Schedule I - Condensed Financial Information of Registrant

12 Months Ended

Dec. 30, 2023

Condensed Financial Information Disclosure [Abstract]

Schedule I - Condensed Financial Information of Registrant

National Vision Holdings, Inc. and Subsidiaries (Parent Company Only)

Condensed Balance Sheets

In Thousands, Except Par Value


	As of December 30, 2023		As of December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	233	$	841

Prepaid expenses and other current assets	—		—
Total current assets	233		841

Deferred income taxes	10,245		7,844
Investment in subsidiary	1,201,291		1,368,303

Total noncurrent assets	1,211,536		1,376,147
Total assets	$	1,211,769	$	1,376,988

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Other payables and accrued expenses	$	1,130	$	1,336

Long-term debt, less current portion and debt discount	300,000		396,801
Noncurrent liabilities:
Other liabilities	81,221		77,738

Total other noncurrent liabilities	81,221		77,738

Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 84,831 and 84,273 shares issued as of December 30, 2023 and December 31, 2022, respectively; 78,311 and 78,992 shares outstanding as of December 30, 2023 and December 31, 2022, respectively	848		842
Additional paid-in capital	788,967		767,112
Accumulated other comprehensive loss	(419)		(1,179)
Retained earnings	254,616		320,517
Treasury stock, at cost; 6,520 and 5,281 shares as of December 30, 2023 and December 31, 2022, respectively	(214,594)		(186,179)
Total stockholders’ equity	829,418		901,113
Total liabilities and stockholders’ equity	$	1,211,769	$	1,376,988

The accompanying notes are an integral part of these condensed financial statements.

Schedule I - Condensed Financial Information of Registrant

National Vision Holdings, Inc. And Subsidiaries (Parent Company Only)

Condensed Statements of Operations and Comprehensive Income

In Thousands


	Fiscal Year 2023		Fiscal Year 2022		Fiscal Year 2021
Total net revenue	$	—	$	—	$	—
Total costs applicable to revenue	—		—		—
Total operating expenses	214		266		256
Interest expense, net	12,040		12,345		12,275
Loss on extinguishment of debt	599		—		—
Earnings (loss) before income taxes	(12,853)		(12,611)		(12,531)
Income tax provision (benefit)	(2,401)		(2,869)		(2,898)
Earnings (loss) before equity in net income of subsidiaries	(10,452)		(9,742)		(9,633)
Net income (loss) of subsidiaries	(55,449)		51,864		137,877
Net income (loss)	$	(65,901)	$	42,122	$	128,244

Comprehensive income:
Net income (loss)	$	(65,901)	$	42,122	$	128,244
Unrealized gain on hedge instruments	1,019		1,020		6,158
Tax provision of unrealized gain on hedge instruments	259		259		3,698
Comprehensive income (loss)	$	(65,141)	$	42,883	$	130,704

The accompanying notes are an integral part of these condensed financial statements.

Schedule I - Condensed Financial Information of Registrant

National Vision Holdings, Inc. and Subsidiaries (Parent Company Only)

Condensed Statements of Cash Flows

In Thousands


	Fiscal Year 2023		Fiscal Year 2022		Fiscal Year 2021
Cash flows from operating activities
Net cash provided by operating activities	$	(6,780)	$	(9,744)	$	16,530
Cash flows from investing activities
Dividend from (investment in) subsidiary	132,443		89,550		46,600
Net cash provided by (used for) investing activities	132,443		89,550		46,600
Cash flows from financing activities
Repayments on long-term debt	(99,250)		(4)		—
Borrowings on long-term debt, net of discounts	—		—		—
Proceeds from issuance of common stock	1,837		3,744		11,838
Purchase of treasury stock	(28,415)		(84,388)		(73,295)
Payments of debt issuance costs	(443)		—		—
Net cash provided by (used for) financing activities	(126,271)		(80,648)		(61,457)
Net change in cash and cash equivalents	(608)		(842)		1,673
Cash and cash equivalents, beginning of year	841		1,683		10
Cash and cash equivalents, end of year	$	233	$	841	$	1,683

The accompanying notes are an integral part of these condensed financial statements.

1. Basis of Presentation

National Vision Holdings, Inc. (“NVHI,” or the “Company”) conducts substantially all of its activities through its indirect wholly owned subsidiary, National Vision, Inc. (“NVI”) and its subsidiaries. NVHI was incorporated in Delaware on February 14, 2014 under the name Nautilus Parent, Inc. There were no financial transactions between the inception date and March 13, 2014, the date the majority ownership of NVI was transferred from private equity funds managed by Berkshire Partners LLC to affiliates of Kohlberg Kravis Roberts & Co. L.P. In October 2017, we completed the initial public offering of our common stock. By August 2019, each of KKR and Berkshire had sold their remaining holdings of our common stock. In the parent-company-only financial statements, NVHI’s investment in subsidiaries is stated at cost, plus equity in undistributed earnings of subsidiaries since the date of acquisition, less dividends. The parent-company-only financial statements should be read in conjunction with the NVHI consolidated financial statements.

In May 2020, the Company issued $402.5 million principal amount of 2.50% convertible senior notes due 2025. The 2025 Notes pay interest semi-annually in arrears on May 15 and November 15 of each year, commencing on November 15, 2020, at an annual rate of 2.50% and are convertible into cash, shares of common stock or a combination of cash and shares of common stock, at our election, based on the applicable conversion rate at such time. NVHI contributed the proceeds from the 2025 Notes to NVI as additional investments during the fiscal year 2020. See Note 5. “Long-term Debt” to the NVHI consolidated financial statements for details of the 2025 Notes, including information on a repurchase of $100.0 million aggregate principal amount of our 2025 Notes in November 2023.

2. Guarantees and Restrictions

As of December 30, 2023, NVI had $146.3 million of principal amount of long-term debt outstanding under its Term Loan A and no outstanding cash borrowings under its $300.0 million Revolving Loans, which includes $6.4 million in outstanding letters of credit.

Under the terms of NVI’s amended credit agreement, provided no event of default has occurred and is continuing, NVI is permitted to pay dividends to NVHI with certain restrictions.