Business Wire | Oct 28, 2020 07:30AM EDT

Belden Reports Results for Third Quarter 2020

Oct. 28, 2020

ST. LOUIS--(BUSINESS WIRE)--Oct. 28, 2020--Belden Inc. (NYSE: BDC), a leading global supplier of specialty networking solutions, today reported fiscal third quarter 2020 results for the period ended September 27, 2020.

Third Quarter 2020

Revenues for the quarter totaled $475.8 million, compared to $533.1 million in the prior-year period. EPS totaled $0.46 compared to $0.83 in the third quarter 2019.

Adjusted EPS was $0.72 compared to $1.19 in the third 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, "Business conditions improved during the third quarter, and I am pleased to report solid double-digit sequential increases in revenue, EPS and cash flow. We expect to deliver the full $15 million quarterly run rate savings in the fourth quarter 2020 associated with our $60 million SG&A cost reduction program. We are comfortable with our balance sheet and liquidity position, and as a result we repaid all remaining short-term revolver borrowings during the third quarter."

Outlook

"Demand trends and visibility in our business are improving. As a result, we are resuming our traditional guidance practices. Assuming no further material disruptions related to COVID-19, we expect modest sequential improvement in underlying demand in the fourth quarter. Throughout this challenging period, we continue to invest in our business and align our portfolio around the favorable secular trends in industrial automation, cybersecurity, broadband & 5G, and smart buildings. The Company is well positioned for improving growth and robust margin expansion," said Mr. Vestjens.

The Company expects fourth quarter 2020 revenues to be $460 - $485 million. For the full year ending December 31, 2020, the Company expects revenues to be $1.824 - $1.849 billion.

The Company expects fourth quarter 2020 GAAP EPS to be $0.13 - $0.28. For the full year ending December 31, 2020, the Company expects GAAP EPS of $0.99 - $1.14.

The Company expects fourth quarter 2020 adjusted EPS to be $0.63 - $0.78. For the full year ending December 31, 2020, the Company expects adjusted EPS of $2.47 - $2.62.

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 http://investor.belden.com. The dial-in number for participants in the U.S. is 888-599-8686; the dial-in number for participants outside the U.S. is 720-543-0302. 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 http://investor.belden.com.

BELDEN INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended Nine Months Ended

September September 29, September 27, September 29, 27, 2019 2020 2019 2020



(In thousands, except per share data)

Revenues $ 475,839 $ 533,098 $ 1,364,176 $ 1,581,590

Cost of sales (308,247) (334,293) (876,143) (990,857)

Gross profit 167,592 198,805 488,033 590,733

Selling, generaland (85,037) (98,245) (275,129) (298,654) administrativeexpenses

Research anddevelopment (30,324) (23,992) (81,633) (72,014) expenses

Amortization of (16,104) (19,026) (48,306) (56,258) intangibles

Operating income 36,127 57,542 82,965 163,807

Interest expense, (15,607) (14,002) (43,188) (41,951) net

Non-operating 680 544 2,079 1,684 pension benefit

Income fromcontinuing 21,200 44,084 41,856 123,540 operations beforetaxes

Income tax (631) (6,053) (3,223) (16,179) expense

Income fromcontinuing 20,569 38,031 38,633 107,361 operations

Loss fromdiscontinued (6,231) (335,046) (103,395) (336,908) operations, netof tax

Gain on disposalof discontinued 2,743 - 2,743 - operations, netof tax

Net income (loss) 17,081 (297,015) (62,019) (229,547)

Less: Net income(loss)attributable to 85 (6) 79 60 noncontrollinginterest

Net income (loss)attributable to 16,996 (297,009) (62,098) (229,607) Belden

Less: Preferred - 971 - 18,437 stock dividends

Net income (loss)attributable to $ 16,996 $ (297,980) $ (62,098) $ (248,044) Belden commonstockholders



Weighted averagenumber of common shares andequivalents:

Basic 44,567 44,444 44,834 41,090

Diluted 44,709 44,610 44,968 41,299



Basic income(loss) per shareattributable to Belden commonstockholders:

Continuingoperationsattributable to $ 0.46 $ 0.83 $ 0.86 $ 2.16 Belden commonstockholders

