Envista Reports Fourth Quarter 2024 Results
Envista Holdings (NYSE: NVST) reported Q4 2024 results with sales of $653 million and core sales growth of 2.0% compared to Q4 2023. The company achieved an Adjusted EBITDA margin of 13.9% and demonstrated improved performance in implants across Nobel Biocare, Implant Direct, and Alpha-Bio brands. Spark aligners showed continued market share gains and gross margin improvement.
Financial highlights include operating cash flow of $132 million and free cash flow of $124 million, representing increases of 30% and 24% respectively over Q4 2023. Q4 net income was $1 million ($0.01 per share), compared to a loss of $217 million in Q4 2023. For the full year 2024, the company reported a net loss of $1,119 million.
Looking ahead to 2025, Envista projects core sales growth of 1-3%, adjusted EBITDA margins of approximately 14%, and adjusted earnings per share between $0.95 and $1.05.
Envista Holdings (NYSE: NVST) ha riportato i risultati del Q4 2024 con vendite di 653 milioni di dollari e una crescita delle vendite core del 2,0% rispetto al Q4 2023. L'azienda ha raggiunto un margine EBITDA rettificato del 13,9% e ha mostrato un miglioramento delle performance negli impianti dei marchi Nobel Biocare, Implant Direct e Alpha-Bio. Gli allineatori Spark hanno continuato a guadagnare quote di mercato e hanno migliorato il margine lordo.
I punti salienti finanziari includono un flusso di cassa operativo di 132 milioni di dollari e un flusso di cassa libero di 124 milioni di dollari, con aumenti rispettivi del 30% e del 24% rispetto al Q4 2023. Il reddito netto del Q4 è stato di 1 milione di dollari (0,01 dollari per azione), rispetto a una perdita di 217 milioni di dollari nel Q4 2023. Per l'intero anno 2024, l'azienda ha riportato una perdita netta di 1.119 milioni di dollari.
Guardando al 2025, Envista prevede una crescita delle vendite core dell'1-3%, margini EBITDA rettificati di circa il 14% e utili per azione rettificati tra 0,95 e 1,05 dollari.
Envista Holdings (NYSE: NVST) reportó resultados del Q4 2024 con ventas de 653 millones de dólares y un crecimiento de ventas centrales del 2.0% en comparación con el Q4 2023. La compañía logró un margen EBITDA ajustado del 13.9% y demostró un desempeño mejorado en implantes a través de las marcas Nobel Biocare, Implant Direct y Alpha-Bio. Los alineadores Spark mostraron continuas ganancias de cuota de mercado y mejoras en el margen bruto.
Los aspectos financieros destacados incluyen un flujo de caja operativo de 132 millones de dólares y un flujo de caja libre de 124 millones de dólares, representando aumentos del 30% y 24% respectivamente respecto al Q4 2023. El ingreso neto del Q4 fue de 1 millón de dólares (0.01 dólares por acción), en comparación con una pérdida de 217 millones de dólares en el Q4 2023. Para el año completo 2024, la compañía reportó una pérdida neta de 1,119 millones de dólares.
Mirando hacia 2025, Envista proyecta un crecimiento de ventas centrales del 1-3%, márgenes EBITDA ajustados de aproximadamente el 14% y ganancias por acción ajustadas entre 0.95 y 1.05 dólares.
엔비스타 홀딩스 (NYSE: NVST)가 2024년 4분기 실적을 발표했으며, 매출은 6억 5천 3백만 달러로, 2023년 4분기 대비 핵심 매출 성장률은 2.0%였습니다. 이 회사는 조정된 EBITDA 마진이 13.9%에 달했으며, 노벨 바이오케어, 임플란트 다이렉트, 알파-바이오 브랜드에서 임플란트 성능이 개선되었습니다. 스파크 얼라이너는 시장 점유율 상승과 총 마진 개선을 계속 보여주었습니다.
재무 하이라이트에는 1억 3천 2백만 달러의 운영 현금 흐름과 1억 2천 4백만 달러의 자유 현금 흐름이 포함되어 있으며, 이는 각각 2023년 4분기 대비 30% 및 24% 증가한 수치입니다. 4분기 순이익은 100만 달러 (주당 0.01 달러)로, 2023년 4분기 2억 1천 7백만 달러의 손실에 비해 개선되었습니다. 2024년 전체 연도의 순손실은 11억 1천 9백만 달러였습니다.
2025년을 내다보면, 엔비스타는 핵심 매출 성장률이 1-3%일 것으로 예상하며, 조정된 EBITDA 마진은 약 14%, 조정된 주당 순이익은 0.95달러에서 1.05달러 사이가 될 것으로 보입니다.
