Mercury Systems Inc · NASDAQ:MRCY
Mercury Systems — Q1 FY2021 Earnings Presentation
18 slides from Mercury Systems's earnings presentation, Nov 3, 2020
Slide 1: 1st Quarter Fiscal Year 2021 Financial Results
1ST QUARTER FISCAL YEAR 2021 FINANCIAL RESULTS Mark Aslett President and CEO Michael Ruppert Executive Vice President and CFO November 3, 2020, 5:00 pm ET Conference call: Dial (877) 303-6977 in the U.S. and Canada, (760) 298-5079 in all other countries Webcast login at www.mrcy.com/investor Webcast
Slide 2: Forward-looking safe harbor statement
Forward-looking safe harbor statement This presentation contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the acquisitions described herein and to fiscal 2021 business performance and beyond and t
Slide 3: Double-digit revenue growth and strong results on the bottom line
Double-digit revenue growth and strong results on the bottom line Exceeded guidance for revenue, net income, adjusted EBITDA, EPS and adjusted EPS Design wins of more than $300M in estimated lifetime value Outlook positive; raising FY21 revenue guidance Business model performing well Strat
Slide 4: Q1 and LTM FY21 results
Q1 and LTM FY21 results Notes Q1 FY21 VS. Q1 FY20 LTM FY21 VS. LTM FY20 (1) Organic revenue represents total company revenue excluding net revenue from acquisitions for the first four full quarters since the entities’ acquisition date (which Bookings down 7% Bookings up 15% excludes any intercom
Slide 5: COVID-19 update
COVID-19 update Successfully managed COVID risks for past 8+ months Protecting health, safety and livelihoods of employees Adjusting safety protocols in line with evolving science and data Significant investment in weekly onsite PCR testing; now at 7 sites Testing key to ongoing employee s
Slide 6: Industry outlook
Industry outlook Delivered strong organic revenue growth Near record level of backlog, robust opportunity pipeline and high activity level Sensor and effector mission systems and C4I modernization driving growth Uniquely positioned to provide DoD trusted, secure microelectronics solutions
Slide 7: Business outlook
Business outlook Targeting and participating in large, growing and well-funded markets Seeing significant increase in M&A activity; robust pipeline Perceived as great buyer due to purpose, culture, values, strategy and performance Pursuing deals that are strategically aligned around multiple
Slide 8: Summary – Plan to continue generating shareholder value
Summary – Plan to continue generating shareholder value Drive ~10% average organic revenue growth supplemented by strategic M&A Invest in people, technologies, facilities, manufacturing assets, business systems Insource more manufacturing; drive stronger operating performance Grow revenues f
Slide 9: Q1 FY21 vs. Q1 FY20
Q1 FY21 vs. Q1 FY20 Notes In $ millions, except percentage and per share data Q1 FY20(3)(4) Q1 FY21(3)(5) CHANGE (1) Organic revenue represents total company revenue excluding net revenue from acquisitions for the first four full quarters since Bookings $215.7 $200.7 the entities’ acquisition date (
Slide 10: Balance sheet
Balance sheet Notes As of (1) Rounded amounts used. (In $ millions)(1) 9/27/19 12/27/19 3/27/20 7/3/20 10/2/20 ASSETS Cash & cash equivalents $161.3 $182.0 $407.1 $226.8 $239.1 Accounts receivable, net 177.5 193.4 214.0 210.7 207.8 Inventory, net 148.5 153.6 161.9 178.1 206.0 PP&E, net 65.9 72.7 78.
Slide 11: Cash flow summary
Cash flow summary Notes For the Fiscal Quarters Ended (1) Rounded amounts used. (2) Non-GAAP, see (In $ millions)(1) 9/27/19 12/27/19 3/27/20 7/3/20 10/2/20 reconciliation table. Net Income $19.2 $15.7 $23.6 $27.2 $15.8 Depreciation and amortization 11.4 12.5 12.7 12.8 13.0 Gain on investment - - (3
Slide 12: Q2 FY21 guidance
Q2 FY21 guidance Notes (1) Q2 FY20 figures are as reported in Q2 FY20(1) Q2 FY21(2)(5) the Company’s earnings release In $ millions, except percentage and per share data CHANGE dated January 28, 2020. (2) The guidance included herein is from the Company’s earnings release dated November 3, 2020. Gui
Slide 13: FY21 annual guidance
FY21 annual guidance Notes (1) FY20 figures are as reported in the In $ millions, except percentage and per share data FY20(1) FY21(2)(5) CHANGE Company’s earnings release dated August 4, 2020. The full fiscal period ended July 3, 2020 included $15.5M, or $0.28 per share, and $5.6M, or $0.10 per sha
Slide 14: Summary
Summary Strong financial performance in Q1 and solid start to the fiscal year Revenue, net income, adjusted EBITDA, EPS and adjusted EPS exceed guidance Investments in inventory and precautionary COVID testing to mitigate potential impacts Well positioned with a flexible capital structure to
Slide 15: Appendix
APPENDIX
Slide 16: Adjusted EPS reconciliation
Adjusted EPS reconciliation (2)(5) (2)(5) Notes Q2 FY21 FY21 (1) Per share information is presented on (In thousands, except per share data) Q1 FY20 Q1 FY21 LTM Q1 FY20 LTM Q1 FY21 Low High Low High a fully diluted basis. (2) Rounded amounts used. (1) (3) Effective as of the third quarter of Earning
Slide 17: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation (1)(2) (1)(2) Notes Q2 FY21 FY21 (1) Rounded amounts used. (In thousands) Q1 FY20 Q1 FY21 LTM Q1 FY20 LTM Q1 FY21 Low High Low High (2) Effective as of July 1, 2019, the Company’s fiscal year has changed to Net Income $ 19,247 $ 15,798 $ 58,543 $ 82,263 $ 11,900 $ 13,4
Slide 18: Free cash flow and organic revenue reconciliation
Free cash flow reconciliation (In thousands) Q1 FY20 Q1 FY21 LTM Q1 FY20 LTM Q1 FY21 Cash provided by operating activities $ 24,310 $ 22,929 $ 101,798 $ 113,805 Purchases of property and equipment (9,595) (10,978) (32,559) (44,677) Free cash flow $ 14,715 $ 11,951 $ 69,239 $ 69,128 Organic revenue r