Posts Tagged ‘John Stroup’

Broadcast Vendor M&A: Belden Buys Grass Valley for $220 Million

broadcast technology market research | Posted by Joe Zaller
Feb 06 2014

Belden has submitted a binding offer to purchase privately held Grass Valley, a leader within the broadcast market, for $220 million.

The binding offer is subject to consultation with Grass Valley’s foreign labor works council, after which we will enter into a definitive agreement. Grass Valley provides innovative technologies including production switchers, cameras, servers, and editing solutions within the mission critical applications of broadcast customers. When combined with Miranda, the resulting end-to-end solution will be the most complete and compelling in the industry.

Grass Valley had approximately $290 million in revenue according to Belden’ press release, so the deal values Grass Valley at 0.75 revenue.

Even so, it’s probably not a bad deal for Grass Valley’s owner, PE firm Francisco Partners, which  purchased Grass Valley from Technicolor in 2011 (closed in January 2011), for no money down, and an $80 million promissory not payable five years from the date of the deal.

Part of Francisco Partner’s deal to buy Grass Valley included an undisclosed additional pay-out if Francisco Partners sold Grass Valley for a partner in the future.  Since these numbers are unknown, it’s difficult to know if the payments were triggered.

“The great thing about this overlap is the limited overlap,” said Belden CEO John Stroup.

“We are extremely excited to have Grass Valley join the Belden family. By combining Grass Valley and Miranda, we will create the broadcast industry’s largest and most complete portfolio,” said Mr. Stroup.

 

Here’s info on the deal and the rationale for it:

 

Belden Buys Grass - 1

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Belden Buys Grass - 3

 

Belden Buys Grass - 4

 

 

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Related Content:

Press Release: Belden Reports Solid Results in Fourth Quarter 2013 and Announces Binding Offer to Acquire Privately Held Grass Valley for $220 Million

Press Release: Technicolor to sell its Broadcast Services activity to Ericsson

Belden Q3 2012 Revenue Declines 6 Percent, Miranda “Off to a Slow Start”

Broadcast Vendor M&A: Miranda Buys Softel

Belden Closes Deal to Acquire Miranda

More Broadcast Vendor M&A: Belden Buys Miranda for $350 Million in All-Cash Deal

More Broadcast Vendor M&A: Technicolor Closes Deal to Dispose of Grass Valley Transmission Business

Technicolor Receives Binding Offer for Video Head-End Business

Technicolor decides not to sell digital signage provider PRN

Technicolor completes sale of Grass Valley to Francisco Partners

 

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Belden Eyes Improvement in Broadcast Business in Second Half of 2013 After “Tepid” First Six Months

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 12 2013

Belden said its broadcast revenue for the second quarter of 2013 was $169.7m,   up 7.1% versus last quarter.  The company said the sequential growth in broadcast was “driven largely by typical seasonal patterns.”

Broadcast operating profit margins were 14.2%, up from 4.7% last year (prior to the acquisitions of Miranda and PPC), and up 90 basis points sequentially, which the company said was in line with its overall results.

Belden management said that “broadcast markets in 2012 benefited from the Olympic Games and U.S. election cycle, with an unfavorable impact to the second quarter of approximately $2 million to $4 million on a year-over-year basis.”

On the company’s conference call with equity analysts, Belden CEO John Stroup described the broadcast market as cyclical, saying “2012 had a lot of demand as a result of the Olympic Games as well as the U.S. presidential election. And as a result, I think the first half (of 2013) was a little tepid (for broadcast), and I think we’ll see improvement in the second half (of 2013).

Although Belden did not break our revenue figures for Miranda, which it acquired last year, it did say that the Miranda business performed in-line with its expectations.

 

Outlook

“The global macroeconomic environment in 2013 is generally as we anticipated, and we remain confident in our ability to deliver consistent operating results in the second half of the year,” said Stroup.  “Therefore, we are increasing the midpoint of both our revenue and earnings outlook for the full year.”

