CLEVELAND, May 11, 2021 /PRNewswire/ -- TransDigm Group
Incorporated (NYSE: TDG), a leading global designer, producer and
supplier of highly engineered aircraft components, today reported
results for the second quarter ended April 3, 2021, which were
significantly impacted by the COVID-19 pandemic.
Second quarter highlights include:
- Net sales of $1,194 million, down
17.3% from $1,443 million in the
prior year's quarter;
- Income from continuing operations of $105 million;
- Earnings per share from continuing operations of $1.79;
- EBITDA As Defined margin of 43.5%, representing sequential
improvement;
- EBITDA As Defined of $519
million;
- Adjusted earnings per share of $2.58; and
- Positive operating cash flow generation of $98 million.
Fiscal 2021 financial guidance remains suspended at this
time.
Quarter-to-Date Results
Net sales for the quarter declined 17.3%, or $249 million, to $1,194
million from $1,443 million in
the comparable quarter a year ago. Acquisition sales growth over
the comparable quarter a year ago was $43
million, primarily attributable to Cobham Aero
Connectivity.
Income from continuing operations for the quarter was
$105 million, a decrease of 67.5%
compared to $323 million in the
comparable quarter a year ago. The decrease in income from
continuing operations primarily reflects the decline in net sales
described above, along with higher one-time refinancing costs,
interest expense, COVID-19 restructuring costs and effective tax
rate, partially offset by a gain recorded on the settlement of an
insurance claim.
Adjusted net income for the quarter decreased 48.3% to
$151 million, or $2.58 per share, from $292
million, or $5.10 per share,
in the comparable quarter a year ago.
EBITDA for the quarter decreased 29.8% to $464 million from $661
million for the comparable quarter a year ago. EBITDA As
Defined for the period decreased 23.1% to $519 million compared with $675 million in the comparable quarter a year
ago. EBITDA As Defined as a percentage of net sales for the quarter
was 43.5%.
"The commercial aerospace industry has continued to show signs
of recovery in recent months with the distribution of the COVID-19
vaccine and increasing air traffic, especially in certain domestic
markets. We also saw another quarter of strong sequential
improvement in our commercial bookings. These trends are
encouraging and although the pace of the recovery is uncertain, we
remain ready to meet the demand as it returns," stated Kevin Stein, TransDigm Group's President and
Chief Executive Officer. "Additionally, I am very pleased that we
continue to sequentially expand our EBITDA As Defined margin as a
result of careful management of our cost structure and focus on our
operating strategy in this challenging commercial environment."
During the quarter, TransDigm completed the acquisition of
Cobham Aero Connectivity ("CAC") for an enterprise value of
$965 million, with the majority of
the acquisition first closing on January 5,
2021, and the remainder (a Finland-based facility) completing on
February 12, 2021. CAC is a leading
provider of highly engineered antennas and radios for the aerospace
end market.
On March 1, 2021, TransDigm
announced the sale of its ScioTeq and TREALITY Simulation Visual
Systems businesses to OpenGate Capital for approximately
$200 million. ScioTeq and TREALITY
were acquired by TransDigm in March
2019 as part of the Esterline Technologies acquisition. The
sale is expected to be completed during the third quarter of fiscal
2021.
Financing Activity Subsequent to the Quarter
On April 21, 2021, TransDigm
successfully completed a private offering of $750 million of 4.875% senior subordinated notes
due 2029. TransDigm expects to use the net proceeds from the
offering, plus cash on hand, to redeem all of its $750 million of outstanding 6.50% senior
subordinated notes due 2025.
Year-to-Date Results
Net sales for the twenty-six week period ended April 3, 2021 declined 20.9%, or $607 million, to $2,301
million from $2,908 million in
the comparable period a year ago. Acquisition sales growth over the
comparable period a year ago was $43
million, primarily attributable to Cobham Aero
Connectivity.
Income from continuing operations for the twenty-six week period
ended April 3, 2021 was $155 million, a decrease of 72.1% compared to
$556 million in the comparable period
a year ago. The decrease in income from continuing operations
primarily reflects the decline in net sales described above, along
with higher COVID-19 restructuring costs, interest expense and
non-cash stock compensation expense, partially offset by a gain
recorded on the settlement of an insurance claim.
