Allegion Plc · NYSE:ALLE
Allegion — Q1 2024 Earnings Presentation
17 slides from Allegion's earnings presentation, Apr 25, 2024
Slide 1: Q1-2024 Earnings Call
Q1-2024 Earnings Call April 25, 2024
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements This presentation contains "forward-looking statements," which are statements that are not historical facts, including, but not limited to, statements related to Key Business Drivers, FY-2024 Outlook and statements regarding market trends, electronics
Slide 3: Strong Q1 Execution by Allegion Team
Strong Q1 Execution by Allegion Team Institutional markets remain healthy Delivering balanced capital allocation Affirming full-year 2024 outlook Organic revenue growth 1-3%; Adjusted EPS $7.00-$7.15; ACF $540M-$570M 3 Q1-2024 Financial Results See appendix for definitions and press release for non-
Slide 4: Capital Allocation
Capital Allocation Invest for Mergers & Dividend Share Repurchases Organic Growth Acquisitions $42M $40M $0.48 per ordinary share Closed March 2024 In Q1 2024 of the company 4 Q1-2024 Financial Results All brand names, product names or trademarks are the property of their respective owners.
Slide 5: Q1-2024 Financial Summary
Q1-2024 Financial Summary Revenue Adjusted OI Adjusted EBITDA Adjusted ACF YTD $Millions Margin Margin EPS $Millions -3.2% +40 bps +50 bps -1.9% -48.8% $923.0 22.8% $46.7 $893.9 22.3% $1.58 $1.55 20.8% 21.2% $23.9 Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 ▪ Organic revenue decline
Slide 6: Revenue Results
Q1-2024 Revenue Results $Millions 950.0 $923 $913 $918 $897 $894 900.0 850.0 800.0 750.0 700.0 650.0 600.0 15.0% 5.6% -0.6% 2.6% -3.6% 550.0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Reported Organic Current Quarter Revenue Prior Quarter Revenue Organic Growth % noted Americas Q1 -4.3% -4.3% Price Vol
Slide 7: Allegion Americas Results
Q1-2024 Allegion Americas Results Revenue Adjusted OI% Adjusted EBITDA% $Millions -4.3% +120 bps +140 bps $740.9 $709.3 29.2% 27.9% 27.8% 26.7% Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Q1 Revenue Performance Q1 Adjusted Margin Performance ▪ Organic revenue decline of 4.3% ▪ Strong operational execution o
Slide 8: Allegion International Results
Q1-2024 Allegion International Results Revenue Adjusted OI% Adjusted EBITDA% $Millions +1.4% -40 bps -50 bps $182.1 $184.6 13.4% 12.9% 10.8% 10.4% Q1 23 Q1 24 Q1 23 Q1 24 Q1 23 Q1 24 Q1 Revenue Performance Q1 Adjusted Margin Performance ▪ Organic revenue decline of 0.8% driven by continued ▪ Modest
Slide 9: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Available Cash Flow Working Capital Leverage $Millions -48.8% $46.7 Working Capital % of Revenue $23.9 10.0% 9.0% Q1 Q1 Q1 2023 Q1 2024 2023 2024 Capex $22.3M $27.2M ▪ PY strength driven by supply chain ▪ Increase driven by receivables associated ▪ Healthy balance sheet sup
Slide 10: Key Business Drivers
Key Business Drivers Healthy Long-term Indicators Winning Business Model US Municipal Bond Issuance LTM $600 $500 ($ Billions) $400 $300 $200 $100 $0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ▪ Long-term annual growth of 1-2%, can precede institutional ▪ Sizable healthcare wins in the U
Slide 11: Pioneering Safety
Pioneering Safety TM Strong Q1 execution by Allegion team Delivering balanced capital allocation Affirming full-year 2024 outlook 11 Q1-2024 Financial Results
Slide 12: Q&A
Q&A
Slide 13: Appendix
Appendix
Slide 14: Affirming FY-2024 Outlook
Affirming FY-2024 Outlook Reported Revenue Reported EPS ▪ Americas: 1.5% to 3.5% ▪ $6.45 to $6.60 ▪ International: 1.5% to 3.5% ▪ Total: 1.5% to 3.5% Adjusted EPS ▪ $7.00 to $7.15 Organic Revenue ▪ $0.55 adjustments to reported EPS from ▪ Americas: 1.5% to 3.5% amortization, M&A and restructuring ▪
Slide 15: Allegion EPS Performance
Q1-2024 Allegion EPS Performance M&A: $0.03 Restructuring: $0.03 M&A: $0.02 Amortization: $0.12 Amortization: $0.12 15 Q1-2024 Financial Results See appendix for definitions and press release for non-GAAP reconciliations
Slide 16: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures The company presents operating income, operating margin, effective tax rate, net debt, net earnings and diluted earnings per share (EPS) on both a U.S. GAAP basis and on an adjusted (non-GAAP) basis, revenue growth on a U.S. GAAP basis and organic revenue growth o
Slide 17: About Allegion
About Allegion™ Allegion (NYSE: ALLE) is a global pioneer in seamless access, with leading brands like CISA®, Interflex®, LCN®, Schlage®, SimonsVoss® and Von Duprin®. Focusing on security around the door and adjacent areas, Allegion secures people and assets with a range of solutions for homes, busi