false000174033200017403322023-11-012023-11-01

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): November 1, 2023
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 November 1, 2023, Resideo Technologies, Inc. (the “Company”) issued a press release announcing its third quarter 2023 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 9.01Financial 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: November 1, 2023
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 Third Quarter 2023 Financial Results

Sharpened focus on portfolio optimization with sale of Genesis Cable and purchase of Sfty, a Norwegian provider of life safety monitoring technology

Expanded partnerships with leading national insurance providers, USAA and Nationwide

Identified and executed on further cost cutting initiatives

Repurchased 1.8 million shares for $30 million as part of $150 million repurchase program

SCOTTSDALE, Ariz., November 1, 2023 – Resideo Technologies, Inc. (NYSE: REZI), a leading global manufacturer and developer of technology-driven products that provide critical home comfort, energy management, and safety and security solutions and a leading wholesale distributor of low-voltage security, life safety, audio visual, data com, and other product categories, today announced financial results for the third quarter ended September 30, 2023.
Third Quarter Financial Highlights
Net revenue of $1.55 billion compared to $1.62 billion in the third quarter 2022
Income from operations of $109 million, including restructuring charges of $38 million, compared to $155 million in the third quarter 2022
Fully diluted GAAP EPS of $0.14 and non-GAAP EPS of $0.41 compared to GAAP EPS of $0.42 and non-GAAP EPS of $0.48 in the third quarter 2022
Cash provided by operating activities of $60 million, up from $37 million in the third quarter 2022
Management Remarks
“We experienced more stable end market conditions and order activity within Products and Solutions in the third quarter, driving revenue and profitability, excluding restructuring, above the midpoint of our outlook,” commented Jay Geldmacher, Resideo’s President and CEO. “While volumes remain a headwind, we again drove year-over-year improvement in Products and Solutions gross margin through a focus on input cost reductions and benefits from labor cost management.”
“We executed on a number of important strategic initiatives during the quarter, including reaching an agreement to sell our non-strategic Genesis Cable business at an attractive multiple, actioning additional structural cost reductions across the organization, deepening our relationship within the insurance channel, and opening our new Dallas, TX distribution super center supporting ADI. We continue to actively work on opportunities to optimize our portfolio and operational footprint, which in conjunction with the restructuring undertaken over the past 12 months creates significant opportunity for future profitability expansion. Despite a challenging market environment, I am confident that we are taking the necessary steps to position the business for profitable growth and we remain focused on executing against our strategic priorities.”



Products and Solutions Third Quarter 2023 Highlights
Net revenue of $654 million, down 7% compared to the third quarter 2022
Gross margin of 38.7%, up 250 basis points compared to the third quarter 2022
Operating profit of $107 million, including $25 million of restructuring costs, compared to $124 million in the third quarter 2022
Completed the sale of Genesis Cable business for $87.5 million with transaction closing on October 16
Products and Solutions delivered net revenue of $654 million in the third quarter 2023, down 7% compared to third quarter 2022. Volume declines in the quarter were partially offset by price realization. First Alert smoke and CO detector product sales again performed well, driven by continued expansion in the home builder channel. Inventory remains extended in the HVAC distribution channel and overall end customer demand is being negatively impacted by slower existing home turnover and reduced new home construction.
Gross margin for the quarter was 38.7%, compared to 36.2% in the third quarter 2022. Gross margin expansion reflects improving material costs, reduced freight, and lower direct labor spending, partially offset by lower volumes. Operating profit for the quarter was $107 million or 16.4% of revenue, down from 17.5% in third quarter 2022. Selling, general and administrative and research and development expenses were down $8 million and down $2 million compared to third quarter 2022 as cost savings were partially offset by inflation and targeted investment. Included in the quarter was $25 million in restructuring costs.

