Envista Holdings Corporation · NYSE:NVST
Envista — Q4 2024 Earnings Presentation
28 slides from Envista's earnings presentation, Feb 5, 2025
Slide 1: Fourth Quarter 2024 – Earnings Presentation
Envista Fourth Quarter 2024 – Earnings Presentation February 5, 2024
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements included or incorporated by reference in this presentation are “forward-looking statements” within the meaning of the U.S. federal securities laws. All statements other than historical factual information are forward-looking statements, including without
Slide 3: Agenda
• Opening Thoughts Paul Keel • Financial Results – Q4 2024 Eric Hammes Agenda • FY25 Guidance Eric Hammes • Closing Remarks Paul Keel • Q&A 3
Slide 4: Opening Thoughts
Opening Thoughts Continued progress in Q4; Providing FY 2025 guidance Fourth Quarter 2024 FY 2024 FY 2025 Results as expected Results as expected Guidance • 2.0% core growth1 Results Guidance • Core growth of 1% to 3% • 13.9% Adjusted EBITDA Margin1 • Core growth -1.5% -4% to -1% • Adjusted EBITDA m
Slide 5: Continued progress and solid performance
Continued progress and solid performance • $25M investment in 2024 to accelerate growth, focus on Nobel Biocare • Improved growth for premium and challenger implants; Q4 positive for both Growth • Spark continues to gain share in aligners and improve gross margins • Increasing new product activity •
Slide 6: Q4 2024 | Dental Market and Envista Performance
Q4 2024 | Dental Market and Envista Performance % of Envista Est. Market Envista Segment Commentary Sales1 Growth2 Performance Implants Specialty Products + Positive global growth in both Premium and Challenger & Technologies ~40% LSD LSD + Positive North American growth supported by investments + F
Slide 7: Q4 2024 | Financial Metrics
Q4 2024 | Financial Metrics Q4 Q4 Summary Key Metric1 vPY 2024 2023 • Core Sales growth 2.0% Revenue $652.9M $645.6M +$7.3M o Implants grew LSD, improving sequentially o HSD growth in Spark (ex-deferral impact) Core Sales Growth(%) 2.0% -2.0% +400 bps o China weak for both Ortho and Diagnostics Adju
Slide 8: Q4 2024 | Revenue Bridge
Growth Rate % Q4 2024 | Revenue Bridge1 Reported Revenue Core Growth2 % +1.1% +2.0% $9 -$9 $653 $646 -$6 $20 -$7 Q4 2023 FX Spark Deferral Consumables Spark & Other Q4 2024 YOY Implant Comparable Volume 8 1 Bridge based on management's best estimate of year over year impact. 2 Core sales growth is a
Slide 9: Q4 2024 | Adjusted EBITDA Bridge
Q4 2024 | Adjusted EBITDA Bridge1 +0.8% -0.9% $19.5 +0.8% 15.6% -1.3% -1.1% 13.9% Q4 Net Price/Vol/Mix Spark Deferral Investments Other Items Q4 2023 Productivity 2024 9 1 Adjusted EBITDA & adjusted EBITDA margin are non-GAAP financial measures. For a reconciliation to the most directly comparable G
Slide 10: Q4 2024 | Specialty Products & Technologies
Q4 2024 | Specialty Products & Technologies Investments for long-term growth & profitability making an Impact Revenue Adjusted Operating • Implants grew LSD Core Sales1 -0.4% Profit Margin1 o Premium implants grew globally, including North America $415.9 $410.9 o Challenger implants grew globally, i
Slide 11: Q4 2024 | Equipment & Consumables
Q4 2024 | Equipment & Consumables Diagnostics market softness persists; Consumables sell-out in line with market Revenue Adjusted Operating • Diagnostics declined HSD Core Sales1 +6.4% Profit Margin1 o Diagnostics market remains soft o We declined in multiple key markets with sharp decline in China
Slide 12: Q4 2024 | Cash Flow and Balance Sheet
Q4 2024 | Cash Flow and Balance Sheet Strong Balance Sheet; Free Cash Flow +35% in FY24 Q4 Q4 2024 2023 • Free Cash Flow Operating Cash Flow $132.4M $102.0M o $124M in Q4, up 24% vs Q4’23 o $303M FY, up 35% vs 2023 Capital Expenditure, net $8.5M $2.1M Free Cash Flow1 $123.9M $99.9M 1 Free Cash Flow
Slide 13: Capital Deployment
Capital Deployment Repatriated over $300M of International cash to US; Authorized share repurchase • We repatriated over $300M (net of tax) into the United States Capital Deployment Priorities o Enables flexibility for capital deployment 1. Organic Investment o Tax obligation accrued in Q4 o Tax exp
Slide 14: 2025 | Full Year Guidance
