Slide 1: FY 2024 Q3 Earnings Call
FY 2024 Q3 Earnings Call August 6, 2024
Slide 2: Agenda
Agenda TransDigm Overview, Highlights and Outlook Kevin Stein President and CEO Market Review Joel Reiss Co‐COO Operating Performance and Financial Results Sarah Wynne CFO Q&A 1
Slide 3: Forward Looking Statements & Special Notice Regarding Pro Forma and Non-GAAP Information
Forward Looking Statements & Special Notice Regarding Pro Forma and Non‐GAAP Information 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 futur
Slide 4: TransDigm Overview
TransDigm Overview Distinguishing Characteristics Highly engineered aerospace components Significant aftermarket content Proprietary products High free cash flow Proprietary Revenues (1) Pro Forma Revenues (1) Pro Forma EBITDA As Defined (1) Non‐ Comm OEM Proprietary 27% OEM Defense 38% Prop
Slide 5: 2024 Q3 Financial Performance by Markets – Pro Forma
2024 Q3 Financial Performance by Markets – Pro Forma Highlights Q3 Review – Pro Forma Revenues⁽¹⁾ 30% Biz Commercial OEM: Jet/Heli Actual vs. Prior Year Q3 ’24 Commercial Transport Revenue Up 26% Q3 YTD 70% Com Q3 ’24 Business Jet/Helicopter Revenue Up 18% Transport Strong Bookings Continue to
Slide 6: Third Quarter 2024 Select Financial Results
Third Quarter 2024 Select Financial Results ($ in millions, except per share amounts) Q3 FY Q3 FY 2024 2023 Revenue $2,046 $1,744 17% Increase Gross Profit $1,220 $1,029 • Application of our value‐driven operating strategy 59.6% 59.0% 0.6% • Fixed overhead spread over higher production volumes SG&A
Slide 7: Fiscal 2024 Outlook
Fiscal 2024 Outlook Market Growth Assumptions FY 2023 Pro Forma Revenue Mix (1) Market FY 2024 Expected Growth 27% Commercial OEM Around 20% 35% Commercial Aftermarket Mid-Teens % Range 38% Defense High-Teens % Range Guidance Summary ($ in millions, except per share amounts) FY 24 Guidance FY 24 Gui
Slide 8: Fiscal 2024 Select Financial Assumptions
Fiscal 2024 Select Financial Assumptions Select Financial Assumptions for Fiscal 2024 Prior Assumptions (Issued May 2024) Updated Assumptions Capital Expenditures $185 to $215 million No change Full Year Net Interest Expense ≈ $1.32 billion (includes $110 million of ≈ $1.29 billion (includes $150 mi
Slide 9: Reconciliation of Fiscal 2024 Outlook
Reconciliation of Fiscal 2024 Outlook ($ in millions, except per share amounts) Guidance Midpoint Net income $ 1,655 Adjustments: Depreciation and amortization expense 302 Includes approx. $10m of backlog amortization Interest expense - net 1,290 Income tax provision 552 EBITDA 3,799 Adjustments: Ac
Slide 10: Reconciliation of GAAP EPS to Adjusted EPS - Guidance
Reconciliation of GAAP EPS to Adjusted EPS ‐ Guidance Full Year Guidance Thirteen Week Periods Ended Thirty‐Nine Week Periods Ended Mid‐Point June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 September 30, 2024 GAAP earnings per share from continuing operations $ 7.96 $ 6.14 $ 19.81 $ 14.80 $ 26
Slide 11: Capital Structure
Capital Structure Capital Structure ($ in millions) Actual 6/29/24 Rate Cash $3,360 $910mm revolver – S + 2.250% (1) $450mm AR securitization facility 450 S + 1.600% First lien term loan I due 2028 1,876 S + 2.750% First lien term loan J due 2031 3,641 S + 2.500% First lien term loan K due 2030 1,70
Slide 12: Interest Rate Sensitivity
Interest Rate Sensitivity • Interest rates on TDG’s $22Bn of gross Debt is ~ 75% hedged/fixed rate through fiscal year 2027 • Achieved via a combination of interest rate caps, swaps and collars • Significantly reduces near‐term exposure to any variable rate increases $ in millions Current FY 24 Assu
Slide 13: Debt Maturity Profile
Debt Maturity Profile Debt Maturity Profile ($MM) $8,000 Secured Term Loans Secured Notes Sr Sub Notes $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Calendar Year 2024 2025 2026 2027 2028 2029 2030 2031 2032 Note 1: $910M Revolver matures in February 2029 Note 2: $650M AR Securitization renews
Slide 14: Appendix: Reconciliation of Net Income to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Net Income to EBITDA and EBITDA As Defined ($ in millions) Thirteen Week Periods Ended Thirty‐Nine Week Periods Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Net Income $ 461 $ 352 $ 1,248 $ 885 Adjustments: Depreciation and amortization expense 77 70 219 19
Slide 15: Appendix: Reconciliation of Reported EPS to Adjusted EPS
Appendix: Reconciliation of Reported EPS to Adjusted EPS ($ in millions, except per share amounts) Thirteen Week Periods Ended Thirty‐Nine Week Periods Ended Reported Earnings Per Share June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Net income $ 461 $ 352 $ 1,248 $ 885 Less: Net income attrib
Slide 16: Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined ($ in millions) Thirty‐Nine Week Periods Ended June 29, 2024 July 1, 2023 Net cash provided by operating activities $ 1,473 $ 913 Adjustments: Changes in assets and liabilities, net of effects from