- Full year 2024 net revenue was $6.76
billion, exceeding the high-end of outlook range; reflects
organic revenue(1) growth at both ADI and Products and
Solutions
- Full year 2024 cash provided from operating activities was
$444 million, a new record and
exceeding outlook
- Full year 2024 net income was $116
million or $0.61 per fully
diluted share; Adjusted EBITDA was $693
million and Adjusted EPS was $2.29, both exceeding the high-end of outlook
range
- Fourth quarter net revenue growth was 21% year-over-year,
exceeding the high-end of outlook range
- Fourth quarter Products and Solutions gross margin was
40.8%, seventh consecutive quarter of year-over-year
improvement
SCOTTSDALE, Ariz., Feb. 20,
2025 /PRNewswire/ -- Resideo Technologies, Inc.
(NYSE: REZI), a leading global manufacturer, developer, and
distributor of technology-driven sensing and controls products and
solutions for residential and commercial end-markets, today
announced financial results for the full year and the fourth
quarter ended December 31, 2024.
Full Year 2024 Financial Highlights
- Net revenue was $6.76 billion, up
8% compared to $6.24 billion in
2023
- Net income was $116 million,
compared to $210 million in 2023
- Adjusted EBITDA(2) was $693
million, up 17% compared to $590
million in 2023
- Fully diluted EPS was $0.61 and
$1.42 and Adjusted EPS(2)
was $2.29 and $2.19 for 2024 and 2023, respectively
- Cash provided from operating activities of $444 million
Fourth Quarter 2024 Financial Highlights
- Net revenue was $1.86 billion, up
21% compared to $1.54 billion in the
fourth quarter 2023
- Net income was $23 million,
compared to $82 million in the fourth
quarter 2023
- Adjusted EBITDA(2) was $187
million, up 26% compared to $149
million in the fourth quarter 2023
- Fully diluted EPS was $0.08 and
$0.56 and Adjusted EPS(2)
was $0.59 and $0.64 for the fourth quarter 2024 and fourth
quarter 2023, respectively
Management Remarks
"Resideo finished 2024 in a strong position, exceeding the
high-end of the range for all four of our key financial metrics.
The ADI and Products and Solutions teams drove excellent
operational execution, generating organic net revenue growth in
both segments, continued gross margin expansion, healthy Adjusted
EBITDA growth, and record operating cash generation," said
Jay Geldmacher, Resideo's President
and CEO.
"As we look ahead to 2025, Resideo remains focused on growing
organically and expanding the company's margin profile. With
the Snap One integration well underway and synergy capture ahead of
schedule, ADI has momentum from its broad-based product category
strength and positive returns from its strategic e-commerce and
Exclusive Brands investments. And within Products and
Solutions, we are excited by the continued gross margin expansion
and the new product introductions to come in 2025. We believe
Resideo is well-positioned to capitalize on the profitable growth
opportunities ahead of us."
|
____________________
|
|
(1)
|
Excludes the impact of
the Snap One acquisition of $553 million, the Genesis divestiture
of $105 million, and foreign currency fluctuations of $6
million.
|
|
(2)
|
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, Adjusted Net Income, 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 U.S. GAAP results to
adjusted results in the accompanying tables.
|
Products and Solutions 2024 Highlights
- Net revenue was $2,564 million,
down 4% compared to 2023 and slightly positive growth
year-over-year, excluding the impact of the Genesis divestiture and
foreign currency
- Gross margin was 41.0%, up 240 basis points compared to
2023
- Income from operations was $503
million, compared to $446
million in 2023
- Adjusted EBITDA was $611 million,
or 23.8% of revenue, compared to $562
million, or 21.0% of revenue, in 2023
Products and Solutions delivered net revenue of $2,564 million in 2024, down 4% compared to 2023
and slightly positive growth year-over-year, excluding the impact
of the Genesis divestiture and foreign currency. Price increases
were realized across substantially all product categories in 2024,
but were offset by volume declines and foreign currency. Volume
declines in the Security and EMEA
OEM channels were partially offset by volume increases in
the Electrical Distribution and Retail channels. The business
continued to improve its performance with home builders in the new
construction market and achieved record sales highs in the Retail
channel due primarily to First Alert and BRK products. During the
second half of 2024, Products and Solutions introduced its new
programmable and connected thermostat line, the Honeywell Home
FocusPRO, targeted at the entry tier of the professional market,
and its new VISTA security product, in-line with its ongoing focus
to introduce a regular cadence of new products and drive future
innovation in key categories.
