Slide 1: Second Quarter 2024 Financial Results
SECOND QUARTER 2024 FINANCIAL RESULTS AUGUST 7, 2024 NASDAQ: EYE 1
Slide 2: Disclaimer: Forward-Looking Statements
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. These statements include, but are not limited to, sta
Slide 3: We help people see their best to live their best
WE HELP PEOPLE SEE THEIR BEST TO LIVE THEIR BEST. NATIONAL VISION'S BUSINESS HAS BEEN DRIVEN BY THIS BELIEF FOR OVER 30 YEARS. 3
Slide 4: Q2 2024 Highlights (Continuing Operations)
Q2 2024 Highlights (Continuing Operations) $452M +4.6% $0.15 Net Revenue Adj. Diluted EPS1 Net Revenues Growth 2.4% $14M 1.9x Adj. Comp. Store Adj. Operating Net Debt/ Sales Growth1 Income1 Adj. EBITDA1 1- Non-GAAP financial measure; see Appendix for reconciliation to GAAP financial measures 4 4
Slide 5: Building on Strategic Initiatives with New Actions to Accelerate Transformation
Building on Strategic Initiatives with New Actions to Accelerate Transformation New actions accelerating transformation to drive profitable growth: • Initiating review to optimize store fleet for profitability and overall performance • Deepening executive bench with new leadership to bring fresh per
Slide 6: America's Best Eyecare + Eyewear
6 America’s Best Eyecare + Eyewear
Slide 7: Q2 2024 Revenue Drivers (Continuing Operations)
Q2 2024 Revenue Drivers (Continuing Operations) NET REVENUE ($M) Net Revenue $452 • Primarily driven by growth from new store sales and Adjusted Comparable Store Sales Growth, partially offset by converted and closed stores $432 Store count • Opened 14 AB stores, 3 EGW stores and Closed 1 AB store a
Slide 8: Q2 2024 Results (Continuing Operations)
Q2 2024 Results (Continuing Operations) ADJUSTED OPERATING INCOME ($M)1 Costs applicable to revenue as percentage of net revenue increased 110 bps to 42.9% vs. Q2 2023: • Gross margin decrease of ~110 bps driven primarily by $12.4 $14.1 decrease in eyeglass revenues offset by increased eye exam reve
Slide 9: Q2 2024 YTD Results (Continuing Operations)
Q2 2024 YTD Results (Continuing Operations) NET REVENUE ($M) Net Revenue $935 • Increased 4.2% compared with the same period of 2023 • Driven by new stores and 1.3% in Adjusted Comparable Store $897 Sales Growth1 and the effect of unearned revenue, partially offset by converted and closed stores Q2
Slide 10: Q2 2024 Capital Structure and Cash Flow Highlights
Q2 2024 Capital Structure and Cash Flow Highlights (Continuing Operations) Strong Liquidity Position • $473 million of liquidity at end of Q2, including cash balance of $180 million • Net debt to Adjusted EBITDA1: 1.9x • No borrowings under our revolving credit facility • Available liquidity allows
Slide 11: 2024 Capital Allocation Priorities
2024 Capital Allocation Priorities Invest in Growth Expecting capital expenditures of $110 - $115 Million for new store openings and investments in technology Debt Structure Actively monitoring for future opportunistic actions and other potential strategies given pending 2025 maturity of convertible
Slide 12: Outlook
Outlook The fiscal 2024 outlook information provided in the tables that follow include 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 forward-looking non-GAAP meas
Slide 13: 1H Fiscal 2024 Discontinued Operations
1H Fiscal 2024 Discontinued Operations 1H 2024 Expected Effect 1Q 2024 2Q 2024 1H 2024 as of May 8, 2024 Actual Actual Actual Revenue Walmart Vision Center ~$18 M $18 M - $18 M AC Lens ~$122 M $60 M $54 M $114 M Total Walmart Vision Center & ~$140 M $78 M $54 M $132 M AC Lens Revenue Adjusted Operat
Slide 14: Revised Fiscal 2024 Outlook
Revised Fiscal 2024 Outlook Prior Total Company Prior Continuing Updated Continuing Fiscal 2024 Outlook Operations Operations (as of May 8, 2024) Fiscal 2024 Outlook* Fiscal 2024 Outlook** (as of May 8, 2024) (As of August 7, 2024) New Stores 65 - 70 65-70 Adjusted Comparable Store Sales Growth1 2.0
Slide 15: Appendix
Appendix 15
Slide 16: Quarterly Financial Historical Overview (Continuing Operations)
