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Triumph Group Reports First Quarter Results

WAYNE, Pa.--(BUSINESS WIRE)--July 24, 2003--Triumph Group, Inc. (NYSE:TGI) reported today that for the first three months of fiscal 2004, net sales from continuing operations were $140.6 million, compared to $139.8 million for the first quarter of fiscal 2003. Net income for the first three months of fiscal 2004 was $7.1 million, or $0.45 per common share, versus $10.0 million, or $0.63 per common share, for the prior year quarter. Discontinued operations incurred a net loss of $0.6 million for the first three months of fiscal 2004. Income from continuing operations for the first quarter of fiscal 2004 was $7.6 million, or $0.48 per common share, compared to $9.7 million, or $0.60 per common share, for the prior year same period. All references to earnings per share herein are on the diluted basis.

Richard C. Ill, Triumph's President and Chief Executive Officer, said, "The results from continuing operations for the first quarter were in line with our expectations. We have reduced costs and eliminated redundancies to adjust to current market conditions, which we do not foresee recovering until late 2004."

Mr. Ill further stated, "We continue to experience a drop in commercial build rates and a continued weakness in the business jet market while our regional jet market remains steady. Our military business remains strong and our aftermarket services business, after a short slump due to SARS and the war in Iraq, is recovering. Also, while our original equipment industrial gas turbine business is down, we see an upturn in repair and overhaul activity."

"While we continue to operate in a difficult economic environment, we remain optimistic about our ability to broaden our product offerings and to increase market share. In continuing to execute our long-term growth strategies, we invested $15.0 million in the acquisition of the assets of Parker Hannifin's United Aircraft Products Division, now known as Triumph Thermal Systems, as well as investing $7.2 million in capital projects. These capital expenditures included completion of the $10.0 million long-line processing facility in Lynwood, California, and continuing construction of our engineering research and development center in Clemmons, North Carolina, which will support our control systems product line," said Mr. Ill.

"These actions reflect our continued commitment to expand the products and capabilities that we offer to our customers," Mr. Ill concluded.

Triumph Group, Inc. headquartered in Wayne, Pennsylvania, designs, engineers, manufactures, repairs and overhauls aircraft components and industrial gas turbine components and accessories. The Company serves a broad, worldwide spectrum of the aviation industry, including commercial airlines and air cargo carriers, as well as original equipment manufacturers of aircraft and aircraft components and power generation equipment.

More information about Triumph can be found on the Internet at http://www.triumphgroup.com.

Statements which are not historical facts, including statements regarding foreseeable industry conditions, the outlook for future repair and overhaul activity, and opportunities relating to product offerings and increased market share, are forward-looking statements under the provision of the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve risks and uncertainties including statements regarding the outlook for continued opportunities for future growth. The company wishes to caution readers that several important factors 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 Form 10-K for the year ended March 31, 2003.

FINANCIAL DATA (UNAUDITED) FOLLOWS

                      FINANCIAL DATA (UNAUDITED)

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

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

CONDENSED STATEMENTS OF INCOME                   2003        2002
                                               --------    --------


Net Sales                                      $140,629 $139,789

Operating Income                                 14,673      18,251

Interest Expense and Other                        2,833       3,282
Income Tax Expense                                4,203       5,314
                                               --------    --------

Income from Continuing Operations                 7,637       9,655
(Loss) Income from Discontinued Operations         (557)        391
                                               --------    --------

Net Income                                       $7,080 $10,046
                                               ========    ========

Earnings Per Share - Basic:

Income from Continuing Operations                 $0.48 $0.61
(Loss) Income from Discontinued Operations       ($0.04)      $0.02
                                               --------    --------
Net Income                                        $0.45(a)    $0.64(a)
                                               ========    ========

Weighted average common shares outstanding -
 Basic                                           15,835      15,817
                                               ========    ========

Earnings Per Share - Diluted:

Income from Continuing Operations                 $0.48 $0.60
(Loss) Income from Discontinued Operations       ($0.04)      $0.02
                                               --------    --------
Net Income                                        $0.45(a)    $0.63(a)
                                               ========    ========

Weighted average common shares outstanding -
 Diluted                                         15,883      15,991
                                               ========    ========

(a) difference due to rounding.

