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 fourth quarter and full year 2015 results for the period ended December 31, 2015.
Fourth Quarter 2015 Highlights
- Delivered GAAP fourth quarter revenues of $597.2 million, and adjusted fourth quarter revenues of $602.5 million;
- Expanded adjusted gross profit margins to a record 43.1%, up 570 basis points from 37.4% in the year-ago period;
- Generated record adjusted EBITDA of $114.6 million, an improvement of 14.9% year over year, representing 19.0% of revenue in the quarter;
- Achieved record adjusted EPS of $1.63 in the quarter, increasing more than 31% from the prior year period; and
- Paid down $150 million of long-term debt during the period.
Full Year 2015 Highlights
- Achieved record GAAP revenues of $2.31 billion and record adjusted revenues of $2.36 billion, the latter an increase of 7.4% year-over-year in constant currency;
- Expanded adjusted gross profit margins to a record 41.6%, increasing 460 basis points from 37.0% in the year-ago period;
- Drove adjusted EBITDA margins to a record 17.0%, increasing 150 basis points from 15.5% in the year-ago period; and
- Delivered record adjusted EPS of $4.98, up 17.7% over last year’s $4.23.
Fourth Quarter 2015
On a GAAP basis, revenues for the quarter totaled $597.2 million, declining $11.7 million, or 1.9%, compared to $608.9 million in the fourth quarter 2014. Gross profit margin in the fourth quarter was 41.9%, increasing 620 basis points from 35.7% in the year-ago period. Operating income was $57.0 million, an increase of 31.8% from the prior-year period. Operating profit margin in the fourth quarter was 9.5%, increasing from 7.1% in the year-ago period. EPS totaled $1.17, compared to $0.35 in the fourth quarter 2014, a year-over-year increase of 234%. The Company recognized an income tax benefit for the quarter, primarily as a result of the recognition of a significant amount of foreign tax credits.
Adjusted revenues for the quarter totaled $602.5 million, declining $11.2 million, or 1.8%, compared to $613.7 million in the fourth quarter 2014. Adjusted gross profit margin in the fourth quarter was 43.1%, increasing 570 basis points from 37.4% in the year-ago period. Adjusted EBITDA margin in the fourth quarter was 19.0%, increasing 270 basis points from 16.3% in the year-ago period. Adjusted EPS totaled $1.63, compared to $1.24 in the fourth quarter 2014, a year-over-year increase of 31.5%. 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, “We are thrilled to report the record results noted above. Despite a host of challenging macroeconomic factors, our attractive portfolio, robust business system, and dedicated global team were up to the challenge. This level of earnings growth and margin expansion, in this macroeconomic environment, is obviously quite special.”
Full Year 2015
On a GAAP basis, revenues for the year totaled $2.309 billion, up slightly, compared to $2.308 billion in the full year 2014. Gross profit margin in 2015 was 39.8%, increasing 430 basis points from 35.5% in the year-ago period. Operating profit margin in 2015 was 6.1%, decreasing 100 basis points from 7.1% in the year-ago period. EPS totaled $1.55, compared to $1.69 in 2014, a year-over-year decrease of 8.3%. The year-over-year decrease in both operating profit margin and EPS was largely a result of amortization of intangibles from Tripwire. The Company recognized an income tax benefit for the year, primarily as a result of the recognition of a significant amount of foreign tax credits.
Adjusted revenues for the year totaled $2.361 billion, up $41 million, or 1.8%, compared to $2.320 billion in 2014. Adjusted gross profit margin in 2015 was 41.6%, increasing 460 basis points from 37.0% in the year-ago period. Adjusted EBITDA margin in 2015 was 17.0%, increasing 150 basis points from 15.5% in the year-ago period. Adjusted EPS totaled $4.98, compared to $4.23 in 2014, a year-over-year increase of 17.7%.
Mr. Stroup remarked, “2015 was a year in which macroeconomic factors shifted quickly and unexpectedly. As we’ve done consistently for years, share capture, effective acquisition integration and productivity initiatives allowed us to drive EBITDA margins to their highest level in company history. Adjusted EPS of $4.98 represents a company record, growing almost 18% from 2014. And finally, the repayment of $150 million of debt highlights our ability to generate cash and our commitment to reducing leverage.”
Outlook
“As we shared with you in December, we expect industrial market softness will be offset by strength in our Broadband, Enterprise, and Network Security markets. As we enter the new year, I’m encouraged by our team’s ability to outperform in a variety of market situations,” said Mr. Stroup.
The Company expects first quarter 2016 adjusted revenues to be $530 – $550 million and adjusted EPS to be $0.90 – $1.00. For the full year ending December 31, 2016, the Company continues to expect adjusted revenues to be $2.295 – $2.345 billion. The expected range of adjusted EPS continues to be $5.10 – $5.40.
On a GAAP basis, the Company expects first quarter 2016 revenues to be $528 – $548 million and EPS to be $0.11 – $0.21. For the full year ending December 31, 2016, the Company expects revenues to be $2.288 – $2.338 billion and EPS to be $2.68 – $2.98.
Earnings Conference Call
Management will host a conference call today at 8:30 am EST 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 888-287-5563; the dial-in number for participants outside the U.S. is 719-325-2432. A replay of this conference call will remain accessible in the investor relations section of the Company’s Web site for a limited time.
