Varex Imaging Corporation · NASDAQ:VREX
Varex Imaging — Q1 2024 Earnings Presentation
22 slides from Varex Imaging's earnings presentation, Feb 6, 2024
Slide 1: Making the Invisible Visible: Q1 FY24 Earnings Presentation
Making the Invisible Visible Q1 FY24 Earnings Presentation February 6, 2024 1
Slide 2: Forward Looking Statements / Non-GAAP Measures
Forward Looking Forward Looking Statements Statements / Non-GAAP Measures This supplement contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning revenue and earnings guidance; supply chain and logistics challenges; cost
Slide 3: Q1 FY24 Results
Q1 FY24 Results Non-GAAP Non-GAAP Cash, Cash Equiv., Revenue Gross Margin1 EPS1 & Mkt. Sec.2 $190M $195M 31% $0.06 ➢ Softer demand in both Medical and Industrial ➢ China business continues to be disrupted ➢ Gross margin impacted by lower volume and unfavorable mix 1Non-GAAP. For a reconciliation to
Slide 4: Q1 FY24 Year-over-Year Performance
Q1 FY24 Year-over-Year Performance Revenue Gross Margin - Non-GAAP Adjusted EBITDA $206 32% $25 31% $190 $19 -8% -70bps -26% Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Diluted EPS - Non-GAAP Cash, Cash Equiv. & Mkt. Sec. $0.21 $195 $108 $0.06 -73% +80% Q1FY23 Q1FY24 Q1FY23 Q1FY24 Note: $millions exce
Slide 5: Q1 FY24 Sales Performance
Q1 FY24 Sales Performance1 CT Mammography Radiography & Fluoroscopy Others Oncology Industrial Dental 1Sales performance is Q1FY24 sales compared to five quarter average trend 5
Slide 6: Q1 FY24 Revenue Details
Q1 FY24 Revenue Details Segment Mix Geographic Mix ($ in millions) ($ in millions) $50 $62 $62 $140 $66 Medical Industrial Americas EMEA APAC Revenue, $M Q1 24 Q4 23 Q3 23 Q2 23 Q1 23 Revenue, $M Q1 24 Q4 23 Q3 23 Q2 23 Q1 231 Medical 140 164 175 174 160 Americas 62 74 73 68 67 Industrial 50 64 57 5
Slide 7: Quarterly Results - GAAP
Quarterly Results - GAAP $ in Millions, except per share data Q1 FY24 Q4 FY23 Q1 FY23 Revenue $190 $227 $206 Gross Margin 30% 34% 31% $53 $54 $50 Operating Expenses 28% 24% 24% $4 $24 $13 Operating Income 2% 11% 6% Net Earnings1 ($1) $32 $3 EPS, diluted ($0.01) $0.66 $0.08 Avg. shares, diluted2 40.6
Slide 8: Quarterly results – Non-GAAP
Quarterly results – Non-GAAP1 $ in Millions, except per share data Q1 FY24 Q4 FY23 Q1 FY23 Revenue $190 $227 $206 Gross Margin (Non-GAAP) 31% 36% 32% $49 $51 $47 Operating Expenses (Non-GAAP) 26% 23% 23% $10 $30 $18 Operating Income (Non-GAAP) 5% 13% 9% Net Earnings (Non-GAAP)2 $2 $21 $8 EPS, dilute
Slide 9: Select Balance Sheet Data
Select Balance Sheet Data $ in Millions Q1 FY24 Q4 FY23 Q1 FY23 Assets Cash, Cash Equiv., Mkt. Sec. & CDs $195 $195 $108 Accounts Receivable, net $140 $164 $158 Inventories $290 $278 $320 Total Assets $1,242 $1,250 $1,181 Liabilities Accounts Payable $74 $65 $86 Total Debt, net $443 $443 $443 Total
Slide 10: Select Debt and Cash Flow Statement Data
Select Debt and Cash Flow Statement Data $ in Millions Q1 FY24 Q4 FY23 Q1 FY23 Debt Gross Debt1 $448 $448 $450 (Ratings: Moody’s B2 / S&P BB-) Net Debt2 $253 $253 $342 Adjusted EBITDA3 Adjusted EBITDA $19 $38 $25 Adjusted EBITDA (TTM) $125 $132 $136 Net debt leverage (TTM) 2.0x 1.9x 2.5x Cash Flow S
Slide 11: Outlook Q2 FY24
Outlook Q2 FY24 Guidance Non-GAAP Revenues, $M $195 - $215 EPS Per Diluted Share $0.10 - $0.30 Assumptions Non-GAAP Gross Margin 32% - 33% 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 (In millions, except per share amounts) December 29, 2023 December 30, 2022 GROSS PROFIT RECONCILIATION Revenues, net $ 190.0 $ 205.6 Gross profit 57.1 63.3 Amortization of intangible assets 1.8 1.8 Non-GAAP g
Slide 15: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended (In millions, except per share amounts) December 29, 2023 December 30, 2022 SELLING, GENERAL AND ADMINISTRATIVE EXPENSE RECONCILIATION Selling, general, and administrative $ 32.4 $ 30.3 Amortization of intangi
Slide 16: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended December 29, December 30, (In millions, except per share amounts) 2023 2022 OPERATING INCOME RECONCILIATION Operating income $ 4.2 $ 13.0 Amortization of intangible assets (includes amortization impacts to cos
Slide 17: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended (In millions, except per share amounts) December 29, 2023 December 30, 2022 INCOME (LOSS) BEFORE TAXES RECONCILIATION (Loss) income before taxes $ (0.6) $ 5.4 Total operating earnings adjustments 5.6 4.7 Acqui
Slide 18: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended (In millions, except per share amounts) December 29, 2023 December 30, 2022 ADJUSTED EBITDA RECONCILIATION Net (loss) income attributable to Varex $ (0.5) $ 3.1 Interest expense 7.3 7.5 Income tax expense (0.2
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