Slide 1: Third Quarter Fiscal Year 2022 Financial Results
THIRD QUARTER FISCAL YEAR 2022 FINANCIAL RESULTS Mark Aslett President and CEO Michael Ruppert Executive Vice President and CFO May 3, 2022, 5:00 pm ET Webcast login at www.mrcy.com/investor Webcast replay available by 7:00 p.m. ET May 3, 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 2022 business performance and beyond and t
Slide 3: Delivered strong results for Q3
Delivered strong results for Q3 Record bookings leading to 1.17 book-to-bill with record backlog Well-positioned for return to organic growth and margin expansion in FY23 5-year plan targeting high-single low-double digit organic revenue growth, margin expansion, M&A Expect strong growth out
Slide 4: Q3 and LTM FY22 results
Q3 and LTM FY22 results Notes Q3 FY22 VS. Q3 FY21 LTM FY22 VS. LTM FY21 (1) Organic revenue represents total company revenue excluding net revenue from acquisitions for the first four full quarters since the entities’ acquisition date (which Record bookings increased 41% Record bookings increase
Slide 5: Q4 FY22 business outlook
Q4 FY22 business outlook Expect Q4 bookings acceleration, positive book-to-bill, record backlog for total FY22 Anticipate 8%-10% total revenue growth exceeding $1B, record adjusted EBITDA Efforts to mitigate supply chain and labor headwinds, Covid-related disruptions largely successful All m
Slide 6: 1MPACT: a 4-year effort to achieve full growth and adj. EBITDA potential
1MPACT: a 4-year effort to achieve full growth and adj. EBITDA potential Proactively launched 1MPACT to lay foundation for next phase of value creation at scale Anticipating $27M net benefit related to actions taken and planned in FY22 1MPACT helping to overcome financial impacts of industry h
Slide 7: M&A update
M&A update Apply 1MPACT methodologies to future M&A to accelerate value creation Avalex and Atlanta Micro acquisitions performing well Deployed $620 million in capital since December 2020 1MPACT could increase deal cadence and size, compounding value creation Strengthened balance sheet, fo
Slide 8: Strategy and technologies aligned with major industry drivers and trends
Strategy and technologies aligned with major industry drivers and trends Expect total company revenue to continue growing faster than overall defense spending Focused business on larger, faster growing defense market segments DoD topline $773B FY23; up approximately 8% over original FY22 reque
Slide 9: Q3 FY22 vs. Q3 FY21
Q3 FY22 vs. Q3 FY21 Notes In $ millions, except percentage and per share data Q3 FY21(3) Q3 FY22(3) CHANGE (1) Organic revenue represents total company revenue excluding net revenue from acquisitions for the first four full quarters since Bookings $210.2 $295.4 the entities’ acquisition date 41% (wh
Slide 10: Balance sheet
Balance sheet Notes As of (1) Rounded amounts used. (In $ millions)(1) 4/2/21 7/2/21 10/1/21 12/31/21 4/1/22 ASSETS Cash & cash equivalents $121.9 $113.8 $95.8 $105.2 $91.7 Accounts receivable, net 264.0 291.7 301.2 320.1 367.1 Inventory, net 226.8 221.6 234.4 251.3 259.6 PP&E, net 128.3 128.5 128.7
Slide 11: Cash flow summary
Cash flow summary Notes For the Fiscal Quarters Ended (1) Rounded amounts used. (2) Non-GAAP, see (In $ millions)(1) 4/2/21 7/2/21 10/1/21 12/31/21 4/1/22 reconciliation table. Net Income (Loss) $15.6 $17.9 ($7.1) ($2.6) $4.1 Depreciation and amortization 20.0 20.8 21.5 24.1 24.5 Other non-cash item
Slide 12: FY22 annual guidance
FY22 annual guidance Notes In $ millions, except percentage and per share data FY21(1) FY22(2)(5) CHANGE (1) FY21 figures are as reported in the Company’s earnings release dated August 3, 2021. (2) The guidance included herein is from the Company’s earnings release dated Revenue $924.0 $1,000.0 - $1
Slide 13: Q4 FY22 guidance
Q4 FY22 guidance Notes In $ millions, except percentage and per share data Q4 FY21(1) Q4 FY22(2)(5) CHANGE (1) Q4 FY21 figures are as reported in the Company’s earnings release dated August 3, 2021. (2) The guidance included herein is from the Company’s earnings release dated Revenue $250.8 $301.5 -
Slide 14: Summary
Summary Delivered solid results for Q3 and expect record fourth quarter Expect strong FY23 as organic growth returns and 1MPACT drives margin expansion Foresee substantial growth in incremental defense spending in both U.S. and internationally Secure processing, trusted microelectronics, and
Slide 15: Appendix
APPENDIX 15
Slide 16: 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 17: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation Notes (1) Rounded amounts used. (2) All references in this presentation to the third quarter of fiscal 2021 are to the quarter ended April 2, 2021, the third quarter of fiscal 2022 are to the quarter ended April 1, 2022, and the fourth quarter of fiscal 2022 and full f
Slide 18: Free cash flow and organic revenue reconciliation
Free cash flow reconciliation Organic revenue reconciliation Notes (1) Organic revenue represents total company revenue excluding net revenue from acquisitions for the first four full quarters since the entities’ acquisition date (which excludes any intercompany transactions). After the completion o