Wesco Aircraft — Q1 2019 Earnings Presentation
15 slides from Wesco Aircraft's earnings presentation, Jan 31, 2019
Slide 1: Q1 2019 Earnings Call Presentation
Q1 2019 EARNINGS CALL PRESENTATION January 31, 2019 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 2019 first q
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: Q1 2019 Operating and Financial Results
Overview Q1 2019 Operating and Financial Results Q1 2019 Results Sales growth outpaced market – solid execution and demand for services $395M Net Sales Americas business performed well – strong sales growth, improved leverage 110 bps Gross Margin Decline* Challenges in EMEA – lower sales, decline in
Slide 4: Business Update
Business Update Double-digit ad-hoc sales growth – capturing more business with existing customers Long-term contract increase – higher volumes with existing customers and new business Continuing to book new business and renew long-term contracts Higher expenses reflect Wesco 2020; investment in cap
Slide 5: Wesco 2020 Update
Wesco 2020 Update Aggressive Pace of Wesco 2020 Execution FOOTPRINT Executing footprint optimization – consolidating single-commodity facilities OPTIMIZATION ALIGN FACILITY Establishing new multi-commodity distribution centers in Americas and EMEA INVESTMENT ORGANIZATIONAL Streamlined administrative
Slide 6: Net Sales Summary
Net Sales Summary Net Sales Net sales increase of 9% year/year ($ in millions) Long-term contract increase of 7% due to: $406.8 $395.3 . Chemical volumes +10%; hardware +4% $363.1 . Chemicals primarily reflect pass-through revenue . Participation in military and business jet demand Ad-hoc increase o
Slide 7: Income Statement Summary
Income Statement Summary (Dollars in Millions, Except Per Share Data) Q1 2018 Q4 2018 Q1 2019 First Quarter Commentary Net sales $363.1 $406.8 $395.3 Income from operations lower year/year; higher gross profit more than offset by increase in SG&A Income from operations $24.6 $22.4 $22.1 Gross profit
Slide 8: Balance Sheet Summary
Balance Sheet Summary Dec 31, March 31, June 30, Sept 30, Dec 31, At Period End 2017 2018 2018 2018 2018 ($ in millions) Cash and cash equivalents $41.9 $35.9 $45.6 $46.2 $25.2 Accounts receivable, net 253.6 287.1 302.1 283.8 296.8 Inventories 856.3 889.3 893.5 884.2 912.7 Accounts payable 161.7 194
Slide 9: Cash Flow Summary
Cash Flow Summary Dec 31, March 31, June 30, Sept 30, Dec 31, Quarter Ended 2017 2018 2018 2018 2018 ($ in millions) Net (loss) income $(0.4) $15.0 $10.8 $7.3 $6.3 Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities 15.7 11.8 16.3 25.9 16.1 Changes in as
Slide 10: Closing Remarks
Closing Remarks Strong performance in Americas; addressing challenges in EMEA Executing Wesco 2020 at accelerated pace – increased activity and investment Realized benefits expected to increase progressively in fiscal 2019; one-time costs lower by year-end Expecting Wesco 2020 run-rate benefits of a
Slide 11: Appendix
ane. Wesco Aircrafe” APPENDIX
Slide 12: Non-GAAP Financial Information
Non-GAAP Financial Information ‘‘Adjusted Net Income’’ represents Net (Loss) Income 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 December 31, September 30, December 31, 2017 2018 2018 Adjusted Net Income Net (l
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 December 31, September 30, December 31, 2017 2018 2018 Net Sales $ 363,091 $ 406,817 $ 395,311 EBITDA and Adjusted EBITDA Net
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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