Envista Holdings (NYSE: NVST) a publié ses résultats pour le 4ème trimestre 2024 avec des ventes de 653 millions de dollars et une croissance des ventes de base de 2,0 % par rapport au 4ème trimestre 2023. L'entreprise a atteint une marge EBITDA ajustée de 13,9 % et a démontré une amélioration de ses performances en matière d'implants à travers les marques Nobel Biocare, Implant Direct et Alpha-Bio. Les aligneurs Spark ont continué à gagner des parts de marché et à améliorer leur marge brute.
Les points forts financiers incluent un flux de trésorerie d'exploitation de 132 millions de dollars et un flux de trésorerie libre de 124 millions de dollars, représentant des augmentations respectives de 30 % et 24 % par rapport au 4ème trimestre 2023. Le résultat net pour le 4ème trimestre était de 1 million de dollars (0,01 dollar par action), contre une perte de 217 millions de dollars au 4ème trimestre 2023. Pour l'année entière 2024, l'entreprise a déclaré une perte nette de 1 119 millions de dollars.
Concernant 2025, Envista projette une croissance des ventes de base de 1 à 3 %, des marges EBITDA ajustées d'environ 14 % et un bénéfice par action ajusté entre 0,95 et 1,05 dollar.
Envista Holdings (NYSE: NVST) hat die Ergebnisse des 4. Quartals 2024 bekannt gegeben, mit einem Umsatz von 653 Millionen Dollar und einem Kernumsatzwachstum von 2,0 % im Vergleich zum 4. Quartal 2023. Das Unternehmen erreichte eine bereinigte EBITDA-Marge von 13,9 % und zeigte eine verbesserte Leistung bei Implantaten der Marken Nobel Biocare, Implant Direct und Alpha-Bio. Die Spark Aligners erzielten weiterhin Marktanteilsgewinne und eine Verbesserung der Bruttomarge.
Zu den finanziellen Highlights gehören ein operativer Cashflow von 132 Millionen Dollar und ein Free Cashflow von 124 Millionen Dollar, was jeweils einem Anstieg von 30 % bzw. 24 % im Vergleich zum 4. Quartal 2023 entspricht. Der Nettogewinn für das 4. Quartal betrug 1 Million Dollar (0,01 Dollar pro Aktie), im Vergleich zu einem Verlust von 217 Millionen Dollar im 4. Quartal 2023. Für das gesamte Jahr 2024 meldete das Unternehmen einen Nettoverlust von 1.119 Millionen Dollar.
Blickt man auf 2025, erwartet Envista ein Kernumsatzwachstum von 1-3 %, bereinigte EBITDA-Margen von etwa 14 % und bereinigte Ergebnisse je Aktie zwischen 0,95 und 1,05 Dollar.
- Core sales increased 2.0% in Q4 2024
- Operating cash flow improved 30% to $132 million
- Free cash flow increased 24% to $124 million
- Growth reported across implant brands
- Improved market share and margins in Spark aligners
- Full-year 2024 net loss of $1,119 million versus $100 million loss in 2023
- Q4 Adjusted EBITDA declined to $91 million from $101 million YoY
- Q4 Adjusted Net Income decreased to $41 million from $50 million YoY
- Q4 Adjusted Diluted EPS fell to $0.24 from $0.29 YoY
Insights
Envista's Q4 2024 results reveal a company in transition, with both encouraging signals and significant challenges. The 2.0% core sales growth to
Key performance indicators present a mixed picture:
- Adjusted EBITDA margin of
13.9% held steady but remains below historical levels, suggesting ongoing operational challenges - Quarterly adjusted EPS declined from
$0.29 to$0.24 , indicating continued pressure on profitability - Strong cash flow performance with
$132 million operating cash flow represents excellent working capital management
The 2025 guidance of
Bright spots include market share gains in Spark aligners and improved performance across the implant portfolio (Nobel Biocare, Implant Direct and Alpha-Bio). However, the magnitude of the full-year loss indicates potential structural issues that may require more aggressive transformation efforts beyond current initiatives.
"In Q4 2024, Envista delivered results that were in line with expectations, indicating that our focus on growth, operations, and people is having a positive impact," said Paul Keel, Envista's CEO. "2024 was a transition year for our company. After a challenging first half, we took actions over the last two quarters to position ourselves for improved performance moving forward. While we still have much more to do, we're encouraged by our progress and grateful for our 12,000 colleagues around the world who make it all possible."
Q4 2024 financial highlights:
- Sales were
$653 million 2.0% over the fourth quarter of 2023. - Adjusted EBITDA margin was
13.9% , consistent with our expectations. - Further improvement in implants, with growth in Nobel Biocare, Implant Direct, and Alpha-Bio.
- Continued share gains and gross margin improvement in Spark aligners.
- Operating cash flow of
$132 million $124 million 30% and24% , respectively, over the fourth quarter of 2023.
