false000174033200017403322024-08-072024-08-07

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 7, 2024
RESIDEO TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
Delaware001-3863582-5318796
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
16100 N. 71st Street, Suite 550
Scottsdale, Arizona
85254
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (480) 573-5340
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class:
Trading
Symbol:
Name of each exchange
on which registered:
Common Stock, par value $0.001 per shareREZINew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02.    Results of Operations and Financial Condition.

On August 8, 2024, Resideo Technologies, Inc. (the “Company”) issued a press release announcing its second quarter 2024 earnings, which is furnished herewith as Exhibit 99. The information furnished pursuant to this Item 2.02, including Exhibit 99, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.

Item 5.02.
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On August 7, 2024, the Board of Directors of the Company appointed Michael Carlet as the Company’s Executive Vice President, Chief Financial Officer, effective August 9, 2024.

Mr. Carlet, age 56, has served as the Chief Financial Officer of Snap One Holdings Corp. (“Snap One”), a provider of smart-living products, services, and software to professional integrators, since 2014, including through the acquisition of Snap One by the Company on June 14, 2024.

In connection with Mr. Carlet’s appointment as Chief Financial Officer, the Compensation and Human Capital Management Committee (the “Committee”) approved compensation for Mr. Carlet as follows: (i) annual base salary of $575,000, (ii) a target annual incentive opportunity of 100% of base salary (with a bonus for 2024 pro-rated based on the different bonus arrangements in effect for Mr. Carlet during the year) and (iii) commencing with the annual awards for 2025, annual long-term incentive awards with a grant date fair value at target of $2,000,000. The Committee also approved an initial equity award with a grant date fair value of $400,000, 50% of which will be issued in the form of restricted stock units that vest as to one-third of the units on each annual anniversary of the date of grant and 50% of which will be issued as performance stock units with the same terms and goals as the comparable awards granted to the Company’s other executive officers for 2024. Mr. Carlet is also eligible to participate in the executive-officer level severance benefits under the Company’s Severance Plan for Designated Officers and all other executive-level benefit and perquisite plans.

Mr. Carlet succeeds Anthony Trunzo, who was appointed to a new, non-executive officer position of Senior Vice President, Executive Advisor, in order to ensure a smooth CFO transition. Mr. Trunzo will serve in this transition role until March 2025 when his employment will terminate under circumstances entitling him to severance benefits as described below. In addition, to provide further focus and alignment to the Products & Solutions business segment, Dana Huth, who previously served as Executive Vice President, Chief Revenue Officer, was appointed to a new, non-executive officer position of Senior Vice President, Chief Revenue Officer, P&S, also effective August 9, 2024.

In connection with the changes in position for Mr. Trunzo and Mr. Huth, the Committee approved certain compensatory arrangements for their service in their new roles, which include maintaining their annual base salaries ($669,900 for Mr. Trunzo and $540,800 for Mr. Huth) and their target annual incentive compensation opportunities (100% for Mr. Trunzo and 80% for Mr. Huth). The Committee also approved extending Mr. Trunzo’s and Mr. Huth’s participation in the executive-level excess liability insurance and executive physical programs while in their new roles. Mr. Trunzo and Mr. Huth will be eligible for severance under the executive severance plan applicable to non-officer executives of the Company; however, in the event of a qualifying termination within the next year they will be eligible for enhanced severance of 18 months. Mr. Trunzo will no longer be eligible for annual long-term incentive compensation awards, and Mr. Huth’s target annual long-term incentive compensation will remain $1,500,000.

Item 9.01.    Financial Statements and Exhibits.

(d)Exhibits.

