Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q3 2014 Earnings Presentation
12 slides from Huntington Ingalls Industries's earnings presentation, Nov 6, 2014
Slide 1: Q3 2014 Earnings Presentation
Q3 2014 Earnings Presentation November 6, 2014 Mike Petters President and 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: Third Quarter 2014 Highlights
Third Quarter 2014 Highlights 3 Revenues were $1.7 billion for the quarter Segment operating margin was 8.8%; Total operating margin was 10.0% Ingalls operating margin was 9.8%, compared to 8.1% in Q3 2013 or 2.9% on an adjusted basis1 Newport News operating margin was 9.2%, compared to 8.9%
Slide 4: Third Quarter 2014 Consolidated Results
Third Quarter 2014 Consolidated Results 4 $1,637 $1,717 $1,665 $1,300 $1,400 $1,500 $1,600 $1,700 $1,800 Q3 2013 Q3 2014 ($ in m illi on s) Consolidated Revenues GAAP Adjusted 7.8% 10.0% 5.9% 0.0% 2.0% 4.0% 6. % 8.0% 10.0% 12.0% Q3 2013 Q3 2014 Operating Margin GAAP Adjusted $1.36 $1.96 $1.17 $1.67
Slide 5: Ingalls Shipbuilding
Ingalls Shipbuilding 5 Ingalls adjusted revenues were down YoY due to lower volume on LHA-6 and LPD-25 Adjusted segment operating income and margin were up YoY due to performance improvement and risk retirement on the LPD program 1Non-GAAP metric that excludes the impact of hurricane insurance r
Slide 6: Newport News Shipbuilding
Newport News Shipbuilding 6 Newport News revenues were up due to higher revenues from the acquisition of The S.M. Stoller Corp. and higher submarine and energy volumes Segment operating income and margin for the quarter increased due to higher risk retirement on the VCS program $1,073 $ 1,097 $5
Slide 7: Appendix
U n sa ve d Docum e n t / 1 2 /2 9 /1 0 / 1 0 :0 2 Appendix
Slide 8: Reconciliations
Reconciliations 8 We make reference to “segment operating income,” “segment operating margin,” “adjusted sales and service revenues,” “adjusted segment operating income,” “adjusted segment operating margin,” “adjusted total operating income,” adjusted operating margin,” “adjusted net earnings,” “adj
Slide 9: Reconciliation of Non-GAAP Measures – Segment Operating Income and Segment Operating Margin
Reconciliation of Non-GAAP Measures – Segment Operating Income and Segment Operating Margin 9 Three Months Ended September ($ in millions) 2014 2013 Sales and Service Revenues Ingalls 559$ 565$ Newport News 1,097 1,073 Other 61 - Intersegment eliminations - (1) Total Sales and Service Revenues 1,717
Slide 10: Reconciliation of Non-GAAP Measures – Adjusted Figures
Reconciliation of Non-GAAP Measures – Adjusted Figures 10 Three Months Ended September 30 $ in millions 2014 2013 Adjusted Sales and Service Revenues Ingalls 559$ 565$ Adjustment for hurricane insurance recoveries - 37 Adjustment for Gulfport closure impact - (9) Adjusted Ingalls 559 593 Newport New
Slide 11: Reconciliation of Non-GAAP Measures – Adjusted Figures (continued)
Reconciliation of Non-GAAP Measures – Adjusted Figures (continued) 11 Three Months Ended September 30 $ in millions 2013 2013 Adjusted Net Earnings (Loss) Net Earnings (Loss) 96$ 69$ Adjustment for hurricane insurance recoveries(1) - (30) Adjustment for Gulfport closure impact(1) - 11 Adjustment for
Slide 12: Reconciliation of Non-GAAP Measures – Free Cash Flow
Reconciliation of Non-GAAP Measures – Free Cash Flow 12 Three Months Ended September 30, $ in millions 2014 2013 Net cash provided by (used in) operating activities 256$ 281$ Less: Capital expenditures (40) (30) Free cash flow 216$ 251$
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