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Dec 31, 2019
Resideo Q4 2019 Earnings Report
Resideo reported a 3% increase in net revenue and an adjusted EBITDA decrease of $34 million year-over-year.
Key Takeaways
Resideo's Q4 2019 results showed a mix of performance with strong growth in ADI Global Distribution offset by challenges in the Products & Solutions business. Consolidated revenue increased by 3%, but adjusted EBITDA declined by 25%. The company is implementing a financial and operational review to drive improved performance.
Net Revenue increased by 3% year-over-year to $1.3 billion.
Adjusted EBITDA was $104 million, a decrease of $34 million year-over-year.
GAAP Net Loss was $9 million, while adjusted Net Income was $48 million.
ADI Global Distribution revenue increased by 10%, driven by growth in key product lines.
Revenue by Segment
Forward Guidance
For full-year 2020, Resideo expects revenue growth of 2-4% and adjusted EBITDA in the range of $420 - $450 million.
Positive Outlook
- Revenue growth of 2-4% is expected.
- Mid-single-digit percentage growth in ADI is anticipated.
- Flat to low-single-digit percentage growth in Products & Solutions is projected.
- Adjusted EBITDA is expected to be in the range of $420 - $450 million.
- Improved performance in Resideo’s base business is expected.
Challenges Ahead
- Guidance is subject to risks and uncertainties.
- Ability to execute on revenue and gross margin opportunities is uncertain.
- Reducing selling, general, and administrative expenses is a challenge.
- Realizing cost savings through structural efficiencies and working capital management is uncertain.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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