BREA, Calif., May 4, 2022 /PRNewswire/ -- Envista Holdings Corporation (NYSE: NVST) today announced results for the first quarter 2022.
As previously disclosed, on December 31, 2021, we completed the sale of the KaVo Treatment Unit and Instrument business. All results in this release reflect only continuing operations unless otherwise noted.
For the quarter ended April 1, 2022, sales increased 3.1% to $631.4 million with core sales growth of 5.4% over the corresponding quarter in 2021.
For the first quarter of 2022, net income was $70.4 million or $0.39 per diluted share. During the same period, adjusted net income was $84.9 million or $0.47 per diluted share compared to $0.49 per diluted share in the same period of 2021. Adjusted EBITDA for the first quarter of 2022 was $124.6 million compared to $132.3 million in the first quarter of 2021.
Amir Aghdaei, Chief Executive Officer, stated, "Despite a challenging macro environment, we delivered another solid quarter. With core sales growth of 5.4% and adjusted EBITDA margin of 19.7%, our team is reinforcing our track record of EBS driven execution as we continue in our journey to build a strategically differentiated company. We remain focused on investing in our long-term growth initiatives while also expanding margins."
Mr. Aghdaei continued, "In addition to delivering a solid first quarter, we continue to make progress in transforming our portfolio. With the closing of the acquisition of Carestream Dental's Intraoral Scanner (IOS) business, we have now added a suite of world-class scanners and software solutions that further differentiate our portfolio and support our vision of digitizing, personalizing, and democratizing dental care. Our purpose is to partner with dental professionals to create long-term value for patients, our customers, our employees, and our shareholders."
2022 Guidance
With the closing of the IOS acquisition, we expect the newly branded DEXIS IOS business to deliver between $35 - $45 million in sales over the balance of 2022. We expect sales in the second quarter to be between $5 - $10 million with sales accelerating significantly throughout 2022. We further expect to invest greater than $10 million in one-time costs to support both the integration and position the business for long-term growth. We expect about half of this investment to be in the second quarter.
For the rest of our business, there is no change to our previous guidance. We expect to deliver core sales growth of between 6% - 8% for the full year 2022. We also expect our adjusted EBITDA margin to be greater than 20% for the full year. For the second quarter, we expect to deliver mid-single digit core sales growth and achieve an adjusted EBITDA margin in the high teens.
Envista will discuss its quarterly results and provide an outlook for 2022 during an investor conference call today starting at 2:00 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 866-831-8713 within the U.S. or by dialing +1 203-518-9822 outside the U.S. a few minutes before the 2:00 P.M. PT start and referencing conference ID #2849611. A replay of the conference call will be available shortly after the conclusion of the call. You can access the replay dial-in information on the "Investors" section of Envista's website under the subheading "Events & Presentations." Presentation materials relating to Envista's results have been posted to the "Investors" section of Envista's website under the subheading "Quarterly Earnings." In addition, selected unaudited historical financial information for continuing operations has been posted to the "Investors" section of Envista's website.
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.
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 impact of the COVID-19 pandemic, including new variants of the virus, the pace of recovery in the markets in which we operate, global supply chain disruptions and potential staffing shortages, the conditions in the U.S. and global economy, the markets served by us and the financial markets, the impact of our debt obligations on our operations and liquidity, developments and uncertainties in trade policies and regulations, contractions or growth rates and cyclicality of markets we serve, the effect of the intraoral scanner acquisition on our business relationships, operating results, share price or business generally, the failure to realize the expected benefits from the intraoral scanner acquisition or the recent divestiture of our treatment unit and instrument business, fluctuations in inventory of our distributors and customers, loss of a key distributor, our relationships with and the performance of our channel partners, competition, our ability to develop and successfully market new products and services, the potential for improper conduct by our employees, agents or business partners, our compliance with applicable laws and regulations (including regulations relating to medical devices and the health care industry), the results of our clinical trials and perceptions thereof, penalties associated with any off-label marketing of our products, modifications to our products that require new marketing clearances or authorizations, our ability to effectively address cost reductions and other changes in the health care industry, our ability to successfully identify and consummate appropriate acquisitions and strategic investments, our ability to integrate the businesses we acquire and achieve the anticipated benefits of such acquisitions, contingent liabilities relating to acquisitions, investments and divestitures, security breaches or other disruptions of our information technology systems or violations of data privacy laws, our ability to adequately protect our intellectual property, the impact of our restructuring activities on our ability to grow, risks relating to currency exchange rates, changes in tax laws applicable to multinational companies, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, risks relating to product, service or software defects, risks relating to product manufacturing, commodity costs and surcharges, our ability to adjust purchases and manufacturing capacity to reflect market conditions, reliance on sole or limited sources of supply, the impact of regulation on demand for our products and services, labor matters, international economic, political, legal, compliance and business factors, and disruptions relating to war, terrorism, climate change, widespread protests and civil unrest, man-made and natural disasters, public health issues and other events. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our Annual Report on Form 10-K for fiscal year 2021 and our Quarterly reports on Form 10-Q. These forward-looking statements speak only as of the date of this press release and except to the extent required by applicable law, we do not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.