99
104
Cover Page Interactive Data File (embedded within the Inline XBRL document).
2

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: August 8, 2024
RESIDEO TECHNOLOGIES, INC.
By:/s/ Jeannine J. Lane
Name:Jeannine J. Lane
Title:Executive Vice President, General Counsel and Corporate Secretary
3

Exhibit 99
g408907g07p79.jpg

Resideo Announces Second Quarter 2024 Financial Results

Second quarter net income of $30 million; Adjusted EBITDA of $175 million, above the high end of outlook range

Products and Solutions second quarter gross margin of 41.3%, fifth consecutive quarter of year-over-year improvement

Continued progress on business transformation with forthcoming new product introductions and completed acquisition of Snap One

Appoints new Chief Financial Officer, Mike Carlet, former Snap One CFO


SCOTTSDALE, Ariz., August 8, 2024 – Resideo Technologies, Inc. (NYSE: REZI), a leading global manufacturer and distributor of technology-driven products and solutions that provide home comfort and smart living, security, life safety and energy efficiency to consumers and businesses, today announced financial results for the second quarter ended June 29, 2024, which include 15 days of Snap One financial results following the close of the transaction on June 15, 2024.
Second Quarter 2024 Financial Highlights
•Net revenue of $1.59 billion, down 1% compared to $1.60 billion in the second quarter 2023
•Net income of $30 million compared to $50 million in the second quarter 2023
•Adjusted EBITDA(1) of $175 million compared to $155 million in the second quarter 2023
•Fully diluted EPS of $0.19 and $0.34 and Adjusted EPS(1) of $0.62 and $0.48 for the second quarter 2024 and second quarter 2023, respectively.
Management Remarks
“Our second quarter results demonstrated the substantial progress we have made in transforming the structural profitability profile of the business and in executing on value creating strategic transactions,” commented Jay Geldmacher, Resideo’s President and CEO. “Products and Solutions delivered gross margin and Adjusted EBITDA margin at the highest levels since first quarter 2022. The business accomplished these results in a market environment constrained by higher interest rates and low housing turnover. ADI continued to make progress in driving key strategic initiatives around e-commerce and exclusive brands sales and saw improved customer activity as the quarter progressed.”
“I want to welcome former Snap One CFO, Mike Carlet, as CFO of Resideo effective tomorrow. Mike brings extensive finance and industry experience and will be a real asset across the organization. I also want to thank Tony Trunzo, who will stay on until March of 2025 to ensure a successful transition. Tony has been a tremendous partner to me and instrumental in Resideo's transformation through his leadership in rebuilding our balance sheet, rationalizing our cost structure, and helping shape the strategic direction of the business.”

1
(1) 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 measure, specifically Adjusted EBITDA 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 Second Quarter 2024 Highlights
•Net revenue of $630 million, decreased 7% compared to the second quarter 2023
•Gross margin of 41.3%, up 300 basis points compared to the second quarter 2023
•Income from operations of $130 million compared to $115 million in the second quarter 2023
•Adjusted EBITDA of $156 million, 24.8% of revenue, compared to $137 million,      of revenue, in the second quarter 2023
Products and Solutions delivered net revenue of $630 million in the second quarter 2024, down 7% compared to second quarter 2023 and down 2% excluding the impact of the Genesis divestiture. First Alert safety products again delivered strong year-over-year sales growth, driven by continued expansion in the residential new construction channel. Air product revenue stabilized and orders improved compared to second quarter 2023, reflecting normalized channel inventories with key distributor customers and strength in new construction. Offsetting this growth was slower activity in the EMEA region, particularly in Energy products.
Gross margin for the quarter was 41.3%, compared to 38.3% in the second quarter 2023, reflecting improving material costs, lower direct labor spending and more favorable factory utilization. Selling, general and administrative expenses were down $8 million and research and development expenses remained down compared to 2023. Expense management was again strong in the quarter and helped drive operating profit for the quarter of $130 million or 20.6% of revenue, up from $115 million or 17% of revenue in second quarter 2023. Adjusted EBITDA grew 14% year-over-year in the second quarter 2024 to $156 million, with Adjusted EBITDA margin up 460 basis points to 24.8%.
ADI Global Distribution Second Quarter 2024 Highlights
•Net revenue of $959 million, increased 4% compared to the second quarter 2023
•Gross margin of 19.4%, up 20 basis points compared to the second quarter 2023
•Income from operations of $62 million compared to $71 million in the second quarter 2023
•Adjusted EBITDA of $77 million, 8.1% of revenue, compared to $79 million, 8.6% of revenue, in the second quarter 2023
•Exclusive brand sales up 18% compared to prior year second quarter, not including Snap One

ADI second quarter 2024 net revenue of $959 million increased $34 million compared to second quarter 2023, driven by the inclusion of $45 million of Snap One revenue following the transaction close on June 15, 2024. ADI had growth in several categories including Fire, Intrusion, Datacom and Professional Audio Visual. This was offset by year-over-year declines in Video Surveillance and Residential Audio Visual. For ADI, not including Snap One, the e-commerce channel grew 6% in second quarter 2024 compared to the prior year period. Exclusive brand sales, not including Snap One, grew by 18% compared to the second quarter 2023, with record sales levels achieved for the quarter.

