Slide 1: First Quarter 2016 Results
Armstrong, Philip; Edwards, Eddie; Olson, Mark Eddie Edwards President and First Quarter 2016 Results Chief Executive Officer April 28, 2016 Mark Olson Executive Vice President and Chief Financial Officer 1
Slide 2: Safe Harbor
Safe Harbor Caution Regarding Forward Looking Statements During this presentation or any other oral or written statements made by us or on our behalf may include forward-looking statements which reflect our current views with respect to future events and financial performance. These forward-looking
Slide 3: Agenda
Agenda • First quarter 2016 results • Segment review • Cash flow, liquidity and capital structure • Second quarter and calendar year 2016 outlook 3
Slide 4: Q1 2016 Results
Q1 2016 Results Revenue Adjusted Operating Adjusted Diluted Income(1) Earnings Per Share(1) (in millions) (in millions) $1,143 $1,144 $825 $211 $0.48 $196 $0.42 $0.42 $156 Q1 2015 Q4 2015 Q1 2016 Q1 2015 Q4 2015 Q1 2016 Q1 2015 Q4 2015 Q1 2016 Sales & Orders: Operating Results: Net Income & EPS: • S
Slide 5: CommScope Connectivity Solutions (CCS)
CommScope Connectivity Solutions (CCS) Fiber Residential/MDU to the Home Revenue (in millions) $672 $687 Outside Plant $329 CATV Central Headend Office Q1 2015 Q4 2015 Q1 2016 Intelligent Building Adjusted Operating Income(1) (in millions) $135 Data $117 Center $58 Additional Offerings Data center o
Slide 6: CommScope Mobility Solutions (CMS)
CommScope Mobility Solutions (CMS) Outdoor Additional Offerings Cell Site Cabling & connectivity Revenue Metro cells Filters & combiners (in millions) Microwave Services Backhaul $496 $471 $457 Small Cell Secure Environmental Enclosures Q1 2015 Q4 2015 Q1 2016 Adjusted Operating Income(1) (in millio
Slide 7: Cash Flow and Liquidity
Cash Flow and Liquidity Cash Flow Highlights LTM LTM (in millions) Q1 2015 Q1 2016 Q1 2015 Q1 2016 Cash flow from operations $ 1 $ 118 $ 326 $ 419 Capital expenditures, net of capital expenditures related to BNS integration (8) (14) (38) (49) Cash paid for transaction & integration costs 7 16 7 105
Slide 8: Capital Structure
Capital Structure Capital Summary & Net Leverage Ratio Major Debt Maturities as of March 31, 2016(2) Actual (do llars in millio ns) 3/31/2016 5.00% and 5.50% Notes $ 1,300.0 Announced PIK Notes 536.6 $300 million Term Loans 1,505.6 PIK Notes 6.00% Notes 1,500.0 Redemption Secured Notes 500.0 $300 Re
Slide 9: Outlook
Outlook(1) • Sales of $1.275 billion - $1.325 billion Q2 2016 • Adjusted operating income of $270 million - $290 million • Adjusted earnings per diluted share of $0.67 - $0.72, based on 196 million Guidance weighted average diluted shares, up 42% YOY at the midpoint • Adjusted effective tax rate of
Slide 10: Appendix: Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures CommScope management believes that presenting certain non-GAAP financial measures provides meaningful information to investors in understanding operating results and may enhance investors' ability to analyze financial and business trends. Non-GAAP measures are no
Slide 11: Income Statements
Income Statements CommScope Holding Company, Inc. Condensed Consolidated Statements of Operations (Unaudited -- In thousands) (Unaudited -- In thousands, except per share amounts) Three Months Ended March 31, 2016 2015 Net sales $ 1,143,979 $ 825,400 Operating costs and expenses: Cost of sales 696,8
Slide 12: Balance Sheets
Balance Sheets March 31, December 31, (Unaudited -- In thousands) 2016 2015 Assets Cash and cash equivalents $ 688,368 $ 562,884 Accounts receivable, less allowance for doubtful accounts of $18,525 and $19,392, respectively 924,216 833,041 Inventories, net 464,462 441,815 Prepaid expenses and other
Slide 13: Statements of Cash Flows
Statements of Cash Flows CommScope Holding Company, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited -- In thousands) (Unaudited -- In thousands) Three Months Ended March 31, 2016 2015 Operating Activities: Net income $ 12,580 $ 39,476 Adjustments to reconcile net income to net cash g
Slide 14: Quarter Segment Information
Quarter Segment Information (Unaudited -- In millions) Sales by Segment (1) % Change Q1 2016 Q4 2015 Q1 2015 Sequential YOY Connectivity Solutions 687.0 671.5 329.1 2.3 % 108.8 % Mobility Solutions 457.0 471.0 496.3 (3.0) % (7.9) % Total Net Sales $ 1,144.0 $ 1,142.5 $ 825.4 0.1 % 38.6 % Non-GAAP Ad
Slide 15: Pro Forma Sales by Segment
Pro Forma Sales by Segment (Unaudited -- In millions) (1) Pro Forma Sales by Segment Q1 2015 Q2 2015 Q3 2015 Connectivity Solutions $ 717.6 $ 781.2 $ 750.4 Mobility Solutions 532.7 557.0 496.9 Total Pro Forma Net Sales $ 1,250.3 $ 1,338.2 $ 1,247.3 (1) See Description of Pro Forma Results 15
Slide 16: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation CommScope Holding Company, Inc. Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures (Unaudited – In millions) (Unaudited -- In millions, except per share amounts) Three Months Ended March 31, 2016 2015 Operating income, as reported $ 90.7 $ 93.1 Adjustmen
Slide 17: Adjusted Operating Income Reconciliation by Quarter
Adjusted Operating Income Reconciliation by Quarter (Unaudited -- In millions) Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015 Operating income (loss), as reported $ 90.7 $ 21.6 $ (42.5) $ 109.4 $ 93.1 Amortization of purchased intangible assets 73.6 76.9 54.3 44.6 44.8 Restructuring costs, net 6.1 18.9 6.9
Slide 18: Quarterly Adjusted Operating Income Reconciliation by Segment
Quarterly Adjusted Operating Income Reconciliation by Segment First Quarter 2016 Non-GAAP Adjusted Operating Income Reconciliation by Segment (1) (Unaudited -- In millions) Connectivity Mobility Total Solutions Solutions Operating income, as reported $ 50.0 $ 40.7 $ 90.7 Amortization of purchased in
Slide 19: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation (Unaudited -- In millions) Q1 2016 Q1 2015 Cash flow from operations $ 118.1 $ 1.2 Transaction and integration costs 15.7 6.6 Capital expenditures (14.5) (8.2) Capex related to BNS integration 0.6 - Adjusted Free Cash Flow $ 119.9 $ (0.4) 19