Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q2 2017 Earnings Presentation
15 slides from Huntington Ingalls Industries's earnings presentation, Aug 3, 2017
Slide 1: Q2 2017 Earnings Presentation
Q2 2017 Earnings Presentation August 3, 2017 Mike Petters President and Chief Executive Officer Chris Kastner Executive Vice President, Business Management and Chief Financial Officer
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements Statements in this presentation, other than statements of historical fact, may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause
Slide 3: HII's Q2 2017 Highlights
3 HII’s Q2 2017 Highlights Revenues were $1.86 billion in the quarter Diluted EPS was $3.21 in the quarter Total backlog at the end of the quarter was ~$21.1 billion; new contract awards in the quarter totaled $3.4 billion Ingalls Shipbuilding o Launched Tripoli (LHA 7) and completed Builder
Slide 4: HII's Q2 2017 Consolidated Results
4 HII’s Q2 2017 Consolidated Results HII’s revenues up 9.3% YOY due to the acquisition of Camber Corp., which contributed $85M in the quarter, and higher volume at Ingalls. HII’s operating income up YOY due to FAS/CAS adjustment; operating margin similar YOY. $1,700 $1,858 $1,500 $1,550 $1,600 $
Slide 5: HII's Q2 2017 Capital Deployment
5 $24 $27 $36 $138 $— $20 $40 $60 $80 $100 $120 $140 $160 $180 Q2 2016 Q2 2017 ($ in m illi on s) Shareholder Distributions Dividends Share Repurchases (at cost) HII’s Q2 2017 Capital Deployment *Non-GAAP measure. See appendix for definition and reconciliation. **Includes $3 million for share repurc
Slide 6: Ingalls Shipbuilding Q2 2017 Results
6 Ingalls Shipbuilding Q2 2017 Results *Non-GAAP measure. See appendix for definition and reconciliation. Ingalls revenues up 9.2% YOY due to higher volumes on the LHA and NSC programs, partially offset by lower volume on the LPD program. Ingalls segment operating income and margin up YOY due to
Slide 7: Newport News Shipbuilding Q2 2017 Results
7 Newport News Shipbuilding Q2 2017 Results *Non-GAAP measure. See appendix for definition and reconciliation. Newport News revenues similar YOY. Newport News segment operating income and margin down YOY due to lower risk retirement on the VCS program. $999 $1,001 $500 $600 $700 $800 $900 $1,000
Slide 8: Technical Solutions Q2 2017 Results
8 Technical Solutions Q2 2017 Results *Non-GAAP measure. See appendix for definition and reconciliation. Technical Solutions revenues up 70.6% YOY due to the 4Q16 acquisition of Camber Corp. Technical Solutions segment operating income and margin up YOY due to improved performance in oil and gas
Slide 9: Appendix
9 Appendix
Slide 10: Non-GAAP Measures Definitions
10 Non-GAAP Measures Definitions We make reference to “segment operating income (loss),” “segment operating margin,” “adjusted net earnings (loss),” “adjusted diluted earnings per share,” and “free cash flow.” We internally manage our operations by reference to “segment operating income (loss)” and
Slide 11: Non-GAAP Measures Definitions Cont'd
11 Non-GAAP Measures Definitions Cont’d Segment operating income (loss) is defined as operating income (loss) for the relevant segment(s) before the FAS/CAS Adjustment and non-current state income taxes. Segment operating margin is defined as segment operating income (loss) as a percentage of sales
Slide 12: Non-GAAP Reconciliations – Segment Operating Income (Loss) & Segment Operating Margin
12 Non-GAAP Reconciliations – Segment Operating Income (Loss) & Segment Operating Margin ($ in millions) 2017 2016 2017 2016 Ingalls revenues 639$ 585$ 1,189$ 1,171$ Newport News revenues 1,001 999 1,972 1,992 Technical Solutions revenues 244 143 469 351 Intersegment eliminations (26) (27) (48) (51)
Slide 13: Non-GAAP Reconciliations – Adjusted Net Earnings & Adjusted Diluted EPS
13 Non-GAAP Reconciliations – Adjusted Net Earnings & Adjusted Diluted EPS 13 *The income tax impact is calculated using the tax rate in effect for the relevant non-GAAP adjustment. **Amounts may not recalculate exactly due to rounding. ($ in millions) 2017 2016 2017 2016 Net Earnings 147$ 133$ 266$
Slide 14: Non-GAAP Reconciliation – Free Cash Flow
14 Non-GAAP Reconciliation – Free Cash Flow 14 ($ in millions) 2017 2016 2017 2016 Net cash provided by (used in) operating activities 186 169 284 223 Less: Capital expenditures (79) (48) (137) (85) Free cash flow 107 121 147 138 Three Months Ended June 30 Six Months Ended June 30
Slide 15: Huntington Ingalls Industries
Huntington Ingalls Industries
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