Vistance Networks, Inc. · NASDAQ:VISN
Vistance Networks — CommScope Holding Company — Q3 2023 Earnings Presentation
20 slides from Vistance Networks's earnings presentation, Nov 9, 2023
Slide 1: Third Quarter 2023 Results
November 9, 2023 Third 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: Third quarter highlights and reduced guidance
• Lower Net Sales driven by customer inventory corrections and customer CAPEX reductions– Core(1) net sales of $1.35 billion, declining 32% from prior year; Consolidated CommScope net sales of $1.60 billion, declining 33% 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) 3Q’22 3Q’23 Y/Y Change 3Q’22 3Q’23 Y/Y Change Results Results Results Results Net Sales $2,381 $1,600 -33% Net Sales $1,990 $1,350 -32% Adj. EBITDA(2) $348 $249 -28% Adj. EBITDA(2) $353 $245 -30% Adj. EB
Slide 5: Third quarter segment highlights
Third quarter segment highlights Business Segment Net Sales ($M) Y-Y% Adj. EBITDA(1) ($M) Y-Y% Observations 3Q’22 3Q’23 3Q’22 3Q’23 • Order rates continue to be challenged as customers & distributors continue to work through inventory and manage Connectivity and capital expenditures CCS Cable Soluti
Slide 6: Cash flow update
Cash flow update GAAP Cash Flow from Operations ($M) Adj. Free Cash Flow(1) ($M) $387 $403 $137 $139 $149 $182 ($46) ($40) ($88) ($91) 3Q’22 4Q’22 1Q’23 2Q’23 3Q’23 3Q’22 4Q’22 1Q’23 2Q’23 3Q’23 • Year over year increase driven by reduced working capital, partially offset by lower EBITDA and higher
Slide 7: Strong liquidity & balance sheet management
Strong liquidity & balance sheet management Debt Maturities (as of 9/30/23) Cash & liquidity remain strong ($ millions) • Ended the quarter with available Secured Debt Unsecured Debt liquidity over $1.29 billion n ABL n 6.00% Notes due 2025 $1,500 • No outstanding ABL revolver draws n Term Loan B n
Slide 8: Closing Remarks
Closing Remarks Chuck Treadway President and Chief Executive Officer
Slide 9: Q&A
Q&A Third 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) Three Months Ended Nine Months Ended Statements of 2023 September 30, 2022 2023 September 30, 2022 Operations Net sales $ 1,599.5 $ 2,381.4 $ 5,519.4 $ 6,910.2 Cost of
Slide 12: Condensed Consolidated Balance Sheets
CommScope Holding Company, Inc. Condensed Consolidated Balance Sheets (In millions, except share amounts) Unaudited September 30, 2023 December 31, 2022 Balance Sheets Assets Cash and cash equivalents $ 518.9 $ 398.1 Accounts receivable, net of allowance for doubtful accounts of $66.3 and $82.8, res
Slide 13: Condensed Consolidated Statements of Cash Flows
CommScope Holding Company, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited -- In millions) Three Months Ended Nine Months Ended Statements of September 30, September 30, 2023 2022 2023 2022 Operating Activities: Cash Flows Net income (loss) Adjustments to reconcile net income (loss)
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 Nine Months Ended September 30, September 30, Adjusted EBITDA and 2023 2022 2023 2022 Net income (loss), as reported $ (828.7) $ 22.9
Slide 15: Sales by Region
Sales by Region CommScope Holding Company, Inc. Sales by Region (Unaudited -- In millions) Sales by Region % Change Q3 2023 Q3 2022 YOY United States $ 957.4 $ 1,495.1 (36.0) % Europe, Middle East and Africa 297.8 396.0 (24.8) Asia Pacific 172.2 210.9 (18.3) Caribbean and Latin America 74.9 148.6 (4
Slide 16: Sales and Adjusted EBITDA by Segment
CommScope Holding Company, Inc. Segment Information (Unaudited -- In millions) Sales and Adjusted Segment Net Sales % Change EBITDA by Segment Q3 2023 Q3 2022 YOY Connectivity and Cable Solutions $ 632.5 $ 1,007.7 (37.2) % Networking, Intelligent Cellular and Security Solutions 289.0 257.9 12.1 Outd
Slide 17: Adjusted EBITDA Reconciliation by Segment
CommScope Holding Company, Inc. Reconciliation of GAAP to Segment Adjusted EBITDA (Unaudited -- In millions) Adjusted EBITDA Third Quarter 2023 Segment Adjusted EBITDA Reconciliation Reconciliation by CCS NICS OWN ANS Home Total Operating income (loss), as reported $ 23.6 $ 43.9 $ 34.0 $ (427.1) $ (
Slide 18: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash CommScope Holding Company, Inc. Adjusted Free Cash Flow Flow Reconciliation (Unaudited -- In millions) Adjusted Free Cash Flow Q3 Q4 Q1 Q2 Q3 2022 2022 2023 2023 2023 Cash flow from operations $ (87.6) $ 386.8 $ (46.1) $ 136.8 $ 138.8 Capital expenditures (23.6) (22.6) (14.4) (20.
Slide 19: Adjusted Gross Profit and Adjusted Operating Expense Reconciliations
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 Gross profit, as reported $ Q3 2022 736.3 $ Q4 2022 748.3 $ Q1 2023 691.7 $ Q2 2023 617.2 $ Q3 2023 546.
Slide 20: Outlook Core Segment Adjusted EBITDA and Adjusted 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 Outlook Range Segment Adjusted Core segment operating income (1) $ 25 2023 $ 55 EBITDA and Adjusted Adjustments: Amortization of purchase
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