HII - Earnings call transcript Q4 2017 | Huntington Ingalls Industries, Inc.

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Operator

Good day, ladies and gentlemen. And welcome to the Huntington Ingalls Industries' Fourth Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time [Operator instructions].

As a reminder, this conference maybe recorded. to conference like to now would turn over the Mr. I Relations. Vice President Blake, of Dwayne Investor Sir, may you begin.

Dwayne Blake

call. are Good the Executive of fourth conference Business Huntington Sabrina. Officer Ingalls us Thanks morning, Executive Chief Industries' quarter and and Chris Management XXXX Vice and and Petters, President Mike welcome Kastner, to With Chief today President earnings Officer. Financial

at on Relations to as President and the Harbor the Mike? metrics considered the and our pursuant website. included refer of statements that a law. may to are We Reconciliations certain certain facts, filings our Safe supplement Petters. presentation measures link turn address including the and vary are of factors non-GAAP call well earnings in to securities huntingtoningalls.com made With our presentation, appendix adjusted of anticipated plan made over not on are today's segment forward-looking of Investor in results as that, release. to reminder, and financial our Actual of from a differ. access will actual slides As Also, results. to cause are statements view federal the Mike to earnings in to Please call for I'll materially Please provisions the today, to the description the measures, that website posted our to that the our our posted these call some historical presentation is during comparable results click refer comments. the CEO, GAAP measures. remarks may Chris and Mike SEC

Mike Petters

Thanks Dwayne.

Florida Ingalls folks that our saying by and and are terrible with extending out are that in associated appreciation yesterday. prayers to tragedy start we at thoughts me Huntington the that Let

to out hearts them. reach prayers and Our

publicly nearly everyone laser-focused employees by of released But results traded Today to morning a full on seventh before financial these Tax created discuss in a operations Adoption and from our year business to that investments quarter to important Jobs has us today share of Act on fourth a and thank to me my us results, remaining want our joining quality, three XX,XXX financial thanks increase for of take produce we team this as cost good minute for couple of areas. company. and the I as on commonly Cuts Tax thoughts So, meeting. pillars the safety, year our operational schedule. topics. an of I and let opportunity referred Reform results

to additional allow that Recall investments and investment capacity competitiveness to improve our expand we increase Reform Newport for area at through improve us Navy million. intended in first News. digital billion to efficiencies protect for funds tools future is business XXXX. designated and are will of $XXX and operational commitment preserve a XXXX are in at to facilities. and operational Tax an by U.S. These programs. this facility improvements Ingalls that made late current commitment affordability, efficiency to in our The invest These $X.X Shipbuilding capital and

The our is second area employees.

and a each We provide salaried to will benefit one-time $XXX of hourly cash employee.

during communities. In accelerating will third $XXX on Chris provide XXXX more are plans. of the in for pension qualified our our our is contributions addition, area approximately we million pension outlook details remarks. discretionary his And

least return charitable with repurchases. XX% share substantially of the Even contributions free we our country opportunistic our to of live commitment path all to to our increasing work. these and organizations are charitable dividend where and across flow – to increases investments maintaining through increased cash XXXX we investments, shareholders are We annual through additional through at

providing outlook want outlook our three path funding on ago, developed to XXXX the Shipbuilding. to I revenue Congress is for year The strategy stable we our other topic discuss When based was of support ship plan and perspective force. the Defense and Navy's National reexamined to new legality that of the future XXX Strategy composition time, have Strategy record. National the Since Security the

an resolve a and Additionally, commitment included larger years. National the important We that to signal is the two if regarding fleet SHIPS budget Defense increase the and we X% with perspective a timely of sequestration over the and years stand Congress work to growth sales a demonstrates that provide five future need appropriations. XXXX envision usual comes rate for next a Act, of the nation's request which fleet. of caveats Authorization the production approximately ready adequacy This the the could Act to to larger occurs, support final

target Our long-term to on range. return XX% sales X% shipbuilding remains the in

range in the begin we lower through the from at near time-to-time period the continue to Newport end and fall term, the that of we as transition below new News on may However programs programs Ingalls. slightly at transition

range revenue return on is the expand Technical expected by to sales digit unchanged. range for and digits the Solutions expected and to outlook from on return X% in Our X% low-single sales low-single to XXXX. grow to is remains Revenue