2025 | Full Year Guidance Initiating FY25 Guidance Key Metric Guidance Core Growth1 1-3% Adj. EBITDA %1 ~14% Adj. EPS1 $0.95 to $1.05 Note: These forward-looking estimates do not reflect future gains and charges that are inherently difficult to predict and estimate due to their unknown timing, effec
Slide 15: 2025 | Guidance Assumptions
2025 | Guidance Assumptions Key planning factors considered in 2025 guidance Key Driver Assumptions Dental Market Continued soft but stable market with no significant improvement in 2025 Exchange Rates December month ending rates: 1 EUR to 1.035 USD, ~(2%) YOY impact Tariffs Fluid situation, nothing
Slide 16: Closing Thoughts
Closing Thoughts Market remains soft but stable Q4 results as expected: 2.0% core growth, 13.9% adjusted EBITDA Providing 2025 guidance $250M share repurchase authorization Continued progress positioning Envista for improved performance moving forward 16
Slide 17: Appendix
Appendix 17
Slide 18: Reconciliation of Adjusted Gross Profit
Envista Holdings | Reconciliation of Adjusted Gross Profit ($ in millions) Adjusted Gross Profit and Adjusted Gross Margin Three Months Ended Twelve Months Ended ($ in Millions) December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Gross Profit $ 372.5 $ 335.9 $ 1,372.7 $ 1,440.5 R
Slide 19: Reconciliation of Adjusted Operating Profit
Envista Holdings | Reconciliation of Adjusted Operating Profit ($ in millions) Adjusted Operating Profit ($ in millions) Three Months Ended Twelve Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Consolidated Operating Profit (Loss) $ 46.1 $ (202.8) $ (1,038.2) $
Slide 20: Reconciliation of Adjusted Net Income
Envista Holdings | Reconciliation of Adjusted Net Income ($ in millions) Adjusted Net Income Three Months Ended Twelve Months Ended ($ in millions) December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Net Income (Loss) $ 1.2 $ (217.4) $ (1,118.6) $ (100.2) Amortization of acquisit
Slide 21: Reconciliation of Adjusted Diluted EPS
Envista Holdings | Reconciliation of Adjusted Diluted EPS Adjusted Diluted Earnings Per Share Three Months Ended Twelve Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Diluted Earnings (Loss) $ 0.01 $ (1.27) $ (6.50) $ (0.60) Amortization of acquisition-related a
Slide 22: Reconciliation of Adjusted Diluted Shares Outstanding
Reconciliation of Adjusted Diluted Shares Envista Holdings | Outstanding (in Millions) Adjusted Diluted Shares Outstanding Three Months Ended Twelve Months Ended (in millions) December 31, December 31, December 31, December 31, 2024 2023 2024 2023 Average common stock shares outstanding - basic 172.
Slide 23: Reconciliation of Adjusted EBITDA
Envista Holdings | Reconciliation of Adjusted EBITDA ($ in millions) Adjusted EBITDA ($ in millions) Three Months Ended Twelve Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Net Income (Loss) $ 1.2 $ (217.4) $ (1,118.6) $ (100.2) Interest expense, net 9.9 13.9 4
Slide 24: Reconciliation of Core Sales Growth
Envista Holdings | Reconciliation of Core Sales Growth1 Core Sales Growth 1 % Change Three Month % Change Twelve Month Period Ended December 31, Period Ended December 31, 2024 vs. Comparable 2023 2024 vs. Comparable 2023 Consolidated Period Period Total sales growth 1.1 % (2.2) % Plus the impact of:
Slide 25: Reconciliation of Operating Cash Flows to Free Cash Flow
Reconciliation of Operating Cash Flows to Free Envista Holdings | Cash Flow ($ in Millions) Reconciliation of Operating Cash Flows to Free Cash Flow ($ in millions) Three Months Ended Twelve Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Net Operating Cash Provi
Slide 26: Notes to reconciliation of GAAP to non-GAAP financial measures
Envista Holdings | Non-GAAP Financial Measures Notes to reconciliation of GAAP to non-GAAP financial measures (unaudited) A Represents impairment charge related to goodwill and certain intangible assets. B We exclude impairment of certain long-lived assets, executive transition costs, and cost incur
Slide 27: Statement Regarding Non-GAAP Measures
Envista Holdings | Non-GAAP Financial 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 rep
Slide 28: Statement Regarding Non-GAAP Measures (Continued)
Envista Holdings | Non-GAAP Financial Measures 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, Adjust