CLEVELAND, Nov. 14, 2016
/PRNewswire/ -- TransDigm Group Incorporated (NYSE: TDG), a leading
global designer, producer and supplier of highly engineered
aircraft components, today reported results for the fourth quarter
and fiscal year ended September 30, 2016.
Highlights for the fourth quarter and fiscal year include:
- Fourth quarter net sales of $875.2
million, up 8.1% from $809.8
million;
- Fourth quarter net income of $154.7
million, up 9.2% from $141.7
million;
- Fourth quarter earnings per share of $2.77, up 10.8% from $2.50;
- Fourth quarter EBITDA As Defined of $423.3 million, up 16.6% from $363.0 million;
- Fourth quarter adjusted earnings per share of $3.29, up 16.3% from $2.83;
- Fiscal 2016 net sales of $3,171.4
million, up 17.2% from $2,707.1
million;
- Fiscal 2016 net income of $586.4
million, up 31.1% from $447.2
million;
- Fiscal 2016 earnings per share of $10.39, up 32.5% from $7.84;
- Fiscal 2016 EBITDA As Defined of $1,495.2 million, up 21.2% from $1,233.7 million; and
- Fiscal 2016 adjusted earnings per share of $11.49, up 27.5% from $9.01.
Net sales for the quarter rose 8.1%, or $65.4 million, to $875.2
million from $809.8 million in
the comparable quarter a year ago. The favorable contribution from
the acquisitions of PneuDraulics, Breeze-Eastern and Data Device
Corporation contributed $88.6 million
of the increase, partially offset by a slight decrease in organic
sales.
Net income for the quarter rose 9.2% to $154.7 million, or $2.77 per share, compared to $141.7 million, or $2.50 per share, in the comparable quarter a year
ago. The increase in net income primarily reflects the growth in
net sales described above; improvements to our operating margin
resulting from the strength of our proprietary products, continued
productivity efforts and favorable product mix; and lower effective
tax rate. This increase was partially offset by higher interest
expense.
Adjusted net income for the quarter rose 14.6% to $183.6 million, or $3.29 per share, from $160.2 million, or $2.83 per share, in the comparable quarter a year
ago.
EBITDA for the quarter increased 13.8% to $385.4 million from $338.7
million for the comparable quarter a year ago. EBITDA
As Defined for the period increased 16.6% to $423.3 million compared with $363.0 million in the comparable quarter a year
ago. EBITDA As Defined as a percentage of net sales for the
quarter was 48.4%.
As previously reported, on September 23,
2016, TransDigm completed the acquisition of Young &
Franklin Inc. and its subsidiaries, including Tactair Fluid
Controls Inc., for a total purchase price of $260 million in cash. Young & Franklin
manufactures proprietary, highly engineered valves and
actuators.
Subsequent to the quarter, TransDigm successfully completed an
offering of $1,150 million of term
loans maturing in 2023. The proceeds were used to partially fund a
special dividend of $24.00 per share
paid in November 2016 and to
repurchase $500 million of existing
7.50% Senior Subordinated Notes due 2021 which will be completed by
the end of November 2016.
Full Fiscal Year Results
Fiscal 2016 net sales rose 17.2% to $3,171.4 million from $2,707.1 million in the comparable period last
year. The favorable contribution from the acquisitions
completed in fiscal 2015 and fiscal 2016 was $409.3 million of the increase in net sales.
Fiscal 2016 net income increased 31.1% to $586.4 million, or $10.39 per share, compared with $447.2 million, or $7.84 per share, in the comparable period last
year. The increase in net income primarily reflects the
increase in net sales described above; improvements to our
operating margin resulting from the strength of our proprietary
products, continued productivity efforts and favorable product mix;
and lower effective tax rate. This increase was partially offset by
higher interest expense.
Fiscal 2016 adjusted net income rose 26.6% to $645.3 million, or $11.49 per share, from $509.8 million, or $9.01 per share, in the comparable period a year
ago.
Fiscal 2016 EBITDA increased 19.5% to $1,373.6 million from $1,149.3 million for the comparable period a year
ago. EBITDA As Defined for the period increased 21.2% to
$1,495.2 million compared with
$1,233.7 million in the comparable
period a year ago. EBITDA As Defined as a percentage of net
sales for the period was 47.1%.
