Envista Holdings Corporation has announced results for the third quarter of 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 September 30, 2022, reported sales increased 3.9% to $631.1 million with core sales growth of 4.9% over the corresponding quarter in 2021.
For the third quarter of 2022, net income was $49.6 million or $0.28 per diluted share. During the same period, adjusted net income was $82.5 million or $0.47 per diluted share compared to adjusted net income of $79.4 million or $0.45 per diluted share in the same period of 2021.
Adjusted EBITDA for the third quarter of 2022 was $127.6 million compared to $119.1 million in the third quarter of 2021.
Amir Aghdaei, Chief Executive Officer, stated, “We are pleased that despite a challenging macro environment, the Envista team has once again delivered a strong quarter with core sales growth of 4.9% and an adjusted EBITDA margin of 20.2%. Our consistent performance, driven by the Envista Business System (EBS), is a testament to the strength of our team, culture, and strategic differentiation. We have a proven track record of execution and remain committed to our long-term objectives.”
Mr. Aghdaei continued, “In addition to delivering solid results in the third quarter, the transformation of our portfolio continues as we focus investments on fast-growing specialty businesses while adding to our digital capabilities. We continue to see exceptional growth in our orthodontic business driven by our Spark Clear Aligners as well as strong growth in our premium implant franchise. Continued investments in our DEXIS IOS business and DTX Studio Software suite are helping us accelerate our vision of digitizing, personalizing, and democratizing dental care. We remain committed to our purpose of partnering with dental professionals to improve lives and are focused on creating lasting value for customers, employees, and shareholders.”
Despite the persistent inflationary pressures, continued supply chain disruptions, and an uncertain geopolitical environment, we are reiterating our guidance for core growth and profitability for the full year 2022. We expect core sales to grow mid-single digits for 2022 and to deliver adjusted EBITDA margin of 20% for the full year.
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 an updated 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 800-225-9448 within the U.S. or +1 203-518-9708 outside the U.S. a few minutes before 2:00 PM PT and referencing conference ID #792458.
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.
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.
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.
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, 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, disruptions relating to war, terrorism, climate change, widespread protests and civil unrest, man-made and natural disasters, public health issues and other events, and the impact of inflation and increasing interest rates. 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.