[February 23, 2017] |
|
CommScope Reports Strong Fourth Quarter 2016 Results
CommScope Holding Company, Inc. (NASDAQ: COMM), a global leader in
infrastructure solutions for communications networks, reported sales of
$1.18 billion and net income of $54 million, or $0.28 per diluted share,
for the quarter ended December 31, 2016. Sales rose 3 percent year over
year driven by strength in the North America wireless and fiber-to-the-X
(FTTX) markets. Non-GAAP adjusted net income for the fourth quarter 2016
was $121 million, or $0.61 per diluted share. A reconciliation of
reported GAAP results to non-GAAP results is attached.
In comparison, for the quarter ended December 31, 2015, CommScope
reported sales of $1.14 billion and a net loss of $75 million, or a loss
of $0.39 per share. Non-GAAP adjusted net income for the fourth quarter
of 2015 was $83 million, or $0.42 per diluted share.
"We are very pleased to deliver another quarter of sales growth and
outstanding financial results," said President and Chief Executive
Officer Eddie Edwards. "We are equally proud of our full-year 2016
performance. While integrating a major acquisition, we increased
earnings significantly, more than doubled cash flow from operations and
repaid nearly $700 million of debt.
"We also successfully met major execution milestones in our BNS
integration plan and raised our synergy targets by more than 30 percent.
We see growth opportunities ahead and are confident in our long-term
market position."
Fourth Quarter 2016 Overview
Fourth quarter 2016 sales grew 3 percent year over year to $1.18
billion, which was consistent with guidance. The year-over-year increase
was driven by solid growth in North America-particularly in the wireless
and FTTX markets. Foreign exchange rate changes negatively affected
revenue by 1 percent year over year.
GAAP operating income in the fourth quarter 2016 rose significantly year
over year to $119 million. The increase was driven by higher sales
volumes, reduced purchase accounting charges, benefits from cost
reduction initiatives and favorable geographic and product mix. Adjusted
operating income in the quarter, which excludes amortization of
purchased intangibles, integration and transaction costs, restructuring
costs and other special items, increased 28 percent year over year to
$252 million. This increase was driven by higher sales volumes, benefits
from cost reduction initiatives and favorable geographic and product mix.
GAAP net income for the fourth quarter 2016 rose substantially year over
year to $54 million, or $0.28 per diluted share. Excluding special
items, fourth quarter adjusted net income increased 46 percent year over
year to $121 million. Adjusted earnings were $0.61 per diluted share, up
45 percent year over year.
Fourth quarter Connectivity Solutions segment sales increased 1 percent
to $681 million. Strong double-digit growth in North American FTTX
solutions was largely offset by lower sales in other geographic regions.
Foreign exchange rate changes negatively affected revenue by
approximately 1 percent from the year-ago period. Connectivity Solutions
GAAP operating income was $43 million in the quarter. Adjusted operating
income increased 19 percent year over year to $140 million, or 21
percent of segment sales. The 300 basis point year-over-year increase in
adjusted operating income margin was due primarily to benefits from cost
reduction initiatives and favorable geographic and product mix and
higher sales volumes.
Mobility Solutions segment sales increased 6 percent year over year to
$498 million primarily due to strong double-digit growth in North
America. Higher spending by certain North American wireless operators
was tempered by declines in other major geographic regions. Foreign
exchange rate changes had a negative impact of approximately 1 percent
on Mobility Solutions segment sales compared to the year-ago period.
Mobility Solutions GAAP operating income was $76 million. Adjusted
operating income for the Mobility segment increased 43 percent to $113
million, or 23 percent of segment sales. The almost 600 basis point
increase in adjusted operating income margin compared to the prior year
was driven by increased sales volumes, favorable geographic and product
mix and benefits from cost reduction initiatives.
Full Year 2016 Overview
For 2016, sales increased 29 percent to $4.92 billion primarily due to
the addition of the BNS business. Foreign exchange rates negatively
impacted sales by approximately 1 percent in 2016 compared to the prior
year.
GAAP operating income increased to $575 million and adjusted operating
income rose 44 percent to $1.05 billion versus prior year results,
primarily due to the BNS acquisition. The increase also reflected
favorable changes in geographic and product mix and benefits from cost
reduction initiations.
Connectivity Solutions segment sales increased 61 percent to $2.97
billion, primarily due to the addition of the BNS business. Foreign
exchange rate changes negatively impacted sales by approximately 1
percent in 2016 compared to the prior year. Connectivity Solutions GAAP
operating income was $291 million. Adjusted operating income for the
segment increased 81 percent to $632 million, or 21 percent of sales.
The year-over-year increase in adjusted operating income was driven by
the acquisition of the BNS business. The performance was also positively
affected by cost reduction initiatives and favorable geographic and
product mix.
Mobility Solutions segment sales declined slightly to $1.96 billion.
Robust growth in North America was more than offset by tepid
international spending and product rationalization. Foreign exchange
rates negatively impacted sales by approximately 1 percent in 2016
compared to the prior year. Mobility Solutions GAAP operating income was
$284 million. Adjusted operating income for the segment increased by 10
percent to $419 million, or 21 percent of sales. Despite lower sales
volumes, adjusted operating income rose due primarily to favorable
geographic and product mix and product rationalization.
Stock Repurchase
The board of directors has authorized the repurchase of up to $100
million of the company's outstanding common stock. The intent of the
repurchase program is to reduce dilution from grants under the various
equity-based award programs.
Any share repurchases under this authorization will be made in
accordance with applicable securities laws in either open market or
privately negotiated transactions. The company may also, from time to
time, enter into Rule 10b5-1 plans to facilitate repurchases of its
shares under this authorization. The method, timing and amount of shares
repurchased under the authorization will depend on several factors,
including capital and liquidity requirements, market conditions and
alternative uses for cash. The program does not obligate the company to
acquire any particular amount of its common stock, and the program may
be extended, modified, suspended or discontinued at any time. The
repurchase authorization expires on February 28, 2018.
Outlook
CommScope management provided the following first quarter and full year
2017 guidance.