GAAP earnings per share were reduced in fiscal 2021 and 2020 by
$1.24 per share and $3.22 per share, respectively, as a result of
dividend equivalent payments made during each year. As a reminder,
GAAP earnings per share are reduced when TransDigm makes dividend
equivalent payments pursuant to the Company's stock option plans.
These dividend equivalent payments are made during the Company's
first fiscal quarter each year and also upon payment of any special
dividends.
Adjusted net income for the twenty-six week period ended
April 3, 2021 decreased 53.7% to
$266 million, or $4.55 per share, from $575
million, or $10.03 per share,
in the comparable period a year ago.
EBITDA for the twenty-six week period ended April 3, 2021 decreased 33.8% to $842 million from $1,271
million for the comparable period a year ago. EBITDA As
Defined for the period decreased 26.8% to $993 million compared with $1,356 million in the comparable quarter a year
ago. EBITDA As Defined as a percentage of net sales for the current
period was 43.2%.
Please see the attached tables for a reconciliation of income
from continuing operations 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 2021 Outlook
Given the considerable uncertainty around the extent and
duration of business disruptions related to the COVID-19 pandemic,
and how that will continue to impact operations, the Company will
not provide fiscal year 2021 guidance at this time.
Earnings Conference Call
TransDigm Group will host a conference call for investors and
security analysts on May 11, 2021, beginning at 11:00 a.m., Eastern Time. To join the call, dial
(833) 397-0943 and enter the passcode 5094886. International
callers should dial (720) 405-3217 and use the same passcode. 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 one week by
dialing (855) 859-2056 and entering the passcode 5094886.
International callers should dial (404) 537-3406 and use the same
passcode.
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, batteries and chargers, engineered latching
and locking devices, engineered rods, engineered connectors and
elastomer sealing solutions, databus and power controls, cockpit
security components and systems, specialized and advanced cockpit
displays, engineered audio, radio and antenna systems, specialized
lavatory components, seat belts and safety restraints, engineered
and customized interior surfaces and related components, advanced
sensor products, switches and relay panels, thermal protection and
insulation, lighting and control technology, 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 recorded as corporate expenses, including
non-cash compensation charges incurred in connection with TransDigm
Group's stock incentive plans, restructuring costs related to
TransDigm Group's cost reduction measures in response to the
COVID-19 pandemic, foreign currency gains and losses,
acquisition-integration costs, acquisition transaction-related
expenses, and refinancing costs. TransDigm Group defines adjusted
net income as net income plus purchase accounting backlog
amortization expense, effects from the sale on businesses, non-cash
compensation charges incurred in connection with TransDigm Group's
stock incentive plans, restructuring costs related to TransDigm
Group's cost reduction measures in response to the COVID-19
pandemic, foreign currency gains and losses,
acquisition-integration costs, acquisition transaction-related
expenses, and refinancing costs. 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 U.S. 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 U.S. 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 U.S. 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 2021 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
that could cause TransDigm Group's 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 impact that
the COVID-19 pandemic has on the TransDigm Group's business,
results of operations, financial condition and liquidity; the
sensitivity of TransDigm Group's business to the number of flight
hours that its customers' planes spend aloft and its customers'
profitability, both of which are affected by general economic
conditions; future geopolitical or other worldwide events;
cyber-security threats and natural disasters; TransDigm Group's
reliance on certain customers; the U.S. defense budget and risks
associated with being a government supplier including government
audits and investigations; failure to maintain government or
industry approvals; failure to complete or successfully integrate
acquisitions; TransDigm Group's indebtedness; potential
environmental liabilities; liabilities arising in connection with
litigation; increases in raw material costs, taxes and labor costs
that cannot be recovered in product pricing; risks and costs
associated with TransDigm Group's international sales and
operations; 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 for the fiscal year ended September 30, 2020 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:
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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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|
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CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
FOR THE THIRTEEN
AND TWENTY-SIX WEEK PERIODS ENDED
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Table
1
|
APRIL 03, 2021 AND
MARCH 28, 2020
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(Amounts in
millions, except per share amounts)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Thirteen Week
Periods Ended
|
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Twenty-Six Week
Periods Ended
|
|
|
April 3,
2021
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March 28,
2020
|
|
April 3,
2021
|
|
March 28,
2020
|
NET SALES
|
|
$
|
1,194
|
|
|
$
|
1,443
|
|
|
$
|
2,301
|
|
|
$
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2,908
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COST OF
