Adjusted EBITDA Margin: We define Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of net revenue. © 1999-2021 National Vision Holdings, Inc. National Vision Holdings, Inc. Management believes these non-GAAP financial measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. To supplement the Company’s comparable store sales growth presented in accordance with GAAP, the Company provides “Adjusted Comparable Store Sales Growth,” which is a non-GAAP financial measure we believe is useful because it provides timely and accurate information relating to the two core metrics of retail sales: number of transactions and value of transactions. The net change in margin on unearned revenue negatively impacted Adjusted Diluted EPS by $(0.11). Adjusted EBITDA increased 89.3% to $88.1 million compared to$46.6 million for the third quarter of 2019. The company operates in two segments, Owned & Host and Legacy. National Vision Holdings, Inc. and Subsidiaries Reconciliation of Non-GAAP to GAAP Financial Measures For the Three and Six Months Ended June 27, 2020 and June 29, 2019 See insights on National Vision including office locations, competitors, revenue, financials, executives, subsidiaries and more at Craft. SG&A for the third quarter of 2020 was impacted by $4.7 million of incremental costs directly related to adapting the Company’s operations during the COVID-19 pandemic, including an individual one-time $250 cash bonus to all front-line associates and the Company’s network of doctors. Reflects $0.3 million of gains recognized in interest expense on change in fair value of de-designated hedges for the three months ended September 26, 2020 and $4.6 million of losses for the nine months ended September 26, 2020. Correct the errors and resubmit the form. You can identify these forward-looking statements by the use of words such as “outlook,” “guidance,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. A conference call to discuss the third quarter 2020 financial results is scheduled for today, November 5, 2020, at 10:00 a.m. Eastern Time. Reconciliation of Net Income to EBITDA, Adjusted EBITDA, and Adjusted Net Income. Files Registration Statement for Proposed Initial Public Offering. Costs applicable to revenue decreased 7.9% to $570.1 million from $619.0 million for the same period of 2019. For the Three Months and Fiscal Years Ended December 30, 2017 and December 31, 2016 . National Vision Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Operations and Comprehensive Income For the Three and Nine Months Ended September 26, 2020 and September 28, 2019 In Thousands, Except Earnings Per Share (Unaudited) National Vision Holdings, Inc. has a twelve month low of $11.70 and a twelve month high of $50.00. Condensed Consolidated Balance Sheets. Adjusted EBITDA Margin decreased 70 basis points to 11.1% from 11.8% for the same period of 2019. National Vision Holdings, Inc. is an optical retail company. Adjusted SG&A: We define Adjusted SG&A as SG&A, adjusted to exclude stock compensation expense, secondary offering expenses, management realignment expenses, long-term incentive plan expenses, and other expenses except for the share of losses on equity method investments. Caution should be taken not to place undue reliance on any forward-looking statement as such statements speak only as of the date when made. Adjusted Operating Income decreased 27.0% to $71.4 million compared to $97.8 million for the same period of 2019. See our Form 8-K filed with the SEC on February 26, 2020 for more information. Condensed Consolidated Statements of Operations and Comprehensive Income. SG&A for the first nine months of 2020 includes $7.8 million of incremental costs directly related to adapting the Company's operations during the COVID-19 pandemic. National Vision Holdings, Inc. and Subsidiaries. As a percentage of net revenue, costs applicable to revenue decreased 390 basis points to 43.4% from 47.3% for the third quarter of 2019. Home; News. Condensed Consolidated Statements of Operations and Comprehensive Income. Reflects other expenses in (k) above, except for our share of losses on equity method investments of $0.2 million for the three months ended September 28, 2019 and $1.2 million for the nine months ended September 28, 2019. Adjusted Operating Margin: We define Adjusted Operating Margin as Adjusted Operating Income as a percentage of net revenue. The impact of such items and unanticipated events could be potentially significant. SG&A increased 0.1% to $190.5 million from $190.3 million for the third quarter of 2019. 1 - For the 13 weeks and 52 weeks ending December 26, 2020, respectively 2 - Includes amortization of acquisition intangibles of approximately $1.9 million and $7.4 million for the 14 weeks and 53 weeks ending January 2, 2021 respectively 3 - Before the impact of gains or losses related to hedge ineffectiveness and charges related to amortization of debt discounts and deferred financing costs 4 - Excluding the impact of stock option exercises. As a percentage of net revenue, SG&A decreased 480 basis points to 39.3% from 1% for the third quarter of 2019. For the Company’s fourth quarter and fiscal 2020 outlook, the Company estimates that the 53rd week will contribute approximately $35 million to net revenue with an approximately break-even impact to Adjusted Diluted EPS due to the net change in margin on unearned revenue. National Vision Holdings, Inc. and Subsidiaries. Balance Sheet and Cash Flow Highlights as of September 26, 2020. Announces