National Vision Holdings, Inc. · NASDAQ:EYE
National Vision — Q3 2024 Earnings Presentation
29 slides from National Vision's earnings presentation, Nov 6, 2024
Slide 1: Third Quarter 2024 Financial Results
THIRD QUARTER 2024 FINANCIAL RESULTS NOVEMBER 6, 2024 NASDAQ: EYE 1
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: We help people see their best to live their best
WE HELP PEOPLE SEE THEIR BEST TO LIVE THEIR BEST. NATIONAL VISION'S BUSINESS HAS BEEN DRIVEN BY THIS BELIEF FOR OVER 30 YEARS. 3
Slide 4: Q3 2024 Highlights (Continuing Operations)
Q3 2024 Highlights (Continuing Operations) $452M +2.9% 0.9% Net Revenue Adj. Comp. Store Net Revenues Sales Growth1 Growth $14M $0.12 1.8x Adj. Operating Net Debt/ Adj. Diluted EPS1 Income1 Adj. EBITDA1 1- Non-GAAP financial measure; see Appendix for reconciliation to GAAP financial measures 4 4
Slide 5: Strategic Initiatives Focused on Transformation
Strategic Initiatives Focused on Transformation Actions focused on driving profitable growth and strengthening foundation: • Optimizing store fleet for profitability and overall performance • Implementing traffic-driving initiatives, including execution of promotions and new product introductions •
Slide 6: Florence by Mills exclusively at America's Best and Eyeglass World
Florence by Mills exclusively at America’s Best Eyecare + Eyewear and Eyeglass World 6
Slide 7: Pair Eyewear exclusively at America's Best Eyecare + Eyewear
Pair Eyewear exclusively at America’s Best Eyecare + Eyewear 7
Slide 8: America's Best Eyecare + Eyewear
America’s Best Eyecare + Eyewear 8 8
Slide 9: Q3 2024 Revenue Drivers (Continuing Operations)
Q3 2024 Revenue Drivers (Continuing Operations) NET REVENUE ($M) Net Revenue • Increased 2.9% primarily driven by growth from new store $452 sales and Adjusted Comparable Store Sales Growth and $439 the effect of unearned revenue, partially offset by converted and closed stores and lower e-commerce
Slide 10: Q3 2024 Results (Continuing Operations)
Q3 2024 Results (Continuing Operations) ADJUSTED OPERATING INCOME ($M)1 Costs applicable to revenue as percentage of net revenue increased 20 bps to 42.1% vs. Q3 2023: • Gross margin decrease of ~20 bps driven primarily by increased optometrist-related costs, partially offset by higher $14.3 exam re
Slide 11: Q3 2024 YTD Results (Continuing Operations)
Q3 2024 YTD Results (Continuing Operations) NET REVENUE ($M) Net Revenue $1,335 $1,386 • Increased 3.8% compared with the same period of 2023 • Driven by new stores and 1.2% in Adjusted Comparable Store Sales Growth1 and the effect of unearned revenue, partially offset by converted and closed stores
Slide 12: Q3 2024 Capital Structure (Continuing Operations)
Q3 2024 Capital Structure (Continuing Operations) Strong Balance Sheet & Liquidity Position • Reduced net debt by over $100 million o Repurchased ~$218 million aggregate principal amount of 2025 Notes for an aggregate cash purchase price of ~$215 million. Funded with $115 million of incremental term
Slide 13: 2024 Capital Allocation Priorities
2024 Capital Allocation Priorities Invest in Growth Expecting capital expenditures of $100 - $105 million for new store openings and investments in technology Debt Structure Reduced debt by over $100 million Sufficient available liquidity to settle 2025 Notes at maturity Return Capital to $50 millio
Slide 14: Outlook
Outlook 14
Slide 15: Fiscal 2024 Outlook
Fiscal 2024 Outlook Reaffirms Key Metrics | Updates Capital Expenditures Outlook Continuing Operations Fiscal 2024 Outlook New Stores 65 - 70 Adjusted Comparable Store Sales Growth1 0.5% - 1.5% Net Revenue (billions) $1.820 - $1.840 Adjusted Operating Income (millions) $57 - $62 Adjusted Diluted EPS
