Exhibit 99.1
Management Presentation
May 2012
LMI AEROSPACE PROPRIETARY
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Safe Harbor Statements
In addition to the Company’s past performance and other historical facts, this presentation
contains certain forward-looking information, such as current expectations as to future
performance and schedules. Such forward-looking information is based on management’s
current assumptions and analysis, which are subject to numerous business risks and
uncertainties, including risk and uncertainties that relate to acquisitions. There can be no
assurance that these assumptions will prove to be accurate in the future. Actual results may
differ from these forward-looking statements as a result of, among other things, the factors
detailed from time to time in the Company’s filings with the Securities and Exchange
Commission. Please refer to the Risk Factors contained in the Company’s annual report on Form
10-K for the year ended December 31, 2011.
contains certain forward-looking information, such as current expectations as to future
performance and schedules. Such forward-looking information is based on management’s
current assumptions and analysis, which are subject to numerous business risks and
uncertainties, including risk and uncertainties that relate to acquisitions. There can be no
assurance that these assumptions will prove to be accurate in the future. Actual results may
differ from these forward-looking statements as a result of, among other things, the factors
detailed from time to time in the Company’s filings with the Securities and Exchange
Commission. Please refer to the Risk Factors contained in the Company’s annual report on Form
10-K for the year ended December 31, 2011.
LMI AEROSPACE PROPRIETARY
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Senior Management
Lawrence E. Dickinson
CFO & Secretary
Ronald S. Saks
CEO & Director
> Chief Executive Officer of LMI since 1984
> Chief Financial Officer of LMI since 1993
LMI AEROSPACE PROPRIETARY
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(1) Based on financials for the 12-month period ended December 31, 2011
Investment Highlights
> Leading provider of design engineering services, structural assemblies, kits and components for
aerospace and defense markets
aerospace and defense markets
> Well-positioned on key programs with leading OEMs and Tier-1 market participants
> Favorable long-term industry trends toward outsourcing engineering, production and assembly
> Broad revenue / customer diversification(1)
• 34% services, 66% production and assembly
• 38% large commercial, 22% military, 31% regional and business
• Diversification within market sectors remains a focus
> Growth strategy leverages existing programs, integrated design-build model and disciplined M&A
approach
approach
> Experienced management team with an average of over 20 years’ experience and strong industry
relationships
relationships
> Large capital expenditures planned for growth and redundancy
> Research and development team initiating in second quarter
LMI AEROSPACE PROPRIETARY
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Operating Income(1)
Revenue(1)
Investment Highlights (continued)
> Proven track record of financial performance
> Overall 2012 Revenues are expected to be $282 - $298 million
• Aerostructures: $186 - 198 million
• Engineering Services: $96 - $100 million
(US$ in millions)
(1) 2012E reflects midpoint of Company guidance as of May 7, 2012
LMI AEROSPACE PROPRIETARY
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Strong Relationships with OEMs & Tier 1s
(1)
(1) Acquired by Triumph Group in 2010
Recent Awards
•D3 Subsidiary wins Boeing Supplier of the Year for non-production for 2011
•Aerostructures’ Savannah location wins APB Supplier of the Year for 2011
LMI AEROSPACE PROPRIETARY
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Strategic Initiatives
> Achieve organic growth within our engineering and manufacturing businesses as well as
through new design-build projects
through new design-build projects
> Make project management expertise the cornerstone of our competitive advantage
> Continue to diversify our customers across three major market sectors and within those
sectors
sectors
> Pursue strategic acquisitions to build critical mass and capabilities to win larger, more
complex projects
complex projects
> Provide exemplary customer service - mentoring, design for cost
> Target perfect quality and delivery performance
> Implement global sourcing strategy to provide value to our customers
> Continue to invest in training and development of our workforce
LMI AEROSPACE PROPRIETARY
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LMI Offers Full Lifecycle Support from Engineering &
Design to Assembly & Manufacturing
Design to Assembly & Manufacturing
> Customer defines
product or project
requirements
product or project
requirements
> Done together with
customer
customer
> Time and materials
billing
billing
> Testing on fixed
price basis
price basis
> Joint input between
LMI and Customer
LMI and Customer
> Quote in
competition with
others
competition with
others
> Build to print
> Long-term
contracts with
customers
contracts with
customers
LMI AEROSPACE PROPRIETARY
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Design-Build Strategy
“We will provide integrated solutions to our
aerospace customers through creative and
value-driven engineering and manufacturing
processes, throughout the product life cycle.”
aerospace customers through creative and
value-driven engineering and manufacturing
processes, throughout the product life cycle.”
