Reaffirms Fiscal Year 2018 Sales Outlook and
Provides EPS and Cash Guidance
BERWYN, Pa.--(BUSINESS WIRE)--
Triumph Group, Inc. (NYSE:TGI) (“Triumph” or the “Company”)
today reported financial results for its first quarter of fiscal year
2018, which ended June 30, 2017.
First Quarter Fiscal 2018 Highlights
-
Net sales were $781.7 million.
-
Operating income was $18.4 million; excluding transformation related
costs of $18.4 million, operating income was $36.8 million, reflecting
an adjusted operating margin of 5%.
-
Net loss was ($1.9) million, or ($0.04) per diluted share; excluding
the transformation related costs, net income was $11.7 million, or
$0.24 per diluted share.
-
Cash used in operations was $99.0 million, and free cash use was
$111.1 million.
-
Management reaffirms net sales guidance of $3.1 to $3.2 billion and
expects sales growth in fiscal 2019.
-
Management provides guidance of adjusted earnings per diluted share of
$2.25 to $2.75 and free cash use of $450 to $500 million, which
includes $275 million related to the reduction in customer advances
received in fiscal 2017, and $200 million of working capital needed to
ramp up production on Aerospace Structures programs.
“Building on last year’s progress, we made measurable headway in Q1 on
our transformation as we create the foundation for sustained growth and
profitability,” stated Daniel J. Crowley, Triumph’s president and chief
executive officer. “Our recent contract agreements with major OEMs
included substantial cash payments, advances, price adjustments and
contract extensions which increase our financial flexibility and backlog
profitability. While the recent settlement results are not yet evident
in the top and bottom line, our customers recognize the evolving
strategic, operational and cultural changes in our company, which have
resulted in stronger relationships. We expect to see the full benefit of
these settlements over FY19-FY21 as production deliveries ramp up.”
Mr. Crowley continued, “We improved on-time delivery and quality
performance in Q1, leading to new business opportunities. Our
intensified capture efforts allowed Triumph to achieve a TTM
book-to-bill ratio exceeding 1:1, translating to a backlog growth of
over 5% to $4.2 billion. Our new customer partnerships translated into
higher proposal volume and wins in dual-source and competitive takeaway
arenas as part of our drive for organic growth.”
“The sales decline in Q1 was anticipated and primarily driven by the
ending of production on two large legacy programs. Our Integrated
Systems segment continues to deliver strong profitability, with
operating margin expanding both sequentially and year-over-year despite
lower sales. Product Support results reflected the effect of
divestitures, deferred customer contracts and changes in mix.
Operational improvement for our Aerospace Structures and Precision
Components segments will remain key areas of focus over the course of
this year. We are confident that these businesses have the potential to
deliver higher levels of profitability and cash flow generation on a
sustained basis.”
First Quarter Fiscal Year 2018 Overview
Excluding the impact of divestitures, sales were down 11% primarily due
to the completion of the C-17 and G450 programs, production rate
reductions and price step-downs on the 747-8 and 777, along with the
timing of deliveries on certain programs. These factors were partially
offset by increased production on the A330 and Global Hawk/Triton
programs.
Operating income included $18.4 million of transformation related costs.
Net loss for the first quarter of fiscal year 2018 was ($1.9) million,
or a loss of ($0.04) per share. Triumph’s results included the following:
|
|
| |
| |
| |
($ millions except EPS) | | | Pre-tax | | After-tax | | Diluted EPS |
Loss from Continuing Operations - GAAP | | | $ | (2.6) | | $ | (1.9) | | $ | (0.04) |
| | | | | | |
|
Transformation related costs: | | | | | | | |
Restructuring costs (non-cash)
| | | |
0.9
| | |
0.7
| | |
0.01
|
Restructuring costs (cash)
| | | |
17.5
| | |
13.0
| | |
0.26
|
| | | | | | |
|
Adjusted Income from Continuing Operations - non-GAAP | | | $ | 15.8 | | $ | 11.7 | | $ | 0.24 |
| | | | | | |
|
The number of shares used in computing diluted earnings per share for
the first quarter of fiscal year 2018 was 49.5 million.