Discontinuedoperationsattributable to (0.14) (7.54) (2.31) (8.20) Belden commonstockholders

Disposal ofdiscontinuedoperations 0.06 - 0.06 - attributable toBelden commonstockholders

Net income (loss)per shareattributable to $ 0.38 $ (6.70) $ (1.39) $ (6.04) Belden commonstockholders

Diluted income(loss) per shareattributable to Belden commonstockholders:

Continuingoperationsattributable to $ 0.46 $ 0.83 $ 0.86 $ 2.15 Belden commonstockholders

Discontinuedoperationsattributable to (0.14) (7.54) (2.31) (8.20) Belden commonstockholders

Disposal ofdiscontinuedoperations 0.06 - 0.06 - attributable toBelden commonstockholders

Net income (loss)per shareattributable to $ 0.38 $ (6.70) $ (1.39) $ (6.04) Belden commonstockholders



Common stockdividends $ 0.05 $ 0.05 $ 0.15 $ 0.15 declared pershare

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.

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 Solutions

Industrial Solutions

Total Segments

(In thousands, except percentages)

For the three months ended September 27, 2020

Segment Revenues

$

229,097

$

246,742

$

475,839

Segment EBITDA

26,250

38,391

64,641

Segment EBITDA margin

11.5

%

15.6

%

13.6

%

Depreciation expense

5,005

5,450

10,455

Amortization of intangibles

5,408

10,696

16,104

Amortization of software development intangible assets

73

456

529

Severance, restructuring, and acquisition integration costs

1,337

20

1,357

For the three months ended September 29, 2019

Segment Revenues

$

247,236

$

285,862

$

533,098

Segment EBITDA

35,868

54,849

90,717

Segment EBITDA margin

14.5

%

19.2

%

17.0

%

Depreciation expense

4,919

5,060

9,979

Amortization of intangibles

6,269

12,757

19,026

Amortization of software development intangible assets

49

36

85

Severance, restructuring, and acquisition integration costs

3,047

-

3,047

Purchase accounting effects of acquisitions

(186)

-

(186)

For the nine months ended September 27, 2020

Segment Revenues

$

644,684

$

719,492

$

1,364,176

Segment EBITDA

73,193

100,367

173,560

Segment EBITDA margin

11.4

%

13.9

%

12.7

%

Depreciation expense

15,208

15,861

31,069

Amortization of intangibles

16,266

32,040

48,306

Amortization of software development intangible assets

184

1,061

1,245

Severance, restructuring, and acquisition integrations costs

6,310

3,138

9,448

Purchase accounting effects of acquisitions

125

-

125

For the nine months ended September 29, 2019

Segment Revenues

$

699,644

$

881,946

$

1,581,590

Segment EBITDA

93,074

165,257

258,331

Segment EBITDA margin

13.3

%

18.7

%

16.3

%

Depreciation expense

14,576

15,414

29,990

Amortization of intangibles

16,694

39,564

56,258

Amortization of software development intangible assets

120

87

207

Severance, restructuring, and acquisition integrations costs

5,566

-

5,566

Purchase accounting effects of acquisitions

532

-

532

Enterprise Industrial Total Solutions Solutions Segments



(In thousands, except percentages)

