Twin Disc, Incorporated · NASDAQ:TWIN
Twin Disc — Investor Presentation (February 2012)
34 slides from Twin Disc's investor presentation, Feb 22, 2012
Slide 1: We Put Horsepower to Work
Twin Disc, Incorporated WE PUT HORSEPOWER TO WORK ™
Slide 2: Safe Harbor Statement
Twin Disc, Incorporated February 21, 2012 Safe Harbor Statement This presentation contains statements that are forward-looking within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management’s current expectations that are based on assum
Slide 3: Twin Disc At A Glance
Twin Disc, Incorporated February 21, 2012 • Founded in 1918 • Headquartered in Racine, WI • ≈941 employees (FYE ‘11) • TTM Revenues of $338M* FY11 Revenues of $310M FY10 Revenues of $228M • We are a global company – Well-known customers around the world – Mfg Operations in the U.S., Italy, Belgium,
Slide 4: FY 2011 Financial Highlights
Twin Disc, Incorporated February 21, 2012 FY 2011 Financial Highlights $ millions $ millions • Quarterly sequential sales & earnings improvement – Sales up over 36% vs. FY ’10 – Earnings up over $18 million • Key Markets – Oil & gas markets experienced strong growth in shipments and order backlog –
Slide 5: Net Sales & Net Earnings (FY 2012 - First Six Months)
Twin Disc, Incorporated February 21, 2012 Net Sales & Net Earnings (FY 2012 - First Six Months) • Sales up 20% – Oil & gas markets strong – Most end markets showing growth – Record 6-month backlog as of Q1 $165 million, Q2 = $149 million • $15.4 million profit, up $8.8 million – Record Diluted EPS o
Slide 6: Industrial, ARFF, Military and Oil & Gas Markets
Twin Disc, Incorporated February 21, 2012 • Industrial markets showing modest growth – Agriculture, irrigation, recycling and construction • ARFF and Military holding steady – ARFF: Continue to increase market share with ‘pump & roll’ transmissions • Oil & Gas markets picking up – Thru 1 st half of
Slide 7: Marine & Propulsion Systems
Twin Disc, Incorporated February 21, 2012 Marine & Propulsion Systems • Pleasure Craft market continues soft worldwide – However, building share of market with new technology – Modest growth in sales & backlog began in 2 nd half of FY11 – Cat announcements in Q1 • Work Boat market steady – Europe so
Slide 8: Corporate Profile - Geographic Diversity
Twin Disc, Incorporated February 21, 2012 Corporate Profile - Geographic Diversity Sales (as a % of total sales) 59% International Sales USA Rest of World
Slide 9: Managing Our Cost Structure
Twin Disc, Incorporated February 21, 2012 Managing Our Cost Structure CAPEX • Investing in core competencies • Expanding presence in low cost manufacturing locations • Spent over $77 million over past 7 yrs
Slide 10: Managing Our Cost Structure - Low Cost Locations
Twin Disc, Incorporated February 21, 2012 Low Cost Sourcing Offices Managing Our Cost Structure Lower Cost Corporate HQ/Mfg Mfg locations
Slide 11: What Differentiates Us? Technology
Twin Disc, Incorporated February 21, 2012 What Differentiates Us? • Technology – Oil & Gas • 8500 Series • 7500 Series – ARFF • “Pump & Roll” – Military • “Legacy” Contracts – Marine • Patented QuickShift® • Express Joystick System® • Dynamic Positioning/DPII • Rolla CFD
Slide 12: What Differentiates Us?
