nvst-20210402

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 2, 2021


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

			For the transition period from to

Commission File Number: 001-39054

ENVISTA HOLDINGS CORPORATION

(Exact name of Registrant as specified in its charter)


Delaware		83-2206728
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

200 S. Kraemer Blvd., Building E		92821-6208
Brea,	California
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: 714-817-7000

Securities Registered Pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common stock, $0.01 par value	NVST	New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☒

Accelerated Filer

☐

Non-accelerated Filer

☐

Smaller Reporting company

☐

Emerging Growth Company

☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

The number of shares of common stock outstanding as of April 30, 2021, was 160,776,888.

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION
		PAGE
Item 1.	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations	2
	Condensed Consolidated Statements of Comprehensive Income (Loss)	3
	Condensed Consolidated Statements of Changes in Stockholders' Equity	4
	Condensed Consolidated Statements of Cash Flows	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	34

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 3.	Defaults Upon Senior Securities	35
Item 4.	Mine Safety Disclosures	36
Item 5.	Other Information	36
Item 6.	Exhibits	36

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

ENVISTA HOLDINGS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

($ in millions, except share amounts)


	As of
	April 2, 2021		December 31, 2020
ASSETS
Current assets:
Cash and equivalents	$	441.2	$	888.9
Trade accounts receivable, less allowance for credit losses of $34.9 and $37.1, respectively	358.1		361.0
Inventories, net	283.2		266.9
Prepaid expenses and other current assets	80.8		73.7
Total current assets	1,163.3		1,590.5
Property, plant and equipment, net	295.7		303.0
Operating lease right-of-use assets	155.5		165.3
Other long-term assets	127.0		127.3
Goodwill	3,372.8		3,430.7
Other intangible assets, net	1,207.6		1,259.2
Total assets	$	6,321.9	$	6,876.0
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt	$	416.4	$	886.8
Trade accounts payable	204.6		235.1
Accrued expenses and other liabilities	488.0		530.3
Operating lease liabilities	27.3		32.5
Total current liabilities	1,136.3		1,684.7
Operating lease liabilities	142.5		153.8
Other long-term liabilities	403.6		408.8
Long-term debt	892.2		907.7
Commitments and contingencies
Stockholders’ equity:
Preferred stock, no par value, 15.0 million shares authorized; no shares issued or outstanding at April 2, 2021 and December 31, 2020	—		—
Common stock - $0.01 par value, 500.0 million shares authorized; 161.0 million shares issued and 160.6 million shares outstanding at April 2, 2021; 160.2 million shares issued and 160.0 million outstanding at December 31, 2020	1.6		1.6
Additional paid-in capital	3,691.1		3,684.4
Retained earnings	198.1		126.4
Accumulated other comprehensive loss	(143.9)		(91.8)
Total Envista stockholders’ equity	3,746.9		3,720.6
Noncontrolling interests	0.4		0.4
Total stockholders’ equity	3,747.3		3,721.0
Total liabilities and stockholders’ equity	$	6,321.9	$	6,876.0

See the accompanying Notes to the Condensed Consolidated Financial Statements.

ENVISTA HOLDINGS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

($ and shares in millions, except per share amounts)


	Three Months Ended
	April 2, 2021		April 3, 2020
Sales	$	709.2	$	547.2
Cost of sales	311.9		268.8
Gross profit	397.3		278.4
Operating expenses:
Selling, general and administrative	258.9		268.7
Research and development	30.1		34.7
Operating profit (loss)	108.3		(25.0)
Nonoperating income (expense):
Other income	0.3		0.1
Interest expense, net	(18.0)		(3.3)
Income (loss) before income taxes	90.6		(28.2)
Income tax expense (benefit)	18.9		(11.0)
Net income (loss)	$	71.7	$	(17.2)
Earnings (loss) per share:
Basic	$	0.45	$

SEC Form 10-Q filed by Envista Holdings Corporation