2024 gross margin was 41.0%, compared to 38.6% in the prior
year, reflecting structural improvements that increased operational
efficiency. Selling, general and administrative expenses were down
$12 million and research and
development expenses declined $14
million compared to 2023. Cost discipline was strong
throughout 2024, and, combined with the strong gross margin
expansion, helped drive operating profit of $503 million or 19.6% of revenue, up from
$446 million or 16.7% of revenue in
2023. Adjusted EBITDA grew 9% year-over-year in 2024 to
$611 million, with Adjusted EBITDA
margin up 280 basis points in 2024 to 23.8%.
ADI Global Distribution 2024 Highlights
- Net revenue was $4,197 million,
up 18% compared to 2023 and up 2% excluding the impact of the
acquisition of Snap One Holdings Corp. ("Snap One") and foreign
currency.
- Gross margin was 20.3%, up 160 basis points compared to
2023
- Income from operations was $195
million, compared to $238
million in 2023
- Adjusted EBITDA was $318 million,
or 7.6% of revenue, compared to $275
million, or 7.7% of revenue in 2023
- Acquired 100% of the issued and outstanding equity of Snap One
in June 2024 for an aggregate
purchase price of $1.4 billion,
inclusive of net debt. The integration of Snap One is well underway
and we have achieved approximately $17
million in run-rate synergies in 2024, ahead of plan.
ADI delivered net revenue of $4,197
million, up $627 million
compared to 2023, driven by the inclusion of $553 million of Snap One revenue. Organic growth
was 2% excluding the impact of the Snap One acquisition and foreign
currency. ADI overcame soft market conditions in the first half of
2024 with digital channels and product categories, such as video
surveillance, residential security, and fire and access control
demonstrating strength in the second half of 2024. Volume
increases were partially offset by price decreases. The e-commerce
channel, excluding Snap One, grew 11% in 2024 compared to the prior
year period. Exclusive Brands sales, excluding Snap One, grew 20%
year-over-year.
Gross margin was 20.3%, up 160 basis points compared to 2023.
The increase was driven by the inclusion of Snap One and higher
margin e-commerce and Exclusive Brands sales, partially offset by a
more competitive pricing environment. Selling, general and
administrative and research and development expenses were
$583 million in 2024, up $176 million compared to prior
period, including $158 million
of Snap One expenses. Operating profit of $195 million for 2024 decreased 18% from
$238 million in 2023. Adjusted EBITDA
increased to $318 million in 2024
from $275 million in 2023, primarily
due to the impact of the Snap One acquisition.
Full Year 2024 Financial Performance
Consolidated net revenue was $6.76
billion in 2024, compared to $6.24
billion in 2023. Gross profit margin was 28.1%, up 90 basis
points from the prior year period. Operating profit of $520 million is down 5%, compared to $547 million in the prior year period. Net income
for 2024 was $116 million, or
$0.61 per diluted common share,
compared with $210 million, or
$1.42 per diluted common share, in
the prior year period. Adjusted EPS was $2.29 in 2024 compared with $2.19 in 2023.
Fourth Quarter 2024 Financial Performance
Consolidated net revenue was $1.86
billion in the fourth quarter of 2024, compared to
$1.54 billion in the prior year
period. Gross profit margin was 28.5%, up 100 basis points from the
prior year period. Operating profit of $144
million is down 2%, compared to $147
million in the prior year period. Net income in the fourth
quarter of 2024 was $23 million, or
$0.08 per diluted common share,
compared with $82 million, or
$0.56 per diluted common share, in
the prior year period. Adjusted EPS was $0.59 in the fourth quarter of 2024 compared with
$0.64 in prior year period.
Cash Flow and Liquidity
Net cash provided by operating activities was $444 million in 2024 compared to $440 million in 2023. The increase was primarily
driven by improved working capital dynamics. At December 31,
2024, Resideo had cash and cash equivalents of $692 million and total outstanding debt of
$2.02 billion.