For the quarter ended June 30, 2017, cash use from operations was $99.0
million, a sequential decline from the fiscal 2017 fourth quarter, as
anticipated, due to the liquidation of customer advances received in
fiscal year 2017 coupled with spending on key development programs,
transformation related costs and reduced customer financing, partially
offset by favorable customer settlements.
Outlook
Based on anticipated aircraft production rates and divestitures
completed in fiscal year 2017, the Company continues to expect that
revenue for fiscal year 2018 will be approximately $3.1 to $3.2 billion,
and to increase in fiscal year 2019 as development programs enter
production and sales from new wins offset sunsetting programs.
Additionally, the Company expects fiscal year 2018 adjusted earnings per
diluted share of $2.25 to $2.75, and free cash use of $450 to $500
million, which includes $275 million related to the reduction in
customer advances received in fiscal 2017 and $200 million of working
capital to prepare the supply chain for production rate increases on
Aerospace Structures programs.
The Company’s current outlook includes transformation related costs and
benefits but does not take into account the impact of any potential
divestitures.
Conference Call
Triumph Group will hold a conference call today, July 26th at
8:30 a.m. (ET) to discuss the first quarter fiscal year 2018 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. An audio replay will be available from July 26th to
August 2nd by calling (855) 859-2056 (Domestic) or (404)
537-3406 (International), passcode #54017138.
About Triumph Group
Triumph Group, Inc., headquartered in Berwyn, Pennsylvania, designs,
engineers, manufactures, repairs and overhauls a broad portfolio of
aircraft structures, components, accessories, subassemblies and systems.
The Company serves a broad, worldwide spectrum of the aviation industry,
including original equipment manufacturers of commercial, regional,
business and military aircraft and aircraft components, as well as
commercial and regional airlines and air cargo carriers.
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, 2017.
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 OPERATIONS | | | 2017 | | 2016 |
| | | | |
|
| | | | |
|
Net sales
| | |
$
|
781,689
| | |
$
|
893,253
|
| | | | |
|
Operating income
| | | |
18,409
| | | |
46,726
|
| | | | |
|
Interest expense and other
| | | |
21,018
| | | |
18,126
|
Income tax (benefit) expense
| | |
|
(678
|
)
| |
|
8,866
|
| | | | |
|
Net (loss) income
| | |
$
|
(1,931
|
)
| |
$
|
19,734
|
| | | | |
|
Earnings per share - basic:
| | | | | |
| | | | |
|
Net (loss) income
| | |
$
|
(0.04
|
)
| |
$
|
0.40
|
| | | | |
|
Weighted average common shares outstanding - basic
| | |
|
49,341
|
| |
|
49,271
|
| | | | |
|
Earnings per share - diluted:
| | | | | |
| | | | |
|
Net (loss) income
| | |
$
|
(0.04
|
)
| |
$
|
0.40
|
| | | | |
|
Weighted average common shares outstanding - diluted
| | |
|
49,341
|
| |
|
49,413
|
| | | | |
|
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, |
| | | 2017 | | 2017 |
Assets | | | | | |
Cash and cash equivalents
| | |
$
|
36,968
| | |
$
|
69,633
| |
Accounts receivable, net
| | | |
343,962
| | | |
311,792
| |
Inventory, net of unliquidated progress payments of $432,760 and
$222,485 | | | |
1,248,656
| | | |
1,340,175
| |
Prepaid and other current assets
| | | |
30,966
| | | |
30,064
| |
Assets held for sale
| | |
|
3,247
|
| |
|
21,255
|
|
Current assets
| | | |
1,663,799
| | | |
1,772,919
| |
| | | | |
|
Property and equipment, net
| | | |
794,770
| | | |
805,030
| |
Goodwill | | | |
1,147,676
| | | |
1,142,605
| |
Intangible assets, net
| | | |
578,525
| | | |
592,364
| |
Other, net
| | |
|
91,274
|
| |
|
101,682
|
|
| | | | |
|
Total assets
| | |
$
|
4,276,044
|
| |
$
|
4,414,600
|
|
| | | | |
|
Liabilities & Stockholders' Equity | | | | | |
| | | | |
|
Current portion of long-term debt
| | |
$
|
140,869
| | |
$
|
160,630
