Belden Announces Strong First Quarter 2010 Results

Contact:

Belden Investor Relations

314-854-8054

BELDEN INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended

April 4, 2010

March 29, 2009

(In thousands, except per share amounts)

Revenues

$                    400,349

$                    328,512

Cost of sales

(281,941)

(244,319)

     Gross profit

118,408

84,193

Selling, general and administrative expenses

(73,860)

(76,697)

Research and development

(14,797)

(16,555)

Amortization of intangibles

(4,266)

(3,865)

Income from equity method investment

2,641

1,290

Asset impairment

-

(24,723)

     Operating income (loss)

28,126

(36,357)

Interest expense

(12,946)

(7,323)

Interest income

183

364

Other expense

-

(1,541)

     Income (loss) from continuing operations before taxes

15,363

(44,857)

Income tax benefit (expense)

(3,480)

12,403

     Income (loss) from continuing operations

11,883

(32,454)

Loss from discontinued operations, net of tax

(136)

-

     Net income (loss)

$                      11,747

$                    (32,454)

Weighted average number of common shares and equivalents:

   Basic

46,697

46,526

   Diluted

47,510

46,526

Basic income (loss) per share

   Continuing operations

$                          0.25

$                        (0.70)

   Discontinued operations

-

-

   Net income (loss)

$                          0.25

$                        (0.70)

Diluted income (loss) per share

   Continuing operations

$                          0.25

$                        (0.70)

   Discontinued operations

-

-

   Net income (loss)

$                          0.25

$                        (0.70)

Dividends declared per share

$                          0.05

$                          0.05

BELDEN INC.

OPERATING SEGMENT INFORMATION

(Unaudited)

External

Operating

Three Months Ended April 4, 2010

Customer

Affiliate

Total

Income

Revenues

Revenues

Revenues

(Loss)

(In thousands)

Americas

$      217,929

$        12,737

$      230,666

$        31,357

Wireless

15,925

-

15,925

(3,169)

EMEA

90,550

14,743

105,293

14,580

Asia Pacific

75,945

-

75,945

7,526

   Total Segments

400,349

27,480

427,829

50,294

Corporate expenses

-

(12,904)

Eliminations

(27,480)

(27,480)

(9,264)

   Total

$      400,349

$                  -

$      400,349

$        28,126

Three Months Ended March 29, 2009

Americas

$      182,210

$          7,991

$      190,201

$        24,658

Wireless

12,003

-

12,003

(8,322)

EMEA

88,061

12,473

100,534

(41,955)

Asia Pacific

46,238

-

46,238

3,334

   Total Segments

328,512

20,464

348,976

(22,285)

Corporate expenses

-

-

-

(8,357)

Eliminations

-

(20,464)

(20,464)

(5,715)

   Total

$      328,512

$                  -

$      328,512

$      (36,357)

BELDEN INC.

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(Unaudited)

Three Months Ended  

April 4, 2010

March 29, 2009

(In thousands)

Cash flows from operating activities:

Net income (loss)

$                      11,747

$                    (32,454)

Adjustments to reconcile net income (loss) to net  cash provided by (used for) operating activities:

Depreciation and amortization

14,614

13,288

Share-based compensation

3,325

2,020

Provision for inventory obsolescence

919

2,548

Asset impairment

-

24,723

Amortization of discount on long-term debt

106

-

Pension funding in excess of pension expense

(6,004)

(2,318)

Tax deficiency related to share-based compensation

278

1,104

Income from equity method investment

(2,641)

(1,290)

Changes in operating assets and liabilities,  net of the effects of currency exchange rate

changes and acquired businesses:

Receivables

(20,255)

40,847

Inventories

(12,520)

29,497

Deferred cost of sales

2,539

228

Accounts payable

18,429

(31,204)

Accrued liabilities

(15,408)

(18,372)

Deferred revenue

(5,885)

(49)

Accrued taxes

(1,191)

(11,209)

Other assets

759

(1,057)

Other liabilities

(2,019)

(3,679)

Net cash provided by (used for) operating activities

(13,207)

12,623

Cash flows from investing activities:

Capital expenditures

(7,002)

(9,554)

Proceeds from disposal of tangible assets

1,824

-

Cash provided by (used for) other investing activities

163

(18)

Net cash used for investing activities

(5,015)

(9,572)

Cash flows from financing activities:

   Payments under borrowing arrangements

(46,268)

-

Cash dividends paid

(2,361)

(2,373)

Debt issuance costs

-

(1,541)

Tax deficiency related to share-based compensation

(278)

