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 Third Quarter Fiscal 2007 Results

  • Net sales for the third quarter fiscal 2007 increased 29% to $242.3 million


  • Operating income for the third quarter fiscal 2007 increased 80% to $23.8 million


  • Net income for the third quarter fiscal 2007 increased 16% to $10.8 million


  • Backlog increased 29% over prior year to $1.1 billion

WAYNE, Pa.--(BUSINESS WIRE)--Jan. 25, 2007--Triumph Group, Inc. (NYSE: TGI) today reported that net sales for the third quarter of the fiscal year ending March 31, 2007 totaled $242.3 million, a twenty-nine percent increase from last year's third quarter net sales of $187.2 million. Net income for the third quarter of fiscal year 2007 increased sixteen percent to $10.8 million, or $0.66 per diluted common share, versus $9.3 million, or $0.58 per diluted common share for the third quarter of the prior year. During the quarter, the company generated $15.5 million of cash flow from operations. Results for the third quarter of fiscal year 2007 included $0.20 per share charge related to the early retirement of debt and $0.03 per share charge related to stock-based compensation. Also, during the quarter, the company adjusted its effective tax rate to reflect a $0.06 per share benefit from the renewal of the Research and Experimentation tax credit in December.

Net sales for the first nine months of fiscal year 2007 were $691.3 million, a twenty-six percent increase over net sales of $548.6 million last year. Net income for the first nine months of fiscal year 2007 increased thirty-nine percent to $32.8 million, or $2.01 per diluted common share, compared to net income of $23.6 million, or $1.47 per diluted common share in the prior year period. During the nine months, the company generated $20.7 million of cash flow from operations.

Prior year period segment results have been changed to classify certain revenue and costs from the Aftermarket Services segment to the Aerospace Systems segment for the operation of Triumph Fabrications-Phoenix and Triumph Fabrications-Fort Worth due to the fact that most of their product line has been transitioned to aerospace OEM products. The transitioning of these business units resulted in the shift of approximately $5.6 million in revenue and $1.7 million in operating loss for the quarter ended December 31, 2005, previously reported in the Aftermarket Services segment, to the Aerospace Systems segment. Segment results have been adjusted to reflect these changes.

The Aerospace Systems segment reported net sales for the quarter of $190.1 million compared to $147.2 million in the prior year period, an increase of twenty-nine percent. Operating income for the third quarter of fiscal year 2007 was $25.8 million, compared to $15.8 million for the prior year period, a sixty-four percent increase. Organic sales growth for the quarter was eighteen percent.

The Aftermarket Services segment reported net sales for the quarter of $52.7 million compared to $40.8 million in the prior year, a twenty-nine percent increase. Operating income for the third quarter of fiscal year 2007 was $2.7 million, compared to $1.6 million for the prior year period, a seventy percent increase. Organic sales growth for the quarter was twenty-one percent. Operating results for the quarter reflected $1.0 million of start up costs associated with the new Thailand maintenance and repair facility.

Richard C. Ill, Triumph's President and Chief Executive Officer, said, "Triumph had another very strong quarter marked by continued growth in revenue, operating income and earnings. Based on the strength of our markets and our robust backlog, we are confident that we will continue to generate significant revenue growth and enhanced operating earnings for the balance of fiscal year 2007 and beyond."

Commenting on the outlook for the year, Mr. Ill stated, "As a result of our strong performance, we expect that fiscal year 2007 sales will be in the range of $950 million to $975 million and earnings per share for the fiscal year will meet or exceed the upper end of the previously announced range of $2.65 to $2.70, which includes the $0.20 per share charge for the early retirement of debt."

As previously announced, Triumph Group will hold a conference call on January 26th at 8:30 a.m. (ET) to discuss the fiscal year 2007 third quarter results. The conference call will be available live and archived on the company's website at http://www.triumphgroup.com. An audio replay will be available from January 26th until February 2nd by calling (888) 266-2081 (Domestic) or (703) 925-2533 (International), passcode #1026032.

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 performance, profitability, growth and earnings. 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, 2006.

                      FINANCIAL DATA (UNAUDITED)

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

                               Three Months Ended   Nine Months Ended
                                  December 31,        December 31,
                               ------------------- -------------------

CONDENSED STATEMENTS OF INCOME   2006      2005      2006      2005
                               --------- --------- --------- ---------


Net Sales                      $242,341  $187,221  $691,285  $548,551

Operating Income                 23,777    13,203    65,358    40,150

Interest Expense and Other        3,227     3,086    10,754     9,445
Charge for Early
 Extinguishment of Debt           5,088         0     5,088         0
Income Tax Expense                4,661       770    16,671     7,145
                               --------- --------- --------- ---------

Net Income                      $10,801    $9,347   $32,845   $23,560
                               ========= ========= ========= =========

Earnings Per Share - Basic:

Net Income                        $0.66     $0.59     $2.03     $1.48
                               ========= ========= ========= =========

