Exhibit 99.1
LMI Aerospace Investor Presentation September 2013
* Safe Harbor Statement This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are based on Management’s beliefs and assumptions, current expectations, estimates, and projections. These statements are subject to known and unknown risks and uncertainties, certain of which are beyond the company’s ability to control or predict, and, therefore, actual results may differ materially. For example, statements concerning future benefits, opportunities and the financial impact of the acquisition of Valent Aerostructures, LLC are forward-looking statements. In addition, statements concerning LMI Aerospace’s financial condition, possible or expected results of operations, commercialization of new products, growth opportunities and plans of Management are all forward-looking statements. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date hereof. LMI Aerospace disclaims any obligation to update any forward-looking statements whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on these forward-looking statements. For more information about the risks and uncertainties the company faces, see the recent filings with the SEC, which can be found on the company’s website at http://ir.lmiaerospace.com/sec.cfm
* Presenters Ronald S. SaksPresident & Chief Executive Officer Ed DickinsonVice President & Chief Financial Officer
* LMI Aerospace Company Overview Preferred supplier to OEM’s and Tier 1 suppliersIntegrated manufacturing platform providing complex structural assemblies, kits and componentsBoeing Supplier of the Year – 2010, 2012 Aviation Partners Boeing Supplier of the Year – 2011Spirit Platinum Supplier – 2011 ~2,100 employees Provides range of design, engineering and program management services, supporting aircraft product lifecycles from conceptual design, analysis and certification through production support, fleet support and service life extensions for OEM’s and Tier 1 suppliersExtremely diverse capabilities – nose to tailBoeing Supplier of the Year – 2011~370 employees Fuselage Skins and assembliesLeading Edge components and assembliesWing SkinsWinglet Leading Edge skins and Modification Kits Cockpit Crew Floor and Bulkhead Structure AssembliesStructural Sheet Metal and ExtrusionsMachined spars and ribsTailcone assemblies and slat assemblies for “Design Build” Design of main sections of aircraft including wings, control surfaces, winglets, fuselage and empennageComposite Design ExpertiseWeight Optimization Engineering Rapid Prototyping and TestAOG Support and Structural Repair EngineeringCertification PlanningDesign for Manufacturing CostTool Design and Fabrication Products Include: Products Include: (1) Adjusted EBITDA defined as Earnings Before Interest and Taxes plus depreciation & amortization, stock based compensation, acquisition expenses and other non-recurring adjustments. (2) Reflects the midpoint of guidance. Engineering Aerostructures LMI Aerospace2013E Revenue.: $433 - $445mm 2013E Adj. EBITDA: $57.9 - $61.7mm(1)2013E Adj. EBITDA Margin: 13.6%(2)
* LMI’s Strategic Objectives Build critical mass and enhanced capabilities to win larger and more complex assembly and design-build projects Make project management expertise the cornerstone of LMI’s competitive advantage Maintain diversified and reasonable balance within our markets, customers and platformsCommercial, Business and Regional Jet, Military Develop global low cost sources of supply, through ownership or use of our supply chain, to better market to global customers
* * LMI Company Snapshot 2013E Revenue: $433 - $445 mm2013E Adjusted EBITDA: $57.9 - $61.7 mmOver 85% of Aerostructures revenue under LTAPreferred supplier to OEM and Tier 1 suppliers on legacy and new platformsBoeing Supplier of the YearAviation Partners Boeing Supplier of the Year Spirit Platinum Award Winner 737 747 777 787 Military Platforms C- Series G650 G450 / G550 Commercial Platforms F-18 V-22 Blackhawk Corporate & Regional Platforms YTD June 30, 2013 Revenue by Business YTD June 30, 2013 Aerostructures Revenue by End Market
