Slide 1: Fourth Quarter and Full Year 2022 Results
February 23, 2023 Fourth Quarter and Full Year 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: FY'22 results highlights
• Strong top-line growth – FY’22 Consolidated CommScope net sales of $9.23 billion grew 7% from prior year; Core(1) net sales of $7.52 billion grew 12% from prior year • Improved adjusted EBITDA – FY’22 Consolidated CommScope adjusted EBITDA of $1.28 billion(2) grew 14% from prior year; Core(1) adju
Slide 4: Delivered $1.25 billion of FY'22 Core adjusted EBITDA
Consolidated CommScope Core CommScope(1) (In $millions, except per share amounts) (In $millions) FY’21 FY’22 Y/Y FY’21 FY’22 Y/Y Results Results Change Results Results Change Net Sales $8,587 $9,228 +7% Net Sales $6,737 $7,525 +12% Adj. EBITDA(2) $1,117 $1,277 +14% Adj. EBITDA(2) $1,092 $1,250 +15%
Slide 5: Delivered a second consecutive record quarter of Core adjusted EBITDA
Consolidated CommScope Core CommScope(1) (In $millions, except per share amounts) (In $millions) 4Q’21 4Q’22 Y/Y 4Q’21 4Q’22 Y/Y Results Results Change Results Results Change Net Sales $2,224 $2,318 +4% Net Sales $1,747 $1,926 +10% Adj. EBITDA(2) $261 $376 +44% Adj. EBITDA(2) $254 $381 +50% Adj. EBI
Slide 6: Fourth quarter segment highlights
Fourth quarter segment highlights Business Segment Net Sales ($M) Y-Y% Adj. EBITDA(1) ($M) Y-Y% Observations 4Q’21 4Q’22 4Q’21 4Q’22 • Strong fiber and connectivity demand • Volume and price drove top-line growth Connectivity and • Price, growth and efficiency helped to continue to drive margin CCS
Slide 7: Cash flow update
Cash flow update GAAP Cash Flow from Operations ($M) Adj. Free Cash Flow(1) ($M) $387 $403 $190 $198 ($12) ($15) ($95) ($88) ($27) ($24) ($91) ($91) 4Q’21 1Q’22 2Q’22 3Q’22 4Q’22 FY’22 4Q’21 1Q’22 2Q’22 3Q’22 4Q’22 FY’22 • Fourth quarter cash flow driven by strong adjusted EBITDA performance and imp
Slide 8: Strong liquidity & balance sheet management
Strong liquidity & balance sheet management Debt Maturities (as of 12/31/22) Cash & liquidity remain strong ($ millions) • $398 million in global cash Secured Debt Unsecured Debt • Ended the quarter with available ◼ ABL ◼ 6.00% Notes due 2025 liquidity of ~$1.31 billion ◼ Term Loan B ◼ 5.00% Notes d
Slide 9: Closing Remarks
Closing Remarks Chuck Treadway President and Chief Executive Officer
Slide 10: Q&A Fourth Quarter and Full Year 2022 Results
Q&A Fourth Quarter and Full Year 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 Three Months Ended December 31, 2022 2021 2022 Year Ended December 31, 2021 Operations Net sales Cost of sales Gross profit $ 2,317.9 1,569.6 748.3 $ 2,2
Slide 13: Consolidated Balance Sheets
CommScope Holding Company, Inc. Consolidated Balance Sheets (In millions, except share amounts) December 31, Balance Sheets Cash and cash equivalents Assets $ 2022 398.1 $ 2021 360.3 Accounts receivable, net of allowance for doubtful accounts of $82.8 and $63.7, respectively 1,523.6 1,532.6 Inventor
Slide 14: Consolidated Statements of Cash Flows
CommScope Holding Company, Inc. Consolidated Statements of Cash Flows (Unaudited -- In millions) Three Months Ended Year Ended Statements of Operating Activities: December 31, 2022 2021 December 31, 2022 2021 Cash Flows Net loss $ (1,108.8) $ (87.1) $ (1,286.9) $ (462.6) Adjustments to reconcile net
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 Ended Year Ended December 31, December 31, Adjusted EBITDA and Net loss, as reported Income tax benefit, as reported 2022 $ (1,108.8) (17.3)
Slide 16: Sales by Region
CommScope Holding Company, Inc. Sales by Region Sales by Region (Unaudited -- In millions) Sales by Region % Change Q4 2022 Q4 2021 YOY United States $ 1,484.0 $ 1,312.6 13.1 % Europe, Middle East and Africa 414.2 407.3 1.7 Asia Pacific 187.1 240.7 (22.3) Caribbean and Latin America 134.4 160.4 (16.
Slide 17: Sales and Adjusted EBITDA by Segment (Q4)
CommScope Holding Company, Inc. Segment Information Sales and Adjusted (Unaudited -- In millions) EBITDA by Segment Segment Net Sales Q4 2022 Q4 2021 % Change YOY CCS $ 957.1 $ 805.9 18.8 % NICS 288.5 239.9 20.3 OWN 304.8 375.3 (18.8) ANS 375.1 326.3 15.0 Core net sales (1) 1,925.5 1,747.4 10.2 Home
Slide 18: Sales and Adjusted EBITDA by Segment (Full Year)
CommScope Holding Company, Inc. Sales and Adjusted Segment Information (Unaudited -- In millions) EBITDA by Segment Segment Net Sales % Change Full Year 2022 Full Year 2021 YOY CCS $ 3,789.6 $ 3,053.8 24.1 % NICS 939.7 861.9 9.0 OWN 1,467.9 1,417.1 3.6 ANS 1,327.5 1,404.6 (5.5) Core net sales (1) 7,
Slide 19: Adjusted EBITDA Reconciliation by Segment (Q4)
CommScope Holding Company, Inc. Reconciliation of GAAP to Segment Adjusted EBITDA (Unaudited -- In millions) Adjusted EBITDA Fourth Quarter 2022 Segment Adjusted EBITDA Reconciliation Reconciliation by Operating income (loss), as reported Amortization of purchased intangible assets $ CCS 146.1 18.7
Slide 20: Adjusted EBITDA Reconciliation by Segment (Full Year)
CommScope Holding Company, Inc. Reconciliation of GAAP to Segment Adjusted EBITDA (Unaudited -- In millions) Adjusted EBITDA Year Ended December 31, 2022 Segment Adjusted EBITDA Reconciliation Reconciliation by Operating income (loss), as reported Amortization of purchased intangible assets $ CCS 43
Slide 21: 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 Q4 Q1 Q2 Q3 Q4 Full Year Full Year 2021 2022 2022 2022 2022 2022 2021 Cash flow from operations $ (12.4) $ (14.6) $ (94.6) $ (87.6) $ 386.8 $ 190.0 $ 122.
Slide 22: 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 Full Year Full Year Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 2021 Gross prof
Slide 23: 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