| |
Accounts payable
| | | |
420,260
| | | |
481,243
| |
Accrued expenses
| | | |
600,478
| | | |
674,379
| |
Liabilities related to assets held for sale
| | |
|
0
|
| |
|
18,008
|
|
Current liabilities
| | | |
1,161,607
| | | |
1,334,260
| |
| | | | |
|
Long-term debt, less current portion
| | | |
1,140,165
| | | |
1,035,670
| |
Accrued pension and post-retirement benefits, noncurrent
| | | |
572,501
| | | |
592,134
| |
Deferred income taxes, noncurrent
| | | |
67,052
| | | |
68,107
| |
Other noncurrent liabilities
| | | |
481,829
| | | |
537,956
| |
| | | | |
|
Stockholders' Equity:
| | | | | |
Common stock, $.001 par value, 100,000,000 shares
| | | | | |
authorized, 52,460,920 and 52,460,920 shares issued
| | | |
51
| | | |
51
| |
Capital in excess of par value
| | | |
845,451
| | | |
846,807
| |
Treasury stock, at cost, 2,851,855 and 2,887,891 shares
| | | |
(182,264
|
)
| | |
(183,696
|
)
|
Accumulated other comprehensive loss
| | | |
(385,921
|
)
| | |
(396,178
|
)
|
Retained earnings
| | |
|
575,573
|
| |
|
579,489
|
|
Total stockholders' equity
| | |
|
852,890
|
| |
|
846,473
|
|
| | | | |
|
Total liabilities and stockholders' equity
| | |
$
|
4,276,044
|
| |
$
|
4,414,600
|
|
| | | | | | | | |
|
|
FINANCIAL DATA (UNAUDITED) |
|
TRIUMPH GROUP, INC. AND SUBSIDIARIES |
(dollars in thousands) |
|
|
| |
| |
| | | | |
|
| | | | |
|
SEGMENT DATA | | | Three Months Ended |
| | | June 30, |
| | | | |
|
| | | 2017 | | 2016 |
| | | | |
|
Net sales:
| | | | | |
Integrated Systems
| | |
$
|
238,136
| | |
$
|
257,356
| |
Aerospace Structures
| | | |
275,976
| | | |
331,596
| |
Precision Components
| | | |
236,870
| | | |
254,561
| |
Product Support
| | | |
66,433
| | | |
84,199
| |
Elimination of inter-segment sales
| | |
|
(35,726
|
)
| |
|
(34,459
|
)
|
| | |
$
|
781,689
|
| |
$
|
893,253
|
|
| | | | |
|
Operating income (loss):
| | | | | |
Integrated Systems
| | |
$
|
47,417
| | |
$
|
47,986
| |
Aerospace Structures
| | | |
(281
|
)
| | |
9,163
| |
Precision Components
| | | |
(3,265
|
)
| | |
(7,782
|
)
|
Product Support
| | | |
8,437
| | | |
14,059
| |
Corporate
| | |
|
(33,899
|
)
| |
|
(16,700
|
)
|
| | |
$
|
18,409
|
| |
$
|
46,726
|
|
| | | | |
|
Operating Margin %
| | | | | |
Integrated Systems
| | | |
19.9
|
%
| | |
18.6
|
%
|
Aerospace Structures
| | | |
-0.1
|
%
| | |
2.8
|
%
|
Precision Components
| | | |
-1.4
|
%
| | |
-3.1
|
%
|
Product Support
| | | |
12.7
|
%
| | |
16.7
|
%
|
Consolidated
| | | |
2.4
|
%
| | |
5.2
|
%
|
| | | | |
|
Depreciation and amortization:
| | | | | |
Integrated Systems
| | |
$
|
9,951
| | |
$
|
10,303
| |
Aerospace Structures
| | | |
19,391
| | | |
17,962
| |
Precision Components
| | | |
7,749
| | | |
14,330
| |
Product Support
| | | |
1,738
| | | |
2,484
| |
Corporate
| | |
|
302
|
| |
|
383
|
|
| | |
$
|
39,131
|
| |
$
|
45,462
|
|
| | | | |
|
Amortization of acquired contract liabilities:
| | | | | |
Integrated Systems
| | |
$
|
(7,303
|
)
| |
$
|
(10,337
|
)
|
Aerospace Structures
| | | |
(21,293
|
)
| | |
(18,438
|
)
|
Precision Components
| | |
|
(877
|
)
| |
|
(574
|
)
|
| | |
$
|
(29,473
|
)
| |
$
|
(29,349
|
)
|
| | | | |
|
Capital expenditures:
| | | | | |
Integrated Systems
| | |
$
|
2,565
| | |
$
|
3,228
| |
Aerospace Structures
| | | |
4,417
| | | |
3,833
| |
Precision Components
| | | |
4,062
| | | |
4,902
| |
Product Support
| | | |
261
| | | |
630
| |
Corporate
| | |
|
780
|
| |
|
130
|
|
| | |
$
|
12,085
|
| |
$
|
12,723
|
|
| | | | |
|
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, 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. We disclose Adjusted
EBITDA on a consolidated and 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 as an 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, 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 is not a measurement 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 as a
substitute 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 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.