SALES
|
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602
|
|
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625
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|
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1,169
|
|
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1,288
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GROSS
PROFIT
|
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592
|
|
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818
|
|
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1,132
|
|
|
1,620
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SELLING AND
ADMINISTRATIVE EXPENSES
|
|
162
|
|
|
180
|
|
|
358
|
|
|
381
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|
AMORTIZATION OF
INTANGIBLE ASSETS
|
|
36
|
|
|
46
|
|
|
65
|
|
|
86
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INCOME FROM
OPERATIONS
|
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394
|
|
|
592
|
|
|
709
|
|
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1,153
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|
INTEREST
EXPENSE—NET
|
|
268
|
|
|
252
|
|
|
535
|
|
|
501
|
|
REFINANCING
COSTS
|
|
24
|
|
|
3
|
|
|
24
|
|
|
26
|
|
OTHER
INCOME
|
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(28)
|
|
|
—
|
|
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(33)
|
|
|
(3)
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INCOME FROM
CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
130
|
|
|
337
|
|
|
183
|
|
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629
|
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INCOME TAX
PROVISION
|
|
25
|
|
|
14
|
|
|
28
|
|
|
73
|
|
INCOME FROM
CONTINUING OPERATIONS
|
|
105
|
|
|
323
|
|
|
155
|
|
|
556
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(LOSS) INCOME FROM
DISCONTINUED OPERATIONS, NET OF TAX
|
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—
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|
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(4)
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—
|
|
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68
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NET INCOME
|
|
105
|
|
|
319
|
|
|
155
|
|
|
624
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LESS: NET INCOME
ATTRIBUTABLE TO NONCONTROLLING INTERESTS
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(1)
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—
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(1)
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(1)
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NET INCOME
ATTRIBUTABLE TO TD GROUP
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$
|
104
|
|
|
$
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319
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|
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$
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154
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|
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$
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623
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NET INCOME APPLICABLE
TO TD GROUP COMMON STOCKHOLDERS
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$
|
104
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|
|
$
|
319
|
|
|
$
|
81
|
|
|
$
|
438
|
|
Earnings per share
attributable to TD Group common stockholders:
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|
|
|
|
|
|
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Earnings per share
from continuing operations—basic and diluted
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$
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1.79
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|
|
$
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5.63
|
|
|
$
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1.40
|
|
|
$
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6.45
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|
(Loss) Earnings per
share from discontinued operations—basic and diluted
|
|
—
|
|
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(0.07)
|
|
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—
|
|
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1.18
|
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Earnings per
share
|
|
$
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1.79
|
|
|
$
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5.56
|
|
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$
|
1.40
|
|
|
$
|
7.63
|
|
Cash dividends paid
per common share
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
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$
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32.50
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Weighted-average
shares outstanding:
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|
|
|
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Basic and
diluted
|
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58.4
|
|
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57.4
|
|
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58.4
|
|
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57.4
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TRANSDIGM GROUP
INCORPORATED
|
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SUPPLEMENTAL
INFORMATION - RECONCILIATION OF EBITDA,
|
|
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EBITDA AS DEFINED
TO INCOME FROM CONTINUING OPERATIONS
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|
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FOR THE THIRTEEN
AND TWENTY-SIX WEEK PERIODS ENDED
|
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Table
2
|
APRIL 03, 2021 AND
MARCH 28, 2020
|
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(Amounts in
millions, except per share amounts)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