CONTACT
Stephen Keller
Investor Relations
Envista Holdings Corporation
200 S. Kraemer Blvd., Building E
Brea, CA 92821
Telephone: (714) 817-7000
Fax: (714) 817-5450
ENVISTA HOLDINGS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) ($ and shares in millions, except per share amounts) |
|||
Three Months Ended |
|||
April 1, 2022 |
April 2, 2021 |
||
Sales |
$ 631.4 |
$ 612.6 |
|
Cost of sales |
257.3 |
254.2 |
|
Gross profit |
374.1 |
358.4 |
|
Operating expenses: |
|||
Selling, general and administrative |
258.2 |
237.5 |
|
Research and development |
24.4 |
25.8 |
|
Operating profit |
91.5 |
95.1 |
|
Nonoperating income (expense): |
|||
Other income |
0.3 |
0.3 |
|
Interest expense, net |
(5.9) |
(18.0) |
|
Income before income taxes |
85.9 |
77.4 |
|
Income tax expense |
15.5 |
15.6 |
|
Income from continuing operations, net of tax |
70.4 |
61.8 |
|
Income from discontinued operations, net of tax |
4.5 |
9.9 |
|
Net income |
$ 74.9 |
$ 71.7 |
|
Earnings per share: |
|||
Earnings from continuing operations - basic |
$ 0.43 |
$ 0.39 |
|
Earnings from continuing operations - diluted |
$ 0.39 |
$ 0.35 |
|
Earnings from discontinued operations - basic |
$ 0.03 |
$ 0.06 |
|
Earnings from discontinued operations - diluted |
$ 0.03 |
$ 0.06 |
|
Earnings - basic |
$ 0.46 |
$ 0.45 |
|
Earnings - diluted |
$ 0.42 |
$ 0.41 |
|
Average common stock and common equivalent shares outstanding: |
|||
Basic |
162.2 |
160.5 |
|
Diluted |
179.8 |
175.9 |
ENVISTA HOLDINGS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) ($ in millions, except share amounts) |
|||
As of |
|||
April 1, 2022 |
December 31, 2021 |
||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 1,078.3 |
$ 1,073.6 |
|
Trade accounts receivable, less allowance for credit losses of $20.3 and $20.7, |
342.6 |
331.9 |
|
Inventories, net |
280.4 |
263.8 |
|
Prepaid expenses and other current assets |
197.4 |
154.3 |
|
Assets held for sale |
10.2 |
12.2 |
|
Total current assets |
1,908.9 |
1,835.8 |
|
Property, plant and equipment, net |
264.2 |
264.1 |
|
Operating lease right-of-use assets |
127.0 |
128.1 |
|
Other long-term assets |
174.9 |
167.8 |
|
Goodwill |
3,090.5 |
3,132.0 |
|
Other intangible assets, net |
1,006.8 |
1,046.4 |
|
Total assets |
$ 6,572.3 |
$ 6,574.2 |
|
LIABILITIES AND EQUITY |
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Current liabilities: |
|||
Short-term debt |
$ 507.8 |
$ 432.4 |
|
Trade accounts payable |
180.6 |
185.8 |
|
Accrued expenses and other liabilities |
541.4 |
562.3 |
|
Operating lease liabilities |
23.5 |
23.7 |
|
Liabilities held for sale |
2.4 |
4.0 |
|
Total current liabilities |
1,255.7 |
1,208.2 |
|
Operating lease liabilities |
120.6 |
120.4 |
|
Other long-term liabilities |
288.2 |
304.2 |
|
Long-term debt |
876.9 |
883.4 |
|
Commitments and contingencies |
|||
Stockholders' equity: |
|||
Preferred stock, $0.01 par value, 15.0 million shares authorized; no shares issued or |
— |
— |
|
Common stock - $0.01 par value, 500.0 million shares authorized; 163.2 million |
1.6 |
1.6 |
|
Additional paid-in capital |
3,667.9 |
3,732.6 |
|
Retained earnings |
563.2 |
466.9 |
|
Accumulated other comprehensive loss |
(201.8) |
(143.5) |
|
Total Envista stockholders' equity |
4,030.9 |
4,057.6 |
|
Noncontrolling interests |
— |
0.4 |
|
Total stockholders' equity |
4,030.9 |
4,058.0 |
