Slide 1: Q2 2020 Results
Q2 2020 Results August 4, 2020
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: Q2 Highlights
Q2 HIGHLIGHTS • New management team in place ‒ Jay Geldmacher, CEO ‒ Tony Trunzo, CFO ‒ Phil Theodore, Chief Transformation Officer • Continued management of COVID-19 impacts; remain vigilant for second wave ‒ The safety of our Employees, Customers and Pro-Installers remain our top priority ‒ Focuse
Slide 4: Q2 2020 Performance
Q2 2020 PERFORMANCE Q2 Actual Commentary • 17% revenue decrease -17% -48% $1.2B CONSOLIDATED $1.0B $122M $63M • Adjusted EBITDA down 48% driven by volume decrease • Negative impacts from COVID-19 partially offset by F&O program 2019 2020 2019 2020 benefits and other cost management actions across th
Slide 5: YTD Performance
YTD PERFORMANCE YTD Actual Commentary -10% $2.5B -35% • 10% revenue decrease CONSOLIDATED $2.2B $249M $162M • Adjusted EBITDA down 35% driven primarily by COVID-19 related volume decrease and negative product mix 2019 2020 2019 2020 • COVID-19 impacts partially offset transformation programs and cos
Slide 6: Q2 2020 GAAP Revenue and Adjusted EBITDA Walks
Q1 Actual | Sales & EBITDA Walks Q2 2020 GAAP REVENUE AND ADJUSTED EBITDA Revenue $1.2B ($74M) $1.0B ($139M) Year-over-Year -17% Reported 2019 Q2 ADI Revenue P&S Revenue 2020 Q2 Actual Actual Adjusted EBITDA $122M $8M $39M $63M ($12M) ($94M) Volume ($86M) Price / Mix ($8M) 2019 Q2 Volume / Price / M
Slide 7: 2Q Year-to-Date 2020 GAAP Revenue and Adjusted EBITDA Walks
Q1 Actual | Sales & EBITDA Walks 2Q YEAR-TO-DATE 2020 GAAP REVENUE AND ADJUSTED EBITDA Revenue $2.5B ($35M) $2.2B ($215M) Year-over-Year -10% Reported 2019 Q2 ADI Revenue P&S Revenue 2020 Q2 YTD Actual YTD Actual Adjusted EBITDA $249M $15M $63M $162M ($23M) ($142M) Volume ($118M) Price / Mix ($24M)
Slide 8: Cash Flow, Liquidity and Debt
CASH FLOW, LIQUIDITY AND DEBT Cash & Liquidity • Operating cash flow of $71 million for six months ended Q2 • Ongoing dialogue with Honeywell enabled continued deferral of Honeywell Reimbursement Agreement payment due April 30; new payment date of October 30 – Made scheduled $35 million July 30 Hone
Slide 9: Appendix
APPENDIX ADD TITLE HERE
Slide 10: Summary of Interim Financial Results – Segment
SUMMARY OF INTERIM FINANCIAL RESULTS – SEGMENT 2Q 2020 2Q 2019 % Change YTD 2020 YTD 2019 % Change Products & Solutions Revenue (1) 398 537 -26% 873 1,088 -20% Segment Adjusted EBITDA (2) 35 75 -53% 88 156 -44% ADI Global Distribution Revenue 631 705 -10% 1,335 1,370 -3% (2) Segment Adjusted EBITDA
Slide 11: Consolidated Interim Statements of Operations (Unaudited)
CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (Dollars in millions except share and per share data) Net revenue $ 1,029 $ 1,242 $ 2,208 $ 2,458 Cost of goods sold (1) 793 919 1,688 1,803 Gross profit 236 323 520 65
Slide 12: Consolidated Interim Balance Sheets (Unaudited)
CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED) June 30, December 31, 2020 2019 (Dollars in millions, shares in thousands) ASSETS Current assets: Cash and cash equivalents $ 362 $ 122 Accounts receivable – net 704 817 Inventories – net 614 671 Other current assets 163 175 Total current assets 1,843
Slide 13: Consolidated Interim Statements of Cash Flows (Unaudited)
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended June 30, 2020 2019 (Dollars in millions) Cash flows provided by (used for) operating activities: Net (loss) income $ (97) $ 37 Adjustments to reconcile net (loss) income to net cash used for operating activities: Depreciation
Slide 14: Reconciliation of Net (Loss) Income to Non-GAAP Financial Measures
RECONCILIATION OF NET (LOSS) INCOME TO NON-GAAP FINANCIAL MEASURES Three Months Ended Six Months Ended (UNAUDITED) 2020 June 30, 2019 2020 June 30, 2019 (Dollars in millions except share and per share data) Reconciliation of Net (loss) income to Adjusted net income (Non-GAAP) Net (loss) income $ (76