First Quarter 2017 Guidance:
-
Revenue of $1.10 billion - $1.15 billion
-
Operating income of $105 million - $120 million
-
Adjusted operating income of $205 million - $225 million
-
Earnings per diluted share of $0.18 - $0.22, based on 199 million
weighted average diluted shares
-
Adjusted earnings per diluted share of $0.49 - $0.54
-
Adjusted effective tax rate of approximately 35 percent
Full Year 2017 Guidance:
-
Revenue of $5.00 billion - $5.15 billion
-
Operating income of $730 million - $770 million
-
Adjusted operating income of $1.11 billion - $1.16 billion
-
Earnings per diluted share of $1.66 - $1.73, based on 199 million
weighted average diluted shares
-
Adjusted earnings per diluted share of $2.90 - $3.00
-
Adjusted effective tax rate of approximately 35 percent
-
Cash flow from operations of more than $600 million
A reconciliation of GAAP to non-GAAP outlook is attached.
Conference Call, Webcast and Investor
Presentation
As previously announced, CommScope will host a conference call today at
8:30 a.m. ET in which management will discuss fourth quarter and full
year 2016 results. The conference call also will be webcast.
To participate in the conference call, dial 866-411-7395 (US and Canada
only) or +1 704-908-0381. The conference identification number is
49648222. Please plan to dial in 15 minutes before the start of the call
to facilitate a timely connection. The live, listen-only audio of the
call and corresponding presentation will be available through a link on CommScope's
Investor Relations page.
A webcast replay will be archived on CommScope's
website for a limited period of time following the conference call.
About CommScope
CommScope
(NASDAQ: COMM) helps companies around the world design, build and manage
their wired and wireless networks. Our vast portfolio of network
infrastructure includes some of the world's most robust and innovative
wireless and fiber optic solutions. Our talented and experienced global
team is driven to help customers increase bandwidth; maximize existing
capacity; improve network performance and availability; increase energy
efficiency; and simplify technology migration. You will find our
solutions in the largest buildings, venues and outdoor spaces; in data
centers and buildings of all shapes, sizes and complexity; at wireless
cell sites; in telecom central offices and cable headends; in FTTX
deployments; and in airports, trains, and tunnels. Vital networks around
the world run on CommScope solutions.
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 not a substitute
for GAAP measures and should be considered together with the GAAP
financial measures. As calculated, our non-GAAP measures may not be
comparable to other similarly titled measures of other companies. In
addition, CommScope management believes that these non-GAAP financial
measures allow investors to compare period to period more easily by
excluding items that could have a disproportionately negative or
positive impact on results in any particular period.
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 which reflect our
current views with respect to future events and financial performance.
These forward-looking statements are generally identified by their use
of such terms and phrases as "intend," "goal," "estimate," "expect,"
"project," "projections," "plans," "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 statements
are subject to various risks and uncertainties, many of which are
outside our control, including, without limitation, our ability to
integrate the BNS business on a timely and cost-effective manner; our
reliance on TE Connectivity for transition services for the BNS
business; our ability to realize expected growth opportunities and cost
savings from the BNS business; our dependence on customers' capital
spending on data and communication systems; concentration of sales among
a limited number of customers and channel partners; changes in
technology; industry competition and the ability to retain customers
through product innovation, introduction and marketing; risks associated
with our sales through channel partners; product quality or performance
issues and associated warranty claims; our ability to maintain effective
information management systems and to successfully implement major
systems initiatives; cyber-security incidents, including data security
breaches or computer viruses; the risk our global manufacturing
operations suffer production or shipping delays causing difficulty in
meeting customer demands; the risk that internal production capacity and
that of contract manufacturers may be insufficient to meet customer
demand or quality standards for our products; changes in cost and
availability of key raw materials, components and commodities and the
potential effect on customer pricing; risks associated with our
dependence on a limited number of key suppliers; changes in the laws and
policies of the U.S. affecting trade; the risk that contract
manufacturers we rely on encounter production, quality, financial or
other difficulties; our ability to fully realize anticipated benefits
from prior or future acquisitions or equity investments; potential
difficulties in realigning global manufacturing capacity and
capabilities among our global manufacturing facilities, including delays
or challenges related to removing, transporting or reinstalling
equipment, that may affect our ability to meet customer demands for
products; possible future restructuring actions; substantial
indebtedness and maintaining compliance with debt covenants; our ability
to incur additional indebtedness; our exposure to interest rate risk to
the extent of our variable rate debt; our ability to generate cash to
service our indebtedness; possible future impairment charges for fixed
or intangible assets, including goodwill; income tax rate variability
and ability to recover amounts recorded as value-added tax receivables;
our ability to attract and retain qualified key employees; labor unrest;
obligations under our defined benefit employee benefit plans may require
plan contributions in excess of current estimates; significant
international operations expose us to economic, political and other
risks, including the impact of variability in foreign exchange rates;
our ability to comply with governmental anti-corruption laws and
regulations and export and import controls worldwide; our ability to
compete in international markets due to export and import controls to
which we may be subject; cost of protecting or defending intellectual
property; costs and challenges of compliance with domestic and foreign
environmental laws; and other factors beyond our control. These and
other factors are discussed in greater detail in our 2016 Annual Report
on Form 10-K. Although the information contained in this press release
represents our best judgment as of the date of this press release based
on information currently available and reasonable assumptions, we can
give no assurance that the expectations will be attained or that any
deviation will not be material. Given these uncertainties, we caution
you not to place undue reliance on these forward-looking statements,
which speak only as of the date made. We are not undertaking any duty or
obligation to update this information to reflect developments or
information obtained after the date of this press release, except as
otherwise may be required by law.
|
CommScope Holding Company, Inc.
