Business Wire | Feb 10, 2021 07:30AM EST

Belden Reports Results for Fourth Quarter 2020 and Announces CFO Transition

Feb. 10, 2021

ST. LOUIS--(BUSINESS WIRE)--Feb. 10, 2021--Belden Inc. (NYSE: BDC), a leading global supplier of specialty networking solutions, today reported fiscal fourth quarter and full year 2020 results for the period ended December 31, 2020 and announced a CFO transition.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210210005261/en/

Jeremy Parks, Chief Financial Officer of Belden Inc. (Photo: Business Wire)

Fourth Quarter 2020

Revenues for the quarter totaled $498.5 million, compared to $549.7 million in the prior-year period. EPS totaled $0.35 compared to $0.05 in the fourth quarter 2019. EPS in the prior year period was negatively impacted by additional charges related to the Tax Cuts and Jobs Act.

Adjusted EPS was $0.90 compared to $1.20 in the fourth quarter 2019. Adjusted results are non-GAAP measures, and a non-GAAP reconciliation table is provided as an appendix to this release.

Roel Vestjens, President and CEO of Belden Inc., said, "Demand trends improved in the fourth quarter, and I am pleased to report that revenues, earnings, and cash flow exceeded our initial expectations. We delivered $15 million in quarterly run rate savings associated with our SG&A cost reduction program, and we are committed to delivering the full $60 million in annual savings in 2021."

Full Year 2020

Revenues for the year totaled $1.863 billion, compared to $2.131 billion in the full year 2019. EPS was $1.21 compared to $2.15 in 2019. Adjusted EPS was $2.75 compared to $4.52 in 2019.

Mr. Vestjens remarked, "2020 was a truly unprecedented year, with each of us facing significant challenges related to the global pandemic, both personally and professionally. I am extremely proud of the way our global workforce responded to these challenges and maintained a sharp focus on supporting our customers and executing our strategic plans while maintaining the safest possible working conditions. During the year, we took bold steps to improve our portfolio and streamline our cost structure, while continuing to fund compelling growth initiatives. We expect these actions to drive significantly improved business performance going forward."

Outlook

"2021 will be a year of recovery in most of our key markets. During the year, we expect to complete our transformative portfolio actions and turn the focus to accelerating organic growth. To that end, we are progressing with our ongoing divestiture process, and we closed the previously-announced acquisition of OTN Systems N.V. in late January. This exciting acquisition brings innovative networking products and technologies that will provide additional opportunities for profitable growth in our Industrial Solutions business. I am encouraged by our recent order rates, and confident in our ability to achieve our financial goals and drive superior returns for our shareholders," said Mr. Vestjens.

The Company expects first quarter 2021 revenues to be $490 - $505 million. For the year ending December 31, 2021, the Company expects revenues to be $1.990 - $2.050 billion.

The Company expects first quarter 2021 GAAP EPS to be $0.22 - $0.32. For the year ending December 31, 2021, the Company expects GAAP EPS to be $1.70 - $2.10.

The Company expects first quarter 2021 adjusted EPS to be $0.60 - $0.70. For the year ending December 31, 2021, the Company expects adjusted EPS to be $2.90 - $3.30.

CFO Transition

The Company also announced today that its Senior Vice President, Finance, and Chief Financial Officer, Henk Derksen, will be leaving Belden in March to pursue other endeavors. Mr. Derksen has been with the Company since 2000, and during that time has helped lead the Company's transition into the leading supplier of networking solutions that it is today. Mr. Derksen's successor will be Jeremy Parks. Mr. Parks worked with the Company from 2008 through August 2020, most recently as the Vice President of Finance for the Company's Industrial Solutions segment, after which he joined International Wire Group, Inc. as its Chief Financial Officer. Mr. Vestjens commented, "Henk's contributions to our success over the last 20 years are immeasurable. He has tackled every task before him with talent and determination, and he has demonstrated flawless integrity in everything that he has done. We will miss him, and wish him well as he pursues his next challenge. We are excited to have Jeremy back in the Belden family as we embark on the next chapter in our evolution." Mr. Derksen will continue to serve as CFO through the filing of the Company's 2020 Form 10-K, at which time Mr. Parks will assume the role. Mr. Derksen will stay on with the Company through mid-March to aid the transition.

