Wesco Aircraft — Q2 2019 Earnings Presentation
16 slides from Wesco Aircraft's earnings presentation, May 2, 2019
Slide 1: Q2 2019 Earnings Call Presentation
Q2 2019 EARNINGS CALL PRESENTATION May 2, 2019 Todd Renehan Chief Executive Officer Kerry Shiba Executive Vice President and Chief Financial Officer Informationinthispresentationshouldbereadinconjunction with Wesco Aircraft’s earnings press release and tables for the fiscal 2019 second quarter.
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: Q2 2019 Operating and Financial Results
Overview Q2 2019 Operating and Financial Results Q2 2019 Results Robust sales growth driven by solid performance in all product categories $426M Net Sales Wesco 2020 initiatives accelerated; addressing EMEA challenges 25.5% Gross Margin Reported net income lower primarily due to temporary costs and
Slide 4: Business Update
Business Update Double‐digit ad‐hoc sales growth – capturing more business with largest customers Long‐term contracts increased at solid pace – higher volumes and new business Robust pace of new and expanded business and long‐term contract renewals Temporary costs and investments partially offset by
Slide 5: Segment Update
Segment Update Strong performance in Americas – top‐line growth achieved in all major products Operating income in Americas stable; higher gross profit offset by $5.4 million in temporary costs Adjusted EBITDA and adjusted EBITDA margin in Americas gained momentum EMEA business underperformed – lowe
Slide 6: Wesco 2020 Update
Wesco 2020 Update Aggressive Pace of Execution; More Cost Savings Realized FOOTPRINT Deeper into facility consolidations; inventory transfers accelerating OPTIMIZATION ALIGN FACILITY Opening previously announced multi‐commodity distribution centers INVESTMENT ORGANIZATIONAL Completed consolidation o
Slide 7: Net Sales Summary
Net Sales Summary Net Sales Net sales increase of 9% year/year – solid performance across the ($ in millions) board, particularly in chemicals and ad‐hoc hardware in Americas $426.5 Sales under long‐term contracts increase of 7% due to: $395.3 . Chemical products/services +9%; hardware +4% $390.2 .
Slide 8: Income Statement Summary
Income Statement Summary (Dollars in Millions, Except Per Share Data) Q2 2018 Q1 2019 Q2 2019 Second Quarter Commentary Net sales $390.2 $395.3 $426.5 Gross profit increase year‐over‐year – higher sales volume, partially Income from operations $33.2 $22.1 $29.8 offset by lower gross margin Significa
Slide 9: Balance Sheet Summary
Balance Sheet Summary March 31, June 30, Sept 30, Dec 31, March 31, At Period End 2018 2018 2018 2018 2019 ($ in millions) Cash and cash equivalents $35.9 $45.6 $46.2 $25.2 $32.7 Accounts receivable, net 287.1 302.1 283.8 296.8 316.7 Inventories 889.3 893.5 884.2 912.7 890.1 Accounts payable 194.1 1
Slide 10: Cash Flow Summary
Cash Flow Summary March 31, June 30, Sept 30, Dec 31, March 31, Quarter Ended 2018 2018 2018 2018 2019 ($ in millions) Net income $15.0 $10.8 $7.3 $6.3 $12.0 Adjustments to reconcile net income to net cash (used in) provided by operating activities 11.8 16.3 25.9 16.1 8.7 Changes in assets and liabi
Slide 11: Closing Remarks
Closing Remarks Robust top‐line growth; winning new business and renewing contracts at solid rate Americas business gaining momentum; addressing challenges in EMEA Wesco 2020 benefits expected to increase in second half of fiscal 2019 and into fiscal 2020 Expecting Wesco 2020 run‐rate benefits of at
Slide 12: Appendix
ane. Wesco Aircraft” APPENDIX
Slide 13: Non-GAAP Financial Information
Non‐GAAP Financial Information ‘‘Adjusted Net Income’’ represents Net Income before: (i) amortization of intangible assets, (ii) amortization or write‐off of deferred debt issuance costs, (iii) special items and (iv) the tax effect of items (i) through (iii) above calculated using an estimated effec
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 March 31, December 31, March 31, 2018 2018 2019 Adjusted Net Income Net income $
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 March 31, December 31, March 31, 2018 2018 2019 Net Sales $ 390,183 $ 395,311 $ 426,474 EBITDA and Adjusted EBITDA Net income
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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