SmileDirectClub Investor Presentation Deck slide image

SmileDirectClub Investor Presentation Deck

Balance sheet highlights. We ended Q1 with $434.5 million in cash and cash equivalents. ● ● ● Cash from operations for the first quarter was ($28.3) million. Cash spent on investing for the first quarter was $23.0 million, mainly associated with capitalized labor, capitalized software, and building our manufacturing automation. Free cash flow(1) was slightly lower versus Q4 2020, associated with timing of accounts payable payments, and growth in accounts receivable (1) Free Cash Flow is a non-GAAP financial measure. See appendix for definition of Free Cash Flow. smile DIRECT CLUB ($ in millions) Cash Debt Accounts Receivable, Net Cash Flow from Operations Cash Flow from Investing Free Cash Flow Q1 2020 $224.4 $221.4 Q2 2020 $389.0 $420.3 Q3 2020 Q4 2020 $373.0 $316.7 $415.7 $408.6 $345.3 $311.8 $302.0 $293.3 Q1 2021 $434.5 $745.7 $300.0 $(70.4) $(15.5) $17.2 ($14.9) ($28.3) ($28.1) ($19.7) ($20.9) ($28.4) ($23.0) ($98.5) ($35.2) ($3.7) ($43.3) ($51.3) On SmilePay, which drives our accounts receivable, in Q1 2021, SmilePay as a percentage of total aligners purchased was 61%, just above Q4 2020 (60%) and below FY 2020 (64%). Overall, SmilePay has continued to perform well, and our delinquency rates in Q1 were consistent with prior quarters. Because we keep a credit card on file, and have a low monthly payment, we expect SmilePay to continue to perform well. 14
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