Slide 1: FY 2013 Third Quarter Earnings Call
FY 2013 Third Quarter Earnings Call August 6, 6 2013
Slide 2: Agenda
Agenda TransDigm Overview W. Nicholas Howley Chairman and CEO Highlights, Market Review, Operating W. Nicholas Howley Performance and Outlook Chairman and CEO Financial Results Gregory Rufus Executive Vice President and CFO Q&A W. Nicholas Howley Chairman and CEO Raymond F. Laubenthal Presid
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains forward‐looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including information regarding our guidance for future periods. These forward‐looking statements are based on management’s current expectation
Slide 4: Special Notice Regarding Pro Forma and Non-GAAP Information
Special Notice Regarding Pro Forma and Non‐GAAP Information This presentation sets forth certain pro forma financial information. This pro forma financial information gives effect to certain recently completed acquisitions and divestitures. Such pro forma information is based on certain assumptions
Slide 5: TransDigm Overview
TransDigm Overview DISTINGUISHING CHARACTERISTICS Highly Hi hl engineered i d aerospace components t Significant Si ifi t aftermarket ft k t content t t Proprietary and sole source products High free cash flow Pro Forma Revenues Proprietary Pro Forma EBITDA (Excluding Non- Revenues (1) As De
Slide 6: 2013 Q3 Financial Performance by Markets – Pro Forma
2013 Q3 Financial Performance by Markets – Pro Forma Highlights⁽¹⁾ Market Review – Pro Forma Revenues⁽¹⁾ Commercial OEM Actual vs. Prior Year Ahead of original expectations 2013 Q3 2013 YTD Prior year comps very high Commercial OEM: Up 10% Up 7% Commercial Aftermarket: See clear signs of i
Slide 7: Fiscal 2013 Outlook
Fiscal 2013 Outlook Sales Mix (1) Market Expected Growth⁽¹⁾ 32% Commercial OEM Up Mid to High Single-Digit % 44% Commercial Aftermarket Up Low Single-Digit % 24% Defense Up Mid Single-Digit % Assumptions Guidance Summary ($ in millions) Worldwide RPM growth ≈ 4% to 5% Low High OEM production rat
Slide 8: Third Quarter 2013 Results
Third Quarter 2013 Results ($ in millions) Q3 FY13 Q3 FY12 Revenue $488.6 $461.7 5.8% Increase Gross Profit $269.0 $253.3 Flat Margins Margin % 55.0% 54.9% ● Dilutive impact of acquisitions ● Higher non-cash stock comp. expense ● Unfavorable OEM vs aftermarket product mix ● Strength St th off our pr
Slide 9: Liquidity & Taxes
Liquidity & Taxes ($ in millions) Cash Taxes FY13 Q3 ETR: 32.9% YTD 6/29/2013 FY 9/30/2012 N tC Net Cash hPProvided id d by b Operating Activities $267.0 $413.9 FY 13 Full Year ETR ≈ 33% Capital Expenditures ($23.6) ($25.2) Free Cash Flow $243.4 $388.7 Cash on the Balance Sheet $269.2 $440.5 Liq
Slide 10: Reconciliation of GAAP to Adjusted EPS - Guidance
Reconciliation of GAAP to Adjusted EPS ‐ Guidance ($ in millions) Full Year Thirteen Week Periods Thirty-Nine Week Guidance Ended Periods Ended Mid-Point June 29, June 30, June 29, June 30, September 30, 2013 2012 2013 2012 2013 Earnings per share $ 0.71 $ 1.68 $ 2.62 $ 4.34 $ 2.34 Adjustments to ea
Slide 11: Appendix
TRANSDIGM GROUP INC. HOW WE MEASURE SUCCESS Appendix
Slide 12: Reconciliation of Net Income to EBITDA and EBITDA As Defined
Reconciliation of Net Income to EBITDA and EBITDA As Defined ($ in thousands) Thirteen Week Thirty-Nine Week Periods Ended Periods Ended June 29, June 30, June 29, June 30, 2013 2012 2013 2012 Net income $ 76,655 $ 90,446 $ 218,762 $ 237,103 Adjustments: Depreciation and amortization expense 16,062
Slide 13: Reconciliation of Reported EPS to Adjusted EPS
Reconciliation of Reported EPS to Adjusted EPS ($ in thousands, except per share amounts) Thirteen Week Thirty-Nine Week Periods Ended Periods Ended June 29, June 30, June 29, June 30, Reported p Earnings g Per Share 2013 2012 2013 2012 Net income $ 76,655 $ 90,446 $ 218,762 $ 237,103 Less: dividend
Slide 14: Reconciliation of Net Cash Provided by Operating Activities to EBITDA
Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined ($ in thousands) Thirty-Nine Week Periods Ended June 29, 2013 June 30, 2012 Net Cash Provided by Operating Activities $ 267,035 $ 257,823 Adjustments: Changes in assets and liabilities, net of effects from ac
Slide 15: FY 2013 Third Quarter Earnings Call
FY 2013 Third Quarter Earnings Call August 6 6, 2013