Envista(NVST) - 2024 Q3 - Quarterly Results

Third Quarter 2024 Earnings Release Overview Q3 2024 Financial Performance Highlights Envista reported a decline in core sales and significant decreases in GAAP and adjusted profitability for Q3 2024 compared to Q3 2023, though results were in line with expectations Q3 2024 Financial Performance | Metric | Q3 2024 ($M) | Q3 2023 ($M) | Change (%) | | :---------------------- | :----------- | :----------- | :--------- | | Reported Sales | 601.0 | 631.3 | -4.8% | | Core Sales Growth | -5.3% | N/A | -5.3% | | Net Income | 8.2 | 21.5 | -61.86% | | Diluted EPS | 0.05 | 0.12 | -58.33% | | Adjusted Net Income | 21.1 | 75.5 | -72.05% | | Adjusted Diluted EPS | 0.12 | 0.43 | -72.09% | | Adjusted EBITDA | 54.9 | 123.5 | -55.55% | - Core sales in Q3 2024 declined 5.3% over the corresponding quarter in 2023[2] CEO's Strategic Commentary CEO Paul Keel noted that Q3 results met expectations, with early positive impacts from commercial and innovation investments. The company is focusing on accelerating growth, leveraging the Envista Business System (EBS) for operational improvement, and advancing its high-performing culture - Q3 results were in line with expectations, showing early evidence of beneficial impact from commercial and innovation investments[3] - Strategic focus areas include accelerating growth, leveraging EBS for sustained operational improvement, and advancing a high-performing and inclusive culture[3] Full Year 2024 Guidance Envista reiterated its full-year 2024 guidance for core sales growth and adjusted EBITDA margins, anticipating a return to growth in the fourth quarter Full Year 2024 Guidance | Metric | Full Year 2024 Guidance | | :---------------------- | :---------------------- | | Core Sales Growth | -1% to -4% | | Adjusted EBITDA Margins | 10% to 12% | - The company expects to return to growth in the fourth quarter of 2024[4] Company Profile About Envista Envista Holdings Corporation is a global dental products company with over 30 trusted brands, focused on partnering with professionals to improve lives through industry-leading dental consumables, solutions, technology, and services. The company leverages its Envista Business System (EBS) and strong culture for continuous improvement and customer focus - Envista is a global family of more than 30 trusted dental brands, including Nobel Biocare, Ormco, DEXIS, and Kerr[7] - The company provides industry-leading dental consumables, solutions, technology, and services, covering dental implants, orthodontics, and digital imaging technologies[7] - Envista operates with the proven Envista Business System (EBS) methodology, an experienced leadership team, and a culture grounded in continuous improvement, innovation, and deep customer focus[7] GAAP Financial Statements Consolidated Statements of Operations Envista's consolidated statements of operations show a decrease in sales and profitability for both the three and nine months ended September 27, 2024, compared to the prior year, with a significant net loss for the nine-month period primarily due to goodwill and intangible asset impairment Consolidated Statements of Operations | Metric ($M) | Three Months Ended Sep 27, 2024 | Three Months Ended Sep 29, 2023 | Nine Months Ended Sep 27, 2024 | Nine Months Ended Sep 29, 2023 | | :---------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Sales | 601.0 | 631.3 | 1,857.7 | 1,920.9 | | Gross Profit | 317.3 | 363.3 | 1,000.2 | 1,104.6 | | Operating Profit (Loss) | 20.9 | 83.3 | (1,084.3) | 234.3 | | Net Income (Loss) | 8.2 | 21.5 | (1,119.8) | 117.2 | | Diluted EPS | 0.05 | 0.12 | (6.51) | 0.66 | - A goodwill and intangible asset impairment charge of $1,153.8 million was recorded for the nine months ended September 27, 2024, significantly impacting operating profit and net income[12] Consolidated Balance Sheets Envista's balance sheet as of September 27, 2024, shows a decrease in total assets, primarily driven by a reduction in goodwill and other intangible assets, while total liabilities also decreased, leading to a lower total stockholders' equity compared to December 