BERWYN,
Pa., May 18, 2022 /PRNewswire/ -- Triumph
Group, Inc. (NYSE: TGI) ("TRIUMPH" or the "Company") today reported
financial results for its fourth quarter and fiscal 2022, which
ended March 31, 2022.
Fourth Quarter Fiscal
2022
- Net sales of $386.7 million
- Operating income of $38.8 million
with operating margin of 10%; adjusted operating income of
$43.0 million with adjusted operating
margin of 11%
- Net loss of $10.6 million, or
($0.16) per share; adjusted net
income of $25.6 million, or
$0.39 per diluted share
- Cash flow provided by operations of $33.0 million; free cash flow of $29.1 million
Fiscal 2022
- Net sales of $1.5 billion
- Operating income of $104.3
million with operating margin of 7%; adjusted operating
income of $135.0 million with
adjusted operating margin of 9%
- Net loss of $42.8 million, or
($0.66) per share; adjusted net
income of $51.8 million, or
$0.79 per diluted share
- Cash flow used in operations of $137.0
million; free cash use of $156.7
million
Fiscal 2023 Guidance
- Net sales between $1.2 billion -
$1.3 billion
- Earnings per diluted share of between $0.40 - $0.60
- Cash used in operations of ($30.0)
million to ($40.0) million,
includes core cash flow from operations of between $30.0 million - $45.0
million
"TRIUMPH continued to deliver
improving operating margin and cash flow, both sequentially and
year over year, thanks to our talented and dedicated global team."
stated Dan Crowley, TRIUMPH's chairman, president and chief
executive officer. "We are pleased to provide financial outlook for
fiscal 2023 powered by the diversity of our people, our highly
engineered products, and the programs and markets we serve.
With a growing and profitable backlog, TRIUMPH is well positioned to benefit from
continued strength in military and freighter markets and the
anticipated recovery in commercial aviation production and
aftermarket demand over the next several years."
"Mr. Crowley continued, "During fiscal 2022 we completed several
important milestones including divesting our build to print
metallic structures businesses, completing 747 production and
streamlining our organizational structure to reduce cost and
enhance communication and efficiencies. In fiscal 2023 we
will expand our investment in operations, products and people to
maximize value for all stakeholders."
Fourth Quarter Fiscal 2022
Overview
Excluding divestitures and sunsetting programs, sales for the
fourth quarter of fiscal 2022 were down 2% organically from the
prior year period due to declines in commercial widebody production
and timing of military OEM deliveries, partially offset by
increases in commercial narrow body production.
Fourth quarter operating income of $38.8
million includes $8.6 million
of restructuring costs related to our structures facility exits and
$4.3 million reduction of prior
period losses on sales of assets and businesses. Cost of
sales benefited from the Aviation Manufacturing Jobs Protection
Program by $11.4 million in the
quarter. Net loss for the fourth quarter of fiscal 2022 was
$10.6 million, or ($0.16) per share and includes $32.0 million non-cash pension settlement charge
on the partial annuitization of pension benefits. On an
adjusted basis, net income was $25.6
million, or $0.39 per diluted
share.
TRIUMPH's results included the
following:
($ millions except EPS)
|
|
Pre-tax
|
|
|
After-tax
|
|
|
Diluted EPS
|
|
Loss from Continuing Operations -
GAAP
|
|
$
|
(9.8)
|
|
|
$
|
(10.6)
|
|
|
$
|
(0.16)
|
|
Gain on sale of assets
and businesses, net
|
|
|
(4.3)
|
|
|
|
(4.3)
|
|
|
|
(0.07)
|
|
Restructuring costs
(cash)
|
|
|
6.3
|
|
|
|
6.3
|
|
|
|
0.10
|
|
Restructuring costs
(non-cash)
|
|
|
2.3
|
|
|
|
2.3
|
|
|
|
0.04
|
|
Pension
charges
|
|
|
32.0
|
|
|
|
32.0
|
|
|
|
0.49
|
|
Adjusted Income from Continuing Operations - non-GAAP
*
|
|
$
|
26.4
|
|
|
$
|
25.6
|
|
|
$
|
0.39
|
|
* Differences due to
rounding
|
The number of shares used in computing diluted earnings per
share for the fourth quarter of 2022 was 65.4 million.
Adjusting for the pending Stuart divestiture, backlog, which
represents the next 24 months of actual purchase orders with firm
delivery dates or contract requirements, was $1.42 billion, up 6% from the prior year,
primarily on commercial narrow body platforms.
For the fourth quarter of fiscal 2022, cash flow provided by
operations was $33.0 million.
Outlook
The Company's outlook reflects adjustments detailed in the
attached tables and assumes a first quarter of fiscal 2023 closure
on our Stuart facility divestiture and the resolution of the
related customer advances.
Based on anticipated aircraft production rates, the Company
expects net sales for fiscal 2023 will be approximately
$1.2 billion to $1.3 billion.
The Company expects GAAP fiscal 2023 earnings per diluted share
of $0.40 to $0.60.
The Company expects fiscal 2023 cash used in operations of
($30.0) million to ($40.0) million, including core cash flow from
operations of approximately $30.0
million to $45.0 million and
core free cash flow of approximately break-even to $15.0 million.
Conference Call
TRIUMPH will hold a conference
call today, May 18th, at 8:30 a.m. (ET) to discuss the fourth quarter of
fiscal 2022 results. The conference call will be available
live and archived on the Company's website at
http://www.triumphgroup.com. A slide presentation will be
included with the audio portion of the webcast, and the
presentation has been posted on the Company's website at
http://ir.triumphgroup.com/QuarterlyResults. An audio replay will
be available from May 18th to May
25th by calling (877) 344-7529 (Domestic) or (412) 317-0088
(International), passcode #5049523.
About TRIUMPH
TRIUMPH, headquartered in
Berwyn, Pennsylvania, designs,
engineers, manufactures, repairs and overhauls a broad portfolio of
aerospace and defense systems, components and structures. The
company serves the global aviation industry, including original
equipment manufacturers and the full spectrum of military and
commercial aircraft operators.
More information about TRIUMPH
can be found on the Company's website at www.triumphgroup.com.
