Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q1 2016 Earnings Presentation
13 slides from Huntington Ingalls Industries's earnings presentation, May 5, 2016
Slide 1: Q1 2016 Earnings Presentation
Q1 2016 Earnings Presentation May 5, 2016 Mike Petters President and CEO Chris Kastner Corporate Vice President, Business Management and CFO Exhibit 99.2
Slide 2: Safe Harbor Statement
2 Safe Harbor Statement 2 Statements in this presentation, other than statements of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause our act
Slide 3: Q1 2016 Highlights
3 Q1 2016 Highlights 3 * Non-GAAP measures. See appendix for definition and reconciliation.. Revenues of $1.76 billion, up 12.3% YoY Diluted EPS was $2.87, compared to $1.79 in Q1 2015 Segment operating margin* was 9.4%, compared to 8.2% in Q1 2015 Total operating margin was 11.2%, compared to
Slide 4: Q1 2016 Consolidated Results
4 Q1 2016 Consolidated Results 4 $1,570 $1,763 $1,000 $1,150 $1,300 $1,450 $1,600 $1,750 $1,900 Q1 2015 Q1 2016 ($ in m illi on s) Consolidated Revenues $156 $198 $— $50 $100 $150 $200 $250 Q1 2015 Q1 2016 ($ in m illi on s) Op rating Income 9.9% 11.2% —% 2.0 % 4.0 % 6.0 % 8.0 % 10.0 % 12.0 % Q1 201
Slide 5: Q1 2016 Ingalls Shipbuilding Results
5 Q1 2016 Ingalls Shipbuilding Results 5 $469 $586 $— $100 $200 $300 $400 $500 $600 $700 Q1 2015 Q1 2016 ($ in m illi on s) Revenues $45 $82 $— $15 $30 $45 $60 $75 $90 Q1 2015 Q1 2016 ($ in m illi on s) Operating Income 9.6% 14.0% —% 3.0 % 6.0 % 9.0 % 12.0 % 15.0 % Q1 2015 Q1 2016 Operating Margin
Slide 6: Q1 2016 Newport News Shipbuilding Results
6 Q1 2016 Newport News Shipbuilding Results 6 $1,061 $1,153 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 Q1 2015 Q1 2016 ($ in m illi on s) Revenues $93 $89 $50 $60 $70 8 $90 $100 Q1 2015 Q1 2016 ($ in m illi on s) Operating Income 8.8% 7.7% —% 2.0 % 4.0 % 6.0 % 8.0 % 10.0 % Q1 2015 Q1 2016 Operati
Slide 7: Q1 2016 Other Segment Results
7 Q1 2016 Other Segment Results 7 $40 $24 $— $10 $20 $30 $40 $50 Q1 2015 Q1 2016 ($ in m illi on s) Revenues $(10) $(5) $(15) $(10) $(5) $— $5 ($ in m illi on s) Operating Income (25.0)% (20.8)% (30.0)% (20.0)% (10.0)% —% 10.0 % Operating Margin Q1 2015 Q1 2016 Q1 2016 Q1 2015 Other segment revenu
Slide 8: Appendix
8 8 Appendix
Slide 9: Non-GAAP Measures Definitions
9 Non-GAAP Measures Definitions 9 We make reference to “segment operating income,” “segment operating margin,” “adjusted net earnings,” and “adjusted diluted earnings per share." Segment operating income is defined as total operating income before the FAS/CAS Adjustment and deferred state income tax
Slide 10: Reconciliation – Segment Operating Income & Segment Operating Margin
10 Reconciliation – Segment Operating Income & Segment Operating Margin 10 ($ in millions) 2016 2015 Sales and Service Revenues Ingalls revenues 586$ 469$ Newport News revenues 1,153 1,061 Other revenues 24 40 Total Sales and Service Revenues 1,763 1,570 Segment Operating Income Ingalls 82 45 As a p
Slide 11: Reconciliation – Adjusted Net Earnings & Adjusted Diluted EPS
11 Reconciliation – Adjusted Net Earnings & Adjusted Diluted EPS 11 ($ in millions, except per share amounts) 2016 2015 $ Change % Change Adjusted Net Earnings Net Earnings 136$ 87$ 49$ 56.3 % Adjustment for FAS/CAS Adjustment1 (23) (18) (5) 27.8 % Adjusted Net Earnings 113 69 44 63.8 % Weighted-Ave
Slide 12: Reconciliation – Free Cash Flow
12 Reconciliation – Free Cash Flow 12 ($ in millions) 2016 2015 Free cash flow Net cash provided by (used in) operating activities 54 10 Less: Capital expenditures (37) (20) Free cash flow 17 (10) Three Months Ended March 31
Slide 13: Huntington Ingalls Industries
Huntington Ingalls Industries
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