CommScope Reports Fourth Quarter and Full Year 2024 Results

Fourth Quarter Highlights

   -- 
 Net sales of $1.17 billion 
 
 
   -- 
 GAAP loss from continuing operations of $65.2 million 
 
 
   -- 
 Non-GAAP adjusted EBITDA of $223.1 million (1) 
 
 
   -- 
 Core non-GAAP adjusted EBITDA of $240.4 million* (1) 
 
 
   -- 
 Cash flow generated by operations of $277.8 million and free cash flow 
      of $270.5 million (1) (2) 
 

Full Year Highlights

   -- 
 Net sales of $4.21 billion 
 
 
   -- 
 GAAP loss from continuing operations of $461.0 million 
 
 
   -- 
 Non-GAAP adjusted EBITDA of $700.2 million (1) 
 
 
   -- 
 Core non-GAAP adjusted EBITDA of $756.4 million* (1) 
 
 
   -- 
 Cash flow generated by operations of $273.1 million and free cash flow 
      of $247.8 million (1) (2) 
 

* Core financial measures reflect the results of the Connectivity and Cable Solutions $(CCS)$, Networking, Intelligent Cellular and Security Solutions (NICS), and Access Network Solutions (ANS) segments, in the aggregate, and exclude general corporate costs that were previously allocated to the Outdoor Wireless Networks (OWN) segment, Distributed Antenna Systems (DAS) business unit and Home Networks (Home) segment. These indirect costs are classified as continuing operations, since they were not directly attributable to these discontinued operations. See the segment comparison tables below showing the aggregation of the Core financial measures.

(1) See "Non-GAAP Financial Measures" and "Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures" below.

(2) The cash flows related to discontinued operations have not been segregated. Accordingly, this cash flow information includes the results of continuing and discontinued operations.

CLAREMONT, N.C.--(BUSINESS WIRE)--February 26, 2025-- 

CommScope Holding Company, Inc. $(COMM)$, a global leader in network connectivity solutions, today reported results for the quarter and year ended December 31, 2024.

 
                Summary of Consolidated Results 
                       Q4                   Q4          % Change 
                      2024               2023 (1)         YOY 
                ----------------      ---------------   -------- 
                    (in millions, except per share amounts) 
Net sales       $        1,169.1      $         923.1       26.6% 
GAAP loss from 
 continuing 
 operations                (65.2)              (414.0)     (84.2) 
GAAP loss from 
 continuing 
 operations 
 per share                 (0.38)               (2.02)     (81.2) 
Non-GAAP 
 adjusted 
 EBITDA (2)                223.1                119.4       86.9 
Core non-GAAP 
 adjusted 
 EBITDA (2) 
 (3)                       240.4                142.5       68.7 
Non-GAAP 
 adjusted net 
 income (loss) 
 per diluted 
 share (2)                  0.18                (0.34)        NM 
 
 
                   Full Year          Full Year     % Change 
                      2024            2023 (1)        YOY 
               ------------------   -------------   -------- 
                  (in millions, except per share amounts) 
Net sales      $          4,205.8   $     4,565.2       (7.9)% 
GAAP loss 
 from 
 continuing 
 operations                (461.0)       (1,095.8)     (57.9) 
GAAP loss 
 from 
 continuing 
 operations 
 per share                  (2.46)          (5.49)     (55.2) 
Non-GAAP 
 adjusted 
 EBITDA (2)                 700.2           664.3        5.4 
Core non-GAAP 
 adjusted 
 EBITDA (2) 
 (3)                        756.4           756.4         -- 
Non-GAAP 
 adjusted net 
 loss per 
 diluted 
 share (2)                  (0.03)          (0.37)     (91.9) 
 
NM -- Not meaningful 
(1) Certain amounts have been adjusted to reflect the 
 correction of immaterial errors as described in the Annual 
 Report on Form 10-K. 
(2) See "Non-GAAP Financial Measures" below. 
(3) Core financial measures reflect the results of the CCS, 
 NICS (excluding DAS) and ANS segments, in the aggregate, 
 and exclude general corporate costs that were previously 
 allocated to the OWN segment, DAS business unit and Home 
 segment, since these costs were not directly attributable 
 to these discontinued operations. Beginning in the first 
 quarter of 2024, these costs related to the Home segment 
 have been reallocated to the remaining segments. These 
 costs related to the OWN segment and DAS business unit will 
 be reallocated to the remaining segments beginning in the 
 first quarter of 2025. 
 

