Maxlinear, Inc · NASDAQ:MXL
Maxlinear — Debt Investor Presentation (June 2021)
34 slides from Maxlinear's debt investor presentation, Jun 4, 2021
Slide 1: Lender Presentation
STRICTLY CONFIDENTIAL Lender Presentation June 4, 2021
Slide 2: Notice To and Undertaking By Recipients
STRICTLY CONFIDENTIAL 2 Notice To and Undertaking By Recipients This presentation (the "Lender Presentation"; and together with any other information regarding the Company or the Facilities (a s defined below) (whether prepared or communicated by the Company or the Arranger or their respective advis
Slide 3: Notice To and Undertaking By Recipients (Cont.)
STRICTLY CONFIDENTIAL 3 Notice To and Undertaking By Recipients (Cont.) The Evaluation Material has been prepared to assist interested parties in making their own evaluation of the Company and the Fac ilities and does not purport to be all - inclusive or to contain all of the information that a pros
Slide 4: Disclaimer: Forward-Looking Statements
STRICTLY CONFIDENTIAL 4 Disclaimer Forward - Looking Statements This presentation contains forward - looking statements within the meaning of Section 27A of the Securities Act of 1933, as amende d, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward - looking statements inclu
Slide 5: Agenda
STRICTLY CONFIDENTIAL 5 Agenda I Transaction Overview III End - Market Overview IV Financial Summary V Appendix II Company Overview and Credit Highlights
Slide 6: Transaction Overview
STRICTLY CONFIDENTIAL Transaction Overview
Slide 7: Summary Transaction Overview
STRICTLY CONFIDENTIAL STRICTLY CONFIDENTIAL 7 Summary Transaction Overview ▪ MaxLinear, Inc. (“MXL” or the “Company”) is seeking to issue a $350 million Term Loan B due 2028 to refinance its existing Term Loan A due 2023 and Term Loan B due 2024 ▪ The Company also intends to establish a new $100 mil
Slide 8: Company Overview and Credit Highlights
STRICTLY CONFIDENTIAL Company Overview and Credit Highlights
Slide 9: MaxLinear at a Glance
STRICTLY CONFIDENTIAL STRICTLY CONFIDENTIAL 9 51% 16% 18% 15% Broadband Infrastructure Industrial and Multi-Market Connectivity MaxLinear at a Glance BROAD PRODUCT PORTFOLIO SPANNING KEY GROWTH MARKETS Pioneer of Semiconductor Solutions for the 5G, Data Center, and Connectivity Markets (1) As of FY2
Slide 10: Key Credit Highlights
STRICTLY CONFIDENTIAL 10 Key Credit Highlights LEADING TECHNOLOGY POSITION IN LARGE AND GROWING MARKETS ($8B+ S AM) Substantial IP Portfolio driving growth across Broadband, Connectivity, Infrastructure, and Industrial Markets 1 SCALABLE OPERATING MODEL DRIVING EXPANDING MARGINS AND CASH FLOW Best -
Slide 11: Exploding Data & Traffic Demand
STRICTLY CONFIDENTIAL 11 Exploding Data & Traffic Demand Fatter & Faster Data Pipes Hyperscale Data Centers & Big Data Wireless Access, Backhaul, and CRAN Optical High Speed Data Network Internet - of - Things OTT Video Streaming and Ultra HD Content
Slide 12: We Solve Communication Network Bottlenecks
STRICTLY CONFIDENTIAL 12 We Solve Communication Network Bottlenecks Data Center Data Center
Slide 13: End-to-End Communication Network Solutions