OTHER SELECTED INFORMATION

Continuing Operations:


Depreciation and Amortization                    $6,479 $5,992
                                               ========    ========


Capital Expenditures                             $7,211 $5,153
                                               ========    ========



                      FINANCIAL DATA (UNAUDITED)

                 TRIUMPH GROUP, INC. AND SUBSIDIARIES
                            (in thousands)

BALANCE SHEET
                                                 June 30,    March 31,
                                                   2003        2003
                                                 --------    --------
                    Assets
Cash                                               $9,121 $8,583
Accounts Receivable, net                          104,435     106,841
Inventory                                         205,552     196,343
Assets held for sale                               28,806      27,883
Prepaids and Other                                  3,381       3,549
                                                 --------    --------
     Current Assets                               351,295     343,199

Fixed Assets, net                                 221,090     215,832
Goodwill                                          271,784     260,467
Intangible Assets, net                             30,046      31,055
Other                                              15,532      13,615
                                                 --------    --------

Total Assets                                     $889,747 $864,168
                                                 ========    ========

       Liabilities & Stockholders' Equity



Accounts Payable                                  $43,628 $47,466
Accrued Expenses and Other                         39,508      44,808
Liabilities related to
 assets held for sale                               6,162       6,361
Income Taxes Payable                                4,272       3,231
Deferred Income Taxes                               1,585       1,585
Current Portion of Long-Term
 Debt                                               7,659       7,831
                                                 --------    --------
     Current Liabilities                          102,814     111,282

Long-Term Debt, less current
 portion                                          218,813     191,692
Deferred Income Taxes and
 Other                                             65,610      66,209

Stockholders' Equity:
     Common Stock, $.001 par value,
      50,000,000 shares authorized,
      16,027,324 shares issued                         16          16
Capital in excess of par
 value                                            258,760     258,675
Treasury Stock, at cost, 182,860 and
 183,260 shares                                    (4,539)     (4,549)
Accumulated other
 comprehensive income                                 893         543
Retained earnings                                 247,380     240,300
                                                 --------    --------
     Total Stockholders'
      Equity                                      502,510     494,985
                                                 --------    --------

Total Liabilities and
 Stockholders' Equity                            $889,747 $864,168
                                                 ========    ========



                      FINANCIAL DATA (UNAUDITED)

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

Non-GAAP Financial Measure Disclosures

Earnings before Interest, Taxes, Depreciation and Amortization
("EBITDA") for the three months ended June 30, 2003 was $21.2 million
with a margin of 15.0%. EBITDA for the three months ended June 30,
2002 was $24.2 million with a margin of 17.3%.

Management believes that EBITDA provides investors with an important
perspective on the current underlying performance of the business by
identifying non-cash expenses, interest and taxes included in income
from continuing operations.

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,
                                             ------------------------

                                                2003          2002
                                             ----------    ----------

Earnings before Interest, Taxes,
 Depreciation and Amortization (EBITDA):

       Income from Continuing Operations         7,637         9,655

       Add-back:
            Income Tax Expense                   4,203         5,314
            Interest Expense and Other           2,833         3,282
            Depreciation and Amortization        6,479         5,992
                                             ----------    ----------

       Earnings before Interest, Taxes,
        Depreciation
         and Amortization ("EBITDA")            21,152        24,243
                                             ----------    ----------


       Net Sales                               140,629       139,789
                                             ----------    ----------

       EBITDA Margin                              15.0%         17.3%
                                             ==========    ==========
CONTACT: Triumph Group, Inc., Wayne John Bartholdson, 610-251-1000 jbartholdson@triumphgroup.com

SOURCE: Triumph Group, Inc.
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