Vistance Networks, Inc. · NASDAQ:VISN
Vistance Networks — CommScope Holding Company — Q1 2022 Earnings Presentation
27 slides from Vistance Networks's earnings presentation, May 5, 2022
Slide 1: First Quarter 2022 Results
May 5, 2022 First Quarter 2022 Results
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
Slide 3: Strong top-line growth and Adjusted EBITDA highlights
• Strong top-line growth – Core(1) net sales of $1.73 billion, growing 10% from prior year; Consolidated CommScope net sales of $2.23 billion, growing 8% from prior year • Adjusted EBITDA – Core(1) adjusted EBITDA of $230 million(2) and Consolidated CommScope adjusted EBITDA of $253 million(2) • Com
Slide 4: Core CommScope realigns into four new Core segments
CommScope realigns into four new Core segments OLD NEW Broadband Cable & Connectivity (Fiber, Broadband Networks Connectivity and Cable Solutions Coax, Copper) |Building & Datacenter Broadband Cable & Connectivity (Fiber, Coax, Copper) | Active Broadband (Access Technologies, (CCS) Cable & Connectiv
Slide 5: First quarter highlights
First quarter highlights Core CommScope: CCS, OWN, NICS, ANS Home Networks • Connectivity and Cabling Solutions (CCS) • Net sales essentially flat to Strong YoY net sales grew 24% from prior year – led by fiber products growing 38%; prior year continued strength in end-market demand; ramping capacit
Slide 6: CommScope NEXT update
CommScope NEXT update ▪ Organic Growth – fiber capacity investments; focused investment in innovation; pricing and quoting tools; expansion of sales force Transformation ▪ Cost Efficiency – managing period overhead; procurement excellence program; optimized Progress manufacturing processes ▪ Portfol
Slide 7: Consolidated CommScope and Core CommScope results
Consolidated CommScope Core CommScope (1) (In $millions, except per share amounts) (In $millions) 1Q’21 1Q’22 Y/Y Change 1Q’21 1Q’22 Y/Y Change Results Results Results Results Net Sales $2,072 $2,229 +8% Net Sales $1,571 $1,733 +10% Adj. EBITDA(2) $290 $253 -13% Adj. EBITDA(2) $270 $230 -15% Adj. EB
Slide 8: First quarter segment highlights
First quarter segment highlights Net Sales ($M) Adj. EBITDA(1) ($M) Observations Connectivity and Cable 1Q'22 $838 1Q'22 $99 • Strong demand across all end-markets • Particular strength in fiber products Solutions (CCS) 1Q'21 $677 1Q'21 $106 • Ramping capacity • Margins challenged by inflation of in
Slide 9: Cash flow update
Cash flow update GAAP Cash Flow from Operations ($M) Adj. Free Cash Flow(1) ($M) $192 $198 $64 $67 $(12) ($27) ($24) ($15) ($124) ($135) 1Q’21 2Q’21 3Q’21 4Q’21 1Q’22 1Q’21 2Q’21 3Q’21 4Q’21 1Q’22 • First quarter working capital impacted by top-line growth and higher inventory related to strong orde
Slide 10: Strong liquidity & balance sheet management
Strong liquidity & balance sheet management Debt Maturities (as of 3/31/22) Cash & liquidity remain strong ($ millions) Secured Debt Unsecured Debt • Ended the quarter with available ABL 6.00% Notes due 2025 liquidity of ~$1.03 billion Term Loan B 5.00% Notes due 2027 • No outstanding draws under AB
Slide 11: Full year 2022 expectations
Full year 2022 expectations Reiterate targets set during December’s Strategic Transformation Update Adj. EBITDA (1) ($ B) • On track to deliver Core CommScope Adj. EBITDA in the range of $1.15 - $1.25 billion 1.15 – 1.25 1.09 Additional considerations • Continued challenges related to chip supply en
Slide 12: Q&A First Quarter 2022 Results
Q&A First Quarter 2022 Results
Slide 13: Appendix
COMMSCOPE’ Appendix
Slide 14: Statements of Operations
CommScope Holding Company, Inc. Condensed Consolidated Statements of Operations (Unaudited -- In millions, except per share amounts) Statements of Thre e Months Ende d March 31, Operations Net sales $ 2022 2,228.6 $ 2021 2,072.0 Cost of sales 1,592.3 1,399.8 Gross profit 636.3 672.2 Operating expens
Slide 15: Balance Sheets
CommScope Holding Company, Inc. Condensed Consolidated Balance Sheets (In millions, except share amounts) Unaudited Balance Sheets Cash and cash equivalents Assets $ March 31, 2022 314.7 $ December 31, 2021 360.3 Accounts receivable, less allowance for doubtful accounts of $64.8 and $63.7, respectiv
Slide 16: Statements of Cash Flows
