Press Release

Triumph Group Reports First Quarter Fiscal 2020 Results

Reports Organic Revenue Growth of 6%

Maintains Fiscal Year 2020 Guidance including Positive Free Cash Flow

Company Release - 7/31/2019 6:00 AM ET

BERWYN, Pa., July 31, 2019 /PRNewswire/ -- Triumph Group, Inc. (NYSE: TGI) ("Triumph" or the "Company") today reported financial results for its first quarter of fiscal year 2020, which ended June 30, 2019.

First Quarter Fiscal 2020

  • Net sales of $730.2 million
  • Operating income of $35.5 million with operating margin of 5%; adjusted operating income of $41.6 million with adjusted operating margin of 6%
  • Net income of $18.1 million, or $0.36 per share; adjusted net income of $22.9 million, or $0.46 per diluted share
  • Cash flow from operations of $5.0 million, and free cash flow use was ($3.1) million

Outlook for Fiscal 2020

  • Net sales guidance of between $2.8 to $2.9 billion
  • GAAP and adjusted earnings per diluted share of between $2.35 to $2.95
  • Free cash flow of between $0 to $50.0 million

"Triumph Group had a strong start to our fiscal 2020," stated Daniel J. Crowley, Triumph's president and chief executive officer. "During our fiscal first quarter, all three of our business segments delivered year-over-year organic growth in net sales, with our Product Support segment posting organic sales growth for the sixth consecutive quarter.  Additionally, Product Support and Aerospace Structures generated strong year-over-year organic improvement in operating margin.  We see significant opportunity for margin expansion in Integrated Systems over the balance of the year."

Mr. Crowley continued, "Our first quarter cash usage represents a significant improvement over the prior year and establishes a solid start to the year.  We expect to be cash flow positive in the second half of the year as the benefits of our Path to Value actions come to fruition.  The Boeing 737 MAX delays are currently forecasted to impact Triumph revenue by less than 2% in the year with offsetting actions in progress.  Given our solid first quarter results coupled with the enhanced level of visibility and stability we've instilled across our operations, we remain confident with our full-year commitments and guidance." 

Mr. Crowley concluded, "Triumph is a healthier and better performing company than it was a year ago.  While we still have work to accomplish, we're confident that we are well positioned to deliver predictable results and increased shareholder value."

First Quarter Fiscal Year 2020 Overview

After accounting for divestitures, sales for the first quarter of fiscal 2020 were up 5.8% organically from the comparable prior year period.  Growth was driven by increased volumes on engine and military rotorcraft components, aftermarket accessory services, and continuing structures programs and new engineering services.

First quarter operating income of $35.5 million included a $3.1 million adjustment for loss on previous divestitures and $3.0 million of restructuring costs.  Net income for the first quarter of fiscal year 2020 was $18.1 million, or $0.36 per share.  On an adjusted basis, net income was $22.9 million, or $0.46 per diluted share.  Triumph's results included the following: 

 

($ millions except EPS)


   Pre-tax


  After-tax


Diluted EPS

Income from Continuing Operations - GAAP 


$          22.9


$        18.1


$         0.36








Loss on divestitures


3.1


2.5


0.05

Transformation related costs:







   Restructuring costs (cash)


3.0


2.3


0.05








Adjusted Income from Continuing Operations - non-GAAP


$         29.0


$        22.9


$         0.46

 

The number of shares used in computing diluted earnings per share for the first quarter of 2020 was 50.3 million.

Backlog was $3.7 billion and increased 1% organically compared to the prior year period and is flat on a sequential basis.  This reflects growth in Integrated Systems partially offset by sunsetting legacy Aerospace Structures programs. 

For the three-months ended June 30, 2019, cash flow from operations was $5.0 million, reflecting continued investment in ramping programs and liquidation of approximately $20.0 million in prior period advances against current period deliveries.     

Outlook

Based on anticipated aircraft production rates and including the impacts of pending program transfers, the Company continues to expect that net sales for fiscal year 2020 will be approximately $2.8 to $2.9 billion.

The Company expects fiscal year 2020 earnings per share to be $2.35 to $2.95, per diluted share.      

The Company expects fiscal year 2020 cash provided from operations of $50.0 to $110.0 million, and free cash flow of $0 to $50.0 million.

The Company's current outlook reflects adjustments detailed in the attached tables but excludes the impact of any potential future divestitures. 