Quarterly Financial Historical Overview (Continuing Operations) (Preliminary and Unaudited) NET REVENUE ($M) ADJUSTED COMPARABLE STORE SALES GROWTH (%)1 6.3% $482.8 $464.8 4.7% $451.7 $438.8 $431.8 $421.0 2.4% 1.3% 1.1% 0.4% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 ADJUSTED OPERAT
Slide 17: Historical Adjusted Comparable Store Sales Growth & Drivers
Historical Adjusted Comparable Store Sales Growth & Drivers ADJUSTED COMPARABLE STORE SALES GROWTH Y/Y (%)1 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 6.3% 4.7% 2.4% 1.3% 1.1% 0.4% -2.0% -7.1% -7.8% -12.4% Q1 ’22 Q2 ’22 Q3 ’22 Q4 ’22 Q1 ’23 Q2 ’23 Q3 ’23 Q4 ’23 Q1 ’24 Q2 ’
Slide 18: Capital Structure and Cash Flow
Capital Structure and Cash Flow Amounts per Q2 2024 Capital Structure ($M) Debt Less: Deferred Balance % of Amount Financing Costs Sheet Total Coupon Maturity First Lien - Term A Loans $ 142.5 $ (1.0) $ 141.5 31 % Term SOFR + 1.50% 6/13/2028 First Lien - Revolving Loans1 — — — — % Term SOFR + 1.50%
Slide 19: Consolidated Financial Results (Unaudited)
Consolidated Financial Results (Unaudited) Three Months Ended Six Months Ended Dollars and shares in thousands, except Earnings (Loss) Per Share June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Revenue: Net product sales $ 361,967 $ 352,180 $ 750,050 $ 732,333 Net sales of services and plans 89
Slide 20: Recast Consolidated Financial Results (Preliminary and Unaudited)
Recast Consolidated Financial Results (Preliminary and Unaudited) Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended Dollars and shares in thousands, except Earnings (Loss) Per Share April 1, 2023 July 1, 2023 September 30, 2023 December 30, 2023 March 30,
Slide 21: Reconciliation of Adjusted Operating Income to Net Income (Loss)
Reconciliation of Adjusted Operating Income (Loss) from Continuing Operations to Net Income (Loss) (Preliminary and Unaudited) Three Months Ended Six Months Ended April 1, July 1, September December March 30, June 29, July 1, June 29, Dollars in thousands 2023 2023 30, 2023 30, 2023 2024 2024 2023 2
Slide 22: Reconciliation of Adjusted Diluted EPS to Diluted EPS
Reconciliation of Adjusted Diluted EPS from Continuing Operations to Diluted EPS (Preliminary and Unaudited) Three Months Ended Six Months Ended April 1, July 1, September December March 30, June 29, July 1, June 29, Shares in thousands, except per share amounts 2023 2023 30, 2023 30, 2023 2024 2024
Slide 23: Reconciliation of Adjusted EBITDA to Net Loss
Reconciliation of Adjusted EBITDA from Continuing Operations to Net Loss (Preliminary and Unaudited) Twelve Months Ended Dollars in thousands June 29, 2024 Total net revenue $ 1,794,300 Net loss $ (81,225) Loss from discontinued operations, net of tax (76,832) Loss from continuing operations, net
Slide 24: Reconciliation of Adjusted SG&A to SG&A
Reconciliation of Adjusted SG&A from Continuing Operations to SG&A from Continuing Operations (Unaudited) Three Months Ended Dollars in thousands July 1, 2023 June 29, 2024 SG&A from continuing operations $ 222,924 $ 231,353 Stock-based compensation expense (a) 5,172 4,750 ERP and CRM implementati
Slide 25: Reconciliation of Adjusted Operating Income from Discontinued Operations
Reconciliation of Adjusted Operating Income (Loss) from Discontinued Operations to Loss from Discontinued Operations, Net of Tax (Unaudited) Three Months Ended Six Months Ended Dollars in thousands March 30, 2024 June 29, 2024 June 29, 2024 Total net revenue from discontinued operations $ 78,112 $ 5
Slide 26: 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 the extinguishment loss related to the repurchase of $1
Slide 27: Reconciliation of Adjusted Comparable Stores Sales Growth
Reconciliation of Adjusted Comparable Stores Sales Growth from Continuing Operations (Unaudited) Comparable store sales growth from continuing operations (a) Three Months Three Months Six Months Six Months Ended June 29, Ended July 1, Ended June 29, Ended July 1, 2024 2023 2024 2023 2024 Outlook (b)
Slide 28: 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 29: Unearned Revenue Primer
Unearned Revenue Primer 29 29
Slide 30: 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 30