Resideo Technologies, Inc. · NYSE:REZI
Resideo Technologies — Q4 2020 Earnings Presentation
20 slides from Resideo Technologies's earnings presentation, Feb 25, 2021
Slide 1: Q4 2020 and Full Year 2020 Results
Q4 2020 and Full Year 2020 Results February 25, 2021
Slide 2: Disclaimer: Forward-Looking Statements
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: Q4 2020 Financial Highlights
Q4 2020 FINANCIAL HIGHLIGHTS • Positive demand trends across business ‒ Q4 2020 revenue up 15% year-over-year, operating profit more than doubled year-over-year to $152 million • Products & Solutions benefiting from home investment and increased security awareness ‒ Q4 2020 segment revenue grew 18%
Slide 4: Q4 2020 Business Highlights
Q4 2020 BUSINESS HIGHLIGHTS • Significant progress on transformation initiatives ‒ Focus on ingraining efficiency, cost savings and innovation into Resideo’s culture ‒ Transformation initiatives delivered over $50 million of net savings for 2020, above initial $30 million to $40 million objective •
Slide 5: Q4 2020 and Full Year 2020 Performance
Q4 2020 AND FULL YEAR 2020 PERFORMANCE ($ in millions, except per share) Q4 2020 Q4 2019 Y/Y FY 2020 FY 2019 Y/Y Net Revenue 1,501 1,304 +15% 5,071 4,988 +2% P&S Segment Revenue(1) 676 575 +18% 2,121 2,175 -2% ADI Segment Revenue 825 729 +13% 2,950 2,813 +5% Gross Margin % 28.2% 24.0% +420 bps 25.9%
Slide 6: Q4 2020 Resideo Performance
Q4 2020 RESIDEO PERFORMANCE Q4 2020 Actual Commentary +15% +111% • 15% revenue increase due to growth at both ADI Global Distribution and Products & Solutions, driven by strength $1,501M $152M $1,304M across residential focused end markets and categories RESIDEO $72M • Operating income increased 111
Slide 7: 2020 Resideo Performance
2020 RESIDEO PERFORMANCE 2020 Actual Commentary +2% +21% • 2% revenue increase due to growth at ADI Global Distribution, partially offset by declines within Products & $4,988M $5,071M $311M $258M Solutions during first half of 2020 RESIDEO • Operating income increased 21% due to transformation savin
Slide 8: Products & Solutions Performance
Q4 2020 PRODUCTS & SOLUTIONS PERFORMANCE Q4 2020 Actual Commentary • 18% revenue increase due to positive demand trends across PRODUCTS & SOLUTIONS +18% +98% $676M $166M each of Products & Solutions’ primary end markets and $575M channels $84M • Segment operating income increased 98% due to higher 2
Slide 9: ADI Global Distribution Performance
Q4 2020 ADI GLOBAL DISTRIBUTION PERFORMANCE Q4 2020 Actual Commentary ADI GLOBAL DISTRIBUTION +13% +13% • 13% revenue increase due to strong demand across $729M $825M $59M geographies, Herman ProAV acquisition and growth in e- $52M commerce sales • Segment operating income increased 13% due to highe
Slide 10: 2020 Products & Solutions Performance
2020 PRODUCTS & SOLUTIONS PERFORMANCE 2020 Actual Commentary • 2% revenue decrease due to COVID-19 and market related PRODUCTS & SOLUTIONS -2% +24% $2,175M $2,121M $407M softness in first half of 2020, partially offset by an $327M acceleration in demand in second half • Segment operating income incr
Slide 11: 2020 ADI Global Distribution Performance
2020 ADI GLOBAL DISTRIBUTION PERFORMANCE 2020 Actual Commentary ADI GLOBAL DISTRIBUTION +5% $2,950M -8% • 5% revenue increase due to growth in North America, EMEA $2,813M $210M $194M and e-commerce and the Herman ProAV acquisition • Segment operating income decreased 8% driven by lower gross margin,
Slide 12: Balance Sheet and Cash Flow
BALANCE SHEET AND CASH FLOW ($ in millions) Q4 2020 Q3 2020 FY 2019 Cash and cash equivalents 517 260 122 Total debt 1,162 1,322 1,180 Accounts receivable 863 884 817 Inventories 672 618 671 Accounts payable 936 858 920 Cash provided by operating activities 152 21 23 Feb. 2021 Debt Refinancing • Com
Slide 13: 2021 Outlook
2021 OUTLOOK ($ in millions) Q1 2021E FY 2021E Revenue $1,300 to $1,350 $5,200 to $5,400 Gross Margin 25% to 27% 26% to 28% Operating Profit $110 to $120 $450 to $500 Corporate costs ~$225 Other Expense to include Capital expenditures ~$90 Additional Items loss on early retirement of debt of ~$26 In
Slide 14: Appendix
APPENDIX ADD TITLE HERE
Slide 15: Summary of Financial Results (Unaudited)
SUMMARY OF FINANCIAL RESULTS (UNAUDITED) (in millions) (1) Represents Product & Solutions revenue, excluding intersegment revenue of $97 million and $367 million for the three and twelve months ended December 31, 2020 and $84 million and $312 million for the three and twelve months ended December 31
Slide 16: Consolidated Interim Statements of Operations (Unaudited)
CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (UNAUDITED) (1) On January 1, 2020, the Company changed its classification of research and development expenses in the Consolidated Interim Statements of Operations from Cost of goods sold to Selling, general and administrative expenses, such that resear
Slide 17: Consolidated Balance Sheets (Unaudited)
CONSOLIDATED BALANCE SHEETS (UNAUDITED) 16 © 2021 Resideo Technologies, Inc
Slide 18: Consolidated Statements of Cash Flows (Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) 17 © 2021 Resideo Technologies, Inc
Slide 19: Reconciliation of Net Income (Loss) to Non-GAAP Financial Measures
RECONCILIATION OF NET INCOME (LOSS) (UNAUDITED) TO NON-GAAP FINANCIAL MEASURES (1) Represents recorded expenses / gains related to the Reimbursement Agreement with Honeywell. Pursuant to the Reimbursement Agreement, we are responsible to indemnify Honeywell in amounts equal to 90% of payments, which
Slide 20: Reconciliation of Quarterly Financial Results – Segment
RECONCILIATION OF QUARTERLY FINANCIAL RESULTS (UNAUDITED) – SEGMENT (in millions) (1) Segment Adjusted EBITDA (Non-GAAP) for the Products & Solutions and ADI Global Distribution segments contain allocations of Corporate costs to be consistent with historical presentation. 19 © 2021 Resideo Technolog