Oshkosh Corporation First Quarter Fiscal 2013 January 25, 2013 - - PowerPoint PPT Presentation
Oshkosh Corporation First Quarter Fiscal 2013 January 25, 2013 Charles L. Szews Chief Executive Officer Wilson R. Jones President and Chief Operating Officer David M. Sagehorn Executive Vice President and Chief Financial Officer Patrick
Charles L. Szews Chief Executive Officer Wilson R. Jones President and Chief Operating Officer David M. Sagehorn Executive Vice President and Chief Financial Officer Patrick N. Davidson Vice President, Investor Relations
This presentation includes statements that the Company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, are forward-looking statements. When used in this press release, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control, which could cause actual results to differ materially from those expressed or implied by such forward-looking
markets, especially in the current environment where there are conflicting signs regarding the global economic outlook and the ability of the U.S. government to resolve budgetary and debt issues; the expected level and timing of the U.S. DoD procurement of products and services and funding thereof; risks related to reductions in government expenditures in light of U.S. defense budget pressures and an uncertain DoD tactical wheeled vehicle strategy; the ability to comply with laws and regulations applicable to U.S. government contractors; the ability to increase prices to raise margins or offset higher input costs; increasing commodity and other raw material costs, particularly in a sustained economic recovery; risks related to the Company’s exit from its ambulance business, including the amounts of related costs and charges; risks related to facilities consolidation and alignment, including the amounts of related costs and charges and that anticipated cost savings may not be achieved; the duration of the ongoing global economic weakness, which could lead to additional impairment charges related to many of the Company’s intangible assets and/or a slower recovery in the Company’s cyclical businesses than Company or equity market expectations; the potential for the U.S. government to competitively bid the Company’s Army and Marine Corps contracts; risks related to the collectability of receivables, particularly for those businesses with exposure to construction markets; the cost of any warranty campaigns related to the Company’s products; risks related to production or shipment delays arising from quality or production issues; risks associated with international operations and sales, including foreign currency fluctuations and compliance with the Foreign Corrupt Practices Act; risks related to actions of activist shareholders; and risks related to the Company’s ability to successfully execute on its strategic road map and meet its long-term financial goals. Additional information concerning these and other factors is contained in the Company’s filings with the Securities and Exchange Commission, including the Form 8-K filed today. All forward-looking statements speak only as of the date of this press release. The Company assumes no obligation, and disclaims any obligation, to update information contained in this
quarterly earnings conference call, if at all.
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Net Sales
(millions)
Adjusted EPS*
* Non-GAAP results. See appendix for reconciliation to GAAP results.
$1,761 $1,876 $0.60 $0.39 $0.00 $0.25 $0.50 $0.75 $1.00 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 FY13 FY12 Net Sales EPS
4 OSK First Quarter 2013 Earnings Call January 25, 2013 Source: National Association of Home Builders
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OSK First Quarter 2013 Earnings Call 6 January 25, 2013
OSK First Quarter 2013 Earnings Call 7 January 25, 2013
OSK First Quarter 2013 Earnings Call 8 January 25, 2013
‒ Lower defense M-ATV and related aftermarket parts volumes + Non-defense demand + Timing of deliveries
+ Price realization + Improved fire & emergency performance
(Dollars in millions, except per share amounts)
OSK First Quarter 2013 Earnings Call 9 January 25, 2013
* Non-GAAP results. See Appendix for reconciliation to GAAP results.
10
(share-based compensation and higher IT investment)
reinstatement benefit
Sales (billions) $2.8-$3.0 $3.2-$3.3 $0.72-$0.75 $0.72-$0.75 Operating Income Margin ~10.5% ~6.5% 2.0%-2.5% 4.5%-5.0%
driven construction demand and U.A.E. M-ATV sales
* FY13 expectations exclude certain non-GAAP adjustments (see Appendix)
January 25, 2013 OSK First Quarter 2013 Earnings Call
** Excludes impact of any additional share repurchases in Q2 – Q4
Patrick N. Davidson Vice President, Investor Relations (920) 966-5939 pdavidson@oshkoshcorp.com Tina Schmiedel Director, Investor Relations (920) 233-9235 tschmiedel@oshkoshcorp.com
(Dollars in millions)
Elimination of intersegment M-ATV sales to defense segment Higher telehandler and aftermarket volume in North America Price realization
Price realization Lower intersegment sales Product mix
prior year to $767 million
Up sharply from prior quarter due to timing of orders from large rental customers
January 25, 2013 OSK First Quarter 2013 Earnings Call 12
* FY12 results include $122.6 million of intersegment revenue for M-ATV production. ** Non-GAAP results. See Appendix for reconciliation to GAAP results.
Lower M-ATV and related aftermarket volume Higher FHTV and FMTV volume
Adverse product mix Year/year improvement in FMTV margins Favorable contract definitization and warranty adjustments
(Dollars in millions)
January 25, 2013 OSK First Quarter 2013 Earnings Call 13
* Non-GAAP results. See Appendix for reconciliation to GAAP results.
(Dollars in millions)
+ Volume, including timing of international deliveries + Product mix
+ Improved operational efficiencies + Improved absorption related to higher volumes + Price realization
January 25, 2013 OSK First Quarter 2013 Earnings Call 14
* Non-GAAP results. See Appendix for reconciliation to GAAP results. ** Excludes Medtec ambulance orders in backlog at December 31, 2012 and 2011, respectively.
