Company Overview - Snap One is a leading distributor of smart-living technology, providing entertainment, connectivity, control, and security solutions to residential and commercial end users globally [2] - The company distributes a wide range of proprietary and third-party products through an online portal and local branch network, combining e-commerce benefits with same-day pickup convenience [2] - In addition to products, Snap One offers software, award-winning support, and digital workflow tools to assist integrator partners in building successful businesses [2] Merger and Trading Suspension - Snap One plans to suspend trading of its common stock on Nasdaq in connection with its acquisition by Resideo Technologies, Inc., which will be executed through a merger [4] - The merger is expected to close on June 14, 2024, pending the satisfaction of customary closing conditions [4] - Following the merger, Snap One will become a wholly-owned subsidiary of Resideo [4] Regulatory Filings - The company intends to file a Form 25 with the SEC around June 14, 2024, to suspend trading of its common stock [1] - Snap One also plans to file a Form 15 with the SEC shortly after the effectiveness of Form 25 to indefinitely suspend its reporting obligations under the Securities Exchange Act of 1934 [1]

SAN FRANCISCO and BOSTON, May 14, 2024 (GLOBE NEWSWIRE) -- Voltus, Inc. ("Voltus"), a leading distributed energy resource (DER) technology platform and virtual power plant (VPP) operator, together with Resideo Technologies (NYSE:REZI), a leading global provider of home comfort, energy management, security and life safety solutions, today announced the expansion of their residential smart thermostat demand response program offering to approximately 10 million Commonwealth Edison (ComEd) customers across the ...

IÂ'll now turn the call back to Jay for a few concluding remarks before we take questions. Cory Carpenter Jay Geldmacher Hi. Thank you. I had one and then a follow-up. I was hoping you could start by expanding on order volume trends. It sounded like perhaps they took a step back this quarter after you talked about stability the last few quarters. But if you could just kind of flesh that out the trends that youÂ're seeing there in your expectations for the rest of the year? And I think we got ourselves, from ...

Financial Performance - Q1 2024 - Resideo's net revenue for Q1 2024 was $1486 million, a decrease of 4% year-over-year[37] - Products and Solutions (P&S) revenue was $620 million, down 6% year-over-year[37] - ADI Global Distribution revenue was $866 million, a decrease of 3% year-over-year[37] - Adjusted EBITDA for Q1 2024 was $137 million, a decrease of 1% year-over-year[37] - Adjusted EPS – Diluted was $047, down 8% year-over-year[37] Financial Outlook - 2024 - The company projects consolidated revenue between $6080 million and $6280 million for 2024[1] - The company anticipates adjusted EBITDA between $560 million and $640 million for 2024[1] - The company expects adjusted EPS between $190 and $230 for 2024[1] - The company forecasts operating cash flow to be at least $320 million for 2024[1] Balance Sheet and Cash Flow - As of March 30, 2024, cash and cash equivalents were $603 million[3] - Total debt was $1406 million, with a net debt to LTM adjusted EBITDA ratio of 14x[3] - Free cash flow was $400 million [4]

