Resideo Announces Third Quarter 2024 Financial Results
Resideo Technologies announced its Q3 2024 financial results, reporting an 18% increase in net revenue year-over-year to $1.83 billion. Net income available to common stockholders was $11 million, down from $21 million in Q3 2023. Adjusted EBITDA rose to $190 million, surpassing the outlook range. The Products and Solutions segment saw a gross margin of 42.2% and net revenue of $645 million, down 1% year-over-year. The ADI Global Distribution segment's net revenue increased 31% to $1,183 million, driven by the Snap One acquisition. Gross margin for ADI improved to 21.3%. Resideo expects continued positive momentum into Q4 2024 and 2025, with Q4 revenue projected between $1.815 billion and $1.855 billion. Full-year 2024 revenue is forecasted between $6.72 billion and $6.76 billion.
Resideo Technologies ha annunciato i risultati finanziari del terzo trimestre del 2024, riportando un aumento del 18% dei ricavi netti rispetto all’anno precedente a $1,83 miliardi. Il reddito netto disponibile per gli azionisti è stato di $11 milioni, in calo rispetto ai $21 milioni del terzo trimestre del 2023. L'EBITDA corretto è salito a $190 milioni, superando il range previsto. Il segmento Prodotti e Soluzioni ha registrato un margine lordo del 42,2% e ricavi netti di $645 milioni, in calo dell’1% rispetto all’anno precedente. I ricavi netti del segmento ADI Global Distribution sono aumentati del 31% raggiungendo i $1.183 milioni, grazie all’acquisizione di Snap One. Il margine lordo per ADI è migliorato al 21,3%. Resideo prevede un continuo slancio positivo nel quarto trimestre del 2024 e nel 2025, con ricavi del quarto trimestre previsti tra $1,815 miliardi e $1,855 miliardi. Le entrate totali per il 2024 sono previste tra $6,72 miliardi e $6,76 miliardi.
Resideo Technologies anunció sus resultados financieros del tercer trimestre de 2024, reportando un aumento del 18% en los ingresos netos interanuales, alcanzando $1.83 mil millones. Los ingresos netos disponibles para los accionistas comunes fueron de $11 millones, bajando desde los $21 millones en el tercer trimestre de 2023. El EBITDA ajustado se elevó a $190 millones, superando el rango de expectativas. El segmento de Productos y Soluciones tuvo un margen bruto del 42.2% y ingresos netos de $645 millones, una disminución del 1% en comparación con el año anterior. Los ingresos netos del segmento de Distribución Global ADI aumentaron un 31%, llegando a $1,183 millones, impulsados por la adquisición de Snap One. El margen bruto de ADI mejoró al 21.3%. Resideo espera mantener el impulso positivo hacia el cuarto trimestre de 2024 y 2025, con ingresos proyectados para el cuarto trimestre entre $1.815 mil millones y $1.855 mil millones. Se prevé que los ingresos totales de 2024 estén entre $6.72 mil millones y $6.76 mil millones.
Resideo Technologies는 2024년 3분기 재무 결과를 발표하며 전년 대비 18% 증가한 순매출 18억 3천만 달러를 보고했습니다. 보통주 주주에게 배당 가능한 순이익은 1천1백만 달러로, 2023년 3분기의 2천1백만 달러에서 감소했습니다. 조정된 EBITDA는 1억 9천만 달러로 증가하였으며, 전망 범위를 초과했습니다. 제품 및 솔루션 부문은 42.2%의 총 마진과 순매출 6억 4천5백만 달러를 기록했습니다. 전년 대비 1% 감소했습니다. ADI 글로벌 유통 부문의 순매출은 Snap One 인수에 힘입어 31% 증가하여 11억 8천3백만 달러에 달했습니다. ADI의 총 마진은 21.3%로 개선되었습니다. Resideo는 2024년 4분기와 2025년에도 긍정적인 모멘텀을 지속할 것으로 예상하며, 4분기 매출은 18억 1천5백만 달러에서 18억 5천5백만 달러 사이로 예상됩니다. 2024년 전체 매출은 67억 2천만 달러에서 67억 6천만 달러 사이로 예측됩니다.