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Thirteen Week
Periods Ended
|
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Twenty-Six Week
Periods Ended
|
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April 3,
2021
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March 28,
2020
|
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April 3,
2021
|
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March 28,
2020
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Income from
continuing operations
|
|
$
|
105
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|
|
$
|
323
|
|
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$
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155
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$
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556
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Adjustments:
|
|
|
|
|
|
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Depreciation and
amortization expense
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66
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|
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72
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|
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124
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|
|
141
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Interest expense,
net
|
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268
|
|
|
252
|
|
|
535
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|
|
501
|
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Income tax
provision
|
|
25
|
|
|
14
|
|
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28
|
|
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73
|
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EBITDA
|
|
464
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|
|
661
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|
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842
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|
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1,271
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Adjustments:
|
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|
|
|
|
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Acquisition-related
expenses and adjustments (1)
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16
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|
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9
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|
|
19
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|
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16
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|
Non-cash stock
compensation expense (2)
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|
21
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|
|
11
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|
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70
|
|
|
37
|
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Refinancing costs
(3)
|
|
24
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|
|
3
|
|
|
24
|
|
|
26
|
|
COVID-19 pandemic
restructuring costs (4)
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|
18
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|
|
1
|
|
|
39
|
|
|
1
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|
Other, net
(5)
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(24)
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|
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(10)
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(1)
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|
5
|
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Gross Adjustments to
EBITDA
|
|
55
|
|
|
14
|
|
|
151
|
|
|
85
|
|
EBITDA As
Defined
|
|
$
|
519
|
|
|
$
|
675
|
|
|
$
|
993
|
|
|
$
|
1,356
|
|
EBITDA As Defined,
Margin (6)
|
|
43.5
|
%
|
|
46.8
|
%
|
|
43.2
|
%
|
|
46.6
|
%
|
|
|
(1)
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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.
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(2)
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Represents the
compensation expense recognized by TD Group under our stock
incentive plans.
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(3)
|
Represents costs
expensed related to debt financing activities, including new
issuances, extinguishments, refinancings and amendments to existing
agreements.
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(4)
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Represents
restructuring costs related to the Company's cost reduction
measures in response to the COVID-19 pandemic ($17 million and $36
million for the thirteen and twenty-six week periods ended April 3,
2021, respectively, and $1 million for the thirteen and twenty-six
week periods ended March 28, 2020). These were costs related to the
Company's actions to reduce its workforce and consolidate certain
facilities to align with customer demand. This also includes $1
million and $3 million for the thirteen and twenty-six week periods
ended April 3, 2021, respectively, of incremental costs related to
the pandemic that are not expected to recur once the pandemic has
subsided and are clearly separable from normal operations (e.g.,
additional cleaning and disinfecting of facilities by contractors
above and beyond normal requirements, personal protective
equipment, etc.).
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(5)
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Primarily represents
the gain on insurance proceeds from the Leach International Europe
fire, foreign currency transaction gain or loss, payroll
withholding taxes related to special dividend and dividend
equivalent payments and stock option exercises, non-service related
pension costs, deferred compensation, gain or loss on sale of fixed
assets and gain or loss on sale of businesses.
