Varex Imaging Corporation · NASDAQ:VREX
Varex Imaging — Q1 2023 Earnings Presentation
22 slides from Varex Imaging's earnings presentation, Jan 31, 2023
Slide 1: Q1 FY23 Earnings Presentation
Solutions in Sight® Q1 FY23 Earnings Presentation January 31, 2023
Slide 2: Forward Looking Statements / Non-GAAP Measures
Forward Looking Statements / Non-GAAP Measures Forward Looking Statements Certain statements in this supplement contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward looking statements incl
Slide 3: Q1 FY23 Results
Q1 FY23 Results Non-GAAP Non-GAAP Cash, Cash Equiv., Revenue Gross Margin* EPS* & Mkt. Sec.** $206M $108M 32% $0.21 ➢ Demand as expected during the quarter ➢ Supply chain more in balance with demand ➢ Product mix pressured margins * Non-GAAP. For a reconciliation to the most directly comparable GAAP
Slide 4: Q1 FY23 Sequential Performance
Q1 FY23 Sequential Performance Revenue Gross Margin - Non-GAAP Adjusted EBITDA 33% 32% $231 $36 $25 $206 -11% -130bps -29% Q4FY22 Q1FY23 Q4FY22 Q1FY23 Q4FY22 Q1FY23 Diluted EPS - Non-GAAP Cash, Cash Equiv. & Mkt. Sec. $0.42 $113 $108 $0.21 -50% -4% Q4FY22 Q1FY23 Q4FY22 Q1FY23 Note: $millions except
Slide 5: Demand Environment
Demand Environment CT Mammography Radiography & Fluoroscopy Others Oncology Industrial Dental * Based on 1Q23 sales compared to five quarter average trend 5
Slide 6: Q1 FY23 Revenue Details
Q1 FY23 Revenue Details Segment Mix Geographic Mix ($ in millions) ($ in millions) $46 $67 $75 $160 $64 Medical Industrial Americas EMEA APAC Revenue, $M Q1 23 Q4 22 Q3 22 Q2 22 Q1 22 Revenue, $M Q1 23 Q4 22 Q3 22 Q2 22 Q1 22 Americas 75 80 64 68 61 Medical 160 181 167 170 156 EMEA 64 74 70 70 67 In
Slide 7: Quarterly Results - GAAP
Quarterly Results - GAAP $ in Millions, except per share data Q1 FY23 Q4 FY22 Q1 FY22 Revenue $206 $231 $199 Gross Margin 31% 32% 33% $50 $50 $51 Operating Expenses 24% 22% 26% $13 $25 $14 Operating Income 6% 11% 7% Net Earnings $3 $13 $1 EPS, diluted $0.08 $0.32 $0.03 Avg. shares, diluted 40.6 40.9
Slide 8: Quarterly results – Non-GAAP
Quarterly results – Non-GAAP* $ in Millions, except per share data Q1 FY23 Q4 FY22 Q1 FY22 Revenue $206 $231 $199 Gross Margin (Non-GAAP) 32% 33% 34% $47 $47 $44 Operating Expenses (Non-GAAP) 23% 20% 22% $18 $29 $23 Operating Income (Non-GAAP) 9% 13% 11% Net Earnings (Non-GAAP) $8 $17 $10 EPS, dilut
Slide 9: Select Balance Sheet Data
Select Balance Sheet Data $ in Millions Q1 FY23 Q4 FY22 Q1 FY22 Assets Cash, Cash Equiv. and Mkt. Sec. $108 $113 $158 Accounts Receivable, net $158 $173 $127 Inventories $320 $303 $248 Total Assets $1,181 $1,184 $1,139 Liabilities Accounts Payable $86 $78 $72 Debt, net $443 $414 $437 Total Liabiliti
Slide 10: Select Debt and Cash Flow Data
Select Debt and Cash Flow Data $ in Millions Q1 FY23 Q4 FY22 Q1 FY22 Debt Gross Debt $450 $450 $480 (Ratings: Moody’s B2 / S&P B+) Net Debt1 $342 $337 $322 Adjusted EBITDA2 Adjusted EBITDA $25 $36 $30 Cash Performance Cash Flow from Operations ($4) $17 $11 Capital Expenditures ($6) ($10) ($4) Cash I
Slide 11: Outlook Q2 FY23
Outlook Q2 FY23 Guidance Non-GAAP Revenues, $M $205 - $225 EPS Per Diluted Share $0.05 - $0.25 Assumptions Non-GAAP Gross Margin 31% - 32% Operating Expenses, $M $48 - $49 11
Slide 12: Q&A
W VAREX MA G Solutions in Sight® VREX Nasdaq isted Pf Nasdaq Q&A
Slide 13: Non-GAAP Reconciliation
Solutions in Sight® Non – GAAP Reconciliation 13
Slide 14: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended December 30, December 31, (In millions, except per share amounts) 2022 2021 GROSS PROFIT RECONCILIATION Revenues, net $ 205.6 $ 198.8 Gross profit $ 63.3 $ 64.8 Amortization of intangible assets 1.8 1.8 Non-GA
Slide 15: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended December 30, December 31, (In millions, except per share amounts) 2022 2021 SELLING, GENERAL AND ADMINISTRATIVE EXPENSE RECONCILIATION Selling, general and administrative $ 30.3 $ 33.1 Amortization of intangib
Slide 16: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended December 30, December 31, (In millions, except per share amounts) 2022 2021 OPERATING INCOME RECONCILIATION Operating income $ 13.0 $ 14.0 Amortization of intangible assets (includes amortization impacts to co
Slide 17: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended December 30, December 31, (In millions, except per share amounts) 2022 2021 INCOME (LOSS) BEFORE TAXES RECONCILIATION Income (loss) before taxes $ 5.4 $ 3.3 Total operating earnings adjustments 4.7 8.7 Convert
Slide 18: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended (In millions, except per share amounts) December 30, December 31, 2022 2021 DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING RECONCILIATION GAAP weighted average common shares - dilutive 40.6 43.9 Dilution offset f
Slide 19: Effect of Convertible Note Hedge and Warrants on Non-GAAP Diluted Share count
Effect of Convertible Note Hedge and Warrants on Non-GAAP Diluted Share count Impact of Warrants and Convertible Note Hedge at Various Share Prices Shares added back for non- GAAP related to convertible Impact of Warrants on GAAP note hedge Share Price* Diluted Shares Non-GAAP Diluted Shares $20.00
Slide 20: Illustrative Impact of ASU 2020-06
Illustrative Impact of ASU 2020-06 Quarterly ASU 2020-06 Share Count Illustration GAAP NON-GAAP* Net Income before Incremental Dilutive Net Income before effect of Add-back of After-tax Shares for EPS effect of Add-back of After-tax Incremental Dilutive Convertible Notes ($M) Interest Expense Calcul
Slide 21: Discussion of Non – GAAP Financial Measures
Discussion of Non – GAAP Financial Measures This presentation includes non-GAAP financial measures derived from our Condensed Consolidated Statements of Operations. These measures are not presented in accordance with, nor are they a substitute for U.S. generally accepted accounting principles, or GA
Slide 22: Solutions in Sight®
Solutions in Sight®