Loar Holdings Inc. · NYSE:LOAR
Loar — Q3 2024 Earnings Presentation
17 slides from Loar's earnings presentation, November 2024
Slide 1: Loar Holdings Inc. Q3 2024 Earnings Presentation
Loar Holdings Inc. Q3 2024 Earnings Presentation Proprietary and Confidential 1
Slide 2: Agenda
Agenda • Our Value Drivers, Our Portfolio, Today’s Speakers: and Our Products • Dirkson Charles – CEO and Executive Co-Chairman of the Board of Directors • Q3 Earnings Highlights • Brett Milgrim – Executive Co- Chairman of the Board of Directors • Full Year 2024 Outlook • Glenn D’Alessandro – CFO an
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 includes express or implied forward-looking statements. Forward-looking statements include all statements that are not historical facts including those that reflect o
Slide 4: Simple Approach to Driving Value…
Simple Approach to Driving Value… Value Drivers Net Sales $318 L $239 Launching New Products $183 $189 $165 $113 $94 $76 $39 $42 O $9 $23 Optimizing Productivity 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Adj. EBITDA $113 A Achieving Price Above Inflation $83 $63 $61 $51 $38 $32 R $
Slide 5: Our Portfolio
Our Portfolio Loar Group specializes in the design, manufacture, and sale of niche aerospace and defense components that are essential for today’s aircraft and aerospace and defense systems, across 250+ total aircraft platforms. Our business focuses on mission-critical, highly engineered solutions w
Slide 6: Our Disciplined Approach– Applied Avionics
Our Disciplined Approach– Applied Avionics Niche Markets Proprietary Significant Long-Standing Aerospace & and/or Strong Cross-Sell Content and/or Aftermarket Customer Defense Focus Market Opportunity Processes Exposure Relationships Positions Proprietary and Confidential 6
Slide 7: Our Products
Our Products Diverse Portfolio Offering With Over 15,000+ Products Offered Mission critical nature of Angle of Attack Flight Control 2 & 3 Point Seat Water Purification Waste Mgmt. products with high monetary Sensors / Systems Computers Lap-belt Airbags Belts Systems Systems Cockpit Door Barrier Win
Slide 8: Q3 2024 Results by End Market – Pro Forma
Q3 2024 Results by End Market – Pro Forma(1) Q3 2024 End Market Drivers Pro Forma(1) Net Sales Total Commercial OEM: Q3 2024 vs YTD Q3 2024 vs. • Increase demand for GA, business jets, and End Market Q3 2023 YTD Q3 2023 commercial aircraft Total Commercial +21% +20% Total Commercial Aftermarket: OEM
Slide 9: Q3 2024 Financial Results
Q3 2024 Financial Results Q3 Q3 $thousands 2024 2023 ∆ Net Sales 103,519 82,807 25.0% • Net sales up 16.5% organically Gross Profit 52,904 40,631 30.2% • Execution of strategic value drivers Margin 51.1% 49.1% • Operating Leverage • Increase in operating income Net Income 8,656 2,854 • Higher taxes
Slide 10: Continuing to Improving Margins
Continuing to Improving Margins Adjusted EBITDA Margin 38.0% Headwinds: 37.5% 37.5% Dilutive Acquisitions, 37.0% Public Company Costs 36.5% 36.0% 36.0% 35.5% 35.5% 35.0% 34.8% 34.5% Tailwinds Execution of 34.0% Value Drivers 33.5% 33.0% 2022 2023 2024E 2025E Proprietary and Confidential 10
Slide 11: Full Year 2024 Market Assumptions
Full Year 2024 Market Assumptions Previous Revised Issued 8/13/24 Issued 11/13/24 • Commercial OEM – Up Mid • Commercial OEM – Up High Double-Digits Double-Digits • Commercial Aftermarket – Up Mid • Commercial Aftermarket – Up Mid Double-Digits Double-Digits • Defense – Up Mid Double-Digits • Defens
Slide 12: Full Year 2024 Outlook – Revised
Full Year 2024 Outlook – Revised 2024 Outlook 2024 Assumptions Issued 11/13/24 Low High $millions except for share count & Earnings ~ $9 million down from Per Share Capital Expenditures ~$11 million Net Sales $390 $394 ~ $54 million up from Full Year Interest Expense ~$42 million Adjusted EBITDA $14
Slide 13: Full Year 2025 Outlook
Full Year 2025 Outlook Market Assumptions 2025 Outlook Low High $millions except for share count & Earnings Per Share • Commercial OEM – Up High Net Sales $470 $480 Single-Digits Adjusted EBITDA $176 $180 • Commercial Aftermarket – Up Adjusted EBITDA Margin ~37.5% High Single-Digits • Defense – Up H
Slide 14: Full Year 2025 Outlook – Assumptions
Full Year 2025 Outlook – Assumptions Full Year 2025 Outlook Capital Expenditures ~ $14 million Full Year Interest Expense ~ $60 million Full Year Effective Tax Rate ~ 30% Depreciation and Amortization ~ $51 million Non-Cash Stock-Based Compensation ~ $15 million Diluted Share Count ~ 93 million shar
Slide 15: Appendix – Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
Appendix – Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA (in thousands unless otherwise indicated) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Net income (loss) $ 8,656 $ 2,854 $ 18,546 $ (4,042) Adjustments: Interest expense, net 9,962 17
Slide 16: Appendix – Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA
Appendix – Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA (in thousands unless otherwise indicated) 2017(1) 12 Months October 2, 2017 Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended January 1, 2017 Year Ended Year Ended Year Ended Year Ended Year Ended Ended thro
Slide 17: Appendix – Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA
Appendix – Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA (1) For the period January 1, 2017 through October 1, 2017 (“Predecessor Period”), the Company is referred to as the “Predecessor.” For the period October 2, 2017 through December 31, 2017 (“Successor Period”), the Company