CLEVELAND, Feb. 6, 2018 /PRNewswire/ -- TransDigm Group
Incorporated (NYSE: TDG), a leading global designer, producer and
supplier of highly engineered aircraft components, today reported
results for the first quarter ended December 30, 2017.
Highlights for the first quarter include:
- Net sales of $848.0 million,
up 4.2% from $814.0 million;
- Net income from continuing operations of $312.0 million, up 162.5% from $118.9 million;
- Earnings per share from continuing operations of
$4.60, up 1,022.0% from $0.41;
- EBITDA As Defined of $401.5
million, up 5.3% from $381.2
million;
- Adjusted earnings per share of $5.58, up 121.4% from $2.52, this includes $2.96 per share of favorable impact from tax
reform; and
- Upward revision to fiscal 2018 net income and earnings per
share guidance.
Net sales for the quarter rose 4.2%, or $33.9 million, to $848.0
million from $814.0 million in
the comparable quarter a year ago.
Net income from continuing operations for the quarter rose
162.5% to $312.0 million, or
$4.60 per share, compared to
$118.9 million, or $0.41 per share, in the comparable quarter a year
ago. The current quarter included a provisional net tax benefit of
$147.1 million to record the
estimated impact of the U.S. Tax Cuts and Jobs Act (tax reform),
primarily including a $23.1 million
charge for the U.S. tax on deemed repatriated earnings of non-U.S.
subsidiaries, more than offset by the $170.2 benefit for the remeasurement of our net
U.S. deferred tax balance. The effective tax rate for the 2018
first quarter was a benefit of 63.4% compared to a provision of
14.4% for the 2017 first quarter. The balance of the increase
in net income primarily reflects the increase in net sales
described above, lower refinancing costs, lower acquisition related
costs and improvements to our operating margin resulting from the
strength of our proprietary products and continued productivity
efforts. This growth in net income was partially offset by higher
interest expense.
Earnings per share were reduced in both 2018 and 2017 by
$1.01 per share and $1.70 per share, respectively, representing
dividend equivalent payments made during each quarter.
Net income from discontinued operations in the quarter was
$2.8 million, or $0.05 earnings per share.
Adjusted net income for the quarter rose 117.3% to $310.1 million, or $5.58 per share, from $142.7 million, or $2.52 per share, in the comparable quarter a year
ago. Adjusted earnings per share in the current quarter
included $2.96 of favorable impact
from the enactment of tax reform. Excluding this favorable tax
impact, current earnings per share of $2.62 increased 4.0% over the prior year.
EBITDA for the quarter increased 18.4% to $382.5 million from $323.0
million for the comparable quarter a year ago. EBITDA
As Defined for the period, which excludes $1.7 million from discontinued operations,
increased 5.3% to $401.5 million
compared with $381.2 million in the
comparable quarter a year ago. EBITDA As Defined as a
percentage of net sales for the quarter was 47.4%.
"We are pleased with our first quarter results. Our
focused value driven operating strategy continues to generate real
intrinsic shareholder value. The commercial aftermarket revenues
were particularly encouraging with our commercial transport
aftermarket revenues up low double-digit percent, offset slightly
by lower growth in the business jet and helicopter aftermarket. As
we said in the beginning of the year, we do not intend to change
our guidance as long as we think the ranges are still reasonably
representative," stated W. Nicholas
Howley, TransDigm Group's Chairman and Chief Executive
Officer.
Subsequent to the fiscal quarter end, on January 26, 2018, TransDigm completed the sale of
Schroth in a management buyout to a private equity fund and certain
members of Schroth management for approximately $61 million.
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 2018 Outlook
Mr. Howley continued, "We are leaving our revenue and EBITDA
guidance unchanged at this time until we see how the year is
proceeding. We have significantly increased our net income and
earnings per share guidance to reflect the impact of tax
reform." Assuming no acquisitions and based upon current
market conditions, TransDigm expects fiscal 2018 financial guidance
to be as follows:
- Net sales are anticipated to be in the range of $3,645 million to $3,725
million compared with $3,504
million in fiscal 2017;
- Net income from continuing operations is anticipated to be in
the range of $906 million to
$942 million compared with
$629 million in fiscal 2017;
- Earnings per share from continuing operations are expected to
be in the range of $15.29 to
$15.93 per share based upon weighted
average shares outstanding of 55.6 compared with $8.45 per share in fiscal 2017;
- EBITDA As Defined is anticipated to be in the range of
$1,805 million to $1,855 million compared with $1,711 million in fiscal 2017; and
- Adjusted earnings per share are expected to be in the range of
$16.95 to $17.59 per share compared with $12.38 per share in fiscal 2017.