Outlook
The following table summarizes the Company's first quarter 2025
and full year 2025 outlook.
|
($ in millions, except
per share data)
|
Q1
2025
|
2025
|
|
Net
revenue
|
$1,720 -
$1,770
|
$7,285 -
$7,485
|
|
Non-GAAP Adjusted
EBITDA
|
$150 - $170
|
$725 - $805
|
|
Non-GAAP Adjusted
Earnings Per Share
|
$0.27 -
$0.33
|
$2.23 -
$2.47
|
|
Cash Provided by
Operations
|
|
$345 - $405
|
Conference Call and Webcast Details
Resideo will hold a conference call with investors
on February 20, 2025, 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 (U.S. toll-free) or 1-929-201-6127
(international), with the conference title "Resideo Fourth Quarter
and Full Year 2024 Earnings" or the conference ID: 7301399.
About Resideo
Resideo is a leading manufacturer, developer, and distributor of
technology-driven sensing and controls products and solutions for
residential and commercial end-markets. We are a leader in the home
heating, ventilation, and air conditioning controls markets, smoke
and carbon monoxide detection home safety and fire suppression
products markets, and security products markets. Our solutions and
services can be found in over 150 million residential and
commercial spaces globally, with tens of millions new devices sold
annually. For more information about Resideo and our trusted,
well-established brands including First Alert, Honeywell Home, BRK,
Control4, and others, visit www.resideo.com.
|
Contacts:
|
|
|
|
|
|
|
Investors:
|
|
Media:
|
|
Christopher T.
Lee
|
|
Garrett
Terry
|
|
Global Head of Investor
Relations
|
|
Corporate
Communications Manager
|
|
investorrelations@resideo.com
|
|
garrett.terry@resideo.com
|
Forward-Looking Statements
This release and the
related conference call contain "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 first quarter 2025 and full year
2025, (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 Snap One, and 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 Resideo to drive increased customer value and
financial returns and enhance strategic and operational
capabilities, (6) risks relating to tariffs that have been or may
be imposed by the United States
and other governments, and (7) 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, 2024 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 U.S. GAAP.
We have included reconciliations of these non-GAAP financial
measures to the most directly comparable financial measures
calculated and provided in accordance with U.S. GAAP at the end of
this release. A reconciliation of the forecasted range for Adjusted
EBITDA and Adjusted Net Income per diluted common share for the
first quarter of 2025 and for the fiscal period ending December 31, 2025 are not included in this
release due to the number of variables in the projected range and
because we are currently unable to quantify accurately certain
amounts that would be required to be included in the U.S. GAAP
measure or the individual adjustments for such reconciliation. In
addition, we believe such reconciliation would imply a degree of
precision that would be confusing or misleading to investors.
Table 1: SUMMARY OF FINANCIAL RESULTS (UNAUDITED)
|
Q4 2024 (1)
|
|
YTD 2024
(1)
|
|
(in
millions)
|
Products
and
Solutions
|
|
ADI Global
Distribution
|
|
Corporate
|
|
Total
Company
|
|
Products
and
Solutions
|
|
ADI Global
Distribution
|
|
Corporate