Belden says expects third quarter 2013 adjusted revenues to be in the range of $525m – $535m and adjusted income from continuing operations per diluted share to be in the range of $0.90 – $0.95. For the full year ending December 31, 2013, the Company now expects adjusted revenues to be the range of $2.09 billion – $2.12 billion and adjusted income from continuing operations per diluted share to be in the range of $3.54 – $3.69.

Previously, the company said it expected full year adjusted revenues to be in the range of $2.07 billion – $2.12 billion and adjusted income from continuing operations per diluted share to be in the range of $3.49 – $3.69.

On a GAAP basis, Belden expects third quarter 2013 revenues to be in the range of $522m – $532m and income from continuing operations per diluted share to be in the range of $0.55 – $0.60. For the full year ending December 31, 2013, the company expects revenues to be in the range of $2.08 billion – $2.11 billion and income from continuing operations per diluted share to be in the range of $2.11 – $2.26.

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Related Content:

Press Release: Belden Reports Solid Results in Second Quarter 2013

Belden Q2 2013 Earnings Call Transcript

Belden Creates Broadcast Business Unit, Discloses Broadcast Revenue and Profitability

Belden Presentation (April 25, 2013) — Explanation of New Business Unit Reporting Structure

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Belden Creates Broadcast Business Unit, Discloses Broadcast Revenue and Profitability

Broadcast technology vendor financials | Posted by Joe Zaller
Apr 25 2013

Belden announced that it will now report its earnings according to the following four business segments: Industrial Connectivity Solutions, Industrial Information Technology (IT) Solutions, Enterprise Connectivity Solutions, and Broadcast Solutions.

The company said that these reporting changes have no impact to Belden’s consolidated financial results and no adjustment to previously provided financial guidance or strategic goals is intended or implied by this announcement.

Belden will be reporting results under these new business segments on the beginning with its Q1 2013 earnings announcement.

As per the chart below, the company had previously reported its financials according to geography.

Belden Segmentation

 

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Belden CFO Henk Derksen said that the reporting changes are a more intuitive and insightful way to present Belden’s results going forward changes, and that the solutions-based orientation enables Belden to be more focused and agile as an organization, and provide investors with further transparency into the company’s business operations.

The broadcast business will continue to be managed by Strath Goodship (Miranda CEO), Dave Jackson, and Jimmy Rayford (Belden VP, Business Development).

Denis Suggs, EVP, Americas Operations & Global Cable Products, who had previously overseen the broadcast business, has decided to pursue opportunities outside of Belden. Denis will continue at Belden through July to allow for an orderly transition. “We thank Denis for his solid performance over the past six years, and appreciate the strong team he has assembled. We wish Denis the best in his future endeavors.” said John Stroup, president and CEO of Belden.

As shown below, the company’s broadcast solutions segment consists of Belden’s existing broadcast sales as well as those of Miranda (acquired in July 2012 for $362m) and PPC (acquired in December 2012 for $515.7m).

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Belden Broadcast Segment Financial Metrics

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Belden’s broadcast business had 2012 revenue of $362.6m in 2012.  However these results include only 5 months of revenue from Miranda, and minimal contribution from PPC.

According to Derksen, if full year 2012 revenue from both Miranda and PPC were included in the broadcast business figures, total broadcast revenue in 2012 was $684m with an operating margin of 13-15%. For reference, according to previously published reports Miranda’s last full year of reported revenue was approximately $180m, and PPC’s revenue in 2012 was approximately $238m.

As part of the changes to reporting, Belden will no longer report geographic results on a regular basis, but may occasionally report geographic results for illustrative purposes.  However, in order to help analyst transition their financial models, Derksen disclosed that 87.2% of 2012 broadcast revenue came from the Americas, 7.9% was from EMEA, and 4.9% was from APAC.

Similarly the company will not make product results available as the company mores from product sales to solution selling.

The company also said it will not be breaking out its operating expenses (R&D, G&A, and sales and marketing) on a segment basis.

