Slide 1: First-Quarter 2021 Earnings Webcast
First-Quarter 2021 Earnings Webcast May 6, 2021
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, projected future performance and any statements
Slide 3: Today's Speakers
Today’s Speakers Rex Tibbens Brian Turcotte Matt Davis President & Senior Vice President & Vice President Chief Executive Officer Chief Financial Officer Investor Relations & Treasurer 3
Slide 4: 2021 Objectives
2021 Objectives • Deliver double-digit revenue growth • Focus on automation • Expand customer retention initiatives • Execute ProConnect & Streem strategies 4
Slide 5: Q1 2021 Financial Summary
Q1 2021 Financial Summary In millions Net Adjusted Revenue Income EBITDA(1) $329 $5 $36 (1) See the Appendix accompanying this presentation for a reconciliation of Adjusted EBITDA, a non-GAAP measure, to the nearest U.S. GAAP measure. See “Reconciliations of Non-GAAP Financial Measures” included in
Slide 6: Q1 2021 Adjusted EBITDA Bridge
Q1 2021 Adjusted EBITDA(1) Bridge In millions Three Months Ended March 31, 2020 $47 Impact of change in revenue(2) 28 Contract claims costs (26) Sales and marketing costs (5) Customer service costs (2) General and administrative costs (4) Other (1) Three Months Ended March 31, 2021 $36 Note: Revenue
Slide 7: Q1 2021 Cash Flow
Q1 2021 Cash Flow Three Months Ended In millions In millions March 31, Net cash provided from Free Cash Available 2021 2020 (used for): Flow(1) Liquidity(2) Operating Activities $52 $60 $45 $611 Investing Activities (7) (3) Financing Activities (105) (3) Cash (decrease) increase (1} See the Appendix
Slide 8: Full-Year 2021 Outlook
Full-Year 2021 Outlook FY 2021 Outlook FY 2020 Results Low High Revenue ($ billions) 1.47 1.63 1.65 Gross Profit Margin (%) 49 ~48 Adjusted EBITDA ($ millions)(1) 270 280 300 Capital Expenditures ($ millions) 32 35 45 Annual Effective Tax Rate (%) 25 ~25 Q2 2021 Outlook Q2 2020 Results Low High Reve
Slide 9: Q&A
Q&A For more information please visit our website: frontdoorhome.com 9
Slide 10: Appendix
Frontdoor. APPENDIX
Slide 11: Q1 2021 Consolidated Results
Q1 2021 In millions, except per share amounts Three Months Ended March 31, 2021 2020 Better / (Worse) Consolidated Revenue YoY Growth $ 329 $ 294 $ 35 12% Results Gross Profit % of revenue 148 45.0% 147 49.9% 1 (4.9) pts Selling and administrative expenses 118 105 (14) Note: See elsewhere in this Ap
Slide 12: Net Income to Adjusted EBITDA Reconciliations
Net Income to Adjusted EBITDA Reconciliations In millions Three Months Ended March 31, 2021 2020 Net Income $ 5 $ 13 Depreciation and amortization expense 9 8 Restructuring charges 1 3 Provision for income taxes 1 4 Non-cash stock-based compensation expense 6 3 Interest expense 13 15 Loss on extingu
Slide 13: Net Cash Provided from Operating Activities to Free Cash Flow Reconciliations
Net Cash Provided from Operating Activities to Free Cash Flow Reconciliations In millions Three Months Ended March 31, 2021 2020 Net Cash Provided from Operating Activities $ 52 $ 60 Property Additions (7) (8) Free Cash Flow $ 45 $ 52 Amounts presented in the above tables may not sum due to rounding