$XXX the the quarter and Diluted both the one-time six of we for tax our $X aircraft carrier the were quarter let quarter year refinance for Ford share year. to for lead class Reform delivered to of XXXX ship than for operationally Slide for pension notes $X.X EPS redelivered the one-time billion year ships full full year. $XX.XX $X.XX USS expense and seven-year notably, was Gerald quarter R. year. the was higher the quarter the the another for Adjusting XXXX. billion year Most and for the additional X was strong some and and highlights $X.XX starting to from and cost the presentation. for on cash $XXX related full U.S. Now million Tax Navy. and me the EPS $XX.XX for for the the full as Sales discretionary or Operating was million contributions, of

the billion the backlog resulting during year which $XX funded. contract in of new is awards $XX in billion of we received year, of and Ford end the $X.X billion at

will LPD and laid delivered X NSC for H. DDG XX a Ingalls our quarter DDG of XXX christened I Lauderdale Lenah points christened Johnson provide Now, interest keel busy XXX Ralph Delbert Black, as segments. launched and Sutcliffe XXX Midgett. and D. the Fort another business few on had Higbee, they DDG

In is addition bargaining the collective complete XX% extended the Newport team additional overall. labor agreement XX% complete its CVN an At Kennedy with and structurally years. four for XX unions News, approximately

to and continue We learned incorporation the from the lead of quality the pleased work class, ship of with the R. the the USS Gerald lessons of be

Ford.

of the SSN Block track ramp on XXX while remains the be the first delivered continues to on XXXX, boats. activity program, half On to to IV up Indiana Navy submarine in

product program. In addition, underway and integrated is for process the development Columbia-class work

XX-years the extremely to partner execute XXXX with part and Turning ability valued billion results a the a of LLC provides to and long-term period remain another selected our contract our our Department at opportunity Technical to win perform of In in over on closing, as confident Energy Cleanup the key secured Alamos of XXXX Solutions, a I'm to with that was $X.X That National important is a Laboratory Los the strategy. team pleased Contract. Legacy project. very path to

shipbuilding blocks in Solutions creating We modest business poised a growth building and bright are is for benefit the our in the from to near-term future. Technical

our Our are for value we delivering and continue significantly well long-term our positioned seven has our sustainable to over credit and profile customers improved shareholders, past employees. years the

concludes will the to remarks that the for So over financials. call and Chris remarks my some I turn on Kastner now

Chris Kastner

with Thanks Mike you as some information review our full outlook year well as the results I provide and consolidated morning. XXXX. for good Today, will and fourth quarter on

to couple one-time XXXX. We early me the of I get Before debt related items earnings quarter adjusted of for our into one-time a extinguishment in included the fourth results, the in $XX expenses are that review let million of net the financials.

the Additionally, acceleration we $XX deferred segment discretionary earnings write-down $XX earnings adjustments the our contributions or refer associated million for adjusted the presentation the and of more well XXXX. website release for the million as pension on tax results. $X into our million information as with earnings for tax an impact $XXX on these assets of million the Please net to expected of reform, net,

offset of and aircraft to services quarter X.X% the million billion revenue quarter at Turning programs points. consolidated to partially $XX full a of Newport quarter presentation, in million at fourth and offset XXXX $X in and the fourth XXX Operating the one News, on $XX of of carriers increased $XX FAS/CAS due of Technical sales These DDG Ingalls. quarter in operating at support a NSC increased favorable XXXX on our versus million month primarily Ingalls, fourth sales at Slide XXXX Camber by retirement of of items quarter X the primarily by or Camber XX.X% $XXX XXXX, $XX lower driven improved of basis over by at XX.X% decreased favorable partially results from adjustment. News volumes Solutions margin and risk for of nuclear in million Newport higher performance income one-time were Navy and decreases and volumes lower quarter million

