Resideo Technologies, Inc. · NYSE:REZI
Resideo Technologies — Q4 2023 Earnings Presentation
23 slides from Resideo Technologies's earnings presentation, Feb 13, 2024
Slide 1: Q4 2023 Results Presentation
Q4 2023 RESULTS PRESENTATION February 13, 2024
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains “forward-looking statements.” All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are f
Slide 3: Resideo 2023 Highlights
Resideo 2023 Highlights • Improved business execution in second half with Products and Solutions transformation work beginning to show through in financials • Strong cash generation driven by improved working capital performance • Executing on portfolio optimization and repositioning • Driving cost
Slide 4: Products and Solutions 2023 Highlights
Products and Solutions 2023 Highlights • Completed sale of Genesis business and outsourcing of San Diego castings facility • Improved new product introduction cadence highlighted by video doorbell, outdoor camera, connected water solutions, and Pro Series EMEA • Expanded partnerships across insuranc
Slide 5: ADI Global Distribution 2023 Highlights
ADI Global Distribution 2023 Highlights • Grew e-commerce revenue 8% y/y; continued enhancement of digital offering with investment in user experience and backend infrastructure • Expanded presence in key adjacent audio-visual category • Opened Dallas super center distribution hub providing capacity
Slide 6: 2023 Financial Summary
2023 Financial Summary ($ in millions, except per share) Q4 2023 Q4 2022 % change Y/Y 2023 2022 % change Y/Y Net Revenue 1,537 1,560 -1% 6,242 6,370 -2% P&S Revenue 683 693 -1% 2,672 2,783 -4% ADI Revenue 854 867 -1% 3,570 3,587 --% Gross Margin 27.5% 27.6% -10bps 27.2% 27.7% -50bps P&S Gross Margin
Slide 7: Resideo Key Financial Trends
Resideo Key Financial Trends $M Revenue -1% Y/Y $M Operating Profit +50% Y/Y Q4 2023 HIGHLIGHTS $1,700 $200 • Revenue trends stabilized with $1,600 $1,500 price realization largely offsetting $150 $1,400 volume pressure $1,300 $100 • Continued input cost reductions $1,200 $1,100 $50 within Products
Slide 8: Products and Solutions Financial Trends
Products and Solutions Financial Trends P&S Revenue -1% P&S Gross Margin +110 Q4 2023 HIGHLIGHTS Y/Y bps $M $800 44% • Revenue down 1% y/y and up 2% 40% excluding Genesis sale impact $700 $600 36% • Gross margin up 110 bps reflecting $500 32% reduced input costs and $400 28% restructuring benefits Q
Slide 9: ADI Global Distribution Financial Trends
ADI Global Distribution Financial Trends ADI Revenue -1% ADI Gross Margin -110 Q4 2023 HIGHLIGHTS $M Y/Y bps $1,000 20% • Revenue down 1% y/y driven by $900 18% declines in residential security 15% category, offset by growth in $800 access control and Pro AV $700 13% $600 10% • E-commerce sales up 1
Slide 10: Balance Sheet and Cash Flow Summary (Unaudited)
Balance Sheet and Cash Flow Summary (Unaudited) ($ in millions) Dec 31, 2023 Sept 30, 2023 Dec 31, 2022 Cash and cash equivalents 636 368 326 Total debt 1,408 1,409 1,416 Accounts receivable, net 973 988 1,002 Inventories, net 941 970 975 Accounts payable 905 863 894 Cash provided (used) by operatin
Slide 11: Market and Business Assumptions for 2024
Market and Business Assumptions for 2024 • Residential repair and remodel market flat to down LSDs year-over-year • Residential new construction market up LSDs to MSDs year-over-year • HVAC channel inventory levels to largely normalize in first half 2024 • ADI core commercial categories up LSDs year
Slide 12: 2024 Outlook
2024 Outlook ($ in millions, except per share) Q1 2024 2024 Additional Items for 2024 Consolidated Revenue $1,460 to $1,510 $6,080 to $6,280 Corporate costs ~$210 ADI Revenue Growth Y/Y 0% to 3% Stock-based comp ~$60 P&S Revenue Growth Y/Y -6% to -2% D&A ~$100 Capital expenditures ~$105 Adjusted EBI
