Huntington Ingalls Industries, Inc. · NYSE:HII
Huntington Ingalls Industries — Q1 2017 Earnings Presentation
15 slides from Huntington Ingalls Industries's earnings presentation, May 4, 2017
Slide 1: Q1 2017 Earnings Presentation
Q1 2017 Earnings Presentation May 4, 2017 Mike Petters President and Chief Executive Officer Chris Kastner Executive Vice President, Business Management and Chief Financial Officer
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements Statements in this presentation, other than statements of historical fact, may 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
Slide 3: HII's Q1 2017 Highlights
3 HII’s Q1 2017 Highlights Revenues were $1.72 billion in the quarter Diluted EPS was $2.56 in the quarter Total backlog at the end of the quarter was ~$20 billion; new contract awards in the quarter totaled $600 million Hosted President Trump, the Secretary of Defense, and the Chief of Nava
Slide 4: HII's Q1 2017 Consolidated Results
4 HII’s Q1 2017 Consolidated Results $1,763 $1,724 $1,500 $1,550 $1,600 $1,650 $1,700 $1,750 $1,800 Q1 2016 Q1 2017 ($ in m illi on s) Revenues $198 $164 $— $50 $100 $150 200 $250 Q1 2016 Q1 2017 ($ in m illi on s) Operating Income 11.2% 9.5% —% 3.0 % 6.0 % 9.0 % 12.0 % 15.0 % Q1 2016 Q1 2017 Operat
Slide 5: HII's Q1 2017 Capital Deployment
5 $24 $28 $48 $72 $— $20 $40 $60 $80 $100 $120 Q1 2016 Q1 2017 ($ in m illi on s) Shareholder Distributions Dividends Share Repurchases (at cost) HII’s Q1 2017 Capital Deployment *Non-GAAP measure. See appendix for definition and reconciliation. **Includes $6 million and $4 million for share repurch
Slide 6: Ingalls Shipbuilding Q1 2017 Results
6 Ingalls Shipbuilding Q1 2017 Results *Non-GAAP measure. See appendix for definition and reconciliation. $586 $550 $— $100 $200 $300 $400 $500 $600 $700 Q1 2016 Q1 2017 ($ in m illi on s) Revenues $82 $66 $— $20 $40 $60 $80 $100 Q1 2016 Q1 2017 ($ in m illi on s) Segment Operating Income* 14.0 % 12
Slide 7: Newport News Shipbuilding Q1 2017 Results
7 Newport News Shipbuilding Q1 2017 Results *Non-GAAP measure. See appendix for definition and reconciliation. $993 $971 $500 $600 $700 $800 $900 $1,000 $1,100 Q1 2016 Q1 2017 ($ in m illi on s) Revenues $81 $72 $— $20 $40 $60 $80 $100 Q1 2016 Q1 2017 ($ in m illi on s) Segment Operating Income* 8.2
Slide 8: Technical Solutions Q1 2017 Results
8 Technical Solutions Q1 2017 Results *Non-GAAP measure. See appendix for definition and reconciliation. $208 $225 $— $50 $100 $150 $200 $250 $300 Q1 2016 Q1 2017 ($ in m illi on s) Revenues $3 $(18) $(30) $(20) $(10) $— $1 Q1 2016 Q1 2017 ($ in m illi on s) Segment Operating Income (Loss)* 1.4 % (8
Slide 9: Appendix
9 Appendix
Slide 10: Non-GAAP Measures Definitions
10 Non-GAAP Measures Definitions We make reference to “segment operating income (loss),” “segment operating margin,” “adjusted net earnings,” “adjusted diluted earnings per share,” and “free cash flow.” We internally manage our operations by reference to “segment operating income (loss)” and “segmen
Slide 11: Non-GAAP Measures Definitions Cont'd
11 Non-GAAP Measures Definitions Cont’d Segment operating income (loss) is defined as operating income (loss) for the relevant segment(s) before the FAS/CAS Adjustment and deferred state income taxes. Segment operating margin is defined as segment operating income (loss) as a percentage of sales and
Slide 12: Non-GAAP Reconciliations – Segment Operating Income (Loss) & Segment Operating Margin
12 Non-GAAP Reconciliations – Segment Operating Income (Loss) & Segment Operating Margin ($ in millions) 2017 2016 Ingalls revenues 550$ 586$ Newport News revenues 971 993 Technical Solutions revenues 225 208 Intersegment eliminations (22) (24) Sales and Service Revenues 1,724 1,763 Segment Operatin
Slide 13: Non-GAAP Reconciliations – Adjusted Net Earnings & Adjusted Diluted EPS
13 Non-GAAP Reconciliations – Adjusted Net Earnings & Adjusted Diluted EPS 13 ($ in millions) 2017 2016 Net Earnings 119$ 136$ After-tax adjustment for FAS/CAS Adjustment (1) (32) (23) Adjusted Net Earnings 87 113 Diluted earnings per share 2.56$ 2.87$ After-tax FAS/CAS Adjustment per share (1) (0.6
Slide 14: Non-GAAP Reconciliation – Free Cash Flow
14 Non-GAAP Reconciliation – Free Cash Flow 14 ($ in millions) 2017 2016 Net cash provided by (used in) operating activities 98$ 54$ Less: Capital expenditures (58) (37) Free cash flow 40$ 17$ Three Months Ended March 31
Slide 15: Huntington Ingalls Industries
Huntington Ingalls Industries
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