Transdigm Group Inc. · NYSE:TDG
Transdigm — Q3 2012 Earnings Presentation
15 slides from Transdigm's earnings presentation, Aug 7, 2012
Slide 1: FY 2012 Third Quarter Earnings Call
FY 2012 Third Quarter Earnings Call August 7, 2012
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, which is summarized in the appendix. This pro forma financial information gives effect to certain recently completed acquisitions and divestitures. Such pro forma informa
Slide 5: TransDigm Overview
TransDigm Overview DISTINGUISHING CHARACTERISTICS Highly engineered aerospace components Significant aftermarket content Proprietary and sole source products High free cash flow Proprietary Pro Forma Pro Forma EBITDA Revenues Revenues⁽¹⁾ As Defined Def Aftmkt 14% Def OEM 11% Comm Aftmkt 46%
Slide 6: Financial Performance by Market Channel
Financial Performance by Market Channel Highlights⁽¹⁾ Market Review – Pro Forma Revenues⁽¹⁾ Commercial OEM Actual vs. Prior Year Airbus & Boeing production rate increases 2012 Q3 2012 YTD proceeding 2012 YTD results include ~ $11M of Commercial retroactive contract adjustments OEM: Up 16% Up 2
Slide 7: Fiscal 2012 Outlook
Fiscal 2012 Outlook FY 2011 Pro forma FY 2012 Sales Mix Market Expected Growth⁽¹⁾ 29% Commercial OEM Up Hi Teen % 46% Commercial Aftermarket Up 8 - 10 % 25% Defense Modestly Up Assumptions Guidance Summary ($ in millions) Low High Worldwide RPM growth 4 ½ % Revenues $ 1,683 $ 1,698 Softening in
Slide 8: Third Quarter 2012 Results
Third Quarter 2012 Results Q3 FY12 Q3 FY11 ($ in millions) Revenue $461.7 $325.2 42.0% Increase ● Organic sales growth 10% Gross Profit $253.3 $183.1 1.4 Margin Point Decrease Margin % 54.9% 56.3% ● Dilutive acquisition mix of ~ 2 margin points ● Core business margin expansion ● Unfavorable OEM vs.
Slide 9: Liquidity & Taxes
Liquidity & Taxes ($ in millions) Cash FY 9/30/2011 3/31/2012 Net Cash Provided by Operating Activities $260.6 $257.8 Taxes Capital Expenditures ($18.0) ($16.2) FY12 Q3 YTD ETR: 32.6% Free Cash Flow $242.6 $241.6 FY12 Full Year ETR: 33% to 34% Cash on the Balance Sheet $376.2 $302.7 Liquidity EB
Slide 10: Reconciliation of GAAP to Adjusted EPS
Reconciliation of GAAP to Adjusted EPS ($ in millions) Full Year Thirteen Week Periods Thirty-Nine Week Periods Guidance Ended Ended Mid-Point June 30, July 2, June 30, July 2, September 30, 2012 2011 2012 2011 2012 Earnings per share from continuing operations $ 1.68 $ 1.10 $ 4.34 $ 1.60 $ 5.93 Adj
Slide 11: Appendix
Appendix 10
Slide 12: Reconciliation of Net Income to EBITDA and EBITDA As Defined
Reconciliation of Net Income to EBITDA and EBITDA As Defined Thirte e n We e k Thirty-Nine We e k Pe riods Ende d Pe riods Ende d June 30, July 2, June 30, July 2, 2012 2011 2012 2011 Net income $ 90,446 $ 56,280 $ 237,103 $ 104,739 Less income (loss) from discontinued operations - (2,088) - 16,827
Slide 13: Reconciliation of Reported EPS to Adjusted EPS
Reconciliation of Reported EPS to Adjusted EPS Thirteen Week Thirty-Nine Week Periods Ended Periods Ended June 30, July 2, June 30, July 2, Reported Earnings Per Share 2012 2011 2012 2011 Net income from continuing operations $ 90,446 $ 58,368 $ 237,103 $ 87,912 Less: dividends paid on participating
Slide 14: Reconciliation of Net Cash Provided by Operating Activities to EBITDA
Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined Thirty-Nine Week Periods Ended June 30, 2012 July 2, 2011 Net Cash Provided by Operating Activities $ 257,823 $ 143,043 Adjustments: Changes in assets and liabilities, net of effects from acquisitions of busi
Slide 15: FY 2012 Third Quarter Earnings Call
FY 2012 Third Quarter Earnings Call August 7, 2012