ADTRAN Holdings, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>ADTRAN Holdings, Inc. filed its Q1 2024 10-Q report, detailing financial activities and referencing key agreements.</b>

AI Summary

ADTRAN Holdings, Inc. (ADTN) filed a Quarterly Report (10-Q) with the SEC on May 10, 2024. ADTRAN Holdings, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. Key dates mentioned include 2024-01-01 to 2024-03-31 for various financial activities. The company's business address is 901 Explorer Blvd, Huntsville, AL 35806. The filing references agreements and amendments, including the Wells Fargo Credit Agreement Amendment dated 2023-08-09.

Why It Matters

For investors and stakeholders tracking ADTRAN Holdings, Inc., this filing contains several important signals. This 10-Q filing provides a quarterly update on ADTRAN's financial performance and operational status, crucial for investors to assess recent business trends. The detailed financial information and references to credit agreements offer insights into the company's financial health and its relationship with lenders like Wells Fargo.

Risk Assessment

Risk Level: low — ADTRAN Holdings, Inc. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant negative or positive disclosures beyond routine financial updates.

Analyst Insight

Review the detailed financial statements and segment information within the 10-Q to understand ADTRAN's Q1 2024 performance and any changes in its financial position.

Key Numbers

• 2024-03-31 — Reporting Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-05-10 — Filing Date (FILED AS OF DATE)
• 001-41446 — SEC File Number (SEC FILE NUMBER)
• 3661 — Standard Industrial Classification (STANDARD INDUSTRIAL CLASSIFICATION)

Key Players & Entities

• ADTRAN Holdings, Inc. (company) — FILER
• ADTN (company) — tk
• Wells Fargo (company) — WellsFargoCreditAgreementAmendmentMember
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-05-10 (date) — FILED AS OF DATE
• 901 Explorer Blvd (address) — BUSINESS ADDRESS
• Huntsville (city) — BUSINESS ADDRESS
• AL (state) — BUSINESS ADDRESS

FAQ

Industry Context

ADTRAN Holdings operates in the telecommunications equipment sector, providing solutions for network convergence and broadband access.

Regulatory Implications

The filing is a standard 10-Q, adhering to SEC regulations for quarterly financial reporting by public companies.

What Investors Should Do

1. Analyze the financial statements (balance sheet, income statement, cash flow) for the quarter ended March 31, 2024.
2. Review any disclosures related to debt, credit agreements, or financing activities mentioned in the filing.
3. Examine management's discussion and analysis (MD&A) for insights into the company's performance drivers and outlook.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-10: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing an update from previous filings like the 2023 10-K or prior 10-Qs.

Key Financial Figures

• $0.01 — ch registered Common Stock, Par Value $0.01 per share ADTN The NASDAQ Global Se

Filing Documents

• adtn-20240331.htm (10-Q) — 2367KB
• adtn-ex31.htm (EX-31) — 22KB
• adtn-ex32.htm (EX-32) — 12KB
• 0000950170-24-057628.txt (&nbsp;) — 11573KB
• adtn-20240331.xsd (EX-101.SCH) — 1641KB
• adtn-20240331_htm.xml (XML) — 2228KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 1

Financial Statements

Financial Statements: Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 – (Unaudited) 7 Condensed Consolidated Statements of Loss for the three months ended March 31, 2024 and 2023 – (Unaudited) 8 Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2024 and 2023 – (Unaudited) 9 Condensed Consolidated Statements of Changes in Equity for the three months ended March 31, 2024 and 2023 (Unaudited) 10 Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 – (Unaudited) 12 Notes to Condensed Consolidated Financial Statements – (Unaudited) 13 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 36 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 54 4

