CLEVELAND, Dec. 13, 2010 /PRNewswire-FirstCall/ -- TransDigm
Group Incorporated (NYSE: TDG), a leading global designer, producer
and supplier of highly engineered aircraft components, today issued
its guidance for the fiscal year ending September 30, 2011.
Fiscal 2011 Outlook
Including the acquisition of McKechnie Aerospace which closed on
December 6, 2010, assuming no other
acquisition activity and based upon current market conditions, the
Company expects fiscal 2011 financial performance to be as
follows:
- Revenues are anticipated in the range of $1,160 million to $1,220 million or a mid-point
of $1,190 million compared with
$828 million in fiscal 2010, up 43.8%
year over year;
- EBITDA As Defined is anticipated in the range of $532 million to $562 million or a mid-point of
$547 million compared with
$412 million in fiscal 2010, up 32.9%
year over year;
- Net income is anticipated in the range of $119 million to $141 million or a mid-point of
$130 million compared with
$163 million in fiscal 2010;
- Earnings per share under the "two-class method" are expected to
be in the range of $2.16 to $2.58 per
share on weighted average shares outstanding of 53.5 million or a
mid-point of $2.37 per share compared
with $2.52 per share in fiscal 2010;
and
- Adjusted earnings per share under the "two-class method" are
expected to be in the range of $3.48 to
$3.90 per share on weighted average shares outstanding of
53.5 million or a mid-point of $3.69
per share compared with $3.35 per
share in fiscal 2010, up 10.2% year over year.
"The aerospace market is showing clearer signs of stabilization
as we proceed into fiscal 2011, and we will continue to watch it
closely," stated W. Nicholas Howley,
TransDigm's Group's Chairman and Chief Executive Officer. "We
believe our consistent and proven value-focused strategy will
continue to serve us well as the market recovers and as we
integrate the Semco and McKechnie acquisitions. While we do
not provide forecasts of quarterly earnings, we expect our results
to be stronger in the second half of fiscal year 2011 as the
McKechnie acquisition begins to contribute and the market
improves."
He continued, "Capitalizing on favorable financing market
conditions, we elected to refinance all of our existing debt.
This new capital structure will allow TransDigm to move
forward with consistency and security by extending the maturity
dates by three to four years. Additionally, with the debt
attributable to the McKechnie purchase price, McKechnie is
anticipated to be modestly accretive in fiscal 2011 on an adjusted
basis in spite of an estimated $10.4
million of acquisition related intangible amortization."
Conference Call
TransDigm Group will host a conference call for investors and
security analysts on December 13,
2010, beginning at 11:00 a.m.,
Eastern Time. To join the call, dial (866) 383-8003 and
enter the pass code 99802194. International callers should
dial (617) 597-5330 and use the same pass code. A live audio
webcast can be accessed online at http://www.transdigm.com. 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 (888) 286-8010 and entering the pass code 48662794.
International callers should dial (617) 801-6888 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, aircraft audio systems,
specialized cockpit displays, engineered latching and locking
devices, specialized lavatory components, engineered connectors and
elastomers, rods and locking devices, NiCad
batteries/chargers, and lighting and control technology.
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, 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, 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. 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 a useful indicator 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 and management team in connection with employee
incentive programs and the preparation of its annual budget and
financial projections. 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.
Forward-Looking Statements
Statements in this press release that are not historical facts
are forward-looking statements under the provisions of the Private
Securities Litigation Reform Act of 1995, including expectations of
future performance, profitability, growth and earnings. All
statements other than statements of historical fact that address
activities, events or developments that we expect, believe or
anticipate will or may occur in the future are forward-looking
statements, including, in particular, statements about our plans,
objectives, strategies and prospects regarding, among other things,
our financial condition, results of operations, and business. We
have identified some of these forward-looking statements with words
like "believe," "may," "will," "should," "expect," "intend,"
"plan," "predict," "anticipate," "estimate," or "continue" and
other words and terms of similar meaning. Specifically, statements
contained under the heading "Fiscal 2011 Outlook" constitute
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 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 terrorist attacks; 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; and other 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
any 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:
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Jonathan D. Crandall
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Investor Relations
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(216) 706-2945
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ir@transdigm.com
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TRANSDIGM GROUP
INCORPORATED
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SUPPLEMENTAL
INFORMATION
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Table
1
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(Amounts in thousands, except
per share amounts)
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(Unaudited)
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(Midpoint)
of
Fiscal Year
Ending
September 30,
2011
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Fiscal
Year
Ended
September 30,
2010
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Net Income
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$
130,000
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$
163,445
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Less: Dividends paid
on
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participating
securities
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(3,000)
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(30,313)
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Net income applicable to
common
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stock
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$
127,000
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$
133,132
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Diluted weighted-average shares
outstanding
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53,500
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52,923
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Diluted earnings per
share
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$
2.37
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$
2.52
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Adjustments to diluted earnings
per share:
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Inclusion of the dividend
equivalent payment
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0.06
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0.57
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Non-cash compensation
costs
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0.08
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0.08
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Acquisition and
transaction-related expenses
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0.34
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0.18
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Refinancing
expenses
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0.84
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-
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Adjusted
diluted earnings per share
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$
3.69
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$
3.35
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SOURCE TransDigm Group Incorporated