[First Quarter 2024 Financial Results](index=1&type=section&id=First%20Quarter%202024%20Financial%20Results) [Financial Highlights & Management Remarks](index=1&type=section&id=Financial%20Highlights%20%26%20Management%20Remarks) Resideo's Q1 2024 net revenue declined 4% to $1.49 billion, with net income at $43 million, while Adjusted EBITDA remained stable at $137 million, supported by segment performance and transformation - Management noted Products and Solutions segment performance drove Adjusted EBITDA to the higher end of outlook, with improved margins despite market headwinds from high interest rates and slow housing turnover[4](index=4&type=chunk) - The company is advancing its transformation via manufacturing optimization, cost controls, and the planned Snap One acquisition, expanding growth opportunities[2](index=2&type=chunk)[4](index=4&type=chunk) Financial Metric Comparison | Financial Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $1.49 billion | $1.55 billion | -4% | | Net Income | $43 million | $57 million | -24.6% | | Adjusted EBITDA | $137 million | $138 million | -0.7% | | Fully Diluted EPS | $0.29 | $0.38 | -23.7% | | Adjusted EPS | $0.47 | $0.51 | -7.8% | [Segment Performance](index=2&type=section&id=Segment%20Performance) Q1 2024 segment performance diverged, with Products and Solutions improving margins despite revenue decline, while ADI Global Distribution saw revenue and margin contraction [Products and Solutions](index=2&type=section&id=Products%20and%20Solutions) Products and Solutions revenue decreased 6% to $620 million, but Adjusted EBITDA increased 9.4% to $140 million, with margin expanding to 22.6% due to cost efficiencies - Revenue headwinds stemmed from lower volumes in Air and Security, particularly in EMEA and due to low U.S. housing turnover, partially offset by First Alert and price realization[6](index=6&type=chunk) - Profitability improved due to better material costs, reduced freight, lower direct labor spending, and a **$13 million** reduction in SG&A expenses[7](index=7&type=chunk) Products and Solutions Segment Performance | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $620 million | $658 million | -6% | | Gross Margin | 39.5% | 37.7% | +180 bps | | Operating Profit | $112 million | $105 million | +6.7% | | Adjusted EBITDA | $140 million | $128 million | +9.4% | | Adjusted EBITDA Margin | 22.6% | 19.5% | +310 bps | [ADI Global Distribution](index=2&type=section&id=ADI%20Global%20Distribution) ADI Global Distribution's net revenue fell 3% to $866 million, with Adjusted EBITDA declining to $58 million due to margin contraction, despite growth in exclusive brands and e-commerce - Bright spots for ADI included **7%** growth in exclusive brand sales and **1%** growth in e-commerce, now **21%** of total ADI revenue[8](index=8&type=chunk)[13](index=13&type=chunk) - Gross margin decline was attributed to reduced inflationary pricing benefits from 2023 and lower product line margin[9](index=9&type=chunk) ADI Global Distribution Segment Performance | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $866 million | $891 million | -3% | | Gross Margin | 18.0% | 19.2% | -120 bps | | Operating Profit | $49 million | $64 million | -23% | | Adjusted EBITDA | $58 million | $70 million | -17.1% | | Adjusted EBITDA Margin | 6.7% | 7.9% | -120 bps | [Financial Position and Outlook](index=2&type=section&id=Financial%20Position%20and%20Outlook) Resideo's Q1 2024 operating cash flow improved to $2 million, with $603 million cash and $1.41 billion debt, while Q2 and full-year 2024 outlooks project continued revenue and EBITDA [Cash Flow and Liquidity](index=2&type=section&id=Cash%20Flow%20and%20Liquidity) Q1 2024 net cash from operating activities improved to $2 million, with the company holding $603 million in cash and $1.41 billion in total outstanding debt Cash Flow and Liquidity Summary | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $2 million | ($4 million) | | Cash and Cash Equivalents (End of Period) | $603 million | N/A | | Total Outstanding Debt (End of Period) | $1.41 billion | N/A | [Q2 and Full Year 2024 Outlook](index=3&type=section&id=Q2%20and%20Full%20Year%202024%20Outlook) The company forecasts Q2 2024 revenue between $1.51 billion and $1.56 billion, and full-year revenue between $6.08 billion and $6.28 billion, with operating cash flow of at least $320 million Q2 and Full Year 2024 Financial Outlook | ($ in millions, except per share data) | Q2 2024 Outlook | Full Year 2024 Outlook | | :--- | :--- | :--- | | Net revenue | $1,510 - $1,560 | $6,080 - $6,280 | | Non-GAAP Adjusted EBITDA | $130 - $150 | $560 - $640 | | Non-GAAP Adjusted EPS | $0.43 - $0.53 | $1.90 - $2.30 | | Full Year Cash Provided by Operating Activities | | At least $320 | [Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) Unaudited Q1 2024 consolidated financial statements show $1.486 billion revenue, $43 million net income, $6.52 billion total assets, and $2 million net cash from operations [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2024 consolidated statements of operations show net revenue of $1.486 billion, gross profit of $400 million, and net income of $43 million, or $0.29 per diluted share Consolidated Statements of Operations Summary | (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net revenue | $1,486 | $1,549 | | Gross profit | $400 | $418 | | Income from operations | $128 | $138 | | Net income | $43 | $57 | | Diluted EPS | $0.29 | $0.38 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of March 30, 2024, Resideo's balance sheet reported total assets of $6.52 billion, total liabilities of $3.751 billion, and total stockholders' equity of $2.769 billion Consolidated Balance Sheets Summary | (in millions) | March 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $603 | $636 | | Total current assets | $2,677 | $2,743 | | Total assets | $6,520 | $6,645 | | **Liabilities & Equity** | | | | Total current liabilities | $1,385 | $1,525 | | Long-term debt | $1,394 | $1,396 | | Total liabilities | $3,751 | $3,896 | | Total stockholders' equity | $2,769 | $2,749 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 cash flow statements show $2 million net cash from operating activities, $22 million used in investing, $8 million used in financing, ending with $604 million cash Consolidated Statements of Cash Flows Summary | (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $2 | ($4) | | Net cash used in investing activities | ($22) | ($26) | | Net cash used in financing activities | ($8) | ($9) | | Net decrease in cash | ($33) | ($33) | | Cash at end of period | $604 | $296 | [Non-GAAP Financial Measures and Reconciliations](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) Resideo provides GAAP to non-GAAP reconciliations, showing Q1 2024 GAAP Net Income of $43 million adjusted to $70 million, and company-wide Adjusted EBITDA of $137 million Non-GAAP Adjusted Net Income Reconciliation | (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | GAAP Net income | $43 | $57 | | Non-GAAP Adjusted net income | $70 | $76 | | GAAP Net income per diluted share | $0.29 | $0.38 | | Non-GAAP Adjusted net income per diluted share | $0.47 | $0.51 | Non-GAAP Adjusted EBITDA Reconciliation | (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | GAAP Net income | $43 | $57 | | Non-GAAP Adjusted EBITDA | $137 | $138 | | Non-GAAP Adjusted EBITDA as a % of net revenue | 9.2% | 8.9% |