"We are pleased with our operating results for both the fiscal
fourth quarter and full fiscal year," stated W. Nicholas Howley, TransDigm Group's Chief
Executive Officer, President and Chairman. "Fiscal 2016 was
another good year for TransDigm. Our revenues were up 17%
compared to the prior year and our EBITDA as Defined was up
21%. Overall, excluding acquisitions, full year revenues were
very close to our original expectations and trends in the
commercial aftermarket continue to be positive. Our reported EBITDA
as Defined margin was strong at 47.1% and the margins in our core
businesses once again improved year over year reflecting the power
of our consistent value generation strategy."
Mr. Howley continued, "During fiscal 2016 we once again saw a
number of attractive M&A opportunities that resulted in the
acquisition of three good proprietary aerospace businesses for
approximately $1.4 billion in
purchase price. In addition, the combination of our usual high free
cash flow and attractive credit markets allowed us to return about
$1.6 billion more to our shareholders
in the form of approximately $200
million of share repurchases plus a $1.4 billion special dividend paid in early
fiscal 2017. These activities are another good example of our
continued focus on capital allocation and intrinsic value creation
for our shareholders."
Please see the attached tables for a reconciliation of net
income to EBITDA, EBITDA As Defined, and adjusted net income; a
reconciliation of net cash provided by operating activities to
EBITDA and EBITDA As Defined, and a reconciliation of earnings per
share to adjusted earnings per share for the periods discussed in
this press release.
Fiscal 2017 Outlook
Assuming no additional acquisitions and based upon current
market conditions, TransDigm expects fiscal 2017 financial
performance to be as follows:
- Net sales are anticipated to be in the range of $3,515 million to $3,565 million compared with
$3,171 million in fiscal 2016;
- Net income is anticipated to be in the range of $577 million to $593 million compared with
$586 million in fiscal 2016;
- Earnings per share are expected to be in the range of
$8.51 to $8.79 per share based upon
weighted average shares outstanding of 56.5 million compared with
$10.39 per share in fiscal 2016;
- EBITDA As Defined is anticipated to be in the range of
$1,671 million to $1,695 million
compared with $1,495 million in
fiscal 2016; and
- Adjusted earnings per share are expected to be in the range of
$11.84 to $12.12 per share compared
with $11.49 per share in fiscal
2016.
Mr. Howley stated, "Our fiscal 2017 guidance assumes that our
commercial aftermarket revenues will be up in the mid to high
single-digit percentage range, commercial OEM revenues up in the
low to mid-single-digit percentage range and defense revenues flat
to slightly up. We remain cautious on the duration of the
commercial transport OEM cycle but still expect to continue to
generate substantial intrinsic value for our shareholders."
Earnings Conference Call
TransDigm Group will host a conference call for investors and
security analysts on November 14, 2016, beginning at
11:00 a.m., Eastern Time. To join the
call, dial (888) 558-9538 and enter the pass code 11706470.
International callers should dial (760) 666-3183 and use the same
pass code. A live audio webcast can be accessed online at
http://www.transdigm.com. A slide presentation will also be
available for reference during the conference call; go to the
investor relations page of our website and click on
"Presentations."
The call will be archived on the website and available for
replay at approximately 2:00 p.m., Eastern
Time. A telephone replay will be available for two weeks by
dialing (855) 859-2056 and entering the pass code 11706470.
International callers should dial (404) 537-3406 and use the same
pass code.
About TransDigm Group
TransDigm Group, through its wholly-owned subsidiaries, is a
leading global designer, producer and supplier of highly engineered
aircraft components for use on nearly all commercial and military
aircraft in service today. Major product offerings, substantially
all of which are ultimately provided to end-users in the aerospace
industry, include mechanical/electro-mechanical actuators and
controls, ignition systems and engine technology, specialized pumps
and valves, power conditioning devices, specialized AC/DC electric
motors and generators, NiCad batteries and chargers, engineered
latching and locking devices, rods and locking devices, engineered
connectors and elastomers, databus and power controls, cockpit
security components and systems, specialized cockpit displays,
aircraft audio systems, specialized lavatory components, seatbelts
and safety restraints, engineered interior surfaces and related
components, lighting and control technology, military personnel
parachutes, high performance hoists, winches and lifting devices,
and cargo loading, handling and delivery systems.