Net Income, EPS, and EBITDA (in millions, except per share amounts):
Three Months Ended | Twelve Months Ended | ||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||
Net Income (Loss) | $ 1 | $ (217) | $ (1,119) | $ (100) | |||
Adjusted Net Income | $ 41 | $ 50 | $ 127 | $ 269 | |||
Diluted Earnings (Loss) | $ 0.01 | $ (1.27) | $ (6.50) | $ (0.60) | |||
Adjusted Diluted EPS | $ 0.24 | $ 0.29 | $ 0.73 | $ 1.53 | |||
Adjusted EBITDA | $ 91 | $ 101 | $ 296 | $ 464 | |||
Outlook:
We are providing the following guidance for the full year 2025:
- Core sales growth of
1% to3% - Adjusted EBITDA margins of approximately
14% . - Adjusted earnings per share ranging between
$0.95 $1.05
Please note, we do not provide forward-looking estimates on a GAAP basis as certain information is not available and cannot be reasonably estimated.
Envista will discuss its quarterly results and provide details on its outlook for 2025 during an investor conference call today starting at 2:30 P.M. PT. The call and an accompanying slide presentation will be webcast on the "Investors" section of Envista's website, www.envistaco.com, under the subheading "Events & Presentations." A replay of the webcast will be available in the same section of Envista's website shortly after the conclusion of the presentation and will remain available until the next quarterly earnings call.
The conference call can be accessed by dialing 800-225-9448 within the
ABOUT ENVISTA
Envista is a global family of more than 30 trusted dental brands, including Nobel Biocare, Ormco, DEXIS, and Kerr united by a shared purpose: to partner with professionals to improve lives. Envista helps its customers deliver the best possible patient care through industry-leading dental consumables, solutions, technology, and services. Our comprehensive portfolio, including dental implants and treatment options, orthodontics, and digital imaging technologies, covers a wide range of dentists' clinical needs for diagnosing, treating, and preventing dental conditions as well as improving the aesthetics of the human smile. With a foundation comprised of the proven Envista Business System (EBS) methodology, an experienced leadership team, and a strong culture grounded in continuous improvement, commitment to innovation, and deep customer focus, Envista is well equipped to meet the end-to-end needs of dental professionals worldwide. Envista is one of the largest global dental products companies, with significant market positions in some of the most attractive segments of the dental products industry. For more information, please visit www.envistaco.com.
NON-GAAP MEASURES
All "Adjusted" amounts including core sales growth and free cash flow are non-GAAP items. Calculations of these measures, the reasons why we believe these measures provide useful information to investors, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these non-GAAP measures are included in the attached supplemental schedules. We do not reconcile forward looking non-GAAP measures to the comparable GAAP measures because of the inherent difficulty in predicting and estimating the future impact and timing of currency translation, acquisitions, discontinued products, and any other potential adjustments which would be reflected in any forecasted GAAP measure.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release 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 suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include, among other things, the conditions in the
CONTACT
Jim Gustafson
Vice President, Investor Relations
Envista Holdings Corporation
200 S. Kraemer Blvd., Building E
IR@envistaco.com
ENVISTA HOLDINGS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) ($ and shares in millions, except per share amounts) | |||||||
Three Months Ended | Twelve Month Ended | ||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||
Sales | $ 652.9 | $ 645.6 | $ 2,510.6 | $ 2,566.5 | |||
Cost of sales | 280.4 | 309.7 | 1,137.9 | 1,126.0 | |||
Gross profit | 372.5 | 335.9 | 1,372.7 | 1,440.5 | |||
Operating expenses: | |||||||
Selling, general and administrative | 299.7 | 260.2 | 1,158.0 | 1,056.9 | |||
