Resideo Announces Fourth Quarter and Full Year 2023 Financial Results
Products and Solutions fourth quarter gross margin of 39.5%, third consecutive quarter of year-over-year and sequential improvement
Operating cash flow of
Repurchased 2.6 million shares during 2023 for $41 million as part of
Full Year 2023 Financial Highlights
- Net revenue of
$6.24 billion , down 2% from$6.37 billion in 2022 - Income from operations of
$547 million , including restructuring charges of$42 million , compared to$611 million in 2022, including$35 million of restructuring charges - Fully diluted GAAP EPS of
$1.42 and non-GAAP EPS of$1.58 compared to GAAP EPS of$1.90 and non-GAAP EPS of$1.99 in the prior year - Cash provided by operating activities of
$440 million , up from$152 million in the prior year
Fourth Quarter 2023 Financial Highlights
- Net revenue of
$1.54 billion compared to$1.56 billion in the fourth quarter 2022 - Income from operations of
$147 million compared to$98 million , including$35 million of restructuring charges in the fourth quarter 2022 - Fully diluted GAAP EPS of
$0.56 and non-GAAP EPS of$0.48 compared to GAAP EPS of$0.26 and non-GAAP EPS of$0.25 in the fourth quarter 2022 - Cash provided by operating activities of
$263 million , up from$139 million in the fourth quarter 2022
Management Remarks
"We finished 2023 on a strong note with results exceeding the midpoint of our fourth quarter outlook driven by continued improvement in order activity and gross margin in our Products and Solutions business," commented
"During 2023 we executed on a number of strategic initiatives including selling our
Products and Solutions 2023 Highlights
- Net revenue of
$2.67 billion , down 4% compared to 2022 - Gross margin of 38.6%, down 10 basis points compared to 2022
- Operating profit of
$495 million , including$27 million of restructuring charges, compared to$527 million operating profit and$29 million of restructuring charges in 2022 - Completed sale of
Genesis Cable business for$86 million
Products and Solutions delivered net revenue of
Gross margin for the year was 38.6%, compared to 38.7% in 2022. Gross margin reflects improving material costs, reduced freight, and lower direct labor spending, offset by factory deleveraging related to lower volumes. Gross margin improved sequentially in each quarter of 2023, reflecting input cost improvements and restructuring benefits. Operating profit for the year was
On
ADI Global Distribution Full Year 2023 Highlights
- Net revenue of
$3.57 billion , flat when compared to 2022 - Gross margin of 18.7%, down 70 basis points compared to 2022
- Operating profit of
$270 million , including$12 million of restructuring charges, compared to$313 million operating profit and$2 million of restructuring charges in 2022
ADI full year 2023 net revenue of
Gross margin for the year was 18.7%, down 70 basis points compared to 2022. The reduction was driven by reduced inflationary pricing benefits that drove higher margin in 2022 and lower product line margin. Selling, general and administrative expenses were
Full Year 2023 Financial Performance
Consolidated net revenue was
Fourth Quarter 2023 Financial Performance
Consolidated net revenue was
Cash Flow and Liquidity
Net cash provided by operating activities of
As part of the
Outlook
The following table summarizes the Company's current first quarter 2024 and updated full year 2024 outlook.
