Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q4 2012 Earnings Presentation
15 slides from Huntington Ingalls Industries's earnings presentation, Feb 27, 2013
Slide 1: Q4 2012 Earnings Presentation
Exhibit 99.2 Q4 2012 Earnings Presentation February 27, 2013 Mike Petters President and Chief Executive Officer Barb Niland Corporate Vice President, Business Management & Chief Financial Officer
Slide 2: Safe Harbor
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 t
Slide 3: Highlights from the Quarter and FY 2012
Highlights from the Quarter and FY 2012 Revenues were $1.8 billion for Q4 and $6.7 billion for the year Diluted EPS of $0.98 for Q4 and $2.91 for the year Pension-adjusted Diluted EPS* of $1.30 for Q4 and $3.95 for the year Continued strong segment operating performance Ingalls operating margin was
Slide 4: Fourth Quarter 2012 Consolidated Results
Fourth Quarter 2012 Consolidated Results Consolidated Revenues Operating Income $1,900 $140 $131 $1,823 $121 $118 $1,800 $120 $1,735 $106 $100 $1,700 $80 $1,600 $60 $1,500 $40 $1,400 $20 $1,300 $- Q4 2011 Q4 2012 Q4 2011 Q4 2012 GAAP Pension-adjusted* Operating Margin Diluted EPS 8.0% $1.60 7.0% 7.2
Slide 5: FY 2012 Consolidated Results
FY 2012 Consolidated Results Consolidated Revenues Operating Income $7,000 $6,708 $500 $6,575 $438 $413 $6,500 $400 $358 $6,000 $300 $5,500 $5,000 $200 $4,500 $100 $100 $4,000 $3,500 $- FY 2011 FY 2012 FY 2011 FY 2012 GAAP Pension-adjusted* Operating Margin Diluted EPS 7.0% 6.3% 6.5% $5.00 $4.15 $3.
Slide 6: Ingalls Shipbuilding – Fourth Quarter Results
Ingalls Shipbuilding – Fourth Quarter Results Segment Revenues $750 $ 722 Ingalls Q4 revenues were up YoY due to $676 $700 higher volume on amphibious assault $650 ships $600 $550 Q4 segment operating income and $500 $450 margin were up YoY due to unfavorable $400 cumulative adjustments on amphibiou
Slide 7: Ingalls Shipbuilding – FY 2012 Results
Ingalls Shipbuilding – FY 2012 Results Segment Revenues $3,000 Ingalls 2012 revenue decreased due to $2,900 $2,885 lower amphibious assault volume $2,840 following deliveries of LPD-23 and -24 in $2,800 2012 and LPD-22 in 2011 $2,700 $2,600 Ingalls 2012 operating income and margin increased as a res
Slide 8: Newport News Shipbuilding
Newport News Shipbuilding Newport News revenues were up in Q4 as Segment Revenues compared to Q4 2011 due to higher $4,500 $ 3,940 volume on aircraft carriers $4,000 $ 3,766 $3,500 Segment operating income increased for $3,000 the year due to favorable cumulative $2,500 adjustments on the CVN-65 EDS
Slide 9: 2013 Retirement Related Assumptions
2013 Retirement Related Assumptions ($ in millions) 2013 2012 Pension Discount Rate 4.24% 5.23% Expected Return on Assets 7.50% 8.00% 1 Qualified Pension Contributions $270 – $330 $236 Cash Contributions, Net of CAS 2 $110 – $185 $122 Recovery 2 Net FAS/CAS Adjustment $70 – $100 $80 2 CAS Expense $1
Slide 10: Appendix
Appendix Hi
Slide 11: Reconciliations
Reconciliations We make reference to “segment operating income,” “segment operating margin,” “adjusted segment operating income,” “adjusted segment operating margin,” “pension-adjusted total operating income,” “pension-adjusted operating margin,” “pension-adjusted net earnings,” “pension- adjusted d
Slide 12: Reconciliation of Non-GAAP Measures – Segment Operating Income and Segment Operating Margin
Reconciliation of Non-GAAP Measures – Segment Operating Income and Segment Operating Margin Three Months Ended Year Ended December 31 December 31 $ in millions 2012 2011 2012 2011 Sales and Service Revenues Ingalls $ 722 $ 676 $ 2,840 $ 2,885 Newport News 1,122 1,078 3,940 3,766 Intersegment elimina
Slide 13: Reconciliation of Non-GAAP Measures – Adjusted Figures
Reconciliation of Non-GAAP Measures – Adjusted Figures Three Months Ended Year Ended December 31 December 31 $ in millions 2012 2011 2012 2011 Adjusted Segment Operating Income (Loss) Operating Income (Loss) $ 106 $ 121 $ 358 $ 100 As a percentage of revenues 5.8% 7.0% 5.3% 1.5% Non-segment factors
Slide 14: Reconciliation of Non-GAAP Measures – Adjusted Figures (continued)
Reconciliation of Non-GAAP Measures – Adjusted Figures (continued) Three Months Ended Year Ended December 31 December 31 $ in millions 2012 2011 2012 2011 Pension-adjusted Net Earnings (Loss) Net Earnings (Loss) $ 50 $ 67 $ 146 $ (100) Adjustment for non-cash goodwill impairment - (10) - 290 1 After
Slide 15: Reconciliation of Non-GAAP Measures – Free Cash Flow
Reconciliation of Non-GAAP Measures – Free Cash Flow Three Months Ended Year Ended December 31 December 31 $ in millions 2012 2011 2012 2011 Net cash provided by (used in) operating activities $ 373 $ 474 $ 332 $ 528 Less: Capital expenditures (70) $ (78) (162) $ (197) Free cash flow $ 303 $ 396 $ 1
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