| --- | --- | --- | |-------------------------------|-------|-------| | | | | | | | | | Q2 2024 RESULTS PRESENTATION | | | | August 8, 2024 | | | 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 forward-looking statements. Although we believe forward-looking sta ...

Financial Data and Key Metrics Changes - Resideo reported Q2 2024 revenue of $1.59 billion, a 1% decrease year-over-year, and a 2% decline when excluding the divestiture of Genesis and 15 days of Snap One results [16] - Adjusted EBITDA was $175 million, up from $155 million in Q2 2023, exceeding the outlook range of $130 million to $150 million [16][24] - Adjusted EPS was $0.19, compared to $0.34 in the previous year, while adjusted EPS on a diluted basis was $0.62 compared to $0.48 last year [16] Business Line Data and Key Metrics Changes - Products & Solutions revenue was $630 million, down 7% year-over-year, but only down 2% when adjusting for the sale of Genesis [16] - Products & Solutions gross margin reached 41.3%, up 300 basis points compared to Q2 2023, marking the fifth consecutive quarter of year-over-year margin expansion [18] - ADI revenue was $959 million, down 1% year-over-year when excluding Snap One revenue contribution [19] Market Data and Key Metrics Changes - North American inventory levels have normalized, and order trends have stabilized in major product areas [17] - EMEA market conditions remain challenging due to reduced government incentives and political uncertainty, impacting volumes for gas combustion and heat pump products [17] - First Alert Safety Products sales increased approximately 20% year-over-year, marking the third consecutive quarter of double-digit growth [9] Company Strategy and Development Direction - The acquisition of Snap One is a strategic priority, expected to create $75 million in annual run rate synergies by the end of 2026, with $12 million anticipated in 2024 [5][6] - The company is focusing on operational execution and innovation, with a strong pipeline of new products expected to launch in Q4 2024 [25] - Resideo aims to reduce net leverage to below 2x adjusted EBITDA by mid-2025 through cash from operations and potential divestitures [22] Management's Comments on Operating Environment and Future Outlook - Management noted that the market remains constrained by higher interest rates and soft existing home sales, but there are signs of increasing stability in key markets [5] - The company expressed optimism about future growth, particularly in the residential new construction market, where content per home has increased significantly [17][30] - Management highlighted the importance of new product introductions (NPI) and expects significant contributions from these initiatives in 2025 [30] Other Important Information - The company closed a new 7-year $600 million Term Loan B offering and a $500 million perpetual convertible preferred stock investment [21] - Operating cash flow for Q2 was $92 million, with a trailing 12-month operating cash flow of $417 million and free cash flow generation of $325 million [20] Q&A Session Summary Question: Insights on the PMS business outlook for the second half of the year - Management indicated that the residential housing market remains challenging, but operational cost management positions the business well for future recovery [29][30] Question: Key priorities for integrating Snap One - Integration efforts focus on merging company cultures, cross-selling opportunities, and enhancing sales enablement [32][33] Question: Long-term gross margin expectations for Products & Solutions - Management outlined four key areas to improve margins: product development efficiency, operational efficiency, differentiation, and investment in high-return products [37] Question: Current inventory levels in HVAC and security products - North American inventory levels are healthy, while EMEA faces challenges; security product performance is tied to new product introductions [39] Question: Expectations for Snap One's growth - The outlook includes approximately $550 million in revenue and $65 million in adjusted EBITDA from Snap One, with stabilization expected as the year progresses [40] Question: Product mix and rationalization post-Snap One acquisition - The combined organization now has about 20% proprietary products, with ongoing rationalization efforts to accommodate Snap One's product line [41][42] Question: Trends in large project delays and growth drivers - Large project delays have abated, and growth in First Alert is driven by strong performance in the residential new construction channel [43][46]

Resideo Technologies (REZI) came out with quarterly earnings of $0.62 per share, beating the Zacks Consensus Estimate of $0.50 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 24%. A quarter ago, it was expected that this residential comfort and security systems maker would post earnings of $0.33 per share when it actually produced earnings of $0.47, delivering a surprise of 42.42% ...

