Triumph Group Beats Earnings - Analyst Blog
May 02 2013 - 6:20AM
Zacks
Triumph Group Inc.
(TGI) reported fourth quarter of fiscal 2013 results that ended Mar
31, 2013. Adjusted earnings from continuing operations of $1.68 per
share surpassed the Zacks Consensus Estimate of $1.59 by 5.7% and
also increased 7.0% from the year-earlier adjusted profit of
$1.57.
Adjusted income from continuing operations came in at $6.21 per
share in fiscal year 2013, which climbed nearly 24% from $5.01
posted in fiscal year 2012.
During the quarter as well as full year, the company registered
strong results across all its business segments. Apart from
completing two important acquisitions – Embee Inc. and Triumph
Engine Control Systems (previously known as Goodrich Pump &
Engine Control Systems) from United Technologies
Corp. (UTX) – Triumph offloaded two of its Aftermarket
Services’ Instruments Companies. These acquisitions are expected to
contribute significantly to revenue going forward.
Revenue
In the reported quarter, net sales inched up 4.2% year over year to
$986.3 million, of which organic growth accounted for 2%. The
reported figure also beat the Zacks Consensus Estimate of $950.0
million.
Segment-wise, sales from Aerostructures surged to $720.7 million
from $714.2 million in the prior-year comparable quarter, the
growth being entirely organic. Aerospace Systems revenue grew 21.4%
year over year to $184.1 million, while Aftermarket Services
increased marginally to $83.9 million from $83.1 million in the
year-ago quarter.
Full year fiscal 2013 top line grew 8.6% year over year to $3,702.7
million, of which organic growth was 8%.
Margins
Operating income in the fiscal fourth quarter plummeted 38.4% to
$134.4 million from $183.2 million in the year-ago quarter.
Operating margin decreased to 11.5% in the reported quarter from
19.4% in the fiscal fourth quarter of 2012.
On a segmental basis, Aerostructures reported a 6.8% decline in
operating income, to settle at $110.9 million. However, Aerospace
Systems’ operating income grew 26.5% to $33.4 million. Also,
Aftermarket Services displayed a rise of 18.2% to reach $13.0
million.
For fiscal 2013, the company’s operating income climbed 3.2% year
over year to $531.2 million. All three business segments at Triumph
Group executed well and delivered year-over-year operating margin
expansion.
Balance Sheet
Exiting the fiscal fourth quarter, Triumph’s cash and cash
equivalents were $32.0 million compared with $29.7 million at the
end of the prior-year quarter. Long-term debt (including the
current portion) was up 14.8% to $1,329.9 million from $1,158.9
million in the prior year. The debt-to-capitalization ratio in the
reported quarter stood at 39.4%.
Cash Flow
Cash from operations, before pension contributions, was $453.2
million in fiscal 2013; up from $349.1 million in the year-ago
period. Capital expenditures climbed to $142.8 million during the
year from $94.0 million in the year-ago quarter.
Guidance
For fiscal year 2014, the company expects sales in the range of
$3.8 billion to $4.0 billion and earnings per share from continuing
operations of $5.65 to $5.75 per diluted share. Adjusted earnings
per share from continuing operations for fiscal year 2014 are
expected in a band of $6.30 to $6.40 per diluted share.
Zacks Rank
Triumph carries a Zacks Rank #2 (Buy). Other aviation companies
like B/E Aerospace Inc. (BEAV) with a Zacks Rank
#2 (Buy) and Elbit Systems Ltd. (ESLT) with a
Zacks Rank #1 (Strong Buy) are also worth considering.
B/E AEROSPACE (BEAV): Free Stock Analysis Report
ELBIT SYSTEMS (ESLT): Free Stock Analysis Report
TRIUMPH GRP INC (TGI): Free Stock Analysis Report
UTD TECHS CORP (UTX): Free Stock Analysis Report
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