CommScope Holding Company Inc (COMM) 2023 Q1 法說會逐字稿

Thank you for standing by, and welcome to the CommScope 2023 First Quarter Results Conference Call. (Operator Instructions) As a reminder today's call is being recorded. I would now like to turn the conference to your host, Massimo DiSabato, Vice President of Investor Relations. Please go ahead, sir.

感謝您的支持，歡迎參加康普 2023 年第一季度業績電話會議。 （操作員說明）作為提醒，今天的電話正在錄音中。我現在想把會議交給你的主持人，投資者關係副總裁 Massimo DiSabato。請繼續，先生。

Good morning, and thank you for joining us today to discuss CommScope's 2023 First Quarter Results. I'm Massimo DiSabato, Vice President of Investor Relations for CommScope. With me on today's call are Chuck Treadway, President and CEO; and Kyle Lorentzen, Executive Vice President and CFO.

早上好，感謝您今天加入我們討論康普 2023 年第一季度業績。我是康普投資者關係副總裁 Massimo DiSabato。與我一起參加今天電話會議的有總裁兼首席執行官 Chuck Treadway；和執行副總裁兼首席財務官 Kyle Lorentzen。

You can find the slides that accompany this report on our Investor Relations website. Please note that some of the comments today will contain forward-looking statements based on our current view of the 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.

您可以在我們的投資者關係網站上找到本報告隨附的幻燈片。請注意，今天的一些評論將包含基於我們當前對業務的看法的前瞻性陳述，未來的實際結果可能會有重大差異。請參閱我們最近提交給美國證券交易委員會的文件，其中確定了可能影響未來業績的主要風險和不確定性。

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. Reconciliation of non-GAAP financial measures and other associated disclosures are contained in our earnings materials and posted on our website.

在我將電話轉給查克之前，我有一些內務事項需要審查。今天，我們將討論某些調整後或非 GAAP 財務指標，這些指標在今天上午的收益材料中有更詳細的描述。非 GAAP 財務措施和其他相關披露的對賬包含在我們的收益材料中並發佈在我們的網站上。

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.

今天討論中的所有參考資料都將針對我們調整後的結果。除非另有說明，否則今天的報告中描述的所有季度增長率均按年計算。

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

我現在將電話轉給我們的總裁兼首席執行官 Chuck Treadway。

Thank you, Massimo, and good morning, everyone. I'll begin on Slide 2. I'm pleased to share that we delivered Core net sales of $1.66 billion and Core adjusted EBITDA of $315 million for the first quarter of 2023.

謝謝馬西莫，大家早上好。我將從幻燈片 2 開始。我很高興與大家分享，我們在 2023 年第一季度實現了 16.6 億美元的核心淨銷售額和 3.15 億美元的核心調整後 EBITDA。

As we anticipated in our February release, seasonality, project timing, customer inventory adjustments and slower demand in certain areas of the business negatively impacted our top line in the first quarter with core net sales declining by 4%. Despite lower revenues, Core adjusted EBITDA increased by 37% compared to the prior year.

正如我們在 2 月發布的報告中所預期的那樣，季節性、項目時間安排、客戶庫存調整和某些業務領域的需求放緩對我們第一季度的收入產生了負面影響，核心淨銷售額下降了 4%。儘管收入較低，但核心調整後 EBITDA 與上一年相比增長了 37%。

For consolidated CommScope, which includes our Home Networks business, we reported net sales of $2 billion down 10% and adjusted EBITDA of $312 million, up 23%. I am pleased with our first quarter Core performance in light of some near-term challenges on the demand side.

對於包括我們的家庭網絡業務在內的合併康普，我們報告淨銷售額為 20 億美元，下降 10%，調整後的 EBITDA 為 3.12 億美元，增長 23%。鑑於需求方面的一些近期挑戰，我對我們第一季度的核心業績感到滿意。

Our execution has generated significant value as we have improved our year-over-year EBITDA as a percentage of sales by approximately 570 basis points (sic) [560 basis points] to 18.9%. Our first quarter EBITDA as a percentage of sales is the highest first quarter since the ARRIS acquisition.

我們的執行產生了巨大的價值，因為我們將 EBITDA 佔銷售額的同比百分比提高了約 570 個基點（原文如此）[560 個基點] 至 18.9%。我們第一季度的 EBITDA 佔銷售額的百分比是自收購 ARRIS 以來最高的第一季度。

This performance is a direct result of CommScope NEXT initiatives. Also during the quarter, we reduced our leverage. The adjusted net leverage ratio of 6.6x was down from 6.9x at the end of the fourth quarter of 2022. As expected, our book-to-bill declined in the first quarter as we reduced lead times in most segments back to historical levels and experienced some change in near-term demand that includes substantial customer inventory adjustments.

這一業績是康普 NEXT 計劃的直接結果。同樣在本季度，我們降低了槓桿率。調整後的淨槓桿率為 6.6 倍，低於 2022 年第四季度末的 6.9 倍。正如預期的那樣，我們在第一季度的訂單出貨比有所下降，因為我們將大多數細分市場的交貨時間縮短至歷史水平，並且經歷了近期需求的一些變化，包括大量客戶庫存調整。

Currently, there is a level of uncertainty around the return of demand that we are closely monitoring. We remain in constant dialogue with our customers and expect the lower book-to-bill ratio to last through the second quarter at a minimum.

目前，我們正在密切關注需求恢復存在一定程度的不確定性。我們與客戶保持持續對話，預計較低的訂單出貨比至少會持續到第二季度。

Based on customer discussions and quote activity in certain segments, second half 2023 and 2024 fundamentals remain strong in our CCS and NICS segments. We believe the short-term adjustment will give way to long-term demand as network and fiber build-out is still in early innings. However, we are closely monitoring the expected recovery as our early second quarter order activity remains low.

根據某些細分市場的客戶討論和報價活動，我們的 CCS 和 NICS 細分市場 2023 年下半年和 2024 年的基本面仍然強勁。我們認為短期調整將讓位於長期需求，因為網絡和光纖建設仍處於初期階段。然而，由於我們第二季度初的訂單活動仍然很低，我們正在密切關注預期的複蘇。

Despite the lower book-to-bill, our Core backlog ended the quarter at $2.4 billion, roughly $1 billion higher than our backlog at the end of 2020. Although the environment remains challenged, based on current visibility, including customer discussions and quote activity, we maintained the expectation to deliver Core adjusted EBITDA in the range of $1.35 billion to $1.5 billion for the full year 2023.

儘管訂單出貨比有所下降，但我們的核心積壓訂單在本季度末達到 24 億美元，比 2020 年底的積壓訂單高出約 10 億美元。儘管環境仍然充滿挑戰，但根據當前的可見性，包括客戶討論和報價活動，我們維持對 2023 年全年核心調整後 EBITDA 在 13.5 億美元至 15 億美元範圍內的預期。

With exit rates in the second half projected to strengthen over the first half, early analysis indicates that 2024 remains on track to deliver within guidance as well. As we have indicated before, our full year 2023 Core adjusted EBITDA range had already considered challenging market conditions in the first half. Our guidepost confirmation is predicated on customers delivering strong order rates in the second half for discussions we are having with them.

由於下半年的退出率預計會比上半年有所提高，早期分析表明 2024 年仍有望在指導範圍內實現目標。正如我們之前所指出的，我們的 2023 年全年核心調整後 EBITDA 範圍已經考慮了上半年具有挑戰性的市場條件。我們的指南確認是基於客戶在下半年為我們與他們進行的討論提供強勁的訂單率。

With that said, we are using this opportunity to address our cost structure, including evaluating opportunities to manage improved efficiency in our period overhead costs and accelerating our CommScope NEXT cost initiatives.

話雖如此，我們正在利用這個機會來解決我們的成本結構問題，包括評估管理期間管理費用效率提高的機會，以及加速我們的 CommScope NEXT 成本計劃。

Before turning the call over to Kyle, I'd like to talk about expectations of our business position as we move further into 2023. As we indicated throughout last year, we believe CCS has strong market tailwinds and that we are at the beginning of a multiyear build-out of fiber cable and connectivity. Orders were down in the first quarter and early second quarter as customers navigate the global economic uncertainty, high inventory levels and our shortened lead times.

