Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q3 2013 Earnings Presentation
12 slides from Huntington Ingalls Industries's earnings presentation, Nov 7, 2013
Slide 1: Q3 2013 Earnings Presentation
Q3 2013 Earnings Presentation November 7, 2013 Mike Petters President and Chief Executive Officer Barb Niland Corporate Vice President, Business Management and Chief Financial Officer EXHIBIT 99.2
Slide 2: 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 differ mate
Slide 3: Highlights from the Third Quarter
1 Non-GAAP metric that excludes the impact of hurricane insurance recoveries and the Gulfport closure impact. See appendix for reconciliation. 2 Non-GAAP metrics that exclude the impact of hurricane insurance recoveries and the Gulfport closure impact in 2013 and the impact of the non-cash workers'
Slide 4: Third Quarter 2013 Consolidated Results
1 Non-GAAP metric that excludes the impact of hurricane insurance recoveries and the Gulfport closure impact. See appendix for reconciliation. 2 Non-GAAP metrics that exclude the impact of hurricane insurance recoveries and the Gulfport closure impact in 2013 and the impact of the non-cash workers'
Slide 5: Ingalls Shipbuilding
$ 1 $49 $ 10 $ 20 $ 0 $ 10 $ 20 $ 30 $ 40 $ 50 $ 60 Q3 2012 Q3 2013 ($ in mi llio ns ) Operating Income GAAP Adjusted $670 $ 639 $ 667 $- $100 $200 $300 $40 $500 $600 $700 $800 Q3 2012 Q3 2013 ($ in mi llio ns ) Segment Revenues GAAP Adjusted Ingalls Shipbuilding 5 Ingalls Q3 revenues were down Yo
Slide 6: Newport News Shipbuilding
9.3% 9.1% 10.9% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% Q3 2012 Q3 2013 Operating Margin GAAP Adjusted $88 $93 $103 $50 $60 $70 $80 $90 $100 $110 Q3 2012 Q3 2013 ($ in m illi on s) Operating Income GAAP Adjusted Newport News Shipbuilding 6 Newport News Q3 revenues were up YoY due to higher sale
Slide 7: 2014 FAS/CAS Adjustment - Income
2014 FAS/CAS Adjustment - Income 7 As of September 30, 2013, YTD actual return on plan assets was approximately 5.5% and the FAS discount rate was approximately 85 bps higher than year end 2012 4.00% 56 62 69 77 86 92 5.00% 61 68 75 82 90 97 6.00% 66 73 80 88 95 101 7.00% 72 78 85 93 99 104 8.00%
Slide 8: Appendix
U n sa ve d Docum e n t / 1 2 /2 9 /1 0 / 1 0 :0 2 Appendix
Slide 9: Reconciliations
Reconciliations 9 We make reference to “segment operating income,” “segment operating margin,” “adjusted sales and service revenues,” “adjusted segment operating income,” “adjusted segment operating margin,” “adjusted total operating income,” adjusted operating margin,” “adjusted net earnings,” and
Slide 10: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 10 Three Months Ended September ($ in millions) 2013 2012 Sales and Service Revenues Ingalls 639$ 670$ Newport News 1,018 944 Intersegment eliminations (20) (18) Total Sales and Service Revenues 1,637 1,596 Segment Operating Income Ingalls 49 1 As a percentage of
Slide 11: Reconciliation of Non-GAAP Measures (continued)
Reconciliation of Non-GAAP Measures (continued) 11 Three Months Ended September 30 $ in millions 2013 2012 Adjusted Sales and Service Revenues Ingalls 639$ 670$ Adjustment for hurricane insurance recoveries 37 - Adjustment for Gulfport closure impact (9) - Adjusted Ingalls 667 670 Newport News 1,018
Slide 12: Reconciliation of Non-GAAP Measures (continued)
Reconciliation of Non-GAAP Measures (continued) 12 1 Tax effected at 35% federal statutory tax rate. Three Months Ended September 30 $ in millions 2013 2012 Adjusted Net Earnings (Loss) Net Earnings (Loss) 69$ 13$ Adjustment for hurricane insurance recoveries(1) (30) - Adjustment for Gulfport closur
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