is full Slide the million This X.X% primarily to a the revenues by in ships and consolidated year on year carriers of full Moving month was at amphibious billion services increase an margin of higher $XXX Operating the was $XXX million operating driven were compared for nuclear XXXX. results XX.X%. one aircraft for Camber News Navy of for from X, sales of the volumes in Newport on year in $X.X in year, XXXX and higher XXXX, support to assault income sales Ingalls. at volumes increase and

was $XX million to an interest refinancing bond due year, the Additionally, from of $XX increase year prior for expense in the the million December.

These Reform. for This respectively, XX.X% tax income increases and XXXX. rate full effective our Our net tax deferred year and the XX% full year. quarter were the quarter assets of revaluation fourth the for primarily to XX.X%, for result Tax of was and to a as compares due XX.X%

$XXX Slide the in quarter operations to on cash free million. was $XXX from X flow Turning the was presentation, million cash and flow cash of

contribution Compared For the X% was and from were expenditures decrease cash benefit to in $XXX million Cash $XXX plan. X.X% compares million XXXX. of and The operations free contributions qualified flow in primarily the pension or full year XXXX, million discretionary and increased year, sales. capital was Fourth and which flow million to $XXX was sales year, expenditures were million net in cash $XXX million. $XXX million due and for benefit the to $XXX flow in cash million. of of to from cash or plans of capital our quarter $XXX free our cash lower post-retirement free to $XXX pension were $XXX XXXX. pension million of This operations

of in XXXX repurchased at shares $X.X number cost repurchased XXX,XXX $XX we at of million, bringing shares the of to approximately Additionally, a quarter a in $XXX the million. approximately total cost million

or $XX bringing totals $XXX in year share, million. per We to $X.XX paid million the also for the dividends of dividends paid quarter

Now Slide you let items me some on provide X. with shown XXXX as for

to in We state benefit to XX%. and million tax expect income non-current effective be the income range, our million $XX rate to tax be approximately $X

$XX sales to we expenditures expect approximately expense the We million be between X%. interest year of as expect of capital percent and and a for X%

in to As by our his expenditure Mike XXXX Reform comments, million. an allows additional through increase us Tax commitment $XXX mentioned capital

some provide pension identified Turning and and on returns based with to you X. on the are for discount Slide on XXXX contributions and These as X, FAS/CAS XXXX. pension I'd Slide like assumptions to rates asset perspective

provide is sensitive of to of you reform, baseline. Tax understanding other but I needs are in current thought because aware, changes assumption, pension our and an with it be you would As helpful to

net $XXX million expect million and FAS/CAS XXXX. of $XXX in favorable XXXX in We adjustment

plans. portion expense XXXX starting the in service XXXX-XX, new the cost no for components million adopted retirement back in income to contribution fiscal plans to income. net from million for of except makes FAS, call to and pension are ASU post-retirement $XXX standard Mike our all reminder, remarks. million, to the planned concludes year and have a mentioned, accelerate plan non-operating discretionary a $XX to and That XXXX, which XXXX. to into of $XXX over discretionary And $XX contributions and turn moves the which pension as qualified $XXX XXXX, benefit cash post-retirement I'll our we we my benefit with impact million As operating benefit pension to Q&A. of respectively, million contributions This XXXX in Dwayne

Dwayne Blake

Thanks, Chris.

it one call, and Sabrina, can yourself as initial get As a you limit to to turn queue the over on question Q&A. the through everyone the as people so many follow-up, to reminder we to one I'll possible. please manage

Operator

of you first with the come Instructions]. Thank And [Operator question the will from Doug line Harned Bernstein.

is line Your open. now

Doug Harned

it a saying more are think at and you that interested, how at about was top-line on in X% could I potentially comments look that, you you Mike, Navy those exactly the or do look goal forward. When that on? growth your you based budget going Navy, budget that is about rate XXXX base ship so outlook of to tied the XXXX XXX as guess see I what is proposals, the together, necessarily X% and I don't you because your tracking