Adjusted EBITDA 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 15 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 excludes 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 helps investors meaningfully evaluate and compare our
performance from quarter to quarter and from year to year. We also
believe Adjusted EBITDA 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
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 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.
-
Curtailments, settlements and early retirement incentives may be
useful to investors to consider because it represents the current
period impact of the change in defined benefit obligation due to the
reduction in future service costs. We do not believe these charges
(gains) 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 reconciled to our net
income for the indicated periods (in thousands):
|
|
|
| Three Months Ended |
| | | June 30, |
| | | 2017 |
| 2016 |
Adjusted Earnings before Interest, Taxes, Depreciation
and Amortization (EBITDA): | | | | | |
Net (Loss) Income
| | |
$
|
(1,931
|
)
| |
$
|
19,734
| |
| | | | |
|
Add-back:
| | | | | |
Income Tax (Benefit) Expense
| | | |
(678
|
)
| | |
8,866
| |
Interest Expense and Other
| | | |
21,018
| | | |
18,126
| |
Amortization of Acquired Contract Liabilities
| | | |
(29,473
|
)
| | |
(29,349
|
)
|
Depreciation and Amortization
| | |
|
39,131
|
| |
|
45,462
|
|
| | | | |
|
Adjusted Earnings before Interest, Taxes,
| | | | | |
Depreciation and Amortization ("Adjusted EBITDA")
| | |
$
|
28,067
|
| |
$
|
62,839
|
|
| | | | |
|
Net Sales | | |
$
|
781,689
|
| |
$
|
893,253
|
|
| | | | |
|
Adjusted EBITDA Margin
| | |
|
3.7
|
%
| |
|
7.3
|
%
|
| | | | |
|
|
FINANCIAL DATA (UNAUDITED) |
|
TRIUMPH GROUP, INC. AND SUBSIDIARIES |
(dollars in thousands) |
|
Non-GAAP Financial Measure Disclosures (continued) |
|
|
| |
Adjusted Earnings before Interest, Taxes, Depreciation
and Amortization (EBITDA): | | | Three Months Ended June 30, 2017 |
| | | |
| Segment Data |
| | | Total | | Integrated Systems |
| Aerospace Structures |
| Precision Components |
| Product Support |
| Corporate / Eliminations |
| | | | | | | | | | | | |
|
Net Loss
| | |
$
|
(1,931
|
)
| | | | | | | | | | |
| | | | | | | | | | | | |
|
Add-back:
| | | | | | | | | | | | | |
Income Tax Benefit
| | | |
(678
|
)
| | | | | | | | | | |
Interest Expense and Other
| | |
| 21,018 |
| | | | | | | | | | |
| | | | | | | | | | | | |
|
Operating Income (Loss)
| | |
$
|
18,409
| | |
$
|
47,417
| | |
$
|
(281
|
)
| |
$
|
(3,265
|
)
| |
$
|
8,437
| | |
$
|
(33,899
|
)
|
| | | | | | | | | | | | |
|
Amortization of Acquired Contract Liabilities
| | | |
(29,473
|
)
| | |
(7,303
|
)
| | |
(21,293
|
)
| | |
(877
|
)
| | |
-
| | | |
-
| |
Depreciation and Amortization
| | |
| 39,131 |
| |
| 9,951 |
| |
| 19,391 |
| |
| 7,749 |
| |
| 1,738 |
| |
| 302 |
|
| | | | | | | | | | | | |
|
Adjusted Earnings (Losses) before Interest, Taxes,
| | | | | | | | | | | |
Depreciation and Amortization ("Adjusted EBITDA")
| | | $ | 28,067 |
| | $ | 50,065 |
| | $ | (2,183 | ) | | $ | 3,607 |
| | $ | 10,175 |
| | $ | (33,597 | ) |
| | | | | | | | | | | | |
|
Net Sales | | | $ | 781,689 |
| | $ | 238,136 |
| | $ | 275,976 |
| | $ | 236,870 |
| | $ | 66,433 |
| | $ | (35,726 | ) |