|
Total liabilities and stockholders' equity |
$ 6,572.3 |
$ 6,574.2 |
ENVISTA HOLDINGS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) ($ in millions) |
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Three Months Ended |
||
April 1, 2022 |
April 2, 2021 |
|
Cash flows from operating activities: |
||
Net income |
$ 74.9 |
$ 71.7 |
Noncash items: |
||
Depreciation |
7.8 |
10.3 |
Amortization |
23.5 |
21.0 |
Allowance for credit losses |
1.7 |
2.9 |
Stock-based compensation expense |
7.5 |
6.4 |
Gain on sale of Kavo treatment unit and instrument business |
(6.0) |
— |
Restructuring charges |
(1.9) |
— |
Impairment charges |
3.9 |
1.9 |
Amortization of right-of-use assets |
6.4 |
7.2 |
Amortization of debt discount and issuance costs |
1.0 |
6.2 |
Change in trade accounts receivable |
(16.2) |
(5.1) |
Change in inventories |
(20.3) |
(20.4) |
Change in trade accounts payable |
(2.5) |
(27.6) |
Change in prepaid expenses and other assets |
(16.8) |
(7.9) |
Change in accrued expenses and other liabilities |
(51.5) |
(37.9) |
Change in operating lease liabilities |
(8.0) |
(12.1) |
Net cash provided by operating activities |
3.5 |
16.6 |
Cash flows from investing activities: |
||
Payments for additions to property, plant and equipment |
(19.8) |
(8.3) |
Proceeds from sale of Kavo treatment unit and instrument business |
30.0 |
— |
All other investing activities, net |
(5.1) |
2.8 |
Net cash provided by (used in) investing activities |
5.1 |
(5.5) |
Cash flows from financing activities: |
||
Payment of debt issuance and other deferred financing costs |
— |
(0.4) |
Proceeds from borrowings |
0.3 |
— |
Repayment of borrowings |
(0.5) |
(475.5) |
Proceeds from stock option exercises |
13.1 |
5.3 |
Tax withholding payment related to net settlement of equity awards |
(7.6) |
(5.2) |
All other financing activities |
— |
6.2 |
Net cash provided by (used in) financing activities |
5.3 |
(469.6) |
Effect of exchange rate changes on cash and cash equivalents |
(9.2) |
10.8 |
Net change in cash and cash equivalents |
4.7 |
(447.7) |
Beginning balance of cash and cash equivalents |
1,073.6 |
888.9 |
Ending balance of cash and cash equivalents |
$ 1,078.3 |
$ 441.2 |
ENVISTA HOLDINGS CORPORATION SUMMARY OF FINANCIAL METRICS (Unaudited) ($ in millions, except per share amounts) |
|||
GAAP |
|||
Three Months Ended |
|||
April 1, 2022 |
April 2, 2021 |
||
Gross Profit |
$ 374.1 |
$ 358.4 |
|
Operating Profit From Continuing Operations |
$ 91.5 |
$ 95.1 |
|
Net Income From Continuing Operations |
$ 70.4 |
$ 61.8 |
|
Diluted EPS From Continuing Operations |
$ 0.39 |
$ 0.35 |
|
Operating Cash Flow |
$ 3.5 |
$ 16.6 |
|
NON-GAAP * |
|||
Three Months Ended |
|||
April 1, 2022 |
April 2, 2021 |
||
Adjusted Gross Profit |
$ 373.8 |
$ 361.3 |
|
Adjusted Operating Profit |
$ 116.5 |
$ 123.5 |
|
Adjusted Net Income |
$ 84.9 |
$ 85.4 |
|
Adjusted Diluted EPS |
$ 0.47 |
$ 0.49 |
|
Adjusted EBITDA |
$ 124.6 |
$ 132.3 |
|
Free Cash Flow |
$ (16.3) |
$ 8.3 |
|
* For information on non-GAAP measures see "Reconciliation of GAAP to Non-GAAP Financial Measures" below. Also see |
ENVISTA HOLDINGS CORPORATION SEGMENT INFORMATION (Unaudited) ($ in millions) |
|||
Three Month Period Ended |
|||
April 1, 2022 |
April 2, 2021 |
||
Sales |
|||
Specialty Products & Technologies |
$ 397.1 |
$ 366.5 |
|
