Resideo Technologies, Inc. · NYSE:REZI
Resideo Technologies — Q2 2024 Earnings Presentation
21 slides from Resideo Technologies's earnings presentation, Aug 8, 2024
Slide 1: Q2 2024 Results Presentation
Q2 2024 RESULTS PRESENTATION August 8, 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 Q2 2024 Highlights
Resideo Q2 2024 Highlights • Revenue and Adjusted EBITDA above high end of outlook range • Adjusted EBITDA margin expansion via improved gross margin and thoughtful cost management, resulting in strong free cash flow in the quarter • Continued Products and Solutions gross margin and Adjusted EBITDA
Slide 4: Products and Solutions Q2 2024 Highlights
Products and Solutions Q2 2024 Highlights • First Alert safety products had double-digit sales growth; normalization of North American channel inventory largely offset slower activity in EMEA and security products • Continued strength in new construction channel • Expanded new product pipeline with
Slide 5: ADI Global Distribution Q2 2024 Highlights
ADI Global Distribution Q2 2024 Highlights • Growth in commercial fire, residential intrusion, datacom, and professional AV partially offset by softer market demand across video surveillance and residential AV • Exclusive brands grew 18% y/y, excl. Snap One, with further expansion opportunity lookin
Slide 6: Q2 2024 Financial Summary
Q2 2024 Financial Summary ($ in millions, except per share) Q2 2024 Q2 2023 % change Y/Y Net Revenue 1,589 1,602 -1% P&S Revenue 630 677 -7% ADI Revenue 959 925 +4% Gross Margin 28.1% 27.2% +90 bps P&S Gross Margin 41.3% 38.3% +300 bps ADI Gross Margin 19.4% 19.2% +20 bps Operating Profit 122 153 -2
Slide 7: Resideo Key Financial Trends
Resideo Key Financial Trends $M Revenue -1% Y/Y $M Adjusted EBITDA +13% Y/Y Q2 2024 HIGHLIGHTS $1,700 $200 • Stabilizing demand trends in core $1,600 $1,500 markets despite ongoing macro $150 $1,400 headwinds of higher interest rates $1,300 $100 and soft existing home sales $1,200 $1,100 $50 • Gross
Slide 8: Products and Solutions Financial Trends
Products and Solutions Financial Trends P&S Revenue -7% P&S Gross Margin +300 Q2 2024 HIGHLIGHTS $M Y/Y bps 800 44% • Revenue down 7% y/y; down 2% 700 40% when excluding the sale of 600 36% Genesis 500 32% • Continued strong performance 400 28% from First Alert and normalization Q2 22 Q3 22 Q4 22 Q1
Slide 9: ADI Global Distribution Financial Trends
ADI Global Distribution Financial Trends ADI Revenue +4% ADI Gross Margin +20 Q2 2024 HIGHLIGHTS $M Y/Y bps $1,000 20% • Revenue up 4% y/y driven by $900 18% inclusion of 15 days of Snap One $800 15% results and improving demand trends across many core $700 13% categories $600 10% Q2 22 Q3 22 Q4 22
Slide 10: Balance Sheet and Cash Flow Summary (Unaudited)
Balance Sheet and Cash Flow Summary (Unaudited) ($ in millions); for three months ended June 29, 2024 Dec 31, 2023 Jul 1, 2023 Cash and cash equivalents 413 636 381 Total debt 1,991 1,408 1,412 Accounts receivable, net 1,071 973 1,043 Inventories, net 1,188 941 1,001 Accounts payable 980 905 948 Cas
Slide 11: Strong Balance Sheet and Cash Generation
Strong Balance Sheet and Cash Generation Free Cash Flow (1) ($ in millions) June 29, 2024 $400 Cash and cash equivalents 413 $300 Total debt 1,991 June 29, 2024 $200 Cash provided by operating activities (LTM) 417 $100 Capital expenditures (LTM) 92 $0 2020 2021 2022 2023 LTM (1) Free cash flow is ca
Slide 12: 2024 Outlook
2024 Outlook ($ in millions, except per share) Q3 2024 2024 Additional Items for 2024 Consolidated Revenue $1,790 to $1,830 $6,680 to $6,760 Stock-based comp ~$70 ADI Revenue Growth Y/Y 0% to 2% D&A ~$130 P&S Revenue Growth Y/Y -5% to -3% Capital expenditures ~$100 Net interest expense ~$80 Adjusted
Slide 13: 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 14: Appendix
APPENDIX 14 14 Resideo Resideo Confidential Confidential -- © © 2024 2023 Resideo Resideo Technologies, Technologies, Inc Inc
Slide 15: Summary Financial Results (Unaudited)
Summary Financial Results (Unaudited) (1) Q2 2024 (1) YTD 2024 (1) Products and ADI Global Total Products and ADI Global Total (in millions) Solutions Distribution Corporate Company Solutions Distribution Corporate Company Net revenue $ 630 $ 959 $ — $ 1,589 $ 1,250 $ 1,825 $ — $ 3,075 Cost of goods
Slide 16: Consolidated Statements of Operations (Unaudited)
Consolidated Statements of Operations (Unaudited) Three Months Ended Six Months Ended (in millions, except per share data) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Net revenue $ 1,589 $ 1,602 $ 3,075 $ 3,151 Cost of goods sold 1,142 1,166 2,228 2,295 Gross profit 447 436 847 856 Operati
Slide 17: Consolidated Balance Sheets (Unaudited)
Consolidated Balance Sheets (Unaudited) (in millions, except par value) June 29, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 413 $ 636 Accounts receivable, net 1,071 973 Inventories, net 1,188 941 Other current assets 212 193 Total current assets 2,884 2,743 Property, p
Slide 18: Consolidated Statements of Cash Flows (Unaudited)
Consolidated Statements of Cash Flows (Unaudited) Three Months Ended Six Months Ended (in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Cash Flows From Operating Activities: Net income $ 30 $ 50 $ 73 $ 107 Adjustments to reconcile net income to net cash in operating activities: Dep
Slide 19: 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 Six Months Ended (in millions, except per share data) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 GAAP Net income $ 30 $ 50 $ 73 $ 107 Less:
Slide 20: Non-GAAP Financial Measures and Reconciliations (Unaudited)
Non-GAAP Financial Measures and Reconciliations (Unaudited) Resideo Adjusted EBITDA Three Months Ended Six Months Ended (in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Net revenue $ 1,589 $ 1,602 $ 3,075 $ 3,151 GAAP Net income $ 30 $ 50 $ 73 $ 107 GAAP Net income as a % of net r
Slide 21: Non-GAAP Financial Measures and Reconciliations (Unaudited)
Non-GAAP Financial Measures and Reconciliations (Unaudited) Products and Solutions Segment Three Months Ended Six Months Ended (in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Net revenue $ 630 $ 677 $ 1,250 $ 1,335 GAAP Income from operations $ 130 $ 115 $ 242 $ 220 GAAP Income f