Slide 1: FY 2012 First Quarter Earnings Call
FY 2012 First Quarter Earnings Call February 7, 2012
Slide 2: Agenda
Agenda TransDigm Overview W. Nicholas Howley Chairman and CEO Highlights, Market Review, Operating W. Nicholas Howley Performance and Outlook Chairman and CEO Operations, New Business and Value Creation Raymond F. Laubenthal President and COO Financial Results Gregory Rufus Executive Vice Pr
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, which is summarized in the appendix. This pro forma financial information gives effect to certain recently completed acquisitions and divestitures. Such pro forma informa
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 Pro Forma Pro Forma EBITDA Revenues Revenues⁽¹⁾ As Defined (1) Based on Management estimates for the L
Slide 6: Financial Performance by Market Channel
Financial Performance by Market Channel Highlights⁽¹⁾ Market Review – Pro Forma Revenues⁽¹⁾ Commercial OEM vs. Prior Year Airbus & Boeing production rate increases Q1 proceeding Biz Jet OEM – revenue up 18% Commercial OEM: Up 20% Commercial Aftermarket: Commercial Revenues sequentially fla
Slide 7: Fiscal 2012 Outlook
Fiscal 2012 Outlook ⁽ ⁾ FY 2011 Pro forma FY 2012 Sales Mix ¹ Market Expected Growth⁽¹⁾ 31% Commercial OEM Up ≈ 15 % 42% Commercial Aftermarket Up ≈ 10 % 27% Defense Flat to Modestly Down Assumptions Guidance Summary ($ in millions) Low High Worldwide RPM growth 4 to 5% Revenues $ 1,470 $ 1,510
Slide 8: First Quarter 2012 Results
First Quarter 2012 Results ($ in millions) Q1 FY12 Q1 FY11 Revenue $352.5 $233.6 50.9% Increase ● Organic sales growth 18.4% Gross Profit $199.6 $127.1 2.2 Margin Point Increase Margin % 56.6% 54.4% ● Strength of our proprietary products and continued productivity ● Favorable one-time contract adjus
Slide 9: Liquidity & Taxes
Liquidity & Taxes ($ in millions) Cash FY 9/30/2011 12/31/2011 Net Cash Provided by Operating Activities $260.6 $67.7 Taxes Capital Expenditures ($18.0) ($4.7) FY12 Q1 ETR: 32.3% Free Cash Flow $242.6 $63.0 FY12 Full Year ETR: 34% to 35% Cash on the Balance Sheet $376.2 $359.9 Liquidity EBITDA A
Slide 10: Reconciliation of GAAP to Adjusted EPS
Reconciliation of GAAP to Adjusted EPS ($ in millions) Q1 FY12 Q1 FY11 Earnings (loss) from continuing operations $ 1.15 $ (0.19) Adjustments to diluted earnings per share: Refinancing costs - 0.87 Inclusion of the dividend equivalent payment 0.06 0.05 Non-cash compensation costs 0.05 0.02 Acquisiti
Slide 11: Appendix
Appendix 10
Slide 12: Reconciliation of EBITDA and EBITDA As Defined to Net Income
Reconciliation of EBITDA and EBITDA As Defined to Net Income Thirteen Week Periods Ended December 31, January 1, 2011 2011 Net income (loss) $ 65,105 $ (7,358) Less loss from discontinued operations - (205) Income (loss) from continuing operations 65,105 (7,153) Adjustments: Depreciation and amortiz
Slide 13: Reconciliation of Reported EPS to Adjusted EPS
Reconciliation of Reported EPS to Adjusted EPS Thirteen Week Periods Ended December 31, January 1, Reported Earnings (Loss) Per Share 2011 2011 Net income (loss) from continuing operations $ 65,105 $ (7,153) Less: dividends paid on participating securities (3,299) (2,811) 61,806 (9,964) Net loss fro
Slide 14: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined
Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined Thirteen Week Periods Ended December 31, January 1, 2011 2011 Net Cash Provided by Operating Activities $ 67,699 $ 62,148 Adjustments: Changes in assets and liabilities, net of effects from acquisitions of bu
Slide 15: FY 2012 First Quarter Earnings Call
FY 2012 First Quarter Earnings Call February 7, 2012