Twin Disc, Incorporated · NASDAQ:TWIN
Twin Disc — Q1 FY2009 Earnings Presentation
32 slides from Twin Disc's earnings presentation, Nov 12, 2008
Slide 1: Twin Disc, Incorporated
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Slide 2: Safe Harbor Statement
November 11, 2008 Twin Disc, Incorporated Safe Harbor Statement This presentation contains statements that are forward-looking within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management’s current expectations that are based on assum
Slide 3: Twin Disc At A Glance
November 11, 2008 Twin Disc, Incorporated Manufacturing Manufacturing location (# of facilities in each location) Company owned distribution/service location Purchasing/sourcing offices Twin Disc At A Glance • Founded in • Headquartered in Racine, WI • 1,000+ employees • FY08 Revenues of $332M • We
Slide 4: Corporate Profile - Market Diversity: Pleasure Craft Market
November 11, 2008 Twin Disc, Incorporated Corporate Profile - Market Diversity Pleasure Craft Market: • Target Markets: High speed planing and displacement yachts from 50’ to 150’, diesel powered • Products: Transmissions, Surface Drives, Propellers, Steering/Thruster/Trim Systems, Water Jets, Contr
Slide 5: Corporate Profile - Market Diversity: Work Boat Market
November 11, 2008 Twin Disc, Incorporated Corporate Profile - Market Diversity Work Boat Market: • Target Markets: planing and displacement vessels from 30’ to 250’, diesel powered • Products: Transmissions, Propellers, MCD’s, Water Jets, Controls • Channels: Engine OEMs & dealers, boat builders & d
Slide 6: Corporate Profile - Market Diversity: Patrol Boat Market
November 11, 2008 Twin Disc, Incorporated Corporate Profile - Market Diversity Patrol Boat Market: • Target Markets: military, patrol and coast guard vessels from 30’ to 90’, diesel powered • Products: Transmissions, Surface Drives, Propellers, Steering/Thruster/Trim Systems, Water Jets, Controls •
Slide 7: Marine Transmissions, Propulsion & Boat Management Systems
November 11, 2008 Twin Disc, Incorporated QuickShift® Transmissions Electronic Controls Bow Thrusters Anchor Winches Gangways Trim Tabs, Stern Thrusters Power Steering Marine Transmissions, Propulsion & Boat Management Systems Corporate Profile - Market Diversity
Slide 8: Corporate Profile - Market Diversity: Industrial Transmissions
November 11, 2008 Twin Disc, Incorporated Corporate Profile - Market Diversity Industrial Transmissions: • Target Market: Off-highway and all-terrain specialty vehicles, diesel powered • Products: Powertrain components - - 400 to 3,000 HP • Channel: OEM vehicle mfrs. • Customers: BAE, Oshkosh, Tatra
Slide 9: Corporate Profile - Market Diversity: Industrial Products
November 11, 2008 Twin Disc, Incorporated Corporate Profile - Market Diversity Industrial Products: • Target Market: Heavy duty industrial disconnect applications • Products: Mechanical & hydraulic clutches, PTOs & pump mount drives, 100 - 2,500 HP • Channels: Distribution & OEMs • Customers: Bandit
Slide 10: Corporate Profile - Geographic Diversity
November 11, 2008 Twin Disc, Incorporated 48% International Sales 61% International Sales USA Italy Rest of World Corporate Profile - Geographic Diversity
Slide 11: What Differentiates Us?
