Exhibit 99.2
ENVISTA HOLDINGS CORPORATION
SELECTED FINANCIAL STATEMENT DATA FOR CONTINUING OPERATIONS (Unaudited)
($ in millions)
| | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Nine Months Ended |
| | April 2, 2021 | | July 2, 2021 | | October 1, 2021 | | October 1, 2021 |
| Sales | $ | 612.6 | | | $ | 637.2 | | | $ | 607.3 | | | $ | 1,857.1 | |
| Cost of sales | 254.2 | | | 268.6 | | | 251.0 | | | 773.8 | |
| Gross profit | 358.4 | | | 368.6 | | | 356.3 | | | 1,083.3 | |
| Operating costs: | | | | | | | |
| Selling, general and administrative expenses (SG&A) | 237.5 | | | 259.4 | | | 250.6 | | | 747.5 | |
| Research and development (R&D) expenses | 25.8 | | | 25.9 | | | 24.0 | | | 75.7 | |
| Operating profit | $ | 95.1 | | | $ | 83.3 | | | $ | 81.7 | | | $ | 260.1 | |
| | | | | | | |
| Gross profit as a % of sales | 58.5 | % | | 57.8 | % | | 58.7 | % | | 58.3 | % |
| SG&A as a % of sales | 38.8 | % | | 40.7 | % | | 41.3 | % | | 40.3 | % |
| R&D as a % of sales | 4.2 | % | | 4.1 | % | | 4.0 | % | | 4.1 | % |
| Operating profit as a % of sales | 15.5 | % | | 13.1 | % | | 13.5 | % | | 14.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Year Ended |
| | April 3, 2020 | | July 3, 2020 | | October 2, 2020 | | December 31, 2020 | | December 31, 2020 |
| Sales | $ | 456.2 | | | $ | 309.4 | | | $ | 547.2 | | | $ | 616.3 | | | $ | 1,929.1 | |
| Cost of sales | 204.8 | | | 154.4 | | | 238.8 | | | 276.3 | | | 874.3 | |
| Gross profit | 251.4 | | | 155.0 | | | 308.4 | | | 340.0 | | | 1,054.8 | |
| Operating costs: | | | | | | | | | |
| SG&A expenses | 240.8 | | | 213.7 | | | 226.8 | | | 243.3 | | | 924.6 | |
| R&D expenses | 29.3 | | | 14.2 | | | 20.0 | | | 23.2 | | | 86.7 | |
| Operating (loss) profit | $ | (18.7) | | | $ | (72.9) | | | $ | 61.6 | | | $ | 73.5 | | | $ | 43.5 | |
| | | | | | | | | |
| Gross profit as a % of sales | 55.1 | % | | 50.1 | % | | 56.4 | % | | 55.2 | % | | 54.7 | % |
| SG&A as a % of sales | 52.8 | % | | 69.1 | % | | 41.4 | % | | 39.5 | % | | 47.9 | % |
| R&D as a % of sales | 6.4 | % | | 4.6 | % | | 3.7 | % | | 3.8 | % | | 4.5 | % |
| Operating (loss) profit as a % of sales | (4.1) | % | | (23.6) | % | | 11.3 | % | | 11.9 | % | | 2.3 | % |
Reconciliation of Adjusted Operating Profit
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| April 2, 2021 | | July 2, 2021 | | October 1, 2021 | | October 1, 2021 |
| Operating profit | $ | 95.1 | | | $ | 83.3 | | | $ | 81.7 | | | $ | 260.1 | |
| Amortization of acquisition related intangible assets | 20.6 | | | 20.5 | | | 20.3 | | | 61.4 | |
Restructuring costs and asset impairments A | 7.8 | | | 7.4 | | | 8.6 | | | 23.8 | |
Contingent loss reserve B | — | | | 3.3 | | | — | | | 3.3 | |
| Adjusted Operating Profit | $ | 123.5 | | | $ | 114.5 | | | $ | 110.6 | | | $ | 348.6 | |
| Adjusted Operating Profit as a % of sales | 20.2 | % | | 18.0 | % | | 18.2 | % | | 18.8 | % |
| | | | | | | |
| Depreciation expense | $ | 8.5 | | | $ | 8.1 | | | $ | 8.3 | | | $ | 24.9 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Year Ended |
| April 3, 2020 | | July 3, 2020 | | October 2, 2020 | | December 31, 2020 | | December 31, 2020 |
| Operating (loss) profit | $ | (18.7) | | | $ | (72.9) | | | $ | 61.6 | | | $ | 73.5 | | | $ | 43.5 | |
| Amortization of acquisition related intangible assets | 21.5 | | | 21.7 | | | 22.3 | | | 21.8 | | | 87.3 | |
Restructuring costs and asset impairments A | 8.0 | | | 28.6 | | | 17.2 | | | 30.6 | | | 84.4 | |
Contingent loss reserve B | — | | | 16.0 | | | — | | | (13.3) | | | 2.7 | |
| Adjusted Operating Profit (Loss) | $ | 10.8 | | | $ | (6.6) | | | $ | 101.1 | | | $ | 112.6 | | | $ | 217.9 | |
| Adjusted Operating Profit (Loss) as a % of sales | 2.4 | % | | (2.1) | % | | 18.5 | % | | 18.3 | % | | 11.3 | % |
| | | | | | | | | |
| Depreciation expense | $ | 7.5 | | | $ | 7.4 | | | $ | 10.1 | | | $ | 9.4 | | | $ | 34.4 | |
See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures
ENVISTA HOLDINGS CORPORATION
SEGMENT INFORMATION (UNAUDITED)
($ in millions)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| April 2, 2021 | | July 2, 2021 | | October 1, 2021 | | October 1, 2021 |
| Specialty Products & Technologies | | | | | | | |
| Sales | $ | 366.5 | | | $ | 386.2 | | | $ | 363.4 | | | $ | 1,116.1 | |
| | | | | | | |
| Reconciliation of Adjusted Operating Profit | | | | | | | |
| Operating profit | $ | 78.4 | | | $ | 71.7 | | | $ | 61.5 | | | $ | 211.6 | |
| Amortization of acquisition related intangible assets | 14.9 | | | 15.3 | | | 15.0 | | | 45.2 | |
Restructuring costs and asset impairments A | 3.4 | | | 3.6 | | | 8.2 | | | 15.2 | |