Equipment & Consumables |
234.3 |
246.1 |
|
Total |
$ 631.4 |
$ 612.6 |
|
Operating Profit (Loss) |
|||
Specialty Products & Technologies |
$ 70.3 |
$ 78.4 |
|
Equipment & Consumables |
45.5 |
45.0 |
|
Other |
(24.3) |
(28.3) |
|
Total |
$ 91.5 |
$ 95.1 |
|
Operating Margins |
|||
Specialty Products & Technologies |
17.7% |
21.4% |
|
Equipment & Consumables |
19.4% |
18.3% |
|
Total |
14.5% |
15.5% |
ENVISTA HOLDINGS CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) ($ in millions) |
|||
Adjusted Gross Profit and Adjusted Gross Margin |
|||
Three Months Ended |
|||
April 1, 2022 |
April 2, 2021 |
||
Gross Profit |
$ 374.1 |
$ 358.4 |
|
Restructuring costs and asset impairments A |
(0.3) |
2.9 |
|
Adjusted Gross Profit |
$ 373.8 |
$ 361.3 |
|
Gross Margin (Gross Profit / Sales) |
59.2% |
58.5% |
|
Adjusted Gross Margin (Adjusted Gross Profit / Sales) |
59.2% |
59.0% |
|
Adjusted Operating Profit |
|||
Three Month Period Ended |
|||
April 1, 2022 |
April 2, 2021 |
||
Consolidated |
|||
Operating Profit |
$ 91.5 |
$ 95.1 |
|
Amortization of acquisition-related and other intangible assets |
23.5 |
20.6 |
|
Restructuring costs and asset impairments A |
3.7 |
7.8 |
|
Contingent loss reserves B |
1.0 |
— |
|
International tax credit C |
(6.5) |
— |
|
Transaction costs D |
3.3 |
— |
|
Adjusted Operating Profit |
$ 116.5 |
$ 123.5 |
|
Adjusted Operating Profit as a % of Sales |
18.5% |
20.2% |
|
Specialty Products & Technologies |
|||
Operating Profit |
$ 70.3 |
$ 78.4 |
|
Amortization of acquisition-related and other intangible assets |
14.7 |
14.9 |
|
Restructuring costs and asset impairments A |
4.0 |
3.4 |
|
International tax credit C |
(1.7) |
— |
|
Contingent loss reserve B |
1.0 |
— |
|
Adjusted Operating Profit |
$ 88.3 |
$ 96.7 |
|
Adjusted Operating Profit as a % of Sales |
22.2% |
26.4% |
|
Equipment & Consumables |
|||
Operating Profit |
$ 45.5 |
$ 45.0 |
|
Amortization of acquisition-related and other intangible assets |
8.8 |
5.7 |
|
Restructuring costs and asset impairments A |
(0.9) |
1.9 |
|
International tax credit C |
(4.8) |
— |
|
Adjusted Operating Profit |
$ 48.6 |
$ 52.6 |
|
Adjusted Operating Profit as a % of Sales |
20.7% |
21.4% |
|
See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures |
|||
Adjusted Net Income |
|||
Three Months Ended |
|||
April 1, 2022 |
April 2, 2021 |
||
Net Income From Continuing Operations |
$ 70.4 |
$ 61.8 |
|
Amortization of acquisition-related and other intangible assets |
23.5 |
20.6 |
|
Restructuring costs and asset impairments A |
3.7 |
7.8 |
|
Contingent loss reserves B |
1.0 |
— |
|
International tax credit C |
(6.5) |
— |
|
Transaction costs D |
3.3 |
— |
|
Non-cash interest expense - convertible senior notes E |
— |
4.6 |
|
Tax effect of adjustments reflected above F |
(5.7) |
(7.7) |
|
Discrete tax adjustments and other tax-related adjustments G |
(4.8) |
(1.7) |
|
Adjusted Net Income |
$ 84.9 |
$ 85.4 |
|
Adjusted Diluted Earnings Per Share |
|||
Three Months Ended |
|||
April 1, 2022 |
April 2, 2021 |
||
Diluted Earnings From Continuing Operations Per Share |
$ 0.39 |
$ 0.35 |
|
Amortization of acquisition-related and other intangible assets |
0.13 |
0.12 |
|
Restructuring costs and asset impairments A |
0.02 |
0.04 |
|
Contingent loss reserves B |
0.01 |
— |
|
International tax credit C |
(0.04) |
— |
|
Transaction costs D |