Financial Performance - The company reported net revenue of $6,242 million for 2023, a decrease of 2% from $6,370 million in 2022 [226]. - Gross profit for 2023 was $1,696 million, down from $1,766 million in 2022, reflecting a gross margin of approximately 27.2% [226]. - Net income for 2023 was $210 million, a decline of 26% compared to $283 million in 2022, resulting in diluted earnings per share of $1.42 [226]. - Income from operations for 2023 was $547 million, down from $611 million in 2022, representing a decline of 10.5% [298]. - Products and Solutions segment revenue for 2023 was $2,672 million, down from $2,783 million in 2022, reflecting a decline of 4% [298]. - ADI Global Distribution segment revenue for 2023 was $3,570 million, a slight decrease from $3,587 million in 2022 [298]. - Net income for 2023 was $210 million, a decrease of 25.8% from $283 million in 2022 [230]. Cash Flow and Assets - Net cash provided by operating activities increased significantly to $440 million in 2023, compared to $152 million in 2022 [230]. - The company's total assets increased to $6,645 million in 2023 from $6,387 million in 2022, with cash and cash equivalents rising to $636 million [224]. - Cash, cash equivalents, and restricted cash at the end of 2023 totaled $637 million, up from $329 million at the end of 2022 [230]. - Total inventories decreased to $941 million in 2023 from $975 million in 2022, reflecting improved inventory management [247]. Expenses and Liabilities - Operating expenses totaled $1,149 million in 2023, slightly lower than $1,155 million in 2022, with research and development expenses at $109 million [226]. - Interest paid in 2023 was $80 million, an increase from $54 million in 2022, reflecting higher borrowing costs [230]. - The total accrued liabilities as of December 31, 2023, amounted to $608 million, a decrease from $640 million in 2022 [389]. - The company accrued warranty costs based on estimates of future obligations, adjusting provisions to reflect actual experience [257]. Debt and Interest Rates - Long-term debt stood at $1,396 million as of December 31, 2023, with $1,119 million of this debt carrying variable interest rates [215]. - The weighted average interest rate for the A&R Term B Facility increased from 6.78% in 2022 to 7.72% in 2023 [365]. - The aggregate required principal payments on long-term debt for 2024 to 2028 total $1,419 million, with a significant payment of $1,073 million due in 2028 [357]. - The company has exposure to interest rate movements and may enter into interest rate protection agreements to mitigate this risk [385]. Acquisitions and Investments - The company acquired 100% of Sfty AS, a developer of cloud-based services, enhancing its product offerings in smoke, carbon monoxide, and water leak detection [285]. - The company acquired 100% of BTX Technologies, Inc., a distributor of professional audio, video, and broadcast equipment, expanding its distribution capabilities [286]. - Capital expenditures rose to $105 million in 2023, up from $85 million in 2022, indicating increased investment in growth [230]. Pension and Compensation - The benefit obligation for U.S. pension plans decreased from $348 million in 2022 to $234 million in 2023, a reduction of approximately 32.8% [313]. - The actual return on U.S. plan assets for the year ended December 31, 2023, was $21 million, compared to a loss of $62 million in 2022 [314]. - Stock-based compensation expense for 2023 was $43 million, down from $48 million in 2022 [337]. - The number of Performance Stock Units (PSUs) non-vested as of December 31, 2023, was 1,593,866, with an average grant date fair value of $35.80 [342]. Environmental and Indemnification Liabilities - The company has ongoing liability for certain environmental claims, which are part of its ongoing business [406]. - The estimated liability for environmental-related liabilities recorded on the balance sheets is calculated as if the company were responsible for 100% of the environmental-liability payments associated with certain sites [395]. - As of December 31, 2023, total indemnification liabilities amounted to $749 million, an increase from $720 million in 2022 [404]. - The total indemnification liabilities reflect a consistent increase year-over-year, indicating a growing financial obligation [404].

