Twin Disc, Incorporated · NASDAQ:TWIN
Twin Disc — Investor Presentation (November 2010)
35 slides from Twin Disc's investor presentation, Nov 8, 2010
Slide 1: We Put Horsepower to Work
Twin Disc, Incorporated WE PUT HORSEPOWER TO WORK ™
Slide 2: Safe Harbor Statement
Twin Disc, Incorporated November 10, 2010 Safe Harbor Statement This presentation contains statements that are forward-looking within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management’s current expectations that are based on assum
Slide 3: Twin Disc At A Glance
Twin Disc, Incorporated November 10, 2010 Twin Disc At A Glance • Founded in 1918 • Headquartered in Racine, WI • ≈913 employees (FYE ‘10) • FY10 Revenues of $228M FY09 Revenues of $296M • We are a global company – Well-known customers around the world – Mfg Operations in the U.S., Italy, Belgium, S
Slide 4: FY 2010 Financial Highlights
Twin Disc, Incorporated November 10, 2010 FY 2010 Financial Highlights $ millions $ millions • Quarterly sequential sales & earnings improvement – Despite challenges, profitable for the full fiscal year • Key Markets – Mega Yacht and European markets remained soft throughout fiscal 2010 – ARFF, Mili
Slide 5: FY 2010 Financial Highlights: cash and debt
Twin Disc, Incorporated November 10, 2010 • Generated $35 million of cash from operating activities • Reduced debt by $19.6 million, or 39% – Cash also increased $5.8 million, or 44%, to $19.0 million • $25 million cost reduction and avoidance program fully implemented – announced in 2009’s 4 th Fis
Slide 6: Net Sales & Net Earnings (First Fiscal Quarter)
Twin Disc, Incorporated November 10, 2010 Net Sales & Net Earnings (First Fiscal Quarter) • Sales up 30% – Oil & gas markets strong – Experienced continued softness in mega yacht and European markets – Prior year: seasonal and temporary plant shutdowns impacted Q1 shipments – Asian markets continued
Slide 7: Marine & Propulsion Systems
Twin Disc, Incorporated November 10, 2010 Marine & Propulsion Systems • Pleasure Craft market continues soft worldwide – However, building share of market with new technology • Work Boat market steady – Europe soft – North America moderating – Asia-Pacific growing • Patrol Boat market experiencing g
Slide 8: Industrial markets showing modest growth
Twin Disc, Incorporated November 10, 2010 • Industrial markets showing modest growth – Agriculture, irrigation, recycling and construction • ARFF and Military holding steady – ARFF: Continue to increase market share with ‘pump & roll’ transmissions • Oil & Gas markets picking up – Orders increasing
Slide 9: International Sales
Twin Disc, Incorporated November 10, 2010 48% International Sales 65% International Sales
Slide 10: Managing Our Cost Structure
Twin Disc, Incorporated November 10, 2010 Managing Our Cost Structure CAPEX • Investing in core competencies • Spent over $64 million over past 6 yrs
Slide 11: Managing Our Cost Structure: Low Cost Locations
Twin Disc, Incorporated November 10, 2010 Low Cost Sourcing Offices Managing Our Cost Structure Lower Cost Corporate HQ/Mfg Mfg locations
Slide 12: What Differentiates Us?
Twin Disc, Incorporated November 10, 2010 What Differentiates Us? • Technology – Oil & Gas • 8500 Series – ARFF • “Pump & Roll” – Military • “Legacy” Contracts – Marine • Patented QuickShift® • Dynamic Positioning/DPII • Rolla CFD
Slide 13: What Differentiates Us?
