Sensata Technologies Holding Plc · NYSE:ST
Sensata Technologies — Q1 2024 Earnings Presentation
25 slides from Sensata Technologies's earnings presentation, Apr 29, 2024
Slide 1: Sensata First Quarter 2024 Earnings Presentation
Sensata First Quarter 2024 Earnings Presentation April 2024
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures Safe Harbor Statement This presentation includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terminology such as "may," "will," "could,"
Slide 3: Key Performance Highlights Q1-2024
Key Performance Highlights Q1-2024 • Revenue of $1,007M in Q1-24, an increase of 0.9% YoY (increase of 2.3% YoY on a constant currency basis) Solid financial • Adj. Operating Profit of $189M or 18.7% of revenue, up from 18.5% in Q4 performance at high • On a constant currency basis, Adj. Operating P
Slide 4: Solid start to 2024 despite continuing market headwinds
Solid start to 2024 despite continuing market headwinds • Platform mix moving favorably due to EV • A2L leak detection sensor on track to demand fluctuations, particularly in Europe deliver market outgrowth in the second half • Share gains on ICE vehicles offsetting lower • As expected, destocking p
Slide 5: Q1-2024 Financials and Q2-2024 Financial Guide
Q1-2024 FINANCIALS AND Q2-2024 FINANCIAL GUIDE
Slide 6: Q1-2024 Financial Summary
Q1-2024 Financial Summary $ in millions, except EPS Q1-2024 Q1-2023 YoY B/(W) Revenue increase of 0.9% year over year. On a constant currency basis, Revenue $1,006.7 $998.2 0.9% Revenue increased 2.3% as foreign Adjusted Operating Income $188.5 $192.9 (2.3%) exchange negatively impacted revenue % Re
Slide 7: Segment mix continues to challenge operating margins
Segment mix continues to challenge operating margins: Automotive revenue grows while Industrial is in a market down-cycle Revenue Mix Automotive revenue outgrew Automotive revenue continues to Aerospace Industrial FY-22 - FY-23 outgrow Industrial in Q1-24 24% 25% 26% 26% Industrial 26% 24% 24% 21% M
Slide 8: Q1-24 Segment Performance
Q1-24 Segment Performance Revenue Growth Segment $ in millions Q1-2024 Q1-2023 YoY B/(W) Reported Organic Performance Sensing revenue increases on content growth Performance Net Revenue $713.3 $667.8 $45.6 6.8 % 8.6 % across both Automotive and Sensing(1) Heavy vehicle off-road, partially Adj. Opera
Slide 9: Capital deployment strategy, including repayment of debt, is improving ROIC
Capital deployment strategy, including repayment of debt, is improving ROIC Free Cash Flow ($ millions) $64 $60 $0.12 3.3x Quarterly Dividend Payment Net Leverage Ratio on May 22, 2024 for shareholders as of March 31, 2024 of record as of May 8, 2024 <3x expected by December 31, 2024 Q1-24 Q1-23 $27
Slide 10: Q2-24 Financial Guidance
Q2-24 Financial Guidance $ in millions, except EPS Q2-24 GUIDANCE Q2-23 B/(W) Revenue decline expected as Q2-23 benefited from approximately $25 Revenue (3%) - (1%) million in one-time revenue. $1,025 – $1,055 $1,062.1 organic (2%) - 1% Adjusted Operating Margin expected Adj. Op Income $192 – $202 $
Slide 11: Appendix A: Other Financial Information
APPENDIX A: OTHER FINANCIAL INFORMATION
Slide 12: Q1-2024 GAAP Results
Q1-2024 GAAP Results $ and shares outstanding in millions, except EPS Q1-2024 Q1-2023 B/(W) Revenue $1,006.7 $998.2 0.9% Gross Profit $317.4 $327.7 (3.1%) (% of revenue) 31.5% 32.8% R&D $45.3 $45.9 1.4 % (% of revenue) 4.5% 4.6% SG&A $88.0 $86.2 (2.2)% (% of revenue) 8.7% 8.6% Amortization of Intang
Slide 13: Q1-2024 Non-GAAP Results
Q1-2024 Non-GAAP Results $ and shares outstanding in millions, except EPS Q1-2024 Q1-2023 B/(W) Revenue $1,006.7 $998.2 0.9% Adj. Gross Profit $318.6 $324.9 (1.9%) (% of revenue) 31.6% 32.6% R&D $45.3 $45.9 1.4 % (% of revenue) 4.5% 4.6% Adj. SG&A $83.4 $84.4 1.2 % (% of revenue) 8.3% 8.5% Adj. Oper
Slide 14: Q1-2024 Cash Flow Statement
Q1-2024 Cash Flow Statement $ in millions Q1-2024 Q1-2023 B/(W) Net Income $76.0 $86.4 (12.0%) Depreciation & Amortization $72.0 $71.7 (0.4)% Changes in Working Capital ($62.9) ($71.4) 11.8% Other $21.4 $10.1 110.6% Operating Cash Flow $106.5 $96.9 9.9 % Capital Expenditures ($42.1) ($36.9) (14.2%)
Slide 15: Balance Sheet
Balance Sheet $ in millions MAR 31, 2024 DEC 31, 2023 Total Assets $ 7,616.0 $ 7,681.0 Working Capital $ 1,304.6 $ 1,278.7 Intangibles, Net & Other Long-Term Assets $ 5,517.4 $ 5,578.6 $ in millions MAR 31, 2024 DEC 31, 2023 Cash & Equivalents $ 460.4 $ 508.1 Current Debt $ 2.3 $ 2.3 Net Cash $ 458.
