Print Page  Close Window

News Release
Triumph Group Reports Year End Results

WAYNE, Pa.--(BUSINESS WIRE)--April 22, 2004--Triumph Group, Inc. (NYSE:TGI) reported today that, for fiscal 2004, net sales from continuing operations were $608.3 million, compared to $565.4 million for fiscal 2003. Net income for fiscal 2004 was $18.2 million, or $1.14 per diluted common share, versus $36.7 million, or $2.31 per diluted common share, for fiscal 2003. Discontinued operations incurred a net loss of $1.2 million for fiscal 2004 compared to a net loss of $0.9 million in the prior year.

Net sales from continuing operations for the fourth quarter ended March 31, 2004 were $175.8 million, compared to $151.7 million for the prior year, a 16 percent increase. Net income for the fourth quarter of fiscal 2004 was $1.2 million, or $0.08 per diluted common share, down from $8.7 million, or $0.55 per diluted common share, in the prior year. Discontinued operations broke even for the three months ended March 31, 2004 compared to a net loss of $0.8 million in the prior year period.

As a result of the continuing reduction in the IGT business and the decision to consolidate the operations of its Components Group, the quarter's results included the Group's operating loss of approximately $16.0 million, which was primarily associated with our Phoenix operations and included writing down inventory values, increasing bad debt reserves and reducing the book value of associated equipment. The Group's results also included R & D costs of $1.5 million incurred in developing aftermarket replacement parts for the IGT market. It is anticipated that up to $4.0 million of cost will be incurred in fiscal year 2005 as the consolidation is completed.

Richard C. III, Triumph's President and Chief Executive Officer, said, "We are encouraged by the positive trends in revenue which, when added to the contribution from the Triumph Gear Systems' acquired revenue, enabled us to achieve record sales in the quarter. Strength in our aerospace and aftermarket repair and overhaul shipments more than offset the lower demand levels from new aircraft build rates, which appear to be bottoming out. While we are encouraged by the revenue growth we experienced in our aviation markets, we are disappointed by the sharp decline in the IGT markets demand for new generating units and the impact this has had on our results. We remain committed to the long term opportunities in supplying parts and services to the IGT aftermarket and our realignment steps will better position our facilities and capabilities to meet our customers requirements."

Regarding the outlook for the upcoming year, Mr. Ill stated, "While we expect to see continuing modest growth in the aftermarket, we don't expect any significant recovery in deliveries of new commercial aircraft until late in 2005 or 2006. As a result of these conditions, we project sales to be in the range of $675 to $700 million and earnings per share for the year to be $1.70 to $1.80, with quarterly results sequentially improving during the year."

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.

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

Statements which are not historical facts, including statements regarding projected growth in aftermarket revenues, expected sales and earnings per share estimates, 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 Annual Report on Form 10-K for the year ended March 31, 2003.




                      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                         2004      2003       2004      2003
                             --------- ---------  --------- ---------


Net Sales                    $175,755  $151,690   $608,315  $565,381

Operating Income                2,967    17,579     36,613    70,623

Interest Expense and Other      3,269     2,792     12,212    12,365
Income Tax (Benefit)
 Expense                       (1,522)    5,249      4,991    20,682
                             --------- ---------  --------- ---------

Income from Continuing
 Operations                     1,220     9,538     19,410    37,576
Loss from Discontinued
 Operations                       (23)     (828)    (1,188)     (859)
                             --------- ---------  --------- ---------

Net Income                     $1,197    $8,710    $18,222   $36,717
                             ========= =========  ========= =========

Earnings Per Share - Basic:

Income from Continuing
 Operations                     $0.08     $0.60      $1.23     $2.37
Loss from Discontinued
 Operations                    ($0.00)   ($0.05)    ($0.07)   ($0.05)
                             --------- ---------  --------- ---------
Net Income                      $0.08     $0.55      $1.15 *   $2.32
                             ========= =========  ========= =========

Weighted average common
 shares outstanding - Basic    15,858    15,843     15,842    15,833
                             ========= =========  ========= =========

Earnings Per Share - Diluted:

