Wesco Aircraft — Q4 2018 Earnings Presentation
16 slides from Wesco Aircraft's earnings presentation, Nov 15, 2018
Slide 1: Q4 2018 Earnings Call Presentation
Q4 2018 EARNINGS CALL PRESENTATION November 15, 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 fourth
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: Q4 2018 Operating and Financial Results
Overview Q4 2018 Operating and Financial Results Q4 2018 Results Strong sales growth; gross profit improvement $407M Net Sales Continuing to invest in Wesco 2020 for the long term 10 bps Gross Margin Expansion* Higher sales volumes drove profit improvement $0.07 / $0.18 Diluted EPS / Adjusted Dilute
Slide 4: Business Update
Business Update One-time sales benefit of approximately $6 million; solid underlying growth of 11% Double-digit ad-hoc sales growth – higher customer ordering Long-term contract increase – new business, higher volumes with existing customers Robust ad-hoc bookings; solid pipeline of new business opp
Slide 5: Wesco 2020 Update
Wesco 2020 Update Deeper Execution of Wesco 2020 Initiatives FOOTPRINT Initiated inventory transfers closer to customers; executing footprint optimization OPTIMIZATION ALIGN FACILITY Building out existing distribution centers; securing new locations INVESTMENT ORGANIZATIONAL Streamlined organization
Slide 6: Net Sales Summary
Net Sales Summary Net Sales Net sales increase of 11% year/year, excluding one-time sales ($ in millions) benefit of $6M related to contract claims $410.4 $406.8 . Long-term contract increase of 7% due to: . Growth in chemical and hardware volumes $361.6 . Ramp-up of new business wins . Ad-hoc incre
Slide 7: Income Statement Summary
Income Statement Summary (Dollars in Millions, Except Per Share Data) Q4 2017 Q3 2018 Q4 2018 Fourth Quarter Commentary Net sales $361.6 $410.4 $406.8 Income from operations improved year/year due to increase in gross Income from operations $20.0 $29.3 $22.4 profit offset by higher SG&A Operating ma
Slide 8: Balance Sheet Summary
Balance Sheet Summary Sept 30, Dec 31, March 31, June 30, Sept 30, At Period End 2017 2017 2018 2018 2018 ($ in millions) Cash and cash equivalents $61.6 $41.9 $35.9 $45.6 $46.2 Accounts receivable, net 256.3 253.6 287.1 302.1 283.8 Inventories 827.9 856.3 889.3 893.5 884.2 Accounts payable 184.3 16
Slide 9: Cash Flow Summary
Cash Flow Summary Sept 30, Dec 31, March 31, June 30, Sept 30, Quarter Ended 2017 2017 2018 2018 2018 ($ in millions) Net (loss) income $(38.3) $(0.4) $15.0 $10.8 $7.3 Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities 56.3 15.7 11.8 16.3 25.9 Changes i
Slide 10: Closing Remarks
Closing Remarks Improved performance in fiscal 2018 – above-market growth, increased profitability Wesco 2020 focused on remaining performance gaps and driving long-term improvement Accelerating pace of Wesco 2020 execution in fiscal 2019 Wesco 2020 expected to generate at least $30M in annualized p
Slide 11: Fiscal 2019 Outlook
Fiscal 2019 Outlook Fiscal 2019 Financial Outlook Net sales – mid-single-digit growth* Adjusted EBITDA – high-single-digit growth* Outlook Assumptions New business and growth in existing long-term contracts Ad-hoc sales benefit from strong customer relationships and inventory position Higher sales v
Slide 12: Appendix
ane. Wesco Aircrafe” APPENDIX
Slide 13: 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 14: 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 September 30, June 30, September 30, 2017 2018 2018 Adjusted Net Income Net (loss
Slide 15: 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 September 30, June 30, September 30, 2017 2018 2018 Net Sales $ 361,552 $ 410,359 $ 406,817 EBITDA and Adjusted EBITDA Net (l
Slide 16: 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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