|
|
Total
Company
|
|
Net revenue
|
$ 669
|
|
$
1,189
|
|
$
—
|
|
$
1,858
|
|
$
2,564
|
|
$
4,197
|
|
$ —
|
|
$
6,761
|
|
Cost of goods
sold
|
396
|
|
932
|
|
—
|
|
1,328
|
|
1,514
|
|
3,346
|
|
—
|
|
4,860
|
|
Gross profit
|
273
|
|
257
|
|
—
|
|
530
|
|
1,050
|
|
851
|
|
—
|
|
1,901
|
|
Research and
development expenses
|
25
|
|
17
|
|
—
|
|
42
|
|
94
|
|
17
|
|
—
|
|
111
|
|
Selling, general and
administrative
expenses
|
109
|
|
169
|
|
32
|
|
310
|
|
416
|
|
566
|
|
156
|
|
1,138
|
|
Intangible asset
amortization
|
5
|
|
23
|
|
1
|
|
29
|
|
23
|
|
54
|
|
3
|
|
80
|
|
Restructuring,
impairment and
extinguishment costs
|
1
|
|
—
|
|
4
|
|
5
|
|
14
|
|
19
|
|
19
|
|
52
|
|
Income (loss) from
operations
|
$ 133
|
|
$
48
|
|
$ (37)
|
|
$ 144
|
|
$ 503
|
|
$
195
|
|
$
(178)
|
|
$ 520
|
|
|
Q4 2023 (1)
|
|
YTD 2023
(1)
|
|
(in
millions)
|
Products
and
Solutions
|
|
ADI Global
Distribution
|
|
Corporate
|
|
Total
Company
|
|
Products
and
Solutions
|
|
ADI Global
Distribution
|
|
Corporate
|
|
Total
Company
|
|
Net revenue
|
$ 683
|
|
$ 854
|
|
$
—
|
|
$
1,537
|
|
$
2,672
|
|
$
3,570
|
|
$
—
|
|
$
6,242
|
|
Cost of goods
sold
|
413
|
|
700
|
|
1
|
|
1,114
|
|
1,640
|
|
2,902
|
|
4
|
|
4,546
|
|
Gross profit
(loss)
|
270
|
|
154
|
|
(1)
|
|
423
|
|
1,032
|
|
668
|
|
(4)
|
|
1,696
|
|
Research and
development expenses
|
26
|
|
—
|
|
(1)
|
|
25
|
|
108
|
|
—
|
|
1
|
|
109
|
|
Selling, general and
administrative
expenses
|
106
|
|
100
|
|
35
|
|
241
|
|
428
|
|
407
|
|
125
|
|
960
|
|
Intangible asset
amortization
|
6
|
|
3
|
|
1
|
|
10
|
|
23
|
|
11
|
|
4
|
|
38
|
|
Restructuring and
impairment
expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
27
|
|
12
|
|
3
|
|
42
|
|
Income (loss) from
operations
|
$ 132
|
|
$
51
|
|
$ (36)
|
|
$ 147
|
|
$ 446
|
|
$ 238
|
|
$
(137)
|
|
$ 547
|
|
|
Q4 2024 % change
compared with
prior period
|
|
YTD 2024 % change
compared with
prior period
|
|
Products
and
Solutions
|
|
ADI Global
Distribution
|
|
Corporate
|
|
Total
Company
|
|
Products
and
Solutions
|
|
ADI Global
Distribution
|
|
Corporate
|
|
Total
Company
|
|
Net revenue
|
(2) %
|
|
39 %
|
|
N/A
|
|
21 %
|
|
(4) %
|
|
18 %
|
|
N/A
|
|
8 %
|
|
Cost of goods
sold
|
(4) %
|
|
33 %
|
|
N/A
|
|
19 %
|
|
(8) %
|
|
15 %
|
|
N/A
|
|
7 %
|
|
Gross profit
|
1 %
|
|
67 %
|
|
N/A
|
|
25 %
|
|
2 %
|
|
27 %
|
|
N/A
|
|
12 %
|
|
Research and
development expenses
|
(4) %
|
|
N/A
|
|
N/A
|
|
68 %
|
|
(13) %
|
|
N/A
|
|
N/A
|
|
2 %
|
|
Selling, general and
administrative
expenses
|
3 %
|
|
69 %
|
|
(9) %
|
|
29 %
|
|
(3) %
|
|
39 %
|
|
25 %
|
|
19 %
|
|
Intangible asset
amortization
|
(17) %
|
|
667 %
|
|
— %
|
|
190 %
|
|
— %
|
|
391 %
|
|
(25) %
|
|
111 %
|
|
Restructuring,
impairment and
extinguishment costs
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
(48) %
|
|
58 %
|
|
533 %
|
|
24 %
|
|
Income (loss) from
operations
|
1 %
|
|
(6) %
|
|
3 %
|
|
(2) %
|
|
13 %
|
|
(18) %
|
|
30 %
|
|
(5) %
|
|
|
|
(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 twelve months ended December 31, 2023,
$12 million and $49 million of corporate expenses have
been reclassified into the Products and Solutions while
$8 million and $32 million of corporate expenses have
been reclassified into the ADI Global Distribution segments,
respectively, decreasing reported Income from Operations to conform
to the current year presentation.
