Envista Holdings Corporation · NYSE:NVST
Envista — Q3 2023 Earnings Presentation
23 slides from Envista's earnings presentation, Nov 1, 2023
Slide 1: Third Quarter 2023 Earnings Presentation
Third Quarter 2023 Earnings Presentation November 1, 2023
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 Delivered core sales growth* of 0.8% and Adjusted EBITDA Margin* of 19.6% • Delivered positive core sales growth and 50 bps of sequential improvement in adjusted EBITDA margins • In-line with current market realities, resetting full year guidance. Expect core sales growth to be slightly dow
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 LSD, despite underperformance in North America Accelerate growth through strategic Implant business organic investments • Spark continu
Slide 5: Q3 2023: Financial Metrics
Q3 2023: Financial Metrics Positive core sales growth; sequential margin expansion; and solid free cash flow Core Sales Growth* 0.8% Q3 2023 Core Sales Growth* − Positive core sales growth despite continued macro GAAP Diluted EPS $0.12 uncertainties; selective portfolio optimization; & underperforma
Slide 6: Specialty Products & Technologies
Specialty Products & Technologies Spark continues to outperform; Investing for long-term growth Revenue Adjusted Operating Profit Margin* • Orthodontics Core Sales* +2.2% − Double Digit growth in our orthodontics portfolio $395.4 $399.5 − Spark continues to outperform; Strong growth in Europe & Nort
Slide 7: Equipment & Consumables
Equipment & Consumables Solid Growth in Consumables; Proactively Streamlining Imaging Portfolio Revenue Adjusted Operating • Core Sales Growth* Core Sales* -1.6% Profit Margin* − Consumables business grew LSD, led by strong growth in Emerging $235.7 $231.8 Markets − Imaging declined HSD driven by hi
Slide 8: Cash Flow & Balance Sheet
Cash Flow & Balance Sheet Strong Balance Sheet – Flexibility to continue transforming portfolio • Balance Sheet Free Cash Flow** Summary ($M) − Ended Q3 with cash balance of >$800 million Q3’22 Q3’23 − Issued new convertible note and refinanced term debt; reduced dilution, managed interest Operating
Slide 9: 2023 Full Year Guidance
2023 Full Year Guidance Resetting full year guidance for core sales growth and adjusted EBITDA margin Guidance Key Metric Full Year 2023 Revenue – Core Sales Growth* Down Slightly Adj. EBITDA Margin* 18% to 19% Note: These forward-looking estimates do not reflect future gains and charges that are in
Slide 10: Summary & Key Takeaways
Summary & Key Takeaways Dental is an attractive market with strong secular growth trends Envista is strategically differentiated and has a proven track record of execution Significant opportunity to accelerate growth; improve margins; and create value for patients, customers, employees, and sharehol
Slide 11: Q&A
Q&A 11
Slide 12: Appendix
Appendix 12
Slide 13: Reconciliation of Adjusted Gross Profit
Reconciliation of Adjusted Gross Profit ($ in Millions) Adjusted Gross Profit and Adjusted Gross Margin Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2023 2022 2023 2022 Gross Profit $ 363.3 $ 364.7 $ 1,104.6 $ 1,108.6 Restructuring costs and asset impa
Slide 14: Reconciliation of Adjusted Operating Profit
Reconciliation of Adjusted Operating Profit ($ in Millions) Adjusted Operating Profit Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2023 2022 2023 2022 Consolidated Operating Profit $ 83.3 $ 74.5 $ 234.3 $ 231.2 Amortization of acquisition-related and o
Slide 15: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income ($ in Millions) Adjusted Net Income Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2023 2022 2023 2022 Net Income From Continuing Operations $ 21.5 $ 49.6 $ 117.2 $ 164.5 Amortization of acquisition-related and other
Slide 16: Reconciliation of Adjusted Diluted Earnings Per Share
Reconciliation of Adjusted Diluted Earnings Per Share Adjusted Diluted Earnings Per Share Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2023 2022 2023 2022 Diluted Earnings From Continuing Operations Per Share $ 0.12 $ 0.28 $ 0.66 $ 0.92 Amortization of
Slide 17: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA ($ in Millions) Adjusted EBITDA Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2023 2022 2023 2022 Net Income From Continuing Operations $ 21.5 $ 49.6 $ 117.2 $ 164.5 Interest expense, net 15.4 11.6 49.5 23.9 Income taxe
Slide 18: Reconciliation of Core Sales Growth
Reconciliation of Core Sales Growth1 Core Sales Growth 1 % Change Three % Change Nine Month Month Period Ended Period Ended September 29, 2023 vs. September 29, 2023 vs. Comparable 2022 Comparable 2022 Consolidated Period Period Total sales growth —% 0.7 % Plus the impact of: Acquisitions —% (1.7)%
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 Three Months Ended Nine Months Ended Cash Flow September 29, September 30, September 29, September 30, 2023 2022 2023 2022 Net Operating Cash Provided by Operating Activities $ 95.
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.