Slide 1: FY 2015 First Quarter Earnings Call
FY 2015 FIRST QUARTER EARNINGS CALL January 27, 2015
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 1
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. Such pro forma information is based on certain assumptions and adjustments a
Slide 5: TransDigm Overview
TransDigm Overview DISTINGUISHING CHARACTERISTICS Highly engineered aerospace components Significant aftermarket content Proprietary and sole source products High free cash flow Proprietary Pro Forma Revenues Pro Forma EBITDA Revenues (1) (Excluding Non-Aviation Segment) (1) As Defined (1) N
Slide 6: 2015 Q1 Financial Performance by Markets – Pro Forma
2015 Q1 Financial Performance by Markets – Pro Forma Highlights⁽¹⁾ Q1 Market Review – Pro Forma Revenues⁽¹⁾ Actual vs. Prior Year Q1 2015 Commercial OEM Commercial OEM: Up 6% Business jet revenues up 11% Commercial Aftermarket: Up 5% Commercial Aftermarket Bookings modestly ahead of shipments De
Slide 7: Fiscal 2015 Outlook – No Change from Original Guidance
Fiscal 2015 Outlook – No Change from Original Guidance FY 2014 Pro Forma Sales Mix (1) Market FY 2015 Expected Growth 31% Commercial OEM Up Mid Single-Digit % 38% Commercial Aftermarket Up High Single-Digit % 31% Defense Flat Assumptions Guidance Summary ($ in millions) Worldwide RPM growth ≈ 4% t
Slide 8: First Quarter 2015 Results
First Quarter 2015 Results ($ in millions) Q1 FY15 Q1 FY14 Revenue $586.9 $529.3 10.9% Increase Gross Profit $321.2 $284.1 1 Margin Point Increase Margin % 54.7% 53.7% ● Strength of our proprietary products and productivity improvements ● Reduced non-operating acquisition related costs ● Dilutive im
Slide 9: Liquidity & Taxes
Liquidity & Taxes ($ in millions) Cash Liquidity 12/27/2014 FY 9/30/2014 Net Debt to Pro Net Cash Provided by Actual Forma EBITDA As Operating Activities $189.0 $541.2 12/27/2014 Defined Multiple Rate Cash $1,012 Capital Expenditures ($8.1) ($34.1) $420m revolver – L + 3.00% Free Cash Flow $180.9 $5
Slide 10: Reconciliation of GAAP to Adjusted EPS - Guidance
Reconciliation of GAAP to Adjusted EPS - Guidance Full Year Guidance Thirteen Week Periods Ended Mid-Point December 27, December 28, September 30, 2014 2013 2015 Earnings per share $ 1.63 $ 1.44 $ 7.64 Adjustments to earnings per share: Dividend equivalent payment 0.06 0.07 0.06 Non-cash stock compe
Slide 11: Appendix - Reconciliation of Net Income to EBITDA and EBITDA As Defined
Appendix - Reconciliation of Net Income to EBITDA and EBITDA As Defined ($ in thousands) Thirteen Week Periods Ended December 27, December 28, 2014 2013 Net income $ 95,533 $ 86,123 Adjustments: Depreciation and amortization expense 21,785 23,839 Interest expense, net 98,935 80,853 Income tax provis
Slide 12: Appendix - Reconciliation of Reported EPS to Adjusted EPS
Appendix - Reconciliation of Reported EPS to Adjusted EPS ($ in thousands, except per share amounts) Thirteen Week Periods Ended December 27, December 28, Reported Earnings Per Share 2014 2013 Net income $ 95,533 $ 86,123 Less: dividends paid on participating securities (3,365) (4,139) Net income ap
Slide 13: Appendix - Reconciliation of Net Cash Provided by Operating Activities to EBITDA
Appendix - Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined ($ in thousands) Thirteen Week Periods Ended December 27, December 28, 2014 2013 Net Cash Provided by Operating Activities $ 188,959 $ 115,707 Adjustments: Changes in assets and liabilities, net of