|
Table 2: CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
(in millions, except
per share data)
|
December 31,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Net revenue
|
$
1,858
|
|
$
1,537
|
|
$
6,761
|
|
$
6,242
|
|
Cost of goods
sold
|
1,328
|
|
1,114
|
|
4,860
|
|
4,546
|
|
Gross
profit
|
530
|
|
423
|
|
1,901
|
|
1,696
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
42
|
|
25
|
|
111
|
|
109
|
|
Selling, general and
administrative expenses
|
310
|
|
241
|
|
1,138
|
|
960
|
|
Intangible asset
amortization
|
29
|
|
10
|
|
80
|
|
38
|
|
Restructuring,
impairment and extinguishment
costs
|
5
|
|
—
|
|
52
|
|
42
|
|
Total operating
expenses
|
386
|
|
276
|
|
1,381
|
|
1,149
|
|
Income from
operations
|
144
|
|
147
|
|
520
|
|
547
|
|
Reimbursement Agreement
expense (1)
|
76
|
|
50
|
|
211
|
|
178
|
|
Other (income)
expenses, net
|
(3)
|
|
(19)
|
|
7
|
|
(9)
|
|
Interest expense,
net
|
26
|
|
15
|
|
81
|
|
65
|
|
Income before
taxes
|
45
|
|
101
|
|
221
|
|
313
|
|
Provision for income
taxes
|
22
|
|
19
|
|
105
|
|
103
|
|
Net income
|
$
23
|
|
$
82
|
|
$
116
|
|
$
210
|
|
Less: preferred stock
dividends
|
9
|
|
—
|
|
19
|
|
—
|
|
Less: undistributed
income allocated to preferred
stockholders
|
2
|
|
—
|
|
6
|
|
—
|
|
Net income available
to common stockholders
|
$
12
|
|
$
82
|
|
$
91
|
|
$
210
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.08
|
|
$
0.56
|
|
$
0.62
|
|
$
1.43
|
|
Diluted
|
$
0.08
|
|
$
0.56
|
|
$
0.61
|
|
$
1.42
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
147
|
|
146
|
|
146
|
|
147
|
|
Diluted
|
150
|
|
147
|
|
149
|
|
148
|
|
|
|
(1)
|
Represents the expense
incurred pursuant to the Reimbursement Agreement, which has an
annual cash payment cap of $140 million. The following table
summarizes information concerning the Reimbursement
Agreement:
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
(in
millions)
|
December 31,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Accrual for
Reimbursement Agreement liabilities
deemed probable and reasonably estimable
|
$
76
|
|
$
50
|
|
$
211
|
|
$
178
|
|
Cash payments made to
Honeywell
|
(35)
|
|
(35)
|
|
(140)
|
|
(140)
|
|
Accrual increase,
non-cash component in period
|
$
41
|
|
$
15
|
|
$
71
|
|
$
38
|
Table 3: CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
(in millions, except
par value)
|
December 31,
2024
|
|
December 31,
2023
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
692
|
|
$
636
|
|
Accounts receivable,
net
|
1,023
|
|
973
|
|
Inventories,
net
|
1,237
|
|
941
|
|
Other current
assets
|
220
|
|
193
|
|
Total current
assets
|
3,172
|
|
2,743
|
|
|
|
|
|
Property, plant and
equipment, net
|
410
|
|
390
|
|
Goodwill
|
3,072
|
|
2,705
|
|
Intangible assets,
net
|
1,176
|
|
461
|
|
Other assets
|
369
|
|
346
|
|
Total
assets
|
$
8,199
|
|
$
6,645
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
1,073
|
|
$
905
|
|
Accrued
liabilities
|
717
|
|
620
|
|
Total current
liabilities
|
1,790
|
|
1,525
|
|
|
|
|
|
Long-term
debt
|
1,983
|
|
1,396
|
|
Obligations payable
under Indemnification Agreements
|
674
|
|
609
|
|
Other
liabilities
|
443
|
|
366
|
|
Total
liabilities
|
4,890
|
|
3,896
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Preferred stock,
