Resideo Technologies, Inc. · NYSE:REZI
Resideo Technologies — Q3 2024 Earnings Presentation
21 slides from Resideo Technologies's earnings presentation, Nov 7, 2024
Slide 1: Q3 2024 Results Presentation
Q3 2024 RESULTS PRESENTATION November 7, 2024
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: Resideo Q3 2024 Highlights
Resideo Q3 2024 Highlights • Revenue at the high end of outlook range; Adjusted EBITDA above high end of outlook range • Mid-single-digit organic revenue growth across both segments • Adjusted EBITDA margin expansion via improved gross margin and effective cost management, resulting in strong free c
Slide 4: Products and Solutions Q3 2024 Highlights
Products and Solutions Q3 2024 Highlights • Organic revenue growth driven by strength in retail, HVAC, and electrical distribution • Double-digit sales growth in First AlertTM smoke and CO products; normalization of North American channel inventory largely offset slower activity in EMEA and security
Slide 5: ADI Global Distribution Q3 2024 Highlights
ADI Global Distribution Q3 2024 Highlights • Return to organic revenue growth with strength in video surveillance, fire, datacom, and professional audio visual, more than offsetting slower residential intrusion and audio visual • Exclusive brands grew 32% y/y, excl. Snap One, with further expansion
Slide 6: Q3 2024 Financial Summary
Q3 2024 Financial Summary ($ in millions, except per share) Q3 2024 Q3 2023 % change Y/Y Net Revenue 1,828 1,554 +18% P&S Revenue 645 654 -1% ADI Revenue 1,183 900 +31% Gross Margin 28.7% 26.8% +190 bps P&S Gross Margin 42.2% 38.7% +350 bps ADI Gross Margin 21.3% 18.3% +300 bps Operating Profit 126
Slide 7: Resideo Key Financial Trends
Resideo Key Financial Trends +18% +29% Q3 2024 HIGHLIGHTS Revenue Adjusted EBITDA $M Y/Y $M Y/Y $1,900 $200 • Both segments achieved year- $1,800 over-year organic revenue growth; $1,700 $1,600 $150 first time since the second quarter $1,500 of 2022 $1,400 $100 $1,300 $1,200 • Gross margin expansion
Slide 8: Products and Solutions Financial Trends
Products and Solutions Financial Trends Q3 2024 HIGHLIGHTS P&S Revenue -1% P&S Gross Margin +350 $M Y/Y bps Y/Y • Revenue down 1% y/y; organic 800 44% growth of 4% when excluding sale 700 40% of Genesis 600 36% • Continued strong performance 500 32% from First AlertTM safety products 400 28% and Nor
Slide 9: ADI Global Distribution Financial Trends
ADI Global Distribution Financial Trends ADI Revenue +31% ADI Gross Margin +300 Q3 2024 HIGHLIGHTS $M Y/Y bps Y/Y 1300 23% • Revenue up 31% y/y driven by the 1200 20% inclusion of Snap One results 1100 1000 18% 900 • Organic revenue growth of 4% y/y, 15% 800 reflecting strength across all key 13% 70
Slide 10: Balance Sheet and Cash Flow Summary (Unaudited)
Balance Sheet and Cash Flow Summary (Unaudited) ($ in millions); for three months ended September 28, 2024 Dec 31, 2023 September 30, 2023 Cash and cash equivalents 531 636 368 Total debt 1,989 1,408 1,409 Accounts receivable, net 1,103 973 988 Inventories, net 1,197 941 970 Accounts payable 1,021 9
Slide 11: Strong Balance Sheet and Cash Generation
Strong Balance Sheet and Cash Generation Free Cash Flow (1) ($ in millions) Sept 28, 2024 $500 Cash and cash equivalents 531 $400 Total debt 1,989 $300 Sept 28, 2024 Cash provided by operating activities (LTM) 504 $200 Capital expenditures (LTM) 89 $100 $0 2020 2021 2022 2023 LTM (1) Free cash flow
Slide 12: 2024 Outlook
2024 Outlook ($ in millions, except per share) Q4 2024 2024 Additional Items for 2024 Stock-based comp ~$60 Consolidated Revenue $1,815 to $1,855 $6,720 to $6,760 D&A ~$145 Capital expenditures ~$90 Adjusted EBITDA (1) $170 to $185 $672 to $687 Net interest expense ~$80 Honeywell IRA cash expense $1
Slide 13: 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 14: Appendix
APPENDIX 14 14 Resideo Resideo Confidential Confidential -- © © 2024 2023 Resideo Resideo Technologies, Technologies, Inc Inc
Slide 15: Summary Financial Results (Unaudited)
Summary Financial Results (Unaudited) (1) Q3 2024 (1) YTD 2024 (1) Products and ADI Global Total Products and ADI Global Total (in millions) Solutions Distribution Corporate Company Solutions Distribution Corporate Company Net revenue $ 645 $ 1,183 $ — $ 1,828 $ 1,895 $ 3,008 $ — $ 4,903 Cost of goo
Slide 16: Consolidated Statements of Operations (Unaudited)
Consolidated Statements of Operations (Unaudited) Three Months Ended Nine Months Ended (in millions, except per share data) September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023 Net revenue $ 1,828 $ 1,554 $ 4,903 $ 4,705 Cost of goods sold 1,304 1,137 3,532 3,432 Gross profit
Slide 17: Consolidated Balance Sheets (Unaudited)
Consolidated Balance Sheets (Unaudited) (in millions, except par value) September 28, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 531 $ 636 Accounts receivable, net 1,103 973 Inventories, net 1,197 941 Other current assets 206 193 Total current assets 3,037 2,743 Proper
Slide 18: Consolidated Statements of Cash Flows (Unaudited)
Consolidated Statements of Cash Flows (Unaudited) Three Months Ended Nine Months Ended (in millions) September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023 Cash Flows From Operating Activities: Net income $ 20 $ 21 $ 93 $ 128 Adjustments to reconcile net income to net cash in op
Slide 19: Non-GAAP Financial Measures and Reconciliations: Adjusted EPS
Non-GAAP Financial Measures and Reconciliations (Unaudited) Adjusted Net Income Per Diluted Common Share and Net Income Comparison Three Months Ended Nine Months Ended September 30, September 28, September 30, (in millions, except per share data) September 28, 2024 2023 2024 2023 GAAP Net income $ 2
Slide 20: Non-GAAP Financial Measures and Reconciliations: Adjusted EBITDA
Non-GAAP Financial Measures and Reconciliations (Unaudited) Resideo Adjusted EBITDA Three Months Ended Nine Months Ended (in millions) September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023 Net revenue $ 1,828 $ 1,554 $ 4,903 $ 4,705 GAAP Net income $ 20 $ 21 $ 93 $ 128 GAAP Net
Slide 21: Non-GAAP Reconciliations: Segment Adjusted EBITDA
Non-GAAP Financial Measures and Reconciliations (Unaudited) Products and Solutions Segment Three Months Ended Nine Months Ended September 28, September 30, September 28, September 30, (in millions) 2024 2023 2024 2023 Net revenue $ 645 $ 654 $ 1,895 $ 1,989 GAAP Income from operations $ 128 $ 94 $ 3