Feb 01, 2018 • 08:30 am ET



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Ladies and gentlemen, thank you for standing by. Welcome to this morning's Belden Incorporated conference call. Just to remind you, this call is being recorded. (Operator Instructions).

I would now like to turn the call over to Kevin Maczka. Please go ahead, sir.

Kevin Maczka

Thank you, Sarah. Good morning, everyone, and thank you for joining us today for Belden's Fourth Quarter and Full Year 2017 Earnings Conference Call. My name is Kevin Maczka, I'm Belden's Vice President of Investor Relations. With me this morning are John Stroup, President, CEO, and Chairman; and Henk Derksen, Belden's CFO. John will provide a strategic overview of our business, and then Henk will provide a detailed review of our financial and operating results, followed by Q&A.

We issued our earnings release earlier this morning, and we have prepared a slide presentation that we will reference on this call. The press release, presentation and transcript of these prepared remarks are currently available online at investor.belden.com.

Turning to slide two in the presentation. (Forward-Looking Cautionary Statements)

Additionally, during today's call management will reference adjusted or non-GAAP financial information. In accordance with Regulation G, the appendix to our presentation and the investor relations section of our website contain a reconciliation of the most closely associated GAAP financial information to the non-GAAP financial information we communicate.

I will now turn the call over to our President, CEO, and Chairman, John Stroup. John?

John Stroup

Thank you, Kevin, and good morning, everyone. As a reminder, I'll be referring to adjusted results today. Please turn to slide three in our presentation for a review of our fourth quarter performance. Most of our businesses performed in line with our expectations during the fourth quarter, with the exception of an isolated situation in our Broadcast Solutions segment. We had expected to recognize revenue on $36 million of product that was shipped in 2017, but we were unable to do so as a result of technical US GAAP revenue recognition requirements that our team identified during the year-end closing process.

We now expect these 2017 shipments to be recognized as $36 million in revenue and $22 million in EBITDA in 2018, and this will be additive to the revenue and EBITDA that we otherwise would have anticipated. As a result, revenues in the fourth quarter decreased 50 basis points to $604.9 million. Our Enterprise, Industrial, and Network Solutions segments performed in line with our expectations, growing 8% on a combined basis from the prior year period.

EBITDA in the fourth quarter was $110.2 million, or 18.2% of revenue. Our proven Lean enterprise system continues to drive sustainable productivity gains, with year-over-year EBITDA margin expansion in our Enterprise, Industrial and Network Solutions segments. EPS increased 14.1% in the fourth quarter, from $1.42 in the prior year period to $1.62.

Looking to 2018, we raised our full-year revenue guidance range by $36 million to reflect the 2017 shipments that will now be recognized as revenue in 2018. We expect improved organic growth in 2018. And we're encouraged by the