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 First Quarter Fiscal 2009 Earnings; Raises Fiscal Year 2009 Guidance

-- Net sales for the first quarter fiscal 2009 increased 17% to $320.6 million

-- Operating income from continuing operations for the first quarter fiscal 2009 increased 43% to a record $43.3 million, reflecting a 23% improvement in operating margin

-- Income from continuing operations for the first quarter fiscal 2009 increased 46% to $26.0 million, or $1.54 per diluted share

-- Net income for the first quarter fiscal 2009 increased 78% to $24.8 million, or $1.47 per diluted share

WAYNE, Pa.--(BUSINESS WIRE)--July 24, 2008--Triumph Group, Inc. (NYSE:TGI) today reported that net sales for the first quarter of fiscal year ending March 31, 2009 totaled $320.6 million, a seventeen percent increase from last year's first quarter net sales of $275.0 million. Income from continuing operations for the first quarter of fiscal year 2009 increased forty-six percent to $26.0 million, or $1.54 per diluted share, versus $17.8 million, or $1.04 per diluted share, for the first quarter of the prior fiscal year. Net income for the first quarter of fiscal year 2009 increased seventy-eight percent to $24.8 million, or $1.47 per diluted share, versus $13.9 million, or $0.81 per diluted share, for the first quarter of the prior fiscal year. The number of shares used in computing diluted earnings per share for the first quarter of fiscal year 2009 was 16.9 million shares. During the quarter, the company generated $14.9 million of cash flow from operations.

The Aerospace Systems segment reported net sales for the quarter of $258.2 million compared to $217.3 million in the prior year period, an increase of nineteen percent. Operating income for the first quarter of fiscal year 2009 was $46.1 million, compared to $30.3 million for the prior year period, a fifty-two percent increase. Operating margin improved twenty-eight percent from the prior year's first quarter to eighteen percent. Organic sales growth for the quarter was thirteen percent. Operating income for the quarter included $1.5 million of legal expenses associated with the ongoing trade secret litigation.

The Aftermarket Services segment reported net sales for the quarter of $63.0 million compared to $58.3 million in the prior year, an eight percent increase, all of which was organic. Operating income for the first quarter of fiscal year 2009 was $3.9 million, compared to $5.7 million for the prior year period, a thirty-two percent decrease. Operating results for the quarter included a charge for $1.3 million for the early termination of a maintenance contract. In addition, margins were negatively impacted by an adjustment to the revenue recognized on a power by the hour contract.

Richard C. Ill, Triumph's President and Chief Executive Officer, said, "We are very proud of the results achieved during the first quarter, particularly the margin improvement in our Aerospace Systems Group. Even in these times of economic uncertainty, we delivered continued growth in revenue, operating income and earnings. Our robust backlog should allow us to more than offset the anticipated reductions in airline capacity."

In commenting on the outlook for the fiscal year 2009, Mr. Ill said, "Based on our strong first quarter performance and our confidence in our ability to generate enhanced operating earnings and profitability for the balance of the year, we now expect that earnings per share from continuing operations for the fiscal year will be in excess of $5.25 per diluted share, which would be a twenty-two percent increase over the prior year, computed on 18.0 million shares. We reaffirm that sales will be in the range of $1.25 to $1.35 billion."

As previously announced, Triumph Group will hold a conference call tomorrow at 8:30 a.m. (ET) to discuss the fiscal year 2009 first quarter 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 25th until August 1st by calling (888) 266-2081 (Domestic) or (703) 925-2533 (International), passcode #1261661.

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, future operating margins 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, 2008.


