Mercury Systems Inc · NASDAQ:MRCY
Mercury Systems — Q4 FY2020 Earnings Presentation
19 slides from Mercury Systems's earnings presentation, Aug 4, 2020
Slide 1: 4th Quarter and Full Fiscal Year 2020 Financial Results
4TH QUARTER AND FULL FISCAL YEAR 2020 FINANCIAL RESULTS Mark Aslett President and CEO Michael Ruppert Executive Vice President and CFO August 4, 2020, 5:00 pm ET Conference call: Dial (877) 303-6977 in the U.S. and Canada, (760) 298-5079 in all other countries Webcast login at www.mrcy.com/investor
Slide 2: Forward-looking safe harbor statement
Forward-looking safe harbor statement This presentation contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the acquisitions described herein and to fiscal 2021 business performance and beyond and t
Slide 3: Strong Q4 and FY20 against challenging backdrop
Strong Q4 and FY20 against challenging backdrop Notes Q4 FY20 VS. Q4 FY19 FY20 VS. FY19 (1) Organic revenue represents total company revenue excluding net revenue from acquisitions for the first four full quarters since the ▪ Record bookings up 15% entities’ acquisition date (which ▪ Record bookings
Slide 4: COVID-19 update
COVID-19 update ▪ Mitigated supply chain risks with minimal impact to date ▪ No erosion in talent attraction cadence ▪ Adjusted workplace conditions to improve physical distancing and safety ▪ Implemented symptom checking and temperature screening protocols ▪ Mask usage mandatory, as well as face sh
Slide 5: Industry outlook
Industry outlook ▪ Potential risks for extended continuing budget resolution in GFY21 ▪ Possible crowding out of defense spending by fiscal stimulus ▪ Diplomatic and economic tensions driving increased national security threats ▪ Non-national defense electronics supply chain and microelectronics ris
Slide 6: Trusted microelectronics – A strategic opportunity for Mercury
Trusted microelectronics – A strategic opportunity for Mercury ▪ Uniquely positioned to provide DoD trusted, secure microelectronics solutions ▪ Aligns with DoD’s #1 defense technology priority ▪ Congressional support with bipartisan American Foundries Act of 2020 ▪ Next-generation defense electroni
Slide 7: Business outlook
Business outlook ▪ Continue delivering organic revenue growth higher than industry average rate ▪ New business conditions remain robust, much the same as last quarter ▪ Benefiting from significant wave of radar, EW and C4I modernization ▪ Strong balance sheet to supplement organic growth with strate
Slide 8: Summary – Plan to continue generating shareholder value
Summary – Plan to continue generating shareholder value ▪ Drive ~10% average organic revenue growth supplemented by strategic M&A ▪ Invest in people, new technologies, facilities, manufacturing assets, business systems ▪ Insource more manufacturing; drive stronger operating performance ▪ Grow revenu
Slide 9: Q4 FY20 vs. Q4 FY19
Q4 FY20 vs. Q4 FY19 Notes In $ millions, except percentage and per share data Q4 FY19 Q4 FY20(3) CHANGE (1) Organic revenue represents total company revenue excluding net revenue from acquisitions for the first four full Bookings $241.3 $278.6 15% quarters since the entities’ acquisition date (which
Slide 10: FY20 vs. FY19
FY20 vs. FY19 Notes In $ millions, except percentage and per share data FY19 FY20(3) CHANGE (1) Organic revenue represents total company revenue excluding net revenue from acquisitions for the first four full Bookings $782.9 $954.3 quarters since the entities’ 1.20 1.20 22% acquisition date (which e
Slide 11: Balance sheet
Balance sheet Notes As of (1) Rounded amounts used. (2) Effective July 1, 2019, the (In $ millions)(1) 6/30/19 9/27/19 12/27/19 3/27/20 7/3/20 Company has adopted ASC 842 - Leases using the optional transition method. Prior periods were not changed. As ASSETS of July 3, 2020, the Company has Right-o
Slide 12: Cash flow summary
Cash flow summary Notes For the Fiscal Quarters Ended (1) Rounded amounts used. FY19 FY20 (2) Non-GAAP, see (In $ millions)(1) 9/27/19 12/27/19 3/27/20 7/3/20 reconciliation table. Net Income $46.8 $19.2 $15.7 $23.6 $27.2 $85.7 Depreciation and amortization 46.4 11.4 12.5 12.7 12.8 49.3 Termination
Slide 13: FY21 annual guidance
FY21 annual guidance Notes (1) FY20 figures are as reported in In $ millions, except percentage and per share data FY20(1) FY21(2)(5) CHANGE the Company’s earnings release dated August 4, 2020. The full fiscal period ended July 3, 2020 included $15.5M, or $0.28 per share, and $5.6M, or $0.10 per sha
Slide 14: Q1 FY21 guidance
Q1 FY21 guidance Notes (1) Q1 FY20 figures are as reported Q1 FY20(1) Q1 FY21(2)(5) in the Company’s earnings In $ millions, except percentage and per share data CHANGE release dated October 30, 2019. The first quarter of fiscal 2020 ended September 27, 2019 included $6.6M, or $0.12 per share, of di
Slide 15: Summary
Summary ▪ Record financial performance in Q4 and FY20 while managing through COVID-19 ▪ Record revenue, net income, adjusted EBITDA, EPS and adjusted EPS ▪ Expecting another strong year in FY21 with strong organic revenue growth ▪ Well positioned with a flexible capital structure to continue to depl
Slide 16: Appendix
APPENDIX
Slide 17: Adjusted EPS reconciliation
Adjusted EPS reconciliation Notes (1) Per share information is presented on a fully diluted basis. (2) Rounded amounts used. (3) Effective as of the third quarter of fiscal 2020, the Company has revised its definition of adjusted income and adjusted earnings per share to incorporate other non-operat
Slide 18: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation Notes (1) As of July 1, 2018, the Company has revised its definition of adjusted EBITDA to incorporate other non- operating adjustments, net, which includes gains or losses on foreign currency remeasurement, investments and fixed asset sales or disposals among other ad
Slide 19: Free cash flow reconciliation / Organic revenue reconciliation
Free cash flow reconciliation Organic revenue reconciliation Notes (In thousands) Q4 FY19 Q4 FY20 FY19 FY20 (1) Organic revenue represents total company revenue excluding net revenue from acquisitions for the first four full quarters since the entities’ acquisition date (which excludes Organic reven