Forward Looking
Statements
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 financial and operational
performance, revenues, earnings per share, cash flow or use, cost
savings and operational efficiencies and organizational
restructurings. 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 Group's reports filed with the SEC,
including our Annual Report on Form 10-K for the fiscal year ended
March 31, 2021.
Widespread health developments, including the recent global
coronavirus (COVID-19), and the responses thereto (such as
voluntary and in some cases, mandatory quarantines as well as shut
downs and other restrictions on travel and commercial, social and
other activities) could adversely and materially affect, among
other things, the economic and financial markets and labor
resources of the countries in which we operate, our manufacturing
and supply chain operations, commercial operations and sales force,
administrative personnel, third-party service providers, business
partners and customers and the demand for our products, which could
result in a material adverse effect on our business, financial
conditions and results of operations.
FINANCIAL DATA (UNAUDITED) ON
FOLLOWING PAGES
FINANCIAL DATA
(UNAUDITED)
|
TRIUMPH GROUP, INC.
AND SUBSIDIARIES
|
|
(in thousands,
except per share data)
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
March 31,
|
|
|
March 31,
|
|
CONDENSED STATEMENTS OF
OPERATIONS
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Net sales
|
|
$
|
386,651
|
|
|
$
|
466,833
|
|
|
$
|
1,459,942
|
|
|
$
|
1,869,719
|
|
Cost of sales
(excluding depreciation shown below)
|
|
|
284,722
|
|
|
|
359,598
|
|
|
|
1,073,063
|
|
|
|
1,476,266
|
|
Selling, general &
administrative
|
|
|
49,295
|
|
|
|
53,773
|
|
|
|
202,070
|
|
|
|
215,962
|
|
Depreciation &
amortization
|
|
|
9,600
|
|
|
|
20,515
|
|
|
|
49,635
|
|
|
|
93,334
|
|
Impairment of
long-lived assets and goodwill
|
|
|
2,308
|
|
|
|
—
|
|
|
|
2,308
|
|
|
|
252,382
|
|
Restructuring
costs
|
|
|
6,264
|
|
|
|
20,477
|
|
|
|
19,295
|
|
|
|
53,224
|
|
(Gain) loss on sale of
assets and businesses, net
|
|
|
(4,335)
|
|
|
|
58,682
|
|
|
|
9,294
|
|
|
|
104,702
|
|
Operating income
(loss)
|
|
|
38,797
|
|
|
|
(46,212)
|
|
|
|
104,277
|
|
|
|
(326,151)
|
|
Interest expense and
other, net
|
|
|
30,801
|
|
|
|
39,053
|
|
|
|
135,861
|
|
|
|
171,397
|
|
Debt extinguishment
loss
|
|
|
—
|
|
|
|
—
|
|
|
|
11,624
|
|
|
|
—
|
|
Non-service defined
benefit expense (income)
|
|
|
17,754
|
|
|
|
(12,244)
|
|
|
|
(5,373)
|
|
|
|
(49,519)
|
|
Income tax
expense
|
|
|
817
|
|
|
|
498
|
|
|
|
4,923
|
|
|
|
2,881
|
|
Net loss
|
|
$
|
(10,575)
|
|
|
$
|
(73,519)
|
|
|
$
|
(42,758)
|
|
|
$
|
(450,910)
|
|
Loss per share -
basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(0.16)
|
|
|
$
|
(1.27)
|
|
|
$
|
(0.66)
|
|
|
$
|
(8.55)
|
|
Weighted average common
shares outstanding - basic
|
|
|
64,640
|
|
|
|
57,920
|
|
|
|
64,538
|
|
|
|
52,739
|
|
Loss per share -
diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(0.16)
|
|
|
$
|
(1.27)
|
|
|
$
|
(0.66)
|
|
|
$
|
(8.55)
|
|
Weighted average common
shares outstanding - diluted
|
|
|
64,640
|
|
|
|
57,920
|
|
|
|
64,538
|
|
|
|
52,739
|
|
Dividends declared and
paid per common share
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(Continued)
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH GROUP, INC.
AND SUBSIDIARIES
|
(dollars in
thousands, except share data)
|
|
BALANCE SHEETS
|
|
Unaudited
March 31,
2022
|
|
|
Audited
March 31,
2021
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
240,878
|
|
|
$
|
589,882
|
|
Accounts receivable,
net
|
|
|
178,663
|
|
|
|
194,066
|
|
Contract
assets
|
|
|
101,828
|
|
|
|
134,638
|
|
Inventory,
net
|
|
|
361,692
|
|
|
|
400,366
|
|
Prepaid and other
current assets
|
|
|
19,437
|
|
|
|
19,206
|
|
Assets held for
sale
|
|
|
60,104
|
|
|
|
216,276
|
|
Current assets
|
|
|
962,602
|
|
|
|
1,554,434
|
|
Property and equipment,
net
|
|
|
169,050
|
|
|
|
211,369
|
|
Goodwill
|
|
|
513,722
|
|
|
|
521,638
|
|
Intangible assets,
net
|
|
|
84,850
|
|
|
|
102,453
|
|
Other, net
|
|
|
30,476
|
|
|
|
61,041
|
|
Total assets
|
|
$
|
1,760,700
|
|
|
$
|
2,450,935
|
|
Liabilities & Stockholders'
Deficit
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
|
3,268
|
|
|
$
|
5,247
|
|
Accounts
payable
|
|
|
161,534
|
|
|
|
179,473
|
|
Contract
liabilities
|
|
|
171,763
|
|
|
|
204,379
|
|
Accrued
expenses
|
|
|
207,420
|
|
|
|
271,160
|
|
Liabilities related to
assets held for sale
|
|
|
57,519
|
|
|
|
58,108
|
|
Current liabilities
|
|
|
601,504
|
|
|
|
718,367
|
|
Long-term debt, less
current portion
|
|
|
1,586,222
|
|
|
|
1,952,296
|
|
Accrued pension and
post-retirement benefits, noncurrent
|
|
|
301,303
|
|
|
|
384,256
|
|
Deferred income taxes,
noncurrent
|
|
|
7,386
|
|
|
|
7,491
|
|
Other noncurrent
liabilities
|
|
|
51,708
|
|
|
|
207,378
|
|
Stockholders'
Deficit:
|
|
|
|
|
|
|
Common stock, $.001 par value, 100,000,000 shares
authorized,
64,629,279
and 64,488,674 shares issued
|
|
|
64
|
|
|
|
64
|
|
Capital in excess of par value
|
|
|
973,112
|
|
|
|
978,272
|
|
Treasury stock, at cost, 14,897 and 303,673 shares
|
|
|
(96)
|
|
|
|
(12,606)
|
|
Accumulated other comprehensive loss
|
|
|
(463,354)
|
|
|
|
(530,192)
|
|
Accumulated deficit
|
|
|
(1,297,149)
|
|
|
|
(1,254,391)
|
|
Total stockholders'
deficit
|
|
|
(787,423)
|
|
|
|
(818,853)
|
|
Total liabilities and
stockholders' deficit
|
|
$
|
1,760,700
|
|
|
$
|
2,450,935
|
|
(Continued)
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH GROUP, INC.