0.02 |
— |
|
Non-cash interest expense - convertible senior notes E |
— |
0.03 |
|
Tax effect of adjustments reflected above F |
(0.03) |
(0.04) |
|
Discrete tax adjustments and other tax-related adjustments G |
(0.03) |
(0.01) |
|
Adjusted Diluted Earnings Per Share |
$ 0.47 |
$ 0.49 |
|
Adjusted EBITDA |
|||
Three Months Ended |
|||
April 1, 2022 |
April 2, 2021 |
||
Net Income From Continuing Operations |
$ 70.4 |
$ 61.8 |
|
Interest expense, net |
5.9 |
18.0 |
|
Income taxes |
15.5 |
15.6 |
|
Depreciation |
7.8 |
8.5 |
|
Amortization of acquisition-related and other intangible assets |
23.5 |
20.6 |
|
Restructuring costs and asset impairments A |
3.7 |
7.8 |
|
Contingent loss reserves B |
1.0 |
— |
|
International tax credit C |
(6.5) |
— |
|
Transaction costs D |
3.3 |
— |
|
Adjusted EBITDA |
$ 124.6 |
$ 132.3 |
|
See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures |
Core Sales Growth 1 |
|
Consolidated |
% Change Three |
Total sales growth |
3.1% |
Plus the impact of: |
|
Currency exchange rates |
2.3% |
Core sales growth |
5.4% |
Specialty Products & Technologies |
|
Total sales growth |
8.3% |
Plus the impact of: |
|
Currency exchange rates |
2.9% |
Core sales growth |
11.2% |
Equipment & Consumables |
|
Total sales growth |
(4.8)% |
Plus the impact of: |
|
Currency exchange rates |
1.5% |
Core sales growth |
(3.3)% |
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 |
|||
April 1, 2022 |
April 2, 2021 |
||
Net Operating Cash Provided by (Used in) Investing Activities |
$ 5.1 |
$ (5.5) |
|
Net Operating Cash Provided by (Used in) Financing Activities |
$ 5.3 |
$ (469.6) |
|
Net Operating Cash Provided by Operating Activities |
$ 3.5 |
$ 16.6 |
|
Less: payments for additions to property, plant and equipment (capital expenditures) |
(19.8) |
(8.3) |
|
Free Cash Flow |
$ (16.3) |
$ 8.3 |
|
See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures |
ENVISTA HOLDINGS CORPORATION |
|
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 frequency, of such plans) from the ongoing productivity improvements that result from application of the Envista Business System. These restructuring plans 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. |
B |
Represents accruals for certain legal matters. |
C |
The international tax credit relates to a ruling from the Brazilian Supreme Court. |
D |
These transaction costs are primarily related to the acquisition of Carestream Dental's intraoral scanner business. |
E |
Non-cash interest expense represents accretion of the debt discount associated with the convertible senior notes due 2025. We adopted Accounting Standards Update 2020-06 on January 1, 2022 and as a result there is no longer a debt discount that requires amortization. |
F |
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. |
G |
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. |
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: |
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|
Management uses these non-GAAP measures to measure the Company's operating and financial performance. |
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The items excluded from the non-GAAP measures set forth above have been excluded for the following reasons: |
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SOURCE Envista Holdings Corporation