Slide 1: FY 2013 Fourth Quarter Earnings Call
FY 2013 Fourth Quarter Earnings Call November 14, 2013
Slide 2: Agenda
Agenda TransDigm Overview W. Nicholas Howley Chairman and CEO Highlights, Market Review, Operating W. Nicholas Howley Performance and Outlook Chairman and CEO Operations and Value Creation Raymond F. Laubenthal President and COO Financial Results Gregory Rufus Executive Vice President and CF
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including information regarding our guidance for future periods. These forward-looking statements are based on management’s current expectation
Slide 4: Special Notice Regarding Pro Forma and Non-GAAP Information
Special Notice Regarding Pro Forma and Non-GAAP Information This presentation sets forth certain pro forma financial information. This pro forma financial information gives effect to certain recently completed acquisitions and divestitures. Such pro forma information is based on certain assumptions
Slide 5: TransDigm Overview
TransDigm Overview DISTINGUISHING CHARACTERISTICS Highly engineered aerospace components Significant aftermarket content Proprietary and sole source products High free cash flow Pro Forma Revenues Proprietary Pro Forma EBITDA (Excluding Non- Revenues (1) As Defined (1) Aviation Segment) ⁽¹⁾
Slide 6: 2013 Q4 Financial Performance by Markets – Pro Forma
2013 Q4 Financial Performance by Markets – Pro Forma Highlights⁽¹⁾ Q4 Market Review – Pro Forma Revenues⁽¹⁾ Actual vs. Prior Year Commercial OEM Q4 2013 Finished the year ahead of original expectations Prior fiscal year growth of ≈23% Commercial OEM: Up 10% (commercial transport production rat
Slide 7: Fiscal 2014 Outlook
Fiscal 2014 Outlook Sales Mix (1) Market Expected Growth⁽¹⁾ 33% Commercial OEM Up High Single-Digit % 41% Commercial Aftermarket Up High Single-Digit % 26% Defense Flat Assumptions Guidance Summary ($ in millions) Worldwide RPM growth ≈ 4% to 5% Low High OEM production rate increases proceeding
Slide 8: Fourth Quarter 2013 Results
Fourth Quarter 2013 Results ($ in millions) Q4 FY13 Q4 FY12 Revenue $539.7 $462.6 16.7% Increase Gross Profit $282.7 $256.8 Flat Margins Margin % 52.4% 55.5% ● Dilutive impact of acquisitions ≈2% ● Higher non-operating acquisition-related costs ≈1.5% ● Unfavorable OEM vs aftermarket product mix ● St
Slide 9: Liquidity & Taxes
Liquidity & Taxes ($ in millions) Cash Liquidity FY 9/30/2013 FY 9/30/2012 EBITDA Actual As Defined Net Cash Provided by 9/30/2013 multiple Rate (1) Operating Activities $470.2 $413.9 Cash $565 Capital Expenditures ($35.5) ($25.2) Revolver – – L + 3.00% Existing Term Loan B 496 0.5x L + 2.75% Free C
Slide 10: Reconciliation of GAAP to Adjusted EPS - Guidance
Reconciliation of GAAP to Adjusted EPS - Guidance ($ in millions) Full Year Guidance Thirteen Week Periods Ended Fiscal Years Ended Mid-Point September 30, September 30, September 30, September 30, September 30, 2013 2012 2013 2012 2014 Earnings (loss) per share $ (0.20) $ 1.63 $ 2.39 $ 5.97 $ 6.32
Slide 11: Appendix
Appendix
Slide 12: Reconciliation of Net Income to EBITDA and EBITDA As Defined
Reconciliation of Net Income to EBITDA and EBITDA As Defined ($ in thousands) Thirteen Week Periods Ended Fiscal Years Ended September 30, September 30, September 30, September 30, 2013 2012 2013 2012 Net income $ 84,027 $ 87,866 $ 302,789 $ 324,969 Adjustments: Depreciation and amortization expense
Slide 13: Reconciliation of Reported EPS to Adjusted EPS
Reconciliation of Reported EPS to Adjusted EPS ($ in thousands, except per share amounts) Thirteen Week Periods Ended Fiscal Years Ended September 30, September 30, September 30, September 30, Reported Earnings Per Share 2013 2012 2013 2012 Net income $ 84,027 $ 87,866 $ 302,789 $ 324,969 Less: divi
Slide 14: Reconciliation of Net Cash Provided by Operating Activities to EBITDA
Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined ($ in thousands) Fiscal Years Ended September 30, September 30, 2013 2012 Net Cash Provided by Operating Activities $ 470,205 $ 413,885 Adjustments: Changes in assets and liabilities, net of effects from acqu
Slide 15: FY 2013 Fourth Quarter Earnings Call
FY 2013 Fourth Quarter Earnings Call November 14, 2013