Vistance Networks, Inc. · NASDAQ:VISN
Vistance Networks — FY2021 Earnings Presentation
28 slides from Vistance Networks's earnings presentation, Feb 17, 2022
Slide 1: Fourth Quarter and Full Year 2021 Results
February 17, 2022 Fourth Quarter and Full Year 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: Fourth quarter highlights
Fourth quarter highlights Core CommScope Home Networks Broadband Networks, Outdoor Wireless Networks, Venue and Campus Networks • Semiconductor shortage continues to impact ability to serve demand; • Broadband Networks most acute impact to broadband Strong growth in Network Cabling and Connectivity;
Slide 4: CommScope NEXT update
CommScope NEXT update ▪ Determined it is in the best interests of both CommScope and a future independent Home Networks business to delay execution of the spin-off from the previously announced target of 2Q’22 Spin-off ▪ 2021 Home performance materially impacted by chip shortage, higher component co
Slide 5: Consolidated CommScope and Core CommScope full year results
Consolidated CommScope Core CommScope (1) (In $millions, except per share amounts) (In $millions) FY’20 FY’21 Y/Y Change FY’20 FY’21 Y/Y Change Results Results Results Results Net Sales (2) $8,436 $8,587 +2% Net Sales (2) $6,028 $6,737 +12% Adj. EBITDA(3) $1,215 $1,117 -8% Adj. EBITDA(3) $1,084 $1,0
Slide 6: Consolidated CommScope and Core CommScope fourth quarter results
Consolidated CommScope Core CommScope (1) (In $millions, except per share amounts) (In $millions) 4Q’20 4Q’21 Y/Y Change 4Q’20 4Q’21 Y/Y Change Results Results Results Results Net Sales (2) $2,132 $2,224 +4% Net Sales (2) $1,550 $1,747 +13% Adj. EBITDA(3) $362 $261 -28% Adj. EBITDA(3) $319 $254 -21%
Slide 7: Broadband Networks
Broadband Networks Financial Highlights Net Sales (1) ($M) Adj. EBITDA(2) ($M) $211 $778 $782 $142 4Q'20 4Q'21 4Q'20 4Q'21 Y-Y% Change: +1% Y-Y% Change: -33% • Net sales increases primarily driven by the Europe, Middle • Adjusted EBITDA declines driven by higher input and freight East and Africa reg
Slide 8: Venue and Campus Networks
Venue and Campus Networks Financial Highlights Net Sales (1) ($M) Adj. EBITDA(2) ($M) $591 $59 $477 $48 4Q'20 4Q'21 4Q'20 4Q'21 Y-Y% Change: +24% Y-Y% Change: +21% • Net sales growth across all regions • Adjusted EBITDA growth primarily due to higher sales volume and pricing, partially offset by hig
Slide 9: Outdoor Wireless Networks
Outdoor Wireless Networks Financial Highlights Net Sales ($M) Adj. EBITDA(1) ($M) $374 $295 $60 $54 4Q'20 4Q'21 4Q'20 4Q'21 Y-Y% Change: +27% Y-Y% Change: -11% • Net sales growth across all regions • Adjusted EBITDA declines driven by higher input and freight • Growth across all product lines costs,
Slide 10: Home Networks
Home Networks Financial Highlights Net Sales(1) ($M) Adj. EBITDA(2) ($M) $582 $43 $477 $7 4Q'20 4Q'21 4Q'20 4Q'21 Y-Y% Change: -18% Y-Y% Change: -84% • Net sales declines across all regions except Asia Pacific • Adjusted EBITDA declines driven by lower sales • Declines driven by broadband gateways v
Slide 11: Cash flow update
Cash flow update GAAP Cash Flow from Operations ($M) Adj. Free Cash Flow(1) ($M) $192 $198 $122 $100 $64 $67 $(12) ($27) ($124) ($135) 1Q’21 2Q’21 3Q’21 4Q’21 FY’21 1Q’21 2Q’21 3Q’21 4Q’21 FY’21 • Fourth quarter working capital impacted by higher inventory related to strong order flow and supply cha
Slide 12: Strong liquidity & balance sheet management
Strong liquidity & balance sheet management Debt Maturities (as of 12/31/21) Cash & liquidity remain strong ($ millions) Secured Debt Unsecured Debt • Ended the quarter with available ABL 6.00% Notes due 2025 liquidity of ~$1.04 billion Term Loan B 5.00% Notes due 2027 • No outstanding draws under A
Slide 13: Full year 2022 expectations
Full year 2022 expectations Reiterate targets set during December’s Strategic Transformation Update Adj. EBITDA (1) ($ B) • On track to deliver Core CommScope Adj. EBITDA in the range of $1.15 - $1.25 billion 1.15 – 1.25 Additional considerations 1.09 • Continued challenges related to supply chain e
Slide 14: NEXT portfolio optimization: 2022 segment realignment