31, 2023 Consolidated Balance Sheets | Metric ($M) | Sep 27, 2024 | Dec 31, 2023 | | :------------------------------ | :----------- | :----------- | | Cash and cash equivalents | 991.3 | 940.0 | | Total current assets | 1,797.0 | 1,743.7 | | Goodwill | 2,333.8 | 3,292.2 | | Other intangible assets, net | 696.1 | 954.0 | | Total assets | 5,510.7 | 6,605.1 | | Total current liabilities | 865.5 | 780.8 | | Long-term debt | 1,305.6 | 1,398.1 | | Total stockholders' equity | 3,072.5 | 4,173.9 | | Total liabilities and equity | 5,510.7 | 6,605.1 | - Goodwill decreased from $3,292.2 million at December 31, 2023, to $2,333.8 million at September 27, 2024, reflecting impairment charges[14] Consolidated Statements of Cash Flows For the nine months ended September 27, 2024, Envista generated increased net cash from operating activities, while cash used in investing activities remained stable, and cash used in financing activities shifted from a net inflow in the prior year Consolidated Statements of Cash Flows | Metric ($M) | Nine Months Ended Sep 27, 2024 | Nine Months Ended Sep 29, 2023 | | :---------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | 204.1 | 173.7 | | Net cash used in investing activities | (47.2) | (49.8) | | Net cash (used in) provided by financing activities | (102.8) | 115.6 | | Net change in cash and cash equivalents | 51.3 | 217.3 | | Ending balance of cash and cash equivalents | 991.3 | 824.2 | - Operating cash flow increased to $204.1 million for the nine months ended September 27, 2024, from $173.7 million in the prior year period[16] Summary of Key Financial Metrics GAAP Financial Metrics Envista's GAAP financial metrics for Q3 and YTD 2024 show a decline across gross profit, operating profit, net income, and diluted EPS compared to the previous year, with a significant net loss for the nine-month period GAAP Financial Metrics Summary | Metric ($M) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :---------------------- | :------ | :------ | :------- | :------- | | Gross Profit | 317.3 | 363.3 | 1,000.2 | 1,104.6 | | Operating Profit (Loss) | 20.9 | 83.3 | (1,084.3) | 234.3 | | Net Income (Loss) | 8.2 | 21.5 | (1,119.8) | 117.2 | | Diluted EPS | 0.05 | 0.12 | (6.51) | 0.66 | | Operating Cash Flow | 70.7 | 95.5 | 204.1 | 173.7 | Non-GAAP Financial Metrics Envista's adjusted non-GAAP financial metrics also show a decrease in profitability for Q3 and YTD 2024 compared to the prior year, reflecting the underlying operational performance excluding certain non-recurring or non-cash items Non-GAAP Financial Metrics Summary | Metric ($M) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :---------------------- | :------ | :------ | :------- | :------- | | Adjusted Gross Profit | 317.4 | 364.3 | 1,018.3 | 1,111.9 | | Adjusted Operating Profit | 43.8 | 114.4 | 172.8 | 336.2 | | Adjusted Net Income | 21.1 | 75.5 | 85.4 | 219.5 | | Adjusted Diluted EPS | 0.12 | 0.43 | 0.49 | 1.25 | | Adjusted EBITDA | 54.9 | 123.5 | 205.1 | 363.7 | | Free Cash Flow | 63.3 | 77.1 | 178.9 | 123.7 | Segment Performance Segment Sales and Operating Profit Both of Envista's segments, Specialty Products & Technologies and Equipment & Consumables, experienced declines in sales and operating profit for Q3 and YTD 2024 compared to the prior year Segment Sales | Metric ($M) | Q3 2024 Sales | Q3 2023 Sales | YTD 2024 Sales | YTD 2023 Sales | | :------------------------------ | :------------ | :------------ | :------------- | :------------- | | Specialty Products & Technologies | 381.7 | 399.5 | 1,205.5 | 1,226.5 | | Equipment & Consumables | 219.3 | 231.8 | 652.2 | 694.4 | | Total Sales | 601.0 | 631.3 | 1,857.7 | 1,920.9 | Segment Operating Profit (Loss) | Metric ($M) | Q3 2024 Operating Profit | Q3 2023 Operating Profit | YTD 2024 Operating Profit | YTD 2023 Operating Profit | | :------------------------------ | :----------------------- | :----------------------- | :------------------------ | :------------------------ | | Specialty Products & Technologies | 12.3 | 61.4 | 62.5 | 188.2 | | Equipment & Consumables | 38.6 | 43.9 | 100.7 | 124.8 | | Other | (30.0) | (22.0) | (1,247.5) | (78.7) | | Total Operating Profit (Loss) | 20.9 | 83.3 | (1,084.3) | 234.3 | Segment Operating Margins Operating margins for both segments and consolidated decreased significantly in Q3 and YTD 2024, with Specialty Products & Technologies experiencing the largest percentage point decline Segment Operating Margins | Segment | Q3 2024 Operating Margin | Q3 2023 Operating Margin | YTD 2024 Operating Margin | YTD 2023 Operating Margin | | :------------------------------ | :----------------------- | :----------------------- | :------------------------ | :------------------------ | | Specialty Products & Technologies | 3.2% | 15.4% | 5.2% | 15.3% | | Equipment & Consumables | 17.6% | 18.9% | 15.4% | 18.0% | | Total | 3.5% | 13.2% | (58.4)% | 12.2% | Non-GAAP Measures and Reconciliations Introduction to Non-GAAP Measures Envista utilizes non-GAAP financial measures, such as adjusted amounts, core sales growth, and free cash flow, to provide investors with additional insights into the company's performance. These measures are reconciled to their most directly comparable GAAP measures, though forward-looking non-GAAP estimates are not reconciled due to inherent estimation difficulties - All 'Adjusted' amounts, including core sales growth and free cash flow, are non-GAAP items[9] - Non-GAAP measures are used to provide useful information to investors by offering additional ways of viewing results, understanding long-term profitability trends, identifying underlying growth, and assessing operational factors[9][44] - Forward-looking non-GAAP estimates are not reconciled to GAAP measures due to the inherent difficulty in predicting and estimating future impacts of currency translation, acquisitions, discontinued products, and other potential adjustments[9] Reconciliation of Gross Profit to Adjusted Gross Profit Envista reconciles GAAP Gross Profit to Adjusted Gross Profit by adding back restructuring costs and asset impairments, resulting in slightly higher adjusted gross margins Reconciliation of Gross Profit to Adjusted Gross Profit | Metric ($M) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :-------------------------- | :------ | :------ | :------- | :------- | | Gross Profit | 317.3 | 363.3 | 1,000.2 | 1,104.6 | | Restructuring costs and asset impairments | 0.1 | 1.0 | 18.1 | 7.3 | | Adjusted Gross Profit | 317.4 | 364.3 | 1,018.3 | 1,111.9 | | Gross Margin | 52.8% | 57.5% | 53.8% | 57.5% | | Adjusted Gross Margin | 52.8% | 57.7% | 54.8% | 57.9% | Reconciliation of Operating Profit to Adjusted Operating Profit This section provides a detailed reconciliation of GAAP Operating Profit to Adjusted Operating Profit, both on a consolidated basis and for each operating segment, by adjusting for amortization, impairment charges, restructuring costs, litigation settlements, and acquisition-related expenses Consolidated Adjusted Operating Profit Consolidated Adjusted Operating Profit is derived by adding back amortization of acquisition-related intangibles, goodwill and intangible asset impairments, restructuring costs, litigation settlements, and acquisition-related expenses to GAAP Operating Profit Consolidated Adjusted Operating Profit Reconciliation | Metric ($M) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :---------------------------------------- | :------ | :------ | :------- | :------- | | Operating Profit (Loss) | 20.9 | 83.3 | (1,084.3) | 234.3 | | Amortization of acquisition-related and other intangible assets | 18.7 | 23.9 | 63.7 | 75.9 | | Goodwill and intangible asset impairments | — | — | 1,153.8 | — | | Restructuring costs and asset impairments | 4.2 | 6.8 | 34.9 | 24.7 | | Litigation settlement | — | — | 4.7 | — | | Acquisition related expenses | — | 0.4 | — | 1.3 | | Adjusted Operating Profit | 43.8 | 114.4 | 172.8 | 336.2 | | Adjusted Operating Profit as a % of Sales | 7.3% | 18.1% | 9.3% | 17.5% | Specialty Products & Technologies Adjusted Operating Profit For the Specialty Products & Technologies segment, adjustments primarily include amortization of acquisition-related intangibles and restructuring costs to arrive at Adjusted Operating