During the quarter the company announced an agreement for the sale of Genesis Cable for $87.5 million. The sale, which closed on October 16, 2023, is part of ongoing work to optimize the Products and Solutions product portfolio through identifying and actioning non-core assets to sharpen the focus on core long-term strategic initiatives. Also completed during the third quarter was the purchase of Sfty, a small Norwegian-based provider of life safety monitoring technology for multi-family buildings.
ADI Global Distribution Third Quarter 2023 Highlights
Net revenue of $900 million, down 1% compared to the third quarter 2022
Gross margin of 18.3%, down 100 basis points compared to the third quarter 2022
Operating profit of $60 million, including $10 million of restructuring costs, compared to $78 million in the third quarter 2022
Continued expansion of digital initiatives, including 5% growth in e-commerce sales compared to third quarter 2022
ADI third quarter 2023 net revenue of $900 million was down $11 million compared to the third quarter 2022. Sales decline in North America was partially offset by growth in the EMEA region. ADI saw strength in the access control category but continued slower demand within residential security category. ADI’s e-commerce channel grew 5% in the third quarter 2023 compared to the prior year period, representing 19% of total ADI net revenue, as the business continues to invest in the expansion of digital capabilities. Overall touchless revenue was 38% of ADI’s total revenue in the quarter.
Gross margin of 18.3% in the third quarter 2023 was down 100 basis points compared to third quarter 2022. The reduction was driven by reduced inflationary pricing benefits that drove higher margin in the comparable period and lower product line margin. Selling, general and administrative expenses were $93 million in third quarter 2023, down 3% compared to 2022, reflecting increased focus on cost management. Investment is continuing to support digital initiatives and system enhancements. Operating profit of $60 million for third quarter 2023 was down 23% from $78 million in third quarter 2022 and included a $10 million restructuring charge.
During the quarter, ADI opened its Dallas super center, a cutting-edge facility designed to optimize supply chain operations, enhance customer service, and provide capacity for continued growth. The new super center represents a significant investment in ADI’s supply chain operations and reinforces the businesses’ commitment to serving customers.
Third Quarter 2023 Financial Performance
Consolidated net revenue was $1.55 billion in third quarter 2023 compared with the prior year third quarter revenue of $1.62 billion. Gross profit margin was 26.8%, up 20 basis points compared to 26.6% in the prior year third quarter. Operating profit of $109 million in third quarter 2023 compared to the prior year quarter’s operating profit of $155 million was down 30%, primarily driven by $38 million in restructuring costs. Total Corporate costs were $58 million, up $11



million from the prior year quarter, driven by $3 million of restructuring costs, timing of expected costs, and an $8 million gain in the prior year quarter. Net income for third quarter 2023 was $21 million, or $0.14 per diluted common share, compared with $63 million, or $0.42 per diluted common share, in the third quarter 2022. Non-GAAP EPS was $0.41 compared with $0.48 in the third quarter last year.
Cash Flow and Liquidity
Net cash provided by operating activities of $60 million in third quarter 2023 compared to $37 million in the third quarter 2022. The increase was driven by working capital improvements compared to the prior year period. At September 30, 2023, Resideo had cash and cash equivalents of $368 million and total outstanding debt of $1.41 billion.
Share Repurchase
As part of the $150 million share repurchase program authorized in early August 2023, Resideo repurchased 1.8 million shares during the third quarter 2023 at a total cost of $30 million.
Outlook
The following table summarizes the Company’s current fourth quarter 2023 and updated full year 2023 outlook. This outlook reflects the sale of Genesis in mid-October, which reduces our previously communicated 2023 outlook by approximately $25 million of revenue and $4 million of operating income.
($ in millions, except per share data)Q4 20232023
Net revenue$1,495 - $1,545$6,200 - $6,250
Gross profit margin26.0% - 27.0%26.6% - 27.2%
Income from operations$135 - $155$535 - $555
GAAP Earnings per share $0.43 - $0.53$1.30 - $1.41
Non-GAAP Earnings per share$0.29 - $0.39$1.39 - $1.50
Non-GAAP Adjusted EBITDA$126 - $146$542 - $562
Conference Call and Webcast Details
Resideo will hold a conference call with investors on November 1, 2023, 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 Third Quarter 2023 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 low-voltage security and life safety products for commercial and residential markets and serve a variety of adjacent product categories including audio visual, data com, wire and cable, 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 fourth quarter 2023 and full year 2023, (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 disruption to our business and global economy caused by the lingering effects of COVID-19, (4) 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, (5) 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), (6) the Company’s announced 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 (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, 2022 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 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 U.S. GAAP.

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. 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.




