Resideo Technologies, Inc. · NYSE:REZI
Resideo Technologies — Q1 2020 Earnings Presentation
16 slides from Resideo Technologies's earnings presentation, May 7, 2020
Slide 1: Q1 2020 Results
Q1 2020 Results May 7, 2020
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: Today's Agenda
TODAY’S AGENDA AGENDA Recent Events 2020 Q1 Results and Appendix & Financials Segment update 2 © 2020 Resideo Technologies, Inc
Slide 4: Actions in Response to COVID-19 Pandemic
ACTIONS IN RESPONSE TO COVID-19 PANDEMIC Focus Areas Actions • Offerings deemed “essential” by U.S., Canada and certain other international governments Employee & • Ongoing operations being closely managed consistent with heath and safety guidelines Customer Safety • Implementing measures to ensure
Slide 5: Financial & Operational Review Update
FINANCIAL & OPERATIONAL REVIEW UPDATE Estimated Adjusted EBITDA Areas of Focus Key Workstreams Status Update Improvements From F&O Only1 • Product portfolio and pricing optimization • Underway Revenue & • Direct materials and freight contract renegotiations • 50% completed Gross Margin – Primarily d
Slide 6: Consolidated Q1 Performance
Q1 PERFORMANCE Q1 Actual Commentary -3% -22% • 3% GAAP revenue decrease, 2% Constant Currency CONSOLIDATED $1.2B $1.2B $127M decline $99M • Adjusted EBITDA down 22%, driven by lower P&S sales volume and unfavorable mix 2019 2020 2019 2020 External Revenue(1) Adj. EBITDA(2) • COVID impacts partially
Slide 7: Q1 Actual | Sales & EBITDA Walks
Q1 Actual | Sales & EBITDA Walks 1Q 2020 GAAP REVENUE AND ADJUSTED EBITDA1 Revenue $1.2B $44M $1.2B ($72M) ($9M) Year-over- Year Decline -3% Reported -2% Constant Currency 2019 Q1 ADI Revenue P&S Revenue FX 2020 Q1 Actual Actual Adjusted EBITDA1 $127M $8M $99M $16M ($3M) ($49M) Volume $(32M) Price/M
Slide 8: Cash Flow and Debt
CASH FLOW AND DEBT Cash & Liquidity • $338 million cash balance as of March 31, 2020 – Includes $350 million revolver draw down in March as conservative measure • Agreement with Honeywell to defer $42 million of payments(1) due in Q2 to July 30, 2020 • Refining processes to reduce net working capita
Slide 9: Summary
SUMMARY • Safety of our employees, professional installers and customers remains our #1 priority • Q1 results in line with 2019 year-end analyst call • Immediate proactive measures taken to align operations with COVID-19 pandemic impacts • Financial & Operational review has accelerated cost and liqu
Slide 10: Appendix
APPENDIX ADD TITLE HERE
Slide 11: Summary of Interim Financial Results – Segment
SUMMARY OF INTERIM FINANCIAL RESULTS – SEGMENT 1Q 2020 1Q 2019 % Change Products & Solutions Revenue (1) 475 551 -14% Constant Currency (Non-GAAP) (2) -13% Segment Adjusted EBITDA 53 81 -35% ADI Global Distribution Revenue 704 665 6% (2) 7% Constant Currency (Non-GAAP) Segment Adjusted EBITDA 46 46
Slide 12: Consolidated Interim Statements of Operations
CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended March 31, 2020 2019 (Dollars in millions except share and per share data) Net revenue $ 1,179 $ 1,216 Cost of goods sold (1) 895 884 Gross profit 284 332 Selling, general and administrative expenses (1) 250 247 Operating pr
Slide 13: Consolidated Interim Balance Sheets
CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED) March 31, December 31, 2020 2019 (Dollars in millions, shares in thousands) ASSETS Current assets: Cash and cash equivalents $ 338 $ 122 Accounts receivable – net 820 817 Inventories – net 671 671 Other current assets 164 175 Total current assets 1,993
Slide 14: Consolidated Interim Statements of Cash Flows
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended March 31, 2020 2019 (Dollars in millions) Cash flows used for operating activities: Net (loss) income $ (21) $ 48 Adjustments to reconcile net (loss) income to net cash used for operating activities: Depreciation and amorti
Slide 15: Reconciliation of Net (Loss) Income to Non-GAAP Financial Measures
RECONCILIATION OF NET (LOSS) INCOME TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) Three Months Ended March 31, (1) Represents recorded expenses / gains related to the Honeywell reimbursement agreement. Pursuant to the 2020 2019 Honeywell reimbursement agreement, we are responsible to indemnify Honeywel
Slide 16: Reconciliation of Constant Currency % Change
RECONCILIATION OF CONSTANT CURRENCY % CHANGE Three Months Ended March 31, 2020 (Dollars in millions) % Change Products & Solutions revenue (decline) Net Products & Solutions revenue (decline) $ (76) -14% Exclude: Foreign currency translation (4) -1% Constant currency (decline) (Non-GAAP) (72) -13% A