Slide 16: Appendix B: GAAP to Non-GAAP Reconciliations
APPENDIX B: GAAP TO NON-GAAP RECONCILIATIONS
Slide 17: Non-GAAP Measures
Non-GAAP Measures We supplement the reporting of our financial information determined in accordance with U.S. generally accepted accounting principles (“GAAP”) with certain non-GAAP financial measures. We use these non-GAAP financial measures internally to make operating and strategic decisions, inc
Slide 18: Non-GAAP Measures – continued
Non-GAAP Measures – continued Free Cash Flow – is defined as net cash provided by operating activities less additions to property, plant and equipment and capitalized software. We believe free cash flow is useful to management and investors as a measure of cash generated by business operations that
Slide 19: Adjusted EBITDA
Adjusted EBITDA In thousands Period Total Sensata LTM 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 Net income $ (14,305) $ 76,021 $ (202,238) $ 62,801 $ 49,111 $ 86,417 Interest expense, net 145,426 34,657 35,756 36,908 38,105 40,091 Provision for income taxes 20,595 22,570 (39,716) 17,868 19,873 23,726
Slide 20: Organic Revenue Growth
Organic Revenue Growth Q1-2024 Constant Currency % Reported % Change Less: Acquisition & Organic Growth Less: FX Impact Change (GAAP) Divestitures, net (non-GAAP) (non-GAAP) Performance Sensing 6.8% (1.8%) 8.6% —% 8.6% Sensing Solutions (9.0%) (0.7%) (8.3%) —% (8.3%) Other (24.3%) 0.1% (24.4%) —% (2
Slide 21: Free Cash Flow
Free Cash Flow $ in thousands Q1 Total Sensata 2024 2023 Change Net cash provided by operating activities $ 106,487 $ 96,888 9.9% Additions to property, plant and equipment and capitalized software (42,130) (36,882) (14.2%) Free cash flow $ 64,357 $ 60,006 7.3% 21 SENSATA Q1-2024 EARNINGS PRESENTATI
Slide 22: Debt and Leverage Ratio (Gross and Net)
Debt and Leverage Ratio (Gross and Net) $ in thousands As of Total Sensata 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Current portion of long-term debt and finance lease obligations $ 2,340 $ 2,276 $ 1,888 $ 1,809 $ 198,696 Finance lease obligations, less current portion 22,587 22,949 23,456
Slide 23: Adjusted Taxes and Adjusted Tax Rate
Adjusted Taxes and Adjusted Tax Rate $ in thousands Q1 Total Sensata 2024 2023 Provision for income taxes $ 22,570 $ 23,726 Non-GAAP adjustments: Deferred income tax and other tax expense/(benefit) 1,286 6,791 Current tax effect of non-GAAP adjustments (183) 3,055 Adjusted taxes $ 21,467 $ 13,880 Ad
Slide 24: Adjusted Corporate and Other Expenses
Adjusted Corporate and Other Expenses In thousands Q1 Total Sensata 2024 2023 Corporate and other expenses $ (80,303) $ (62,441) Non-GAAP adjustments: Restructuring related and other 2,567 (1,429) Financing and other transaction costs 3,396 2,619 Step-up depreciation and amortization 251 54 Deferred
Slide 25: Other GAAP to non-GAAP Reconciliations
Other GAAP to non-GAAP Reconciliations $ in thousands (except EPS amounts) Q1-2024 Q1-2023 Operating Operating Operating Operating Total Sensata Net Income EPS Net Income EPS Income Margin Income Margin Reported (GAAP) $ 144,792 14.4% $ 76,021 $ 0.50 $ 148,842 14.9% $ 86,417 $ 0.56 Non-GAAP adjustme