Oshkosh Corporation (Holding Company) · NYSE:OSK
Oshkosh Corporation (Holding Company) — Q4 2019 Earnings Presentation
21 slides from Oshkosh Corporation (Holding Company)'s earnings presentation, Oct 30, 2019
Slide 1: Oshkosh Corporation Fourth Quarter Fiscal 2019
Oshkosh Corporation Fourth Quarter Fiscal 2019 October 30, 2019 WILSON JONES – PRESIDENT AND CHIEF EXECUTIVE OFFICER JOHN PFEIFER - EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER DAVID SAGEHORN – EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER PATRICK DAVIDSON – SENIOR VICE PRESIDENT, INV
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains statements that the Company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements
Slide 3: Delivering a strong 4th quarter
Delivering a strong 4th quarter OSK Q4 Performance Double digit earnings growth +6.7% +20.6% Sales up in 3 segments, defense and fire & emergency each grew by more $2.20 $2.17 $2.06 than 20% $1.80 Named to Dow Jones Sustainability Global Index Strong results despite moderating access equipme
Slide 4: Driving strong performance in FY19
Driving strong performance in FY19 OSK FY19 Performance +8.8% +30.7% Strong execution and results in an $8.38 $8.31 $7.71 uncertain environment $6.36 Double-digit sales growth in fire & emergency and defense segments FY19 operating income margin >10% in 3 segments Strong capital allocation
Slide 5: Defense
Defense JLTV program continues to mature following Full Rate Production milestone earlier in FY19 Incorporating configuration changes into production Program timing and budget on track Significant interest in Oshkosh products at recent DSEI and AUSA tradeshows Showcasing Oshkosh’s tactical
Slide 6: Access Equipment
Access Equipment Strong finish to FY19 - full year record revenues exceeding $4B Higher North America and Asia Pacific sales Product adoption in Asia Pacific remains a strong market driver Expanding manufacturing footprint in China in response to expected continued strong growth in the regio
Slide 7: Fire & Emergency
Fire & Emergency FY19 performance set new segment records for sales and operating income ~1,100 basis point operating margin improvement since FY13 Domestic municipal demand, increased U.S. Air Force volume and timing of international sales drove FY19 sales Orders up 10% for full year Unce
Slide 8: Commercial
Commercial Strong finish to FY19 Increased RCV sales Operations back to normal Simplification focus regaining momentum after recovery from partial roof collapse Expect RCV and concrete mixer markets in FY20 to be similar to FY19 RCV market at or slightly above long term average Concret
Slide 9: Consolidated results
Consolidated results Dollars in millions, except per share amounts Fourth Quarter 2019 2018 Q4 comments Net Sales $ 2,195.7 $ 2,057.0 Sales impacted by: % Change 6.7% 4.8% + Higher sales in defense, fire & Adjusted Operating Income $ 203.1 $ 180.6* emergency and commercial segments % Change 12.5%
Slide 10: Oshkosh FY20 expectations
Oshkosh FY20 expectations • Revenues of $7.9 - $8.2 billion Segment information • Operating income of $690 to $765 million • EPS of $7.30 to $8.10 Access Fire & Measure Defense Commercial Equipment Emergency Additional expectations Corporate expenses of $150 - $155 million Tax rate of ~21.25% -
Slide 11: Contacts
Contacts: Patrick N. Davidson Senior Vice President, Investor Relations pdavidson@oshkoshcorp.com 920-966-5939 Jeffrey D. Watt Director, Investor Relations jwatt@oshkoshcorp.com 920-233-9406 Fourth Quarter 2019 Earnings Call October 30, 2019 11
Slide 12: Appendix: Access Equipment
Appendix: Access Equipment Dollars in millions Fourth Quarter 2019 2018 Q4 comments Net Sales $ 1,016.5 $ 1,060.6 Sales impacted by: % Change (4.2)% 27.2% − Lower EMEA volume Adjusted Operating Income $ 126.5 $ 128.2* Adjusted operating income* % Change (1.3)% 63.5% impacted by: − Lower sales vo
Slide 13: Appendix: Defense
Appendix: Defense Dollars in millions Fourth Quarter 2019 2018 Q4 comments Net Sales $ 570.2 $ 464.6 Sales impacted by: % Change 22.7% (22.2)% + Continued ramp up of JLTV production Adjusted Operating Income $ 50.5 $ 44.0* % Change 14.8% (40.7)% Adjusted operating income* impacted by: % Margin 8
Slide 14: Appendix: Fire & Emergency
Appendix: Fire & Emergency Dollars in millions Fourth Quarter 2019 2018 Q4 comments Net Sales $ 346.4 $ 283.7 Sales impacted by: % Change 22.1% 2.1% + Higher fire truck deliveries + Improved pricing Operating Income $ 49.3 $ 39.8 + Impact of ASC 606 % Change 23.9% 12.1% % Margin 14.2% 14.0% Oper
Slide 15: Appendix: Commercial
Appendix: Commercial Dollars in millions Fourth Quarter 2019 2018 Q4 comments Net Sales $ 266.0 $ 254.2 Sales impacted by: + Higher RCV volume % Change 4.6% (2.2)% Adjusted Operating Income $ 18.8 $ 14.1* Adjusted operating income* impacted by: % Change 33.3% 21.6% + Sales volume % Margin 7.1% 5
Slide 16: Adoption of ASC 606 Q4 and full year FY19 results
Adoption of ASC 606 Q4 and full year FY19 results Dollars in millions Fourth quarter FY19 results Without adoption Effect of change Full year Segment As reported of ASC 606 higher/(lower) FY19 impact Access Equipment • Sales $ 1,016.5 $ 1,016.4 $ 0.1 $ - • Operating income 126.5 126.6 (0.1) (0.3) •
Slide 17: Appendix: GAAP to Non-GAAP reconciliation
Appendix: GAAP to Non-GAAP reconciliation The table below presents a reconciliation of the Company’s presented GAAP measures to the most directly comparable non-GAAP measures (in millions): Three months ended September 30 2019 2018 • Access equipment segment operating income (GAAP) $ 126.5 $ 126.9 •
Slide 18: Appendix: GAAP to Non-GAAP reconciliation
Appendix: GAAP to Non-GAAP reconciliation The table below presents a reconciliation of the Company’s presented GAAP measures to the most directly comparable non-GAAP measures (in millions, except per share amounts): Three months ended September 30 2019 2018 • Consolidated operating income (GAAP) $ 2
Slide 19: Appendix: GAAP to Non-GAAP reconciliation
Appendix: GAAP to Non-GAAP reconciliation The table below presents a reconciliation of the Company’s presented GAAP measures to the most directly comparable non-GAAP measures (in millions, except per share amounts): Fiscal Year ended September 30, 2019 2018 2017 2016 • Earnings per share-diluted (GA
Slide 20: Appendix: GAAP to Non-GAAP reconciliation
Appendix: GAAP to Non-GAAP reconciliation The table below presents a reconciliation of the Company’s presented GAAP measures to the most directly comparable non-GAAP measures (in millions): Fiscal year ended FY20 September 30, 2019 expectations • Net cash flows provided by operating activities $ 589
Slide 21: Appendix: Commonly used acronyms
Appendix: Commonly used acronyms ARFF Aircraft Rescue and Firefighting LRIP Low Rate Initial Production AWP Aerial Work Platform LVSR Logistic Vehicle System Replacement AMPS Aftermarket Parts & Service M-ATV MRAP All-Terrain Vehicle ASC Accounting Standards Codification MRAP Mine Resistant Ambush P