Transdigm Group Inc. · NYSE:TDG
Transdigm — Q4 2014 Earnings Presentation
13 slides from Transdigm's earnings presentation, Nov 13, 2014
Slide 1: FY 2014 Fourth Quarter Earnings Call
FY 2014 FOURTH QUARTER EARNINGS CALL November 13, 2014
Slide 2: Agenda
Agenda TransDigm Overview W. Nicholas Howley Chairman and CEO Highlights, Market Review, Operating W. Nicholas Howley Performance and Outlook Chairman and CEO Operations and Value Creation Raymond F. Laubenthal President and COO Financial Results Gregory Rufus Executive Vice President and CF
Slide 3: Forward Looking Statements
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 future periods. These forward-looking statements are based on management’s current expectation
Slide 4: Special Notice Regarding Pro Forma and Non-GAAP Information
Special Notice Regarding Pro Forma and Non-GAAP Information This presentation sets forth certain pro forma financial information. This pro forma financial information gives effect to certain recently completed acquisitions. Such pro forma information is based on certain assumptions and adjustments a
Slide 5: TransDigm Overview
TransDigm Overview DISTINGUISHING CHARACTERISTICS Highly engineered aerospace components Significant aftermarket content Proprietary and sole source products High free cash flow Proprietary Pro Forma Revenues Pro Forma EBITDA Revenues (1) (Excluding Non-Aviation Segment) (1) As Defined (1) N
Slide 6: 2014 Q4 Financial Performance by Markets – Pro Forma
2014 Q4 Financial Performance by Markets – Pro Forma Highlights⁽¹⁾ Q4 Market Review – Pro Forma Revenues⁽¹⁾ Actual vs. Prior Year Q4 2014 YTD 2014 Commercial OEM Commercial transport revenues up 12% YTD Commercial OEM: Up 7% Up 8% Business jet revenues about flat YTD Commercial Aftermarket
Slide 7: Fiscal 2015 Outlook
Fiscal 2015 Outlook FY 2014 Pro Forma Sales Mix (1) Market FY 2015 Expected Growth 31% Commercial OEM Up Mid Single-Digit % 38% Commercial Aftermarket Up High Single-Digit % 31% Defense Flat Assumptions Guidance Summary ($ in millions) Worldwide RPM growth ≈ 4% to 5% Low High OEM production rate
Slide 8: Fourth Quarter 2014 Results
Fourth Quarter 2014 Results ($ in millions) Q4 FY14 Q4 FY13 Revenue $642.2 $539.7 19.0% Increase Gross Profit $348.6 $282.7 1.9 Margin Point Increase Margin % 54.3% 52.4% ● Strength of our proprietary products and productivity improvements ● Reduced non-operating acquisition related costs ● Dilutive
Slide 9: Liquidity & Taxes
Liquidity & Taxes ($ in millions) Cash Liquidity FY 9/30/2014 FY 9/30/2013 Net Debt to Pro Net Cash Provided by Actual Forma EBITDA As Operating Activities $541.2 $470.2 9/30/2014 Defined Multiple Rate Cash $820 Capital Expenditures ($34.1) ($35.5) $420m revolver – L + 3.00% Free Cash Flow $507.1 $4
Slide 10: Reconciliation of GAAP to Adjusted EPS - Guidance
Reconciliation of GAAP to Adjusted EPS - Guidance Full Year Guidance Thirteen Week Periods Ended Fiscal Year Ended Mid-Point September 30, September 30, September 30, September 30, September 30, 2014 2013 2014 2013 2015 Earnings (loss) per share $ 1.91 $ (0.20) $ 3.16 $ 2.39 $ 7.64 Adjustments to ea
Slide 11: Appendix - Reconciliation of Net Income to EBITDA and EBITDA As Defined
Appendix - Reconciliation of Net Income to EBITDA and EBITDA As Defined ($ in thousands) Thirteen Week Periods Ended Fiscal Years Ended September 30, September 30, September 30, September 30, 2014 2013 2014 2013 Net income $ 114,255 $ 84,027 $ 306,910 $ 302,789 Adjustments: Depreciation and amortiza
Slide 12: Appendix - Reconciliation of Reported EPS to Adjusted EPS
Appendix - Reconciliation of Reported EPS to Adjusted EPS ($ in thousands, except per share amounts) Thirteen Week Periods Ended Fiscal Years Ended September 30, September 30, September 30, September 30, Reported Earnings Per Share 2014 2013 2014 2013 Net income $ 114,255 $ 84,027 $ 306,910 $ 302,78
Slide 13: Appendix - Reconciliation of Net Cash Provided by Operating Activities to EBITDA
Appendix - Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined Fiscal Years Ended ($ in thousands) September 30, September 30, 2014 2013 Net Cash Provided by Operating Activities $ 541,222 $ 470,205 Adjustments: Changes in assets and liabilities, net of effect