Resideo(REZI) - 2024 Q2 - Quarterly Results

Financial Performance - Second quarter net revenue was $1.59 billion, a decrease of 1% from$ 1.60 billion in the second quarter of 2023[3] - Net income for the second quarter was $30 million, down from$ 50 million in the same period last year[3] - Adjusted EBITDA reached $175 million, an increase of 13% compared to$ 155 million in the second quarter of 2023[3] - Total company net revenue for Q2 2024 was $1,589 million, a decrease of 1% compared to Q2 2023's$ 1,602 million[19] - Gross profit for Q2 2024 was $447 million, reflecting an increase of 3% from$ 436 million in Q2 2023[19] - Income from operations for Q2 2024 was $122 million, down from$ 153 million in Q2 2023, representing a decrease of 20%[19] - GAAP net income for the three months ended June 29, 2024, was $30 million, a decrease of 40% from$ 50 million for the same period in 2023[27] - Net revenue for the three months ended June 29, 2024, was $1.59 billion, slightly down from$ 1.60 billion in the prior year, representing a decrease of about 0.6%[30] - Non-GAAP adjusted EBITDA for the three months ended June 29, 2024, was $175 million, an increase of 12.9% from$ 155 million in the same period last year[30] - Cash flows from operating activities provided $92 million for the three months ended June 29, 2024, compared to$ 121 million for the same period in 2023, indicating a decline of 24%[25] Segment Performance - Products and Solutions segment reported net revenue of $630 million, a decline of 7% year-over-year[5] - ADI Global Distribution achieved net revenue of$ 959 million, a 4% increase compared to the second quarter of 2023[7] - Net revenue for the three months ended June 29, 2024, was $630 million, a decrease of 6.9% compared to$ 677 million for the same period in 2023[32] - In the ADI Global Distribution segment, net revenue for the three months ended June 29, 2024, was $959 million, an increase of 3.7% from$ 925 million in the prior year[34] Expenses and Costs - Research and development expenses decreased by 28% year-over-year to $21 million in Q2 2024, compared to$ 29 million in Q2 2023[19] - Selling, general and administrative expenses increased by 16% to $280 million in Q2 2024, up from$ 242 million in Q2 2023[19] - Stock-based compensation expense for the three months ended June 29, 2024, was $4 million, down from$ 5 million in the prior year[32] - The company reported acquisition and integration costs of $4 million in the ADI segment for the three months ended June 29, 2024[34] Guidance and Future Outlook - The company expects third quarter 2024 net revenue to be between$ 1.79 billion and $1.83 billion[11] - Full year 2024 net revenue guidance is set at$ 6.68 billion to $6.76 billion[11] Balance Sheet and Cash Flow - Total current assets as of June 29, 2024, were$ 2,884 million, an increase from $2,743 million at the end of 2023[21] - The company reported a cash and cash equivalents balance of$ 413 million as of June 29, 2024, down from $636 million at the end of 2023[21] - Total liabilities increased to$ 4.69 billion as of June 29, 2024, compared to $3.90 billion at December 31, 2023, reflecting a growth of approximately 20%[24] - Total stockholders' equity increased to$ 3.29 billion as of June 29, 2024, up from $2.75 billion at December 31, 2023, marking a growth of approximately 19.9%[24] - The company reported a net cash used in investing activities of$ 1.34 billion for the three months ended June 29, 2024, primarily due to acquisitions[25] - The company issued $582 million in incremental term loans under the A&R Term B Facility during the reporting period[25] Management Changes - The company appointed Mike Carlet as the new Chief Financial Officer, effective August 9, 2024[2]