Vistance Networks, Inc. · NASDAQ:VISN

Vistance Networks — CommScope Holding Company — Q4 2023 Earnings Presentation

23 slides from Vistance Networks's earnings presentation, Feb 29, 2024

  1. Slide 1: Fourth Quarter and Full Year 2023 Results

    February 29, 2024 Fourth Quarter and Full Year 2023 Results

  2. Slide 2: Important information

    Important information Caution Regarding Forward Looking Statements This presentation or any other oral or written statements made by us or on our behalf may include forward-looking statements that reflect our current views with respect to future events and financial performance. These statements may

  3. Slide 3: Lower net sales driven by lower market demand and inventory corrections

    (1) • Lower Net Sales driven by lower market demand and customer inventory corrections – Net sales of $5.79 billion, declining 23% from prior year • Adjusted EBITDA Results – Core adjusted EBITDA of $1.02 billion(2)(3) and Consolidated CommScope adjusted EBITDA of $999 million(3) • Cost Actions – Co

  4. Slide 4: Full year 2023 Core and Consolidated CommScope results

    (1) Consolidated CommScope Core CommScope(2) (In $millions, except per share amounts) (In $millions) FY’22 FY’23 Y/Y Change FY’22 FY’23 Y/Y Change Results Results Results Results Net Sales $7,525 $5,789 -23% Net Sales $7,525 $5,789 -23% Adj. EBITDA(3) $1,223 $999 -18% Adj. EBITDA(3) $1,250 $1,022 -1

  5. Slide 5: Fourth quarter 2023 Core and Consolidated CommScope results

    (1) Consolidated CommScope Core CommScope(2) (In $millions, except per share amounts) (In $millions) 4Q’22 4Q’23 Y/Y Change 4Q’22 4Q’23 Y/Y Change Results Results Results Results Net Sales $1,925 $1,186 -38% Net Sales $1,925 $1,186 -38% Adj. EBITDA(3) $375 $191 -49% Adj. EBITDA(3) $381 $199 -48% Adj

  6. Slide 6: Fourth quarter segment highlights

    Fourth quarter segment highlights Business Segment Net Sales ($M) Y-Y% Adj. EBITDA(1) ($M) Y-Y% Observations 4Q’22 4Q’23 4Q’22 4Q’23 • Lower demand driven by high customer inventory levels and lower market demand Connectivity and CCS Cable Solutions -42% -55% • Seeing some rebound in orders but stil

  7. Slide 7: Cash flow update

    Cash flow update (1) GAAP Cash Flow from Operations ($M) Adj. Free Cash Flow(2) ($M) $387 $403 $382 $290 $182 $137 $139 $149 $60 $92 ($46) ($40) 4Q’22 1Q’23 2Q’23 3Q’23 4Q’23 FY’23 4Q’22 1Q’23 2Q’23 3Q’23 4Q’23 FY’23 • Fourth quarter cash flow down YOY due to lower EBITDA, increased working capital

  8. Slide 8: Strong liquidity & balance sheet management

    Strong liquidity & balance sheet management Debt Maturities (as of 12/31/23) Cash & liquidity remain strong ($ millions) • Ended the quarter with available Secured Debt Unsecured Debt liquidity over $1.2 billion n ABL n 6.00% Notes due 2025 $1,500 • No outstanding ABL revolver draws n Term Loan B n

  9. Slide 9: Closing Remarks

    Closing Remarks Chuck Treadway President and Chief Executive Officer

  10. Slide 10: Q&A Fourth Quarter 2023 Results

    Q&A Fourth Quarter 2023 Results

  11. Slide 11: Appendix

    COMMSCOPE’ Appendix

  12. Slide 12: Condensed Consolidated Statements of Operations

    CommScope Holding Company, Inc. Condensed Consolidated Statements of Operations (Unaudited -- In millions, except per share amounts) Three Months Ended Year Ended December 31, December 31, Statements of 2023 2022 2023 2022 Net sales $ 1,185.9 $ 1,925.5 $ 5,789.2 $ 7,524.7 Cost of sales 737.6 1,200.1

  13. Slide 13: Consolidated Balance Sheets

    CommScope Holding Company, Inc. Consolidated Balance Sheets (In millions, except share amounts) December 31, 2023 2022 Balance Sheets Assets Cash and cash equivalents $ 543.8 $ 373.0 Accounts receivable, net of allowance for doubtful accounts of $32.2 and $50.1, respectively 815.2 1,178.2 Inventorie