Please see the attached table 6 for a reconciliation of EBITDA,
EBITDA As Defined to net income and reported earnings per share to
adjusted earnings per share guidance mid-point estimated for the
fiscal year ending September 30,
2018. Additionally, please see the attached table 7 for
comparison of the current fiscal year 2018 guidance versus the
previously issued fiscal year 2018 guidance.
Earnings Conference Call
TransDigm Group will host a conference call for investors and
security analysts on February 6, 2018, beginning at
11:00 a.m., Eastern Time. To join the
call, dial (888) 558-9538 and enter the pass code 8749137.
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 8749137.
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 2018 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 ENDED
|
|
Table
1
|
DECEMBER 30, 2017
AND DECEMBER 31, 2016
|
|
(Amounts in
thousands, except per share amounts)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Thirteen Week
Periods Ended
|
|
|
December
30, 2017
|
|
December
31, 2016
|
NET SALES
|
|
$
|
847,960
|
|
|
$
|
814,018
|
|
COST OF
SALES
|
|
371,310
|
|
|
369,763
|
|
GROSS
PROFIT
|
|
476,650
|
|
|
444,255
|
|
SELLING AND
ADMINISTRATIVE EXPENSES
|
|
106,528
|
|
|
101,715
|
|
AMORTIZATION OF
INTANGIBLE ASSETS
|
|
17,112
|
|
|
25,531
|
|
INCOME FROM
OPERATIONS
|
|
353,010
|
|
|
317,009
|
|
INTEREST EXPENSE -
NET
|
|
160,933
|
|
|
146,004
|
|
REFINANCING
COSTS
|
|
1,113
|
|
|
32,084
|
|
INCOME FROM
CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
190,964
|
|
|
138,921
|
|
INCOME TAX
PROVISION
|
|
(121,047)
|
|
|
20,050
|
|
INCOME FROM
CONTINUING OPERATIONS
|
|
$
|
312,011
|
|
|
$
|
118,871
|
|
INCOME FROM
DISCONTINUED OPERATIONS, NET OF TAX
|
|
2,764
|
|
|
—
|
|
NET INCOME
|
|
$
|
314,775
|
|
|
$
|
118,871
|
|
NET INCOME APPLICABLE
TO COMMON STOCK
|
|
$
|
258,627
|
|
|
$
|
22,900
|
|
Net earnings per
share:
|
|
|
|
|
Net earnings per
share from continuing operations--basic and diluted
|
|
$
|
4.60
|
|
|
$
|
0.41
|
|
Net earnings per
share from discontinued operations--basic and diluted
|
|
0.05
|
|
|
—
|
|
Net earnings per
share
|
|
$
|
4.65
|
|
|
$
|
0.41
|
|
Cash
dividends paid per common share
|
|
$
|
—
|
|
|
$
|
24.00
|
|
Weighted-average
shares outstanding:
|
|
|
|
|
Basic and
diluted
|
|
55,600
|
|
|
56,524
|
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF EBITDA,
|
|
|
EBITDA AS DEFINED
TO NET INCOME
|
|
|
|
FOR THE THIRTEEN
WEEK PERIODS ENDED
|
|
Table
2
|
DECEMBER 30, 2017
AND DECEMBER 31, 2016
|
|
(Amounts in
thousands, except per share amounts)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Thirteen Week
Periods Ended
|
|
|
December
30, 2017
|
|
December
31, 2016
|
Net income
|
|
$
|
314,775
|
|
|
$
|
118,871
|
|
Less: Income from
Discontinued Operations, net of tax (1)
|
|
2,764
|
|
|
—
|
|
Income from
Continuing Operations
|
|
312,011
|
|
|
118,871
|
|
Adjustments:
|
|
|
|
|
Depreciation and amortization
expense
|
|
30,639
|
|
|
38,048
|
|
Interest
expense, net
|
|
160,933
|
|
|
146,004
|
|
Income
tax provision
|
|
(121,047)
|
|
|
20,050
|
|
EBITDA
|
|
382,536
|
|
|
322,973
|
|
Adjustments:
|
|
|
|
|
Acquisition-related expenses and
adjustments (2)
|
|
2,074
|
|
|
18,568
|
|