Mike Petters

Yeah.

the I think It's for little question. – both. Doug, of bit thanks a

and came You plan Security series way that the out, know of budget We they way had this came were growth had to look growth few at to we Strategy out on to call. aligned. came are in the time. long XX-year a a to yet, And hadn't National a actually how time. if for a kind about are, and out and I save practice this Shipbuilding they out come a in they a supposed all you have before word here the talk go times chance we And

there's I that You about encouraging encouraged, Columbia-class for have that Doug, for was affecting are saying to have budget. worried me. things been a the know I without of be a been paid lot how going to what's long-time the

recognition I of that at At the that, these you also be allocated years, with great programs to contract get the of really faster. and the only budget and XX-year impact. do calling resources the the to that efficient budget me. even a programs going pay me over for though, and to effect, look been the on as looks those and next and talk we to not do to to do go the at documents about a of the day at to create in out encouraging most more XX-year it find and going basically are like fashion. budget that efficiently That's go things some trying it. involved It's you opportunity at have the one maybe we most all look things industry with, create done of end to as of to timing be the look were If to not we time the we're going couple the working encouraging to things. We're ways plan, have some plan

next says, kind looks And more of startup And, that comes so it ready how target it. programs now. facts plays way together we're and of But right years. accordingly deeper those that we'll that of adjust over about X% the of of here. optimistic get like programs that's timing the into we're get those and and we all to and know as that the out, it kind a about you we're go cautiously five thinking And the

Doug Harned

making about little investments that potential you start get rules When – while growth CapEx wait some this think you to programs that more ahead about new you and making it become is going bit something are from or that other you you'll talked if to you doing of little a investments more what more have are depreciation and to Is contract now. separate see those in a attractive the investing, to concrete. see words, be In are formalized? a might

Chris Kastner

be. our think support Doug years to view validating support investment investing ago. to for is capacity we doing to talked decision get invest the we that type Actually sort to our early. and started out what of few I What capability about a is of, needed And shipyards and our generational – is the Navy in a the need this of this

the we so, now in ahead. position call think move we're poised answer and well right And pretty to

Operator

next the Raviv John will with question you. of line come Citi. And the from Thank

open. now is Your line

John Raviv

just should being be CAGR signature passed that think X% given you Hey, supposed the or in budget back-loaded a if you and have to but normally how five you're that the growth do Is and think thing out, what it can been seeing that number. what over budgets got of Mike or years, rolls either the kind now, qualify already? so, we about front-loaded –

Chris Kastner

at CAGR, is plans we're get Chris. budget growth we could way on rather or at if five This we're looking But of and rate. look way looking a It's back-loaded. that year as front-loaded the the our comment sort not the

John Raviv

then, ability other did you there… more it and on your got investments, it, you wondering you historical context us for perspective some did And more generational the take time was How the long I Who you improvements do? what you end Mike, like paid Just it and did Understood. give what of kind if do – last what efficiency? it? made just or feel could was facility you for and for curious

Mike Petters

used could Newport That's we've business going program about. pan some Newport to down is made we it the support were I News a to confidence other what there. we made the the are program. years the is to where was and that that – has in programs because day probably the been actually all program Navy that's programs would that then be personal us going ahead that that truncated, that to mean really than got our ago those News facilities, decision are we or investments build construction quantify to some the the make a investments, in make outlast investments to our that help did talking generational Tenneco move ended and history they these a in the of They a the won't. those the going interesting better the Newport that investments value either typically Seawolf those actually XXXXs that will my to when we – can with participation led so future will first going for instance, particular program investment other in News be of we along any they and way, the of not flexibly facilities to that. of create so need have for made of pretty big sideline program, look spend have that end of few participating ability the the observation in the there all question and When programs program. investments were of At cold be war observation We capital that and that specifically – confidence the programs had valuable significant My investment are to program to out would facilities redeployed. be can some with knew they became back by

Secondly, that time. on in was the outlast at program these facilities point record would any that that

And in want it at that major first way was we always in generational from that I you invested to departure but investments, made so, that history, the least had was say past. experience we a way my the know don't this time a the and

And and about – and down so, this that we're of at we've seemed been perspective where pretty XX-year the national series we the validate budget confidently excited events strategy path. plan said, last and security the to this I that the going Like point with are.