CommScope Holding Company, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited -- In millions) Statements of Cash Three Months Ended 2022 March 31, 2021 Flows Operating Activities: Net loss $ (139.9) $ (97.6) Adjustments to reconcile net loss to net cash used in operating activities: Dep
Slide 17: Adjusted EBITDA and Adjusted Net Income Reconciliation
CommScope Holding Company, Inc. Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures (Unaudited -- In millions, except per share amounts) Three Months Ended Adjusted EBITDA and Net loss, as reported $ 2022 March 31, (139.9) $ 2021 (97.6) Adjusted Net Income Income tax expense (benefit), as
Slide 18: Sales by Region
Sales by Region CommScope Holding Company, Inc. Sales by Region (Unaudited -- In millions) Sales by Region % Change Q1 2022 Q1 2021 YOY United States $ 1,347.1 $ 1,191.9 13.0% Europe, Middle East and Africa 406.4 385.7 5.4 Asia Pacific 203.4 225.4 (9.8) Caribbean and Latin America 162.3 192.1 (15.5)
Slide 19: Sales and Adjusted EBITDA by Segment
CommScope Holding Company, Inc. Segment Information Sales and Adjusted (Unaudited -- In millions) EBITDA by Segment Segment Net Sales % Change Q1 2022 Q1 2021 YOY Connectivity and Cable Solutions $ 838.0 $ 676.9 23.8 % Outdoor Wireless Networks 390.1 324.2 20.3 Networking, Intelligent Cellular and S
Slide 20: Adjusted EBITDA Reconciliation by Segment
CommScope Holding Company, Inc. Reconciliation of GAAP to Segment Adjusted EBITDA (Unaudited -- In millions) Adjusted EBITDA First Quarter 2022 Segment Adjusted EBITDA Reconciliation Networking, Reconciliation by Connectivity and Cable S olutions Outdoor Wireless Networks Intelligent Cellular and S
Slide 21: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash CommScope Holding Company, Inc. Flow Reconciliation Adjusted Free Cash Flow (Unaudited -- In millions) Adjusted Free Cash Flow Q1 Q2 Q3 Q4 Q1 2021 2021 2021 2021 2022 Cash flow from operations $ (124.0) $ 191.6 $ 67.1 $ (12.4) $ (14.6) Capital expenditures (26.4) (33.8) (36.0) (35
Slide 22: Adjusted Gross Profit and Adjusted Operating Expense Reconciliations
Adjusted Gross Profit and Adjusted Operating Expense Reconciliations © 2022 CommScope, Inc. All rights reserved. | CommScope, ARRIS and the ARRIS logo are trademarks of CommScope, Inc. and/or its affiliates. All other trademarks are the property of their respective owners.
Slide 23: New Segment 2021 and 2020 Financial Information
New Segment 2021 CommScope Holding Company, Inc. New Segment Information (1) and 2020 Financial Segment Net Sales (Unaudited -- In millions) Full Year Full Year Information Cable and Connectivity Solutions $ Q1 2021 676.9 $ Q2 2021 783.4 $ Q3 2021 787.6 $ Q4 2021 805.9 2021 $ 3,053.9 2020 $ 2,551.7
Slide 24: New Segment 2021 Financial Information
CommScope Holding Company, Inc. Reconciliation of GAAP to Segment Adjusted EBITDA - New Segments New Segment 2021 (Unaudited -- In millions) Financial Information First Quarter 2021 Segment Adjusted EBITDA Reconciliation Networking, Intelligent Connectivity Outdoor Cellular and Access and Cable Wire
Slide 25: New Segment 2021 Financial Information (Continued)
CommScope Holding Company, Inc. New Segment 2021 Reconciliation of GAAP to Segment Adjusted EBITDA - New Segments (Unaudited -- In millions) Financial Information Third Quarter 2021 Segment Adjusted EBITDA Reconciliation Networking, Intelligent (Continued) Connectivity and Cable S olutions Outdoor W
Slide 26: New Segment 2020 Financial Information
New Segment 2020 Financial Information CommScope Holding Company, Inc. Reconciliation of GAAP to Segment Adjusted EBITDA (Unaudited -- In millions) Year Ended December 31, 2020 Segment Adjusted EBITDA Reconciliation Networking, Intelligent Connectivity Outdoor Cellular and Access and Cable Wireless
Slide 27: Core Segment Adjusted EBITDA Reconciliation
Core Segment CommScope Holding Company, Inc. Adjusted EBITDA Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures (Unaudited -- In millions) Reconciliation Outlook Range 2022 (1) Core operating income $ 479 $ 553 Adjustments: Amortization of purchased intangible assets 442 442 Equity-based
CommScope Holding Company — Q1 2022 Earnings Presentation on 6ix