Vistance Networks, Inc. · NASDAQ:VISN
Vistance Networks — CommScope Holding Company — Q3 2021 Earnings Presentation
24 slides from Vistance Networks's earnings presentation, Nov 4, 2021
Slide 1: Third Quarter 2021 Results
November 4, 2021 Third Quarter 2021 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
Third quarter highlights Core CommScope Broadband Networks, Venue and Campus Networks, Home Networks Outdoor Wireless Networks • Semiconductor shortage continues • Broadband Networks to impact ability to serve demand Continued cabling and connectivity growth; cable network • Large and growing backlo
Slide 4: Consolidated CommScope and Core CommScope results
Consolidated CommScope Core CommScope (1) (In $millions, except per share amounts) (In $millions) 3Q’20 3Q’21 Y/Y Change 3Q’20 3Q’21 Y/Y Change Results Results Results Results Net Sales (2) $2,168 $2,105 -3% Net Sales (2) $1,595 $1,690 +6% Adj. EBITDA(3) $342 $259 -24% Adj. EBITDA(3) $312 $275 -12%
Slide 5: Supply chain Impacts
Supply chain Impacts Global Rise in freight rates & Commodity semiconductor lane congestion inflation (copper, chip shortage resins, steel, etc.) Net Sales Impact Inflation and Freight Impact • Semiconductor and other component shortages estimated • Higher input costs (copper, resins, steel, etc.) a
Slide 6: Broadband Networks
Broadband Networks Financial Highlights Business Business Highlights Highlights Net Sales (1) ($M) • Net sales declines primarily driven by • Continued strength in order entry and growing backlog North America and Asia Pacific regions 3Q'20 $811 • Growing operator interest and deployment of next-gen
Slide 7: Venue and Campus Networks
Venue and Campus Networks Financial Highlights Business Highlights Net Sales (1) ($M) • Net sales growth across all regions • Copper and Fiber growth fueled by normalizing • Growth driven by indoor copper and fiber infrastructure spend, government stimulus projects, and 3Q'20 $512 price increases 3Q
Slide 8: Outdoor Wireless Networks
Outdoor Wireless Networks Financial Highlights Business Highlights Net Sales ($M) • Net sales growth across all regions • North America 5G activity beginning to ramp; focus except Caribbean and Latin America remains on site preparation 3Q'20 $272 • Growth driven by Macro Tower Solutions • Strong bac
Slide 9: Home Networks
Home Networks Financial Highlights Business Highlights Net Sales (1) ($M) • Net sales declines across all regions • Planned spin-off progressing; on track to complete spin-off except Asia Pacific during second quarter 2022 3Q'20 $574 • Declines in both video and broadband gateways • Growing backlog
Slide 10: Cash flow update
Cash flow update GAAP Cash Flow from Operations ($M) Adj. Free Cash Flow(1) ($M) $192 $198 $172 $176 $98 $65 $64 $67 $(124) $(135) 3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 • Third quarter working capital impacted by higher inventory related to strong order flow and supply chain di
Slide 11: Strong liquidity & balance sheet management
Strong liquidity & balance sheet management Debt Maturities (as of 09/30/2021) ($ millions) Cash & liquidity remain strong Secured Debt Unsecured Debt • Ended the quarter with available liquidity of ABL 6.00% Notes due 2025 ~$1.1 billion Term Loan B 5.00% Notes due 2027 6.00% Notes due 2026 8.25% No
Slide 12: Announcing Virtual Strategic Transformation Update
Announcing Virtual Strategic Transformation Update CommScope NEXT Update Announcing Virtual Strategic Transformation update on December 14, 2021 at 8:30 AM ET 11 © 2021 CommScope, Inc. All rights reserved. | CommScope, ARRIS and the ARRIS logo are trademarks of CommScope, Inc. and/or its affiliates.
Slide 13: Q&A
Q&A Third Quarter 2021 Results
Slide 14: Appendix
COMMSCOPE’ Appendix
Slide 15: 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 2021 September 30, 2020 2021 September 30, 2020 Operations Net sales Cost of sales Gross profit $ 2,105.3 1,452.3 65
Slide 16: Condensed Consolidated Balance Sheets
CommScope Holding Company, Inc. Condensed Consolidated Balance Sheets (In millions, except share amounts) Unaudited September 30, 2021 December 31, 2020 Balance Sheets Cash and cash equivalents Assets Accounts receivable, less allowance for doubtful accounts of $ 411.5 $ 521.9 $45.6 and $40.3, respe
Slide 17: 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 September 30, September 30, Statements of Cash Operating Activities: Net loss $ 2021 (124.2) 2020 $ (116.3) $ 2021 (375.6) $ 2020 (597.3) Flows Adjustments
Slide 18: 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 Nine Months Ended Ended Adjusted EBITDA and Net loss, as reported September 30, 2021 $ (124.2) 2020 $ (116.3) September 30, 2021 $ (375.6) 2
Slide 19: Sales by Region
Sales by Region CommScope Holding Company, Inc. Sales by Region (Unaudited -- In millions) Sales by Region % Change Q3 2021 Q3 2020 YOY United States $ 1,201.8 $ 1,318.2 (8.8) % Europe, Middle East and Africa 418.8 407.3 2.8 Asia Pacific 228.4 219.1 4.2 Caribbean and Latin America 156.2 149.9 4.2 Ca
Slide 20: Sales and Adjusted EBITDA by Segment
CommScope Holding Company, Inc. Segment Information Sales and Adjusted (Unaudited -- In millions) EBITDA by Segment Segment Net Sales Q3 2021 Q3 2020 % Change YOY Broadband $ 779.7 $ 811.0 (3.9) % Outdoor Wireless 355.6 271.8 30.8 Venue and Campus 554.9 511.8 8.4 (1) Core net sales 1,690.2 1,594.6 6
Slide 21: Adjusted EBITDA Reconciliation by Segment
CommScope Holding Company, Inc. Reconciliation of GAAP to Segment Adjusted EBITDA (Unaudited -- In millions) Third Quarter 2021 Segment Adjusted EBITDA Reconciliation Adjusted EBITDA Broadband Outdoor Wireless Venue and Campus Home Total Reconciliation by Operating income (loss), as reported $ 50.8
Slide 22: 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 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Cash flow from operations $ 172.2 $ 97.7 $ (124.0) $ 191.6 $ 67.1 Capital expenditures (25.8) (47.7) (26.4) (33.8)
Slide 23: Adjusted Gross Profit and Adjusted Operating Expense Reconciliations
CommScope Holding Company, Inc. Quarterly Adjusted Gross Profit and Adjusted Operating Expense Adjusted Gross Profit (Unaudited -- In millions) and Adjusted Operating GAAP to Non-GAAP Adjusted Gross Profit Expense Reconciliations Gross profit, as reported Q3 2020 Q4 2020 Q1 2021 Q2 2021 $ 735.5 $ 71
Slide 24: New Segment 2020 and 2019 Financial Information
New Segment Information New Segment (Unaudited -- In millions) Segment Net Sales (1) 2020 and 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Full Year 2020 Full Year 2019 Financial Information Broadband Outdoor Wireless $ 598.1 348.9 $ 660.6 328.4 $ 811.0 271.8 $ 778.2 294.8 $ 2,848.2 1,243.7 $ 2,324.0 1,475.
CommScope Holding Company — Q3 2021 Earnings Presentation on 6ix