Varex Imaging Corporation · NASDAQ:VREX
Varex Imaging — Q3 2021 Earnings Presentation
20 slides from Varex Imaging's earnings presentation, Aug 3, 2021
Slide 1: Q3 FY21 Earnings Presentation
Solutions in Sight® Q3 FY21 Earnings Presentation August 3, 2021 1
Slide 2: Forward Looking Statements / Non-GAAP Measures
Forward Looking Statements / Non-GAAP Measures Forward Looking Statements Certain statements in this supplement contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward looking statements incl
Slide 3: Q3 FY21 Results
Q3 FY21 Results Non-GAAP Non-GAAP Revenue Cash Gross Margin* EPS* $211M $128M 36% $0.40 ➢ Revenue momentum continued in 3QFY21 ➢ Gross margin improvement sustained ➢ Partial debt paydown enabled by strong cash generation * Non-GAAP. For a reconciliation to the most directly comparable GAAP financial
Slide 4: Q3 FY21 Sequential Trends
Q3 FY21 Sequential Trends CT Mammography Radiography & Fluoroscopy Others Oncology Industrial Dental 4
Slide 5: Quarterly Highlight: China Update
Quarterly Highlight: China Update Large Growth Potential ➢ Large CT market with accelerating adoption ➢ New installed base to drive significant replacement demand ➢ Technology leadership with strong incumbent position China Revenues (FY) ➢ Expect FY21 revenues to exceed $100M $100M+ ➢ Over half of C
Slide 6: Q3 FY21 Revenue Details
Q3 FY21 Revenue Details Segment Mix Geographic Mix ($ in millions) ($ in millions) $44 $69 $66 $167 $76 Medical Industrial Americas EMEA APAC Revenue, $M Q3 21 Q2 21 Q1 21 Q4 20 Q3 20 Revenue, $M Q3 21 Q2 21 Q1 21 Q4 20 Q3 20 Medical 167 157 139 136 138 Americas 66 71 62 64 59 Industrial 44 47 38 34
Slide 7: Quarterly Results - GAAP
Quarterly Results - GAAP $ in Millions, except per share data Q3 FY21 Q2 FY21 Q3 FY20 Revenue $211 $204 $171 Gross Margin 35% 32% 15% $48 $49 $53 Operating Expenses 23% 24% 31% $26 $16 $(27) Operating Income 12% 8% (16)% Net Earnings $12 $3 $(28) EPS, diluted $0.29 $0.08 $(0.73) 7
Slide 8: Quarterly results – Non-GAAP
Quarterly results – Non-GAAP* $ in Millions, except per share data Q3 FY21 Q2 FY21 Q3 FY20 Revenue $211 $204 $171 Gross Margin (Non-GAAP) 36% 35% 26% $46 $45 $46 Operating Expenses (Non-GAAP) 22% 22% 27% $30 $26 $(1) Operating Income (Non-GAAP) 14% 13% (1)% Net Earnings (Non-GAAP) $16 $14 $(8) EPS,
Slide 9: Select Balance Sheet Data
Select Balance Sheet Data $ in Millions Q3 FY21 Q2 FY21 Q3 FY20 Assets Cash and Cash Equivalents $128 $111 $87 Accounts Receivable, net $148 $129 $110 Inventories $243 $248 $283 Total Assets $1,161 $1,133 $1,122 Liabilities Accounts Payable $66 $52 $80 Long-Term Debt, net $463 $461 $417 Total Liabil
Slide 10: Select Debt and Cash Flow Data
Select Debt and Cash Flow Data $ in Millions Q3 FY21 Q2 FY21 Q3 FY20 Debt Gross Debt $512 $512 $475 (Ratings: Moody’s B2 / S&P B) Net Debt1 $384 $401 $388 Adjusted EBITDA2 Adjusted EBITDA $39 $33 $5 Cash Performance Cash Flow from Operations $22 $13 $1 Capital Expenditures $5 $3 $5 Cash Interest $17
Slide 11: Outlook Q4 FY21
Outlook Q4 FY21 Guidance Non-GAAP Revenues, $M $205 - $225 EPS Per Diluted Share $0.25 - $0.40 Assumptions Non-GAAP Gross Margin 35% - 36% Operating Expenses, $M $46 - $47 11
Slide 12: Q&A
Solutions in Sight® Q&A 12
Slide 13: Non-GAAP Reconciliation
Solutions in Sight® 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 Nine Months Ended (In millions, except per share amounts) July 2, 2021 July 3, 2020 July 2, 2021 July 3, 2020 GROSS PROFIT RECONCILIATION Revenues $ 211.2 $ 171.2 $ 591.8 $ 568.3 Gross profit $ 74.1 $ 26.3 $ 1
Slide 15: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended Nine Months Ended (In millions, except per share amounts) July 2, 2021 July 3, 2020 July 2, 2021 July 3, 2020 SELLING, GENERAL AND ADMINISTRATIVE EXPENSE RECONCILIATION Selling,general and administrative expen
Slide 16: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended Nine Months Ended (In millions, except per share amounts) July 2, 2021 July 3, 2020 July 2, 2021 July 3, 2020 OPERATING INCOME (LOSS) RECONCILIATION Operating income (loss) $ 25.7 $ (26.8) $ 47.6 $ (20.8) Amor
Slide 17: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended Nine Months Ended (In millions, except per share amounts) July 2, 2021 July 3, 2020 July 2, 2021 July 3, 2020 INCOME (LOSS) BEFORE TAXES RECONCILIATION Income (loss) before taxes $ 15.3 $ (39.8) $ 13.8 $ (42.1
Slide 18: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended Nine Months Ended (In millions, except per share amounts) July 2, 2021 July 3, 2020 July 2, 2021 July 3, 2020 DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING RECONCILIATION GAAP weighted average common shares - di
Slide 19: 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 Earnings. These measures are not presented in accordance with, nor are they a substitute for U.S. generally accepted accounting principles, or GAAP
Slide 20: Solutions in Sight®
Solutions in Sight®