  14. Slide 14: Consolidated Statements of Cash Flows

    CommScope Holding Company, Inc. (1) Consolidated Statements of Cash Flows (Unaudited -- In millions) Three Months Ended Year Ended Statements of December 31, December 31, 2023 2022 2023 2022 Operating Activities: Cash Flows Net loss $ (525.1) $ (1,108.8) $ (1,450.9) $ (1,286.9) Adjustments to reconc

  15. Slide 15: Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures

    CommScope Holding Company, Inc. Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures (Unaudited -- In millions, except per share amounts) Three Months Ended Year Ended December 31, December 31, Adjusted EBITDA and Loss from continuing operations, as reported Income tax expense (benefit) $ 2

  16. Slide 16: Sales by Region

    CommScope Holding Company, Inc. Sales by Region Sales by Region (Unaudited -- In millions) Sales by Region % Change Q4 2023 Q4 2022 YOY United States $ 740.2 $ 1,316.6 (43.8) % Europe, Middle East and Africa 192.1 302.4 (36.5) Asia Pacific 159.1 173.7 (8.4) Caribbean and Latin America 65.6 86.1 (23.

  17. Slide 17: Segment Information: Q4 Sales and Adjusted EBITDA by Segment

    CommScope Holding Company, Inc. Segment Information (Unaudited -- In millions) Sales and Adjusted Segment Net Sales EBITDA by Segment Connectivity and Cable Solutions $ Q4 2023 555.8 $ Q4 2022 957.1 % Change YOY (41.9) % Networking, Intelligent Cellular and Security Solutions 216.7 288.5 (24.9) Outd

  18. Slide 18: Segment Information: Full Year Sales and Adjusted EBITDA by Segment

    CommScope Holding Company, Inc. Segment Information (Unaudited -- In millions) Sales and Adjusted Segment Net Sales EBITDA by Segment % Change Full Year 2023 Full Year 2022 YOY CCS $ 2,710.2 $ 3,789.6 (28.5) % NICS 1,117.7 939.7 18.9 OWN 880.0 1,467.9 (40.1) ANS 1,081.3 1,327.5 (18.5) Total net sale

  19. Slide 19: Fourth Quarter Segment Adjusted EBITDA Reconciliation

    CommScope Holding Company, Inc. Reconciliation of GAAP to Segment Adjusted EBITDA (Unaudited -- In millions) Fourth Quarter 2023 Segment Adjusted EBITDA Reconciliation Adjusted EBITDA CCS NICS OWN ANS Corporate and other (1) Total Reconciliation by Operating income (loss), as reported Amortization o

  20. Slide 20: Full Year Segment Adjusted EBITDA Reconciliation

    CommScope Holding Company, Inc. Reconciliation of GAAP to Segment Adjusted EBITDA (Unaudited -- In millions) Year Ended December 31, 2023 Segment Adjusted EBITDA Reconciliation Adjusted EBITDA CCS NICS OWN ANS Corporate and other (1) Total Reconciliation by Operating income (loss), as reported Amort

  21. Slide 21: Adjusted Free Cash Flow Reconciliation

    Adjusted Free Cash Adjusted Free Cash Flow (Unaudited -- In millions) Flow Reconciliation Adjusted Free Cash Flow Q4 Q1 Q2 Q3 Q4 Full Year Full Year 2022 2023 2023 2023 2023 2023 2022 Cash flow from operations $ 386.8 $ (46.1) $ 136.8 $ 138.8 $ 60.4 $ 289.9 $ 190.0 Capital expenditures (22.6) (14.4)

  22. Slide 22: Adjusted Gross Profit and Adjusted Operating Expense Reconciliations

    CommScope Holding Company, Inc. Adjusted Gross Profit and Adjusted Operating Expense Adjusted Gross Profit (Unaudited -- In millions) and Adjusted Operating GAAP to Non-GAAP Adjusted Gross Profit Full Year Full Year Expense Reconciliations Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 2022 Gross prof

  23. Slide 23: Outlook Adjusted EBITDA Reconciliation

    CommScope Holding Company, Inc. Outlook Adjusted Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures (Unaudited -- In millions) EBITDA Reconciliation Outlook Range 2024 Loss from continuing operations $ (309) $ (333) Income tax benefit 125 135 Interest income (5) — Interest expense 165 170

CommScope Holding Company — Q4 2023 Earnings Presentation on 6ix