Vistance Networks, Inc. · NASDAQ:VISN
Vistance Networks — CommScope Holding Company — Q3 2024 Earnings Presentation
22 slides from Vistance Networks's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter 2024 Results
November 7, 2024 Third Quarter 2024 Results
Slide 2: Important information
Important information Caution Regarding Forward Looking Statements This presentation includes certain statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amende
Slide 3: Third quarter results
Third quarter results • Net Sales Increased due to market recovery and customer inventory normalization –Net sales of $1.08 billion, increasing 3% from prior year • Revenue improved by 3% sequentially • Adjusted EBITDA Results – Core(1) adjusted EBITDA of $220 million(2) • Core adjusted EBITDA impro
Slide 4: Third quarter results
Third quarter results (1) CommScope Core CommScope(2) CommScope incl. OWN & DAS “Continuing Operations” (In $millions) (In $millions) (In $millions, except per share amounts) 3Q’23 3Q’24 Y/Y 3Q’23 3Q’24 Y/Y 3Q’23 3Q’24 Y/Y Results Results Change Results Results Change Results Results Change Net Sale
Slide 5: Third quarter Core business highlights
Third quarter Core business highlights Business Segment Net Sales ($M) Y-Y% Adj. EBITDA(1) ($M) Y-Y% Observations 3Q’23 3Q’24 3Q’23 3Q’24 • Continued YoY revenue growth driven by cloud and hyperscale datacenter growth including GenAI projects Connectivity and • Revenue growth in structured cabling s
Slide 6: Cash flow update
Cash flow update (1) GAAP Cash Flow from Operations ($M) Free Cash Flow ($M) $130 $115 $139 $122 $51 $46 $60 $51 ($178) ($184) 3Q’23 4Q’23 1Q’24 2Q’24 3Q’24 3Q’23 4Q’23 1Q’24 2Q’24 3Q’24 • Year over year decrease driven by increased working capital needs. • 2024 free cash flow expected to be lower t
Slide 7: Strong liquidity & balance sheet management
Strong liquidity & balance sheet management Debt Maturities (as of 9/30/24) Cash & liquidity remain strong ($ millions) • Ended the quarter with available Secured Debt Unsecured Debt liquidity over $1,024 million (3) ◼ ABL ◼ 6.00% Notes due 2025 (2) $1,500 • No outstanding ABL revolver draws ◼ Term
Slide 8: Closing Remarks
Closing Remarks Chuck Treadway President and Chief Executive Officer 7 © 2024 CommScope, LLC. All rights reserved. | CommScope, ARRIS and t he ARRIS l ogo are trademarks of CommScope, Inc. and/or its affiliates. All other trademarks are t he property of thei r respective owners.
Slide 9: Q&A
Q&A Third Quarter 2024 Results 8 © 2024 CommScope, LLC. All rights reserved. | CommScope, ARRIS and t he ARRIS l ogo are trademarks of CommScope, Inc. and/or its affiliates. All other trademarks are t he property of thei r respective owners.
Slide 10: Appendix
COMMSCOPE’ Appendix
Slide 11: Condensed Consolidated Statements of Operations
CommScope Holding Company, Inc. Condensed Consolidated Statements of Operations (Unaudited -- In millions, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Statements of Net sales Cost of sales Gross profit $ 1,082.2 647.1 435.1 $ 1,053.4
Slide 12: Condensed Consolidated Balance Sheets
CommScope Holding Company, Inc. Condensed Consolidated Balance Sheets (In millions, except share amounts) Unaudited September 30, 2024 December 31, 2023 Assets Balance Sheets Cash and cash equivalents Accounts receivable, net of allowance for doubtful accounts of $17.9 and $24.3, respectively $ 392.
Slide 13: Condensed Consolidated Statements of Cash Flows
CommScope Holding Company, Inc. Condensed Consolidated Statements of Cash Flows (1) (Unaudited -- In millions) Three Months Ended Nine Months Ended September 30, September 30, Statements of Operating Activities: Net loss $ 2024 (33.0) $ 2023 (828.7) $ 2024 (347.8) $ 2023 (925.7) Cash Flows Adjustmen
Slide 14: 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 Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Adjusted EBITDA and Loss from continuing operations, as reported Inc
Slide 15: Sales by Region
Sales by Region CommScope Holding Company, Inc. Sales by Region (Unaudited -- In millions) Sales by Region % Change Q3 2024 Q3 2023 YOY United States $ 714.6 $ 693.2 3.1 % Europe, Middle East and Africa 159.3 153.1 4.0 Asia Pacific 126.6 126.1 0.4 Caribbean and Latin America 47.5 50.0 (5.0) Canada 3
Slide 16: Sales and Adjusted EBITDA by Segment
CommScope Holding Company, Inc. Sales and Adjusted Segment Information (Unaudited -- In millions) EBITDA by Segment Segment Net Sales % Change Q3 2024 Q3 2023 YOY CCS $ 736.7 $ 630.5 16.8 % NICS 157.5 202.6 (22.3) ANS 188.0 220.3 (14.7) Total net sales $ 1,082.2 $ 1,053.4 2.7 % (1) Segment Adjusted
Slide 17: Adjusted EBITDA Reconciliation by Segment
CommScope Holding Company, Inc. Reconciliation of GAAP to Segment Adjusted EBITDA (Unaudited -- In millions) Third Quarter 2024 Segment Adjusted EBITDA Reconciliation Adjusted EBITDA CCS NICS ANS Corporate and other (1) Total Reconciliation by Operating income (loss), as reported Amortization of pur
Slide 18: Adjusted EBITDA Reconciliation (including OWN & DAS)
Adjusted EBITDA CommScope Holding Company, Inc. Reconciliation of GAAP to Segment Adjusted EBITDA Reconciliation (Unaudited -- In millions) (including OWN CommScope (including OWN & DAS) Adjusted EBITDA Reconciliation & DAS) Q3 2024 Q3 2023 Operating income (loss), as reported $ 193.0 $ (331.8) Amor
Slide 19: Free Cash Flow Reconciliation
Free Cash Flow CommScope Holding Company, Inc. Free Cash Flow Reconciliation (Unaudited -- In millions) Free Cash Flow (1) Q3 Q4 Q1 Q2 Q3 2023 2023 2024 2024 2024 Cash flow from operations $ 138.8 $ 60.4 $ (177.7) $ 50.8 $ 122.2 Capital expenditures (8.7) (9.4) (6.0) (5.3) (6.7) Free cash flow 130.1
Slide 20: Adjusted Gross Profit and Adjusted Operating Expense
CommScope Holding Company, Inc. Adjusted Gross Profit and Adjusted Operating Expense (Unaudited -- In millions) Adjusted Gross Profit GAAP to Non-GAAP Adjusted Gross Profit and Adjusted Operating Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Expense Reconciliations Gross profit, as reported Equity-based c
Slide 21: Adjusted EBITDA Outlook Reconciliation
CommScope Holding Company, Inc. Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures (Unaudited -- In millions) Consolidated Adjusted EBITDA Outlook Reconciliation Adjusted EBITDA Outlook Range 2024 Outlook Reconciliation Operating income Adjustments: Amortization of purchased intangible as
Slide 22: Free Cash Flow Outlook Reconciliation
Free Cash Flow Outlook Reconciliation Free Cash Flow(1) Outlook Reconciliation Outlook Range 2024 Cash flow from operations $ - $ 60 Capital expenditures (25) (35) Free cash flow $ (25) $ 25 Cash paid for restructuring, transaction, transformation and integration costs 70 90 Adjusted free cash flow
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