L3harris Technologies, Inc. · NYSE:LHX
L3harris Technologies — Harris — Q3 FY2018 Earnings Presentation
12 slides from L3harris Technologies's earnings presentation, May 1, 2018
Slide 1: Fiscal 2018 Third Quarter Earnings Call Presentation
Place image here (13.33” x 3.5”) FISCAL 2018 THIRD QUARTER EARNINGS CALL PRESENTATION HARRIS.COM | #HARRISCORP
Slide 2: Forward-looking statements
Forward-looking statements Statements in this presentation that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance on the safe harbor pro
Slide 3: 3Q18: Solid progress against strategic priorities
3Q18: Solid progress against strategic priorities • Revenue up 5% with growth in all segments 1 Grow revenue across • Orders up 27%; book-to-bill 1.2 and >1 across all segments all 3 segments • Year-over-year backlog growth of 22% Drive flawless execution • Delivered 21%* EPS growth, 12% excluding t
Slide 4: Key highlights
Key highlights Communication Systems Electronic Systems Space and Intelligence Systems • Revenue up 4%...strength in DoD • Revenue up 10%...growth across all • Continued mid-single-digit growth in Tactical and Night Vision business areas, 1H ADS-B headwind Classified ̶ DoD Tactical...readiness deman
Slide 5: Strong 3Q18 and YTD financial results
Strong 3Q18 and YTD financial results ($million, except per share amounts) Orders EPS Book-to-bill >1 in all segments Q3 & YTD Volume, operational efficiencies & tax reform driving growth GAAP 1.31 1.67 3.77 4.19 5,568 4.71 +25% 1,873 4,452 Non- 1.67 4.04 +17% Orders 1,479 +27% GAAP* +21% 1.38 +4% 1
Slide 6: 3Q EPS bridge
3Q EPS* bridge $1.67 $0.12 $0.01 $0.05 Exelis amortization Net interest $0.11 $1.38 Tactical, Avionics, Classified Space volume Operational efficiencies Program execution Pension income − Environmental volume − ES R&D 3Q17 Segment Share Share… Other Tax 3Q18 (non-GAAP) repurchases (non-G
Slide 7: Communication Systems
Communication Systems ($million) Revenue 1,304 1,380 • 3Q revenue up 4%; YTD revenue up 6% +6% 461 481 − DoD Tactical and Night Vision +4% • 3Q operating income up 5%; YTD operating income up 8% − Higher volume and operational efficiencies 3Q17 3Q18 YTD 17 YTD 18 Operating income and margin • 3Q mar
Slide 8: Electronic Systems
Electronic Systems ($million) Revenue • 3Q revenue up 10%; YTD revenue up 4% (up 7% 1,660 1,733 excluding ADS-B impact in 1H18) +4% 553 609 − Strong growth in long-term platforms: F-35, F/A-18, F-16 +10% − U.K. robotics and UAE battle management • 3Q operating income down 3%; YTD operating income do
Slide 9: Space & Intelligence Systems
Space & Intelligence Systems ($million) Revenue 1,396 1,413 475 482 +1% • 3Q and YTD revenue up 1% +1% − Continued mid-single-digit growth in Classified programs − Environmental programs down high teens YTD • 3Q and YTD operating income up 8% 3Q17 3Q18 YTD 17 YTD 18 − Strong program execution and in
Slide 10: FY18 guidance summary
FY18 guidance summary Total Harris By Segment Revenue Operating Margin Revenue Operating Margin* ~$1.88B ~30.0% CS $6.14B up 7.0 – 7.5% (midpoint of prior 29.5 - 30.5%) up ~4% 19.0% - 19.5% (versus up 5 - 7%) (versus up 3 - 4%) $2.35 - 2.36B ~18.5% ES EPS* Adjusted FCF** up 4.5 – 5.0% (versus
Slide 11: Other information (with FY17, 3Q18 and YTD results comparison)
Other information (with FY17, 3Q18 and YTD results comparison) ($million except noted) FY17 3Q18 YTD FY18 Amortization of Exelis acquisition intangibles $110 $25 $75 ~$103 CHQ costs $56 $13 $47 $55 – 60 non-GAAP non-GAAP non-GAAP non-GAAP FAS Pension expense/(income)* ($90) ($30) ($90) ~($120) Net c
Slide 12: Supplemental information - tactical communications history
Supplemental information - tactical communications history ($million) YTD 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 FY15 FY16 FY17 FY18 Orders 404 238 290 237 369 301 279 293 681 353 332 1,169 1,242 1,366 Sales 340 346 335 276 311 276 328 306 296 348 336 1,297 1,221 980 DoD 117 91