Transdigm Group Inc. · NYSE:TDG
Transdigm — Q1 2024 Earnings Presentation
16 slides from Transdigm's earnings presentation, Feb 8, 2024
Slide 1: FY 2024 Q1 Earnings Call
FY 2024 Q1 GROUP INC. TRANSDIG)Y \ S—~_——s Earnings Call
Slide 2: Agenda
Agenda TransDigm Overview, Highlights and Outlook Kevin Stein President and CEO Market Review Joel Reiss Co‐COO Operating Performance and Financial Results Sarah Wynne CFO Q&A 1
Slide 3: Forward Looking Statements & Special Notice Regarding Pro Forma and Non-GAAP Information
Forward Looking Statements & Special Notice Regarding Pro Forma and Non‐GAAP Information FORWARD LOOKING STATEMENTS This presentation contains forward‐looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including information regarding our guidance for futur
Slide 4: TransDigm Overview
TransDigm Overview Distinguishing Characteristics Highly engineered aerospace components Significant aftermarket content Proprietary products High free cash flow Proprietary Revenues (1) Pro Forma Revenues (1) Pro Forma EBITDA As Defined (1) Non‐ Comm OEM Proprietary 27% OEM Defense 38% Prop
Slide 5: 2024 Q1 Financial Performance by Markets – Pro Forma
2024 Q1 Financial Performance by Markets – Pro Forma Highlights Q1 Review – Pro Forma Revenues⁽¹⁾ Actual vs. 30% Biz Prior Year Jet/Heli Commercial OEM: Q1 Q1 ’24 Commercial Transport Revenue Up 22% 70% Com Q1 ’24 Business Jet/Helicopter Revenue Up 29% Transport Commercial OEM: Up 25% Strong B
Slide 6: First Quarter 2024 Select Financial Results
First Quarter 2024 Select Financial Results ($ in millions, except per share amounts) Q1 FY Q1 FY 2024 2023 Revenue $1,789 $1,397 28% Increase Gross Profit $1,042 $793 • Application of our value‐driven operating strategy 58.2% 56.8% 1.4% • Fixed overhead spread over higher production volumes SG&A $2
Slide 7: Fiscal 2024 Outlook
Fiscal 2024 Outlook Market Growth Assumptions FY 2023 Pro Forma Sales Mix (1) Market FY 2024 Expected Growth 27% Commercial OEM Around 20% 35% Commercial Aftermarket Mid-Teens % Range 38% Defense HSD to LDD % Range Guidance Summary ($ in millions, except per share amounts) FY 24 Guidance FY 24 Guida
Slide 8: Fiscal 2024 Select Financial Assumptions
Fiscal 2024 Select Financial Assumptions Select Financial Assumptions for Fiscal 2024 Prior Assumptions (Issued November 2023) Updated Assumptions Capital Expenditures $185 to $215 million No change Full Year Net Interest Expense ≈ $1.25 billion (includes $55 million of ≈ $1.38 billion (includes $60
Slide 9: Reconciliation of Fiscal 2024 Outlook
Reconciliation of Fiscal 2024 Outlook ($ in millions, except per share amounts) FY 2024 Guidance Midpoint Net income $ 1,611 Adjustments: Depreciation and amortization expense 292 Interest expense - net 1,380 Income tax provision 481 EBITDA 3,764 Adjustments: Acquisition-related expenses and adjustm
Slide 10: Reconciliation of GAAP EPS to Adjusted EPS - Guidance
Reconciliation of GAAP EPS to Adjusted EPS ‐ Guidance Full Year Guidance Thirteen Week Periods Ended Mid‐Point December 30, 2023 December 31, 2022 September 30, 2024 GAAP earnings per share from continuing operations $ 4.87 $ 3.33 $ 26.13 Adjustments to earnings per share: Dividend equivalent paymen
Slide 11: Capital Structure
Capital Structure Capital Structure ($ in millions) Actual 12/30/23 Rate Cash $4,135 $810mm revolver – S + 2.500% $450mm AR securitization facility 450 S + 1.600% First lien term loan H due 2027 1,708 S + 3.250% First lien term loan I due 2028 4,525 S + 3.250% FY24 Weighted First lien term loan J du
Slide 12: Interest Rate Sensitivity
Interest Rate Sensitivity • Interest rates on TDG’s $22Bn of gross Debt is ~ 75% hedged/fixed rate through fiscal year 2026 • Achieved via a combination of interest rate caps, swaps and collars • Significantly reduces near-term exposure to any variable rate increases $ in millions Current FY 24 Assu
Slide 13: Debt Maturity Profile
Debt Maturity Profile Debt Maturity Profile ($MM) $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2024 2025 2026 2027 2028 2029 2030 2031 Secured Term Loans Secured Notes Sr Sub Notes Note: $450M AR Securitization renews annually in July 12
Slide 14: Appendix: Reconciliation of Net Income to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Net Income to EBITDA and EBITDA As Defined ($ in millions) Thirteen Week Periods Ended December 30, 2023 December 31, 2022 Net Income $ 382 $ 229 Adjustments: Depreciation and amortization expense 71 63 Interest expense ‐ net 300 286 Income tax provision 106 72 EBITDA 859
Slide 15: Appendix: Reconciliation of Reported EPS to Adjusted EPS
Appendix: Reconciliation of Reported EPS to Adjusted EPS ($ in millions, except per share amounts) Thirteen Week Periods Ended Reported Earnings Per Share December 30, 2023 December 31, 2022 Net income $ 382 $ 229 Less: Net income attributable to noncontrolling interests ‐ (1) Net income attributabl
Slide 16: Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA
Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined ($ in millions) Thirteen Week Periods Ended December 30, 2023 December 31, 2022 Net cash provided by operating activities $ 636 $ 377 Adjustments: Changes in assets and liabilities, net of effects f