Slide 1: Second Quarter 2022 Results
August 4, 2022 Second 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: Second quarter key takeaways
• Strong top-line growth – Core(1) net sales of $1.88 billion, growing 9% from prior year; Consolidated CommScope net sales of $2.30 billion, growing 5% from prior year • Adjusted EBITDA – Core(1) adjusted EBITDA of $287 million(2) and Consolidated CommScope adjusted EBITDA of $300 million(2) • Marg
Slide 4: Second quarter highlights & priorities
Second quarter highlights & priorities Sequential Core(1) COMM Core(1) CommScope 1H’22 CommScope NEXT Improvement Adj. EBITDA Contributions Priorities 1Q’22 2Q’22 QoQ (In $ millions) % of Core COMM • Focus on driving organic 1H’22 Adj. EBITDA growth, including investing in Net Sales $1,733 $1,876 +8
Slide 5: Consolidated CommScope and Core CommScope results
Consolidated CommScope Core CommScope(1) (In $millions, except per share amounts) (In $millions) 2Q’21 2Q’22 Y/Y Change 2Q’21 2Q’22 Y/Y Change Results Results Results Results Net Sales $2,185 $2,300 +5% Net Sales $1,729 $1,876 +9% Adj. EBITDA(2) $308 $300 -3% Adj. EBITDA(2) $293 $287 -2% Adj. EBITDA
Slide 6: Second quarter segment highlights
Second quarter segment highlights Business Segment Net Sales ($M) Y-Y% Adj. EBITDA(1) ($M) Y-Y% Observations 2Q’21 2Q’22 2Q’21 2Q’22 • Strong demand led by fiber • Ramping capacity supporting top-line growth and operational Connectivity and CCS Cable Solutions +26% +36% leverage $169 • Price increas
Slide 7: Cash flow update
Cash flow update GAAP Cash Flow from Operations ($M) Adj. Free Cash Flow(1) ($M) $192 $198 $67 $64 ($12) ($15) ($95) ($27) ($24) ($91) 2Q’21 3Q’21 4Q’21 1Q’22 2Q’22 2Q’21 3Q’21 4Q’21 1Q’22 2Q’22 • Second quarter working capital impacted by top-line growth and higher inventory related to strong order
Slide 8: Strong liquidity & balance sheet management
Strong liquidity & balance sheet management Debt Maturities (as of 6/30/22) Cash & liquidity remain strong ($ millions) • Ended the quarter with available Secured Debt Unsecured Debt liquidity of ~$900 million ◼ ABL ◼ 6.00% Notes due 2025 • $50 million outstanding in ABL ◼ Term Loan B ◼ 5.00% Notes
Slide 9: Full year 2022 expectations
Full year 2022 expectations Reiterate targets set during December’s Strategic Transformation Update Core Adj. EBITDA(1) ($ B) • On track to deliver Core CommScope Adj. EBITDA in the range of $1.15 - $1.25 billion 1.15 – 1.25 1.09 Expect sequential improvement in 2H’22 Core Adj. EBITDA • Capacity inv
Slide 10: Closing Remarks
Closing Remarks Chuck Treadway President and Chief Executive Officer
Slide 11: Q&A Second Quarter 2022 Results
Q&A Second Quarter 2022 Results
Slide 12: Appendix
COMMSCOPE’ Appendix
Slide 13: 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 June 30, Six Months Ended June 30, Operations Net sales Cost of sales $ 2022 2,300.2 1,617.0 2021 $ 2,185.3 1,512.0 $ 2022 4,528.8 3,2
Slide 14: Condensed Consolidated Balance Sheets
CommScope Holding Company, Inc. Condensed Consolidated Balance Sheets (In millions, except share amounts) Unaudited Balance Sheets Cash and cash equivalents Assets $ June 30, 2022 229.3 $ December 31, 2021 360.3 Accounts receivable, less allowance for doubtful accounts of $61.6 and $63.7, respective
Slide 15: Condensed Consolidated Statements of Cash Flows
CommScope Holding Company, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited -- In millions) Statements of Three Months Ended June 30, Six Months Ended June 30, Cash Flows Operating Activities: Net loss $ 2022 (61.0) $ 2021 (153.8) $ 2022 (200.9) $ 2021 (251.4) Adjustments to reconcile
Slide 16: 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) Adjusted EBITDA and Three Months Ended Three Months Ended Six Months Ended Adjusted Net Income March 31, June 30, June 30, 2022 2022 2021 2022 2021 Net l
Slide 17: Sales by Region
Sales by Region CommScope Holding Company, Inc. Sales by Region (Unaudited -- In millions) Sales by Region % Change % Change Q2 2022 Q1 2022 Q2 2021 Sequential YOY United States $ 1,424.3 $ 1,347.1 $ 1,254.2 5.7 % 13.6 % Europe, Middle East and Africa 378.4 406.4 408.8 (6.9) (7.4) Asia Pacific 223.1
Slide 18: 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 Q2 2022 Q1 2022 Q2 2021 Sequential YOY Connectivity and Cable Solutions $ 986.7 $ 838.0 $ 783.4 17.7 % 26.0 % Outdoor Wireless Networks 390.9 390.1
Slide 19: Reconciliation of GAAP to Segment Adjusted EBITDA
CommScope Holding Company, Inc. Reconciliation of GAAP to Segment Adjusted EBITDA (Unaudited -- In millions) Second Quarter 2022 Segment Adjusted EBITDA Reconciliation Networking, Adjusted EBITDA Intelligent Connectivity Outdoor Cellular and Access and Cable Wireless Security Network Home Solutions
Slide 20: 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 Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2022 Cash flow from operations $ 191.6 $ 67.1 $ (12.4) $ (14.6) $ (94.6) Capital expenditures (33.8) (36.0) (35.1) (27.
Slide 21: 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 Gross profit, as reported Q2 2021 Q3 2021 Q4 2021 Q1 2022 $ 673.3 $ 65
Slide 22: Outlook Core Segment Adjusted EBITDA Reconciliation
Outlook Core CommScope Holding Company, Inc. Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures Segment Adjusted (Unaudited -- In millions) EBITDA Reconciliation Outlook Range 2022 (1) Core segment operating income $ 457 $ 525 Adjustments: Amortization of purchased intangible assets 442 4