CLEVELAND, Feb. 7, 2012 /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
31, 2011.
Highlights for the first quarter:
- Net sales of $352.5 million, up
50.9% from $233.6 million;
- EBITDA As Defined of $174.1
million, up 57.5% from $110.6
million;
- Net income of $65.1 million, up
from a net loss of $7.4 million;
- Earnings per share of $1.15, up
from a loss per share of $0.19;
- Adjusted earnings per share of $1.42, up 65.1% from $0.86;
- Upward revision to fiscal 2012 earnings outlook
Net sales for the quarter rose 50.9% to $352.5 million from $233.6
million in the comparable quarter a year ago. Organic
net sales growth of approximately 18.4% was primarily driven by an
increase in sales over the prior year in both the commercial OEM
and aftermarket as well as a modest increase in defense sales. The
acquisitions of McKechnie Aerospace, Talley Actuation, Schneller
and Harco accounted for the balance of the sales increase.
Net income for the quarter rose to $65.1
million, or $1.15 per share,
compared to a net loss of $7.4
million, or $0.19 loss per
share, in the comparable quarter a year ago. The prior quarter
included one-time costs of $46.3
million, net of tax, or $0.87
per share, attributable to the refinancing of the Company's capital
structure to fund the acquisition of McKechnie in the first quarter
of fiscal 2011. The remainder of the increase in net income
primarily reflects the growth in net sales described above, the
strength of our proprietary products and continued productivity
efforts and a favorable tax adjustment. This growth is
partially offset by higher interest expense. Net income for the
first quarter of fiscal 2012 includes acquisition-related and
non-cash compensation costs of $11.4
million, net of tax, or $0.21
per share. In addition to the one-time costs attributable to
the refinancing noted above, the net loss in the year-ago quarter
reflected acquisition-related and non-cash compensation costs of
$6.8 million, net of tax, or
$0.13 per share.
In addition, earnings per share were reduced by $0.06 per share representing dividend equivalent
payments made in the quarter and $0.05 per share in the comparable quarter a year
ago.
Adjusted net income for the quarter rose 66.7% to $76.5 million, or $1.42 per share, from $45.9 million, or $0.86 per share, in the comparable quarter a year
ago.
EBITDA for the quarter increased 439.3% to $163.0 million from $30.2
million for the comparable quarter a year ago. EBITDA
As Defined for the period, increased 57.5% to $174.1 million compared with $110.6 million in the quarter a year ago.
EBITDA As Defined as a percentage of net sales for the
quarter was 49.4%.
As previously announced on January 20,
2012, TransDigm entered into an agreement to acquire AmSafe
Global Holdings, Inc. for approximately $750
million in cash. The price includes substantial tax
benefits to be realized in 2012 and beyond. The acquisition,
subject to review under the Hart-Scott-Rodino Act and other
customary closing conditions, is expected to close before the end
of the second quarter of fiscal year 2012.
"We are pleased with our operating results for the first quarter
of fiscal year 2012," stated W. Nicholas
Howley, TransDigm Group's Chairman and Chief Executive
Officer. "Organically, our total commercial aerospace
revenues were up over 20% and defense revenues were up in the
mid-single-digit percentage range. Our EBITDA As Defined
margin came in strong at 49.4% in spite of some modest dilution
from our recent acquisitions. This performance again reflects our
consistent ability to create intrinsic shareholder value."
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 2012 Outlook
Mr. Howley continued, "The Company is revising the full year
fiscal 2012 guidance to reflect our first quarter results and the
recent acquisition of Harco despite continued uncertainty regarding
various aspects of the aerospace market and worldwide economic
environment."
Assuming no additional acquisitions, the revised guidance is as
follows:
- Net sales are anticipated to be in the range of $1,470 million to $1,510 million (previously in
the range of $1,430 million to $1,470
million) compared with $1,206
million in fiscal 2011;
- EBITDA As Defined is anticipated to be in the range of
$723 million to $743 million
(previously in the range of $705 million to
$725 million) compared with $590
million in fiscal 2011;
- Net income is anticipated to be in the range of $281 million to $299 million (previously in the
range of $269 million to $287
million) compared with $172
million in fiscal 2011;
- Earnings per share are expected to be in the range of
$5.15 to $5.49 per share (previously
in the range of $4.95 to $5.27 per
share) compared with $3.17 per share
in fiscal 2011; and
- Adjusted earnings per share are expected to be in the range of
$5.66 to $6.00 per share (previously
in the range of $5.35 to $5.67 per
share) compared with $4.48 per share
in fiscal 2011.
