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Black Box Corporation 2012 East Coast IDEAS Conference June 5, 2012.

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Presentation on theme: "Black Box Corporation 2012 East Coast IDEAS Conference June 5, 2012."— Presentation transcript:

1 Black Box Corporation 2012 East Coast IDEAS Conference June 5, 2012

2 2 Black Box Corporation (BBOX) Forward-Looking Statements - Any forward-looking statements contained in this presentation are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and speak only as of the date of this presentation. You can identify these forward-looking statements by the fact that they use words such as "should," "anticipate," "estimate," "approximate," "expect," "target," "may," "will," "project," "intend," "plan," "believe" and other words of similar meaning and expression in connection with any discussion of future operating or financial performance. Forward-looking statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. Risk factors are included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2012 and our other filings with the Securities and Exchange Commission (the “SEC”). We can give no assurance that any goal, plan or target set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments. GAAP Reconciliation -This presentation also includes, as a supplement to United States Generally Accepted Accounting Principles (“GAAP”), certain non-GAAP financial measures. These non-GAAP financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. Pursuant to the requirements of the SEC’s Regulation G, we provide in our SEC filings additional information regarding these non- GAAP financial measures, including a reconciliation of them to their most comparable GAAP financial measures, management’s explanations regarding the use and usefulness of non-GAAP financial measures and the limitations associated with the use of non-GAAP financial measures. The Company's non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measurements, and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. Company Confidential

3 3 Financially Strong and Stable Public company (NASDAQ: BBOX) since 1994 $1+ billion in annual revenue Strong operating profits Positive cash flow for 36 consecutive years Design Source Implement Maintain Complex Communications Solutions Communications System Integrator Company Confidential

4 Black Box Network Services (BBOX) » Deep Organic Resources 4,300 team member 3,000 engineers and technicians Key Differentiators Company Confidential 4 and many more… » Technology Independent » Broad Geographic Footprint 200 offices worldwide 150 countries

5 Black Box Platforms Company Confidential 5 Communication Services Communication Services Technology Products Technology Products Black Box is comprised of 2 platforms for building growth. Each platform allows us to leverage and evolve current capabilities to capture market share in the most promising market segments. Power of the platforms – high barriers to entry » Scale – multi-office, multi-product and diverse skills » Flexibility – capture innovation without increasing risk » Leverage – shared service infrastructure

6 Technology Products Platform Company Confidential 6 Global sales and distributionFree 24/7/365 tech support Custom solutions Same day delivery Lifetime warranties Quality control Global product management & sourcing Global sales and distributionFree 24/7/365 tech support Custom solutions Same day delivery Lifetime warranties Quality control Global product management & sourcing Virtualization Digital Signage Cabinets & Racks Cabling Infrastructure Future Products Products added to platform as market is proven PLATFORMPLATFORM PRODUCTSPRODUCTS Wireless Networking Switches & Routers

7 Communications Services Platform Company Confidential 7 Services added to platform as market is proven Engineering and design Network Operations Centers Technical certifications Local & national sales teams Remote monitoring On-site service teams Technology Partner Centers of Excellence Engineering and design Network Operations Centers Technical certifications Local & national sales teams Remote monitoring On-site service teams Technology Partner Centers of Excellence Communications Lifecycle Services Unified Communications Video \ AV Services In-building Wireless Data Center Services Future Services PLATFORMPLATFORM SERVICESSERVICES Structured Cabling

8 Product / Service Lifecycle Company Confidential 8 IntroductionMaturityGrowthEnd of Life TDM Switches & Routers Unified Communications Video Services In-Building Wireless Data Center Services Digital Signage Cabling Virtualization Services Black Box’s robust platforms allow for a distribution of offerings across all stages of the product/service life cycle. Mobility Services Structured Cabling

9 Strategic Pillars » Strengthen the platforms through internal investment and partner relationships » Add high growth products and services by developing and acquiring new capabilities » Generate additional leverage in our shared service infrastructure 9 Company Confidential

10 10 Financial Overview Company Confidential

11 Well-Diversified Revenues 11 Source: Derived from the Company’s 2011 Annual Report. Revenue by Industry

12 12 Well-Diversified Revenues Revenue by Geography Revenue by Client Size (1) Revenue by Client Type (1) Large Companies include those with revenues greater than $1 billion, including federal governments Medium companies include those with revenues between $100 million and $1 billion, including state governments Small companies include those with revenues less than $100 million, including local governments Source: Derived from Company’s 20111Annual Report. Company Confidential

13 13 Backlog & Maintenance Revenue Backlog represents expected revenue related to executed client purchase orders or contracts that are estimated to be complete within 180 days of quarter end. Source: Derived from Company data. Company Confidential

14 14 Revenue & Adjusted Operating Income Margins * See attached reconciliation Company Confidential Source: Derived from Company data and Company’s 2012 Form 10-K. Organic Growth 3% (10%) (13%) 9% (5%)

15 15 GAAP/Non-GAAP Reconciliation Company Confidential Source: Derived from Company data and Company’s 2012 Form 10-K.

16 16 Balance Sheet Metrics 20082009201020112012 DSO Days5553514952 Inventory Turns7.18.58.89.28.8 Capex (M)$3.2$2.2$2.3$5.1$7.6 Capex as % of Rev. 0.3%0.2% 0.5%0.7% Headcount4,3134,5424,3484,4134,302 Debt / Equity.3 to 1.4 to 1.3 to 1.2 to 1.4 to 1 Company Confidential Source: Derived from Company data and Company’s 2012 Form 10-K.

17 Company Confidential 17 Consistent Positive Cash Flow Source: Derived from Company data and Company’s 2012 Form 10-K.

18 18 Deployment of Capital 28¢ per share annual dividend - 1.3% yield » 17% increase over F2011 » Quarterly dividend increased 14% to 8¢ per share in 1Q13. $15M for stock repurchases » Additional 1M share approval in F13 Invested $41M in strategic acquisitions of quality companies in high growth markets Company Confidential 2010 – 2012 Deployment as a % of Free Cash Flow Source: Derived from Company data and Company’s 2012 Form 10-K. 2012 Cash Flow Highlights

19 19 Liquidity At March 31, 2012 $22 million in cash $400 million syndicated line of credit » $180M drawn down » Leverage ratio - 1.7, Covenant < 3.5 » Interest Coverage Ratio – 18.8, Covenant > 3.5 » Borrowing rate – LIBOR + 1.125% = 1.6% » Expires March 2017 Company Confidential

20 Proposition to shareholders Competitive advantage in key differentiators » Technology independent » Broad geographic footprint » Deep organic resources Robust service and product delivery platforms » Scale » Flexibility » Leverage Balanced deployment of capital » Investment in business » Return for shareholders 20

21 NASDAQ: BBOX


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