Earnings Conference Call

Management will host a conference call today at 8:30 am ET to discuss results of the quarter. 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 in the U.S. is 866-248-8441, with confirmation code 7695993. 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)

All references to EPS within this earnings release refer to income from continuing operations per diluted share attributable to Belden common stockholders.

Use of Non-GAAP Financial Information

Adjusted results are non-GAAP measures that reflect certain adjustments the Company makes to provide insight into operating results. GAAP to non-GAAP reconciliations accompany the condensed consolidated financial statements included in this release and have been published to the investor relations section of the Company's website at https://investor.belden.com.

BELDEN INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)

Three Months Ended Twelve Months Ended

December December 31, December 31, December 31, 31, 2019 2020 2019 2020



(In thousands, except per share data)

Revenues $ 498,540 $ 549,688 $ 1,862,716 $ 2,131,278

Cost of sales (323,284 ) (346,916 ) (1,199,427 ) (1,337,773 )

Gross profit 175,256 202,772 663,289 793,505

Selling, generaland administrative (91,059 ) (118,675 ) (366,188 ) (417,329 )expenses

Research anddevelopment (25,663 ) (22,346 ) (107,296 ) (94,360 )expenses

Amortization of (16,089 ) (18,351 ) (64,395 ) (74,609 )intangibles

Operating income 42,445 43,400 125,410 207,207

Interest expense, (15,700 ) (13,863 ) (58,888 ) (55,814 )net

Non-operatingpension benefit (2,474 ) (667 ) (395 ) 1,017 (cost)

Income fromcontinuing 24,271 28,870 66,127 152,410 operations beforetaxes

Income tax expense (8,501 ) (26,340 ) (11,724 ) (42,519 )

Income fromcontinuing 15,770 2,530 54,403 109,891 operations

Gain (loss) fromdiscontinued 3,882 (149,759 ) (99,513 ) (486,667 )operations, net oftax

Loss on disposalof discontinued (12,691 ) - (9,948 ) - operations, net oftax

Net income (loss) 6,961 (147,229 ) (55,058 ) (376,776 )

Less: Net incomeattributable to 25 179 104 239 noncontrollinginterest

Net income (loss)attributable to 6,936 (147,408 ) (55,162 ) (377,015 )Belden

Less: Preferred - - - 18,437 stock dividends

Net income (loss)attributable to $ 6,936 $ (147,408 ) $ (55,162 ) $ (395,452 )Belden commonstockholders



Weighted averagenumber of common shares andequivalents:

Basic 44,620 45,457 44,778 42,203

Diluted 44,848 45,684 44,937 42,416



Basic income(loss) per shareattributable to Belden commonstockholders:

Continuingoperationsattributable to $ 0.35 $ 0.05 $ 1.21 $ 2.16 Belden commonstockholders

Discontinuedoperationsattributable to 0.09 (3.29 ) (2.22 ) (11.53 )Belden commonstockholders

Disposal ofdiscontinuedoperations (0.28 ) - (0.22 ) - attributable toBelden commonstockholders

Net income (loss)per shareattributable to $ 0.16 $ (3.24 ) $ (1.23 ) $ (9.37 )Belden commonstockholders

Diluted income(loss) per shareattributable to Belden commonstockholders:

Continuingoperationsattributable to $ 0.35 $ 0.05 $ 1.21 $ 2.15 Belden commonstockholders

Discontinuedoperationsattributable to 0.09 (3.29 ) (2.22 ) (11.53 )Belden commonstockholders

Disposal ofdiscontinuedoperations (0.28 ) - (0.22 ) - attributable toBelden commonstockholders

Net income (loss)per shareattributable to $ 0.15 $ (3.24 ) $ (1.23 ) $ (9.37 )Belden commonstockholders



Common stockdividends declared $ 0.05 $ 0.05 $ 0.20 $ 0.20 per share

BELDEN INC.OPERATING SEGMENT INFORMATION(Unaudited)

Effective January 1, 2020, we transferred our West Penn Wire business and multi-conductor product lines from the Enterprise Solutions segment to the Industrial Solutions segment, and as such, have recast the prior period segment information.

