SmileDirectClub Investor Presentation Deck slide image

SmileDirectClub Investor Presentation Deck

Balance sheet highlights. We ended Q4 with $316.7 million in cash and cash equivalents. ā— Cash from operations for the fourth quarter was negative $14.9 million. Cash spent on investing for the fourth quarter was $28.4 million, mainly associated with leasehold improvements, capitalized software and building our manufacturing automation. On free cash flow,(1) we've experienced a meaningful improvement since the end of 2019 Negative $43.3 million in Q4, down from negative $181.2 million in Q4 of 2019. (1) Free Cash Flow is a non-GAAP financial measure. See appendix for definition of Free Cash Flow. smile DIRECT CLUB ($ in millions) Cash Debt Accounts Receivable, Net Cash Flow from Operations Cash Flow from Investing Free Cash Flow Q4 2019 $318.5 $208.5 Q1 2020 $224.4 Q2 2020 Q3 2020 Q4 2020 $389.0 $(141.2) $(70.4) $221.4 $420.3 $415.7 $373.0 $(15.5) $345.7 $345.3 $311.8 $302.0 $293.3 $17.2 $316.7 $(40.0) $(28.1) $(19.7) $(20.9) $408.6 ($14.9) $(28.4) $(181.2) $(98.5) $(35.2) $(3.7) $(43.3) On SmilePay, which drives our accounts receivable, in Q4 2020, SmilePay as a percentage of total aligners purchased was lower than previous quarters at 60% versus 64% for the full year. Overall, SmilePay has continued to perform well, and our delinquency rates in Q4 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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