Transdigm Group Inc. · NYSE:TDG
Transdigm — Q3 2021 Earnings Presentation
13 slides from Transdigm's earnings presentation, Aug 10, 2021
Slide 1: FY 2021 Q3 Earnings Call
FY 2021 Q3 Earnings Call August 10, 2021
Slide 2: Agenda
Agenda TransDigm Overview and Highlights Nick Howley Chairman Operating Performance, Market Review Kevin Stein and Outlook President and CEO Financial Results Mike Lisman 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 and sole source products High free cash flow Proprietary Revenues (1) Pro Forma Revenues (1) Pro Forma EBITDA As Defined (1) Non‐ Proprietary Comm OEM OEM 29%
Slide 5: 2021 Q3 Financial Performance by Markets – Pro Forma
2021 Q3 Financial Performance by Markets – Pro Forma Highlights Q3 Review – Pro Forma Revenues⁽¹⁾ 25% Biz Actual vs. Prior Year Jet/Heli Commercial OEM: Q3 YTD Q3 ’21 Commercial Transport Revenue Down 2% 75% Com Transport Commercial OEM: Up 1% Down 32% Q3 ’21 Business Jet/Helicopter Revenue Up 6
Slide 6: Third Quarter 2021 Select Financial Results
Third Quarter 2021 Select Financial Results ($ in millions, except per share amounts) Q3 FY Q3 FY 2021 2020 Revenue $1,218 $1,022 19% Increase Gross Profit $655 $491 • Favorable Aftermarket vs. OEM sales mix 53.8% 48.0% • Lower COVID‐19 restructuring costs • Increase in loss contract amortization SG
Slide 7: Fiscal 2021 Select Financial Assumptions
Fiscal 2021 Select Financial Assumptions Select Financial Assumptions for Fiscal 2021 Prior Assumptions (issued May 2021) Updated Assumptions Defense Revenue Growth MSD% Growth No change Full Year EBITDA Margin ≈ 44% No change (Highly Dependent on Pace of Commercial Aftermarket Recovery) Full Year N
Slide 8: Capital Structure
Capital Structure Pro Forma Capital Structure ($ in millions) Actual 7/3/21 Rate Cash $4,529 $760mm revolver $200 L + 2.500% $350mm AR securitization facility 350 L + 1.200% First lien term loan E due 2025 2,182 L + 2.250% First lien term loan F due 2025 3,462 L + 2.250% First lien term loan G due 2
Slide 9: Debt Maturity Profile
Debt Maturity Profile Debt Maturity Profile ($MM) $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2021 2022 2023 2024 2025 2026 2027 2028 2029 Secured Term Loans Secured Notes Sr Sub Notes Note: $350M AR Securitization renews annually in July 8
Slide 10: Appendix: Reconciliation of Income (Loss) from Continuing Operations to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Income (Loss) from Continuing Operations to EBITDA and EBITDA As Defined Thirteen Week Periods Ended Thirty‐Nine Week Periods Ended ($ in millions) July 3, 2021 June 27, 2020 July 3, 2021 June 27, 2020 Income (loss) from continuing operations $ 317 $ (5) $ 473 $ 552 Adjus
Slide 11: 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 Thirty‐Nine Week Periods Ended Reported Earnings (Loss) Per Share July 3, 2021 June 27, 2020 July 3, 2021 June 27, 2020 Income (loss) from continuing operations $ 317 $ (5)
Slide 12: Appendix: Reconciliation of GAAP EPS to Adjusted EPS
Appendix: Reconciliation of GAAP EPS to Adjusted EPS Thirteen Week Periods Ended Thirty‐Nine Week Periods Ended July 3, 2021 June 27, 2020 July 3, 2021 June 27, 2020 GAAP earnings (loss) per share from continuing operations $ 5.43 $ (0.09) $ 6.83 $ 6.38 Adjustments to earnings (loss) per share: Divi
Slide 13: Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined Thirty‐Nine Week Periods Ended ($ in millions) July 3, 2021 June 27, 2020 Net cash provided by operating activities $ 624 $ 991 Adjustments: Changes in assets and liabilities, net of effects from ac