Huntington Ingalls Industries, Inc. · NYSE:HII

Huntington Ingalls Industries — Q1 2019 Earnings Presentation

14 slides from Huntington Ingalls Industries's earnings presentation, May 2, 2019

  1. Slide 1: Q1 2019 Earnings Presentation

    Exhibit 99.2 Q1 2019 Earnings Presentation May 2, 2019 Mike Petters President and Chief Executive Officer Chris Kastner Executive Vice President, Business Management and Chief Financial Officer

  2. Slide 2: Forward-Looking Statements

    2 Forward-Looking Statements Exhibit 99.2 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 cou

  3. Slide 3: HII Q1 2019 Highlights

    3 HII Q1 2019 Highlights Exhibit 99.2  Revenues were $2.1 billion in the quarter  Diluted EPS was $2.85 in the quarter  Total backlog at the end of the quarter was $40.6 billion; new contract awards in the quarter totaled $19.6 billion Total Backlog $50  Ingalls Shipbuilding $40.6 o Awarded $1.5

  4. Slide 4: HII Q1 2019 Consolidated Results

    4 HII Q1 2019 Consolidated Results Exhibit 99.2 Revenues $2,500  HII’s revenues up 11.0% YOY due to higher $2,080 volume at Newport News and growth at Technical $2,000 $1,874 Solutions driven by recent acquisitions $1,500  HII’s operating income and margin declined YOY due to an unfavorable change

  5. Slide 5: HII Q1 2019 Capital Deployment

    5 HII Q1 2019 Capital Deployment Exhibit 99.2 Cash Flow Generation Shareholder Distributions $150 $120 $250 Total $198 $100 $200 $47 $50 $11 $150 $0 $166 Total $100 $72 (in (in millions) ($50) (in millions) ($63) $36** ($100) ($73) ($74) $50 $32 $36 ($150) $0 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Cash fro

  6. Slide 6: Ingalls Shipbuilding Q1 2019 Results

    6 Ingalls Shipbuilding Q1 2019 Results Exhibit 99.2 Revenues  $750 Ingalls revenues flat YOY due to lower volumes on the DDG program, offset by higher volumes on the $585 $584 $600 LPD, LHA and NSC programs $450  Ingalls segment operating income and margin down YOY due to lower risk retirement on

  7. Slide 7: Newport News Shipbuilding Q1 2019 Results

    7 Newport News Shipbuilding Q1 2019 Results Exhibit 99.2 Revenues  Newport News revenues up 16.9% YOY due to $1,500 higher volume in aircraft carriers, Navy nuclear $1,265 support services and submarines $1,082 $1,000  Newport News segment operating income and margin up YOY due to higher volumes n

  8. Slide 8: Technical Solutions Q1 2019 Results

    8 Technical Solutions Q1 2019 Results Exhibit 99.2 Revenues  $300 Technical Solutions revenues up 10.3% YOY due $257 to higher mission driven innovative solutions $250 $233 revenues following the acquisitions of G2 and $200 Fulcrum, as well as higher oil and gas revenues, partially offset by lower

  9. Slide 9: Appendix

    9 Exhibit 99.2 Appendix

  10. Slide 10: Non-GAAP Measures Definitions

    10 Non-GAAP Measures Definitions Exhibit 99.2 We make reference to “segment operating income,” “segment operating margin,” and “free cash flow.” We internally manage our operations by reference to “segment operating income” and “segment operating margin,” which are not recognized measures under GAAP

  11. Slide 11: Non-GAAP Measures Definitions Cont’d

    11 Non-GAAP Measures Definitions Cont’d Exhibit 99.2 Segment operating income is defined as operating income for the relevant segment(s) before the Operating FAS/CAS Adjustment and non-current state income taxes. Segment operating margin is defined as segment operating income as a percentage of sale

  12. Slide 12: Non-GAAP Reconciliations – Segment Operating Income & Margin

    12 Non-GAAP Reconciliations – Segment Operating Exhibit 99.2 Income & Segment Operating Margin Three Months Ended March 31 ($ in millions) 2019 2018 Ingalls revenues 584 585 Newport News revenues 1,265 1,082 Technical Solutions revenues 257 233 Intersegment eliminations (26) (26) Sales and Service R

  13. Slide 13: Non-GAAP Reconciliation – Free Cash Flow

    13 Non-GAAP Reconciliation – Free Cash Flow Exhibit 99.2 Three Months Ended March 31 ($ in millions) 2019 2018 Net cash provided by operating activities 11 120 Less capital expenditures: Capital expenditure additions (110) (75) Grant proceeds for capital expenditures 36 2 Free cash flow (63) 47 13

  14. Slide 14: Huntington Ingalls Industries

    Exhibit 99.2 Huntington Ingalls Industries Hard Stuff Done Right ™

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