Vistance Networks, Inc. · NASDAQ:VISN
Vistance Networks — CommScope Holding Company — Q1 2021 Earnings Presentation
26 slides from Vistance Networks's earnings presentation, May 6, 2021
Slide 1: First Quarter 2021 Results
May 6, 2021 First 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: CEO quote on CommScope NEXT strategy
“We continue to take action to position CommScope for success as we execute on our CommScope NEXT strategy to optimize the business portfolio, drive above-market growth, and control costs.” Chuck Treadway President and Chief Executive Officer © 2021 CommScope, Inc. All rights reserved. | CommScope,
Slide 4: Core CommScope and Home Networks highlights
Core CommScope Broadband Networks, Outdoor Wireless Networks, Venue and Campus Networks • Momentum in Broadband Networks continues – strength in node splitting, fiber cabling and connectivity; investing for future growth • Outdoor Wireless – in-line with expectations; North American carriers expecte
Slide 5: CommScope NEXT
CommScope NEXT Driving growth that outpaces the market and optimizing business processes Executing our Strategy to Unlock Shareholder Value Profitable Cost Portfolio Growth Efficiency Optimization Double down on growth by Laser focus on efficiency; eliminate Evaluate health of full portfolio and all
Slide 6: CommScope NEXT: at least $500 million adjusted EBITDA
CommScope NEXT Expect to generate at least $500 million in non-GAAP adjusted EBITDA 50% generated from growth • Investing in capacity constraints where demand exists - fiber & connectivity • Enhancing our focus on strategic verticals & key accounts • Leveraging and investing in innovative technology
Slide 7: CFO quote on momentum
“With our optimized business portfolio, we expect to continue to build on the momentum we have seen so far this year.” Alex Pease EVP and Chief Financial Officer © 2021 CommScope, Inc. All rights reserved. | CommScope, ARRIS and the ARRIS logo are trademarks of CommScope, Inc. and/or its affiliates.
Slide 8: Consolidated and Core CommScope results
Core CommScope Consolidated CommScope Core CommScope (1) (In $millions, except per share amounts) (In $millions) 1Q’20 1Q’21 Y/Y Change 1Q’20 1Q’21 Y/Y Change Results Results Results Results Net Sales (2) $2,033 $2,072 +2% Net Sales (2) $1,432 $1,583 +11% Adj. EBITDA(3) $231 $290 +25% Adj. EBITDA(3)
Slide 9: Broadband Networks
Broadband Networks Financial Highlights Business Business Highlights Highlights Net Sales (1) ($M) • Net sales growth in all regions except • Cabling and hardened connectivity strength as operators Europe drive “fiber deeper”; continuing to invest in additional 1Q'20 $613 capacity to meet growing de
Slide 10: Venue and Campus Networks
Venue and Campus Networks Financial Highlights Business Highlights Net Sales (1) ($M) • Net sales declines across North America, • Strong RUCKUS growth – strength in cloud software, Wi-Fi offset by growth in China, Caribbean and and switching 1Q'20 $470 Latin America and Europe • Strong growth in RU
Slide 11: Outdoor Wireless Networks
Outdoor Wireless Networks Financial Highlights Business Highlights Net Sales ($M) • Net sales declines primarily driven by • T-Mobile growth continues with deployment of North America and Middle East and 600MHz and 2.5GHz spectrum 1Q'20 $349 Africa. Partial offset by growth in Asia Pacific and Europ
Slide 12: Home Networks
Home Networks Financial Highlights Business Highlights Net Sales (1) ($M) • Net sales declines across all regions • Planned spin-off progressing; running on schedule except Caribbean and Latin America and 1Q'20 $601 Middle East and Africa • Over 2x historical backlog; global silicon shortage remains
Slide 13: Cash flow update
