Resideo Technologies, Inc. · NYSE:REZI
Resideo Technologies — Q3 2020 Earnings Presentation
15 slides from Resideo Technologies's earnings presentation, Nov 5, 2020
Slide 1: Q3 2020 Results
Q3 2020 Results November 5, 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: Q3 2020 Highlights
Q3 2020 HIGHLIGHTS • Positive demand trends across business; significant improvement in financial results ‒ Q3 2020 revenue up 11% year-over-year, operating profit more than doubled year-over-year to $131 million ‒ Cash provided by operating activities of $21 million for Q3 2020 • ADI Global Distrib
Slide 4: Transformation Update
TRANSFORMATION UPDATE • Significant progress on transformation initiatives ‒ Focus on ingraining efficiency, cost savings and innovation into Resideo’s culture ‒ Continue to strengthen leadership team across the organization ‒ Cost initiatives on track to deliver $40 million to $45 million of net sa
Slide 5: Q3 2020 Performance
Q3 2020 PERFORMANCE ($ in millions, except per share) Q3 2020 Q3 2019 % change Y/Y Net Revenue 1,362 1,226 +11% ADI Segment Revenue 790 714 +11% P&S Segment Revenue 572 512 +12% Gross Margin 27.2% 25.2% +200 bps SG&A 239 250 -4% Operating Profit 131 59 +122% Net Income 75 8 +838% EPS – diluted 0.60
Slide 6: Q3 2020 ADI Global Distribution Performance
Q3 2020 ADI GLOBAL DISTRIBUTION PERFORMANCE Q3 2020 Actual Commentary ADI GLOBAL DISTRIBUTION +11% +8% • 11% revenue increase due to improved demand across $714M $790M $48M $52M geographies, strong project business and growth in e- commerce sales • Segment Adjusted EBITDA grew 8% driven by revenue 2
Slide 7: Q3 2020 Products & Solutions Performance
Q3 2020 PRODUCTS & SOLUTIONS PERFORMANCE Q3 2020 Actual Commentary • 12% revenue increase reflects positive demand trends PRODUCTS & SOLUTIONS +12% +106% $512M $572M $136M across each of Product & Solutions’ primary end markets $66M • Segment Adjusted EBITDA increased 106% due to higher revenue, imp
Slide 8: Balance Sheet and Cash Flow
BALANCE SHEET AND CASH FLOW ($ in millions) Q3 2020 Q3 2019 2019 Cash and cash equivalents 260 132 122 Total debt 1,322 1,253 1,180 Accounts receivable 884 845 817 Inventories 618 729 671 Accounts payable 858 932 920 Cash provided by (used for) 21 (33) 23 operating activities Commentary • $200 milli
Slide 9: Outlook
OUTLOOK • Q4 2020 revenue guidance: $1.36 billion to $1.41 billion • Q4 2020 operating profit guidance: $130 million to $140 million • Q4 2020 Adjusted EBITDA guidance: $180 million to $190 million 8 © 2020 Resideo Technologies, Inc
Slide 10: Appendix
APPENDIX ADD TITLE HERE
Slide 11: Summary of Interim Financial Results – Segment
SUMMARY OF INTERIM FINANCIAL RESULTS – SEGMENT (dollars in millions) (1) Represents Product & Solutions revenue, excluding intersegment revenue of $102 million and $270 million for the three and nine months ended September 26, 2020, respectively, and $83 million and $228 million for the three and ni
Slide 12: Consolidated Interim Statements of Operations (Unaudited)
CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (UNAUDITED) (1) On January 1, 2020, the Company changed its classification of research and development expenses in the Consolidated Interim Statements of Operations from Cost of goods sold to Selling, general and administrative expenses, such that resear
Slide 13: Consolidated Interim Balance Sheets (Unaudited)
CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED) 12 © 2020 Resideo Technologies, Inc
Slide 14: Consolidated Interim Statements of Cash Flows (Unaudited)
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED) 13 © 2020 Resideo Technologies, Inc
Slide 15: Reconciliation of Net Income (Loss) to Non-GAAP Financial Measures
RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) (1) Represents recorded expenses / gains related to the Honeywell reimbursement agreement. Pursuant to the Honeywell reimbursement agreement, we are responsible to indemnify Honeywell in amounts equal to 90% of payments,