AND SUBSIDIARIES
|
(dollars in
thousands, except share data)
|
|
|
|
Fiscal Year Ended March 31
|
|
|
|
2022
|
|
|
2021
|
|
Operating Activities
|
|
|
|
|
|
|
Net loss
|
|
$
|
(42,758)
|
|
|
$
|
(450,910)
|
|
Adjustments to
reconcile net loss to net cash used in
operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
49,635
|
|
|
|
93,334
|
|
Impairment of long-lived assets
|
|
|
2,308
|
|
|
|
252,382
|
|
Amortization of acquired contract liability
|
|
|
(5,870)
|
|
|
|
(38,564)
|
|
Loss on sale of assets and businesses
|
|
|
9,294
|
|
|
|
104,702
|
|
Curtailments, settlements, and special termination benefits
loss, net
|
|
|
52,005
|
|
|
|
—
|
|
Other amortization included in interest expense
|
|
|
9,047
|
|
|
|
23,759
|
|
Provision for credit losses
|
|
|
452
|
|
|
|
4,853
|
|
Provision (benefit) for deferred income taxes
|
|
|
25
|
|
|
|
(176)
|
|
Share-based compensation
|
|
|
9,782
|
|
|
|
12,701
|
|
Changes in other assets and liabilities, excluding the
effects of
acquisitions and
divestitures:
|
|
|
|
|
|
|
Trade and other
receivables
|
|
|
2,822
|
|
|
|
126,294
|
|
Contract assets
|
|
|
702
|
|
|
|
46,841
|
|
Inventories
|
|
|
25,642
|
|
|
|
35,412
|
|
Prepaid expenses and other
current assets
|
|
|
(1,122)
|
|
|
|
(310)
|
|
Accounts payable, accrued
expenses, and contract liabilities
|
|
|
(189,412)
|
|
|
|
(330,992)
|
|
Accrued pension and other
postretirement benefits
|
|
|
(58,597)
|
|
|
|
(51,692)
|
|
Other, net
|
|
|
(971)
|
|
|
|
(753)
|
|
Net cash used in
operating activities
|
|
|
(137,016)
|
|
|
|
(173,119)
|
|
Investing Activities
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(19,660)
|
|
|
|
(25,178)
|
|
Proceeds from sale of
assets and businesses
|
|
|
224,518
|
|
|
|
15,888
|
|
Investment in joint
venture
|
|
|
(2,101)
|
|
|
|
—
|
|
Purchase of facility
related to divested businesses
|
|
|
(21,550)
|
|
|
|
—
|
|
Net cash provided by
(used in) investing activities
|
|
|
181,207
|
|
|
|
(9,290)
|
|
Financing Activities
|
|
|
|
|
|
|
Net decrease in
revolving credit facility
|
|
|
—
|
|
|
|
(400,000)
|
|
Proceeds from issuance
of long-term debt
|
|
|
107
|
|
|
|
713,900
|
|
Retirement of debt and
finance lease obligations
|
|
|
(380,009)
|
|
|
|
(160,035)
|
|
Payment of deferred
financing costs
|
|
|
(400)
|
|
|
|
(20,716)
|
|
Sales of common
stock
|
|
|
—
|
|
|
|
145,383
|
|
Premium on redemption
of First Lien Notes
|
|
|
(9,108)
|
|
|
|
—
|
|
Repurchase of shares
for share-based compensation
minimum tax obligation
|
|
|
(3,249)
|
|
|
|
(1,285)
|
|
Net cash (used in)
provided by financing activities
|
|
|
(392,659)
|
|
|
|
277,247
|
|
Effect of exchange rate
changes on cash
|
|
|
(536)
|
|
|
|
9,581
|
|
Net change in cash and
cash equivalents
|
|
|
(349,004)
|
|
|
|
104,419
|
|
Cash and cash
equivalents at beginning of period
|
|
|
589,882
|
|
|
|
485,463
|
|
Cash and cash
equivalents at end of period
|
|
$
|
240,878
|
|
|
$
|
589,882
|
|
(Continued)
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH GROUP, INC.
