Wesco Aircraft — Q3 2018 Earnings Presentation
15 slides from Wesco Aircraft's earnings presentation, Aug 2, 2018
Slide 1: Q3 2018 Earnings Call Presentation
Q3 2018 EARNINGS CALL PRESENTATION August 2, 2018 Todd Renehan Chief Executive Officer Kerry Shiba Executive Vice President and Chief Financial Officer Information in this presentation should be read in conjunction with Wesco Aircraft’s earnings press release and tables for the fiscal 2018 third qua
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning Wesco Aircraft Holdings, Inc. (“Wesco Aircraft” or the “Company”). These statements may discuss goals, intentions and expectations as to
Slide 3: Overview: Solid Q3 2018 Operating and Financial Results
Overview Solid Q3 2018 Operating and Financial Results Q3 2018 Results Strong sales growth; gross profit improvement $410M Net Sales Tight expense management; investing in Wesco 2020 for the long term 60 bps Gross Margin Expansion* Net income improvement; adjusted EBITDA margin expansion $0.11 / $0.
Slide 4: Business Update
Business Update One-time sales benefit of approximately $11 million; solid underlying growth of 10% Double-digit ad-hoc sales growth – higher customer ordering; robust bookings Long-term contract increase – new business, higher volumes with existing customers Maintained tight expense control; SG&A a
Slide 5: Wesco 2020 Update
Wesco 2020 Update Driving Execution of Wesco 2020 Initiatives FOOTPRINT Taking steps toward optimization, preparing for inventory transfers OPTIMIZATION ALIGN FACILITY Investing in hubs – building out existing sites, identifying operating consolidation sites INVESTMENT ORGANIZATIONAL Implemented pro
Slide 6: Net Sales Summary
Net Sales Summary Net Sales ($ in millions) Net sales increase of 10% year/year, excluding one-time sales $410.4 benefit of $11M related to contract claims $390.2 ▪ Long-term contract increase of 7% due to: $363.9 ▪ Growth in chemical and hardware volumes ▪ Ramp-up of new business wins ▪ Ad-hoc incr
Slide 7: Income Statement Summary
Income Statement Summary (Dollars in Millions, Except Per Share Data) Q3 2017 Q2 2018 Q3 2018 Third Quarter Commentary Net sales $363.9 $390.2 $410.4 Income from operations improved year/year due to increase in gross (Loss) income from operations $(287.2) $33.2 $29.3 profit and prior year goodwill i
Slide 8: Balance Sheet Summary
Balance Sheet Summary June 30, Sept 30, Dec 31, March 31, June 30, At Period End 2017 2017 2017 2018 2018 ($ in millions) Cash and cash equivalents $57.1 $61.6 $41.9 $35.9 $45.6 Accounts receivable, net 264.0 256.3 253.6 287.1 302.1 Net inventory 802.7 827.9 856.3 889.3 893.5 Accounts payable 175.8
Slide 9: Cash Flow Summary
Cash Flow Summary June 30, Sept 30, Dec 31, March 31, June 30, Quarter Ended 2017 2017 2017 2018 2018 ($ in millions) Net (loss) income $(229.6) $(38.3) $(0.4) $15.0 $10.8 Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities 261.8 56.3 15.7 11.8 16.3 Chan
Slide 10: Closing Remarks
Closing Remarks Continue to execute across the business – good operating and financial performance Strong sales growth – new business, increase in existing business volume, higher ad-hoc Improved operating metrics; substantially lower inventory investment Improvement in net income and adjusted EBITD
Slide 11: Appendix
Wesco Aircraft” SEE ENDES
Slide 12: Non-GAAP Financial Information
Non-GAAP Financial Information ‘‘Adjusted Net Income’’ represents Net Income (Loss) before: (i) amortization of intangible assets, (ii) amortization or write-off of deferred issuance costs, (iii) special items and (iv) the tax effect of items (i) through (iii) above calculated using an estimated eff
Slide 13: Non-GAAP Financial Information - Adjusted Net Income and Adjusted EPS
Non-GAAP Financial Information Wesco Aircraft Holdings, Inc. Non-GAAP Financial Information - Adjusted Net Income and Adjusted Earnings Per Share (UNAUDITED) (Dollars in thousands, except share data) Three Months Ended June 30, March 31, June 30, 2017 2018 2018 Net Sales $ 363,907 $ 390,183 $ 410,35
Slide 14: Non-GAAP Financial Information - EBITDA and Adjusted EBITDA
Non-GAAP Financial Information Wesco Aircraft Holdings, Inc. Non-GAAP Financial Information - EBITDA and Adjusted EBITDA ( UNAUDITED) (Dollars In thousands) Three Months Ended June 30, March 31, June 30, 2017 2018 2018 EBITDA & Adjusted EBITDA Net (loss) income $ (229,608) $ 15,000 $ 10,754 Provisio
Slide 15: Thank You for Your Interest in Wesco Aircraft
THANK YOU FOR YOUR INTEREST IN WESCO AIRCRAFT For more information, please visit www.wescoair.com.
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