Non-cash
stock compensation expense (3)
|
|
11,113
|
|
|
10,020
|
|
Refinancing costs
(4)
|
|
1,113
|
|
|
32,084
|
|
Other,
net (5)
|
|
4,697
|
|
|
(2,450)
|
|
Gross Adjustments to
EBITDA
|
|
18,997
|
|
|
58,222
|
|
EBITDA As
Defined
|
|
$
|
401,533
|
|
|
$
|
381,195
|
|
EBITDA As Defined,
Margin (6)
|
|
47.4
|
%
|
|
46.8
|
%
|
|
|
(1) During
the fourth quarter of 2017, the Company committed to disposing of
Schroth in connection with the settlement of a Department of
Justice investigation into the competitive effects of the
acquisition. Therefore, Schroth was classified as
held-for-sale and as discontinued operations beginning September
30, 2017. The Company acquired Schroth in February 2017. On January
26, 2018, the Company completed the sale of Schroth in a management
buyout to a private equity fund and certain members of Schroth
management for approximately $61 million in cash. Income this
quarter was a result of income from operations and a benefit from
the deferred tax remeasurement in connection with tax
reform.
|
|
(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)
Represents costs expensed related to debt financing activities,
including new issuances, extinguishments, refinancings and
amendments to existing agreements.
|
|
(5)
Primarily represents foreign currency transaction gain or loss,
payroll withholding taxes related to dividend equivalent payments
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 ENDED
|
|
Table
3
|
DECEMBER 30, 2017
AND DECEMBER 31, 2016
|
|
(Amounts in
thousands, except per share amounts)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Thirteen Week
Periods Ended
|
|
|
December
30, 2017
|
|
December
31, 2016
|
Reported Earnings
Per Share
|
|
|
|
|
Net income from
continuing operations
|
|
$
|
312,011
|
|
|
$
|
118,871
|
|
Less: dividends on
participating securities
|
|
(56,148)
|
|
|
(95,971)
|
|
|
|
$
|
255,863
|
|
|
$
|
22,900
|
|
Net income from
discontinued operations
|
|
2,764
|
|
|
—
|
|
Net income applicable
to common stock - basic and diluted
|
|
$
|
258,627
|
|
|
$
|
22,900
|
|
Weighted-average
shares outstanding under the two-class method
|
|
|
|
|
Weighted-average
common shares outstanding
|
|
52,024
|
|
|
53,365
|
|
Vested options deemed
participating securities
|
|
3,576
|
|
|
3,159
|
|
Total shares for
basic and diluted earnings per share
|
|
55,600
|
|
|
56,524
|
|
Net earnings per
share from continuing operations--basic and diluted
|
|
$
|
4.60
|
|
|
$
|
0.41
|
|
Net earnings per
share from discontinued operations--basic and diluted
|
|
0.05
|
|
|
—
|
|
Basic and diluted
earnings per share
|
|
$
|
4.65
|
|
|
$
|
0.41
|
|
Adjusted Earnings
Per Share
|
|
|
Net income from
continuing operations
|
|
$
|
312,011
|
|
|
$
|
118,871
|
|
Gross adjustments to
EBITDA
|
|
18,997
|
|
|
58,222
|
|
Purchase accounting
backlog amortization
|
|
409
|
|
|
9,147
|
|
Tax
adjustment
|
|
(21,332)
|
|
|
(43,570)
|
|
Adjusted net
income
|
|
$
|
310,085
|
|
|
$
|
142,670
|
|
Adjusted diluted
earnings per share under the two-class method
|
|
$
|
5.58
|
|
|
$
|
2.52
|
|
Diluted Earnings
Per Share to Adjusted Earnings Per Share
|
|
|
Diluted earnings per
share from continuing operations
|
|
$
|
4.60
|
|
|
$
|
0.41
|
|
