CommScope Holding Company, Inc. (NASDAQ: COMM), a global leader in infrastructure solutions for communications networks, reported results for the quarter ended June 30, 2020. Due to the significant and evolving uncertainties related to the impact of the COVID-19 pandemic, CommScope is providing limited financial guidance for 2020.
Highlights included:
- Net sales of $2.103 billion; 3 percent improvement from Q1
- GAAP net loss of $321.1 million
- Non-GAAP adjusted EBITDA of $279.8 million; 21 percent improvement from Q1
- Cash flow from operations of $209.1 million and adjusted free cash flow of $217.4 million
- Company further de-risks balance sheet and extends debt maturities
- Sales and non-GAAP adjusted EBITDA expected to improve in the second half of 2020
“The network connectivity we provide to our customers and business partners has never been more essential. Our business model has once again demonstrated its strength and resiliency as we delivered results in the second quarter above our expectations in an incredibly challenging operating environment. Our talented employees quickly adapted to new ways of working, managed the global supply chain dynamically to mitigate the impacts of pandemic related disruptions and remain committed to building a stronger foundation for the future,” said President and Chief Executive Officer Eddie Edwards.
Alex Pease, Executive Vice President and Chief Financial Officer, said, “While market conditions remain dynamic, we are focused on controlling what we can control, strengthening our liquidity position and improving our cost structure. We continue to take decisive actions to enhance our financial flexibility, including the recent refinancing of $700 million of senior unsecured notes. In the first half of the year we prudently managed cash on the balance sheet in light of the significant uncertainty related to the global pandemic and its impact on the global banking system. As we look ahead to the second half of the year, we believe some of that risk has abated, our business has strengthened, and our liquidity remains very strong. As a result, we plan to resume debt repayment in the third quarter, and we will evaluate additional opportunities before year-end depending on business performance and the macro economic environment.”
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