CommScope NEXT portfolio optimization: 2022 segment realignment 2021 2022 Core CommScope Ric Johnsen Broadband Networks Connectivity and Cable Solutions (CCS) SVP & Segment Leader Farid Firouzbakht Outdoor Wireless Networks (OWN) Outdoor Wireless Networks (OWN) SVP & Segment Leader Networking, Intel
Slide 15: Q&A
Q&A Fourth Quarter and Full Year 2021 Results
Slide 16: Appendix
COMMSCOPE’ Appendix
Slide 17: Statements of Operations
CommScope Holding Company, Inc. Condensed Consolidated Statements of Operations (Unaudited -- In millions, except per share amounts) Three Months Ended Year Ended Statements of 2021 December 31, 2020 2021 December 31, 2020 Operations Net sales Cost of sales Gross profit $ 2,224.1 1,538.3 685.8 $ 2,1
Slide 18: Balance Sheets
CommScope Holding Company, Inc. Consolidated Balance Sheets (In millions, except share amounts) December 31, 2021 2020 Balance Sheets Cash and cash equivalents Assets Accounts receivable, less allowance for doubtful accounts $ 360.3 $ 521.9 of $63.7 and $40.3, respectively 1,532.6 1,487.4 Inventorie
Slide 19: Statements of Cash Flows
CommScope Holding Company, Inc. Consolidated Statements of Cash Flows (Unaudited -- In millions) Three Months Ended Year Ended December 31, December 31, Statements of Cash Operating Activities: Net income (loss) $ 2021 (87.1) $ 2020 23.9 $ 2021 (462.6) $ 2020 (573.4) Flows Adjustments to reconcile n
Slide 20: 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 Year Ended December 31, December 31, Adjusted EBITDA and Net income (loss), as reported Income tax benefit, as reported $ 2021 (87.1)
Slide 21: Sales by Region
Sales by Region CommScope Holding Company, Inc. Sales by Region (Unaudited -- In millions) Sales by Region % Change Q4 2021 Q4 2020 YOY United States $ 1,312.6 $ 1,293.0 1.5% Europe, Middle East and Africa 407.3 368.8 10.4 Asia Pacific 240.7 198.7 21.1 Caribbean and Latin America 160.4 178.0 (9.9) C
Slide 22: Sales and Adjusted EBITDA by Segment
CommScope Holding Company, Inc. Sales and Adjusted Segment Information (Unaudited -- In millions) EBITDA by Segment Segment Net Sales Q4 2021 Q4 2020 % Change YOY Broadband $ 782.4 $ 778.3 0.5 % Outdoor Wireless 374.0 294.7 26.9 Venue and Campus 591.0 476.8 24.0 (1) Core net sales 1,747.4 1,549.8 12
Slide 23: Sales and Adjusted EBITDA by Segment
Sales and Adjusted CommScope Holding Company, Inc. Segment Information EBITDA by Segment Segment Net Sales (Unaudited -- In millions) % Change Full Year 2021 Full Year 2020 YOY Broadband $ 3,148.8 $ 2,848.2 10.6 % Outdoor Wireless 1,410.2 1,243.7 13.4 Venue and Campus 2,178.4 1,936.5 12.5 Core net s
Slide 24: Adjusted EBITDA Reconciliation by Segment
CommScope Holding Company, Inc. Reconciliation of GAAP to Segment Adjusted EBITDA (Unaudited -- In millions) Adjusted EBITDA Fourth Quarter 2021 Segment Adjusted EBITDA Reconciliation Reconciliation by Operating income (loss), as reported Broadband $ 50.1 Outdoor Wireless $ 40.5 Venue and $ Campus 8
Slide 25: Adjusted EBITDA Reconciliation by Segment
CommScope Holding Company, Inc. Reconciliation of GAAP to Segment Adjusted EBITDA (Unaudited -- In millions) Adjusted EBITDA Year Ended December 31, 2021 Segment Adjusted EBITDA Reconciliation Outdoor Venue and Reconciliation by Operating income (loss), as reported Broadband $ 120.1 $ Wireless 199.0
Slide 26: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash CommScope Holding Company, Inc. Flow Reconciliation Adjusted Free Cash Flow (Unaudited -- In millions) Adjusted Free Cash Flow Q4 Q1 Q2 Q3 Q4 Full Year Full Year 2020 2021 2021 2021 2021 2021 2020 Cash flow from operations $ 97.7 $ (124.0) $ 191.6 $ 67.1 $ (12.4) $ 122.3 $ 436.2 C
Slide 27: 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) and Adjusted Operating GAAP to Non-GAAP Adjusted Gross Profit Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Full Year 2021 Full Year 2020 Expense Reconciliations
Slide 28: Core Segment Adjusted EBITDA Reconciliation
Core Segment CommScope Holding Company, Inc. Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures Adjusted EBITDA (Unaudited -- In millions) Reconciliation Core segment adjusted EBITDA Actual Outlook Range 2021 2022 (1) Core segment operating income $ 264 $ 387 $ 480 Adjustments: Amortizati