Lucas Haldeman Steps Down as CEO and Resigns
from Board
Board of Directors Forms Operating Committee to
Oversee Company’s Operations
Management Committee of Current SmartRent
Executives to Guide Company on Interim Basis
Company Suspends Full-Year 2024 Outlook
SmartRent, Inc. (NYSE: SMRT) (“SmartRent” or the “Company”), a
leading provider of smart communities and smart operations
solutions for the rental housing industry, today announced a CEO
transition plan under which Lucas Haldeman has stepped down from
his position as Chief Executive Officer and resigned from the Board
of Directors, effective July 29, 2024. John Dorman, the Board’s
lead independent director, has been appointed Chairman of the
Board, and the Board has formed a Management Committee of current
executives to guide the Company through the transition period. The
Board has initiated a search to identify the next CEO of SmartRent
and is working with a leading executive search firm to assist in
the process of identifying and evaluating candidates.
“SmartRent is a market leader with an outstanding suite of
products, technology and services that provide enormous value to
our customers,” said Dorman. “The Company successfully developed
and deployed a range of products and services that customers love
and depend on because of the way they streamline operations, reduce
costs, protect assets, and provide convenience and an overall
improved resident experience.”
Dorman continued, “SmartRent has a leading market position in a
large addressable market, proven product quality, deep customer
loyalty, and significant growth potential in penetrating our
existing customer base, which owns and/or manages over seven
million rental units. The Board is working with the talented team
at the Company to capitalize on these unique strengths and create
long-term value for our shareholders. On behalf of the full Board,
I want to thank Lucas for his dedication to SmartRent, which he
founded, took public, and built into the innovator and leader in
smart home technology it is today. As we scale and mature the
Company into a new phase of growth, the Board decided that
SmartRent will benefit from a CEO with a different skill set and
fresh perspective.”
The Management Committee is composed of Chief Financial Officer
Daryl Stemm, Executive Vice President of Human Resources Heather
Auer, Executive Vice President of Operations Wyron Bobis,
Co-Founder and Chief Technology Officer Isaiah DeRose-Wilson, Chief
Legal Officer Kristen Lee and Chief Marketing Officer Robyn Young.
Daryl Stemm will act as Principal Executive Officer of SmartRent on
an interim basis. The Management Committee will report to John
Dorman as Chairman of the Board. Additionally, the Board has formed
an Operating Committee of the Board chaired by Frank Martell and
composed of Alison Dean, Ann Sperling, and Fred Tuomi. The
Operating Committee will serve under the direction of the Board and
oversee the Company’s operations. The Board is also working with
Morgan Stanley & Co. LLC as part of an ongoing financial review
focusing on shareholder value. Additionally, the Company is
recruiting a new head of sales to reinvigorate and refocus the
sales strategy and drive further growth across existing and new
customers.
Preliminary Second Quarter 2024 Results
On a preliminary basis, the Company expects second quarter 2024
Total Revenue of $48.5 million, a decrease of 9% from the same
period last year and slightly below the guidance range of $49
million to $55 million. The Company expects a Net Loss in the
second quarter of $4.6 million, a 55% improvement year over year.
Adjusted EBITDA is expected to be $0.9 million for the quarter,
above the guidance range of $(0.5) million to $0.5 million. SaaS
Revenue is expected to be $12.8 million for the quarter, an
increase of 32% over the same period last year.
Full-Year 2024 Outlook
In light of the pending CEO transition, the scaling back of
SmartRent’s channel partner program and continued, increasing
market headwinds, including known and anticipated customer capital
spending delays, the Company is suspending its previous guidance
for full-year 2024. The Company advises investors they should not
rely on the outlook previously provided by management.
The Company will hold a conference call on August 7, 2024, to
discuss second quarter 2024 financial results (details below).
Date: Wednesday, August 7, 2024 Time: 11:30 a.m.
ET Dial-in: To access the conference call via telephone,
please register here to be provided with dial-in details. To avoid
delays, participants are encouraged to dial into the conference
call 15 minutes ahead of the scheduled start time.
Webcast: A live and archived webcast of the conference
call will be accessible from the Events and Presentations section
of the Company’s Investor Relations website at
https://investors.smartrent.com.
About SmartRent
Founded in 2017, SmartRent, Inc. (NYSE: SMRT) is a leading
provider of smart communities solutions and smart operations
solutions to the rental housing industry. SmartRent’s end-to-end
ecosystem powers smarter living and working in rental housing by
automating operations, protecting assets, reducing energy
consumption and more. The company’s differentiators – purpose-built
software and hardware, and end-to-end implementation and support –
create an exceptional experience, with 15 of the top 20 multifamily
operators and millions of users leveraging SMRT solutions daily.
For more information, please visit smartrent.com.