Resideo Technologies a annoncé ses résultats financiers du troisième trimestre 2024, rapportant une augmentation de 18 % des revenus nets par rapport à l'année précédente, atteignant 1,83 milliard de dollars. Le résultat net disponible pour les actionnaires ordinaires était de 11 millions de dollars, en baisse par rapport à 21 millions de dollars au troisième trimestre 2023. Le EBITDA ajusté a augmenté pour atteindre 190 millions de dollars, dépassant la fourchette de prévisions. Le segment Produits et Solutions a affiché une marge brute de 42,2% et des revenus nets de 645 millions de dollars, en baisse de 1 % par rapport à l'année précédente. Les revenus nets du segment Distribution Global ADI ont augmenté de 31 % pour atteindre 1,183 milliard de dollars, grâce à l'acquisition de Snap One. La marge brute pour ADI s'est améliorée, atteignant 21,3 %. Resideo s'attend à ce que cette dynamique positive se poursuive au quatrième trimestre 2024 et en 2025, avec des revenus projetés pour le quatrième trimestre entre 1,815 milliard et 1,855 milliard de dollars. Les revenus totaux pour 2024 sont prévus entre 6,72 milliards et 6,76 milliards de dollars.
Resideo Technologies hat seine Finanzzahlen für das 3. Quartal 2024 bekannt gegeben und einen Anstieg des Nettoumsatzes von 18% im Jahresvergleich auf 1,83 Milliarden USD vermeldet. Der Nettogewinn für die Stammaktionäre betrug 11 Millionen USD, nach 21 Millionen USD im 3. Quartal 2023. Das bereinigte EBITDA stieg auf 190 Millionen USD und übertraf damit die Erwartungsspanne. Der Produkt- und Lösungsbereich wies eine Bruttomarge von 42,2% und Nettoumsätze von 645 Millionen USD auf, was einem Rückgang von 1% im Jahresvergleich entspricht. Die Nettoumsätze des Segments ADI Global Distribution stiegen um 31% auf 1.183 Millionen USD, bedingt durch die Übernahme von Snap One. Die Bruttomarge für ADI verbesserte sich auf 21,3%. Resideo erwartet, dass die positive Dynamik im 4. Quartal 2024 und 2025 anhält, wobei die Q4-Umsätze zwischen 1,815 Milliarden und 1,855 Milliarden USD prognostiziert werden. Der Gesamtumsatz für das Jahr 2024 wird auf zwischen 6,72 Milliarden und 6,76 Milliarden USD geschätzt.
- Net revenue increased by 18% year-over-year to $1.83 billion.
- Adjusted EBITDA rose to $190 million, exceeding the outlook range.
- ADI Global Distribution's net revenue grew by 31% to $1,183 million.
- Gross margin for Products and Solutions improved to 42.2%.
- Net income available to common stockholders decreased to $11 million from $21 million in Q3 2023.
- Products and Solutions' net revenue declined by 1% year-over-year.
Insights
The Q3 results demonstrate solid performance with notable highlights. Net revenue reached
The integration of Snap One acquisition is progressing well, contributing
The strategic positioning in both residential and commercial markets shows promise. The refresh of the Honeywell Home Focus Pro thermostat portfolio targets the professional market's entry tier, indicating market expansion efforts. ADI's e-commerce channel grew
Cost management initiatives are yielding results, evidenced by the
- Net revenue growth of
18% year-over-year; mid-single-digit organic revenue growth at both ADI and Products and Solutions - Products and Solutions gross margin of
42.2% , sixth consecutive quarter of year-over-year improvement - Net income available to common stockholders of
$11 million $190 million - Strong demand for the refreshed Honeywell Home Focus Pro™ thermostat portfolio, first in a cadence of new product introductions
Third Quarter 2024 Financial Highlights
- Net revenue was
$1.83 billion 18% compared to$1.55 billion - Net income available to common stockholders was
$11 million $21 million - Adjusted EBITDA (1) was
$190 million $147 million - Fully diluted EPS was
$0.07 $0.14 $0.58 $0.55
Management Remarks
"We delivered strong results in the third quarter with organic sales growth at both Products and Solutions and ADI in addition to consolidated Adjusted EBITDA again coming in ahead of our outlook," commented Jay Geldmacher, Resideo's President and CEO. "Products and Solutions continued to drive gross margin accretion, reflecting structural cost improvements. ADI also returned to organic revenue growth driven by improved demand across commercial categories and continued e-commerce expansion. The integration of Snap One is progressing well with the teams focused on cross-selling opportunities and cost reduction actions."
