Search

News Release

Print Page Print Page | E-mail Page E-mail Page | RSS Feeds RSS Feeds | E-mail Alerts E-mail Alerts | Financial Tear Sheet Financial Tear Sheet

Printer Friendly Version View printer-friendly version
<< Back
Triumph Group Reports Record Fourth Quarter and Full Fiscal Year 2008 Results
  • Income from continuing operations for fourth quarter fiscal 2008 increased 37% to $21.3 million, or $1.26 per diluted share. Sales increased 24% to a record $321.2 million
  • Net sales for fiscal year 2008 increased 23% to $1.151 billion
  • Operating income for fourth quarter fiscal 2008 increased 34% to $35.5 million and for fiscal year 2008 increased 35% to $126.3 million, both reflecting significant improvement in operating margin
  • Backlog improved 13% over prior year to a record $1.3 billion
  • Income from continuing operations for fiscal year 2008 increased 49% to $75.7 million, or $4.32 per diluted share
  • Net income for fiscal year 2008 increased 43% to $67.3 million

WAYNE, Pa.--(BUSINESS WIRE)--May 1, 2008--Triumph Group, Inc. (NYSE:TGI) today reported that, for the fiscal year ended March 31, 2008, net sales totaled $1.151 billion, a twenty-three percent increase from fiscal year 2007 net sales of $937.3 million. Income from continuing operations for fiscal year 2008 increased forty-nine percent to $75.7 million, or $4.32 per diluted share, versus $51.0 million, or $3.11 per diluted share, for fiscal year 2007. Net income for fiscal year 2008 increased forty-three percent to $67.3 million, or $3.84 per diluted share, versus $47.1 million, or $2.87 per diluted share, for fiscal year 2007. The number of shares used in computing diluted earnings per share for fiscal year 2008 increased to 17.5 million shares. During this fiscal year, the company generated $51.1 million of cash flow from operations.

For the fourth quarter ended March 31, 2008, net sales were $321.2 million, a twenty-four percent increase from last fiscal year's fourth quarter net sales of $259.8 million. Income from continuing operations for the fourth quarter of fiscal year 2008 increased thirty-seven percent to $21.3 million, or $1.26 per diluted share, versus $15.5 million, or $0.93 per diluted share, for the fourth quarter of the prior fiscal year. Net income for the fourth quarter of fiscal year 2008 increased thirty-six percent to $19.4 million, or $1.15 per diluted share, versus $14.2 million, or $0.86 per diluted share, for the fourth quarter of the prior fiscal year. The number of shares used in computing diluted earnings per share for the fourth quarter of fiscal 2008 was 16.9 million shares. During the quarter, the company generated $25.0 million of cash flow from operations.

The Aerospace Systems segment reported net sales for fiscal year 2008 of $907.4 million, compared to $743.7 million for the prior fiscal year, an increase of twenty-two percent. Organic sales growth for fiscal year 2008 was twenty-one percent. For the fourth quarter of fiscal year 2008, net sales increased twenty-five percent to $256.6 million from $204.8 million for the prior fiscal year period. Excluding the recently announced acquisition of Triumph Structures-Long Island (formerly, B. & R. Machine and Tool Corp.), organic sales growth for the quarter was twenty-three percent. Operating income for fiscal year 2008 was $124.8 million, compared to $101.9 million for the prior fiscal year, an increase of twenty-three percent. For the fourth quarter, operating income increased twenty-four percent to $37.3 million versus $30.1 million for the prior fiscal year quarter. Operating income for fiscal year 2008 included $10.8 million of legal expenses associated with the previously disclosed trade secret litigation versus $4.9 million of legal expenses included in the operating income for fiscal year 2007.

The Aftermarket Services segment reported net sales for fiscal year 2008 of $246.6 million, compared to $196.5 million for the prior fiscal year, an increase of twenty-six percent. For the fourth quarter of fiscal year 2008, net sales increased eighteen percent to $65.5 million from $55.6 million for the prior fiscal year period. Operating income for fiscal year 2008 was $23.5 million, compared to $11.4 million for the prior fiscal year, an increase of 106 percent. For the quarter, operating income increased 117 percent to $6.4 million versus $3.0 million for the prior fiscal year quarter. Operating margins for fiscal year 2008 improved significantly to 9.5 percent from 5.8 percent in the prior fiscal year. Organic sales growth for fiscal year 2008 was thirteen percent.

