Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q2 2021 Earnings Presentation
18 slides from Huntington Ingalls Industries's earnings presentation, Aug 5, 2021
Slide 1: Q2 2021 Earnings Presentation
Q2 2021 Earnings Presentation August 5, 2021 Mike Petters President and Chief Executive Officer Chris Kastner Executive Vice President and Chief Operating Officer Tom Stiehle Executive Vice President and Chief Financial Officer
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation, other than statements of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause our ac
Slide 3: HII Q2 2021 Highlights
Backlog HII Q2 2021 Highlights ($B) $50 $46.1 $47.7 Revenues were ~$2.2 billion in the quarter Diluted EPS was $3.20 in the quarter; Pension adjusted diluted EPS 1 was $3.05 $40 Total backlog at the end of the quarter was $47.7 billion $30 Ingalls Shipbuilding $20 o Launched the first Flight
Slide 4: Acquisition of Alion Science & Technology
Acquisition of Alion Science & Technology Alion significantly expands HII’s ability to support U.S. Navy and DoD customers in their most critical national security missions C5ISR Enhanced high-end capabilities are complementary to existing HII work and provide critical mass in targeted markets
Slide 5: Upcoming Program Milestones
Upcoming Program Milestones1 2021 2022 o Ingalls o Ingalls Launch DDG 125 (Jack H. Lucas) Deliver DDG 121 (Frank E. Petersen Jr.) Complete sea trials DDG 121 Complete sea trials and deliver DDG 123 (Frank E. Petersen Jr.) (Lenah H. Sutcliffe Higbee) Complete sea trials LPD 28 Complet
Slide 6: HII Q2 2021 Consolidated Results
HII Q2 2021 Consolidated Results Consolidated Revenue Operating Income ($M) ($M) $2,500 $140 $128 $2,231 $2,027 $120 $2,000 $100 $1,500 $80 $57 $1,000 $60 $40 $500 $20 $0 $0 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Operating Margin 6.0% 5.7% Revenues improved YoY due primarily to growth at Newport News and
Slide 7: Capital Deployment
Capital Deployment Cash Flow Generation Shareholder Distributions ($M) ($M) Total $250 $66 $201 $70 $200 Total $60 $150 $126 $42 $20 $50 $96 $100 $40 $50 $23 $30 $0 $42 $46 $20 -$50 $10 -$100 ($75) ($73) $0 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Cash from Operations CAPEX Free Cash Flow 1 Dividends Share R
Slide 8: Ingalls Shipbuilding Q2 2021 Results
Ingalls Shipbuilding Q2 2021 Results Revenues Segment Operating Income1 ($M) ($M) $680 $670 $100 $660 $80 $640 $80 $622 $620 $60 $55 $600 $580 $40 $560 $540 $20 $520 $500 $0 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Segment Operating Margin1 Revenues improved YoY due primarily to growth on 14.0% the DDG pro
Slide 9: Newport News Shipbuilding Q2 2021 Results
Newport News Shipbuilding Q2 2021 Results Revenues Segment Operating Income1 ($M) ($M) $100 $1,500 $1,363 $76 $80 $1,122 $60 $1,000 $40 $20 $0 $500 -$20 -$40 -$60 $0 -$80 ($69) Q2 2020 Q2 2021 Q2 2020 Q2 2021 Segment Operating Margin1 8.0% Revenues improved YoY due to growth in submarine 5.6% 6.0%
Slide 10: Technical Solutions Q2 2021 Results
Technical Solutions Q2 2021 Results Revenues Segment Operating Income1 ($M) ($M) $350 $320 $14 $13 $300 $12 $250 $237 $10 $9 $200 $8 $150 $6 $100 $4 $50 $2 $0 $0 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Segment Operating Margin1 Revenues declined YoY due primarily to the divestiture of our oil and gas busi
Slide 11: Appendix
Appendix HUNTINGTON INGALLS INDUSTRIES PROPRIETARY
Slide 12: Non-GAAP Measures Definitions
Non-GAAP Measures Definitions We make reference to “segment operating income (loss),” “segment operating margin,” “ pension adjusted diluted earnings per share,” “shipbuilding revenue,” “shipbuilding operating margin,” “Technical Solutions EBITDA margin” and “free cash flow.” We internally manage ou
Slide 13: Non-GAAP Measures Definitions Cont’d
Non-GAAP Measures Definitions Cont’d Segment operating income (loss) is defined as operating income (loss) for the relevant segment(s) before the Operating FAS/CAS Adjustment and non-current state income taxes. Segment operating margin is defined as segment operating income (loss) as a percentage of
Slide 14: Non-GAAP Reconciliations – Segment Operating Income (Loss) & Segment Operating Margin
Non-GAAP Reconciliations – Segment Operating Income (Loss) & Segment Operating Margin Three Months Ended Six Months Ended June 30 June 30 ($ in millions) 2021 2020 2021 2020 Ingalls revenues 670 622 1,319 1,251 Newport News revenues 1,363 1,122 2,770 2,463 Technical Solutions revenues 237 320 496 63
Slide 15: Non-GAAP Reconciliations – Shipbuilding Revenues & Operating Margin
Non-GAAP Reconciliations – Shipbuilding Revenues & Operating Margin Three Months Ended Six Months Ended June 30 June 30 ($ in millions) 2021 2020 2021 2020 Sales and service revenues 2,231 2,027 4,509 4,290 Technical Solutions (237) (320) (496) (637) Intersegment eliminations 39 37 76 61 Shipbuildin
Slide 16: Non-GAAP Reconciliations – Pension Adjusted Diluted Earnings per Share
Non-GAAP Reconciliations – Pension Adjusted Diluted Earnings per Share Three Months Ended Six Months Ended June 30 June 30 ($ in millions, except per share amounts) 2021 2020 2021 2020 Adjusted Net Earnings Net earnings 129 53 277 225 (1) After-tax FAS/CAS adjustment (6) (73) (10) (147) Pension Adju
Slide 17: Non-GAAP Reconciliations – Free Cash Flow
Non-GAAP Reconciliations – Free Cash Flow Three Months Ended Six Months Ended June 30 June 30 ($ in millions) 2021 2020 2021 2020 Net cash provided by operating activities 96 201 139 269 Less capital expenditures: Capital expenditure additions (74) (79) (134) (150) Grant proceeds for capital expendi
Slide 18: Huntington Ingalls Industries Hard Stuff Done Right
18 HUNTINGTON INGALLS INDUSTRIES HARD STUFF DONE RIGHT
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