Controls and Procedures

Controls and Procedures 56

OTHER INFORMATION

PART II. OTHER INFORMATION 1

Legal Proceedings

Legal Proceedings 58 1A

Risk Factors

Risk Factors 58 2 Unregistered Sales of Equity Securities and Use of Proceeds 59 5 Other Information 59 6 Exhibits 59 SIGNATURE 61 2 GLOSSARY OF SELECTED TERMS Below are certain acronyms, concepts and defined terms commonly used in our industry and in this Quarterly Report on Form 10-Q, along with their meanings: Acronym/Concept/ Defined Term Meaning CPE Customer-premises equipment DPLTA Domination and Profit and Loss Transfer Agreement DSO Days Sales Outstanding EURIBOR Euro Interbank Offered Rate MSO Multiple System Operator ODM Original Design Manufacturing RNCI Redeemable Non-Controlling Interest SaaS Software as a Service SEC Securities and Exchange Commission Service Provider or SP Entity that provides voice, data or video services to consumers and businesses SI Person or company that specializes in bringing together component subsystems into a whole and ensuring that those subsystems function together SLA Service Level Agreement SMB Small and Mid-Sized Business SOFR Secured Overnight Financing Rate U.S. United States of America VAR Value-Added Reseller 3 GENERAL Unless the context otherwise indicates or requires, references in this Quarterly Report on Form 10-Q to "ADTRAN," the "Company," "we," "us" and "our" refer to ADTRAN, Inc. and its consolidated subsidiaries prior to the merger of Acorn MergeCo, Inc., a subsidiary of ADTRAN Holdings, Inc., with and into ADTRAN, Inc., on July 8, 2022, after which ADTRAN, Inc. became a wholly-owned direct subsidiary of ADTRAN Holdings, Inc. (the "Merger"), and to ADTRAN Holdings, Inc. and its consolidated subsidiaries following the Merger. Furthermore, unless the context otherwise indicates or requires, references in this Quarterly Report on Form 10-Q to "Adtran Networks" refer to Adtran Networks SE (formerly ADVA Optical Networking SE). CAUTIONARY NOTE REG ARDING FORWARD-LOOKING STATEMENTS The Private Securities

FINANCI AL INFORMATION

PART I. FINANCI AL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS ADTRAN Holdings, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except per share amounts) March 31, December 31, 2024 2023 ASSETS Current Assets Cash and cash equivalents $ 106,757 $ 87,167 Accounts receivable, less allowance for credit losses of $ 367 and $ 400 as of March 31, 2024 and December 31, 2023, respectively 187,554 216,445 Other receivables 12,116 17,450 Income tax receivable 8,717 7,933 Inventory, net 322,147 362,295 Prepaid expenses and other current assets 59,667 45,566 Total Current Assets 696,958 736,856 Property, plant and equipment, net 126,969 123,020 Deferred tax assets 25,421 25,787 Goodwill 55,129 353,415 Intangibles, net 306,448 327,985 Other non-current assets 87,729 87,706 Long-term investments 29,252 27,743 Total Assets $ 1,327,906 $ 1,682,512 LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY Current Liabilities Accounts payable $ 159,083 $ 162,922 Unearned revenue 55,124 46,731 Accrued expenses and other liabilities 36,404 37,607 Accrued wages and benefits 25,869 27,030 Income tax payable, net 6,266 5,221 Total Current Liabilities 282,746 279,511 Non-current revolving credit agreement outstanding 195,000 195,000 Deferred tax liabilities 15,414 35,655 Non-current unearned revenue 22,884 25,109 Non-current pension liability 11,692 12,543 Deferred compensation liability 29,709 29,039 Non-current lease obligations 27,668 31,420 Other non-current liabilities 35,375 28,657 Total Liabilities 620,488 636,934 Commitments and contingencies (see Note 18) Redeemable Non-Controlling Interest 441,635 451,756 Equity Common stock, par value $ 0.01 per share; 200,000 shares authorized; 79,116 shares issued and 78,850 outstanding as of March 31, 2024 and 78,970 shares issued and 78,

View Full Filing

View this 10-Q filing on SEC EDGAR