Vistance Networks, Inc. · NASDAQ:VISN
Vistance Networks — CommScope Holding Company — Q2 2024 Earnings Presentation
21 slides from Vistance Networks's earnings presentation, Aug 8, 2024
Slide 1: Second Quarter 2024 Results
August 8, 2024 Second Quarter 2024 Results
Slide 2: Important information
Important information Caution Regarding Forward Looking Statements This presentation includes certain statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amende
Slide 3: Second quarter results
Second quarter results(1) • Lower Net Sales driven by lower market demand and customer inventory corrections – Core(2) net sales of $1.05 billion, declining 17% from prior year; Consolidated CommScope net sales of $1.39 billion, declining 13% from prior year • Core revenue improved by 17% sequential
Slide 4: Second quarter results
Second quarter results (1) Consolidated CommScope Core CommScope(2) (In $millions, except per share amounts) (In $millions) 2Q’23 2Q’24 Y/Y Change 2Q’23 2Q’24 Y/Y Change Results Results Results Results Net Sales $1,589 $1,387 -13% Net Sales $1,269 $1,054 -17% Adj. EBITDA(3) $253 $302 +20% Adj. EBITD
Slide 5: Second quarter Core business highlights
Second quarter Core business highlights Business Segment Net Sales ($M) Y-Y% Adj. EBITDA(1) ($M) Y-Y% Observations 2Q’23 2Q’24 2Q’23 2Q’24 • Higher YoY revenue driven by cloud and hyperscale solutions due to GenAI projects • Sequential revenue growth of 20% Connectivity and CCS +5% +107% • Customer
Slide 6: Cash flow update
Cash flow update (1) GAAP Cash Flow from Operations ($M) Adj. Free Cash Flow(2) ($M) $137 $139 $149 $182 $92 $60 $51 $69 ($178) ($154) 2Q’23 3Q’23 4Q’23 1Q’24 2Q’24 2Q’23 3Q’23 4Q’23 1Q’24 2Q’24 • Year over year decrease driven by increased working capital needs. • 2024 Adjusted free cash flow expec
Slide 7: Strong liquidity & balance sheet management
Strong liquidity & balance sheet management Debt Maturities (as of 6/30/24) Cash & liquidity remain strong ($ millions) • Ended the quarter with available Secured Debt Unsecured Debt liquidity over $880 million ◼ ABL ◼ 6.00% Notes due 2025 (2) $1,500 • No outstanding ABL revolver draws ◼ Term Loan B
Slide 8: Closing Remarks
Closing Remarks Chuck Treadway President and Chief Executive Officer 7 © 2024 CommScope, LLC. All rights reserved. | CommScope, ARRIS and t he ARRIS l ogo are trademarks of CommScope, Inc. and/or its affiliates. All other trademarks are t he property of thei r respective owners.
Slide 9: Q&A Second Quarter 2024 Results
Q&A Second Quarter 2024 Results 8 © 2024 CommScope, LLC. All rights reserved. | CommScope, ARRIS and t he ARRIS l ogo are trademarks of CommScope, Inc. and/or its affiliates. All other trademarks are t he property of thei r respective owners.
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 Six Months Ended June 30, June 30, 2024 2023 2024 2023 Statements of Net sales Cost of sales Gross profit $ 1,386.9 839.3 547.6 $ 1,588.8 1,019.9 56
Slide 12: Condensed Consolidated Balance Sheets
CommScope Holding Company, Inc. Condensed Consolidated Balance Sheets (In millions, except share amounts) Unaudited June 30, 2024 December 31, 2023 Balance Sheets Assets Cash and cash equivalents $ 345.9 $ 543.8 Accounts receivable, net of allowance for doubtful accounts of $23.4 and $32.2, respecti
Slide 13: Condensed Consolidated Statements of Cash Flows
CommScope Holding Company, Inc. Condensed Consolidated Statements of Cash Flows (1) (Unaudited -- In millions) Three Months Ended Six Months Ended Statements of Operating Activities: 2024 June 30, 2023 2024 June 30, 2023 Cash Flows Net income (loss) Adjustments to reconcile net income (loss) to net
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) Adjusted EBITDA and Three Months Ended 2024 June 30, 2023 S ix Months Ended 2024 June 30, 2023 Adjusted Net Income Income (loss) from continuing operatio
Slide 15: Sales by Region
Sales by Region CommScope Holding Company, Inc. Sales by Region (Unaudited -- In millions) Sales by Region % Change Q2 2024 Q2 2023 YOY United States $ 889.0 $ 996.7 (10.8) % Europe, Middle East and Africa 223.4 282.4 (20.9) Asia Pacific 168.3 173.2 (2.8) Caribbean and Latin America 58.8 99.3 (40.8)
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 Q2 2024 Q2 2023 YOY CCS $ 728.4 $ 697.0 4.5 % NICS (excluding DAS) 132.4 236.8 (44.1) ANS 192.8 335.4 (42.5) (1) Core net sales 1,053.6 1,269.2 (17.0) OWN 25
Slide 17: Adjusted EBITDA Reconciliation by Segment
CommScope Holding Company, Inc. Reconciliation of GAAP to Segment Adjusted EBITDA (Unaudited -- In millions) Adjusted EBITDA Second Quarter 2024 Segment Adjusted EBITDA Reconciliation NICS Reconciliation by Operating income (loss), as reported Amortization of purchased intangible assets $ CCS 130.6
Slide 18: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation CommScope Holding Company, Inc. Adjusted Free Cash Flow (Unaudited -- In millions) Adjusted Free Cash Flow Q2 Q3 Q4 Q1 Q2 2023 2023 2023 2024 2024 Cash flow from operations $ 136.8 $ 138.8 $ 60.4 $ (177.7) $ 50.8 Capital expenditures (20.8) (8.7) (9.4) (6.0) (5
Slide 19: Adjusted Gross Profit and Adjusted Operating Expense Reconciliations
CommScope Holding Company, Inc. 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 Q2 2023 Q3 2023 Q4 2023 Q1 2024 $ 568.8 $ 501.0 $ 448.
Slide 20: Adjusted EBITDA Outlook Reconciliation
CommScope Holding Company, Inc. Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures (Unaudited -- In millions) Adjusted EBITDA Consolidated Adjusted EBITDA Outlook Reconciliation Outlook Reconciliation Outlook Range 2024 Operating income $ 530 $ 618 Adjustments: Amortization of purchased i
Slide 21: Adjusted Free Cash Flow Outlook Reconciliation
Adjusted Free Cash Flow Outlook Reconciliation Adjusted Free Cash Flow Outlook Range 2024 Cash flow from operations $ (70) $ (30) Capital expenditures (25) (35) Free cash flow (95) (65) Cash paid for restructuring, transaction, transformation and integration costs 70 90 Adjusted free cash flow $ (25
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