"We are excited by the meaningful new product introductions that have begun to rollout at Products and Solutions. This is highlighted by refreshes of our thermostat offering and security solutions aimed at larger residential and small and medium business opportunities. At ADI, improving demand trends in key categories and cross-selling opportunities with a greater customer and product portfolio create significant benefits moving forward. Overall, we expect the positive business momentum to continue as we close out 2024 and look to 2025."
(1) This press release includes certain "non-GAAP financial measures" as defined under the Securities Exchange Act of 1934. Resideo management believes the use of such non-GAAP financial measures, specifically Adjusted EBITDA and Adjusted EPS, assists investors in understanding the ongoing operating performance of Resideo by presenting the financial results between periods on a more comparable basis. See reconciliations of | ||||||
Products and Solutions Third Quarter 2024 Highlights
- Net revenue was
$645 million 1% compared to the third quarter 2023 and up4% excluding the impact of the Genesis divestiture - Gross margin was
42.2% , up 350 basis points compared to the third quarter 2023 - Income from operations was
$128 million $94 million - Adjusted EBITDA was
$157 million 24.3% of revenue, compared to$140 million 21.4% of revenue, in the third quarter 2023
Products and Solutions delivered net revenue of
Gross margin for the quarter was
ADI Global Distribution Third Quarter 2024 Highlights
- Net revenue was
$1,183 million 31% compared to the third quarter 2023 and up4% excluding the impact of the Snap One acquisition - Gross margin was
21.3% , up 300 basis points compared to the third quarter 2023 - Income from operations was
$36 million $52 million - Adjusted EBITDA was
$92 million 7.8% of revenue, compared to$69 million 7.7% of revenue, in the third quarter 2023
ADI third quarter 2024 net revenue of
Gross margin for the quarter was
Cash Flow and Liquidity
Net cash provided by operating activities was
Outlook
The following table summarizes the Company's current fourth quarter 2024 and updated full year 2024 outlook.
($ in millions, except per share data) | Q4 2024 | 2024 |
Net revenue | ||
Non-GAAP Adjusted EBITDA | ||
Non-GAAP Adjusted Earnings per share | ||
Full Year Cash Provided by Operating Activities | At least |
Conference Call and Webcast Details
Resideo will hold a conference call with investors on November 7, 2024, at 5:00 p.m. ET. An audio webcast of the call will be accessible at https://investor.resideo.com, where related materials will be posted before the call. A replay of the webcast will be available following the presentation. To join the conference call, please dial 888-660-6357 (
About Resideo
Resideo is a leading manufacturer and developer of technology-driven sensing and controls products that provide critical comfort, energy, smoke and carbon monoxide detection home safety products and security solutions to homes globally. We are also a leading wholesale distributor of low-voltage security products including access control, fire detection, fire suppression, security, and video products, and participate significantly in the broader related markets of, communications, data communications, networking, power, residential and professional audio-visual solutions, smart home, and wire and cable. Our global footprint serves both commercial and residential end markets. For more information about Resideo, please visit www.resideo.com.
