Varex Imaging Corporation · NASDAQ:VREX
Varex Imaging — Q1 FY2022 Earnings Presentation
22 slides from Varex Imaging's earnings presentation, Feb 8, 2022
Slide 1: Q1 FY22 Earnings Presentation
Solutions in Sight® Q1 FY22 Earnings Presentation February 8, 2022
Slide 2: Forward Looking Statements / Non-GAAP Measures
Forward Looking Statements / Non-GAAP Measures Forward Looking Statements Certain statements in this supplement contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward looking statements incl
Slide 3: Q1 FY22 Results
Q1 FY22 Results Non-GAAP Non-GAAP Revenue Cash Gross Margin* EPS* $199M $158M 34% $0.25 ➢ Demand environment remained strong ➢ Supply chain constraints increased ➢ Industrial segment continued to recover ➢ Strong cash generation of $13M * Non-GAAP. For a reconciliation to the most directly comparabl
Slide 4: Current Demand Environment
Current Demand Environment CT Mammography Radiography & Fluoroscopy Others Oncology Industrial Dental 4
Slide 5: Medical Segment New Product Update
Medical Segment New Product Update 2026 Incremental Business Market Driver Progress Update SAM Tubes • One successful design-win Cardiovascular • New market entry ~$350M • Prototypes shipping to multiple other customers • Low TCO • Joint venture shipped first multi-emitter prototype to Industrial cu
Slide 6: Medical Segment Potential 5-year Serviceable Addressable Market (SAM)
Medical Segment Potential 5-year Serviceable Addressable Market (SAM) ~$4.5B +$1.0B SAM Incremental Business New Product SAM Tubes Cardio / Oncology ~$350M +$0.4B ~$3.0B SAM Photon Counting ~$500M Detectors Azure ~$30-50M Software Lung Cancer Screening ~$35M Connect & Control Smart products ~$125M 2
Slide 7: Q1 FY22 Revenue Details
Q1 FY22 Revenue Details Segment Mix Geographic Mix ($ in millions) ($ in millions) $43 $61 $71 $156 $67 Medical Industrial Americas EMEA APAC Revenue, $M Q1 22 Q4 21 Q3 21 Q2 21 Q1 21 Revenue, $M Q1 22 Q4 21 Q3 21 Q2 21 Q1 21 Americas 61 70 66 71 62 Medical 156 181 167 157 139 EMEA 67 74 76 68 58 In
Slide 8: Quarterly Results - GAAP
Quarterly Results - GAAP $ in Millions, except per share data Q1 FY22 Q4 FY21 Q1 FY21 Revenue $199 $226 $177 Gross Margin 33% 33% 32% $51 $49 $51 Operating Expenses 26% 22% 29% $14 $27 $6 Operating Income 7% 12% 4% Net Earnings $1 $9 $(6) EPS, diluted $0.03 $0.20 $(0.16) Avg. shares, diluted 43.9 43
Slide 9: Quarterly results – Non-GAAP
Quarterly results – Non-GAAP* $ in Millions, except per share data Q1 FY22 Q4 FY21 Q1 FY21 Revenue $199 $226 $177 Gross Margin (Non-GAAP) 34% 34% 34% $44 $45 $45 Operating Expenses (Non-GAAP) 22% 20% 26% $23 $33 $14 Operating Income (Non-GAAP) 11% 14% 8% Net Earnings (Non-GAAP) $10 $19 $3 EPS, dilut
Slide 10: Select Balance Sheet Data
Select Balance Sheet Data $ in Millions Q1 FY22 Q4 FY21 Q1 FY21 Assets Cash and Cash Equivalents $158 $145 $106 Accounts Receivable, net $127 $155 $121 Inventories $248 $225 $270 Total Assets $1,139 $1,148 $1,137 Liabilities Accounts Payable $72 $59 $68 Long-Term Debt, net $437 $435 $460 Total Liabi
Slide 11: Select Debt and Cash Flow Data
Select Debt and Cash Flow Data $ in Millions Q1 FY22 Q4 FY21 Q1 FY21 Debt Gross Debt $480 $481 $514 (Ratings: Moody’s B2 / S&P B+) Net Debt1 $322 $336 $408 Adjusted EBITDA2 Adjusted EBITDA $30 $40 $22 Cash Performance Cash Flow from Operations $11 $51 $7 Capital Expenditures $4 $3 $4 Cash Interest $
Slide 12: Outlook Q2 FY22
Outlook Q2 FY22 Guidance Non-GAAP Revenues, $M $190 - $220 EPS Per Diluted Share $0.15 - $0.40 Assumptions Non-GAAP Gross Margin 33% - 34% Operating Expenses, $M $45 - $46 12
Slide 13: Solutions in Sight® Q&A
W VAREX MA G Solutions in Sight® VREX Nasdaq isted Pf Nasdaq Q&A
Slide 14: Non-GAAP Reconciliation
Solutions in Sight® Non – GAAP Reconciliation 14
Slide 15: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended (In millions, except per share amounts) December 31, 2021 January 1, 2021 GROSS PROFIT RECONCILIATION Revenues $ 198.8 $ 177.1 Gross profit $ 64.8 $ 57.2 Amortization of intangible assets 1.8 2.2 Restructuring
Slide 16: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended (In millions, except per share amounts) December 31, 2021 January 1, 2021 SELLING, GENERAL AND ADMINISTRATIVE EXPENSE RECONCILIATION Selling,general and administrative expense $ 33.1 $ 34.4 Amortization of int
Slide 17: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended (In millions, except per share amounts) December 31, 2021 January 1, 2021 OPERATING INCOME (LOSS) RECONCILIATION Operating income (loss) $ 14.0 $ 6.1 Amortization of intangible assets (includes amortization im
Slide 18: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended (In millions, except per share amounts) December 31, 2021 January 1, 2021 INCOME (LOSS) BEFORE TAXES RECONCILIATION Income (loss) before taxes $ 3.3 $ (4.7) Total operating earnings adjustments 8.7 7.9 Convert
Slide 19: Reconciliation between GAAP and Non-GAAP Financial measures (unaudited)
Reconciliation between GAAP and Non-GAAP Financial measures (unaudited) Three Months Ended (In millions, except per share amounts) December 31, 2021 January 1, 2021 DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING RECONCILIATION GAAP weighted average common shares - dilutive 43.9 39.1 Dilution offset fro
Slide 20: Effect of Convertible Loan and Warrants on Diluted Share count
Effect of Convertible Loan and Warrants on Diluted Share count Incremental Diluted Shares Share GAAP Non-GAAP Price* Shares Shares $25.00 1,619,210 9,610 $26.00 2,296,132 378,840 $27.00 2,922,913 720,720 $28.00 3,504,923 1,038,180 $29.00 4,046,794 1,333,746 $30.00 4,552,541 1,609,608 $31.00 5,025,65
Slide 21: Discussion of Non–GAAP Financial Measures
Discussion of Non – GAAP Financial Measures This presentation includes non-GAAP financial measures derived from our Condensed Consolidated Statements of Earnings. These measures are not presented in accordance with, nor are they a substitute for U.S. generally accepted accounting principles, or GAAP
Slide 22: Solutions in Sight®
Solutions in Sight®