($ in millions, except per share data) |
Q1 2024 |
2024 |
Net revenue |
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Non-GAAP Adjusted EBITDA |
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Non-GAAP Earnings per share |
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|
Full Year Cash Provided by Operating Activities |
At least |
Conference Call and Webcast Details
About
Contacts: |
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Investors: |
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Media: |
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Vice President, Investor Relations |
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Corporate Communications Manager |
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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 first 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 Company's share repurchase program, the timing, purchase price and number of additional shares purchased under such program, if at all, the sources of funds under the repurchase program and the impacts of the repurchase program, and (6) 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
Use of Non-GAAP Measures
This press release and accompanying earnings material 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
The Company discloses a tabular comparison of Non-GAAP Adjusted Net Income, Non-GAAP Adjusted Net Income per diluted common share, Non-GAAP Adjusted EBITDA, and Non-GAAP Adjusted Income from Operations, each of which is a non-GAAP measure, because management believes that they are instrumental in comparing the results from period to period. Non-GAAP Adjusted Net Income, Non-GAAP Adjusted Net Income per diluted common share, Non-GAAP Adjusted EBITDA, and Non-GAAP Adjusted Income from Operations should not be considered in isolation or as a substitute for Net Income, Net Income per diluted common share or Income from operations, as applicable, as reported on the face of our consolidated statements of operations. We define Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Net Income per diluted common share as Net Income and Net income per diluted common share, respectively, as set forth on the face of our consolidated statements of operations, adjusted for the following items: pension settlement loss, restructuring and impairment expenses; acquisition/divestiture related costs, divestiture loss, litigation settlement, net of insurance proceeds, Tax Matters Agreement gain, foreign exchange transaction loss (income), and tax effect of applicable non-GAAP adjustments. We define Non-GAAP Adjusted EBITDA as Net Income as set forth on the face of our consolidated statements of operations, adjusted for the following items: provision for income taxes; depreciation and amortization; interest expense, net; stock-based compensation expense, pension settlement loss, restructuring and impairment expenses; acquisition/divestiture related costs, divestiture loss, litigation settlement, net of insurance proceeds, and Tax Matters Agreement gain, and foreign exchange transaction loss (income). We define Non-GAAP Adjusted Income from Operations as Income from operations as set forth on the face of our consolidated statements of operations, adjusted for the following items: stock-based compensation expense, restructuring and impairment charges, and acquisition/divestiture related costs. The Company provides outlook on a non-GAAP basis as we cannot predict certain elements which are included