Research and development | 26.7 | 20.2 | 99.1 | 93.8 | |||
Goodwill and intangible asset impairment | — | 258.3 | 1,153.8 | 258.3 | |||
Operating profit (loss) | 46.1 | (202.8) | (1,038.2) | 31.5 | |||
Nonoperating income (expense): | |||||||
Other income (expense), net | 0.3 | 1.7 | (0.1) | (23.0) | |||
Interest expense, net | (9.9) | (13.9) | (46.4) | (63.4) | |||
Income (loss) before income taxes | 36.5 | (215.0) | (1,084.7) | (54.9) | |||
Income tax expense | 35.3 | 2.4 | 33.9 | 45.3 | |||
Net income (loss) | $ 1.2 | $ (217.4) | $ (1,118.6) | $ (100.2) | |||
Earnings (loss) per share: | |||||||
Earnings (loss) earnings - basic | $ 0.01 | $ (1.27) | $ (6.50) | $ (0.60) | |||
Earnings (loss) earnings - diluted | $ 0.01 | $ (1.27) | $ (6.50) | $ (0.60) | |||
Average common stock and common | |||||||
Basic | 172.5 | 171.7 | 172.2 | 166.9 | |||
Diluted | 173.7 | 171.7 | 172.2 | 166.9 | |||
ENVISTA HOLDINGS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) ($ in millions, except share amounts) | |||
As of | |||
December 31, 2024 | December 31, 2023 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 1,069.1 | $ 940.0 | |
Trade accounts receivable, less allowance for credit losses of | 363.0 | 407.5 | |
Inventories, net | 241.0 | 258.8 | |
Prepaid expenses and other current assets | 115.2 | 137.4 | |
Total current assets | 1,788.3 | 1,743.7 | |
Property, plant and equipment, net | 277.0 | 309.6 | |
Operating lease right-of-use assets | 142.8 | 125.1 | |
Other long-term assets | 230.6 | 180.5 | |
Goodwill | 2,261.9 | 3,292.2 | |
Other intangible assets, net | 649.9 | 954.0 | |
Total assets | $ 5,350.5 | $ 6,605.1 | |
LIABILITIES AND EQUITY | |||
Current liabilities: | |||
Short-term debt | $ 116.0 | $ 115.3 | |
Trade accounts payable | 174.6 | 179.5 | |
Accrued expenses and other liabilities | 553.6 | 455.7 | |
Operating lease liabilities | 34.5 | 30.3 | |
Total current liabilities | 878.7 | 780.8 | |
Operating lease liabilities | 118.9 | 109.9 | |
Other long-term liabilities | 139.8 | 142.4 | |
Long-term debt | 1,278.3 | 1,398.1 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock, | — | — | |
Common stock, | 1.7 | 1.7 | |
Additional paid-in capital | 3,791.6 | 3,758.2 | |
Accumulated (deficit) earnings | (487.4) | 631.2 | |
Accumulated other comprehensive loss | (371.1) | (217.2) | |
Total stockholders' equity | 2,934.8 | 4,173.9 | |
Total liabilities and stockholders' equity | $ 5,350.5 | $ 6,605.1 | |
ENVISTA HOLDINGS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) ($ in millions) | |||||
Year Ended | |||||
2024 | 2023 | 2022 | |||
Cash flows from operating activities: | |||||
Net (loss) income | $ (1,118.6) | $ (100.2) | $ 243.1 | ||
Noncash items: | |||||
Depreciation | 40.8 | 36.0 | 31.8 | ||
Amortization | 82.3 | 99.6 | 106.0 | ||
Allowance for credit losses | 17.9 | 7.1 | 4.8 | ||
Stock-based compensation expense | 35.3 | 30.7 | 30.5 | ||
Loss (gain) on equity investments, net | 0.4 | (3.6) | — | ||
Loss (gain) on sale of property, plant and equipment | 2.8 | (5.4) | (1.9) | ||
Gain on sale of KaVo treatment unit and instrument business | — | — | (8.9) | ||
Restructuring charges | — | 1.3 | 4.7 | ||
Goodwill and intangible asset impairments | 1,153.8 | 258.3 | — | ||
Fixed assets impairments and other charges | 17.1 | 0.2 | 6.4 | ||
Fair value adjustment of acquisition-related inventory | — | — | 9.5 | ||
Non-cash operating lease costs | 31.4 | 27.0 | 24.3 | ||
Inducement expense related to exchange of convertible notes | — | 28.5 | — | ||
Amortization of debt discount and issuance costs | 4.9 | 4.6 | 4.1 | ||
Deferred income taxes | (29.0) | (37.0) | (29.0) | ||
Change in trade accounts receivable | 10.0 | (17.0) | (71.0) | ||
Change in inventories | 3.6 | 35.1 | (39.9) | ||
Change in trade accounts payable | (1.2) | (46.3) | 44.5 | ||
Change in prepaid expenses and other assets | (6.7) | 3.3 | (11.7) | ||
Change in accrued expenses and other liabilities | 134.5 | (12.0) | (133.0) | ||
Change in operating lease liabilities | (42.8) | (34.5) | (31.6) | ||
Net cash provided by operating activities | 336.5 | 275.7 | 182.7 | ||
Cash flows from investing activities: | |||||
