Frontdoor, Inc. · NASDAQ:FTDR
Frontdoor — Q4 2020 Earnings Presentation
19 slides from Frontdoor's earnings presentation, Feb 18, 2021
Slide 1: Fourth-Quarter & Full-Year 2020 Earnings Webcast
Fourth-Quarter & Full-Year 2020 Earnings Webcast February 18, 2021
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, projected future performance and any statements
Slide 3: Today's Speakers
Today’s Speakers Rex Tibbens Brian Turcotte Matt Davis President & Senior Vice President & Vice President Chief Executive Officer Chief Financial Officer Investor Relations & Treasurer 3
Slide 4: 2020 Summary
2020 Summary • Navigated challenging external environment • Grew revenue 8% • Improved customer retention to 76% • Expanded emerging businesses 4
Slide 5: 2021 Objectives
2021 Objectives • Deliver double-digit revenue growth • Focus on automation • Expand customer retention initiatives • Execute emerging business strategies 5
Slide 6: AHS ProConnect
AHS ProConnect • Expand marketing opportunities • Deepen trade offerings across geographies • Targeting 80K jobs completed in 2021 6
Slide 7: Q4 2020 Financial Summary
Q4 2020 Financial Summary $ millions Net Adjusted Revenue Income EBITDA(1) $323 $2 $32 (1) See the Appendix accompanying this presentation for a reconciliation of Adjusted EBITDA, a non-GAAP measure, to the nearest U.S. GAAP measure. See “Reconciliations of Non-GAAP Financial Measures” included in t
Slide 8: Q4 2020 Adjusted EBITDA Bridge
Q4 2020 Adjusted EBITDA(1) Bridge $ millions Three Months Ended December 31, 2019 $48 Impact of change in revenue(2) 17 Contract claims costs (18) Sales and marketing costs (6) Customer service costs (8) General and administrative costs 1 Other (3) Three Months Ended December 31, 2020 $32 Note: Reve
Slide 9: FY 2020 Financial Summary
FY 2020 Financial Summary $ millions Net Adjusted Revenue Income EBITDA(1) $1,474 $112 $270 (1) See the Appendix accompanying this presentation for a reconciliation of Adjusted EBITDA, a non-GAAP measure, to the nearest U.S. GAAP measure. See “Reconciliations of Non-GAAP Financial Measures” included
Slide 10: FY 2020 Adjusted EBITDA Bridge
FY 2020 Adjusted EBITDA(1) Bridge $ millions Year Ended December 31, 2019 $303 Impact of change in revenue(2) 88 Contract claims costs (49) Sales and marketing costs (42) Customer service costs (19) General and administrative costs (6) Other (5) Year Ended December 31, 2020 $270 Note: Revenue and ex
Slide 11: FY 2020 Cash Flow
FY 2020 Cash Flow Year Ended $ millions, except Free Cash Flow Conversion $ millions December 31, Net cash provided from Free Cash 2020 2019 (used for): Free Cash Flow Available Flow(1) Conversion(1) Liquidity(2) Operating Activities $207 $200 Investing Activities (31) (61) $175 65% $668 Financing A
Slide 12: Capital Allocation Strategy
Capital Allocation Strategy Significant deleveraging from • Growth first capital robust cash generation allocation strategy $882M $726M ‒ Organic growth 3.7x $568M ‒ Acquisitions ‒ Debt repayment 2.4x $100M of TLB in February 2.1x ‒ Return cash to shareholders YE 2018 YE 2019 YE 2020 (1)(2) Net De
Slide 13: Full-Year 2021 Outlook
Full-Year 2021 Outlook 2021 Outlook 2020 Results Low High Revenue ($ billions) 1.47 1.63 1.65 Gross Profit Margin (%) 49 ~48 Adjusted EBITDA ($ millions)(1) 270 280 300 Capital Expenditures ($ millions) 32 35 45 Annual Effective Tax Rate (%) 25 ~25 2021 ProConnect Outlook ProConnect Markets (cities)
Slide 14: Q&A
Q&A For more information please visit our website: frontdoorhome.com 14
Slide 15: Appendix
Frontdoor. APPENDIX
Slide 16: Q4 2020 Consolidated Results
Q4 2020 $ millions, except per share amounts Three Months Ended December 31, Consolidated Revenue $ 2020 323 $ 2019 300 $ Better / (Worse) 23 Results YoY Growth 8% Gross Profit 137 139 (1) % of revenue 42.5% 46.3% (3.8) pts Note: See elsewhere in this Appendix for a reconciliation of Adjusted EBITDA
Slide 17: FY 2020 Consolidated and Combined Results
FY 2020 $ millions, except per share amounts Year Ended December 31, Consolidated Revenue $ 2020 1,474 $ 2019 1,365 $ Better / (Worse) 109 and Combined YoY Growth 8% Gross Profit 716 678 38 Results % of revenue 48.6% 49.6% (1.1) pts Selling and administrative expenses 467 392 (75) % of revenue 31.7%
Slide 18: Net Income to Adjusted EBITDA Reconciliations
Net Income to Adjusted EBITDA Reconciliations $ millions Three Months Ended Year Ended December 31, December 31, 2020 2019 2020 2019 Net Income $ 2 $ 19 $ 112 $ 153 Depreciation and amortization expense 9 6 34 24 Restructuring charges 4 1 8 1 Spin-off charges — — — 1 Provision for income taxes (1) 5
Slide 19: Net Cash Provided from Operating Activities to Free Cash Flow Reconciliations
Net Cash Provided from Operating Activities to Free Cash Flow Reconciliations $ millions, except Free Cash Flow Conversion Three Months Ended Year Ended December 31, December 31, 2020 2019 2020 2019 Net Cash Provided from Operating Activities $ 54 $ 47 $ 207 $ 200 Property Additions (6) (7) (32) (22