Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q2 2015 Earnings Presentation
12 slides from Huntington Ingalls Industries's earnings presentation, Aug 6, 2015
Slide 1: Q2 2015 Earnings Presentation
Q2 2015 Earnings Presentation August 6, 2015 Mike Petters President & Chief Executive Officer Barb Niland Corporate Vice President, Business Management & Chief Financial Officer Exhibit 99.2
Slide 2: Safe Harbor
Safe Harbor 2 Statements in this presentation, other than statements of historical fact, 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 our actual results
Slide 3: Highlights from the Second Quarter 2015
Highlights from the Second Quarter 2015 3 Revenues were ~ $1.75 billion; Adjusted revenues* were ~$1.76 billion Segment operating margin was 13.9%; Adjusted segment operating margin* was 9.4% Total operating margin was 15.4%; Adjusted total operating margin* was 10.9% Diluted EPS was $3.20,
Slide 4: Second Quarter 2015 Consolidated Results
Second Quarter 2015 Consolidated Results 4 * Non-GAAP metrics. See appendix for definitions and reconciliations. $1,719 $1,745 $1,758 $1,500 $1,550 $1,600 $1,650 $1,700 $1,750 $1,800 Q2 2014 Q2 2015 ($ in m illi on s) Revenues GAAP Adjusted* $181 $269 $192 $— $50 $100 $150 $200 $250 $300 Q2 2014 Q2
Slide 5: Ingalls Shipbuilding
Ingalls Shipbuilding 5 Ingalls revenues down 2% YoY due to the deliveries of LHA-6 and NSC-4 as well as lower volumes on the LPD program Adjusted segment operating income and margin up YoY due to risk retirement on the DDG and NSC programs $572 $546 $559 $500 $520 $540 $560 $580 Q2 2014 Q2 2015
Slide 6: Newport News Shipbuilding
Newport News Shipbuilding 6 Newport News revenues up 3% YoY due to higher volumes on the VCS program and on aircraft carrier maintenance Segment operating income and margin up YoY due to performance improvement and risk retirement on the VCS program, partially offset by lower performance on CVN-
Slide 7: Appendix
U n sa ve d Docum e n t / 1 2 /2 9 /1 0 / 1 0 :0 2 Appendix
Slide 8: Definitions of Non-GAAP Metrics
Definitions of Non-GAAP Metrics 8 We make reference to “segment operating income,” “segment operating margin,” “adjusted sales and service revenues,” “adjusted segment operating income,” “adjusted segment operating margin,” “adjusted total operating income,” “adjusted operating margin,” “adjusted ne
Slide 9: Reconciliation of Non-GAAP Measures – Segment Operating Income and Segment Operating Margin
Reconciliation of Non-GAAP Measures – Segment Operating Income and Segment Operating Margin 9 $ in millions 2015 2014 Sales and Service Revenues Ingalls 546$ 572$ Newport News 1,166 1,129 Other 35 20 Intersegment eliminations (2) (2) Total Sales and Service Revenues 1,745 1,719 Operating Income Inga
Slide 10: Reconciliation of Non-GAAP Measures – Adjusted Figures
10 Reconciliation of Non-GAAP Measures – Adjusted Figures $ in millions 2015 2014 Adjusted Sales and Service Revenues Ingalls 546$ 572$ Adjustment for insurance litigation settlement 13 — Adjusted Ingalls 559 572 Newport News 1,166 1,129 Other 35 20 Intersegment eliminations (2) (2) Adjusted Sales a
Slide 11: Reconciliation of Non-GAAP Measures – Adjusted Figures
Reconciliation of Non-GAAP Measures – Adjusted Figures 11 $ in millions 2015 2014 Adjusted Net Earnings (Loss) Net Earnings (Loss) 156$ 100$ Adjustment for insurance litigation settlement (1) (88) — Adjustment for goodwill impairment Charge(2) 47 — Adjustment for FAS/CAS Adjustment(1) (18) (14) Adju
Slide 12: Reconciliation of Non-GAAP Measures – Free Cash Flow
Reconciliation of Non-GAAP Measures – Free Cash Flow 12 ($ in millions) 2015 2014 Net cash provided by (used in) operating activities 166$ 272$ Less: Capital expenditures (29) (27) Free cash flow 137$ 245$ Three Months Ended June 30
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