Slide 1: FY 2021 Q1 Earnings Call
FY 2021 Q1 Earnings Call February 9, 2021
Slide 2: Agenda
Agenda TransDigm Overview and Highlights Nick Howley Executive Chairman Operating Performance, Market Review Kevin Stein and Outlook President and CEO Financial Results Mike Lisman CFO Q&A 1
Slide 3: Forward Looking Statements & Special Notice Regarding Pro Forma and Non-GAAP Information
Forward Looking Statements & Special Notice Regarding Pro Forma and Non‐GAAP Information 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 futur
Slide 4: TransDigm Overview
TransDigm Overview Distinguishing Characteristics Highly engineered aerospace components Significant aftermarket content Proprietary and sole source products High free cash flow Proprietary Revenues (1) Pro Forma Revenues (1) Pro Forma EBITDA As Defined (1) Non‐ Proprietary OEM Comm OEM 29%
Slide 5: 2021 Q1 Financial Performance by Markets – Pro Forma
2021 Q1 Financial Performance by Markets – Pro Forma Highlights Q1 Review – Pro Forma Revenues⁽¹⁾ Actual vs. 25% Biz Prior Year Q1 Jet/Heli Commercial OEM: 75% Com Commercial OEM: Down 40% Transport Q1 ’21 Commercial Transport Revenue Down 45% Q1 ’21 Business Jet/Helicopter Revenue Down 25% 15%
Slide 6: First Quarter 2021 Select Financial Results
First Quarter 2021 Select Financial Results ($ in millions, except per share amounts) Q1 FY Q1 FY 2021 2020 Revenue $1,108 $1,465 ‐24% Decrease Gross Profit $541 $801 • COVID‐19 restructuring costs 48.8% 54.7% SG&A $197 $201 • COVID‐19 restructuring costs • Higher non‐cash stock compensation expense
Slide 7: Capital Structure
Capital Structure Pro Forma Capital Structure ($ in millions) Actual Pro forma (1) 1/2/21 Adj. 1/2/21 Rate Cash $4,907 ($959) $3,948 $760mm revolver $200 – 200 L + 3.000% $350mm AR securitization facility 350 – 350 L + 1.350% First lien term loan E due 2025 2,193 – 2,193 L + 2.250% First lien term l
Slide 8: Debt Maturity Profile
Debt Maturity Profile Debt Maturity Profile – Pro Forma for January 2021 Re-Financing ($MM) $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2021 2022 2023 2024 2025 2026 2027 2028 2029 Secured Term Loans Secured Notes Sr Sub Notes Note: $350M AR Securitization renews annually in July Note
Slide 9: Appendix: Reconciliation of Income from Continuing Operations to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Income from Continuing Operations to EBITDA and EBITDA As Defined ($ in millions) Thirteen Week Periods Ended January 2, 2021 December 28, 2019 Income from continuing operations $ 50 $ 234 Adjustments: Depreciation and amortization expense 58 69 Interest expense, net 267
Slide 10: Appendix: Reconciliation of Reported EPS to Adjusted EPS
Appendix: Reconciliation of Reported EPS to Adjusted EPS ($ in millions, except per share amounts) Thirteen Week Periods Ended Reported Earnings Per Share January 2, 2021 December 28, 2019 Income from continuing operations $ 50 $ 234 Less: Net income attributable to noncontrolling interests ‐ (1) Ne
Slide 11: Appendix: Reconciliation of GAAP EPS to Adjusted EPS
Appendix: Reconciliation of GAAP EPS to Adjusted EPS Thirteen Week Periods Ended January 2, 2021 December 28, 2019 GAAP (loss) earnings per share from continuing operations $ (0.42) $ 0.83 Allocation of undistributed losses to participating securities 0.03 ‐ Adjustments to (loss) earnings per share:
Slide 12: Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined Thirteen Week Periods Ended ($ in millions) January 2, 2021 December 28, 2019 Net cash provided by operating activities $ 274 $ 433 Adjustments: Changes in assets and liabilities, net of effects fro