CommScope(COMM) - 2023 Q4 - Annual Results

Financial Performance - CommScope reported Q4 2023 net sales of $1.186 billion, a decrease of 38.4% year-over-year, driven by declines across all segments[10]. - For the full year 2023, net sales decreased 23.1% to $5.789 billion, primarily due to lower sales in the CCS, OWN, and ANS segments[16]. - GAAP loss from continuing operations for the full year 2023 was $851.3 million, compared to a loss of $1,184.7 million in 2022, reflecting a 28.1% improvement[6]. - CommScope reported a net loss of $525.1 million for Q4 2023, compared to a net loss of $1,108.8 million in Q4 2022, indicating a significant improvement[48]. - Total net sales for Q4 2023 were $1,185.9 million, down 38.4% from $1,925.5 million in Q4 2022[51]. - Full year 2023 net sales were $5,789.2 million, down from $7,524.7 million in 2022, a decline of approximately 23.1%[71]. - The company reported a net loss attributable to common stockholders for Q4 2023 of $(540.9) million, compared to $(1,123.7) million in Q4 2022, indicating a significant reduction in losses[71]. EBITDA and Cash Flow - Adjusted EBITDA for Q4 2023 was $190.7 million, down 49.2% compared to the same period last year, with adjusted EBITDA as a percentage of net sales decreasing to 16.1%[11]. - The core segment adjusted EBITDA for the full year 2023 was $1.022 billion, an 18.3% decline from $1.250 billion in 2022[6]. - Non-GAAP adjusted net income for Q4 2023 was $(3.9) million, or $(0.02) per share, compared to $138.1 million, or $0.55 per share in Q4 2022[32]. - Cash flow generated by operations in 2023 was $289.9 million, with non-GAAP adjusted free cash flow of $91.5 million[19]. - Free cash flow for Q4 2023 was $51.0 million, down from $364.2 million in Q4 2022, resulting in a full year free cash flow of $236.6 million compared to $88.7 million in 2022[90]. Sales Performance by Segment - Sales in the United States for Q4 2023 were $740.2 million, a decrease of 43.8% from $1,316.6 million in Q4 2022[13]. - Segment net sales for CCS, NICS, OWN, and ANS decreased by 41.9%, 24.9%, 40.1%, and 38.4% respectively in Q4 2023 compared to Q4 2022[35]. - The CCS segment reported full year sales of $2,710.2 million, down 28.5% from $3,789.6 million in 2022[55]. - The OWN segment's sales decreased by 40.1%, totaling $880.0 million for the full year 2023, down from $1,467.9 million in 2022[55]. - The NICS segment saw an 18.9% increase in sales, reaching $1,117.7 million for the full year 2023, compared to $939.7 million in 2022[55]. Cost Management and Future Outlook - CommScope implemented cost savings initiatives in 2023, which positively impacted profitability and are expected to support recovery in demand in the second half of 2024[9]. - The company is targeting an additional $100 million in cost savings in early 2024 to better position itself for market recovery[29]. - The company is not providing updated 2024 annual guidance due to lack of visibility on market recovery timing[7]. - CommScope anticipates a market recovery in the second half of 2024, although visibility on timing remains limited[29]. Operational Metrics - Total operating expenses for Q4 2023 were $510.4 million, compared to $1,628.2 million in Q4 2022, showing a substantial reduction[71]. - Research and development expenses for Q4 2023 were $103.2 million, down from $130.7 million in Q4 2022, a decrease of approximately 21%[71]. - Total capital expenditures for the full year 2023 were $101.3 million, compared to $53.3 million in 2022[90]. - The company reported a loss from continuing operations per share of $(1.67) for Q4 2023, compared to $(5.16) for Q4 2022[71].