Resideo Technologies, Inc. · NYSE:REZI
Resideo Technologies — Q4 2022 Earnings Presentation
17 slides from Resideo Technologies's earnings presentation, Feb 15, 2023
Slide 1: Q4 2022 Results Presentation
Q4 2022 RESULTS PRESENTATION February 15, 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 2022 Highlights
Resideo 2022 Highlights • Record revenue of $6.4B, up 9% y/y, and operating income of $611M driven by acquisitions and growth at ADI • Initiated cost reduction actions and manufacturing optimization activities responding to customer destocking and slowing residential activity; $60M of expected savin
Slide 4: Products & Solutions 2022 Highlights
Products & Solutions 2022 Highlights • Revenue of $2.8B, up 13% y/y, including $341M from First Alert and ~$95M negative impact from FX • Strong price realization partially offsetting lower volumes and input cost inflation • Restructuring and impairment expenses of $29M recorded in Q4 2022 • Complet
Slide 5: ADI Global Distribution 2022 Highlights
ADI Global Distribution 2022 Highlights • Revenue of $3.6B, up 6% y/y, with strength in commercial oriented categories in North America; acquisitions added $86M y/y and ~$66M negative impact from FX • E-commerce revenue grew 24% y/y and exclusive brands grew 25% y/y • Gross margin and operating prof
Slide 6: Q4 2022 and Full Year 2022 Financial Summary
Q4 2022 and Full Year 2022 Financial Summary ($ in millions, except per Q4 2022 Q4 2021 % change Y/Y FY 2022 FY 2021 % change Y/Y share) Net Revenue 1,560 1,454 +7% 6,370 5,846 +9% P&S Revenue (1) 693 633 +9% 2,783 2,468 +13% ADI Revenue 867 821 +6% 3,587 3,378 +6% Gross Margin (2) 27.6% 27.6% flat
Slide 7: Resideo Key Financial Trends
Resideo Key Financial Trends $M Revenue +7% Gross Margin (1) Flat Q4 2022 HIGHLIGHTS Y/Y 30% $1,750 29% • Continued growth at ADI and from $1,500 acquisitions partially offset by 28% slowing residential growth trends 27% $1,250 within Products & Solutions 26% $1,000 25% • Acquisitions added $139M to
Slide 8: Products & Solutions Financial Trends
Products & Solutions Financial Trends P&S Revenue (1) +9% P&S Gross Margin (2) -10 Q4 2022 HIGHLIGHTS Y/Y bps $M $800 45% • Revenue grew 9% y/y driven by $750 42% First Alert acquisition and $700 39% realization on price actions, offset $650 $600 36% by FX headwinds and volume $550 33% declines $500
Slide 9: ADI Global Distribution Financial Trends
ADI Global Distribution Financial Trends ADI Revenue +6% ADI Gross Margin (1) -10 bps Q4 2022 HIGHLIGHTS $M Y/Y $1,000 21% • Revenue up 6% y/y driven by 20% growth in North America with 19% 18% acquisitions contributing $23M and $800 17% FX headwinds of $20M 16% $600 15% • Continued solid trends in
Slide 10: Balance Sheet and Cash Flow Summary (Unaudited)
Balance Sheet and Cash Flow Summary (Unaudited) ($ in millions) Q4 2022 Q3 2022 Q4 2021 Cash and cash equivalents and restricted cash 329 255 779 Total debt 1,416 1,419 1,230 Accounts receivable, net 1,002 1,043 876 Inventories, net 975 957 740 Accounts payable 894 936 883 Cash provided (used) by op
Slide 11: 2023 Outlook
2023 Outlook ($ in millions, except per share) Q1 2023 2023 Revenue $1,520 to $1,560 $6,200 to $6,550 Gross margin 26.3% to 27.3% 26.8% to 27.8% GAAP operating profit $120 to $140 $625 to $675 GAAP earnings per share (2) $0.29 to $0.39 $1.85 to $2.15 Corporate costs ~$210 Avg. diluted shares ~149M S
Slide 12: Resideo Values
Resideo 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
Slide 13: Appendix
resideo APPENDIX
Slide 14: Summary Financial Results (Unaudited)
Summary Financial Results (Unaudited) Q4 2022 Full Year 2022 Products and ADI Global Products and ADI Global (in millions) Solutions Distribution Corporate Total Company Solutions Distribution Corporate Total Company Net revenue $ 693 $ 867 $ — $ 1,560 $ 2,783 $ 3,587 $ — $ 6,370 Cost of goods sold
Slide 15: Consolidated Statements of Operations (Unaudited)
Consolidated Statements of Operations (Unaudited) Three Months Ended December 31, Twelve Months Ended December 31, (in millions) 2022 2021 2022 2021 Net revenue $ 1,560 $ 1,454 $ 6,370 $ 5,846 Cost of goods sold(1)(2) 1,129 1,052 4,604 4,262 Gross profit 431 402 1,766 1,584 Research and development
Slide 16: Consolidated Balance Sheets (Unaudited)
Consolidated Balance Sheets (Unaudited) December 31, December 31, (in millions) 2022 2021 ASSETS Current assets: Cash and cash equivalents $ 326 $ 775 Accounts receivable, net 1,002 876 Inventories, net 975 740 Other current assets 199 150 Total current assets 2,502 2,541 Property, plant and equipme
Slide 17: Consolidated Statements of Cash Flows (Unaudited)
Consolidated Statements of Cash Flows (Unaudited) Three Months Ended December 31, Twelve Months Ended December 31, (in millions) 2022 2021 2022 2021 Cash Flows From Operating Activities: Net income $ 39 $ 67 $ 283 $ 242 Adjustments to reconcile net income to net cash provided by operating activities