National Vision Holdings, Inc. · NASDAQ:EYE
National Vision — Q3 2019 Earnings Presentation
26 slides from National Vision's earnings presentation, Nov 7, 2019
Slide 1: Q3 2019 Financial Results
Q3 2019 Financial Results November 7, 2019
Slide 2: Disclaimer
NACRE2014\15 LP\National Vision LP Public_02.pptx Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934. The
Slide 3: Agenda
NACRE2014\15 LP\National Vision LP Public_02.pptx Agenda Topic Presenter Highlights and Business Update Reade Fahs, CEO Q3 Financial Update Patrick Moore, CFO Fiscal 2019 Outlook Moments of Mission Reade Fahs, CEO Q&A Reade Fahs Patrick Moore CEO CFO NATIONAL VISION HOLDINGS, INC. 3
Slide 4: Highlights
NACRE2014\15 LP\National Vision LP Public_02.pptx Highlights • Adjusted comparable store sales growth1 was 6.2% for the quarter (America's Best 6.7%, Legacy 5.7% and Eyeglass World 5.2%) and 5.6% for the year-to-date • 71 consecutive quarters of positive comparable store sales growth • Opened 17 new
Slide 5: 71 Consecutive Quarters of Positive Comparable Store Sales Growth
NACRE2014\15 LP\National Vision LP Public_02.pptx 71 Consecutive Quarters of Positive Comparable Store Sales Growth NATIONAL VISION HOLDINGS, INC. 5
Slide 6: We Have Multiple Drivers to Continue Our Growth
NACRE2014\15 LP\National Vision LP Public_02.pptx We Have Multiple Drivers to Continue Our Growth Grow Store Base Across Our Owned Brands Continue to Drive Comparable Store Sales Growth Improve Operating Productivity Leverage Technology NATIONAL VISION HOLDINGS, INC. 6
Slide 7: Third Quarter and Year-to-Date Financial Update
Third Quarter and Year-to-Date Financial Update NATIONAL VISION INC CONFIDENTIAL 7
Slide 8: Revenue Drivers
NACRE2014\15 LP\National Vision LP Public_02.pptx Revenue Drivers Total Store Count Growth Commentary • 17 net new stores in the quarter (17 new stores and no closed stores) 1,105 1,128 1,145 1,050 1,067 1,082 962 980 996 1,013 1,027 • 78 net new stores in the last 12 months (83 new stores and 5 clo
Slide 9: Q3 2019 Results
NACRE2014\15 LP\National Vision LP Public_02.pptx Q3 2019 Results Net Revenue (in $MM) Commentary • Net revenue grew 11.5% year-over-year; adjusted comparable store $431.9 sales1 grew 6.2%. Net revenue growth was impacted by: $387.4 ◦ AC Lens contact lens distribution business growth +160 bps 11.5%
Slide 10: Q3 2019 Year-to-Date Results
NACRE2014\15 LP\National Vision LP Public_02.pptx Q3 2019 Year-to-Date Results Net Revenue (in $MM) Commentary • Net revenue grew 12.0% year-over-year; adjusted comparable store $1,322.6 sales1 grew 5.6%. Net revenue growth was impacted by: $1,180.9 ◦ AC Lens contact lens distribution business growt
Slide 11: Capital Structure and Cash Flow
NACRE2014\15 LP\National Vision LP Public_02.pptx Capital Structure and Cash Flow Q3 2019 Capital Structure Commentary Less: Amounts • Net debt to TTM Adjusted EBITDA3 Deferred per Debt Financing Balance % of 2.6x Dollars in millions Amount Costs Sheet Total Coupon Maturity • $148M outstanding under
Slide 12: Recent Changes to Capital Structure
NACRE2014\15 LP\National Vision LP Public_02.pptx Recent Changes to Capital Structure Credit Agreement Debt Balance1 June 29, 2019 September 28, 2019 $148M $198M Revolver TLA L+150 $364M L+150 TLB $420M L+250 Term loans L+150 On July 18, 2019, we amended our credit agreement: • New first lien term l
Slide 13: Fiscal 2019 Outlook
NACRE2014\15 LP\National Vision LP Public_02.pptx Fiscal 2019 Outlook Updated Fiscal 2019 Prior Fiscal 2019 Outlook Outlook New Stores ~75 New Stores ~75 New Stores Adjusted Comparable Store Sales Growth 5 - 5.5% 3 - 5% Net Revenue1 $1.705 - $1.712 billion $1.675 - $1.705 billion Adjusted EBITDA $18
