Share Repurchase Program Reflects Company's
Strong Cash Flow Generation, Healthy Balance Sheet and Commitment
to Delivering Shareholder Value
SCOTTSDALE, Ariz., Aug. 3, 2023
/PRNewswire/ -- Resideo Technologies, Inc. (NYSE: REZI), a leading
global manufacturer and developer of technology-driven products and
components 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 that its
Board of Directors has approved a stock repurchase program,
pursuant to which the Company is authorized to purchase up
to $150 million of its common stock over an unlimited
time period.
"We are pleased to announce the approval of a share repurchase
program by our Board," stated Jay
Geldmacher, Resideo's President and CEO. "We continue to see
substantial opportunity for value creation at Resideo over the
long-term. This includes the unique position we have with our
professional channel and within the home. And the substantial
opportunity to drive margin and profitability expansion through
executing on cost and portfolio optimization opportunities. We do
not believe our current share price reflects the quality of the
business, progress made transforming the company over the past
three years, or the significant additional opportunities that we
continue to execute towards. We plan to execute the share
repurchase program, taking into consideration market conditions,
our business outlook, capital position, and liquidity, all while
maintaining our strong balance sheet."
Under the share repurchase program, the Company may repurchase
up to $150 million of outstanding
common stock over an unlimited time period. This authorization
represents approximately 6% of Resideo's market capitalization
based on the current share price.
During the pendency of the share repurchase program, the Company
may repurchase shares from time to time through various methods,
including in open market transactions, block trades, accelerated
share repurchases, privately negotiated transactions, derivative
transactions or otherwise, certain of which may be made pursuant to
a trading plan meeting the requirements of Rule 10b5-1 under the
Securities Exchange Act of 1934, as amended, in compliance with
applicable state and federal securities laws. The timing, as well
as the number and value of shares repurchased under the program,
will be determined by the Company at its discretion and will depend
on a variety of factors, including our assessment of the intrinsic
value of the Company's common stock, the market price of the
Company's common stock, general market and economic conditions,
available liquidity, compliance with the Company's debt and other
agreements, applicable legal requirements, the nature of other
investment opportunities available to the Company, and other
considerations. The Company is not obligated to purchase any shares
under the repurchase program, and the program may be suspended,
modified, or discontinued at any time without prior notice. The
Company expects to fund the repurchases by using cash on hand and
expected free cash flow to be generated in the future.
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:
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Investors:
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Media:
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Jason
Willey
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Garrett
Terry
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Vice President,
Investor Relations
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Lead Communications
Specialist
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investorrelations@resideo.com
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garrett.terry@resideo.com
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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 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, (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, successfully integrate the acquired
operations (including successfully driving category growth in
connected offerings), (6) the Company's proposed share repurchase
program, the projected timing, purchase price and number of 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.
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SOURCE Resideo Technologies, Inc.