Conference Call

Triumph Group will hold a conference call today, July 31st at 8:30 a.m. (ET) to discuss the first quarter fiscal year 2020 results. The conference call will be available live and archived on the Company's website at http://www.triumphgroup.com.  A slide presentation will be included with the audio portion of the webcast, which presentation has been posted on the Company's website at http://ir.triumphgroup.com/QuarterlyResults. An audio replay will be available from July 31st to August 8th by calling (855) 859-2056 (Domestic) or (404) 537-3406 (International), passcode #4958108.

About Triumph Group

Triumph Group, Inc., headquartered in Berwyn, Pennsylvania, designs, engineers, manufactures, repairs and overhauls a broad portfolio of aerospace and defense systems, components and structures. The company serves the global aviation industry, including original equipment manufacturers and the full spectrum of military and commercial aircraft operators.

More information about Triumph can be found on the Company's website at www.triumphgroup.com.

Forward Looking Statements

Statements in this release which are not historical facts are forward-looking statements under the provisions of the Private Securities Litigation Reform Act of 1995, including statements of expectations of or assumptions about financial and operational performance, revenues, earnings per share, cash flow or use, cost savings and operational efficiencies and organizational restructurings.  All forward-looking statements involve risks and uncertainties which could affect the Company's actual results and could cause its actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company.  Further information regarding the important factors that could cause actual results to differ from projected results can be found in Triumph Group's reports filed with the SEC, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2019.

FINANCIAL DATA (UNAUDITED) ON FOLLOWING PAGES

 

 

FINANCIAL DATA  (UNAUDITED)















TRIUMPH GROUP, INC. AND SUBSIDIARIES

(in thousands, except per share data)





































Three Months Ended










June 30,
















CONDENSED STATEMENTS OF INCOME








2019


2018






























Net sales









$       730,231


$       832,900
















Cost of sales (excluding depreciation shown below)








582,233


770,214


Selling, general & administrative expenses








62,337


81,656


Depreciation & amortization expense








44,050


38,812


Restructuring expenses








2,964


4,047


Loss on divestitures








3,136


4,719


       Operating income (loss)








35,511


(66,548)
















Interest expense and other








27,491


25,493


Non-service defined benefit income








(14,875)


(16,538)


Income tax expense








4,807


1,031
















Net income (loss)








$        18,088


$        (76,534)
















Earnings per share - basic:


























Net income (loss)








$            0.36


$           (1.54)
















Weighted average common shares outstanding - basic








49,854


49,552
















Earnings per share - diluted:


























Net income (loss)








$            0.36


$           (1.54)
















Weighted average common shares outstanding - diluted








50,295


49,552
















Dividends declared and paid per common share








$            0.04


$            0.04


 

 

FINANCIAL DATA (UNAUDITED)















TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands, except per share data)















BALANCE SHEET






Unaudited 


Audited 










June 30,


March 31,












2019


2019








Assets









Cash and cash equivalents








$        28,927


$         92,807



Accounts receivable, net








331,509


373,590



Contract assets








323,869


326,667



Inventory, net 








470,448


413,560



Prepaid and other current assets








23,907


34,446




Current assets








1,178,660


1,241,070

















Property and equipment, net








515,212


543,710



Goodwill








581,631


583,225



Intangible assets, net








418,494


430,954



Other, net








129,269


55,615

















Total assets








$    2,823,266


$    2,854,574






















Liabilities & Stockholders' Deficit























Current portion of long-term debt








$          8,150


$          8,201



Accounts payable








426,587


433,783



Contract liabilities








309,985


293,719



Accrued expenses








225,666


239,572




Current liabilities








970,388


975,275

















Long-term debt, less current portion








1,427,419


1,480,620



Accrued pension and post-retirement benefits, noncurrent







522,916


540,479



Deferred income taxes, noncurrent








10,989


6,964



Other noncurrent liabilities








449,473


424,549

















Stockholders' Deficit:














Common stock, $.001 par value, 100,000,000 shares













  authorized, 52,460,920 and 52,460,920 shares issued







52


52




Capital in excess of par value








859,280


867,545




Treasury stock, at cost, 2,455,767 and 2,573,652 shares







(149,767)


(159,154)




Accumulated other comprehensive loss








(489,277)


(487,684)




Accumulated deficit








(778,207)


(794,072)




