Slide 1: FY 2013 First Quarter Earnings Call
FY 2013 First Quarter Earnings Call February 4 4, 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 Operations and Value Creation Raymond F. Laubenthal President and COO Financial Results Gregory Rufus Executive Vice President and CF
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 Ground Revenues (1) As
Slide 6: 2013 Q1 Financial Performance by Markets – Pro Forma
2013 Q1 Financial Performance by Markets – Pro Forma Highlights⁽¹⁾ Market Review – Pro Forma Revenues⁽¹⁾ Commercial OEM Actual vs. Prior Year Roughly tracking our expectations Q1 Fiscal 2013 2012 Q1 includes a favorable customer contract adjustment of ≈ $5 million Commercial OEM: U 5% Up Com
Slide 7: Fiscal 2013 Outlook
Fiscal 2013 Outlook FY 2012 Pro Forma FY 2013 Sales Mix (1) Market Expected Growth⁽¹⁾ 32% Commercial OEM Up Low Single-Digit % 44% Commercial Aftermarket Up 5 - 10 % 24% Defense Flat Assumptions Guidance Summary ($ in millions) Low High Worldwide RPM growth 4-5 % OEM production rate increases pr
Slide 8: First Quarter 2013 Results
First Quarter 2013 Results ($ in millions) Q1 FY13 Q1 FY12 Revenue $430.4 $352.5 22.1% Increase Gross Profit $238.5 $199.6 1.2 Margin Point Decrease Margin % 55.4% 56.6% ● Total dilutive acquisiiton impact over 1 margin point ● Q1 FY 12 included favorable contract adjustment ≈ 3/4 of a margin point
Slide 9: Liquidity & Taxes
Liquidity & Taxes ($ in millions) Cash 12/29/2012 FY 9/30/2012 Net Cash Provided by Operating Activities $98.1 $413.9 Taxes Capital Expenditures ($8.7) ($25.2) FY13 Q1 ETR: 32.6% Free Cash Flow $89 4 $89.4 $388 7 $388.7 FY 13 Full Year ETR : 33% to 34% Cash on the Balance Sheet $554.4 $440.5 Liq
Slide 10: Reconciliation of GAAP to Adjusted EPS
Reconciliation of GAAP to Adjusted EPS ($ in millions) Full Year Guidance Quarter Ended Mid-Point December 29, December 31, September 30, 2012 2011 2013 Earnings per share from continuing operations $ 0.66 $ 1.15 $ 5.72 Adjustments to earnings per share: Dividend equivalent payment 0.70 0.06 0.70 N
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 Periods Ended December 29, December 31, 2012 2011 Net income $ 74,170 $ 65,105 Adjustments: Depreciation and amortization expense 17,452 17,782 Interest expense, net 62,876 49,061 Income tax provision 35,800
Slide 13: Reconciliation of Reported EPS to Adjusted EPS
Reconciliation of Reported EPS to Adjusted EPS ($ in thousands, except per Thirteen Week share amounts) Periods Ended December 31, December 31, Reported Earnings Per Share 2012 2011 Net income $ 74,170 $ 65,105 Less: dividends paid on participating securities (38,130) (3,299) Net income applicable t
Slide 14: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined
Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined ($ in thousands) Thirteen Week Periods Ended December 29, December 31, 2012 2011 N t Cash Net C h Provided P id d by b Operating O ti Activities A ti iti $ 98 115 98,115 $ 68 094 68,094 Adjustments: Changes i
Slide 15: FY 2013 First Quarter Earnings Call
FY 2013 First Quarter Earnings Call February 4 4, 2013