| | | | | | | | | | | | |
|
Adjusted EBITDA Margin
| | | | 3.7 | % | | | 21.7 | % | | | -0.9 | % | | | 1.5 | % | | | 15.3 | % | | | n/a | |
| | | | | | | | | | | | |
|
| | | | | | | | | | | | |
|
Adjusted Earnings before Interest, Taxes, Depreciation
and Amortization (EBITDA): | | | Three Months Ended June 30, 2016 |
| | | | | Segment Data |
| | | Total | | Integrated Systems | | Aerospace Structures | | Precision Components | | Product Support | | Corporate / Eliminations |
| | | | | | | | | | | | |
|
Net Income
| | |
$
|
19,734
| | | | | | | | | | | |
| | | | | | | | | | | | |
|
Add-back:
| | | | | | | | | | | | | |
Income Tax Expense
| | | |
8,866
| | | | | | | | | | | |
Interest Expense and Other
| | |
| 18,126 |
| | | | | | | | | | |
| | | | | | | | | | | | |
|
Operating Income (Loss)
| | |
$
|
46,726
| | |
$
|
47,986
| | |
$
|
9,163
| | |
$
|
(7,782
|
)
| |
$
|
14,059
| | |
$
|
(16,700
|
)
|
| | | | | | | | | | | | |
|
Amortization of Acquired Contract Liabilities
| | | |
(29,349
|
)
| | |
(10,337
|
)
| | |
(18,438
|
)
| | |
(574
|
)
| | |
-
| | | |
-
| |
Depreciation and Amortization
| | |
| 45,462 |
| |
| 10,303 |
| |
| 17,962 |
| |
| 14,330 |
| |
| 2,484 |
| |
| 383 |
|
| | | | | | | | | | | | |
|
Adjusted Earnings (Losses) before Interest, Taxes,
| | | | | | | | | | | |
Depreciation and Amortization ("Adjusted EBITDA")
| | | $ | 62,839 |
| | $ | 47,952 |
| | $ | 8,687 |
| | $ | 5,974 |
| | $ | 16,543 |
| | $ | (16,317 | ) |
| | | | | | | | | | | | |
|
Net Sales | | | $ | 893,253 |
| | $ | 257,356 |
| | $ | 331,596 |
| | $ | 254,561 |
| | $ | 84,199 |
| | $ | (34,459 | ) |
| | | | | | | | | | | | |
|
Adjusted EBITDA Margin
| | | | 7.3 | % | | | 19.4 | % | | | 2.8 | % | | | 2.4 | % | | | 19.6 | % | | | n/a | |
| | | | | | | | | | | | |
|
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, 2017 | |
| | | Pre-tax |
| After-tax |
| Diluted EPS | |
| | | | | | | |
|
Loss from Continuing Operations- GAAP
| | |
$
|
(2,609
|
)
| |
$
|
(1,931
|
)
| |
$
|
(0.04
|
)
| |
Transformation related costs: | | | | | | | | |
Restructuring costs (non-cash)
| | | |
860
| | | |
636
| | | |
0.01
| | |
Restructuring costs (cash)
| | |
|
17,500
|
| |
|
12,950
|
| |
|
0.26
|
| |
| | | | | | | |
|
Adjusted Income from Continuing Operations- non-GAAP
| | |
$
|
15,751
|
| |
$
|
11,655
|
| |
$
|
0.24
|
|
*
|
|
* Difference due to rounding
| | | | | | | | |
| | | Three Months Ended | |
| | | June 30, 2016 | |
| | | Pre-tax | | After-tax | | Diluted EPS | |
| | | | | | | |
|
Income from Continuing Operations- GAAP
| | |
$
|
28,600
| | |
$
|
19,734
| | |
$
|
0.40
| | |
Adjustments: | | | | | | | | |
Triumph Precision Components - Strike related costs
| | | |
15,701
| | | |
10,834
| | | |
0.22
| | |
Triumph Precision Components - Inventory write-down
| | | |
6,089
| | | |
4,201
| | | |
0.09
| | |
Triumph Aerospace Structures - UAS program
| | | |
14,200
| | | |
9,798
| | | |
0.20
| | |
Transformation related costs | | | | | | | | |
Restructuring costs (non-cash)
| | | |
3,491
| | | |
2,409
| | | |
0.05
| | |
Restructuring costs (cash)
| | |
|
6,651
|
| |
|
4,589
|
| |
|
0.09
|
| |
| | | | | | | |
|
Adjusted Income from Continuing Operations- non-GAAP
| | |
$
|
74,732
|
| |
$
|
51,565
|
| |
$
|
1.04
|
|
*
|
|
*
|
Difference due to rounding.