   Total stockholders' deficit








(557,919)


(573,313)

















Total liabilities and stockholders' deficit








$    2,823,266


$    2,854,574
















 

 

FINANCIAL DATA (UNAUDITED)















TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)















CASH FLOWS






Three Months Ended










June 30,


























2019


2018


Operating Activities













Net income (loss)








$        18,088


$        (76,534)

















Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:










Depreciation & amortization








44,050


38,812




Amortization of acquired contract liabilities








(16,939)


(17,234)




Loss on divestitures & assets held for sale








3,136


4,719




Other amortization included in interest expense







1,958


1,887




Provision for (recovery of) doubtful accounts receivable







671


(14)




Employee stock compensation








2,426


2,462

















Changes in assets & liabilities, excluding the effects of acquisitions/divestitures












Trade and other receivables








41,247


27,598




Contract assets








2,767


(23,221)




Inventories








(56,623)


(30,833)




Prepaid expenses and other current assets








12,721


3,898




Accounts payable, accrued expenses and contract liabilities







(32,119)


23,341




Accrued pension and other postretirement benefits







(15,792)


(18,691)




Other








(573)


(1,904)



Net cash provided by (used in) operating activities








5,018


(65,714)


Investing Activities













Capital expenditures








(8,090)


(12,200)



Proceeds from sale of assets








(2,570)


664



Net cash used in investing activities








(10,660)


(11,536)


Financing Activities













Net increase in revolving credit facility








(30,000)


113,186



Proceeds from issuance of long-term debt and capital leases







5,600


19,046



Repayment of debt and capital lease obligations








(30,572)


(53,762)



Payment of deferred financing costs








(104)


(64)



Dividends paid








(1,998)


(1,988)



Repurchase of restricted shares for minimum tax obligation







(1,043)


(532)



Net cash (used in) provided by financing activities








(58,117)


75,886



Effect of exchange rate changes on cash








(121)


(1,400)



Net change in cash








(63,880)


(2,764)



Cash and equivalents at beginning of period








92,807


35,819



Cash and equivalents at end of period








$        28,927


$         33,055

















 

 

FINANCIAL DATA (UNAUDITED)















TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)











































SEGMENT DATA






Three Months Ended










June 30,


























2019


2018
















Net sales:














Integrated Systems








$       252,226


$       241,039



Aerospace Structures








419,178


532,387



Product Support








61,756


66,215



Elimination of inter-segment sales








(2,929)


(6,741)












$       730,231


$       832,900
















Operating income (loss):













Integrated Systems








$         34,772


$         35,409



Aerospace Structures








12,283


(79,587)



Product Support








9,276


7,669



Corporate








(18,394)


(27,577)



Share-based compensation expense








(2,426)


(2,462)












$         35,511


$        (66,548)
















Operating Margin %













Integrated Systems








13.8%


14.7%



Aerospace Structures








2.9%


-14.9%



Product Support








15.0%


11.6%



Consolidated








4.9%


-8.0%
















Depreciation and amortization:













Integrated Systems








$           7,067


$           7,555



Aerospace Structures








35,059


28,920



Product Support








1,090


1,670



Corporate








834


667












$         44,050


$         38,812
















Amortization of acquired contract liabilities:













Integrated Systems








$          (8,125)


$          (8,849)



Aerospace Structures








(8,814)


(8,385)












$        (16,939)


$        (17,234)
















Capital expenditures:













Integrated Systems








$           2,851


$           1,609



Aerospace Structures








3,973


10,138



Product Support








1,033


348



Corporate








233


105












$           8,090


$         12,200


 

 

FINANCIAL DATA  (UNAUDITED)















TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)















Non-GAAP Financial Measure Disclosures












We prepare and publicly release quarterly unaudited financial statements prepared in accordance with GAAP. In accordance with Securities and Exchange Commission (the "SEC") guidance on Compliance and Disclosure Interpretations, we also disclose and discuss certain non-GAAP financial measures in our public releases. Currently, the non-GAAP financial measure that we disclose is Adjusted EBITDA and Adjusted EBITDAP, which is our net income before interest, income taxes, amortization of acquired contract liabilities, curtailments, settlements and early retirement incentives, legal settlements, depreciation and amortization and Adjusted EBITDA, less pension & other postretirement benefits. We disclose Adjusted EBITDA and Adjusted EBITDAP on a consolidated and Adjusted EBITDAP an operating segment basis in our earnings releases, investor conference calls and filings with the SEC. The non-GAAP financial measures that we use may not be comparable to similarly titled measures reported by other companies. Also, in the future, we may disclose different non-GAAP financial measures in order to help our investors more meaningfully evaluate and compare our future results of operations to our previously reported results of operations.