                      FINANCIAL DATA (UNAUDITED)

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


                                                  Three Months Ended
                                                       June 30,
                                                  -------------------

CONDENSED STATEMENTS OF INCOME                      2008      2007
                                                  --------- ---------


Net Sales                                         $320,556  $275,004

Operating Income                                    43,328    30,254

Interest Expense and Other                           3,427     3,207
Income Tax Expense                                  13,867     9,236
                                                  --------- ---------

Income from Continuing Operations                   26,034    17,811
Loss from Discontinued Operations, net of tax       (1,203)   (3,894)
                                                  --------- ---------

Net Income                                        $ 24,831  $ 13,917
                                                  ========= =========

Earnings Per Share - Basic:

Income from Continuing Operations                 $   1.59  $   1.08
Loss from Discontinued Operations                   ($0.07)   ($0.24)
                                                  --------- ---------
Net Income                                        $   1.52  $   0.85 *
                                                  ========= =========

Weighted average common shares outstanding -
 Basic                                              16,373    16,458
                                                  ========= =========

Earnings Per Share - Diluted:

Income from Continuing Operations                 $   1.54  $   1.04
Loss from Discontinued Operations                   ($0.07)   ($0.23)
                                                  --------- ---------
Net Income                                        $   1.47  $   0.81
                                                  ========= =========

Weighted average common shares outstanding -
 Diluted                                            16,891    17,204
                                                  ========= =========

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


* Difference due to rounding.

                      FINANCIAL DATA (UNAUDITED)

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

BALANCE SHEET
                                                June 30,    March 31,
                                                  2008        2008
                                               ----------- -----------
                    Assets
Cash                                           $   13,888  $   13,738
Accounts Receivable, net                          199,384     207,975
Inventory                                         381,400     361,667
Deferred Income Taxes                               1,044       1,450
Assets Held for Sale                               25,844      24,763
Prepaid Expenses and Other                          4,298       5,207
                                               ----------- -----------
      Current Assets                              625,858     614,800

Property and Equipment, net                       324,295     324,095
Goodwill                                          384,593     383,740
Intangible Assets, net                             75,493      78,488
Other                                              15,399      13,712
                                               ----------- -----------

Total Assets                                   $1,425,638  $1,414,835
                                               =========== ===========

      Liabilities & Stockholders' Equity

Accounts Payable                               $  103,559  $  120,117
Accrued Expenses                                   74,915      83,397
Liabilities Related to Assets Held for Sale         4,873       4,587
Income Taxes Payable                                9,295       1,509
Current Portion of Long-Term Debt                   1,036       1,010
                                               ----------- -----------
      Current Liabilities                         193,678     210,620

Long-Term Debt, less current portion              414,988     418,803
Income Taxes Payable, non-current                   1,459       1,437
Deferred Income Taxes and Other                    98,261      91,246

Stockholders' Equity:
      Common Stock, $.001 par value,
       50,000,000 shares authorized,
       16,578,745 and 16,517,374 shares issued         16          16
      Capital in excess of par value              288,991     288,154
      Treasury Stock, at cost, 189,679 and
       213,950 shares                             (10,641)    (12,003)
      Accumulated other comprehensive income        4,432       2,950
      Retained earnings                           434,454     413,612
                                               ----------- -----------
        Total Stockholders' Equity                717,252     692,729
                                               ----------- -----------

Total Liabilities and Stockholders' Equity     $1,425,638  $1,414,835
                                               =========== ===========

                      FINANCIAL DATA (UNAUDITED)

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



SEGMENT DATA                                       Three Months Ended
                                                        June 30,
                                                   -------------------

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

Net Sales:
  Aerospace Systems                                $258,232  $217,280
  Aftermarket Services                               62,968    58,313
  Elimination of inter-segment sales                   (644)     (589)
                                                   --------- ---------
                                                   $320,556  $275,004
                                                   ========= =========

Operating Income (Loss):
  Aerospace Systems                                $ 46,070  $ 30,329
  Aftermarket Services                                3,887     5,728
  Corporate                                          (6,629)   (5,803)
                                                   --------- ---------
                                                   $ 43,328  $ 30,254
                                                   ========= =========

Depreciation and Amortization:
  Aerospace Systems                                $  8,603  $  7,258
  Aftermarket Services                                3,503     3,202
  Corporate                                              67        63
                                                   --------- ---------
                                                   $ 12,173  $ 10,523
                                                   ========= =========


Capital Expenditures:
  Aerospace Systems                                $  9,154  $  7,126
  Aftermarket Services                                2,147     2,297
  Corporate                                              62       411
                                                   --------- ---------
                                                   $ 11,363  $  9,834
                                                   ========= =========


                      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 June 30, 2008 was $55.5 million
 with a margin of 17.3%. EBITDA for the three months ended June 30,
 2007 was $40.8 million with a margin of 14.8%.

