21 slides from Westinghouse Air Brake Technologies's earnings presentation, Feb 18, 2021
Slide 1: Wabtec 4th Quarter 2020 Financial Results & Company Highlights
Wabtec 4 Quarter 2020 th Financial Results & Company Highlights February 18, 2021
Slide 2: Forward looking statements & non-GAAP financial information
Forward looking statements & non-GAAP financial information This communication contains “forward-looking” statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigati
Slide 3: 4Q and full-year 2020 highlights
4Q and full-year 2020 highlights FULL-YEAR 2020 PERFORMANCE Strong execution $7.6B 15.1% ADJUSTED Delivered results in face of disruptive environment … global transportation markets recovering (9.9% GAAP) Growth through technology & solutions SALES OPERATING MARGIN World-class technology (FLXDrive,
Slide 4: 4Q 2020 financial summary
4Q 2020 financial summary SALES OPERATING INCOME EPS Adj. $2.4B $363M $1.23 $283M $0.98 $2.0B $161M $0.46 15% 15.3% Adj. 14.0% Margin(1) 2019 2020 2019 2020 2020 2019 Adj(3) 2020 2020 Adj Adj(2) Adj Focused execution as end markets recover (1) 4Q 2019 GAAP margin was 9.5% and 4Q 2020 GAAP operating
Slide 5: 4Q 2020 Freight segment performance
4Q 2020 Freight segment performance SALES OPERATING INCOME BACKLOG $1.7B $314M $218M(3) $17.8B $17.9B(4) $1.3B 18.8% $121M 20% Adj 16.3% Margin(1) 2019 2020 2019 Adj(2) 2020 2020 Adj 3Q20 4Q20 PRODUCT LINE YoY Equipment (32%) Timing of locomotive deliveries Components (22%) Improving sequential afte
Slide 6: 4Q 2020 Transit segment performance
4Q 2020 Transit segment performance SALES OPERATING INCOME BACKLOG $77M(3) $0.70B $55M $57M $3.7B(4) $0.68B $3.5B 11.3% 2% Adj 5% Margin(1) 7.9% 2019 2020 2019 Adj(2) 2020 2020 Adj 3Q20 4Q20 PRODUCT LINE YoY OE 2% Sequential recovery from COVID disruption in OE projects Aftermarket (6%) Aftermarket
Slide 7: Resilient business allows for execution on financial priorities
Resilient business allows for execution on financial priorities FOCUSED ON CASH CONVERSION STRENGTHENED BALANCE SHEET RETURNED CAPITAL TO SHAREHOLDERS Cash from Ops Total Debt 1x (1) $207M Share ~$220M costs repurchase $1,016M $4.43B $784M $190M $4.24B Dividend YoY $82M $93M FY 2019 FY 2020 4Q 2019
Slide 8: 2021 outlook and guidance
2021 outlook and guidance Freight 2021 GUIDANCE • Challenging NA loco market, somewhat offset by international deliveries Equipment • Strong Int’l pipeline … order momentum building $7.6B to $7.9B • Uncertain outlook for new railcar builds … expected to be ~25K REVENUES Components • Industrial end m
Slide 9: ESG commitment and defined targets to drive progress
ESG commitment and defined targets to drive progress Innovate with purpose Responsible operations Empower people & communities Products . Services . Solutions . Reman. Safe operations . Climate . Resource efficiency People . Community . Integrity We are committed to developing We are committed to pr
Slide 10: Solid foundation for growth and increased shareholder value
Solid foundation for growth and increased shareholder value 2021 Leading in decarbonization and automation technology … ~ 6-7% leveraging installed base … profitable growth via new products organic investment in technology as % of sales Driving continuous operational improvement and margin $ 250MM e
Slide 11: Wabtec Corporation
® Wabtec CORPORATION
Slide 12: Appendix
Appendix 12
Slide 13: Income statement
Income WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENT OF INCOME Appendix A ( 1 of 2) statement FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2020 AND 2019 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended Twelve Months Ended December 31
Slide 14: Income statement (cont.)
Income Appendix A ( 2 of 2) statement WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENT OF INCOME FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2020 AND 2019 (cont.) (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended Twelve Months Ended Dec
Slide 15: Balance sheet
Balance Appendix B sheet WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) December 31, 2020 December 31, 2019 In millions Cash and cash equivalents $ 598.7 $ 604.2 Receivables, net 1,412.5 1,663.9 Inventories 1,642.1 1,773.1 Current assets - other 226
Slide 16: Cash flow
Appendix C Cash flow WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Twelve Months Ended December 31, 2020 2019 In millions Operating activities Net income $ 412.3 $ 326.5 Non-cash expense 404.6 369.2 Receivables 315.0 (6.3) Inventories 180
Slide 17: EPS and non-GAAP reconciliation (1 of 2)
Appendix D (1 of 2) EPS Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial
Slide 18: EPS and non-GAAP reconciliation (2 of 2)
Appendix D (2 of 2) EPS Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial
Slide 19: EBITDA reconciliation
Appendix E EBITDA Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measur
Slide 20: Sales by product line
Appendix F Sales by WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION product line SALES BY PRODUCT LINE (UNAUDITED) Three Months Ended December 31, In millions 2020 2019 Freight Segment Equipment $ 433.3 $ 638.0 Components 194.6 250.1 Digital Electronics 163.9 210.8 Services 547.5 568.2 Total Freight
Slide 21: Segment reconciliation
Appendix G Segment reconciliation WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION RECONCILIATION OF REPORTED RESULTS TO ADJUSTED RESULTS - BY SEGMENT (UNAUDITED) Three Months Ended December 31, Twelve Months Ended December 31, In millions 2020 2019 2020 2019 Freight Segment Reported Income from Oper