Cash flow update GAAP Cash Flow from Operations ($M) Adj. Free Cash Flow(1) ($M) $209 $172 $217 $176 $98 $65 ($43) ($43) ($124) ($135) 1Q’20 2Q’20 3Q’20 4Q’20 1Q’21 1Q’20 2Q’20 3Q’20 4Q’20 1Q’21 • Seasonally weak first quarter, as expected • First quarter working capital was net usage of cash, prima
Slide 14: Strong liquidity & de-risked capital structure
Strong liquidity & de-risked capital structure Debt Maturities (as of 03/31/2021) Proactive balance sheet management provides runway before next significant debt maturities ($ millions) Secured Debt Unsecured Debt • Since close of ARRIS acquisition, CommScope has ABL 6.00% Notes due 2025 repaid over
Slide 15: Demand outlook for end markets
Demand outlook for end markets of Core CommScope & Home Networks Evolving technology trends are expected to provide mostly favorable tailwinds Demand Market Key 2021 Business Drivers Outlook Continued operator Broadband network investment; RDOF expected to fund fiber Footprint expansion, demand for
Slide 16: Q&A
Q&A First Quarter 2021 Results © 2021 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: Appendix
COMMSCOPE’ Appendix
Slide 18: Statements of Operations
CommScope Holding Company, Inc. Condensed Consolidated Statements of Operations (Unaudited -- In millions, except per share amounts) Thre e Months Ende d Statements of 2021 March 31, 2020 Operations Net sales Cost of sales Gross profit $ 2,072.0 1,399.8 672.2 $ 2,033.2 1,392.0 641.2 Operating expens
Slide 19: Balance Sheets
CommScope Holding Company, Inc. Condensed Consolidated Balance Sheets (In millions, except share amounts) Unaudited March 31, 2021 December 31, 2020 Assets Balance Sheets Cash and cash equivalents Accounts receivable, less allowance for doubtful accounts of $ 325.9 $ 521.9 $32.1 and $40.3, respectiv
Slide 20: Statements of Cash Flows
CommScope Holding Company, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited -- In millions) Statements of Cash Thre e Months Ende d 2021 March 31, 2020 Flows Operating Activities: Net loss $ (97.6) $ (159.9) Adjustments to reconcile net loss to net cash used in operating activities: D
Slide 21: 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 Adjusted EBITDA and 2021 March 31, 2020 Adjusted Net Income Net income (loss), as reported $ (97.6) $ (159.9) Income tax benefit, as r
Slide 22: Sales by Region
CommScope Holding Company, Inc. Sales by Region Sales by Region (Unaudited -- In millions) Sales by Region % Change Q1 2021 Q1 2020 YOY United States $ 1,191.9 $ 1,220.5 (2.3) % Europe, Middle East and Africa 385.7 395.1 (2.4) Asia Pacific 225.4 177.5 27.0 Caribbean and Latin America 192.1 158.4 21.
Slide 23: 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 Q1 2021 Q1 2020 YOY Broadband $ 790.7 $ 613.4 28.9 % Outdoor Wireless 322.5 348.9 (7.6) Venue and Campus 469.6 469.5 — Core net sales (1) 1,582.8 1,431.8 10.
Slide 24: Adjusted EBITDA Reconciliation by Segment
CommScope Holding Company, Inc. Reconciliation of GAAP to Segment Adjusted EBITDA Adjusted EBITDA (Unaudited -- In millions) Reconciliation by First Quarter 2021 Segment Adjusted EBITDA Reconciliation Outdoor Venue and Segment Operating income (loss), as reported Broadband $ 57.3 $ Wireless 51.3 $ C
Slide 25: Adjusted Free Cash Flow Reconciliation
CommScope Holding Company, Inc. Adjusted Free Cash Adjusted Free Cash Flow (Unaudited -- In millions) Flow Reconciliation Adjusted Free Cash Flow Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Cash flow from operations $ (42.7) $ 209.1 $ 172.2 $ 97.7 $ (124.0) Capital expenditures (23.9) (23.8) (25.8) (47.
Slide 26: 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) GAAP to Non-GAAP Adjusted Gross Profit and Adjusted Operating Expense Reconciliations Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Gross profit, as reported $ 64
CommScope Holding Company — Q1 2021 Earnings Presentation on 6ix