Non-GAAP Supplemental Information
EBITDA, EBITDA As Defined, EBITDA As Defined Margin, adjusted
net income and adjusted earnings per share are non-GAAP financial
measures presented in this press release as supplemental
disclosures to net income and reported results. TransDigm Group
defines EBITDA as earnings before interest, taxes, depreciation and
amortization and defines EBITDA As Defined as EBITDA plus certain
non-operating items, refinancing costs, acquisition-related costs,
transaction-related costs and non-cash charges incurred in
connection with certain employee benefit plans. TransDigm Group
defines adjusted net income as net income plus purchase accounting
backlog amortization expense, effects from the sale on businesses,
refinancing costs, acquisition-related costs, transaction-related
costs and non-cash charges incurred in connection with certain
employee benefit plans. EBITDA As Defined Margin represents EBITDA
As Defined as a percentage of net sales. TransDigm Group defines
adjusted diluted earnings per share as adjusted net income divided
by the total shares for basic and diluted earnings per share. For
more information regarding the computation of EBITDA, EBITDA As
Defined and adjusted net income and adjusted earnings per share,
please see the attached financial tables.
TransDigm Group presents these non-GAAP financial measures
because it believes that they are useful indicators of its
operating performance. TransDigm Group believes that EBITDA is
useful to investors because it is frequently used by securities
analysts, investors and other interested parties to measure
operating performance among companies with different capital
structures, effective tax rates and tax attributes, capitalized
asset values and employee compensation structures, all of which can
vary substantially from company to company. In addition, analysts,
rating agencies and others use EBITDA to evaluate a company's
ability to incur and service debt. EBITDA As Defined is used to
measure TransDigm Inc.'s compliance with the financial covenant
contained in its credit facility. TransDigm Group's management also
uses EBITDA As Defined to review and assess its operating
performance, to prepare its annual budget and financial projections
and to review and evaluate its management team in connection with
employee incentive programs. Moreover, TransDigm Group's management
uses EBITDA As Defined to evaluate acquisitions and as a liquidity
measure. In addition, TransDigm Group's management uses adjusted
net income as a measure of comparable operating performance between
time periods and among companies as it is reflective of changes in
pricing decisions, cost controls and other factors that affect
operating performance.
None of EBITDA, EBITDA As Defined, EBITDA As Defined Margin,
adjusted net income or adjusted earnings per share is a measurement
of financial performance under GAAP and such financial measures
should not be considered as an alternative to net income, operating
income, earnings per share, cash flows from operating activities or
other measures of performance determined in accordance with GAAP.
In addition, TransDigm Group's calculation of these non-GAAP
financial measures may not be comparable to the calculation of
similarly titled measures reported by other companies.
Although we use EBITDA and EBITDA As Defined as measures to
assess the performance of our business and for the other purposes
set forth above, the use of these non-GAAP financial measures as
analytical tools has limitations, and you should not consider any
of them in isolation, or as a substitute for analysis of our
results of operations as reported in accordance with GAAP. Some of
these limitations are:
- neither EBITDA nor EBITDA As Defined reflects the significant
interest expense, or the cash requirements necessary to service
interest payments, on our indebtedness;
- although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often have to be
replaced in the future, and neither EBITDA nor EBITDA As Defined
reflects any cash requirements for such replacements;
- the omission of the substantial amortization expense associated
with our intangible assets further limits the usefulness of EBITDA
and EBITDA As Defined;
- neither EBITDA nor EBITDA As Defined includes the payment of
taxes, which is a necessary element of our operations; and
- EBITDA As Defined excludes the cash expense we have incurred to
integrate acquired businesses into our operations, which is a
necessary element of certain of our acquisitions.
Forward-Looking Statements
Statements in this press release that are not historical facts,
including statements under the heading "Fiscal 2017 Outlook," are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995.Words such as "believe,"
"may," "will," "should," "expect," "intend," "plan," "predict,"
"anticipate," "estimate," or "continue" and other words and terms
of similar meaning may identify forward-looking statements.
