Envista Holdings Corporation · NYSE:NVST
Envista — Q2 2023 Earnings Presentation
23 slides from Envista's earnings presentation, Aug 2, 2023
Slide 1: Second Quarter 2023 Earnings Presentation
Second Quarter 2023 Earnings Presentation August 2, 2023
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this press release 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 suggest
Slide 3: Overview
Overview Delivered core sales growth* of 2.1% and Adjusted EBITDA Margin* of 19.1% • As anticipated, Q2 results improved sequentially. Equipment & Consumables (E&C) returned to growth and Spark continues to outperform. • We are positioned to achieve full year guide of low single digit core growth an
Slide 4: Progress on Strategic Priorities
Progress on Strategic Priorities Transforming Envista into a higher growth and higher margin company Priority Results • Specialty Products & Technologies (SPT) grew LSD (including impact of Russia sanctions) Accelerate growth through strategic • Spark continues to outperform; delivering core sales g
Slide 5: Q2 2023: Financial Metrics
Q2 2023: Financial Metrics Execution drives improving performance; Acceleration expected throughout 2023 Core Sales Growth* 2.1% • Q2 2023 Core Sales Growth* − Core growth accelerated (sequentially) despite headwinds from Russia sanctions GAAP Diluted EPS $0.29 − Western Europe delivered HSD growth
Slide 6: Specialty Products & Technologies
Specialty Products & Technologies Spark continues to outperform; Investing for long-term growth Revenue Adjusted Operating • Orthodontics Core Sales* +1.7% Profit Margin* − Spark revenue continues to accelerate; Strong growth across all $407.7 $417.0 geographies − Traditional Brackets & Wires down H
Slide 7: Equipment & Consumables
Equipment & Consumables E&C returns to growth; EBS focus improving operating margins Revenue Adjusted Operating • Core Sales Growth* Core Sales* +2.9% Profit Margin* − Equipment up LSD driven by strong growth in IOS and improving $245.4 performance in traditional imaging $238.1 − Restorative & Endod
Slide 8: Cash Flow & Balance Sheet
Cash Flow & Balance Sheet Strong Balance Sheet – Flexibility to continue transforming portfolio • Balance Sheet Free Cash Flow** Summary ($M) − Ended Q2 with cash balance of >$650 million Q2’22 Q2’23 − Significant financial flexibility for long-term investment and capital deployment Operating cash f
Slide 9: 2023 Full Year Guidance
2023 Full Year Guidance Confirming full year guidance for core sales growth and adjusted EBITDA margin Guidance Key Metric 2023 Revenue – Core Sales Growth* LSD Adj. EBITDA Margin* >20% Core Sales Growth and Adjusted EBITDA margin expected to accelerate throughout 2023 Note: These forward-looking es
Slide 10: Summary & Key Takeaways
Summary & Key Takeaways Dental is an attractive market with strong secular growth trends Envista is strategically differentiated and has a proven track record of execution Significant opportunity to accelerate growth; improve margins; and create value for patients, customers, employees, and sharehol
Slide 11: Q&A
Q&A 11
Slide 12: Appendix
Appendix 12
Slide 13: Reconciliation of Adjusted Gross Profit
Reconciliation of Adjusted Gross Profit ($ in Millions) Adjusted Gross Profit and Adjusted Gross Margin Three Months Ended Six Months Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Gross Profit $ 378.6 $ 369.8 $ 741.3 $ 743.9 Restructuring costs and asset impairments A 4.8 6.9 6.3 6.6 F
Slide 14: Reconciliation of Adjusted Operating Profit
Reconciliation of Adjusted Operating Profit ($ in Millions) Adjusted Operating Profit Three Months Ended Six Months Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Consolidated Operating Profit $ 78.9 $ 65.2 $ 151.0 $ 156.7 Amortization of acquisition-related and other intangible assets
Slide 15: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income ($ in Millions) Adjusted Net Income Three Months Ended Six Months Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Net Income From Continuing Operations $ 51.9 $ 44.5 $ 95.7 $ 114.9 Amortization of acquisition-related and other intangible assets 24.1
Slide 16: Reconciliation of Adjusted Diluted Earnings Per Share
Reconciliation of Adjusted Diluted Earnings Per Share Adjusted Diluted Earnings Per Share Three Months Ended Six Months Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Diluted Earnings From Continuing Operations Per Share $ 0.29 $ 0.25 $ 0.54 $ 0.64 Amortization of acquisition-related an
Slide 17: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA ($ in Millions) Adjusted EBITDA Three Months Ended Six Months Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Net Income From Continuing Operations $ 51.9 $ 44.5 $ 95.7 $ 114.9 Interest expense, net 17.4 6.4 34.1 12.3 Income taxes 16.7 14.6 28.6 30.1 Dep
Slide 18: Reconciliation of Core Sales Growth
Reconciliation of Core Sales Growth1 Core Sales Growth 1 % Change Three % Change Six Month Month Period Ended Period Ended June 30, 2023 vs. June 30, 2023 vs. Comparable 2022 Comparable 2022 Consolidated Period Period Total sales growth 2.6 % 1.0 % Plus the impact of: Acquisitions (1.7)% (2.5)% Curr
Slide 19: Reconciliation of Operating Cash Flows to Free Cash Flow
Reconciliation of Operating Cash Flows to Free Cash Flow ($ in Millions) Reconciliation of Operating Cash Flows Three Months Ended Six Months Ended to Free Cash Flow June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Net Operating Cash Used in Investing Activities $ (2.8) $ (591.6) $ (24.8) $ (58
Slide 20: 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 We exclude costs incurred pursuant to discrete restructuring plans that are fundamentally different (in terms of the size, strategic nature and planning requirements) from the ongoing productivi
Slide 21: 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 22: 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 23: Thank You
Thank You 23 Confidential: For internal use only.