Allegion Plc · NYSE:ALLE
Allegion — Q4 2023 Earnings Presentation
20 slides from Allegion's earnings presentation, Feb 20, 2024
Slide 1: Q4-2023 Earnings Call
Q4-2023 Earnings Call February 20, 2024
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements This presentation contains "forward-looking statements," which are statements that are not historical facts, including, but not limited to, statements related to the Key Drivers for 2024, Full-Year 2024 Outlook, and statements regarding market trends,
Slide 3: Solid Q4 Execution & Record FY Results
Solid Q4 Execution & Record FY Results Double-digit revenue growth; Adj. EPS growth of 16.2% (FY) Electronics / software organic growth of ~20% (FY) Strong margin expansion & cash flow Focused on seamless access & balanced capital allocation 3 Q4-2023 Financial Results See press release for non-GAAP
Slide 4: Capital Allocation Strategy in Action
Capital Allocation Strategy in Action Strategic investments driving seamless access Invest for Mergers & Dividend Share Repurchases Organic Growth Acquisitions 7% 2024 increase $40M 10th Schlage XE360TM Series Consecutive annual increase Closed February 2024 In Q4 2023 4 Q4-2023 Financial Results
Slide 5: Q4-2023 Financial Summary
Q4-2023 Financial Summary Revenue1 Adjusted OI Adjusted EBITDA Adjusted ACF1 $Millions Margin1 Margin1 EPS1 YTD +4.2% +130 bps +120 bps -0.6% +30.6% $897.4 $861.5 23.5% $1.69 $1.68 $516.4 22.0% 22.3% 20.7% $395.5 Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 ▪ Organic revenue increase
Slide 6: Q4-2023 Revenue Results
Q4-2023 Revenue Results $Millions 950.0 $923 $913 $918 $897 900.0 $862 850.0 800.0 750.0 700.0 650.0 600.0 11.4% 15.0% 5.6% -0.6% 2.6% Revenue Growth 550.0 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Reported Organic 1 1 Current Quarter Revenue Prior Quarter Revenue Organic Growth % noted Americas Q4 3.
Slide 7: Q4-2023 Allegion Americas Results
Q4-2023 Allegion Americas Results Revenue1 Adjusted OI%1 Adjusted EBITDA%1 $Millions +3.7% +170 bps +190 bps $704.6 $679.5 28.0% 26.7% 26.1% 25.0% Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 Q4 Revenue Performance Q4 Adjusted Margin Performance ▪ Organic revenue growth of 3.7% on a challenging PY ▪ Price an
Slide 8: Q4-2023 Allegion International Results
Q4-2023 Allegion International Results Revenue1 Adjusted OI%1 Adjusted EBITDA%1 $Millions +5.9% +110 bps +100 bps 18.0% 19.0% $182.0 $192.8 15.7% 16.8% Q4 22 Q4 23 Q4 22 Q4 23 Q4 22 Q4 23 Q4 Revenue Performance Q4 Adjusted Margin Performance ▪ Organic revenue decline of 1.3% driven by soft end ▪ Pri
Slide 9: Healthy Balance Sheet & Cash Flow
Healthy Balance Sheet & Cash Flow Available Cash Flow Working Capital Leverage $Millions +30.6% $516.4 $395.5 Working Capital % of Revenue 2.9x 7.1% 6.5% 2.3x 2.3x 2.5x 1.7x 1.9x FY FY 2022 2023 2021 2022 2023 2022 2023 Gross Debt/Adj EBITDA Net Debt /Adj EBITDA Capex $64.0M $84.2M ▪ Increase driven
Slide 10: Key Drivers for 2024
Key Drivers for 2024 Focused Execution Stable Markets TTM Dodge Institutional Sqft. Starts Net PPII1 to Sales 15% 0% 60 bps -15% 2019 2020 2021 2022 2023 -30% 2019-2023 Average 2019 2020 2021 2022 2023 2024 ▪ Return to normal price and inflation ▪ Institutional indicators favorable ▪ On average, pri
Slide 11: FY-2024 Outlook
FY-2024 Outlook Focused on execution and capital deployment in stable market backdrop Current Outlook EPS Reconciliation Current Outlook Americas: 1.5% to 3.5% Reported Revenue International: 1.5% to 3.5% 2023 Reported EPS $6.12 Total: 1.5% to 3.5% Acquired Intangible Asset Amortization2 $0.46 Adjus
Slide 12: Pioneering Safety
Pioneering Safety Strong execution & record 2023 results Driving organic growth & margin expansion Balanced capital allocation 12 Q4-2023 Financial Results
Slide 13: Q&A
Q&A
Slide 14: Appendix
Appendix
Slide 15: Q4-2023 Allegion EPS Performance
Q4-2023 Allegion EPS Performance M&A: $0.02 Amortization/Inv-step up: $0.14 Restructuring: $0.05 M&A: $0.09 Amortization: $0.11 Impairment: $0.06 Investment loss: $0.03 15 Q4-2023 Financial Results See press release for non-GAAP reconciliations
Slide 16: FY-2023 Financial Summary
FY-2023 Financial Summary Revenue1 Adjusted OI Adjusted EBITDA Adjusted ACF1 $Millions Margin1 Margin1 EPS1 YTD +11.6% +160 bps +140 bps +16.2% +30.6% 23.5% $3,650.8 22.1% 22.1% $6.96 $516.4 $3,271.9 20.5% $5.99 $395.5 FY 22 FY 23 FY 22 FY 23 FY 22 FY 23 FY 22 FY 23 FY 22 FY 23 ▪ Organic revenue inc
Slide 17: FY-2023 Allegion EPS Performance
FY-2023 Allegion EPS Performance Restructuring: $0.11 M&A: $0.18 Amortization: $0.46 Restructuring: $0.04 Impairment: $0.06 M&A: $0.26 Investment loss: $0.03 Amortization: $0.41 Loss on divestiture: $0.10 Debt Financing: $0.04 Investment gains: ($0.05) 17 Q4-2023 Financial Results See press release
Slide 18: FY-2024 EPS Outlook Details
FY-2024 EPS Outlook Details Interest/Other: ~$84M Share Count: ~88M Tax Rate at midpoint of 18% - 19% Restructuring: $0.11 M&A: ($0.03) M&A: $0.18 Restructuring ($0.06) Amortization: $0.46 Amortization: ($0.46) Impairment: $0.06 Investment loss: $0.03 18 Q4-2023 Financial Results See press release f
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures The company presents operating income, operating margin, effective tax rate, net debt, net earnings and diluted earnings per share (EPS) on both a U.S. GAAP basis and on an adjusted (non-GAAP) basis, revenue growth on a U.S. GAAP basis and organic revenue growth o
Slide 20: About Allegion
About Allegion™ Allegion (NYSE: ALLE) is a global pioneer in seamless access, with leading brands like CISA®, Interflex®, LCN®, Schlage®, SimonsVoss® and Von Duprin®. Focusing on security around the door and adjacent areas, Allegion secures people and assets with a range of solutions for homes, busi