CommScope Holding Company, Inc. (NASDAQ: COMM), reported results for the quarter ended September 30, 2019 with third quarter net sales of $2.38 billion, an increase of 106.9 percent compared to $1.15 billion during the same period in the prior year. The third quarter of 2019 included sales of $1.34 billion from ARRIS, which was acquired in April 2019. ARRIS sales in the third quarter include a $14 million reduction of revenue related to deferred revenue purchase accounting adjustments.
CommScope generated a net loss of ($156.5) million, or $(0.88) per basic share, a decrease from the prior year period’s net income of $63.8 million, or $0.33 per diluted share. Non-GAAP adjusted net income for the third quarter of 2019 was $126.9 million, or $0.55 per diluted share, versus $114.5 million, or $0.59 per diluted share, in the third quarter of 2018.
- Net sales of $2.38 billion
- GAAP operating loss of $(50.8) million
- GAAP net loss of $(0.88) per basic share compared to net income of $0.33 per diluted share
- Non-GAAP adjusted EBITDA (excluding special items) increased 55.5% to $369.8 million
- Non-GAAP adjusted net income (excluding special items) of $0.55 per diluted share decreased 6.8%
- GAAP cash flow from operations of $522.1 million
- Non-GAAP adjusted free cash flow of $535 million
- $200 million of notes due 2021 redeemed in August and an additional $200 million of 2021 notes redeemed in the fourth quarter
“We are pleased to deliver third quarter adjusted EBITDA at the high end, and adjusted earnings per share above the high end of our guidance,” said President/Chief Executive Officer Eddie Edwards. “Despite a challenging customer environment, our results reflect the company’s ability to manage near-term headwinds while maximizing profitability. In the third quarter, we generated over $500 million of adjusted free cash flow, enabling $400 million of early debt repayment in the third quarter and beginning of the fourth quarter. These results illustrate our ability to act with agility and meet our short-term and long-term financial obligations despite broader industry headwinds.”
November 8, 2019
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