Contacts: | ||
Investors: | Media: | |
Jason Willey | Garrett Terry | |
Vice President, Investor Relations | Corporate Communications Manager | |
investorrelations@resideo.com | garrett.terry@resideo.com |
Forward-Looking Statements
This release 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 statements are based upon reasonable assumptions, such statements involve known and unknown risks and uncertainties, which may cause the actual results or performance of the Company to differ materially from such forward-looking statements. Such risks and uncertainties include, but are not limited to, (1) our ability to achieve our outlook regarding the fourth quarter 2024 and full year 2024, (2) our ability to recognize the expected savings from, and the timing and impact of, our existing and anticipated cost reduction actions, and our ability to optimize our portfolio and operational footprint (3), the amount of our obligations and nature of our contractual restrictions pursuant to, and disputes that have or may hereafter arise under the agreements we entered into with Honeywell in connection with our spin-off, (4) risks related to our recently completed acquisitions including our ability to achieve the targeted amount of annual cost synergies and successfully integrate the acquired operations (including successfully driving category growth in connected offerings), (5) the ability of Snap One and/or Resideo to drive increased customer value and financial returns and enhance strategic and operational capabilities, (6) the ability of Snap One and/or Resideo to achieve the targeted amount of synergies described in this press release, (7) the accretive nature of the transaction to Resideo's non-GAAP EPS in the first full year of ownership and the growth and margin profile of the combined businesses, (8) the ability to integrate the Snap One business into Resideo and realize the anticipated strategic benefits of the transaction, including the anticipated operational and strategic benefits of the transaction, and (9) the other risks described under the headings "Risk Factors" and "Cautionary Statement Concerning Forward-Looking Statements" in our Annual Report on Form 10-K for the year ended December 31, 2023 and other periodic filings we make from time to time with the Securities and Exchange Commission. Forward-looking statements are not guarantees of future performance, and actual results, developments, and business decisions may differ from those envisaged by our forward-looking statements. Except as required by law, we undertake no obligation to update such statements to reflect events or circumstances arising after the date of this press release and we caution investors not to place undue reliance on any such forward looking statements.
Use of Non-GAAP Measures
This press release includes certain "non-GAAP financial measures" as defined under the Securities Exchange Act of 1934 and in accordance with Regulation G. Management believes the use of such non-GAAP financial measures assists investors in understanding the ongoing operating performance of the Company by presenting the financial results between periods on a more comparable basis. Such non-GAAP financial measures should not be construed as an alternative to reported results determined in accordance with
We have included reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and provided in accordance with
Table 1: SUMMARY OF FINANCIAL RESULTS (UNAUDITED)
Q3 2024 (1) | YTD 2024 (1) | ||||||||||||||
(in millions) | Products | ADI Global | Corporate | Total | Products | ADI Global | Corporate | Total | |||||||
Net revenue | $ 645 | $ 1,183 | $ — | $ 1,828 | $ 1,895 | $ 3,008 | $ — | $ 4,903 | |||||||
