Revenues for the quarter totalled $670 million, increasing $65 million, or 11 percent, compared to $605 million in the year-ago period. Net income was $104 million, compared to $44 million in the year-ago period. Net income as a percentage of revenue was 15.5 percent, compared to 7.3 percent in the year-ago period. Net income in the quarter included a $38 million pre-tax gain on the sale of an asset. EPS totalled a quarterly record $2.35, compared to $0.97 in the third quarter 2021.
Adjusted revenues for the quarter totalled $670 million, increasing $65 million, or 11 percent, compared to $605 million in the year-ago period. Adjusted EBITDA was $118 million, increasing $17 million, or 17 percent, compared to $101 million in the year-ago period. Adjusted EBITDA margin was 17.6 percent, compared to 16.7 percent in the year-ago period. Adjusted EPS was a quarterly record $1.77, increasing 33 percent compared to $1.33 in the third quarter 2021. 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, “I am pleased with our third quarter performance and the strong execution by our global teams to meet the needs of our customers and deliver record quarterly EPS. Revenues increased organically by 15 percent in the third quarter. Once again, the strength was broad-based, with each of our businesses growing organically, demonstrating the strength and strategic positioning of our portfolio. Despite facing continued inflationary pressures, we delivered strong profitability, with expanded margins and 33 percent Adjusted EPS growth. Additionally, we continued to return capital to shareholders, while ending the quarter with net leverage of 1.1x.”
“As a result of another strong quarter and an improved outlook for the fourth quarter, we are increasing our full-year 2022 guidance. Our full-year revenue guidance now reflects expected organic revenue growth of 15 percent to 16 percent, up from 12 percent to 13 percent in our prior guidance. The macroeconomic environment remains very dynamic with considerable uncertainties, including volatile foreign exchange rates and commodity prices. However, we have significant levels of customer backlog, and we continue to gain momentum with our strategic growth initiatives. We remain confident in our ability to support our customers, create value for our shareholders, and deliver at least $8.00 of adjusted EPS by 2025,” said Mr. Vestjens.
The Company expects fourth quarter 2022 revenues to be $635 – $650 million. Compared to third quarter 2022 revenues, the Company expects fourth quarter 2022 revenues to be lower due to a stronger U.S. dollar and typical seasonal patterns.
For the year ending December 31, 2022, the Company now expects revenues to be $2.583 – $2.598 billion, compared to prior guidance of $2.520 – $2.550 billion. The full-year revenue guidance now reflects expected organic growth of 15 percent – 16 percent, compared to prior guidance of 12 percent to 13 percent.
The Company expects fourth quarter 2022 GAAP EPS to be $1.27 – $1.37. For the year ending December 31, 2022, the Company now expects GAAP EPS to be $5.89 – $5.99, compared to prior guidance of $4.67 – $4.87.
The Company expects fourth quarter 2022 adjusted EPS to be $1.60 – $1.70. For the year ending December 31, 2022, the Company now expects adjusted EPS to be $6.27 – $6.37, compared to prior guidance of $5.90 – $6.10. The full-year adjusted EPS guidance now represents growth of 32 percent to 34 percent.
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 is 800-458-4121 with confirmation code 7787011. A replay of this conference call will remain accessible in the investor relations section of the Company’s website for a limited time.
Net Income, Earnings per Share (EPS), and Net Leverage
All references to net income and EPS within this earnings release refer to income from continuing operations and income from continuing operations per diluted share attributable to Belden stockholders, respectively. Net leverage is calculated as (A) total debt less cash and cash equivalents divided by (B) the sum of trailing twelve months Adjusted EBITDA plus trailing twelve months stock-based compensation expense.
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.