Derksen said these changes were made because “the old way of looking at Belden is no longer insightful” due to the many changes at the company and in its markets over the past several years.

“This announcement marks another key milestone in the transformation of our business. We believe this action highlights our strategic focus on continuing to build leading global businesses with strong financial attributes. Through this, Belden can deliver even more value to our enterprise, industrial and broadcast customers around the world and quickly capitalize on new market opportunities,” said Stroup.

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Related Content:

Press Release: Belden Announces Formation of Global Business Segments

Revenues at Miranda Technologies Down 10 Percent in Q4 2012

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Belden Q3 2012 Revenue Declines 6 Percent, Miranda “Off to a Slow Start”

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 12 2012

Belden reported that its revenue for the third quarter fiscal 2012 was $490.4m, down 6% versus the same period a year ago, and up 1% versus the previous quarter.

The Q3 net loss was $38.8m, or $1.14 per share, versus net income of $31.2m last year, and a net income of $42.4m during the previous quarter. The operating loss for the quarter was $7.6m, versus operating income of $51.9m last year, and operating income of $58.35m last quarter.

Third-quarter SG&A expenses were $88m, or 17.8% of revenue. R&D expenses for the quarter were $18.1m. The company said that both SG&A and R&D expenses increased sequentially, and year over year, as a result of the addition of Miranda, which was acquired by Belden at the end of July 2012. After adjusting for the impact of foreign currency and Miranda, SG&A and R&D expenses combined were down more than $3m year over year.

The networking and connectivity segments, which include Miranda, contributed $161.8m of consolidated revenues, or 33%, up 3 percentage points versus last year.

Broadcast-related revenue in the quarter was $98.1m, or 20% of total revenue.  The company said that broadcast revenue was impacted by the timing of new product launches.

Belden CEO John Stroup said Miranda, which was part of Belden for two months of the quarter, was “off to a slow start, contributing approximately $32m of revenue and $0.08 of earnings per share during the quarter on an adjusted basis.”

This implies that Miranda’s revenue for the full third quarter was approximately $48m, essentially flat with the same period a year ago when Miranda reported a profit of C$13.2m on revenue of C$48.8m. (Miranda did not report results last quarter because their acquisition by Belden closed before the reporting data).

Stroup also said that the company anticipates Miranda to contribute $46m of revenue in the fourth quarter of 2012, implying an 8% decline versus Q4 of 2011 when Miranda reported revenue of $50.1m.

 

Guidance

Belden said it expects adjusted revenues for the fourth quarter 2012 to be $500m – $510m and adjusted income from continuing operations per diluted share to be $0.72 – $0.77.

For the full year 2012 Belden expects adjusted revenues to be $1.94Bn – $1.95Bn, down from last quarter when the company said it expected adjusted revenue, inclusive of Miranda, to be in the range of $1.95Bn to $1.97Bn.

The company maintained its full year EPS target of $3.00 – $3.05.

“Clearly, the weak demand environment presents challenges and the uncertainty affects our visibility. We believe this climate is likely to continue, therefore we’ll focus on driving improvements to the business through the implementation of our strategic plan. Despite these pressures, we remain committed to our full year EPS guidance,” said Stroup.

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Related Content:

Belden Press Release: Adjusted Earnings up 10% on Solid Operating Results in Third Quarter 2012

Belden Q3 2012 Earnings Call Presentation

Previous Belden Quarter: Belden Grows Earnings 22 Percent on Lower Revenue in Q2 2012, Closes Miranda Acquisition

Previous Year – Miranda: Miranda Reports Record Revenue and Profit in Q3 2011, Raises Margin Targets

Belden Sells Off Chinese CE Assets

Belden Closed Deal to Acquire Miranda

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Belden Sells Off Chinese CE Assets

Broadcast Vendor M&A | Posted by Joe Zaller
Sep 13 2012

Belden, which acquired Miranda Technologies in July 2012,  announced it has entered into a definitive agreement to sell its consumer electronics assets in China to Shenzhen Woer Heat-Shrinkable Material Co., Ltd. for consideration of approximately $43m.

