Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q1 2018 Earnings Presentation
14 slides from Huntington Ingalls Industries's earnings presentation, May 3, 2018
Slide 1: Q1 2018 Earnings Presentation
Q1 2018 Earnings Presentation May 3, 2018 Mike Petters President and Chief Executive Officer Chris Kastner Executive Vice President, Business Management and Chief Financial Officer Exhibit 99.2
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements Statements in this presentation, other than statements of historical fact, may 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
Slide 3: HII's Q1 2018 Highlights
3 HII’s Q1 2018 Highlights Revenues were $1.87 billion in the quarter Diluted EPS was $3.48 in the quarter Total backlog at the end of the quarter was ~$22 billion; new contract awards in the quarter totaled ~$2.6 billion Ingalls Shipbuilding o Awarded ~$1.4 billion construction contract for
Slide 4: HII's Q1 2018 Consolidated Results
4 HII’s Q1 2018 Consolidated Results HII’s revenues up 8.7% YOY due to increased volume in the shipbuilding segments HII’s operating income and margin increased YOY due to a favorable Operating FAS/CAS Adjustment in Q1 2018 compared to the prior year $1,724 $1,874 $1,000 $1,200 $1,400 $1,600 $1,
Slide 5: HII's Q1 2018 Capital Deployment
5 $28 $32 $72 $166 $— $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $220 Q1 2017 Q1 2018 ($ in m illi on s) Shareholder Distributions Dividends Share Repurchases (at cost) HII’s Q1 2018 Capital Deployment *Non-GAAP measure. See appendix for definition and reconciliation. **Includes $4 million for sh
Slide 6: Ingalls Shipbuilding Q1 2018 Results
6 Ingalls Shipbuilding Q1 2018 Results *Non-GAAP measure. See appendix for definition and reconciliation. Ingalls revenues up 6.4% YOY due to increased volume on the LPD and LHA programs, partially offset by decreased volume on the NSC program Ingalls segment operating income and margin down YOY
Slide 7: Newport News Shipbuilding Q1 2018 Results
7 Newport News Shipbuilding Q1 2018 Results *Non-GAAP measure. See appendix for definition and reconciliation. Newport News revenues up 11.4% YOY due to higher volume in aircraft carriers and naval nuclear support services Newport News segment operating income and margin down YOY due to one-time
Slide 8: Technical Solutions Q1 2018 Results
8 Technical Solutions Q1 2018 Results *Non-GAAP measure. See appendix for definition and reconciliation. Technical Solutions revenues up 3.6% YOY due to higher oil and gas and fleet support services volume, partially offset by lower nuclear and environmental revenue Technical Solutions segment o
Slide 9: Appendix
9 Appendix
Slide 10: Non-GAAP Measures Definitions
10 Non-GAAP Measures Definitions We make reference to “segment operating income (loss),” “segment operating margin,” and “free cash flow.” We internally manage our operations by reference to “segment operating income (loss)” and “segment operating margin,” which are not recognized measures under GAA
Slide 11: Non-GAAP Measures Definitions Cont'd
11 Non-GAAP Measures Definitions Cont’d Segment operating income (loss) is defined as operating income (loss) for the relevant segment(s) before the Operating FAS/CAS Adjustment and non-current state income taxes. Segment operating margin is defined as segment operating income (loss) as a percentage
Slide 12: Non-GAAP Reconciliation – Segment Operating Income
12 ($ in millions) 2018 2017 Ingalls revenues 585$ 550$ Newport News revenues 1,082 971 Technical Solutions revenues 233 225 Intersegment eliminations (26) (22) Sales and Service Revenues 1,874 1,724 Segment Operating Income (Loss) Ingalls 64 66 As a percentage of Ingalls revenues 10.9 % 12.0 % Newp
Slide 13: Non-GAAP Reconciliation – Free Cash Flow
13 Non-GAAP Reconciliation – Free Cash Flow 13 ($ in millions) 2018 2017 Net cash provided by (used in) operating activities 120 98 Less capital expenditures: Capital expenditure additions (75) (58) Grant proceeds for capital expenditures 2 — Free cash flow 47 40 Three Months Ended March 31
Slide 14: Huntington Ingalls Industries
Huntington Ingalls Industries Hi iabt™
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