Cost of goods sold | 373 | 931 | — | 1,304 | 1,118 | 2,414 | — | 3,532 | |||||||
Gross profit | 272 | 252 | — | 524 | 777 | 594 | — | 1,371 | |||||||
Research and development expenses | 23 | — | — | 23 | 69 | — | — | 69 | |||||||
Selling, general and administrative expenses | 107 | 177 | 33 | 317 | 307 | 397 | 124 | 828 | |||||||
Intangible asset amortization | 6 | 22 | 1 | 29 | 18 | 31 | 2 | 51 | |||||||
Restructuring, impairment and extinguishment costs, net (2) | 8 | 17 | 4 | 29 | 13 | 19 | 15 | 47 | |||||||
Income (loss) from operations | $ 128 | $ 36 | $ (38) | $ 126 | $ 370 | $ 147 | $ (141) | $ 376 | |||||||
Q3 2023 (1) | YTD 2023 (1) | ||||||||||||||
(in millions) | Products | ADI Global | Corporate | Total | Products | ADI Global | Corporate | Total | |||||||
Net revenue | $ 654 | $ 900 | $ — | $ 1,554 | $ 1,989 | $ 2,716 | $ — | $ 4,705 | |||||||
Cost of goods sold | 401 | 735 | 1 | 1,137 | 1,227 | 2,202 | 3 | 3,432 | |||||||
Gross profit (loss) | 253 | 165 | (1) | 417 | 762 | 514 | (3) | 1,273 | |||||||
Research and development expenses | 28 | — | — | 28 | 82 | — | 2 | 84 | |||||||
Selling, general and administrative expenses | 100 | 101 | 32 | 233 | 322 | 307 | 90 | 719 | |||||||
Intangible asset amortization | 6 | 2 | 1 | 9 | 17 | 8 | 3 | 28 | |||||||
Restructuring and impairment expenses | 25 | 10 | 3 | 38 | 27 | 12 | 3 | 42 | |||||||
Income (loss) from operations | $ 94 | $ 52 | $ (37) | $ 109 | $ 314 | $ 187 | $ (101) | $ 400 | |||||||
Q3 2024 % change compared with prior period | YTD 2024 % change compared with prior period | ||||||||||||||
Products | ADI Global | Corporate | Total | Products | ADI Global | Corporate | Total | ||||||||
Net revenue | (1) % | 31 % | N/A | 18 % | (5) % | 11 % | N/A | 4 % | |||||||
Cost of goods sold | (7) % | 27 % | N/A | 15 % | (9) % | 10 % | N/A | 3 % | |||||||
Gross profit | 8 % | 53 % | N/A | 26 % | 2 % | 16 % | N/A | 8 % | |||||||
Research and development expenses | (18) % | N/A | N/A | (18) % | (16) % | N/A | N/A | (18) % | |||||||
Selling, general and administrative expenses | 7 % | 75 % | 3 % | 36 % | (5) % | 29 % | 38 % | 15 % | |||||||
Intangible asset amortization | — % | 1000 % | — % | 222 % | 6 % | 288 % | (33) % | 82 % | |||||||
Restructuring, impairment and extinguishment costs, net | (68) % | 70 % | 33 % | (24) % | (52) % | 58 % | 400 % | 12 % | |||||||
Income (loss) from operations | 36 % | (31) % | 3 % | 16 % | 18 % | (21) % | 40 % | (6) % | |||||||
(1) | On January 1, 2024, certain corporate functions were decentralized into the operating segments aligning with the business strategy. Functional expenses related to information technology, finance, tax, business development, and research and development are now recorded within the Products and Solutions and ADI Global Distribution segments. For the three and nine months ended September 30, 2023, |
(2) | Includes |
Table 2: CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended | Nine Months Ended | ||||||
(in millions, except per share data) | September 28, | September 30, | September 28, | September 30, | |||
Net revenue | $ 1,828 | $ 1,554 | $ 4,903 | $ 4,705 | |||
Cost of goods sold | 1,304 | 1,137 | 3,532 | 3,432 | |||
Gross profit | 524 | 417 | 1,371 | 1,273 | |||
Operating expenses: | |||||||
Research and development expenses | 23 | 28 | 69 | 84 | |||
Selling, general and administrative expenses | 317 | 233 | 828 | 719 | |||
Intangible asset amortization | 29 | 9 | 51 | 28 | |||
Restructuring, impairment and extinguishment costs, net | 29 | 38 | 47 | 42 | |||
Total operating expenses | 398 | 308 | 995 | 873 | |||
Income from operations | 126 | 109 | 376 | 400 | |||
Reimbursement Agreement expense (1) | 45 | 43 | 135 | 128 | |||