Contingent loss reserve B | — | | | 2.1 | | | — | | | 2.1 | |
| Adjusted Operating Profit | $ | 96.7 | | | $ | 92.7 | | | $ | 84.7 | | | $ | 274.1 | |
| Adjusted Operating Profit as a % of sales | 26.4 | % | | 24.0 | % | | 23.3 | % | | 24.6 | % |
| | | | | | | |
| Equipment & Consumables | | | | | | | |
| Sales | $ | 246.1 | | | $ | 251.0 | | | $ | 243.9 | | | $ | 741.0 | |
| | | | | | | |
| Reconciliation of Adjusted Operating Profit | | | | | | | |
| Operating profit | $ | 45.0 | | | $ | 40.6 | | | $ | 45.4 | | | $ | 131.0 | |
| Amortization of acquisition related intangible assets | 5.7 | | | 5.2 | | | 5.3 | | | 16.2 | |
Restructuring costs and asset impairments A | 1.9 | | | 2.5 | | | 0.1 | | | 4.5 | |
Contingent loss reserve B | — | | | 1.2 | | | — | | | 1.2 | |
| Adjusted Operating Profit | $ | 52.6 | | | $ | 49.5 | | | $ | 50.8 | | | $ | 152.9 | |
| Adjusted Operating Profit as a % of sales | 21.4 | % | | 19.7 | % | | 20.8 | % | | 20.6 | % |
See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Year Ended |
| April 3, 2020 | | July 3, 2020 | | October 2, 2020 | | December 31, 2020 | | December 31, 2020 |
| Specialty Products & Technologies | | | | | | | | | |
| Sales | $ | 272.6 | | | $ | 184.6 | | | $ | 316.9 | | | $ | 343.2 | | | $ | 1,117.3 | |
| | | | | | | | | |
| Reconciliation of Adjusted Operating Profit | | | | | | | | | |
| Operating profit (loss) | $ | 5.5 | | | $ | (20.7) | | | $ | 41.4 | | | $ | 39.6 | | | $ | 65.8 | |
| Amortization of acquisition related intangible assets | 14.6 | | | 14.9 | | | 15.3 | | | 15.2 | | | 60.0 | |
Restructuring costs and asset impairments A | 0.8 | | | 15.7 | | | 11.5 | | | 15.8 | | | 43.8 | |
| Adjusted Operating Profit | $ | 20.9 | | | $ | 9.9 | | | $ | 68.2 | | | $ | 70.6 | | | $ | 169.6 | |
| Adjusted Operating Profit as a % of sales | 7.7 | % | | 5.4 | % | | 21.5 | % | | 20.6 | % | | 15.2 | % |
| | | | | | | | | |
| Equipment & Consumables | | | | | | | | | |
| Sales | $ | 183.6 | | | $ | 124.8 | | | $ | 230.3 | | | $ | 273.1 | | | $ | 811.8 | |
| | | | | | | | | |
| Reconciliation of Adjusted Operating Profit | | | | | | | | | |
| Operating (loss) profit | $ | (10.7) | | | $ | (17.2) | | | $ | 38.9 | | | $ | 42.6 | | | $ | 53.6 | |
| Amortization of acquisition related intangible assets | 6.9 | | | 6.8 | | | 7.0 | | | 6.6 | | | 27.3 | |
Restructuring costs and asset impairments A | 6.6 | | | 9.8 | | | 3.8 | | | 13.7 | | | 33.9 | |
| Adjusted Operating Profit (Loss) | $ | 2.8 | | | $ | (0.6) | | | $ | 49.7 | | | $ | 62.9 | | | $ | 114.8 | |
| Adjusted Operating Profit (Loss) as a % of sales | 1.5 | % | | (0.5) | % | | 21.6 | % | | 23.0 | % | | 14.1 | % |
See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures
ENVISTA HOLDINGS CORPORATION
NOTES TO RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED)
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.
Statement Regarding Non-GAAP Measures
The non-GAAP measure 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 this measure provides 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:
•understand the long-term profitability trends of Envista’s business and compare Envista’s profitability to prior and future periods and to Envista’s peers.
Management uses this non-GAAP measure to measure the Company’s operating and financial performance.
The items excluded from the non-GAAP measure set forth above have been excluded for the following reasons:
•We exclude the amortization of acquisition-related intangible assets because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate. While we have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition’s purchase price allocated to intangible assets and related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition. Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly-acquired and long-held businesses, and with both acquisitive and non-acquisitive peer companies. We believe, however, that it is important for investors to understand that such intangible assets contribute to revenue generation and that intangible asset amortization related to past acquisitions will recur in future periods until such intangible assets have been fully amortized.
•With respect to the other items excluded from Adjusted Operating Profit, we exclude these items because they are of a nature and/or size that occur with inconsistent frequency, occur for reasons that may be unrelated to Envista's commercial performance during the period and/or we believe that such items may obscure underlying business trends and make comparisons of long-term performance difficult.
