Transdigm Group Inc. · NYSE:TDG
Transdigm — Q1 2019 Earnings Presentation
13 slides from Transdigm's earnings presentation, Feb 5, 2019
Slide 1: FY 2019 Q1 Earnings Call
FY 2019 Q1 Earnings Call February 5, 2019
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
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. This pro forma financial information gives effect to certain recently completed acquisitions. Such pro forma information is based on certain assumptions and adjustments a
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 Revenues (1) Pro Forma Revenues (1) Pro Forma EBITDA As Defined (1) Non- Proprietary OEM Defense Comm
Slide 6: 2019 Q1 Financial Performance by Markets – Pro Forma
2019 Q1 Financial Performance by Markets – Pro Forma Q1 Market Review – Pro Forma Revenues⁽¹⁾ Actual vs. Prior Year Q1 Commercial OEM: Up 13% Commercial Aftermarket: Up 6% Defense: Up 15% (1) Information is on a pro forma basis versus the prior year period and includes the full year impacts of acqui
Slide 7: Fiscal 2019 Outlook
Fiscal 2019 Outlook FY 2018 Pro Forma Sales Mix (1) Market FY 2019 Expected Growth 29% Commercial OEM Up Low to Mid-Single-Digit % 36% Commercial Aftermarket Up Mid to High-Single-Digit % 35% Defense Up Mid to High-Single-Digit % Assumptions Guidance Summary ($ in millions) Full year net interest
Slide 8: First Quarter 2019 Results
First Quarter 2019 Results ($ in millions, except per share amounts) Q1 FY 2019 Q1 FY 2018 Revenue $993.3 $848.0 17.1% Increase Dilutive impact from higher acquisition costs and dilutive acquisition margin mix ≈ 1.5% Gross Profit $564.1 $476.7 0.6% Margin Increase Margin % 56.8% 56.2% Strength of ou
Slide 9: Liquidity & Taxes
Liquidity & Taxes ($ in millions) Cash Pro Forma Capital Structure Q1 FY19 FY 18 12/29/18 9/30/18 Actual Pro Forma Net Cash Provided by ($ in millions) 12/29/18 12/29/18 (1) Rate Operating Activities $329.9 $1,022.2 $600mm revolver – – L + 3.000% Capital Expenditures ($23.8) ($73.3) $350mm AR securi
Slide 10: Reconciliation of GAAP to Adjusted EPS - Guidance
Reconciliation of GAAP to Adjusted EPS - Guidance Full Year Guidance Thirteen Week Periods Ended Mid-Point December 29, December 30, September 30, 2018 2017 2019 Earnings per share from continuing operations $ 3.05 $ 4.60 $ 15.10 Adjustments to earnings per share: Dividend equivalent payments 0.43 1
Slide 11: Appendix - Reconciliation of Net Income to EBITDA and EBITDA As Defined
Appendix - Reconciliation of Net Income to EBITDA and EBITDA As Defined ($ in thousands) Thirteen Week Periods Ended December 29, December 30, 2018 2017 Net income $ 196,042 $ 314,775 Less: Income from Discontinued Operations, net of tax (1) - 2,764 Income from Continuing Operations 196,042 312,011
Slide 12: Appendix - Reconciliation of Reported EPS to Adjusted EPS
Appendix - Reconciliation of Reported EPS to Adjusted EPS ($ in thousands, except per share amounts) Thirteen Week Periods Ended Reported Earnings Per Share December 29, 2018 December 30, 2017 Net income from continuing operations $ 196,042 $ 312,011 Less: dividends on participating securities (24,3
Slide 13: Appendix - Reconciliation of Net Cash Provided by Operating Activities to EBITDA
Appendix - Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined Thirteen Week Periods Ended ($ in thousands) December 29, 2018 December 30, 2017 Net cash provided by operating activities $ 329,888 $ 292,811 Adjustments: Changes in assets and liabilities, net of