Huntington Ingalls Industries, Inc. · NYSE:HII

Huntington Ingalls Industries — Q4 2013 Earnings Presentation

14 slides from Huntington Ingalls Industries's earnings presentation, Feb 27, 2014

  1. Slide 1: Q4 2013 Earnings Presentation

    Q4 2013 Earnings Presentation February 27, 2014 Mike Petters President and Chief Executive Officer Barb Niland Corporate Vice President, Business Management & Chief Financial Officer Exhibit 99.2

  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

  3. Slide 3: Highlights from the Quarter and FY 2013

    Highlights from the Quarter and FY 2013 3  Adjusted revenues were $1.9 billion for Q4 and $6.8 billion for the year  Diluted EPS of $1.82 for Q4 and $5.18 for the year  Adjusted Diluted EPS** of $1.66 for Q4 and $5.36 for the year  Continued strong segment operating performance  Ingalls operati

  4. Slide 4: Fourth Quarter 2013 Consolidated Results

    Fourth Quarter 2013 Consolidated Results 4 $1,823 $1,938 $1,823 $1,907 $1,300 $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 Q4 2012 Q4 2013 ($ in m illi on s) Consolidated Revenues GAAP Adjusted* 5.8% 9.0% 5.8% 8.2% 0.0% 2.0% 4.0% 6.0% 8. % 10.0% Q4 2012 Q4 2013 Operating Margin GAAP Adjusted* $1

  5. Slide 5: FY 2013 Consolidated Results

    $2.91 $5.18 $3.95 $5.36 $- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 FY 2012 FY 2013 Diluted EPS GAAP Adjusted** * Non-GAAP metric that excludes the impact of hurricane insurance recoveries and the Gulfport closure impact in 2013. See appendix for reconciliation. ** Non-GAAP metric that excludes the impac

  6. Slide 6: Ingalls Shipbuilding – Fourth Quarter Results

    * Non-GAAP metric that excludes the impact of hurricane insurance recoveries and the Gulfport closure impact in 2013. See appendix for reconciliation. Ingalls Shipbuilding – Fourth Quarter Results 6  Ingalls Q4 revenues were up YoY due to higher volume on DDG-117 and NSC-6  Q4 segment operating in

  7. Slide 7: Ingalls Shipbuilding – FY 2013 Results

    $97 $175 $97 $128 $- $50 $100 $150 $200 FY 2012 FY 2013 ($ in m illi on s) Operating Income GAAP Adjusted* * Non-GAAP metric that excludes the impact of hurricane insurance recoveries and the Gulfport closure impact in 2013. See appendix for reconciliation. Ingalls Shipbuilding – FY 2013 Results 7 

  8. Slide 8: Newport News Shipbuilding

    $102 $360 $104 $392 $- $50 $100 $150 $200 $250 $300 $350 $400 $450 Q4 2012 Q4 2013 2012 2013 ($ in m illi on s) Operating Income Newport News Shipbuilding 8  Newport News revenues were up in Q4 as compared to Q4 2012 due to higher volume on aircraft carriers  Segment operating income increased for

  9. Slide 9: 2014 Retirement Related Guidance

    2014 Retirement Related Guidance 9 ($ in millions) 2014 2013 Pension Discount Rate 5.27% 4.24% Expected Return on Assets 7.50% 7.50% Cash Contributions, Net of CAS Recovery1 $65 ($147) Net FAS/CAS Adjustment1 $92 ($61) CAS1 $227 $196 FAS1 ($135) ($257) 1 Includes pension & other postretirement benef

  10. Slide 10: Appendix

    U n sa ve d Docum e n t / 1 2 /2 9 /1 0 / 1 0 :0 2 Appendix

  11. Slide 11: Reconciliations

    Reconciliations 11 We make reference to “segment operating income,” “segment operating margin,” “adjusted sales and service revenues,” “adjusted segment operating income,” “adjusted segment operating margin,” “adjusted total operating income,” “adjusted operating margin,” “adjusted net earnings,” an

  12. Slide 12: Reconciliation of Non-GAAP Measures – Segment Operating Income and Segment Operating Margin

    Reconciliation of Non-GAAP Measures – Segment Operating Income and Segment Operating Margin 12 ($ in millions) 2013 2012 2013 2012 Sales and Service Revenues Ingalls 815$ 722$ 2,757$ 2,840$ Newport News 1,140 1,122 4,139 3,940 Intersegment eliminations (17) (21) (76) (72) Total Sales and Service Rev

  13. Slide 13: Reconciliation of Non-GAAP Measures – Adjusted Figures

    Reconciliation of Non-GAAP Measures – Adjusted Figures 13 ($ in millions) 2013 2012 2013 2012 Adjusted Sales and Service Revenues Ingalls revenues 815$ 722$ 2,757$ 2,840$ Adjustment for hurricane insurance recoveries (31) — 6 — Adjustment for Gulfport closure impact — — (9) — Adjusted Ingalls revenu

  14. Slide 14: Reconciliation of Non-GAAP Measures – Adjusted Figures (continued)

    Reconciliation of Non-GAAP Measures – Adjusted Figures (continued) 14 1 Tax effected at 35% federal statutory tax rate. ($ in millions, except per share amounts) 2013 2012 2013 2012 Adjusted Net Earnings Net Earnings 91$ 50$ 261$ 146$ Adjustment for hurricane insurance recoveries(1) (12) — (42) — Ad

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