For the three months ended September 27, 2020

Segment Revenues $ 229,097 $ 246,742 $ 475,839

Segment EBITDA 26,250 38,391 64,641

Segment EBITDA margin 11.5 % 15.6 % 13.6 %

Depreciation expense 5,005 5,450 10,455

Amortization of intangibles 5,408 10,696 16,104

Amortization of software 73 456 529 development intangible assets

Severance, restructuring, and 1,337 20 1,357 acquisition integration costs



For the three months ended September 29, 2019

Segment Revenues $ 247,236 $ 285,862 $ 533,098

Segment EBITDA 35,868 54,849 90,717

Segment EBITDA margin 14.5 % 19.2 % 17.0 %

Depreciation expense 4,919 5,060 9,979

Amortization of intangibles 6,269 12,757 19,026

Amortization of software 49 36 85 development intangible assets

Severance, restructuring, and 3,047 - 3,047 acquisition integration costs

Purchase accounting effects of (186) - (186) acquisitions



For the nine months ended September 27, 2020

Segment Revenues $ 644,684 $ 719,492 $ 1,364,176

Segment EBITDA 73,193 100,367 173,560

Segment EBITDA margin 11.4 % 13.9 % 12.7 %

Depreciation expense 15,208 15,861 31,069

Amortization of intangibles 16,266 32,040 48,306

Amortization of software 184 1,061 1,245 development intangible assets

Severance, restructuring, and 6,310 3,138 9,448 acquisition integrations costs

Purchase accounting effects of 125 - 125 acquisitions



For the nine months ended September 29, 2019

Segment Revenues $ 699,644 $ 881,946 $ 1,581,590

Segment EBITDA 93,074 165,257 258,331

Segment EBITDA margin 13.3 % 18.7 % 16.3 %

Depreciation expense 14,576 15,414 29,990

Amortization of intangibles 16,694 39,564 56,258

Amortization of software 120 87 207 development intangible assets

Severance, restructuring, and 5,566 - 5,566 acquisition integrations costs

Purchase accounting effects of 532 - 532 acquisitions



BELDEN INC.

OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS

(Unaudited)

Three Months Ended

Nine Months Ended

September 27, 2020

September 29, 2019

September 27, 2020

September 29, 2019

(In thousands)

Total Segment Revenues

$

475,839

$

533,098

$

1,364,176

$

1,581,590

Deferred revenue adjustments

-

-

-

-

Consolidated Revenues

$

475,839

$

533,098

$

1,364,176

$

1,581,590

Total Segment EBITDA

$

64,641

$

90,717

$

173,560

$

258,331

Eliminations

(69)

(1,224)

(402)

(1,971)

Total non-operating pension benefit

680

544

2,079

1,684

Consolidated Adjusted EBITDA (1)

65,252

90,037

175,237

258,044

Amortization of intangibles

(16,104)

(19,026)

(48,306)

(56,258)

Interest expense, net

(15,607)

(14,002)

(43,188)

(41,951)

Depreciation expense

(10,455)

(9,979)

(31,069)

(29,990)

Severance, restructuring, and acquisition integration costs

(1,357)

(3,047)

(9,448)

(5,566)

Amortization of software development intangible assets

(529)

(85)

(1,245)

(207)

Purchase accounting effects related to acquisitions

-

186

(125)

(532)

Income from continuing operations before taxes

$

21,200

$

44,084

$

41,856

$

123,540

BELDEN INC.

OPERATING SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS

(Unaudited)

Three Months Ended Nine Months Ended

September September September 27, September 29, 27, 29, 2020 2019 2020 2019



(In thousands)

Total Segment $ 475,839 $ 533,098 $ 1,364,176 $ 1,581,590 Revenues

Deferred revenue - - - - adjustments

Consolidated $ 475,839 $ 533,098 $ 1,364,176 $ 1,581,590 Revenues



Total Segment $ 64,641 $ 90,717 $ 173,560 $ 258,331 EBITDA

Eliminations (69) (1,224) (402) (1,971)

Total non-operating 680 544 2,079 1,684 pension benefit

Consolidated 65,252 90,037 175,237 258,044 Adjusted EBITDA (1)

Amortization of (16,104) (19,026) (48,306) (56,258) intangibles

Interest expense, (15,607) (14,002) (43,188) (41,951) net

Depreciation (10,455) (9,979) (31,069) (29,990) expense

Severance,restructuring, and (1,357) (3,047) (9,448) (5,566) acquisitionintegration costs

Amortization ofsoftware (529) (85) (1,245) (207) developmentintangible assets

Purchase accountingeffects related to - 186 (125) (532) acquisitions

Income fromcontinuing $ 21,200 $ 44,084 $ 41,856 $ 123,540 operations beforetaxes

(1)Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation of Non-GAAP Measures for additional information.

Consolidated Adjusted EBITDA is a non-GAAP measure. See Reconciliation of(1) Non-GAAP Measures for additional information.