Gross margin for the quarter was 19.4%, up 20 basis points compared to second quarter of 2023. The increase was driven by the inclusion of higher margin Snap One sales, largely offset by reduced inflationary pricing benefits and lower product line margin. ADI has experienced a reduction of average cost inventory benefits year-over-year, as supplier price increases have reduced in pace and scale in 2024. Selling, general and administrative expenses were $118 million in 2024, up $16 million compared to prior period including $12 million of Snap One expenses. Operating profit of $62 million for second quarter 2024 decreased 13% from $71 million in second quarter 2023. Adjusted EBITDA declined to $77 million in second quarter 2024 from $79 million in second quarter 2023.
Cash Flow and Liquidity
Net cash provided by operating activities was $92 million in second quarter 2024 compared to $121 million in the second quarter 2023. The decrease was primarily driven by Snap One transaction costs. At June 29, 2024, Resideo had cash and cash equivalents of $413 million and total outstanding debt of $1.99 billion.
Outlook
The following table summarizes the Company’s current third quarter 2024 and full year 2024 outlook.


($ in millions, except per share data)Q3 20242024
Net revenue$1,790 - $1,830$6,680 - $6,760
Non-GAAP Adjusted EBITDA$170 - $180$655 - $695
Non-GAAP Adjusted Earnings per share$0.49 - $0.59$2.15 - $2.35
Full Year Cash Provided by Operating Activities At least $375
Conference Call and Webcast Details
Resideo will hold a conference call with investors on August 8, 2024, 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 Second Quarter 2024 Earnings” or the conference ID: 7301399.
About Resideo
Resideo is a leading global manufacturer and developer of technology-driven products and components that provide critical comfort, energy management, and safety and security solutions to over 150 million homes globally. Through our ADI Global Distribution business, we are also a leading wholesale distributor of professionally installed electronic security and life safety products for commercial and residential markets and serve a variety of adjacent product categories including audio visual, data communications, and smart home solutions. For more information about Resideo, please visit www.resideo.com.
Contacts:
Investors:Media:
Jason WilleyGarrett Terry
Vice President, Investor RelationsCorporate Communications Manager
investorrelations@resideo.comgarrett.terry@resideo.com


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 third 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 ability of Snap One and/or Resideo to drive increased customer value and financial returns and enhance strategic and operational capabilities, (6) the ability of Snap One and/or Resideo to achieve the targeted amount of synergies and the related valuation implications described in this press release, (7) the accretive nature of the transaction to Resideo's non-GAAP EPS in the first full year of ownership and the growth and margin profile of the combined businesses, (8) the ability to accelerate brand strategy as a result of the transaction, (9) the ability to integrate the Snap One business into Resideo and realize the anticipated strategic benefits of the transaction, including the anticipated operational and strategic benefits of the transaction, and (10) 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, 2023 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 third quarter of 2024 and for the fiscal period ending December 31, 2024 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)

 
Q2 2024 (1)
YTD 2024 (1)
(in millions)
Products and Solutions ADI Global Distribution Corporate Total CompanyProducts and SolutionsADI Global DistributionCorporateTotal Company
Net revenue$630  $959  $—  $1,589 $1,250 $1,825 $— $3,075 
Cost of goods sold370  773  (1) 1,142 745 1,483 — 2,228 
Gross profit 260 186 1 447 505 342 — 847 
Research and development expenses21 — —  21 46 — — 46 
Selling, general and administrative expenses103 118 59  280 200 220 91 511 
Intangible asset amortization6 6 1  13 12 9 1 22 
Restructuring, impairment and extinguishment costs, net
— — 11 11 5 2 11 18 
Income (loss) from operations$130 $62 $(70)$122 $242 $111 $(103)$250 

