Slide 1: FY 2021 Q2 Earnings Call
FY 2021 Q2 Earnings Call May 11, 2021
Slide 2: Agenda
Agenda TransDigm Overview and Highlights Nick Howley Executive Chairman Operating Performance, Market Review Kevin Stein and Outlook President and CEO Financial Results Mike Lisman CFO Q&A 1
Slide 3: Forward Looking Statements & Special Notice Regarding Pro Forma and Non-GAAP Information
Forward Looking Statements & Special Notice Regarding Pro Forma and Non‐GAAP Information FORWARD LOOKING STATEMENTS This presentation contains forward‐looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including information regarding our guidance for futur
Slide 4: TransDigm Overview
TransDigm Overview Distinguishing Characteristics Highly engineered aerospace components Significant aftermarket content Proprietary and sole source products High free cash flow Proprietary Revenues (1) Pro Forma Revenues (1) Pro Forma EBITDA As Defined (1) Non‐ Proprietary Comm OEM OEM 29%
Slide 5: 2021 Q2 Financial Performance by Markets – Pro Forma
2021 Q2 Financial Performance by Markets – Pro Forma Highlights Q2 Review – Pro Forma Revenues⁽¹⁾ 25% Biz Actual vs. Prior Year Jet/Heli Q2 YTD Commercial OEM: Q2 ’21 Commercial Transport Revenue Down 50% 75% Com Transport Commercial OEM: Down 43% Down 41% Q2 ’21 Business Jet/Helicopter Revenue
Slide 6: Second Quarter 2021 Select Financial Results
Second Quarter 2021 Select Financial Results ($ in millions, except per share amounts) Q2 FY Q2 FY 2021 2020 Revenue $1,194 $1,443 ‐17% Decrease Gross Profit $592 $818 • COVID‐19 restructuring costs 49.6% 56.7% • Higher acquisition accounting expenses SG&A $162 $180 • Higher non‐cash stock compensat
Slide 7: Fiscal 2021 Select Financial Assumptions
Fiscal 2021 Select Financial Assumptions Select Financial Assumptions for Fiscal 2021 Prior Assumptions (issued Nov 2020) Current Assumptions (with Cobham) Defense Revenue Growth LSD% to MSD% Growth MSD% Growth Full Year EBITDA Margin ≈ 44% ≈ 44% (Highly Dependent on Pace of Commercial (Highly Depen
Slide 8: Capital Structure
Capital Structure Pro Forma Capital Structure ($ in millions) Actual Pro forma (1) 4/3/21 Adj. 4/3/21 Rate Cash $4,072 $4,072 $760mm revolver $200 – 200 L + 3.000% $350mm AR securitization facility 350 – 350 L + 1.350% First lien term loan E due 2025 2,188 – 2,188 L + 2.250% First lien term loan F d
Slide 9: Debt Maturity Profile
Debt Maturity Profile Debt Maturity Profile – Pro Forma for April 2021 Refinancing ($MM) $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2021 2022 2023 2024 2025 2026 2027 2028 2029 Secured Term Loans Secured Notes Sr Sub Notes Note: $350M AR Securitization renews annually in July Note: P
Slide 10: Appendix: Reconciliation of Income from Continuing Operations to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Income from Continuing Operations to EBITDA and EBITDA As Defined ($ in millions) Thirteen Week Periods Ended Twenty‐Six Week Periods Ended April 3, 2021 March 28, 2020 April 3, 2021 March 28, 2020 Income from continuing operations $ 105 $ 323 $ 155 $ 556 Adjustments: Dep
Slide 11: Appendix: Reconciliation of Reported EPS to Adjusted EPS
Appendix: Reconciliation of Reported EPS to Adjusted EPS ($ in millions, except per share amounts) Thirteen Week Periods Ended Twenty‐Six Week Periods Ended Reported Earnings Per Share April 3, 2021 March 28, 2020 April 3, 2021 March 28, 2020 Income from continuing operations $ 105 $ 323 $ 155 $ 556
Slide 12: Appendix: Reconciliation of GAAP EPS to Adjusted EPS
Appendix: Reconciliation of GAAP EPS to Adjusted EPS Thirteen Week Periods Ended Twenty‐Six Week Periods Ended April 3, 2021 March 28, 2020 April 3, 2021 March 28, 2020 GAAP earnings per share from continuing operations $ 1.79 $ 5.63 $ 1.40 $ 6.45 Adjustments to earnings per share: Dividend & divide
Slide 13: Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined Twenty‐Six Week Periods Ended ($ in millions) April 3, 2021 March 28, 2020 Net cash provided by operating activities $ 372 $ 594 Adjustments: Changes in assets and liabilities, net of effects from a