Vistance Networks, Inc. · NASDAQ:VISN
Vistance Networks — CommScope Holding Company — Q3 2019 Earnings Presentation
24 slides from Vistance Networks's earnings presentation, Nov 7, 2019
Slide 1: Third Quarter 2019 Results
Third Quarter 2019 Results Eddie Edwards Alex Pease November 7, 2019 President & CEO EVP & CFO
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: Business Overview
Business Overview November 7, 2019 Eddie Edwards President & CEO
Slide 4: Taking Action to Maximize Profitability and Stabilize Operations
Taking Action to Maximize Profitability and Stabilize Operations Accelerating deal-related cost synergies and executing on our previously announce plans to deliver incremental non-acquisition synergies of at least $30 million in the second half of 2019 Implemented manufacturing footprint optimizatio
Slide 5: Third Quarter 2019 Highlights
Third Quarter 2019 Highlights Financial Highlights • Adjusted EBITDA of $370 million at the high end of guidance and adjusted EPS of $0.55 above the high end of guidance. • Earlier than expected Network and Cloud orders. • Mobility Solutions sales negatively impacted by ~5% due to a pause in spendin
Slide 6: Third Quarter Results and Fourth Quarter Outlook
Third Quarter Results and Fourth Quarter Outlook November 7, 2019 Alex Pease EVP & CFO
Slide 7: CommScope 3Q'19 Financial Results
CommScope 3Q’19 Financial Results Net Sales(1) ($M) Adj. EBITDA(2) ($M) Adj. EPS(2) -15% -14% -7% $0.59 $428 $0.55 $2,802 $2,380 $370 $2,380 $370 $238 $1,150 3Q'18 3Q'19 3Q'18 3Q'19 3Q'18 3Q'19 3Q'18 3Q'19 3Q'18 3Q'19 Pro forma(3) Pro forma(3) • Excluding FX, pro forma net sales decreased 14%. • Pro
Slide 8: Segment 3Q'19 Financial Results
Segment 3Q’19 Financial Results Connectivity Solutions Mobility Solutions Net Sales ($M) Adj. EBITDA(1) ($M) Net Sales ($M) Adj. EBITDA(1) ($M) -13% -25% -3% +8% $732 $635 $161 $406 $83 $419 $77 $121 3Q'18 3Q'19 3Q'18 3Q'19 3Q'18 3Q'19 3Q'18 3Q'19 • Excluding FX, sales declined 12%. • Adj. EBITDA de
Slide 9: Segment 3Q'19 Financial Results
Segment 3Q’19 Financial Results Customer Premises Equipment Network and Cloud Ruckus Networks Net Sales(1) ($M) Adj. EBITDA(2) ($M) Net Sales(1) ($M) Adj. EBITDA(2) ($M) Net Sales(1) ($M) Adj. EBITDA(2) ($M) -12% +55% -29% -31% -23% -19% $830 $942 $532 $138 $178 $826 $60 $377 $137 $13 $39 $95 $95 $1
Slide 10: Cash Flow Update
Cash Flow Update Cash Flow from Operations ($M) Adj. Free Cash Flow(1) ($M) $522 $590 $393 $535 $2 $(10) $(251) $(67) 1Q’19 2Q’19 3Q’19 3Q’19 TTM 1Q’19 2Q’19 3Q’19 3Q’19 TTM • Sequential growth in cash flow from operations primarily due to an improvement in the cash conversion cycle driven by lower
Slide 11: Capital Structure Update
Capital Structure Debt Maturities ($M) as of 9/30/2019 Update $1,500* Net Leverage • 9/30/19 CommScope net leverage: 6.1x(1) • Long-term target: 2.0x-3.0x $1,000* $3,200* Covenant “Lite” Debt Facilities Additional $200 million $650 redeemed October 2019 $750 • No maintenance covenants • Incurrence c
Slide 12: 4Q'19 Guidance
4Q’19 Guidance CommScope 4Q’19 Guidance Committed to delivering Sales $2.2 billion - $2.4 billion shareholder value Non-GAAP Adj. EBITDA $275 million - $335 million With industry-leading products, strong customer relationships and talented team, our potential to lead the Non-GAAP Adj. Effective 27%
Slide 13: Fourth Quarter Segment Outlook Commentary
Fourth Quarter Segment Outlook Commentary Connectivity Customer Premise Equipment • Expect Connectivity sales to follow its normal seasonal • Expects CPE sales to modestly decline sequentially. pattern and decline sequentially for the quarter. • Commodity cost improvements to drive improving earning
Slide 14: Appendix
COMMSCOPE’ Appendix
Slide 15: Statement of Operations
Statement of Operations 14 © 2019 CommScope, Inc. All rights reserved. | CommScope, ARRIS and the ARRIS logo are trademarks of CommScope, Inc. and/or its affiliates. All other trademarks are the property of their respective owners.
Slide 16: Balance Sheet
Balance Sheet 15 © 2019 CommScope, Inc. All rights reserved. | CommScope, ARRIS and the ARRIS logo are trademarks of CommScope, Inc. and/or its affiliates. All other trademarks are the property of their respective owners.
Slide 17: Statement of Cash Flows
Statement of Cash Flows 16 © 2019 CommScope, Inc. All rights reserved. | CommScope, ARRIS and the ARRIS logo are trademarks of CommScope, Inc. and/or its affiliates. All other trademarks are the property of their respective owners.
Slide 18: Adjusted Operating Income, EBITDA, and Net Income Reconciliation
Adjusted Operating Income, EBITDA, and Net Income Reconciliation 17 © 2019 CommScope, Inc. All rights reserved. | CommScope, ARRIS and the ARRIS logo are trademarks of CommScope, Inc. and/or its affiliates. All other trademarks are the property of their respective owners.
Slide 19: Sales by Region
Sales by Region 18 © 2019 CommScope, Inc. All rights reserved. | CommScope, ARRIS and the ARRIS logo are trademarks of CommScope, Inc. and/or its affiliates. All other trademarks are the property of their respective owners.
Slide 20: Sales and Adjusted EBITDA by Segment
Sales and Adjusted EBITDA by Segment 19 © 2019 CommScope, Inc. All rights reserved. | CommScope, ARRIS and the ARRIS logo are trademarks of CommScope, Inc. and/or its affiliates. All other trademarks are the property of their respective owners.
Slide 21: Quarterly Adjusted EBITDA Reconciliation by Segment
Quarterly Adjusted EBITDA Reconciliation by Segment 20 © 2019 CommScope, Inc. All rights reserved. | CommScope, ARRIS and the ARRIS logo are trademarks of CommScope, Inc. and/or its affiliates. All other trademarks are the property of their respective owners.
Slide 22: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation 21 © 2019 CommScope, Inc. All rights reserved. | CommScope, ARRIS and the ARRIS logo are trademarks of CommScope, Inc. and/or its affiliates. All other trademarks are the property of their respective owners.
Slide 23: Non-GAAP Pro Forma Adjusted EBITDA Reconciliation
CommScope Holding Company, Inc. Reconciliation of Non-GAAP Measures (unaudited – in millions) Non-GAAP Pro Forma Adjusted EBITDA Reconciliation (1) Primarily reflects transaction and integration costs related to the ARRIS acquisition in 2019 and BNS acquisition integration costs in 2018. (2) Reflect
Slide 24: Outlook GAAP to Non-GAAP Reconciliation
CommScope Holding Company, Inc. Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures (Unaudited -- In millions, except per share amounts) Outlook Outlook GAAP to Three Months Ended December 30, Non-GAAP 2019 Operating income $55 - $92 Adjustments: Reconciliation Amortization of purchased in
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