Vistance Networks, Inc. · NASDAQ:VISN
Vistance Networks — CommScope Holding Company — Q2 2023 Earnings Presentation
20 slides from Vistance Networks's earnings presentation, Aug 3, 2023
Slide 1: Second Quarter 2023 Results
August 3, 2023 Second Quarter 2023 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: Second quarter highlights and reduced FY23 outlook
• Lower Net Sales driven by customer inventory corrections and customer CAPEX reductions– Core(1) net sales of $1.59 billion, declining 15% from prior year; Consolidated CommScope net sales of $1.92 billion, declining 17% from prior year • Adjusted EBITDA due to lower revenue – Core adjusted EBITDA
Slide 4: Core CommScope and Consolidated CommScope results
Consolidated CommScope Core CommScope(1) (In $millions, except per share amounts) (In $millions) 2Q’22 2Q’23 Y/Y Change 2Q’22 2Q’23 Y/Y Change Results Results Results Results Net Sales $2,300 $1,918 -17% Net Sales $1,876 $1,589 -15% Adj. EBITDA(2) $300 $260 -13% Adj. EBITDA(2) $287 $263 -8% Adj. EBI
Slide 5: Second quarter segment highlights
Second quarter segment highlights Business Segment Net Sales ($M) Y-Y% Adj. EBITDA(1) ($M) Y-Y% Observations 2Q’22 2Q’23 2Q’22 2Q’23 • Order rates continue to be challenged as customers continue to Connectivity and work through inventory and manage capital expenditures CCS Cable Solutions -29% -53%
Slide 6: Cash flow update
Cash flow update GAAP Cash Flow from Operations ($M) Adj. Free Cash Flow(1) ($M) $387 $403 $137 $149 ($46) ($40) ($95) ($88) ($91) ($91) 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 • Year over year increase driven by reduced working capital, partially offset by lower EBITDA and highe
Slide 7: Strong liquidity & balance sheet management
Strong liquidity & balance sheet management Debt Maturities (as of 6/30/23) Cash & liquidity remain strong ($ millions) • Ended the quarter with available Secured Debt Unsecured Debt liquidity over $1 billion n ABL n 6.00% Notes due 2025 $1,500 • No outstanding ABL revolver draws n Term Loan B n 5.0
Slide 8: Closing Remarks
Closing Remarks Chuck Treadway President and Chief Executive Officer
Slide 9: Q&A
Q&A Second Quarter 2023 Results
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) Statements of Thre e Months Ende d June 30, Six Months Ende d June 30, Operations Net sales Cost of sales $ 2023 1,918.4 1,301.2 $ 2022 2,300.2 1,617.0 $ 2023 3,919.9
Slide 12: Condensed Consolidated Balance Sheets
CommScope Holding Company, Inc. Condensed Consolidated Balance Sheets (In millions, except share amounts) Balance Sheets Unaudited June 30, 2023 December 31, 2022 Assets Cash and cash equivalents $ 418.1 $ 398.1 Accounts receivable, net of allowance for doubtful accounts of $63.0 and $82.8, respecti
Slide 13: Condensed Consolidated Statements of Cash Flows
CommScope Holding Company, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited -- In millions) Statements of Three Months Ended June 30, Six Months Ended June 30, Cash Flows 2023 2022 2023 2022 Operating Activities: Net loss $ (100.4) $ (61.0) $ (97.0) $ (200.9) Adjustments to reconcile
Slide 14: 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 Six Months Ended Adjusted EBITDA and June 30, June 30, 2023 2022 2023 2022 Net loss, as reported $ (100.4) $ (61.0) $ (97.0) $ (200.9)
Slide 15: Sales by Region
Sales by Region CommScope Holding Company, Inc. Sales by Region (Unaudited -- In millions) Sales by Region % Change Q2 2023 Q2 2022 YOY United States $ 1,105.4 $ 1,424.3 (22.4) % Europe, Middle East and Africa 369.8 378.4 (2.3) Asia Pacific 195.0 223.1 (12.6) Caribbean and Latin America 128.2 150.4
Slide 16: 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 Q2 2023 Q2 2022 YOY Connectivity and Cable Solutions $ 698.9 $ 986.7 (29.2) % Networking, Intelligent Cellular and Security Solutions 327.6 205.4 59.5 Outdoo
Slide 17: Adjusted EBITDA Reconciliation by Segment
CommScope Holding Company, Inc. Reconciliation of GAAP to Segment Adjusted EBITDA (Unaudited -- In millions) Adjusted EBITDA Second Quarter 2023 Segment Adjusted EBITDA Reconciliation Reconciliation by CCS NICS OWN ANS Home Total Operating income (loss), as reported $ 28.9 $ 44.7 $ 27.4 $ 9.0 $ (37.
Slide 18: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation CommScope Holding Company, Inc. Adjusted Free Cash Flow (Unaudited -- In millions) Adjusted Free Cash Flow Q2 Q3 Q4 Q1 Q2 2022 2022 2022 2023 2023 Cash flow from operations $ (94.6) $ (87.6) $ 386.8 $ (46.1) $ 136.8 Capital expenditures (27.7) (23.6) (22.6) (14
Slide 19: Adjusted Gross Profit and Adjusted Operating Expense
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 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Expense Reconciliations Gross profit, as reported Equity-based c
Slide 20: Outlook Core Segment Adjusted EBITDA and Free Cash Flow Reconciliations
CommScope Holding Company, Inc. Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures (Unaudited -- In millions) Outlook Core Core Segment Adjusted EBITDA Segment Adjusted Outlook Range 2023 (1) EBITDA and Adjusted Core segment operating income $ 625 $ 699 Adjustments: Amortization of purcha
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