* Sole-source LTAs with Key Customers 92% of LTA revenue sole sourceOver 85% of 2013E Aerostructures revenue under LTAStrong incumbent position on critical airframe assemblies for multiple Tier 1s and OEMs Blue Chip Customer Base Strong LTA Position Long Term Agreements with key customers provides significant revenue visibility
* LMI Aerostructures Core Competencies & Products Leading-edge wing slats, flap skins and aileronsWinglet leading edges and modification kitsFuselage and wing skinsHelicopter cabin, aft, and pylon componentsStructural sheet metalTailcone assembliesThrust reversers and engine nacelles FabricationAssemblyFinishingKittingMachiningComposites Products Core Competencies
* Valent Core Competencies & Products Products Major Program ManagementMulti-Axis MachiningComplex 5-axis, 4-axis, and 3-axis contoured machined componentsProcessing Capabilities100+ tanks38 tanks are 42’x9’x5’Complex Assemblies737 Crew Floor737 Nose Wheel WellC-Series / MRJ Pylon CradleElectro Mechanical Assemblies787 Electrical RackCommercial and military ground-based landing systems Machined Parts Core Competencies Complex Assemblies
* Valent Provides Proven Insourcing Capabilities Demonstrated Success in Major Program Management – 737 Crew Floor By 2013, Valent estimates that nearly all 251 detail crew floor parts will be machined or formed internally OutsourcedInsourced Estimated 2013 2011 2009
* * LMI Engineering Capabilities ~370 strong engineering cadre averages 10-25 years OEM experienceTurnkey engineering expertise designing major assemblies (wing, fuselage, empennage) for commercial, corporate and military sectorEngineering services provided to blue chip OEMs and Tier 1sApproximately 70 engineers currently embedded at BoeingDirect connectivity to OEM engineering systems and proprietary design toolsDesign for Cost and manufacturing optimization of metal and non-metal assemblies provides LMI with true competitive differentiation Highly Skilled Group of Engineers Broad Engineering Knowledge / Capabilities Flexible Engineering Workforce with High Utilization Rate Program Management / Design for Cost Create Barriers to Entry Industry-leading nose-to-tail aircraft engineering expertise
* Full Suite of Products and Services to Satisfy Customer Demands Capability Standalone Standalone Pro Forma Engineering High Speed Machining Sheet Metal Forming Processing Complex Assemblies LMI and Valent combination creates a unique supplier positioned to win larger, more complex work in both Aerostructures and Engineering Services
* Full Suite of Products and Services LMI Engineering Services Machined Parts Valent Major Program Management LMI has the product and services suite to supply a number of critical large assemblies to its customers at full rate Processing Structural Assembly Sheet Metal
* Potential Growth Opportunities 787 737 G650 Development Program
* Outlook for 2013 2013 Net Sales: $433.0 million - $445.0 million Gross Profit: 20.6% - 21.0% SG&A: $53.4 million - $55.0 million Interest and Other Expense: $16.1 million - $17.1 million Effective Tax Rate: 35.0% - 35.5% Capital Expenditures: $27.0 million - $30.0 million D&A, Trade Name Impairment and Stock Compensation Expense: $26.0 million - $27.1 million Adjusted EBITDA: $57.9 million - $61.7 million Consolidated Operations Aerostructures Engineering 2013 Net Sales: $346.0 million - $354.0 million ($130.0 million - $134.0 million for Valent) Gross Profit: 21.9% - 22.3% (including one-time $2.5 million Valent inventory step-up) SG&A: $37.7 million - $38.9 million (including one-time $8.0 million contingent consideration elimination) 2013 Net Sales: $87.0 million - $91.0 million Gross Profit: 15.4% - 15.9% SG&A: $15.7 million - $16.1 million (including one-time $4.2 million trade name impairment)
* Current Capitalization As of June 30, 2013 Cash: $2.6 million Revolving Credit Facility: $34.2 million Term Loan B: $223.9 million Other Secured Debt: $34.8 million Total Debt: $292.9 million Net Debt: $290.3 million Shareholders’ Equity: $209.0 million Total Book Capitalization: $499.3 million