“I’m pleased to announce this agreement with Shenzhen Woer Heat-Shrinkable Material Co., Ltd. We believe this is a positive outcome that will benefit Belden shareholders by returning our focus to areas of strategic relevance in Asia. The sale of these assets will reduce 2013 revenue by approximately $100m to $120m  with no significant impact to operating profit. Additionally, we expect to incur non-cash charges of approximately $25m in 2012 which will be excluded from our adjusted results,” said John Stroup, Belden’s President and CEO.

Belden expects the sale, which is subject to approval by Chinese regulatory authorities, to close in 2012.

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Belden Grows Earnings 22 Percent on Lower Revenue in Q2 2012, Closes Miranda Acquisition

Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results | Posted by Joe Zaller
Aug 13 2012

Cable specialist Belden, which recently closed the acquisition of Miranda, and also owns Telecast Fiber Systems, reported that its revenue for the second quarter fiscal 2012 was $484m million, down 10% versus the same period a year ago, and up 4% compared to the previous quarter.

The company said that weakness in southern Europe and China was partially offset by strong performance in the Americas and Germany.

Despite the lower year-over-year revenue in the quarter, the company’s net income for the quarter was up 22% versus the same period a year ago, to $42.4m.

Operating income for the quarter was $58.35m, essentially flat with the previous year. The operating margin for the quarter was 12.1%, up 1.2% versus the same period a year ago, and up 2.6% versus the previous quarter.

The company kept a tight control on costs in the second quarter.  SG&A expenses for the quarter were $77.9m, down 8% versus the previous quarter. R&D expenses in the quarter were $15m, up 3% versus the previous quarter.

Broadcast revenue in the quarter was approximately $72m or 15% of total revenue.   These results do not include revenue from Miranda, which was acquired by Belden in July 2012.

 

Guidance for Q3 and Full Year 2012

Belden said it expects its Q3 2012 adjusted revenues to be in the range of $490m to $500m, with adjusted income from continuing operations per diluted share to be in the range of $0.69 – $0.74.  For the full year 2012 the company said it expects its adjusted revenue, inclusive of Miranda, to be in the range of $1.95Bn to $1.97Bn, with adjusted income from continuing operations per diluted share in the range of $2.95 – $3.05.  The company had previously said that it expected its full year 2012 revenues to be $1.98 – $2.02 billion and income from continuing operations per diluted share to be $2.75 – $2.90.

 

“I am pleased with our second quarter results, including margin expansion both sequentially and year over year in all segments,” said John Stroup, President and CEO of Belden.  “While I’m pleased with our execution, macroeconomic uncertainty is a concern. Therefore, we remain committed to funding our growth initiatives while closely managing our overall cost structure.”

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Related Content:

Press Release: Belden Delivers Solid Operating Results in Second Quarter 2012

Belden Q2 2012 Earnings Presentation

Previous Quarter: Belden Grows Earnings 13 Percent on Flat Revenue in Q1 2012

Belden Closed Deal to Acquire Miranda

Belden’s Acquisition of Miranda to Close on or Before July 27, 2012  

More Broadcast Vendor M&A: Belden Buys Miranda for $350 Million in All-Cash Deal

Belden Press Release: Belden Enters Into a Definitive Agreement to Acquire Miranda Technologies for C$17.00 Per Share

Miranda Press: Release: Miranda Board Agrees to Recommend Belden Offer of $17.00 per Share

Belden Presentation: Belden Enters Into a Definitive Agreement with Miranda Technologies

Video: Miranda CEO Discusses Purchase of Miranda by Belden

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More Broadcast Vendor M&A: Belden Buys Miranda for $350 Million in All-Cash Deal

broadcast industry technology trends, Broadcast Vendor M&A | Posted by Joe Zaller
Jun 05 2012

Belden announced that it has entered into a definitive agreement to make an all-cash offer to acquire Miranda Technologies for C$345m, or C$17 per share.  Belden will finance the deal with $200m in cash and use debt for the rest. Belden says it has no plans for any changes to Miranda’s existing operations, including its Montreal base.

