National Vision Holdings, Inc. · NASDAQ:EYE
National Vision — Q2 2023 Earnings Presentation
26 slides from National Vision's earnings presentation, Aug 10, 2023
Slide 1: Q2 2023 Earnings Presentation
Q2 2023 ” = = a ® oO & ) = © & Le August 10, 2023
Slide 2: Disclaimer
Disclaimer Forw ard-Looking Statements This presentation contains forward-looking statements w ithin 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. These statements include, but are not limited to, s
Slide 3: Today's Presenters
Today’s Presenters Q2 2023 Q2 2023 Financial Review Highlights and 2023 Outlook Reade Fahs Melissa Rasmussen Chief Executive Officer Chief Financial Officer and President 3 3
Slide 4: Q2 2023 Highlights
Q2 2023 Highlights Change vs Amount Q2 2022 Net Revenue $525.3 million 3.1% Adjusted Operating Income1 $16.4 million (40.8)% Adjusted Diluted EPS1 $0.17 (19.1)% ❖ Q2 2023 financial results largely in line with Company’s expectations ❖ Adjusted Comparable Store Sales Growth1: 1.0% vs. (12.4)% in Q2 2
Slide 5: Advancing Strategic Initiatives
Advancing Strategic Initiatives • Recruiting & Retention: On track for continued improvement in retention and strong recruiting year aided by the addition of increased flexible schedule Significantly Expand options available for Optometrists Exam Capacity • Remote: Deployed Remote capabilities in
Slide 6: Remain Focused on Path Ahead
Remain Focused on Path Ahead ❖ As of February 23, 2024, will no longer operate 229 Vision Centers in select Walmart locations nor providing other optometric services for Walmart in California ❖ As of June 30, 2024, will no longer provide wholesale distribution and e- commerce contact lens services p
Slide 7: Q2 2023 Financial Update
Q2 2023 Financial Update — Vision
Slide 8: Q2 2023 Revenue Drivers
Q2 2023 Revenue Drivers Net Revenue ($M) Total Store Count ❖ Net revenue increased 3.1% vs. Q2 2022 primarily due to: • Growth from new store sales and 3.1% Adjusted Comparable Store Sales increase Growth1 of 1.0% above Q2 2022 • Negatively impacted by timing of unearned revenue by 0.9% ❖ 5.1% incre
Slide 9: Q2 2023 Results
Q2 2023 Results Net Revenue ($M) ❖ Net revenue increased 3.1% vs. Q2 2022 primarily due to: • Growth from new store sales and increase in Adjusted Comparable Store Sales Growth 1 of 1.0% over prior year • Net revenue negatively impacted by timing of unearned 3.1% revenue by 0.9% increase ❖ Costs app
Slide 10: Q2 2023 Year-to-Date Results
Q2 2023 Year-to-Date Results Net Revenue ($M) ❖ Net revenue increased 4.9%vs. Q2 2022 primarily due to: • Growth from new store sales, Adjusted Comparable Store Sales Growth1 of 0.9% above prior year, and higher revenue from AC Lens business. Net revenue was 4.9% positively impacted by timing of une
Slide 11: Capital Structure and Cash Flow Highlights
Capital Structure and Cash Flow Highlights ❖ Strong liquidity position • $548M of liquidity at end of Q2, including a cash balance of $255M • Net debt to TTM Adjusted EBITDA 1: 1.9x • No borrowings outstanding under our revolving credit facility ❖ Share repurchase program • Repurchased 1.1M shares o
Slide 12: Fiscal 2023 Outlook
Fiscal 2023 Outlook The fiscal 2023 outlook information provided in the table on the following slide includes Adjusted Operating Income and Adjusted Diluted EPS guidance, which are non-GAAP financial measures management uses in measuring performance. The Company is not able to reconcile these forwar
Slide 13: Fiscal 2023 Outlook
Fiscal 2023 Outlook Based on its financial results for the six months ended July 1, 2023, and outlook for the remainder of this fiscal year, National Vision is reaffirming its fiscal-2023 guidance for certain of its key operating metrics as provided on May 11, 2023, and as referenced in the below ta
Slide 14: Appendix
