Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q2 2019 Earnings Presentation
15 slides from Huntington Ingalls Industries's earnings presentation, Aug 1, 2019
Slide 1: Q2 2019 Earnings Presentation
Exhibit 99.2 Q2 2019 Earnings Presentation August 1, 2019 Mike Petters President and Chief Executive Officer Chris Kastner Executive Vice President, Business Management and Chief Financial Officer
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements 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
Slide 3: HII Q2 2019 Highlights
3 HII Q2 2019 Highlights Revenues were $2.2 billion in the quarter Diluted EPS was $3.07 in the quarter Total Backlog $50 Total backlog at the end of the quarter was $39.4 billion $39.4 $40 Ingalls Shipbuilding o Completed acceptance trials and delivery of $30 National Security Cutter Midget
Slide 4: HII Q2 2019 Consolidated Results
4 HII Q2 2019 Consolidated Results Revenues $2,500 HII’s revenues up 8.3% YOY due to higher volume $2,188 $2,020 at Newport News and growth at Technical $2,000 Solutions driven by recent acquisitions $1,500 HII’s operating income and margin declined YOY due to lower segment operating income and
Slide 5: HII Q2 2019 Capital Deployment
5 HII Q2 2019 Capital Deployment Cash Flow Generation Shareholder Distributions Total $300 $300 $239 $279 $250 $200 $154 $200 $100 $150 $247 $0 Total (in (in millions) (in (in millions) $100 $88 ($100) ($44) $52 ($85) ($91) $50 ($135) $32 $36 ($200) $0 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Cash from Opera
Slide 6: Ingalls Shipbuilding Q2 2019 Results
6 Ingalls Shipbuilding Q2 2019 Results Revenues $700 Ingalls revenues down YOY due to lower volumes $629 $622 on the NSC, LHA and LPD programs $600 $500 Ingalls segment operating income and margin $400 down YOY due to lower risk retirement on the LPD program and recoveries related to a settlemen
Slide 7: Newport News Shipbuilding Q2 2019 Results
7 Newport News Shipbuilding Q2 2019 Results Revenues Newport News revenues up 7.1% YOY due to $1,400 $1,267 higher volumes in aircraft carriers and Navy $1,183 $1,200 nuclear support services $1,000 Newport News segment operating income and $800 margin down YOY due to performance on the VCS $600
Slide 8: Technical Solutions Q2 2019 Results
8 Technical Solutions Q2 2019 Results Revenues $400 Technical Solutions revenues up 38.3% YOY due $350 $336 to higher mission driven innovative solutions $300 revenues following the acquisitions of G2 and $243 Fulcrum, as well as higher oil and gas, fleet $250 support and nuclear and environmental
Slide 9: Upcoming Program Milestones
Upcoming Program Milestones 9 Second Half of 2019 o Ingalls o Manufacturing progress on DDG 125 (Jack H. Lucas) o Delivery of LHA 7 (Tripoli) o Late 2019 to early 2020 o Launch of NSC 9 (Stone) o Newport News o Undocking of CVN 73 (George Washington) o Launch of CVN 79 (John F. Kennedy) o Delivery
Slide 10: Appendix
10 Appendix
Slide 11: Non-GAAP Measures Definitions
11 Non-GAAP Measures Definitions We make reference to “segment operating income,” “segment operating margin” and “free cash flow.” We internally manage our operations by reference to “segment operating income” and “segment operating margin,” which are not recognized measures under GAAP. When analyzi
Slide 12: Non-GAAP Measures Definitions Cont'd
12 Non-GAAP Measures Definitions Cont’d Segment operating income is defined as operating income for the relevant segment(s) before the Operating FAS/CAS Adjustment and non-current state income taxes. Segment operating margin is defined as segment operating income as a percentage of sales and service
Slide 13: Non-GAAP Reconciliations – Segment Operating Income & Segment Operating Margin
13 Non-GAAP Reconciliations – Segment Operating Income & Segment Operating Margin Three Months Ended Six Months Ended June 30 June 30 ($ in millions) 2019 2018 2019 2018 Ingalls revenues 622 629 1,206 1,214 Newport News revenues 1,267 1,183 2,532 2,265 Technical Solutions revenues 336 243 593 476 In
Slide 14: Non-GAAP Reconciliation – Free Cash Flow
14 Non-GAAP Reconciliation – Free Cash Flow Three Months Ended Six Months Ended June 30 June 30 ($ in millions) 2019 2018 2019 2018 Net cash provided by (used in) operating activities (44) 239 (33) 359 Less capital expenditures: Capital expenditure additions (124) (102) (234) (177) Grant proceeds fo
Slide 15: Huntington Ingalls Industries
Huntington Ingalls Industries Hard Stuff Done Right ™
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