Richard C. Ill, Triumph's President and Chief Executive Officer, said, "We are pleased to report both a record quarter and a record year for Triumph, with each of our business segments contributing to our outstanding results. For the quarter, we achieved record sales, strong segment operating margins and significant cash flow from operating activities. For the year, the fundamental driver behind our excellent results was strong organic revenue growth combined with improved execution. Backlog increased by $151.0 million to a record level of $1.3 billion. We are confident that the strength of our markets, our robust backlog and our healthy financial position will provide us with strong momentum heading into fiscal 2009 and beyond."

In commenting on the outlook for fiscal year 2009, Mr. Ill said, "Based on the robust fundamentals of our industry, our strong backlog and continuing improvement in our execution, we project sales in the range of $1.25 billion to $1.35 billion and earnings per share for the fiscal year of $4.85 to $5.05, computed on 18.0 million shares."

As previously announced, Triumph Group will hold a conference call tomorrow at 8:30 a.m. (ET) to discuss the fiscal year 2008 fourth quarter and year-end 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 May 2nd until May 9th by calling (888) 266-2081 (Domestic) or (703) 925-2533 (International), passcode #1227454.

Triumph Group, Inc., headquartered in Wayne, Pennsylvania, designs, engineers, manufactures, repairs and overhauls aircraft components and accessories. 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 Internet 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 expectations of future aerospace market conditions, financial and operational performance, revenue and earnings growth and sales and earnings results for fiscal 2009. 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 SEC, including our Annual Report on Form 10-K for the year ended March 31, 2007.

                      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                        2008      2007       2008       2007
                             --------- --------- ----------- ---------


Net Sales                    $321,215  $259,766  $1,151,090  $937,327

Operating Income               35,502    26,566     126,325    93,899

Interest Expense and Other      3,339     3,012      13,422    11,706
Charge for Early
 Extinguishment of Debt             0         0           0     5,088
Income Tax Expense             10,857     8,046      37,161    26,129
                             --------- --------- ----------- ---------

Income from Continuing
 Operations                    21,306    15,508      75,742    50,976
Loss from Discontinued
 Operations, net of tax        (1,896)   (1,282)     (8,468)   (3,905)
                             --------- --------- ----------- ---------

Net Income                   $ 19,410  $ 14,226  $   67,274  $ 47,071
                             ========= ========= =========== =========

Earnings Per Share - Basic:

Income from Continuing
 Operations                  $   1.30  $   0.95  $     4.59  $   3.14
Loss from Discontinued
 Operations                    ($0.12)   ($0.08)     ($0.51)   ($0.24)
                             --------- --------- ----------- ---------
Net Income                   $   1.18  $   0.87  $     4.08  $   2.90
                             ========= ========= =========== =========

Weighted average common
 shares outstanding - Basic    16,443    16,377      16,497    16,220
                             ========= ========= =========== =========

Earnings Per Share -
 Diluted:

Income from Continuing
 Operations                  $   1.26  $   0.93  $     4.32  $   3.11
Loss from Discontinued
 Operations                    ($0.11)   ($0.08)     ($0.48)   ($0.24)
                             --------- --------- ----------- ---------
Net Income                   $   1.15  $   0.86 *$     3.84  $   2.87
                             ========= ========= =========== =========

Weighted average common
 shares outstanding -
 Diluted                       16,937    16,599      17,540    16,413
                             ========= ========= =========== =========

Dividends declared and paid
 per common share            $   0.04  $   0.04  $     0.16  $   0.12
                             ========= ========= =========== =========


* Difference due to rounding.
                      FINANCIAL DATA (UNAUDITED)

                 TRIUMPH GROUP, INC. AND SUBSIDIARIES
            (dollars in thousands, except per share data)

BALANCE SHEET
                                                 March 31,  March 31,
                                                    2008       2007
                                                 ---------- ----------
                     Assets
  Cash                                              $13,738     $7,243
  Accounts Receivable, net                          207,975    168,372
  Inventory                                         361,667    296,080
  Deferred Income Taxes                              12,283     11,316
  Assets Held for Sale                               24,849     28,643
  Prepaid Expenses and Other                          5,121      6,713
                                                 ---------- ----------
    Current Assets                                  625,633    518,367

  Property and Equipment, net                       324,095    283,681
  Goodwill                                          383,740    339,930
  Intangible Assets, net                             78,488     69,919
  Other                                              13,712     17,261
                                                 ---------- ----------

  Total Assets                                   $1,425,668 $1,229,158
                                                 ========== ==========

