CommScope Holding Company, Inc. (NASDAQ:COMM) Q3 2022 Earnings Conference Call November 3, 2022 8:30 AM ET

Company Participants

Michael McCloskey - Director, IR

Charles Treadway - President, CEO & Director

Kyle Lorentzen - EVP & CFO

Conference Call Participants

Samik Chatterjee - JPMorgan Chase & Co.

Ahmed Badri - Crédit Suisse

Steven Fox - Fox Advisors

Simon Leopold - Raymond James & Associates

Amit Daryanani - Evercore ISI

James Suva - Citi

Meta Marshall - Morgan Stanley

George Notter - Jefferies

Operator

Good day, and thank you for standing by. Welcome to the CommScope's Third Quarter 2022 Earnings Conference Call. [Operator Instructions].

I would now like to hand the conference over to your first speaker for today, Mr. Mick McCloskey, Head of Investor Relations. Please go ahead.

Michael McCloskey

Good morning, and thank you for joining us today to discuss CommScope's 2022 3rd quarter results. I'm Mick McCloskey, Head of Investor Relations for CommScope. And with me on today's call are Chuck Treadway, President and CEO; and Kyle Lorentzen, Executive Vice President and CFO. You can find the slides that accompany this report on our Investor Relations website.

Please note that some of our comments today will contain forward-looking statements based on our current view of our business, and actual future results may differ materially. Please see our recent SEC filings, which identify the principal risks and uncertainties that could affect future performance.

Before I turn the call over to Chuck, I have a few housekeeping items to review. Today, we will discuss certain adjusted or non-GAAP financial measures, which are described in more detail in this morning's earnings materials. Reconciliations of non-GAAP financial measures and other associated disclosures are contained in our earnings materials and posted on our website. All references during today's discussion will be to our adjusted results. All quarterly growth rates described during today's presentation are on a year-over-year basis unless otherwise noted.

I'll now turn the call over to our President and CEO, Chuck Treadway.

Charles Treadway

Thank you, Mick, and good morning, everyone. I'll begin on Slide 2. For the third quarter of 2022, core CommScope delivered net sales of $1.99 billion and core adjusted EBITDA of $353 million, the highest on record since the ARRIS acquisition. For consolidated CommScope, which includes Home Networks, we reported net sales of $2.38 billion and adjusted EBITDA of $348 million.

Our third quarter results represent strong execution by the CommScope team in driving growth and efficiencies through our CommScope NEXT transformation. In addition, our results reflect the continued progress in working to offset inflationary impacts to our margins. We are reaffirming the core CommScope business to deliver adjusted EBITDA in the range of $1.15 billion to $1.25 billion, and net leverage between the range of 6.8x to 7.2x.