Triumph Group Reports Record Fourth Quarter and Full Fiscal Year 2013 Results
-
Record net sales for fourth quarter fiscal year 2013 increased 4% to
$986.3 million -
Income from continuing operations for fourth quarter fiscal year 2013
was
$65.6 million , or$1.24 per diluted share, which included non-recurring costs (see Table A below) totaling approximately$36.0 million pre-tax ($0.44 per diluted share). Excluding these costs, earnings per share from continuing operations was$1.68 per diluted share -
Record full year revenues and earnings per share from continuing
operations of
$3.703 billion and$5.67 per diluted share. Excluding non-recurring costs (see Table B below) totaling approximately$44.2 million pre-tax ($0.54 per diluted share), earnings per share from continuing operations was$6.21 per diluted share -
Record cash flow from operations for fiscal year 2013 before pension
contribution of
$109.8 million was$453.2 million -
Successfully completed acquisition of Triumph Engine Control Systems
(formerly
Goodrich Pump & Engine Control Systems)
Income from continuing operations for the fourth quarter of fiscal year
2013 was
The following table quantifies each of the non-recurring costs incurred in the fourth quarter of fiscal year 2013 as well as its impact on earnings per share from continuing operations.
TABLE A |
||||||||||||||
Fourth Quarter Ended |
||||||||||||||
March 31, 2013 |
||||||||||||||
Pre-tax |
After tax |
Diluted |
Location on |
|||||||||||
(In thousands) |
(In thousands) |
EPS |
Financial Statements |
|||||||||||
Adjusted Income from Continuing Operations- non-GAAP | $ | 131,487 | $ | 88,810 | $ | 1.68 | ||||||||
Non-Recurring Costs: | ||||||||||||||
Curtailments | $ | (23,662 | ) | $ | (15,250 | ) | $ | (0.29 | ) | Corporate | ||||
Early Retirement Incentives | $ | (5,682 | ) | $ | (3,662 | ) | $ | (0.07 | ) | Corporate | ||||
Integration | $ | (438 | ) | $ | (282 | ) | $ | (0.01 | ) | Aerostructures (Primarily) | ||||
Pension Remeasurement | $ | (1,800 | ) | $ | (1,160 | ) | $ | (0.02 | ) | Aerostructures (EAC) ** | ||||
Jefferson Street Move: | ||||||||||||||
Accelerated Depreciation | $ | (800 | ) | $ | (516 | ) | $ | (0.01 | ) | Aerostructures (EAC) ** | ||||
Disruption | $ | (600 | ) | $ | (387 | ) | $ | (0.01 | ) | Aerostructures (EAC) ** | ||||
Deal Costs- Primarily Triumph Engine Control Systems Acquisition | $ | (3,027 | ) | $ | (1,951 | ) | $ | (0.04 | ) | Corporate | ||||
Sub-total Non-Recurring Costs | $ | (36,009 | ) | $ | (23,208 | ) | $ | (0.44 | ) | * | ||||
Income from Continuing Operations- GAAP | $ | 95,478 | $ | 65,602 | $ | 1.24 |
* |
Difference due to rounding |
|
** |
EAC- estimated costs at completion with respect to contracts within the scope of Accounting Standards Codification 605-35, "Revenue-Construction-Type and Production-Type Contracts" |
|
Full Fiscal Year Highlights
For the fiscal year ended
Income from continuing operations for fiscal year 2013 was
TABLE B |
||||||||||||||
Fiscal Year Ended |
||||||||||||||
March 31, 2013 |
||||||||||||||
Pre-tax |
After tax |
Diluted |
Location on |
|||||||||||
(In thousands) |
(In thousands) |
EPS |
Financial Statements |
|||||||||||
Adjusted Income from Continuing Operations- non-GAAP | $ | 507,295 | $ | 325,859 | $ | 6.21 | ||||||||
Non-Recurring Costs: | ||||||||||||||
Curtailments | $ | (23,662 | ) | $ | (15,250 | ) | $ | (0.29 | ) | Corporate | ||||
Early Retirement Incentives | $ | (10,819 | ) | $ | (6,973 | ) | $ | (0.13 | ) | Corporate | ||||
Integration | $ | (2,665 | ) | $ | (1,718 | ) | $ | (0.03 | ) | Aerostructures (Primarily) | ||||
Pension Remeasurement | $ | (1,800 | ) | $ | (1,160 | ) | $ | (0.02 | ) | Aerostructures (EAC) ** | ||||
Jefferson Street Move: | ||||||||||||||
Accelerated Depreciation | $ | (800 | ) | $ | (516 | ) | $ | (0.01 | ) | Aerostructures (EAC) ** | ||||
Disruption | $ | (600 | ) | $ | (387 | ) | $ | (0.01 | ) | Aerostructures (EAC) ** | ||||
Deal Costs- Primarily Triumph Engine Control Systems Acquisition | $ | (3,892 | ) | $ | (2,508 | ) | $ | (0.05 | ) | Corporate | ||||
Sub-total Non-Recurring Costs | $ | (44,238 | ) | $ | (28,512 | ) | $ | (0.54 | ) | |||||
Income from Continuing Operations- GAAP | $ | 463,057 | $ | 297,347 | $ | 5.67 |
** |
EAC- estimated costs at completion with respect to contracts within the scope of Accounting Standards Codification 605-35, "Revenue-Construction-Type and Production-Type Contracts" |
|
During the fiscal year, the company generated
“As we enter fiscal year 2014, Triumph is a strong company with a very solid balance sheet and an increasing backlog. Even as we face the challenges of political and fiscal uncertainty, we are confident that Triumph is well positioned to deliver long-term growth and profitability.”
