L3harris Technologies, Inc. · NYSE:LHX
L3harris Technologies — Harris — Q3 FY2019 Earnings Presentation
14 slides from L3harris Technologies's earnings presentation, September 2020
Slide 1: Fiscal 2019 Third Quarter Earnings Call Presentation
FISCAL 2019 THIRD QUARTER EARNINGS CALL PRESENTATION HARRIS.COM | #HARRISCORP
Slide 2: Forward-looking statements
Forward-looking statements Statements in this presentation that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance on the safe harbor pro
Slide 3: 3Q19: Strong progress against strategic priorities
3Q19: Strong progress against strategic priorities • Revenue up 11%...highest growth in 8 years Accelerate revenue growth 1 • Orders $1.8B...funded book-to-bill 1.03 across all 3 segments • Year-over-year funded backlog growth of 15% Company margin • EPS1 up 30% to a record $2.11 2 expansion...doubl
Slide 4: Key highlights
Key highlights Communication Systems Electronic Systems Space & Intelligence Systems • Revenue up 19%...fourth consecutive • Revenue up 7%...eighth consecutive quarter • Revenue up 7%...mid teens growth in quarter of double-digit growth of growth Classified partially offset by Environmental – DoD Ta
Slide 5: Strong 3Q19 and YTD financial results
Strong 3Q19 and YTD financial results ($million, except per share amounts) Revenue EBIT1 and margin1 4,936 968 4,507 + 10% 843 + 15% 1,728 341 19.6% 1,562 296 18.7% + 11% + 15% 19.7% 18.9% 3Q18 3Q19 YTD18 YTD19 3Q18 3Q19 YTD18 YTD19 EPS Cash flow GAAP 1.63 2.02 4.07 5.67 Operating (143) 405 230 874
Slide 6: 3Q EPS bridge
3Q EPS1 bridge $2.11 $0.19 $1.62 $0.30 + DoD Tactical, Public Safety, Electronic Warfare, Avionics and Classified Space volume + Operational efficiencies - Environmental volume - Product and program mix 3Q18 Operations Tax 3Q19 1 Non-GAAP EPS excludes, as applicable, 3Q19 L3 deal and integration cos
Slide 7: Communication Systems
Communication Systems Revenue 1,577 1,377 + 15% • 3Q revenue up 19%, YTD up 15% – Tactical Comms revenue up 14% YTD 479 568 + 19% – DoD up 28% and International up 4% – Public Safety up double digits YTD 3Q18 3Q19 YTD18 YTD19 • 3Q operating income up 19%; YTD up 17% Operating income and margin 474 4
Slide 8: Electronic Systems
Electronic Systems Revenue 1,855 1,729 + 7% • 3Q and YTD revenue up 7% – Strong growth in Avionics and Electronic Warfare, 606 649 + 7% partially offset by UAE program transition timing 3Q18 3Q19 YTD18 YTD19 • 3Q operating income up 14%; YTD up 13% Operating income and margin • 3Q margin expanded 12
Slide 9: Space & Intelligence Systems
Space & Intelligence Systems Revenue 1,515 1,410 + 7% • 3Q and YTD revenue up 7% 482 514 + 7% – Classified growth partially offset by environmental programs 3Q18 3Q19 YTD18 YTD19 • 3Q operating income up 5%; YTD up 6% Operating income and margin 265 250 + 6% • 3Q margin 16.9%; YTD margin strong at 1
Slide 10: EPS bridges
EPS bridges FY19 Non-GAAP EPS guidance bridge 1 FY19 Non-GAAP EPS YoY bridge ~$8.15 ~ $8.15 $8.151 ~~$8.15 $0.09 $0.66 $7.90$7.95 - $8.001 $0.11 + Reduced rate by ~1 point $0.06 + CS, ES & SIS volume $1.04 2 $6.39 $6.39 + Volume + Operational efficiencies - Mix - Investments FY19 Prior Operations Ta
Slide 11: FY19 guidance summary
FY19 guidance summary Total Harris By Segment Revenue Margin1 Revenue Margin1 CS up ~12.0% ~30.0% ~9.0% 19.5 - 20.0% + versus up 10 – 11% (midpoint of prior 29.5 – 30.5%) + versus up 8.0 - 8.5% up ~8.5% ~19.0% ES EPS 1 FCF 2 + versus up 7 – 8% (midpoint of prior 18.5 – 19.5%) ~$8.15 ~$1.025B SIS up
Slide 12: Appendix
Appendix
Slide 13: Other information
Other information ($million except noted) FY18 3Q19 YTD19 FY19 Amortization of Exelis acquisition intangibles $101 $25 $76 ~$101 CHQ costs (non-GAAP) $60 $15 $50 ~$58 prior $55-$60 FAS pension expense/(income)1 $(120) $(30) $(90) ~($120) Net capital expenditures $136 $37 $104 ~$170 Net interest expe
Slide 14: Supplemental information - tactical communications history
Supplemental information - tactical communications history ($million) YTD 3Q18 4Q18 1Q19 2Q19 3Q19 FY17 FY18 FY19 Orders 332 389 502 448 289 1,242 1,755 1,238 Sales 340 377 334 386 406 1,230 1,367 1,126 DoD 121 139 144 170 188 392 530 502 International 219 238 190 216 219 838 837 625 Funded Backlog1