BELDEN INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

September 27, 2020

December 31, 2019

(Unaudited)

(In thousands)

ASSETS

Current assets:

Cash and cash equivalents

$

391,497

$

407,480

Receivables, net

331,232

334,634

Inventories, net

244,815

231,333

Other current assets

39,211

29,172

Current assets of discontinued operations

-

375,135

Total current assets

1,006,755

1,377,754

Property, plant and equipment, less accumulated depreciation

347,668

345,918

Operating lease right-of-use assets

57,380

62,251

Goodwill

1,247,432

1,243,669

Intangible assets, less accumulated amortization

294,592

339,505

Deferred income taxes

29,845

25,216

Other long-lived assets

52,410

12,446

$

3,036,082

$

3,406,759

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

211,269

$

268,466

Accrued liabilities

246,513

283,799

Current liabilities of discontinued operations

-

170,279

Total current liabilities

457,782

722,544

Long-term debt

1,500,716

1,439,484

Postretirement benefits

130,581

136,227

Deferred income taxes

48,896

48,725

Long-term operating lease liabilities

49,209

55,652

Other long-term liabilities

50,311

38,308

Stockholders' equity:

Common stock

503

503

Additional paid-in capital

818,661

811,955

Retained earnings

446,198

518,004

Accumulated other comprehensive loss

(137,458)

(63,418)

Treasury stock

(335,508)

(307,197)

Total Belden stockholders' equity

792,396

959,847

Noncontrolling interests

6,191

5,972

Total stockholders' equity

798,587

965,819

$

3,036,082

$

3,406,759

BELDEN INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

September 27, December 31, 2020 2019

(Unaudited)

(In thousands)

ASSETS

Current assets:

Cash and cash equivalents $ 391,497 $ 407,480

Receivables, net 331,232 334,634

Inventories, net 244,815 231,333

Other current assets 39,211 29,172

Current assets of discontinued operations - 375,135

Total current assets 1,006,755 1,377,754

Property, plant and equipment, less 347,668 345,918 accumulated depreciation

Operating lease right-of-use assets 57,380 62,251

Goodwill 1,247,432 1,243,669

Intangible assets, less accumulated 294,592 339,505 amortization

Deferred income taxes 29,845 25,216

Other long-lived assets 52,410 12,446

$ 3,036,082 $ 3,406,759



LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable $ 211,269 $ 268,466

Accrued liabilities 246,513 283,799

Current liabilities of discontinued - 170,279 operations

Total current liabilities 457,782 722,544

Long-term debt 1,500,716 1,439,484

Postretirement benefits 130,581 136,227

Deferred income taxes 48,896 48,725

Long-term operating lease liabilities 49,209 55,652

Other long-term liabilities 50,311 38,308

Stockholders' equity:

Common stock 503 503

Additional paid-in capital 818,661 811,955

Retained earnings 446,198 518,004

Accumulated other comprehensive loss (137,458) (63,418)

Treasury stock (335,508) (307,197)

Total Belden stockholders' equity 792,396 959,847

Noncontrolling interests 6,191 5,972

Total stockholders' equity 798,587 965,819

$ 3,036,082 $ 3,406,759

BELDEN INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(Unaudited)

Nine Months Ended

September 27, 2020

September 29, 2019

(In thousands)

Cash flows from operating activities:

Net loss

$

(62,019)

$

(229,547)

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

Asset impairment of discontinued operations

113,007

342,146

Depreciation and amortization

80,620

108,328

Share-based compensation

13,650

12,115

Gain on disposal of business

(2,743)

-

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

Receivables

35,645

6,002

Inventories

(9,327)

32,261

Accounts payable

(69,579)

(78,346)

Accrued liabilities

(11,646)

(70,368)

Income taxes

(30,416)

(19,650)

Other assets

1,860

(9,088)

Other liabilities

(20,363)

(4,336)

Net cash provided by operating activities

38,689

89,517

Cash flows from investing activities:

Capital expenditures

(56,809)

(74,068)

Cash used to acquire businesses, net of cash acquired

590

(50,951)

Proceeds from disposal of tangible assets

3,090

19

Proceeds from disposal of business, net of cash sold

50,051

-

Net cash used for investing activities

(3,078)

(125,000)

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

(6,800)

(32,153)

Withholding tax payments for share-based payment awards

(1,331)

(2,063)

Other

(154)

(232)