Segments
Aerostructures
The Aerostructures segment reported net sales for the fourth quarter of
fiscal year 2013 of
Aerospace Systems
The Aerospace Systems segment reported net sales for the fourth quarter
of fiscal year 2013 of
Aftermarket Services
The Aftermarket Services segment reported net sales for the fourth
quarter of fiscal year 2013 of
Outlook
In commenting on the outlook for fiscal year 2014, Mr. Frisby said, “We
are entering our new fiscal year with a continued focus on improving
execution, driving integration and controlling costs. We project sales
in the range of
From a segment perspective, the company expects the following:
- Aerostructures- revenue down slightly as a result of reductions in 767 and 747-8. Excluding Jefferson Street move related costs, operating income and operating margin will increase
- Aerospace Systems- revenue up significantly due to fiscal year 2013 acquisitions with modest increase organically. Operating income up with expected margin impact from fiscal year 2013 acquisitions
- Aftermarket Services- revenues essentially flat- organic growth offsetting the impact of the sale of the Instrument Companies with growth in operating income and margins
The overall guidance is based on the following assumptions for fiscal year 2014:
- the number of shares used in computing diluted earnings per share is 53.1 million
-
$5.0 million of legal expenses associated with the trade secret litigation -
interest expense of
$80.0 million -
tax rate of 36.0% reflecting the expiration of the R&D tax credit at
December 31, 2013 -
capital expenditures and investments in major new programs of
$340.0 million to $360.0 million , of which$50.0 million relates to capital for the Bombardier 7000/8000 wing,$100.0 million relates to capital for theJefferson Street move, and$115.0 million to be reflected in inventory (net of advances) -
pension income of approximately
$31.0 million and cash contributions to the plan of approximately$116.0 million -
OPEB expense of approximately
$11.0 million and cash expenditures of approximately$33.0 million -
current productions rates – specifically:
- 777 production rate at 8 per month
- 737 production rates of 38 per month increasing to 42 per month in the second half of the fiscal year
- 747 production rates of 2 per month declining to 1.75 per month in the second half of the fiscal year
- the most recent 787 production schedule
- 767/tanker production rates decreasing to approximately 1 per month
- A330 production of 10 per month
- C-17 production of 10 units
- other than C-17 mentioned above, production rates for the company’s largest military programs (i.e. V-22, UH 60, C130) will show modest declines of approximately 10 to 15 percent
- business jet market generally consistent with fiscal year 2013
- continued strength in the Aftermarket Services segment of the business
-
cash available for debt reduction of approximately
$150 million , excluding new acquisitions - reflects estimates for customer price concessions (net of cost reduction) and projected cost of two union negotiations
As previously announced,
More information about Triumph can be found on the company’s website at http://www.triumphgroup.com.