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(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
AND TWENTY-SIX WEEK PERIODS ENDED
|
|
Table
3
|
APRIL 03, 2021 AND
MARCH 28, 2020
|
|
(Amounts in
millions, except per share amounts)
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Thirteen Week
Periods Ended
|
|
Twenty-Six Week
Periods Ended
|
|
|
April 3,
2021
|
|
March 28,
2020
|
|
April 3,
2021
|
|
March 28,
2020
|
Reported Earnings
Per Share
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
$
|
105
|
|
|
$
|
323
|
|
|
$
|
155
|
|
|
$
|
556
|
|
Less: Net income
attributable to noncontrolling interests
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
(1)
|
|
Net income from
continuing operations attributable to TD Group
|
|
104
|
|
|
323
|
|
|
154
|
|
|
555
|
|
Less: Special
dividends declared or paid on participating securities, including
dividend equivalent payments
|
|
—
|
|
|
—
|
|
|
(73)
|
|
|
(185)
|
|
(Loss) income from
discontinued operations, net of tax
|
|
—
|
|
|
(4)
|
|
|
—
|
|
|
68
|
|
Net income applicable
to TD Group common stockholders - basic and diluted
|
|
$
|
104
|
|
|
$
|
319
|
|
|
$
|
81
|
|
|
$
|
438
|
|
Weighted-average
shares outstanding under the two-class method
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding
|
|
54.8
|
|
|
53.8
|
|
|
54.7
|
|
|
53.7
|
|
Vested options deemed
participating securities
|
|
3.6
|
|
|
3.6
|
|
|
3.7
|
|
|
3.7
|
|
Total shares for
basic and diluted earnings per share
|
|
58.4
|
|
|
57.4
|
|
|
58.4
|
|
|
57.4
|
|
Earnings per share
from continuing operations—basic and diluted
|
|
$
|
1.79
|
|
|
$
|
5.63
|
|
|
$
|
1.40
|
|
|
$
|
6.45
|
|
(Loss) Earnings per
share from discontinued operations—basic and diluted
|
|
—
|
|
|
(0.07)
|
|
|
—
|
|
|
1.18
|
|
Earnings per
share
|
|
$
|
1.79
|
|
|
$
|
5.56
|
|
|
$
|
1.40
|
|
|
$
|
7.63
|
|
Adjusted Earnings
Per Share
|
|
|
|
|
Income from
continuing operations
|
|
$
|
105
|
|
|
$
|
323
|
|
|
$
|
155
|
|
|
$
|
556
|
|
Gross adjustments to
EBITDA
|
|
55
|
|
|
14
|
|
|
151
|
|
|
85
|
|
Purchase accounting
backlog amortization
|
|
4
|
|
|
16
|
|
|
4
|
|
|
28
|
|
Tax adjustment
(1)
|
|
(13)
|
|
|
(61)
|
|
|
(44)
|
|
|
(94)
|
|
Adjusted net
income
|
|
$
|
151
|
|
|
$
|
292
|
|
|
$
|
266
|
|
|
$
|
575
|
|
Adjusted diluted
earnings per share under the two-class method
|
|
$
|
2.58
|
|
|
$
|
5.10
|
|
|
$
|
4.55
|
|
|
$
|
10.03
|
|
Diluted Earnings
Per Share to Adjusted Earnings Per Share
|
|
|
|
|
Diluted earnings per
share from continuing operations
|
|
$
|
1.79
|
|
|
$
|
5.63
|
|
|
$
|
1.40
|
|
|
$
|
6.45
|
|
Adjustments to
diluted earnings per share:
|
|
|
|
|
|
|
|
|
Inclusion of the dividend and dividend equivalent
payments
|
|
—
|
|
|
—
|
|
|
1.24
|
|
|
3.22
|
|
Acquisition-related expenses and adjustments
|
|
0.26
|
|
|
0.35
|
|
|
0.31
|
|
|
0.59
|
|
Non-cash
stock compensation expense
|
|
0.29
|
|
|
0.16
|
|
|
0.94
|
|
|
0.50
|
|
Refinancing costs
|
|
0.32
|
|
|
0.05
|
|
|
0.32
|
|
|
0.35
|
|
Change in income tax
provision due to excess tax benefits on stock
compensation
|
|
(0.02)
|
|
|
(0.95)
|
|
|
(0.19)
|
|
|
(1.19)
|
|
COVID-19
pandemic restructuring costs
|
|
0.24
|
|
|
0.01
|
|
|
0.52
|
|
|
0.01
|
|
Other,
net
|
|
(0.30)
|
|
|
(0.15)
|
|
|
0.01
|
|
|
0.10
|
|
Adjusted earnings per
share
|
|
$
|
2.58
|
|
|
$
|
5.10
|
|
|
$
|
4.55
|
|
|
$
|
10.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For
the thirteen and twenty-six week periods ended April 3, 2021 and
March 28, 2020, the Tax adjustment represents the tax effect of the
adjustments at the applicable effective tax rate, as well as the
impact on the effective tax rate when excluding the excess tax
benefits on stock option exercises. Stock compensation expense is
excluded from adjusted net income and therefore we have excluded
the impact that the excess tax benefits on stock option exercises
have on the effective tax rate for determining adjusted net
income.
