Slide 1: FY 2012 Second Quarter Earnings Call
FY 2012 Second Quarter Earnings Call May 8, 2012
Slide 2: Agenda
Agenda TransDigm Overview W. Nicholas Howley Chairman and CEO Highlights, Market Review, Operating W. Nicholas Howley Performance and Outlook Chairman and CEO Operations and Value Creation Raymond F. Laubenthal President and COO Financial Results Gregory Rufus Executive Vice President and CF
Slide 3: Forward Looking Statements
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 future periods. These forward-looking statements are based on management’s current expectation
Slide 4: Special Notice Regarding Pro Forma and Non-GAAP Information
Special Notice Regarding Pro Forma and Non-GAAP Information This presentation sets forth certain pro forma financial information, which is summarized in the appendix. This pro forma financial information gives effect to certain recently completed acquisitions and divestitures. Such pro forma informa
Slide 5: TransDigm Overview
TransDigm Overview DISTINGUISHING CHARACTERISTICS Highly engineered aerospace components Significant aftermarket content Proprietary and sole source products High free cash flow Proprietary Pro Forma Pro Forma EBITDA Revenues Revenues⁽¹⁾ As Defined Def Aftmkt 14% Def OEM 11% Comm Aftmkt 46%
Slide 6: Financial Performance by Market Channel
Financial Performance by Market Channel Highlights⁽¹⁾ Market Review – Pro Forma Revenues⁽¹⁾ Commercial OEM Actual vs. Prior Year 2012 YTD results include ~ $11M of retroactive 2012 Q2 2012 YTD contract adjustments and $6M in Q2 2012 Airbus & Boeing production rate increases Commercial proceedi
Slide 7: Fiscal 2012 Outlook
Fiscal 2012 Outlook FY 2011 Pro forma FY 2012 Sales Mix⁽¹⁾ Market Expected Growth⁽¹⁾ 31% Commercial OEM Up Hi Teen % 42% Commercial Aftermarket Up ≈ 10 % 27% Defense Flat to Modestly Up Assumptions Guidance Summary ($ in millions) Low High Worldwide RPM growth 4 to 5% Revenues $ 1,670 $ 1,698 Co
Slide 8: Second Quarter 2012 Results
Second Quarter 2012 Results Q2 FY12 Q2 FY11 ($ in millions) Revenue $423.5 $304.3 39.2% Increase ● Organic sales growth 14.9% Gross Profit $236.0 $157.9 3.8 Margin Point Increase Margin % 55.7% 51.9% ● Core business contributed ~ 2 margin points due to: - Favorable one-time contract adjustment of ~
Slide 9: Liquidity & Taxes
Liquidity & Taxes ($ in millions) Cash FY 9/30/2011 3/31/2012 Net Cash Provided by Operating Activities $260.6 $164.8 Taxes Capital Expenditures ($18.0) ($9.1) FY12 Q2 YTD ETR: 33.7% Free Cash Flow $242.6 $155.7 FY12 Full Year ETR: 34% to 35% Cash on the Balance Sheet $376.2 $201.5 Liquidity EBI
Slide 10: Reconciliation of GAAP to Adjusted EPS
Reconciliation of GAAP to Adjusted EPS ($ in millions) Full Year Thirteen Week Periods Twenty-Six Week Guidance Ended Periods Ended Mid-Point March 31, April 2, March 31, April 2, September 30, 2012 2011 2012 2011 2012 Earnings per share from continuing operations $ 1.51 $ 0.69 $ 2.66 $ 0.50 $ 5.64
Slide 11: Appendix
Appendix 10
Slide 12: Reconciliation of Net Income to EBITDA and EBITDA As Defined
Reconciliation of Net Income to EBITDA and EBITDA As Defined Thi rte e n W e e k Twe nty-Si x W e e k Pe ri ods Ende d Pe ri ods Ende d March 31, Apri l 2, March 31, Apri l 2, 2012 2011 2012 2011 Net income $ 81,552 $ 55,817 $ 146,657 $ 48,459 Less income from discont inued operat ions - 19,120 - 18
Slide 13: Reconciliation of Reported EPS to Adjusted EPS
Reconciliation of Reported EPS to Adjusted EPS Thirteen Week Twenty-Six Week Periods Ended Periods Ended March 31, April 2, March 31, April 2, Reported Earnings Per Share 2012 2011 2012 2011 Net income from continuing operations $ 81,552 $ 36,697 $ 146,657 $ 29,544 Less: dividends paid on participat
Slide 14: Reconciliation of Net Cash Provided by Operating Activities to EBITDA
Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined Twenty-Six Week Periods Ended March 31, 2012 April 2, 2011 Net Cash Provided by Operating Activities $ 164,804 $ 129,151 Adjustments: Changes in assets and liabilities, net of effects from acquisitions of bus
Slide 15: FY 2012 Second Quarter Earnings Call
FY 2012 Second Quarter Earnings Call May 8, 2012