Other expenses, net | 10 | 13 | 10 | 10 | |||
Interest expense, net | 27 | 16 | 55 | 50 | |||
Income before taxes | 44 | 37 | 176 | 212 | |||
Provision for income taxes | 24 | 16 | 83 | 84 | |||
Net income | $ 20 | $ 21 | $ 93 | $ 128 | |||
Less: preferred stock dividends | 8 | — | 10 | — | |||
Less: undistributed income allocated to preferred stockholders | 1 | — | 4 | — | |||
Net income available to common stockholders | $ 11 | $ 21 | $ 79 | $ 128 | |||
Earnings per common share: | |||||||
Basic | $ 0.07 | $ 0.14 | $ 0.54 | $ 0.87 | |||
Diluted | $ 0.07 | $ 0.14 | $ 0.53 | $ 0.86 | |||
Weighted average common shares outstanding: | |||||||
Basic | 147 | 147 | 146 | 147 | |||
Diluted | 149 | 148 | 149 | 149 | |||
(1) | Represents the expense incurred pursuant to the Reimbursement Agreement, which has an annual cash payment cap of |
Three Months Ended | Nine Months Ended | ||||||
(in millions) | September 28, | September 30, | September 28, | September 30, | |||
Accrual for Reimbursement Agreement liabilities deemed probable and reasonably estimable | $ 45 | $ 43 | $ 135 | $ 128 | |||
Cash payments made to Honeywell | (35) | (35) | (105) | (105) | |||
Accrual increase, non-cash component in period | $ 10 | $ 8 | $ 30 | $ 23 | |||
Table 3: CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions, except par value) | September 28, | December 31, | |
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 531 | $ 636 | |
Accounts receivable, net | 1,103 | 973 | |
Inventories, net | 1,197 | 941 | |
Other current assets | 206 | 193 | |
Total current assets | 3,037 | 2,743 | |
Property, plant and equipment, net | 423 | 390 | |
Goodwill | 3,119 | 2,705 | |
Intangible assets, net | 1,197 | 461 | |
Other assets | 359 | 346 | |
Total assets | $ 8,135 | $ 6,645 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 1,021 | $ 905 | |
Current portion of long-term debt | 6 | 12 | |
Accrued liabilities | 645 | 608 | |
Total current liabilities | 1,672 | 1,525 | |
Long-term debt | 1,983 | 1,396 | |
Obligations payable under Indemnification Agreements | 635 | 609 | |
Other liabilities | 491 | 366 | |
Total liabilities | 4,781 | 3,896 | |
Stockholders' equity | |||
Preferred stock, outstanding at September 28, 2024 and no shares issued and outstanding at December 31, 2023, respectively | 482 | — | |
Common stock, issued and outstanding at September 28, 2024, respectively, and 151 and 145 shares issued and outstanding at December 31, 2023, respectively | — | — | |
Additional paid-in capital | 2,294 | 2,226 | |
Retained earnings | 893 | 810 | |
Accumulated other comprehensive loss, net | (207) | (194) | |
Treasury stock at cost | (108) | (93) | |
Total stockholders' equity | 3,354 | 2,749 | |
Total liabilities and stockholders' equity | $ 8,135 | $ 6,645 |
Table 4: CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Three Months Ended | Nine Months Ended | ||||||
(in millions) | September 28, | September 30, | September 28, | September 30, | |||
Cash Flows From Operating Activities: | |||||||
Net income | $ 20 | $ 21 | $ 93 | $ 128 | |||
Adjustments to reconcile net income to net cash in operating activities: | |||||||
Depreciation and amortization | 46 | 22 | 98 | 71 | |||
Restructuring, impairment and extinguishment costs, net | 29 | 38 | 47 | 42 | |||
Stock-based compensation expense | 15 | 11 | 44 | 36 | |||
Other, net | 6 | — | 5 | 2 | |||
Changes in assets and liabilities, net of acquired companies: | |||||||
Accounts receivable, net | (22) | 26 | (79) | (9) | |||
Inventories, net | (9) | 11 | (13) | (4) | |||
Other current assets | 6 | (8) | 15 | (5) | |||
Accounts payable | 31 | (58) | 62 | (14) | |||
