L3harris Technologies, Inc. · NYSE:LHX
L3harris Technologies — Q1 2021 Earnings Presentation
13 slides from L3harris Technologies's earnings presentation, Apr 30, 2021
Slide 1: L3Harris 2021 First Quarter Earnings Call Presentation
L3HARRIS 2021 FIRST QUARTER EARNINGS CALL PRESENTATION April 30, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance on the safe harbor pro
Slide 3: L3Harris strategic priorities
L3Harris strategic priorities Grow revenue...well-aligned portfolio with investment in innovation Deliver on integration commitments Build on operational excellence and expand margins Reshape portfolio...focus on high margin, high growth businesses Maximize cash flow with shareholder-friendly capita
Slide 4: Execution of strategic priorities
Execution of strategic priorities Solid top-line growth • Organic1 revenue up 1.8%...U.S. and international government up 4.8%, with international up double-digits • FY22 DoD budget consistent with strategy to focus on near-peer threats...L3Harris well-aligned across all domains • Prime level awards
Slide 5: Strong 1Q21 financials
Strong 1Q21 financials ($ million, except per share amounts) Revenue EBIT and Margin GAAP 4,626 4,567 4,485 4,567 862 +1.8% EBIT2 808 +6.7% Organic1 18.9% EBIT margin2 17.5% 1Q20 1Q21 1Q20 1Q21 EPS Cash Flow GAAP 0.99 2.25 Operating 533 661 cash flow 3.18 2.80 +14% Adjusted Free 533 630 Non-GAAP2 ca
Slide 6: Non-GAAP 1Q21 EPS bridge
Non-GAAP 1Q21 EPS1 bridge $0.07 $3.18 $0.16 $0.12 + Pension $0.22 + Minority interest $2.80 $(0.05) $(0.14) + Volume / Productivity + Cost management 2 1Q20 Actual Completed Pandemic- Operations Synergies Share count Other 1Q21 Actual divestitures related end- market 1 Non-GAAP EPS, adjusted EBIT, a
Slide 7: Integrated Mission Systems
Integrated Mission Systems ($ million) Revenue GAAP 1,370 1,451 1,370 1,451 +5.9% • Revenue up 5.9% – Growth in Maritime from a ramp on manned platforms, and in ISR from newly awarded NATO Organic1 program – Moderate growth in Electro Optical 1Q20 1Q21 • Operating income increased 19% Operating inco
Slide 8: Space & Airborne Systems
Space & Airborne Systems ($ million) Revenue GAAP 1,192 1,236 1,236 • Revenue up 3.7% and up 4.1% on an organic1 1,187 +4.1% basis – Ramp on missile defense and other responsive Organic1 programs in Space and the F-35 platform in Mission Avionics, as well as classified growth in Intel & Cyber – Part
Slide 9: Communication Systems
Communication Systems ($ million) Revenue GAAP 1,094 1,112 • Revenue up 1.6% and up 2.9% on an organic1 basis 1,112 1,081 +2.9% – Growth in Tactical Communications, Integrated Vision Solutions and Global Communications Solutions, primarily from continued ramp in U.S. DoD Organic1 modernization – Low
Slide 10: Aviation Systems
Aviation Systems ($ million) Revenue • Revenue down 19% and down 8.3% on an GAAP 1,011 814 888 organic1 basis 814 -8.3% – COVID-related impacts in commercial aviation business, in-line with expectations, and program Organic1 timing in Military Training – Growth in Mission Networks, from higher FAA v
Slide 11: Updated 2021 full-year guidance
Updated 2021 full-year guidance Total L3Harris By Segment Organic revenue1 Margin Organic revenue 1 Margin 2 IMS up 4.0 - 6.0% 15.25 - 15.75% up 3.0 - 5.0% 18.00 - 18.50% SAS up 4.0 - 6.0% 18.25 - 18.75% EPS2 FCF2 CS up 2.5 - 4.5% 24.25 - 24.75% $12.70 - $13.00 $2.8 - $2.9B (vs. $12.60 - $13.00) AS
Slide 12: Non-GAAP 2021 guidance EPS bridge
Non-GAAP 2021 guidance EPS1 bridge Preliminary assessment of announced divestitures $12.85 $0.26 $0.57 + Pension + Tax $0.25 $11.60 $(0.07) $0.24 + Volume / Productivity - Investments 2020 Completed 2 Operations Synergies Share count Other 2021 guidance divestitures mid-point Variance to Prior Guida
Slide 13: Other financial information
Other financial information ($ million except noted) CY21 1Q20 1Q21 Guide Incremental cost synergies (net) $55 $33 $50 - $80 Net interest expense $63 $66 ~$255 Integration expenses1 $42 $19 $75 - $100 Effective tax rate (non-GAAP) 17.0% 16.7% 16 - 17% Average diluted shares outstanding2 (million sha
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