ST. LOUIS–(BUSINESS WIRE)– Belden Inc. (NYSE: BDC), a global leader in high quality, end-to-end signal transmission solutions for mission-critical applications, today reported fiscal third quarter 2015 results for the period ended September 27, 2015.
Third Quarter 2015 Highlights
- Generated GAAP revenues of $579.3 million and adjusted revenues of $590.1 million;
- Achieved gross profit margins of 39.0%, increasing 270 basis points from 36.3% in the year-ago period;
- Expanded adjusted EBITDA margins to 16.5%, increasing 80 basis points from 15.7% in the year-ago period;
- Repurchased approximately 698,000 shares of Belden common stock; and
- Raised the expected range of full-year adjusted income from continuing operations per diluted share from $4.70 – $4.90 to $4.80 – $4.90.
Third Quarter 2015
On a GAAP basis, revenues for the quarter totaled $579.3 million, down $31.5 million, or 5.2%, compared to $610.8 million in the third quarter 2014. Gross profit margin in the third quarter was 39.0%, increasing 270 basis points from 36.3% in the year-ago period. Operating profit margin in the third quarter was 6.0%, decreasing 350 basis points from 9.5% in the year-ago period. Income from continuing operations per diluted share totaled $0.35, compared to $0.77 in the third quarter 2014.
Adjusted revenues for the quarter totaled $590.1 million, declining $23.0 million, or 3.8%, compared to $613.1 million in the third quarter 2014. Adjusted gross profit margin in the third quarter was 40.8%, increasing 320 basis points from 37.6% in the year-ago period. Adjusted EBITDA margin in the third quarter was 16.5%, increasing 80 basis points from 15.7% in the year-ago period. Adjusted income from continuing operations per diluted share totaled $1.14, compared to $1.15 in the third quarter 2014. Adjusted results are non-GAAP measures, and a non-GAAP reconciliation table is provided as an appendix to this release.
John Stroup, president and CEO of Belden Inc., said, “The quarter was as we expected. Soft demand in our industrial markets, driven by a strong U.S. dollar and lower oil prices, was offset by robust demand for our Enterprise, Broadband, and Network Security solutions. I’m very pleased with our team’s ability to execute in a challenging environment, as evidenced by continued margin expansion and strong free cash flow.”
Outlook
“Despite a challenging economic environment, the business is benefitting from a number of favorable secular trends that we expect will continue the remainder of this year and next. Moreover, our ability to capture share and drive productivity provide us with the confidence to guide full-year earnings growth in the range of 13% to 16%. We expect free cash flow in the fourth quarter to be robust,” said Stroup.
The Company expects fourth quarter 2015 adjusted revenues to be $595 – $615 million and adjusted income from continuing operations per diluted share to be $1.45 – $1.55. For the full year ending December 31, 2015, the Company now expects adjusted revenues to be $2.353 – $2.373 billioncompared to the previously guided range of $2.360 – $2.390 billion. The expected range of adjusted income from continuing operations per diluted share is now $4.80 – $4.90 compared to the previously guided range of $4.70 – $4.90.
On a GAAP basis, the Company expects fourth quarter 2015 revenues to be $586 – $606 million and income from continuing operations per diluted share to be $1.04 – $1.14. For the full year ending December 31, 2015, the Company now expects revenues to be $2.298 – $2.318 billion compared to the previously guided range of $2.303 – $2.333 billion. The expected range of income from continuing operations per diluted share is now $1.43 – $1.53compared to the previously guided range of $0.94 – $1.14.
Earnings Conference Call
Management will host a conference call today at 8:30 am EDT to discuss results of the quarter and full-year. 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 888-256-9157; the dial-in number for participants outside the U.S. is 913-312-0977. A replay of this conference call will remain accessible in the investor relations section of the Company’s website for a limited time.
