Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q3 2015 Earnings Presentation
12 slides from Huntington Ingalls Industries's earnings presentation, Nov 5, 2015
Slide 1: Q3 2015 Earnings Presentation
Q3 2015 Earnings Presentation November 5, 2015 Mike Petters President & Chief Executive Officer Barb Niland Corporate Vice President, Business Management & Chief Financial Officer Exhibit 99.2
Slide 2: Safe Harbor
Safe Harbor 2 Statements in this presentation, other than statements of historical fact, 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 our actual results
Slide 3: Highlights from Third Quarter 2015
Highlights from Third Quarter 2015 3 Revenues were $1.8 billion compared to ~$1.7 billion in Q3 2014 Segment operating margin* was 9.6% compared to 8.8% in Q3 2014 Total operating margin was 11.1% compared to 10.0% in Q3 2014 Diluted EPS was $2.29 compared to $1.96 in Q3 2014 Diluted EPS i
Slide 4: Third Quarter 2015 Consolidated Results
$1.96 $2.29 $1.67 $1.98 $— $0.50 $1.00 $1.50 $2.00 $2.50 Q3 2014 Q3 2015 Diluted EPS GAAP Adjusted* Third Quarter 2015 Consolidated Results 4 * Non-GAAP metrics. See appendix for definitions and reconciliations. $1,717 $1,800 $— $400 $800 $1,200 $1,600 $2,000 Q3 2014 Q3 2015 ($ in m illi on s) Reven
Slide 5: Ingalls Shipbuilding
Ingalls Shipbuilding 5 Ingalls revenues up 6% YoY due to increased volumes on the DDG program. Segment operating income and margin up YoY due to improved performance on the LHA, NSC and LPD programs $559 $593 $300 $350 $400 $450 $500 $550 $600 Q3 2014 Q3 2015 ($ in m illi on s) Revenues $55 $77
Slide 6: Newport News Shipbuilding
6 Newport News revenues up 7% YoY due to increased volumes on the VCS program and fleet support services. Segment operating income and margin down YoY due to lower performance on CVN-78 Gerald R. Ford and lower volumes on aircraft carriers RCOH programs. Newport News Shipbuilding $1,097 $1,177 $
Slide 7: 2016 FAS/CAS Adjustment Sensitivities
2016 FAS/CAS Adjustment Sensitivities 7 As of September 30, 2015, YTD actual return on plan assets was (3.3%) and the FAS discount rate was approximately 4.59%, 25 bps higher than year end 2014. The FAS/CAS Adjustment is equal to the pension and other post-retirement benefits cost recorded under U
Slide 8: Appendix
Appendix
Slide 9: Definitions of Non-GAAP Metrics
Definitions of Non-GAAP Metrics 9 We make reference to “segment operating income,” “segment operating margin,” “adjusted net earnings,” “adjusted diluted earnings per share,” and "free cash flow." Segment operating income is defined as total operating income before the FAS/CAS Adjustment and deferre
Slide 10: Reconciliation of Non-GAAP Metrics – Segment Operating Income and Segment Operating Margin
Reconciliation of Non-GAAP Metrics – Segment Operating Income and Segment Operating Margin ($ in millions) 2015 2014 Sales and Service Revenues Ingalls 593$ 559$ Newport News 1,177 1,097 Other 30 61 Total Sales and Service Revenues 1,800 1,717 Operating Income Ingalls 77 55 As a percentage of Ingall
Slide 11: Reconciliation of Non-GAAP Metrics – Adjusted Diluted EPS
Reconciliation of Non-GAAP Metrics – Adjusted Diluted EPS 11 (In millions, except per share amounts) 2015 2014 Adjusted Net Earnings (Loss) Net Earnings (Loss) 111$ 96$ Adjustment for loss on early extinguishment of debt(1) 3 — Adjustment for FAS/CAS Adjustment(1) (18) (14) Adjusted Net Earnings (Lo
Slide 12: Reconciliation of Non-GAAP Metrics – Free Cash Flow
Reconciliation of Non-GAAP Metrics – Free Cash Flow 12 ($ in millions) 2015 2014 2015 2014 Net cash provided by (used in) operating activities 254 256 417 314 Less: Capital expenditures (37) (40) (86) (91) Free cash flow 217 216 331 223 Three Months Ended Nine Months Ended September 30 September 30
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