Adjustments to
diluted earnings per share:
|
|
|
|
|
Inclusion of the dividend equivalent payments
|
|
1.01
|
|
|
1.70
|
|
Non-cash
stock compensation expense
|
|
0.29
|
|
|
0.12
|
|
Acquisition-related expenses
|
|
0.07
|
|
|
0.34
|
|
Refinancing costs
|
|
0.03
|
|
|
0.39
|
|
Reduction in income tax provision net income per common share
related to ASU 2016-09
|
|
(0.55)
|
|
|
(0.41)
|
|
Other,
net
|
|
0.13
|
|
|
(0.03)
|
|
Adjusted
earnings per share
|
|
$5.58
|
|
|
$2.52
|
|
Less: Estimated impact
of tax reform
|
|
(2.96)
|
|
|
—
|
|
Adjusted earnings per
share excluding tax reform
|
|
$
|
2.62
|
|
|
$
|
2.52
|
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
|
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF NET CASH
|
|
Table
4
|
PROVIDED BY
OPERATING ACTIVITIES TO EBITDA,
|
|
EBITDA AS
DEFINED
|
|
FOR THE THIRTEEN
WEEK PERIODS ENDED
|
|
DECEMBER 30, 2017
AND DECEMBER 31, 2016
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Thirteen Week
Periods Ended
|
|
|
December 30,
2017
|
|
December 31,
2016
|
Net cash provided by
operating activities
|
|
$
|
292,811
|
|
|
$
|
225,791
|
|
Adjustments:
|
|
|
|
|
Changes in assets and
liabilities, net of effects from acquisitions of
businesses
|
|
(101,926)
|
|
|
(22,641)
|
|
Interest expense -
net (1)
|
|
155,614
|
|
|
141,384
|
|
Income tax provision
- current
|
|
49,090
|
|
|
20,543
|
|
Non-cash stock
compensation expense (2)
|
|
(11,113)
|
|
|
(10,020)
|
|
Refinancing costs
(4)
|
|
(1,113)
|
|
|
(32,084)
|
|
EBITDA from
discontinued operations (6)
|
|
(827)
|
|
|
—
|
|
EBITDA
|
|
382,536
|
|
|
322,973
|
|
Adjustments:
|
|
|
|
|
Acquisition-related
expenses (3)
|
|
2,074
|
|
|
18,568
|
|
Non-cash stock
compensation expense (2)
|
|
11,113
|
|
|
10,020
|
|
Refinancing costs
(4)
|
|
1,113
|
|
|
32,084
|
|
Other, net
(5)
|
|
4,697
|
|
|
(2,450)
|
|
EBITDA As
Defined
|
|
$
|
401,533
|
|
|
$
|
381,195
|
|
|
|
(1)
Represents interest expense excluding the amortization of debt
issue costs and premium and discount on debt.
|
|
(2)
Represents the compensation expense recognized by TD Group under
our stock incentive plans.
|
|
(3)
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.
|
|
(4)
Represents costs expensed related to debt financing activities,
including new issuances, extinguishments, refinancings and
amendments to existing agreements.
|
|
(5)
Primarily represents foreign currency transaction gain or loss,
payroll withholding taxes related to dividend equivalent payments
and gain or loss on sale of fixed assets.
|
|
(6) During
the fourth quarter of 2017, the Company committed to disposing of
Schroth in connection with the settlement of a Department of
Justice investigation into the competitive effects of the
acquisition. Therefore, Schroth was classified as
held-for-sale and as discontinued operations beginning September
30, 2017. The Company acquired Schroth in February 2017. On January
26, 2018, the Company completed the sale of Schroth in a management
buyout to a private equity fund and certain members of Schroth
management for approximately $61 million in cash. Income this
quarter was a result of income from operations and a benefit from
the deferred tax remeasurement in connection with tax
reform.