Financial Data and Key Metrics Changes - Resideo reported Q4 2023 revenue of $1.54 billion, which is 1% lower than Q4 2022 but flat when excluding the Genesis wire business sale [17] - Operating income for Q4 was $147 million, a 50% increase compared to Q4 2022, and adjusted EBITDA was $136 million, up 11% year-over-year [34] - Cash flow from operations for Q4 was $263 million, an 89% increase compared to $139 million in Q4 last year, with full-year cash flow reaching a record $440 million [37][16] Business Line Data and Key Metrics Changes - Products and Solutions (P&S) revenue for Q4 was $683 million, down 1% year-over-year but up 2% when adjusting for the Genesis sale [34] - P&S gross margin in Q4 was 39.5%, up 110 basis points compared to last year, with sequential improvements throughout 2023 [35] - ADI revenue for Q4 was $854 million, down 1% from the prior year, with gross margin at 18%, down from 19.1% in Q4 2022 [36] Market Data and Key Metrics Changes - The U.S. experienced a nearly 20% reduction in existing home sales in 2023, leading to the weakest housing turnover year since 1995, negatively impacting the residential security business [23] - Despite market headwinds, consolidated sales fell only 2% in 2023 due to strong product offerings and customer relationships [23] Company Strategy and Development Direction - The company is focused on reshaping its portfolio and operations, including the divestiture of Genesis and outsourcing manufacturing to position for long-term growth [13] - Resideo aims to drive growth in the new construction market and improve product innovation, with new product introductions planned for 2024 [14] - The company is enhancing its digital capabilities and expanding into adjacent markets, particularly in audiovisual [32] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about a more accommodating macro backdrop as 2024 progresses, despite current interest rate challenges and low housing turnover [55] - The initial 2024 outlook implies low single-digit sales growth at the midpoint, with expectations for higher adjusted EBITDA and non-GAAP EPS compared to 2023 [55] Other Important Information - The company repurchased 719,000 shares for $11 million in Q4, totaling 2.6 million shares for $41 million for the full year [20] - The new agreement with ADT is expected to reduce security hardware sales by approximately $100 million in 2024 compared to 2023 [39] Q&A Session Summary Question: Clarification on order activity and revenue guidance for Q1 - Management acknowledged seasonality and expected lower security sales due to the ADT agreement and Genesis impact, indicating a ramp-up in sales as 2024 progresses [57] Question: Update on the relationship with ADT post-2025 - Management confirmed the end of the North American hardware business with ADT after 2025 but emphasized a strong foundation for continued collaboration [46] Question: Further room for price increases and product innovation pace - Management indicated limited price increase assumptions for 2024 and highlighted a focus on accelerating new product introductions across segments [50][51] Question: Long-term trajectory for P&S gross margins - Management discussed the potential for significant margin expansion as volumes recover and highlighted ongoing cost actions and portfolio optimization efforts [73][62]