|
Condensed Consolidated Statements of Operations
|
(Unaudited -- In thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
2016
|
|
|
2015
|
|
Net sales
|
|
|
$
|
1,178,906
|
|
|
$
|
1,142,541
|
|
|
|
$
|
4,923,621
|
|
|
$
|
3,807,828
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
689,018
|
|
|
|
743,511
|
|
|
|
|
2,890,032
|
|
|
|
2,462,008
|
|
Selling, general and administrative
|
|
|
|
215,130
|
|
|
|
227,101
|
|
|
|
|
879,495
|
|
|
|
687,389
|
|
Research and development
|
|
|
|
48,161
|
|
|
|
49,146
|
|
|
|
|
200,715
|
|
|
|
135,964
|
|
Amortization of purchased intangible assets
|
|
|
|
72,932
|
|
|
|
76,905
|
|
|
|
|
297,202
|
|
|
|
220,602
|
|
Restructuring costs, net
|
|
|
|
18,372
|
|
|
|
18,855
|
|
|
|
|
42,875
|
|
|
|
29,488
|
|
Asset impairments
|
|
|
|
15,884
|
|
|
|
5,450
|
|
|
|
|
38,552
|
|
|
|
90,784
|
|
Total operating costs and expenses
|
|
|
|
1,059,497
|
|
|
|
1,120,968
|
|
|
|
|
4,348,871
|
|
|
|
3,626,235
|
|
Operating income
|
|
|
|
119,409
|
|
|
|
21,573
|
|
|
|
|
574,750
|
|
|
|
181,593
|
|
Other expense, net
|
|
|
|
(8,273
|
)
|
|
|
(7,505
|
)
|
|
|
|
(30,171
|
)
|
|
|
(13,061
|
)
|
Interest expense
|
|
|
|
(62,510
|
)
|
|
|
(75,909
|
)
|
|
|
|
(277,534
|
)
|
|
|
(234,661
|
)
|
Interest income
|
|
|
|
774
|
|
|
|
792
|
|
|
|
|
5,524
|
|
|
|
4,128
|
|
Income (loss) before income taxes
|
|
|
|
49,400
|
|
|
|
(61,049
|
)
|
|
|
|
272,569
|
|
|
|
(62,001
|
)
|
Income tax (expense) benefit
|
|
|
|
5,066
|
|
|
|
(14,098
|
)
|
|
|
|
(49,731
|
)
|
|
|
(8,874
|
)
|
Net income (loss)
|
|
|
$
|
54,466
|
|
|
$
|
(75,147
|
)
|
|
|
$
|
222,838
|
|
|
$
|
(70,875
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.28
|
|
|
$
|
(0.39
|
)
|
|
|
$
|
1.16
|
|
|
$
|
(0.37
|
)
|
Diluted (a)
|
|
|
$
|
0.28
|
|
|
$
|
(0.39
|
)
|
|
|
$
|
1.13
|
|
|
$
|
(0.37
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
193,305
|
|
|
|
191,040
|
|
|
|
|
192,470
|
|
|
|
189,876
|
|
Diluted (a)
|
|
|
|
197,401
|
|
|
|
191,040
|
|
|
|
|
196,459
|
|
|
|
189,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Calculation of diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) (basic and diluted)
|
|
|
$
|
54,466
|
|
|
$
|
(75,147
|
)
|
|
|
$
|
222,838
|
|
|
$
|
(70,875
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares (basic)
|
|
|
|
193,305
|
|
|
|
191,040
|
|
|
|
|
192,470
|
|
|
|
189,876
|
|
Dilutive effect of stock awards
|
|
|
|
4,096
|
|
|
|
-
|
|
|
|
|
3,989
|
|
|
|
-
|
|
Denominator (diluted)
|
|
|
|
197,401
|
|
|
|
191,040
|
|
|
|
|
196,459
|
|
|
|
189,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes to consolidated financial statements included in our Form
10-K.
|
|
|
|
CommScope Holding Company, Inc.
|
|
Consolidated Balance Sheets
|
|
(In thousands, except share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
2016
|
|
|
|
2015
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
428,228
|
|
|
|
$
|
562,884
|
|
Accounts receivable, less allowance for doubtful accounts of
$17,211 and $19,392, respectively
|
|
|
|
952,367
|
|
|
|
|
833,041
|
|
Inventories, net
|
|
|
|
473,267
|
|
|
|
|
441,815
|
|
Prepaid expenses and other current assets
|
|
|
|
139,902
|
|
|
|
|
166,900
|
|
Total current assets
|
|
|
|
1,993,764
|
|
|
|
|
2,004,640
|
|
Property, plant and equipment, net of accumulated depreciation
of $303,734 and $243,806, respectively
|
|
|
|
474,990
|
|
|
|
|
528,706
|
|
Goodwill
|
|
|
|
2,768,304
|
|
|
|
|
2,690,636
|
|
Other intangible assets, net
|
|
|
|
1,799,065
|
|
|
|
|
2,147,483
|
|
Other noncurrent assets
|
|
|
|
105,863
|
|
|
|
|
131,166
|
|
Total assets
|
|
|
$
|
7,141,986
|
|
|
|
$
|
7,502,631
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
415,921
|
|
|
|
$
|
300,829
|
|
Other accrued liabilities
|
|
|
|
429,397
|
|
|
|
|
371,743
|
|
Current portion of long-term debt
|
|
|
|
12,500
|
|
|
|
|
12,520
|
|
Total current liabilities
|
|
|
|
857,818
|
|
|
|
|
685,092
|
|
Long-term debt
|
|
|
|
4,549,510
|
|
|
|
|
5,231,131
|
|
Deferred income taxes
|
|
|
|
199,121
|
|
|
|
|
202,487
|
|
Pension and other postretirement benefit liabilities
|
|
|
|
31,671
|
|
|
|
|
37,102
|
|
Other noncurrent liabilities
|
|
|
|
109,782
|
|
|
|
|
124,099
|
|
Total liabilities
|
|
|
|
5,747,902
|
|
|
|
|
6,279,911
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, $.01 par value: Authorized shares: 200,000,000;
|
|
|
|
|
|
|
|
|
|
|
Issued and outstanding shares: None
|
|
|
|
-
|
|
|
|
|
-
|
|
Common stock, $0.01 par value: Authorized shares: 1,300,000,000;
|
|
|
|
|
|
|
|
|
|
|
Issued and outstanding shares: 193,837,437 and 191,368,727,
respectively
|
|
|
|
1,950
|
|
|
|
|
1,923
|
|
Additional paid-in capital
|
|
|
|
2,282,014
|
|
|
|
|
2,216,202
|
|
Retained earnings (accumulated deficit)
|
|
|
|
(589,556
|
)
|
|
|
|
(812,394
|
)
|
Accumulated other comprehensive loss
|
|
|
|
(285,113
|
)
|
|
|
|
(171,678
|
)
|
Treasury stock, at cost: 1,129,222 shares and 986,222 shares,
respectively
|
|
|
|
(15,211
|
)
|
|
|
|
(11,333
|
)
|
Total stockholders' equity
|
|
|
|
1,394,084
|
|
|
|
|
1,222,720
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
7,141,986
|
|
|
|
$
|
7,502,631
|
|
|
See notes to consolidated financial statements included in our
Form 10-K.
|
|
CommScope Holding Company, Inc.