+ Higher concrete mixer volume + Higher parts & service sales Lower chassis volume
+ Product mix Investments in MOVE initiatives
January 25, 2013 15 OSK First Quarter 2013 Earnings Call
(Dollars in millions)
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ARFF Aircraft Rescue and Firefighting MECV Modernized Expanded Capability Vehicle AWP Aerial Work Platform MRAP Mine Resistant Ambush Protected CNG Compressed Natural Gas MSVS Medium Support Vehicle System (Canada) DoD Department of Defense MTT Medium Tactical Truck EAME Europe, Africa & Middle East NPD New Product Development EMD Engineering & Manufacturing Development OI Operating Income EPS Diluted Earnings Per Share PLS Palletized Load System FHTV Family of Heavy Tactical Vehicles PUC Pierce Ultimate Configuration FMS Foreign Military Sales RCV Refuse Collection Vehicle FMTV Family of Medium Tactical Vehicles RFP Request for Proposal HEMTT Heavy Expanded Mobility Tactical Truck ROW Rest of World HET Heavy Equipment Transporter SMP Standard Military Pattern (Canadian MSVS) HEWATT HEMTT-Based Water Tender TACOM Tank-automotive and Armaments Command HMMWV High Mobility Multi-Purpose Wheeled Vehicle TDP Technical Data Package JLTV Joint Light Tactical Vehicle TFFT Tactical Fire Fighting Truck JPO Joint Program Office TPV Tactical Protector Vehicle JROC Joint Requirements Oversight Council TWV Tactical Wheeled Vehicle JUONS Joint Urgent Operational Needs Statement UCA Undefinitized Contract Action L-ATV Light Combat Tactical All-Terrain Vehicle UIK Underbody Improvement Kit (for M-ATV) LVSR Logistic Vehicle System Replacement M-ATV MRAP All-Terrain Vehicle
OSK First Quarter 2013 Earnings Call 17 January 25, 2013
most directly comparable GAAP measures (in millions, except per share amounts):
2012 2011 Consolidated Non-GAAP provision for income taxes 29.0 $ 19.2 $ Income tax benefit associated with pre-tax charges (6.1) (1.4) Discrete tax benefits (1.9) (6.7) GAAP provision for income taxes 21.0 $ 11.1 $ Non-GAAP income from continuing operations attributable to Oshkosh Corporation, net of tax 55.1 $ 34.6 $ Restructuring-related benefits (charges), net of tax 0.2 (0.6) Curtailment expense, net of tax (0.6)
(10.4) (1.8) Discrete tax benefits 1.9 6.7 GAAP income from continuing operations attributable to Oshkosh Corporation, net of tax 46.2 $ 38.9 $ Non-GAAP earnings per share attributable to Oshkosh Corporation from continuing operations-diluted 0.60 $ 0.39 $ Restructuring-related benefits (charges), net of tax
Curtailment expense, net of tax
(0.11) (0.02) Discrete tax benefits 0.02 0.07 GAAP earnings per share attributable to Oshkosh Corporation from continuing operations-diluted 0.51 $ 0.43 $ Net cash flows provided by operating activities 45.1 $ 61.9 $ Additions to property, plant and equipment (8.3) (14.2) Additions to equipment held for rental (1.1) (3.5) Proceeds from sale of equipment held for rental 3.5 1.1 Free cash flow 39.2 $ 45.3 $ December 31, Three Months Ended
2012 2011 Access equipment segment Non-GAAP operating income 48.9 $ 12.6 $ Restructuring-related benefits
GAAP operating income 48.9 $ 13.1 $ Defense segment Non-GAAP operating income 61.8 $ 92.4 $ Curtailment expense (0.9)
60.9 $ 92.4 $ Fire & emergency segment Non-GAAP operating income (loss) 5.5 $ (8.4) $ Restructuring-related benefits (charges) 0.3 (1.5) GAAP operating income (loss) 5.8 $ (9.9) $ Corporate Non-GAAP operating expenses (26.4) $ (24.3) $ Tender offer and proxy contest costs (16.3) (2.8) GAAP operating expenses (42.7) $ (27.1) $ Consolidated Non-GAAP operating income 97.7 $ 79.2 $ Restructuring-related benefits (charges) 0.3 (1.0) Curtailment expense (0.9)
(16.3) (2.8) GAAP operating income 80.8 $ 75.4 $ Three Months Ended December 31,
January 25, 2013 18 OSK First Quarter 2013 Earnings Call
most directly comparable GAAP measures (in millions, except per share amounts):
Low High Corporate Non-GAAP operating expenses (130.0) $ (135.0) $ Tender offer and proxy contest costs (16.3) (16.3) GAAP operating expenses (146.3) $ (151.3) $ Consolidated Non-GAAP operating income 420.0 $ 455.0 $ Restructuring-related benefits 0.3 0.3 Curtailment expense (0.9) (0.9) Tender offer and proxy contest costs (16.3) (16.3) GAAP operating income 403.1 $ 438.1 $ Non-GAAP earnings per share attributable to Oshkosh Corporation from continuing operations-diluted 2.80 $ 3.05 $ Restructuring-related benefits, net of tax
(0.11) (0.11) Discrete tax benefits 0.02 0.02 GAAP earnings per share attributable to Oshkosh Corporation from continuing operations-diluted 2.71 $ 2.96 $ Net cash flows provided by operating activities 175.5 $ 200.5 $ Additions to property, plant and equipment (60.0) (60.0) Additions to equipment held for rental (19.0) (19.0) Proceeds from sale of equipment held for rental 3.5 3.5 Free cash flow 100.0 $ 125.0 $
Fiscal 2013 Expecations