National Vision Holdings, Inc. · NASDAQ:EYE
National Vision — Q1 2023 Earnings Presentation
26 slides from National Vision's earnings presentation, May 11, 2023
Slide 1: Q1 2023 Financial Results
Q1 2023 Financial Results May 11, 2023
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, sta
Slide 3: Agenda
Agenda Topic Presenter First Quarter 2023 Highlights Reade Fahs, CEO First Quarter 2023 Financial Update and 2023 Melissa Rasmussen, CFO Outlook Moment of Mission Reade Fahs, CEO Q&A Reade Fahs Melissa Rasmussen Patrick Moore CEO CFO COO 3 3
Slide 4: Q1 Highlights
Q1 Highlights Change vs Q1 Amount 2022 Net Revenue $562.4 million 6.6% Adjusted Operating Income1 $39.9 million (12.0)% Adjusted Diluted EPS1 $0.31 (5.4)% • Adjusted Comparable Store Sales Growth1: 0.8% (compared to (6.8)% in Q1 22) • Q1 factors ◦ Continued strength in managed care offset by macro h
Slide 5: Progress Against 2023 Strategic Initiatives
Progress Against 2023 Strategic Initiatives • Recruiting & Retention: Encouraged by Q1 trends aided by the addition of increased flexible schedule options available for Significantly Expand Exam Optometrists Capacity • Remote: On track to enable at least 200 additional AB locations with remote care
Slide 6: Future Whitespace Opportunity
Future Whitespace Opportunity 6 6
Slide 7: History of Comparable Store Sales Growth
History of Comparable Store Sales Growth 1-2009 comparable store sales exclude sales from the Eyeglass World stores for the first six month “transition” period following our acquisition of Eyeglass World. 7 7
Slide 8: First Quarter 2023 Financial Update
First Quarter 2023 Financial Update 8 8
Slide 9: Revenue Drivers
Revenue Drivers Net Revenue ($M) Total Store Count Commentary • Net revenue increased 6.6% over Q1 2022 $562.4 1,357 primarily due to: $527.7 1,292 ◦ Growth from new store sales and recognition of unearned revenue 6.6% ◦ Net revenue was positively impacted increase by timing of unearned revenue by 2
Slide 10: Q1 2023 Results
Q1 2023 Results Net Revenue ($M) Commentary • Net revenue increased 6.6% over Q1 2022 primarily due to: ◦ Growth from new store sales and recognition of unearned $527.7 6.6% $562.4 revenue increase ◦ Net revenue was positively impacted by 2.0% due to the timing of unearned revenue on net revenue • C
Slide 11: Capital Structure and Cash Flow Highlights
Capital Structure and Cash Flow Highlights • Strong liquidity position ◦ $541M of liquidity at end of Q1, including a cash balance of $247M ◦ Net debt to TTM Adjusted EBITDA1: 1.8x ◦ No borrowings outstanding under our revolving credit facility • Share repurchase ◦ Repurchased 1.1M shares of common
Slide 12: Reaffirms Fiscal 2023 Outlook
Reaffirms Fiscal 2023 Outlook The Company reaffirms the previously provided outlook for its key operating metrics, while updating its expectations for tax rate from 26% to 26% - 28%. Fiscal 2023 Outlook New Stores 65 - 70 Adjusted Comparable Store Sales Growth 0% - 3% Net Revenue $2.075 - $2.135 bil
Slide 13: Moment of Mission
Moment of Mission Investing in AI to Create Affordable Access In April, National Vision co-led Toku's Series A Preferred investment round. Toku’s artificial intelligence platform analyzes retinal images to assess cardiovascular health. “We are building a future in which more people have affordable a
Slide 14: Q&A
Q&A 14 14
Slide 15: Appendix
Appendix 15 15
Slide 16: Q1 2023 Consolidated Financial Results (Unaudited)