Weighted average common shares
 outstanding - Basic             16,262    15,912    16,168    15,909
                               ========= ========= ========= =========

Earnings Per Share - Diluted:

Net Income                        $0.66     $0.58     $2.01     $1.47
                               ========= ========= ========= =========

Weighted average common shares
 outstanding - Diluted           16,459    16,052    16,353    16,038
                               ========= ========= ========= =========

Dividends declared and paid
 per common share                 $0.04     $0.00     $0.08     $0.00
                               ========= ========= ========= =========
                      FINANCIAL DATA (UNAUDITED)

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

BALANCE SHEET
                                                December 31, March 31,
                                                    2006       2006
                                                ------------ ---------
                                Assets
  Cash                                               $9,349    $5,698
  Accounts Receivable, net                          160,989   147,780
  Inventory                                         285,981   235,878
  Deferred Income Taxes                               6,868     6,868
  Prepaid Expenses and Other                          6,444     4,894
                                                ------------ ---------
    Current Assets                                  469,631   401,118

  Property and Equipment, net                       274,672   237,325
  Goodwill                                          321,290   272,737
  Intangible Assets, net                             61,827    49,424
  Other                                              19,126    14,179
                                                ------------ ---------

  Total Assets                                   $1,146,546  $974,783
                                                ============ =========

                  Liabilities & Stockholders' Equity

  Accounts Payable                                  $83,443   $73,995
  Accrued Expenses                                   69,056    68,488
  Income Taxes Payable                                5,880     5,195
  Current Portion of Long-Term Debt                      71     8,078
                                                ------------ ---------
    Current Liabilities                             158,450   155,756

Long-Term Debt, less current portion                279,619   153,339
Deferred Income Taxes and Other                      98,756   101,985

Stockholders' Equity:
  Common Stock, $.001 par value, 50,000,000
   shares authorized, 16,387,503 and 16,027,324
   shares issued                                         16        16
  Capital in excess of par value                    273,151   260,124
  Treasury Stock, at cost, 500 and 18,311
   shares                                                 0      (455)
  Accumulated other comprehensive income (loss)         832      (162)
  Retained earnings                                 335,722   304,180
                                                ------------ ---------
    Total Stockholders' Equity                      609,721   563,703
                                                ------------ ---------

Total Liabilities and Stockholders' Equity       $1,146,546  $974,783
                                                ============ =========
                      FINANCIAL DATA (UNAUDITED)

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

SEGMENT DATA                   Three Months Ended   Nine Months Ended
                                  December 31,        December 31,
                               ------------------- -------------------

                                 2006      2005      2006      2005
                               --------- --------- --------- ---------

Net Sales:
  Aerospace Systems            $190,100  $147,215  $544,002  $431,148
  Aftermarket Services           52,650    40,837   149,134   120,005
  Elimination of inter-segment
   sales                           (409)     (831)   (1,851)   (2,602)
                               --------- --------- --------- ---------
                               $242,341  $187,221  $691,285  $548,551
                               ========= ========= ========= =========

Operating Income (Loss):
  Aerospace Systems             $25,809   $15,762   $71,455   $46,644
  Aftermarket Services            2,748     1,616     6,741     4,303
  Corporate                      (4,780)   (4,175)  (12,838)  (10,797)
                               --------- --------- --------- ---------
                                $23,777   $13,203   $65,358   $40,150
                               ========= ========= ========= =========

Depreciation and Amortization:
  Aerospace Systems              $6,567    $6,001   $19,323   $17,764
  Aftermarket Services            2,610     2,088     7,320     6,174
  Corporate                          57        41       168       105
                               --------- --------- --------- ---------
                                 $9,234    $8,130   $26,811   $24,043
                               ========= ========= ========= =========


Capital Expenditures:
  Aerospace Systems             $10,482    $3,437   $25,354    $9,701
  Aftermarket Services            3,439     3,110    14,597     7,286
  Corporate                          43       268       188       301
                               --------- --------- --------- ---------
                                $13,964    $6,815   $40,139   $17,288
                               ========= ========= ========= =========
                      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 December 31, 2006 was $33.0
 million with a margin of 13.6%. EBITDA for the three months ended
 December 31, 2005 was $21.3 million with a margin of 11.4%. EBITDA
 for the nine months ended December 31, 2006 was $92.2 million with a
 margin of 13.3%. EBITDA for the nine months ended December 31, 2005
 was $64.2 million with a margin of 11.7%.