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF NET CASH
|
|
|
PROVIDED BY
OPERATING ACTIVITIES TO EBITDA,
|
|
|
EBITDA AS
DEFINED
|
|
|
FOR THE TWENTY-SIX
WEEK PERIODS ENDED
|
|
Table
4
|
APRIL 03, 2021 AND
MARCH 28, 2020
|
|
(Amounts in
millions)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Twenty-Six Week
Periods Ended
|
|
|
April 3,
2021
|
|
March 28,
2020
|
Net cash provided by
operating activities
|
|
$
|
372
|
|
|
$
|
594
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
Changes in assets and
liabilities, net of effects from acquisitions of
businesses
|
|
(9)
|
|
|
148
|
|
Interest expense, net
(1)
|
|
518
|
|
|
485
|
|
Income tax provision -
current
|
|
28
|
|
|
82
|
|
Loss contract
amortization
|
|
27
|
|
|
25
|
|
Non-cash stock
compensation expense (2)
|
|
(70)
|
|
|
(37)
|
|
Refinancing costs
(3)
|
|
(24)
|
|
|
(26)
|
|
EBITDA
|
|
842
|
|
|
1,271
|
|
Adjustments:
|
|
|
|
|
Acquisition-related
expenses and adjustments (4)
|
|
19
|
|
|
16
|
|
Non-cash stock
compensation expense (2)
|
|
70
|
|
|
37
|
|
Refinancing costs
(3)
|
|
24
|
|
|
26
|
|
COVID-19 pandemic
restructuring costs (5)
|
|
39
|
|
|
1
|
|
Other, net
(6)
|
|
(1)
|
|
|
5
|
|
EBITDA As
Defined
|
|
$
|
993
|
|
|
$
|
1,356
|
|
|
(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 costs expensed related
to debt financing activities, including new issuances,
extinguishments, refinancings and amendments to existing
agreements.
|
|
(4)
Represents accounting adjustments to inventory associated with
acquisitions of businesses and product lines that were charged to
cost of sales when 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 restructuring costs
related to the Company's cost reduction measures in response to the
COVID-19 pandemic ($36 million and $1 million for the twenty-six
week periods ended April 3, 2021 and March 28, 2020, respectively).
These were costs related to the Company's actions to reduce its
workforce and consolidate certain facilities to align with customer
demand. This also includes $3 million for the twenty-six week
period ended April 3, 2021 of incremental costs related to the
pandemic that are not expected to recur once the pandemic has
subsided and are clearly separable from normal operations (e.g.,
additional cleaning and disinfecting of facilities by contractors
above and beyond normal requirements, personal protective
equipment, etc.).
|
|
(6) Primarily represents the gain on
insurance proceeds from the Leach International Europe fire,
foreign currency transaction gain or loss, payroll withholding
taxes related to special dividend and dividend equivalent payments
and stock option exercises, non-service related pension costs,
deferred compensation, gain or loss on sale of fixed assets and
gain or loss on sale of businesses.
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
SUPPLEMENTAL
INFORMATION - BALANCE SHEET DATA
|
|
Table
5
|
(Amounts in
millions)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
April 3,
2021
|
|
September 30,
2020
|
Cash and cash
equivalents
|
|
$
|
4,072
|
|
|
$
|
4,717
|
|
Trade accounts
receivable - net
|
|
682
|
|
|
720
|
|
Inventories -
net
|
|
1,240
|
|
|
1,283
|
|
Current portion of
long-term debt
|
|
276
|
|
|
276
|
|
Short-term
borrowings-trade receivable securitization facility
|
|
350
|
|
|
349
|
|
Accounts
payable
|
|
214
|
|
|
218
|
|
Accrued current
liabilities
|
|
740
|
|
|
773
|
|
Long-term
debt
|
|
19,402
|
|
|
19,384
|
|
Total TD Group
stockholders' deficit
|
|
(3,528)
|
|
|
(3,972)
|
|
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