in reported GAAP results, including the impact of foreign exchange translation and pension settlement. A reconciliation of non-GAAP Adjusted EBITDA outlook to the corresponding GAAP financial measure (without the unavailable reconciling items) is included at the end of this release; however, please note that the unavailable reconciling items could materially impact the Company's results. A reconciliation of non-GAAP earnings per share to the corresponding GAAP measure is not included because certain reconciling items are not available.
Table 1: SUMMARY OF FINANCIAL RESULTS (UNAUDITED)
|
Q4 2023 |
|
YTD 2023 |
||||||||||||
(in millions) |
Products |
|
ADI Global |
|
Corporate |
|
Total |
|
Products |
|
ADI Global |
|
Corporate |
|
Total |
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 |
95 |
|
92 |
|
54 |
|
241 |
|
379 |
|
375 |
|
206 |
|
960 |
Intangible asset amortization |
6 |
|
3 |
|
1 |
|
10 |
|
23 |
|
11 |
|
4 |
|
38 |
Restructuring and impairment expenses |
— |
|
— |
|
— |
|
— |
|
27 |
|
12 |
|
3 |
|
42 |
Income (loss) from operations |
$ 143 |
|
$ 59 |
|
$ (55) |
|
$ 147 |
|
$ 495 |
|
$ 270 |
|
$ (218) |
|
$ 547 |
|
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Q4 2022 |
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YTD 2022 |
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(in millions) |
Products |
|
ADI Global |
|
Corporate |
|
Total |
|
Products |
|
ADI Global |
|
Corporate |
|
Total |
Net revenue |
$ 693 |
|
$ 867 |
|
$ — |
|
$ 1,560 |
|
$ 2,783 |
|
$ 3,587 |
|
$ — |
|
$ 6,370 |
Cost of goods sold |
427 |
|
701 |
|
1 |
|
1,129 |
|
1,707 |
|
2,891 |
|
6 |
|
4,604 |
Gross profit (loss) |
266 |
|
166 |
|
(1) |
|
431 |
|
1,076 |
|
696 |
|
(6) |
|
1,766 |
Research and development expenses |
30 |
|
— |
|
— |
|
30 |
|
110 |
|
— |
|
1 |
|
111 |
Selling, general and administrative expenses |
105 |
|
92 |
|
61 |
|
258 |
|
388 |
|
373 |
|
213 |
|
974 |
Intangible asset amortization |
6 |
|
3 |
|
1 |
|
10 |
|
22 |
|
8 |
|
5 |
|
35 |
Restructuring and impairment expenses |
29 |
|
2 |
|
4 |
|
35 |
|
29 |
|
2 |
|
4 |
|
35 |
Income (loss) from operations |
$ 96 |
|
$ 69 |
|
$ (67) |
|
$ 98 |
|
$ 527 |
|
$ 313 |
|
$ (229) |
|
$ 611 |
|
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Q4 2023 % change compared with prior period |
|
YTD 2023 % change compared with prior period |
||||||||||||
|
Products |
|
ADI Global |
|
Corporate |
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Total |
|
Products |
|
ADI Global |
|
Corporate |
|
Total |
Net revenue |
(1) % |
|
(1) % |
|
N/A |
|
(1) % |
|
(4) % |
|
— % |
|
N/A |
|
(2) % |
Cost of goods sold |
(3) % |
|
— % |
|
— % |
|
(1) % |
|
(4) % |
|
— % |
|
(33) % |
|
(1) % |
Gross profit (loss) |
2 % |
|
(7) % |
|
— % |
|
(2) % |
|
(4) % |
|
(4) % |
|
(33) % |
|
(4) % |
Research and development expenses |
(13) % |
|
N/A |
|
N/A |
|
(17) % |
|
(2) % |
|
N/A |
|
— % |
|
(2) % |
Selling, general and administrative expenses |
(10) % |
|
0 % |
|
(11) % |
|
(7) % |
|
(2) % |
|
1 % |
|
(3) % |
|
(1) % |
Intangible asset amortization |
— % |
|
— % |
|
— % |
|
— % |
|
5 % |
|
38 % |
|
(20) % |
|
9 % |
Restructuring and impairment expenses |
N/A |
|
N/A |
|
N/A |
|
N/A |
|
(7) % |
|
500 % |
|
(25) % |
|
20 % |
Income (loss) from operations |
49 % |
|
(14) % |
|
(18) % |
|
50 % |
|
(6) % |
|
(14) % |
|
(5) % |
|
(10) % |
Table 2: CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
Three Months Ended |
|
Twelve Months Ended |
||||
(in millions, except per share data) |
|
|
|
|
|
|
|