All forward-looking statements involve risks and uncertainties
which could affect TransDigm Group's actual results and could cause
its actual results to differ materially from those expressed or
implied in any forward-looking statements made by, or on behalf of,
TransDigm Group. These risks and uncertainties include but are not
limited to: the sensitivity of our business to the number of flight
hours that our customers' planes spend aloft and our customers'
profitability, both of which are affected by general economic
conditions; future geopolitical or worldwide events; cyber-security
threats and natural disasters; our reliance on certain customers;
the U.S. defense budget and risks associated with being a
government supplier; failure to maintain government or industry
approvals; failure to complete or successfully integrate
acquisitions; our substantial indebtedness; potential environmental
liabilities; increases in raw material costs, taxes and labor costs
that cannot be recovered in product pricing; risks and costs
associated with our international sales and operations; and other
risk factors. Further information regarding the important factors
that could cause actual results to differ materially from projected
results can be found in TransDigm Group's Annual Report on Form
10-K and other reports that TransDigm Group or its subsidiaries
have filed with the Securities and Exchange Commission. Except as
required by law, TransDigm Group undertakes no obligation to revise
or update the forward-looking statements contained in this press
release.
Contact:
|
|
Liza Sabol
|
|
|
Investor
Relations
|
|
|
216-706-2945
|
|
|
ir@transdigm.com
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
FOR THE THIRTEEN
WEEK PERIODS AND FISCAL YEARS ENDED
|
|
Table
1
|
SEPTEMBER 30, 2016
AND SEPTEMBER 30, 2015
|
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Thirteen Week
Periods Ended
|
|
Fiscal Years
Ended
|
|
|
September 30,
2016
|
|
September 30,
2015
|
|
September 30,
2016
|
|
September
30,
2015
|
NET SALES
|
|
$
|
875,223
|
|
|
$
|
809,792
|
|
|
$
|
3,171,411
|
|
|
$
|
2,707,115
|
|
COST OF
SALES
|
|
390,904
|
|
|
382,192
|
|
|
1,443,348
|
|
|
1,257,270
|
|
GROSS
PROFIT
|
|
484,319
|
|
|
427,600
|
|
|
1,728,063
|
|
|
1,449,845
|
|
SELLING AND
ADMINISTRATIVE EXPENSES
|
|
111,347
|
|
|
98,270
|
|
|
382,858
|
|
|
321,624
|
|
AMORTIZATION OF
INTANGIBLE ASSETS
|
|
23,971
|
|
|
16,253
|
|
|
77,445
|
|
|
54,219
|
|
INCOME FROM
OPERATIONS
|
|
349,001
|
|
|
313,077
|
|
|
1,267,760
|
|
|
1,074,002
|
|
INTEREST EXPENSE -
NET
|
|
139,767
|
|
|
113,162
|
|
|
483,850
|
|
|
418,785
|
|
REFINANCING
COSTS
|
|
140
|
|
|
234
|
|
|
15,794
|
|
|
18,393
|
|
INCOME BEFORE INCOME
TAXES
|
|
209,094
|
|
|
199,681
|
|
|
768,116
|
|
|
636,824
|
|
INCOME TAX
PROVISION
|
|
54,426
|
|
|
58,008
|
|
|
181,702
|
|
|
189,612
|
|
NET INCOME
|
|
$
|
154,668
|
|
|
$
|
141,673
|
|
|
$
|
586,414
|
|
|
$
|
447,212
|
|
NET INCOME APPLICABLE
TO COMMON STOCK
|
|
$
|
154,668
|
|
|
$
|
141,673
|
|
|
$
|
583,414
|
|
|
$
|
443,847
|
|
Net earnings per
share:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
2.77
|
|
|
$
|
2.50
|
|
|
$
|
10.39
|
|
|
$
|
7.84
|
|
Weighted-average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
55,832
|
|
|
56,610
|
|
|
56,157
|
|
|
56,606
|
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
|
|
|
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF EBITDA,
|
|
|
EBITDA AS DEFINED
TO NET INCOME
|
|
|
|
|
FOR THE THIRTEEN
WEEK PERIODS AND FISCAL YEARS ENDED
|
|
Table
2
|
SEPTEMBER 30, 2016