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 future aerospace market conditions, aircraft production rates, financial and operational performance, revenue and earnings growth, and earnings results for fiscal 2014. 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’s reports filed with the
FINANCIAL DATA (UNAUDITED) | ||||||||||||||
TRIUMPH GROUP, INC. AND SUBSIDIARIES | ||||||||||||||
(in thousands, except per share data) | ||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||
March 31, | March 31, | |||||||||||||
CONDENSED STATEMENTS OF INCOME | 2013 | 2012 | 2013 | 2012 | ||||||||||
Net sales | $ | 986,268 | $ | 946,376 | $ | 3,702,702 | $ | 3,407,929 | ||||||
Operating income | 112,966 | 183,239 | 531,213 | 514,715 | ||||||||||
Interest expense and other | 17,488 | 18,462 | 68,156 | 77,138 | ||||||||||
Income tax expense | 29,876 | 58,526 | 165,710 | 155,955 | ||||||||||
Income from continuing operations | 65,602 | 106,251 | 297,347 | 281,622 | ||||||||||
Loss from discontinued operations, net of tax | - | - | - | (765 | ) | |||||||||
Net income | $ | 65,602 | $ | 106,251 | $ | 297,347 | $ | 280,857 | ||||||
Earnings per share - basic: | ||||||||||||||
Income from continuing operations | $ | 1.32 | $ | 2.16 | $ | 5.99 | $ | 5.77 | ||||||
Loss from discontinued operations | - | - | - | (0.02 | ) | |||||||||
Net income | $ | 1.32 | $ | 2.16 | $ | 5.99 | $ | 5.75 | ||||||
Weighted average common shares outstanding - basic | 49,814 | 49,174 | 49,663 | 48,821 | ||||||||||
Earnings per share - diluted: | ||||||||||||||
Income from continuing operations | $ | 1.24 | $ | 2.03 | $ | 5.67 | $ | 5.43 | ||||||
Loss from discontinued operations | - | - | - | (0.01 | ) | |||||||||
Net income | $ | 1.24 | $ | 2.03 | $ | 5.67 | $ | 5.41 | * | |||||
Weighted average common shares outstanding - diluted | 52,708 | 52,311 | 52,446 | 51,873 | ||||||||||
Dividends declared and paid per common share | $ | 0.04 | $ | 0.04 | $ | 0.16 | $ | 0.14 | ||||||
* Difference due to rounding. |
||||||||||||||
|
FINANCIAL DATA (UNAUDITED) | ||||||||
TRIUMPH GROUP, INC. AND SUBSIDIARIES | ||||||||
(dollars in thousands, except per share data) | ||||||||
BALANCE SHEET | Unaudited | Audited | ||||||
March 31, | March 31, | |||||||
2013 | 2012 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 32,037 | $ | 29,662 | ||||
Accounts receivable, net | 433,926 | 440,608 | ||||||
Inventory, net of unliquidated progress payments of $124,128 and $164,450 | 985,745 | 817,956 | ||||||
Rotable assets | 36,810 | 34,554 | ||||||
Deferred income taxes | 65,290 | 72,377 | ||||||
Prepaid and other current assets | 23,525 | 23,344 | ||||||
Assets held for sale | 14,747 | - | ||||||
Current assets | 1,592,080 | 1,418,501 | ||||||
Property and equipment, net | 809,548 | 733,380 | ||||||
Goodwill | 1,751,321 | 1,546,138 | ||||||
Intangible assets, net | 929,413 | 829,676 | ||||||
Other, net | 66,887 | 26,944 | ||||||
Total assets | $ | 5,149,249 | $ | 4,554,639 | ||||
Liabilities & Stockholders' Equity | ||||||||
Current portion of long-term debt | $ | 133,930 | $ | 142,237 | ||||
Accounts payable | 327,634 | 266,124 | ||||||
Accrued expenses | 272,240 | 311,620 | ||||||
Liabilities related to assets held for sale | 2,621 | - | ||||||
Current liabilities | 736,425 | 719,981 | ||||||
Long-term debt, less current portion | 1,195,933 | 1,016,625 | ||||||
Accrued pension and post-retirement benefits, noncurrent | 671,173 | 700,125 | ||||||
Deferred income taxes, noncurrent | 296,805 | 188,252 | ||||||
Other noncurrent liabilities | 203,755 | 136,287 | ||||||
Stockholders' Equity: | ||||||||
