Vistance Networks, Inc. · NASDAQ:VISN
Vistance Networks — CommScope Holding Company — Q1 2023 Earnings Presentation
20 slides from Vistance Networks's earnings presentation, May 4, 2023
Slide 1: First Quarter 2023 Results
May 4, 2023 First Quarter 2023 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: First quarter highlights and FY23 outlook
• Net Sales – Core(1) net sales of $1.66 billion, declining 4% from prior year; Consolidated CommScope net sales of $2.00 billion, declining 10% from prior year • Adjusted EBITDA – Core(1) adjusted EBITDA of $315 million(2) and Consolidated CommScope adjusted EBITDA of $312 million(2) • Margin recov
Slide 4: Core CommScope and Consolidated CommScope results
Consolidated CommScope Core CommScope(1) (In $millions, except per share amounts) (In $millions) 1Q’22 1Q’23 Y/Y Change 1Q’22 1Q’23 Y/Y Change Results Results Results Results Net Sales $2,229 $2,002 -10% Net Sales $1,733 $1,664 -4% Adj. EBITDA(2) $253 $312 +23% Adj. EBITDA(2) $230 $315 +37% Adj. EBI
Slide 5: First quarter segment highlights
First quarter segment highlights Business Segment Net Sales ($M) Y-Y% Adj. EBITDA(1) ($M) Y-Y% Observations 1Q’22 1Q’23 1Q’22 1Q’23 • Strong execution of Connectivity and Cable due to strong backlog; offset by declines in the enterprise market Connectivity and • Efficiency and price helped to contin
Slide 6: Cash flow update
Cash flow update GAAP Cash Flow from Operations ($M) Adj. Free Cash Flow(1) ($M) $387 $403 ($15) ($46) ($24) ($40) ($95) ($88) ($91) ($91) 1Q’22 2Q’22 3Q’22 4Q’22 1Q’23 1Q’22 2Q’22 3Q’23 4Q’22 1Q’23 • As expected First quarter cash flow followed typical softness due to annual incentive payout and in
Slide 7: Strong liquidity & balance sheet management
Strong liquidity & balance sheet management Debt Maturities (as of 3/31/23) Cash & liquidity remain strong ($ millions) • Ended the quarter with available Secured Debt Unsecured Debt liquidity of ~$1.2 billion n ABL n 6.00% Notes due 2025 $1,500 • No outstanding ABL revolver draws n Term Loan B n 5.
Slide 8: Closing Remarks
Closing Remarks Chuck Treadway President and Chief Executive Officer
Slide 9: Q&A First Quarter 2023 Results
Q&A First Quarter 2023 Results
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) Statements of Thre e Months Ende d March 31, 2023 2022 Operations Net sales Cost of sales Gross profit $ 2,001.5 1,309.8 691.7 $ 2,228.6 1,592.3 636.3 Operating expens
Slide 12: Condensed Consolidated Balance Sheets
CommScope Holding Company, Inc. Condensed Consolidated Balance Sheets (In millions, except share amounts) Balance Sheets Unaudite d March 31, 2023 De ce mbe r 31, 2022 Assets Cash and cash equivalents $ 327.3 $ 398.1 Accounts receivable, net of allowance for doubtful accounts of $81.2 and $82.8, res
Slide 13: Condensed Consolidated Statements of Cash Flows
CommScope Holding Company, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited -- In millions) Statements of Three Months Ended March 31, 2023 2022 Cash Flows Operating Activities: Net income (loss) Adjustments to reconcile net income (loss) to net cash used in operating activities: $ 3.
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) Three Months Ended Adjusted EBITDA and Net income (loss), as reported $ 2023 March 31, 3.4 $ 2022 (139.9) Adjusted Net Income Income tax expense (benefit
Slide 15: Sales by Region
Sales by Region CommScope Holding Company, Inc. Sales by Region (Unaudited -- In millions) Sales by Region % Change Q1 2023 Q1 2022 YOY United States $ 1,318.0 $ 1,347.1 (2.2) % Europe, Middle East and Africa 326.5 406.4 (19.7) Asia Pacific 158.9 203.4 (21.9) Caribbean and Latin America 107.9 162.3
Slide 16: Sales and Adjusted EBITDA by Segment
CommScope Holding Company, Inc. Sales and Adjusted Segment Information (Unaudited -- In millions) EBITDA by Segment Segment Net Sales % Change Q1 2023 Q1 2022 YOY Connectivity and Cable Solutions $ 822.8 $ 838.0 (1.8) % Networking, Intelligent Cellular and Security Solutions 284.5 188.0 51.3 Outdoor
Slide 17: Adjusted EBITDA Reconciliation by Segment
CommScope Holding Company, Inc. Reconciliation of GAAP to Segment Adjusted EBITDA (Unaudited -- In millions) Adjusted EBITDA First Quarter 2023 Segment Adjusted EBITDA Reconciliation Reconciliation by Operating income (loss), as reported CCS $ 124.0 $ NICS 34.9 $ OWN 49.2 $ ANS (21.9) Home $ (33.7)
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 Q1 Q2 Q3 Q4 Q1 2022 2022 2022 2022 2023 Cash flow from operations $ (14.6) $ (94.6) $ (87.6) $ 386.8 $ (46.1) Capital expenditures (27.4) (27.7) (23.6) (2
Slide 19: Adjusted Gross Profit and Adjusted Operating Expense Reconciliations
Adjusted Gross Profit CommScope Holding Company, Inc. Adjusted Gross Profit and Adjusted Operating Expense and Adjusted Operating (Unaudited -- In millions) Expense Reconciliations GAAP to Non-GAAP Adjusted Gross Profit Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Gross profit, as reported $ 636.3 $ 683.
Slide 20: 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 2023 (1) Core segment operating income $ 825 $ 947 Adjustments: Amortization of purchased intangible assets 325 3
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