General Dynamics Corporation · NYSE:GD
General Dynamics — FY2019 Earnings Presentation
13 slides from General Dynamics's earnings presentation, Jan 29, 2020
Slide 1: Fourth-Quarter and Full-Year 2019 Highlights and 2020 Outlook
AEROSPACE COMBAT SYSTEMS INFORMATION TECHNOLOGY MISSION SYSTEMS MARINE SYSTEMS Fourth-Quarter and Full-Year 2019 Highlights and 2020 Outlook January 29, 2020 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains information about the company’s expectations of future performance, including future financial or operating performance. This information constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act
Slide 3: Financial Highlights
Financial Highlights Three Months Full Year ($ in millions, except EPS) 4Q19 4Q18 % Change 2019 2018 % Change Revenue $10,773 $10,378 3.8% $39,350 $36,193 8.7% Operating Earnings $1,328 $1,226 8.3% $4,648 $4,457 4.3% EBITDA* $1,528 $1,465 4.3% $5,491 $5,204 5.5% Earnings from Cont. Ops. $1,020 $909
Slide 4: Aerospace
Aerospace • Backlog up 17.4% vs. 2018, even with substantially higher deliveries – G700 launch and strong demand across the portfolio led to best order year in over a decade 2019 revenue up 15.9% to $9.8B; 4Q up 8.4% to $2.9B – Backlog increased to $13.3B, up $2.0B vs. 2018 • Delivered 147 aircraft
Slide 5: Combat Systems
Combat Systems • Full year revenue up 12.3% to $7.0B – Ramp up of U.S. Abrams and Mobile Protected Firepower – Began deliveries of AJAX vehicles to British Army 2019 revenue up 12.3% to $7B; 4Q up 13.1% to $2B • Solid backlog with diverse opportunities • All three business units expanded – Awarded $
Slide 6: Information Technology
Information Technology • Total Estimated Contract Value of $28.1B up 12.4% – Backlog of $9.1B up 14.7%, driven by FedCiv and Intel – 4Q orders up over 70% vs. 4Q18 2019 revenue up 1.9% to $8.4B • 2019 win rate of 73%; 91% recompete rate • Awarded $800M in 4Q to support several state health 2019 EBIT
Slide 7: Mission Systems
Mission Systems • 2019 book-to-bill of 1.0x on a 4.5% revenue increase – Awarded MUOS sustainment contract with a maximum value of $730M in Q4 for the Navy’s next-gen satellite 2019 revenue up 4.5% to $4.9B; communication system 4Q up 2.5% to $1.3B – Awarded $530M from the Army in 2019 for computing
Slide 8: Marine Systems
Marine Systems • Awarded $22.2B in 4Q for Virginia Block V 2019 revenue up 8% to $9.2B; – Largest shipbuilding contract in U.S. Navy 4Q up 11.7% to $2.6B history • Higher volumes at all three shipyards – Brings new capabilities to the submarine fleet • Virginia Block V and Columbia submarines led th
Slide 9: Financial Guidance
Financial Guidance 2019 Actual 2020 Guidance EPS* $11.98 $12.55 – 12.60 Operating Operating Revenue ($B) Revenue ($B) Margin Margin $9.8 ≈ $10.0 Aerospace 15.6% 15.7 – 15.8% 147 deliveries ≈150 deliveries Combat Systems $7.0 14.2% ≈ $7.3 ≈ 14.3% Information Technology $8.4 7.5% $8.4 – 8.5 ≈ 7.6% Mis
Slide 10: Appendix
Appendix GENERAL DYNAMICS 10
Slide 11: Non-GAAP Financial Measures – General Dynamics
Non-GAAP Financial Measures – General Dynamics $M * We believe earnings before interest, taxes, depreciation and amortization (EBITDA) is a useful measure for investors because it provides another measure of our profitability and our ability to service our debt. We calculate EBITDA by adding back in
Slide 12: Non-GAAP Financial Measures – Information Technology
Non-GAAP Financial Measures – Information Technology $M * We believe the Information Technology segment’s earnings before interest, taxes, depreciation and amortization (EBITDA) is a useful measure for investors because it provides another measure of the segment’s operating performance. We calculate
Slide 13: General Dynamics
GENERAL DYNAMICS