L3harris Technologies, Inc. · NYSE:LHX
L3harris Technologies — Harris — Q1 FY2016 Earnings Presentation
13 slides from L3harris Technologies's earnings presentation, October 2015
Slide 1: Fiscal 2016 First Quarter Earnings Call Presentation
Fiscal 2016 First Quarter Earnings Call Presentation harris.com | Fiscal 2016 First Quarter Earnings Call Presentation |1
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: 1Q16 summary
1Q16 summary $million, except per share amounts Non-GAAP EPS Revenue Orders 1,811 2,242 $1.31 $1.18 1,155 +11% +57% B:B 1.24 1Q15 1Q16 1Q15 1Q16 1Q16 • Solid start to new year – first full quarter including Exelis • Revenue and EPS met management expectations • EPS of $1.31 included 17 cents of acqu
Slide 4: Other 1Q16 highlights
Other 1Q16 highlights $million, except share count 1Q15 1Q16 Amortization of acquisition intangibles - 33 Depreciation and amortization, all other 51 61 Effective tax rate (GAAP) 29.0% 31.5% Effective tax rate (non-GAAP) n/a 31.8% Average diluted share count 105.8 124.7 Operating cash flow 80 64 Fre
Slide 5: 1Q16 organic trends
1Q16 organic trends $million Revenue EBIT EBIT Excluding acquisition amortization 319 1,934 1,811 297 297 286 17.6% -6% 15.8% 15.4% 15.4% 1Q15 1Q16 1Q15 1Q16 1Q15 1Q16 pro forma pro forma pro forma • Lower organic revenue as expected – continuing services weakness • EBIT before acquisition amortizat
Slide 6: Integration – consolidating SINCGARS production
Integration – consolidating SINCGARS production Ft. Wayne facility ~300k sq ft Footprint in Rochester facility 90k sq ft 20k sq ft • Ft. Wayne facility closure in process… last SINCGARS radio produced in Q1 • Manufacturing footprint reduced from ~90K to 20K sq ft and SMT lines reduced from 6 to 2 •
Slide 7: New segment descriptions
New segment descriptions Communication Space and Electronic Critical Systems Intelligence Systems Systems Networks Tactical and airborne Complete earth observation, Extensive portfolio of Managed services supporting radios, night vision weather, geospatial, space solutions in electronic air traffic
Slide 8: Communication Systems
Communication Systems $million Revenue • Higher Tactical Communications, lower Public Safety 469 454 Public Safety 111 • Strong Harris legacy tactical 92 • Revenue up 7% Tactical • Strong orders and B:B 1.3 Communications 358 362 • Both international and U.S. B:B >1 • OCO funding underpinning intern
Slide 9: Space and Intelligence Systems
Space and Intelligence Systems $million Revenue 455 435 • Foundation GEOINT Content Management program continues to ramp • $184M orders classified 1Q15 1Q16 customers – primarily in pro forma advanced sensor systems and space superiority Operating income and margin 68 • Higher operating income and 5
Slide 10: Electronic Systems
Electronic Systems $million Revenue • Higher revenue from F-35 378 374 production ramp, lower electronic warfare • Strong EW wins – across domains • Air domain – $111M orders, Air Force, B-52; $97M orders, Navy F-18; $78M single-award IDIQ, DoD rotary aircraft 1Q15 1Q16 pro forma • Ground domain – $
Slide 11: Critical Networks
Critical Networks $million Revenue 644 • Continuing services weakness in 566 government and energy markets • Awards include: • $800M multi-award IDIQ from Army for Advanced Expeditionary Warfare 1Q15 1Q16 Development program pro forma • $500M multi-award IDIQ from a proprietary customer, w/ $25M ord
Slide 12: Fiscal 2016 outlook
Fiscal 2016 outlook $million, except revenue and per share amounts Guidance Fiscal 15 Fiscal 16 $ EPS $ EPS* Revenue $ 5,083 $ 7,670 - 7,830 GAAP EPS $ 3.11 $ 5.25 – 5.45* Deal, financing and other acquisition costs 169 ~10 ~$ 0.05* Acquisition integration costs 112 60 - 65 ~$ 0.30* Restructuring an
Slide 13: Fiscal 2016 segment outlook
Fiscal 2016 segment outlook $million Non-GAAP segment Revenue Other information operating margin Fiscal 15 pro forma Fiscal 16 Fiscal 15 pro forma Fiscal 16 Harris Corporation $ 8,085 down 3 to 5% Communication Systems 2,125 down 2 to 3% 29.0% 29.5% – 30.5% Space & Intelligence Systems 1,883 up 0 to