Mercury Systems Inc · NASDAQ:MRCY
Mercury Systems — Q3 FY2021 Earnings Presentation
20 slides from Mercury Systems's earnings presentation, May 4, 2021
Slide 1: Third Quarter Fiscal Year 2021 Financial Results
THIRD QUARTER FISCAL YEAR 2021 FINANCIAL RESULTS Mark Aslett President and CEO Michael Ruppert Executive Vice President and CFO May 4, 2021, 5:00 pm ET Webcast login at www.mrcy.com/investor Webcast replay available by 7:00 p.m. ET May 4, 2021 © Mercury Systems, Inc.
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: Delivered strong fiscal 2021 third quarter
Delivered strong fiscal 2021 third quarter Delivered record revenues exceeding guidance Strong quarter for new design wins Anticipate increased bookings and positive book-to-bill for Q4 FY21 Expect approximately 6% organic and 14-15% total revenue growth for FY21 Fiscal 2022 revenue growth
Slide 4: Strategy and technologies aligned with major industry drivers and trends
Strategy and technologies aligned with major industry drivers and trends Expect flat to low single-digit CAGR in defense spending; well-aligned with Nat’l Defense Strategy Targeting and participating in large, and faster growing market segments Targeting sensor and effector mission systems and
Slide 5: Q3 and LTM FY21 results
Q3 and LTM FY21 results Notes Q3 FY21 VS. Q3 FY20 LTM FY21 VS. LTM 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 Bookings decreased 16% Bookings decreased 2% excludes
Slide 6: Expect above industry organic growth driven by prior design wins and industry trends
Expect above industry organic growth driven by prior design wins and industry trends Increased outsourcing by customers at subsystem level Supply chain delayering as government seeks more open, affordable and rapid solutions Primes' flight to quality suppliers Government’s focus on domestic
Slide 7: COVID-19 update
COVID-19 update All facilities have remained open since pandemic beginning Protecting health, safety and livelihoods of employees Successfully managed COVID risks for past 15+ months Health and safety protocols to continue well into CY21 Business continuity investments likely to decrease
Slide 8: M&A update
M&A update Disciplined approach in deal pursuits, diligence and integration POC integration on track, business performing as expected, growth opportunities Well-positioned to continue supplementing organic growth with accretive M&A Robust pipeline with multiple opportunities in line with str
Slide 9: Continue to execute on strategy: strong margins, organic growth, disciplined M&A, and full integration
Continue to execute on strategy: strong margins, organic growth, disciplined M&A, and full integration 1) High single to low double-digit organic revenue growth supplemented by strategic M&A 2) Invest in people, technologies, facilities, manufacturing assets, business systems 3) Insource more manufa
Slide 10: Summary
Summary Five-year outlook remains intact; high single to low double-digit organic revenue growth Total lifetime value of key programs and pursuits has increased substantially Expect conversion into bookings and backlog as programs transition into production Clear purpose and positioning, uni
Slide 11: Q3 FY21 vs. Q3 FY20
Q3 FY21 vs. Q3 FY20 Notes In $ millions, except percentage and per share data Q3 FY20(3) Q3 FY21(3) CHANGE (1) Organic revenue represents total company revenue excluding net revenue from acquisitions for the first four full quarters since Bookings $250.3 $210.2 the entities’ acquisition date (16%) (
Slide 12: Balance sheet
Balance sheet Notes As of (1) Rounded amounts used. (In $ millions)(1) 3/27/20 7/3/20 10/2/20 1/1/21 4/2/21 ASSETS Cash & cash equivalents $407.1 $226.8 $239.1 $109.1 $121.9 Restricted cash - - - 61.6 - Accounts receivable, net 214.0 210.7 207.8 240.2 264.0 Inventory, net 161.9 178.1 206.0 218.4 226
Slide 13: Cash flow summary
Cash flow summary Notes For the Fiscal Quarters Ended (1) Rounded amounts used. (2) Non-GAAP, see (In $ millions)(1) 3/27/20 7/3/20 10/2/20 1/1/21 4/2/21 reconciliation table. Net Income $23.6 $27.2 $15.8 $12.7 $15.6 Depreciation and amortization 12.7 12.8 13.0 13.3 20.0 (Gain)/Loss on investment (3
Slide 14: FY21 annual guidance
FY21 annual guidance Notes (1) FY20 figures are as reported in the (1) (2)(3)(6) In $ millions, except percentage and per share data FY20 FY21 CHANGE Company’s earnings release dated August 4, 2020. The full fiscal period ended July 3, 2020 included $5.6M, or $0.10 per share, and $15.5M, or $0.28 pe
Slide 15: Q4 FY21 guidance
Q4 FY21 guidance Notes (1) Q4 FY20 figures are as reported in the In $ millions, except percentage and per share data Q4 FY20(1) Q4 FY21(2)(5) CHANGE Company’s earnings release dated July 3, 2020. Q4 FY20 figures included $1.5M, or $0.03 per share, and $6.6M, or $0.12 per share, of other non- operat
Slide 16: Summary
Summary Delivered solid results including record revenues for the quarter Physical Optics Corporation integration progressing well Significant financial flexibility to deploy capital for strategic M&A Expecting record revenue and adjusted EBITDA for the fiscal year Continuing to execute on
Slide 17: Appendix
APPENDIX 17
Slide 18: 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 added back incremental COVID related expenses. (4) Impact to income taxes is calculated by recasting inco
Slide 19: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation Notes (1) Rounded amounts used. (2) Effective as of July 1, 2019, the Company’s fiscal year has changed to the 52-week or 53-week period ending on the Friday closest to the last day of June. All references in this presentation to the fourth quarter of fiscal 2020 and f
Slide 20: Free cash flow reconciliation Organic revenue reconciliation
Free cash flow reconciliation Organic revenue reconciliation Notes (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 any intercompany transactions). After the completion o