       Liabilities & Stockholders' Equity

  Accounts Payable                                 $120,117   $101,332
  Accrued Expenses                                   83,397     75,582
  Liabilities Related to Assets Held for Sale         4,587      7,545
  Income Taxes Payable                                2,601      1,484
  Current Portion of Long-Term Debt                   1,010      5,702
                                                 ---------- ----------
    Current Liabilities                             211,712    191,645

  Long-Term Debt, less current portion              418,803    310,481
  Deferred Income Taxes and Other                   102,424     99,669

  Stockholders' Equity:
    Common Stock, $.001 par value, 50,000,000
     shares authorized, 16,517,374 and
     16,469,617 shares issued                            16         16
    Capital in excess of par value                  288,154    278,177
    Treasury Stock, at cost, 213,950 and 0
     shares                                        (12,003)          0
    Accumulated other comprehensive income
     (loss)                                           2,950      (120)
    Retained earnings                               413,612    349,290
                                                 ---------- ----------
      Total Stockholders' Equity                    692,729    627,363
                                                 ---------- ----------

  Total Liabilities and Stockholders' Equity     $1,425,668 $1,229,158
                                                 ========== ==========
                      FINANCIAL DATA (UNAUDITED)

                 TRIUMPH GROUP, INC. AND SUBSIDIARIES
                        (dollars in thousands)



SEGMENT DATA                 Three Months Ended   Twelve Months Ended
                                  March 31,            March 31,
                             ------------------- ---------------------

                               2008      2007       2008       2007
                             --------- --------- ----------- ---------

Net Sales:
  Aerospace Systems          $256,560  $204,803  $  907,376  $743,742
  Aftermarket Services         65,514    55,585     246,609   196,526
  Elimination of inter-
   segment sales                 (859)     (622)     (2,895)   (2,941)
                             --------- --------- ----------- ---------
                             $321,215  $259,766  $1,151,090  $937,327
                             ========= ========= =========== =========

Operating Income (Loss):
  Aerospace Systems          $ 37,253  $ 30,130  $  124,812  $101,867
  Aftermarket Services          6,408     2,950      23,480    11,384
  Corporate                    (8,159)   (6,514)    (21,967)  (19,352)
                             --------- --------- ----------- ---------
                             $ 35,502  $ 26,566  $  126,325  $ 93,899
                             ========= ========= =========== =========

Depreciation and
 Amortization:
  Aerospace Systems          $  7,973  $  6,922  $   30,007  $ 26,080
  Aftermarket Services          3,441     2,911      12,943     9,394
  Corporate                        68        61         265       229
                             --------- --------- ----------- ---------
                             $ 11,482  $  9,894  $   43,215  $ 35,703
                             ========= ========= =========== =========


Capital Expenditures:
  Aerospace Systems          $ 14,886  $ 13,972  $   40,762  $ 39,220
  Aftermarket Services          8,982     5,416      20,652    19,672
  Corporate                       247       111         954       299
                             --------- --------- ----------- ---------
                             $ 24,115  $ 19,499  $   62,368  $ 59,191
                             ========= ========= =========== =========
                      FINANCIAL DATA (UNAUDITED)

                 TRIUMPH GROUP, INC. AND SUBSIDIARIES
                        (dollars in thousands)

Non-GAAP Financial Measure Disclosures


Earnings before Interest, Taxes, Depreciation and Amortization
 ("EBITDA") for the three months ended March 31, 2008 was $47.0
 million with a margin of 14.6%. EBITDA for the three months ended
 March 31, 2007 was $36.5 million with a margin of 14.0%. EBITDA for
 the twelve months ended March 31, 2008 was $169.5 million with a
 margin of 14.7%. EBITDA for the twelve months ended March 31, 2007
 was $129.6 million with a margin of 13.8%.

Management believes that EBITDA provides the reader a good measure of
 cash generated from the operations of the business before any
 investment in working capital or fixed assets.

The following definition is provided for the non-GAAP financial
 measure identified above, together with a reconciliation of such non-
 GAAP financial measure to the most directly comparable financial
 measure calculated and presented in accordance with GAAP.