STRICTLY CONFIDENTIAL 13 With End - to - End Communication Network Solutions Broadband Virtualized Headend Transport Network RRH Fronthaul Fiber Microwave Backhaul Radio Cable Fiber Node Connected Home Data Center COAX Baseband Unit C - RAN Products Spanning 5G, Data Center, Networking and Home Conn
Slide 14: Our Core Technology Scales Across Multiple End-Markets
STRICTLY CONFIDENTIAL 14 Our Core Technology Scales Across Multiple End - Markets High Growth Connectivity Moderate Growth Industrial / Multi - Market MoCA/G.hn Interface Infrastructure High Growth PAM4 DSPs Broadband Gateway SoCs Growth Transceivers / Modems RF Front - End Ethernet PHY WiFi 6/6E Po
Slide 15: Large and Growing Addressable Markets
STRICTLY CONFIDENTIAL 15 Large and Growing Addressable Markets SAM 2x by 2022 driven by organic growth and strategic acquisitions Source: All data based on a combination of industry research reports and Company management estimates $0.4 $2.1 $1.2 $2.2 $0.5 $2.0 $1.8 $2.1 $- $1.0 $2.0 $3.0 $4.0 $5.0
Slide 16: Strong Track Record of M&A Execution and Integration
STRICTLY CONFIDENTIAL 16 Strong Track Record of M&A Execution and Integration Extensive Track Record of Disciplined Acquisitions and Successful Integrations Driving Growth and Diversification for the Overall Portfolio $21M – Ghn Assets $11MM 2014 2015 $287MM $21MM – Broadband Wireless division 2016
Slide 17: Diversifying Our End-Market Portfolio & Customer Base
STRICTLY CONFIDENTIAL 17 89% 10% 1 % FY2016 Diversifying Our End - Market Portfolio & Customer Base FY2018 Industrial and Multi - Market 51% 16% 18% 15% FY2020 54% 21% 25% Infrastructure Infrastructure Industrial and Multi - Market Infrastructure Industrial and Multi - Market Broadband Broadband Con
Slide 18: Top Tier Financial Model
STRICTLY CONFIDENTIAL 18 59% 35% 49% 51% 51% 55% 59% 59% 62% MaxLinear ON Semi Power Integrations Cirrus Logic Allegro Synaptics Silicon Labs MACOM Semtech 24% 13% 14% 19% 20% 24% 26% 28% 29% MaxLinear ON Semi Cirrus Logic Silicon Labs Allegro Semtech Synaptics MACOM Power Integrations Top Tier Fina
Slide 19: Track Record of Cash Flow Generation and Rapid Deleveraging
STRICTLY CONFIDENTIAL 19 Track Record of Cash Flow Generation and Rapid Deleveraging $0 $425 $375 $355 $330 $312 $277 $262 $247 $232 $212 $212 $212 $212 $387 $370 $350 Q1 17' Q2 17' Q3 17' Q4 17' Q1 18' Q2 18' Q3 18' Q4 18' Q1 19' Q2 19' Q3 19' Q4 19' Q1 20' Q2 20' Q3 20' Q4 20' Q1 21' Exar Acquisit
Slide 20: End-Market Overview
STRICTLY CONFIDENTIAL End - Market Overview
Slide 21: Infrastructure
STRICTLY CONFIDENTIAL 21 Infrastructure Enabling bandwidth expansion and 5G build - out Base Station / RRH Microwave & mm - Wave Backhaul & Fronthaul Data Center Optical Fiber Optical Metro/Long Haul Fiber High Growth and Highly Profitable Technology Leadership in Key Product Areas Significant TAM o
Slide 22: Broadband
STRICTLY CONFIDENTIAL 22 Broadband Portfolio enables bandwidth expansion into and throughout the home Broadband Gateways Cable RF Front - Ends Satellite Video Gateways & ODUs Market leader in Cable with growth expansion opportunities across Copper, Fiber, and FWA Well positioned to benefit from incr
