Envista(US:NVST)2025-02-05 21:18Financial Performance - Q4 2024 net income was $1 million, a significant improvement from a net loss of $217 million in Q4 2023[5] - Adjusted EBITDA for Q4 2024 was $91 million, with an adjusted EBITDA margin of 13.9%, consistent with expectations[8] - Sales for Q4 2024 reached $653 million, reflecting a core sales increase of 2.0% compared to Q4 2023[8] - Operating cash flow for Q4 2024 was $132 million, representing a 30% increase year-over-year, while free cash flow was $124 million, up 24%[8] - The company expects core sales growth of 1% to 3% and adjusted EBITDA margins of approximately 14% for the full year 2025[9] - Adjusted earnings per share for 2025 are projected to range between $0.95 and $1.05[9] - The company reported a gross profit of $372.5 million for Q4 2024, compared to $335.9 million in Q4 2023[15] - Adjusted net income for the year ended December 31, 2024, was $126.5 million, down from $269.2 million in 2023[23] - Gross profit for the year ended December 31, 2024, was $1,372.7 million, a decrease of 4.7% from $1,440.5 million in 2023[23] - Adjusted EBITDA for the year ended December 31, 2024, was $296.1 million, down from $464.2 million in 2023[23] Cash Flow and Assets - The ending balance of cash and cash equivalents increased to $1,069.1 million in 2024 from $940.0 million in 2023[21] - Operating cash flow increased to $336.5 million in 2024 from $275.7 million in 2023, representing a 22% increase[20] - Free Cash Flow for the three months ended December 31, 2024, was $123.9 million, an increase from $99.9 million in the same period of 2023[33] - Total assets decreased to $5.35 billion as of December 31, 2024, down from $6.61 billion a year earlier[18] Segment Performance - Specialty Products & Technologies segment reported sales of $1,616.4 million for the year, down 1.6% from $1,642.4 million in 2023[25] - Equipment & Consumables segment sales decreased to $894.2 million in 2024 from $924.1 million in 2023, a decline of 3.2%[25] - Adjusted Operating Profit for the Equipment & Consumables segment for the three months ended December 31, 2024, was $60.9 million, an increase from $44.7 million in the same period of 2023, reflecting a growth of 36.2%[27] Losses and Equity - Net loss for the year ended December 31, 2024, was $1,118.6 million compared to a loss of $100.2 million in 2023[20] - The company reported an operating loss of $1,038.2 million for the year ended December 31, 2024, compared to a profit of $31.5 million in 2023[23] - The company’s total stockholders' equity was $2.93 billion as of December 31, 2024, compared to $4.17 billion at the end of 2023[18] - The company reported a net loss of $1.2 million for the three months ended December 31, 2024, compared to a net loss of $217.4 million in the same period of 2023[28] Adjusted Metrics and Non-GAAP Measures - Adjusted EBITDA is used as a supplemental measure for assessing operating performance, excluding interest, taxes, depreciation, amortization, and unusual losses or gains, to provide a clearer view of operational factors[37] - Free Cash Flow (FCF) is utilized to evaluate the company's ability to generate cash for business growth and acquisitions, although it does not account for debt service requirements[39] - Adjusted Diluted Shares Outstanding includes the dilutive impact of stock options and performance stock units, reflecting the adjusted net income compared to a net loss under GAAP[39] - The company excludes amortization of acquisition-related intangible assets from non-GAAP measures to facilitate consistent comparisons of operating results over time[39] - Core sales exclude the effects of acquisitions, divested product lines, discontinued products, and currency translation to provide a clearer view of ongoing operations[39] - Adjusted Gross Profit, Adjusted Operating Profit, and Adjusted Net Income are assessed to understand long-term profitability trends and compare performance with peers[37] - Management uses non-GAAP measures to evaluate the company's operating and financial performance, providing insights into underlying business trends[38] - The adjustments made in the financial reporting are aimed at obscuring underlying business trends and making long-term performance comparisons more challenging[39] Quarterly Performance - Adjusted Operating Profit for the three months ended December 31, 2024, was $81.5 million, compared to $89.6 million for the same period in 2023, representing a decrease of 1.1%[27] - Adjusted Net Income for the three months ended December 31, 2024, was $41.1 million, down from $49.7 million in the same period of 2023, reflecting a decline of 17.5%[28] - Adjusted Diluted Earnings Per Share for the three months ended December 31, 2024, was $0.24, compared to $0.29 for the same period in 2023, a decrease of 17.2%[29] - Total sales growth for the three months ended December 31, 2024, was 1.1%, while core sales growth was 2.0%[32] - Adjusted EBITDA for the three months ended December 31, 2024, was $91.0 million, down from $100.5 million in the same period of 2023, a decrease of 14.1%[31] - Adjusted Operating Profit as a percentage of sales for the three months ended December 31, 2024, was 12.5%, compared to 13.9% for the same period in 2023[27] - The average common stock shares outstanding - diluted for the three months ended December 31, 2024, was 173.7 million, slightly up from 173.5 million in the same period of 2023[30]