Forward-Looking Statements
This press release contains forward-looking statements which
address the Company's expected future business and financial
performance, statements regarding the Company’s executive
transition, expected growth, prospects and strategies, expected
Total Revenue, Adjusted EBITDA, Net Loss and SaaS Revenue for the
second quarter, and other future events. Forward-looking statements
may contain words such as "goal," "target," "future," "estimate,"
"expect," "anticipate," "intend," "plan," "believe," "seek,"
"project," "may," "should," "will" or similar expressions. Examples
of forward-looking statements include, among others, statements
regarding the expected financial results, the Company’s executive
transition, expected growth, prospects, strategies and
opportunities and earnings guidance related to financial and
operational metrics. Forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those currently anticipated. Some of the factors that could
cause actual results to differ materially from those expressed or
implied by the forward-looking statements include, among other
things, our ability to: (1) accelerate adoption of our products and
services; (2) anticipate the uncertainties inherent in the
development of new business lines and business strategies; (3)
manage risks associated with our third-party suppliers and
manufacturers and partners for our products; (4) manage risks
associated with adverse macroeconomic conditions, including
inflation, slower growth or recession, barriers to trade, changes
to fiscal and monetary policy, tighter credit, higher interest
rates, high unemployment, and currency fluctuations; (5) attract,
train, and retain effective officers, key employees and directors;
(6) develop, design, manufacture, and sell products and services
that are differentiated from those of competitors; (7) realize the
benefits expected from our acquisitions; (8) acquire or make
investments in other businesses, patents, technologies, products or
services to grow the business; (9) successfully pursue, defend,
resolve or anticipate the outcome of pending or future litigation
matters; (10) comply with laws and regulations applicable to our
business, including privacy regulations; (11) realize the benefits
expected from our stock repurchase program; and (12) maintain key
strategic relationships with partners and distributors. The
forward-looking statements herein represent the judgment of the
Company, as of the date of this release, and SmartRent disclaims
any intent or obligation to update forward-looking statements. This
press release should be read in conjunction with the information
included in the Company's other press releases, reports and other
filings with the SEC. Understanding the information contained in
these filings is important in order to fully understand the
Company's reported financial results and our business outlook for
future periods.
Use of Non-GAAP Financial Measures
In addition to disclosing financial results that are determined
in accordance with GAAP, SmartRent also discloses certain non-GAAP
financial measures in this press release, including EBITDA and
Adjusted EBITDA. These financial measures are not recognized
measures under GAAP and should not be considered in isolation or as
a substitute for, or superior to, the financial information
prepared and presented in accordance with GAAP.
We define Adjusted EBITDA as EBITDA before the following items:
stock-based compensation expense, non-employee warrant expense,
non-recurring warranty provisions, asset impairment, loss on
extinguishment of debt, non-recurring expenses in connection with
acquisitions, severance charges, and other expenses caused by
non-recurring, or unusual, events that are not indicative of our
ongoing business. We define EBITDA as net income or loss computed
in accordance with GAAP before interest income/expense, income tax
expense and depreciation and amortization.
EBITDA and Adjusted EBITDA may be determined or calculated
differently by other companies. Reconciliations of these non-GAAP
measures to the most directly comparable GAAP financial measures
have been provided in the financial statement tables included in
this press release, and investors are encouraged to review the
reconciliations.
EBITDA and Adjusted EBITDA are not used as measures of
SmartRent’s liquidity and should not be considered alternatives to
net income or loss or any other measure of financial performance
presented in accordance with GAAP.
SmartRent’s management uses EBITDA and Adjusted EBITDA in a
number of ways to assess the Company’s financial and operating
performance and believes that these measures provide useful
information to investors regarding financial and business trends
related to SmartRent’s results of operations. EBITDA and Adjusted
EBITDA are also used to identify certain expenses and make
decisions designed to help SmartRent meet its current financial
goals and optimize its financial performance, while neutralizing
the impact of expenses included in its operating results which
could otherwise mask underlying trends in its business. SmartRent’s
management believes that investors are provided with a more
meaningful understanding of SmartRent’s ongoing operating
performance when non-GAAP financial information is viewed with GAAP
financial information.
SMARTRENT, INC.
RECONCILIATION OF NON-GAAP
MEASURES
PRELIMINARY UNAUDITED
For the three months ended
June 30, 2024
(dollars
in thousands)
Net loss
$
(4,605
)
Interest income, net
(2,290
)
Income tax expense
68
Depreciation and amortization
1,585
EBITDA
(5,242
)
Stock-based compensation
3,284
Impairment of investment in
non-affiliate
2,250
Non-recurring warranty provision
463
Other acquisition expenses
117
Other non-operating expenses
30
Adjusted EBITDA
$
902
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240730774755/en/
Investor Contact Kelly Reisdorf Head of Investor
Relations investors@smartrent.com
Media Contact Amanda Chavez Senior Director, Corporate
Communications media@smartrent.com
SmartRent (NYSE:SMRT)
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