Appendix 14 14
Slide 15: Future Whitespace Opportunity
Future Whitespace Opportunity CURRENT STORE FOOTPRINT OF …SUPPORTED BY STRONG AMERICA’S BEST AND EYEGLASS WORLD… FUTURE STORE POTENTIAL 2,150+ Brand # of Stores # of States America’s Best 926 32 Eyeglass World 143 23 1,069 Current Potential Note: Store count as of July 1, 2023 Significant whitespace
Slide 16: Q2 2023 Consolidated Financial Results (Unaudited)
Q2 2023 Consolidated Financial Results (Unaudited) Three Months Ended Six Months Ended Dollars and shares in thousands, except Earnings Per Share July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Revenue: Net product sales $ 432,925 $ 421,600 $ 897,686 $ 854,853 Net sales of services and plans 92,
Slide 17: Reconciliation of Adjusted Operating Income to Net Income
Reconciliation of Adjusted Operating Income to Net Income (Unaudited) Three Months Ended Six Months Ended Dollars in thousands July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Net income $ 5,614 $ 9,734 $ 23,884 $ 39,881 Interest expense (income), net 1,836 3,963 6,703 (181) Income tax provision
Slide 18: Reconciliation of Adjusted Comparable Stores Sales Growth
Reconciliation of Adjusted Comparable Stores Sales Growth (Unaudited) Comparable store sales growth (a) Three Months Three Months Six Months Six Months Ended July 1, Ended July 2, Ended July 1, Ended July 2, 2023 2022 2023 2022 2023 Outlook (b) Owned & Host segment America’s Best 1.8 % (13.0)% 1.8 %
Slide 19: Capital Structure and Cash Flow
Capital Structure and Cash Flow Less: Deferred Amounts Q2 2023 Capital Structure ($M) Debt Financing per Balance % of Amount Costs Sheet Total Coupon Maturity First Lien - Term A Loans $ 150.0 $ (1.2) $ 148.8 26 % Term SOFR + 1.75% 6/13/2028 First Lien - Revolving Loans 1 — — — —% Term SOFR + 1.75%
Slide 20: Reconciliation of Adjusted EBITDA to Net Income
Reconciliation of Adjusted EBITDA to Net Income (Unaudited) Three Months Ended Six Months Ended Twelve Months Ended Dollars in thousands July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 July 1, 2023 Net income $ 5,614 $ 9,734 $ 23,884 $ 39,881 $ 26,125 Interest expense (income), net 1,836 3,963 6
Slide 21: Reconciliation of Adjusted Diluted EPS to Diluted EPS
Reconciliation of Adjusted Diluted EPS to Diluted EPS (Unaudited) Three Months Ended Six Months Ended Shares in thousands July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Diluted EPS $ 0.07 $ 0.12 $ 0.30 $ 0.47 Stock-based compensation expense (a) 0.07 0.05 0.12 0.08 Asset impairment (b) 0.01 0.0
Slide 22: Reconciliation of Adjusted SG&A to SG&A
Reconciliation of Adjusted SG&A to SG&A (Unaudited) Three Months Ended Six Months Ended July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Dollars in thousands SG&A $ 243,971 $ 227,829 $ 493,893 $ 456,383 Stock-based compensation expense (a) 5,473 3,638 9,788 7,372 Other (j) 489 390 476 2,095 Adjus
Slide 23: Adjusted Comparable Store Sales Growth Primer
Adjusted Comparable Store Sales Growth Primer What is Adjusted Comparable Store Sales Growth? • Calculated using net revenue on a cash-basis • Excludes the impact of unearned and deferred revenue Why use Adjusted Comparable Store Sales Growth? • Provides a clear view of the Company’s current operati
Slide 24: Reconciliation of Non-GAAP to GAAP Financial Measures Footnotes
Reconciliation of Non-GAAP to 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 write-off of primarily property, equipment and lease-re
Slide 25: Unearned Revenue Primer
Unearned Revenue Primer 25 25
Slide 26: Check out some of our latest commercials
Check out some of our latest commercials: National Vision Commercials Check out our video demonstrating a remote exam: Remote Care with National Vision 26 26
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