This is the fourth broadcast-related acquisition that Belden has made in the last two years.  The company has previously acquired Telecast Fiber Systems, LRC, and ICM. 

For Miranda, the deal is the culmination of six months of speculation about the company’s future, which started in December of 2011 when a group of activist shareholders petitioned to replace members of Miranda’s Board of Directors, and was further advanced in March 2012 when Miranda said it had decided to “hold discussions with potential strategic partners as part of the company’s review of ways in which to continue to enhance value and to build on the positive momentum that it has generated over the past two years.”

In a company video, Miranda CEO Strath Goodship said the deal is a good one for both Miranda and its customers, and that he expects the transaction to close in the third quarter of 2012.  Goodship also said that the current vision is for Belden to form a broadcast division using the Miranda brand, product portfolio, production, development and management teams, which will remain as part of the enlarged company.

For Belden, this transaction is the latest in a series of actions taken by the company to transform through expansion into attractive new markets.  Belden CEO John Stroup sees this deal as consistent with this strategy, calling it a “recipe for increased shareholder value.”

With the addition of Miranda to its line-up, Belden instantly becomes one of the largest players in the broadcast technology market.  According to its analyst presentation, Belden expects to have $495m in broadcast industry revenue when the acquisition closes.  At that time, broadcast will make up approximately 25% of Belden’s total revenue.

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Related Content:

Belden Press Release: Belden Enters Into a Definitive Agreement to Acquire Miranda Technologies for C$17.00 Per Share

Miranda Press: Release: Miranda Board Agrees to Recommend Belden Offer of $17.00 per Share http://dcft.co/LnFtKw

Belden Presentation: Belden Enters Into a Definitive Agreement with Miranda Technologies

Video: Miranda CEO Discusses Purchase of Miranda by Belden  

Miranda Reports Revenue Up 7 Percent in Q1 2012, No News on Sale Process

More Broadcast Vendor M&A: Miranda Exploring Strategic Options Through Structured Process

Thorsteinson Appointed to Miranda’s Board of Directors in Otherwise Uneventful AGM

Activist Shareholder Drama Continues at Miranda Technologies

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Belden Grows Earnings 13 Percent on Flat Revenue in Q1 2012

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
May 11 2012

Cable specialist Belden, which owns Telecast Fiber Systems, reported that its revenue for its fiscal quarter of 2012 was $464.3m, flat versus the same period a year ago, and above the $451.8m consensus analyst estimate.

The company said that stronger demand from the Americas offset weak international sales.

Despite flat year-over-year revenue growth, the company managed a double digit profit increase versus last year.

Company president and CEO John Stroup said he was pleased with the results.  “Our ability to expand margins and achieve 13% earnings growth demonstrates our improved business portfolio and consistent execution. The strong performance in the Americas more than offset the softer end-markets in Europe and China. This clearly shows the benefit of having built a globally diversified portfolio. We continue to make progress towards transforming the Company and accomplishing our long-term goals.”

 

Outlook

For the full year 2012, Belden expects revenues to be $1.98 – $2.02 billion and income from continuing operations per diluted share to be $2.75 – $2.90. “This guidance implies stronger year-over-year organic growth in the second half than the first, based primarily on the relative customer and channel inventory dynamic experienced one year ago,” said Stroup

“We expect to build upon the strong margins of the first quarter with seasonally higher revenue and favorable product platform mix in the second quarter. Therefore, we expect our second quarter 2012 revenues to be $500 – $510m and income from continuing operations per diluted share to be $0.73 – $0.78.”

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Related Content:

Press Release: Belden Earnings up 13% in First Quarter 2012

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