Payments for additions to property, plant and equipment | (33.8) | (58.2) | (75.7) | ||
Purchases of investments held in rabbi trust | (32.8) | — | — | ||
Proceeds from sale of investments held in rabbi trust | 9.3 | — | — | ||
Proceeds from sales of property, plant and equipment | 0.1 | 6.1 | 3.3 | ||
Proceeds from sale of equity investment | 0.4 | 10.7 | — | ||
Acquisitions, net of cash acquired | — | — | (696.2) | ||
Proceeds from sale of KaVo treatment unit and instrument business, net | — | — | 73.9 | ||
Proceeds from the settlement of derivative financial instruments | 2.5 | 1.6 | 56.0 | ||
All other investing activities, net | (0.3) | (22.6) | (18.6) | ||
Net cash used in investing activities | (54.6) | (62.4) | (657.3) | ||
Cash flows from financing activities: | |||||
Proceeds from stock option exercises | 2.4 | 11.3 | 21.8 | ||
Tax withholding payment related to net settlement of equity awards | (5.3) | (7.9) | (9.1) | ||
Proceeds from issuance of convertible notes due 2028 | — | 500.2 | — | ||
Debt issuance costs related to issuance of convertible notes due 2028 | — | (13.8) | — | ||
Principal paid related to exchange of convertible notes due 2025 | — | (401.2) | — | ||
Proceeds from borrowings | — | 323.5 | 0.3 | ||
Repayment of borrowings | (100.0) | (288.8) | (0.5) | ||
Proceeds from revolving line of credit | — | — | 124.0 | ||
Repayment of revolving line of credit | — | — | (124.0) | ||
Debt issuance costs related to other borrowings | — | (4.5) | — | ||
All other financing activities | (0.8) | 0.1 | — | ||
Net cash (used in) provided by financing activities | (103.7) | 118.9 | 12.5 | ||
Effect of exchange rate changes on cash and cash equivalents | (49.1) | 0.9 | (4.6) | ||
Net change in cash and cash equivalents | 129.1 | 333.1 | (466.7) | ||
Beginning balance of cash and cash equivalents | 940.0 | 606.9 | 1,073.6 | ||
Ending balance of cash and cash equivalents | $ 1,069.1 | $ 940.0 | $ 606.9 | ||
ENVISTA HOLDINGS CORPORATION SUMMARY OF FINANCIAL METRICS (Unaudited) ($ in millions, except per share amounts) | |||||||
GAAP | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||
Gross Profit | $ 372.5 | $ 335.9 | $ 1,372.7 | $ 1,440.5 | |||
Operating Profit (Loss) | $ 46.1 | $ (202.8) | $ (1,038.2) | $ 31.5 | |||
Net Income (Loss) | $ 1.2 | $ (217.4) | $ (1,118.6) | $ (100.2) | |||
Diluted Earnings (Loss) Per Share | $ 0.01 | $ (1.27) | $ (6.50) | $ (0.60) | |||
Operating Cash Flow | $ 132.4 | $ 102.0 | $ 336.5 | $ 275.7 | |||
NON-GAAP * | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||
Adjusted Gross Profit | $ 373.3 | $ 338.6 | $ 1,391.6 | $ 1,450.5 | |||
Adjusted Operating Profit | $ 81.5 | $ 89.6 | $ 254.3 | $ 425.8 | |||
Adjusted Net Income | $ 41.1 | $ 49.7 | $ 126.5 | $ 269.2 | |||
Adjusted Diluted EPS | $ 0.24 | $ 0.29 | $ 0.73 | $ 1.53 | |||
Adjusted EBITDA | $ 91.0 | $ 100.5 | $ 296.1 | $ 464.2 | |||
Free Cash Flow | $ 123.9 | $ 99.9 | $ 302.8 | $ 223.6 | |||
* For information on non-GAAP measures see "Reconciliation of GAAP to Non-GAAP Financial Measures" below. Also see the accompanying "Notes to Reconciliation of GAAP to Non-GAAP Financial Measures." |
ENVISTA HOLDINGS CORPORATION SEGMENT INFORMATION (Unaudited) ($ in millions) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||
Sales | |||||||
Specialty Products & Technologies | $ 410.9 | $ 415.9 | $ 1,616.4 | $ 1,642.4 | |||
Equipment & Consumables | 242.0 | 229.7 | 894.2 | 924.1 | |||
Total | $ 652.9 | $ 645.6 | $ 2,510.6 | $ 2,566.5 | |||
Operating Profit (Loss) | |||||||
Specialty Products & Technologies | $ 27.4 | $ 43.9 | $ 89.9 | $ 232.1 | |||
Equipment & Consumables | 51.6 | 31.5 | 152.3 | 156.3 | |||
Other | (32.9) | (278.2) | (1,280.4) | (356.9) | |||
Total | $ 46.1 | $ (202.8) | $ (1,038.2) | $ 31.5 | |||
Operating Margins | |||||||
Specialty Products & Technologies | 6.7 % | 10.6 % | 5.6 % | 14.1 % | |||
Equipment & Consumables | 21.3 % | 13.7 % | 17.0 % | 16.9 % | |||
Total | 7.1 % | (31.4) % | (41.4) % | 1.2 % | |||
ENVISTA HOLDINGS CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) ($ in millions, except per share amounts)
| |||||||