Enterprise Solutions

Industrial Solutions

Total Segments

(In thousands, except percentages)

For the three months ended December 31, 2020

Segment Revenues

$

227,731

$

270,809

$

498,540

Segment EBITDA

26,140

47,259

73,399

Segment EBITDA margin

11.5

%

17.5

%

14.7

%

Depreciation expense

5,447

5,954

11,401

Amortization of intangibles

5,396

10,693

16,089

Amortization of software development intangible assets

61

515

576

Severance, restructuring, and acquisition integration costs

1,410

1,400

2,810

For the three months ended December 31, 2019

Segment Revenues

$

246,397

$

303,291

$

549,688

Segment EBITDA

33,852

60,854

94,706

Segment EBITDA margin

13.7

%

20.1

%

17.2

%

Depreciation expense

5,137

5,282

10,419

Amortization of intangibles

5,630

12,721

18,351

Amortization of software development intangible assets

55

263

318

Severance, restructuring, and acquisition integration costs

5,238

15,740

20,978

Purchase accounting effects of acquisitions

60

-

60

For the twelve months ended December 31, 2020

Segment Revenues

$

872,415

$

990,301

$

1,862,716

Segment EBITDA

99,333

147,626

246,959

Segment EBITDA margin

11.4

%

14.9

%

13.3

%

Depreciation expense

20,655

21,815

42,470

Amortization of intangibles

21,662

42,733

64,395

Amortization of software development intangible assets

245

1,576

1,821

Severance, restructuring, and acquisition integrations costs

7,720

4,538

12,258

Purchase accounting effects of acquisitions

125

-

125

For the twelve months ended December 31, 2019

Segment Revenues

$

946,041

$

1,185,237

$

2,131,278

Segment EBITDA

126,925

226,110

353,035

Segment EBITDA margin

13.4

%

19.1

%

16.6

%

Depreciation expense

19,771

20,638

40,409

Amortization of intangibles

22,324

52,285

74,609

Amortization of software development intangible assets

175

350

525

Severance, restructuring, and acquisition integrations costs

10,808

15,736

26,544

Purchase accounting effects of acquisitions

592

-

592

BELDEN INC.OPERATING SEGMENT INFORMATION(Unaudited)

Effective January 1, 2020, we transferred our West Penn Wire business andmulti-conductor product lines from the Enterprise Solutions segment to theIndustrial Solutions segment, and as such, have recast the prior period segmentinformation.

Enterprise Industrial Total Solutions Solutions Segments



(In thousands, except percentages)

