Transdigm Group Inc. · NYSE:TDG
Transdigm — Q3 2022 Earnings Presentation
14 slides from Transdigm's earnings presentation, Aug 9, 2022
Slide 1: FY 2022 Q3 Earnings Call
FY 2022 Q3 Earnings Call August 9, 2022
Slide 2: Agenda
Agenda TransDigm Overview, Highlights and Outlook Kevin Stein President and CEO Market Review Jorge L. Valladares III COO Operating Performance and 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 products High free cash flow Proprietary Revenues (1) Pro Forma Revenues (1) Pro Forma EBITDA As Defined (1) Non‐ Comm OEM Proprietary 25% OEM Defense 50% Prop
Slide 5: 2022 Q3 Financial Performance by Markets – Pro Forma
2022 Q3 Financial Performance by Markets – Pro Forma Highlights Q3 Review – Pro Forma Revenues⁽¹⁾ Actual vs. Prior Year 25% Biz Q3 YTD Jet/Heli Commercial OEM: Q3 ’22 Commercial Transport Revenue Up 18% Commercial OEM: Up 23% Up 22% 75% Com Transport Q3 ’22 Business Jet/Helicopter Revenue Up 32%
Slide 6: Third Quarter 2022 Select Financial Results
Third Quarter 2022 Select Financial Results ($ in millions, except per share amounts) Q3 FY Q3 FY 2022 2021 Revenue $1,398 $1,218 15% Increase Gross Profit $816 $655 • Favorable Aftermarket vs. OEM sales mix • Fixed overhead spread over higher production volumes 58.4% 53.8% 4.6% SG&A $184 $172 • Rea
Slide 7: Fiscal 2022 Select Financial Assumptions
Fiscal 2022 Select Financial Assumptions Select Financial Assumptions for Fiscal 2022 Prior Assumptions (issued May 2022) Updated Assumptions Defense Revenue Growth LSD% Growth Flat Full Year EBITDA Margin Approaching 48% Surpassing 48% (Highly Dependent on Pace of Commercial (Highly Dependent on Pa
Slide 8: Capital Structure
Capital Structure Pro Forma Capital Structure ($ in millions) Actual 7/2/22 Rate Cash $3,808 $810mm revolver – L + 2.50% $350mm AR securitization facility 350 S +1.30% First lien term loan E due 2025 2,160 L + 2.25% First lien term loan F due 2025 3,427 L + 2.25% First lien term loan G due 2024 1,73
Slide 9: Interest Rate Sensitivity
Interest Rate Sensitivity • Interest rates on TDG’s $20Bn of gross Debt is 85% fixed rate through calendar year 2025 • Achieved via a combination of interest rate caps and swaps • Significantly reduces near-term exposure to any LIBOR rate increases $ in millions Current 3 Current FY 22 Month Assumpt
Slide 10: 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 2022 2023 2024 2025 2026 2027 2028 2029 Secured Term Loans Secured Notes Sr Sub Notes Note: $350M AR Securitization renews annually in July 9
Slide 11: Appendix: Reconciliation of Income from Continuing Operations to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Income from Continuing Operations to EBITDA and EBITDA As Defined Thirteen Week Periods Ended Thirty‐Nine Week Periods Ended ($ in millions) July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Income from continuing operations $ 239 $ 317 $ 601 $ 473 Adjustments: Deprecia
Slide 12: 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 Per Share July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Income from continuing operations $ 239 $ 317 $ 601 $ 473 Less
Slide 13: 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 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 GAAP earnings per share from continuing operations $ 4.10 $ 5.43 $ 9.42 $ 6.83 Adjustments to earnings per share: Dividend & dividend eq
Slide 14: 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 2, 2022 July 3, 2021 Net cash provided by operating activities $ 675 $ 624 Adjustments: Changes in assets and liabilities, net of effects from acq