Profit Specialty Products & Technologies Adjusted Operating Profit Reconciliation | Metric ($M) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :---------------------------------------- | :------ | :------ | :------- | :------- | | Operating Profit | 12.3 | 61.4 | 62.5 | 188.2 | | Amortization of acquisition-related and other intangible assets | 14.4 | 15.7 | 43.1 | 47.3 | | Restructuring costs and asset impairments | 0.2 | 1.7 | 21.1 | 9.5 | | Adjusted Operating Profit | 26.9 | 78.8 | 126.7 | 245.0 | | Adjusted Operating Profit as a % of Sales | 7.0% | 19.7% | 10.5% | 20.0% | Equipment & Consumables Adjusted Operating Profit The Equipment & Consumables segment's Adjusted Operating Profit is calculated by adding back amortization of acquisition-related intangibles and restructuring costs to its GAAP Operating Profit Equipment & Consumables Adjusted Operating Profit Reconciliation | Metric ($M) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :---------------------------------------- | :------ | :------ | :------- | :------- | | Operating Profit | 38.6 | 43.9 | 100.7 | 124.8 | | Amortization of acquisition-related and other intangible assets | 4.3 | 8.2 | 20.6 | 28.6 | | Restructuring costs and asset impairments | 1.0 | 5.0 | 4.2 | 14.0 | | Adjusted Operating Profit | 43.9 | 57.1 | 125.5 | 167.4 | | Adjusted Operating Profit as a % of Sales | 20.0% | 24.6% | 19.2% | 24.1% | Reconciliation of Net Income to Adjusted Net Income Envista reconciles GAAP Net Income (Loss) to Adjusted Net Income by adjusting for various non-recurring and non-cash items, including amortization, impairment charges, restructuring costs, litigation settlements, equity investment gains/losses, acquisition expenses, convertible notes exchange expenses, and related tax effects Reconciliation of Net Income to Adjusted Net Income | Metric ($M) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :---------------------------------------- | :------ | :------ | :------- | :------- | | Net Income (Loss) | 8.2 | 21.5 | (1,119.8) | 117.2 | | Amortization of acquisition-related and other intangible assets | 18.7 | 23.9 | 63.7 | 75.9 | | Goodwill and intangible asset impairments | — | — | 1,153.8 | — | | Restructuring costs and asset impairments | 4.2 | 6.8 | 34.9 | 24.7 | | Litigation settlement | — | — | 4.7 | — | | Loss (gain) on equity investments, net | — | 3.3 | 1.1 | (3.6) | | Acquisition related expenses | — | 0.4 | — | 1.3 | | Inducement and other expenses related to convertible notes exchange | — | 29.0 | — | 29.0 | | Tax effect of adjustments reflected above | (10.2) | (10.4) | (53.8) | (25.5) | | Discrete tax adjustments and other tax-related adjustments | 0.2 | 1.0 | 0.8 | 0.5 | | Adjusted Net Income | 21.1 | 75.5 | 85.4 | 219.5 | Reconciliation of Diluted EPS to Adjusted Diluted EPS Envista reconciles GAAP Diluted Earnings (Loss) Per Share to Adjusted Diluted EPS by adjusting for the per-share impact of amortization, impairment charges, restructuring costs, litigation settlements, equity investment gains/losses, acquisition expenses, convertible notes exchange expenses, and related tax effects Reconciliation of Diluted EPS to Adjusted Diluted EPS | Metric ($) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :---------------------------------------- | :------ | :------ | :------- | :------- | | Diluted Earnings (Loss) | 0.05 | 0.12 | (6.51) | 0.66 | | Amortization of acquisition-related and other intangible assets | 0.11 | 0.14 | 0.37 | 0.43 | | Goodwill and intangible asset impairments | — | — | 6.67 | — | | Restructuring costs and asset impairments | 0.02 | 0.04 | 0.20 | 0.14 | | Litigation settlement | — | — | 0.03 | — | | Loss (gain) on equity investments, net | — | 0.02 | 0.01 | (0.02) | | Acquisition related expenses | — | — | — | 0.01 | | Inducement and other expenses related to convertible notes exchange | — | 0.17 | — | 0.16 | | Tax effect of adjustments reflected above | (0.06) | (0.07) | (0.31) | (0.14) | | Discrete tax adjustments and other tax-related adjustments | — | 0.01 | — | 0.01 | | Net (loss) to adjusted net income share adjustment | — | — | 0.03 | — | | Adjusted