Net revenue |
$ 1,537 |
|
$ 1,560 |
|
$ 6,242 |
|
$ 6,370 |
Cost of goods sold |
1,114 |
|
1,129 |
|
4,546 |
|
4,604 |
Gross profit |
423 |
|
431 |
|
1,696 |
|
1,766 |
Operating expenses: |
|
|
|
|
|
|
|
Research and development expenses |
25 |
|
30 |
|
109 |
|
111 |
Selling, general and administrative expenses |
241 |
|
258 |
|
960 |
|
974 |
Intangible asset amortization |
10 |
|
10 |
|
38 |
|
35 |
Restructuring and impairment expenses |
— |
|
35 |
|
42 |
|
35 |
Total operating expenses |
276 |
|
333 |
|
1,149 |
|
1,155 |
Income from operations |
147 |
|
98 |
|
547 |
|
611 |
Reimbursement Agreement expense (1) |
50 |
|
41 |
|
178 |
|
157 |
Other expenses, net |
(19) |
|
$ (28) |
|
(9) |
|
(18) |
Interest expense, net |
15 |
|
15 |
|
65 |
|
54 |
Income before taxes |
101 |
|
70 |
|
313 |
|
418 |
Provision for income taxes |
19 |
|
31 |
|
103 |
|
135 |
Net income |
$ 82 |
|
$ 39 |
|
$ 210 |
|
$ 283 |
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
Basic |
$ 0.56 |
|
$ 0.26 |
|
$ 1.43 |
|
$ 1.94 |
Diluted |
$ 0.56 |
|
$ 0.26 |
|
$ 1.42 |
|
$ 1.90 |
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding: |
|
|
|
|
|
|
|
Basic |
146 |
|
146 |
|
147 |
|
146 |
Diluted |
147 |
|
149 |
|
148 |
|
149 |
|
|
(1) |
Represents the expense incurred pursuant to the Reimbursement Agreement, which has an annual cash payment cap of |
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||
(in millions) |
|
|
|
|
|
|
|
Accrual for Reimbursement Agreement liabilities deemed probable and reasonably estimable |
$ 50 |
|
$ 41 |
|
$ 178 |
|
$ 157 |
Cash payments made to Honeywell |
(35) |
|
(35) |
|
(140) |
|
(140) |
Accrual increase, non-cash component in period |
$ 15 |
|
$ 6 |
|
$ 38 |
|
$ 17 |
|
Refer to Note 15 Commitments and Contingencies in our Form 10K for the period ended |
Table 3: CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions, except par value) |
|
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ 636 |
|
$ 326 |
Accounts receivable, net |
973 |
|
1,002 |
Inventories, net |
941 |
|
975 |
Other current assets |
193 |
|
199 |
Total current assets |
2,743 |
|
2,502 |
|
|
|
|
Property, plant and equipment, net |
390 |
|
366 |
|
2,705 |
|
2,724 |
Intangible assets, net |
461 |
|
475 |
Other assets |
346 |
|
320 |
Total assets |
$ 6,645 |
|
$ 6,387 |
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ 905 |
|
$ 894 |
Current portion of long-term debt |
12 |
|
12 |
Accrued liabilities |
608 |
|
640 |
Total current liabilities |
1,525 |
|
1,546 |
|
|
|
|
Long-term debt |
1,396 |
|
1,404 |
Obligations payable under Indemnification Agreements |
609 |
|
580 |
Other liabilities |
366 |
|
328 |
Total liabilities |
3,896 |
|
3,858 |
|
|
|
|
Stockholders' equity |
|
|
|
Common stock,
issued and outstanding at
shares issued and outstanding at |
— |
|
— |
Additional paid-in capital |
2,226 |
|
2,176 |
Retained earnings |
810 |
|
600 |
Accumulated other comprehensive loss, net |
(194) |
|
(212) |
|
(93) |
|
(35) |
Total stockholders' equity |
2,749 |
|
2,529 |
Total liabilities and stockholders' equity |
$ 6,645 |
|
$ 6,387 |
Table 4: CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
Three Months Ended |
|
Twelve Months Ended |
||||
(in millions) |
|
|
|
|
|
|
|
Cash Flows From Operating Activities: |
|
|
|
|
|
|
|
Net income |
$ 82 |
|
$ 39 |
|
$ 210 |
|
$ 283 |
Adjustments to reconcile net income to net cash in operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
27 |
|
25 |
|
98 |
|
94 |
Restructuring and impairment expenses |
— |
|