(1,104)

Proceeds from exercise of stock options

543

-

Net cash used for financing activities

(48,364)

(5,018)

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

(3,410)

(1,003)

Decrease in cash and cash equivalents

(69,996)

(2,970)

Cash and cash equivalents, beginning of period

308,879

227,413

Cash and cash equivalents, end of period

$                    238,883

$                    224,443

BELDEN INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

April 4, 2010

December 31, 2009

(Unaudited)

(In thousands)

ASSETS

Current assets:

Cash and cash equivalents

$                            238,883

$                            308,879

Receivables, net

258,061

242,145

Inventories, net

160,675

151,262

Deferred income taxes

26,687

26,996

Other current assets

32,388

35,036

Total current assets

716,694

764,318

Property, plant and equipment, less accumulated depreciation

289,139

299,586

Goodwill

308,616

313,030

Intangible assets, less accumulated amortization

136,046

143,013

Deferred income taxes

36,190

37,205

Other long-lived assets

63,966

63,426

$                         1,550,651

$                         1,620,578

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$                            186,541

$                            169,763

Accrued liabilities

119,673

141,922

Current maturities of long-term debt

-

46,268

Total current liabilities

306,214

357,953

Long-term debt

544,048

543,942

Postretirement benefits

114,607

121,745

Other long-term liabilities

44,514

45,890

Stockholders’ equity:

Common stock

503

503

Additional paid-in capital

593,067

591,917

Retained earnings

81,993

72,625

Accumulated other comprehensive income (loss)

(7,492)

14,614

Treasury stock

(126,803)

(128,611)

Total stockholders’ equity

541,268

551,048

$                         1,550,651

$                         1,620,578

Inventory turns are calculated by dividing annualized cost of sales for the quarter by the inventory balance at the end of the quarter.

Inventory turns for the quarters ended April 4, 2010 and March 29, 2009 were 7.0 and 5.4 turns, respectively. Working

capital is defined as receivables plus inventories less accounts payable and accrued liabilities (excluding current deferred revenue).

Working capital turns are calculated by dividing annualized cost of sales for the quarter by the working capital balance at the end of the quarter. Working capital turns for the quarters ended April 4, 2010 and March 29, 2009 were 9.0 and 5.9 turns, respectively.

BELDEN INC.

ADJUSTED OPERATING RESULTS

(Unaudited)

In addition to reporting financial results in accordance with accounting principles generally accepted in the United States, we provide operating results adjusted for certain items including asset impairment, purchase accounting effects related to acquisitions, revenue deferrals related to our Wireless segment, severance charges, accelerated depreciation, gains (losses) recognized on the disposal of tangible assets, and other costs. 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 these adjusted results are useful to investors because they help them compare our results to previous periods and provide insights into underlying trends in the business. Adjusted results should be considered only in conjunction with results reported according to accounting principles generally accepted in the United States.

As

Three Months Ended April 4, 2010

Reported

Adjustments

Adjusted

(In thousands, except percentages and per share amounts)

Revenues

$         400,349

$            (5,885)

$         394,464

Gross profit

$         118,408

$             1,949

$         120,357

   as a percent of revenues

29.6%

30.5%

Operating income

$           28,126

$             2,834

$           30,960

   as a percent of revenues

7.0%

7.8%

Income from continuing operations

$           11,883

$             2,074

$           13,957

   as a percent of revenues

3.0%

3.5%

Income from continuing operations per diluted share

$               0.25

$               0.04

$               0.29

Three Months Ended March 29, 2009

Revenues

$         328,512

$                 (49)

$         328,463

Gross profit

$           84,193

$           17,895

$         102,088

   as a percent of revenues

25.6%

31.1%

Operating income (loss)

$          (36,357)

$           53,727

$           17,370

   as a percent of revenues

-11.1%

5.3%

Income (loss) from continuing operations

$          (32,454)

$           39,712

$             7,258

   as a percent of revenues

-9.9%

2.2%

Income (loss) from continuing operations per diluted share

$              (0.70)

$               0.86

$               0.16

Adjustments for the three months ended April 4, 2010 included pre-tax operating charges for severance and other restructuring related costs, accelerated depreciation, and purchase accounting effects related to acquisitions of  $4.0 million, $1.1 million, and $1.0 million, respectively, partially offset by changes in deferred revenue of $3.3 million.

Adjustments for the three months ended March 29, 2009 included pre-tax operating charges for severance, asset impairment, and other costs of $25.9 million, $24.7 million, and $3.1 million, respectively, and pre-tax non-operating charges of $1.5 million.