AND SUBSIDIARIES
|
(dollars in
thousands)
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
March 31,
|
|
|
March 31,
|
|
SEGMENT DATA
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems & Support
|
|
$
|
286,969
|
|
|
$
|
301,823
|
|
|
$
|
1,030,444
|
|
|
$
|
1,060,001
|
|
Aerospace Structures
|
|
|
99,684
|
|
|
|
165,306
|
|
|
|
429,547
|
|
|
|
814,371
|
|
Elimination of inter-segment sales
|
|
|
(2)
|
|
|
|
(296)
|
|
|
|
(49)
|
|
|
|
(4,653)
|
|
|
|
$
|
386,651
|
|
|
$
|
466,833
|
|
|
$
|
1,459,942
|
|
|
$
|
1,869,719
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems & Support
|
|
$
|
49,237
|
|
|
$
|
39,484
|
|
|
$
|
163,450
|
|
|
$
|
113,517
|
|
Aerospace Structures
|
|
|
2,666
|
|
|
|
(13,515)
|
|
|
|
13,982
|
|
|
|
(267,702)
|
|
Corporate
|
|
|
(10,988)
|
|
|
|
(68,566)
|
|
|
|
(63,373)
|
|
|
|
(159,265)
|
|
Share-based compensation expense
|
|
|
(2,118)
|
|
|
|
(3,615)
|
|
|
|
(9,782)
|
|
|
|
(12,701)
|
|
|
|
$
|
38,797
|
|
|
$
|
(46,212)
|
|
|
$
|
104,277
|
|
|
$
|
(326,151)
|
|
Operating margin
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems & Support
|
|
|
17.2
|
%
|
|
|
13.1
|
%
|
|
|
15.9
|
%
|
|
|
10.7
|
%
|
Aerospace Structures
|
|
|
2.7
|
%
|
|
|
(8.2)
|
%
|
|
|
3.3
|
%
|
|
|
(32.9)
|
%
|
Consolidated
|
|
|
10.0
|
%
|
|
|
(9.9)
|
%
|
|
|
7.1
|
%
|
|
|
(17.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization^:
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems & Support
|
|
$
|
7,699
|
|
|
$
|
8,719
|
|
|
$
|
32,464
|
|
|
$
|
33,549
|
|
Aerospace Structures
|
|
|
3,556
|
|
|
|
10,989
|
|
|
|
16,234
|
|
|
|
308,708
|
|
Corporate
|
|
|
653
|
|
|
|
807
|
|
|
|
3,245
|
|
|
|
3,459
|
|
|
|
$
|
11,908
|
|
|
$
|
20,515
|
|
|
$
|
51,943
|
|
|
$
|
345,716
|
|
Amortization of
acquired contract liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems & Support
|
|
$
|
(2,226)
|
|
|
$
|
(3,493)
|
|
|
$
|
(5,859)
|
|
|
$
|
(15,062)
|
|
Aerospace Structures
|
|
|
—
|
|
|
|
(54)
|
|
|
|
(12)
|
|
|
|
(23,502)
|
|
|
|
$
|
(2,226)
|
|
|
$
|
(3,547)
|
|
|
$
|
(5,871)
|
|
|
$
|
(38,564)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
^ includes impairment
of long-lived assets
|
|
|
|
|
|
|
|
|
|
|
|
|
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
Adjusted EBITDA and Adjusted EBITDAP, which is our net income
before interest, income taxes, amortization of acquired contract
liabilities, curtailments, settlements and special termination
benefits, legal settlements, loss on divestitures, share-based
compensation expense, depreciation and amortization and Adjusted
EBITDA, less pension & other postretirement benefits. We
disclose Adjusted EBITDA and Adjusted EBITDAP on a consolidated and
Adjusted EBITDAP 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.
We view Adjusted EBITDA and Adjusted EBITDAP as operating
performance measure and as such we believe that the GAAP financial
measure most directly comparable to it is net income. In
calculating Adjusted EBITDA and Adjusted EBITDAP, we exclude from
net income the financial items that we believe should be separately
identified to provide additional analysis of the financial
components of the day-to-day operation of our business. We have
outlined below the type and scope of these exclusions and the
material limitations on the use of these non-GAAP financial
measures as a result of these exclusions. Adjusted EBITDA and
Adjusted EBITDAP are not measurements of financial performance
under GAAP and should not be considered as a measure of liquidity,
as an alternative to net income (loss), income from continuing
operations, or as an indicator of any other measure of performance
derived in accordance with GAAP. Investors and potential
investors in our securities should not rely on Adjusted EBITDA or
Adjusted EBITDAP as substitutes for any GAAP financial measure,
including net income (loss) or income from continuing operations.
In addition, we urge investors and potential investors in our
securities to carefully review the reconciliation of Adjusted
EBITDA and Adjusted EBITDAP to net income set forth below, in our
earnings releases and in other filings with the SEC and to
carefully review the GAAP financial information included as part of
our Quarterly Reports on Form 10-Q and our Annual Reports on Form
10-K that are filed with the SEC, as well as our quarterly earnings
releases, and compare the GAAP financial information with our
Adjusted EBITDA and Adjusted EBITDAP.
Adjusted EBITDA and Adjusted EBITDAP is used by management to
internally measure our operating and management performance and by
investors as a supplemental financial measure to evaluate the
performance of our business that, when viewed with our GAAP results
and the accompanying reconciliation, we believe provides additional
information that is useful to gain an understanding of the factors
and trends affecting our business. We have spent more than 25
years expanding our product and service capabilities partially
through acquisitions of complementary businesses. Due to the
expansion of our operations, which included acquisitions, our net
income has included significant charges for depreciation and
amortization. Adjusted EBITDA and Adjusted EBITDAP exclude
these charges and provide meaningful information about the
operating performance of our business, apart from charges for
depreciation and amortization. We believe the disclosure of
Adjusted EBITDA and Adjusted EBITDAP helps investors meaningfully
evaluate and compare our performance from quarter to quarter and
from year to year. We also believe Adjusted EBITDA and Adjusted
EBITDAP is a measure of our ongoing operating performance because
the isolation of non-cash income and expenses, such as amortization
of acquired contract liabilities, depreciation and amortization,
share-based compensation and non-operating items, such as interest
and income taxes, provides additional information about our cost
structure, and, over time, helps track our operating progress. In
addition, investors, securities analysts and others have regularly
relied on Adjusted EBITDA and Adjusted EBITDAP to provide a
financial measure by which to compare our operating performance
against that of other companies in our industry.
(Continued)
FINANCIAL DATA
(UNAUDITED)
TRIUMPH GROUP, INC. AND
SUBSIDIARIES
(dollars in thousands)
Set forth below are descriptions of the financial items that
have been excluded from our net income to calculate Adjusted EBITDA
and Adjusted EBITDAP and the material limitations associated with
using this non-GAAP financial measure as compared to net
income:
- Divestitures may be useful for investors to consider because
they reflect gains or losses from sale of operating units. We
do not believe these earnings necessarily reflect the current and
ongoing cash earnings related to our operations.
- Non-service defined benefit income (inclusive of certain
pension related transactions such as curtailments, settlements,
early retirement or other incentives) may be useful to investors to
consider because they represent the cost of post-retirement
benefits to plan participants, net of the assumption of returns on
the plan's assets and are not indicative of the cash paid for such
benefits. We do not believe these earnings (expenses)
necessarily reflect the current and ongoing cash earnings related
to our operations.