|
|
Consolidated Statements of Cash Flows
|
|
(Unaudited -- In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
2016
|
|
|
2015
|
|
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
54,466
|
|
|
$
|
(75,147
|
)
|
|
|
$
|
222,838
|
|
|
$
|
(70,875
|
)
|
Adjustments to reconcile net income (loss) to net cash generated
by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
97,603
|
|
|
|
104,015
|
|
|
|
|
399,053
|
|
|
|
303,500
|
|
Equity-based compensation
|
|
|
|
8,385
|
|
|
|
7,610
|
|
|
|
|
35,006
|
|
|
|
28,665
|
|
Deferred income taxes
|
|
|
|
(6,639
|
)
|
|
|
(9,288
|
)
|
|
|
|
(100,878
|
)
|
|
|
(101,826
|
)
|
Asset impairments
|
|
|
|
15,884
|
|
|
|
5,450
|
|
|
|
|
38,552
|
|
|
|
90,784
|
|
Excess tax benefits from equity-based compensation
|
|
|
|
(6,910
|
)
|
|
|
(5,560
|
)
|
|
|
|
(14,993
|
)
|
|
|
(24,754
|
)
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(4,530
|
)
|
|
|
109,147
|
|
|
|
|
(100,867
|
)
|
|
|
(6,984
|
)
|
Inventories
|
|
|
|
(8,516
|
)
|
|
|
94,646
|
|
|
|
|
(31,996
|
)
|
|
|
162,164
|
|
Prepaid expenses and other current assets
|
|
|
|
(12,332
|
)
|
|
|
(31,693
|
)
|
|
|
|
14,273
|
|
|
|
(65,271
|
)
|
Accounts payable and other accrued liabilities
|
|
|
|
(46,263
|
)
|
|
|
(79,954
|
)
|
|
|
|
191,405
|
|
|
|
6,921
|
|
Other noncurrent liabilities
|
|
|
|
(16,872
|
)
|
|
|
(969
|
)
|
|
|
|
(35,950
|
)
|
|
|
(13,320
|
)
|
Other noncurrent assets
|
|
|
|
12,231
|
|
|
|
(2,258
|
)
|
|
|
|
(1,834
|
)
|
|
|
(11,966
|
)
|
Other
|
|
|
|
(5,534
|
)
|
|
|
325
|
|
|
|
|
(8,384
|
)
|
|
|
5,022
|
|
Net cash generated by operating activities
|
|
|
|
80,973
|
|
|
|
116,324
|
|
|
|
|
606,225
|
|
|
|
302,060
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment
|
|
|
|
(18,654
|
)
|
|
|
(17,079
|
)
|
|
|
|
(68,314
|
)
|
|
|
(56,501
|
)
|
Proceeds from sale of property, plant and equipment
|
|
|
|
149
|
|
|
|
3,198
|
|
|
|
|
4,084
|
|
|
|
3,417
|
|
Cash paid for acquisitions including purchase price adjustments,
net of cash acquired
|
|
|
|
3,384
|
|
|
|
(43,515
|
)
|
|
|
|
6,098
|
|
|
|
(3,000,991
|
)
|
Proceeds from sale of businesses and long-term investments
|
|
|
|
1
|
|
|
|
-
|
|
|
|
|
1,292
|
|
|
|
2,817
|
|
Other
|
|
|
|
57
|
|
|
|
195
|
|
|
|
|
2,253
|
|
|
|
646
|
|
Net cash used in investing activities
|
|
|
|
(15,063
|
)
|
|
|
(57,201
|
)
|
|
|
|
(54,587
|
)
|
|
|
(3,050,612
|
)
|
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt repaid
|
|
|
|
(172,889
|
)
|
|
|
(116,490
|
)
|
|
|
|
(718,914
|
)
|
|
|
(619,056
|
)
|
Long-term debt proceeds
|
|
|
|
19,764
|
|
|
|
-
|
|
|
|
|
19,764
|
|
|
|
3,246,875
|
|
Long-term debt financing costs
|
|
|
|
-
|
|
|
|
(429
|
)
|
|
|
|
-
|
|
|
|
(74,319
|
)
|
Proceeds from the issuance of common shares under equity-based
compensation plans
|
|
|
|
8,119
|
|
|
|
4,297
|
|
|
|
|
16,756
|
|
|
|
25,570
|
|
Excess tax benefits from equity-based compensation
|
|
|
|
6,910
|
|
|
|
5,560
|
|
|
|
|
14,993
|
|
|
|
24,754
|
|
Tax withholding payments for vested equity-based compensation
awards
|
|
|
|
(932
|
)
|
|
|
(698
|
)
|
|
|
|
(3,878
|
)
|
|
|
(698
|
)
|
Other
|
|
|
|
(3,094
|
)
|
|
|
-
|
|
|
|
|
(3,094
|
)
|
|
|
-
|
|
Net cash generated by (used in) financing activities
|
|
|
|
(142,122
|
)
|
|
|
(107,760
|
)
|
|
|
|
(674,373
|
)
|
|
|
2,603,126
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
(12,835
|
)
|
|
|
(6,441
|
)
|
|
|
|
(11,921
|
)
|
|
|
(21,011
|
)
|
Change in cash and cash equivalents
|
|
|
|
(89,047
|
)
|
|
|
(55,078
|
)
|
|
|
|
(134,656
|
)
|
|
|
(166,437
|
)
|
Cash and cash equivalents, beginning of period
|
|
|
|
517,275
|
|
|
|
617,962
|
|
|
|
|
562,884
|
|
|
|
729,321
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
428,228
|
|
|
$
|
562,884
|
|
|
|
$
|
428,228
|
|
|
$
|
562,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes to consolidated financial statements included in our Form
10-K.