Conference Call
TransDigm Group will host a conference call for investors and
security analysts on February 7,
2012, beginning at 11:00 a.m.,
Eastern Time. To join the call, dial (866) 761-0748 and
enter the pass code 83639109. International callers should
dial (617) 614-2706 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 (888) 286-8010 and entering the pass code 90117793.
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, NiCad batteries and
chargers, engineered latching and locking devices, rods and locking
devices, engineered connectors and elastomers, cockpit security
components and systems, specialized cockpit displays, aircraft
audio systems, specialized lavatory components, engineered interior
surfaces 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, 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. 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.
Because of these limitations, EBITDA and EBITDA As Defined
should not be considered as measures of discretionary cash
available to us to invest in the growth of our business.
Management compensates for these limitations by not viewing
EBITDA or EBITDA As Defined in isolation and specifically by using
other GAAP measures, such as net income, net sales and operating
profit, to measure our operating performance. Neither EBITDA
nor EBITDA As Defined is a measurement of financial performance
under GAAP, and neither should be considered as an alternative to
net income or cash flow from operations determined in accordance
with GAAP. Our calculation of EBITDA and EBITDA As Defined 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,
including statements under the heading "Fiscal 2012 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 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; potential environmental
liabilities; 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 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 OPERATIONS
|
|
|
|
FOR THE THIRTEEN WEEK PERIODS
ENDED
|
|
Table
1
|
|
DECEMBER 31, 2011 AND JANUARY 1,
2011
|
|
|
(Amounts in thousands, except
per share amounts)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Thirteen
Week
|
|
|
|
|
Periods
Ended
|
|
|
|
|
December
31,
|
|
January
1,
|
|
|
|
|
2011
|
|
2011
|
|
|
|
|
|
|
|
|
NET SALES
|
|
|
$
352,473
|
|
$
233,552
|
|
|
|
|
|
|
|
|
COST OF SALES
|
|
|
152,918
|
|
106,406
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
199,555
|
|
127,146
|
|
|
|
|
|
|
|
|
SELLING AND ADMINISTRATIVE
EXPENSES
|
|
|
41,850
|
|
30,520
|
|
AMORTIZATION OF INTANGIBLE
ASSETS
|
|
|
12,439
|
|
4,277
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
|
145,266
|
|
92,349
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE -
Net
|
|
|
49,061
|
|
32,556
|
|
REFINANCING COSTS
|
|
|
-
|
|
70,730
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING
OPERATIONS
|
|
|
|
|
|
|
BEFORE INCOME
TAXES
|
|
|
96,205
|
|
(10,937)
|
|
|
|
|
|
|
|
|
INCOME TAX PROVISION
(BENEFIT)
|
|
|
31,100
|
|
(3,784)
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING
OPERATIONS
|
|
|
65,105
|
|
(7,153)
|
|
|
|
|
|
|
|
|
LOSS FROM
DISCONTINUED
|
|
|
|
|
|
|
OPERATIONS, NET OF
TAX
|
|
|
-
|
|
(205)
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
|
|
|
$
65,105
|
|
$
(7,358)
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) APPLICABLE TO
COMMON STOCK
|
$
61,806
|
|
$
(10,169)
|
|
|
|
|
|
|
|
|
Net earnings (loss) per
share:
|
|
|
|
|
|
|
Net earnings (loss) per share
from continuing operations -
|
|
|
|
|
|
basic and
diluted
|
|
|
$
1.15
|
|
$
(0.19)
|
|
Net loss per share from
discontinued operations -
|
|
|
|
|
|
|
basic and
diluted
|
|
|
-
|
|
-
|
|
Net earnings (loss) per share
|
|
|
$
1.15
|
|
$
(0.19)
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding:
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
53,882
|
|
53,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSDIGM GROUP
INCORPORATED
|
|
SUPPLEMENTAL INFORMATION -
RECONCILIATION OF EBITDA,
|
|
EBITDA AS DEFINED TO NET INCOME
(LOSS)
|
|
FOR THE THIRTEEN WEEK PERIODS
ENDED
|
|
DECEMBER 31, 2011 AND JANUARY 1,
2011
|
|
(Amounts in
thousands)
|
|
|
|
Table
2
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Thirteen
Week
Periods Ended
|
|
|
|
|
|
|
December
31,
2011
|
|
January
1,
2011
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
65,105
|
|
$
(7,358)
|
|
|
|
|
|
|
|
Less loss from discontinued
operations
|
|
-
|
|
(205)
|
|
|
|
|
|
|
|
Income (loss) from continuing
operations
|
|
65,105
|
|
(7,153)
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
17,782
|
|
8,616
|
|
Interest expense,
net
|
|
49,061
|
|
32,556
|
|
Income tax provision
(benefit)
|
|
31,100
|
|
(3,784)
|
|
|
|
|
|
|
|
EBITDA, excluding discontinued
operations
|
|
163,048
|
|
30,235
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
Acquisition related
expenses (1)
|
|
7,452
|
|
7,746
|
|
Stock option
expense(2)
|
|
3,648
|
|
1,857
|
|
Refinancing costs
(3)
|
|
-
|
|
70,730
|
|
|
|
|
|
|
|
Gross Adjustments to
EBITDA
|
|
11,100
|
|
80,333
|
|
|
|
|
|
|
|
EBITDA As Defined
|
|
$
174,148
|
|
$
110,568
|
|
EBITDA As Defined, Margin
(4)
|
|
49.4%
|
|
47.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 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.