Slide 23: Connectivity
STRICTLY CONFIDENTIAL 23 Connectivity Solutions that deliver up to 10Gbps throughout the home Wi - Fi G.hn and MoCA Ethernet Connectivity offering drives substantial increase in content per platform Market share gain opportunity fueled by end - to - end solution across broadband and connectivity Wel
Slide 24: Industrial & Multi-Market
STRICTLY CONFIDENTIAL 24 Industrial & Multi - Market Broad portfolio across power, analog, and interface Point - of Sale Audio/Video Equipment Building/Factory Automation Single - Board - Computer Industrial Process Control
Slide 25: Financial Summary
STRICTLY CONFIDENTIAL Financial Summary
Slide 26: Q1 2021 Earnings Highlights
STRICTLY CONFIDENTIAL STRICTLY CONFIDENTIAL 26 Q1 2021 Earnings Highlights Increasing Revenue Scale (1) Guidance ($ in Millions) Q1 2021 Guidance Q1 2021 Actual Q2 2021 Guidance Revenue $200-$210 $209.4 $200-$210 Non-GAAP Gross Margin 57.5%-59.5% 58.6% 58.0%-60.0% Non-GAAP Operating Expense $72-$76
Slide 27: Historical Financials
STRICTLY CONFIDENTIAL 27 $99 $75 $118 $158 FY2018A FY2019A FY2020A PF Adj. LTM Q1'21 Historical Financials Revenue (1) ($ in Millions) Free Cash Flow (2) Debt $385 $317 $479 $626 FY2018A FY2019A FY2020A LTM 3/31/2021 $262 $212 $370 $350 FY2018A FY2019A FY2020A LTM 3/31/2021 (1) LTM revenue figure ba
Slide 28: Historical Financials (Cont.)
STRICTLY CONFIDENTIAL 28 Historical Financials (Cont.) Leverage (1) Net Leverage (1) Free Cash Flow (2) / Debt 2.5x 2.6x 2.8x 2.0x FY2018A FY2019A FY2020A LTM 3/31/2021 1.8x 1.4x 2.2x 1.1x FY2018A FY2019A FY2020A LTM 3/31/2021 38% 36% 23% 45% FY2018A FY2019A FY2020A LTM 3/31/2021 (1) Leverage / cove
Slide 29: Key Credit Highlights
STRICTLY CONFIDENTIAL 29 Key Credit Highlights LEADING TECHNOLOGY POSITION IN LARGE AND GROWING MARKETS ($8B+ S AM) Substantial IP Portfolio driving growth across Broadband, Connectivity, Infrastructure, and Industrial Markets 1 SCALABLE OPERATING MODEL DRIVING EXPANDING MARGINS AND CASH FLOW Best -
Slide 30: Appendix
STRICTLY CONFIDENTIAL Appendix
Slide 31: Conservative Leverage Profile with Ample Liquidity
STRICTLY CONFIDENTIAL 31 Conservative Leverage Profile with Ample Liquidity ▪ Modest and conservative leverage profile with gross leverage of 2.0x and net leverage of 1.1x ▪ Staggered debt maturities with 5+ year runway ▪ Ample liquidity to drive operations and investments ▪ Fabless model enhances f
Slide 32: GAAP to Non-GAAP Reconciliations
STRICTLY CONFIDENTIAL 32 GAAP to Non - GAAP Reconciliations Non - GAAP Gross Profit ($M) FY17 FY18 FY19 Q1'20 Q2'20 Q3'20 Q4'20 FY20 Q1'21 LTM 3/31/21 Total revenue $420 $385 $317 $62 $65 $157 $195 $479 $209 $626 GAAP gross profit $208 $209 $168 $31 $33 $66 $83 $213 $112 $294 GAAP gross profit margi
Slide 33: GAAP to Non-GAAP Reconciliations (Cont.)
STRICTLY CONFIDENTIAL 33 GAAP to Non - GAAP Reconciliations (Cont.) Non - GAAP Operating Income, Non - GAAP EBITDA & PF Adj. EBITDA ($M) FY17 FY18 FY19 Q1'20 Q2'20 Q3'20 Q4'20 FY20 Q1'21 LTM 3/31/21 GAAP operating income/(loss) ($22) ($19) ($22) ($20) ($23) ($35) ($24) ($101) $10 ($71) Share-based c
Slide 34: Thank You
STRICTLY CONFIDENTIAL Thank You