Operator

Thank Pete from and with you come of Drexel line Hamilton. next Skibitski question will the the

Your line is now open.

Pete Skibitski

detail more gap on are how shipbuilding can XXs in more thoughts the takes I and you guys thinking got of, about and know terms shape more Congress you I any about thoughts DDG into Mike through because the things for plan think saw on the you it, NSCs, that? any it, you the thinking I for I to thing, good saw I didn't puts LHA, on on when look see Hey and just so less good five-year that little your more there just ability still –

Mike Petters

of that would it that probably the XX-year But a to and in resourcing for quite that's this as Navy different go write could this And and mean, plan you XX-year Needs, know strikes things thing I I I in go would the across that's know about if little that of the call-out phrase see there okay, were go some that place. the plan. process. the one the the what to you plan, I was look frankly, resources than that are prefer But the the to Navy – wrote. or place of and in the first doing the Nation way the a plan build I right at the XX-year to me – say bit Well, mean we part certainly expansion we the create looked

nation opposed trying the to we the Navy in nation past afford. the can to As – maybe might the done have

but pretty do engage And with so, more have get into to how that's Navy out, we I'm ways that. the and on to all with engage sits with got the opportunities perceive, where all-in-all work some we where going But to to to we'll Congress it right efficient pleased now.

Pete Skibitski

Okay.

gap, present LHA mitigate doesn't big they ways the like add workforce stands, did itself or that. as Ingalls it as more for of challenge It a marketing So, to by kind challenge looks LPDs?

Mike Petters

engaging No, that mean I better efficient it I is actually the if be we that's productive say those the more to more and build way on, wouldn't – product in way is would there would in lines. and product that executed build a something those way that. that and way say plan, build it that – that

completely it's be will one could engaging things laid be with you've improved. is that, way So, the the know we those talking of highlighted we areas LHA endorse but about. I'm you And that that say not we'll ready out, one, XXX% be on those we the to that think Navy

Operator

from will Carter come Melius. question line next the The you. with of Copeland Thank

Your line is now open.

Carter Copeland

facilities give a the color if of know you that's you capacity between might versus you the wondered CapEx splits expansion incremental us how I efforts mentioned? million $XXX about improvements just bit little

Chris Kastner

related to primarily at additional to And tools increasing Ingalls News. and and $XXX a have capacity. we is So, digital of related at million of Carter $XXX facilities this Chris. million is that Newport equipment it

Carter Copeland

looking status and Okay XXXX? I at are risk does a with pre-fund, good the basis? spot of the in to would contributions a when then pretty at assume you great XXXX look here where one you Chris pension another out you XXXX funded terms out and XXXX on that for beyond and laid put on what respect now you

Chris Kastner

good You asked question. a

funded yearend don't are we So, we are cutting a essentially in We $XXX we when but million have on XXXX, and at basis. specific XXXX half. for it numbers a give FAS liability and XX%

on don't happen asset what's and couple I go the project to to going to with and rates returns of So want discount what's going till next years.

Operator

Thank you. the next comes Rob with line from And Credit Spingarn the question of Suisse.