For the three months ended December 31, 2020

Segment Revenues $ 227,731 $ 270,809 $ 498,540

Segment EBITDA 26,140 47,259 73,399

Segment EBITDA margin 11.5 % 17.5 % 14.7 %

Depreciation expense 5,447 5,954 11,401

Amortization of intangibles 5,396 10,693 16,089

Amortization of software 61 515 576 development intangible assets

Severance, restructuring, and 1,410 1,400 2,810 acquisition integration costs



For the three months ended December 31, 2019

Segment Revenues $ 246,397 $ 303,291 $ 549,688

Segment EBITDA 33,852 60,854 94,706

Segment EBITDA margin 13.7 % 20.1 % 17.2 %

Depreciation expense 5,137 5,282 10,419

Amortization of intangibles 5,630 12,721 18,351

Amortization of software 55 263 318 development intangible assets

Severance, restructuring, and 5,238 15,740 20,978 acquisition integration costs

Purchase accounting effects of 60 - 60 acquisitions



For the twelve months ended December 31, 2020

Segment Revenues $ 872,415 $ 990,301 $ 1,862,716

Segment EBITDA 99,333 147,626 246,959

Segment EBITDA margin 11.4 % 14.9 % 13.3 %

Depreciation expense 20,655 21,815 42,470

Amortization of intangibles 21,662 42,733 64,395

Amortization of software 245 1,576 1,821 development intangible assets

Severance, restructuring, and 7,720 4,538 12,258 acquisition integrations costs

Purchase accounting effects of 125 - 125 acquisitions



For the twelve months ended December 31, 2019

Segment Revenues $ 946,041 $ 1,185,237 $ 2,131,278

Segment EBITDA 126,925 226,110 353,035

Segment EBITDA margin 13.4 % 19.1 % 16.6 %

Depreciation expense 19,771 20,638 40,409

Amortization of intangibles 22,324 52,285 74,609

Amortization of software 175 350 525 development intangible assets

Severance, restructuring, and 10,808 15,736 26,544 acquisition integrations costs

Purchase accounting effects of 592 - 592 acquisitions

BELDEN INC.OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

2020

December 31,

2019

December 31,

2020

December 31,

2019

(In thousands)

Total Segment Revenues

$

498,540

$

549,688

$

1,862,716

$

2,131,278

Deferred revenue adjustments

-

-

-

-

Consolidated Revenues

$

498,540

$

549,688

$

1,862,716

$

2,131,278

Total Segment EBITDA

$

73,399

$

94,706

$

246,959

$

353,037

Total non-operating pension benefit (cost)

(2,474

)

(667

)

(395

)

1,017

Non-operating pension settlement loss

3,153

-

3,153

-

Eliminations

(78

)

(1,180

)

(480

)

(3,151

)

Consolidated Adjusted EBITDA (1)

74,000

92,859

249,237

350,903

Amortization of intangibles

(16,089

)

(18,351

)

(64,395

)

(74,609

)

Interest expense, net

(15,700

)

(13,863

)

(58,888

)

(55,814

)

Depreciation expense

(11,401

)

(10,419

)

(42,470

)

(40,409

)

Severance, restructuring, and acquisition integration costs

(2,810

)

(20,978

)

(12,258

)

(26,544

)

Non-operating pension settlement loss

(3,153

)

-

(3,153

)

-

Amortization of software development intangible assets

(576

)

(318

)

(1,821

)

(525

)

Purchase accounting effects related to acquisitions

-

(60

)

(125

)

(592

)

Income from continuing operations before taxes

$

24,271

$

28,870

$

66,127

$

152,410

(1) Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation of Non-GAAP Measures for additional information. BELDEN INC.OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS(Unaudited)

Three Months Ended Twelve Months Ended

December December December 31, December 31, 31, 31, 2020 2019 2020 2019



(In thousands)

Total Segment $ 498,540 $ 549,688 $ 1,862,716 $ 2,131,278 Revenues

Deferred revenue - - - - adjustments

Consolidated $ 498,540 $ 549,688 $ 1,862,716 $ 2,131,278 Revenues



Total Segment $ 73,399 $ 94,706 $ 246,959 $ 353,037 EBITDA

Total non-operatingpension benefit (2,474 ) (667 ) (395 ) 1,017 (cost)

Non-operatingpension settlement 3,153 - 3,153 - loss

Eliminations (78 ) (1,180 ) (480 ) (3,151 )

Consolidated 74,000 92,859 249,237 350,903 Adjusted EBITDA (1)

Amortization of (16,089 ) (18,351 ) (64,395 ) (74,609 )intangibles

Interest expense, (15,700 ) (13,863 ) (58,888 ) (55,814 )net

Depreciation (11,401 ) (10,419 ) (42,470 ) (40,409 )expense

Severance,restructuring, and (2,810 ) (20,978 ) (12,258 ) (26,544 )acquisitionintegration costs

Non-operatingpension settlement (3,153 ) - (3,153 ) - loss

Amortization ofsoftware (576 ) (318 ) (1,821 ) (525 )developmentintangible assets