Accrued liabilities | 13 | (20) | (65) | (114) | |||
Other, net | 12 | 17 | 34 | 44 | |||
Net cash provided by operating activities | 147 | 60 | 241 | 177 | |||
Cash Flows From Investing Activities: | |||||||
Acquisitions, net of cash acquired | — | (10) | (1,334) | (16) | |||
Capital expenditures | (22) | (25) | (58) | (74) | |||
Other investing activities, net | — | — | 6 | — | |||
Net cash used in investing activities | (22) | (35) | (1,386) | (90) | |||
Cash Flows From Financing Activities: | |||||||
Proceeds from issuance of long-term debt, net | 594 | — | 1,176 | — | |||
Proceeds from issuance of preferred stock, net of issuance costs | — | — | 482 | — | |||
Repayments of long-term debt | (596) | (3) | (602) | (9) | |||
Common stock repurchases | — | (28) | (1) | (28) | |||
Other financing activities, net | (7) | 2 | (12) | (10) | |||
Net cash provided by (used in) financing activities | (9) | (29) | 1,043 | (47) | |||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 2 | (9) | (3) | 1 | |||
Net (decrease) increase in cash, cash equivalents and restricted cash | 118 | (13) | (105) | 41 | |||
Cash, cash equivalents and restricted cash at beginning of period | 414 | 383 | 637 | 329 | |||
Cash, cash equivalents and restricted cash at end of period | $ 532 | $ 370 | $ 532 | $ 370 | |||
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS ADJUSTED NET INCOME PER DILUTED COMMON SHARE AND NET INCOME COMPARISON (Unaudited)
RESIDEO TECHNOLOGIES, INC. | |||||||
Three Months Ended | Nine Months Ended | ||||||
(in millions, except per share data) | September 28, | September 30, | September 28, | September 30, | |||
GAAP Net income | $ 20 | $ 21 | $ 93 | $ 128 | |||
Less: preferred stock dividends | 8 | — | 10 | — | |||
Less: undistributed income allocated to preferred stockholders | 1 | — | 4 | — | |||
GAAP Net income available to common stockholders | 11 | 21 | 79 | 128 | |||
Restructuring, impairment and extinguishment costs, net | 29 | 38 | 47 | 42 | |||
Intangible asset amortization | 29 | 9 | 51 | 28 | |||
Stock-based compensation expense | 15 | 11 | 44 | 36 | |||
Reimbursement Agreement accrual increase, non-cash component (1) | 10 | 8 | 30 | 23 | |||
Acquisition and integration costs | 3 | 1 | 37 | 1 | |||
Other (2) | 16 | 14 | 17 | 5 | |||
Tax effect of applicable non-GAAP adjustments (3) | (26) | (21) | (56) | (34) | |||
Non-GAAP Adjusted net income available to common stockholders | $ 87 | $ 81 | $ 249 | $ 229 | |||
Three Months Ended | Nine Months Ended | ||||||
September 28, | September 30, | September 28, | September 30, | ||||
GAAP Net income per diluted common share | $ 0.07 | $ 0.14 | $ 0.53 | $ 0.86 | |||
Restructuring, impairment and extinguishment costs, net | 0.19 | 0.26 | 0.32 | 0.28 | |||
Intangible asset amortization | 0.19 | 0.06 | 0.34 | 0.19 | |||
Stock-based compensation expense | 0.10 | 0.07 | 0.30 | 0.24 | |||
Reimbursement Agreement accrual increase, non-cash component (1) | 0.07 | 0.05 | 0.20 | 0.15 | |||
Acquisition and integration costs | 0.02 | 0.01 | 0.25 | 0.01 | |||
Other (2) | 0.11 | 0.10 | 0.11 | 0.03 | |||
Tax effect of applicable non-GAAP adjustments (3) | (0.17) | (0.14) | (0.38) | (0.22) | |||
Non-GAAP Adjusted net income per diluted common share | $ 0.58 | $ 0.55 | $ 1.67 | $ 1.54 | |||
(1) | Refer to the Unaudited Consolidated Statements of Operations herein. |
(2) | For 2023 periods, other includes Tax Matters Agreement gain, foreign exchange transaction loss (income), and pension costs. For 2024 periods, other includes loss on sale of assets, foreign exchange transaction loss (income), gain on sale of investments, litigation settlements, and an inventory step-up related to the Snap One acquisition. |