Your now line open. is

Rob Spingarn

as Mike, more unit some the Flight So Virginia-class changes and here revenue on through? in change increases a think, Blocks you about XX, the XX talk Virginia-class, the margin adds we on Could then that and into profile? numbers III. and DDG I on DDG flow on III on in course little and bit when detail Flight maybe timing complexity of unit the higher should just

Mike Petters

Yeah.

talk of am going sure that like I all, program I about any that. first to So, not particular am

is, don't how being a on amount work to on to retiring programs, mature new got and we for think have risk good that, risk the the credit of we've we to in the the for have about that and the talked what the where healthy start about I I in in those retire. we take lot the way we're amount right coming up V has the Block, would with next tell a of registers the up business business, Block DDGs and blended through Virginia-class. on you just you the a X% what beginning work range. until in work And before, you end RP getting multiyear pretty XX% that to we've Certainly, right so talked

we what the that the that are think going tell on today work. what I and about, work on going mature do new point heavier to people are than that that's to documents heavier this the I Navy these suggest the talking that's at would you it's have – what actually way really going we way if put going expand a is is to weight

at And we we going programs to transit – my that's comment transitioning as about That's overall. swing how Newport News. began so our

We put go bit transition are on side to little band. pressure we the at to so going Ingalls going that's through and expand, that bottom as a a of of

Rob Spingarn

with question, Well, Mike the is doesn't transition? really ramps just happens around and you of are the margin? happen, budget my forth? when that the think terms transition for When what so that that's implying Ingalls all timeframe is, in numbers is Because and that moving is when I XX.X%

Mike Petters

going a the flight of in I carrier, transition very in next hopefully LXR submarines is mean, the to be our you and is be months. that, new couple our not to kick It's successful see to go is a in going be in a base. very base. been happens, XX a of contract at flight to that that to they've like There risk new starting new contract it in There number destroyers a very means next through years. block There contract There when be retiring to base is new hard contract programs. base top. when our off going going on mature the of in our two in

up X. ramping right are We on now LHA

months, we new are of contract on. going to just every so, next our the single XX going be to over And programs about one

– term don't in of move out That's and this of that's typically the the really in to we expansion pressure take because of – really programs. And And all over But at us allows all of next contracts, extend good the as to why it's well. those stage the opportunity by to this create is the mean we timing on for the risk they the fourth that executing programs of am general, But my programs I it time are couple that years. those is two set we view to play and when to that business near expansion year. as the down so, long could a Navy that's those mature out And its going we to going a or the it years, term is point depending are program. I three maybe excited of about years. on break harvest where any us

Rob Spingarn

No. or numbers. book Mike, hit half the going conservatively over you're proven you've to your that and then decade so last

guys can is executing keep this What figure to revenue very X% have to EBIT trying well. that? out You been CAGR, change going up as very, we margins I is the profile get am if

Chris Kastner

is A XX is This in XXXX. Chris. Rob, bellwether launch So CVN the of good

Rob Spingarn

Okay.

Mike Petters

stand point, have. able of will That's programs the to good point we most be Chris. a to assess we we of That's where a sort where relative

Operator

you. Thank George from Research. the question next come Shapiro with The line of will Shapiro

is now line open. Your

George Shapiro

others whether good. are call Good not morning. know very to I the don't a the having is quality problem, but

hopefully I question. going am to given [Technical free was the for I CapEx flow So Chris, in XXXX probably I a in Difficulty]? XXXX be less But increased had not assume repeating you cash

Chris Kastner

Can you hear me now?

George Shapiro

better hear now. I much

Chris Kastner

can't I question $XXX your a I million free $XXX about was to point it's around additional million good the about in very you of pension. the cash in XXXX. relative XXXX, XXXX. to cash probably well. I We Okay. But capital flow have on pressure net think in that finished hear

George Shapiro

the at year right able going be as the on News Is Kennedy, in the be little Mike, the And pressure or and Newport next lower that that you'd bit just ensure update and also then think margins the could two. mentioned to a point the that your you're to curve to some to as you'll when learning opposed Navy? could you be if you from

Mike Petters

we know, You what major tell place much do we get launch What we are being point we but think a we say makes will investments in seeing just we with is in the able true out man the classic do I I take schedule. I is of we can you that a be all on right we question that we do Kennedy talked risk when Rob, just risk made to working. out in assessment where Kennedy of how major out. stuff And about wanted? are how watch to seeing made And much events. would the on did we the George, these have? good generally still significant are retire, that Did progress now conversation we that of hours Yeah the XXXX the construction terms I that Chris made that

that. about excited pretty are we So,

George Shapiro

concern your the XX% the comment the years? that couple next to below the is could to in margins X% is of that So, dip