|
|
|
|
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,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
2016
|
|
|
2015
|
|
Operating income, as reported
|
|
|
$
|
119.4
|
|
|
$
|
21.6
|
|
|
|
$
|
574.8
|
|
|
$
|
181.6
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of purchased intangible assets
|
|
|
|
72.9
|
|
|
|
76.9
|
|
|
|
|
297.2
|
|
|
|
220.6
|
|
Restructuring costs, net
|
|
|
|
18.4
|
|
|
|
18.9
|
|
|
|
|
42.9
|
|
|
|
29.5
|
|
Equity-based compensation
|
|
|
|
8.4
|
|
|
|
7.6
|
|
|
|
|
35.0
|
|
|
|
28.7
|
|
Asset impairments
|
|
|
|
15.9
|
|
|
|
5.5
|
|
|
|
|
38.6
|
|
|
|
90.8
|
|
Integration and transaction costs
|
|
|
|
17.2
|
|
|
|
14.8
|
|
|
|
|
62.3
|
|
|
|
96.9
|
|
Purchase accounting adjustments
|
|
|
|
-
|
|
|
|
51.2
|
|
|
|
|
0.6
|
|
|
|
81.7
|
|
Total adjustments to operating income
|
|
|
|
132.8
|
|
|
|
174.9
|
|
|
|
|
476.6
|
|
|
|
548.2
|
|
Non-GAAP adjusted operating income
|
|
|
$
|
252.2
|
|
|
$
|
196.4
|
|
|
|
$
|
1,051.4
|
|
|
$
|
729.8
|
|
Income (loss) before income taxes, as reported
|
|
|
$
|
49.4
|
|
|
$
|
(61.0
|
)
|
|
|
$
|
272.6
|
|
|
$
|
(62.0
|
)
|
Income tax (expense) benefit, as reported
|
|
|
|
5.1
|
|
|
|
(14.1
|
)
|
|
|
|
(49.7
|
)
|
|
|
(8.9
|
)
|
Net income (loss), as reported
|
|
|
$
|
54.5
|
|
|
$
|
(75.1
|
)
|
|
|
$
|
222.8
|
|
|
$
|
(70.9
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total pretax adjustments to operating income
|
|
|
|
132.8
|
|
|
|
174.9
|
|
|
|
|
476.6
|
|
|
|
548.2
|
|
Pretax amortization of deferred financing costs & OID (1)
|
|
|
|
4.4
|
|
|
|
5.2
|
|
|
|
|
21.4
|
|
|
|
22.3
|
|
Pretax acquisition related interest (1)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
29.2
|
|
Pretax loss on debt transactions (2)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
17.8
|
|
|
|
-
|
|
Pretax net investment gains (2)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(0.5
|
)
|
|
|
(2.7
|
)
|
Tax effects of adjustments and other tax items (3)
|
|
|
|
(71.1
|
)
|
|
|
(22.2
|
)
|
|
|
|
(218.9
|
)
|
|
|
(164.4
|
)
|
Non-GAAP adjusted net income
|
|
|
$
|
120.6
|
|
|
$
|
82.8
|
|
|
|
$
|
519.2
|
|
|
$
|
361.7
|
|
Diluted EPS, as reported
|
|
|
$
|
0.28
|
|
|
$
|
(0.39
|
)
|
|
|
$
|
1.13
|
|
|
$
|
(0.37
|
)
|
Non-GAAP adjusted diluted EPS (4)
|
|
|
$
|
0.61
|
|
|
$
|
0.42
|
|
|
|
$
|
2.64
|
|
|
$
|
1.86
|
|
(1) Included in interest expense.
|
(2) Included in other expense, net.
|
(3) The tax rates applied to adjustments reflect the tax expense or
benefit based on the tax jurisdiction of the entity generating the
adjustment. There are certain items for which we expect little or no
tax effect. Adjustments for 2016 reflect the exclusion of a decrease
in a valuation allowance while 2015 adjustments reflect the
exclusion of an increase in a valuation allowance.
|
(4) Diluted shares used in the calculation of non-GAAP adjusted
diluted EPS for the three months ended December 31, 2016 and 2015
are 197.4 million and 195.1 million, respectively. Diluted shares
used in the calculation of non-GAAP adjusted diluted EPS for the
years ended December 31, 2016 and 2015 are 196.5 million and 194.2
million, respectively.
|
|
Note: Components may not sum to total due to rounding
|
See Description of Non-GAAP Financial Measures
|
|
CommScope Holding Company, Inc.
|
Sales by Region
|
(Unaudited -- In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
Q4 2016
|
|
|
|
Q4 2015
|
|
|
|
YOY
|
North America
|
|
|
|
$
|
646.1
|
|
|
|
$
|
571.0
|
|
|
|
|
13.2
|
|
%
|
Europe, Middle East and Africa
|
|
|
|
|
240.1
|
|
|
|
|
248.6
|
|
|
|
|
(3.4
|
)
|
|
Asia Pacific
|
|
|
|
|
224.8
|
|
|
|
|
244.5
|
|
|
|
|
(8.1
|
)
|
|
Central and Latin America
|
|
|
|
|
67.9
|
|
|
|
|
78.4
|
|
|
|
|
(13.4
|
)
|
|
Total Net Sales
|
|
|
|
$
|
1,178.9
|
|
|
|
$
|
1,142.5
|
|
|
|
|
3.2
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
Full Year
|
|
|
|
Full Year
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
YOY
|
North America
|
|
|
|
$
|
2,748.8
|
|
|
|
$
|
1,968.5
|
|
|
|
|
39.6
|
|
%
|
Europe, Middle East and Africa
|
|
|
|
|
933.5
|
|
|
|
|
781.7
|
|
|
|
|
19.4
|
|
|
Asia Pacific
|
|
|
|
|
961.0
|
|
|
|
|
781.9
|
|
|
|
|
22.9
|
|
|
Central and Latin America
|
|
|
|
|
280.3
|
|
|
|
|
275.7
|
|
|
|
|
1.7
|
|
|
Total Net Sales
|
|
|
|
$
|
4,923.6
|
|
|
|
$
|
3,807.8
|
|
|
|
|
29.3
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CommScope Holding Company, Inc.