Diluted Earnings Per Share | 0.12 | 0.43 | 0.49 | 1.25 | Adjusted Diluted Shares Outstanding Adjusted diluted shares outstanding are calculated by including the dilutive impact of stock options, restricted stock, performance stock units, and assumed conversion of convertible senior notes, which are excluded from GAAP diluted loss per share when the company is in a net loss position Adjusted Diluted Shares Outstanding | Metric (Millions) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :------------------------------------------------------------------------------------------------------------ | :------ | :------ | :------- | :------- | | Average common stock shares outstanding - basic | 172.2 | 168.2 | 172.1 | 165.3 | | Assumed exercise of dilutive options and vesting of dilutive restricted stock and performance stock units and assumed conversion of 2025 Convertible Notes | 0.7 | 7.0 | 0.9 | 11.0 | | Average common stock and common equivalent shares outstanding - diluted | 172.9 | 175.2 | 173.0 | 176.3 | - The adjustment for diluted shares outstanding is made because the company was in a net loss position for the nine months ended September 27, 2024, making certain dilutive instruments anti-dilutive under GAAP[43] Reconciliation of Net Income to Adjusted EBITDA Envista reconciles GAAP Net Income (Loss) to Adjusted EBITDA by adding back interest expense, income tax expense/benefit, depreciation, amortization, and other non-recurring or non-cash adjustments such as impairment charges, restructuring costs, litigation settlements, equity investment gains/losses, acquisition expenses, and convertible notes exchange expenses Reconciliation of Net Income to Adjusted EBITDA | Metric ($M) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :---------------------------------------- | :------ | :------ | :------- | :------- | | Net Income (Loss) | 8.2 | 21.5 | (1,119.8) | 117.2 | | Interest expense, net | 11.9 | 15.4 | 36.5 | 49.5 | | Income tax expense (benefit) | 1.4 | 14.3 | (1.4) | 42.9 | | Depreciation | 10.5 | 8.9 | 31.6 | 26.8 | | Amortization of acquisition-related and other intangible assets | 18.7 | 23.9 | 63.7 | 75.9 | | Goodwill and intangible asset impairments | — | — | 1,153.8 | — | | Restructuring costs and asset impairments | 4.2 | 6.8 | 34.9 | 24.7 | | Litigation settlement | — | — | 4.7 | — | | Loss (gain) on equity investments, net | — | 3.3 | 1.1 | (3.6) | | Acquisition related expenses | — | 0.4 | — | 1.3 | | Inducement and other expenses related to convertible notes exchange | — | 29.0 | — | 29.0 | | Adjusted EBITDA | 54.9 | 123.5 | 205.1 | 363.7 | Core Sales Growth Reconciliation Envista calculates core sales growth by adjusting total sales growth for the impact of currency exchange rates, acquisitions, and discontinued products, providing a clearer view of underlying business trends Core Sales Growth Reconciliation (Q3 2024) | Segment | Q3 2024 Total Sales Growth | Q3 2024 Currency Impact | Q3 2024 Core Sales Growth | | :------------------------------ | :------------------------- | :---------------------- | :------------------------ | | Consolidated | (4.8)% | (0.5)% | (5.3)% | | Specialty Products & Technologies | (4.5)% | (0.7)% | (5.2)% | | Equipment & Consumables | (5.4)% | (0.2)% | (5.6)% | Core Sales Growth Reconciliation (YTD 2024) | Segment | YTD 2024 Total Sales Growth | YTD 2024 Currency Impact | YTD 2024 Core Sales Growth | | :------------------------------ | :-------------------------- | :----------------------- | :------------------------- | | Consolidated | (3.3)% | 0.6% | (2.7)% | | Specialty Products & Technologies | (1.7)% | 0.6% | (1.1)% | | Equipment & Consumables | (6.1)% | 0.6% | (5.5)% | - Core sales exclude sales from acquired businesses, discontinued products, and the impact of currency translation to identify underlying growth trends[34] Reconciliation of Operating Cash Flows to Free Cash Flow Envista calculates Free Cash Flow by subtracting payments for additions to property, plant, and equipment (capital expenditures) from net cash provided by operating activities Reconciliation of Operating Cash Flows to Free Cash