Woodward, Inc. · NASDAQ:WWD
Woodward — Q2 FY2020 Earnings Presentation
16 slides from Woodward's earnings presentation, May 4, 2020
Slide 1: Fiscal Year 2020 Second Quarter Results
Fiscal Year 2020 Second Quarter Results May 4, 2020
Slide 2: Today’s Agenda
Today’s Agenda Highlights Don Guzzardo Market Review Tom Gendron Financial Results & Outlook Bob Weber Q&A 2 | © WOODWARD, INC. PROPRIETARY
Slide 3: Cautionary Statement
Cautionary Statement Information in this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, including, but not limited to, statements regarding our position within our markets and ability t
Slide 4: Q2 Fiscal Year 2020 Consolidated Results
Q2 Fiscal Year 2020 Consolidated Results Woodward Sales (mil $) Net Earnings (mil $) 759 104 720 91 90 Q2 FY20 78 Reported Q2 FY19 Adjusted Q2 FY20 Q2 FY19 Free Cash Flow1 (mil $) Earnings Per Share (Fiscal Year-to-Date) 87 $1.61 Reported $1.41 $1.40 Reported 55 Adjusted $1.20 Adjusted 23 Q2 FY20 Q2
Slide 5: COVID-19 Actions
COVID-19 Actions Communicating daily, both internally and externally with suppliers and customers Proactively revising demand and supply plans in accordance with changing market conditions Took numerous cost cutting and cash preservation steps Implemented layoffs and furloughs Reduced company di
Slide 6: Aerospace
Aerospace Commercial aerospace Boeing 737 MAX grounding negatively affected both OEM and initial provisioning Passenger and cargo traffic decreased significantly near end of quarter due to COVID-19 In April, build rates declined as a result of plant closures and expected long-term impacts of C
Slide 7: Industrial
Industrial Power generation Gas turbine market continued to recover End-user upgrade initiatives increased On April 30th, we closed on the divestiture of our renewable power systems and related businesses Transportation COVID-19 related plant shutdowns in China negatively affected production
Slide 8: Aerospace Q2 Fiscal Year 2020 Results
Aerospace Q2 Fiscal Year 2020 Results Aerospace Sales (mil $) Segment net sales 483 474 737 MAX production halt and related decline in initial provisioning Q2 FY20 Q2 FY19 Segment earnings Benefited from elimination of annual bonus for 2020 Partially offset by lower sales volume Segment Earnin
Slide 9: Industrial Q2 Fiscal Year 2020 Results
Industrial Q2 Fiscal Year 2020 Results Industrial Sales (mil $) Segment Net Sales Q2 FY20 Ongoing weakness in oil and gas and lower natural gas truck sales 276 Q2 FY19 Partially offset by higher gas turbines and renewables 246 Industrial Segment Earnings Lower sales volume, partially offset by
Slide 10: Selected Financial Items
Selected Financial Items Quarter and Year-to-Date Comparatives Q2 FY 20 Q2 FY 19 YTD FY 20 YTD FY 19 Gross Margin * 28.1% 25.3% 26.9% 25.0% SG&A Expenses - % of Sales 8.0% 7.2% 8.3% 7.6% R&D Expenses - % of Sales 4.8% 5.8% 5.0% 5.9% Effective Tax Rate 14.8% 14.0% 14.3% 16.5% EBITDA1 (mils) $ 149 $ 1
Slide 11: Fiscal Year 2020 Outlook
Fiscal Year 2020 Outlook As announced in our April 6th press release, we have withdrawn our full-year 2020 guidance due to the unpredictable nature of the evolving COVID-19 pandemic and its unknown impact on our customers and suppliers. While current conditions have made accurate forecasting extreme
Slide 12: Appendix
W woopwarD Appendix
Slide 13: Non-U.S. GAAP Measures
Non-U.S. GAAP Measures Q2 FY 20 Q2 FY 19 Earnings Per Earnings Per Net Earnings Share Net Earnings Share (mils) (mils) (mils) (mils) Net Earnings $ 91.3 $ 1.41 $ 77.6 $ 1.20 Non-U.S. GAAP Adjustments Other charges, net of tax* 12.7 0.20 12.7 0.20 Total Non-U.S. GAAP adjustments 12.7 0.20 12.7 0.20 A
Slide 14: Non-U.S. GAAP Measures (cont.)
Non-U.S. GAAP Measures (cont.) Q2 FY 20 Q2 FY 19 YTD FY 20 YTD FY 19 (mils) (mils) (mils) (mils) Net Earnings $ 91.3 $ 77.6 $ 144.7 $ 126.7 Income Taxes 15.9 12.6 24.0 25.0 Interest Expense 8.8 11.5 17.8 23.4 Interest Income (0.5) (0.3) (1.0) (0.7) EBIT1 115.5 101.4 185.5 174.4 Non U.S. GAAP adjustm
Slide 15: Non-U.S. GAAP Measures (cont.)
Non-U.S. GAAP Measures (cont.) Q2 FY 20 Q2 FY 19 YTD FY 20 YTD FY 19 (mils) (mils) (mils) (mils) Net Earnings $ 91.3 $ 77.6 $ 144.7 $ 126.7 Income Taxes 15.9 12.6 24.0 25.0 Interest Expense 8.8 11.5 17.8 23.4 Interest Income (0.5) (0.3) (1.0) (0.7) 1 EBIT 115.5 101.4 185.5 174.4 Amortization of Inta
Slide 16: Explanation of Non-U.S. GAAP Measures
Explanation of Non-U.S. GAAP Measures 1Adjusted and Non-U.S. GAAP Financial Measures: Adjusted net earnings, adjusted earnings per share, adjusted Industrial segment earnings, adjusted EBIT and EBITDA, adjusted effective tax rate, and adjusted nonsegment expenses exclude, as applicable, (i) the gain