Adjusted Gross Profit and Adjusted Gross Margin | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||
Gross Profit | $ 372.5 | $ 335.9 | $ 1,372.7 | $ 1,440.5 | |||
Restructuring costs and asset impairments B | 0.8 | 2.7 | 18.9 | 10.0 | |||
Adjusted Gross Profit | $ 373.3 | $ 338.6 | $ 1,391.6 | $ 1,450.5 | |||
Gross Margin (Gross Profit / Sales) | 57.1 % | 52.0 % | 54.7 % | 56.1 % | |||
Adjusted Gross Margin (Adjusted Gross Profit / | 57.2 % | 52.4 % | 55.4 % | 56.5 % | |||
Adjusted Operating Profit | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||
Consolidated | |||||||
Operating Profit (Loss) | $ 46.1 | $ (202.8) | $ (1,038.2) | $ 31.5 | |||
Amortization of acquisition-related and other | 18.6 | 23.7 | 82.3 | 99.6 | |||
Goodwill and intangible asset impairments A | — | 258.3 | 1,153.8 | 258.3 | |||
Restructuring costs and asset impairments B | 15.0 | 10.4 | 49.9 | 35.1 | |||
Litigation settlement C | 1.8 | — | 6.5 | — | |||
Acquisition related expenses E | — | — | — | 1.3 | |||
Adjusted Operating Profit | $ 81.5 | $ 89.6 | $ 254.3 | $ 425.8 | |||
Adjusted Operating Profit as a % of Sales | 12.5 % | 13.9 % | 10.1 % | 16.6 % | |||
Specialty Products & Technologies | |||||||
Operating Profit | $ 27.4 | $ 43.9 | $ 89.9 | $ 232.1 | |||
Amortization of acquisition-related and other | 14.3 | 15.5 | 57.4 | 62.8 | |||
Restructuring costs and asset impairments B | 5.7 | 4.5 | 26.8 | 14.0 | |||
Adjusted Operating Profit | $ 47.4 | $ 63.9 | $ 174.1 | $ 308.9 | |||
Adjusted Operating Profit as a % of Sales | 11.5 % | 15.4 % | 10.8 % | 18.8 % | |||
Equipment & Consumables | |||||||
Operating Profit | $ 51.6 | $ 31.5 | $ 152.3 | $ 156.3 | |||
Amortization of acquisition-related and other | 4.3 | 8.2 | 24.9 | 36.8 | |||
Restructuring costs and asset impairments B | 3.2 | 5.0 | 7.4 | 19.0 | |||
Litigation settlement C | 1.8 | — | 1.8 | — | |||
Adjusted Operating Profit | $ 60.9 | $ 44.7 | $ 186.4 | $ 212.1 | |||
Adjusted Operating Profit as a % of Sales | 25.2 % | 19.5 % | 20.8 % | 23.0 % | |||
See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||
Adjusted Net Income | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||
Net Income (Loss) | $ 1.2 | $ (217.4) | $ (1,118.6) | $ (100.2) | |||
Amortization of acquisition-related and other | 18.6 | 23.7 | 82.3 | 99.6 | |||
Goodwill and intangible asset impairments A | — | 258.3 | 1,153.8 | 258.3 | |||
Restructuring costs and asset impairments B | 15.0 | 10.4 | 49.9 | 35.1 | |||
Litigation settlement C | 1.8 | — | 6.5 | — | |||
Loss (gain) on equity investments, net D | — | — | 1.1 | (3.6) | |||
Acquisition related expenses E | — | — | — | 1.3 | |||
Inducement and other expenses related to | — | — | — | 29.0 | |||
Tax effect of adjustments reflected above G | (23.5) | (14.2) | (77.3) | (39.7) | |||
Discrete tax adjustments and other tax-related | 28.0 | (11.1) | 28.8 | (10.6) | |||
Adjusted Net Income | $ 41.1 | $ 49.7 | $ 126.5 | $ 269.2 | |||
Adjusted Diluted Earnings Per Share | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||
Diluted Earnings (Loss) | $ 0.01 | $ (1.27) | $ (6.50) | $ (0.60) | |||
Amortization of acquisition-related and other | 0.11 | 0.14 | 0.48 | 0.57 | |||
Goodwill and intangible asset impairments A | — | 1.49 | 6.66 | 1.47 | |||
Restructuring costs and asset impairments B | 0.09 | 0.06 | 0.29 | 0.20 | |||
Litigation settlement C | 0.01 | — | 0.04 | — | |||
Loss (gain) on equity investments, net D | — | — | 0.01 | (0.02) | |||
Acquisition related expenses E | — | — | — | 0.01 | |||
Inducement and other expenses related to | — | — | — | 0.17 | |||
Tax effect of adjustments reflected above G | (0.14) | (0.08) | (0.45) | (0.23) | |||
Discrete tax adjustments and other tax-related | 0.16 | (0.06) | 0.17 | (0.06) | |||
Net (loss) to adjusted net income share | — | 0.01 | 0.03 | 0.02 | |||
Adjusted Diluted Earnings Per Share | $ 0.24 | $ 0.29 | $ 0.73 | $ 1.53 | |||
Adjusted Diluted Shares Outstanding | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, | December 31, | December 31, | December 31, | ||||
Average common stock shares outstanding - basic | 172.5 | 171.7 | 172.2 | 166.9 | |||
Assumed exercise of dilutive options and vesting of | 1.2 | 1.8 | 1.0 | 8.7 | |||
