Envista Holdings Corporation · NYSE:NVST
Envista — Q1 2023 Earnings Presentation
23 slides from Envista's earnings presentation, May 3, 2023
Slide 1: First Quarter 2023 Earnings Presentation
First Quarter 2023 Earnings Presentation May 3, 2023
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this press release are “forward-looking” statements within the meaning of the federal securities laws. There are a number of important factors that could cause actual results, developments and business decisions to differ materially from those suggest
Slide 3: Overview
Overview Q1 results in line with expectations; expect growth & margins to accelerate throughout 2023 • As anticipated, Q1 results were challenged with core sales* down 2.4% and Adjusted EBITDA margin* of 18.2% • Positioned to achieve full year guide of low single digit core growth and >20% adjusted
Slide 4: Progress on Strategic Priorities
Progress on Strategic Priorities Transforming Envista into a higher growth and higher margin company Priority Results • Specialty Products & Technologies (SPT) grew MSD+ (excluding impact of China / Russia) Accelerate growth through strategic • Spark continues to outperform; delivering core sales gr
Slide 5: Q1 2023: Financial Metrics
Q1 2023: Financial Metrics Performance in line with expectations; Positioned to accelerate growth & margins throughout 2023 Core Sales Growth* -2.4% • Q1 2023 Core Sales Growth* − LSD decline due to regional challenges in China & Russia and slower spending on capital equipment GAAP Diluted EPS $0.25
Slide 6: Specialty Products & Technologies
Specialty Products & Technologies Strong MSD+ growth (ex. China & Russia); Continuing to invest for long-term growth Revenue Adjusted Operating • Orthodontics Core Sales* +3.0% Profit Margin* − Spark continues to outperform; Strong growth across all geographies $410.0 − Traditional Brackets & Wires
Slide 7: Equipment & Consumables
Equipment & Consumables EBS focus drove improvements in operating margins despite top line pressure • Core Sales Growth* Revenue Adjusted Operating − Imaging revenue down DD; driven by deteriorating market conditions for Core Sales* -11.7% Profit Margin* large capital equipment; strong Q1 performanc
Slide 8: Cash Flow & Balance Sheet
Cash Flow & Balance Sheet Strong Balance Sheet – Flexibility to continue transforming portfolio • Balance Sheet Free Cash Flow** Summary ($M) − Ended Q1 with cash balance of >$575 million − Significant financial flexibility for long-term Q1’23 Q1’22 investment and capital deployment Operating cash f
Slide 9: 2023 Full Year Guidance
2023 Full Year Guidance Reiterating full year guidance for core sales growth and adjusted EBITDA margin Guidance Key Metric 2023 Revenue – Core Sales Growth* LSD Adj. EBITDA Margin* >20% Core Sales Growth and Adjusted EBITDA margin expected to accelerate throughout 2023 Note: These forward-looking e
Slide 10: Summary & Key Takeaways
Summary & Key Takeaways Dental is an attractive market with strong secular growth trends Envista is strategically differentiated and has a proven track record of execution Significant opportunity to accelerate growth, improve margins, & create value for patients, customers, employees, and shareholde
Slide 11: Q&A
Q&A 11
Slide 12: Appendix
Appendix 12
Slide 13: Reconciliation of Adjusted Gross Profit
Reconciliation of Adjusted Gross Profit ($ in Millions) Adjusted Gross Profit and Adjusted Gross Margin Three Months Ended March 31, 2023 April 1, 2022 Gross Profit $ 362.7 $ 374.1 Restructuring costs and asset impairments A 1.5 (0.3) Adjusted Gross Profit $ 364.2 $ 373.8 Gross Margin (Gross Profit
Slide 14: Reconciliation of Adjusted Operating Profit
Reconciliation of Adjusted Operating Profit ($ in Millions) Adjusted Operating Profit Three Months Ended March 31, 2023 April 1, 2022 Consolidated Operating Profit $ 72.1 $ 91.5 Amortization of acquisition-related and other intangible assets 27.9 23.5 Restructuring costs and asset impairments A 4.3
Slide 15: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income ($ in Millions) Adjusted Net Income Three Months Ended March 31. 2023 April 1, 2022 Net Income From Continuing Operations $ 43.8 $ 70.4 Amortization of acquisition-related and other intangible assets 27.9 23.5 Restructuring costs and asset impairments A 4.3 3.7
Slide 16: Reconciliation of Adjusted Diluted Earnings Per Share
Reconciliation of Adjusted Diluted Earnings Per Share Adjusted Diluted Earnings Per Share Three Months Ended March 31, 2023 April 1, 2022 Diluted Earnings From Continuing Operations Per Share $ 0.25 $ 0.39 Amortization of acquisition-related and other intangible assets 0.16 0.13 Restructuring costs
Slide 17: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA ($ in Millions) Adjusted EBITDA Three Months Ended March 31, 2023 April 1, 2022 Net Income From Continuing Operations $ 43.8 $ 70.4 Interest expense, net 16.7 5.9 Income taxes 11.9 15.5 Depreciation 8.5 7.8 Amortization of acquisition-related and other intangible as
Slide 18: Reconciliation of Core Sales Growth
Reconciliation of Core Sales Growth1 % Change Three Core Sales Growth 1 Month Period Ended March 31, 2023 vs. Comparable 2022 Consolidated Period Total sales growth (0.7)% Plus the impact of: Acquisitions (3.3)% Currency exchange rates 1.6 % Core sales growth (2.4)% Specialty Products & Technologies
Slide 19: Reconciliation of Operating Cash Flows to Free Cash Flow
Reconciliation of Operating Cash Flows to Free Cash Flow ($ in Millions) Reconciliation of Operating Cash Flows to Free Cash Flow Three Months Ended March 31, 2023 April 1, 2022 Net Operating Cash (Used in) Provided by Investing Activities $ (22.0) $ 5.1 Net Operating Cash (Used in) Provided by Fina
Slide 20: Notes to Reconciliation of GAAP to Non-GAAP Financial Measures
ENVISTA HOLDINGS CORPORATION NOTES TO RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) A We exclude costs incurred pursuant to discrete restructuring plans that are fundamentally different (in terms of the size, strategic nature and planning requirements) from the ongoing productivi
Slide 21: Statement Regarding Non-GAAP Measures
Statement Regarding Non-GAAP Measures Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. Management believes t
Slide 22: Statement Regarding Non-GAAP Measures (Continued)
Statement Regarding Non-GAAP Measures (Continued) The items excluded from the non-GAAP measures set forth above have been excluded for the following reasons: • With respect to Adjusted Gross Profit, Adjusted Operating Profit, Adjusted Net Income, Adjusted Diluted Earnings Per Share and Adjusted EBIT
Slide 23: Thank You
Thank You 23 Confidential: For internal use only.