在將電話轉給 Kyle 之前，我想談談隨著我們進一步進入 2023 年，我們對業務狀況的預期。正如我們在去年全年所表明的那樣，我們相信 CCS 擁有強勁的市場順風，我們正處於光纖電纜和連接的多年擴建。由於客戶應對全球經濟不確定性、高庫存水平和我們縮短的交貨時間，第一季度和第二季度初的訂單有所下降。

However, as we look to the future, we expect the second quarter to continue to be supported by our backlog and expect a stronger second half of the year. It should be noted, second half revenue will be driven by significantly stronger order rates versus the first quarter. We are well positioned to deliver against significantly higher demand. We have aggressively invested in our internal capacity to enable CommScope to take full advantage of carrier footprint expansion, driving fiber deeper.

然而，展望未來，我們預計第二季度將繼續受到我們積壓訂單的支持，並預計下半年會更加強勁。應該指出的是，與第一季度相比，下半年的收入將受到訂單率顯著提高的推動。我們有能力應對明顯更高的需求。我們積極投資於我們的內部能力，使康普能夠充分利用運營商的足跡擴張，推動光纖更深入。

In addition, we are well positioned to serve demand for the billions of dollars in expected government subsidies to help close the digital divide. In fact, last month, we were pleased to host the Honorable Secretary, Raimondo, of the United States Department of Commerce and the Governor of North Carolina, Roy Cooper, among others, announcing the expansion of our fiber optic cable manufacturing in North Carolina.

此外，我們有能力滿足對數十億美元預期政府補貼的需求，以幫助縮小數字鴻溝。事實上，上個月，我們很高興地接待了美國商務部尊敬的秘書雷蒙多和北卡羅來納州州長羅伊庫珀等人，他們宣布擴大我們在北卡羅來納州的光纜製造。

U.S. Secretary of Commerce, Gina Raimondo said, "As we've seen, we can produce materials needed for broadband deployment right here in America." With today's announcement of a $47 million investment, CommScope is demonstrating its commitment to our once-in-a-generation infrastructure movement.

美國商務部長吉娜·雷蒙多說：“正如我們所見，我們可以在美國生產寬帶部署所需的材料。”隨著今天宣布 4700 萬美元的投資，康普正在展示其對我們千載難逢的基礎設施運動的承諾。

Additionally, our innovation engine is fully engaged to deploy the products that will enable all of this to come to fruition, specifically designed to reduce installation complexity, save time and train the labor force faster. We continue to design our connectivity and cabling portfolio with these things in mind. And we believe our innovations are driving strategic wins in the market.

此外，我們的創新引擎正全力部署能夠實現所有這一切的產品，這些產品專門設計用於降低安裝複雜性、節省時間並更快地培訓勞動力。我們將繼續考慮這些因素來設計我們的連接和佈線產品組合。我們相信我們的創新正在推動市場的戰略勝利。

More recently, we announced our HeliARC fiber optic cable optimized for rural connectivity. This innovative new cable and our capacity investment will support an additional 500,000 homes passed per year. Being smaller and lighter, it will give our customers the ability to deploy cable faster and have an overall lower cost of deployment.

最近，我們發布了專為農村連接而優化的 HeliARC 光纜。這種創新的新電纜和我們的產能投資每年將支持額外的 500,000 戶家庭通過。更小更輕，它將使我們的客戶能夠更快地部署電纜並降低總體部署成本。

All said, in the years to come, we view our continued technology innovations, capacity investments and customer demand will drive incremental opportunity for CCS, and we remain bullish for medium- and long-term growth.

總而言之，在未來幾年，我們認為我們持續的技術創新、產能投資和客戶需求將為 CCS 帶來更多機會，我們仍然看好中長期增長。

Turning to NICS. The business has significantly improved compared to the same time last year. We believe it has turned a corner and is anchored on a trend of profitability that we expect to continue going forward, evidenced in the $58 million of adjusted EBITDA delivered in the first quarter.

轉向 NICS。與去年同期相比，業務有了顯著改善。我們認為它已經轉折並立足於我們預計將繼續向前發展的盈利趨勢，第一季度交付的 5800 萬美元調整後 EBITDA 就是明證。

Over the last 2 quarters, the NICS segment is on an annualized EBITDA run rate of $229 million. We're seeing signs of chip supply constraints loosening in the market and expect gradual relief throughout 2023. Additionally, NICS ended the quarter with significant backlog supporting the RUCKUS and [ICN] businesses. We continue to invest in services and recurring software as part of the segment's transformation growth initiatives.

在過去兩個季度中，NICS 部門的年化 EBITDA 運行率為 2.29 億美元。我們看到市場上芯片供應限制鬆動的跡象，預計到 2023 年會逐漸緩解。此外，NICS 在本季度結束時積壓了大量訂單，支持 RUCKUS 和 [ICN] 業務。作為該部門轉型增長計劃的一部分，我們繼續投資於服務和經常性軟件。

I'm extremely excited about the future of NICS as a business that has been a large benefactor of our CommScope NEXT program.

我對 NICS 作為一家企業的未來感到非常興奮，它一直是我們康普 NEXT 計劃的一大捐助者。

For the remaining core CommScope businesses, OWN and ANS, while their overall growth potentials may be more muted, our innovation engine isn't slowing down. In OWN, we mentioned in the latter part of 2022, we fully contemplated a decline in U.S. carrier capital spending into our overall Core CommScope guidepost. And while this may present headwinds for 2023 revenue and adjusted EBITDA performance in the business, we expect some level of offset driven by share gains from our new technologies. This includes the MOSAIC antenna solution as well as opportunities to deliver high-efficiency passive antennas and energy cost-conscious regions such as Europe.

對於剩餘的康普核心業務，OWN 和 ANS，雖然它們的整體增長潛力可能更加低迷，但我們的創新引擎並沒有放緩。在 OWN 中，我們在 2022 年下半年提到，我們充分考慮到美國運營商資本支出的下降將納入我們的整體核心康普指南。雖然這可能會給 2023 年的收入和調整後的業務 EBITDA 業績帶來不利影響，但我們預計新技術帶來的份額收益會帶來一定程度的抵消。這包括 MOSAIC 天線解決方案以及提供高效無源天線和能源成本敏感地區（如歐洲）的機會。

Finishing with ANS. As we have discussed, the segment has transitioned to a leading supplier of edge-related products, including RPD and RMD nodes as well as amplifiers. As we announced earlier this year, we shipped more than 1 million RF amplifiers to top cable operators in 2022, demonstrating our global leadership in DOCSIS and Access Networks. In addition, we have developed with Comcast, and FDX amplifier that will be used as their next-generation amplifier as they move to 10G.

以 ANS 結束。正如我們所討論的，該細分市場已經轉變為領先的邊緣相關產品供應商，包括 RPD 和 RMD 節點以及放大器。正如我們今年早些時候宣布的那樣，我們在 2022 年向頂級有線電視運營商出貨了超過 100 萬個射頻放大器，展示了我們在 DOCSIS 和接入網絡方面的全球領導地位。此外，我們還與 Comcast 和 FDX 放大器一起開發，將在他們轉向 10G 時用作他們的下一代放大器。

In our legacy products, we continue to support our strong installed base. We continue to have opportunities in our legacy CMTS products to gain market share, especially outside of the United States. In addition to our strength in legacy technology and edge products, we are developing a virtual CMTS alternative. Based on the broad product portfolio, ANS is well positioned to support customers across all technologies from head end to the edge.

在我們的傳統產品中，我們繼續支持我們強大的安裝基礎。我們繼續有機會在我們的傳統 CMTS 產品中獲得市場份額，尤其是在美國以外的市場。除了我們在傳統技術和邊緣產品方面的優勢外，我們還在開發虛擬 CMTS 替代方案。基於廣泛的產品組合，ANS 有能力為客戶提供從頭端到邊緣的所有技術支持。

In Q1, the EBITDA results of the ANS business were impacted by the seasonality of the business, but we expect the segment to continue to improve through the rest of the year.

第一季度，ANS 業務的 EBITDA 結果受到業務季節性的影響，但我們預計該部門將在今年餘下時間繼續改善。

And with that, I'd like to turn things over to Kyle to talk more about our first quarter results.