$0.001 par value: 100 shares authorized, 0.5 shares issued and
outstanding at December 31, 2024 and no shares issued and
outstanding at
December 31, 2023, respectively
|
482
|
|
—
|
|
Common stock, $0.001
par value: 700 shares authorized, 154 and 147 shares
issued and outstanding at December 31, 2024, respectively, and
151 and 145 shares
issued and outstanding at December 31, 2023,
respectively
|
—
|
|
—
|
|
Additional paid-in
capital
|
2,315
|
|
2,226
|
|
Retained
earnings
|
907
|
|
810
|
|
Accumulated other
comprehensive loss, net
|
(284)
|
|
(194)
|
|
Treasury stock at
cost
|
(111)
|
|
(93)
|
|
Total stockholders'
equity
|
3,309
|
|
2,749
|
|
Total liabilities and
stockholders' equity
|
$
8,199
|
|
$
6,645
|
Table 4: CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
(in
millions)
|
December 31,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
|
Net income
|
$
23
|
|
$
82
|
|
$
116
|
|
$
210
|
|
Adjustments to
reconcile net income to net
cash in operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
46
|
|
27
|
|
144
|
|
98
|
|
Restructuring,
impairment and
extinguishment costs
|
5
|
|
—
|
|
52
|
|
42
|
|
Stock-based
compensation expense
|
15
|
|
8
|
|
59
|
|
44
|
|
Deferred income
taxes
|
(31)
|
|
(28)
|
|
(31)
|
|
(28)
|
|
Other, net
|
2
|
|
(16)
|
|
7
|
|
(14)
|
|
Changes in assets and
liabilities, net of
acquired companies:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
61
|
|
28
|
|
(18)
|
|
19
|
|
Inventories,
net
|
(58)
|
|
36
|
|
(71)
|
|
32
|
|
Other current
assets
|
(20)
|
|
11
|
|
(5)
|
|
6
|
|
Accounts
payable
|
65
|
|
32
|
|
127
|
|
18
|
|
Accrued
liabilities
|
69
|
|
80
|
|
4
|
|
(34)
|
|
Other, net
|
26
|
|
3
|
|
60
|
|
47
|
|
Net cash provided by
operating activities
|
203
|
|
263
|
|
444
|
|
440
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
|
Acquisitions, net of
cash acquired
|
(3)
|
|
—
|
|
(1,337)
|
|
(16)
|
|
Capital
expenditures
|
(22)
|
|
(31)
|
|
(80)
|
|
(105)
|
|
Proceeds from sale of
business
|
—
|
|
86
|
|
—
|
|
86
|
|
Other investing
activities, net
|
2
|
|
(9)
|
|
8
|
|
(9)
|
|
Net cash used in
investing activities
|
(23)
|
|
46
|
|
(1,409)
|
|
(44)
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of long-term debt, net
|
—
|
|
—
|
|
1,176
|
|
—
|
|
Proceeds from issuance
of preferred stock,
net of issuance costs
|
—
|
|
—
|
|
482
|
|
—
|
|
Repayments of
long-term debt
|
(3)
|
|
(3)
|
|
(605)
|
|
(12)
|
|
Preferred dividend
payments
|
(12)
|
|
—
|
|
(12)
|
|
—
|
|
Common stock
repurchases
|
—
|
|
(13)
|
|
(1)
|
|
(41)
|
|
Other financing
activities, net
|
3
|
|
(1)
|
|
(9)
|
|
(11)
|
|
Net cash provided by
(used in) financing
activities
|
(12)
|
|
(17)
|
|
1,031
|
|
(64)
|
|
Effect of foreign
exchange rate changes on
cash, cash equivalents and restricted cash
|
(7)
|
|
(25)
|
|
(10)
|
|
(24)
|
|
Net increase in cash,
cash equivalents and
restricted cash
|
161
|
|
267
|
|
56
|
|
308
|
|
Cash, cash equivalents
and restricted cash at
beginning of period
|
532
|
|
370
|
|
637
|
|
329
|
|
Cash, cash equivalents
and restricted cash at
end of period
|
$
693
|
|
$
637
|
|
$
693
|
|
$
637
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATIONS
|
|
ADJUSTED NET INCOME
PER DILUTED COMMON SHARE AND
|
|
NET INCOME
COMPARISON
|
|
RESIDEO TECHNOLOGIES, INC.