Twin Disc, Incorporated November 10, 2010 What Differentiates Us? • 90+ Years of Proven Application Know-How • Niche Market Focus • Product/Market & Geographic Diversity • Core Manufacturing Capabilities Mfg location Co.-owned dist. 3 rd Party dist. Service dealers
Slide 14: Looking Ahead
Twin Disc, Incorporated Looking Ahead
Slide 15: Corporate Six Month Backlog
Twin Disc, Incorporated November 10, 2010 FY04 FY05 FY06 FY07 $ millions Corporate Six Month Backlog (Mfg Orders to be shipped in the next 6 months) FY08 FY09 FY11 FY10 +65%
Slide 16: Fiscal Year 2011 Outlook
Twin Disc, Incorporated November 10, 2010 Fiscal Year 2011 Outlook • Mega Yacht & Europe - weakness expected to continue • Industrial, ARFF & Military will remain stable, modest growth • Oil & Gas - experiencing strong growth in demand • Patrol Boat market expanding • Asian market continues at recor
Slide 17: We Put Horsepower to Work
Twin Disc, Incorporated WE PUT HORSEPOWER TO WORK ™
Slide 18: Appendices
Twin Disc, Incorporated Appendices
Slide 19: Corporate Profile - Market Diversity: Pleasure Craft
Twin Disc, Incorporated November 10, 2010 Appendix I Corporate Profile - Market Diversity Pleasure Craft Market: • Target Markets: High speed planing and displacement yachts from 50’ to 150’, diesel powered • Products: Transmissions, Surface Drives, Propellers, Steering/Thruster/Trim Systems, Water
Slide 20: Corporate Profile - Market Diversity: Work Boat
Twin Disc, Incorporated November 10, 2010 Appendix II Corporate Profile - Market Diversity Work Boat Market: • Target Markets: planing and displacement vessels from 30’ to 250’, diesel powered • Products: Transmissions, Propellers, MCD’s, Water Jets, Controls • Channels: Engine OEMs & dealers, boat
Slide 21: Corporate Profile - Market Diversity: Patrol Boat
Twin Disc, Incorporated November 10, 2010 Appendix III Corporate Profile - Market Diversity Patrol Boat Market: • Target Markets: military, patrol and coast guard vessels from 30’ to 90’, diesel powered • Products: Transmissions, Surface Drives, Propellers, Steering/Thruster/Trim Systems, Water Jets
Slide 22: Marine Transmissions, Propulsion & Boat Management Systems
Twin Disc, Incorporated November 10, 2010 Appendix IV QuickShift® Transmissions Electronic Controls Bow Thrusters Anchor Winches Gangways Trim Tabs, Stern Thrusters Power Steering Marine Transmissions, Propulsion & Boat Management Systems Corporate Profile - Market Diversity We have been very succes
Slide 23: Corporate Profile - Market Diversity: Industrial Products
Twin Disc, Incorporated November 10, 2010 Appendix V Corporate Profile - Market Diversity Industrial Products: • Target Market: Heavy duty industrial disconnect applications • Products: Mechanical & hydraulic clutches, PTOs & pump mount drives, 100 - 2,500 HP • Channels: Distribution & OEMs • Custom
Slide 24: Corporate Profile - Market Diversity: Industrial Transmissions
Twin Disc, Incorporated November 10, 2010 Appendix VI Corporate Profile - Market Diversity Industrial Transmissions: • Target Market: Off-highway and all-terrain specialty vehicles, diesel powered • Products: Powertrain components - 400 to 3,000 HP • Channel: OEM vehicle mfrs. • Customers: BAE, Rose
Slide 25: VII
Twin Disc, Incorporated November 10, 2010 Appendix VII $ millions % sales * See Appendix X for reconciliation of TTM figures to reported figures.
Slide 26: Non-GAAP Financial Disclosures
Twin Disc, Incorporated November 10, 2010 Appendix VIII Non-GAAP Financial Disclosures Non-GAAP Financial Disclosures Financial information excluding the impact of certain significant items in this presentation are not measures that are defined in U.S. Generally Accepted Accounting Principles (“GAAP
Slide 27: Reconciliation of Net Earnings to EBITDA
Twin Disc, Incorporated November 10, 2010 Appendix IX Reconciliation of Net Earnings to EBITDA * See Appendix X for reconciliation of TTM figures to reported figures.
Slide 28: Reconciliation of TTM Data to Reported Quarterly Figures
Twin Disc, Incorporated November 10, 2010 Appendix X Reconciliation of TTM Data to Reported Quarterly Figures
Slide 29: Fiscal Year Condensed Consolidated Statements of Operations
Twin Disc, Incorporated November 10, 2010 Appendix XI Fiscal Year Condensed Consolidated Statements of Operations
Slide 30: First Fiscal Qtr Condensed Consolidated Statements of Operations
Twin Disc, Incorporated November 10, 2010 Appendix XII 1 st Fiscal Qtr Condensed Consolidated Statements of Operations
Slide 31: Net Sales by Segment
Twin Disc, Incorporated November 10, 2010 Appendix XIII $317 $243 $332 $296 Net Sales by Segment $228
Slide 32: Net Earnings by Segment (before Corporate Expense)
Twin Disc, Incorporated November 10, 2010 Appendix XIV Net Earnings by Segment (before Corporate Expense)
Slide 33: Operating Cash Flows - Fiscal Year
Twin Disc, Incorporated November 10, 2010 Appendix XV $ millions % sales Operating Cash Flows - Fiscal Year
Slide 34: Express Joystick System in Action
Twin Disc, Incorporated November 10, 2010 Express Joystick System® in Action Go to http://www.twindisc.com/MarineProducts/EJS.html to see the new revolutionary Twin Disc Express Joystick System® in action.
Slide 35: We Put Horsepower to Work
Twin Disc, Incorporated WE PUT HORSEPOWER TO WORK ™