Table 1: SUMMARY OF FINANCIAL RESULTS (UNAUDITED)

 Q3 2023YTD 2023
(in millions)Products and Solutions ADI Global Distribution Corporate Total CompanyProducts and SolutionsADI Global DistributionCorporateTotal Company
Net revenue$654  $900  $—  $1,554 $1,989 $2,716 $— $4,705 
Cost of goods sold401  735   1,137 1,227 2,202 3,432 
Gross profit (loss)253 165 (1)417 762 514 (3)1,273 
Research and development expenses27 —  28 82 — 84 
Selling, general and administrative expenses88 93 52  233 284 283 152 719 
Intangible asset amortization 17 28 
Restructuring and impairment expenses25 10 38 27 12 42 
Income (loss) from operations$107 $60 $(58)$109 $352 $211 $(163)$400 
    

 Q3 2022YTD 2022
(in millions)Products and SolutionsADI Global DistributionCorporateTotal CompanyProducts and SolutionsADI Global DistributionCorporateTotal Company
Net revenue$707  $911  $—  $1,618 $2,090 $2,720 $— $4,810 
Cost of goods sold451  735   1,188 1,280 2,190 3,475 
Gross profit (loss)256 176 (2)430 810 530 (5)1,335 
Research and development expenses29  —  —  29 80 — 81 
Selling, general and administrative expenses96  96  44  236 283 281 152 716 
Intangible asset amortization   10 16 25 
Restructuring and impairment expenses— — — — — — — 
Income (loss) from operations$124 $78 $(47)$155 $431 $244 $(162)$513 

 Q3 2023 % change compared with prior periodYTD 2023 % change compared with prior period
 Products and SolutionsADI Global DistributionCorporateTotal CompanyProducts and SolutionsADI Global DistributionCorporateTotal Company
Net revenue(7)%(1)%N/A(4)%(5)%— %N/A(2)%
Cost of goods sold(11)%— %(50)%(4)%(4)%%(40)%(1)%
Gross profit (loss)(1)%(6)%(50)%(3)%(6)%(3)%(40)%(5)%
Research and development expenses(7)%N/AN/A(3)%%N/A100 %%
Selling, general and administrative expenses(8)%(3)%18 %(1)%— %%— %— %
Intangible asset amortization(14)%— %— %(10)%%60 %(25)%12 %
Restructuring and impairment expensesN/AN/AN/AN/AN/AN/AN/AN/A
Income (loss) from operations(14)%(23)%23 %(30)%(18)%(14)%%(22)%



Table 2: CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
 Three Months Ended Nine Months Ended
(in millions, except per share data)September 30, 2023October 1, 2022 September 30, 2023October 1, 2022
Net revenue$1,554 $1,618 $4,705 $4,810 
Cost of goods sold1,137 1,188 3,432 3,475 
Gross profit417 430 1,273 1,335 
Operating expenses:
Research and development expenses28 29 84 81 
Selling, general and administrative expenses233 236 719 716 
Intangible asset amortization10 28 25 
Restructuring and impairment expenses38 — 42 — 
Total operating expenses308 275 873 822 
Income from operations109 155 400 513 
Reimbursement Agreement expense (1)
43 30 128 116 
Other expenses, net13 $14 10 10 
Interest expense, net16 15 50 39 
Income before taxes37 96 212 348 
Provision for income taxes16 33 84 104 
Net income $21 $63 $128 $244 
Earnings per share:
Basic$0.14 $0.43 $0.87 $1.68 
Diluted$0.14 $0.42 $0.86 $1.64 
Weighted average number of shares outstanding: 
Basic147146 147145
Diluted148149 149149
(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 EndedNine Months Ended
(in millions)September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Accrual for Reimbursement Agreement liabilities deemed probable and reasonably estimable$43 $30 $128 $116 
Cash payments made to Honeywell(35)(35)(105)(105)
Accrual increase, non-cash component in period$$(5)$23 $11 
Refer to Note 16. Commitments and Contingencies in our Form 10Q for the period ended September 30, 2023 for further discussion.




Table 3: CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions, except par value)September 30, 2023December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents$368 $326 
Accounts receivable, net988 1,002 
Inventories, net970 975 
Other current assets289 199 
Total current assets2,615 2,502 
Property, plant and equipment, net380 366 
Goodwill2,687 2,724 
Intangible assets, net456 475 
Other assets321 320 
Total assets$6,459 $6,387 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$863 $894 
Current portion of long-term debt12 12 
Accrued liabilities592 640 
Total current liabilities1,467 1,546 
Long-term debt1,397 1,404 
Obligations payable under Indemnification Agreements599 580 
Other liabilities351 328 
Total liabilities3,814 3,858 
Stockholders’ equity
Common stock, $0.001 par value: 700 shares authorized, 151 and 146 shares issued and outstanding at September 30, 2023, respectively, and 148 and 146 shares issued and outstanding at December 31, 2022, respectively — — 
Additional paid-in capital2,219 2,176 
Retained earnings728 600 
Accumulated other comprehensive loss, net(221)(212)
Treasury stock at cost(81)(35)
Total stockholders’ equity2,645 2,529 
Total liabilities and stockholders’ equity$6,459 $6,387 