> LMI is positioned as a “turnkey” aerospace systems
provider, capitalizing on the accelerating trend of OEMs
outsourcing complex aircraft development projects
provider, capitalizing on the accelerating trend of OEMs
outsourcing complex aircraft development projects
> Technical leadership through over 300 highly skilled D3
engineers and 49 Intec technicians
engineers and 49 Intec technicians
> New programs expected to require substantial annual
investments in engineering and tooling
investments in engineering and tooling
> Continue to seek acquisitions to broaden capabilities
and support production of larger, complex assemblies
and support production of larger, complex assemblies
Select Customers
LMI AEROSPACE PROPRIETARY
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MRJ Tailcone Development Schedule
> MJET required a supplier with design, tooling and
fabrication capabilities
fabrication capabilities
> Engineering and tooling funded through milestone
payments
payments
> 1st unit estimated to be delivered in 1st quarter 2013
1 Jan 10
1 Jul 10
1 Jan 11
1 Jun 11
1 Jan 12
1st Flight
PDR
CDR-1
CDR-2
Go-Ahead
Production
Authorization
(estimated)
1 Jun 12
1 Jan 13
1st Delivery
To MITAC
(estimated)
LMI AEROSPACE PROPRIETARY
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Integrated Design-Build Experience
> Full Design & Development Responsibility:
• Structural Design & Analysis to Civil & Military Requirements
• Full test article and production development and test execution
• Certification Test Support
• ITAR Military program
> Model-Based Design:
• CATIA V5 with Teamcenter PLM
> Supplier Management
• Full supply chain management
for procured items
> Product Support:
• MTBUR & MTBF Requirements
• LRU Remove/Replacement Times
• Manuals
EMBRAER KC-390 Slat System - Oct 2011
LMI AEROSPACE PROPRIETARY
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Add New Programs and Market Share Gains
> Pursue new programs with both new and existing customers
• Add new programs across Commercial, Military, Regional and Business Jet sectors
• Aerostructures and Engineering segments have consistently added 4-6 new major
programs per year
programs per year
> New design-build programs expected to require substantial initial investments in engineering
and tooling
and tooling
• Satisfy stringent ROI requirement
> Potential long-term commitment of in-house design resources may be necessary
LMI AEROSPACE PROPRIETARY
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Diversified Revenues Across Aerospace Sectors
Disciplined diversification strategy designed to protect LMI from downturns in any single sector
(1) Sector revenue breakdown based on financials for the 12-month period ended December 31, 2011
Eliminations for the 12-month period totaled $1.6 million and spread ratably across sector percentages
FY 2011 Engineering Services Revenue - $87.5m
FY 2011 LMI Revenue - $254.0m
Regional and Business Jet
Large Commercial Aircraft
Military Aircraft
Other
(US$ in millions)
$96.4
LMI AEROSPACE PROPRIETARY
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Growth through Acquisitions
> Plan to acquire businesses with solid management teams and technical capabilities to
continue expanding the complexity of our products
continue expanding the complexity of our products
• Composites and other non-metal products
• High speed machining
> Acquisition program from 1998 through 2009 resulted in 8 successfully acquired and
integrated businesses
integrated businesses
• Broadened our breadth of engineering and manufacturing capabilities
• Diversified our markets and programs served
LMI AEROSPACE PROPRIETARY
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LMI Programs
Large Commercial Aircraft
Military Aircraft
Regional and Business Jet
767 Winglet
Modification
Modification
Boeing Structural
Design
Design
767 Tanker
Sikorsky Cabin
Assembly
Assembly
Fuselage Kit
MJET
> Wing/Wingbox Design
> Fuselage/Empennage Design
> Composite Design Expertise
> Weight Improvement Studies
> Tool Design and Fabrication
> Rapid Prototyping and Test
> Wing Skins and
Components
Components
> Fuselage Skins and
Components
Components
> Leading Edges
> Winglet Leading Edge
and Modification Kit
and Modification Kit
> Structural Sheet Metal and
Extruded Components
Extruded Components
> Detail Interior Components
> Helicopter Components
> Helicopter Assemblies
> Housings and Assemblies
for Gun Turrets
for Gun Turrets
> Avionics and Tactical
Software Development
Software Development
> Winglet Design
> Certification Planning
and Support
and Support
> Design for
Manufacturing Cost
Manufacturing Cost
Aerostructures Products
Engineering Services
G-650
G-550
Blackhawk Models
CH-53K
787
777
LMI Platform
LMI AEROSPACE PROPRIETARY
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History of Financial Success
(US$ in millions) | |||
Revenue | $282.0 | - | $298.0 |
Gross Profit Margin | 24.2% | - | 25.3% |
SG&A | $36.7 | - | $37.7 |
Interest Expense | $1.0 | ||
Tax Rate | 35.3% | ||
D&A, Stock Comp. | $9.7 |
(US$ in millions) | Aerostructures | Engineering Services |
Revenue | $186.0-$198.0 | $96.0-$100.0 |
Gross Profit Margin | 27.6%-28.8% | 17.5 % - 18.5% |
SG&A | $28.5-$29.1 | $8.2-$8.6 |
Guidance for 2012
Revenue(1)
Operating Income(1)
(US$ in millions)
Segment Guidance for 2012
LMI AEROSPACE PROPRIETARY
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> Significant liquidity
• $125 million revolver with additional $25 million in an accordion feature
• Shelf registration on file with SEC
(1) 2012E reflects midpoint of Company guidance as of May 7, 2012. EBITDA equals operating income plus depreciation,
amortization, stock compensation expense and goodwill impairment
(2) $125 million capacity
(3) Excludes capital leases and equipment notes
12/31/11 | 3/31/12 | |
Cash & Equivalents | $ 7.9 | $ 5.5 |
Drawn revolver(2) | - | - |
Net Debt(3) | $(7.9) | $(5.5) |
Undrawn revolver(2) | $125.0 | $125.0 |
Strong Cash Generation
EBITDA(1)
Current Net Debt and Revolver Capacity
(US$ in millions)
(US$ in millions)
LMI AEROSPACE PROPRIETARY
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Investment Highlights
> Leading provider of design engineering services, structural assemblies, kits and
components for aerospace and defense markets
components for aerospace and defense markets
> Well-positioned on key programs with leading OEMs and Tier-1 market participants
> Favorable long-term industry trends toward outsourcing engineering, production and
assembly
assembly
> Broad revenue / customer diversification
> Demonstrated track record of strong financial performance
> Growth strategy leverages existing programs, disciplined M&A approach and integrated
design-build model
design-build model
> Experienced management team with an average of over 20 years’ experience and strong
industry relationships
industry relationships