35 |
|
42 |
|
35 |
Stock-based compensation expense |
8 |
|
14 |
|
44 |
|
50 |
Deferred income taxes |
(28) |
|
— |
|
(28) |
|
(3) |
Other, net |
(16) |
|
(5) |
|
(14) |
|
6 |
Changes in assets and liabilities, net of acquired companies: |
|
|
|
|
|
|
|
Accounts receivable, net |
28 |
|
70 |
|
19 |
|
(72) |
Inventories, net |
36 |
|
7 |
|
32 |
|
(122) |
Other current assets |
11 |
|
12 |
|
6 |
|
(26) |
Accounts payable |
32 |
|
(48) |
|
18 |
|
(43) |
Accrued liabilities |
80 |
|
4 |
|
(34) |
|
(21) |
Other, net |
3 |
|
(14) |
|
47 |
|
(29) |
Net cash provided by operating activities |
263 |
|
139 |
|
440 |
|
152 |
Cash Flows From Investing Activities: |
|
|
|
|
|
|
|
Capital expenditures |
(31) |
|
(51) |
|
(105) |
|
(85) |
Proceeds from sale of business |
86 |
|
— |
|
86 |
|
— |
Acquisitions, net of cash acquired |
— |
|
(5) |
|
(16) |
|
(665) |
Other investing activities, net |
(9) |
|
(1) |
|
(9) |
|
(14) |
Net cash provided by (used in) investing activities |
46 |
|
(57) |
|
(44) |
|
(764) |
Cash Flows From Financing Activities: |
|
|
|
|
|
|
|
Common stock repurchases |
(13) |
|
— |
|
(41) |
|
— |
Proceeds from issuance of A&R Term B Facility |
— |
|
— |
|
— |
|
200 |
Repayments of long-term debt |
(3) |
|
(3) |
|
(12) |
|
(12) |
Other financing activities, net |
(1) |
|
(9) |
|
(11) |
|
(18) |
Net cash (used in) provided by financing activities |
(17) |
|
(12) |
|
(64) |
|
170 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash |
(25) |
|
4 |
|
(24) |
|
(8) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
267 |
|
74 |
|
308 |
|
(450) |
Cash, cash equivalents and restricted cash at beginning of period |
370 |
|
255 |
|
329 |
|
779 |
Cash, cash equivalents and restricted cash at end of period |
$ 637 |
|
$ 329 |
|
$ 637 |
|
$ 329 |
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS ADJUSTED NET INCOME PER DILUTED COMMON SHARE AND NET INCOME COMPARISON (Unaudited)
|
|||||||
|
|||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||
(in millions, except per share data) |
|
|
|
|
|
|
|
GAAP Net income applicable to common shares |
$ 82 |
|
$ 39 |
|
$ 210 |
|
$ 283 |
Restructuring and impairment expenses |
— |
|
35 |
|
42 |
|
35 |
Divestiture (gain) loss, net |
(19) |
|
1 |
|
(18) |
|
6 |
Net periodic benefit (income) cost, excluding service costs |
3 |
|
(39) |
|
9 |
|
(39) |
Other (1) |
1 |
|
1 |
|
(1) |
|
16 |
Tax effect of applicable non-GAAP adjustments (2) |
4 |
|
— |
|
(8) |
|
(5) |
Non-GAAP Adjusted net income applicable to common shares |
$ 71 |
|
$ 37 |
|
$ 234 |
|
$ 297 |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||
|
|
|
|
|
|
|
|
GAAP Net income per diluted common share |
$ 0.56 |
|
$ 0.26 |
|
$ 1.42 |
|
$ 1.90 |
Restructuring and impairment expenses |
— |
|
0.23 |
|
0.28 |
|
0.24 |
Divestiture (gain) loss, net |
(0.13) |
|
0.01 |
|
(0.12) |
|
0.04 |
Net periodic benefit (income) cost, excluding service costs |
0.02 |
|
(0.26) |
|
0.06 |
|
(0.26) |
Other (1) |
0.01 |
|
0.01 |
|
(0.01) |
|
0.10 |
Tax effect of applicable non-GAAP adjustments (2) |
0.03 |
|
— |
|
(0.05) |
|
(0.03) |
Non-GAAP Adjusted net income per diluted common share |
$ 0.48 |
|
$ 0.25 |
|
$ 1.58 |
|
$ 1.99 |
|
|
(1) |
Other includes acquisition related costs, Tax Matters Agreement gain, foreign exchange transaction loss (income) and litigation settlement, net of insurance proceeds. |
|
|
(2) |
We calculated the tax effect of non-GAAP adjustments by applying a flat statutory tax rate of 25% for the three and twelve months ended |
