Envista Holdings Corporation · NYSE:NVST
Envista — Q3 2022 Earnings Presentation
24 slides from Envista's earnings presentation, Nov 3, 2022
Slide 1: Third Quarter 2022 Earnings Presentation
Third Quarter 2022 Earnings Presentation November 3, 2022
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: Continued execution despite macro challenges
Continued execution despite macro challenges Delivered Core Sales Growth* of 4.9% and Adjusted EBITDA margin* of 20.2% • Disciplined execution delivered MSD core sales growth, led by our Ortho, Implant and Consumables businesses, while adjusted EBITDA margin* was +60 bps vs. Q3 2021. • The Envista B
Slide 4: Progress on Strategic Priorities
Progress on Strategic Priorities Transforming Envista into a higher growth and higher margin company Priority Results • Continued strength in orthodontics; Spark core sales growth* >100% vs. Q3 2021 Accelerate growth through strategic • Implants delivered MSD core sales growth, led by Premium segmen
Slide 5: Envista's Sustainability Journey
Envista’s Sustainability Journey Achieving continuous improvement We intend to digitize, personalize, and democratize dental care. Continuously improving our approach to sustainability is key to achieving this objective. Our approach to sustainability, informed by stakeholder Delivering Supporting o
Slide 6: Q3 2022: Financial Metrics
Q3 2022: Financial Metrics Strong execution driving solid core sales growth* and profitability Core Sales Growth* 4.9% • Core Sales Growth* − Solid growth despite macro challenges and slowing spending on capital equipment GAAP Diluted EPS $0.28 − Specialty grew >10% vs. Q3 2021 Adj. Diluted EPS* $0.
Slide 7: Specialty Products & Technologies
Specialty Products & Technologies Investing to accelerate long-term growth Revenue Adjusted Operating • Orthodontics Core Sales* +11.3% Profit Margin* − Spark sales continue to accelerate; with strong growth in all regions $395.4 − Solid growth in traditional Brackets & Wires driven by Emerging Mark
Slide 8: Equipment & Consumables
Equipment & Consumables Despite top line pressure, delivered margin expansion • Core Sales Growth* Revenue Adjusted Operating − Imaging revenue down DD; driven by deteriorating market conditions for Core Sales* -4.7% Profit Margin* large capital equipment; strong 2H performance in 2021; and a strate
Slide 9: Cash Flow & Balance Sheet
Cash Flow & Balance Sheet Strong Balance Sheet – Flexibility to continue transforming portfolio • Balance Sheet Free Cash Flow** Summary ($M) − Ended Q3 with cash balance of >$500 million − Significant financial flexibility for long-term investment Q3’22 Q3’21 and capital deployment Operating cash f
Slide 10: 2022 Full Year Guidance
2022 Full Year Guidance Reiterating full year guidance for core sales growth and adjusted EBITDA margin Guidance Range Key Metric Full Year Revenue -Core Sales Growth MSD -Acquisitions >$40 Million Adj. EBITDA Margin 20% Note: These forward-looking estimates do not reflect future gains and charges t
Slide 11: Summary & Key Takeaways
Summary & Key Takeaways Dental is an attractive market with strong secular growth trends Envista is strategically differentiated and has a proven track record of execution Significant opportunity to accelerate growth, improve margins, & create value for patients, customers, employees, and shareholde
Slide 12: Q&A
Q&A 12
Slide 13: Appendix
Appendix 13
Slide 14: Reconciliation of Adjusted Gross Profit
Reconciliation of Adjusted Gross Profit ($ in Millions) Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 Gross Profit $ 364.7 $ 356.3 $ 1,108.6 $ 1,083.3 Restructuring costs and asset impairments A 3.4 1.0 10.0 6.9 Fair value adjustment of ac
Slide 15: Reconciliation of Adjusted Operating Profit
Reconciliation of Adjusted Operating Profit ($ in Millions) Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 Consolidated Operating Profit $ 74.5 $ 81.7 $ 231.2 260.1 Amortization of acquisition-related and other intangible assets 27.9 20.3 7
Slide 16: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income ($ in Millions) Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 Net Income From Continuing Operations $ 49.6 $ 80.2 $ 164.5 $ 221.0 Amortization of acquisition-related and other intangible assets 27.9 20
Slide 17: Reconciliation of Adjusted Diluted Earnings Per Share
Reconciliation of Adjusted Diluted Earnings Per Share Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 Diluted Earnings From Continuing Operations Per Share $ 0.28 $ 0.45 $ 0.92 $ 1.25 Amortization of acquisition-related and other intangible
Slide 18: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA ($ in Millions) Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 Net Income From Continuing Operations $ 49.6 $ 80.2 $ 164.5 $ 221.0 Interest expense, net 11.6 12.0 23.9 43.6 Income taxes 13.6 (10.3) 43.7 (3.
Slide 19: Reconciliation of Core Sales Growth
Reconciliation of Core Sales Growth1 % Change Three % Change Nine Month Month Period Ended Period Ended September 30, 2022 vs. September 30, 2022 vs. Comparable 2021 Comparable 2021 Consolidated Period Period Total sales growth 3.9 % 2.8 % Plus the impact of: Acquisition (3.1)% (1.3)% Currency excha
Slide 20: Reconciliation of Operating Cash Flows to Free Cash Flow
Reconciliation of Operating Cash Flows to Free Cash Flow ($ in Millions) Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 Net Operating Cash Used in Investing Activities $ (73.3) $ (3.1) $ (659.8) $ (25.9) Net Operating Cash Provided by (Used
Slide 21: 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, as well as the inconsistent
Slide 22: 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 23: 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 24: Thank You
Thank You 24 Confidential: For internal use only.