Common stock, $.001 par value, 100,000,000 shares authorized, 50,123,035 and 49,590,273 shares issued |
50 | 50 | ||||||
Capital in excess of par value | 848,372 | 833,935 | ||||||
Treasury stock, at cost, 0 and 58,533 shares | - | (1,716 | ) | |||||
Accumulated other comprehensive loss | (60,972 | ) | (9,306 | ) | ||||
Retained earnings | 1,257,708 | 970,406 | ||||||
Total stockholders' equity | 2,045,158 | 1,793,369 | ||||||
Total liabilities and stockholders' equity | $ | 5,149,249 | $ | 4,554,639 |
FINANCIAL DATA (UNAUDITED) | ||||||||||||||||
TRIUMPH GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||
SEGMENT DATA | Three Months Ended | Twelve Months Ended | ||||||||||||||
March 31, | March 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net sales: | ||||||||||||||||
Aerostructures | $ | 720,722 | $ | 714,247 | $ | 2,781,344 | $ | 2,571,576 | ||||||||
Aerospace Systems | 184,061 | 151,724 | 615,771 | 551,800 | ||||||||||||
Aftermarket Services | 83,881 | 83,120 | 314,506 | 292,674 | ||||||||||||
Elimination of inter-segment sales | (2,396 | ) | (2,715 | ) | (8,919 | ) | (8,121 | ) | ||||||||
$ | 986,268 | $ | 946,376 | $ | 3,702,702 | $ | 3,407,929 | |||||||||
Operating income (loss): | ||||||||||||||||
Aerostructures | $ | 110,901 | $ | 119,004 | $ | 469,873 | $ | 403,414 | ||||||||
Aerospace Systems | 33,440 | 26,351 | 103,179 | 90,035 | ||||||||||||
Aftermarket Services | 12,950 | 10,966 | 45,380 | 31,859 | ||||||||||||
Corporate | (44,325 | ) | 26,918 | (87,219 | ) | (10,593 | ) | |||||||||
$ | 112,966 | $ | 183,239 | $ | 531,213 | $ | 514,715 | |||||||||
Depreciation and amortization: | ||||||||||||||||
Aerostructures | $ | 23,751 | $ | 22,855 | $ | 95,884 | $ | 89,113 | ||||||||
Aerospace Systems | 6,199 | 4,400 | 19,869 | 17,363 | ||||||||||||
Aftermarket Services | 2,221 | 2,285 | 9,118 | 9,487 | ||||||||||||
Corporate | 1,190 | 1,120 | 4,635 | 3,761 | ||||||||||||
$ | 33,361 | $ | 30,660 | $ | 129,506 | $ | 119,724 | |||||||||
Amortization of acquired contract liabilities: | ||||||||||||||||
Aerostructures | $ | (5,870 | ) | $ | (8,180 | ) | $ | (25,644 | ) | $ | (26,684 | ) | ||||
Capital expenditures: | ||||||||||||||||
Aerostructures | $ | 40,172 | $ | 26,114 | $ | 106,337 | $ | 64,633 | ||||||||
Aerospace Systems | 8,328 | 4,224 | 19,388 | 14,747 | ||||||||||||
Aftermarket Services | 4,009 | 3,078 | 14,820 | 8,682 | ||||||||||||
Corporate | 596 | 1,871 | 2,216 | 5,907 | ||||||||||||
$ | 53,105 | $ | 35,287 | $ | 142,761 | $ | 93,969 | |||||||||
FINANCIAL DATA (UNAUDITED)
(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
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 income from continuing operations. In calculating Adjusted EBITDA,
we exclude from income from continuing operations 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 income from continuing
operations set forth below, in our earnings releases and in other
filings with the
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 income from continuing operations 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 income from continuing operations to calculate Adjusted EBITDA and the material limitations associated with using this non-GAAP financial measure as compared to income from continuing operations:
- Curtailments 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 the acquisition of Vought. 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)
(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 income from continuing operations for the indicated periods (in thousands):
Three Months Ended | Twelve Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA): | ||||||||||||||||