Purchase accountingeffects related to - (60 ) (125 ) (592 )acquisitions

Income fromcontinuing $ 24,271 $ 28,870 $ 66,127 $ 152,410 operations beforetaxes

(1) Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation ofNon-GAAP Measures for additional information.BELDEN INC.CONDENSED CONSOLIDATED BALANCE SHEETS

December 31, 2020

December 31, 2019

(Unaudited)

(In thousands)

ASSETS

Current assets:

Cash and cash equivalents

$

501,994

$

407,480

Receivables, net

296,817

334,634

Inventories, net

247,298

231,333

Other current assets

52,289

29,172

Current assets of discontinued operations

-

375,135

Total current assets

1,098,398

1,377,754

Property, plant and equipment, less accumulated depreciation

368,620

345,918

Operating lease right-of-use assets

54,787

62,251

Goodwill

1,251,938

1,243,669

Intangible assets, less accumulated amortization

287,071

339,505

Deferred income taxes

29,536

25,216

Other long-lived assets

49,384

12,446

$

3,139,734

$

3,406,759

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

244,120

$

268,466

Accrued liabilities

276,641

283,799

Current liabilities of discontinued operations

-

170,279

Total current liabilities

520,761

722,544

Long-term debt

1,573,726

1,439,484

Postretirement benefits

160,400

136,227

Deferred income taxes

38,400

48,725

Long-term operating lease liabilities

46,398

55,652

Other long-term liabilities

42,998

38,308

Stockholders' equity:

Common stock

503

503

Additional paid-in capital

823,605

811,955

Retained earnings

450,876

518,004

Accumulated other comprehensive loss

(191,851

)

(63,418

)

Treasury stock

(332,552

)

(307,197

)

Total Belden stockholders' equity

750,581

959,847

Noncontrolling interests

6,470

5,972

Total stockholders' equity

757,051

965,819

$

3,139,734

$

3,406,759

BELDEN INC.CONDENSED CONSOLIDATED BALANCE SHEETS

December 31, December 31, 2020 2019

(Unaudited)

(In thousands)

ASSETS

Current assets:

Cash and cash equivalents $ 501,994 $ 407,480

Receivables, net 296,817 334,634

Inventories, net 247,298 231,333

Other current assets 52,289 29,172

Current assets of discontinued operations - 375,135

Total current assets 1,098,398 1,377,754

Property, plant and equipment, less 368,620 345,918 accumulated depreciation

Operating lease right-of-use assets 54,787 62,251

Goodwill 1,251,938 1,243,669

Intangible assets, less accumulated 287,071 339,505 amortization

Deferred income taxes 29,536 25,216

Other long-lived assets 49,384 12,446

$ 3,139,734 $ 3,406,759



LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable $ 244,120 $ 268,466

Accrued liabilities 276,641 283,799

Current liabilities of discontinued operations - 170,279

Total current liabilities 520,761 722,544

Long-term debt 1,573,726 1,439,484

Postretirement benefits 160,400 136,227

Deferred income taxes 38,400 48,725

Long-term operating lease liabilities 46,398 55,652

Other long-term liabilities 42,998 38,308

Stockholders' equity:

Common stock 503 503

Additional paid-in capital 823,605 811,955

Retained earnings 450,876 518,004

Accumulated other comprehensive loss (191,851 ) (63,418 )

Treasury stock (332,552 ) (307,197 )

Total Belden stockholders' equity 750,581 959,847

Noncontrolling interests 6,470 5,972

Total stockholders' equity 757,051 965,819

$ 3,139,734 $ 3,406,759

BELDEN INC.CONDENSED CONSOLIDATED CASH FLOW STATEMENTS(Unaudited)

Twelve Months Ended

December 31, 2020

December 31, 2019

(In thousands)

Cash flows from operating activities:

Net loss

$

(55,058

)

$

(376,776

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Asset impairment of discontinued operations

113,007

521,441

Depreciation and amortization

108,687

139,259

Share-based compensation

20,030

17,751

Loss on disposal of business

946

-

Deferred income tax benefit

(19,410

)

