Envista Holdings Corporation · NYSE:NVST
Envista — Q4 2019 Earnings Presentation
22 slides from Envista's earnings presentation, Jan 30, 2020
Slide 1: Fourth Quarter 2019 Earnings Presentation
Fourth Quarter 2019 Earnings Presentation January 30, 2020
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: Envista Overview & Priorities
Envista Overview & Priorities Positioned to accelerate growth with a leading position in some of the most attractive segments of Dental Significant opportunity to expand margins through operating leverage, productivity initiatives and improving portfolio mix Flexible capital structure and strong cas
Slide 4: Fourth Quarter 2019: Revenue and Adjusted Diluted EPS
Fourth Quarter 2019: Revenue and Adjusted Diluted EPS Revenue Adjusted Diluted $759 -5.0% $721 EPS* $0.59 ($ mn) Core Sales* -3.5% Discontinued Products -1.0% $0.52 FX Impact -0.5% Q4 2018 Q4 2019 Q4 2018 Q4 2019 *Adjusted diluted EPS and core sales are non-GAAP financial measures. For a reconciliat
Slide 5: Fourth Quarter 2019: Adjusted Operating Profit & Gross Margin
Fourth Quarter 2019: Adjusted Operating Profit & Gross Margin Adjusted Operating Gross Margin Q4 2018: 55.6% Profit Margin* Q4 2019: 54.0% -90bps 16.6% 15.7% SG&A (as a % of Revenue) Q4 2018: 41.0% Q4 2019: 38.3% ~$9M impact of incremental corporate costs in Q4’19 R&D (as a % of Revenue) Q4 2018: 5.
Slide 6: Free Cash Flow
Free Cash Flow Free Cash Flow Free Cash Flow* $328 $321 / Net Income 148% 142% ($ mn) 2018 2019 2018 2019 * Free cash flow is a non-GAAP financial measure. For a reconciliation to the most directly comparable GAAP measure, please see Appendix. 6
Slide 7: Specialty Products & Technologies
Specialty Products & Technologies Revenue Adjusted Operating Profit -5.5% Margin* $347 $329 20.3% ($ mn) Core Sales* -3.5% +40bps Discontinued Products -1.0% 19.9% FX Impact -1.0% Q4 2018 Q4 2019 Q4 2018 Q4 2019 * Adjusted operating profit margin and core sales are non-GAAP financial measures. For a
Slide 8: Equipment & Consumables
Equipment & Consumables $412 Revenue Adjusted Operating Profit $392 -5.0% Margin* ($ mn) 16.7% Core Sales* -3.5% Discontinued Products -0.5% 15.7% +100bps FX Impact -1.0% Q4 2018 Q4 2019 Q4 2018 Q4 2019 * Adjusted operating profit margin and core sales are non-GAAP financial measures. For a reconcil
Slide 9: Guidance
Guidance 9
Slide 10: 2020 Guidance Based on Adjusted EPS
2020 Guidance Based on Adjusted EPS +HSD high end $1.79 ($0.02) $1.63 – $1.73 ($0.12) $0.04 - $0.14 ($0.06) $1.61 2019 Adj. Full Year of 2019 Adj. FX / Share count / 2020 Adj. Full Year +LSD Core EPS* Public EPS Other EPS Interest Sales Growth Company (Annualized) Expense Expenses * Adjusted EPS is
Slide 11: © Envista
© Envista
Slide 12: Appendix
Appendix
Slide 13: Reconciliation of Adjusted Operating Profit
Reconciliation of Adjusted Operating Profit (Unaudited) ($ millions) See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures 13
Slide 14: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income (Unaudited) ($ millions) See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures 14
Slide 15: Reconciliation of Adjusted Diluted Earnings Per Share
Reconciliation of Adjusted Diluted Earnings Per Share (Unaudited) See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures 15
Slide 16: Reconciliation of Adjusted Diluted Shares Outstanding
Reconciliation of Adjusted Diluted Shares Outstanding (Unaudited) See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures 16
Slide 17: Reconciliation of Forecasted Adjusted Diluted Earnings Per Share
Reconciliation of Forecasted Adjusted Diluted Earnings Per Share (Unaudited) These forward-looking estimates do not reflect future gains and charges that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance, such as certain future gains or losses o
Slide 18: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBIDTA (Unaudited) ($ millions) See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures 18
Slide 19: Reconciliation of Core Sales Growth
Reconciliation of Core Sales Growth (Unaudited) 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 translat
Slide 20: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow (Unaudited) ($ millions) 20
Slide 21: Notes to Reconciliation of GAAP to Non-GAAP Financial Measures
Notes to Reconciliation of GAAP to Non- GAAP Financial Measures A Amortization of acquisition-related intangible assets in the following historical periods ($ in millions) (only the pretax amounts set forth below are reflected in the amortization line item above): B On December 18, 2019, Danaher Cor
Slide 22: Notes to Reconciliation of GAAP to Non-GAAP Financial Measures
Notes to Reconciliation of GAAP to Non- GAAP Financial 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 ti