Financial Performance - Second quarter net revenue was $1.59 billion, a decrease of 1% from $1.60 billion in the second quarter of 2023[3] - Net income for the second quarter was $30 million, down from $50 million in the same period last year[3] - Adjusted EBITDA reached $175 million, an increase of 13% compared to $155 million in the second quarter of 2023[3] - Total company net revenue for Q2 2024 was $1,589 million, a decrease of 1% compared to Q2 2023's $1,602 million[19] - Gross profit for Q2 2024 was $447 million, reflecting an increase of 3% from $436 million in Q2 2023[19] - Income from operations for Q2 2024 was $122 million, down from $153 million in Q2 2023, representing a decrease of 20%[19] - GAAP net income for the three months ended June 29, 2024, was $30 million, a decrease of 40% from $50 million for the same period in 2023[27] - Net revenue for the three months ended June 29, 2024, was $1.59 billion, slightly down from $1.60 billion in the prior year, representing a decrease of about 0.6%[30] - Non-GAAP adjusted EBITDA for the three months ended June 29, 2024, was $175 million, an increase of 12.9% from $155 million in the same period last year[30] - Cash flows from operating activities provided $92 million for the three months ended June 29, 2024, compared to $121 million for the same period in 2023, indicating a decline of 24%[25] Segment Performance - Products and Solutions segment reported net revenue of $630 million, a decline of 7% year-over-year[5] - ADI Global Distribution achieved net revenue of $959 million, a 4% increase compared to the second quarter of 2023[7] - Net revenue for the three months ended June 29, 2024, was $630 million, a decrease of 6.9% compared to $677 million for the same period in 2023[32] - In the ADI Global Distribution segment, net revenue for the three months ended June 29, 2024, was $959 million, an increase of 3.7% from $925 million in the prior year[34] Expenses and Costs - Research and development expenses decreased by 28% year-over-year to $21 million in Q2 2024, compared to $29 million in Q2 2023[19] - Selling, general and administrative expenses increased by 16% to $280 million in Q2 2024, up from $242 million in Q2 2023[19] - Stock-based compensation expense for the three months ended June 29, 2024, was $4 million, down from $5 million in the prior year[32] - The company reported acquisition and integration costs of $4 million in the ADI segment for the three months ended June 29, 2024[34] Guidance and Future Outlook - The company expects third quarter 2024 net revenue to be between $1.79 billion and $1.83 billion[11] - Full year 2024 net revenue guidance is set at $6.68 billion to $6.76 billion[11] Balance Sheet and Cash Flow - Total current assets as of June 29, 2024, were $2,884 million, an increase from $2,743 million at the end of 2023[21] - The company reported a cash and cash equivalents balance of $413 million as of June 29, 2024, down from $636 million at the end of 2023[21] - Total liabilities increased to $4.69 billion as of June 29, 2024, compared to $3.90 billion at December 31, 2023, reflecting a growth of approximately 20%[24] - Total stockholders' equity increased to $3.29 billion as of June 29, 2024, up from $2.75 billion at December 31, 2023, marking a growth of approximately 19.9%[24] - The company reported a net cash used in investing activities of $1.34 billion for the three months ended June 29, 2024, primarily due to acquisitions[25] - The company issued $582 million in incremental term loans under the A&R Term B Facility during the reporting period[25] Management Changes - The company appointed Mike Carlet as the new Chief Financial Officer, effective August 9, 2024[2]

Second quarter net income of $30 million; Adjusted EBITDA of $175 million, above the high end of outlook range Products and Solutions second quarter gross margin of 41.3%, fifth consecutive quarter of year-over-year improvement Continued progress on business transformation with forthcoming new product introductions and completed acquisition of Snap One Appoints new Chief Financial Officer, Mike Carlet, former Snap One CFO SCOTTSDALE, Ariz., Aug. 8, 2024 /PRNewswire/ -- Resideo Technologies, Inc. (NYSE: REZI ...

About Resideo SCOTTSDALE, Ariz., July 15, 2024 /PRNewswire/ -- Resideo Technologies, Inc. (NYSE: REZI), a leading global provider of home comfort, life safety and security solutions, and distributor of commercial and residential security and audio-visual products, will release second quarter 2024 financial results after the close of the New York Stock Exchange on Thursday, August 8, 2024. A conference call and simultaneous webcast to discuss the results will be held on Thursday, August 8 at 5:00 p.m. ET. Co ...

The sale of the Notes is expected to close on July 17, 2024, subject to the satisfaction or waiver of customary closing conditions. About Resideo This release contains "forward-looking statements," including statements relating to the proposed offering and the anticipated use of the net proceeds from the offering. 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 fut ...

This release contains "forward-looking statements," including statements relating to the proposed offering and the anticipated use of the net proceeds from the offering. 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 forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve ...

Expands Presence in Smart Living Products and Distribution Contacts: Resideo Investors: Resideo Media: Jason Willey Adrienne Zimoulis Vice President, Investor Relations Sr. Director of Communications [email protected] [email protected] Enhances Resideo's growth and margin profile and accretive to non-GAAP Adjusted EPS in first full year of ownership Welcomes Nate Sleeper and John Stroup of Clayton, Dubilier & Rice LLC to Board of Directors SCOTTSDALE, Ariz, June 14, 2024 /PRNewswire/ -- Resideo Technologies ...

Additional information about Resideo can be found at Resideo.com. Danielle.Karr@snapone.com CHARLOTTE, N.C., June 14, 2024 (GLOBE NEWSWIRE) -- Snap One Holdings Corp. (the "Company" or "Snap One") (Nasdaq: SNPO) is pleased to announce that its acquisition by Resideo Technologies, Inc., a Delaware corporation ("Resideo"), was completed today. The acquisition was effectuated by the merger (the "Merger") of a wholly-owned subsidiary of Resideo with and into the Company, with the Company surviving the Merger an ...