Vontier Corporation · NYSE:VNT
Vontier — Q3 2020 Earnings Presentation
18 slides from Vontier's earnings presentation, Oct 29, 2020
Slide 1: Third Quarter 2020 Earnings Release
Third Quarter 2020 Earnings Release October 29, 2020 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to statements regarding Vontier Corporation’s (the “Company’s”) business and acquisition opportunities, anticipated revenu
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains references to “core revenue growth,” "core operating margin expansion," “free cash flow,” “adjusted free cash flow,” “adjusted free cash flow conversion,” “adjusted operating profit,” “adjusted operating margin,” “adjusted net earnings,” "adjust
Slide 4: Q3 Summary
Q3 Summary Strong double-digit earnings growth reflects resiliency of portfolio – Adj. EPS $0.80, +25% on strong fall-through – Adj. FCF of $218M, +89% and Adj. FCF conversion of 162% driven by strong working capital productivity – Adj. Core OMX +220 bps reflecting strong GMX and a measured reductio
Slide 5: Q3 2020 Financial Performance
Q3 2020 Financial Performance Summary of Key Financial Items Revenue Adj. Operating Profit Adj. Diluted EPS ($M) Margin (%) $0.80 $714 $747 24.1% $0.64 21.2% Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 • GAAP EPS of $0.84 • Core revenue growth: 5.6% • OP Margins +220 bps • Adj. EPS of $0.80, inc
Slide 6: Q3 2020 Free Cash Flow Detail
Q3 2020 Free Cash Flow Detail Adj. Free Cash Flow ($M) and FCF Conversion (%) • Q3 2020: 162% – Free Cash Flow: $233M, +68%; conversion of 165% of GAAP Net Earnings 107% $218 – Adj. Free Cash Flow: $218M, +89%; conversion of 162% of Adj. Net Earnings $115 • 2020 YTD: QTD 2019 QTD 2020 – Free Cash Fl
Slide 7: Performance by Platform
Performance by Platform Mobility Technologies Diagnostics & Repair Technologies Revenue Revenue +4.9% +3.3% Core +5.4% • Growth from Core +6.0% • Matco "V" EMV and shaped recovery Mexico as COVID-19 regulatory restrictions eased drivers in GVR $579 $163 $168 • Robust $552 • HGMs most technician impa
Slide 8: Thoughts on Q4 and FY20
Thoughts on Q4 and FY20 Q4 Considerations – Expect core growth of +MSD – Expect adj. core OMX >200 bps, excluding the anticipated impact of restructuring (~$4M - $8M) – ETR ~23% FY20 Considerations – Anticipate core revenue to decline LSD – Expect adj. core OMX >125 bps, excluding the anticipated im
Slide 9: Supplemental Reconciliation Data
Supplemental Reconciliation Data 9 9
Slide 10: Reconciliation of Operating Profit to Adjusted Operating Profit and Margin
RECONCILIATION OF OPERATING PROFIT TO ADJUSTED OPERATING PROFIT AND ADJUSTED OPERATING PROFIT MARGIN Three Months Ended Nine Months Ended $ in millions September 27, 2019 September 25, 2020 September 27, 2019 September 25, 2020 Revenue (GAAP) $ 714.4 $ 746.7 $ 2,028.8 $ 1,889.6 Operating Profit (GAA
Slide 11: Reconciliation of Adjusted Operating Profit Margin Expansion
RECONCILIATION OF ADJUSTED OPERATING PROFIT MARGIN EXPANSION Three Months Ended September 25, 2020 2019 Adjusted Operating Profit Margin (Non-GAAP) 21.2% Core (Non-GAAP) 2.2% Acquisitions and divestitures (Non-GAAP) 0.2% Currency exchange rates (Non-GAAP) 0.5% 2020 Adjusted Operating Profit Margin (
Slide 12: Reconciliation of Net Earnings to Adjusted Net Earnings
RECONCILIATION OF NET EARNINGS TO ADJUSTED NET EARNINGS Three Months Ended Nine Months Ended $ in millions September 27, 2019 September 25, 2020 September 27, 2019 September 25, 2020 Net Earnings (GAAP) $ 121.0 $ 141.0 $ 310.3 $ 205.2 Amortization of acquisition-related intangible assets 7.8 7.3 24.
Slide 13: Reconciliation of Net Earnings Per Share to Adjusted Net Earnings Per Share
RECONCILIATION OF NET EARNINGS PER SHARE TO ADJUSTED NET EARNINGS PER SHARE Three Months Ended Nine Months Ended September 27, 2019 September 25, 2020 September 27, 2019 September 25, 2020 Net Earnings per Share (GAAP) $ 0.72 $ 0.84 $ 1.84 $ 1.22 Amortization of Acquisition-Related Intangible Assets
Slide 14: Reconciliation of Operating Cash Flows to Free Cash Flow and Conversion
RECONCILIATION OF OPERATING CASH FLOWS TO FREE CASH FLOW AND FREE CASH FLOW CONVERSION Three Months Ended Nine Months Ended $ in millions September 27, 2019 September 25, 2020 % Change September 27, 2019 September 25, 2020 % Change Operating Cash Flows (GAAP) $ 148.9 $ 245.8 65.1 % $ 322.3 $ 480.6 4
Slide 15: Reconciliation of Operating Cash Flows to Adjusted Free Cash Flow and Conversion
RECONCILIATION OF OPERATING CASH FLOWS TO ADJUSTED FREE CASH FLOW AND ADJUSTED FREE CASH FLOW CONVERSION Three Months Ended Nine Months Ended $ in millions September 27, 2019 September 25, 2020 % Change September 27, 2019 September 25, 2020 % Change Operating Cash Flows (GAAP) $ 148.9 $ 245.8 65.1 %
Slide 16: Reconciliation of Total Revenue Growth to Core Revenue Growth
RECONCILIATION OF TOTAL REVENUE GROWTH TO CORE REVENUE GROWTH Components of Revenue Growth Three Months Ended September 25, 2020 Nine Months Ended September 25, 2020 Total revenue growth (GAAP) 4.5 % (6.9)% Existing businesses (Non-GAAP) 5.6 % (4.7)% Acquisitions and divestitures (Non-GAAP) (0.5)% (
Slide 17: Reconciliation of Total Revenue Growth to Core Revenue Growth by Platform
RECONCILIATION OF TOTAL REVENUE GROWTH TO CORE REVENUE GROWTH BY PLATFORM Three Months Ended September 25, 2020 Components of Revenue Growth Mobility Technologies Diagnostics & Repair Technologies Total revenue growth (GAAP) 4.9 % 3.3 % Existing businesses (Non-GAAP) 5.4 % 6.0 % Acquisitions and div
Slide 18: Net Leverage Ratio and Reconciliation from Net Earnings to Adjusted EBITDA
NET LEVERAGE RATIO AND RECONCILIATION FROM NET EARNINGS TO EBITDA TO ADJUSTED EBITDA Long-term Debt(1) $ 1,800.0 (less) Cash(2) (203.8) Net Long-term Debt $ 1,596.2 LTM Adjusted EBITDA (Non-GAAP) $ 625.7 Net Leverage Ratio 2.6 (1) On October 9, 2020, the Company drew down $1.8 billion under the Term