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (Unaudited)
|
|||||||
|
|||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||
(in millions) |
|
|
|
|
|
|
|
Net revenue |
$ 1,537 |
|
$ 1,560 |
|
$ 6,242 |
|
$ 6,370 |
|
|
|
|
|
|
|
|
GAAP Net income applicable to common shares |
$ 82 |
|
$ 39 |
|
$ 210 |
|
$ 283 |
Provision for income taxes |
19 |
|
31 |
|
103 |
|
135 |
GAAP Income before taxes |
101 |
|
70 |
|
313 |
|
418 |
Depreciation and amortization |
27 |
|
25 |
|
98 |
|
94 |
Interest expense, net |
15 |
|
15 |
|
65 |
|
54 |
Stock-based compensation expense |
8 |
|
14 |
|
44 |
|
50 |
Net periodic benefit (income) cost, excluding service costs |
3 |
|
(39) |
|
9 |
|
(39) |
Restructuring and impairment expenses |
— |
|
35 |
|
42 |
|
35 |
Divestiture (gain) loss, net |
(19) |
|
1 |
|
(18) |
|
6 |
Other (1) |
1 |
|
1 |
|
(1) |
|
16 |
Non-GAAP Adjusted EBITDA |
$ 136 |
|
$ 122 |
|
$ 552 |
|
$ 634 |
Non-GAAP Adjusted EBITDA as a % of net revenue |
8.8 % |
|
7.8 % |
|
8.8 % |
|
10.0 % |
|
|
(1) |
Other includes acquisition related costs, Tax Matters Agreement gain, foreign exchange transaction loss (income) and litigation settlement, net of insurance proceeds. |
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (Unaudited)
PRODUCTS AND SOLUTIONS SEGMENT |
|||||||
|
|||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||
(in millions) |
|
|
|
|
|
|
|
Net revenue |
$ 683 |
|
$ 693 |
|
$ 2,672 |
|
$ 2,783 |
|
|
|
|
|
|
|
|
GAAP Income from operations |
$ 143 |
|
$ 96 |
|
$ 495 |
|
$ 527 |
Stock-based compensation expense |
5 |
|
5 |
|
18 |
|
18 |
Restructuring and impairment expenses |
— |
|
29 |
|
27 |
|
29 |
Acquisition related costs |
4 |
|
— |
|
5 |
|
— |
Non-GAAP Adjusted Income from Operations |
$ 152 |
|
$ 130 |
|
$ 545 |
|
$ 574 |
|
|
|
|
|
|
|
|
Depreciation and amortization |
20 |
|
19 |
|
71 |
|
69 |
Non-GAAP Adjusted EBITDA |
$ 172 |
|
$ 149 |
|
$ 616 |
|
$ 643 |
Non-GAAP Adjusted EBITDA as a % of net revenue |
25.2 % |
|
21.5 % |
|
23.1 % |
|
23.1 % |
ADI GLOBAL DISTRIBUTION SEGMENT |
|||||||
|
|||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||
(in millions) |
|
|
|
|
|
|
|
Net revenue |
$ 854 |
|
$ 867 |
|
$ 3,570 |
|
$ 3,587 |
|
|
|
|
|
|
|
|
GAAP Income from operations |
$ 59 |
|
$ 69 |
|
$ 270 |
|
$ 313 |
Stock-based compensation expense |
3 |
|
2 |
|
7 |
|
8 |
Restructuring and impairment expenses |
— |
|
2 |
|
12 |
|
2 |
Non-GAAP Adjusted Income from Operations |
$ 62 |
|
$ 73 |
|
$ 289 |
|
$ 323 |
|
|
|
|
|
|
|
|
Depreciation and amortization |
5 |
|
4 |
|
18 |
|
14 |
Non-GAAP Adjusted EBITDA |
$ 67 |
|
$ 77 |
|
$ 307 |
|
$ 337 |
Non-GAAP Adjusted EBITDA as a % of net revenue |
7.8 % |
|
8.9 % |
|
8.6 % |
|
9.4 % |
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (Unaudited)
|
|||||||
|
|||||||
|
Q1 2024 |
|
Fiscal Year 2024 |
||||
(in millions) |
Low |
|
High |
|
Low |
|
High |
Net revenue |
$ 1,460 |
|
$ 1,510 |
|
$ 6,080 |
|
$ 6,280 |
|
|
|
|
|
|
|
|
GAAP Net income applicable to common shares |
$ 37 |
|
$ 57 |
|
$ 210 |
|
$ 270 |
Provision for income taxes |
26 |
|
26 |
|
125 |
|
145 |
GAAP Income before taxes |
63 |
|
83 |
|
335 |
|
415 |
Depreciation and amortization |
25 |
|
25 |
|
100 |
|
100 |
Interest expense, net |
17 |
|
17 |
|
65 |
|
65 |
Stock-based compensation expense |
15 |
|
15 |
|
60 |
|
60 |
Non-GAAP Adjusted EBITDA |
$ 120 |
|
$ 140 |
|
$ 560 |
|
$ 640 |
Non-GAAP Adjusted EBITDA as a % of net revenue |
8.2 % |
|
9.3 % |
|
9.2 % |
|
10.2 % |
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