Slide 13: Priorities for 2024
Priorities for 2024 • Continued portfolio, manufacturing, and footprint optimization • Accelerate the pace of new product innovation at Products and Solutions • Build upon recent positive margin expansion progress at Products and Solutions • Grow touchless and exclusive brands as a percent of ADI sa
Slide 14: Our Values
Our Values Start with Act as Pioneer Make a the customer one team the future difference We understand our We work together We embrace We care about the customers’ needs toward common change, boldly step long-lasting and pride ourselves goals, engaging from into the unknown, positive impact we on del
Slide 15: Appendix
APPENDIX 15 Resideo Resideo Confidential Confidential -- © © 2024 2024 Resideo Resideo Technologies, Technologies, Inc Inc
Slide 16: Summary Financial Results (Unaudited)
Summary Financial Results (Unaudited) (1) Q4 2023 YTD 2023 Products and ADI Global Products and ADI Global (in millions) Solutions Distribution Corporate Total Company Solutions Distribution Corporate Total Company Net revenue $ 683 $ 854 $ — $ 1,537 $ 2,672 $ 3,570 $ — $ 6,242 Cost of goods sold 41
Slide 17: Consolidated Statements of Operations (Unaudited)
Consolidated Statements of Operations (Unaudited) Three Months Ended Twelve Months Ended (in millions, except per share data) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Net revenue $ 1,537 $ 1,560 $ 6,242 $ 6,370 Cost of goods sold 1,114 1,129 4,546 4,604 Gross profit 42
Slide 18: Consolidated Balance Sheets (Unaudited)
Consolidated Balance Sheets (Unaudited) (in millions, except par value) December 31, 2023 December 31, 2022 ASSETS Current assets: Cash and cash equivalents $ 636 $ 326 Accounts receivable, net 973 1,002 Inventories, net 941 975 Other current assets 193 199 Total current assets 2,743 2,502 Property,
Slide 19: Consolidated Statements of Cash Flows (Unaudited)
Consolidated Statements of Cash Flows (Unaudited) Three Months Ended Twelve Months Ended (in millions) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Cash Flows From Operating Activities: Net income $ 82 $ 39 $ 210 $ 283 Adjustments to reconcile net income to net cash in ope
Slide 20: Non-GAAP Financial Measures and Reconciliations (Unaudited)
Non-GAAP Financial Measures and Reconciliations (Unaudited) Adjusted Net Income Per Diluted Common Share and Net Income Comparison Three Months Ended Twelve Months Ended (in millions, except per share data) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 GAAP Net income appli
Slide 21: Non-GAAP Financial Measures and Reconciliations (Unaudited)
Non-GAAP Financial Measures and Reconciliations (Unaudited) Resideo Adjusted EBITDA Three Months Ended Twelve Months Ended (in millions) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Net revenue $ 1,537 $ 1,560 $ 6,242 $ 6,370 GAAP Net income applicable to common shares $ 8
Slide 22: Non-GAAP Financial Measures and Reconciliations (Unaudited)
Non-GAAP Financial Measures and Reconciliations (Unaudited) Products and Solutions Segment Three Months Ended Twelve Months Ended (in millions) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Net revenue $ 683 $ 693 $ 2,672 $ 2,783 GAAP Income from operations $ 143 $ 96 $ 495
Slide 23: Non-GAAP Financial Measures and Reconciliations (Unaudited)
Non-GAAP Financial Measures and Reconciliations (Unaudited) Resideo Non-GAAP Adjusted EBITDA Q1 2024 Fiscal Year 2024 (in millions) Low High Low High Net revenue $ 1,460 $ 1,510 $ 6,080 $ 6,280 GAAP Net income applicable to common shares $ 37 $ 57 $ 210 $ 270 Provision for income taxes 26 26 125 145