Income from Continuing Operations | $ | 65,602 | $ | 106,251 | $ | 297,347 | $ | 281,622 | ||||||||
Add-back: | ||||||||||||||||
Income Tax Expense | 29,876 | 58,526 | 165,710 | 155,955 | ||||||||||||
Interest Expense and Other | 17,488 | 18,462 | 68,156 | 77,138 | ||||||||||||
Curtailments and Early Retirement Incentives | 29,344 | (40,400 | ) | 34,481 | (40,400 | ) | ||||||||||
Amortization of Acquired Contract Liabilities | (5,870 | ) | (8,180 | ) | (25,644 | ) | (26,684 | ) | ||||||||
Depreciation and Amortization | 33,361 | 30,660 | 129,506 | 119,724 | ||||||||||||
Adjusted Earnings before Interest, Taxes, | ||||||||||||||||
Depreciation and Amortization ("Adjusted EBITDA") | $ | 169,801 | $ | 165,319 | $ | 669,556 | $ | 567,355 | ||||||||
Net Sales | $ | 986,268 | $ | 946,376 | $ | 3,702,702 | $ | 3,407,929 | ||||||||
Adjusted EBITDA Margin | 17.2 | % | 17.5 | % | 18.1 | % | 16.6 | % |
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 March 31, 2013 | |||||||||||||||||||
Segment Data | ||||||||||||||||||||
Aerospace |
Aftermarket |
Corporate / |
||||||||||||||||||
Total |
Aerostructures |
Systems |
Services |
Eliminations |
||||||||||||||||
Income from Continuing Operations | $ | 65,602 | ||||||||||||||||||
Add-back: | ||||||||||||||||||||
Income Tax Expense | 29,876 | |||||||||||||||||||
Interest Expense and Other | 17,488 | |||||||||||||||||||
Operating Income | $ | 112,966 | $ | 110,901 | $ | 33,440 | $ | 12,950 | $ | (44,325 | ) | |||||||||
Curtailments and Early Retirement Incentives | 29,344 | - | - | - | 29,344 | |||||||||||||||
Amortization of Acquired Contract Liabilities | (5,870 | ) | (5,683 | ) | (187 | ) | - | - | ||||||||||||
Depreciation and Amortization | 33,361 | 23,751 | 6,199 | 2,221 | 1,190 | |||||||||||||||
Adjusted Earnings (Losses) before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") |
$ | 169,801 | $ | 128,969 | $ | 39,452 | $ | 15,171 | $ | (13,791 | ) | |||||||||
Net Sales | $ | 986,268 | $ | 720,722 | $ | 184,061 | $ | 83,881 | $ | (2,396 | ) | |||||||||
Adjusted EBITDA Margin | 17.2 | % | 17.9 | % | 21.4 | % | 18.1 | % | n/a | |||||||||||
Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA): | Twelve Months Ended March 31, 2013 | |||||||||||||||||||
Segment Data | ||||||||||||||||||||
Aerospace |
Aftermarket |
Corporate / |
||||||||||||||||||
Total |
Aerostructures |
Systems |
Services |
Eliminations |
||||||||||||||||
Income from Continuing Operations | $ | 297,347 | ||||||||||||||||||
Add-back: | ||||||||||||||||||||
Income Tax Expense | 165,710 | |||||||||||||||||||
Interest Expense and Other | 68,156 | |||||||||||||||||||
Operating Income (Loss) | $ | 531,213 | $ | 469,873 | $ | 103,179 | $ | 45,380 | $ | (87,219 | ) | |||||||||
Curtailments and Early Retirement Incentives | 34,481 | - | - | - | 34,481 | |||||||||||||||
Amortization of Acquired Contract Liabilities | (25,644 | ) | (25,457 | ) | (187 | ) | - | - | ||||||||||||
Depreciation and Amortization | 129,506 | 95,884 | 19,869 | 9,118 | 4,635 | |||||||||||||||
Adjusted Earnings (Losses) before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") |
$ | 669,556 | $ | 540,300 | $ | 122,861 | $ | 54,498 | $ | (48,103 | ) | |||||||||
Net Sales | $ | 3,702,702 | $ | 2,781,344 | $ | 615,771 | $ | 314,506 | $ | (8,919 | ) | |||||||||
Adjusted EBITDA Margin | 18.1 | % | 19.4 | % | 20.0 | % | 17.3 | % | n/a |
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 March 31, 2012 | |||||||||
Segment Data | ||||||||||
Aerospace |
Aftermarket |
Corporate / |
||||||||
Total |
Aerostructures |
Systems |
Services |
Eliminations |
||||||
Income from Continuing Operations | $ 106,251 | |||||||||