有了這個，我想把事情交給凱爾來更多地談談我們第一季度的業績。

Thank you, Chuck, and good morning, everyone. I'll start with an overview of our first quarter 2023 results on Slide 3. For the first quarter, consolidated CommScope reported net sales of $2 billion, a decrease of 10% from the prior year, driven by declines in OWN and Home partially offset by strong mix growth.

謝謝查克，大家早上好。我將從幻燈片 3 的 2023 年第一季度業績概覽開始。第一季度，康普合併後的淨銷售額為 20 億美元，比上年下降 10%，這是由於 OWN 和 Home 的下降部分抵消了通過強勁的混合增長。

Adjusted EBITDA of $312 million increased 23%. Adjusted EPS was $0.35 per share, increasing 35% from prior year. This is in line with our comments in the fourth quarter call, indicating that the first quarter was going to be down sequentially due to seasonality, customer inventory adjustments and lower demand.

調整後的 EBITDA 為 3.12 億美元，增長 23%。調整後每股收益為 0.35 美元，比上年增長 35%。這與我們在第四季度電話會議上的評論一致，表明由於季節性、客戶庫存調整和需求下降，第一季度將環比下降。

For Core CommScope, net sales of $1.66 billion declined 4% from the prior year and adjusted EBITDA of $315 million increased 37%. The increase in adjusted EBITDA against the backdrop of lower sales was attributable to CommScope NEXT initiatives focused on operational efficiency and price.

對於核心康普，淨銷售額為 16.6 億美元，比上年下降 4%，調整後的 EBITDA 為 3.15 億美元，增長 37%。在銷售額下降的背景下調整後 EBITDA 的增加歸因於康普 NEXT 計劃，重點是運營效率和價格。

Also, I would like to mention, as reported in the press, we experienced a cyber incident that resulted in minimal impact to the business operations. Our historical investments in business continuity and IT system resilience allowed us to minimize impacts from an aggressive attack. We also learned some lessons and have implemented several new systems and tools to significantly minimize the probability of additional incidents.

另外，我想提一下，正如媒體報導的那樣，我們經歷了一次網絡事件，對業務運營的影響微乎其微。我們在業務連續性和 IT 系統彈性方面的歷史投資使我們能夠最大限度地減少激進攻擊的影響。我們還吸取了一些教訓，並實施了幾個新系統和工具，以顯著降低發生額外事件的可能性。

Core CommScope backlog continued to decrease and ended the quarter at $2.4 billion, a decrease of 17% versus the end of 2022. Core book-to-bill for the quarter was 0.68. We are still roughly $1 billion above our December 2020 backlog levels that provides some offset to lower short-term order rate.

核心康普積壓訂單繼續減少，本季度末為 24 億美元，比 2022 年底下降 17%。本季度核心訂單出貨比為 0.68。我們仍比 2020 年 12 月的積壓水平高出約 10 億美元，這在一定程度上抵消了較低的短期訂單率。

Turning now to our segment highlights on Slide 4. Starting with CCS, net sales of $823 million decreased 2% from the prior year. Net sales for our network, cable and connectivity product line increased year-over-year. This was more than offset by a decrease in our building and data center connectivity product line net sales, given typical seasonality and continued inventory adjustments in the channel. However, as mentioned, CCS customer conversations remain bullish on medium- and long-term growth.

現在轉到幻燈片 4 中的細分市場亮點。從 CCS 開始，淨銷售額為 8.23 億美元，比上一年下降 2%。我們的網絡、電纜和連接產品線的淨銷售額同比增長。考慮到典型的季節性和渠道中持續的庫存調整，這被我們的建築和數據中心連接產品線淨銷售額的減少所抵消。然而，如前所述，CCS 客戶對話仍然看好中長期增長。

CCS adjusted EBITDA of $148 million increased 50% from the prior year, primarily driven by our CommScope NEXT initiatives, including cost efficiency and pricing.

CCS 調整後的 EBITDA 為 1.48 億美元，比上一年增長 50%，這主要是由我們的 CommScope NEXT 計劃推動的，包括成本效率和定價。

NICS net sales of $285 million increased sharply by 51%. From a business unit perspective, RUCKUS led the way, increasing 57%. The NICS business is still seeing chip supply constraints, but the constraints are loosening, and we expect the situation to improve as we move through 2023.

NICS 淨銷售額為 2.85 億美元，大幅增長 51%。從業務部門來看，RUCKUS 一馬當先，增長了 57%。 NICS 業務仍面臨芯片供應限制，但限制正在放鬆，我們預計到 2023 年情況會有所改善。

NICS adjusted EBITDA of $58 million improved from negative $14 million in the prior year, primarily driven by stronger demand and better pricing. The last 2 quarters is more indicative of NICS' performance moving forward than the LTM results. We continue to be excited about the growth opportunities of NICS as we continue to invest heavily in R&D for RUCKUS and OneCell. Demand remained strong in NICS as we ended the first quarter with a backlog of approximately $700 million.

NICS 調整後的 EBITDA 為 5800 萬美元，高於上一年的負 1400 萬美元，這主要是受強勁需求和更好定價的推動。過去 2 個季度比 LTM 結果更能表明 NICS 的業績向前發展。隨著我們繼續大力投資 RUCKUS 和 OneCell 的研發，我們繼續對 NICS 的增長機會感到興奮。 NICS 的需求依然強勁，因為我們在第一季度結束時積壓了大約 7 億美元。

OWN net sales of $258 million decreased 34% from the prior year and across all business units. This was expected as North America service providers indicated significantly lower spending from 2022 to 2023. In addition, the first quarter revenue was impacted by customer inventory adjustments that will spill into the second quarter.

OWN 所有業務部門的淨銷售額為 2.58 億美元，比上年下降 34%。這是意料之中的，因為北美服務提供商表示 2022 年至 2023 年的支出將大幅減少。此外，第一季度收入受到將蔓延至第二季度的客戶庫存調整的影響。

OWN adjusted EBITDA of $60 million declined 16% from the prior year. As previously indicated, we view the long-term opportunity for OWN as having single-digit growth. That being said, we believe 2023 present anticipated headwinds that will drive OWN's top line to decline this year. The headwinds are primarily driven by the expected reduction in North American operator capital expenditures and customer inventory adjustments. This decline was partially offset with new product innovations discussed throughout the last few quarters such as our MOSAIC antenna solutions.

OWN 調整後的 EBITDA 為 6000 萬美元，比上年下降 16%。如前所述，我們認為 OWN 的長期機會為單位數增長。話雖這麼說，我們認為 2023 年會出現預期的逆風，這將推動 OWN 今年的收入下降。逆風主要是由北美運營商資本支出和客戶庫存調整的預期減少所驅動的。這種下降部分被過去幾個季度討論的新產品創新所抵消，例如我們的 MOSAIC 天線解決方案。

During the quarter, we saw our first meaningful orders of the MOSAIC antenna with large service providers. It's also important to highlight that the lower North America service provider spending has been previously contemplated in our full year 2023 Core adjusted EBITDA guide posts.

在本季度，我們看到了來自大型服務提供商的第一批有意義的 MOSAIC 天線訂單。同樣重要的是要強調，之前在我們的 2023 年全年核心調整後 EBITDA 指南中已經考慮到較低的北美服務提供商支出。

ANS net sales of $299 million decreased 6% from the prior year due to project timing. ANS adjusted EBITDA of $50 million declined 33%, primarily driven by lower revenue and product mix, which essentially represents a shift in customer spending toward more hardware-centric and lower-margin products like our nodes and amplifiers. We expect that ANS will deliver stronger EBITDA quarters the rest of 2023 as project timing is second half weighted.

由於項目時間安排，ANS 淨銷售額為 2.99 億美元，比上年下降 6%。 ANS 調整後的 EBITDA 為 5,000 萬美元，下降了 33%，這主要是由於收入和產品組合的減少，這實質上代表了客戶支出轉向更多以硬件為中心和利潤率更低的產品，例如我們的節點和放大器。我們預計 ANS 將在 2023 年剩餘時間裡提供更強勁的 EBITDA 季度，因為項目時間是下半年加權的。

Finishing up the segments with Home Networks. Home net sales of $337 million declined 32% from the prior year across all business units, driven by customer inventory adjustments and lower demand. Home adjusted EBITDA of negative $3 million declined from $23 million in the prior year as a result of the lower revenue. We continue to work on the transformation initiatives in Home Networks including near-term cost reductions. We continue to look for the right separation opportunity for the Home business.

