CommScope Holding Company, Inc. (NASDAQ: COMM) reported results for the quarter and year ended December 31, 2019. The company reported fourth quarter net sales of $2.30 billion, an increase of 117.3 percent compared to $1.06 billion during the same period in the prior year. Fourth quarter 2019 included sales of $1.33 billion from ARRIS, which was acquired on April 4, 2019. ARRIS sales in Q4 included a $13.2 million reduction related to deferred revenue purchase accounting adjustments.
CommScope generated a net loss available to common stockholders of $(450.5) million, or $(2.32) per basic share, in the fourth quarter, a decrease from the prior year period’s net loss of $(23.3) million, or $(0.12) per basic share. In Q4 of 2019, the company recorded $376.1 million of goodwill impairment charges related to its ARRIS reporting units as a result of the annual goodwill impairment test. Non-GAAP adjusted net income for the fourth quarter was $106.6 million, or $0.46 per diluted share, versus $99.8 million, or $0.51 per diluted share, in the fourth quarter of 2018.
“We are pleased to finish 2019 on a high note, as we delivered net sales at the midpoint of our guidance, adjusted EBTIDA at the high-end of our targeted range, and adjusted EPS well above our targeted range,” said President/Chief Executive Officer Eddie Edwards. “Despite industry headwinds, our team remained focused on managing the elements we could control. Our strong operational discipline allowed us to generate significant cash flow, resulting in $300 million of early debt paydown in the fourth quarter and an additional $100 million paydown earlier this week. We are executing on our strategy and surpassing our cash flow and debt paydown expectations. As a result of our success, there is only $50 million principal remaining on our 2021 notes with the next nearest maturity not until 2024.”
“Looking forward, 2020 will be a year of continued and active cost structure management while strategically investing in our business to position CommScope for accelerated growth,” Edwards said. “We remain confident in the long-term potential of our business and our ability to deliver significant shareholder value.”
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