                             Three Months Ended   Twelve Months Ended
                                  March 31,            March 31,
                             ------------------- ---------------------
                               2008      2007       2008       2007
                             --------- --------- ----------- ---------
Earnings before Interest,
 Taxes, Depreciation and
 Amortization (EBITDA):

  Income from Continuing
   Operations                $ 21,306  $ 15,508  $   75,742  $ 50,976

  Add-back:
    Income Tax Expense         10,857     8,046      37,161    26,129
    Charge for Early
     Extinguishment of Debt         0         0           0     5,088
    Interest Expense and
     Other                      3,339     3,012      13,422    11,706
    Depreciation and
     Amortization              11,482     9,894      43,215    35,703
                             --------- --------- ----------- ---------

  Earnings before Interest,
   Taxes, Depreciation and
   Amortization ("EBITDA")   $ 46,984  $ 36,460  $  169,540  $129,602
                             --------- --------- ----------- ---------

  Net Sales                  $321,215  $259,766  $1,151,090  $937,327
                             --------- --------- ----------- ---------

  EBITDA Margin                  14.6%     14.0%       14.7%     13.8%
                             ========= ========= =========== =========
                      FINANCIAL DATA (UNAUDITED)

                 TRIUMPH GROUP, INC. AND SUBSIDIARIES
                        (dollars in thousands)

Non-GAAP Financial Measure Disclosures (continued)

Earnings before
 Interest, Taxes,
 Depreciation and
 Amortization
 (EBITDA):                    Three Months Ended March 31, 2008
                       -----------------------------------------------
                                              Segment Data
                                   -----------------------------------
                                   Aerospace Aftermarket  Corporate /
                          Total     Systems   Services   Eliminations
                       ----------- --------- ----------- -------------

Income from Continuing
 Operations            $   21,306

Add-back:
     Income Tax
      Expense              10,857
     Interest Expense
      and Other             3,339
                       -----------

Operating Income
 (Expense)             $   35,502  $ 37,253  $    6,408       ($8,159)

     Depreciation and
      Amortization         11,482     7,973       3,441            68
                       ----------- --------- ----------- -------------

Earnings (Losses)
 before Interest,
 Taxes, Depreciation
 and Amortization
 ("EBITDA")            $   46,984  $ 45,226  $    9,849       ($8,091)
                       =========== ========= =========== =============

Net Sales              $  321,215  $256,560  $   65,514         ($859)
                       =========== ========= =========== =============

EBITDA Margin                14.6%     17.6%       15.0%          n/a
                       =========== ========= =========== =============


Earnings before
 Interest, Taxes,
 Depreciation and
 Amortization
 (EBITDA):                   Twelve Months Ended March 31, 2008
                       -----------------------------------------------
                                              Segment Data
                                   -----------------------------------
                                   Aerospace Aftermarket  Corporate /
                          Total     Systems   Services   Eliminations
                       ----------- --------- ----------- -------------

Income from Continuing
 Operations            $   75,742

Add-back:
     Income Tax
      Expense              37,161
     Interest Expense
      and Other            13,422
                       -----------

Operating Income
 (Expense)             $  126,325  $124,812  $   23,480      ($21,967)

     Depreciation and
      Amortization         43,215    30,007      12,943           265
                       ----------- --------- ----------- -------------

Earnings (Losses)
 before Interest,
 Taxes, Depreciation
 and Amortization
 ("EBITDA")            $  169,540  $154,819  $   36,423      ($21,702)
                       =========== ========= =========== =============

Net Sales              $1,151,090  $907,376  $  246,609       ($2,895)
                       =========== ========= =========== =============

EBITDA Margin                14.7%     17.1%       14.8%          n/a
                       =========== ========= =========== =============
                      FINANCIAL DATA (UNAUDITED)

                 TRIUMPH GROUP, INC. AND SUBSIDIARIES
                        (dollars in thousands)

Non-GAAP Financial Measure Disclosures (continued)

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,
                                                  2008        2007
                                               ----------- -----------

Calculation of Net Debt
----------------------------------------------
Current Portion                                $    1,010  $    5,702
Long-term debt                                    418,803     310,481
                                               ----------- -----------
Total Debt                                        419,813     316,183
Less: Cash                                         13,738       7,243
                                               ----------- -----------
Net Debt                                       $  406,075  $  308,940
                                               =========== ===========

Calculation of Capital
----------------------------------------------
Net Debt                                       $  406,075  $  308,940
Stockholders' equity                              692,729     627,363
                                               ----------- -----------
Total Capital                                  $1,098,804  $  936,303
                                               =========== ===========

Percent of Net Debt to Capital                       37.0%       33.0%

CONTACT: Triumph Group, Inc.
Sheila Spagnolo
Vice President
610-251-1000
sspagnolo@triumphgroup.com

SOURCE: Triumph Group, Inc.

Background Shadow
Container Bottom Shadow