Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q3 2012 Earnings Presentation
12 slides from Huntington Ingalls Industries's earnings presentation, Nov 8, 2012
Slide 1: Q3 2012 Earnings Presentation
Q3 2012 Earnings Presentation November 8, 2012 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 Third Quarter 2012
Highlights from the Third Quarter 2012 Revenues were $1.6 billion, up 0.2% from Q3 2011 Diluted EPS of $0.26; Adjusted Diluted EPS* of $0.74 Continued strong core operating performance Newport News operating margin was 9.3%; adjusted Newport News operating margin** was 10.9% Ingalls operating margin
Slide 4: Third Quarter 2012 Consolidated Results
Third Quarter 2012 Consolidated Results * Adjusted for the non-cash workers’ compensation charge in 2012 and the non-cash goodwill impairment charge in 2011. See Appendix for reconciliation to the comparable GAAP figures. 4 ** Adjusted for the non-cash workers’ compensation charge and the non-cash t
Slide 5: Ingalls Shipbuilding
Ingalls Shipbuilding Ingalls Q3 revenues were down YoY due to lower volume on amphibious assault ships, partially offset by higher volume on surface combatants and NSCs Q3 adjusted segment operating income and margin were down YoY due to $20 million of unfavorable cumulative adjustments on LPD 22-25
Slide 6: Newport News Shipbuilding
Newport News Shipbuilding Newport News revenues were up in Q3 as compared to Q3 2011 due to higher volume on aircraft carriers Adjusted segment operating income and margin increased due to higher sales volume and the CVN-65 EDSRA resolution 6 *Adjusted for the non-cash workers’ compensation charge i
Slide 7: 2013 FAS/CAS Adjustment
2013 FAS/CAS Adjustment At September 30, 2012, YTD actual return on plan assets was approximately 11% and the 2013 FAS discount rate assumption would have been approximately 100 bps lower than 2012 2013 FAS / CAS Adjustment ($M) Actual FAS Discount Rate 2012 Asset 3.75% 4.00% 4.25% 4.50% 4.75% 5.00%
Slide 8: Appendix
Appendix Hi
Slide 9: Reconciliations
Reconciliations We make reference to “segment operating income,” “segment operating margin,” “adjusted segment operating income,” “adjusted segment operating margin,” “adjusted operating income,” adjusted operating margin,” “adjusted net earnings,” and “adjusted diluted earnings per share.” Segment
Slide 10: Reconciliation of Non-GAAP Measure – Segment Operating Income and Segment Operating Margin
Reconciliation of Non-GAAP Measure – Segment Operating Income and Segment Operating Margin Three Months Ended September 30 $ in millions 2012 2011 Sales and Service Revenues Ingalls $ 670 $ 740 Newport News 944 $ 876 Intersegment eliminations (18) (23) Total sales and service revenues $ 1,596 $ 1,59
Slide 11: Reconciliation of Non-GAAP Measure – Adjusted Figures
Reconciliation of Non-GAAP Measure – Adjusted Figures Three Months Ended September 30 $ in millions 2012 2011 Adjusted Operating Income (Loss) Operating Income (Loss) $ 66 $ (190) As a percentage of sales 4.1% (11.9%) Non-segment factors affecting adjusted operating income FAS/CAS Adjustment 19 1 De
Slide 12: Reconciliation of Non-GAAP Measure – Adjusted Figures (continued)
Reconciliation of Non-GAAP Measure – Adjusted Figures (continued) Three Months Ended September 30 $ in millions 2012 2011 Adjusted Net Earnings (Loss) Net Earnings (Loss) $ 13 $ (248) (1) Adjustment fornon-cashworkers'compensation charge 16 - Adjustment for non-cash goodwill impairment - 300 Adjustm
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