 
Q2 2023 (1)
YTD 2023 (1)
(in millions)
Products and SolutionsADI Global DistributionCorporateTotal CompanyProducts and SolutionsADI Global DistributionCorporateTotal Company
Net revenue$677  $925  $—  $1,602 $1,335 $1,816 $— $3,151 
Cost of goods sold418  747  1  1,166 826 1,467 2 2,295 
Gross profit (loss)259 178 (1)436 509 349 (2)856 
Research and development expenses28 — 1  29 55 — 1 56 
Selling, general and administrative expenses111 102 30 242 221 207 58 486 
Intangible asset amortization5 3 1  10 11 6 2 19 
Restructuring and impairment expenses— 2 — 2 2 2 — 4 
Income (loss) from operations$115 $71 $(33)$153 $220 $135 $(64)$291 

 
Q2 2024 % change compared with prior period
YTD 2024 % change compared with prior period
 Products and SolutionsADI Global DistributionCorporateTotal CompanyProducts and SolutionsADI Global DistributionCorporateTotal Company
Net revenue(7)%4 %N/A(1)%(6)%— %N/A(2)%
Cost of goods sold(11)%3 %N/A(2)%(10)%1 %N/A(3)%
Gross profit — %4 %N/A3 %(1)%(2)%N/A(1)%
Research and development expenses(25)%N/AN/A(28)%(16)%N/AN/A(18)%
Selling, general and administrative expenses(7)%16 %97 %16 %(10)%6 %57 %5 %
Intangible asset amortization20 %100 %— %30 %9 %50 %(50)%16 %
Restructuring, impairment and extinguishment costs, net
N/AN/AN/A450 %150 %— %N/A350 %
Income (loss) from operations13 %(13)%112 %(20)%10 %(18)%61 %(14)%
(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 six months ended July 1, 2023, $13 million and $25 million of corporate expenses have been reclassified into the Products and Solutions while $8 million and $16 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 Six Months Ended
(in millions, except per share data)
June 29, 2024July 1, 2023 June 29, 2024July 1, 2023
Net revenue$1,589 $1,602 $3,075 $3,151 
Cost of goods sold1,142 1,166 2,228 2,295 
Gross profit447 436 847 856 
Operating expenses:
Research and development expenses21 29 46 56 
Selling, general and administrative expenses280 242 511 486 
Intangible asset amortization13 10 22 19 
Restructuring, impairment and extinguishment costs, net
11 2 18 4 
Total operating expenses325 283 597 565 
Income from operations122 153 250 291 
Reimbursement Agreement expense (1)
47 44 90 85 
Other expense (income), net1 (2)— (3)
Interest expense, net15 17 28 34 
Income before taxes59 94 132 175 
Provision for income taxes29 44 59 68 
Net income $30 $50 $73 $107 
Earnings per common share:
Basic$0.19 $0.34 $0.49 $0.73 
Diluted$0.19 $0.34 $0.48 $0.72 
Weighted average common shares outstanding:
Basic146147146147
Diluted149149148149
(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 EndedSix Months Ended
(in millions)June 29, 2024July 1, 2023June 29, 2024July 1, 2023
Accrual for Reimbursement Agreement liabilities deemed probable and reasonably estimable$47 $44 $90 $85 
Cash payments made to Honeywell(35)(35)(70)(70)
Accrual increase, non-cash component in period$12 $9 $20 $15 