AND SEPTEMBER 30, 2015
|
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Thirteen Week
Periods Ended
|
|
Fiscal Years
Ended
|
|
|
September 30,
2016
|
|
September
30,
2015
|
|
September 30,
2016
|
|
September 30,
2015
|
Net income
|
|
$
|
154,668
|
|
|
$
|
141,673
|
|
|
$
|
586,414
|
|
|
$
|
447,212
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
36,569
|
|
|
25,896
|
|
|
121,670
|
|
|
93,663
|
|
Interest expense -
net
|
|
139,767
|
|
|
113,162
|
|
|
483,850
|
|
|
418,785
|
|
Income tax provision
(1)
|
|
54,426
|
|
|
58,008
|
|
|
181,702
|
|
|
189,612
|
|
EBITDA
|
|
385,430
|
|
|
338,739
|
|
|
1,373,636
|
|
|
1,149,272
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Acquisition-related
expenses and adjustments (2)
|
|
23,003
|
|
|
17,865
|
|
|
57,699
|
|
|
36,205
|
|
Non-cash stock
compensation expense (3)
|
|
14,487
|
|
|
8,065
|
|
|
48,306
|
|
|
31,500
|
|
Refinancing costs
(4)
|
|
140
|
|
|
234
|
|
|
15,794
|
|
|
18,393
|
|
Other, net
(5)
|
|
241
|
|
|
(1,901)
|
|
|
(239)
|
|
|
(1,716)
|
|
Gross Adjustments to
EBITDA
|
|
37,871
|
|
|
24,263
|
|
|
121,560
|
|
|
84,382
|
|
EBITDA As
Defined
|
|
$
|
423,301
|
|
|
$
|
363,002
|
|
|
$
|
1,495,196
|
|
|
$
|
1,233,654
|
|
EBITDA As Defined,
Margin (6)
|
|
48.4
|
%
|
|
44.8
|
%
|
|
47.1
|
%
|
|
45.6
|
%
|
(1) For
the fiscal year ended September 30, 2016, the income tax provision
was impacted by the adoption of Accounting Standards Update ("ASU")
2016-09, "Improvements to Employee Share-Based Payment
Accounting."
|
|
(2)
Represents accounting adjustments to inventory associated with
acquisitions of businesses and product lines that were charged to
cost of sales when the inventory was sold: costs incurred to
integrate acquired businesses and product lines into TD Group's
operations, facility relocation costs and other acquisition-related
costs; transaction-related costs comprising deal fees; legal,
financial and tax due diligence expenses; and valuation costs that
are required to be expensed as incurred.
|
|
(3)
Represents the compensation expense recognized by TD Group under
our stock incentive plans.
|
|
(4) For
the periods ended September 30, 2016, represents debt issuance
costs expensed in conjunction with the refinancing of our tranche C
term loans in June 2016. For the periods ended September 30, 2015,
represents debt issuance costs expensed in conjunction with the
refinancing of our tranche B term loans in May 2015.
|
|
(5)
Primarily represents foreign currency transaction gain or loss on
intercompany loans to be settled and gain or loss on sale of fixed
assets.
|
|
(6) The
EBITDA As Defined margin represents the amount of EBITDA As Defined
as a percentage of sales.
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
|
|
|
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF
|
|
|
|
|
REPORTED EARNINGS
PER SHARE TO
|
|
|
|
|
ADJUSTED EARNINGS
PER SHARE
|
|
|
|
|
FOR THE THIRTEEN
WEEK PERIODS AND FISCAL YEARS ENDED
|
|
Table
3
|
SEPTEMBER 30, 2016
AND SEPTEMBER 30, 2015
|
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Thirteen Week
Periods Ended
|
|
Fiscal Years
Ended
|
|
|
September 30,
2016
|
|
September 30,
2015
|
|
September 30,
2016
|
|
September 30,
2015
|
Reported Earnings
Per Share
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
154,668
|
|
|
$
|
141,673
|
|
|
$
|
586,414
|
|
|
$
|
447,212
|
|
Less: dividends on
participating securities
|
|
—
|
|
|
—
|
|
|
(3,000)
|
|
|
(3,365)
|
|
Net income applicable
to common stock - basic and diluted
|
|
$
|
154,668
|
|
|
$
|
141,673
|
|
|
$
|
583,414