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   Nine Months Ended
                                  December 31,        December 31,
                               ------------------- -------------------
                                 2006      2005      2006      2005
                               --------- --------- --------- ---------
  Earnings before Interest,
   Taxes, Depreciation and
    Amortization (EBITDA):

Net Income                      $10,801    $9,347   $32,845   $23,560

Add-back:
  Income Tax Expense              4,661       770    16,671     7,145
  Charge for Early
   Extinguishment of Debt         5,088         0     5,088         0
  Interest Expense and Other      3,227     3,086    10,754     9,445
  Depreciation and
   Amortization                   9,234     8,130    26,811    24,043
                               --------- --------- --------- ---------

Earnings before Interest,
 Taxes, Depreciation and
 Amortization ("EBITDA")        $33,011   $21,333   $92,169   $64,193
                               --------- --------- --------- ---------

Net Sales                      $242,341  $187,221  $691,285  $548,551
                               --------- --------- --------- ---------

EBITDA Margin                      13.6%     11.4%     13.3%     11.7%
                               ========= ========= ========= =========
                      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 December 31, 2006
                         ---------------------------------------------
                                              Segment Data
                                   -----------------------------------
                                   Aerospace Aftermarket Corporate /
                           Total    Systems    Services   Eliminations
                         --------- --------- ----------- -------------

Net Income                $10,801

Add-back:
  Income Tax Expense        4,661
  Charge for Early
   Extinguishment of
   Debt                     5,088
  Interest Expense and
   Other                    3,227
                         ---------

Operating Income
 (Expense)                $23,777   $25,809      $2,748       ($4,780)

  Depreciation and
   Amortization             9,234     6,567       2,610            57
                         --------- --------- ----------- -------------

Earnings (Losses) before
 Interest, Taxes,
 Depreciation and
 Amortization ("EBITDA")  $33,011   $32,376      $5,358       ($4,723)
                         ========= ========= =========== =============

Net Sales                $242,341  $190,100     $52,650         ($409)
                         ========= ========= =========== =============

EBITDA Margin                13.6%     17.0%       10.2%     n/a
                         ========= ========= =========== =============


    Earnings before
    Interest, Taxes,
    Depreciation and
 Amortization (EBITDA):       Nine Months Ended December 31, 2006
                         ---------------------------------------------
                                              Segment Data
                                   -----------------------------------
                                   Aerospace Aftermarket Corporate /
                           Total    Systems    Services   Eliminations
                         --------- --------- ----------- -------------

Net Income                $32,845

Add-back:
  Income Tax Expense       16,671
  Charge for Early
   Extinguishment of
   Debt                     5,088
  Interest Expense and
   Other                   10,754
                         ---------

Operating Income
 (Expense)                $65,358   $71,455      $6,741      ($12,838)

  Depreciation and
   Amortization            26,811    19,323       7,320           168
                         --------- --------- ----------- -------------

Earnings (Losses) before
 Interest, Taxes,
 Depreciation and
 Amortization ("EBITDA")  $92,169   $90,778     $14,061      ($12,670)
                         ========= ========= =========== =============

Net Sales                $691,285  $544,002    $149,134       ($1,851)
                         ========= ========= =========== =============

EBITDA Margin                13.3%     16.7%        9.4%     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:

                                             December 31,  March 31,
                                                2006         2006
                                             ------------ ------------

Calculation of Net Debt
-----------------------
Current Portion                                      $71       $8,078
Long-term debt                                   279,619      153,339
                                             ------------ ------------
Total Debt                                       279,690      161,417
Less: Cash                                         9,349        5,698
                                             ------------ ------------
Net Debt                                        $270,341     $155,719
                                             ============ ============

Calculation of Capital
-----------------------
Net Debt                                        $270,341     $155,719
Stockholders' equity                             609,721      563,703
                                             ------------ ------------
Total Capital                                   $880,062     $719,422
                                             ============ ============

Percent of Net Debt to Capital                      30.7%        21.6%
                      FINANCIAL DATA (UNAUDITED)

                 TRIUMPH GROUP, INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measure Disclosures

The Company believes its earnings excluding the third quarter charge
 for the early extinguishment of debt provides financial statement
 users with meaningful insight into operating trends.

Reconciliation of Non-GAAP EPS to GAAP EPS:

                                  Three Months Ended Nine Months Ended
                                     December 31,      December 31,
                                  ------------------ -----------------
                                     2006     2005     2006     2005
                                  ----------- ------ ---------- ------

Earnings Per Share - Basic:            $0.66  $0.59      $2.03  $1.48

Third Quarter Charge for Early
 Extinguishment of Debt                $0.20  $0.00      $0.20  $0.00
                                  ----------- ------ ---------- ------

Earnings Per Share-Basic,
 Excluding Charge for Early
 Extinguishment of Debt                $0.86  $0.59      $2.23  $1.48
                                  =========== ====== ========== ======



Earnings Per Share - Diluted:          $0.66  $0.58      $2.01  $1.47

Third Quarter Charge for Early
 Extinguishment of Debt                $0.20  $0.00      $0.20  $0.00
                                  ----------- ------ ---------- ------

Earnings Per Share-Diluted,
 Excluding Charge for Early
 Extinguishment of Debt                $0.86  $0.58      $2.21  $1.47
                                  =========== ====== ========== ======

    CONTACT: Triumph Group, Inc.
             John Bartholdson, 610-251-1000
             jbartholdson@triumphgroup.com

    SOURCE: Triumph Group, Inc.
Background Shadow
Container Bottom Shadow