
(105,094
)
(90,982
)
Proceeds from disposal of assets
—
26,985
43,534
30,234
Non-GAAP free cash flow
$
147,652
$
161,708
$
219,736
$
211,307
BELDEN INC.
RECONCILIATION OF NON-GAAP
MEASURES
2023 Guidance
Year Ended
Three Months Ended
December 31, 2023
April 2, 2023
(In thousands)
GAAP income from continuing operations per
diluted share attributable to Belden common stockholders
$5.73 - $6.13
$1.29 - $1.39
Amortization of intangible assets
0.69
0.18
Severance, restructuring, and acquisition
integration costs
0.16
0.02
Adjustments related to acquisitions and
divestitures
0.02
0.01
Adjusted income from continuing operations
per diluted share attributable to Belden common stockholders
$6.60 - $7.00
$1.50 - $1.60
Our guidance is based upon information currently available
regarding events and conditions that will impact our future
operating results. In particular, our results are subject to the
factors listed under "Forward-Looking Statements" in this release.
In addition, our actual results are likely to be impacted by other
additional events for which information is not available, such as
asset impairments, adjustments related to acquisitions and
divestitures, severance, restructuring, and acquisition integration
costs, gains (losses) recognized on the disposal of assets, gains
(losses) on debt extinguishment, discontinued operations, and other
gains (losses) related to events or conditions that are not yet
known. Such information is not available for our 2025 fiscal year,
and therefore we are unable to estimate 2025 GAAP income from
continuing operations per diluted share attributable to Belden
common stockholders.
Forward-Looking Statements
This release contains, and any statements made by us concerning
the subject matter of this release contain, forward-looking
statements, including our expectations for the first quarter and
full year 2023 and adjusted EPS for 2025. Forward-looking
statements also include any statements regarding future financial
performance (including revenues, growth, expenses, earnings,
margins, cash flows, dividends, capital expenditures and financial
condition), plans and objectives, and related assumptions. In some
cases these statements are identifiable through the use of words
such as “anticipate,” “believe,” “estimate,” “forecast,” “guide,”
“expect,” “intend,” “plan,” “project,” “target,” “can,” “could,”
“may,” “should,” “will,” “would” and similar expressions.
Forward-looking statements reflect management’s current beliefs and
expectations and are not guarantees of future performance. Actual
results may differ materially from those suggested by any
forward-looking statements for a number of reasons, including,
without limitation: the impact of disruptions in the global supply
chain, including the inability to obtain raw materials and
components in sufficient quantities on commercially reasonable
terms; the lack of certainty as to the duration and magnitude of
the impact of COVID-19 and the economic recovery from that impact;
foreign and domestic political, economic and other uncertainties,
including changes in currency exchange rates; the impact of a
challenging global economy or a downturn in served markets; the
inability to successfully complete and integrate acquisitions in
furtherance of the Company’s strategic plan; difficulty in
forecasting revenue due to the unpredictable timing of orders
related to customer projects as well as the impacts of channel
inventory; inflation and changes in the price and availability of
raw materials leading to higher input and labor costs; the
inability to execute and realize the expected benefits from
strategic initiatives (including revenue growth, cost control, and
productivity improvement programs); the inability to retain key
employees; the increased influence of chief information officers on
purchasing decisions; disruptions in the Company’s information
systems including due to cyber-attacks leading to exposures of
personally identifiable information; changes in tax laws and
variability in the Company’s quarterly and annual effective tax
rates; the competitiveness of the global markets in which we
operate; the presence of substitute products in the marketplace;
the increased prevalence of cloud computing; the inability of the
Company to develop and introduce new products and competitive
responses to our products; the inability to achieve our strategic
priorities in emerging markets; the impact of changes in global
tariffs and trade agreements; volatility in credit and foreign
exchange markets; the presence of activists proposing certain
actions by the Company; perceived or actual product failures; risks
related to the use of open source software; disruption of, or
changes in, the Company’s key distribution channels; assertions
that the Company violates the intellectual property of others and
the ownership of intellectual property by competitors and others
that prevents the use of that intellectual property by the Company;
the impact of regulatory requirements and other legal compliance
issues; the impairment of goodwill and other intangible assets and
the resulting impact on financial performance; disruptions and
increased costs attendant to collective bargaining groups and other
labor matters; and other factors.
For a more complete discussion of risk factors, please see our
Annual Report on Form 10-K for the period ended December 31, 2021,
filed with the SEC on February 15, 2022. Although the content of
this release represents our best judgment as of the date of this
report based on information currently available and reasonable
assumptions, we give no assurances that the expectations will prove
to be accurate. Deviations from the expectations may be material.
For these reasons, Belden cautions readers to not place undue
reliance on these forward-looking statements, which speak only as
of the date made. 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
Belden Inc. delivers the infrastructure that makes the digital
journey simpler, smarter and secure. We’re moving beyond
connectivity, from what we make to what we make possible through a
performance-driven portfolio, forward-thinking expertise and
purpose-built solutions. With a legacy of quality and reliability
spanning 120-plus years, we have a strong foundation to continue
building the future. We are headquartered in St. Louis and have
manufacturing capabilities in North America, Europe, Asia, and
Africa. For more information, visit us at www.belden.com; follow us
on Facebook, LinkedIn and Twitter.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230208005174/en/
Belden Investor Relations Aaron Reddington, CFA
(317) 219-9359 Investor.Relations@Belden.com
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