Westinghouse Air Brake Technologies Corporation · NYSE:WAB
Westinghouse Air Brake Technologies — Q3 2019 Earnings Presentation
16 slides from Westinghouse Air Brake Technologies's earnings presentation, Oct 31, 2019
Slide 1: Wabtec 3rd Quarter 2019 Financial Results & Company Highlights
Wabtec 3rd Quarter 2019 Financial Results & Company Highlights October 31, 2019 Exhibit 99.2
Slide 2: Forward-looking statements
This communication contains “forward-looking” statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995, including statements regarding the ac
Slide 3: Executive summary
Executive summary Diversified portfolio yielding ability to manage market headwinds Services growth driven by significant global installed base offsetting North America freight market softness Integration on-track & synergies delivering ahead of plan $250M synergies to be achieved before 2022 Solid
Slide 4: 3Q 2019 performance
3Q 2019 performance Sales EBITDA Income from ops Profit margin EPS Cash from ops Backlog Reported $2,002M $292M $169M 8.4% $0.48 $124M $22B Adjusted y/y 90% 133% 2.8 pts Freight Sales Income from ops Profit margin % Backlog Transit Sales Income from ops Profit margin % Backlog Adjusted(1) $1,347M $2
Slide 5: Liquidity & leverage
Liquidity & leverage Strong cash flow generation to de-lever the balance sheet … long-term target leverage ~2-2.5X GAAP cash from ops 3Q YTD $568M FY19 Guidance ~$900M 3Q’19 ~3.0X Year End Target ~2.5X Net debt / Adj. EBITDA(3) Wabtec uses a leverage ratio of Net Debt to Adj. EBITDA for purposes of
Slide 6: 2019 guidance
2019 guidance Sales GAAP: ~$8.1B Adjusted: ~$8.2B EPS GAAP: $2.05 to $2.10 Adjusted: $4.15 to $4.20 Cash from operations GAAP: ~$900M SG&A ~$1.1B Depreciation ~$155M Amortization ~$245M Interest ~$55M per quarter Adjusted tax rate at ~24%(4) Capex of ~$200M ~$0.88 after-tax EPS impact from non-cash
Slide 7: Focused strategy, positioned for long-term growth
Focused strategy, positioned for long-term growth 3Q performance on track … well positioned to deliver on ‘19 financial guidance Significant installed base across Freight and Transit … resilient business model Cost reductions on track … strong confidence we will meet synergy target of $250M before ‘
Slide 8: Questions?
Questions?
Slide 9: Appendix
Appendix
Slide 10: Income statement
Income statement WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENT OF INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED) Third Third For the For the Quarter Quarter Nine Months Nine Months 2019
Slide 11: Income statement (cont.)
Income statement (cont.) FOR THE THREE AND NINE MONTHS ‘Segment Information Freight Net Sales Freight Income from Operations Freight Operating Margin Transit Net Sales Transit Income from Operations Transit Operating Margin Backlog Information (Note: 12-month is a sub-set of total) September 30, 201
Slide 12: Balance sheet
Balance sheet IES CORPOR Unaudited September 30,2019 December 31, 2018 Inmiltions Cash and cash equivalents $ 574 S 580.9 Restricted cash - 1,761.4 feceivables, net 1,673.3 1,146.8 Inventories 4,957.3 844.9 Current assets - other 192.4 115.6 Total current assets 4,410.4 4,449.6 Property, plant and e
Slide 13: Cash flow
Cash flow CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited Nine Months Ended September 30, 2019 2018 In millions Net cash provided by operating activities Net cash used for investing activities Net cash provided by financing activities Effect of changes in currency exchange rates (Decrease)
Slide 14: EPS and non-GAAP Reconciliation
EPS and non-GAAP Reconciliation
Slide 15: EBITDA reconciliation
EBITDA reconciliation viewed in addition to, and not as an altemative for, Wabtec’s reported results prepared in accordance with GAAP. included in this press release. We believe that these measures provide useful i js Non-Gi ur SAP financial measures should be |Wabtec Corporation (in mi |One-time PP
Slide 16: EBITDA reconciliation guidance
EBITDA reconciliation guidance Set forth below is a reconciliation of the 2019 guidance to the adjusted guidance included in this press release. We believe that the adjusted guidance provides useful supplemental information to assess our forecasted results. Non-GAAP financial measures should be view
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