Add-back: | ||||||||||
Income Tax Expense | 58,526 | |||||||||
Interest Expense and Other | 18,462 | |||||||||
Operating Income (Loss) | $ 183,239 | $ 119,004 | $ 26,351 | $ 10,966 | $ 26,918 | |||||
Curtailments and Early Retirement Incentives | (40,400) | - | - | - | (40,400) | |||||
Amortization of Acquired Contract Liabilities | (8,180) | (8,180) | - | - | - | |||||
Depreciation and Amortization | 30,660 | 22,855 | 4,400 | 2,285 | 1,120 | |||||
Adjusted Earnings (Losses) before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") |
$ 205,719 | $ 133,679 | $ 30,751 | $ 13,251 | $ 28,038 | |||||
Net Sales | $ 946,376 | $ 714,247 | $ 151,724 | $ 83,120 | $ (2,715) | |||||
Adjusted EBITDA Margin | 21.7% | 18.7% | 20.3% | 15.9% | n/a | |||||
Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA): | Twelve Months Ended March 31, 2012 | |||||||||
Segment Data | ||||||||||
Aerospace |
Aftermarket |
Corporate / |
||||||||
Total |
Aerostructures |
Systems |
Services |
Eliminations |
||||||
Income from Continuing Operations | $ 281,622 | |||||||||
Add-back: | ||||||||||
Income Tax Expense | 155,955 | |||||||||
Interest Expense and Other | 77,138 | |||||||||
Operating Income (Loss) | $ 514,715 | $ 403,414 | $ 90,035 | $ 31,859 | $ (10,593) | |||||
Curtailments and Early Retirement Incentives | (40,400) | - | - | - | (40,400) | |||||
Amortization of Acquired Contract Liabilities | (26,684) | (26,684) | - | - | - | |||||
Depreciation and Amortization | 119,724 | 89,113 | 17,363 | 9,487 | 3,761 | |||||
Adjusted Earnings (Losses) before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") |
$ 607,755 | $ 465,843 | $ 107,398 | $ 41,346 | $ (6,832) | |||||
Net Sales | $ 3,407,929 | $ 2,571,576 | $ 551,800 | $ 292,674 | $ (8,121) | |||||
Adjusted EBITDA Margin | 17.8% | 18.1% | 19.5% | 14.1% | 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. |
Fourth Quarter Ended | |||||||||||||||
March 31, 2013 | |||||||||||||||
Pre-tax | After-tax | Diluted EPS |
Location on |
||||||||||||
Financial Statements |
|||||||||||||||
Income from Continuing Operations- GAAP | $ | 95,478 | $ | 65,602 | $ | 1.24 | |||||||||
Non-Recurring Costs: | |||||||||||||||
Curtailments | 23,662 | 15,250 | 0.29 | Corporate | |||||||||||
Early Retirement Incentives | 5,682 | 3,662 | 0.07 | Corporate | |||||||||||
Integration | 438 | 282 | 0.01 | Aerostructures (Primarily) | |||||||||||
Pension Remeasurement | 1,800 | 1,160 | 0.02 | Aerostructures (EAC) ** | |||||||||||
Jefferson Street Move: | |||||||||||||||
Accelerated Depreciation | 800 | 516 | 0.01 | Aerostructures (EAC) ** | |||||||||||
Disruption | 600 | 387 | 0.01 | Aerostructures (EAC) ** | |||||||||||
Deal Costs- Primarily Triumph Engine Control Systems | 3,027 | 1,951 | 0.04 | Corporate | |||||||||||
Adjusted Income from Continuing Operations- non-GAAP | $ | 131,487 | $ | 88,810 | $ | 1.68 | * | ||||||||
Fiscal Year Ended | |||||||||||||||
March 31, 2013 | |||||||||||||||
Pre-tax | After-tax | Diluted EPS |
Location on |
||||||||||||
Financial Statements |
|||||||||||||||
Income from Continuing Operations- GAAP | $ | 463,057 | $ | 297,347 | $ | 5.67 | |||||||||
Non-Recurring Costs: | |||||||||||||||
Curtailments | 23,662 | 15,250 | 0.29 | Corporate | |||||||||||
Early Retirement Incentives | 10,819 | 6,973 | 0.13 | Corporate | |||||||||||
Integration | 2,665 | 1,718 | 0.03 | Aerostructures (Primarily) | |||||||||||
Pension Remeasurement | 1,800 | 1,160 | 0.02 | Aerostructures (EAC) ** | |||||||||||
Jefferson Street Move: | |||||||||||||||
Accelerated Depreciation | 800 | 516 | 0.01 | Aerostructures (EAC) ** | |||||||||||
Disruption | 600 | 387 | 0.01 | Aerostructures (EAC) ** | |||||||||||