|
|
|
|
(2) Represents the compensation
expense recognized by TD Group under our stock option
plans.
|
|
|
|
(3) Represents costs incurred in
connection with the refinancing in December 2010, including the
premium paid to redeem our 7¾% senior subordinated notes due 2014,
the write-off of debt issue costs and unamortized note premium and
discount and settlement of the interest rate swap agreement and
other expenses.
|
|
|
|
(4) The EBITDA As Defined margin
represents the amount of EBITDA As Defined as a percentage of
sales.
|
|
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
|
|
SUPPLEMENTAL INFORMATION -
RECONCILIATION OF
|
|
Table
3
|
|
REPORTED EARNINGS (LOSS) PER
SHARE TO
|
|
|
|
ADJUSTED EARNINGS PER
SHARE
|
|
|
FOR THE THIRTEEN WEEK PERIODS
ENDED
|
|
|
|
DECEMBER 31, 2011 AND JANUARY 1,
2011
|
|
|
|
(Amounts in thousands, except
per share amounts)
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Thirteen
Week
Periods Ended
|
|
|
|
|
Reported Earnings (Loss) Per
Share
|
|
December
31,
2011
|
|
January
1,
2011
|
|
|
|
|
|
|
|
Net income (loss) from
continuing operations
|
|
$
65,105
|
|
$
(7,153)
|
|
Less: dividends paid
on
|
|
|
|
|
|
participating
securities
|
|
(3,299)
|
|
(2,811)
|
|
|
|
61,806
|
|
(9,964)
|
|
Net loss from discontinued
operations
|
|
-
|
|
(205)
|
|
Net income (loss) applicable to
common
|
|
|
|
|
|
stock - basic and
diluted
|
|
$
61,806
|
|
$
(10,169)
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding under
|
|
|
|
|
|
the two-class method:
(1)
|
|
|
|
|
|
Weighted average common shares
outstanding
|
|
50,431
|
|
49,500
|
|
Vested options deemed
participating securities
|
|
3,451
|
|
3,828
|
|
Total shares for basic and
diluted earnings per share
|
|
53,882
|
|
53,328
|
|
|
|
|
|
|
|
Net earnings (loss) per share
from continuing operations
|
|
|
|
|
|
- basic and
diluted
|
|
$
1.15
|
|
$
(0.19)
|
|
Net loss per share from
discontinued operations
|
|
|
|
|
|
- basic and
diluted
|
|
-
|
|
-
|
|
Net earnings (loss) per
share
|
|
$
1.15
|
|
$
(0.19)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings Per
Share
|
|
|
|
|
|
|
|
|
Net income (loss) from
continuing operations
|
|
$
65,105
|
|
$
(7,153)
|
|
|
|
|
|
|
|
Gross adjustments to
EBITDA
|
|
11,100
|
|
80,333
|
|
Purchase accounting backlog
amortization
|
|
5,687
|
|
762
|
|
Tax adjustment
|
|
(5,427)
|
|
(28,059)
|
|
|
|
|
|
|
|
Adjusted net income
|
|
$
76,465
|
|
$
45,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted earnings per
share under the two-class method
|
$
1.42
|
|
$
0.86
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Application of the two-class
method as compared to the treasury stock method requires the
inclusion of approximately two million additional shares
outstanding for the quarter, which results in dilution of earnings
per share by approximately 3% on a fully diluted basis.