Average common stock and common equivalent shares | 173.7 | 173.5 | 173.2 | 175.6 | |||
Adjusted EBITDA | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||
Net Income (Loss) | $ 1.2 | $ (217.4) | $ (1,118.6) | $ (100.2) | |||
Interest expense, net | 9.9 | 13.9 | 46.4 | 63.4 | |||
Income tax expense | 35.3 | 2.4 | 33.9 | 45.3 | |||
Depreciation | 9.2 | 9.2 | 40.8 | 36.0 | |||
Amortization of acquisition-related and other | 18.6 | 23.7 | 82.3 | 99.6 | |||
Goodwill and intangible asset impairments A | — | 258.3 | 1,153.8 | 258.3 | |||
Restructuring costs and asset impairments B | 15.0 | 10.4 | 49.9 | 35.1 | |||
Litigation settlement C | 1.8 | — | 6.5 | — | |||
Loss (gain) on equity investments, net D | — | — | 1.1 | (3.6) | |||
Acquisition related expenses E | — | — | — | 1.3 | |||
Inducement and other expenses related to | — | — | — | 29.0 | |||
Adjusted EBITDA | $ 91.0 | $ 100.5 | $ 296.1 | $ 464.2 | |||
Adjusted EBITDA as a % of Sales | 13.9 % | 15.6 % | 11.8 % | 18.1 % | |||
See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||
Core Sales Growth 1 | |||
Consolidated | % Change Three Month | % Change Twelve Month | |
Total sales growth | 1.1 % | (2.2) % | |
Plus the impact of: | |||
Currency exchange rates | 0.9 % | 0.7 % | |
Core sales growth | 2.0 % | (1.5) % | |
Specialty Products & Technologies | |||
Total sales growth | (1.2) % | (1.6) % | |
Plus the impact of: | |||
Currency exchange rates | 0.8 % | 0.7 % | |
Core sales growth | (0.4) % | (0.9) % | |
Equipment & Consumables | |||
Total sales growth | 5.4 % | (3.2) % | |
Plus the impact of: | |||
Currency exchange rates | 1.0 % | 0.6 % | |
Core sales growth | 6.4 % | (2.6) % | |
1 | We use the term "core sales" to refer to GAAP revenue excluding (1) sales from acquired businesses recorded prior to the first anniversary of the acquisition ("acquisitions"), (2) sales from discontinued products and (3) the impact of currency translation. Sales from discontinued products includes major brands or products that Envista has made the decision to discontinue as part of a portfolio restructuring. Discontinued brands or products consist of those which Envista (1) is no longer manufacturing, (2) is no longer investing in the research or development of, and (3) expects to discontinue all significant sales within one year from the decision date to discontinue. The portion of sales attributable to discontinued brands or products is calculated as the net decline of the applicable discontinued brand or product from period-to-period. The portion of GAAP revenue attributable to currency exchange rates is calculated as the difference between (a) the period-to-period change in sales and (b) the period-to-period change in sales after applying current period foreign exchange rates to the prior year period. We use the term "core sales growth" to refer to the measure of comparing current period core sales with the corresponding period of the prior year. |
Reconciliation of Operating Cash Flows to Free Cash Flow | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||
Net Operating Cash Provided by Operating | $ 132.4 | $ 102.0 | $ 336.5 | $ 275.7 | |||
Less: payments for additions to property, plant | (8.6) | (8.2) | (33.8) | (58.2) | |||
Plus: proceeds from sales of property, plant | 0.1 | 6.1 | 0.1 | 6.1 | |||
Free Cash Flow | $ 123.9 | $ 99.9 | $ 302.8 | $ 223.6 | |||
See the accompanying 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 Represents impairment charge related to goodwill and certain intangible assets.
B We exclude impairment of certain long-lived assets, executive transition costs, and cost incurred pursuant to discrete restructuring plans that are fundamentally different (in terms of the size, strategic nature and planning requirements) from the ongoing productivity improvements, that result from application of the Envista Business System. These costs are incremental to the operating activities that arise in the ordinary course of our business and we believe are not indicative of Envista's ongoing operating costs in a given period.
C Represents the settlement of certain litigation matters.
