Resideo Technologies, Inc. · NYSE:REZI
Resideo Technologies — Q1 2024 Earnings Presentation
23 slides from Resideo Technologies's earnings presentation, May 2, 2024
Slide 1: Q1 2024 Results Presentation
Q1 2024 RESULTS PRESENTATION May 2, 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 Q1 2024 Highlights
Resideo Q1 2024 Highlights • Revenue at mid-point and Adjusted EBITDA at higher end of outlook • Continued Products and Solutions gross margin and Adjusted EBITDA margin expansion • Progress on cost reductions with lower OPEX y/y and additional actions announced • Executing on portfolio repositionin
Slide 4: Snap One Provides Multiple Value Creation Levers
Snap One Provides Multiple Value Creation Levers Complementary Enhanced Integrator Meaningfully Expands Significant Identified Capabilities Expand Value Proposition ADI Proprietary Business and Differentiated Market Product Opportunity Financial Synergies Position 4 © 2024 Resideo Technologies, Inc
Slide 5: Products and Solutions Q1 2024 Highlights
Products and Solutions Q1 2024 Highlights • Revenue growth in First Alert and stabilizing HVAC channel inventory largely offset Genesis divestiture and ongoing headwinds from higher interest rates and slower housing turnover • Continued progress on new product introductions and new product pipeline
Slide 6: ADI Global Distribution Q1 2024 Highlights
ADI Global Distribution Q1 2024 Highlights • Softer market demand across video and residential security categories more than offset growth in fire and data communications • Growth in exclusive brands, up 7% y/y, and e-commerce sales, up 1% y/y, with expanding customer engagement in digital channel •
Slide 7: Q1 2024 Financial Summary
Q1 2024 Financial Summary ($ in millions, except per share) Q1 2024 Q1 2023 % change Y/Y Net Revenue 1,486 1,549 -4% P&S Revenue 620 658 -6% ADI Revenue 866 891 -3% Gross Margin 26.9% 27.0% -10bps P&S Gross Margin 39.5% 37.7% +180bps ADI Gross Margin 18.0% 19.2% -120bps Operating Profit 128 138 -7%
Slide 8: Resideo Key Financial Trends
Resideo Key Financial Trends $M Revenue -4% Y/Y $M Adjusted EBITDA -1% Y/Y Q1 2024 HIGHLIGHTS $1,700 $200 • Market headwinds persist across $1,600 $1,500 both businesses, impacting $150 $1,400 revenue growth $1,300 $100 • Continued positive trends in $1,200 $1,100 $50 Products and Solutions gross Q1
Slide 9: Products and Solutions Financial Trends
Products and Solutions Financial Trends P&S Revenue -6% P&S Gross Margin +180 Q1 2024 HIGHLIGHTS $M Y/Y bps $800 44% • Revenue down 6% y/y but $700 40% essentially flat excluding Genesis $600 36% sale impact $500 32% • Strong performance in First Alert $400 28% and stabilizing conditions in U.S. Q1
Slide 10: ADI Global Distribution Financial Trends
ADI Global Distribution Financial Trends ADI Revenue -3% ADI Gross Margin -120 Q1 2024 HIGHLIGHTS $M Y/Y bps $1,000 20% • Revenue down 3% y/y driven by $900 18% softer residential security and $800 15% video categories, partially offset by growth in fire category $700 13% $600 10% • Daily sales tren
Slide 11: Balance Sheet and Cash Flow Summary (Unaudited)
Balance Sheet and Cash Flow Summary (Unaudited) ($ in millions) Mar 30, 2024 Dec 31, 2023 Apr 1, 2023 Cash and cash equivalents 603 636 292 Total debt 1,406 1,408 1,414 Accounts receivable, net 933 973 985 Inventories, net 929 941 1,008 Accounts payable 858 905 894 Cash provided (used) by operating
Slide 12: Strong Balance Sheet and Cash Generation
Strong Balance Sheet and Cash Generation Free Cash Flow (1) ($ in millions) Mar 30, 2024 $400 Cash and cash equivalents 603 $300 Total debt 1,406 Net debt / LTM Adjusted EBITDA 1.4x $200 Mar 30, 2024 $100 Cash provided by operating activities (LTM) 446 Capital expenditures (LTM) 106 $0 2020 2021 202
Slide 13: 2024 Outlook
2024 Outlook ($ in millions, except per share) Q2 2024 2024 Additional Items for 2024 Consolidated Revenue $1,510 to $1,560 $6,080 to $6,280 Corporate costs ~$130 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 14: Transformation Focus on Accelerating Profitable Growth
Transformation Focus on Accelerating Profitable Growth Portfolio Rebalancing Cost Reduction Initiatives Operational Improvements ✓ New product launches ✓ Manufacturing optimization ✓ Growing ADI digital capabilities • Video solutions • San Diego facility • User experience • Connected water • Mexico
Slide 15: 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 16: Appendix
APPENDIX 16 © © 2024 2024 Resideo Resideo Technologies, Technologies, Inc Inc
Slide 17: Summary Financial Results (Unaudited)
Summary Financial Results (Unaudited) Q1 2024 (1) Products and ADI Global (in millions) Solutions Distribution Corporate Total Company Net revenue $ 620 $ 866 $ — $ 1,486 Cost of goods sold 375 710 1 1,086 Gross profit 245 156 (1) 400 Research and development expenses 25 — — 25 Selling, general and
Slide 18: Consolidated Statements of Operations (Unaudited)
Consolidated Statements of Operations (Unaudited) Three Months Ended (in millions, except per share data) March 30, 2024 April 1, 2023 Net revenue $ 1,486 $ 1,549 Cost of goods sold 1,086 1,131 Gross profit 400 418 Operating expenses: Research and development expenses 25 25 Selling, general and admi
Slide 19: Consolidated Balance Sheets (Unaudited)
Consolidated Balance Sheets (Unaudited) (in millions, except par value) March 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 603 $ 636 Accounts receivable, net 933 973 Inventories, net 929 941 Other current assets 212 193 Total current assets 2,677 2,743 Property, plan
Slide 20: Consolidated Statements of Cash Flows (Unaudited)
Consolidated Statements of Cash Flows (Unaudited) Three Months Ended (in millions) March 30, 2024 April 1, 2023 Cash Flows From Operating Activities: Net income $ 43 $ 57 Adjustments to reconcile net income to net cash in operating activities: Depreciation and amortization 24 24 Restructuring expens
Slide 21: 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 (in millions, except per share data) March 30, 2024 April 1, 2023 GAAP Net income applicable to common shares $ 43 $ 57 Stock-based compensation expen
Slide 22: Non-GAAP Financial Measures and Reconciliations (Unaudited)
Non-GAAP Financial Measures and Reconciliations (Unaudited) Resideo Adjusted EBITDA Three Months Ended (in millions) March 30, 2024 April 1, 2023 Net revenue $ 1,486 $ 1,549 GAAP Net income applicable to common shares $ 43 $ 57 Provision for income taxes 30 24 GAAP Income before taxes 73 81 Deprecia
Slide 23: Non-GAAP Financial Measures and Reconciliations (Unaudited)
Non-GAAP Financial Measures and Reconciliations (Unaudited) Products and Solutions Segment Three Months Ended (in millions) March 30, 2024 April 1, 2023 Net revenue $ 620 $ 658 GAAP Income from operations $ 112 $ 105 Stock-based compensation expense 6 4 Restructuring expenses 5 2 Non-GAAP Adjusted I