(23,540

)

Changes in operating assets and liabilities, net of the effects of currency exchange rate changes, acquired businesses and disposals:

Receivables

70,707

22,926

Inventories

(8,507

)

44,477

Accounts payable

(43,567

)

(41,527

)

Accrued liabilities

7,374

(17,654

)

Income taxes

(22,823

)

5,497

Other assets

2,018

(16,118

)

Other liabilities

(40

)

1,157

Net cash provided by operating activities

173,364

276,893

Cash flows from investing activities:

Capital expenditures

(90,215

)

(110,002

)

Cash from (used for) business acquisitions, net of cash acquired

590

(74,392

)

Proceeds from disposal of tangible assets

3,161

25

Proceeds from disposal of business, net of cash sold

54,821

-

Net cash used for investing activities

(31,643

)

(184,369

)

Cash flows from financing activities:

Borrowings on revolver

190,000

-

Payments under borrowing arrangements

(190,000

)

-

Payments under share repurchase program

(35,000

)

(50,000

)

Payment of earnout consideration

(29,300

)

-

Cash dividends paid

(9,029

)

(34,439

)

Withholding tax payments for share-based payment awards

(1,388

)

(2,149

)

Other

(194

)

(360

)

Net cash used for financing activities

(74,911

)

(86,948

)

Effect of foreign currency exchange rate changes on cash and cash equivalents

9,299

(301

)

Increase in cash and cash equivalents

76,109

5,275

Cash and cash equivalents, beginning of period

425,885

420,610

Cash and cash equivalents, end of period

$

501,994

$

425,885

For all periods presented, the Consolidated Cash Flow Statement includes the results of the Grass Valley disposal group up to the disposal date, July 2, 2020.

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.

BELDEN INC.CONDENSED CONSOLIDATED CASH FLOW STATEMENTS(Unaudited)

Twelve Months Ended

December December 31, 31, 2020 2019



(In thousands)

Cash flows from operating activities:

Net loss $ (55,058 ) $ (376,776 )

Adjustments to reconcile net loss to net cash provided by operating activities:

Asset impairment of discontinued operations 113,007 521,441

Depreciation and amortization 108,687 139,259

Share-based compensation 20,030 17,751

Loss on disposal of business 946 -

Deferred income tax benefit (19,410 ) (23,540 )

Changes in operating assets and liabilities, netof the effects of currency exchange rate changes, acquired businesses and disposals:

Receivables 70,707 22,926

Inventories (8,507 ) 44,477

Accounts payable (43,567 ) (41,527 )

Accrued liabilities 7,374 (17,654 )

Income taxes (22,823 ) 5,497

Other assets 2,018 (16,118 )

Other liabilities (40 ) 1,157

Net cash provided by operating activities 173,364 276,893

Cash flows from investing activities:

Capital expenditures (90,215 ) (110,002 )

Cash from (used for) business acquisitions, net of 590 (74,392 )cash acquired

Proceeds from disposal of tangible assets 3,161 25

Proceeds from disposal of business, net of cash 54,821 - sold

Net cash used for investing activities (31,643 ) (184,369 )

Cash flows from financing activities:

Borrowings on revolver 190,000 -

Payments under borrowing arrangements (190,000 ) -

Payments under share repurchase program (35,000 ) (50,000 )

Payment of earnout consideration (29,300 ) -

Cash dividends paid (9,029 ) (34,439 )

Withholding tax payments for share-based payment (1,388 ) (2,149 )awards

Other (194 ) (360 )

Net cash used for financing activities (74,911 ) (86,948 )

Effect of foreign currency exchange rate changes 9,299 (301 )on cash and cash equivalents

Increase in cash and cash equivalents 76,109 5,275

Cash and cash equivalents, beginning of period 425,885 420,610

Cash and cash equivalents, end of period $ 501,994 $ 425,885

For all periods presented, the Consolidated Cash Flow Statement includes the results of the Grass Valley disposal group up to the disposal date, July 2, 2020.

