Varex Imaging Corporation · NASDAQ:VREX
Varex Imaging — Q3 2024 Earnings Presentation
22 slides from Varex Imaging's earnings presentation, Aug 1, 2024
Slide 1: Making the Invisible Visible
Making the Invisible Visible Q3 FY24 Earnings Presentation August 1, 2024 8/1/2024 1
Slide 2: Forward Looking Statements / Non-GAAP Measures
Forward Looking Statements / Non-GAAP Measures Forward Looking Statements 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: Q3 FY24 Results
Q3 FY24 Results Non-GAAP Non-GAAP Cash, Cash Equiv., Revenue Gross Margin1 EPS1 & Mkt. Sec.2 $209M $192M 32% $0.14 Strong Industrial sales in the quarter China business soft; Moderate sequential growth Industrial product mix impacted gross margin 1Non-GAAP. For a reconciliation to the most dir
Slide 4: Q3 FY24 Year-over-Year Performance
Q3 FY24 Year-over-Year Performance Revenue Gross Margin - Non-GAAP Adjusted EBITDA $232 $38 34% $209 32% $23 -10% -140bps -39% Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Diluted EPS - Non-GAAP Cash, Cash Equiv. & Mkt. $0.37 Sec. $192 $152 $0.14 -62% +26% Q3FY23 Q3FY24 Q3FY23 Q3FY24 Note: $millions ex
Slide 5: Q3 FY24 Sales Performance
Q3 FY24 Sales Performance1 CT Mammography Radiography & Fluoroscopy Others Oncology Industrial Dental 1Sales performance is Q3FY24 sales compared to five quarter average trend 8/1/2024 5
Slide 6: Q3 FY24 Revenue Details
Q3 FY24 Revenue Details Segment Mix Geographic Mix ($ in millions) ($ in millions) $60 $68 $70 $149 $71 Medical Industrial Americas EMEA APAC Revenue, $M Q3 24 Q2 24 Q1 24 Q4 23 Q3 23 Revenue, $M Q3 24 Q2 24 Q1 24 Q4 23 Q3 23 Medical 149 149 140 164 175 Americas 70 68 62 74 73 Industrial 60 57 50 64
Slide 7: Quarterly Results - GAAP
Quarterly Results - GAAP $ in Millions, except per share data Q3 FY24 Q2 FY24 Q3 FY23 Revenue $209 $206 $232 Gross Margin 32% 32% 33% $58 $58 $52 Operating Expenses 28% 28% 22% $9 $8 $24 Operating Income 4% 4% 10% Net Earnings1 $1 $1 $9 EPS, diluted $0.03 $0.03 $0.21 Avg. shares, diluted 41.2 41.2 5
Slide 8: Quarterly Results - Non-GAAP
Quarterly results – Non-GAAP1 $ in Millions, except per share data Q3 FY24 Q2 FY24 Q3 FY23 Revenue $209 $206 $232 Gross Margin (Non-GAAP) 32% 33% 34% $53 $54 $49 Operating Expenses (Non-GAAP) 25% 26% 21% $15 $13 $29 Operating Income (Non-GAAP) 7% 6% 13% Net Earnings (Non-GAAP)2 $6 $7 $17 EPS, dilute
Slide 9: Select Balance Sheet Data
Select Balance Sheet Data $ in Millions Q3 FY24 Q2 FY24 Q3 FY23 Assets Cash, Cash Equiv., Mkt. Sec. & CDs $192 $190 $152 Accounts Receivable, net $152 $152 $163 Inventories $282 $286 $298 Total Assets $1,253 $1,252 $1,212 Liabilities Accounts Payable $68 $69 $75 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 Q3 FY24 Q2 FY24 Q3 FY23 Debt Gross Debt1 $447 $447 $449 (Ratings: Moody’s B2 / S&P BB-) Net Debt2 $255 $257 $297 Adjusted EBITDA3 Adjusted EBITDA $23 $25 $38 Adjusted EBITDA (TTM) $105 $120 $129 Net debt leverage (TTM) 2.4x 2.1x 2.3x Cash Flow S
Slide 11: Guidance Q4 FY24
Guidance Q4 FY24 Revenue Non-GAAP EPS, diluted $190 - $210M $0.00 - $0.15 Gross Margin: 33% - 34% Operating Expense: $53 – 54M Assumptions Interest & Other Expense, net: ($7M) – ($8M) Tax rate: 21 – 23% Share count, diluted: ~41M shares 8/1/2024 Varex Proprietary and Confidential 11
Slide 12: Q&A
Making the Invisible Visible Q&A 8/1/2024 12
Slide 13: Non-GAAP Reconciliation
Making the Invisible Visible Non – GAAP Reconciliation 8/1/2024 13
Slide 14: Reconciliation between GAAP and Non-GAAP Financial measures
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended Nine Months Ended (In millions, except per share amounts) June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 GROSS PROFIT RECONCILIATION Revenues, net $ 209.1 $ 232.2 $ 605.3 $ 666.0 Gross profit 66.9 76.
Slide 15: Reconciliation between GAAP and Non-GAAP Financial measures
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended Nine Months Ended (In millions, except per share amounts) June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 SELLING, GENERAL AND ADMINISTRATIVE EXPENSE RECONCILIATION Selling, general, and administrative
Slide 16: Reconciliation between GAAP and Non-GAAP Financial measures
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended Nine Months Ended (In millions, except per share amounts) June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 OPERATING INCOME RECONCILIATION Operating income $ 9.3 $ 24.2 $ 21.2 $ 52.8 Amortization of int
Slide 17: Reconciliation between GAAP and Non-GAAP Financial measures
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended Nine Months Ended (In millions, except per share amounts) June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 INCOME (LOSS) BEFORE TAXES RECONCILIATION Income before taxes $ 0.8 $ 17.1 $ 2.5 $ 30.3 Total o
Slide 18: Reconciliation between GAAP and Non-GAAP Financial measures
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended Nine Months Ended (In millions, except per share amounts) June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 ADJUSTED EBITDA RECONCILIATION Net income attributable to Varex $ 1.4 $ 9.1 $ 2.3 $ 16.3 Intere
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