Envista Holdings Corporation · NYSE:NVST
Envista — Q1 2024 Earnings Presentation
24 slides from Envista's earnings presentation, May 1, 2024
Slide 1: First Quarter 2024 Earnings Presentation
First Quarter 2024 Earnings Presentation May 1, 2024
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation 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 suggeste
Slide 3: Overview
Overview NVST well positioned to accelerate growth, expand margins and transform the portfolio • CEO transition in process → Paul Keel appointed Chief Executive Officer, effective the afternoon of May 1, 2024 • As expected, Q1 results challenged, with core sales* up 0.4% and adjusted EBITDA margin*
Slide 4: CEO Transition – Paul Keel
CEO Transition – Paul Keel Key Qualifications − Successful CEO of a public company (Smiths Group) − Successfully led several global and multi-divisional businesses − Experience in both Medical and Dental markets − Track record of accelerating growth, expanding margins & building stakeholder value −
Slide 5: 2024 Progress on Strategic Priorities
2024 Progress on Strategic Priorities Focus on transforming Envista into a higher growth and higher margin company Priority Results / Focus • Continued strength in orthodontics; Spark grew DD in Q1 Accelerate growth through • Outside North America, Implants delivered HSD+ core sales growth*; Value I
Slide 6: Q1 2024: Financial Metrics
Q1 2024: Financial Metrics Q1 Proved Challenging; Prioritized investments ahead of inflection point Q1 2024 Core Sales Growth* Core Sales Growth* 0.4% − Strong growth in Spark offset by continued weakness in North America Implants and selective GAAP Diluted EPS $0.14 portfolio rationalization in Ima
Slide 7: Specialty Products & Technologies
Specialty Products & Technologies Spark continues to outperform; Margins impacted by Investments for long-term growth Revenue Adjusted Operating • Orthodontics Core Sales* +0.8% Profit Margin* − Spark revenue continues to outperform; Strong growth in both $410.0 $408.7 Europe and North America − Tra
Slide 8: Equipment & Consumables
Equipment & Consumables North America Stabilized and Delivered MSD Core Growth* • Core Sales Growth* Revenue Adjusted Operating − Diagnostics down MSD in the quarter as solid HSD growth in North Core Sales* -0.2% Profit Margin* America was offset by portfolio rationalization and weaker demand global
Slide 9: Cash Flow & Balance Sheet
Cash Flow & Balance Sheet Strong Balance Sheet – Flexibility to continue transforming portfolio Free Cash Flow* Summary ($M) • Free Cash Flow − Delivered $29.3 Million in Free Cash Flow for Q1’24 Q1’23 Q1; Significant improvement vs. PY − Capital expenditures remain focused on driving Operating Cash
Slide 10: 2024 – Key Focus Areas
2024 – Key Focus Areas Prioritize and invest for long-term value creation • Further Accelerate Orthodontic Business − Continue to expand Spark margins − Drive Spark growth • Accelerate Implant Business − Turnaround North America Implants → Return to market growth by end of 2024 − At or above market
Slide 11: Summary & Key Takeaways
Summary & Key Takeaways Dental is an attractive market with strong secular growth trends Envista is strategically differentiated and has a proven track record of execution Significant opportunity to accelerate growth, improve margins, & create value for patients, customers, employees, and shareholde
Slide 12: Q&A
Q&A 12
Slide 13: Appendix
Appendix 13
Slide 14: Reconciliation of Adjusted Gross Profit
Reconciliation of Adjusted Gross Profit ($ in Millions) See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures 14
Slide 15: Reconciliation of Adjusted Operating Profit
Reconciliation of Adjusted Operating Profit ($ in Millions) 15 See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 16: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income ($ in Millions) See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures 16
Slide 17: Reconciliation of Adjusted Diluted Earnings Per Share
Reconciliation of Adjusted Diluted Earnings Per Share See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures 17
Slide 18: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA ($ in Millions) 18 See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 19: Reconciliation of Core Sales Growth
Reconciliation of Core Sales Growth1 1 We use the term “core sales” to refer to GAAP revenue excluding (1) sales from acquired businesses recorded prior to the first anniversary of the acquisition (“acquisitions”), (2) sales from discontinued products and (3) the impact of currency translation. Sale
Slide 20: Reconciliation of Operating Cash Flows to Free Cash Flow
Reconciliation of Operating Cash Flows to Free Cash Flow ($ in Millions) See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures 20
Slide 21: 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 22: 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 23: 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 24: Thank You
Thank You 24