• OPEX down 10% y/y adjusting for restructuring, with cost savings initiatives more than offsetting inflation impacts F ADI Global Distribution Financial Trends $0 $15 $30 $45 $60 $75 $90 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 ADI Operating Profit -14% Y/Y $M | --- | --- | |-------|-----------------------------------------------------------------| | | | | | Q4 2023 HIGHLIGHTS | | | | | • | Revenue down 1% y/y driven by declines in residential security | | | category, offset by growth in | | | ...

Q3 2023 Financial Performance - Revenue for Q3 2023 was $1.55 billion, a decrease of 4% year-over-year[4, 5] - Adjusted EBITDA for Q3 2023 was $138 million, a decrease of 14% year-over-year[6, 16] - Cash from operations for Q3 2023 was $60 million, an increase of 62% year-over-year[7] - Products and Solutions revenue for Q3 2023 was $654 million, a decrease of 7% year-over-year[10] - ADI Global Distribution revenue for Q3 2023 was $900 million, a decrease of 1% year-over-year[13] Gross Margin Analysis - Overall gross margin was 26.8%, an increase of 20 basis points year-over-year[16] - Products and Solutions gross margin was 38.7%, an increase of 250 basis points year-over-year[10, 16] - ADI Global Distribution gross margin was 18.3%, a decrease of 100 basis points year-over-year[13, 16] Q4 2023 and Full Year 2023 Outlook - The company expects Q4 2023 revenue to be between $1.495 billion and $1.545 billion[38] - The company expects full year 2023 revenue to be between $6.2 billion and $6.25 billion[38] - The company expects Q4 2023 adjusted EBITDA to be between $126 million and $146 million[38] - The company expects full year 2023 adjusted EBITDA to be between $542 million and $562 million[38]

Resideo Technologies, Inc. (NYSE:REZI) Q3 2023 Earnings Conference Call November 1, 2023 5:00 PM ET Company Participants Jason Willey – Vice President-Investor Relations Jay Geldmacher – Chief Executive Officer Tony Trunzo – Chief Financial Officer Conference Call Participants Erik Woodring – Morgan Stanley Ryan Merkel – William Blair Michael Fisher – Evercore ISI Isaac Sellhausen – Oppenheimer Operator Hello, ladies and gentlemen. My apologies for the technical delay. At this time, I'd like to welcome ever ...