Varex Imaging Corporation · NASDAQ:VREX
Varex Imaging — Q1 FY2021 Earnings Presentation
21 slides from Varex Imaging's earnings presentation, Feb 4, 2021
Slide 1: Q1 FY21 Earnings Presentation
Solutions in Sight™ Q1 FY21 Earnings Presentation February 4, 2021 Proprietary and Confidential Information
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: Varex At-A-Glance
VAREX At-A-GLANCE Successful Strong Customer Manufacturing “Making the invisible visible” Innovation Relationships Scale & Know-How • +70 years of • Majority of medical • One of the largest innovation OEMs are global customers manufacturers of X- • Technology break ray components throughs in CT • La
Slide 4: Q1 FY21 Results
Q1 FY21 Results Non-GAAP Non-GAAP Revenue Cash Gross Margin* EPS* $177M $106M 34% $0.08 Sequential recovery in Medical & Industrial segments Cost reductions & favorable product mix led to improved margins CT demand remains strong globally * Non-GAAP. For a reconciliation to the most directly c
Slide 5: Q1 FY21 Sales Trends
Q1 FY21 Sales Trends CT Mammography Radiography & Fluoroscopy Others Oncology Industrial Dental 5
Slide 6: Emerging Market Update
Emerging Market Update Capture CT Share in China Chinese CT Implementation Schedule er t om FY18 FY19 FY20 FY21 FY22 FY23 ec Varex estimates China will need 25,000 oj st Pr Cu A 1 B new CT systems over a 10-year period C A 2 B C A 3 B C Customer discussions indicate up to 4 A B 10,000 CT system inst
Slide 7: Positioned for Growth
Positioned for Growth Long Term Mid Term • New technologies & innovative products − Photon counting detectors Short Term • Governments & − Nanotubes medical facilities likely • Greater healthcare to boost health care demand spending, including − Demographics • Strong global CT X-ray imaging demand −
Slide 8: Varex 2.0
VAREX 2.0 New Capital New Operating New Products & Structure Structure Technologies • $300M of senior • Improve gross Medical secured notes margin • Z Platform • Reduce operating • Photon Counting • $200M of expenses/inventory • Nanotubes convertible notes Industrial • Up to $100M • New verticals ca
Slide 9: Q1 FY21 Revenue Details
Q1 FY21 Revenue Details Segment Mix Geographic Mix $38 $57 $62 $139 $58 Medical Industrial Americas EMEA APAC Revenue, $M Q121 Q420 Q320 Q220 Q120 Revenue, $M Q121 Q420 Q320 Q220 Q120 Medical 139 136 138 155 156 Americas 62 64 59 63 70 Industrial 38 34 34 42 45 EMEA 58 55 47 64 65 APAC 57 51 66 71 6
Slide 10: Quarterly Results - GAAP
Quarterly Results - GAAP $ in Millions, except per share data Q1 FY21 Q4 FY20 Q1 FY20 Revenue $177 $170 $200 Gross Margin 32% 27% 31% $51 $58 $57 Operating Expenses 29% 34% 28% $6 $(13) $5 Operating Income 3% (8)% 2% Net Earnings $(6) $(26) $(1) EPS $(0.16) $(0.68) $(0.03) 10 Proprietary and Confide
Slide 11: Quarterly Results - Non-GAAP
Quarterly Results - Non-GAAP* $ in Millions, except per share data Q1 FY21 Q4 FY20 Q1 FY20 Revenue $177 $170 $200 Gross Margin (Non-GAAP) 34% 28% 33% $46 $48 $51 Operating Expenses (Non-GAAP) 26% 28% 25% $14 $(1) $15 Operating Income (Non-GAAP) 8% 0% 8% Net Earnings (Non-GAAP) $3 $(2) $8 EPS (Non-GA
Slide 12: Select Balance Sheet Data
Select Balance Sheet Data $ in Millions Q1 FY21 Q4 FY20 Q1 FY20 Assets Cash and Cash Equivalents $106 $101 $30 Accounts Receivable, net $121 $124 $123 Inventories $270 $272 $269 Total Assets $1,137 $1,140 $1,068 Liabilities Accounts Payable $68 $73 $73 Long-Term Debt, net $460 $455 $381 Total Liabil
Slide 13: Select Debt and Cash Flow Data
Select Debt and Cash Flow Data $ in Millions Q1 FY21 Q4 FY20 Q1 FY20 Debt Gross Debt $514 $511 $386 (Ratings: Moody’s B2 / S&P B) Net Debt1 $408 $411 $356 Adjusted EBITDA2 Adjusted EBITDA (QTD) $22 $4 $24 Cash Performance Cash Flow from Operations $7 $(12) $23 Capital Expenditures $4 $4 $8 Cash Inte
Slide 14: Outlook Q2 FY21
Outlook Q2 FY21 Guidance Non-GAAP Revenues, $M $180 - $200 EPS Per Diluted Share $0.05 - $0.25 Assumptions Non-GAAP Gross Margin 33% - 35% Operating Expenses, $M $44 - $45 Interest Expense, $M $8M 14
Slide 15: Q&A
Solutions in Sight™ Q&A Proprietary and Confidential Information
Slide 16: Non-GAAP Reconciliation
Solutions in Sight™ Non-GAAP Reconciliation Proprietary and Confidential Information
Slide 17: Reconciliation Between GAAP and Non-GAAP Financial Measures (Unaudited)
Reconciliation Between GAAP and Non–GAAP Financial Measures (Unaudited) Three Months Ended (In millions, except per share amounts) January 1, 2021 January 3, 2020 GROSS PROFIT RECONCILIATION Revenues $ 177.1 $ 200.1 Gross profit $ 57.2 $ 61.1 Amortization of intangible assets 2.2 2.5 Restructuring c
Slide 18: Reconciliation Between GAAP and Non-GAAP Financial Measures (Unaudited)
Reconciliation Between GAAP and Non–GAAP Financial Measures (Unaudited) Three Months Ended (In millions, except per share amounts) January 1, 2021 January 3, 2020 OPERATING EARNINGS RECONCILIATION Operating earnings $ 6.1 $ 4.6 Amortization of intangible assets (includes amortization impacts to cost
Slide 19: Reconciliation Between GAAP and Non-GAAP Financial Measures (Unaudited)
Reconciliation Between GAAP and Non–GAAP Financial Measures (Unaudited) Three Months Ended (In millions, except per share amounts) January 1, 2021 January 3, 2020 NET LOSS AND DILUTED NET LOSS PER SHARE RECONCILIATION Net loss attributable to Varex $ (6.4) $ (1.3) Total earnings before taxes adjustm
Slide 20: 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 21: Solutions in Sight
\ if VAREX \ Solutions in Sight™