- Amortization of acquired contract liabilities may be useful for
investors to consider because it represents the non-cash earnings
on the fair value of below market contracts acquired through
acquisitions. We do not believe these earnings necessarily reflect
the current and ongoing cash earnings related to our
operations.
- Amortization expense and nonrecurring asset impairments
(including goodwill, intangible asset impairments, and nonrecurring
rotable inventory impairments) may be useful for investors to
consider because it represents the estimated attrition of our
acquired customer base and the diminishing value of tradenames,
product rights, licenses, or, in the case of goodwill, other assets
that are not individually identified and separately recognized
under U.S. GAAP, or, in the case of nonrecurring asset impairments,
the impact of unusual and nonrecurring events affecting the
estimated recoverability of existing assets. We do not believe
these charges necessarily reflect the current and ongoing cash
charges related to our operating cost structure,
- Share-based compensation may be useful for investors to
consider because it represents a portion of the total compensation
to management and the board of directors. We do not believe these
charges necessarily reflect the current and ongoing cash charges
related to our operating cost structure.
- Depreciation may be useful for investors to consider because
they generally represent the wear and tear on our property and
equipment used in our operations. We do not believe these charges
necessarily reflect the current and ongoing cash charges related to
our operating cost structure.
- The amount of interest expense and other we incur may be useful
for investors to consider and may result in current cash inflows or
outflows. However, we do not consider the amount of interest
expense and other to be a representative component of the
day-to-day operating performance of our business.
- Income tax expense may be useful for investors to consider
because it generally represents the taxes which may be payable for
the period and the change in deferred income taxes during the
period and may reduce the amount of funds otherwise available for
use in our business. However, we do not consider the amount
of income tax expense to be a representative component of the
day-to-day operating performance of our business.
Management compensates for the above-described limitations of
using non-GAAP measures by using a non-GAAP measure only to
supplement our GAAP results and to provide additional information
that is useful to gain an understanding of the factors and trends
affecting our business.
(Continued)
FINANCIAL DATA
(UNAUDITED)
TRIUMPH GROUP, INC. AND
SUBSIDIARIES
(dollars in thousands)
The following table shows our Adjusted EBITDA and Adjusted
EBITDAP reconciled to our net income for the indicated periods (in
thousands):
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
March 31,
|
|
|
March 31,
|
|
Adjusted Earnings before Interest, Taxes,
Depreciation,
Amortization, and Pension (Adjusted EBITDAP):
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Net loss
|
|
$
|
(10,575)
|
|
|
$
|
(73,519)
|
|
|
$
|
(42,758)
|
|
|
$
|
(450,910)
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
817
|
|
|
|
498
|
|
|
|
4,923
|
|
|
|
2,881
|
|
Interest expense and other, net
|
|
|
30,801
|
|
|
|
39,053
|
|
|
|
135,861
|
|
|
|
171,397
|
|
Debt extinguishment loss
|
|
|
—
|
|
|
|
—
|
|
|
|
11,624
|
|
|
|
—
|
|
Pension charges
|
|
|
31,959
|
|
|
|
—
|
|
|
|
52,005
|
|
|
|
—
|
|
(Gain) loss on sales of assets and businesses, net
|
|
|
(4,335)
|
|
|
|
58,682
|
|
|
|
9,294
|
|
|
|
104,702
|
|
Impairment of rotable inventory
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
23,689
|
|
Amortization of acquired contract liabilities
|
|
|
(2,226)
|
|
|
|
(3,547)
|
|
|
|
(5,871)
|
|
|
|
(38,564)
|
|
Depreciation and amortization ^
|
|
|
11,908
|
|
|
|
20,515
|
|
|
|
51,943
|
|
|
|
345,716
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation
and Amortization ("Adjusted EBITDA")
|
|
$
|
58,349
|
|
|
$
|
41,682
|
|
|
$
|
217,021
|
|
|
$
|
158,911
|
|
Non-service defined
benefit income (excluding settlements)
|
|
|
(14,205)
|
|
|
|
(12,244)
|
|
|
|
(57,378)
|
|
|
|
(49,519)
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation
and Amortization, and Pension ("Adjusted EBITDAP"), as
historically presented
|
|
|
44,144
|
|
|
|
29,438
|
|
|
|
159,643
|
|
|
|
109,392
|
|
Share-based
compensation
|
|
|
2,118
|
|
|
|
3,615
|
|
|
|
9,782
|
|
|
|
12,701
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation
and Amortization, and Pension ("Adjusted
EBITDAP")
|
|
$
|
46,262
|
|
|
$
|
33,053
|
|
|
$
|
169,425
|
|
|
$
|
122,093
|
|
Net sales
|
|
$
|
386,651
|
|
|
$
|
466,833
|
|
|
$
|
1,459,942
|
|
|
$
|
1,869,719
|
|
Net loss
margin
|
|
|
(2.7)
|
%
|
|
|
(15.7)
|
%
|
|
|
(2.9)
|
%
|
|
|
(24.1)
|
%
|
Adjusted EBITDAP
margin, as historically presented
|
|
|
11.5
|
%
|
|
|
6.4
|
%
|
|
|
11.0
|
%
|
|
|
6.0
|
%
|
Adjusted EBITDAP
margin
|
|
|
12.0
|
%
|
|
|
7.1
|
%
|
|
|
11.7
|
%
|
|
|
6.7
|
%
|
^ includes long-lived
asset impairment charges
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH GROUP, INC.
