Mercury Systems Inc · NASDAQ:MRCY

Mercury Systems — Q2 FY2022 Earnings Presentation

20 slides from Mercury Systems's earnings presentation, Feb 1, 2022

  1. Slide 1: Second Quarter Fiscal Year 2022 Financial Results

    © Mercury Systems, Inc. SECOND QUARTER FISCAL YEAR 2022 FINANCIAL RESULTS Mark Aslett President and CEO Michael Ruppert Executive Vice President and CFO February 1, 2022, 5:00 pm ET Webcast login at www.mrcy.com/investor Webcast replay available by 7:00 p.m. ET February 1, 2022

  2. Slide 2: Forward-looking safe harbor statement

    © Mercury Systems, Inc.2 Does not contain Technical Data. //No Tech Data// Forward-looking safe harbor statement This presentation contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the acquisition

  3. Slide 3: Delivered solid results for Q2 with strong outlook for FY22 and beyond

    © Mercury Systems, Inc.3 Does not contain Technical Data. //No Tech Data// Delivered solid results for Q2 with strong outlook for FY22 and beyond  Bookings increased substantially vs. low water mark in Q1  Anticipate even stronger bookings in H2  Expect significant bookings increase for FY22 year

  4. Slide 4: Q2 and LTM FY22 results

    © Mercury Systems, Inc.4 Does not contain Technical Data. //No Tech Data// Q2 and LTM FY22 results  Bookings increased 13%  Backlog increased 1%  Revenue up 5%  Organic revenue(1) down 13%  GAAP net loss ($2.6M)  Adjusted EBITDA down 16%  Op cash of $6.8M  FCF of ($1.2M)  Bookings decreased

  5. Slide 5: FY22 business outlook

    © Mercury Systems, Inc.5 Does not contain Technical Data. //No Tech Data// FY22 business outlook  Expect ~10% total revenue growth exceeding $1B, record adjusted EBITDA  Outlook reflects slightly more conservative organic revenue growth reflecting industry headwinds  Anticipate substantial H2 boo

  6. Slide 6: 1MPACT: a 4-year effort to achieve full growth and adj. EBITDA potential

    © Mercury Systems, Inc.6 Does not contain Technical Data. //No Tech Data// 1MPACT: a 4-year effort to achieve full growth and adj. EBITDA potential  Proactively launched 1MPACT to lay foundation for next phase of value creation at scale  Launch of 1MPACT not related to industry challenges at the t

  7. Slide 7: M&A update

    © Mercury Systems, Inc.7 Does not contain Technical Data. //No Tech Data// M&A update  Track record of successful acquisitions and strong balance sheet positions us well for future M&A  Strong pipeline with multiple opportunities in line with strategy  Continuing disciplined approach in deal purs

  8. Slide 8: Strategy and technologies aligned with major industry drivers and trends

    © Mercury Systems, Inc.8 Does not contain Technical Data. //No Tech Data// Strategy and technologies aligned with major industry drivers and trends  Expect total company revenue to continue growing faster than overall defense spending  Targeting and participating in larger, faster growing defense

  9. Slide 9: Q2 FY22 vs. Q2 FY21

    © Mercury Systems, Inc.9 Does not contain Technical Data. //No Tech Data// Q2 FY22 vs. Q2 FY21 In $ millions, except percentage and per share data Q2 FY21(3) Q2 FY22(3) CHANGE Bookings Book-to-Bill $210.1 1.00 $236.9 1.08 13% Backlog 12-Month Backlog $945.3 598.0 $953.7 572.4 1% Revenue Organic Reve

  10. Slide 10: Balance sheet

    © Mercury Systems, Inc.10 Does not contain Technical Data. //No Tech Data// Balance sheet As of (In $ millions)(1) 1/1/21 4/2/21 7/2/21 10/1/21 12/31/21 ASSETS Cash & cash equivalents $109.1 $121.9 $113.8 $95.8 $105.2 Restricted cash 61.6 - - - - Accounts receivable, net 240.2 264.0 291.7 301.2 320.

  11. Slide 11: Cash flow summary

    © Mercury Systems, Inc.11 Does not contain Technical Data. //No Tech Data// Cash flow summary For the Fiscal Quarters Ended (In $ millions)(1) 1/1/21 4/2/21 7/2/21 10/1/21 12/31/21 Net Income (Loss) $12.7 $15.6 $17.9 ($7.1) ($2.6) Depreciation and amortization 13.3 20.0 20.8 21.5 24.1 Gain on invest

  12. Slide 12: Q3 FY22 guidance

    © Mercury Systems, Inc.12 Does not contain Technical Data. //No Tech Data// Q3 FY22 guidance In $ millions, except percentage and per share data Q3 FY21(1) Q3 FY22(2)(5) CHANGE Revenue $256.9 $245.0 - $255.0 (5%) – (1%) GAAP Net Income $15.6 $8.2 - $10.4 (48%) – (33%) GAAP EPS $0.28 $0.15 - $0.19 (4

  13. Slide 13: FY22 annual guidance

    © Mercury Systems, Inc.13 Does not contain Technical Data. //No Tech Data// FY22 annual guidance In $ millions, except percentage and per share data FY21(1) FY22(2)(5) CHANGE Revenue $924.0 $1,000.0 - $1,030.0 8% – 11% GAAP Net Income $62.0 $44.8 - $50.1 (28%) – (19%) GAAP EPS $1.12 $0.80 - $0.90 (2

  14. Slide 14: Implied Q4 FY22 guidance

    © Mercury Systems, Inc.14 Does not contain Technical Data. //No Tech Data// Implied Q4 FY22 guidance Notes (1) H1 FY22 figures are as reported in the Company’s earnings release dated February 1, 2022. (2) The guidance included herein is from the Company’s earnings release dated February 1, 2022. (3)

  15. Slide 15: Implied Q4 FY22 guidance

    © Mercury Systems, Inc.15 Does not contain Technical Data. //No Tech Data// Implied Q4 FY22 guidance  Record Q4 financial performance expected across all key metrics  Current backlog and expected Q3 bookings provide strong visibility into Q4  Sole source, recurring and well-funded programs drivin

  16. Slide 16: Summary

    © Mercury Systems, Inc.16 Does not contain Technical Data. //No Tech Data// Summary  Delivered solid results for Q2  Expect strong FY23 as organic growth returns to more normal levels  1MPACT expected to drive margin expansion  Secure processing, trusted microelectronics, and open mission system

  17. Slide 17: Appendix

    17 APPENDIX

  18. Slide 18: Adjusted EPS reconciliation

    © Mercury Systems, Inc.18 Does not contain Technical Data. //No Tech Data// Adjusted EPS reconciliation Notes (1) Per share information is presented on a fully diluted basis. (2) Rounded amounts used. (3) Impact to income taxes is calculated by recasting income before income taxes to include the add

  19. Slide 19: Adjusted EBITDA reconciliation

    © Mercury Systems, Inc.19 Does not contain Technical Data. //No Tech Data// Adjusted EBITDA reconciliation Notes (1) Rounded amounts used. (2) All references in this presentation to the third quarter of fiscal 2022 and full fiscal 2022 are to the quarter ending April 1, 2022 and the 52-week period e

  20. Slide 20: Free cash flow reconciliation; Organic revenue reconciliation

    © Mercury Systems, Inc.20 Does not contain Technical Data. //No Tech Data// Free cash flow reconciliation Organic revenue reconciliation Notes (1) Organic revenue represents total company revenue excluding net revenue from acquisitions for the first four full quarters since the entities’ acquisition

Mercury Systems — Q2 FY2022 Earnings Presentation on 6ix