Net cash used for financing activities

(72,585)

(84,448)

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

2,586

(3,937)

Decrease in cash and cash equivalents

(34,388)

(123,868)

Cash and cash equivalents, beginning of period

425,885

420,610

Cash and cash equivalents, end of period

$

391,497

$

296,742

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.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(Unaudited)

Nine Months Ended

September September 29, 27, 2019 2020



(In thousands)

Cash flows from operating activities:

Net loss $ (62,019) $ (229,547)

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

Asset impairment of discontinued operations 113,007 342,146

Depreciation and amortization 80,620 108,328

Share-based compensation 13,650 12,115

Gain on disposal of business (2,743) -

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

Receivables 35,645 6,002

Inventories (9,327) 32,261

Accounts payable (69,579) (78,346)

Accrued liabilities (11,646) (70,368)

Income taxes (30,416) (19,650)

Other assets 1,860 (9,088)

Other liabilities (20,363) (4,336)

Net cash provided by operating activities 38,689 89,517

Cash flows from investing activities:

Capital expenditures (56,809) (74,068)

Cash used to acquire businesses, net of cash 590 (50,951) acquired

Proceeds from disposal of tangible assets 3,090 19

Proceeds from disposal of business, net of cash 50,051 - sold

Net cash used for investing activities (3,078) (125,000)

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 (6,800) (32,153)

Withholding tax payments for share-based payment (1,331) (2,063) awards

Other (154) (232)

Net cash used for financing activities (72,585) (84,448)

Effect of foreign currency exchange rate changes 2,586 (3,937) on cash and cash equivalents

Decrease in cash and cash equivalents (34,388) (123,868)

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

Cash and cash equivalents, end of period $ 391,497 $ 296,742

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 Nine Months Ended

September September 29, September 27, September 29, 27, 2019 2020 2019 2020



(In thousands, except percentages and per share amounts)

GAAP andadjusted $ 475,839 $ 533,098 $ 1,364,176 $ 1,581,590 revenues



GAAP gross $ 167,592 $ 198,805 $ 488,033 $ 590,733 profit

Amortization ofsoftwaredevelopment 529 85 1,245 207 intangibleassets

Severance,restructuring,and acquisition 85 792 222 1,092 integrationcosts

Purchaseaccounting - (186) 125 532 effects relatedto acquisitions

Adjusted gross $ 168,206 $ 199,496 $ 489,625 $ 592,564 profit



GAAP gross 35.2 % 37.3 % 35.8 % 37.4 %profit margin

Adjusted gross 35.3 % 37.4 % 35.9 % 37.5 %profit margin



GAAP selling,general and $ (85,037) $ (98,245) $ (275,129) $ (298,654) administrativeexpenses

Severance,restructuring,and acquisition 1,272 2,255 9,226 4,474 integrationcosts

Adjustedselling, generaland $ (83,765) $ (95,990) $ (265,903) $ (294,180) administrativeexpenses



GAAP andadjustedresearch and $ (30,324) $ (23,992) $ (81,633) $ (72,014) developmentexpenses



GAAP net income(loss) $ 16,996 $ (297,009) $ (62,098) $ (229,607) attributable toBelden

Interest 15,607 14,002 43,188 41,951 expense, net

Loss fromdiscontinued 6,231 335,046 103,395 336,908 operations, netof tax

Gain on disposalof discontinued (2,743) - (2,743) - operations, netof tax

Income tax 631 6,053 3,223 16,179 expense

Noncontrolling 85 (6) 79 60 interest

Totalnon-operating 19,811 355,095 147,142 395,098 adjustments

Amortization ofintangible 16,104 19,026 48,306 56,258 assets

Severance,restructuring,and acquisition 1,357 3,047 9,448 5,566 integrationcosts

Amortization ofsoftwaredevelopment 529 85 1,245 207 intangibleassets

Purchaseaccounting - (186) 125 532 effects relatedto acquisitions

Total operatingincome 17,990 21,972 59,124 62,563 adjustments

Depreciation 10,455 9,979 31,069 29,990 expense

Adjusted EBITDA $ 65,252 $ 90,037 $ 175,237 $ 258,044



GAAP net income 3.6 % (55.7) % (4.6) % (14.5) %(loss) margin

Adjusted EBITDA 13.7 % 16.9 % 12.8 % 16.3 %margin



GAAP net income(loss) $ 16,996 $ (297,009) $ (62,098) $ (229,607) attributable toBelden

