Resideo Technologies, Inc. · NYSE:REZI
Resideo Technologies — Q1 2022 Earnings Presentation
16 slides from Resideo Technologies's earnings presentation, May 3, 2022
Slide 1: Q1 2022 Results Presentation
Q1 2022 RESULTS PRESENTATION May 3, 2022
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 Q1 2022 Highlights
Resideo Q1 2022 Highlights • Revenue of $1.5 billion, up 6% y/y, with growth at both Products & Solutions and ADI • Strong operating margin expansion, reaching 11.4%, up 220 basis points y/y • Supply chain, logistic and cost inflation headwinds continue to impact results • Capital deployed on value
Slide 4: Products & Solutions Q1 2022 Highlights
Products & Solutions Q1 2022 Highlights • Revenue of $619 million, up 2% y/y, with strong realization of 2021 pricing actions • Overall demand remains solid across products and channels; semiconductor supply constraints continue to limit revenue • Material and freight costs remain elevated, limiting
Slide 5: ADI Global Distribution Q1 2022 Highlights
ADI Global Distribution Q1 2022 Highlights • Revenue of $887M, up 9% y/y, with strength in North America and commercial categories • Strong growth in e-commerce and private brands sales • Gross margin and operating margin expansion while investing in systems and digital tools • Completed acquisition
Slide 6: Q1 2022 Financial Performance Summary
Q1 2022 Financial Performance Summary ($ in millions, except per share) Q1 2022 Q1 2021 % change Y/Y Net Revenue 1,506 1,419 +6% P&S Revenue (1) 619 606 +2% ADI Revenue 887 813 +9% Gross Margin 28.8% 25.9% +290 bps P&S Gross Margin 42.8% 38.0% +480 bps ADI Gross Margin 19.2% 17.2% +200 bps SG&A and
Slide 7: Resideo Key Financial Trends
Resideo Key Financial Trends $M Revenue +6% Gross Margin +290 Q1 2022 HIGHLIGHTS Y/Y 40% bps $2,000 • Overall demand remains solid 30% $1,500 across businesses with volumes $1,000 20% constrained by supply $500 10% • Gross margin expansion at ADI $0 0% and P&S reflecting execution of Q1 20 Q2 20 Q3
Slide 8: Products & Solutions Financial Trends
Products & Solutions Financial Trends P&S Revenue (1) +2% P&S Gross Margin +480 Q1 2022 HIGHLIGHTS Y/Y bps $M $750 50% • Revenue growth y/y driven by $600 40% strong realization on 2021 price $450 30% actions $300 20% $150 10% • Air, Water and Energy products $0 0% grew revenue y/y, partially offset
Slide 9: ADI Global Distribution Financial Trends
ADI Global Distribution Financial Trends ADI Revenue +9% ADI Gross Margin +200 bps Q1 2022 HIGHLIGHTS $M Y/Y $1,000 20% • Reported and Daily Sales Average 19% $800 up 9% y/y with volume, recent 18% $600 17% acquisitions and price contributing $400 16% $200 15% • Fire, Access Control and Wire $0 14%
Slide 10: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary ($ in millions) Q1 2022 Q1 2021 FY 2021 (1) Cash and cash equivalents 244 508 779 Total debt 1,424 1,196 1,230 Accounts receivable, net 1,008 875 876 Inventories 922 681 740 Accounts payable 958 908 883 Cash provided (used) by operating activities (59) 5 315 Cash
Slide 11: 2022 Outlook
2022 Outlook ($ in millions) Revenue $1,650 to $1,700 $6,450 to $6,650 $5,950 to $6,200 Gross margin 27.0% to 28.0% 27.5% to 28.5% 27.0% to 28.0% GAAP Operating profit $165 to $175 $680 to $720 $610 to $650 Corporate costs ~$240 Corporate costs ~$240 Avg. diluted shares ~149M Stock-based comp ~$50 S
Slide 12: Appendix
resideo APPENDIX
Slide 13: Summary Financial Results (Unaudited)
Summary Financial Results (Unaudited) (1) Q1 2022 (In millions) Products & Solutions ADI Global Distribution Corporate Total Company Revenue (2) $ 619 $ 887 $ - $ 1,506 Cost of goods sold 355 716 1 1,072 Gross profit (loss) 265 170 (1) 434 Research and development expenses (3) 24 - - 24 Selling, gen
Slide 14: Consolidated Interim Statements of Operations (Unaudited)
Consolidated Interim Statements of Operations (Unaudited) Three Months Ended April 2, April 3, 2022 2021 (In millions except shares in thousands and per share data) Net revenue $ 1,506 $ 1,419 Cost of goods sold 1,072 1,051 Gross profit 434 368 Research and development expenses (1) 24 21 Selling, ge
Slide 15: Consolidated Interim Balance Sheets (Unaudited)
Consolidated Interim Balance Sheets (Unaudited) April 2, December 31, 2022 2021 (In millions, except shares in thousands and par value) ASSETS Current assets: Cash and cash equivalents $ 244 $ 779 Accounts receivable – net 1,008 876 Inventories – net 922 740 Other current assets 165 146 Total curren
Slide 16: Consolidated Interim Statements of Cash Flows (Unaudited)
Consolidated Interim Statements of Cash Flows (Unaudited) Three Months Ended April 2, April 3, 2022 2021 (In millions) Cash flows (used for) provided by operating activities: Net income $ 87 $ 49 Adjustments to reconcile net income to net cash (used for) provided by operating activities: Depreciatio