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
(in millions, except
per share data)
|
December 31,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
GAAP Net
income
|
$
23
|
|
$
82
|
|
$
116
|
|
$
210
|
|
Less: preferred stock
dividends
|
9
|
|
—
|
|
19
|
|
—
|
|
Less: undistributed
income allocated to
preferred stockholders
|
2
|
|
—
|
|
6
|
|
—
|
|
GAAP Net income
available to common
stockholders
|
12
|
|
82
|
|
91
|
|
210
|
|
Intangible asset
amortization
|
29
|
|
10
|
|
80
|
|
38
|
|
Reimbursement
Agreement accrual increase,
non-cash component (1)
|
41
|
|
15
|
|
71
|
|
38
|
|
Stock-based
compensation expense
|
15
|
|
8
|
|
59
|
|
44
|
|
Restructuring,
impairment and extinguishment
costs, net
|
5
|
|
—
|
|
52
|
|
42
|
|
Acquisition and
integration costs
|
8
|
|
—
|
|
45
|
|
—
|
|
Undistributed income
allocated to preferred
stockholders
|
2
|
|
—
|
|
6
|
|
—
|
|
Other
(2)
|
1
|
|
(17)
|
|
20
|
|
(10)
|
|
Tax effect of
applicable non-GAAP
adjustments (3)
|
(24)
|
|
(4)
|
|
(83)
|
|
(38)
|
|
Non-GAAP Adjusted
net income
|
$
89
|
|
$
94
|
|
$
341
|
|
$
324
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
GAAP Net income per
diluted common share
|
$
0.08
|
|
$
0.56
|
|
$
0.61
|
|
$
1.42
|
|
Intangible asset
amortization
|
0.19
|
|
0.07
|
|
0.54
|
|
0.26
|
|
Reimbursement
Agreement accrual increase,
non-cash component (1)
|
0.27
|
|
0.10
|
|
0.48
|
|
0.26
|
|
Stock-based
compensation expense
|
0.10
|
|
0.05
|
|
0.40
|
|
0.30
|
|
Restructuring,
impairment and extinguishment
costs, net
|
0.03
|
|
—
|
|
0.35
|
|
0.28
|
|
Acquisition and
integration costs
|
0.05
|
|
—
|
|
0.30
|
|
—
|
|
Undistributed income
allocated to preferred
stockholders
|
0.01
|
|
—
|
|
0.04
|
|
—
|
|
Other
(2)
|
0.02
|
|
(0.12)
|
|
0.13
|
|
(0.07)
|
|
Tax effect of
applicable non-GAAP
adjustments (3)
|
(0.16)
|
|
(0.02)
|
|
(0.56)
|
|
(0.26)
|
|
Non-GAAP Adjusted
net income per diluted
common share
|
$
0.59
|
|
$
0.64
|
|
$
2.29
|
|
$
2.19
|
|
|
|
(1)
|
Refer to the
Consolidated Statements of Operations herein.
|
|
(2)
|
For 2024 periods, other
includes net periodic benefit costs, excluding service costs, Tax
Matters Agreement gain, gain on sale of investments, foreign
exchange transaction loss (income), litigation settlements, and an
inventory step-up related to the Snap One acquisition. For 2023
periods, other includes net periodic benefits costs, excluding
service costs, Tax Matters Agreement gain, gain on sale of
investments, and foreign exchange transaction loss
(income).
|
|
(3)
|
We calculated the tax
effect of non-GAAP adjustments by applying a flat statutory tax
rate of 25%.
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATIONS
|
|
ADJUSTED EBITDA AND
NET INCOME COMPARISON
|
|
(Unaudited)
|
|
RESIDEO TECHNOLOGIES, INC.
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
(in
millions)
|
December 31,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Net
revenue
|
$
1,858
|
|
$
1,537
|
|
$
6,761
|
|
$
6,242
|
|
|
|
|
|
|
|
|
|
GAAP Net
income
|
$
23
|
|
$
82
|
|
$
116
|
|
$
210
|
|
GAAP Net income as a
% of net revenue
|
1.2 %
|
|
5.3 %
|
|
1.7 %
|
|
3.4 %
|
|
Provision for income
taxes
|
22
|
|
19
|
|
105
|
|
103
|
|
GAAP Income before
taxes
|
45
|
|
101
|
|
221
|
|
313
|
|
Depreciation and
amortization
|
46
|
|
27
|
|
144
|
|
98
|
|
Interest expense,
net
|
26
|
|
15
|
|
81
|
|
65
|
|
Reimbursement
Agreement accrual increase,
non-cash component (1)
|
41
|
|
15
|
|
71
|
|
38
|
|
Stock-based
compensation expense
|
15
|
|
8
|
|
59
|
|
44
|
|
Restructuring,
impairment and extinguishment
costs, net
|
5
|
|
—
|
|
52
|
|
42
|
|
Acquisition and
integration costs
|
8
|
|
—
|
|
45
|
|
—
|
|
Other
(2)
|
1
|
|
(17)
|
|
20
|
|
(10)
|
|
Non-GAAP Adjusted
EBITDA
|
$
187
|
|
$
149
|
|
$
693
|
|
$
590
|
|
Non-GAAP Adjusted
EBITDA as a % of net
revenue
|
10.1 %
|
|
9.7 %
|
|
10.2 %
|
|
9.5 %
|
|
|
|
(1)
|
Refer to the
Consolidated Statements of Operations herein.