|
|
|
$
|
443,847
|
|
Weighted-average
shares outstanding under the two-class method
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding
|
|
53,289
|
|
|
53,609
|
|
|
53,326
|
|
|
53,112
|
|
Vested options deemed
participating securities
|
|
2,543
|
|
|
3,001
|
|
|
2,831
|
|
|
3,494
|
|
Total shares for
basic and diluted earnings per share
|
|
55,832
|
|
|
56,610
|
|
|
56,157
|
|
|
56,606
|
|
Basic and diluted
earnings per share
|
|
$
|
2.77
|
|
|
$
|
2.50
|
|
|
$
|
10.39
|
|
|
$
|
7.84
|
|
Adjusted Earnings
Per Share
|
|
|
|
|
Net income
|
|
$
|
154,668
|
|
|
$
|
141,673
|
|
|
$
|
586,414
|
|
|
$
|
447,212
|
|
Gross adjustments to
EBITDA
|
|
37,871
|
|
|
24,263
|
|
|
121,560
|
|
|
84,382
|
|
Purchase accounting
backlog amortization
|
|
8,082
|
|
|
1,903
|
|
|
19,467
|
|
|
4,704
|
|
Tax
adjustment
|
|
(16,987)
|
|
|
(7,583)
|
|
|
(82,131)
|
|
|
(26,525)
|
|
Adjusted net
income
|
|
$
|
183,634
|
|
|
$
|
160,256
|
|
|
$
|
645,310
|
|
|
$
|
509,773
|
|
Adjusted diluted
earnings per share under the two-class method
|
|
$
|
3.29
|
|
|
$
|
2.83
|
|
|
$
|
11.49
|
|
|
$
|
9.01
|
|
Diluted Earnings
Per Share to Adjusted Earnings Per Share
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
2.77
|
|
|
$
|
2.50
|
|
|
$
|
10.39
|
|
|
$
|
7.84
|
|
Adjustments to
diluted earnings per share:
|
|
|
|
|
|
|
|
|
Inclusion of the dividend equivalent payments
|
|
—
|
|
|
—
|
|
|
0.05
|
|
|
0.06
|
|
Non-cash
stock compensation expense
|
|
0.19
|
|
|
0.10
|
|
|
0.61
|
|
|
0.39
|
|
Acquisition-related expenses
|
|
0.40
|
|
|
0.23
|
|
|
0.97
|
|
|
0.51
|
|
Refinancing costs
|
|
—
|
|
|
—
|
|
|
0.20
|
|
|
0.23
|
|
Reduction in income
tax provision net income per common share related to the adoption
of new accounting standard
|
|
(0.07)
|
|
|
—
|
|
|
(0.73)
|
|
|
—
|
|
Other,
net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.02)
|
|
Adjusted earnings per
share
|
|
$
|
3.29
|
|
|
$
|
2.83
|
|
|
$
|
11.49
|
|
|
$
|
9.01
|
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
|
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF NET CASH
|
|
Table
4
|
PROVIDED BY
OPERATING ACTIVITIES TO EBITDA,
|
|
EBITDA AS
DEFINED
|
|
FOR THE FISCAL
YEARS ENDED
|
|
SEPTEMBER 30, 2016
AND SEPTEMBER 30, 2015
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Fiscal Years
Ended
|
|
|
September 30,
2016
|
|
September 30,
2015
|
Net cash provided by
operating activities
|
|
$
|
668,930
|
|
|
$
|
520,938
|
|
Adjustments:
|
|
|
|
|
Changes in assets and
liabilities, net of effects from acquisitions of
businesses
|
|
110,905
|
|
|
24,322
|
|
Interest expense -
net (1)
|
|
467,639
|
|
|
402,988
|
|
Income tax provision
- current (2)
|
|
175,894
|
|
|
188,952
|
|
Non-cash equity
compensation (3)
|
|
(48,306)
|
|
|
(31,500)
|
|
Excess tax benefit
from exercise of stock options
|
|
—
|
|
|
61,965
|
|
Refinancing costs
(5)
|
|
(1,426)
|
|
|
(18,393)
|
|
EBITDA
|
|
1,373,636
|
|
|
1,149,272
|
|
Adjustments:
|
|
|
|
|
Acquisition-related
expenses (4)
|
|
57,699
|
|
|
36,205
|
|
Non-cash stock
compensation expense (3)
|
|
48,306
|
|
|
31,500
|
|
Refinancing costs
(5)
|
|
15,794
|
|
|
18,393
|
|
Other, net
(6)
|
|
(239)
|
|
|
(1,716)
|
|
EBITDA As
Defined
|
|
$
|
1,495,196
|
|
|
$
|
1,233,654
|
|
(1)
Represents interest expense excluding the amortization of debt
issue costs and premium and discount on debt.
|
|
(2) For
the fiscal year ended September 30, 2016, the income tax provision
was impacted by the adoption of Accounting Standards Update ("ASU")
2016-09, "Improvements to Employee Share-Based Payment
Accounting."