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
|
SUPPLEMENTAL
INFORMATION - BALANCE SHEET DATA
|
|
Table
5
|
(Amounts in
thousands)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
December 30,
2017
|
|
September 30,
2017
|
Cash and cash
equivalents
|
|
857,862
|
|
|
650,561
|
|
Trade accounts
receivable - net
|
|
556,743
|
|
|
636,127
|
|
Inventories -
net
|
|
743,868
|
|
|
730,681
|
|
Current portion of
long-term debt, net of debt issuance costs and OID
|
|
69,214
|
|
|
69,454
|
|
Short-term
borrowings-trade receivable securitization facility, net of debt
issuance costs
|
|
299,710
|
|
|
299,587
|
|
Accounts
payable
|
|
145,045
|
|
|
148,761
|
|
Accrued current
liabilities
|
|
296,013
|
|
|
335,888
|
|
Long-term debt, net
of debt issuance costs and OID
|
|
11,378,320
|
|
|
11,393,620
|
|
Total stockholders'
deficit
|
|
(2,599,713)
|
|
|
(2,951,204)
|
|
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 ENDING SEPTEMBER 30, 2018
|
|
(Amounts in
millions, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
Year
Ended
|
|
|
|
September
30,
|
|
|
|
2018
(guidance
|
|
|
|
mid-point)
|
|
Net income
|
|
$
|
924
|
|
|
Adjustments:
|
|
|
|
Depreciation and
amortization expense
|
|
130
|
|
|
Interest expense -
net
|
|
650
|
|
|
Income tax
provision
|
|
63
|
|
|
EBITDA
|
|
1,767
|
|
|
Adjustments:
|
|
|
|
Acquisition-related
expenses and adjustments (1) and other, net
(1)
|
|
15
|
|
|
Non-cash stock
compensation expense (1)
|
|
48
|
|
|
Refinancing costs
(1)
|
|
—
|
|
|
Gross Adjustments to
EBITDA
|
|
63
|
|
|
EBITDA As
Defined
|
|
$
|
1,830
|
|
|
EBITDA As Defined,
Margin (1)
|
|
49.7
|
%
|
|
|
|
|
|
Earnings per
share
|
|
$
|
15.61
|
|
|
Adjustments to
earnings per share:
|
|
|
|
Inclusion of the
dividend equivalent payments
|
|
1.01
|
|
|
Non-cash stock
compensation expense
|
|
0.78
|
|
|
Acquisition-related
expenses and adjustments and other, net
|
|
0.26
|
|
|
Refinancing
costs
|
|
0.02
|
|
|
Reduction in income
tax provision net income per common share related to ASU
2016-09
|
|
(0.41)
|
|
|
Adjusted earnings per
share
|
|
$
|
17.27
|
|
|
|
|
|
|
Weighted-average
shares outstanding
|
|
55.6
|
|
|
|
|
|
|
|
|
|
|
(1) Refer
to Table 2 above for definitions of Non-GAAP measurement
adjustments.
|
|
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
SUPPLEMENTAL
INFORMATION
|
|
|
CURRENT FISCAL
YEAR 2018 GUIDANCE VERSUS PRIOR FISCAL YEAR
2018 GUIDANCE
|
Table
7
|
|
(Amounts in
millions, except per share amounts)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Current
|
|
Prior
|
|
|
|
|
Fiscal Year
2018
|
|
Fiscal Year
2018
|
|
|
|
|
Guidance
|
|
Guidance
|
|
Change
at
|
|
|
Issued February
6,
2018
|
|
Issued November
9,
2017
|
|
Mid-Point
|
|
Sales
|
$3,645 to
$3,725
|
|
$3,645 to
$3,725
|
|
—
|
|
|
|
|
|
|
|
|
GAAP Net Income from
Continuing Operations
|
$906 to
$942
|
|
$702 to
$738
|
|
$204
|
|
|
|
|
|
|
|
|
GAAP Earnings Per
Share from Continuing Operations
|
$15.29 to
$15.93
|
|
$11.61 to
$12.25
|
|
$3.68
|
|
|
|
|
|
|
|
|
EBITDA As
Defined
|
$1,805 to
$1,855
|
|
$1,805 to
$1,855
|
|
—
|
|
|
|
|
|
|
|
|
Adjusted Earnings Per
Share
|
$16.95 to
$17.59
|
|
$12.78 to
$13.42
|
|
$4.17
|
|
|
|
|
|
|
|
|
Weighted-Average
Shares Outstanding
|
55.6
|
|
55.6
|
|
—
|
|
View original
content:http://www.prnewswire.com/news-releases/transdigm-group-reports-fiscal-2018-first-quarter-results-300593837.html
SOURCE TransDigm Group Incorporated