ADTRAN Holdings Files Q2 2024 10-Q

TL;DR

**ADTRAN Holdings Q2 10-Q filed. Financials and ops details out.**

AI Summary

ADTRAN Holdings, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported its financial performance and operational updates. Key financial details and strategic information relevant to investors are disclosed in this filing.

Why It Matters

This filing provides investors with a detailed look at ADTRAN's financial health and operational performance during the second quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — 10-Q filings inherently carry medium risk due to the detailed financial and operational information that can impact stock price.

Key Numbers

• Q2 2024 — Reporting Period (Financials for the second quarter of 2024 are detailed.)

Key Players & Entities

• ADTRAN Holdings, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of reporting period
• 20240809 (date) — Filing date
• Wells Fargo (company) — Mentioned in credit agreement

FAQ

Key Financial Figures

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

Filing Documents

• adtn-20240630.htm (10-Q) — 3265KB
• adtn-ex31.htm (EX-31) — 23KB
• adtn-ex32.htm (EX-32) — 12KB
• 0000950170-24-094602.txt ( ) — 14565KB
• adtn-20240630.xsd (EX-101.SCH) — 1726KB
• adtn-20240630_htm.xml (XML) — 3222KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 1

Financial Statements

Financial Statements: Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 – (Unaudited) 7 Condensed Consolidated Statements of Loss for the three and six months ended June 30, 2024 and 2023 – (Unaudited) 8 Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2024 and 2023 – (Unaudited) 9 Condensed Consolidated Statements of Changes in Equity for the three and six months ended June 30, 2024 and 2023 (Unaudited) 10 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 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 40 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 60 4

Controls and Procedures

Controls and Procedures 62

OTHER INFORMATION

PART II. OTHER INFORMATION 1

Legal Proceedings

Legal Proceedings 64 1A

Risk Factors

Risk Factors 64 2 Unregistered Sales of Equity Securities and Use of Proceeds 66 5 Other Information 66 6 Exhibits 66 SIGNATURE 69 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. ("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 Liti

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) June 30, December 31, 2024 2023 ASSETS Current Assets Cash and cash equivalents $ 111,185 $ 87,167 Accounts receivable, less allowance for credit losses of $ 191 and $ 400 as of June 30, 2024 and December 31, 2023, respectively 186,176 216,445 Other receivables 11,436 17,450 Income tax receivable 13,050 7,933 Inventory, net 287,860 362,295 Prepaid expenses and other current assets 58,612 45,566 Total Current Assets 668,319 736,856 Property, plant and equipment, net 134,578 123,020 Deferred tax assets 24,931 25,787 Goodwill 54,897 353,415 Intangibles, net 290,793 327,985 Other non-current assets 87,105 87,706 Long-term investments 30,159 27,743 Total Assets $ 1,290,782 $ 1,682,512 LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY Current Liabilities Accounts payable $ 158,550 $ 162,922 Unearned revenue 55,107 46,731 Accrued expenses and other liabilities 36,307 37,607 Accrued wages and benefits 37,520 27,030 Income tax payable, net 2,228 5,221 Total Current Liabilities 289,712 279,511 Non-current revolving credit agreement outstanding 190,273 195,000 Deferred tax liabilities 21,077 35,655 Non-current unearned revenue 26,584 25,109 Non-current pension liability 11,505 12,543 Deferred compensation liability 30,601 29,039 Non-current lease obligations 26,613 31,420 Other non-current liabilities 34,445 28,657 Total Liabilities 630,810 636,934 Commitments and contingencies (see Note 18) Redeemable Non-Controlling Interest 439,743 451,756 Equity Common stock, par value $ 0.01 per share; 200,000 shares authorized; 79,121 shares issued and 78,855 outstanding as of June 30, 2024 and 78,970 shares issued and 78,67

View Full Filing

View this 10-Q filing on SEC EDGAR