Participation in the Morgan Stanley Virtual Global Consumer & Retailing Conference, National Vision Holdings, Inc. Reports Third Quarter 2020 Financial Results, National Vision Appoints Susan Somersille Johnson to Board of Directors, America’s Best Contacts & Eyeglasses Sole Sponsor of the Pennsylvania College of Optometry’s Summer Enrichment Program, National Vision 2020-2021 Grant Program Challenges Optometry Students to Share Post-Pandemic Projections for Healthcare Practices, Naomi Kelman Appointed to National Vision’s Board of Directors, National Vision Holdings, Inc. Reports Second Quarter 2020 Financial Results, National Vision Holdings, Inc. EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Operating Income, Adjusted Operating Margin, Adjusted Diluted EPS, Adjusted SG&A, Adjusted SG&A Percent of Net Revenue, and Adjusted Comparable Store Sales Growth are not recognized terms under GAAP and should not be considered as an alternative to net income, the ratio of net income to net revenue as a measure of financial performance, SG&A, the ratio of SG&A to net revenue as a measure of financial performance, cash flows provided by operating activities as a measure of liquidity, comparable store sales growth as a measure of operating performance, or any other performance measure derived in accordance with GAAP. Total comparable store sales based on consolidated net revenue excluding the impact of (i) Corporate/Other segment net revenue, (ii) sales from stores opened less than 13 months, (iii) stores closed in the periods presented, (iv) sales from partial months of operation when stores do not open or close on the first day of the month and (v) if applicable, the impact of a 53rd week in a fiscal year. … The Company had no borrowings under its $300.0 million first lien revolving credit facility, exclusive of letters of credit of $5.7 million. As we enter the fourth quarter, while significant uncertainty remains, we are off to a strong start as the third quarter comp momentum continued throughout October. A live audio webcast of the conference call will be available on the “Investors” section of the Company’s website www.nationalvision.com/investors, where presentation materials will be posted prior to the conference call. Capital expenditures for the first nine months of 2020 totaled $40.8 million compared to $76.5 million for the same period of 2019, primarily due to the timing of new store capital investments. National Vision Holdings, Inc. and Subsidiaries: Condensed Consolidated Balance Sheets: As of September 30, 2017 and December 31, 2016: In Thousands, Except Par Value Information (Unaudited) ASSETS: As of September 30, 2017 As of December 31, 2016: Current assets: Cash and cash equivalents $ 27,621 $ 4,945 Accounts receivable, net of allowances Expenses related to a non-recurring management realignment described in the Current Report on Form 8-K filed with the SEC on January 10, 2019. National Vision Holdings Inc is an optical retailer in the U.S. Its product portfolio includes eyeglasses and sunglasses, contact lenses, accessories, and other products. National Vision Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Operations and Comprehensive Income For the Three and Nine Months Ended September 28, 2019 and September 29, 2018 National Vision Holdings, Inc. and Subsidiaries Reconciliation of GAAP and Non-GAAP Financial Measures For the Three Months and Fiscal Years Ended December 28, … As a percentage of net revenue, SG&A increased 10 basis points to 42.9% from 42.8% for the same period of 2019. A telephone replay will be available shortly after the broadcast through Thursday, November 12, 2020, by dialing 855-859-2056 from the U.S. or 404-537-3406 from international locations, and entering conference passcode 8282008. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. National Vision Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Operations and Comprehensive Income For the Three and Nine Months Ended September 28, … The Company opened 18 new stores, closed one store, and ended the quarter with 1,201 stores. The Company believes it has sufficient liquidity to fund operations for at least the next 12 months, given cash on hand, cash expected to be generated from operations, and the cash available through its revolving credit facility. Reconciliation of GAAP to Non-GAAP Financial Measures. The Company is not able to reconcile these forward-looking non-GAAP measures to GAAP without unreasonable efforts because it is not possible to predict with a reasonable degree of certainty the actual impact of certain items and unanticipated events, including taxes and non-recurring items, which would be included in GAAP results. Diluted earnings per share increased 2,782% to $0.42 compared to $0.01 for the third quarter of 2019. National Vision Holdings, Inc., through its subsidiaries, operates as an optical retailer primarily in the United States. There may be variations in the way in which some of our competitors and other retailers calculate comparable store sales. Expenses associated with settlement of litigation. Announces Second Quarter 2020 Earnings Release and Conference Call. To supplement the Company’s financial information presented in accordance with GAAP and aid understanding of the Company’s business performance, the Company uses certain non-GAAP financial measures, namely “EBITDA,” “Adjusted EBITDA,” “Adjusted EBITDA Margin,” “Adjusted Operating Income,” “Adjusted Operating Margin,” “Adjusted Diluted EPS,” “Adjusted