Page 1

Resideo Announces Third Quarter 2021 Financial Results November 4 , 2021 AUSTIN , Texas , Nov. 4 , 2021 / PRNewswire / -- Resideo Technologies , Inc. ( NYSE : REZI ) , a leading global provider of home comfort and security solutions and distributor of commercial and residential security and audio - visual products , today announced financial and operating results for the third quarter ended October 2 , 2021 . resideo Third Quarter 2021 Highlights • Net revenue of $ 1.5 billion , up 10 % from $ 1.4 billion in the third quarter 2020 • Gross profit margin of 27.8 % , up 60 basis points compared to gross profit margin of 27.2 % in the prior year comparable period Operating profit of $ 167 million , or 11.2 % of revenue , an increase of $ 36 million from $ 131 million , or 9.6 % of revenue , in the third quarter 2020 • Cash provided by operating activities of $ 104 million compared to $ 21 million in the prior year comparable period Third Quarter 2021 Performance Consolidated revenue of $ 1.5 billion in the third quarter 2021 increased 10 % compared with $ 1.4 billion in the third quarter 2020 . Products & Solutions revenue was $ 631 million , an increase of 10 % compared with revenue of $ 572 million in the prior year comparable period primarily due to volume and price increases . ADI Global Distribution revenue was $ 865 million , an increase of 9 % compared with revenue of $ 790 million in the prior year comparable period reflecting growth in North America from volume and price increases and $ 16 million in revenue contribution from recent acquisitions . Gross profit margin for the third quarter 2021 was 27.8 % , up 60 basis points compared to 27.2 % in the third quarter 2020. Products & Solutions gross profit margin of 40.9 % decreased 140 basis points from 42.3 % in the third quarter 2020. The decrease was primarily attributable to increased material and freight costs , partially offset by price increases and customer rebate favorability . ADI Global Distribution gross profit margin was 18.5 % , an increase of 200 basis points compared to the prior year comparable period gross profit margin of 16.5 % . The increase was a result of improved product line margin primarily due to pricing initiatives . Resideo's operating profit of $ 167 million in the third quarter 2021 was up $ 36 million compared to third quarter 2020 operating profit of $ 131 million . Operating profit margin expanded to 11.2 % from 9.6 % in the prior year comparable period . Products & Solutions operating profit of $ 157 million in the third quarter 2021 increased from $ 141 million in the third quarter 2020. The increase reflects solid cost management and reduced restructuring costs . ADI Global Distribution operating profit increased to $ 73 million in the third quarter 2021 from $ 56 million in the third quarter 2020 , reflecting improved gross margin , partially offset by increased investment activity . Corporate costs were $ 63 million in the third quarter 2021 , down $ 3 million from $ 66 million in the prior year comparable period primarily due to reduced spin and restructuring costs partially offset by a $ 9 million impairment charge related to the Austin , Texas office relocation . Net income for the third quarter 2021 was $ 68 million , or $ 0.46 per diluted common share , compared with net income of $ 75 million , or $ 0.60 per diluted common share , in the third quarter 2020 . Cash Flow and Liquidity . The company reported net cash provided by operating activities of $ 104 million for the third quarter 2021 , an increase of $ 83 million from the prior year comparable period . The higher operating cash generation was primarily the result of better operating profitability