Chris Kastner

This that that in brings going to the I concern retire an our with the next to register. one Every The take credit expand years. we of are we just over and we we bring not we see margins for couple every a we programs contract just it is don't work. here, it's is risk concern a about it When that register, The of it's have No. the just about observation retiring in go new until volume is observation. macro risk of new all as concern, that work it. piece

manage to So what expand we to going are have have that's and relative go to registers more volume new volume as business, the is the going which going that's to range. of to mean business, the business the going That's of of towards are of the conversation. risk we to point the mature pendulum more low will swing end more we that do

George Shapiro

that is Ingalls? more And to Newport skewed verses

Mike Petters

George, the program, across every business. It's

They've transitioning Newport through last News Block we for of to to on on getting transitioning been they've Kennedy, couple Lincoln are across of to a have III in years. the transitioning working start we IV been George see going frankly whole over V. from years. business from longer couple of as this programs years Block next couple and Their Ford Washington, to been horizons, but ready from this has this for the Block the

Operator

with question And from and Cowen come Khanna the Company. the you. Gautam Thank next will of line

open. Your now line is

Gautam Khanna

maybe contemplate you XXXX? about that $XXX on recovery cash, for Avondale down what in free comments through does Chris, on million, the your

Chris Kastner

Remember into recover contracts, billing through that at That's incorporated rates, some related is share lines run overheard our a question. point the to our is which good we from expense, restructuring settlement customer. Avondale really our

headwind at I So, you'll specific you incorporated XXXX in see have at a on versus that the Ingalls. gave of trickle XXXX and number it's the in the to working I what year million. $XXX finished relative and into capital in end of information reduction related the to we the this in we'll But day the

Gautam Khanna

rates? the embedded it's so Okay, in

Chris Kastner

absolutely, overhead it's Yes, cost.

Gautam Khanna

are guys construction for have revenue. are the over of of context What long XXXX. three of I Columbia-class what some actual you thing, us ahead you the some some Mike, could recognizing in give you you years when recognize you the design you, expecting maybe time last know lead And starting XXXX? sort next in and on will revenues items.

Chris Kastner

program Chris, We're that is that this Well, on Gautam. on working now.

first You've to over information to from relative CAGR ramp you X% Mike the the years. next the the got and it right five we'll contained boat of incrementally, but relative there rough kind here gave to that's with X%, all

Gautam Khanna

you line there XXXX from program you in what is of know in be design ballpark sort production, to XXXX, I a us like the on XX%, give call it? expect that sizing actual share of transitioned of you the to that, because revenues something any Can

Chris Kastner

the of into program, that. usually don't pass so We we'll get each on sizing

Gautam Khanna

seeing business any and into of Technical you life momentum UPI, you signs black there? in question, the Solutions. and is finally anything on that comment turning Last Are can

Chris Kastner

that's structure is up they Houston UPI, in a new they are for that and They robust pipeline. are well have good in away. well Glad stable very and operating Yes, and you squared it. has a projects Canada very so cost question. are very team they got people asked competing their adding

So, really performing UPI now. on positive right how is

Operator

and further CEO, over would now call you turn the further at to to for back Mike like now question showing Petters I I'm Mr. remarks. time. this Thank

Mike Petters

we're thanks joining we everything and call in today. mentioned us the And I you thank Well, well Okay. as executing the across for that doing. business earlier, on are

appreciate Solutions you. the want forward. are Technical thank Needs us poised today and your we going We all about Thank area. Nation our our HII. interest in build We're in we have We wins joining excited future Navy for the key and to to you

Operator

disconnect. thank great This gentlemen, all for may participating have Everyone today's your Ladies and program, conference. concludes in day. you a you

Huntington Ingalls Industries (HII) 15 Feb 182017 Q4 Earnings call transcript