Allegion Plc · NYSE:ALLE
Allegion — Q3 2024 Earnings Presentation
20 slides from Allegion's earnings presentation, Oct 24, 2024
Slide 1: Q3-2024 Earnings Call
Q3-2024 Earnings Call October 24, 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 FY- 2024 Outlook, 2025 Market Preview, FY-2024 EPS Outlook Details and statements regardi
Slide 3: Stable Markets, Strong Execution
Stable Markets, Strong Execution MSD revenue growth; Solid margin expansion Balanced, consistent capital deployment Raising EPS; Affirming FY-2024 total revenue 3 Q3-2024 Financial Results
Slide 4: Capital Allocation
Capital Allocation Invest for Dividend Acquisitions Share Repurchase Organic Growth $42M $40M Von Duprin 70 Series $0.48 per ordinary share Closed October 2024 In Q3 2024 Exit Devices of the company 4 Q3-2024 Financial Results
Slide 5: Q3-2024 Financial Summary
Q3-2024 Financial Summary Revenue Adjusted OI Adjusted EBITDA Adjusted ACF YTD $Millions Margin Margin EPS $Millions 5.4% +100 bps +100 bps +11.3% +21.1% $967.1 $2.16 25.7% $388.0 $917.9 24.7% $1.94 24.2% 23.2% $320.4 Q3 23 Q3 24 Q3 23 Q3 24 Q3 23 Q3 24 Q3 23 Q3 24 Q3 23 Q3 24 ▪ Organic growth of 3.
Slide 6: Q3-2024 Revenue Results
Q3-2024 Revenue Results $Millions 1,000.0 $966 $967 950.0 $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% 5.2% 3.3% 550.0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Reported Organic Current Quarter Revenue Prior Quarter Revenue Organic Grow
Slide 7: Allegion Americas Results
Q3-2024 Allegion Americas Results Revenue Adjusted OI% Adjusted EBITDA% $Millions +5.6% +110 bps +120 bps $740.9 $782.4 30.8% 29.5% 29.6% 28.4% Q3 23 Q3 24 Q3 23 Q3 24 Q3 23 Q3 24 Q3 Revenue Performance Q3 Adjusted Margin Performance ▪ Organic revenue growth of 4.1% ▪ Strong operational execution an
Slide 8: Allegion International Results
Q3-2024 Allegion International Results Revenue Adjusted OI% Adjusted EBITDA% $Millions +4.4% +20 bps +10 bps $177.0 $184.7 15.9% 16.0% 13.4% 13.6% Q3 23 Q3 24 Q3 23 Q3 24 Q3 23 Q3 24 Q3 Revenue Performance Q3 Adjusted Margin Performance ▪ Organic revenue growth of 0.2% ▪ Price and productivity excee
Slide 9: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Available Cash Flow Working Capital Leverage $Millions % of Revenue +21.1% $388.0 $320.4 8.5% 2.4x 2.7x 7.7% 2.0x 1.7x Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 YTD Q3 YTD 2023 2024 Gross Debt/Adj EBITDA Net Debt /Adj EBITDA Capex $60.7M $68.0M ▪ Higher earnings and improved worki
Slide 10: FY-2024 Outlook
FY-2024 Outlook Raising adjusted EPS; Affirming total reported revenue & ACF outlook Prior Outlook Current Outlook Americas: 2.5% to 3.5% Americas: 2.5% to 3.5% Reported Revenue International: 3% to 4% International: 3.5% to 4.5% Total: 2.5% to 3.5% Total: 2.5% to 3.5% Americas: 2% to 3% Americas: 1
Slide 11: 2025 Market Preview
2025 Market Preview Americas International ▪ Stable institutional trends and ▪ Macro remains soft residential starts to recover ▪ Commercial and multifamily ▪ Electronics remains positive verticals remain mixed ▪ Electronics growing Healthy balance sheet and active pipeline support continued capital
Slide 12: Pioneering Safety
Pioneering Safety TM Stable markets, strong execution Resilient business model Accelerating capital deployment 12 Q3-2024 Financial Results
Slide 13: Q&A
Q&A
Slide 14: Appendix
Appendix
Slide 15: Allegion EPS Performance
Q3-2024 Allegion EPS Performance Restructuring: ($0.01) M&A: $0.03 M&A: ($0.02) Restructuring: $0.02 Amortization: ($0.13) Amortization: $0.12 Impairment: ($0.01) 15 Q3-2024 Financial Results See appendix for definitions and press release for non-GAAP reconciliations
Slide 16: FY-2024 EPS Outlook Details
FY-2024 EPS Outlook Details Share Count: ~87.6M Interest/Other: ~$79M Tax Rate at Midpoint of 16.5% - 17.5% M&A, Restructuring & Other: ($0.13) Restructuring: $0.11 Amortization: ($0.52) M&A: $0.18 Amortization: $0.46 Impairment: $0.06 Investment loss: $0.03 16 Q3-2024 Financial Results See appendix
Slide 17: FY-2024 EPS Outlook Details
FY-2024 EPS Outlook Details Prior Outlook Current Outlook 2023 Reported EPS $6.12 $6.12 Notes: Acquired Intangible Asset Amortization1 $0.46 $0.46 Adjustments 2 $0.38 $0.38 ▪ Favorable tax, operational performance and interest 2023 Adjusted EPS As Recasted $6.96 $6.96 driving increase Operational Pe
Slide 18: Proforma Cash & Debt for 2024 Bond Maturity
Q3-2024 Proforma Cash & Debt for 2024 Bond Maturity ▪ Cash and debt balances include proceeds of $400M $Millions from Q2 senior note issuance, which were used to repay $400M senior note maturity on October 1 $2,402 ▪ Net debt unaffected $879 18 Q3-2024 Financial Results See appendix for definitions
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures The company presents operating income, operating margin, earnings before income tax, 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
Slide 20: 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, busin