AND SUBSIDIARIES
|
(dollars in
thousands)
|
|
Non-GAAP Financial Measure Disclosures
(continued)
|
|
|
|
Three Months Ended March 31,
2022
|
|
|
|
|
|
|
Segment Data
|
|
Adjusted Earnings before Interest, Taxes,
Depreciation,
Amortization, and Pension (EBITDAP):
|
|
Total
|
|
|
Systems &
Support
|
|
|
Aerospace
Structures
|
|
|
Corporate/
Eliminations*
|
|
Net loss
|
|
$
|
(10,575)
|
|
|
|
|
|
|
|
|
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-service defined benefit expense
|
|
|
17,754
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
817
|
|
|
|
|
|
|
|
|
|
|
Interest expense and other, net
|
|
|
30,801
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
38,797
|
|
|
$
|
49,237
|
|
|
$
|
2,666
|
|
|
$
|
(13,106)
|
|
Gain on sales of assets & businesses, net
|
|
|
(4,335)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4,335)
|
|
Amortization of acquired contract liabilities
|
|
|
(2,226)
|
|
|
|
(2,226)
|
|
|
|
—
|
|
|
|
—
|
|
Depreciation and amortization
|
|
|
11,908
|
|
|
|
7,699
|
|
|
|
3,556
|
|
|
|
653
|
|
Adjusted Earnings
(Losses) before Interest, Taxes,
Depreciation and Amortization, and Pension
("Adjusted EBITDAP"), as historically
presented
|
|
$
|
44,144
|
|
|
$
|
54,710
|
|
|
$
|
6,222
|
|
|
$
|
(16,788)
|
|
Share-based
compensation
|
|
|
2,118
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,118
|
|
Adjusted Earnings
(Losses) before Interest, Taxes,
Depreciation and Amortization, and Pension
("Adjusted EBITDAP")
|
|
$
|
46,262
|
|
|
$
|
54,710
|
|
|
$
|
6,222
|
|
|
$
|
(14,670)
|
|
Net
sales
|
|
$
|
386,651
|
|
|
$
|
286,969
|
|
|
$
|
99,684
|
|
|
$
|
(2)
|
|
Adjusted EBITDAP margin, as historically presented
|
|
|
11.5
|
%
|
|
|
19.2
|
%
|
|
|
6.2
|
%
|
|
n/a
|
|
Adjusted EBITDAP margin
|
|
|
12.0
|
%
|
|
|
19.2
|
%
|
|
|
6.2
|
%
|
|
n/a
|
|
|
|
Year Ended March 31, 2022
|
|
|
|
|
|
|
Segment Data
|
|
Adjusted Earnings before Interest, Taxes,
Depreciation,
Amortization, and Pension (EBITDAP):
|
|
Total
|
|
|
Systems &
Support
|
|
|
Aerospace
Structures
|
|
|
Corporate/
Eliminations*
|
|
Net loss
|
|
$
|
(42,758)
|
|
|
|
|
|
|
|
|
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-service defined benefit income
|
|
|
(5,373)
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
4,923
|
|
|
|
|
|
|
|
|
|
|
Debt extinguishment loss
|
|
|
11,624
|
|
|
|
|
|
|
|
|
|
|
Interest expense and other, net
|
|
|
135,861
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
104,277
|
|
|
$
|
163,450
|
|
|
$
|
13,982
|
|
|
$
|
(73,155)
|
|
Loss on sales of assets & businesses, net
|
|
|
9,294
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9,294
|
|
Amortization of acquired contract liabilities
|
|
|
(5,871)
|
|
|
|
(5,859)
|
|
|
|
(12)
|
|
|
|
—
|
|
Depreciation and amortization
|
|
|
51,943
|
|
|
|
32,464
|
|
|
|
16,234
|
|
|
|
3,245
|
|
Adjusted Earnings
(Losses) before Interest, Taxes,
Depreciation and Amortization, and Pension
("Adjusted EBITDAP"), as historically
presented
|
|
$
|
159,643
|
|
|
$
|
190,055
|
|
|
$
|
30,204
|
|
|
$
|
(60,616)
|
|
Share-based
compensation
|
|
|
9,782
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,782
|
|
Adjusted Earnings
(Losses) before Interest, Taxes,
Depreciation and Amortization, and Pension
("Adjusted EBITDAP")
|
|
$
|
169,425
|
|
|
$
|
190,055
|
|
|
$
|
30,204
|
|
|
$
|
(50,834)
|
|
Net
sales
|
|
$
|
1,459,942
|
|
|
$
|
1,030,444
|
|
|
$
|
429,547
|
|
|
$
|
(49)
|
|
Adjusted EBITDAP margin, as historically presented
|
|
|
11.0
|
%
|
|
|
18.5
|
%
|
|
|
7.0
|
%
|
|
n/a
|
|
Adjusted EBITDAP margin
|
|
|
11.7
|
%
|
|
|
18.5
|
%
|
|
|
7.0
|
%
|
|
n/a
|
|
|
|
*
|
Operating loss at
Corporate includes share-based compensation expense.
|
(Continued)
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH GROUP, INC.
AND SUBSIDIARIES
|
(dollars in
thousands)
|
|
Non-GAAP Financial Measure Disclosures
(continued)
|
|
|
|
Three Months Ended March 31,
2021
|
|
|
|
|
|
|
Segment Data
|
|
Adjusted Earnings before Interest, Taxes,
Depreciation,
Amortization, and Pension (EBITDAP):
|
|
Total
|
|
|
Systems &
Support
|
|
|
Aerospace
Structures
|
|
|
Corporate/
Eliminations*
|
|
Net loss
|
|
$
|
(73,519)
|
|
|
|
|
|
|
|
|
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-service defined benefit income
|
|
|
(12,244)
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
498
|
|
|
|
|
|
|
|
|
|
|
Interest expense and other, net
|
|
|
39,053
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
(46,212)
|
|
|
$
|
39,484
|
|
|
$
|
(13,515)
|
|
|
$
|
(72,181)
|
|
Loss on sales of assets & businesses, net
|
|
|
58,682
|
|
|
|
—
|
|
|
|
—
|
|
|
|
58,682
|
|
Amortization of acquired contract liabilities
|
|
|
(3,547)
|
|
|
|
(3,493)
|
|
|
|
(54)
|
|
|
|
—
|
|
Depreciation and amortization
|
|
|
20,515
|
|
|
|
8,719
|
|
|
|
10,989
|
|
|
|
807
|
|
Adjusted Earnings
(Losses) before Interest, Taxes,
Depreciation and Amortization, and Pension
("Adjusted EBITDAP"), as historically
presented
|
|
$
|
29,438
|
|
|
$
|
44,710
|
|
|
$
|
(2,580)
|
|
|
$
|
(12,692)
|
|
Share-based
compensation
|
|
|
3,615