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 December 31, December 31, December 31, 31, 2019 2020 2019 2020



(In thousands, except percentages and per share amounts)

GAAP and adjusted $ 498,540 $ 549,688 $ 1,862,716 $ 2,131,278 revenues



GAAP gross profit $ 175,256 $ 202,772 $ 663,289 $ 793,505

Amortization ofsoftware 576 318 1,821 525 developmentintangible assets

Severance,restructuring, and 482 2,333 704 3,425 acquisitionintegration costs

Purchaseaccounting effects - 60 125 592 related toacquisitions

Adjusted gross $ 176,314 $ 205,483 $ 665,939 $ 798,047 profit



GAAP gross profit 35.2 % 36.9 % 35.6 % 37.2 %margin

Adjusted gross 35.4 % 37.4 % 35.8 % 37.4 %profit margin



GAAP selling,general and $ (91,059 ) $ (118,675 ) $ (366,188 ) $ (417,329 )administrativeexpenses

Severance,restructuring, and 2,328 18,645 11,554 23,119 acquisitionintegration costs

Adjusted selling,general and $ (88,731 ) $ (100,030 ) $ (354,634 ) $ (394,210 )administrativeexpenses



GAAP and adjustedresearch and $ (25,663 ) $ (22,346 ) $ (107,296 ) $ (94,360 )developmentexpenses



GAAP net income(loss) $ 6,936 $ (147,408 ) $ (55,162 ) $ (377,015 )attributable toBelden

Interest expense, 15,700 13,863 58,888 55,814 net

Loss (gain) fromdiscontinued (3,882 ) 149,759 99,513 486,667 operations, net oftax

Loss on disposalof discontinued 12,691 - 9,948 - operations, net oftax

Income tax expense 8,501 26,340 11,724 42,519

Non-operatingpension settlement 3,153 - 3,153 - loss

Noncontrolling 25 179 104 239 interest

Totalnon-operating 36,188 190,141 183,330 585,239 adjustments

Amortization of 16,089 18,351 64,395 74,609 intangible assets

Severance,restructuring, and 2,810 20,978 12,258 26,544 acquisitionintegration costs

Amortization ofsoftware 576 318 1,821 525 developmentintangible assets

Purchaseaccounting effects - 60 125 592 related toacquisitions

Total operating 19,475 39,707 78,599 102,270 income adjustments

Depreciation 11,401 10,419 42,470 40,409 expense

Adjusted EBITDA $ 74,000 $ 92,859 $ 249,237 $ 350,903



GAAP net income 1.4 % (26.8 ) (3.0 ) (17.7 )(loss) margin % % %

Adjusted EBITDA 14.8 % 16.9 % 13.4 % 16.5 %margin



GAAP net income(loss) $ 6,936 $ (147,408 ) $ (55,162 ) $ (377,015 )attributable toBelden

Operating incomeadjustments from 19,475 39,707 78,599 102,270 above

Loss (gain) fromdiscontinued (3,882 ) 149,759 99,513 486,667 operations, net oftax

Loss on disposalof discontinued 12,691 - 9,948 - operations, net oftax

Non-operatingpension settlement 3,153 - 3,153 - loss

Tax effect of 2,172 12,796 (12,515 ) (1,948 )adjustments above

Adjusted netincome $ 40,545 $ 54,854 $ 123,536 $ 209,974 attributable toBelden



GAAP net income(loss) $ 6,936 $ (147,408 ) $ (55,162 ) $ (377,015 )attributable toBelden

Loss (gain) fromdiscontinued (3,882 ) 149,759 99,513 486,667 operations, net oftax

Loss on disposalof discontinued 12,691 - 9,948 - operations, net oftax

Less: Preferred - - - (18,437 )stock dividends

GAAP net incomefrom continuingoperations $ 15,745 $ 2,351 $ 54,299 $ 91,215 attributable toBelden commonstockholders