Q1 2023 Consolidated Financial Results (Unaudited) Three Months Ended Dollars and shares in thousands, except Earnings Per Share April 1, 2023 April 2, 2022 Revenue: Net product sales $ 464,761 $ 433,253 Net sales of services and plans 97,608 94,458 Total net revenue 562,369 527,711 Costs applicable
Slide 17: Capital Structure and Cash Flow
Capital Structure and Cash Flow Less: Deferred Amounts Q1 2023 Capital Structure ($M) Debt Financing per Balance % of Amount Costs Sheet Total Coupon Maturity First Lien - Term Loan $ 150.0 $ (0.5) $ 149.5 26 % L + 125 7/18/2024 First Lien - Revolving Credit Facility1 — — — —% L + 125 7/18/2024 Conv
Slide 18: Reconciliation of Adjusted Comparable Stores Sales Growth
Reconciliation of Adjusted Comparable Stores Sales Growth (Unaudited) Comparable store sales growth (a) Three Months Three Months Ended April 1, Ended April 2, 2023 2022 2023 Outlook (b) Owned & Host segment America’s Best 1.7 % (7.3)% Eyeglass World (1.3)% (6.3)% Military 3.2 % (4.1)% Fred Meyer (9
Slide 19: Reconciliation of Adjusted Operating Income to Net Income
Reconciliation of Adjusted Operating Income to Net Income (Unaudited) Three Months Ended Dollars in thousands April 1, 2023 April 2, 2022 Net income $ 18,270 $ 30,147 Interest expense (income), net 4,867 (4,144) Income tax provision 10,175 11,329 Stock compensation expense (a) 4,315 3,734 (b) Asset
Slide 20: Reconciliation of Adjusted EBITDA to Net Income
Reconciliation of Adjusted EBITDA to Net Income (Unaudited) Three Months Ended Twelve Months Ended Dollars in thousands April 1, 2023 April 2, 2022 April 1, 2023 Net income $ 18,270 $ 30,147 $ 30,245 Interest expense (income), net 4,867 (4,144) 9,473 Income tax provision 10,175 11,329 17,537 Depreci
Slide 21: Reconciliation of Adjusted Diluted EPS to Diluted EPS
Reconciliation of Adjusted Diluted EPS to Diluted EPS (Unaudited) Three Months Ended Shares in thousands April 1, 2023 April 2, 2022 Diluted EPS $ 0.22 $ 0.34 (a) Stock compensation expense 0.05 0.04 Asset impairment (b) 0.00 0.00 (c) 0.02 0.02 Amortization of acquisition intangibles (d) 0.00 0.00 A
Slide 22: Reconciliation of Adjusted SG&A to SG&A
Reconciliation of Adjusted SG&A to SG&A (Unaudited) Three Months Ended Dollars in thousands April 1, 2023 April 2, 2022 SG&A $ 249,922 $ 228,554 (a) Stock compensation expense 4,315 3,734 (i) Other (13) 1,705 Adjusted SG&A $ 245,620 $ 223,115 SG&A Percent of Net Revenue 44.4 % 43.3 % Adjusted SG&A P
Slide 23: Reconciliation of Non-GAAP to GAAP Financial Measures Footnotes
Reconciliation of Non-GAAP to GAAP Financial Measures Footnotes (a) Non-cash charges related to stock-based compensation programs, which vary from period to period depending on the timing of awards and performance vesting conditions. (b) Reflects write-off of primarily property, equipment and lease-
Slide 24: Adjusted Comparable Store Sales Growth Primer
Adjusted Comparable Store Sales Growth Primer What is Adjusted Comparable Store Sales Growth? • Calculated using net revenue on a cash-basis • Excludes the impact of unearned and deferred revenue Why use Adjusted Comparable Store Sales Growth? • Provides a clear view of the Company’s current operati
Slide 25: Unearned Revenue Primer
Unearned Revenue Primer 25 25
Slide 26: Check out some of our latest commercials
Check out some of our latest commercials: National Vision Commercials Check out our video demonstrating a remote exam: Remote Care with National Vision 26 26
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