| | | | | | | | |
| |
| | | | | | | | | |
The following table reconciles our Operating income to Adjusted
Operating income as noted above.
|
|
| |
| | | Three Months Ended |
| | | June 30, 2017 |
| June 30, 2016 |
Operating Income - GAAP
| | |
$
|
18,409
| |
$
|
46,726
|
Adjustments: | | | | | |
Restructuring costs (non-cash)
| | | |
860
| | |
3,491
|
Restructuring costs (cash)
| | | |
17,500
| | |
6,651
|
Triumph Precision Components - Strike related costs
| | | |
-
| | |
15,701
|
Triumph Precision Components - Inventory write-down
| | | |
-
| | |
6,089
|
Triumph Aerospace Structures - UAS program
| | |
|
-
| |
|
14,200
|
Adjusted Operating Income-non-GAAP
| | |
$
|
36,769
| |
$
|
92,858
|
| | | | |
|
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in
thousands)
Non-GAAP Financial Measure Disclosures (continued)
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, |
| | | 2017 |
| 2016 |
| | | | |
|
Cash flow from operations
| | |
$
|
(99,048
|
)
| |
$
|
(84,035
|
)
|
Less: | | | | | |
Capital expenditures
| | | |
(12,085
|
)
| | |
(12,723
|
)
|
| | |
| |
|
Free cash flow
| | | | | |
| | |
$
|
(111,133
|
)
| |
$
|
(96,758
|
)
|
| | | | |
|
We use "Net Debt to Capital" as a measure of financial leverage. The
following table sets forth the computation of Net Debt to Capital:
|
|
| |
| |
| | | June 30, | | March 31, |
| | | 2017 | | 2017 |
| | | | |
|
Calculation of Net Debt | | | | | |
Current portion
| | |
$
|
140,869
| | |
$
|
160,630
| |
Long-term debt
| | |
|
1,140,165
|
| |
|
1,035,670
|
|
Total debt
| | | |
1,281,034
| | | |
1,196,300
| |
Plus: Deferred debt issuance costs
| | | |
12,710
| | | |
11,752
| |
Less: Cash
| | |
|
(36,968
|
)
| |
|
(69,633
|
)
|
Net debt
| | |
$
|
1,256,776
|
| |
$
|
1,138,419
|
|
| | | | |
|
Calculation of Capital | | | | | |
Net debt
| | |
$
|
1,256,776
| | |
$
|
1,138,419
| |
Stockholders' equity
| | |
|
852,890
|
| |
|
846,473
|
|
Total capital
| | |
$
|
2,109,666
|
| |
$
|
1,984,892
|
|
| | | | |
|
Percent of net debt to capital
| | | |
59.6
|
%
| | |
57.4
|
%
|
| | | | |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170726005397/en/
Triumph Group, Inc.
Media:
Michele
Long, 610-251-1000
[email protected]
or
Investor
Relations:
Sheila G. Spagnolo, 610-251-1000
[email protected]
Source: Triumph Group, Inc.