使用 Home Networks 完成細分。由於客戶庫存調整和需求下降，所有業務部門的家庭淨銷售額為 3.37 億美元，比上一年下降 32%。由於收入減少，家庭調整後的 EBITDA 為負 300 萬美元，低於上一年的 2300 萬美元。我們繼續致力於家庭網絡的轉型計劃，包括近期成本削減。我們繼續為家庭業務尋找合適的分離機會。

Turning to Slide 5 for an update on cash flow. As indicated on our prior call, we expected the first quarter to be a use of cash because it is our second highest interest-paying quarter and the timing of our annual cash incentive payouts. That said, for the first quarter, cash flow from operations was a use of $46 million and adjusted free cash flow was a use of $40 million.

轉到幻燈片 5 了解現金流的最新情況。正如我們之前的電話會議所表明的那樣，我們預計第一季度將使用現金，因為這是我們支付利息第二高的季度，也是我們年度現金獎勵支出的時間。也就是說，第一季度，運營現金流使用了 4600 萬美元，調整後的自由現金流使用了 4000 萬美元。

2023 cash flow from operations declined from the prior year because the majority of our annual cash incentive payment occurred in the second quarter in 2022. Our cash balance declined $71 million, which included a use of $50 million to buy back debt. Excluding the buyback, cash balance declined only $21 million.

2023 年運營現金流較上年有所下降，因為我們的大部分年度現金獎勵支付發生在 2022 年第二季度。我們的現金餘額減少了 7100 萬美元，其中包括使用 5000 萬美元回購債務。不包括回購，現金餘額僅減少 2100 萬美元。

We expect to generate meaningful improved free cash flow for the full year of 2023.

我們預計將在 2023 年全年產生有意義的改善自由現金流。

As we indicated on the last call, we expect the midpoint of our EBITDA guidepost for 2023 to a little over $400 million to $500 million of adjusted free cash flow for the year.

正如我們在上次電話會議中指出的那樣，我們預計 2023 年 EBITDA 指南的中點將略高於 4 億至 5 億美元的調整後自由現金流。

Turning to Slide 6 for an update on our liquidity and capital structure. During the first quarter, our cash and liquidity remained strong. We ended the quarter with $327 million in global cash and total available cash and liquidity of over $1 billion. We did not draw on our ABL revolver during the first quarter of 2023 and therefore, ended the quarter with no outstanding balance.

轉到幻燈片 6，了解我們的流動性和資本結構的最新情況。第一季度，我們的現金和流動性依然強勁。本季度結束時，我們擁有 3.27 億美元的全球現金和超過 10 億美元的可用現金和流動資金總額。我們在 2023 年第一季度沒有動用 ABL 左輪手槍，因此在本季度結束時沒有未結餘額。

In the first quarter, we executed a debt buyback program and repurchased $57 million of our long-term debt for cash consideration of $50 million. To add more detail, we repurchased $47 million of the 8.25% senior notes due 2027, $7 million of the 6% senior notes due 2025 and $3 million of the 7.125% senior notes due 2028.

第一季度，我們執行了一項債務回購計劃，以 5000 萬美元的現金對價回購了 5700 萬美元的長期債務。更詳細地說，我們回購了 4700 萬美元的 2027 年到期的 8.25% 優先票據、700 萬美元的 6% 的 2025 年到期的優先票據和 300 萬美元的 7.125% 的 2028 年到期的優先票據。

We also paid the required $8 million of term loan amortization during the first quarter. The company ended with an adjusted net leverage of 6.6x which was below where we ended 2022.

我們還在第一季度支付了所需的 800 萬美元定期貸款攤銷。公司最終的調整後淨槓桿率為 6.6 倍，低於我們 2022 年底的水平。

Going forward, we intend to continue to reduce leverage and we'll buy back securities opportunistically across the breadth of our capital structure when we see appropriate returns.

展望未來，我們打算繼續降低杠桿率，當我們看到適當的回報時，我們將在我們的資本結構範圍內機會主義地回購證券。

I'm now turning to Slide 7, where I will conclude my prepared remarks with some commentary around our expectations for the remainder of 2023. Although our external environment remains challenged with lower order rates in the short term, we still expect to deliver 2023 adjusted EBITDA in the range of $1.35 billion to $1.5 billion. Again, the midpoint of this range already contemplates a relatively flat year-over-year top line growth. This guidance is dependent on the recovery of our order rates in the second half, particularly in our CCS and OWN segments.

我現在轉向幻燈片 7，我將在其中總結我準備好的評論，並圍繞我們對 2023 年剩餘時間的預期發表一些評論。儘管我們的外部環境仍然面臨短期訂單率較低的挑戰，但我們仍預計將在 2023 年調整後交付EBITDA 在 13.5 億美元至 15 億美元之間。同樣，該範圍的中點已經考慮了相對平穩的同比收入增長。這一指導取決於我們下半年訂單率的恢復，特別是在我們的 CCS 和 OWN 部分。

As Chuck mentioned, we are implementing cost actions, including accelerating certain CommScope NEXT efficiency initiatives. The magnitude of this program will be dependent on how we see orders evolve over the next quarter. We expect second quarter core net sales and adjusted EBITDA to be generally in line with the first quarter, an improvement in the second half of the year as we expect to see a ramp in orders and cost actions.

正如 Chuck 提到的，我們正在實施成本行動，包括加速某些 CommScope NEXT 效率計劃。該計劃的規模將取決於我們如何看待下一季度訂單的變化。我們預計第二季度核心淨銷售額和調整後的 EBITDA 將與第一季度基本持平，下半年有所改善，因為我們預計訂單和成本行動將有所增加。

As we continue to stress, as a result of project timing and mix, our business should be viewed on an annual performance basis rather than quarterly. And with that, I'd like to give the floor back to Chuck for some closing remarks.

正如我們繼續強調的那樣，由於項目時間安排和組合，我們的業務應該按年度而不是按季度來看待。說到這裡，我想把發言權交還給查克，讓他發表一些結束語。

Thank you, Kyle. Despite the uncertain near-term economic environment, as Kyle and I have mentioned during our prepared remarks this morning, we believe that our backlog and CommScope NEXT initiatives provide a strong foundation for the company to continue to grow and create value.

謝謝你，凱爾。儘管近期經濟環境不確定，正如凱爾和我在今天上午準備好的發言中提到的那樣，我們相信我們的積壓訂單和康普 NEXT 計劃為公司繼續發展和創造價值奠定了堅實的基礎。

I'm pleased with our team's performance in the first quarter, and we will continue to manage the things we control. Our profitability profile has dramatically improved since the first quarter of 2022, driven by efficiency projects and pricing. CCS and NICS are a testament to that progress as we have improved those 2 segment's EBITDA by $121 million over the same period of last year. We continue to monitor the demand environment across all segments. We feel positive about the medium- and long-term environment, especially in CCS, where fiber build-out has tailwinds.

我對我們團隊在第一季度的表現感到滿意，我們將繼續管理我們控制的事情。自 2022 年第一季度以來，在效率項目和定價的推動下，我們的盈利能力有了顯著改善。 CCS 和 NICS 證明了這一進展，因為我們將這兩個部門的 EBITDA 比去年同期提高了 1.21 億美元。我們繼續監控所有細分市場的需求環境。我們對中長期環境感到樂觀，尤其是在 CCS 領域，那裡的光纖擴建有順風。

With that said, we are experiencing a pause in orders as customers deal with recessionary impacts on their business, including inventory management.

話雖如此，隨著客戶應對經濟衰退對其業務的影響，包括庫存管理，我們正在經歷訂單暫停。

Our teams are committed to aggressively and positively manage the items that we can control. I'd like to thank you for your interest and support in CommScope and belief in our ability to continue to drive transformative change which we believe will continue to unlock significant value for our shareholders. And with that, we'll now open the line for questions.

我們的團隊致力於積極主動地管理我們可以控制的項目。我要感謝您對康普的興趣和支持，並相信我們有能力繼續推動變革，我們相信這將繼續為我們的股東釋放巨大價值。有了這個，我們現在將打開問題熱線。

(Operator Instructions) Our first question comes from Steven Fox from Fox Advisors LLC.

