National Vision Holdings, Inc. · NASDAQ:EYE
National Vision — Q3 2023 Earnings Presentation
24 slides from National Vision's earnings presentation, Nov 9, 2023
Slide 1: Q3 2023 Financial Results
Q3 2023 Financial Results November 9, 2023
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: Today's Presenters
Today's Presenters Q3 2023 Q3 2023 Financial Review Highlights and 2023 Outlook Reade Fahs Melissa Rasmussen Chief Executive Officer Chief Financial Officer 3 3
Slide 4: Q3 2023 Highlights
Q3 2023 Highlights Change vs Amount Q3 2022 Net Revenue $532.4 million 6.6% Adjusted Operating Income1 $15.7 million (26.8)% Adjusted Diluted EPS1 $0.15 —% ❖ Adjusted Comparable Store Sales Growth1: 4.3% vs. (8.1)% in Q3 2022 • Driven by an increase in customer transactions and higher average ticket
Slide 5: Advancing Strategic Initiatives
Advancing Strategic Initiatives • Recruiting & Retention: On track for continued improvement in retention and Significantly Expand record recruiting year Exam Capacity • Remote: Deployed Remote capabilities in more than half of America's Best locations as of September 30, 2023; remain on track to ac
Slide 6: Q3 2023 Financial Update
Q3 2023 Financial Update Vision —
Slide 7: Q3 2023 Revenue Drivers
Q3 2023 Revenue Drivers Net Revenue ($M) Total Store Count 1,332 1,402 ❖ Net revenue increased 6.6% vs. $532.4 $499.2 Q3 2022 primarily due to: • Increase in Adjusted Comparable 6.6% Store Sales Growth1 of 4.3% increase above Q3 2022 and growth from new store sales • Negatively impacted by timing of
Slide 8: Q3 2023 Results
Q3 2023 Results Net Revenue ($M) ❖ Net revenue increased 6.6% vs. Q3 2022 primarily due to: • Increase in Adjusted Comparable Store Sales Growth1 of 4.3% over prior year and growth from new store sales; $499.2 $532.4 • Net revenue negatively impacted by timing of unearned 6.6% revenue by 0.3%. incre
Slide 9: Q3 2023 Year-to-Date Results
Q3 2023 Year-to-Date Results Net Revenue ($M) ❖ Net revenue increased 5.4% vs. Q3 2022 primarily due to: $1,536.5 $1,620.1 • Growth from new store sales, Adjusted Comparable Store Sales Growth1 of 2.0% above prior year, and higher revenue from AC Lens business. Net revenue was 5.4% positively impact
Slide 10: Capital Structure and Cash Flow Highlights
Capital Structure and Cash Flow Highlights Healthy balance sheet enables robust and disciplined capital plan designed for continued growth and balanced with opportunistically returning capital to shareholders ❖ Strong liquidity position • $559M of liquidity at end of Q3, including a cash balance of
Slide 11: Fiscal 2023 Outlook
Fiscal 2023 Outlook Prior Fiscal 2023 Outlook Current Fiscal 2023 Outlook (as of August 10, 2023) New Stores 65 to 70 65 to 70 Adjusted Comparable Store Sales Growth1 ~2% 0% to 3% Net Revenue $2.115 billion to $2.125 billion $2.075 billion to $2.135 billion Adjusted Operating Income $60 million to $
Slide 12: Driving Enhanced Profitability
Driving Enhanced Profitability Impact of Walmart Termination 2024 Plan of Action 2025 & Beyond Plan to wind down Walmart Address $15M profit gap from Operate more streamlined business operations and full AC Lens business Walmart and AC Lens businesses & and deliver +MSD Adjusted in 2024 correspondin
Slide 13: Appendix
Appendix 13 13
Slide 14: Q3 2023 Consolidated Financial Results (Unaudited)
Q3 2023 Consolidated Financial Results (Unaudited) Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Dollars and shares in thousands, except Earnings Per Share 2023 2022 2023 2022 Revenue: Net product sales $ 435,556 $ 410,701 $ 1,333,242 $ 1,265,554 Net sales of
Slide 15: Reconciliation of Adjusted Operating Income to Net Income
Reconciliation of Adjusted Operating Income to Net Income (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, Dollars in thousands 2023 October 1, 2022 2023 October 1, 2022 Net income (loss) $ (73,798) $ 11,502 $ (49,914) $ 51,383 Interest expense (income), net 3,722 (1,977)
Slide 16: Reconciliation of Adjusted Comparable Stores Sales Growth
Reconciliation of Adjusted Comparable Stores Sales Growth (Unaudited) Comparable store sales growth (a) Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September October 1, September October 1, 30, 2023 2022 30, 2023 2022 2023 Outlook (b) Owned & Host segment America’s Best
Slide 17: Capital Structure and Cash Flow
Capital Structure and Cash Flow Less: Deferred Amounts Q3 2023 Capital Structure ($M) Debt Financing per Balance % of Amount Costs Sheet Total Coupon Maturity First Lien - Term A Loans $ 148.1 $ (1.1) $ 147.0 26 % Term SOFR + 1.75% 6/13/2028 First Lien - Revolving Loans1 — — — —% Term SOFR + 1.75% 6
Slide 18: Reconciliation of Adjusted EBITDA to Net Income
Reconciliation of Adjusted EBITDA to Net Income (Unaudited) Three Months Ended Nine Months Ended Twelve Months Ended September 30, October 1, September 30, October 1, September 30, Dollars in thousands 2023 2022 2023 2022 2023 Net income (loss) $ (73,798) $ 11,502 $ (49,914) $ 51,383 $ (59,175) Inte
Slide 19: Reconciliation of Adjusted Diluted EPS to Diluted EPS
Reconciliation of Adjusted Diluted EPS to Diluted EPS (Unaudited) Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Shares in thousands 2023 2022 2023 2022 Diluted EPS $ (0.94) $ 0.15 $ (0.64) $ 0.63 Stock-based compensation expense (a) 0.07 0.04 0.19 0.11 Asset
Slide 20: Reconciliation of Adjusted SG&A to SG&A
Reconciliation of Adjusted SG&A to SG&A (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, October 1, 2022 October 1, 2022 Dollars in thousands 2023 2023 SG&A $ 249,705 $ 225,028 $ 743,598 $ 681,411 Stock-based compensation expense (a) 5,252 3,168 15,040 10,540 ERP implemen
Slide 21: 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 write-off related to impairment of long-lived assets, p
Slide 22: 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 23: Unearned Revenue Primer
Unearned Revenue Primer 23 23
Slide 24: 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 24 24
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