Flow | Metric ($M) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :---------------------------------------- | :------ | :------ | :------- | :------- | | Net Operating Cash Provided by Operating Activities | 70.7 | 95.5 | 204.1 | 173.7 | | Less: payments for additions to property, plant and equipment (capital expenditures) | (7.4) | (18.4) | (25.2) | (50.0) | | Free Cash Flow (FCF) | 63.3 | 77.1 | 178.9 | 123.7 | - Free Cash Flow increased to $178.9 million for the nine months ended September 27, 2024, from $123.7 million in the prior year period[36] Notes to Non-GAAP Reconciliations This section provides specific explanations for each adjustment (A-H) made in the non-GAAP financial measure reconciliations, detailing the nature of the excluded items such as impairment charges, restructuring costs, litigation settlements, equity investment gains/losses, acquisition expenses, convertible notes exchange expenses, and tax adjustments - A: Represents impairment charge related to goodwill and certain intangible assets[38] - B: Excludes impairment of certain long-lived assets, executive transition costs, and costs incurred pursuant to discrete restructuring plans that are fundamentally different from ongoing productivity improvements[39] - F: Primarily relates to inducement and other expenses incurred in connection with the partial exchange of 2025 Convertible Senior Notes[40] Statement Regarding Non-GAAP Measures Envista's management uses non-GAAP measures to evaluate operating and financial performance, believing they offer investors useful information for understanding long-term profitability trends, identifying underlying growth, and assessing operational factors. These measures exclude items like amortization of acquisition-related intangibles, restructuring costs, and currency translation, which are considered inconsistent in frequency or not indicative of ongoing commercial performance - Non-GAAP measures help investors understand long-term profitability trends, compare performance to prior periods and peers, and identify underlying growth trends[44] - Adjusted EBITDA helps understand operational factors by excluding interest, taxes, depreciation, amortization, and infrequent or unusual losses/gains[44] - Items excluded from non-GAAP measures, such as amortization of acquisition-related intangibles and restructuring costs, are considered inconsistent in frequency or may obscure underlying business trends[46][47][48] Additional Information Investor Conference Call Details Envista hosted an investor conference call on October 30, 2024, to discuss its quarterly results and provide an updated outlook for 2024. Details for accessing the webcast and replay were provided - An investor conference call was held on October 30, 2024, at 2:00 P.M. PT to discuss quarterly results and provide an updated outlook[5] - The call and accompanying slide presentation were webcast on the 'Investors' section of Envista's website (www.envistaco.com) under 'Events & Presentations', with a replay available[5][6] Forward-Looking Statements This section contains a standard disclaimer regarding forward-looking statements, highlighting various important factors that could cause actual results to differ materially from those projected. It advises against undue reliance on such statements and notes that the company does not assume an obligation to update them - The press release contains 'forward-looking' statements subject to important factors that could cause actual results to differ materially[10] - Factors include U.S. and global economic conditions, inflation, interest rates, international factors, market cyclicality, supply chain risks, IT security, competition, product development, and regulatory compliance[10] - Envista does not assume any obligation to update or revise any forward-looking statement, except as required by applicable law[10] Contact Information Contact details for investor inquiries are provided for Envista Holdings Corporation - Contact for Envista Holdings Corporation: Amit Bhagwat, 200 S. Kraemer Blvd., Building E, Brea, CA 92821, Telephone: (714) 817-7000[11]