（操作員說明）我們的第一個問題來自 Fox Advisors LLC 的 Steven Fox。

Two questions, if I could. I was wondering if you could first off, provide a little more color on the customer inventories you see at the OWN segment and the CCS side in terms of how they've improved, what is the expectation for working them down, et cetera? And then secondly, when we think about further improvements in EBITDA from NEXT initiatives, can you sort of give us a sense for how many dials you could sort of adjust depending on what the demand environment looks like in the second half to maybe stick to the EBITDA guidance for the full year.

兩個問題，如果可以的話。我想知道您是否可以首先為您在 OWN 部分和 CCS 方面看到的客戶庫存提供更多顏色，說明它們是如何改進的，對它們進行處理的期望是什麼，等等？其次，當我們考慮通過 NEXT 計劃進一步改善 EBITDA 時，您能否讓我們了解一下您可以根據下半年的需求環境情況調整多少撥盤，以便可能堅持全年 EBITDA 指引。

Thanks, Steve. Look, I think our customers bought a lot in 2022 due to like the ramping up of their build-outs and the supply chain shortages. And I think over the last 2 quarters, there's been a lot about destocking. But I would say we also see some places where the demand is lower as people kind of think about and digest the current macro environment.

謝謝，史蒂夫。看，我認為我們的客戶在 2022 年購買了很多產品，因為他們喜歡擴建和供應鏈短缺。而且我認為在過去的兩個季度中，有很多關於去庫存的事情。但我想說的是，隨著人們對當前宏觀環境的思考和消化，我們也看到一些需求較低的地方。

But I'd say a large majority of our customers point to a strong rebound in the second half. The other thing I think that's affecting us is the lead times -- are much lower than they've been in the past. We were having lead times of 6 months for some product lines and now they're like 2 to 4 weeks. So I think that's also affecting their inventory.

但我想說我們的大多數客戶都指出下半年會出現強勁反彈。我認為影響我們的另一件事是交貨時間——比過去短得多。我們的一些產品線的交貨時間為 6 個月，現在大約為 2 到 4 週。所以我認為這也會影響他們的庫存。

And in terms -- sorry.

抱歉，抱歉。

Yes, I'll take the second part of your question. Just on the other CommScope levers that -- CommScope NEXT levers we have. I think we clearly feel like there's cost opportunities in the business depending on the demand environment. I think some of those are new initiatives, but some of those also are just accelerating initiatives that we've already identified. And I think as we said in the remarks, as we will dial those levers and as we see demand unfold here in the next quarter or so.

是的，我會回答你問題的第二部分。就在其他 CommScope 槓桿上——我們擁有的 CommScope NEXT 槓桿。我認為我們清楚地感覺到業務中存在成本機會，具體取決於需求環境。我認為其中一些是新舉措，但其中一些也只是加速我們已經確定的舉措。我認為正如我們在評論中所說的那樣，我們將撥動這些槓桿，並且我們看到需求在下個季度左右展開。

And Steve, I would just follow up on my answer. I would say it's also relatively highly dependent on the business. In our enterprise businesses, we have really good visibility but in our service providers, I would say the visibility is less. That being said, we're in a constant dialogue with them about their inventory levels, and we have some insight with the service providers, but not as much as enterprise. So that gives us a little more confidence in what we think is happening in the second half.

史蒂夫，我只想跟進我的回答。我會說它也相對高度依賴於業務。在我們的企業業務中，我們的知名度非常好，但在我們的服務提供商中，我想說知名度較低。話雖這麼說，我們一直在與他們就他們的庫存水平進行對話，我們對服務提供商有一些了解，但不如企業了解的多。因此，這讓我們對下半年發生的事情更有信心。

Our next question comes from the line of Simon Leopold of Raymond James.

我們的下一個問題來自 Raymond James 的 Simon Leopold。

I wanted to maybe unpack a little bit about the trending in CCS, given that some of the opportunities you're highlighting, like the government opportunities like -- I see [OR] in more longer term, and I really want to get a better understanding of just the setup for 2023 and the recovery in the second half, if I might. It does seem to imply some kind of hockey stick improvement in the second half. And I just want to make sure I'm not extrapolating or putting too much weight on that one segment in your full year expectation. If you could help me understand that.

考慮到您強調的一些機會，比如政府的機會，我想稍微解釋一下 CCS 的趨勢——我看到 [OR] 更長期，我真的很想獲得更好的機會如果可能的話，只了解 2023 年的設置和下半年的複蘇。這似乎確實意味著下半場曲棍球棒的某種改進。而且我只是想確保我不會在您的全年期望中推斷或對這一部分給予過多的重視。如果你能幫助我理解這一點。

Yes. So I'd start by saying our customers do remain bullish, but I think we said in our script, we're going to -- we expect slightly better second half than first half. I wouldn't think like a very strong hockey stick. And I think we said the second quarter is more flattish compared to the first but related to your other comment, our customers do remain bullish, medium and long term. We also think related to government spending, RDOF from my perspective is probably 20% to 40% where it's going. So that's going to continue. And I think there's a lot that's coming would be. But as you say, I think that's more of a '24 type number.

是的。所以我首先要說我們的客戶確實仍然看漲，但我認為我們在劇本中說過，我們將 - 我們預計下半年會比上半年略好。我不認為這是一根非常結實的曲棍球棒。而且我認為我們說過第二季度與第一季度相比更加平穩，但與您的其他評論相關，我們的客戶確實在中長期保持看漲。我們還認為，與政府支出相關，從我的角度來看，RDOF 可能佔未來的 20% 到 40%。所以這將繼續下去。而且我認為會有很多事情會發生。但正如你所說，我認為這更像是一個 24 類型的數字。

I would also comment that -- about the comment that the cable business is actually strong. We continue to pretty much sell what we can make. But the connectivity is really where we're seeing the softness, and we think that's more to our end customers finding labor or maybe slow down or not going as fast in projects as they thought.

我還要評論——關於有線電視業務實際上很強勁的評論。我們繼續銷售我們能生產的產品。但連接性確實是我們看到軟性的地方，我們認為這更多地是為了我們的最終客戶尋找勞動力，或者可能放慢速度或不像他們想像的那樣快速地進行項目。

And then actually anticipated my follow-up. I think on the last conference call, you had talked about ANS as a segment being relatively flat to maybe slightly up in 2023. It looks like a slow start, but when I think about the upgrade activity and the demand for amplifiers and nodes, I would think the demand environment is pretty good. I wanted to check how you feel about the full year setup for ANS?

然後實際上期待我的後續行動。我想在上次電話會議上，你曾談到 ANS 作為一個相對平穩的細分市場，到 2023 年可能會略有上升。這看起來是一個緩慢的開始，但當我考慮升級活動以及對放大器和節點的需求時，我會覺得需求環境還不錯。我想了解一下您對 ANS 全年設置的看法？

Yes. I think in our comments, we talked about the fact that ANS is definitely going to be second half weighted. ANS is just a quarter-to-quarter, is a lumpy business based on project and timing of those projects. So we definitely believe that ANS is going to have a much better second half than first half, and that's, in many cases, projects that we have in hand that we just have to execute against.

是的。我認為在我們的評論中，我們談到了 ANS 肯定會在下半年加權的事實。 ANS 只是一個季度，是一個基於項目和這些項目的時間安排的塊狀業務。因此，我們絕對相信 ANS 的下半年會比上半年好得多，而且在許多情況下，我們手頭的項目我們只需要執行。

The other thing I would add to that, Simon, is we're well positioned with our RPD and RMD nodes as well as the amplifiers and that business is growing fast for us. And I would even go as far as to say, our legacy business is still very profitable and that we're growing share outside of the United States.

西蒙，我要補充的另一件事是，我們在 RPD 和 RMD 節點以及放大器方面處於有利地位，而且我們的業務正在快速增長。我什至可以說，我們的傳統業務仍然非常有利可圖，而且我們在美國以外的市場份額正在增長。

And then in addition to just -- the business -- that way, we're also developing new products with the virtual CMTS. And as you've read in the press release, we're developing the FDX amplifier with Comcast that I would say further positions us as a leader in that space.

然後，除了業務之外，我們還使用虛擬 CMTS 開發新產品。正如您在新聞稿中讀到的那樣，我們正在與康卡斯特合作開發 FDX 放大器，我想說這進一步使我們成為該領域的領導者。

Our next question comes from the line of George Notter of Jefferies. Again, George Notter of Jefferies.