Income from Continuing
 Operations                     $0.08     $0.60      $1.22     $2.36
Loss from Discontinued
 Operations                    ($0.00)   ($0.05)    ($0.07)   ($0.05)
                             --------- ---------  --------- ---------
Net Income                      $0.08     $0.55      $1.14 *   $2.31
                             ========= =========  ========= =========

Weighted average common
 shares outstanding - Diluted  15,955    15,877     15,918    15,924
                             ========= =========  ========= =========

* difference due to rounding

OTHER SELECTED INFORMATION

Continuing Operations:


Depreciation and
 Amortization                  $8,023    $6,349    $28,237   $24,387
                             ========= =========  ========= =========

Capital Expenditures           $5,272    $9,417    $25,446   $31,567
                             ========= =========  ========= =========

                      FINANCIAL DATA (UNAUDITED)

                 TRIUMPH GROUP, INC. AND SUBSIDIARIES
                            (in thousands)

BALANCE SHEET
                                                  March 31, March 31,
                                                    2004      2003
                                                  --------- ---------
                              Assets
     Cash                                           $6,766    $8,583
     Accounts Receivable,
      net                                          122,273   106,841
     Inventory                                     205,472   196,343
     Assets held for sale                           28,296    27,883
     Income Tax Refund
      Receivable                                     8,829         -
     Prepaid Expenses and
      Other                                          3,801     3,549
                                                  --------- ---------
         Current Assets                            375,437   343,199

     Property and
      Equipment, net                               248,626   215,832
     Goodwill                                      267,621   260,467
     Intangible Assets, net                         27,514    31,055
     Other, net                                     15,371    13,615
                                                  --------- ---------

     Total Assets                                 $934,569  $864,168
                                                  ========= =========

                  Liabilities & Stockholders' Equity

     Accounts Payable                              $55,259   $47,466
     Accrued Expenses and
      Other                                         48,492    44,808
     Liabilities related to
      assets held for sale                           8,809     6,361
     Income Taxes Payable                            1,533     3,231
     Deferred Income Taxes                           1,444     1,585
     Current Portion of
      Long-Term Debt                                 4,884     7,831
                                                  --------- ---------
         Current
          Liabilities                              120,421   111,282

     Long-Term Debt, less
      current portion                              220,963   191,692
     Deferred Income Taxes
      and Other                                     78,069    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                                    259,322   258,675
     Treasury Stock, at cost, 167,260
      and 183,260 shares                            (4,152)   (4,549)
     Accumulated other
      comprehensive income                           1,408       543
     Retained earnings                             258,522   240,300
                                                  --------- ---------
         Total Stockholders' Equity                515,116   494,985
                                                  --------- ---------
     Total Liabilities and
      Stockholders' Equity                        $934,569  $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 March 31, 2004 was $11.0 million
with a margin of 6.3%. EBITDA for the three months ended March 31,
2003 was $23.9 million with a margin of 15.8%. EBITDA for the twelve
months ended March 31, 2004 was $64.9 million with a margin of 10.7%.
EBITDA for the twelve months ended March 31, 2003 was $95.0 million
with a margin of 16.8%.

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   Twelve Months Ended
                             March 31,            March 31,
                             -------------------  -------------------

                                 2004      2003       2004      2003
                             --------- ---------  --------- ---------

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


   Income from Continuing
    Operations                  1,220     9,538     19,410    37,576

      Add-back:
       Income Tax (Benefit)
         Expense               (1,522)    5,249      4,991    20,682
       Interest Expense and
         Other                  3,269     2,792     12,212    12,365
       Depreciation and
         Amortization           8,023     6,349     28,237    24,387
                             --------- ---------  --------- ---------

       Earnings before
        Interest, Taxes,
        Depreciation and
        Amortization
        ("EBITDA")             10,990    23,928     64,850    95,010
                             --------- ---------  --------- ---------


         Net Sales            175,755   151,690    608,315   565,381
                             --------- ---------  --------- ---------

         EBITDA Margin            6.3%     15.8%      10.7%     16.8%
                             ========= =========  ========= =========

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

    SOURCE: Triumph Group, Inc.