|
|
|
|
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
|
SUPPLEMENTAL INFORMATION -
RECONCILIATION OF
|
|
Table
4
|
|
DILUTED EARNINGS (LOSS) PER
SHARE TO
|
|
ADJUSTED EARNINGS PER
SHARE
|
|
(Amounts in thousands, except
per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen
Week Periods Ended
|
|
|
|
|
|
December
31,
2011
|
|
January
1,
2011
|
|
Income (loss) from continuing
operations
|
|
|
|
$
65,105
|
|
$
(7,153)
|
|
|
|
|
|
|
|
|
|
Less: dividends paid
on
|
|
|
|
|
|
|
participating
securities
|
|
|
(3,299)
|
|
(2,811)
|
|
|
|
|
|
|
|
|
|
Net income (loss) applicable to
common
|
|
|
|
|
|
stock
|
|
|
|
61,806
|
|
(9,964)
|
|
|
|
|
|
|
|
|
|
Less: loss from discontinued
operations
|
|
|
|
-
|
|
(205)
|
|
|
|
|
|
|
|
|
|
Income (loss) applicable to
common stock
|
|
$
61,806
|
|
$
(10,169)
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding
|
|
50,431
|
|
49,500
|
|
|
|
|
|
|
|
|
|
Vested options deemed
participating securities
|
|
3,451
|
|
3,828
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding
|
|
53,882
|
|
53,328
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing
operations
|
|
$
1.15
|
|
$
(0.19)
|
|
|
|
|
|
|
|
|
|
Adjustments to diluted earnings
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinancing
costs
|
|
|
|
-
|
|
0.87
|
|
|
|
|
|
|
|
|
|
Inclusion of the dividend
equivalent payment
|
|
|
|
0.06
|
|
0.05
|
|
|
|
|
|
|
|
|
|
Non-cash compensation
costs
|
|
|
|
0.05
|
|
0.02
|
|
|
|
|
|
|
|
|
|
Acquisition related
expenses
|
|
|
|
0.16
|
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
earnings per share
|
|
|
|
$
1.42
|
|
$
0.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION -
RECONCILIATION OF NET CASH
|
|
Table
5
|
|
PROVIDED BY OPERATING ACTIVITIES
TO EBITDA, EBITDA AS DEFINED
|
|
|
FOR THE THIRTEEN WEEK PERIODS
ENDED
|
|
|
|
|
DECEMBER 31, 2011 AND JANUARY 1,
2011
|
|
|
|
|
|
(Amounts in thousands, except
per share amounts)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Thirteen
Week Periods Ended
|
|
|
|
December
31,
2011
|
|
January
1,
2011
|
|
|
|
|
|
|
|
Net Cash Provided by Operating
Activities
|
|
$
67,699
|
|
$
62,148
|
|
Adjustments:
|
|
|
|
|
|
Changes in assets and
liabilities, net of effects from acquisitions of
businesses
|
7,702
|
|
12,059
|
|
Interest expense - net
(1)
|
|
46,445
|
|
30,472
|
|
Income tax provision -
current
|
|
35,800
|
|
(5,868)
|
|
Non-cash equity
compensation (2)
|
|
(3,648)
|
|
(1,857)
|
|
Excess tax benefit from
exercise of stock options
|
|
9,050
|
|
4,163
|
|
Refinancing costs
(3)
|
|
-
|
|
(70,730)
|
|
|
|
|
|
|
|
EBITDA
|
|
163,048
|
|
30,387
|
|
Adjustments:
|
|
|
|
|
|
Acquisition related
expenses(4)
|
|
7,452
|
|
8,372
|
|
Stock option
expense(5)
|
|
3,648
|
|
1,857
|
|
Refinancing costs
(3)
|
|
-
|
|
70,730
|
|
EBITDA from discontinued
operations
|
|
-
|
|
(778)
|
|
EBITDA As Defined
|
|
$
174,148
|
|
$
110,568
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents interest expense
excluding the amortization of debt issue costs and note premium and
discount.
|
|
|
|
(2) Represents the compensation
expense recognized by TD Group under our stock plans.
|
|
|
|
(3) Represents costs incurred in
connection with the refinancing in December 2010, including the
premium paid to redeem our 7 3/4% senior subordinated notes due
2014, the write-off of debt issue costs and unamortized note
premium and discount, and settlement of the interest rate swap
agreement and other expenses.
|
|
|
|
(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) Represents the compensation
expense recognized by TD Group under our stock option
plans.
|
|
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
|
|
SUPPLEMENTAL INFORMATION -
BALANCE SHEET DATA
|
|
Table
6
|
|
|
(Amounts in
thousands)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
December 31,
2011
|
|
September
30, 2011
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
359,900
|
|
$
376,183
|
|
|
Trade accounts receivable -
Net
|
|
174,698
|
|
189,293
|
|
|
Inventories
|
|
274,173
|
|
265,317
|
|
|
|
|
|
|
|
|
|
Current portion of long-term
debt
|
|
15,500
|
|
15,500
|
|
|
Accounts payable
|
|
48,213
|
|
62,110
|
|
|
Accrued liabilities
|
|
76,775
|
|
120,312
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
3,119,000
|
|
3,122,875
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
887,068
|
|
810,949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE TransDigm Group Incorporated