Slide 1: FY 2013 Second Quarter Earnings Call
FY 2013 Second Quarter Earnings Call May 7, 2013
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. This pro forma financial information gives effect to certain recently completed acquisitions and divestitures. Such pro forma information is based on certain assumptions
Slide 5: TransDigm Overview
TransDigm Overview DISTINGUISHING CHARACTERISTICS Highly engineered aerospace components Significant aftermarket content Proprietary and sole source products High free cash flow Pro Forma Revenues Proprietary Pro Forma EBITDA (Excluding Ground Revenues (1) As Defined (1) Transportation) ⁽¹⁾
Slide 6: 2013 Q2 Financial Performance by Markets – Pro Forma
2013 Q2 Financial Performance by Markets – Pro Forma Highlights⁽¹⁾ Market Review – Pro Forma Revenues⁽¹⁾ Commercial OEM Actual vs. Prior Year Modestly ahead of expectations 2013 Q2 2013 YTD Prior year comps very high Commercial OEM: Up 6% Up 5% Commercial Aftermarket: Continued softness in
Slide 7: Fiscal 2013 Outlook
Fiscal 2013 Outlook FY 2012 Pro Forma FY 2013 Sales Mix (1) Market Expected Growth⁽¹⁾ 32% Commercial OEM Up Mid to High Single-Digit % 44% Commercial Aftermarket Up ≤ 5% 24% Defense Up Low to Mid Single-Digit % Assumptions Guidance Summary ($ in millions) Low High Worldwide RPM growth ≈ 4% to 5%
Slide 8: Second Quarter 2013 Results
Second Quarter 2013 Results ($ in millions) Q2 FY13 Q2 FY12 Revenue $465.6 $423.5 10.0% Increase Gross Profit $259.3 $236.0 Flat Margins Margin % 55.7% 55.7% ● Dilutive impact of acquisitions ● Prior year favorable contract adjustment ● Unfavorable OEM vs aftermarket product mix ● Strength of our pr
Slide 9: Liquidity & Taxes
Liquidity & Taxes ($ in millions) Cash Taxes 3/30/2013 FY 9/30/2012 FY13 Q2 ETR: 31.9% Net Cash Provided by Operating Activities $197.3 $413.9 FY 13 Full Year ETR : 33% to 34% Capital Expenditures ($16.3) ($25.2) Free Cash Flow $181.0 $388.7 Cash on the Balance Sheet $680.0 $440.5 Liquidity EBIT
Slide 10: Reconciliation of GAAP to Adjusted EPS
Reconciliation of GAAP to Adjusted EPS ($ in millions) Full Year Thirteen Week Periods Twenty-Six Week Guidance Ended Periods Ended Mid-Point March 30, March 31, March 30, March 31, September 30, 2013 2012 2013 2012 2013 Earnings per share $ 1.25 $ 1.51 $ 1.91 $ 2.66 $ 5.40 Adjustments to earnings p
Slide 11: Appendix
Appendix
Slide 12: Reconciliation of Net Income to EBITDA and EBITDA As Defined
Reconciliation of Net Income to EBITDA and EBITDA As Defined ($ in thousands) Thirteen Week Twenty-Six Week Periods Ended Periods Ended March 30, March 31, March 30, March 31, 2013 2012 2013 2012 Net income $ 67,937 $ 81,552 $ 142,107 $ 146,657 Adjustments: Depreciation and amortization expense 16,3
Slide 13: Reconciliation of Reported EPS to Adjusted EPS
Reconciliation of Reported EPS to Adjusted EPS ($ in thousands, except per share amounts) Thirteen Week Twenty-Six Week Periods Ended Periods Ended March 30, March 31, March 30, March 31, Reported Earnings Per Share 2013 2012 2013 2012 Net income $ 67,937 $ 81,552 $ 142,107 $ 146,657 Less: dividends
Slide 14: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined
Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined ($ in thousands) Twenty-Six Week Periods Ended March 30, 2013 March 31, 2012 Net Cash Provided by Operating Activities $ 197,289 $ 164,962 Adjustments: Changes in assets and liabilities, net of effects from a
Slide 15: FY 2013 Second Quarter Earnings Call
FY 2013 Second Quarter Earnings Call May 7, 2013