Mercury Systems Inc · NASDAQ:MRCY

Mercury Systems — Q4 FY2022 Earnings Presentation

17 slides from Mercury Systems's earnings presentation, Aug 2, 2022

  1. Slide 1: Fourth Quarter and Fiscal Year 2022 Financial Results

    © Mercury Systems, Inc. FOURTH QUARTER AND FISCAL YEAR 2022 FINANCIAL RESULTS Mark Aslett President and CEO Michael Ruppert Executive Vice President and CFO August 2, 2022, 5:00 pm ET Webcast login at www.mrcy.com/investor Webcast replay available by 7:00 p.m. ET August 2, 2022

  2. Slide 2: Forward-looking safe harbor statement

    © Mercury Systems, Inc.2 Does not contain Technical Data. //Mercury Proprietary/No Tech Data// Forward-looking safe harbor statement This presentation contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relatin

  3. Slide 3: Delivered strong Q4 and fiscal 2022 results

    © Mercury Systems, Inc.3 Does not contain Technical Data. //Mercury Proprietary/No Tech Data// Delivered strong Q4 and fiscal 2022 results  Record Q4 bookings, backlog and revenue  New business activity remains high with $680M in design win LTV in Q4, $1.6B in FY22  Positive book-to-bill, record

  4. Slide 4: FY23 and 5-year overview

    © Mercury Systems, Inc.4 Does not contain Technical Data. //Mercury Proprietary/No Tech Data// FY23 and 5-year overview  Demand environment is strong and getting stronger, exiting with 1.14 book-to-bill, record backlog  Expect shift to tailwinds as defense spending grows and supply chains improve

  5. Slide 5: FY23 business outlook

    © Mercury Systems, Inc.5 Does not contain Technical Data. //Mercury Proprietary/No Tech Data// FY23 business outlook  Forecast double-digit bookings growth, higher backlog, positive book-to-bill for FY23  Strong support for increased defense spending; expect budget delays due to mid-term elections

  6. Slide 6: 1MPACT: a journey to achieve full growth and adj. EBITDA potential

    © Mercury Systems, Inc.6 Does not contain Technical Data. //Mercury Proprietary/No Tech Data// 1MPACT: a journey to achieve full growth and adj. EBITDA potential  Began journey ~12 months ago with goal of amplifying value at scale over time  Expect to generate $30M-$50M of incremental adj. EBITDA

  7. Slide 7: Q4 FY22 vs. Q4 FY21

    © Mercury Systems, Inc.7 Does not contain Technical Data. //Mercury Proprietary/No Tech Data// Q4 FY22 vs. Q4 FY21 In $ millions, except percentage and per share data Q4 FY21(3) Q4 FY22(3) CHANGE Bookings Book-to-Bill $260.2 1.04 $331.5 1.14 27% Backlog 12-Month Backlog $909.6 530.0 $1,037.7 646.7 1

  8. Slide 8: FY22 vs. FY21

    © Mercury Systems, Inc.8 Does not contain Technical Data. //Mercury Proprietary/No Tech Data// FY22 vs. FY21 Notes (1) Organic revenue represents total company revenue excluding net revenue from acquisitions for the first four full quarters since the entities’ acquisition date (which excludes any in

  9. Slide 9: Balance sheet

    © Mercury Systems, Inc.9 Does not contain Technical Data. //Mercury Proprietary/No Tech Data// Balance sheet As of (In $ millions)(1) 7/2/21 10/1/21 12/31/21 4/1/22 7/1/22 ASSETS Cash & cash equivalents $113.8 $95.8 $105.2 $91.7 $65.7 Accounts receivable, net 291.7 301.2 320.1 367.1 447.9 Inventory,

  10. Slide 10: Cash flow summary

    © Mercury Systems, Inc.10 Does not contain Technical Data. //Mercury Proprietary/No Tech Data// Cash flow summary For the Fiscal Quarters Ended (In $ millions)(1) 7/2/21 10/1/21 12/31/21 4/1/22 7/1/22 Net Income (Loss) $17.9 ($7.1) ($2.6) $4.1 $16.9 Depreciation and amortization 20.8 21.5 24.1 24.5

  11. Slide 11: FY23 annual guidance

    © Mercury Systems, Inc.11 Does not contain Technical Data. //Mercury Proprietary/No Tech Data// FY23 annual guidance In $ millions, except percentage and per share data FY22(1) FY23(2)(5) CHANGE Revenue $988.2 $1,000.0 - $1,050.0 1% - 6% GAAP Net Income $11.3 $15.0 - $27.9 33% - 147% GAAP EPS $0.20

  12. Slide 12: Q1 FY23 guidance

    © Mercury Systems, Inc.12 Does not contain Technical Data. //Mercury Proprietary/No Tech Data// Q1 FY23 guidance In $ millions, except percentage and per share data Q1 FY22(1) Q1 FY23(2)(5) CHANGE Revenue $225.0 $215.0 - $225.0 (4%) - 0% GAAP Net Loss ($7.1) ($18.2) - ($15.6) 155% - 118% GAAP Loss P

  13. Slide 13: Summary

    © Mercury Systems, Inc.13 Does not contain Technical Data. //Mercury Proprietary/No Tech Data// Summary  Expect industry challenges to continue at least through end of FY23  Demand environment becoming a tailwind despite near-term timing and supply headwinds  Entering FY23 with record backlog, st

  14. Slide 14: Appendix

    14 APPENDIX

  15. Slide 15: Adjusted EPS reconciliation

    © Mercury Systems, Inc.15 Does not contain Technical Data. //Mercury Proprietary/No Tech Data// Adjusted EPS reconciliation Notes (1) Per share information is presented on a fully diluted basis. (2) Rounded amounts used. (3) Impact to income taxes is calculated by recasting income before income taxe

  16. Slide 16: Adjusted EBITDA reconciliation

    © Mercury Systems, Inc.16 Does not contain Technical Data. //Mercury Proprietary/No Tech Data// Adjusted EBITDA reconciliation Notes (1) Rounded amounts used. (2) All references in this presentation to the fourth quarter of fiscal 2021 and full fiscal 2021 are to the quarter and the 52-week period e

  17. Slide 17: Free cash flow and organic revenue reconciliation

    © Mercury Systems, Inc.17 Does not contain Technical Data. //Mercury Proprietary/No Tech Data// Free cash flow reconciliation Organic revenue reconciliation Notes (1) Organic revenue represents total company revenue excluding net revenue from acquisitions for the first four full quarters since the e

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