"2024 marked a transitional year for CommScope. Despite a challenging start, and volatile market conditions, we stayed committed to what we could control to improve company performance and profitability with sequential Core quarterly adjusted EBITDA improvement throughout the year. For the fourth quarter, Core CommScope reported net sales of $1.17 billion, an increase of 27% from the prior year and delivered adjusted EBITDA of $240 million, an improvement of 69% year-over-year. Fourth quarter adjusted EBITDA as a percentage of revenues was 20.6%, a year-over-year improvement of 510 basis points. Supported by our investments in production capacity, the CCS segment led the way with growth in all businesses, with the strongest growth in hyperscale and cloud data centers to support GenAI datacenter builds across the world," said Chuck Treadway, President and Chief Executive Officer.

"For the full year 2024, Core CommScope reported net sales of $4.21 billion declining 8% from the prior year but delivered adjusted EBITDA of $756 million which remained flat year over year. With improvement throughout the year, we are well positioned as we move into 2025. Our 2025 annual guideposts of Core adjusted EBITDA are in the range of $1.00 to $1.05 billion," said Kyle Lorentzen, Chief Financial Officer.

Free cash flow for the fourth quarter was $271 million driven by stronger EBITDA. For the full year 2024, free cash flow was $248 million. We ended the year with a strong liquidity position of $1.1 billion including $663 million of Cash and approximately $449 million of ABL availability.

As previously announced, in the fourth quarter of 2024, CommScope made significant progress on our debt position by refinancing a portion of our debt resulting in pushing out our 2025 and a portion of the 2026 debt maturities to 2029 and 2031. The debt refinancing, coupled with the sale of our OWN and DAS businesses that closed on January 31, 2025 and subsequent repayment of approximately $2 billion of debt with the proceeds, clearly puts us in a stronger position to focus on business growth, free cash flow generation and deleveraging.

On January 31, 2025, the Company completed the previously announced sale of the OWN segment and the DAS business unit of the NICS segment to Amphenol Corporation. As a result of the transaction, unless otherwise noted, these financial results relate to CommScope's continuing operations based on the following remaining three operating segments: CCS, NICS and ANS. For all periods presented, amounts have been recast to reflect these changes.

Certain amounts have been adjusted to reflect the correction of immaterial errors as described in the Annual Report on Form 10-K and are labeled "As Adjusted" within the tables below.

Fourth Quarter Results and Comparisons

Net sales in the fourth quarter of 2024 increased 26.6% year-over-year to $1.17 billion due to higher net sales in all segments. Net sales increased across all regions, except the Caribbean and Latin America $(CALA)$ region, in the fourth quarter of 2024.

Loss from continuing operations of $65.2 million, or $(0.38) per share, in the fourth quarter of 2024, was less of a loss compared to the prior year period's loss from continuing operations of $414.0 million, or $(2.02) per share. In the fourth quarter of 2023, the Company recorded goodwill impairment charges in the ANS and CCS segments of $46.3 million and $99.1 million, respectively, related to the ANS and BDCC reporting units, respectively. Asset impairment charges are not reflected in non-GAAP adjusted results. Non-GAAP adjusted net income (loss) for the fourth quarter of 2024 was $48.3 million, or $0.18 per share, versus $(73.1) million, or $(0.34) per share, in the fourth quarter of 2023.

Core non-GAAP adjusted EBITDA increased 68.7% to $240.4 million in the fourth quarter of 2024 compared to the same prior year period. Core non-GAAP adjusted EBITDA as a percentage of net sales increased to 20.6% in the fourth quarter of 2024 compared to 15.4% in the same prior year period. Non-GAAP adjusted EBITDA increased 86.9% to $223.1 million in the fourth quarter of 2024 compared to the same period last year. Non-GAAP adjusted EBITDA as a percentage of net sales increased to 19.1% in the fourth quarter of 2024 compared to 12.9% in the same prior year period.

Reconciliations of the reported GAAP results to non-GAAP adjusted results are included below.

Fourth Quarter Comparisons

 
Sales by Region 
---------------------------- 
                                                     % Change 
                               Q4 2024    Q4 2023      YOY 
                               --------  ---------  ---------- 
United States                  $  776.0  $   595.6   30.3   % 
Europe, Middle East and 
 Africa                           167.2      117.3   42.5 
Asia Pacific                      139.8      122.5   14.1 
Caribbean and Latin America        50.2       61.3  (18.1) 
Canada                             35.9       26.4   36.0 
                                -------      ----- 
Total net sales                $1,169.1  $   923.1   26.6   % 
                                =======      ===== 
 
 
Segment Net Sales 
------------------ 
                                           % Change 
                     Q4 2024    Q4 2023      YOY 
                     --------  ---------  ---------- 
CCS                  $  754.0  $   553.3    36.3  % 
NICS                    154.2      136.4    13.0 
ANS                     260.9      233.4    11.8 
                      -------      ----- 

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