Q3 2021 Earnings Call Supplement
November 3, 2021
Recent Highlights
Q3 2021
Financial
Performance
(from continuing operations)
Key
Messages
- Net sales from continuing operations of $179.8 million; Gross Margin of 35.1%
- Earnings from continuing operations of $14.7 million, up $53.2 million over prior year loss
- Adjusted EBITDA from continuing operations* of $27.8 million or 15.5%, up 70 basis points sequentially
- Diluted earnings per share from continuing operations of $0.53; Adjusted diluted earnings per share* of $0.60
- Year-to-datenet cash provided by operating activities of $14.1 million; Adjusted free cash flow* of $27.9 million, a $94.5 million improvement over the prior year
- Increased full year earnings guidance on lower sales volume
- Significant year-over-year improvements in our Medical and Industrial end markets with strong order rates
- Sequential improvement in our bearings products as we emerge from the lows of the pandemic
- Lower defense sales driven by fewer JPF deliveries compared to record levels in the prior year
- Improved gross margin performance demonstrates the power of our Operations Excellence model
- Strong balance sheet and significant available capacity under our revolving credit facility
Q3 2021 Earnings Call Supplement | 2 |
Diversified Portfolio
Year-to-date 2021 Sales down 10.9% to $533.8 million; Organic Sales* down 8.7%
Actual Year-to-date 2021 | Commercial, Business & General Aviation | |
Sales By End Market | Sales 25% of Total | |
52% Defense | Boeing & Airbus | 27% | |
(Commercial Aviation)(direct and indirect) | |||
All Other | 73% | ||
25% Commercial, Business & General Aviation | |||
(Business & General Aviation) | |||
12% Medical | OEM | 86% | |
Aftermarket | 14% | ||
11% Industrial and Other | |||
Q3 2021 Earnings Call Supplement | 3 |
Meaningful Long Term Growth
Diverse End Market Exposure with Meaningful Long Term Growth
Platform / | 2021 Sales | Long Term Growth Drivers | |
Organic Q3 | Sequential | ||
End Markets | |||
YoY | Q3 vs. Q2 | ||
↓ | ↓ | Defense exposures provide stability and growth opportunities | |
Continue to identify new opportunity on key defense platforms & | |||
Defense | programs: F/A-18,F-35, Space & Satellites, UAVs, Future Vertical | ||
Lift, Columbia class submarine | |||
↓ | ↑ | Breadth of content on a wide range of fixed wing and rotary | |
Positioned to capture share from COVID-19 headwinds | |||
Commercial, Business & General Aviation | Growing applications in new end markets; Space, eVTOL, autonomy | ||
↑ | ↓ | Aging population | |
Increasing biopharma capital budgets | |||
Medical | Strong technical advances and product development pipelines | ||
↑ | ↑ | Increasing number of robotics applications | |
Industry 4.0 and artificial intelligence | |||
Industrials | Maintenance and replacement of industrial equipment | ||
Q3 2021 Earnings Call Supplement | 4 |
Strategic Priorities
Growth through Innovation | M&A and Capital Allocation | Operational Excellence | ||
Accelerate internal | Expand capabilities through | Fully deploy operations | ||
investments in our | accretive M&A while | excellence model to drive | ||
products, facilities, and | maintaining a disciplined | significantly improved | ||
people | approach to the return of | operating and financial | ||
capital to shareholders | performance | |||
EBITDA | Free Cash | Return on |
Margin | Flow Conversion | Invested Capital |
Focused on improving performance across these metrics
Q3 2021 Earnings Call Supplement | 5 |
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Kaman Corporation published this content on 03 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2021 13:18:05 UTC.