National Vision Holdings, Inc. (NASDAQ:EYE) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 10:00 am ET


National Vision Holdings, Inc. (NASDAQ:EYE) Q3 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the National Vision Third Quarter 2019 Earnings Conference Call. [Operator Instructions].

I would now like to hand the conference over to your speaker for today, Mr. David Mann.

Please go ahead, sir.

David Mann

Thank you, and good morning everyone. Welcome to National Vision's third quarter 2019 earnings call. Joining me on the call today are Reade Fahs, Chief Executive Officer; and Patrick Moore, Chief Financial Officer. Our earnings release issued this morning and the presentation, which will be referenced during the call are both available on the Investors Section of our website, and a replay of the audio webcast will be archived on the Investors page after the call.

Before we begin, let me remind you our earnings materials and today's presentation include forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include, but are not limited to the factors identified in the release and in our filings with the Securities and Exchange Commission.

The release and today's presentation also includes certain non-GAAP measures. Reconciliation of these measures are included in our release and the supplemental presentation. We also would like to draw your attention to slide two in today's presentation for additional information about forward-looking statements and non-GAAP measures.

As a reminder, National Vision expects to provide certain supplemental materials or presentations for investor reference on our Investors section of our website.

Now, let me turn the call over to Reade.

Reade Fahs

Thank you David. Good morning everyone. It's a pleasure to be speaking with you today to share our third quarter results. If you turn to slide four, Q3 was a really good quarter for us. We're pleased to report our 71st consecutive quarter of positive comparable store sales growth, that's almost 18 years of consistently healthy quarterly comps, we remain quite proud of the consistency and durability that this track record reflects.

Q3 adjusted comparable store sales growth was up 6.2%, comps were once again led by our growth brands with a 6.7% comp increase at America's Best, and 5.2% comp increase at Eyeglass World, respectively. Also, I'm quite pleased with the improving performance at our Legacy segment, which delivered a 5.7% comp increase.

We opened 17 new stores in Q3, and ended the quarter with 1,145 stores or a 7.3% increase in store count in the past year. The comparable store sales growth and unit growth combined to drive 11% increase in net revenue. Adjusted EBITDA increased nearly 25%, and adjusted net income rose almost 66%. We closely monitor Net Promoter Scores as another sign of customer satisfaction and ambassadorship. Our overall NPS increased year-over-year again this quarter. This is a testament to the store level execution of our teams and their commitment to customer service everyday, and in every store, one patient and one customer at a