SG&A” and “Adjusted SG&A Percent of Net Revenue.” We believe EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Operating Income, Adjusted Operating Margin, Adjusted Diluted EPS, Adjusted SG&A and Adjusted SG&A Percent of Net Revenue assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Adjusted Comparable Store Sales Growth: We measure Adjusted Comparable Store Sales Growth as the increase or decrease in sales recorded by the comparable store base in any reporting period, compared to sales recorded by the comparable store base in the prior reporting period, which we calculate as follows: (i) sales are recorded on a cash basis (i.e., when the order is placed and paid for or submitted to a managed care payor, compared to when the order is delivered), utilizing cash basis point of sale information from stores; (ii) stores are added to the calculation during the 13th full fiscal month following the store’s opening; (iii) closed stores are removed from the calculation for time periods that are not comparable; (iv) sales from partial months of operation are excluded when stores do not open or close on the first day of the month; and (v) when applicable, we adjust for the effect of the 53rd week. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934. Overall, we continue to believe that we are well positioned to navigate the pandemic given our emphasis on safety in our store and supply chain operations and strong financial condition.”. As of March 28, 2020 and December 28, 2019. National Vision Holdings, Inc., through its subsidiaries, operates as an optical retailer primarily in the United States. For the Three and Six Months Ended June 27, 2020 and June 29, 2019. “Commitments and Contingencies” for further details. Net income decreased 96% to $1.2 million compared to net income of $28.9 million for the same period of 2019. There are two differences between total comparable store sales growth based on consolidated net revenue and Adjusted Comparable Store Sales Growth: (i) Adjusted Comparable Store Sales Growth includes the effect of deferred and unearned revenue as if such revenues were earned at the point of sale, resulting in the following changes from total comparable store sales growth based on consolidated net revenue: an increase of 0.9% and an increase of 0.6% for the three months ended September 26, 2020 and September 28, 2019, respectively, an increase of 0.5% and an increase of 0.3% for the nine months ended September 26, 2020 and September 28, 2019, respectively; and (ii) Adjusted Comparable Store Sales Growth includes retail sales to the Legacy partner’s customers (rather than the revenues recognized consistent with the management & services agreement with the legacy partner), resulting the following changes from total comparable store sales growth based on consolidated net revenue: a decrease of 0.1% and a decrease of 0.1% for the three months ended September 26, 2020 and September 28, 2019, respectively, and an increase of 0.1% and a decrease of 0.2% for the nine months ended September 26, 2020 and September 28, 2019, respectively. Diluted earnings per share decreased 95.9% to $0.01 compared to $0.35 for the same period of 2019. Adjusted Comparable Store Sales Growth, Adjusted EBITDA, Adjusted Operating Income, Adjusted Diluted EPS, Adjusted Operating Margin, Adjusted EBITDA Margin, and EBITDA are not measures recognized under generally accepted accounting principles (“GAAP”). National Vision has 11,781 employees at their 1 location and $1.72 B in annual revenue in FY 2019. Net revenue decreased 8.1% to $1.2 billion from $1.3 billion for the same period of 2019. Errors exist on this page. This plan was effective in 2014 following the KKR Acquisition. Company Profile National Vision Holdings, Inc., through its subsidiaries, operates as an optical retailer primarily in the United States. Cash flows from operating activities for the first nine months of 2020 were $203.7 million compared to $170.9 million for the same period of 2019. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. The net change in margin on unearned revenue negatively impacted Adjusted EBITDA and Adjusted Operating Income by $(11.7) million. Expenses related to our secondary public offerings for the three and nine months ended September 28, 2019 and September 29, 2018, respectively. SG&A decreased1% to $520.8 million from $566.4 million for the same period of 2019. The impact from the timing of unearned revenue on net revenue and profitability was immaterial for the third quarter of 2020. Announces Second Quarter 2018 Earnings Release and Conference Call, National Vision Announces Pricing of Secondary Offering (1), National Vision Announces Secondary Offering of 12 Million Shares of Common Stock, National Vision's Largest-Ever Continuing Education Symposium Celebrates Optometrist Milestones and Achievements, National Vision Announces 2018 College Scholarship Recipients, National Vision Holdings, Inc. With a mission of helping people by making quality eyecare and eyewear more affordable and accessible, the Company operates five retail brands: America’s Best Contacts & Eyeglasses, Eyeglass World, Vision Centers inside select Walmart stores, Vista Opticals inside select Fred Meyer stores and on select military bases, and several e-commerce websites, offering a variety of products and services for customers’ eyecare needs. Focused on offering a variety of products and services for customers ’ care... 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