Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q2 2011 Earnings Presentation
11 slides from Huntington Ingalls Industries's earnings presentation, Aug 11, 2011
Slide 1: Q2 2011 Earnings Presentation
Exhibit 99.2 Q2 2011 Earnings Presentation August 11, 2011 Mike Petters President and Chief Executive Officer Barb Niland Corporate Vice President, Business Management & Chief Financial Officer
Slide 2: Safe Harbor
Safe Harbor Statements in this presentation, other than statements of historical fact, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause our actual results to
Slide 3: Highlights from the Quarter
Highlights from the Quarter Total operating margin improved to 5.8% from 5.4% last year (after adjusting for the Avondale charge)* and up sequentially from 5.0% Newport News operating margin 9.1%, consistent with last year and up sequentially from 7.1% Ingalls operating margin improved to 2.7%, up y
Slide 4: Second Quarter 2011 Consolidated Results
Second Quarter 2011 Consolidated Results Impact of Avondale charge ($115M)* Impact of Avondale charge ($113M)* Impact of Avondale charge* * See Appendix for reconciliation to the operating margin determined under GAAP 4
Slide 5: Ingalls Shipbuilding
Ingalls Shipbuilding Ingalls sales down due to lower volumes on DDG-51 program, partially offset by Impact of Avondale charge higher volume on LHA program ($115M)* Segment operating income increase due to $113 million charge last year related to Avondale. Segment operating margin increased even afte
Slide 6: Newport News Shipbuilding
Newport News Shipbuilding Newport News sales down YoY due to lower volumes on Ford & Roosevelt RCOH, partially offset by Lincoln RCOH planning effort Segment operating income down due to volume Operating margin consistent with last year 6
Slide 7: Capital Structure & Liquidity
Capital Structure & Liquidity Cash on hand was $381 million, plus $529 million available under revolving credit facility, for $910 million total liquidity Total debt was $1.87 billion at quarter-end Interest expense was $30 million, up sequentially due to new capital structure 2011 capital expenditu
Slide 8: Appendix
Huntington Ingalls Industries Appendix
Slide 9: Reconciliations
Reconciliations We make reference to “segment operating income,” “adjusted segment operating income,” “adjusted operating income” and “adjusted sales and service revenues.” Segment operating income is defined as operating income before net pension and post-retirement benefits adjustment and deferred
Slide 10: Reconciliation of Non-GAAP Measure – Segment Operating Income
Reconciliation of Non-GAAP Measure – Segment Operating Income Three Months Ended June 30 $ in millions 2011 2010 Sales and Service Revenues Ingalls $ 708 $ 714 Newport News 872 $ 913 Intersegment eliminations (17) (17) Total sales and service revenues $ 1,563 $ 1,610 Operating Income (Loss) Ingalls
Slide 11: Reconciliation of Non-GAAP Measure – Adjusted Operating Margin
Reconciliation of Non-GAAP Measure – Adjusted Operating Margin Three Months Ended June 30 $ in millions 2011 2010 Adjusted Sales and Service Revenues Ingalls $ 708 $ 714 Adjustment for Avondale wind down - 115 Adjusted Ingalls 708 829 Newport News 872 $ 913 Intersegment eliminations (17) (17) Total
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