Slide 1: Fourth Quarter and Fiscal Year 2022 Financial Results
FOURTH QUARTER AND FISCAL YEAR 2022 FINANCIAL RESULTS Mark Aslett President and CEO Michael Ruppert Executive Vice President and CFO August 2, 2022, 5:00 pm ET Webcast login at www.mrcy.com/investor Webcast replay available by 7:00 p.m. ET August 2, 2022 © Mercury Systems, Inc.
Slide 2: Forward-looking safe harbor statement
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 acquisitions described herein and to fiscal 2023 business performance and beyond and t
Slide 3: Delivered strong Q4 and fiscal 2022 results
Delivered strong Q4 and fiscal 2022 results Record Q4 bookings, backlog and revenue New business activity remains high with $680M in design win LTV in Q4, $1.6B in FY22 Positive book-to-bill, record bookings and strong backlog with FY22 revenue growth of 7% Headwinds are supply and timing-re
Slide 4: FY23 and 5-year overview
FY23 and 5-year overview Demand environment is strong and getting stronger, exiting with 1.14 book-to-bill, record backlog Expect shift to tailwinds as defense spending grows and supply chains improve 5-year plan intact; targeting high-single to low-double digit organic revenue growth Possib
Slide 5: FY23 business outlook
FY23 business outlook Forecast double-digit bookings growth, higher backlog, positive book-to-bill for FY23 Strong support for increased defense spending; expect budget delays due to mid-term elections Labor market conditions improved; inflation and supply chain effects likely to continue in F
Slide 6: 1MPACT: a journey to achieve full growth and adj. EBITDA potential
1MPACT: a journey to achieve full growth and adj. EBITDA potential Began journey ~12 months ago with goal of amplifying value at scale over time Expect to generate $30M-$50M of incremental adj. EBITDA by FY27 Continue to pivot 1MPACT to areas that mitigate risk, deliver most immediate financia
Slide 7: Q4 FY22 vs. Q4 FY21
Q4 FY22 vs. Q4 FY21 Notes In $ millions, except percentage and per share data Q4 FY21(3) Q4 FY22(3) CHANGE (1) Organic revenue represents total company revenue excluding net revenue from acquisitions for the first four full quarters since Bookings $260.2 $331.5 the entities’ acquisition date 27% (wh
Slide 8: FY22 vs. FY21
FY22 vs. FY21 Notes In $ millions, except percentage and per share data FY21 FY22(3) CHANGE (1) Organic revenue represents total company revenue excluding net revenue from acquisitions for the first four full Bookings $881.2 $1,063.1 quarters since the entities’ 0.95 1.08 21% acquisition date (which
Slide 9: Balance sheet
Balance sheet Notes As of (1) Rounded amounts used. (In $ millions)(1) 7/2/21 10/1/21 12/31/21 4/1/22 7/1/22 ASSETS Cash & cash equivalents $113.8 $95.8 $105.2 $91.7 $65.7 Accounts receivable, net 291.7 301.2 320.1 367.1 447.9 Inventory, net 221.6 234.4 251.3 259.6 270.3 PP&E, net 128.5 128.7 127.4
Slide 10: Cash flow summary
Cash flow summary Notes For the Fiscal Quarters Ended (1) Rounded amounts used. (2) Non-GAAP, see (In $ millions)(1) 7/2/21 10/1/21 12/31/21 4/1/22 7/1/22 reconciliation table. Net Income (Loss) $17.9 ($7.1) ($2.6) $4.1 $16.9 Depreciation and amortization 20.8 21.5 24.1 24.5 23.4 Other non-cash item
Slide 11: FY23 annual guidance
FY23 annual guidance Notes In $ millions, except percentage and per share data FY22(1) FY23(2)(5) CHANGE (1) FY22 figures are as reported in the Company’s earnings release dated August 2, 2022. (2) The guidance included herein is from the Company’s earnings release dated Revenue $988.2 $1,000.0 - $1
Slide 12: Q1 FY23 guidance
Q1 FY23 guidance Notes In $ millions, except percentage and per share data Q1 FY22(1) Q1 FY23(2)(5) CHANGE (1) Q1 FY22 figures are as reported in the Company’s earnings release dated November 2, 2021. (2) The guidance included herein is from the Company’s earnings release dated Revenue $225.0 $215.0
Slide 13: Summary
Summary Expect industry challenges to continue at least through end of FY23 Demand environment becoming a tailwind despite near-term timing and supply headwinds Entering FY23 with record backlog, strong new-business momentum Expect double-digit bookings growth, positive book-to-bill, revenue
Slide 14: Appendix
APPENDIX 14
Slide 15: Adjusted EPS reconciliation
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-backs involved in determining adjusted income and recalculating the income
Slide 16: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation Notes (1) Rounded amounts used. (2) All references in this presentation to the fourth quarter of fiscal 2021 and full fiscal 2021 are to the quarter and the 52-week period ended July 2, 2021, and to the fourth quarter of fiscal 2022 and full fiscal 2022 are to the quar
Slide 17: Free cash flow and organic revenue reconciliation
Free cash flow reconciliation (In thousands) Q4 FY21 Q4 FY22 FY21 FY22 Cash provided by (used in) operating activities $ 27,194 $ (19,435) $ 97,247 $ (18,869) Purchases of property and equipment (10,891) (8,180) (45,599) (27,656) Free cash flow $ 16,303 $ (27,615) $ 51,648 $ (46,525) Organic revenue