We view Adjusted EBITDA and Adjusted EBITDAP as operating performance measure and as such we believe that the GAAP financial measure most directly comparable to it is net income. In calculating Adjusted EBITDA and Adjusted EBITDAP, we exclude from net income the financial items that we believe should be separately identified to provide additional analysis of the financial components of the day-to-day operation of our business. We have outlined below the type and scope of these exclusions and the material limitations on the use of these non-GAAP financial measures as a result of these exclusions. Adjusted EBITDA and Adjusted EBITDAP are not measurements of financial performance under GAAP and should not be considered as a measure of liquidity, as an alternative to net income (loss), income from continuing operations, or as an indicator of any other measure of performance derived in accordance with GAAP.  Investors and potential investors in our securities should not rely on Adjusted EBITDA or Adjusted EBITDAP as substitutes for any GAAP financial measure, including net income (loss) or income from continuing operations. In addition, we urge investors and potential investors in our securities to carefully review the reconciliation of Adjusted EBITDA and Adjusted EBITDAP to net income set forth below, in our earnings releases and in other filings with the SEC and to carefully review the GAAP financial information included as part of our Quarterly Reports on Form 10-Q and our Annual Reports on Form 10-K that are filed with the SEC, as well as our quarterly earnings releases, and compare the GAAP financial information with our Adjusted EBITDA and Adjusted EBITDAP.













Adjusted EBITDA and Adjusted EBITDAP is used by management to internally measure our operating and management performance and by investors as a supplemental financial measure to evaluate the performance of our business that, when viewed with our GAAP results and the accompanying reconciliation, we believe provides additional information that is useful to gain an understanding of the factors and trends affecting our business.  We have spent more than 20 years expanding our product and service capabilities partially through acquisitions of complementary businesses.  Due to the expansion of our operations, which included acquisitions, our net income has included significant charges for depreciation and amortization.  Adjusted EBITDA and Adjusted EBITDAP exclude these charges and provides meaningful information about the operating performance of our business, apart from charges for depreciation and amortization. We believe the disclosure of Adjusted EBITDA and Adjusted EBITDAP helps investors meaningfully evaluate and compare our performance from quarter to quarter and from year to year. We also believe Adjusted EBITDA and Adjusted EBITDAP is a measure of our ongoing operating performance because the isolation of non-cash income and expenses, such as amortization of acquired contract liabilities, depreciation and amortization, and non-operating items, such as interest and income taxes, provides additional information about our cost structure, and, over time, helps track our operating progress. In addition, investors, securities analysts and others have regularly relied on Adjusted EBITDA and Adjusted EBITDAP to provide a financial measure by which to compare our operating performance against that of other companies in our industry. 














Set forth below are descriptions of the financial items that have been excluded from our net income to calculate Adjusted EBITDA and Adjusted EBITDAP and the material limitations associated with using this non-GAAP financial measure as compared to net income: 





  • Divestitures may be useful for investors to consider because they reflect gains or losses from sale of operating units.  We do not believe these earnings necessarily reflect the current and ongoing cash earnings related to our operations.


  • Legal settlements may be useful to investors to consider because they reflect gains or losses from disputes with third parties. We do not believe that these earnings necessarily reflect the current and ongoing cash earnings related to our operations.


  • Non-service defined benefit income (inclusive of the adoption of ASU 2017-07) may be useful to investors to consider because they represent the cost of post retirement benefits to plan participants, net of the assumption of returns on the plan's assets and are not indicative of the cash paid for such benefits.  We do not believe these earnings (expenses) necessarily reflect the current and ongoing cash earnings related to our operations. 



  • Amortization of acquired contract liabilities may be useful for investors to consider because it represents the non-cash earnings on the fair value of below market contracts acquired through acquisitions. We do not believe these earnings necessarily reflect the current and ongoing cash earnings related to our operations. 



  • Amortization expenses may be useful for investors to consider because it represents the estimated attrition of our acquired customer base and the diminishing value of product rights and licenses. We do not believe these charges necessarily reflect the current and ongoing cash charges related to our operating cost structure. 