Operating incomeadjustments from 17,990 21,972 59,124 62,563 above

Loss fromdiscontinued 6,231 335,046 103,395 336,908 operations, netof tax

Gain on disposalof discontinued (2,743) - (2,743) - operations, netof tax

Tax effect ofadjustments (6,292) (5,625) (14,687) (14,743) above

Adjusted netincome $ 32,182 $ 54,384 $ 82,991 $ 155,121 attributable toBelden



GAAP net income(loss) $ 16,996 $ (297,009) $ (62,098) $ (229,607) attributable toBelden

Loss fromdiscontinued 6,231 335,046 103,395 336,908 operations, netof tax

Gain on disposalof discontinued (2,743) - (2,743) - operations, netof tax

Less: Preferred - 971 - 18,437 stock dividends

GAAP net incomefrom continuingoperations $ 20,484 $ 37,066 $ 38,554 $ 88,864 attributable toBelden commonstockholders



Adjusted netincome $ 32,182 $ 54,384 $ 82,991 $ 155,121 attributable toBelden

Less: Preferred - - - 18,437 stock dividends

Adjusted netincome fromcontinuingoperations $ 32,182 $ 54,384 $ 82,991 $ 136,684 attributable toBelden commonstockholders

GAAP income fromcontinuingoperations perdiluted share $ 0.46 $ 0.83 $ 0.86 $ 2.15 attributable toBelden commonstockholders

Adjusted incomefrom continuingoperations perdiluted share $ 0.72 $ 1.19 $ 1.85 $ 3.31 attributable toBelden commonstockholders



GAAP dilutedweighted average 44,709 44,610 44,968 41,299 shares

Adjusted forassumedconversion of - 1,130 - - preferred stockinto commonstock

Adjusted dilutedweighted average 44,709 45,740 44,968 41,299 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.

BELDEN INC.

RECONCILIATION OF NON-GAAP MEASURES

(Unaudited)



We define free cash flow, which is a non-GAAP financial measure, as net cashfrom operating activities adjusted for capital expenditures net of the proceedsfrom the disposal of tangible assets. We believe free cash flow provides usefulinformation to investors regarding our ability to generate cash from businessoperations that is available for acquisitions and other investments, service ofdebt principal, dividends and share repurchases. We use free cash flow, asdefined, as one financial measure to monitor and evaluate performance andliquidity. Non-GAAP financial measures should be considered only in conjunctionwith financial measures reported according to accounting principles generallyaccepted in the United States. Our definition of free cash flow may differ fromdefinitions used by other companies.

Three Months Ended

Nine Months Ended

September 27, 2020

September 29, 2019

September 27, 2020

September 29, 2019

(In thousands)

GAAP net cash provided by operating activities

$

50,819

$

67,872

$

38,689

$

89,517

Capital expenditures, net of proceeds from the disposal of tangible assets

(15,075)

(23,299)

(53,719)

(74,049)

Non-GAAP free cash flow

$

35,744

$

44,573

$

(15,030)

$

15,468

Three Months Ended Nine Months Ended

September September September September 27, 29, 27, 29, 2020 2019 2020 2019



(In thousands)

GAAP net cash provided by $ 50,819 $ 67,872 $ 38,689 $ 89,517 operating activities

Capital expenditures, netof proceeds from the (15,075) (23,299) (53,719) (74,049) disposal of tangibleassets

Non-GAAP free cash flow $ 35,744 $ 44,573 $ (15,030) $ 15,468

BELDEN INC.

RECONCILIATION OF NON-GAAP MEASURES

2020 Earnings Guidance

Year Ended

Three Months Ended

December 31, 2020

December 31, 2020

(In thousands)

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

$0.99 - $1.14

$0.13 - $0.28

Amortization of intangible assets

1.08

0.26

Severance, restructuring, and acquisition integration costs

0.40

0.24

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

$2.47 - $2.62

$0.63 - $0.78

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 fourth quarter and full-year 2020 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