Envista Holdings Corporation · NYSE:NVST
Envista — Q4 2023 Earnings Presentation
25 slides from Envista's earnings presentation, Feb 7, 2024
Slide 1: Fourth Quarter 2023 Earnings Presentation
Fourth Quarter 2023 Earnings Presentation February 7, 2024
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation are “forward-looking” statements within the meaning of the federal securities laws. There are a number of important factors that could cause actual results, developments and business decisions to differ materially from those suggeste
Slide 3: 2023 Overview
2023 Overview Q4 and Full Year 2023 Performance in-line with our expectations • As anticipated, full year core sales* were down 0.4% and adjusted EBITDA margin* was 18.1%. − Delivered $223.6 million in Free Cash Flow; An increase of >$100 million vs. prior year • Leveraging EBS to drive long-term pe
Slide 4: 2023 Progress on Strategic Priorities
2023 Progress on Strategic Priorities Focus on transforming Envista into a higher growth and higher margin company Priority Results • Continued strength in orthodontics; Spark core sales growth* >50% in FY2023 Accelerate growth through • Outside of North America; Implants delivered MSD core sales gr
Slide 5: Q4 2023: Financial Metrics
Q4 2023: Financial Metrics Q4 performance in line with our expectations; Strong Free Cash Flow Core Sales Growth* -2.0% Q4 2023 Core Sales Growth* − Sales down on macro uncertainty, Cyber attack impacts; selective portfolio optimization & GAAP Diluted EPS ($1.27) underperformance of implants in Nort
Slide 6: Specialty Products & Technologies
Specialty Products & Technologies Spark continues to outperform; Investing for long-term growth Revenue Adjusted Operating • Orthodontics Core Sales* +4.8% Profit Margin* − Spark revenue continues to outperform; Strong growth in both Europe and $398.4 $415.9 North America ($ m) − Traditional Bracket
Slide 7: Equipment & Consumables
Equipment & Consumables Diagnostics stabilizing; Continued strong sell-out in Consumables Revenue Adjusted Operating • Core Sales Growth* Core Sales* -12.4% Profit Margin* − Diagnostics declined primarily due to the weak macro environment and the $262.4 de-emphasis of non-strategic solutions and geo
Slide 8: Cash Flow & Balance Sheet
Cash Flow & Balance Sheet Strong Balance Sheet – Flexibility to continue transforming portfolio • Balance Sheet Free Cash Flow** Summary ($M) − Working capital turns improved sequentially − EBS driven improvements to inventory levels Q4’23 Q4’22 Operating cash flow* $102.0 $110.3 • Free Cash Flow −
Slide 9: 2024 – Full Year Guidance
2024 – Full Year Guidance Focus on executing against long-term priorities Guidance Key Metric 2024 Revenue – Core Growth* LSD Adj. EBITDA Margin* 16% – 17% Adjusted EBITDA margin is expected to accelerate throughout 2024 Note: These forward-looking estimates do not reflect future gains and charges t
Slide 10: 2024 – Key Focus Areas
2024 – Key Focus Areas Prioritize long-term value creation • Further Accelerate Orthodontic Business − Drive Spark growth Double Spark business by 2026 − Continue to expand Spark margins • Re-Accelerate Implant Business − Turnaround North America Implants Return to market growth by end of 2024 −
Slide 11: Summary & Key Takeaways
Summary & Key Takeaways Dental is an attractive market with strong secular growth trends Envista is strategically differentiated and has a proven track record of execution Significant opportunity to accelerate growth, improve margins, & create value for patients, customers, employees, and shareholde
Slide 12: Q&A
Q&A 12
Slide 13: Appendix
Appendix 13
Slide 14: Reconciliation of Adjusted Gross Profit
Reconciliation of Adjusted Gross Profit ($ in Millions) See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures 14
Slide 15: Reconciliation of Adjusted Operating Profit
Reconciliation of Adjusted Operating Profit ($ in Millions) 15 See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 16: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income ($ in Millions) See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures 16
Slide 17: Reconciliation of Adjusted Diluted Earnings Per Share
Reconciliation of Adjusted Diluted Earnings Per Share See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures 17
Slide 18: Reconciliation of Adjusted Diluted Shares Outstanding
Reconciliation of Adjusted Diluted Shares Outstanding ($ in Millions) 18 See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 19: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA ($ in Millions) 19 See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 20: Reconciliation of Core Sales Growth
Reconciliation of Core Sales Growth1 1 We use the term “core sales” to refer to GAAP revenue excluding (1) sales from acquired businesses recorded prior to the first anniversary of the acquisition (“acquisitions”), (2) sales from discontinued products and (3) the impact of currency translation. Sale
Slide 21: Reconciliation of Operating Cash Flows to Free Cash Flow
Reconciliation of Operating Cash Flows to Free Cash Flow ($ in Millions) See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures 21
Slide 22: Notes to Reconciliation of GAAP to Non-GAAP Financial Measures
ENVISTA HOLDINGS CORPORATION NOTES TO RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) A Represents impairment charge related to goodwill and certain indefinite-lived intangibles. B We exclude costs incurred pursuant to discrete restructuring plans that are fundamentally different (
Slide 23: Statement Regarding Non-GAAP Measures
Statement Regarding Non-GAAP Measures Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. Management believes t
Slide 24: Statement Regarding Non-GAAP Measures (Continued)
Statement Regarding Non-GAAP Measures (Continued) The items excluded from the non-GAAP measures set forth above have been excluded for the following reasons: • With respect to Adjusted Gross Profit, Adjusted Operating Profit, Adjusted Net Income, Adjusted Diluted Earnings Per Share and Adjusted EBIT
Slide 25: Thank You
Thank You 25