Table 3: CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions, except par value)June 29, 2024December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents$413 $636 
Accounts receivable, net1,071 973 
Inventories, net1,188 941 
Other current assets212 193 
Total current assets2,884 2,743 
Property, plant and equipment, net424 390 
Goodwill3,079 2,705 
Intangible assets, net1,218 461 
Other assets379 346 
Total assets$7,984 $6,645 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$980 $905 
Current portion of long-term debt12 12 
Accrued liabilities602 608 
Total current liabilities1,594 1,525 
Long-term debt1,979 1,396 
Obligations payable under Indemnification Agreements625 609 
Other liabilities492 366 
Total liabilities4,690 3,896 
Stockholders’ equity
Preferred stock, $0.001 par value: 100 shares authorized, 0.5 shares issued and outstanding at June 29, 2024 and no shares issued and outstanding at December 31, 2023, respectively482 — 
Common stock, $0.001 par value: 700 shares authorized, 152 and 146 shares issued and outstanding at June 29, 2024, respectively, and 151 and 145 shares issued and outstanding at December 31, 2023, respectively — — 
Additional paid-in capital2,276 2,226 
Retained earnings881 810 
Accumulated other comprehensive loss, net(242)(194)
Treasury stock at cost(103)(93)
Total stockholders’ equity3,294 2,749 
Total liabilities and stockholders’ equity$7,984 $6,645 


Table 4: CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 Three Months EndedSix Months Ended
(in millions)
June 29, 2024July 1, 2023June 29, 2024July 1, 2023
Cash Flows From Operating Activities:
Net income$30 $50 $73 $107 
Adjustments to reconcile net income to net cash in operating activities:
Depreciation and amortization28 25 52 49 
Stock-based compensation expense15 13 29 25 
Other, net7 4 17 6 
Changes in assets and liabilities, net of acquired companies:
Accounts receivable, net(91)(58)(57)(35)
Inventories, net(11)12 (4)(15)
Other current assets6 11 9 3 
Accounts payable75 56 31 44 
Accrued liabilities11 (8)(78)(94)
Other liabilities22 16 22 27 
Net cash provided by operating activities92 121 94 117 
Cash Flows From Investing Activities:
Acquisitions, net of cash acquired(1,334)— (1,334)(6)
Capital expenditures(15)(29)(36)(49)
Other investing activities, net7 — 6 — 
Net cash used in investing activities(1,342)(29)(1,364)(55)
Cash Flows From Financing Activities:
Proceeds from issuance of incremental term loans under the A&R Term B Facility, net
582 — 582 — 
Proceeds from issuance of preferred stock, net of issuance costs482 — 482 — 
Repayments of long-term debt(3)(3)(6)(6)
Other financing activities, net(1)(6)(6)(12)
Net cash provided by (used in) financing activities1,060 (9)1,052 (18)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash— 4 (5)10 
Net (decrease) increase in cash, cash equivalents and restricted cash(190)87 (223)54 
Cash, cash equivalents and restricted cash at beginning of period604 296 637 329 
Cash, cash equivalents and restricted cash at end of period$414 $383 $414 $383 



NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
ADJUSTED NET INCOME PER DILUTED COMMON SHARE AND
NET INCOME COMPARISON
(Unaudited)


RESIDEO TECHNOLOGIES, INC.

Three Months EndedSix Months Ended
(in millions, except per share data)
June 29, 2024July 1, 2023June 29, 2024July 1, 2023
GAAP Net income
$30 $50 $73 $107 
Less: preferred stock dividends
2 — 2 — 
GAAP Net income available to common stockholders28 50 71 107 
Acquisition and integration costs34 — 34 — 
Stock-based compensation expense15 13 29 25 
Intangible asset amortization13 10 22 19 
Reimbursement Agreement accrual increase, non-cash component (1)
12 9 20 15 
Other (2)
12 (3)17 (5)
Tax effect of applicable non-GAAP adjustments (3)
(22)(7)(31)(14)
Non-GAAP Adjusted net income available to common stockholders
$92 $72 $162 $147 
 Three Months EndedSix Months Ended
June 29, 2024 July 1, 2023June 29, 2024July 1, 2023
GAAP Net income per diluted common share$0.19 $0.34 $0.48 $0.72 
Acquisition and integration costs0.23 — 0.23 — 
Stock-based compensation expense0.10 0.09 0.20 0.17 
Intangible asset amortization0.09 0.06 0.15 0.13 
Reimbursement Agreement accrual increase, non-cash component (1)
0.08 0.06 0.14 0.10 
Other (2)
0.08 (0.02)0.11 (0.03)
Tax effect of applicable non-GAAP adjustments (3)
(0.15)(0.05)(0.22)(0.10)
Non-GAAP Adjusted net income per diluted common share$0.62 $0.48 $1.09 $0.99 
(1)Refer to the Unaudited Consolidated Statements of Operations herein.