Slide 14: Moments of Mission - Bringing Eye Care to Kids in Need
NACRE2014\15 LP\National Vision LP Public_02.pptx Moments of Mission - Bringing Eye Care to Kids in Need Providing free vision screenings, eye exams and glasses to all students and first 200 family members in Atlanta, GA Partnered with Essilor, Transitions and Essilor Vision Foundation to provide ey
Slide 15: Q&A
Q&A NATIONAL VISION INC CONFIDENTIAL 15
Slide 16: Appendix
Appendix NATIONAL VISION INC CONFIDENTIAL 16
Slide 17: Q3 2019 Consolidated Financial Results (Unaudited)
NACRE2014\15 LP\National Vision LP Public_02.pptx Q3 2019 Consolidated Financial Results (Unaudited) Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September September September September Dollars in thousands 28, 2019 29, 2018 28, 2019 29, 2018 Revenue: Net product sales $
Slide 18: Reconciliation of Total Comparable Store Sales Growth to Adjusted Comparable Store Sales Growth
NACRE2014\15 LP\National Vision LP Public_02.pptx Reconciliation of Total Comparable Store Sales Growth to Adjusted Comparable Store Sales Growth Comparable store sales growth(a) Three Three Nine Nine Months Months Months Months Ended Ended Ended Ended September September September September 2019 28
Slide 19: Reconciliation of Net Income to Adjusted EBITDA
NACRE2014\15 LP\National Vision LP Public_02.pptx Reconciliation of Net Income to Adjusted EBITDA Twelve Three Months Three Months Nine Months Nine Months Months Ended Ended Ended Ended Ended September 28, September 29, September 28, September 29, September Dollars in thousands 2019 2018 2019 2018 2
Slide 20: Reconciliation of Net Income to Adjusted Net Income
NACRE2014\15 LP\National Vision LP Public_02.pptx Reconciliation of Net Income to Adjusted Net Income Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September September September September Dollars in thousands 28, 2019 29, 2018 28, 2019 29, 2018 Net income $ 1,192 $ 5,171
Slide 21: Reconciliation of Diluted EPS to Adjusted Diluted EPS
NACRE2014\15 LP\National Vision LP Public_02.pptx Reconciliation of Diluted EPS to Adjusted Diluted EPS Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September September September September Shares in thousands 28, 2019 29, 2018 28, 2019 29, 2018 Diluted EPS $ 0.01 $ 0.06
Slide 22: Reconciliation of SG&A to Adjusted SG&A
NACRE2014\15 LP\National Vision LP Public_02.pptx Reconciliation of SG&A to Adjusted SG&A Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September 28, September 29, September 28, September 29, Dollars in thousands 2019 2018 2019 2018 SG&A $ 190,290 44.1% $ 185,028 47.8% $
Slide 23: Reconciliation of GAAP to Non-GAAP Financial Measures Footnotes
NACRE2014\15 LP\National Vision LP Public_02.pptx Reconciliation of GAAP to Non-GAAP Financial Measures Footnotes (a) Non-cash charges related to stock-based compensation programs, which vary from period to period depending on the timing of awards and performance vesting conditions. (b) Reflects wri
Slide 24: Adjusted Comparable Store Sales Growth Primer
NACRE2014\15 LP\National Vision LP Public_02.pptx Adjusted Comparable Store Sales Growth Primer NATIONAL VISION HOLDINGS, INC. 24
Slide 25: Unearned Revenue Primer
NACRE2014\15 LP\National Vision LP Public_02.pptx Unearned Revenue Primer NATIONAL VISION HOLDINGS, INC. 25
Slide 26: Check out some of our latest commercials: National Vision Commercials
NACRE2014\15 LP\National Vision LP Public_02.pptx Check out some of our latest commercials: National Vision Commercials NATIONAL VISION HOLDINGS, INC. 26
National Vision Holdings — Q3 2019 Earnings Presentation on 6ix