Table 4: CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 Three Months EndedNine Months Ended
(in millions)September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Cash Flows From Operating Activities:
Net income$21 $63 $128 $244 
Adjustments to reconcile net income to net cash in operating activities:
Depreciation and amortization22 24 71 69 
Restructuring and impairment expenses38 — 42 — 
Stock-based compensation expense11 14 36 36 
Other, net— 13 
Changes in assets and liabilities, net of acquired companies:
Accounts receivable, net26 (9)(142)
Inventories, net11 (2)(4)(129)
Other current assets(8)(17)(5)(38)
Accounts payable(58)(49)(14)
Accrued liabilities(20)22 (114)(25)
Other, net17 (34)44 (15)
Net cash provided by operating activities60 37 177 13 
Cash Flows From Investing Activities:
Capital expenditures(25)(10)(74)(34)
Acquisitions, net of cash acquired(10)(27)(16)(660)
Other investing activities, net— — — (13)
Net cash used in investing activities(35)(37)(90)(707)
Cash Flows From Financing Activities:
Common stock repurchases(28)— (28)— 
Proceeds from issuance of A&R Term B Facility— — — 200 
Repayments of long-term debt(3)(3)(9)(9)
Other financing activities, net(10)(9)
Net cash (used in) provided by financing activities(29)(1)(47)182 
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash(9)(12)
Net increase (decrease) in cash, cash equivalents and restricted cash(13)— 41 (524)
Cash, cash equivalents and restricted cash at beginning of period383 255 329 779 
Cash, cash equivalents and restricted cash at end of period$370 $255 $370 $255 




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


RESIDEO TECHNOLOGIES, INC.

Three Months EndedNine Months Ended
(in millions, except per share data)
September 30, 2023October 1, 2022September 30, 2023October 1, 2022
GAAP Net income applicable to common shares$21 $63 $128 $244 
Restructuring and impairment expenses38 — 42 — 
Acquisition and divestiture related costs— 10 
Divestiture loss— — 
Litigation settlement, net of insurance proceeds— 14 — 14 
Pension settlement loss— — 
Tax Matters Agreement gain— (8)(4)(8)
Foreign exchange transaction loss (income)10 — (1)
Tax effect of applicable non-GAAP adjustments (1)
(13)(3)(12)(5)
Non-GAAP Adjusted net income applicable to common shares$60 $71 $163 $259 
 Three Months EndedNine Months Ended
September 30, 2023 October 1, 2022September 30, 2023October 1, 2022
GAAP Net income per diluted common share$0.14 $0.42 $0.86 $1.64 
Restructuring and impairment expenses0.26 — 0.28 — 
Acquisition and divestiture related costs0.01 — 0.01 0.07 
Divestiture loss— 0.03 — 0.03 
Litigation settlement, net of insurance proceeds— 0.10 — 0.09 
Pension settlement loss0.02 — 0.04 — 
Tax Matters Agreement gain— (0.05)(0.03)(0.05)
Foreign exchange transaction loss (income)0.07 — 0.01 (0.01)
Tax effect of applicable non-GAAP adjustments (1)
(0.09)(0.02)(0.08)(0.03)
Non-GAAP Adjusted net income per diluted common share$0.41 $0.48 $1.09 $1.74 
    
(1)We calculated the tax effect of non-GAAP adjustments by applying a flat statutory tax rate of 25% for the three and nine months ended September 30, 2023 and October 1, 2022.



NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(Unaudited)


RESIDEO TECHNOLOGIES, INC.