|
|
(2)
|
For 2024 periods, other
includes net periodic benefit costs, excluding service costs, Tax
Matters Agreement gain, gain on sale of investments, foreign
exchange transaction loss (income), litigation settlements, and an
inventory step-up adjustment related to the Snap One acquisition.
For 2023 periods, other includes net periodic benefit costs,
excluding service costs, Tax Matters Agreement gain, gain on sale
of investments, and foreign exchange transaction loss
(income).
|
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATIONS
|
|
(Unaudited)
|
|
PRODUCTS AND
SOLUTIONS SEGMENT
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
(in
millions)
|
December 31,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Net
revenue
|
$
669
|
|
$
683
|
|
$
2,564
|
|
$
2,672
|
|
|
|
|
|
|
|
|
|
GAAP Income from
operations
|
$
133
|
|
$
132
|
|
$
503
|
|
$
446
|
|
GAAP Income from
operations as a % of net
revenue
|
19.9 %
|
|
19.3 %
|
|
19.6 %
|
|
16.7 %
|
|
Stock-based
compensation expense
|
4
|
|
4
|
|
19
|
|
18
|
|
Restructuring and
impairment expense
|
1
|
|
—
|
|
14
|
|
27
|
|
Other
(1)
|
2
|
|
—
|
|
7
|
|
—
|
|
Non-GAAP Adjusted
Income from Operations
|
$
140
|
|
$
136
|
|
$
543
|
|
$
491
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
17
|
|
20
|
|
68
|
|
71
|
|
Non-GAAP Adjusted
EBITDA
|
$
157
|
|
$
156
|
|
$
611
|
|
$
562
|
|
Non-GAAP Adjusted
EBITDA as a % of net
revenue
|
23.5 %
|
|
22.8 %
|
|
23.8 %
|
|
21.0 %
|
|
|
|
(1)
|
Other includes
litigation settlements.
|
|
ADI GLOBAL
DISTRIBUTION SEGMENT
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
(in
millions)
|
December 31,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Net
revenue
|
$
1,189
|
|
$
854
|
|
$
4,197
|
|
$
3,570
|
|
|
|
|
|
|
|
|
|
GAAP Income from
operations
|
$
48
|
|
$
51
|
|
$
195
|
|
$
238
|
|
GAAP Income from
operations as a % of net
revenue
|
4.0 %
|
|
6.0 %
|
|
4.6 %
|
|
6.7 %
|
|
Restructuring and
impairment expense
|
—
|
|
—
|
|
19
|
|
12
|
|
Stock-based
compensation expense
|
5
|
|
2
|
|
13
|
|
7
|
|
Acquisition and
integration costs
|
6
|
|
—
|
|
12
|
|
—
|
|
Other
(1)
|
5
|
|
—
|
|
11
|
|
—
|
|
Non-GAAP Adjusted
Income from Operations
|
$
64
|
|
$
53
|
|
$
250
|
|
$
257
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
27
|
|
5
|
|
68
|
|
18
|
|
Non-GAAP Adjusted
EBITDA
|
$
91
|
|
$
58
|
|
$
318
|
|
$
275
|
|
Non-GAAP Adjusted
EBITDA as a % of net
revenue
|
7.7 %
|
|
6.8 %
|
|
7.6 %
|
|
7.7 %
|
|
|
|
(1)
|
Other includes
inventory step-up adjustment related to the Snap One acquisition
and litigation settlements.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/resideo-announces-full-year-and-fourth-quarter-2024-financial-results-and-initiates-2025-outlook-302381770.html
SOURCE Resideo Technologies, Inc.
