Jefferies 2018 Global Industrials Conference
Forward-looking safe harbor statement
This presentation contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of
1995, including those relating to fiscal 2019 business performance and beyond and the Company's plans for growth and improvement
in profitability and cash flow. You can identify these statements by the use of the words "may," "will," "could," "should," "would,"
"plans," "expects," "anticipates," "continue," "estimate," "project," "intend," "likely," "forecast," "probable," "potential," and similar
expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from
those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs, the
timing and amounts of such funding, general economic and business conditions, including unforeseen weakness in the Company's
markets, effects of any U.S. Federal government shutdown or extended continuing resolution, effects of continued geopolitical unrest
and regional conflicts, competition, changes in technology and methods of marketing, delays in completing engineering and
manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances
and delivering technological innovations, changes in, or in the U.S. Government's interpretation of, federal export control or
procurement rules and regulations, market acceptance of the Company's products, shortages in components, production delays or
unanticipated expenses due to performance quality issues with outsourced components, inability to fully realize the expected benefits
from acquisitions and restructurings, or delays in realizing such benefits, challenges in integrating acquired businesses and achieving
anticipated synergies, increases in interest rates, changes to cyber-security regulations and requirements, changes in tax rates or tax
regulations, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, unanticipated
costs under fixed-price service and system integration engagements, and various other factors beyond our control. These risks and
uncertainties also include such additional risk factors as are discussed in the Company's filings with the U.S. Securities and Exchange
Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2017. The Company cautions readers not to
place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no
obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.
Use of Non-GAAP (Generally Accepted Accounting Principles) Financial Measures
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the Company provides
adjusted EBITDA, adjusted income, adjusted EPS, and free cash flow, which are non-GAAP financial measures. Adjusted EBITDA,
adjusted income, and adjusted EPS exclude certain non-cash and other specified charges. The Company believes these non-GAAP
financial measures are useful to help investors better understand its past financial performance and prospects for the future. However,
these non-GAAP measures should not be considered in isolation or as a substitute for financial information provided in accordance
with GAAP. Management believes these non-GAAP measures assist in providing a more complete understanding of the Company's
underlying operational results and trends, and management uses these measures along with the corresponding GAAP financial
measures to manage the Company's business, to evaluate its performance compared to prior periods and the marketplace, and to
establish operational goals. A reconciliation of GAAP to non-GAAP financial results discussed in this presentation is contained in the
Appendix hereto.
© 2018 Mercury Systems, Inc.
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