Slide 16: Appendix
Appendix 16
Slide 17: Quarterly Financial Historical Overview (Continuing Operations)
Quarterly Financial Historical Overview (Continuing Operations) (Preliminary and Unaudited) NET REVENUE ($M) ADJUSTED COMPARABLE STORE SALES GROWTH (%)1 6.3% $482.8 $464.8 4.7% $451.7 $451.5 $438.8 $431.8 $421.0 2.4% 1.3% 1.1% 0.9% 0.4% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q2
Slide 18: Historical Adjusted Comparable Store Sales Growth & Drivers
Historical Adjusted Comparable Store Sales Growth & Drivers ADJUSTED COMPARABLE STORE SALES GROWTH Y/Y (%)1 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 6.3% 4.7% 2.4% 1.3% 1.1% 0.9% 0.4% -2.0% -7.1% -7.8% -12.4% Q1 ’22 Q2 ’22 Q3 ’22 Q4 ’22 Q1 ’23 Q2 ’23 Q3 ’23 Q4 ’23
Slide 19: Capital Structure and Cash Flow
Capital Structure and Cash Flow Less: Deferred Amounts per Q3 2024 Capital Structure ($M) Debt Financing Balance % of Amount Costs Sheet Total Coupon Maturity First Lien - Term A Loans $ 257.5 $ (1.7) $ 255.8 72 % Term SOFR + 1.50% 6/13/2028 First Lien - Revolving Loans1 — — — —% Term SOFR + 1.50% 6
Slide 20: Consolidated Financial Results (Unaudited)
Consolidated Financial Results (Unaudited) c Three Months Ended Nine Months Ended September 28, September 30, September 28, September 30, Dollars and shares in thousands, except Earnings (Loss) Per Share 2024 2023 2024 2023 Revenue: Net product sales $ 363,156 $ 354,566 $ 1,113,206 $ 1,086,899 Net s
Slide 21: Reconciliation of Adjusted Operating Income to Net Income (Loss)
Reconciliation of Adjusted Operating Income (Loss) from Continuing Operations to Net Income (Loss) (Preliminary and Unaudited) Three Months Ended Nine Months Ended April 1, July 1, September December March 30, June 29, September September September Dollars in thousands 2023 2023 30, 2023 30, 2023 20
Slide 22: Reconciliation of Adjusted Diluted EPS to Diluted EPS
Reconciliation of Adjusted Diluted EPS from Continuing Operations to Diluted EPS (Preliminary and Unaudited) Three Months Ended Nine Months Ended April 1, July 1, September December March 30, June 29, September September September Shares in thousands, except per share amounts 2023 2023 30, 2023 30,
Slide 23: Reconciliation of Adjusted EBITDA to Net Loss
Reconciliation of Adjusted EBITDA from Continuing Operations to Net Loss (Preliminary and Unaudited) Twelve Months Ended Dollars in thousands September 28, 2024 Total net revenue $ 1,806,995 Net loss (15,895) Loss from discontinued operations, net of tax (3,428) Loss from continuing operations, net
Slide 24: Reconciliation of Adjusted SG&A to SG&A
Reconciliation of Adjusted SG&A from Continuing Operations to SG&A from Continuing Operations (Unaudited) Three Months Ended Nine Months Ended September 28, September 30, September 28, September 30, Dollars in thousands 2024 2023 2024 2023 SG&A from continuing operations $ 233,991 $ 227,515 $ 705,47
Slide 25: 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 the extinguishment loss related to the repurchase of $1
Slide 26: Reconciliation of Adjusted Comparable Stores Sales Growth
Reconciliation of Adjusted Comparable Stores Sales Growth from Continuing Operations (Unaudited) Comparable store sales growth from continuing operations (a) Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September 28, September 30, September 28, September 30, 2024 2023 20
Slide 27: 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 28: Unearned Revenue Primer
Unearned Revenue Primer 28 28
Slide 29: 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 29
National Vision Holdings — Q3 2024 Earnings Presentation on 6ix