  • Depreciation may be useful for investors to consider because they generally represent the wear and tear on our property and equipment used in our operations. We do not believe these charges necessarily reflect the current and ongoing cash charges related to our operating cost structure. 



  • The amount of interest expense and other we incur may be useful for investors to consider and may result in current cash inflows or outflows. However, we do not consider the amount of interest expense and other to be a representative component of the day-to-day operating performance of our business. 



 

 

FINANCIAL DATA  (UNAUDITED)


TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)


Non-GAAP Financial Measure Disclosures (continued)


  • Income tax expense may be useful for investors to consider because it generally represents the taxes which may be payable for the period and the change
    in deferred income taxes during the period and may reduce the amount of funds otherwise available for use in our business.  However, we do not consider the
    amount of income tax expense to be a representative component of the day-to-day operating performance of our business. 

Management compensates for the above-described limitations of using non-GAAP measures by using a non-GAAP measure only to supplement our GAAP results
and to provide additional information that is useful to gain an understanding of the factors and trends affecting our business. 


















The following table shows our Adjusted EBITDA and Adjusted EBITDAP reconciled to our net income for the indicated periods (in thousands): 

























Three Months Ended










June 30,












2019


2018


Adjusted Earnings before Interest, Taxes,
Depreciation, Amortization, and Pension (EBITDAP):













Net Income (Loss)








$        18,088


$        (76,534)

















Add-back:













     Income Tax Expense 








4,807


1,031



     Interest Expense and Other








27,491


25,493



     Loss on divestitures








3,136


4,719



     Adoption of ASU 2017-07








-


87,241



     Amortization of Acquired Contract Liabilities








(16,939)


(17,234)



     Depreciation and Amortization








44,050


38,812

















Adjusted Earnings before Interest, Taxes, 













  Depreciation and Amortization ("Adjusted EBITDA")







$        80,633


$         63,528

















      Non-service defined benefit income (excluding settlements)







(14,875)


(16,538)



Adjusted Earnings before Interest, Taxes, 













  Depreciation and Amortization, and Pension ("Adjusted EBITDAP")






$        65,758


$         46,990

















Net Sales








$       730,231


$       832,900

















Net Income (Loss) Margin








2.5%


-9.2%

















Adjusted EBITDAP Margin








9.2%


5.8%


 

 

FINANCIAL DATA  (UNAUDITED)















TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)















Non-GAAP Financial Measure Disclosures (continued)


























Adjusted Earnings before Interest, Taxes,
Depreciation, Amortization, and Pension (EBITDAP):




Three Months Ended June 30, 2019





Segment Data






Total


Integrated
Systems


Aerospace
Structures


Product
Support


Corporate */
Eliminations
















Net Income


$       18,088
























Add-back:













     Non-service defined benefit income


(14,875)










     Income Tax Expense


4,807










     Interest Expense and Other



27,491
























Operating Income (Loss)


$       35,511


$       34,772


$      12,283


$          9,276


$        (20,820)
















     Loss on divestitures


3,136


-


-


-


3,136


     Amortization of Acquired Contract Liabilities


(16,939)


(8,125)


(8,814)


-


-


     Depreciation and Amortization



44,050


7,067


35,059


1,090


834
















Adjusted Earnings (Losses) before Interest, Taxes, 












   Depreciation and Amortization, Pension ("Adjusted EBITDAP")


$       65,758


$       33,714


$      38,528


$        10,366


$        (16,850)
















Net Sales




$     730,231


$     252,226


$    419,178


$        61,756


$          (2,929)
















Adjusted EBITDAP Margin



9.2%


13.8%


9.4%


16.8%


n/a






























Adjusted Earnings before Interest, Taxes,
Depreciation, Amortization and Pension (EBITDAP):




Three Months Ended June 30, 2018





Segment Data






Total


Integrated
Systems


Aerospace
Structures


Product
Support


Corporate */
Eliminations
















Net Loss



$      (76,534)
























Add-back:













     Non-service defined benefit income


(16,538)










     Income Tax Expense


1,031










     Interest Expense and Other


25,493
























Operating (Loss) Income 


$      (66,548)


$      35,409


$     (79,587)


$          7,669


$        (30,039)
















     Loss on divestitures


4,719


-


-


-


4,719


     Adoption of ASU 2017-07


87,241


-


87,241


-


-


     Amortization of Acquired Contract Liabilities


(17,234)