(3) | We calculated the tax effect of non-GAAP adjustments by applying a flat statutory tax rate of |
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS ADJUSTED EBITDA AND NET INCOME COMPARISON (Unaudited)
RESIDEO TECHNOLOGIES, INC. | |||||||
Three Months Ended | Nine Months Ended | ||||||
(in millions) | September 28, | September 30, | September 28, | September 30, | |||
Net revenue | $ 1,828 | $ 1,554 | $ 4,903 | $ 4,705 | |||
GAAP Net income | $ 20 | $ 21 | $ 93 | $ 128 | |||
GAAP Net income as a % of net revenue | 1.1 % | 1.4 % | 1.9 % | 2.7 % | |||
Provision for income taxes | 24 | 16 | 83 | 84 | |||
GAAP Income before taxes | 44 | 37 | 176 | 212 | |||
Depreciation and amortization | 46 | 22 | 98 | 71 | |||
Restructuring, impairment and extinguishment costs, net | 29 | 38 | 47 | 42 | |||
Interest expense, net | 27 | 16 | 55 | 50 | |||
Stock-based compensation expense | 15 | 11 | 44 | 36 | |||
Reimbursement Agreement accrual increase, non-cash component (1) | 10 | 8 | 30 | 23 | |||
Acquisition and integration costs | 3 | 1 | 37 | 1 | |||
Other (2) | 16 | 14 | 17 | 5 | |||
Non-GAAP Adjusted EBITDA | $ 190 | $ 147 | $ 504 | $ 440 | |||
Non-GAAP Adjusted EBITDA as a % of net revenue | 10.4 % | 9.5 % | 10.3 % | 9.4 % | |||
(1) | Refer to the Unaudited Consolidated Statements of Operations herein. |
(2) | For 2023 periods, other includes Tax Matters Agreement gain, foreign exchange transaction loss (income), and pension costs. For 2024 periods, other includes loss on sale of assets, foreign exchange transaction loss (income), gain on sale of investments, litigation settlements, and an inventory step-up adjustment related to the Snap One acquisition. |
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (Unaudited)
PRODUCTS AND SOLUTIONS SEGMENT | |||||||
Three Months Ended | Nine Months Ended | ||||||
(in millions) | September 28, | September 30, | September 28, | September 30, | |||
Net revenue | $ 645 | $ 654 | $ 1,895 | $ 1,989 | |||
GAAP Income from operations | $ 128 | $ 94 | $ 370 | $ 314 | |||
GAAP Income from operations as a % of net revenue | 19.8 % | 14.4 % | 19.5 % | 15.8 % | |||
Restructuring and impairment expense | 8 | 25 | 13 | 30 | |||
Stock-based compensation expense | 5 | 4 | 15 | 13 | |||
Other (1) | — | 1 | 4 | 1 | |||
Non-GAAP Adjusted Income from Operations | $ 141 | $ 124 | $ 402 | $ 358 | |||
Depreciation and amortization | 16 | 16 | 51 | 51 | |||
Non-GAAP Adjusted EBITDA | $ 157 | $ 140 | $ 453 | $ 409 | |||
Non-GAAP Adjusted EBITDA as a % of net revenue | 24.3 % | 21.4 % | 23.9 % | 20.6 % | |||
(1) | Other includes litigation settlements and acquisition costs. |
ADI GLOBAL DISTRIBUTION SEGMENT | |||||||
Three Months Ended | Nine Months Ended | ||||||
(in millions) | September 28, | September 30, | September 28, | September 30, | |||
Net revenue | $ 1,183 | $ 900 | $ 3,008 | $ 2,716 | |||
GAAP Income from operations | $ 36 | $ 52 | $ 147 | $ 187 | |||
GAAP Income from operations as a % of net revenue | 3.0 % | 5.8 % | 4.9 % | 6.9 % | |||
Restructuring and impairment expense | 17 | 10 | 19 | 17 | |||
Stock-based compensation expense | 4 | 2 | 9 | 5 | |||
Acquisition and integration costs | 2 | — | 6 | — | |||
Other (1) | 5 | — | 5 | — | |||
Non-GAAP Adjusted Income from Operations | $ 64 | $ 64 | $ 186 | $ 209 | |||
Depreciation and amortization | 28 | 5 | 41 | 13 | |||
Non-GAAP Adjusted EBITDA | $ 92 | $ 69 | $ 227 | $ 222 | |||
Non-GAAP Adjusted EBITDA as a % of net revenue | 7.8 % | 7.7 % | 7.5 % | 8.2 % | |||
(1) | Other includes inventory adjustment related to the Snap One acquisition. |
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SOURCE Resideo Technologies, Inc.
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