|
Segment Information
|
(Unaudited -- In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by Segment (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
Q4 2016
|
|
|
Q3 2016
|
|
|
Q4 2015
|
|
|
Sequential
|
|
YOY
|
Connectivity Solutions
|
|
$
|
681.3
|
|
|
$
|
819.2
|
|
|
$
|
671.5
|
|
|
|
(16.8
|
)
|
%
|
|
|
1.5
|
|
%
|
Mobility Solutions
|
|
|
497.6
|
|
|
|
474.7
|
|
|
|
471.0
|
|
|
|
4.8
|
|
%
|
|
|
5.6
|
|
%
|
Total Net Sales
|
|
$
|
1,178.9
|
|
|
$
|
1,293.9
|
|
|
$
|
1,142.5
|
|
|
|
(8.9
|
)
|
%
|
|
|
3.2
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjusted Operating Income by
Segment (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
Q4 2016
|
|
|
Q3 2016
|
|
|
Q4 2015
|
|
|
Sequential
|
|
YOY
|
Connectivity Solutions
|
|
$
|
139.5
|
|
|
$
|
189.5
|
|
|
$
|
117.4
|
|
|
|
(26.4
|
)
|
%
|
|
|
18.8
|
|
%
|
Mobility Solutions
|
|
|
112.7
|
|
|
|
107.2
|
|
|
|
78.9
|
|
|
|
5.1
|
|
%
|
|
|
42.8
|
|
%
|
Total Non-GAAP Adjusted Operating Income
|
|
$
|
252.2
|
|
|
$
|
296.7
|
|
|
$
|
196.4
|
|
|
|
(15.0
|
)
|
%
|
|
|
28.4
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by Segment (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
YOY
|
|
|
|
|
|
Connectivity Solutions
|
|
|
|
|
|
$
|
2,965.5
|
|
|
$
|
1,841.7
|
|
|
|
61.0
|
|
%
|
|
|
|
|
|
Mobility Solutions
|
|
|
|
|
|
|
1,958.1
|
|
|
|
1,966.1
|
|
|
|
(0.4
|
)
|
%
|
|
|
|
|
|
Total Net Sales
|
|
|
|
|
|
$
|
4,923.6
|
|
|
$
|
3,807.8
|
|
|
|
29.3
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjusted Operating Income by
Segment (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
YOY
|
|
|
|
|
|
Connectivity Solutions
|
|
|
|
|
|
$
|
632.3
|
|
|
$
|
349.9
|
|
|
|
80.7
|
|
%
|
|
|
|
|
|
Mobility Solutions
|
|
|
|
|
|
|
419.1
|
|
|
|
379.9
|
|
|
|
10.3
|
|
%
|
|
|
|
|
|
Total Non-GAAP Adjusted Operating Income
|
|
|
|
|
|
$
|
1,051.4
|
|
|
$
|
729.8
|
|
|
|
44.1
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) As of January 1, 2016, the Company began reporting in two
operating segments: Connectivity Solutions and Mobility Solutions.
All prior period amounts have been restated to reflect these
operating segment changes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components may not sum to total due to rounding
|
See Description of Non-GAAP Financial Measures
|
|
CommScope Holding Company, Inc.
|
Pro Forma Sales
|
(Unaudited -- In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma Sales (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
|
|
|
|
Q1 2015
|
|
|
Q2 2015
|
|
|
Q3 2015
|
|
|
Q4 2015 (2)
|
|
|
2015
|
Legacy CommScope
|
|
|
$
|
825.4
|
|
|
$
|
867.3
|
|
|
$
|
831.5
|
|
|
$
|
754.0
|
|
|
$
|
3,278.2
|
Legacy BNS
|
|
|
|
424.9
|
|
|
|
471.0
|
|
|
|
415.8
|
|
|
|
388.5
|
|
|
|
1,700.2
|
Total Pro Forma Net Sales
|
|
|
$
|
1,250.3
|
|
|
$
|
1,338.3
|
|
|
$
|
1,247.3
|
|
|
$
|
1,142.5
|
|
|
$
|
4,978.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma Sales by Segment (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
|
|
|
|
Q1 2015
|
|
|
Q2 2015
|
|
|
Q3 2015
|
|
|
Q4 2015
|
|
|
2015
|
Connectivity Solutions
|
|
|
$
|
717.6
|
|
|
$
|
781.2
|
|
|
$
|
750.4
|
|
|
$
|
671.5
|
|
|
$
|
2,920.7
|
Mobility Solutions
|
|
|
|
532.7
|
|
|
|
557.0
|
|
|
|
496.9
|
|
|
|
471.0
|
|
|
|
2,057.6
|
Total Pro Forma Net Sales
|
|
|
$
|
1,250.3
|
|
|
$
|
1,338.3
|
|
|
$
|
1,247.3
|
|
|
$
|
1,142.5
|
|
|
$
|
4,978.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) As of January 1, 2016, the Company began reporting in two
operating segments: Connectivity Solutions and Mobility Solutions.
All prior period amounts have been restated to reflect these
operating segment changes.
|
(2) As reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components may not sum to total due to rounding
|
See Description of Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The unaudited pro forma amounts are presented as though the BNS
acquisition had been completed as of January 1, 2015. This pro forma
information has not been prepared in accordance with U.S. generally
accepted accounting principles. Accordingly, the pro forma financial
information should not be relied upon as being indicative of the
results that would have been realized.
|
|
CommScope Holding Company, Inc.
|
|
Reconciliation of GAAP to Non-GAAP Adjusted Operating Income by
Segment
|
|
(Unaudited -- In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2016 Non-GAAP
Adjusted Operating Income Reconciliation by Segment (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Connectivity
|
|
|
|
Mobility
|
|
|
|
|
|
|
|
|
Solutions
|
|
|
|
Solutions
|
|
|
|
Total
|
|
Operating income, as reported
|
|
|
$
|
291.2
|
|
|
|
$
|
283.6
|
|
|
|
$
|
574.8
|
|
Amortization of purchased intangible assets
|
|
|
|
195.9
|
|
|
|
|
101.3
|
|
|
|
|
297.2
|
|
Restructuring costs, net
|
|
|
|
27.1
|
|
|
|
|
15.8
|
|
|
|
|
42.9
|
|
Equity-based compensation
|
|
|
|
19.8
|
|
|
|
|
15.2
|
|
|
|
|
35.0
|
|
Asset impairments
|
|
|
|
38.6
|
|
|
|
|
-
|
|
|
|
|
38.6
|
|
Integration and transaction costs
|
|
|
|
59.1
|
|
|
|
|
3.3
|
|
|
|
|
62.3
|
|
Purchase accounting adjustments
|
|
|
|
0.6
|
|
|
|
|
-
|
|
|
|
|
0.6
|
|
Non-GAAP adjusted operating income
|
|
|
$
|
632.3
|
|
|
|
$
|
419.1
|
|
|
|
$
|
1,051.4
|
|
Non-GAAP adjusted operating margin %
|
|
|
|
21.3
|
%
|
|
|
|
21.4
|
%
|
|
|
|
21.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2015 Non-GAAP
Adjusted Operating Income Reconciliation by Segment (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Connectivity
|
|
|
|
Mobility
|
|
|
|
|
|
|
|
|
Solutions
|
|
|
|
Solutions
|
|
|
|
Total
|
|
Operating income, as reported
|
|
|
$
|
16.1
|
|
|
|
$
|
165.5
|
|
|
|
$
|
181.6
|
|
Amortization of purchased intangible assets
|
|
|
|
124.0
|
|
|
|
|
96.6
|
|
|
|
|
220.6
|
|
Restructuring costs, net
|
|
|
|
16.9
|
|
|
|
|
12.6
|
|
|
|
|
29.5
|
|
Equity-based compensation
|
|
|
|
16.1
|
|
|
|
|
12.6
|
|
|
|
|
28.7
|
|
Asset impairments
|
|
|
|
16.3
|
|
|
|
|
74.4
|
|
|
|
|
90.8
|
|
Integration and transaction costs
|
|
|
|
82.3
|
|
|
|
|
14.6
|
|
|
|
|
96.9
|
|
Purchase accounting adjustments
|
|
|
|
78.2
|
|
|
|
|
3.6
|
|
|
|
|
81.7
|
|
Non-GAAP adjusted operating income
|
|
|
$
|
349.9
|
|
|
|
$
|
379.9
|
|
|
|
$
|
729.8
|
|
Non-GAAP adjusted operating margin %
|
|
|
|
19.0
|
%
|
|
|
|
19.3
|
%
|
|
|
|
19.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) As of January 1, 2016, the Company began reporting in two
operating segments: Connectivity Solutions and Mobility Solutions.
