Loar Holdings Inc. · NYSE:LOAR
Loar — Q2 2024 Earnings Presentation
14 slides from Loar's earnings presentation, August 2024
Slide 1: Loar Holdings Inc. Q2 2024 Earnings Presentation
Loar Holdings Inc. Q2 2024 Earnings Presentation Proprietary and Confidential 1
Slide 2: Agenda
Agenda • Our Value Drivers, Our Portfolio, Today’s Speakers: and Our Products • Dirkson Charles – CEO and Executive Co-Chairman of the Board of Directors • Q2 Earnings Highlights • Brett Milgrim – Executive Co- Chairman of the Board of Directors • Glenn D’Alessandro – CFO and • Revised Full Year 202
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 includes express or implied forward-looking statements. Forward-looking statements include all statements that are not historical facts including those that reflect o
Slide 4: Simple Approach to Driving Value…
Simple Approach to Driving Value… Value Drivers Net Sales $318 L $239 Launching New Products $183 $189 $165 $113 $94 $76 $39 $42 O $9 $23 Optimizing Productivity 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Adj. EBITDA $113 A Achieving Price Above Inflation $83 $63 $61 $51 $38 $32 R $
Slide 5: Our Portfolio
Our Portfolio Loar Group specializes in the design, manufacture, and sale of niche aerospace and defense components that are essential for today’s aircraft and aerospace and defense systems, across 250+ total aircraft platforms. Our business focuses on mission-critical, highly engineered solutions w
Slide 6: Our Products
Our Products Diverse Portfolio Offering With Over 15,000+ Products Offered Mission critical nature of products with high monetary and reputational cost of Angle of Attack Sensors / Systems Flight Control Computers Lap-belt Airbags 2 & 3 Point Seat Belts Water Purification Systems Waste Mgmt. Systems
Slide 7: Q2 2024 Results by End Market – Pro Forma
Q2 2024 Results by End Market – Pro Forma(1) Q2 2024 End Market Drivers Pro Forma(1) Net Sales Q2 2024 vs YTD Q2 2024 vs. Total Commercial OEM: End Market Q2 2023 YTD Q2 2023 – Increase demand for GA, business jets, and Total Commercial +11% +19% commercial aircraft OEM Total Commercial Aftermarket:
Slide 8: Q2 2024 Financial Results
Q2 2024 Financial Results Q2 Q2 $thousands 2024 2023 ∆ Net Sales 97,015 73,979 31.1% • Net sales up 17% organically • Impact of higher defense sales and continued dilutive Gross Profit 47,526 37,472 26.8% impact of an acquisition completed in the second half of Margin 49.0% 50.6% 2023 • Increase in
Slide 9: Full Year 2024 Market Assumptions - Revised
Full Year 2024 Market Assumptions - Revised Previous Revised Market Assumptions Market Assumptions Issued 5/14/24 Issued 8/13/24 • Commercial OEM – Up Low • Commercial OEM – Up Mid Double-Digits Double-Digits • Commercial Aftermarket – Up • Commercial Aftermarket – Up Mid Low Double-Digits Double-Di
Slide 10: Full Year 2024 Outlook - Revised
Full Year 2024 Outlook - Revised Previous Revised 2024 Outlook 2024 Outlook Issued 5/14/24 Issued 8/13/24 $millions except for share count & Earnings Low High $millions except for share count & Earnings Low High Per Share Per Share Net Sales $370 $374 Net Sales $374 $378 Adjusted EBITDA $132 $134 Ad
Slide 11: Full Year 2024 Outlook - Assumptions
Full Year 2024 Outlook - Assumptions Full Year 2024 Outlook Capital Expenditures ~ $11 million Full Year Interest Expense ~ $42 million Full Year Effective Tax Rate ~ 30% Depreciation and Amortization ~ $40 million Non-Cash Stock-Based ~ $10 million – up from ~$9 million Compensation Fully Diluted S
Slide 12: Appendix – Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
Appendix – Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA (in thousands unless otherwise indicated) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net income (loss) $ 7,641 $ 623 $ 9,890 $ (6,896) Adjustments: Interest expense, net 10,636 16,568 28,370 3
Slide 13: Appendix – Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA
Appendix – Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA (in thousands unless otherwise indicated) 2017(1) 12 Months October 2, 2017 Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended January 1, 2017 Year Ended Year Ended Year Ended Year Ended Year Ended Ended thro
Slide 14: Appendix – Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA
Appendix – Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA (1) For the period January 1, 2017 through October 1, 2017 (“Predecessor Period”), the Company is referred to as the “Predecessor.” For the period October 2, 2017 through December 31, 2017 (“Successor Period”), the Company