Vistance Networks, Inc. · NASDAQ:VISN
Vistance Networks — CommScope Holding Company — Q1 2024 Earnings Presentation
19 slides from Vistance Networks's earnings presentation, May 9, 2024
Slide 1: First Quarter 2024 Results
May 9, 2024 First 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: First quarter highlights and outlook
(1) • Lower Net Sales driven by lower market demand and customer inventory corrections – Net sales of $1.17 billion, declining 30% from prior year • Sequential order rate improvement in CCS and OWN indicating potential recovery • Further revenue deterioration in the quarter for ANS and NICS • Still
Slide 4: CommScope results summary
(1) CommScope (In $millions, except per share amounts) 1Q’23 1Q’24 Y/Y Results Results Change Net Sales $1,664 $1,168 -30% Adj. EBITDA(2) $314 $153 -51% Adj. EBITDA Margin 18.8% 13.1% -570 bps. Adj. EPS(2) $0.34 $(0.08) -124% (1) Unless otherwise noted, the financial measures discussed reflect the r
Slide 5: First quarter segment highlights
First quarter segment highlights Business Segment Net Sales ($M) Y-Y% Adj. EBITDA(1) ($M) Y-Y% Observations 1Q’23 1Q’24 1Q’23 1Q’24 • Lower YoY revenue driven by high customer inventories and lower demand • Sequential order rate improvement indicating potential Connectivity and recovery CCS Cable So
Slide 6: Cash flow update
Cash flow update (1) GAAP Cash Flow from Operations ($M) Adj. Free Cash Flow(2) ($M) $182 $137 $139 $149 $92 $60 ($46) ($40) ($178) ($154) 1Q’23 2Q’23 3Q’23 4Q’23 1Q’24 1Q’23 2Q’23 3Q’23 4Q’23 1Q’24 • As expected, there was a significant use of cash during the first quarter as a result of lower EBIT
Slide 7: Strong liquidity & balance sheet management
Strong liquidity & balance sheet management Debt Maturities (as of 3/31/24) Cash & liquidity remain strong ($ millions) • Ended the quarter with available Secured Debt Unsecured Debt liquidity over $900 million 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 7 © 2024 CommScope, LLC. 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 9: Q&A
Q&A First Quarter 2024 Results 8 © 2024 CommScope, LLC. 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 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 March 31, Statements of 2024 2023 Net sales $ 1,168.4 $ 1,664.4 Cost of sales 766.2 1,034.2 Operations Gross profit 402.2 630.2 Transition service a
Slide 12: Condensed Consolidated Balance Sheets
CommScope Holding Company, Inc. Condensed Consolidated Balance Sheets (In millions, except share amounts) Unaudited Balance Sheets March 31, 2024 December 31, 2023 Assets Cash and cash equivalents $ 357.2 $ 543.8 Accounts receivable, net of allowance for doubtful accounts of $30.0 and $32.2, respect
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 Statements of March 31, 2024 2023 Operating Activities: Cash Flows Net income (loss) Adjustments to reconcile net income (loss) to net cash used in operating activities D
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 March 31, Adjusted EBITDA and Income (loss) from continuing operations, as reported Income tax expense (benefit), as reported $ 2024 (
Slide 15: Sales by Region
Sales by Region CommScope Holding Company, Inc. Sales by Region (Unaudited -- In millions) Sales by Region % Change Q1 2024 Q1 2023 YOY United States $ 757.1 $ 1,147.6 (34.0) % Europe, Middle East and Africa 203.5 264.6 (23.1) Asia Pacific 135.5 144.5 (6.2) Caribbean and Latin America 47.7 69.4 (31.
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 CCS $ Q1 2024 604.7 $ Q1 2023 821.1 YOY (26.4) % NICS 180.3 284.5 (36.6) OWN 196.0 258.4 (24.1) ANS 187.4 300.4 (37.6) Total net sales $ 1,168.4 $ 1,664.4 (2
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 2024 Segment Adjusted EBITDA Reconciliation Reconciliation by Operating income (loss), as reported $ CCS 58.0 $ NICS (23.0) $ OWN 33.6 $ ANS (65.7) $ Total 2.9 S
Slide 18: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Adjusted Free Cash Flow Flow Reconciliation (Unaudited -- In millions) Adjusted Free Cash Flow Q1 Q2 Q3 Q4 Q1 2023 2023 2023 2023 2024 Cash flow from operations $ (46.1) $ 136.8 $ 138.8 $ 60.4 $ (177.7) Capital expenditures (14.4) (20.8) (8.7) (9.4) (6.0) Free cash flow (60.5) 116
Slide 19: Adjusted Gross Profit and Operating Expense Reconciliations
CommScope Holding Company, Inc. Adjusted Gross Profit and Adjusted Operating Expense (Unaudited -- In millions) Adjusted Gross Profit GAAP to Non-GAAP Adjusted Gross Profit and Adjusted Operating Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Expense Reconciliations Gross profit, as reported Equity-based c
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