Varex Imaging Corporation · NASDAQ:VREX
Varex Imaging — Q3 2023 Earnings Presentation
22 slides from Varex Imaging's earnings presentation, Aug 1, 2023
Slide 1: Making the Invisible Visible
Making the Invisible Visible Q3 FY23 Earnings Presentation August 1, 2023 1
Slide 2: Forward Looking Statements / Non-GAAP Measures
Forward Looking Forward Looking Statements Statements / Non-GAAP Measures Certain statements in this supplement contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward looking statements incl
Slide 3: Q3 FY23 Results
Q3 FY23 Results Non-GAAP Non-GAAP Cash, Cash Equiv., Revenue Gross Margin1 EPS1 & Mkt. Sec.2 $232M $152M 34% $0.37 ➢ Strong Industrial demand continued in quarter ➢ Gross margin improvement driven by segment mix ➢ Robust cash generation on solid inventory reduction 1Non-GAAP. For a reconciliation to
Slide 4: Q3 FY23 Sequential Performance
Q3 FY23 Sequential Performance Revenue Gross Margin - Non-GAAP Adjusted EBITDA $232 33% 34% $228 $38 $30 +2% +100bps +25% Q2FY23 Q3FY23 Q2FY23 Q3FY23 Q2FY23 Q3FY23 Diluted EPS - Non-GAAP Cash, Cash Equiv. & Mkt. Sec. $0.37 $152 $0.26 $122 +42% +25% Q2FY23 Q3FY23 Q2FY23 Q3FY23 Note: $millions except
Slide 5: Q3 FY23 Sales Performance
Q3 FY23 Sales Performance1 CT Mammography Radiography & Fluoroscopy Others Oncology Industrial Dental 1Sales performance is Q3FY23 sales compared to five quarter average trend 5
Slide 6: Q3 FY23 Revenue Details
Q3 FY23 Revenue Details Segment Mix Geographic Mix ($ in millions) ($ in millions) $57 $73 $82 $175 $77 Medical Industrial Americas EMEA APAC Revenue, $M Q3 23 Q2 23 Q1 23 Q4 22 Q3 22 Revenue, $M Q3 23 Q2 23 Q1 231 Q4 22 Q3 22 Medical 175 174 160 181 167 Americas 73 68 67 80 64 Industrial 57 54 46 5
Slide 7: Quarterly Results - GAAP
Quarterly Results - GAAP $ in Millions, except per share data Q3 FY23 Q2 FY23 Q3 FY22 Revenue $232 $228 $214 Gross Margin 33% 32% 34% $52 $57 $50 Operating Expenses 22% 25% 23% $24 $16 $23 Operating Income 10% 7% 11% Net Earnings1 $9 $4 $8 EPS, diluted $0.21 $0.10 $0.20 Avg. shares, diluted2 50.4 40
Slide 8: Quarterly results – Non-GAAP
Quarterly results – Non-GAAP1 $ in Millions, except per share data Q3 FY23 Q2 FY23 Q3 FY22 Revenue $232 $228 $214 Gross Margin (Non-GAAP) 34% 33% 35% $49 $52 $47 Operating Expenses (Non-GAAP) 21% 23% 22% $29 $23 $28 Operating Income (Non-GAAP) 13% 10% 13% Net Earnings (Non-GAAP)2 $17 $11 $15 EPS, di
Slide 9: Select Balance Sheet Data
Select Balance Sheet Data $ in Millions Q3 FY23 Q2 FY23 Q3 FY22 Assets Cash, Cash Equiv., Mkt. Sec. & CDs $152 $122 $110 Accounts Receivable, net $163 $160 $157 Inventories $298 $311 $300 Total Assets $1,212 $1,191 $1,163 Liabilities Accounts Payable $75 $74 $83 Debt, net1 $443 $443 $413 Total Liabi
Slide 10: Select Debt and Cash Flow Data
Select Debt and Cash Flow Data $ in Millions Q3 FY23 Q2 FY23 Q3 FY22 Debt Gross Debt1 $449 $449 $451 (Ratings: Moody’s B2 / S&P B+) Net Debt2 $297 $327 $341 Adjusted EBITDA3 Adjusted EBITDA $38 $30 $36 Adjusted EBITDA (TTM) $129 $127 $144 Net debt leverage (TTM) 2.3x 2.6x 2.4x Cash Performance Cash
Slide 11: Outlook Q4 FY23
Outlook Q4 FY23 Guidance Non-GAAP Revenues, $M $220 - $240 EPS Per Diluted Share $0.20 - $0.40 Assumptions Non-GAAP Gross Margin 33% - 34% Operating Expenses, $M $49 - $50 11
Slide 12: Q&A
Making the Invisible Visible Q&A 12
Slide 13: Non-GAAP Reconciliation
Making the Invisible Visible Non – GAAP Reconciliation 13
Slide 14: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended Nine Months Ended (In millions, except per share amounts) June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 GROSS PROFIT RECONCILIATION Revenues, net $ 232.2 $ 214.5 $ 666.0 $ 628.0 Gross profit 76.3 73.4
Slide 15: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended Nine Months Ended (In millions, except per share amounts) June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 SELLING, GENERAL AND ADMINISTRATIVE EXPENSE RECONCILIATION Selling, general and administrative $
Slide 16: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended Nine Months Ended (In millions, except per share amounts) June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 OPERATING INCOME RECONCILIATION Operating income $ 24.2 $ 23.0 $ 52.8 $ 63.6 Amortization of inta
Slide 17: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended Nine Months Ended (In millions, except per share amounts) June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 INCOME (LOSS) BEFORE TAXES RECONCILIATION Income (loss) before taxes $ 17.1 $ 13.5 $ 30.3 $ 30.4
Slide 18: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended Nine Months Ended (In millions, except per share amounts) June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING RECONCILIATION GAAP weighted average common shares -
Slide 19: Effect of Convertible Note Hedge and Warrants on Non-GAAP Diluted Share count
Effect of Convertible Note Hedge and Warrants on Non-GAAP Diluted Share count Impact of Warrants and Convertible Note Hedge at Various Share Prices Shares added back for non- GAAP related to convertible Impact of Warrants on GAAP note hedge Share Price* Diluted Shares Non-GAAP Diluted Shares $20.00
Slide 20: Illustrative Impact of ASU 2020-06
Illustrative Impact of ASU 2020-06 Quarterly ASU 2020-06 Share Count Illustration GAAP NON-GAAP* Net Income before Incremental Dilutive Net Income before effect of Add-back of After-tax Shares for EPS effect of Add-back of After-tax Incremental Dilutive Convertible Notes ($M) Interest Expense Calcul
Slide 21: Discussion of Non–GAAP Financial Measures
Discussion of Non – GAAP Financial Measures This presentation includes non-GAAP financial measures derived from our Condensed Consolidated Statements of Operations. These measures are not presented in accordance with, nor are they a substitute for U.S. generally accepted accounting principles, or GA
Slide 22: Making the Invisible Visible
Making the Invisible Visible