Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q3 2017 Earnings Presentation
15 slides from Huntington Ingalls Industries's earnings presentation, Nov 8, 2017
Slide 1: Q3 2017 Earnings Presentation
Q3 2017 Earnings Presentation November 8, 2017 Mike Petters President and Chief Executive Officer Chris Kastner Executive Vice President, Business Management and Chief Financial Officer
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements Statements in this presentation, other than statements of historical fact, may 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
Slide 3: HII's Q3 2017 Highlights
3 HII’s Q3 2017 Highlights Revenues were $1.86 billion in the quarter Diluted EPS was $3.27 in the quarter Total backlog at the end of the quarter was ~$23 billion; new contract awards in the quarter totaled approximately $3 billion Ingalls Shipbuilding o Delivered Portland (LPD 27) and USS
Slide 4: HII's Q3 2017 Consolidated Results
4 HII’s Q3 2017 Consolidated Results HII’s revenues up 10.7% YOY due to increased volume at Newport News and the acquisition of Camber Corp., which contributed $74M in the quarter HII’s operating income and operating margin up YOY due to the resolution of outstanding contract changes at Newport
Slide 5: HII's Q3 and YTD 2017 Capital Deployment
5 $27 $82 $37 $247 $— $50 $100 $150 $200 $250 $300 $350 Q3 2017 Q3 2017 YTD ($ in m illi on s) Shareholder Distributions Dividends Share Repurchases HII’s Q3 and YTD 2017 Capital Deployment *Non-GAAP measure. See appendix for definition and reconciliation. Capital expenditures were $91 million or
Slide 6: Ingalls Shipbuilding Q3 2017 Results
6 Ingalls Shipbuilding Q3 2017 Results *Non-GAAP measure. See appendix for definition and reconciliation. Ingalls revenues up 2.8% YOY due to higher volumes on the LPD and LHA programs, partially offset by lower volume on the NSC program Ingalls segment operating income and margin up YOY due to
Slide 7: Newport News Shipbuilding Q3 2017 Results
7 Newport News Shipbuilding Q3 2017 Results *Non-GAAP measure. See appendix for definition and reconciliation. Newport News revenues up 7.7% YOY due to higher volumes on aircraft carriers and submarines Newport News segment operating income and margin up YOY primarily due to the resolution of ou
Slide 8: Technical Solutions Q3 2017 Results
8 Technical Solutions Q3 2017 Results *Non-GAAP measure. See appendix for definition and reconciliation. Technical Solutions revenues up 56.5% YOY due to the 4Q16 acquisition of Camber Corporation Technical Solutions segment operating income and margin up YOY primarily due to the reversal of a p
Slide 9: Appendix
9 Appendix
Slide 10: Non-GAAP Measures Definitions
10 Non-GAAP Measures Definitions We make reference to “segment operating income (loss),” “segment operating margin,” “adjusted net earnings (loss),” “adjusted diluted earnings per share,” and “free cash flow.” We internally manage our operations by reference to “segment operating income (loss)” and
Slide 11: Non-GAAP Measures Definitions Cont'd
11 Non-GAAP Measures Definitions Cont’d Segment operating income (loss) is defined as operating income (loss) for the relevant segment(s) before the FAS/CAS Adjustment and non-current state income taxes. Segment operating margin is defined as segment operating income (loss) as a percentage of sales
Slide 12: Non-GAAP Reconciliations – Segment Operating Income (Loss) & Segment Operating Margin
12 Non-GAAP Reconciliations – Segment Operating Income (Loss) & Segment Operating Margin ($ in millions) 2017 2016 2017 2016 Ingalls revenues 593$ 577$ 1,782$ 1,748$ Newport News revenues 1,053 978 3,025 2,970 Technical Solutions revenues 241 154 710 505 Intersegment eliminations (24) (26) (72) (77)
Slide 13: Non-GAAP Reconciliations – Adjusted Net Earnings & Adjusted Diluted EPS
13 Non-GAAP Reconciliations – Adjusted Net Earnings & Adjusted Diluted EPS 13 *The income tax impact is calculated using the tax rate in effect for the relevant non-GAAP adjustment. **Amounts may not recalculate exactly due to rounding. ($ in millions) 2017 2016 2017 2016 Net Earnings 149$ 107$ 415$
Slide 14: Non-GAAP Reconciliation – Free Cash Flow
14 Non-GAAP Reconciliation – Free Cash Flow 14 ($ in millions) 2017 2016 2017 2016 Net cash provided by (used in) operating activities 96 254 380 477 Less: Capital expenditures (91) (60) (228) (145) Free cash flow 5 194 152 332 Three Months Ended September 30 Nine Months Ended September 30
Slide 15: Huntington Ingalls Industries
Huntington Ingalls Industries
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