Resideo Technologies, Inc.

Ladies and gentlemen, at this time, I'd like to welcome everyone to the Residual Technologies Fourth Quarter 2020 Earnings Conference. Today's call is being recorded. All participants will be in eminence-only mode until the formal question and answer portion of the call. It is now my pleasure to introduce Mr. Jason Willey, Senior Director of Investor Relations. Mr. Willey, you may now begin, sir.

Good morning, everyone, and thank you for joining us for Residio's fourth quarter and full year 2020 earnings conference call. On today's call will be Jake Geldmacher, Residio's chief executive officer, and Tony Conzo, our chief financial officer. A copy of our earnings release and related presentation materials are available on the investor relations page of our website at investors.residio.com. We would like to remind you that this morning's presentation contains They constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in residuous filings with the Securities and Exchange Commission. The company assumes no obligation to update any forward-looking statements. Additionally, during our call today, we may refer to certain non-GAAP financial information. A reconciliation of our GAAP to non-GAAP results is included in the company's earnings press release and accompanying presentation, both of which can be found on the investor relations section of our website. We identified the principal risks and uncertainties that affect our performance in our annual report on Form 10-K and other SEC filings. I would also like to remind everyone that we will host a virtual investor day on the morning of Thursday, March 11th. Information regarding the event is available on our investor relations website. With that, I will now turn the call over to Jay.

Thank you, Jason, and good morning, everyone. We close 2020 with a strong Q4, delivering better than expected revenue and profitability and making significant progress on our transformation efforts. Demand in our residential markets remained robust and the ADI team again delivered impressive growth in the face of mixed market conditions in our commercial categories. Our strong finish to 2020 enabled us to achieve modest revenue growth for the full year despite the unprecedented COVID-19 related challenges we and the global economy faced during the year. While we remain in the early stages of our transformation efforts, Initial progress contributed to the margin expansion we delivered in the second half of 2020. This profitability improvement combined with an increased focus on cash management generated operating cash flow of $244 million in 2020, up from $23 million in 2019. Improving cash generation is one element of the significant progress we have made in solidifying our balance sheet and enhancing our financial flexibility. In late 2020, we completed a follow-on equity offering, raising $279 million. And after our debt refinancing in early February, we have no significant maturities before 2026. We are well positioned to make long-term value-enhancing investments in both our businesses and augment these organic initiatives with inorganic opportunities. Following a challenging first half of the year, we saw meaningful improvement in end-market demand beginning in the early summer. In the second half of 2020, we delivered strong year-over-year top-line growth in both segments and significant margin expansion at products and solutions. Investments in our operations and strong execution from our supply chain organization positioned us to deliver for customers as demand accelerated. As we enter 2021, we see a number of positive structural trends across the markets we serve. People continue to spend more time in their homes and are directing their attention and investment to renovation and repair projects. Security has risen in prominence in the minds of many home and business owners. Trends in residential new construction also remain favorable. Our broad portfolio of product solutions, unmatched relationships with the pro channel, and distribution reach across home and commercial security markets positions us to capitalize on these positive market dynamics, which we believe have durability. Since I joined Residio in May, I have focused on accelerating our transformation efforts and building a world-class leadership team. Within products and solutions, we reorganized the breakdown silos that existed in the old line of business and engineering structure. We have brought the customer back front and center in our ensuring feedback happens across product management, marketing, and engineering. We have reprioritized customer service. with that organization now reporting directly into Phil Theodore, President of Products and Solutions. We have taken several steps towards reinvigorating innovation and technology development across the organization, beginning with bringing Jeff Frank on board. This continues with the recent alignment of resources to create a software and engineering organization optimized to deliver services through a common platform. Across the board, these efforts position the organization to move quicker to address customer needs and accelerate new product and market development. While many actions are only a few months old, I'm encouraged by the early results, the new ways the organization is interacting, and the exciting opportunities that have already arisen. Combined with steps that were taken throughout 2020, To reduce our cost base and refocus resources, we are well positioned to pursue growth while focusing on scalable, efficient business processes. With that, I will turn the call over to Tony to discuss our fourth quarter and 2020 financial performance in more detail.