 Three Months Ended Nine Months Ended
(in millions)September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Net revenue$1,554 $1,618 $4,705 $4,810 
GAAP Net income applicable to common shares$21 $63 $128 $244 
Provision for income taxes16 33 84 104 
GAAP Income before taxes37 96 212 348 
Depreciation and amortization22 24 71 69 
Interest expense, net16 15 50 39 
Stock-based compensation expense11 14 36 36 
Pension settlement loss— — 
Restructuring and impairment expenses38 — 42 — 
Acquisition and divestiture related costs— 10 
Divestiture loss— — 
Litigation settlement, net of insurance proceeds— 14 — 14 
Tax Matters Agreement gain— (8)(4)(8)
Foreign exchange transaction loss (income)10 — (1)
Non-GAAP Adjusted EBITDA$138 $160 $416 $512 
Non-GAAP Adjusted EBITDA as a % of net revenue8.9 %9.9 %8.8 %10.6 %




NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(Unaudited)


PRODUCTS AND SOLUTIONS SEGMENT

 Three Months Ended Nine Months Ended
(in millions)September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Net revenue$654 $707 $1,989 $2,090 
GAAP Income from operations$107 $124 $352 $431 
Stock-based compensation expense13 13 
Restructuring and impairment expenses25 — 27 — 
Acquisition and divestiture related costs— — 
Non-GAAP Adjusted Income from Operations$137 $129 $393 $444 
Depreciation and amortization16 17 51 50 
Non-GAAP Adjusted EBITDA$153 $146 $444 $494 
Non-GAAP Adjusted EBITDA as a % of net revenue23.4 %20.7 %22.3 %23.6 %



ADI GLOBAL DISTRIBUTION SEGMENT

 Three Months Ended Nine Months Ended
(in millions)September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Net revenue$900 $911 $2,716 $2,720 
GAAP Income from operations$60 $78 $211 $244 
Stock-based compensation expense
Pension settlement loss— — — — 
Restructuring and impairment expenses10 — 12 — 
Divestiture loss— — 
Non-GAAP Adjusted Income from Operations$71 $85 $227 $255 
Depreciation and amortization13 10 
Non-GAAP Adjusted EBITDA$75 $89 $240 $265 
Non-GAAP Adjusted EBITDA as a % of net revenue8.3 %9.8 %8.8 %9.7 %






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


RESIDEO TECHNOLOGIES, INC.

Q4 2023Fiscal Year 2023
(in millions, except per share data)LowHighLowHigh
GAAP Net income per diluted common share$0.43 $0.53 $1.30 $1.41 
Restructuring and impairment expenses— — 0.28 0.28 
Pension settlement loss (1)
— — 0.04 0.04 
Foreign exchange transaction loss (1)
— — 0.01 0.01 
Acquisition related costs— — 0.01 0.01 
Divestiture gain, net of tax(0.19)(0.19)(0.19)(0.19)
Tax Matters Agreement gain— — (0.03)(0.03)
Tax effect of applicable non-GAAP adjustments (2)
0.05 0.05 (0.03)(0.03)
Non-GAAP Adjusted net income per diluted common share$0.29 $0.39 $1.39 $1.50 

(1)We are unable to estimate the fourth quarter 2023 amounts. The Fiscal Year 2023 amounts represent actual results through the nine months ended September 30, 2023.

(2)We calculated the tax effect of non-GAAP adjustments by applying a flat statutory tax rate of 25% for fourth quarter 2023 and full year 2023.



NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(Unaudited)


RESIDEO TECHNOLOGIES, INC.


Q4 2023Fiscal Year 2023
(in millions)LowHighLowHigh
Net revenue$1,495 $1,545 $6,200 $6,250 
GAAP Net income applicable to common shares$63 $79 $194 $210 
Provision for income taxes27 31 108 112 
GAAP Income before taxes90 110 302 322 
Depreciation and amortization27 27 98 98 
Interest expense, net19 19 69 69 
Stock-based compensation expense14 14 50 50 
Restructuring and impairment expenses— — 42 42 
Pension settlement loss (1)
— — 
Foreign exchange transaction loss (1)
— — 
Acquisition related costs— — 
Divestiture gain(24)(24)(24)(24)
Tax Matters Agreement gain— — (4)(4)
Non-GAAP Adjusted EBITDA$126 $146 $542 $562 
Non-GAAP Adjusted EBITDA as a % of net revenue8.4 %9.4 %8.7 %9.0 %

(1)We are unable to estimate the fourth quarter 2023 amounts. The Fiscal Year 2023 amounts represent actual results through the nine months ended September 30, 2023.

v3.23.3
Cover
Nov. 01, 2023
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 EZI
Security Exchange Name NYSE
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001740332
Document Period End Date Nov. 01, 2023

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