|
|
(3)
Represents the compensation expense recognized by TD Group under
our stock incentive plans.
|
|
(4)
Represents accounting adjustments to inventory associated with
acquisitions of businesses and product lines that were charged to
cost of sales when the inventory was sold; costs incurred to
integrate acquired businesses and product lines into TD Group's
operations, facility relocation costs and other acquisition-related
costs; transaction-related costs comprising deal fees; legal,
financial and tax due diligence expenses and valuation costs that
are required to be expensed as incurred.
|
|
(5) For
the period ended September 30, 2016, represents debt issuance costs
expensed in conjunction with the refinancing of our tranche C term
loans in June 2016. For the period ended September 30, 2015,
represents debt issuance costs expensed in conjunction with the
refinancing of our tranche B term loans in May 2015.
|
|
(6)
Primarily represents foreign currency transaction gain or loss on
intercompany loans to be settled and gain or loss on sale of fixed
assets.
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
|
SUPPLEMENTAL
INFORMATION - BALANCE SHEET DATA
|
|
Table
5
|
(Amounts in
thousands)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
September 30,
2016
|
|
September
30,
2015
|
Cash and cash
equivalents
|
|
1,586,994
|
|
|
714,033
|
|
Trade accounts
receivable - net
|
|
576,339
|
|
|
444,072
|
|
Inventories -
net
|
|
724,011
|
|
|
591,401
|
|
Current portion of
long-term debt, net of debt issuance costs and OID
|
|
52,645
|
|
|
43,427
|
|
Short-term
borrowings-trade receivable securitization facility, net of debt
issuance costs
|
|
199,771
|
|
|
199,792
|
|
Accounts
payable
|
|
156,075
|
|
|
142,822
|
|
Accrued current
liabilities
|
|
344,112
|
|
|
271,553
|
|
Long-term debt, net
of debt issuance costs and OID
|
|
9,943,191
|
|
|
8,106,383
|
|
Total stockholders'
deficit
|
|
(651,490)
|
|
|
(1,038,306)
|
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF EBITDA,
|
|
|
EBITDA AS DEFINED
TO NET INCOME AND REPORTED EARNINGS
|
|
|
PER SHARE TO
ADJUSTED EARNINGS PER SHARE GUIDANCE MID-POINT
|
Table
6
|
|
FOR THE FISCAL
YEAR ENDED SEPTEMBER 30, 2017
|
|
(Amounts in
millions, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
Year
Ended
|
|
|
|
September
30,
|
|
|
|
2017
(guidance
|
|
|
|
mid-point)
|
|
Net income
|
|
$
|
585
|
|
|
Adjustments:
|
|
|
|
Depreciation and
amortization expense
|
|
147
|
|
|
Interest expense -
net
|
|
580
|
|
|
Income tax
provision
|
|
263
|
|
|
EBITDA
|
|
1,575
|
|
|
Adjustments:
|
|
|
|
Acquisition-related
expenses and adjustments (1) and other, net
(1)
|
|
24
|
|
|
Non-cash stock
compensation expense (1)
|
|
51
|
|
|
Refinancing costs
(1)
|
|
33
|
|
|
Gross Adjustments to
EBITDA
|
|
108
|
|
|
EBITDA As
Defined
|
|
$
|
1,683
|
|
|
EBITDA As Defined,
Margin (1)
|
|
47.5
|
%
|
|
|
|
|
|
Earnings per
share
|
|
$
|
8.65
|
|
|
Adjustments to
earnings per share:
|
|
|
|
Inclusion of the
dividend equivalent payments
|
|
1.71
|
|
|
Non-cash stock
compensation expense
|
|
0.62
|
|
|
Acquisition-related
expenses and adjustments and other, net
|
|
0.60
|
|
|
Refinancing
costs
|
|
0.40
|
|
|
Reduction in income
tax provision net income per common share related to the adoption
of new accounting standard
|
|
—
|
|
|
Adjusted earnings per
share
|
|
$
|
11.98
|
|
|
|
|
|
|
Weighted-average
shares outstanding
|
|
56.5
|
|
|
(1) Refer
to Table 2 above for definitions of Non-GAAP measurement
adjustments.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/transdigm-group-reports-fiscal-2016-fourth-quarter-and-year-end-results-300361915.html
SOURCE TransDigm Group Incorporated