to stating and morning, by quarter everyone, today’s for like guidance. and third joining I’d you in revised good thank And Michael. Thanks, that start results I’m our on call. clearly disappointed us
not in business another business Products ADI results meet and expectations. did delivered our our While our quarter, Solutions strong
channel through both gross lower rebates adversely by and factory security and and Thermal our you write-downs lower due and in sales inventory productivity mix, businesses, on detail As contract. Products were in high this impacted pressure product Solutions a Solutions and Comfort from Residential to volumes pre-spin margin results we’ll call, walk
we and and structure, and review the actions be address our overseen financial will that have directors. our are those third to to quarter independent we to We cost items. operational guidance, the impacted opportunities factors specific comprehensive identified our Furthermore, which simplify taking rightsize drive have performance aggressive a by and company launched
of discuss this at call. our the We end will
agenda move let’s X. the to on Slide So
overall we’ll you the business our changed quarter, since for address guidance. and the update First, CFO, Bob full on will year results what our on we’ll the provide go results into Ryder, our and discuss deeper then our segments. two specifics for financials QX has
from an which our provide is review, we’ll underway. Lastly, overview financial what can expect and you well operations of
Slide to X. Turning
came For constant up X% GAAP basis. target. a in the in ADI and non-GAAP year-over-year a currency X% third revenue quarter, was pleased that on our billion, growth were at Global Distribution We basis on $X.XX on
was and Solutions Products driven Comfort by As business below primarily in and mentioned RTS. performance our earlier, expectations,
EBITDA after EPS was excluding Honeywell million payment the in GAAP reimbursement $X.XX the and EPS million, came $XXX Adjusted per Adjusted share, reimbursement and share. $X.XX at payment. per was $XX
great growth and pressured and ADI while Products X to Turning segment Slide in Revenue Solutions. was our performance. in
currency the business, was or increased Distribution constant segment up Global year-over-year. and For business EBITDA X% on XX% ADI a basis, X% adjusted
wins, to access categories. and North and driven AV EMEA in Americas, segments. American continue Pro growth strong We CCTV, growth high-value Pacific in fire, solid Asia by see was intrusion, project the growth
EMEA continues FX to despite grow headwinds.
the by UK, and Our France EMEA growth Eastern Europe. was driven
XXXX digital in was our transformation. ADI’s of investments for One
a as experience well. seamless translate and Overall, to locations online a great this growth creating ADI. in and are We stocking for quarter seeing we’re professionals globally, investment for
channel on lower of Turning write-downs attributable constant decreased a mix, to rebates. Segment a Products of and product adjusted and to to P&S X%, Comfort business. down or number within basis, EBITDA and and a revenue higher combination reported our Solutions RTS. in due decline inventory factors X% currency customer revenues, a negative
Our rollout volume in platform meet quality of the continues growth, the next-gen expectations security continues Security and to solid and our business market. show to
Our in Water business growth has shown improvement and is with strength showing America. North real double-digit
our summer. in OEM business, the the Water attributed seen orders continue slowdown solid – efficiency which this Controller heater in which XXXX our combustion of our lower energy sales experienced as a hot with We’ve expect as X.X to by RTS, the water connected an slowed Whole well regulation than also has from was QX. became Home orders X.X launch effective This in by in Buoy this channel. growth of more number to to OEM million XXXX. grown in is water customers lower We customers, impacted slowdown in that million
to compete higher-end the furnace few sales I’ve stock the furnaces. lower-end the XX the detail. on fan our The furnace ratings so we electronics, lower-cost preliminary but In this of stands not received gas-fired air and We valves, the here’s the combustion depleted regulatory for change, grandfathered enhanced during change. requires October lower-end release, was a the switches. once will gas has in which in that in regulation sold channel controls displaced residential equipment and questions effective pressure the lower-cost built recover distribution inventories efficiency of equipment, do distribution since product, expect integrated more date of advance category OEMs including
no estimate channel was either measure of accurately adopted While levels we XXXX, in to nor the enable OEMs of these to had the changes. we inventory into us the knew visibility being that July the distribution
to volumes data, thermostats quarter new lower generation OEM pre-spin non-connected business more to platform mid-level our became of transition the thermostats. poor in We’re XXXX we cutover transition had working new These third to complete. past. two-year and of effects T-Series to a adoption not this the which partners from T-Series has with thermostats the was in sell-through to gain access prior the as experienced line the pronounced visibility the non-connected in the impacted Comfort, in distribution sales after In
better to in channel position partners with we the We our T-Series, are expect improvement and actively working XXXX.
winter to peak I that we business. in business specific mentioned are the of my headwinds XXXX in factors Clearly, identified guidance we actions. Solutions which and outlined do We Products our impacted decline to taking we lot across that demand and in our a third Solutions expect remarks our have work revision period, October. quarter continue aggressive into opening and EBITDA have the Products in the in
me Let summarize those here.
and margin do costs first value that. product was keep Most engineering year The of components, from prior need packaging every strong. spin-off gross factor engineering our like raw to our will gross company compression. Value Honeywell. margin to a to be teams ours, In optimized like materials stopped
the our gross margins we that teams back see in Honeywell, off top effects of benefits we this from depleted, Before spun seeing we these and as and starting building a XXXX. were to capability in the expect largely are priority,
lost sourcing. some several months now to direct is that. leverage spin-off. sourcing factor indirect with following second and the in materials We’ve been rectify The suppliers for We our working
associated deliveries is of XXXX The later, drop with competitive margin a began This with contract OEM third was the large secured volume a and a from in a factor ramp-up customer. XXXX. year first renewal contract security in
associated and but make did for increased modern which more misstep. rebates began previously volumes series. is margin this the customer drop. This margin factor in was up called thermostat the execution clear this lower-margin to transition materialize, The This T-Series to year. a XXXX fourth that decline Contractual was offering further The high-margin mentioned not from drove a planning transition. with product plan for contract a
working we partners and with mentioned, position expect As to channel the improvement of XXXX. are T-Series the our improve in line
have retail security inventory leaner post-spin EBITDA in for been impacted home kind as thermostat, parts of Finally, that products time. here tower are write-downs the parts slow-moving other other the and our and system well. some raws the Examples and and
focused teams driving on in have all these We actions areas.
improvement, in and and single between a the focus our back, reduction our products. top Now margin gross G&A line pulling lens pros stability interface is growth,
operations driving made I’m the financial improve plan several review in have the leadership track. back right the We execution, to to on changes get will business lock we’re confident in items this and and
his I’d and more been operations now already the focus the over financials like impact. financial Bob an is introduce few to on weeks, and our discuss for review. operational CFO, to and now expand Ryder, support and ground Bob, you. has a on Bob making to
