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Triumph Group Reports Strong Third Quarter Fiscal 2013 Earnings; Raises Fiscal Year 2013 Guidance

Stocks in this article: TGI

More information about Triumph can be found on the company’s website 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 statements of expectations of or assumptions about future aerospace market conditions, aircraft production rates, financial and operational performance, revenue and earnings growth, and earnings results for fiscal 2013. 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 fiscal year ended March 31, 2012.

 
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 2012 2011 2012 2011
 
 
Net sales $ 890,565 $ 825,962 $ 2,716,434 $ 2,461,553
 

Operating income, before integration costs and early retirement incentives

136,639 119,735 425,611 335,175
Integration costs 250 2,095 2,227 3,699
Early retirement incentives expense   2,030   -   5,137   -  
Operating income 134,359 117,640 418,247 331,476
 
Interest expense and other 16,767 14,543 50,667 58,676
Income tax expense   42,369   37,194   135,834   97,429  
 
Income from continuing operations 75,223 65,903 231,746 175,371
Loss from discontinued operations, net of tax   -   -   -   (765 )
 
Net income $ 75,223 $ 65,903 $ 231,746 $ 174,606  
 
Earnings per share - basic:
 
Income from continuing operations $ 1.51 $ 1.35 $ 4.67 $ 3.60
Loss from discontinued operations   -   -   -   (0.02 )
Net income $ 1.51 $ 1.35 $ 4.67 $ 3.59   *
 
Weighted average common shares outstanding - basic   49,750   48,912   49,608   48,692  
 
Earnings per share - diluted:
 
Income from continuing operations $ 1.43 $ 1.27 $ 4.43 $ 3.39
Loss from discontinued operations   -   -   -   (0.01 )
Net income $ 1.43 $ 1.27 $ 4.43 $ 3.38  
 
Weighted average common shares outstanding - diluted   52,464   51,968   52,343   51,689  
 
Dividends declared and paid per common share $ 0.04 $ 0.04 $ 0.12 $ 0.10  

 

* Difference due to rounding.

 

 

 

       
FINANCIAL DATA (UNAUDITED)
 
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands, except per share data)
 
BALANCE SHEET Unaudited Audited
December 31, March 31,
2012 2012
Assets
Cash and cash equivalents $ 33,452 $ 29,662
Accounts receivable, net 322,144 440,608
Inventory, net of unliquidated progress payments of $141,283 and $164,450 937,796 817,956
Rotable assets 35,392 34,554
Deferred income taxes 53,226 72,377
Prepaid and other current assets   18,145     23,344  
Current assets 1,400,155 1,418,501
 
Property and equipment, net 770,110 733,380
Goodwill 1,593,120 1,546,138
Intangible assets, net 883,127 829,676
Other, net   58,208     26,944  
 
Total assets $ 4,704,720   $ 4,554,639  
 
Liabilities & Stockholders' Equity
 
Current portion of long-term debt $ 133,951 $ 142,237
Accounts payable 246,092 266,124
Accrued expenses   236,124     311,620  
Current liabilities 616,167 719,981
 
Long-term debt, less current portion 1,040,954 1,016,625
Accrued pension and post-retirement benefits, noncurrent 571,702 700,125
Deferred income taxes, noncurrent 327,126 188,252
Other noncurrent liabilities 120,685 136,287
 
Stockholders' Equity:

Common stock, $.001 par value, 100,000,000 shares authorized, 50,109,935 and 49,590,273 shares issued

50 50
Capital in excess of par value 842,485 833,935
Treasury stock, at cost, 0 and 58,533 shares 0 (1,716 )
Accumulated other comprehensive loss (8,560 ) (9,306 )
Retained earnings   1,194,111     970,406  
Total stockholders' equity   2,028,086     1,793,369  
 
Total liabilities and stockholders' equity $ 4,704,720   $ 4,554,639  
 

 

               
FINANCIAL DATA (UNAUDITED)
 
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
 
 
 
SEGMENT DATA Three Months Ended Nine Months Ended
December 31, December 31,
 
2012 2011 2012 2011
 
Net sales:
Aerostructures $ 676,791 $ 626,045 $ 2,060,622 $ 1,857,328
Aerospace Systems 141,059 133,291 431,710 400,076
Aftermarket Services 74,587 68,640 230,625 209,555
Elimination of inter-segment sales   (1,872 )   (2,014 )   (6,523 )   (5,406 )
$ 890,565   $ 825,962   $ 2,716,434   $ 2,461,553  
 
Operating income (loss):
Aerostructures $ 117,450 $ 103,947 $ 358,972 $ 284,410
Aerospace Systems 20,562 18,623 69,739 63,684
Aftermarket Services 9,856 6,917 32,430 20,893
Corporate   (13,509 )

2

  (11,847 )   (42,894 )

2

  (37,511 )
$ 134,359  

1

$ 117,640  

3

$ 418,247  

1

$ 331,476  

3

 
Depreciation and amortization:
Aerostructures $ 24,180 $ 22,476 $ 72,133 $ 66,258
Aerospace Systems 4,707 4,296 13,670 12,963
Aftermarket Services 2,283 2,431 6,897 7,202
Corporate   1,162     928     3,445     2,641  
$ 32,332   $ 30,131   $ 96,145   $ 89,064  
 
Amortization of acquired contract liabilities:
Aerostructures $ (6,219 ) $ (4,994 ) $ (19,774 ) $ (18,504 )
 
Capital expenditures:
Aerostructures $ 19,740 $ 16,794 $ 66,165 $ 38,519
Aerospace Systems 4,461 4,009 11,060 10,523
Aftermarket Services 3,336 2,500 10,811 5,833
Corporate   926     1,459     1,620     4,036  
$ 28,463   $ 24,762   $ 89,656   $ 58,911  

 

 

1

Includes $250 and $2,227 of integration expenses associated with the integration of Vought for the three and nine months ended December 31, 2012, respectively, primarily in the Aerostructures segment.
 

2

Includes $2,030 and $5,137 of early retirement incentives due to defined benefit plan amendments for the three and nine months ended December 31, 2012, respectively.
 

3

Includes $2,095 and $3,699 of integration expenses associated with the acquisition of Vought for the three and nine months ended December 31, 2011, respectively.
 

FINANCIAL DATA (UNAUDITED)

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

Non-GAAP Financial Measure Disclosures

We prepare and publicly release quarterly unaudited financial statements prepared in accordance with GAAP. In accordance with Securities and Exchange Commission (the “SEC”) guidance on Compliance and Disclosure Interpretations, we also disclose and discuss certain non-GAAP financial measures in our public releases. Currently, the non-GAAP financial measure that we disclose is EBITDA, which is our income from continuing operations before interest, income taxes, amortization of acquired contract liabilities, early retirement incentives, depreciation and amortization. We disclose EBITDA on a consolidated and an operating segment basis in our earnings releases, investor conference calls and filings with the SEC. The non-GAAP financial measures that we use may not be comparable to similarly titled measures reported by other companies. Also, in the future, we may disclose different non-GAAP financial measures in order to help our investors more meaningfully evaluate and compare our future results of operations to our previously reported results of operations.

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