我們的下一個問題來自 Jefferies 的 George Notter。同樣，Jefferies 的 George Notter。

I guess the question I have here is, I'm really surprised by the strength of the EBITDA and margin performance in the business, just given the softness in the top line. And I appreciate your comments about how the NEXT program is driving improvement. At the same time, I feel like the NEXT program has been around for a few years. I guess my impression is that, that business has been kind of ongoing. And so I'm getting back to just where the EBITDA margin performance is coming from. I guess I assume some of it is higher pricing, this year kind of keeping while input costs are rolling down. I mean is that the narrative here that we should be thinking about? Or is there something else to play that, that should be a better understanding?

我想我的問題是，考慮到頂線的疲軟，我對 EBITDA 的實力和業務利潤率表現感到非常驚訝。我感謝您對 NEXT 計劃如何推動改進的評論。同時，我覺得 NEXT 程序已經存在了幾年。我想我的印像是，這項業務一直在進行。所以我要回到 EBITDA 利潤率表現的來源。我想我假設其中一些是更高的定價，今年在投入成本下降的同時保持不變。我的意思是我們應該考慮這裡的敘述嗎？或者有沒有別的東西可以玩，那應該是更好的理解？

Well, I have several comments. I'd start by saying CommScope NEXT went into effect at the end of 2021. And when we really think about that, I mean it's only like 1.5 years, almost old. And when you think about where we're going with the general manager model, it allows us to see inefficiencies that's caused by our former matrix structure. I mean the matrix structure there's -- it just builds distrust between the business units and the central functions and it causes for a lot of, let's say, shadow organizations. So we've seen a lot of opportunities to take out cost, and we continue to see those.

嗯，我有幾個意見。我首先要說 CommScope NEXT 於 2021 年底生效。當我們真正考慮到這一點時，我的意思是它只有 1.5 年，幾乎已經過時了。當你考慮我們將採用總經理模式時，它讓我們看到了我們以前的矩陣結構造成的低效率。我的意思是那裡的矩陣結構——它只會在業務部門和中央職能部門之間建立不信任，並且會導致很多，比方說，影子組織。因此，我們已經看到了很多削減成本的機會，並且我們將繼續看到這些機會。

I would also say process mapping allows us to minimize the waste and improve the processes. And related to supply chain, I would say that the current -- where we are with supply chain constraints, although they're loosening and moderating, I mean that's prevented us from really addressing our direct materials. This is really about a cultural change in the company and having our business leaders make an impact.

我還要說的是，流程映射使我們能夠最大限度地減少浪費並改進流程。與供應鏈相關，我想說的是，目前——我們受到供應鏈限制的地方，雖然它們正在放鬆和緩和，但我的意思是這阻止了我們真正解決我們的直接材料。這實際上是關於公司的文化變革以及讓我們的業務領導者產生影響。

I would also emphasize the mix turnaround. At a $72 million increase in EBITDA year-over-year for the quarter, I mean it just shows a lot that's going on in that business. So I think it's just we're managing our business with a GM mindset, we're changing the culture, and we're getting people to pay attention to waste. And I think there's a lot of opportunities there.

我還要強調混合周轉。本季度 EBITDA 同比增長 7200 萬美元，我的意思是它只是顯示了該業務中發生的很多事情。所以我認為這只是我們以通用汽車的思維方式管理我們的業務，我們正在改變文化，我們正在讓人們關注浪費。我認為那裡有很多機會。

Got it. Okay. So then I assume improvement in input costs is not a factor in the EBITDA improvement this quarter.

知道了。好的。因此，我假設投入成本的改善不是本季度 EBITDA 改善的一個因素。

No. I mean I think the pricing that we talked about last year, we were clawing back some of the inflationary impacts. We're not seeing massive benefits on input costs at this point in time.

不，我的意思是我認為我們去年談到的定價，我們正在收回一些通脹影響。目前我們還沒有看到投入成本的巨大收益。

Our next question comes from the line of Matt Niknam of Deutsche Bank.

我們的下一個問題來自德意志銀行的 Matt Niknam。

Just 2, if I could. First, on the Core EBITDA targets that you reaffirmed for '23, I'm wondering, can you achieve the targets with accelerated cost efficiency measures, if orders don't snap back as contemplated or as you anticipate in the second half of the year? And then maybe a follow-on in terms of free cash flow, just wondering how we should think about the cadence over the next several quarters? And Kyle, I believe you reaffirm the $400 million to $500 million expectation for adjusted cash flow. I just want to make sure that's the case.

如果可以的話，只有 2 個。首先，關於您為 23 年重申的核心 EBITDA 目標，我想知道，如果下半年訂單沒有按預期或預期快速回升，您能否通過加速成本效率措施實現目標？然後可能是自由現金流方面的後續行動，只是想知道我們應該如何考慮接下來幾個季度的節奏？凱爾，我相信你重申了 4 億至 5 億美元的調整後現金流預期。我只是想確保情況確實如此。

Yes. So yes, let me take the first part of the question. So there's always a balance between seeing what's happening on the demand side and managing our costs. I think we feel like there's room if the demand doesn't bounce back, that we've got cost levers. Obviously, that's going to depend on what happens with demand and what type of changes we see. So I think we feel like there's still levers to pull on costs.

是的。所以是的，讓我回答問題的第一部分。因此，在了解需求方的情況與管理我們的成本之間始終存在平衡。我認為如果需求沒有反彈，我們覺得還有空間，我們有成本槓桿。顯然，這將取決於需求的變化以及我們看到的變化類型。所以我認為我們覺得仍然有辦法降低成本。

Just on the free cash flow. I think as we talked about, Q1 is usually a use of cash. We should build cash in Q2, Q3, Q4. The only thing that really impacts majorly the timing is just our interest payments. So the third quarter is our highest interest payment quarter. So I'd expect building cash in Q2, maybe a little bit impacted by just the timing of the interest payments in Q3 and then continue to build in Q4, that gets us to that $400 million to $500 million number that we've been talking about.

就自由現金流而言。我認為正如我們所說，第一季度通常是現金的使用。我們應該在第二季度、第三季度、第四季度建立現金。唯一真正主要影響時間的是我們的利息支付。所以第三季度是我們支付利息最高的季度。所以我希望在第二季度積累現金，可能會受到第三季度利息支付時間的影響，然後在第四季度繼續積累現金，這將使我們達到我們一直在談論的 4 億至 5 億美元的數字關於。

Okay. Great. And if I could just squeeze in one follow-up on the order rates. As you think about the improvement in the second half of the year, any sort of order of magnitude? Are you thinking maybe flattish with year ago levels? Like I'm just trying to get a sense of how meaningful that order improvement is that at least is being initially contemplated in the commentary?

好的。偉大的。如果我可以在訂單率上進行一次跟進。當您考慮下半年的改善時，有多少數量級？您是否認為與一年前的水平持平？就像我只是想了解至少在評論中最初考慮的訂單改進有多大意義？

Yes. I don't think we're going to talk about the specific numbers. But I think as we mentioned in our commentary, it needs to be -- there needs to be a pretty nice rebound in our order rate from what we saw in the first quarter. Clearly, the first quarter being impacted by the things that Chuck talked about, the inventory adjustments, the reduction of our lead times and clearly some of the project timing. So we're not going to give numbers. But yes, I think we'd have to see some strong rebound.

是的。我認為我們不會談論具體數字。但我認為，正如我們在評論中提到的那樣，我們的訂單率需要從第一季度看到的情況出現相當不錯的反彈。顯然，第一季度受到 Chuck 談到的事情、庫存調整、交貨時間縮短以及一些項目時間安排的影響。所以我們不會給出數字。但是，是的，我認為我們必須看到一些強勁的反彈。

Our next question comes from the line of Ana Goshko of Bank of America. Pardon me, Ana Goshko, Bank of America.

我們的下一個問題來自美國銀行的 Ana Goshko。不好意思，Ana Goshko，美國銀行。

So Kyle, just on the free cash flow, what is your planned use for that free cash flow?

那麼 Kyle，就自由現金流而言，您計劃將自由現金流用於什麼用途？

Yes. I mean I think as we've been talking about, we want to continue to deal with the debt and continue to look at opportunities to address the debt. Clearly, we took some steps in Q1 with some buybacks and we'll continue to opportunistically look at places that we can use the cash to continue the delevering and addressing the debt.