All prior period amounts have been restated to reflect these
operating segment changes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components may not sum to total due to rounding
|
|
See Description of Non-GAAP Financial Measures
|
|
|
|
CommScope Holding Company, Inc.
|
|
Reconciliation of GAAP to Non-GAAP Adjusted Operating Income by
Segment
|
|
(Unaudited -- In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter 2016 Non-GAAP Adjusted
Operating Income Reconciliation by Segment (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Connectivity
|
|
|
|
Mobility
|
|
|
|
|
|
|
|
|
Solutions
|
|
|
|
Solutions
|
|
|
|
Total
|
|
Operating income, as reported
|
|
|
$
|
43.3
|
|
|
|
$
|
76.1
|
|
|
|
$
|
119.4
|
|
Amortization of purchased intangible assets
|
|
|
|
47.7
|
|
|
|
|
25.3
|
|
|
|
72.9
|
|
Restructuring costs, net
|
|
|
|
11.0
|
|
|
|
|
7.3
|
|
|
|
18.4
|
|
Equity-based compensation
|
|
|
|
4.7
|
|
|
|
|
3.7
|
|
|
|
|
8.4
|
|
Asset impairments
|
|
|
|
15.9
|
|
|
|
|
-
|
|
|
|
|
15.9
|
|
Integration and transaction costs
|
|
|
|
16.9
|
|
|
|
|
0.3
|
|
|
|
|
17.2
|
|
Non-GAAP adjusted operating income
|
|
|
$
|
139.5
|
|
|
|
$
|
112.7
|
|
|
|
$
|
252.2
|
|
Non-GAAP adjusted operating margin %
|
|
|
|
20.5
|
%
|
|
|
|
22.7
|
%
|
|
|
|
21.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter 2016 Non-GAAP Adjusted
Operating Income Reconciliation by Segment (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Connectivity
|
|
|
|
Mobility
|
|
|
|
|
|
|
|
|
Solutions
|
|
|
|
Solutions
|
|
|
|
Total
|
|
Operating income, as reported
|
|
|
$
|
104.8
|
|
|
|
$
|
75.9
|
|
|
|
$
|
180.7
|
|
Amortization of purchased intangible assets
|
|
|
|
49.4
|
|
|
|
|
25.2
|
|
|
|
|
74.6
|
|
Restructuring costs, net
|
|
|
|
8.4
|
|
|
|
|
2.5
|
|
|
|
|
10.8
|
|
Equity-based compensation
|
|
|
|
4.9
|
|
|
|
|
3.5
|
|
|
|
|
8.4
|
|
Asset impairments
|
|
|
|
7.4
|
|
|
|
|
-
|
|
|
|
|
7.4
|
|
Integration and transaction costs
|
|
|
|
14.6
|
|
|
|
|
0.2
|
|
|
|
|
14.7
|
|
Non-GAAP adjusted operating income
|
|
|
$
|
189.5
|
|
|
|
$
|
107.2
|
|
|
|
$
|
296.7
|
|
Non-GAAP adjusted operating margin %
|
|
|
|
23.1
|
%
|
|
|
|
22.6
|
%
|
|
|
|
22.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter 2015 Non-GAAP Adjusted
Operating Income Reconciliation by Segment (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Connectivity
|
|
|
|
Mobility
|
|
|
|
|
|
|
|
|
Solutions
|
|
|
|
Solutions
|
|
|
|
Total
|
|
Operating income (loss), as reported
|
|
|
$
|
(17.9
|
)
|
|
|
$
|
39.5
|
|
|
|
$
|
21.6
|
|
Amortization of purchased intangible assets
|
|
|
|
49.9
|
|
|
|
|
27.0
|
|
|
|
|
76.9
|
|
Restructuring costs, net
|
|
|
|
11.8
|
|
|
|
|
7.1
|
|
|
|
|
18.9
|
|
Equity-based compensation
|
|
|
|
5.7
|
|
|
|
|
1.9
|
|
|
|
|
7.6
|
|
Asset impairments
|
|
|
|
5.5
|
|
|
|
|
-
|
|
|
|
|
5.5
|
|
Integration and transaction costs
|
|
|
|
13.7
|
|
|
|
|
1.1
|
|
|
|
|
14.8
|
|
Purchase accounting adjustments
|
|
|
|
48.9
|
|
|
|
|
2.2
|
|
|
|
|
51.2
|
|
Non-GAAP adjusted operating income
|
|
|
$
|
117.4
|
|
|
|
$
|
78.9
|
|
|
|
$
|
196.4
|
|
Non-GAAP adjusted operating margin %
|
|
|
|
17.5
|
%
|
|
|
|
16.8
|
%
|
|
|
|
17.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) As of January 1, 2016, the Company began reporting in two
operating segments: Connectivity Solutions and Mobility Solutions.
