After Difficult 2015, Grass Valley Expects Growth in 2016

Posted by Josh Stinehour
Feb 22 2016

Belden announced fourth quarter and full year results for 2015.  Belden’s largest division in terms of revenue is its Broadcast Solutions division.  The division includes the operations of Grass Valley along with Belden’s broadcast cable and broadband connectivity businesses. GrassValley_Logo

Broadcast Solutions revenue for the full year 2015 was $900.6 million, a decrease of 1.7% versus 2014 full year results.

EBITDA (Earnings before interest depreciation and amortization) for the division in 2015 was $142.4 million, a 1.4% increase over the 2014 EBITDA of $140.4 million.  EBITDA margin in 2015 was 15.8%, a slight increase against the 15.1% EBITDA margin from 2014.

Q4 2015 Results:

Fourth quarter revenue in 2015 for Broadcast Solutions was $239.5 million, a decrease of 5.4% versus Q4 2014, and a sequential increase of 4.9% versus Q3 2015.  Management cited a stronger U.S. dollar and lower copper prices resulting in a negative impact of approximately $10.2 million on Q4 2015 revenues.  When adjusted for currency, revenues for Broadcast Solutions decreased 1.4% on a year-over-year basis.

On a regional basis, Belden stated Broadcast Solutions revenue in the United States was up 7.4% when compared to Q4 2014. EMEA revenues declined 17% versus Q4 2014.  Management attributed this decline in part to the strong U.S. dollar and lower oil prices.

Belden’s Broadcast Solutions division recorded EBITDA of $46.7 million in Q4 2015, a 5.2% increase versus Q4 2014, and a 33.8% increase against the preceding quarter.

EBITDA margins for the quarter were 19.5%, a 200 basis point increase versus Q4 2015. A weaker Canadian dollar was partly responsible for the increase in profitability.

Belden recognized a $10.5 million restructuring charge for its Broadcast Solution division in the fourth quarter.  For the full year restructuring charges in the Broadcast Solution division were $39.1 million.



On Belden’s earnings call with analyst, CEO John Stroup offered commentary on developments at Grass Valley:  “In addition to the Summer Olympics and U.S. presidential elections, we are excited by the progress made with our comprehensive IP solution. During the quarter, we booked 7 new IP projects and shipped 4 of them. Also we entered 2016 with almost $15 million more backlog than 1 year ago.”.  Later when fielding analyst questions Stroup elaborated on the 2016 prospects for Grass Valley stating, “… if you just take the backlog head start compared to the revenues in ’15, you’ve got almost 4% growth rate there. So it feels to me like we’re on track for growth in 2016 with Grass Valley compared to ’15.”



Related Content:

Press Release: Belden Reports Strong Results for Fourth Quarter and Full Year 2015

Belden Q4 and FY 2015 Investor Presentation



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