是的。我的意思是我認為正如我們一直在談論的那樣，我們希望繼續處理債務並繼續尋找解決債務的機會。顯然，我們在第一季度採取了一些回購措施，我們將繼續機會主義地尋找可以使用現金繼續去槓桿化和解決債務問題的地方。

Okay. And then with regard to the first maturity that you've guided 2025, any plans or potential to refinance that to push that out?

好的。然後關於您指導 2025 年的第一個成熟度，有任何計劃或可能對其進行再融資以將其推出嗎？

Yes. I think as we think about the maturities in the debt, I think the first thing is we obviously are very aware of the fact of the maturities in particularly the '25 and '26. We clearly are looking at opportunistic things that we can do from a market standpoint. So I think that's an ongoing conversation. I think with that said, a couple of things, number one, we feel like we've still got -- we've got some time. Number two, we're going to generate some cash, which allows us to deal with some of those maturities. So again, we're aware of it. We're focused on it, and we're looking for the right time to deal with that, but also have some cash coming in and some time to deal with those even the '25s.

是的。我認為，當我們考慮債務的到期日時，我認為首先是我們顯然非常清楚到期日的事實，尤其是 25 年和 26 年。我們顯然是在從市場的角度來看我們可以做的機會主義的事情。所以我認為這是一個持續的對話。我認為話雖如此，有幾件事，第一，我們覺得我們還有——我們還有一些時間。第二，我們將產生一些現金，這使我們能夠處理其中一些到期的問題。所以，我們再次意識到這一點。我們專注於它，我們正在尋找合適的時間來處理這個問題，但也有一些現金收入和一些時間來處理那些甚至是 25 年代的人。

Okay. And then finally, I just wanted to -- on 2024, if I heard you correctly, it sounds like you guys think that you're on track to potentially reach the '24 guide. So from a deleveraging standpoint, it would sort of be more of the same potential with some more momentum in '24. Is that accurate?

好的。最後，我只想——在 2024 年，如果我沒聽錯的話，聽起來你們認為你們有望達到 24 年指南。因此，從去槓桿化的角度來看，它在 24 世紀具有更大的潛力和更多的動力。那是準確的嗎？

Yes, I think that's fair. Clearly, what we see in the second half of the year with the recovery of the demand is going to impact that. But based on what we're hearing from customers, I think we feel like the exit rates in Q4 will be relatively strong, which will set us up for the '24 guideposts.

是的，我認為這很公平。顯然，我們在今年下半年看到的需求復蘇將對此產生影響。但根據我們從客戶那裡聽到的消息，我認為我們覺得第四季度的退出率會相對較高，這將為我們做好 24 年的指導方針。

Our next question comes from the line of Amit Daryanani of Evercore.

我們的下一個問題來自 Evercore 的 Amit Daryanani。

I have 2 as well. I guess, first one, maybe the negative $40 million free cash flow, I'd love to understand, how is that versus your own internal expectations? And then you see this ramp towards $450 million-ish at the midpoint of your guide. Is there a way to think about how much of that is driven by better working capital improvements versus better profitability, that equation seems (inaudible).

我也有2個。我想，第一個，可能是負的 4000 萬美元自由現金流，我很想知道，這與您自己的內部預期相比如何？然後你會在你的指南的中點看到這個向 4.5 億美元左右的斜坡。有沒有一種方法可以考慮其中有多少是由更好的營運資本改善和更好的盈利能力驅動的，這個等式似乎（聽不清）。

Well, I think as we mentioned in Q1, we have some headwinds that just normally hit us in Q1. Number one is a large interest payment quarter. The second is our cash incentive payment goes out, which is not insignificant. So as we go through the rest of the year, we'll be driving improved EBITDA performance as well as a couple of the quarters, we'll have lower interest payment quarters than Q1. I think in our targets, I think as we've talked about in the last couple of calls, we don't have large working capital improvements built in there. I think we continue to manage inventory levels that we think it's excess, but it's going to take us a little bit of time to get that inventory down. So overall, in those numbers, we don't have significant reductions in working capital built in to get to those targets.

好吧，我認為正如我們在第一季度提到的那樣，我們遇到了一些通常在第一季度襲擊我們的逆風。第一是一個大的利息支付季度。第二個是我們的現金激勵支付出去了，這不是微不足道的。因此，在今年餘下的時間裡，我們將推動 EBITDA 業績的改善，以及幾個季度，我們的利息支付季度將低於第一季度。我認為在我們的目標中，我認為正如我們在最近幾次電話中所談到的那樣，我們沒有在那裡建立大量的營運資金改進。我認為我們將繼續管理我們認為過剩的庫存水平，但我們需要一些時間來降低庫存。因此，總的來說，在這些數字中，我們沒有顯著減少用於實現這些目標的營運資金。

Got it. That's super helpful. And if I can just follow up, one of the questions I think folks [are sort of swelling] with right now just -- you're talking about a very strong back half recovery, I think, if I take your full year assumptions and you do put assumptions, right? You're talking about a very strong back half recovery, while I think there's a broader worry that we might enter into a recession, and at least a lot of enterprise companies are downticking more versus not. So not to make you repeat everything you said, but I'm just curious like what gives you confidence that you can see this back half recovery? And is that recovery going to be across both enterprise and side of your service provider market? Or is there one space where you're seeing it better? But just anything on the back half strength and why you convicted that would be helpful.

知道了。這非常有幫助。如果我可以跟進，我認為人們現在 [有點膨脹] 的問題之一 - 我認為你正在談論非常強勁的後半部分恢復，如果我採用你的全年假設並且你確實提出了假設，對嗎？你說的是非常強勁的後半段復甦，而我認為更廣泛的擔憂是我們可能會陷入衰退，至少很多企業公司的降價幅度更大，而不是沒有。所以不是讓你重複你所說的一切，但我只是好奇是什麼讓你有信心看到這個後半段恢復？這種複蘇是否會同時涉及企業和服務提供商市場？還是有一個空間讓您看得更清楚？但是任何關於後半部力量的事情以及你為什麼定罪都會有所幫助。

Yes. Look, obviously, we're cautious as order rates haven't picked up to the level we expected them to but with that said, the customers remain bullish on the second half. As number one, government funding specifically, RDOF continues and I'll also say the inventory that they have on hand will position us -- continues to get better, let's say, as that gets adjusted, that's going to help us.

是的。顯然，我們持謹慎態度，因為訂單率尚未回升至我們預期的水平，但話雖如此，客戶仍然看好下半年。作為第一，特別是政府資助，RDOF 繼續，我還要說他們手頭的庫存將使我們處於有利地位——繼續變得更好，比方說，隨著它的調整，這將對我們有所幫助。

And also on the enterprise businesses, I would say the quote activity has improved a lot since the fourth quarter and which indicates to us a stronger second half.

在企業業務方面，我想說自第四季度以來報價活動有了很大改善，這向我們表明下半年表現強勁。

Our next question comes from the line of Shannon Cross of Credit Suisse.

我們的下一個問題來自瑞士信貸的 Shannon Cross。

I was wondering if you could talk a bit more about the composition of the backlog, how we should think about how the backlog is priced, if there's opportunity to increase prices on that as you start to fulfill the backlog? Just whatever you can give us in terms of details.

我想知道您是否可以多談談積壓訂單的構成，我們應該如何考慮積壓訂單的定價方式，以及在您開始完成積壓訂單時是否有機會提高價格？就細節而言，只要您能給我們提供任何信息。

Yes. I think -- I mean, I think the composition of the backlog, we feel comfortable with the backlog. Our backlog contains the price increases that we put in place last year to offset inflation. I don't think we're looking at the backlog as an opportunity to get pricing. I think we're always looking for opportunities to make sure that we're managing price in relation to material costs and input costs. But I think we feel good about the backlog from a pricing perspective and I don't think we look at that as an opportunity.

是的。我認為 - 我的意思是，我認為積壓的構成，我們對積壓感到滿意。我們的積壓訂單包含我們去年為抵消通貨膨脹而實施的價格上漲。我不認為我們正在將積壓視為獲得定價的機會。我認為我們一直在尋找機會，以確保我們管理與材料成本和投入成本相關的價格。但我認為從定價的角度來看，我們對積壓感到滿意，我認為我們不認為這是一個機會。

What about the stability of the backlog? I mean how contracted is it? Have you seen any of it dissipate as...