All prior period amounts have been restated to reflect these
operating segment changes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components may not sum to total due to rounding
|
|
See Description of Non-GAAP Financial Measures
|
|
|
|
CommScope Holding Company, Inc.
|
|
Adjusted Free Cash Flow
|
|
(Unaudited -- In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Free Cash Flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
|
|
|
|
Full Year
|
|
|
|
|
|
|
Q4 2016
|
|
|
Q4 2015
|
|
|
|
2016
|
|
|
|
2015
|
|
Cash flow from operations
|
|
|
|
|
$
|
81.0
|
|
|
$
|
116.3
|
|
|
|
$
|
606.2
|
|
|
|
$
|
302.1
|
|
Integration and transaction costs
|
|
|
|
|
|
17.0
|
|
|
|
24.5
|
|
|
|
|
64.8
|
|
|
|
|
96.1
|
|
Capital expenditures
|
|
|
|
|
|
(18.7
|
)
|
|
|
(17.1
|
)
|
|
|
|
(68.3
|
)
|
|
|
|
(56.5
|
)
|
Capex related to BNS integration
|
|
|
|
|
|
1.2
|
|
|
|
1.7
|
|
|
|
|
6.1
|
|
|
|
|
12.7
|
|
Redemption premium
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
17.8
|
|
|
|
|
-
|
|
Adjusted Free Cash Flow
|
|
|
|
|
$
|
80.5
|
|
|
$
|
125.4
|
|
|
|
$
|
626.6
|
|
|
|
$
|
354.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Description of Non-GAAP Financial Measures
|
|
|
|
CommScope Holding Company, Inc.
|
|
Quarterly Adjusted Operating Income and Adjusted EBITDA
|
|
(Unaudited -- In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP to Non-GAAP Adjusted Operating
Income and Adjusted EBITDA Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2016
|
|
|
|
Q3 2016
|
|
|
|
Q2 2016
|
|
|
|
Q1 2016
|
|
|
|
Q4 2015
|
|
Operating income, as reported
|
|
|
$
|
119.4
|
|
|
|
$
|
180.7
|
|
|
|
$
|
183.9
|
|
|
|
$
|
90.7
|
|
|
|
$
|
21.6
|
|
Amortization of purchased intangible assets
|
|
|
|
72.9
|
|
|
|
|
74.6
|
|
|
|
|
76.0
|
|
|
|
|
73.6
|
|
|
|
|
76.9
|
|
Restructuring costs, net
|
|
|
|
18.4
|
|
|
|
|
10.8
|
|
|
|
|
7.6
|
|
|
|
|
6.1
|
|
|
|
|
18.9
|
|
Equity-based compensation
|
|
|
|
8.4
|
|
|
|
|
8.4
|
|
|
|
|
9.4
|
|
|
|
|
8.8
|
|
|
|
|
7.6
|
|
Asset impairments
|
|
|
|
15.9
|
|
|
|
|
7.4
|
|
|
|
|
-
|
|
|
|
|
15.3
|
|
|
|
|
5.5
|
|
Integration and transaction costs
|
|
|
|
17.2
|
|
|
|
|
14.7
|
|
|
|
|
14.5
|
|
|
|
|
15.9
|
|
|
|
|
14.8
|
|
Purchase accounting adjustments
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(0.4
|
)
|
|
|
|
1.0
|
|
|
|
|
51.2
|
|
Non-GAAP adjusted operating income
|
|
|
$
|
252.2
|
|
|
|
$
|
296.7
|
|
|
|
$
|
291.0
|
|
|
|
$
|
211.4
|
|
|
|
$
|
196.4
|
|
Non-GAAP adjusted operating margin %
|
|
|
|
21.4
|
%
|
|
|
|
22.9
|
%
|
|
|
|
22.3
|
%
|
|
|
|
18.5
|
%
|
|
|
|
17.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
20.2
|
|
|
|
|
20.2
|
|
|
|
|
20.4
|
|
|
|
|
19.6
|
|
|
|
|
21.9
|
|
Non-GAAP adjusted EBITDA
|
|
|
$
|
272.5
|
|
|
|
$
|
316.9
|
|
|
|
$
|
311.4
|
|
|
|
$
|
231.1
|
|
|
|
$
|
218.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components may not sum to total due to rounding
|
|
See Description of Non-GAAP Financial Measures
|
|
|
|
CommScope Holding Company, Inc.
|
Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures
|
(Unaudited -- In millions, except per share amounts)
|
|
|
|
|
|
|
|
Outlook
|
|
|
|
Three Months
|
|
|
|
|
|
Ended
|
|
|
|
|
|
March 31,
|
|
Full Year
|
|
|
|
2017
|
|
2017
|
|
|
|
|
|
|
Operating income
|
|
|
$105 - $120
|
|
$730 - $770
|
Adjustments:
|
|
|
|
|
|
Amortization of purchased intangible assets
|
|
|
$70
|
|
$270
|
Equity-based compensation
|
|
|
$10
|
|
$45
|
Restructuring costs, integration costs and other (1)
|
|
|
$20 - $25
|
|
$65 - $75
|
Total adjustments to operating income
|
|
|
$100 - $105
|
|
$380 - $390
|
Non-GAAP adjusted operating income
|
|
|
$205 - $225
|
|
$1,110 - $1,160
|
|
|
|
|
|
|
Diluted earnings per share
|
|
|
$0.18 - $0.22
|
|
$1.66 - $1.73
|
Adjustments (2):
|
|
|
|
|
|
Total adjustments to operating income
|
|
|
$0.30 - $0.31
|
|
$1.23 - $1.25
|
Debt-related costs and other special items (3)
|
|
|
$0.01
|
|
$0.01 - $0.02
|
Non-GAAP adjusted diluted earnings per share
|
|
|
$0.49 - $0.54
|
|
$2.90 - $3.00
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reflects projections for restructuring costs, integration costs
and other special items. Actual adjustments may vary from
projections.
|
(2) The tax rates applied to projected adjustments reflect the tax
expense or benefit based on the expected tax jurisdiction of the
entity generating the projected adjustments. There are certain items
for which we expect little or no tax effect.
|
(3) Reflects projections for amortization of debt issuance costs,
loss on debt extinguishment, net investment gains or losses and
other tax items. Actual adjustments may vary from projections.
|
|
|
|
|
|
|
Our actual results may be impacted by additional events for which
information is not currently available, such as additional
restructuring activities, asset impairments, debt extinguishments,
additional transaction and integration costs, foreign exchange rate
fluctuations and other gains or losses related to events that are
not currently known or measurable.
|
|
|
|
|
|
|
See Caution Regarding Forward-Looking Statements and Description of
Non-GAAP Financial Measures.
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170223005114/en/
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