CommScope Announces Preliminary Second Quarter 2024 Results
Preliminary Second Quarter Results
-
Consolidated net sales of
$1.39 billion -
Core net sales of
$1.05 billion * -
GAAP income from continuing operations of
$75 million -
Consolidated non-GAAP adjusted EBITDA of
$302 million (1) -
Core non-GAAP adjusted EBITDA of
$201 million *(1)
* Core financial measures exclude the results and performance of our Outdoor Wireless Networks (OWN) segment and Distributed Antenna Systems (DAS) business unit of our Networking, Intelligent Cellular & Security Solutions (NICS) segment of
(1) See “Non-GAAP Financial Measures” and “Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures” below.
Second quarter 2024 CommScope Net Sales are expected to be
“Throughout the first half of this year, we navigated uncertainty and depressed market conditions in many of our business units. However, we saw improvement in our second quarter Core performance driven by strength in our CCS segment, specifically our datacenter and cloud business. Additionally, customer inventory levels have continued to show signs of stability. Despite these positive trends, visibility remains limited as we move into the second half of the year,” said
“CommScope continues to explore alternatives to address its capital structure, leveraging the flexibility available to us in our credit documents,” Treadway continued. “We expect to engage with our lenders and bondholders in the third quarter to discuss options to deleverage our balance sheet and address our upcoming maturities.”
Earlier this month,
The expected second quarter 2024 results set out above are still preliminary and subject to the Company’s quarter-end close procedures. The Company’s consolidated financial statements as of, and for the three months ended,
Conference Call, Webcast and Investor Presentation
As previously announced,
The live, listen-only audio of the call will be available through a link on the Events and Presentations page of CommScope’s Investor Relations website.
A webcast replay will be archived on CommScope’s website for a limited period of time following the conference call.
During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end, including questions relating to the planned sale of our OWN segment and DAS business unit. The Company’s responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously.
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Non-GAAP Financial Measures
Core Measures
Forward Looking Statements
This press release 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 discuss goals, targets, intentions or expectations as to future plans, trends, events, results of operations or financial condition or otherwise, in each case, based on current beliefs and expectations of management, as well as assumptions made by, and information currently available to, management. These forward-looking statements are generally identified by their use of such terms and phrases as “intend,” “goal,” “estimate,” “expect,” “project,” “projections,” “plans,” “potential,” “anticipate,” “should,” “could,” “designed to,” “foreseeable future,” “believe,” “think,” “scheduled,” “outlook,” “target,” “guidance” and similar expressions, although not all forward-looking statements contain such terms. This list of indicative terms and phrases is not intended to be all-inclusive.
These forward-looking statements are subject to various risks and uncertainties, many of which are outside our control, including, without limitation, statements regarding the expected timing of the closing of the sale of the OWN and DAS businesses (the “Transaction”); the expected benefits of the Transaction, including the expected financial performance of
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Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures |
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(Unaudited -- In millions) |
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Three Months Ended |
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Twelve Months Ended |
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Core loss from continuing operations (1) |
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$ |
(10.1 |
) |
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$ |
(1,233.3 |
) |
Income tax expense (benefit) |
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(43.7 |
) |
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197.2 |
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Interest income |
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(2.1 |
) |
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(12.4 |
) |
Interest expense |
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167.5 |
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677.3 |
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Other income, net |
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(3.7 |
) |
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(55.2 |
) |
Core operating income (loss) |
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$ |
107.9 |
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$ |
(426.4 |
) |
Adjustments: |
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Amortization of purchased intangible assets |
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55.3 |
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262.2 |
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Restructuring costs, net |
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0.7 |
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33.5 |
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Equity-based compensation |
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1.2 |
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27.7 |
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Asset impairments |
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— |
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571.4 |
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Transaction, transformation and integration costs |
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16.7 |
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46.3 |
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Acquisition accounting adjustments |
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— |
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0.5 |
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Patent claims and litigation settlements |
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— |
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(3.5 |
) |
Cyber incident costs |
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— |
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1.6 |
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Depreciation |
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19.2 |
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89.6 |
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Total adjustments to core operating income (loss) (1) |
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93.1 |
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1,029.3 |
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Core non-GAAP adjusted EBITDA (1) |
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$ |
201.0 |
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$ |
602.9 |
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(1) Core financial measures exclude the results and performance of our OWN segment and DAS business unit of our NICS segment. |
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See "Non-GAAP Financial Measures" above. |
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Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures |
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(Unaudited -- In millions) |
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Three Months Ended |
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Twelve Months Ended |
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Income (loss) from continuing operations |
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$ |
74.8 |
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$ |
(1,005.3 |
) |
Income tax expense (benefit) |
|
|
(43.7 |
) |
|
|
197.1 |
|
Interest income |
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(2.1 |
) |
|
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(12.4 |
) |
Interest expense |
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167.5 |
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677.4 |
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Other income, net |
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(3.7 |
) |
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(55.3 |
) |
Operating income (loss) |
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$ |
192.8 |
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$ |
(198.5 |
) |
Adjustments: |
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Amortization of purchased intangible assets |
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60.4 |
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285.3 |
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Restructuring costs, net |
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0.9 |
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35.7 |
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Equity-based compensation |
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1.6 |
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34.2 |
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Asset impairments |
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— |
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|
571.4 |
|
Transaction, transformation and integration costs |
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23.7 |
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56.3 |
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Acquisition accounting adjustments |
|
|
— |
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|
0.4 |
|
Patent claims and litigation settlements |
|
|
— |
|
|
|
(3.5 |
) |
Cyber incident costs |
|
|
— |
|
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1.9 |
|
Depreciation |
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22.7 |
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104.5 |
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Total adjustments to operating income (loss) |
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109.3 |
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1,086.2 |
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Non-GAAP adjusted EBITDA |
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$ |
302.1 |
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$ |
887.7 |
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See "Non-GAAP Financial Measures" above. |
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Adjusted Free Cash Flow |
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(Unaudited -- In millions) |
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Adjusted Free Cash Flow |
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Q2 2024 |
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Cash flow from operations |
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$ |
50.8 |
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Capital expenditures |
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(5.3 |
) |
Free cash flow |
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45.5 |
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Transaction, transformation and integration costs |
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16.3 |
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Restructuring costs, net |
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7.0 |
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Adjusted free cash flow |
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$ |
68.7 |
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See “Non-GAAP Financial Measures” above. |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240729793490/en/
Investor Contact:
Massimo.Disabato@commscope.com
News Media Contact:
publicrelations@commscope.com
Source: