Envista Holdings Corporation has released its results for the third quarter of 2023.
For the quarter ending on September 29, 2023, reported sales totaled $631.3 million. Core sales in this quarter saw a 0.8% increase over the corresponding quarter in 2022.
In the third quarter of 2023, net income amounted to $21.5 million, or $0.12 per diluted share. During the same period, adjusted net income was $75.5 million, or $0.43 per diluted share, compared to the adjusted net income of $82.5 million, or $0.47 per diluted share, in the same period of 2022. Additionally, adjusted EBITDA for this quarter reached $123.5 million, in contrast to $127.6 million in the third quarter of 2022.
Amir Aghdaei, CEO, stated, “In the third quarter, we delivered positive core growth and an adjusted EBITDA margin of 19.6%. Our Specialty Product & Technology Segment delivered low-single digit core growth as Spark outperformed, overcoming the negative impact of both Russia and the continued weakness of higher end specialty procedures in developed markets. Our Equipment & Consumables segment declined low-single digit, as solid core growth in consumables was offset by the planned rationalization of our traditional imaging portfolio. We continue to utilize the Envista Business System (EBS) to streamline our operations and improve our cost position, delivering 50 bps of sequential margin improvement in the quarter.”
Mr. Aghdaei continued, “While we remain confident in our ability to execute our long-term strategy, we are revising our full year guidance for 2023 to reflect the increased macro uncertainty and the importance of making investments to drive our long-term strategy of accelerating growth, expanding margins, and transforming our portfolio.”
Due to the continued uncertainties in the macro environment, volatility in the North American distribution channel and our continued investment in our long-term growth initiatives, we now expect full year core sales to be down slightly and adjusted EBITDA margin to be between 18% to 19%.
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 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 +1 (800) 267-6316 within the U.S. or +1 (203) 518-9783 outside the U.S. a few minutes before 2:00 PM PT and referencing conference ID #8206745. 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.”
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. Its 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 conditions in the U.S. and global economy, the impact of inflation and increasing interest rates, international economic, political, legal, compliance and business factors, the markets served by us and the financial markets, the impact of the COVID-19 pandemic, 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, 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, disruptions relating to war, terrorism, climate change, widespread protests and civil unrest, man-made and natural disasters, public health issues and other events, security breaches or other disruptions of our information technology systems or violations of data privacy laws, 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, our ability to attract, develop and retain our key personnel, 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, 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, the impact of regulation on demand for our products and services, and labor matters. 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 2022 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.