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,615
|
|
Adjusted Earnings
(Losses) before Interest, Taxes,
Depreciation and Amortization, and Pension
("Adjusted EBITDAP")
|
|
$
|
33,053
|
|
|
$
|
44,710
|
|
|
$
|
(2,580)
|
|
|
$
|
(9,077)
|
|
Net
sales
|
|
$
|
466,833
|
|
|
$
|
301,823
|
|
|
$
|
165,306
|
|
|
$
|
(296)
|
|
Adjusted EBITDAP margin, as historically presented
|
|
|
6.4
|
%
|
|
|
15.0
|
%
|
|
|
(1.6)
|
%
|
|
n/a
|
|
Adjusted EBITDAP margin
|
|
|
7.1
|
%
|
|
|
15.0
|
%
|
|
|
(1.6)
|
%
|
|
n/a
|
|
|
|
Year Ended March 31, 2021
|
|
|
|
|
|
|
Segment Data
|
|
Adjusted Earnings before Interest, Taxes,
Depreciation,
Amortization, and
Pension (EBITDAP):
|
|
Total
|
|
|
Systems &
Support
|
|
|
Aerospace
Structures
|
|
|
Corporate/
Eliminations*
|
|
Net loss
|
|
$
|
(450,910)
|
|
|
|
|
|
|
|
|
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-service defined benefit income
|
|
|
(49,519)
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
2,881
|
|
|
|
|
|
|
|
|
|
|
Interest expense and other, net
|
|
|
171,397
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
(326,151)
|
|
|
$
|
113,517
|
|
|
$
|
(267,702)
|
|
|
$
|
(171,966)
|
|
Loss on sales of assets & businesses, net
|
|
|
104,702
|
|
|
|
—
|
|
|
|
—
|
|
|
|
104,702
|
|
Amortization of acquired contract liabilities
|
|
|
(38,564)
|
|
|
|
(15,062)
|
|
|
|
(23,502)
|
|
|
|
—
|
|
Impairment of rotable inventory
|
|
|
23,689
|
|
|
|
23,689
|
|
|
|
—
|
|
|
|
—
|
|
Depreciation and amortization ^
|
|
|
345,716
|
|
|
|
33,549
|
|
|
|
308,708
|
|
|
|
3,459
|
|
Adjusted Earnings
(Losses) before Interest, Taxes,
Depreciation and Amortization, and Pension
("Adjusted EBITDAP"), as historically
presented
|
|
$
|
109,392
|
|
|
$
|
155,693
|
|
|
$
|
17,504
|
|
|
$
|
(63,805)
|
|
Share-based compensation
|
|
|
12,701
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12,701
|
|
Adjusted Earnings
(Losses) before Interest, Taxes,
Depreciation and Amortization, and Pension
("Adjusted EBITDAP")
|
|
$
|
122,093
|
|
|
$
|
155,693
|
|
|
$
|
17,504
|
|
|
$
|
(51,104)
|
|
Net
sales
|
|
$
|
1,869,719
|
|
|
$
|
1,060,001
|
|
|
$
|
814,371
|
|
|
$
|
(4,653)
|
|
Adjusted EBITDAP margin, as historically presented
|
|
|
6.0
|
%
|
|
|
14.9
|
%
|
|
|
2.2
|
%
|
|
n/a
|
|
Adjusted EBITDAP margin
|
|
|
6.7
|
%
|
|
|
14.9
|
%
|
|
|
2.2
|
%
|
|
n/a
|
|
^ includes long-lived
asset impairment charge in the first quarter of fiscal
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
(Continued)
FINANCIAL DATA
(UNAUDITED)
TRIUMPH GROUP, INC. AND
SUBSIDIARIES
(dollars in thousands, except per share
data)
Non-GAAP Financial Measure
Disclosures (continued)
Adjusted income from continuing operations, before income taxes,
adjusted income from continuing operations and adjusted income from
continuing operations per diluted share, before non-recurring costs
have been provided for consistency and comparability. These
measures should not be considered in isolation or as alternatives
to income from continuing operations before income taxes, income
from continuing operations and income from continuing operations
per diluted share presented in accordance with GAAP. The
following tables reconcile income from continuing operations before
income taxes, income from continuing operations, and income from
continuing operations per diluted share, before non-recurring
costs.
|
|
Three Months Ended
March 31, 2022
|
|
|
|
Pre-Tax
|
|
|
After-Tax
|
|
|
Diluted EPS
|
|
Loss from continuing
operations - GAAP
|
|
$
|
(9,758)
|
|
|
$
|
(10,575)
|
|
|
$
|
(0.16)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Gain on sale of assets
and businesses, net
|
|
|
(4,335)
|
|
|
|
(4,335)
|
|
|
|
(0.07)
|
|
Restructuring costs
(cash based)
|
|
|
6,264
|
|
|
|
6,264
|
|
|
|
0.10
|
|
Restructuring costs
(non-cash - accelerated depreciation)
|
|
|
2,308
|
|
|
|
2,308
|
|
|
|
0.04
|
|
Pension
charges
|
|
|
31,959
|
|
|
|
31,959
|
|
|
|
0.49
|
|
Adjusted income from
continuing operations - non-GAAP*
|
|
$
|
26,438
|
|
|
$
|
25,621
|
|
|
$
|
0.39
|
|
* Differences due to
rounding
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
March 31, 2022
|
|
|
|
Pre-Tax
|
|
|
After-Tax
|
|
|
Diluted EPS
|
|
Loss from continuing
operations - GAAP
|
|
$
|
(37,835)
|
|
|
$
|
(42,758)
|
|
|
$
|
(0.66)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Loss on sale of assets
and businesses, net
|
|
|
9,294
|
|
|
|
9,294
|
|
|
|
0.14
|
|
Restructuring costs
(cash based)
|
|
|
19,295
|
|
|
|
19,295
|
|
|
|
0.30
|
|
Restructuring costs
(non-cash - long-lived asset impairment)
|
|
|
2,308
|
|
|
|
2,308
|
|
|
|
0.04
|
|
Pension
charges
|
|
|
52,005
|
|
|
|
52,005
|
|
|
|
0.80
|
|
Debt extinguishment
loss
|
|
|
11,624
|
|
|
|
11,624
|
|
|
|
0.18
|
|
Adjusted income from
continuing operations - non-GAAP*
|
|
$
|
56,691
|
|
|
$
|
51,768
|
|
|
$
|
0.79
|
|
* Differences due to
rounding
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2021
|
|
|
|
Pre-Tax
|
|
|
After-Tax
|
|
|
Diluted EPS
|
|
Loss from continuing
operations - GAAP
|
|
$
|
(73,021)
|
|
|
$
|
(73,519)
|
|
|
$
|