積壓的穩定性如何？我的意思是它有多緊湊？你有沒有看到它消散為...

Yes. I mean -- I think the way to answer that is we haven't -- clearly, we've seen some cancellation in our backlog, but nothing significant. I think we feel the backlog and the validity of that backlog to be pretty solid, just based on the fact that we've gone through a pretty interesting first quarter. And although we've seen some cancellations, nothing that we would consider to be significant.

是的。我的意思是——我認為回答這個問題的方法是我們還沒有——很明顯，我們已經看到積壓的訂單中有一些被取消，但並不重要。我認為我們覺得積壓和積壓的有效性非常可靠，只是基於我們經歷了一個非常有趣的第一季度這一事實。雖然我們已經看到一些取消，但我們認為沒有什麼是重要的。

Okay. And then I guess my last question is just regarding your cost restructuring plan that you have in place and the ability to accelerate it. I'm wondering, like how long -- once you make the determination, assuming that things stay weak to reduce cost, how quickly can we see that flow through, through the P&L? I'm just, again, trying to figure out the ability to remain -- or your confidence level on your ability to remain within your EBITDA range.

好的。然後我想我的最後一個問題只是關於你已經制定的成本重組計劃以及加速它的能力。我想知道，就像多久 - 一旦你做出決定，假設事情保持疲軟以降低成本，我們能多快看到它通過損益表流動？我只是再次試圖弄清楚保持能力 - 或者您對保持在 EBITDA 範圍內的能力的信心水平。

I would just say, look, we believe there's always a balance between taking cost out and investing for growth. We have, I would say, strong opportunities, midterm and long term and the investments -- initiatives, return on investments are very strong. With that said, we believe there's opportunity to drive efficiency and take cost out, including period overhead. We're thinking about a number now that we're looking at doing just in anticipation of potentially not coming back the way we wanted to, and we will be doing that very quickly.

我只想說，看，我們相信在降低成本和投資增長之間總是存在平衡。我想說，我們有強大的機會，中期和長期的投資 - 倡議，投資回報率非常高。話雖如此，我們相信有機會提高效率並降低成本，包括期間管理費用。我們現在正在考慮一些我們正在考慮做的事情，只是因為預計可能不會回到我們想要的方式，我們將很快做到這一點。

It looks like we do have time for one more question. One moment, please. Our next question comes from the line of Meta Marshall of Morgan Stanley.

看來我們還有時間再問一個問題。稍等一會兒。我們的下一個問題來自摩根士丹利的 Meta Marshall。

Great. I guess just in terms of -- do you feel as if kind of the improvements that you've seen to date have largely captured the pricing increases? Or is there still kind of further benefit we should see from margins from kind of the pricing actions that you guys have taken? And then second, you talked about kind of the MOSAIC traction, but if we could just get an update on some of the other new initiatives that you have, either OneCell or you spoke to kind of some of the new fiber you have, this traction with some of the innovative parts of the portfolio would be helpful.

偉大的。我想就-您是否覺得迄今為止您所看到的某種改進在很大程度上抓住了價格上漲？或者我們應該從你們採取的定價行動中看到的利潤率還有什麼進一步的好處？其次，你談到了某種 MOSAIC 牽引力，但如果我們能得到你擁有的其他一些新舉措的最新信息，無論是 OneCell 還是你談到了你擁有的一些新光纖，這種牽引力結合投資組合中的一些創新部分會有所幫助。

Yes, I'll answer the first one, and I'll give the second one to Chuck. So I think on the pricing side, we were -- we went through our inflationary price increase last year. I think that, that pricing is essentially built into Q1. Our backlog contains the price increases. I don't think we feel in the short to medium term that there is ups -- a lot of upside to pricing. I think we feel like we're balanced, both from an input cost perspective and a competitive standpoint. So I don't think we feel like -- in the short to medium term, there's a lot of opportunity there.

是的，我會回答第一個，我會把第二個給查克。所以我認為在定價方面，我們去年經歷了通貨膨脹價格上漲。我認為，定價基本上是第一季度的一部分。我們的積壓訂單包含價格上漲。我認為我們在中短期內不會覺得有上漲——定價有很多上漲空間。我認為我們覺得我們是平衡的，無論是從投入成本的角度還是從競爭的角度來看。所以我不認為我們覺得 - 在短期到中期，那裡有很多機會。

Well, thanks for the second half of the question, Meta. In terms of new product introductions, I'd be really excited about HeliARC. It's rural fiber optic cable that we were able to show to United States Secretary of Commerce, Raimondo when she was on our site. The diameter is half of what it was. So it's green, and we could ship more out faster installation. Also on the CCS part of our business, we have NOVUX which is coming down the pipe again with all of our customers that we speak to the challenges that they have is, how do they train their people, how do they reduce installation times and this NOVUX product is going to get them both of that, very easy installation techniques and training -- very minimal training, much faster installation. So we're pleased about that.

好吧，謝謝你提出問題的後半部分，Meta。在新產品介紹方面，我對 HeliARC 感到非常興奮。當美國商務部長雷蒙多訪問我們的網站時，我們可以向她展示農村光纖電纜。直徑是原來的一半。所以它是綠色的，我們可以更快地安裝更多。同樣在我們業務的 CCS 部分，我們有 NOVUX，它再次與我們所有的客戶一起下線，我們談到他們面臨的挑戰是，他們如何培訓他們的員工，他們如何減少安裝時間以及這NOVUX 產品將為他們提供這兩者，非常簡單的安裝技術和培訓——極少的培訓，安裝速度要快得多。所以我們對此感到高興。

We already launched part of it in Europe. We're going to be launching it in the U.S. soon.

我們已經在歐洲推出了其中的一部分。我們將很快在美國推出它。

In terms of the NICS business, you think about RUCKUS [One] which is going to be a combination of a WiFi 7 product with cell service, integrated in. When you start thinking about private networks, when you think about manufacturing 4.0 to get into manufacturing locations to be able to use WiFi and cell service in buildings in one box. We see that as very, very positive.

就 NICS 業務而言，您會想到 RUCKUS [One]，它將集成 WiFi 7 產品和蜂窩服務。當您開始考慮專用網絡時，當您考慮進入製造 4.0 時製造地點能夠在一個盒子中的建築物中使用 WiFi 和手機服務。我們認為這是非常非常積極的。

But also, I would say, on the ANS side, our RMD RPD, our virtual CMTS, this technology that we're putting together gives our customers solutions that fit them whatever path they choose, which is also very positive.

但是，我還要說，在 ANS 方面，我們的 RMD RPD，我們的虛擬 CMTS，我們正在整合的這項技術為我們的客戶提供了適合他們選擇的任何路徑的解決方案，這也是非常積極的。

So those are things that we're seeing some bright spots. On the Home Networks side, they have telehealth that they're working on, which is called HomeSight. It's a nice product that allows to -- elderly people to -- or anyone, I guess, to be able to answer the telephone on their television to be able to have doctors' appointments through their television screen and to be able to monitor them as they're in their homes. So we have quite a bit of innovation in all the different segments in addition to the MOSAIC product.

所以這些是我們看到的一些亮點。在家庭網絡方面，他們正在研究遠程醫療，稱為 HomeSight。這是一個很好的產品，它允許——老年人——或者任何人，我想，能夠在他們的電視上接聽電話，能夠通過他們的電視屏幕預約醫生，並能夠監控他們作為他們在自己的家裡。因此，除了 MOSAIC 產品之外，我們在所有不同的領域都有相當多的創新。

I'd like to turn the call over to Chuck Treadway for any closing remarks.

我想將電話轉給 Chuck Treadway 以聽取任何結束語。

I'd just like to say thank you for your interest in CommScope and for your questions today. And I hope you have [great] rest of the week -- rest of the week as well for you. Thank you.

我只想說，感謝您今天對康普的關注和提問。我希望你在這周有 [美好的] 休息時間——這週的休息時間對你來說也是如此。謝謝。

Thank you. Ladies and gentlemen, this does conclude today's conference. Thank you all for participating. You may now disconnect. Have a great day.

謝謝。女士們，先生們，今天的會議到此結束。謝謝大家的參與。您現在可以斷開連接。祝你有美好的一天。