Woodward, Inc. · NASDAQ:WWD
Woodward — Q4 FY2009 Earnings Presentation
19 slides from Woodward's earnings presentation, Nov 18, 2009
Slide 1: FY 2009 Fourth Quarter Results
FY 2009 Fourth Quarter Results November 18, 2009 CONTROLLING the power of ENERGY TM
Slide 2: Today's Agenda
Today’s Agenda • Highlights & Markets Review Tom Gendron • Financial Results and Outlook Bob Weber • Q&A (2)
Slide 3: Cautionary Statement
Cautionary Statement Information in this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, including, but not limited to, statements regarding future sales, earnings, liquidity, relative
Slide 4: Q4 FY2009 Highlights
Q4 FY2009 Highlights • Sales up 4 percent, organic sales down 27 percent • Reported earnings of $0.34 per diluted share • Free cash flow of $92 million for Q4, $190 million for full year Debt reduction of $121 million during quarter Leverage reduced to 2.3 times EBITDA* • Shortly after quarter e
Slide 5: Business Highlights: Aerospace and Defense
Business Highlights • Aerospace and Defense Aftermarket 9 Favorable platform exposure on installed base OEM 9 Depressed business jet and regional markets 9 Anticipate pressure on the commercial market 9 No significant launch impacts 9 Some signs of increased global air traffic and easing of fina
Slide 6: Business Highlights (cont'd)
Business Highlights (cont’d) • Industrial Turbine Outperforming the market Potential for near-term decline • Reciprocating Engines Efficiency and emissions focused At or near low point in cycle 9 Small Industrial 9 Mining 9 Power Gen (6)
Slide 7: Business Highlights (cont'd): Electrical Power
Business Highlights (cont’d) • Electrical Power Wind 9 Share growth in flat market – New customers and geographic expansion Generation & Distribution 9 2009 challenging year 9 Signs of recovery (7)
Slide 8: Preparing for Economic Cycles
Preparing for Economic Cycles • 2009 – significant cost reduction initiatives ~$25 million in 2009 ~$50 million full-year expected savings in 2010 • 2010 Focus Fundamentals – quality and on-time delivery Market share gain through innovative solutions and R&D investment Cash flow – debt red
Slide 9: Q4 Consolidated Results
Q4 Consolidated Results Change From Q4 FY 09 Q4 FY 08 Q4 FY 08 Net Sales (mils) $ 364.5 $ 350.5 4% Operating Earnings (mils) 42.1 50.9 -17% Operating Margins 11.5% 14.5% Net Earnings (mils) 23.8 34.4 -31% Earnings Per Share (diluted) 0.34 0.50 -32% (9)
Slide 10: 2009 Consolidated Results
2009 Consolidated Results Change From FY 09 FY 08 FY 08 Net Sales (mils) $ 1,430.1 $ 1,258.2 14% Operating Earnings (mils) 154.9 183.6 -16% Operating Margins 10.8% 14.6% Net Earnings (mils) 94.4 121.9 -23% Earnings Per Share (diluted) 1.37 1.75 -22% (10)
Slide 11: Turbine Systems Q4 Results
Turbine Systems Q4 Results Change From Q4 FY 09 Q4 FY 08 Q4 FY 08 Segment Net Sales (mils) $ 148.4 $ 175.2 -15% Segment Earnings (mils) 32.0 32.6 -2% Segment Margins 21.6% 18.6% • Revenues Stable aftermarket Commercial OEM / business jet markets down Industrial turbine down Very strong Q4 FY
Slide 12: Airframe Systems Q4 Results
Airframe Systems Q4 Results Q4 FY 09 Segment Net Sales (mils) $ 110.4 Segment Earnings (mils) 12.0 Segment Margins 10.9% • Revenues Business jet, commercial softness Defense remains steady • Earnings Increased cost reduction initiatives and synergies Intangible amortization of $6.3 million r
Slide 13: Electrical Power Systems Q4 Results
Electrical Power Systems Q4 Results From Q4 FY 09 Q4 FY 08 Q4 FY 08 Segment Net Sales (mils) $ 53.7 $ 89.7 -40% Segment Earnings (mils) 5.1 14.8 -66% Segment Margins 9.5% 16.5% • Revenues Wind turbine converter volume down on lower orders and deferrals Declines in other power generation products
Slide 14: Engine Systems Q4 Results
Engine Systems Q4 Results Change From Q4 FY 09 Q4 FY 08 Q4 FY 08 Segments Net Sales (mils) $ 73.8 $ 120.0 -39% Segment Earnings (mils) 2.1 10.5 -80% Segment Margins 2.8% 8.8% • Revenues Broad decline across transportation and power generation Unfavorable foreign exchange rate effects of approxim
Slide 15: Selected Financial Items – Q4
Selected Financial Items – Q4 Q4 FY 09 Q4 FY 08 Gross Margin * 28.1% 28.7% SG&A Expenses - % of Sales 9.3% 8.4% Research and Development (mils) $ 20 $ 20 Capital Expenditures (mils) $ 11 $ 13 Tax Expense - % of EBT 27.4% 32.1% Ratio of Debt-to-Debt-Plus-Equity 44.7 7.2 EBITDA ** (mils) $ 60 $ 59 Fre
Slide 16: Fiscal 2010 Outlook
Fiscal 2010 Outlook • Revenue $1.4 to $1.5 billion • Earnings per Diluted Share $1.40 to 1.60 (16)
Slide 17: Appendix
Appendix TM
Slide 18: Q4 EBITDA, Free Cash Flow & Leverage Reconciliation
Q4 EBITDA, Free Cash Flow & Leverage Reconciliation Q4 FY 09 Q4 FY 08 Q4 FY 09 Q4 FY 08 (mils) (mils) (mils) (mils) (Unaudited) (Unaudited) Net Earnings $ 23.8 $ 34.4 Cash From Operations $ 103.5 $ 40.0 Income Taxes 8.9 16.3 Capital Expenditures (11.0) (13.0) Interest Expense 9.5 0.9 Free Cash Flow
Slide 19: Woodward
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