(1.27)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Loss on sale of assets
and businesses, net
|
|
|
58,682
|
|
|
|
58,682
|
|
|
|
1.00
|
|
Restructuring
costs
|
|
|
20,477
|
|
|
|
20,477
|
|
|
|
0.35
|
|
Adjusted income from
continuing operations - non-GAAP*
|
|
$
|
6,138
|
|
|
$
|
5,640
|
|
|
|
0.10
|
|
* Differences due to
rounding
|
|
|
|
|
|
|
|
|
|
(Continued)
FINANCIAL DATA
(UNAUDITED)
TRIUMPH GROUP, INC. AND
SUBSIDIARIES
(dollars in thousands, except per share
data)
Non-GAAP Financial Measure
Disclosures (continued)
|
|
Year Ended
March 31, 2021
|
|
|
|
Pre-Tax
|
|
|
After-Tax
|
|
|
Diluted EPS
|
|
Loss from continuing
operations - GAAP
|
|
$
|
(448,029)
|
|
|
$
|
(450,910)
|
|
|
$
|
(8.55)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Loss on sale of assets
and businesses, net
|
|
|
104,702
|
|
|
|
104,702
|
|
|
|
1.99
|
|
Impairment of
long-lived assets
|
|
|
252,382
|
|
|
|
252,382
|
|
|
|
4.79
|
|
Impairment of rotable
assets
|
|
|
23,689
|
|
|
|
23,689
|
|
|
|
0.45
|
|
Restructuring
costs
|
|
|
53,224
|
|
|
|
53,224
|
|
|
|
1.01
|
|
Refinancing
costs
|
|
|
15,305
|
|
|
|
15,305
|
|
|
|
0.29
|
|
Adjusted income from
continuing operations - non-GAAP*
|
|
$
|
1,273
|
|
|
$
|
(1,608)
|
|
|
$
|
(0.03)
|
|
* Differences due to
rounding
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income is defined as GAAP Operating Income,
less expenses/gains associated with the Company's transformation,
such as restructuring expenses, gains/losses on divestitures,
impairments of goodwill and other assets. Management believes that
this is useful in evaluating operating performance, but this
measure should not be used in isolation. The following table
reconciles our Operating income to Adjusted Operating income as
noted above.
|
|
Three Months Ended
March 31,
|
|
|
Year Ended
March 31,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Operating income (loss)
- GAAP
|
|
$
|
38,797
|
|
|
$
|
(46,212)
|
|
|
$
|
104,277
|
|
|
$
|
(326,151)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on sale of
assets and businesses, net
|
|
|
(4,335)
|
|
|
|
58,682
|
|
|
|
9,294
|
|
|
|
104,702
|
|
Impairment of
long-lived assets
|
|
|
2,308
|
|
|
|
—
|
|
|
|
2,308
|
|
|
|
252,382
|
|
Impairment of rotable
inventory
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
23,689
|
|
Restructuring costs
(cash and non-cash)
|
|
|
6,264
|
|
|
|
20,477
|
|
|
|
19,295
|
|
|
|
53,224
|
|
Adjusted operating
income - non-GAAP
|
|
$
|
43,034
|
|
|
$
|
32,947
|
|
|
$
|
135,174
|
|
|
$
|
107,846
|
|
Cash provided by operations, is provided for consistency and
comparability. We also use free cash flow as a key factor in
planning for and consideration of strategic acquisitions and the
repayment of debt. This measure should not be considered in
isolation, as a measure of residual cash flow available for
discretionary purposes, or as an alternative to operating results
presented in accordance with GAAP. The following table reconciles
cash provided by operations to free cash flow.
|
|
Three Months Ended
March 31,
|
|
|
Fiscal Year Ended
March 31,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
Cash provided by (used
in) operating activities
|
|
$
|
32,965
|
|
|
$
|
22,752
|
|
|
$
|
(137,016)
|
|
|
$
|
(173,119)
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(3,843)
|
|
|
|
(6,190)
|
|
|
|
(19,660)
|
|
|
|
(25,178)
|
|
|
Free cash flow
(use)
|
|
$
|
29,122
|
|
|
$
|
16,562
|
|
|
$
|
(156,676)
|
|
|
$
|
(198,297)
|
|
|
(Continued)
FINANCIAL DATA
(UNAUDITED)
TRIUMPH GROUP, INC. AND
SUBSIDIARIES
(dollars in thousands, except per share
data)
Non-GAAP Financial Measure
Disclosures (continued)
Fiscal 2023 outlook includes cash used in operations, core cash
from operations and core free cash flow. We use core cash from
operations and core free cash flow to measure performance of our
continuing operations. The following table reconciles cash used in
operations to core cash flow from operations and core free cash
flow.
|
|
|
|
|
|
Fiscal Year 2023
Cash Flow Guidance Range
|
|
|
|
|
|
|
|
($ in
millions)
|
|
Cash used in
operations
|
|
|
|
|
|
$
|
(40.0)
|
|
-
|
$
|
(30.0)
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Non-core cash
use^
|
|
|
|
|
|
$
|
(70.0)
|
|
-
|
$
|
(75.0)
|
|
Core cash provided by
operations
|
|
|
|
|
|
$
|
30.0
|
|
-
|
$
|
45.0
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
|
|
|
$
|
(30.0)
|
|
-
|
$
|
(30.0)
|
|
Core free cash
flow
|
|
|
|
|
|
$
|
—
|
|
-
|
$
|
15.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Excludes:
|
|
|
|
|
|
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Liquidation of customer
advances
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|
|
|
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|
~$104.0
|
|
^ Non-core cash use estimate includes remaining cash related to
the exit or sale of legacy structures facilities and programs.
View original
content:https://www.prnewswire.com/news-releases/triumphs-fourth-quarter-fiscal-2022-results-demonstrate-improving-profitability-and-cash-flow-provides-fiscal-2023-guidance-301549768.html
SOURCE Triumph Group