Resideo Announces Launch of Financial debt Refinancing System and Preliminary Fourth Quarter 2020 Money Outcomes

George T. Taft

AUSTIN, Texas, Jan. 27, 2021 /PRNewswire/ — Resideo Technologies, Inc. (NYSE: REZI), a top global company of household consolation and safety options, currently declared the business has launched a course of action to refinance its senior secured credit score facilities. The strategic refinancing is supposed to increase economical flexibility, together with by extending the company’s personal debt maturities. In link with the announcement of the start of the credit card debt refinancing method, Resideo is releasing preliminary fourth quarter 2020 financial benefits.

Financial debt Refinancing

Resideo has launched a procedure to refinance its outstanding senior secured term loan A and phrase bank loan B with the web proceeds of a new 7-yr expression mortgage B. The firm also expects to enter into a new 5-yr, $500 million revolving credit history facility. In addition, the company intends to redeem up to $140 million of its excellent senior unsecured notes pursuant to the terms of the fundamental indenture. The aims of the refinancing are to boost the company’s monetary versatility and extend its weighted ordinary personal debt maturity. Resideo’s web financial debt situation at December 31, 2020 was somewhere around $645 million.

“The strategic refinancing is a different proactive action to be certain our funds framework is perfectly positioned to consider advantage of the chances for development and financial investment we see throughout our organizations,” commented Chief Economic Officer Tony Trunzo. “Coupled with our improved economical general performance, sturdy fourth quarter hard cash technology and not too long ago executed fairness presenting, these financial debt refinancing actions will let us to get started 2021 with a more powerful stability sheet and meaningfully amplified money flexibility.”&#13

Terms of the likely refinancing will be disclosed upon the completion of the transaction. The proposed refinancing is topic to industry and other disorders and the acceptance of our Board of Administrators, and there can be no assurance that it will be completed on favorable phrases or at all.

Preliminary Fourth Quarter 2020 Final results

In connection with its start of the refinancing process, Resideo is releasing preliminary fourth quarter 2020 financial success that are over the significant conclude of the previous outlook variety. The organization intends to release full benefits for the fourth quarter and whole 12 months 2020 on Feb. 25, 2021 in advance of the current market open. Dependent on at present out there information and facts, the business estimates the pursuing outcomes for the quarter finished December 31, 2020:

  • Internet revenue of approximately $1.50 billion, up roughly 15% from the fourth quarter 2019
  • Running financial gain of approximately $152 million
  • Modified EBITDA of around $212 million

“We experienced strong need traits in the fourth quarter throughout both equally our Goods & Remedies and ADI World wide Distribution segments,” commented Jay Geldmacher, Resideo’s President and CEO. “Our efficiency in the quarter exceeded our preceding anticipations and reflects resilient market place conditions and highlights the ongoing development in our transformation initiatives. We appear forward to sharing additional particulars when we report our complete benefits in late February.”

The believed financial results explained previously mentioned are preliminary, unaudited and represent the most the latest current information available to Resideo management.  Resideo’s precise outcomes may vary from these approximated economical results, including owing to the completion of its fiscal closing processes, final changes and other developments that may occur among the date of this push release and the time that monetary final results for the fourth quarter of 2020 are finalized, and these kinds of variations may well be substance.&#13

About Resideo

Resideo is a top world wide producer and distributor of technology-pushed solutions and remedies that give comfort, safety, energy performance and regulate to prospects throughout the world. Building on a 130-12 months heritage, Resideo has a existence in extra than 150 million residences, with 15 million devices mounted in residences each individual 12 months. We keep on to provide a lot more than 110,000 professionals by major distributors, which include our ADI International Distribution business, which exports to far more than 100 nations from a lot more than 200 stocking areas about the globe. For extra information and facts about Resideo, you should stop by www.resideo.com.

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Ahead-Seeking Statements&#13

This release is made up of “forward-searching statements.” All statements, other than statements of fact, that tackle activities, occasions or developments that we or our administration intend, be expecting, undertaking, imagine or anticipate will or may perhaps arise in the upcoming are ahead-hunting statements. Whilst we believe forward-looking statements are centered on reasonable assumptions, these types of statements contain recognized and not known pitfalls, uncertainties, and other factors, which may trigger the real success or effectiveness of the Company to be materially various from any potential results or functionality expressed or implied by such ahead-on the lookout statements. These kinds of pitfalls and uncertainties contain, but are not restricted to, (1) our capacity to finish the refinancing of our senior secured credit rating facilities, enter into a new revolving credit history facility, and redeem a portion of our unsecured notes, and irrespective of whether the conditions and disorders of any these transaction will be favorable to Resideo, (2) our true success for the fourth quarter ended December 31, 2020 differing from the approximated economical success incorporated in this push release, such as because of to the completion of our money closing methods, closing changes and other developments that may possibly come up amongst the day of this push launch and the time that financial results for the fourth quarter of 2020 are finalized, and (3) the other hazards explained less than the headings “Possibility Elements” and “Cautionary Statement About Ahead-Seeking Statements” in our Once-a-year Report on Variety 10-K for the year finished December 31, 2019, our Quarterly Report on Sort 10-Q for the quarter ended September 26, 2020 and other periodic filings we make from time to time with the Securities and Exchange Fee (SEC). You are cautioned not to position undue reliance on these ahead-seeking statements. Ahead-wanting statements are not ensures of potential general performance, and real results, developments and business selections may vary from individuals envisaged by our forward-searching statements. Apart from as expected by regulation, we undertake no obligation to update these kinds of statements to reflect functions or conditions arising immediately after the date of this press release, and we warning investors not to location undue reliance on any these types of forward-seeking statements.

Non-GAAP Economic Measures

This push release contains an estimate of Altered EBITDA which is not compliant with usually acknowledged accounting concepts in the United States (GAAP). Adjusted EBITDA is altered for specified goods as reflected in the Firm’s prior earnings releases and may possibly not be directly similar to very similar actions utilized by other providers in our market, as other corporations may possibly outline these kinds of measures in a different way. Administration thinks that, when regarded with each other with claimed amounts, this evaluate is valuable to investors and administration in comprehension our ongoing operations and in analysis of ongoing running developments and provides handy further facts relating to our operations and financial problem. This metric really should be considered in addition to, and not as a substitution for, the most similar GAAP evaluate. We consider Modified EBITDA is a pertinent indicator of working performance. It must be read in link with our economical statements offered in accordance with GAAP.

A reconciliation of Modified EBITDA to the corresponding GAAP evaluate (GAAP web income) is not accessible on a forward-on the lookout foundation without having unreasonable attempts simply because Resideo is now doing work through the accounting near course of action for the quarter ended December 31, 2020 and an estimate of GAAP net earnings is not still available. The organization expects to give GAAP web earnings for the quarter finished December 31, 2020, and the corresponding reconciliation to Modified EBITDA, with its whole benefits announcement, predicted on February 25, 2021. 

Altered EBITDA (Non-GAAP) was beforehand introduced as Adjusted EBITDA excluding Honeywell reimbursement arrangement payments (Non-GAAP). The improve in presentation was made beginning with our initially quarter 2020 results to additional correctly mirror the underlying general performance indicators of the business in Modified EBITDA. The Honeywell reimbursement agreement funds payments are a liquidity measure and will be involved within the hard cash circulation and liquidity discussions. Management believes that this presentation additional plainly provides underlying functions as the amounts connected to the Honeywell reimbursement agreement are recorded in internet cash flow are based on when these types of amounts turn out to be possible and moderately estimable.  &#13

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Source Resideo Systems, Inc.

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