Adjusted netincome $ 40,545 $ 54,854 $ 123,536 $ 209,974 attributable toBelden

Less: Preferred - - - (18,437 )stock dividends

Adjusted netincome fromcontinuingoperations $ 40,545 $ 54,854 $ 123,536 $ 191,537 attributable toBelden commonstockholders

GAAP income fromcontinuingoperations perdiluted share $ 0.35 $ 0.05 $ 1.21 $ 2.15 attributable toBelden commonstockholders

Adjusted incomefrom continuingoperations perdiluted share $ 0.90 $ 1.20 $ 2.75 $ 4.52 attributable toBelden commonstockholders



GAAP and adjusteddiluted weighted 44,848 45,684 44,937 42,416 average shares

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 December December December 31, 31, 31, 31,

2020 2019 2020 2019



(In thousands)

GAAP net cash provided $ 134,675 $ 187,376 $ 173,364 $ 276,893 by operating activities

Capital expenditures,net of proceeds from (33,335 ) (35,928 ) (87,054 ) (109,977 )the disposal oftangible assets

Non-GAAP free cash flow $ 101,340 $ 151,448 $ 86,310 $ 166,916

BELDEN INC.RECONCILIATION OF NON-GAAP MEASURES2021 Earnings Guidance

Year Ended

Three Months Ended

December 31, 2021

April 4, 2021

(In thousands)

GAAP income from continuing operations per diluted share attributable to Belden common stockholders

$1.70 - $2.10

$0.22 - $0.32

Amortization of intangible assets

0.67

0.20

Severance, restructuring, and acquisition integration costs

0.45

0.10

Purchase accounting effects related to acquisitions

0.08

0.08

Adjusted income from continuing operations per diluted share attributable to Belden common stockholders

$2.90 - $3.30

$0.60 - $0.70

Our guidance for income from continuing operations per diluted share attributable to Belden common stockholders 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, purchase accounting effects related to acquisitions, severance, restructuring, and acquisition integration costs, gains (losses) recognized on the disposal of tangible assets, gains (losses) on debt extinguishment, discontinued operations, and other gains (losses) related to events or conditions that are not yet known.

Forward-Looking Statements

This release and any statements made by us concerning the subject matter of this release may contain forward-looking statements, including our expectations for the first quarter and full-year 2021 and the results of our restructuring program. Forward-looking statements also include any statements regarding future financial performance (including revenues, 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 lack of certainty as to the duration and magnitude of the impact of COVID-19 and the economic recovery from that impact; the results of the Company's impairment analysis, which could reduce EPS, adjusted EPS, and various other financial metrics; the presence of substitute products in the marketplace; the inability of the Company to develop and introduce new products and competitive responses to our products; the increased prevalence of cloud computing; the inability to execute and realize the expected benefits from strategic initiatives (including revenue growth, cost control, and productivity improvement programs); the inability to achieve our strategic priorities in emerging markets; the inability to successfully complete and integrate acquisitions in furtherance of the Company's strategic plan; foreign and domestic political, economic and other uncertainties, including changes in currency exchange rates; changes in tax laws and variability in the Company's quarterly and annual effective tax rates; the impact of a challenging global economy or a downturn in served markets; the impact of changes in global tariffs and trade agreements; difficulty in forecasting revenue due to the unpredictable timing of orders related to customer projects; the competitiveness of the global markets in which we operate; volatility in credit and foreign exchange markets; the cost and availability of raw materials including copper, plastic compounds, electronic components, and other materials; the inability to obtain components in sufficient quantities on commercially reasonable terms; disruptions in the Company's information systems including due to cyber-attacks; 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; the inability to retain senior management and key employees; 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 year ended December 31, 2019, filed with the SEC on February 11, 2020, as well as enhancements made to our risk factors throughout the year, including as disclosed in our first quarter 2020 Form 10-Q filed with the SEC on May 4, 2020. 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 a comprehensive product portfolio designed to meet the mission-critical network infrastructure needs of industrial and enterprise 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. For more information, visit us at www.belden.com or follow us on Twitter @BeldenInc.

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CONTACT: Belden Investor Relations 314-854-8054 Investor.Relations@Belden.com