November 11, 2008 Twin Disc, Incorporated What Differentiates Us? • Technology – Land-Based • 8500 Series • “Pump & Roll” • “Legacy” Contracts • Electronic Control Systems • Global Distribution and Service Network • Product/Market & Geographic Diversity • Niche Market Focus • 90 Years of Proven Appl
Slide 12: Managing Our Cost Structure
November 11, 2008 Twin Disc, Incorporated Managing Our Cost Structure Investing in Core Competencies
Slide 13: Managing Our Cost Structure: Global Sourcing
November 11, 2008 Twin Disc, Incorporated Lower Cost Low Cost Sourcing Offices Managing Our Cost Structure Global Sourcing
Slide 14: FY 2008 Financial Highlights
November 11, 2008 Twin Disc, Incorporated FY 2008 Financial Highlights • Major Markets Remained Strong – Continued growth from mega-yacht and commercial marine markets – Strong demand for land based transmission products for the Airport Rescue and Fire Fighting (ARFF) and military markets – Experien
Slide 15: Net Sales & Net Earnings (Fiscal Year)
November 11, 2008 Twin Disc, Incorporated $ millions $ millions * See Appendix III for reconciliation of TTM (trailing 12 month) figures to reported figures. Net Sales & Net Earnings (Fiscal Year)
Slide 16: Net Sales & Net Earnings (First Fiscal Quarter)
November 11, 2008 Twin Disc, Incorporated $ millions $ millions Net Sales & Net Earnings (First Fiscal Quarter)
Slide 17: EBITDA
November 11, 2008 Twin Disc, Incorporated EBITDA (See Appendices I & II for note on non-GAAP Financial Disclosures and a reconciliation of net earnings to EBITDA) $ millions % sales * See Appendix III for reconciliation of TTM figures to reported figures.
Slide 18: Looking Ahead
Twin Disc, Incorporated Looking Ahead
Slide 19: Corporate Six Month Backlog
November 11, 2008 Twin Disc, Incorporated FY04 FY05 FY06 FY07 $ millions FY08 FY09 Corporate Six Month Backlog (Orders to be shipped in the next 6 months)
Slide 20: Fiscal Year 2009 Outlook
November 11, 2008 Twin Disc, Incorporated Fiscal Year 2009 Outlook • Cautiously optimistic • Key markets remain strong – Commercial marine and mega yacht, defense and airport firefighting and rescue markets continue to be strong • Seeing signs of improving in demand from customers in the industrial
Slide 21: Fiscal Year 2009 Outlook
November 11, 2008 Twin Disc, Incorporated Fiscal Year 2009 Outlook • Technology differentiation/new products • Opportunity for operating leverage continues – Increasing volume – Expanding global outsourcing – Investing in core competencies • Active Acquisition Program • Active stock buyback program
Slide 22: Twin Disc, Incorporated
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Slide 23: Appendices
Twin Disc, Incorporated Appendices
Slide 24: Non-GAAP Financial Disclosures
November 11, 2008 Twin Disc, Incorporated Non-GAAP Financial Disclosures Financial information excluding the impact of certain significant items in this presentation are not measures that are defined in U.S. Generally Accepted Accounting Principles (“GAAP”). These items are measures that management
Slide 25: Appendix II: Reconciliation of Net Earnings to EBITDA
November 11, 2008 Twin Disc, Incorporated * See Appendix III for reconciliation of TTM figures to reported figures. Appendix II Reconciliation of Net Earnings to EBITDA
Slide 26: Appendix III: Reconciliation of TTM Data to Reported Quarterly Figures
November 11, 2008 Twin Disc, Incorporated Appendix III Reconciliation of TTM Data to Reported Quarterly Figures
Slide 27: Appendix IV: Fiscal Year Condensed Consolidated Statements of Operations
November 11, 2008 Twin Disc, Incorporated Appendix IV Fiscal Year Condensed Consolidated Statements of Operations
Slide 28: Appendix V: First Fiscal Quarter Condensed Consolidated Statements of Operations
November 11, 2008 Twin Disc, Incorporated Appendix V 1 st Fiscal Quarter Condensed Consolidated Statements of Operations
Slide 29: Appendix VI: Net Sales by Segment
November 11, 2008 Twin Disc, Incorporated $243 $219 $186 $317 $332 Appendix VI Net Sales by Segment
Slide 30: Appendix VII: Net Earnings by Segment
November 11, 2008 Twin Disc, Incorporated Appendix VII Net Earnings by Segment (before Corporate Expense)
Slide 31: Appendix VIII: Operating Cash Flows
November 11, 2008 Twin Disc, Incorporated $ millions % sales Appendix VIII Operating Cash Flows
Slide 32: Twin Disc, Incorporated
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