(2)Other includes restructuring expenses, impairment charges, extinguishment costs, loss on sale of assets, Tax Matters Agreement gain, foreign exchange transaction loss (income), and litigation settlements.

(3)We calculated the tax effect of non-GAAP adjustments by applying a flat statutory tax rate of 25% for the three months ended June 29, 2024 and July 1, 2023.





NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(Unaudited)


RESIDEO TECHNOLOGIES, INC.

 Three Months Ended Six Months Ended
(in millions)
June 29, 2024July 1, 2023June 29, 2024July 1, 2023
Net revenue$1,589 $1,602 $3,075 $3,151 
GAAP Net income
$30 $50 $73 $107 
GAAP Net income as a % of net revenue
1.9 %3.1 %2.4 %3.4 %
Provision for income taxes
29 44 59 68 
GAAP Income before taxes59 94 132 175 
Acquisition and integration costs
34 — 34 — 
Depreciation and amortization28 25 52 49 
Stock-based compensation expense15 13 29 25 
Interest expense, net15 17 28 34 
Reimbursement Agreement accrual increase, non-cash component (1)
12 9 20 15 
Other (2)
12 (3)17 (5)
Non-GAAP Adjusted EBITDA$175 $155 $312 $293 
Non-GAAP Adjusted EBITDA as a % of net revenue11.0 %9.7 %10.1 %9.3 %

(1)Refer to the Unaudited Consolidated Statements of Operations herein.

(2)Other includes restructuring expenses, impairment charges, extinguishment costs, loss on sale of assets, Tax Matters Agreement gain, foreign exchange transaction loss (income), and litigation settlements.



NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(Unaudited)


PRODUCTS AND SOLUTIONS SEGMENT

 Three Months Ended Six Months Ended
(in millions)
June 29, 2024July 1, 2023June 29, 2024July 1, 2023
Net revenue$630 $677 $1,250 $1,335 
GAAP Income from operations$130 $115 $242 $220 
GAAP Income from operations as a % of net revenue
20.6 %17.0 %19.4 %16.5 %
Stock-based compensation expense4 5 10 9 
Other (1)
4 — 9 2 
Non-GAAP Adjusted Income from Operations
$138 $120 $261 $231 
Depreciation and amortization
18 17 35 34 
Non-GAAP Adjusted EBITDA$156 $137 $296 $265 
Non-GAAP Adjusted EBITDA as a % of net revenue24.8 %20.2 %23.7 %19.9 %

(1) Other includes restructuring expenses and litigation settlements.


ADI GLOBAL DISTRIBUTION SEGMENT

 Three Months Ended Six Months Ended
(in millions)
June 29, 2024July 1, 2023June 29, 2024July 1, 2023
Net revenue$959 $925 $1,825 $1,816 
GAAP Income from operations$62 $71 $111 $135 
GAAP Income from operations as a % of net revenue
6.5 %7.7 %6.1 %7.4 %
Stock-based compensation expense3 1 5 3 
Acquisition and integration costs4 — 4 — 
Other (1)
— 2 2 2 
Non-GAAP Adjusted Income from Operations
$69 $74 $122 $140 
Depreciation and amortization8 5 13 9 
Non-GAAP Adjusted EBITDA
$77 $79 $135 $149 
Non-GAAP Adjusted EBITDA as a % of net revenue8.0 %8.5 %7.4 %8.2 %

(1) Other includes restructuring expenses.


v3.24.2.u1
Cover
Aug. 07, 2024
Cover [Abstract]  
Document Type 8-K
Entity Registrant Name RESIDEO TECHNOLOGIES, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-38635
Entity Tax Identification Number 82-5318796
Entity Address, Address Line One 16100 N. 71st Street
Entity Address, Address Line Two Suite 550
Entity Address, City or Town Scottsdale
Entity Address, State or Province AZ
Entity Address, Postal Zip Code 85254
City Area Code 480
Local Phone Number 573-5340
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.001 per share
Trading Symbol REZI
Security Exchange Name NYSE
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001740332
Document Period End Date Aug. 07, 2024
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