Twin Disc, Incorporated February 21, 2012 What Differentiates Us? • 93+ Years of Proven Application Know-How • Niche Market Focus • Product/Market & Geographic Diversity • Core Manufacturing Capabilities Mfg location Co.-owned dist. 3 rd Party dist. Service dealers
Slide 13: Looking Ahead
Twin Disc, Incorporated Looking Ahead
Slide 14: Corporate Six Month Backlog
Twin Disc, Incorporated February 21, 2012 FY04 FY05 FY06 FY07 $ millions Corporate Six Month Backlog (Mfg Orders to be shipped in the next 6 months) FY08 FY09 FY11 FY10 +172% FY12
Slide 15: Fiscal Year 2012 Outlook
Twin Disc, Incorporated February 21, 2012 Fiscal Year 2012 Outlook • FY 2012 will be another strong year • Oil and Gas experiencing record demand – Continuing introduction of 7500 Series Transmission • Marine markets will remain mixed – Pleasure Craft improving off of low base - EJS impact – Work Bo
Slide 16: We Put Horsepower to Work
Twin Disc, Incorporated WE PUT HORSEPOWER TO WORK ™
Slide 17: Appendices
Twin Disc, Incorporated Appendices
Slide 18: Market Diversity - Pleasure Craft
Twin Disc, Incorporated February 21, 2012 Appendix I Corporate Profile - Market Diversity Pleasure Craft Market: • Target Markets: High speed planing and displacement yachts from 50’ to 150’, diesel-powered • Products: Transmissions, Surface Drives, Propellers, Steering/Thruster/Trim Systems, Water
Slide 19: Market Diversity - Work Boat
Twin Disc, Incorporated February 21, 2012 Appendix II Corporate Profile - Market Diversity Work Boat Market: • Target Markets: planing and displacement vessels from 30’ to 250’, diesel-powered • Products: Transmissions, Propellers, MCD’s, Water Jets, Controls • Channels: Engine OEMs & dealers, boat
Slide 20: Market Diversity - Patrol Boat
Twin Disc, Incorporated February 21, 2012 Appendix III Corporate Profile - Market Diversity Patrol Boat Market: • Target Markets: military, patrol and coast guard vessels from 30’ to 90’, diesel-powered • Products: Transmissions, Surface Drives, Propellers, Steering/Thruster/Trim Systems, Water Jets
Slide 21: Marine Transmissions, Propulsion & Boat Management Systems
Twin Disc, Incorporated February 21, 2012 Appendix IV QuickShift® Transmissions EJS®/Electronic Controls Bow Thrusters Anchor Winches Gangways Trim Tabs, Stern Thrusters Power Steering Marine Transmissions, Propulsion & Boat Management Systems Corporate Profile - Market Diversity We have been very s
Slide 22: Market Diversity - Industrial Products
Twin Disc, Incorporated February 21, 2012 Appendix V Corporate Profile - Market Diversity Industrial Products: • Target Market: Heavy duty industrial disconnect applications • Products: Mechanical & hydraulic clutches, PTOs & pump mount drives, 100 - 2,500 HP • Channels: Distribution & OEMs • Custom
Slide 23: Market Diversity - Industrial Transmissions
Twin Disc, Incorporated February 21, 2012 Appendix VI Corporate Profile - Market Diversity Industrial Transmissions: • Target Market: Off-highway and all-terrain specialty vehicles, diesel powered • Products: Powertrain components - 400 to 3,000 HP • Channel: OEM vehicle mfrs. • Customers: BAE, Rose
Slide 24: Frac Rig Diagram
Twin Disc, Incorporated February 21, 2012 Engine Transmission Pump Appendix VII Frac Rig Diagram
Slide 25: VIII
Twin Disc, Incorporated February 21, 2012 Appendix VIII $ millions % sales * See Appendix X for reconciliation of TTM figures to reported figures.
Slide 26: Non-GAAP Financial Disclosures
Twin Disc, Incorporated February 21, 2012 Appendix IX Non-GAAP Financial Disclosures Non-GAAP Financial Disclosures Financial information excluding the impact of certain significant items in this presentation are not measures that are defined in U.S. Generally Accepted Accounting Principles (“GAAP”)
Slide 27: Reconciliation of Net Earnings to EBITDA
Twin Disc, Incorporated February 21, 2012 Appendix X Reconciliation of Net Earnings to EBITDA * See Appendix XI for reconciliation of TTM figures to reported figures.
Slide 28: Reconciliation of TTM Data to Reported Quarterly Figures
Twin Disc, Incorporated February 21, 2012 Appendix XI Reconciliation of TTM Data to Reported Quarterly Figures
Slide 29: Fiscal Year Condensed Consolidated Statements of Operations
Twin Disc, Incorporated February 21, 2012 Appendix XII Fiscal Year Condensed Consolidated Statements of Operations * Represents trailing four quarter figures as of the quarter ending December 30, 2011. See Appendix XI for reconciliation of TTM figures to reported figures.
Slide 30: Fiscal Qtr Condensed Consolidated Statements of Operations
Twin Disc, Incorporated January 27, 2010 Appendix XIII 2 nd Fiscal Qtr Condensed Consolidated Statements of Operations
Slide 31: Historical Net Sales by Segment
Twin Disc, Incorporated February 21, 2012 Appendix XIV $317 $310 $332 $296 Historical Net Sales by Segment $228
Slide 32: Historical Net Earnings by Segment (before Corporate Expense)
Twin Disc, Incorporated February 21, 2012 Appendix XV Historical Net Earnings by Segment (before Corporate Expense)
Slide 33: Express Joystick System in Action
Twin Disc, Incorporated February 21, 2012 Express Joystick System® in Action Go to http://www.twindisc.com/MarineProducts/EJS.html to see the new revolutionary Twin Disc Express Joystick System® in action.
Slide 34: We Put Horsepower to Work
Twin Disc, Incorporated WE PUT HORSEPOWER TO WORK ™