(8,849)


(8,385)


-


-


     Depreciation and Amortization


38,812


7,555


28,920


1,670


667
















Adjusted Earnings (Losses) before Interest, Taxes, 












   Depreciation and Amortization, Pension ("Adjusted EBITDAP")


$       46,990


$       34,115


$      28,189


$          9,339


$        (24,653)
















Net Sales




$     832,900


$     241,039


$    532,387


$        66,215


$          (6,741)
















Adjusted EBITDAP Margin



5.8%


14.7%


5.4%


14.1%


n/a
















Operating loss at Corporate includes share-based compensation expense










 

 

FINANCIAL DATA  (UNAUDITED)















TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)















Non-GAAP Financial Measure Disclosures (continued)


























Adjusted income from continuing operations before income taxes, adjusted income from continuing operations and adjusted 





income from continuing operations diluted per share, before non-recurring costs has been provided for consistency and comparability.




These measures should not be considered in isolation or as alternatives to income from continuing operations before income taxes, 




income from continuing operations and income from continuing operations per diluted share presented in accordance with GAAP.  




The following table reconciles income from continuing operations before income taxes, income from continuing operations and 





income from continuing operations per diluted share, before non-recurring costs.




























Three Months Ended










June 30, 2019










Pre-tax


After-tax


Diluted EPS




















Income from Continuing Operations- GAAP


$       22,895


$      18,088


$         0.36






Adjustments:












Loss on divestitures - incurred to date


3,136


2,477


0.05






Restructuring costs - incurred to date


2,964


2,342


0.05


































Adjusted Income from Continuing Operations- non-GAAP


$       28,995


$      22,907


$         0.46
























Three Months Ended










June 30, 2018










Pre-tax


After-tax


Diluted EPS




















Loss from Continuing Operations- GAAP


$      (75,503)


$     (76,534)


$        (1.54)






Adjustments:












Adoption of ASU 2017-07


87,241


85,474


1.72






Loss on divestitures


4,719


4,719


0.09






Restructuring costs (cash)


4,047


3,359


0.07


































Adjusted Income from Continuing Operations- non-GAAP


$       20,504


$      17,018


$         0.34






 

FINANCIAL DATA  (UNAUDITED)















TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)















Non-GAAP Financial Measure Disclosures (continued)


























Adjusted Operating Income is defined as GAAP Operating Income, less expenses/gains associated with the Company's transformation, such as restructuring


expenses, gains/losses on divestitures, defined benefit plan gains/losses from curtailments, settlements, etc; impairments of goodwill and other assets.


Management believes that this is useful in evaluating operating performance, but this measure should not be used in isolation.





The following table reconciles our Operating income to Adjusted Operating income as noted above.































Three Months Ended












June 30, 2019


June 30, 2018


Operating Income (Loss) - GAAP








$        35,511


$        (66,548)


Adjustments:












Adoption of ASU 2017-07








-


87,241


Restructuring costs (cash)








2,964


4,047


Loss on divestitures








3,136


4,719
















Adjusted Operating Income-non-GAAP








$        41,611


$         29,459
















Cash provided by operations, is provided for consistency and comparability. We also use free cash flow as a key factor in






planning for and consideration of strategic acquisitions and the repayment of debt. This measure should not be considered in





isolation, as a measure of residual cash flow available for discretionary purposes, or as an alternative to operating results






presented in accordance with GAAP. The following table reconciles cash provided by operations to free cash flow.






























Three Months Ended












June 30,












2019


2018

















Cash flow provided by (used in) operations








$          5,018


$        (65,714)



Less:













Capital expenditures








(8,090)


(12,200)

















Free cash use








$         (3,072)


$        (77,914)
















The Company provides cash flow guidance on non-GAAP basis adjusting capital expenditures from cash from operations to arrive at free cash flow.



The following table reconciles cash from operations on a GAAP basis to free cash flow guidance.













FY 20 Cash Flow












Guidance Range








Cash flow from operations



$50,000 - $110,000








Less:











Capital expenditures



$50,000 - $60,000






















Free cash flow



$0 - $50,000







 

 

Cision View original content:http://www.prnewswire.com/news-releases/triumph-group-reports-first-quarter-fiscal-2020-results-300893889.html

SOURCE Triumph Group, Inc.