Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q4 2014 Earnings Presentation
15 slides from Huntington Ingalls Industries's earnings presentation, Feb 19, 2015
Slide 1: Q4 2014 Earnings Presentation
Q4 2014 Earnings Presentation February 19, 2015 Mike Petters President and Chief Executive Officer Barb Niland Corporate Vice President, Business Management & Chief Financial Officer Exhibit 99.2
Slide 2: Safe Harbor
Safe Harbor 2 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 actual results
Slide 3: Highlights from Q4 and FY 2014
Highlights from Q4 and FY 2014 3 Revenues were $1.93 billion for the quarter and $6.96 billion for the year Diluted EPS was $1.05 for the quarter and $6.86 for the year Adjusted Diluted EPS* was $2.19 for the quarter and $7.14 for the year Strong segment operating performance: Ingalls oper
Slide 4: Q4 2014 Consolidated Results
Q4 2014 Consolidated Results 4 * Non-GAAP metric that excludes the impact of the hurricane insurance recoveries in 2013. See appendix for reconciliation. ** Non-GAAP metric that excludes the impacts of the hurricane insurance recoveries in 2013 and the non-cash goodwill impairment charge in 2014. Se
Slide 5: FY 2014 Consolidated Results
FY 2014 Consolidated Results 5 $6,820 $6,957 $6,817 $6,957 $6,500 $6,600 $6,700 $6,800 $6,900 $7,000 FY 2013 FY 2014 (S in m illi on s) Consolidated Revenues GAAP Adjusted* 7.5% 9.4% 6.8% 10.1% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% FY 2013 FY 2014 Operating Margin GAAP Adjusted** $512 $655 $465 $702
Slide 6: Ingalls Shipbuilding – Q4 2014 Results
2013 reflects the realignment of AMSEC and CMSD from Ingalls to Newport News * Non-GAAP metric that excludes the impact of hurricane insurance recoveries in 2013. See appendix for reconciliation. Ingalls Shipbuilding – Q4 2014 Results 6 Ingalls Q4 revenues declined YoY on deliveries of LHA-6; NSC-
Slide 7: Ingalls Shipbuilding – FY 2014 Results
2013 reflects the realignment of AMSEC and CMSD from Ingalls to Newport News. * Non-GAAP metric that excludes the impacts of hurricane insurance recoveries and the Gulfport closure in 2013. See appendix for reconciliation. Ingalls Shipbuilding – FY 2014 Results 7 Ingalls 2014 revenue declined due
Slide 8: Newport News Shipbuilding – Q4 and FY 2014 Results
Newport News Shipbuilding – Q4 and FY 2014 Results 8 Newport News revenues increased for the quarter and year on higher volumes on the VCS program and the acquisition of The S.M Stoller Corporation, now part of SN3. Segment operating income increased for the quarter and year due to performance i
Slide 9: 2015 Retirement Related Guidance
2015 Retirement Related Guidance 9 ($ in millions) 2015 2014 Pension Discount Rate 4.34% 5.27% Expected Return on Assets 7.50% 7.50% CAS Recovery in excess of cash contribution1,2 $140 $68 Net FAS/CAS Adjustment1 $111 $72 CAS1 $279 $227 FAS1 ($168) ($155) 1 Includes pension & other postretirement be
Slide 10: Appendix
U n sa ve d Docum e n t / 1 2 /2 9 /1 0 / 1 0 :0 2 Appendix
Slide 11: Reconciliations
Reconciliations 11 We make reference to “segment operating income,” “segment operating margin,” “adjusted sales and service revenues,” “adjusted segment operating income,” “adjusted segment operating margin,” “adjusted total operating income,” “adjusted operating margin,” “adjusted net earnings,” “a
Slide 12: Reconciliation – Segment Operating Income and Segment Operating Margin
Reconciliation – Segment Operating Income and Segment Operating Margin 12 $ in millions 2014 2013 2014 2013 Sales and Service Revenues Ingalls 608$ 734$ 2,286$ 2,441$ Newport News 1,263 1,205 4,536 4,382 Other 56 — 137 — Intersegment eliminations — (1) (2) (3) Total Sales and Service Revenues 1,927
Slide 13: Reconciliation – Adjusted Sales and Service Revenues; Adjusted Operating Income
Reconciliation – Adjusted Sales and Service Revenues; Adjusted Segment Operating Income & Margin; Adjusted Total Operating Income & Margin 13 $ in millions 2014 2013 2014 2013 Adjusted Sales and Service Revenues Ingalls 608$ 734$ 2,286$ 2,441$ Adjustment for hurricane insurance recoveries — (31) — 6
Slide 14: Reconciliation – Adjusted Net Earnings and Adjusted Diluted EPS
Reconciliation – Adjusted Net Earnings (Loss) and Adjusted Diluted EPS 14 (1) Tax effected at 35% federal statutory tax rate. (2) The goodwill impairment charge created a $10 million Federal tax credit $ in millions 2014 2013 2014 2013 Adjusted Net Earnings (Loss) Net Earnings (Loss) 52$ 91$ 338$ 26
Slide 15: Reconciliation – Free Cash Flow
Reconciliation – Free Cash Flow 15 ($ in millions) 2014 2013 2014 2013 Net cash provided by (used in) operating activities 402 292 716 236 Less: Capital expenditures (74) (54) (165) (139) Free cash flow 328 238 551 97 Three Months Ended Year Ended December 31 December 31
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