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
                                                         June 30,
                                                    ------------------
                                                      2008      2007
                                                    --------- --------
Earnings before Interest, Taxes, Depreciation and
 Amortization (EBITDA):

  Income from Continuing Operations                   $26,034  $17,811

  Add-back:
    Income Tax Expense                                 13,867    9,236
    Interest Expense and Other                          3,427    3,207
    Depreciation and Amortization                      12,173   10,523
                                                    --------- --------

  Earnings before Interest, Taxes, Depreciation and
   Amortization ("EBITDA")                            $55,501  $40,777
                                                    --------- --------

  Net Sales                                          $320,556 $275,004
                                                    --------- --------

  EBITDA Margin                                         17.3%    14.8%
                                                    ========= ========

                      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 June 30, 2008
                          --------------------------------------------
                                              Segment Data
                                   -----------------------------------
                                   Aerospace Aftermarket Corporate /
                           Total    Systems    Services   Eliminations
                          -------- --------- ----------- -------------

  Income from Continuing
   Operations              $26,034

  Add-back:
    Income Tax Expense      13,867
    Interest Expense and
     Other                   3,427
                          --------

  Operating Income
   (Expense)               $43,328   $46,070      $3,887      ($6,629)

    Depreciation and
     Amortization           12,173     8,603       3,503            67
                          -------- --------- ----------- -------------

  Earnings (Losses)
   before Interest,
   Taxes, Depreciation
   and Amortization
   ("EBITDA")              $55,501   $54,673      $7,390      ($6,562)
                          ======== ========= =========== =============

  Net Sales               $320,556  $258,232     $62,968        ($644)
                          ======== ========= =========== =============

  EBITDA Margin              17.3%     21.2%       11.7%           n/a
                          ======== ========= =========== =============

                      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 June 30, 2007
                          --------------------------------------------
                                               Segment Data
                                    ----------------------------------
                                    Aerospace Aftermarket Corporate /
                            Total    Systems   Services   Eliminations
                          --------- --------- ----------- ------------

Income from Continuing
 Operations               $ 17,811

Add-back:
  Income Tax Expense         9,236
  Interest Expense and
   Other                     3,207
                          ---------

Operating Income
 (Expense)                $ 30,254  $ 30,329     $ 5,728      ($5,803)

  Depreciation and
   Amortization             10,523     7,258       3,202           63
                          --------- --------- ----------- ------------

Earnings (Losses) before
 Interest, Taxes,
 Depreciation and
  Amortization ("EBITDA") $ 40,777  $ 37,587     $ 8,930      ($5,740)
                          ========= ========= =========== ============

Net Sales                 $275,004  $217,280     $58,313        ($589)
                          ========= ========= =========== ============

EBITDA Margin                 14.8%     17.3%       15.3%         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:

                                                June 30,    March 31,
                                                  2008        2008
                                               ----------- -----------

Calculation of Net Debt
----------------------------------------------
Current Portion                                $    1,036  $    1,010
Long-term debt                                    414,988     418,803
                                               ----------- -----------
Total Debt                                        416,024     419,813
Less: Cash                                         13,888      13,738
                                               ----------- -----------
Net Debt                                       $  402,136  $  406,075
                                               =========== ===========

Calculation of Capital
----------------------------------------------
Net Debt                                       $  402,136  $  406,075
Stockholders' equity                              717,252     692,729
                                               ----------- -----------
Total Capital                                  $1,119,388  $1,098,804
                                               =========== ===========

Percent of Net Debt to Capital                       35.9%       37.0%

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

SOURCE: Triumph Group, Inc.

Background Shadow
Container Bottom Shadow