Resideo Technologies, Inc. · NYSE:REZI
Resideo Technologies — Q2 2023 Earnings Presentation
22 slides from Resideo Technologies's earnings presentation, Aug 3, 2023
Slide 1: Q2 2023 Results Presentation
Q2 2023 RESULTS PRESENTATION August 3, 2023
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 2023 Highlights
Resideo Q2 2023 Highlights • Revenue of $1.6B, down 5% y/y from record Q2 2022, reflecting reduced product volumes • Operating income of $153M, driven by lower revenue within Products & Solutions • Strong operating cash flow of $121 million, up $86 million y/y • Approval of $150M share repurchase au
Slide 4: Products & Solutions Q2 2023 Highlights
Products & Solutions Q2 2023 Highlights • Revenue of $677M, down 11% y/y, driven by lower volumes across product categories, partially offset by continued price realization • Gross margin expanded by 100 basis points, reflecting reduced input cost headwinds • Operating expenses flat y/y with cost sa
Slide 5: ADI Global Distribution Q2 2023 Highlights
ADI Global Distribution Q2 2023 Highlights • Revenue of $925M, flat y/y, growth in North America offset by decline in EMEA and sale of India business in late 2022 • Resilience in commercial categories offset by residential Security and AV market softness • E-commerce revenue grew 9% y/y and continue
Slide 6: Q2 2023 Financial Summary
Q2 2023 Financial Summary ($ in millions, except per share) Q2 2023 Q2 2022 % change Y/Y Net Revenue 1,602 1,686 -5% P&S Revenue 677 764 -11% ADI Revenue 925 922 +0% Gross Margin 27.2% 27.7% -50bps P&S Gross Margin 38.3% 37.3% +100bps ADI Gross Margin 19.2% 20.0% -80bps Operating Expense 283 281 +1%
Slide 7: Resideo Key Financial Trends
Resideo Key Financial Trends $M Revenue -5% Y/Y $M Operating Profit -18% Y/Y Q2 2023 HIGHLIGHTS $1,750 $1,500 $200 • Revenue growth y/y impacted by $1,250 slower end market demand trends $150 $1,000 across residential categories $750 $100 $500 • Revenue has grown at a 7% $250 $0 $50 CAGR from Q2 201
Slide 8: Products & Solutions Financial Trends
Products & Solutions Financial Trends P&S Revenue -11% P&S Gross Margin +100 Q2 2023 HIGHLIGHTS Y/Y bps $M $750 44% • Revenue down 11% y/y from $600 40% record Q2 22 performance driven $450 by reduced volumes across 36% $300 product categories 32% $150 $0 28% • Revenue has grown at a 6% Q2 21 Q3 21
Slide 9: ADI Global Distribution Financial Trends
ADI Global Distribution Financial Trends ADI Revenue Flat ADI Gross Margin -80 Q2 2023 HIGHLIGHTS $M Y/Y bps $1,000 22% • Revenue essentially flat y/y with $800 2% y/y growth in North America 18% $600 offset by EMEA and India sale $400 14% $200 • Revenue has grown at a 7% $0 10% CAGR from Q2 2019 Q2
Slide 10: Balance Sheet and Cash Flow Summary (Unaudited)
Balance Sheet and Cash Flow Summary (Unaudited) ($ in millions) Q2 2023 Q4 2022 Q2 2022 Cash and cash equivalents 381 326 251 Total debt 1,412 1,416 1,422 Accounts receivable, net 1,043 1,002 1,073 Inventories, net 1,001 975 971 Accounts payable 948 894 987 Cash provided (used) by operating activiti
Slide 11: 2023 Outlook
2023 Outlook ($ in millions) Q3 2023 2023 UPDATED 2023 PREVIOUS Revenue $1,515 to $1,565 $6,190 to $6,290 $6,200 to $6,550 Gross margin 26.1% to 27.1% 26.2% to 27.2% 26.8% to 27.8% GAAP operating profit $105 to $125 $530 to $570 $625 to $675 GAAP EPS $0.14 to $0.24 $1.15 to $1.35 $1.80 to $2.00 Non-
Slide 12: 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 13: Appendix
APPENDIX 13 13 Resideo Resideo Confidential Confidential -- © © 2023 2023 Resideo Resideo Technologies, Technologies, Inc Inc
Slide 14: Summary Financial Results (Unaudited)
Summary Financial Results (Unaudited) (1) Q2 2023 YTD 2023 Products and ADI Global Products and ADI Global (in millions) Solutions Distribution Corporate Total Company Solutions Distribution Corporate Total Company Net revenue $ 677 $ 925 $ — $ 1,602 $ 1,335 $ 1,816 $ — $ 3,151 Cost of goods sold 41
Slide 15: Consolidated Interim Statements of Operations (Unaudited)
Consolidated Interim Statements of Operations (Unaudited) Three Months Ended Six Months Ended (in millions, except per share data) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Net revenue $ 1,602 $ 1,686 $ 3,151 $ 3,192 Cost of goods sold 1,166 1,219 2,295 2,287 Gross profit 436 467 856 905 R
Slide 16: Consolidated Balance Sheets (Unaudited)
Consolidated Balance Sheets (Unaudited) December 31, (in millions, except par value) July 1, 2023 2022 ASSETS Current assets: Cash and cash equivalents $ 381 $ 326 Accounts receivable, net 1,043 1,002 Inventories, net 1,001 975 Other current assets 197 199 Total current assets 2,622 2,502 Property,
Slide 17: Consolidated Statements of Cash Flows (Unaudited)
Consolidated Statements of Cash Flows (Unaudited) Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, (in millions) 2023 2022 2023 2022 Cash Flows From Operating Activities: Net income $ 50 $ 94 $ 107 $ 181 Adjustments to reconcile net income to net cash in operating activities: Depr
Slide 18: 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) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 GAAP Net income applicable to common shares $ 50 $ 94 $ 107 $ 181 R
Slide 19: Non-GAAP Financial Measures and Reconciliations (Unaudited)
Non-GAAP Financial Measures and Reconciliations (Unaudited) Adjusted EBITDA Three Months Ended Six Months Ended (in millions) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Net revenue $ 1,602 $ 1,686 $ 3,151 $ 3,192 GAAP Net income applicable to common shares $ 50 $ 94 $ 107 $ 181 Provision fo
Slide 20: 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) July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Net revenue $ 677 $ 764 $ 1,335 $ 1,383 GAAP Income from operations $ 128 $ 154 $ 245 $ 307 Stock-based com
Slide 21: Non-GAAP Financial Measures and Reconciliations (Unaudited)
Non-GAAP Financial Measures and Reconciliations (Unaudited) Adjusted Net Income Per Diluted Common Share Q3 2023 Fiscal Year 2023 Low High Low High GAAP Net income per diluted common share $ 0.14 $ 0.24 $ 1.15 $ 1.35 Restructuring and impairment expenses 0.17 0.17 0.19 0.19 Pension settlement loss —
Slide 22: Non-GAAP Financial Measures and Reconciliations (Unaudited)
Non-GAAP Financial Measures and Reconciliations (Unaudited) Adjusted EBITDA Q3 2023 Fiscal Year 2023 (in millions) Low High Low High Net revenue $ 1,515 $ 1,565 $ 6,190 $ 6,290 GAAP Net income applicable to common shares $ 21 $ 36 $ 172 $ 201 Provision for income taxes 22 27 117 128 GAAP Income befo