D Represents gains or losses on equity investments.
E These represent acquisition related transaction expenses and integration costs with respect to business combinations.
F These costs primarily relate to inducement and other expenses incurred in connection with our partial exchange of our 2025 Convertible Senior Notes.
G This line item reflects the aggregate tax effect of all pretax adjustments reflected in the preceding line items of the table using each adjustment's applicable tax rate, including the effect of interim tax accounting requirements of Accounting Standards Codification Topic 740 Income Taxes.
H The discrete tax matters relate primarily to excess tax benefits from stock-based compensation, changes in estimates associated with prior period uncertain tax positions and audit settlements, tax benefits resulting from a change in law, and changes in determination of realization of certain deferred tax assets.
I The Company was in a net loss position for the year ended December 31, 2024, therefore no shares reserved for issuance upon exercise of stock options, vesting of restricted stock and performance stock units or assumed conversion of the convertible senior notes due 2025 were included in the computation of diluted loss per share as their inclusion would have been anti-dilutive. However, given that the adjustments noted in footnotes A-H resulted in adjusted net income for the year ended December 31, 2024, the dilutive impact of stock options, restricted stock and performance stock units and assumed conversion of the convertible senior secured notes due 2025 are being included to arrive at adjusted diluted shares outstanding.
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 that these measures provide useful information to investors by offering additional ways of viewing Envista Holdings Corporation's ("Envista" or the "Company") results that, when reconciled to the corresponding GAAP measure, help our investors to:
- with respect to Adjusted Gross Profit, Adjusted Operating Profit, Adjusted Net Income, Adjusted Diluted Earnings Per Share and Adjusted EBITDA, understand the long-term profitability trends of Envista's business and compare Envista's profitability to prior and future periods and to Envista's peers;
- with respect to Core Sales, identify underlying growth trends in Envista's business and compare Envista's revenue performance with prior and future periods and to Envista's peers;
- with respect to Adjusted EBITDA, help investors understand operational factors associated with Envista's financial performance because it excludes the following from consideration: interest, taxes, depreciation, amortization, and infrequent or unusual losses or gains such as goodwill impairment charges or nonrecurring and restructuring charges. Management uses Adjusted EBITDA, as a supplemental measure for assessing operating performance in conjunction with related GAAP amounts. In addition, Adjusted EBITDA is used in connection with operating decisions, strategic planning, annual budgeting, evaluating Company performance and comparing operating results with historical periods and with industry peer companies; and
- with respect to Free Cash Flow (the "FCF Measure"), understand Envista's ability to generate cash without external financings, invest in its business and grow its business through acquisitions and other strategic opportunities. A limitation of free cash flow is that it does not take into account the Company's debt service requirements and other non-discretionary expenditures, and as a result the entire Free Cash Flow amount is not necessarily available for discretionary expenditures.
- with respect to Adjusted Diluted Shares Outstanding, allows for the dilutive impact of stock options, restricted stock and performance stock units and assumed conversion of the convertible senior secured notes due 2025 as the Company is reporting adjusted net income compared to net loss under GAAP;
Management uses these non-GAAP measures to evaluate the Company's operating and financial performance.
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 EBITDA:
- We exclude the amortization of acquisition-related and other intangible assets because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate. While we have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition's purchase price allocated to intangible assets and related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition. Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly acquired and long-held businesses, and with both acquisitive and non-acquisitive peer companies. We believe, however, that it is important for investors to understand that such intangible assets contribute to revenue generation and that intangible asset amortization related to past acquisitions will recur in future periods until such intangible assets have been fully amortized.
- With respect to the other items excluded from Adjusted Gross Profit, Adjusted Net Income, Adjusted Operating Profit, Adjusted Diluted Earnings Per Share and Adjusted EBITDA, we exclude these items because they are of a nature and/or size that occur with inconsistent frequency, occur for reasons that may be unrelated to Envista's commercial performance during the period and/or we believe that such items may obscure underlying business trends and make comparisons of long-term performance difficult.
- With respect to core sales, we exclude (1) the effect of acquisitions and divested product lines because the timing, size, number and nature of such transactions can vary significantly from period-to-period and between us and our peers, which we believe may obscure underlying business trends and make comparisons of long-term performance difficult, (2) sales from discontinued products because discontinued products do not have a continuing contribution to operations and management believes that excluding such items provides investors with a means of evaluating our on-going operations and facilitates comparisons to our peers, and (3) the impact of currency translation because it is not under management's control, is subject to volatility and can obscure underlying business trends.
- With respect to the FCF Measure, we adjust for payments for additions to property, plant and equipment (net of the proceeds from capital disposals) to arrive at the amount of operating cash flow for the period that remains after accounting for the Company's capital expenditure requirements.
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SOURCE Envista Holdings Corporation
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