Slide 1: Fiscal 2019 First Quarter Earnings
FISCAL 2019 FIRST QUARTER EARNINGS HARRIS.COM | #HARRISCORP
Slide 2: Forward-looking statements
Forward-looking statements Statements in this presentation that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance on the safe harbor pro
Slide 3: 1Q19: Strong progress against strategic priorities
1Q19: Strong progress against strategic priorities • Revenue up 9% with strong growth across all segments Accelerate revenue growth 1 • Orders $2B...book-to-bill 1.3 and >1 in each segment across all 3 segments • Year-over-year funded backlog growth of ~14% Company margin • 31% EPS growth, highest g
Slide 4: Key highlights
Key highlights Communication Systems Electronic Systems Space and Intelligence Systems • Revenue up 16%...double-digit growth • Revenue up 9%...sixth consecutive • Revenue up 5%...double-digit growth in all three businesses quarter of revenue growth in classified offset by environmental – Tactical u
Slide 5: Strong 1Q19 financial results
Strong 1Q19 financial results ($million, except per share amounts) Revenue EBIT* and margin* Highest revenue growth in 8 years, Margin expansion of 40 bps growth across all three segments 300 1,542 269 12% 1,410 + 9% 19.5% 19.1% 1Q18 1Q19 1Q18 1Q19 EPS Cash flow Volume, operational efficiencies & LT
Slide 6: EPS bridges
EPS bridges 1Q19 EPS bridge FY19 EPS guidance bridge* $7.85 $1.78 ~ $0.05 $7.75 ~ $0.05 $0.24 + CS volume + Tax reform $0.18 + Tax planning $1.36 + Tactical, Avionics, Classified space and EW volume + Operational efficiencies + Program execution -- Environmental volume Investments (R&D and SG&A) 1Q1
Slide 7: FY19 guidance summary
FY19 guidance summary Total Harris By Segment Revenue Margin* Revenue Margin* CS up 9.0 – 10.0% 29.5 – 30.5% up 6.0 – 8.0% 19.3 – 19.7% + versus up 8 – 10% ES up 7.0 – 8.0% 18.0 – 19.0% EPS FCF $7.80 - $7.90 ≥ $1B SIS up 4.0 – 5.0% 17.0 – 18.0% + versus $7.65 - $7.85 *Represents earnings before inte
Slide 8: Appendix
Appendix
Slide 9: Other information
Other information ($million except noted) FY18 1Q19 FY19 Amortization of Exelis acquisition intangibles $101 $25 ~$101 CHQ costs $60 $17 $55 – 60 non-GAAP FAS Pension expense/(income)* $(120) $(30) ~$(120) Net capital expenditures $136 $31 ~$170 Net interest expense $167 $43 ~$163 prior Effective ta
Slide 10: FY17 & FY18 recast per ASC 606
FY17 & FY18 recast* per ASC 606 ($million) Preliminary recast (from July 31, 2018 earnings presentation) Final recast FY17 1Q18 2Q18 3Q18 4Q18 Total FY18 FY17 1Q18 2Q18 3Q18 4Q18 Total FY18 Revenue CS 1,755 406 492 480 526 1,904 1,754 406 492 479 527 1,904 ES 2,248 541 587 605 632 2,365 2,245 541 58
Slide 11: Supplemental information - tactical communications history
Supplemental information - tactical communications history ($million) YTD 1Q18 2Q18 3Q18 4Q18 1Q19 FY16 FY17 FY18 FY19 Orders 681 353 332 389 502 1,242 1,755 502 Sales 296 348 336 371 334 1,221 1,352 334 DoD 110 159 121 139 144 392 529 144 International 186 189 215 232 190 829 823 190 Funded Backlog