Deal Costs- Primarily Triumph Engine Control Systems | 3,892 | 2,508 | 0.05 | Corporate | |||||||||||
Adjusted Income from Continuing Operations- non-GAAP | $ | 507,295 | $ | 325,859 | $ | 6.21 |
* | Difference due to rounding. | ||
* * |
EAC- estimated costs at completion with respect to contracts within the scope of Accounting Standards Codification 605-35, "Revenue-Construction-Type and Production-Type Contracts" |
FINANCIAL DATA (UNAUDITED) | ||||||||||||||
TRIUMPH GROUP, INC. AND SUBSIDIARIES | ||||||||||||||
(dollars in thousands) | ||||||||||||||
Non-GAAP Financial Measure Disclosures (continued) | ||||||||||||||
Fourth Quarter Ended | ||||||||||||||
March 31, 2012 | ||||||||||||||
Pre-tax | After-tax | Diluted EPS |
Location on |
|||||||||||
Financial Statements |
||||||||||||||
Income from Continuing Operations- GAAP | $ | 164,777 | $ | 106,251 | $ | 2.03 | ||||||||
Non-Recurring Costs: | ||||||||||||||
Curtailments | (40,400 | ) | (26,058 | ) | (0.50 | ) | Corporate | |||||||
Integration | 2,644 | 1,705 | 0.03 | Aerostructures (Primarily) | ||||||||||
Adjusted Income from Continuing Operations- non-GAAP | $ | 127,021 | $ | 81,898 | $ | 1.57 | * | |||||||
Fiscal Year Ended | ||||||||||||||
March 31, 2012 | ||||||||||||||
Pre-tax | After-tax | Diluted EPS |
Location on |
|||||||||||
Financial Statements |
||||||||||||||
Income from Continuing Operations- GAAP | $ | 437,577 | $ | 281,622 | $ | 5.43 | ||||||||
Non-Recurring Costs: | ||||||||||||||
Curtailments | (40,400 | ) | (26,058 | ) | (0.50 | ) | Corporate | |||||||
Integration | 6,342 | 4,091 | 0.08 | Aerostructures (Primarily) | ||||||||||
Adjusted Income from Continuing Operations- non-GAAP | $ | 403,519 | $ | 259,655 | $ | 5.01 | ||||||||
* Difference due to rounding. |
FINANCIAL DATA (UNAUDITED) |
TRIUMPH GROUP, INC. AND SUBSIDIARIES |
(dollars in thousands) |
Non-GAAP Financial Measure Disclosures (continued) |
Cash provided by operations, before pension contributions has been provided for consistency and comparability. We also use free cash flow available for debt reduction as a key factor in planning for and consideration of strategic acquisitions, stock repurchases 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, before pension contributions to cash provided by operations, as well as cash provided by operations to free cash flow available for debt reduction. |
Twelve Months Ended | ||||||
March 31, | ||||||
2013 | 2012 | |||||
Cash provided by operations, before pension contributions | $ | 453,238 | $ | 349,112 | ||
Pension contributions | 109,818 | 121,907 | ||||
Cash provided by operations | 343,420 | 227,205 | ||||
Less: | ||||||
Capital expenditures | 142,761 | 93,969 | ||||
Dividends | 8,006 | 6,899 | ||||
Free cash flow available for debt reduction | $ | 192,653 | $ | 126,337 |
We use "Net Debt to Capital" as a measure of financial leverage. The following table sets forth the computation of Net Debt to Capital: |
March 31, | March 31, | |||||||
2013 | 2012 | |||||||
Calculation of Net Debt |
||||||||
Current portion | $ | 133,930 | $ | 142,237 | ||||
Long-term debt | 1,195,933 | 1,016,625 | ||||||
Total debt | 1,329,863 | 1,158,862 | ||||||
Less: Cash | 32,037 | 29,662 | ||||||
Net debt | $ | 1,297,826 | $ | 1,129,200 | ||||
Calculation of Capital |
||||||||
Net debt | $ | 1,297,826 | $ | 1,129,200 | ||||
Stockholders' equity | 2,045,158 | 1,793,369 | ||||||
Total capital | $ | 3,342,984 | $ | 2,922,569 | ||||
Percent of net debt to capital | 38.8 | % | 38.6 | % |
Source:
Triumph Group, Inc.
Sheila Spagnolo
Vice President
610-251-1000
sspagnolo@triumphgroup.com