National Vision Holdings, Inc. · NASDAQ:EYE
National Vision — William Blair Growth Stock Conference 2023
26 slides from National Vision's conference presentation, June 2023
Slide 1: William Blair Growth Stock Conference
William Blair Growth Stock Conference (NASDAQ: EYE) June 2023
Slide 2: Disclaimer
Disclaimer Forw ard-Looking Statements This presentation contains forw ard-looking statements w ithin 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,
Slide 3: History of Comparable Sales Growth
History of Comparable Sales Growth Delivered 72 quarters of positive comparable store sales growth leading up to the pandemic-driven disruption of the optical purchase cycle and exam capacity 1-2009 comparable store sales exclude sales from the Eyeglass World stores for the first six month “transiti
Slide 4: Strong Track Record of Disciplined Unit Expansion
Strong Track Record of Disciplined Unit Expansion • Disciplined approach to new store openings, combined with attractive store economics, has led to strong returns on investment. • Opened over 900 new stores since 2006; 5-year rolling average new store success rate of +97%1 • Majority of owned store
Slide 5: Capitalize on Whitespace Opportunity
Capitalize on Whitespace Opportunity 5 5
Slide 6: Investment Highlights
Investment Highlights Compelling Industry with Favorable 1 Growth Trends and Barriers to Entry 2 Differentiated Value Proposition 3 Attractive Store-Level Economics Multiple Growth Initiatives and Significant 4 Whitespace Opportunity 5 Deeply Experienced Management Team with Proven Track Record of S
Slide 7: National Vision – Company Overview
National Vision – Company Overview Our Mission: Helping people by making quality eye care and eyewear more affordable and accessible • Second largest U.S. optical retail company with 1,357 retail stores across five brands and 16 consumer websites • Low-cost provider of a “medical necessity” offering
Slide 8: Breaking the Mold in an Industry Ripe for Disruption
Breaking the Mold in an Industry Ripe for Disruption WHY ARE EYE EXAMS AND HOW NATIONAL VISION IS EYE CARE SO EXPENSIVE? BREAKING THE MOLD 730 year-old technology • Employed optometrist model and value Dominican Cardinal bundles (eyeglass / eye exam bundles) Hugh of Saint-Cher - 1306 AD, Pisa, Italy
Slide 9: Two Differentiated Growth Brands Catering to the Value Segment
Two Differentiated Growth Brands Catering to the Value Segment 9 9
Slide 10: History of Comparable Sales Growth
History of Comparable Sales Growth Delivered 72 quarters of positive comparable store sales growth leading up to the pandemic-driven disruption of the optical purchase cycle and exam capacity 1-2009 comparable store sales exclude sales from the Eyeglass World stores for the first six month “transiti
Slide 11: Positioning National Vision to Thrive in Today's Marketplace
Positioning National Vision to Thrive in Today’s Marketplace Given COVID-19 pandemic disruption facing the industry and other macro-economic factors, National Vision is rapidly moving down a path to adapt its business to thrive in a post-pandemic marketplace through several strategic initiatives: Si
Slide 12: Significantly Expand Exam Capacity
Significantly Expand Exam Capacity Doctor Recruiting and Retention Remote Exam Capacities • Building on momentum gained in 2022 with • 2022 remote exam technology rollout of doctor retention and recruiting ~300 stores • Investing further in 2023 with increased • On track to expand to at least 20
Slide 13: Digitization and Leverage Omni-Channel Capabilities
Digitization and Leverage Omni-Channel Capabilities Further Digitization of Stores Leverage and Corporate Office Omni-Channel Capabilities • Digitization efforts include: • Enhance customer experience through leveraging omni-channel capabilities • Continued implementation of electronic health recor
Slide 14: Investing to Further Deliver Affordable Care
Investing to Further Deliver Affordable Care In April 2023, National Vision co-led Toku's Series A Preferred investment round. Toku’s artificial intelligence platform analyzes retinal images to assess cardiovascular health. “We are building a future in which more people have affordable access to thi
Slide 15: Experienced Team of Optical Experts
Experienced Team of Optical Experts BEST-IN-CLASS MANAGEMENT TEAM • Deeply experienced management team averaging 9 years1 at National Vision • Experienced management team averaging 20 years 1 of optical or retail experience • Insights into customers and industry from prior experience • Extensive opt
Slide 16: Investment Highlights
Investment Highlights Compelling Industry with Favorable 1 Growth Trends and Barriers to Entry 2 Differentiated Value Proposition 3 Attractive Store-Level Economics Multiple Growth Initiatives and Significant 4 Whitespace Opportunity 5 Deeply Experienced Management Team with Proven Track Record of S
Slide 17: Appendix
Appendix 17 17
Slide 18: Historical Financial Performance
Historical Financial Performance 1-Non-GAAP financial measures; see Appendix for reconciliation to GAAP financial measures of net income for 2016-2022. 18 18
Slide 19: Balance Sheet
Balance Sheet NET DEBT (1) AND NET DEBT/ADJUSTED EBITDA(2) (Net Debt in $M) x x x x x x x x • $541M of liquidity at end of Q1, including cash balance of $247M • Floating rate debt more than fully hedged • Repurchased $175M in common stock between 11/12/21 and 4/1/23 1-Net debt consists of long-term
Slide 20: Reconciliation of Adjusted EBITDA to Net Income (Unaudited)
Reconciliation of Adjusted EBITDA to Net Income (Unaudited) Dollars in thousands 2016 2017 2018 2019 2020 2021 2022 Net revenue $ 1,196,195 $ 1,375,308 $ 1,536,854 $ 1,724,331 $ 1,711,760 $ 2,079,525 $ 2,005,404 Net income 13,343 43,138 23,653 32,798 36,277 128,244 42,122 Interest expense 39,092 60,
Slide 21: Reconciliation of Adjusted EBITDA to Net Income (Unaudited)
Reconciliation of Adjusted EBITDA to Net Income (Unaudited) Three Months Ended Twelve Months Ended Dollars in thousands April 1, 2023 April 2, 2022 April 1, 2023 Net revenue $ 562,369 $ 527,711 Net income 18,270 30,147 $ 30,245 Interest expense (income), net 4,867 (4,144) 9,473 Income tax provision
Slide 22: 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 of deferred financing fees related to the ext
Slide 23: Reconciliation of Adjusted Comparable Stores Sales Growth (Unaudited)
Reconciliation of Adjusted Comparable Stores Sales Growth (Unaudited) Comparable store sales growth (a) Three Months Ended Three Months Ended April 1, 2023 April 2, 2022 Owned & Host segment America’s Best 1.7 % (7.3)% Eyeglass World (1.3)% (6.3)% Military 3.2 % (4.1)% Fred Meyer (9.5)% 1.4 % Legacy
Slide 24: Adjusted Comparable Store Sales Primer
Adjusted Comparable Store Sales 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 operating perf
Slide 25: Unearned Revenue Primer
Unearned Revenue Primer • Customers generally pay for products and services at time of order. Eyeglasses are picked up approximately 7 to 10 days later. • Unearned revenue represents CASH BASIS SALES during approximately the last week of a reporting period. GAAP REPORTING requires REVENUE RECOGNITIO
Slide 26: 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 26 26
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