Slide 1: Third Quarter 2022 Results
November 3, 2022 Third Quarter 2022 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 key takeaways
• Strong top-line growth – Core(1) net sales of $1.99 billion, growing 18% from prior year; Consolidated CommScope net sales of $2.38 billion, growing 13% from prior year • Adjusted EBITDA – Core(1) adjusted EBITDA of $353 million(2) and Consolidated CommScope adjusted EBITDA of $348 million(2) • Ma
Slide 4: Third quarter highlights & priorities
Third quarter highlights & priorities Sequential Core(1) COMM CommScope NEXT Priorities Improvement • Continued price recovery to offset inflation (In $ millions) 3Q’22 2Q’22 QoQ • Focus on driving organic growth, including investing in Net Sales $1,990 $1,876 +6% innovation and additional capacity
Slide 5: Delivered strongest Core net sales and Core adjusted EBITDA
Consolidated CommScope Core CommScope(1) (In $millions, except per share amounts) (In $millions) 3Q’21 3Q’22 Y/Y Change 3Q’21 3Q’22 Y/Y Change Results Results Results Results Net Sales $2,105 $2,381 +13% Net Sales $1,690 $1,990 +18% Adj. EBITDA(2) $259 $348 +34% Adj. EBITDA(2) $275 $353 +29% Adj. EB
Slide 6: Third quarter segment highlights
Third quarter segment highlights Business Segment Net Sales ($M) Y-Y% Adj. EBITDA(1) ($M) Y-Y% Observations 3Q’21 3Q’22 3Q’21 3Q’22 • Strong fiber and connectivity demand • Capacity and price drove top-line growth Connectivity and • Price, growth and efficiency helped return margins in-line with CCS
Slide 7: Cash flow update
Cash flow update GAAP Cash Flow from Operations ($M) Adj. Free Cash Flow(1) ($M) $67 $64 $(12) $(15) ($27) ($24) ($95) ($88) ($91) ($91) 3Q’21 4Q’21 1Q’22 2Q’22 3Q’22 3Q’21 4Q’21 1Q’22 2Q’22 3Q’22 • Third quarter working capital impacted by top-line growth and payables timing. Inventory remains elev
Slide 8: Strong liquidity & balance sheet management
Strong liquidity & balance sheet management Debt Maturities (as of 9/30/22) Cash & liquidity remain strong • Ended the quarter with available ($ millions) liquidity of ~$925 million Secured Debt Unsecured Debt • $105 million outstanding in ABL ◼ ABL ◼ 6.00% Notes due 2025 revolver draws as of 9/30/2
Slide 9: Closing Remarks
Closing Remarks Chuck Treadway President and Chief Executive Officer
Slide 10: Q&A
Q&A Third Quarter 2022 Results
Slide 11: Appendix
COMMSCOPE’ Appendix
Slide 12: Condensed Consolidated Statements of Operations
CommScope Holding Company, Inc. Condensed Consolidated Statements of Operations (Unaudited -- In millions, except per share amounts) Statements of Thre e Months Ende d Se pte mbe r 30, Nine Months Ende d Se pte mbe r 30, Operations 2022 2021 2022 2021 Net sales $ 2,381.4 $ 2,105.3 $ 6,910.2 $ 6,362.
Slide 13: Condensed Consolidated Balance Sheets
CommScope Holding Company, Inc. Condensed Consolidated Balance Sheets (In millions, except share amounts) Unaudite d Balance Sheets Se pte mbe r 30, 2022 De ce mbe r 31, 2021 Assets Cash and cash equivalents $ 145.5 $ 360.3 Accounts receivable, net of allowance for doubtful accounts of $60.9 and $63
Slide 14: 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 Statements of Operating Activities: September 30, 2022 2021 September 30, 2022 2021 Cash Flows Net income (loss) Adjustments to reconcile net income (loss)
Slide 15: 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 Three Months Nine Months Ended Ended Ended Adjusted EBITDA and Net income (loss), as reported $ June 30, 2022 (61.0) $ S eptember 30, 2022 2
Slide 16: Sales by Region
Sales by Region CommScope Holding Company, Inc. Sales by Region (Unaudited -- In millions) Sales by Region % Change % Change Q3 2022 Q2 2022 Q3 2021 S equential YOY United States $ 1,495.1 $ 1,424.3 $ 1,201.8 5.0 % 24.4 % Europe, Middle East and Africa 396.0 378.4 418.8 4.7 (5.4) Asia Pacific 210.9
Slide 17: Sales and Adjusted EBITDA by Segment
Sales and Adjusted CommScope Holding Company, Inc. Segment Information (Unaudited -- In millions) EBITDA by Segment Segment Net Sales % Change % Change Q3 2022 Q2 2022 Q3 2021 S equential YOY CCS $ 1,007.7 $ 986.7 $ 787.6 2.1 % 27.9 % NICS 257.9 205.4 207.1 25.6 24.5 OWN 382.1 390.9 357.5 (2.3) 6.9
Slide 18: Adjusted EBITDA Reconciliation by Segment
CommScope Holding Company, Inc. Reconciliation of GAAP to Segment Adjusted EBITDA (Unaudited -- In millions) Third Quarter 2022 Segment Adjusted EBITDA Reconciliation Adjusted EBITDA Operating income (loss), as reported Amortization of purchased intangible assets CCS $ 143.2 24.1 $ NICS 1.2 14.7 OWN
Slide 19: 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 Q3 Q4 Q1 Q2 Q3 2021 2021 2022 2022 2022 Cash flow from operations $ 67.1 $ (12.4) $ (14.6) $ (94.6) $ (87.6) Capital expenditures (36.0) (35.1) (27.4) (27
Slide 20: Adjusted Gross Profit and Adjusted Operating Expense Reconciliations
CommScope Holding Company, Inc. Adjusted Gross Profit Quarterly Adjusted Gross Profit and Adjusted Operating Expense (Unaudited -- In millions) and Adjusted Operating GAAP to Non-GAAP Adjusted Gross Profit Expense Reconciliations Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Gross profit, as reported $ 65
Slide 21: Outlook Core Segment Adjusted EBITDA Reconciliation
Outlook Core CommScope Holding Company, Inc. Segment Adjusted Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures (Unaudited -- In millions) EBITDA Reconciliation Outlook Range 2022 2023 2024 (1) Core segment operating income $ 457 $ 525 $ 825 $ 947 $ 1,135 $ 1,305 Adjustments: Amortizatio