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:











Liquidation of customer advances






~$104.0


^ Non-core cash use estimate includes remaining cash related to the exit or sale of legacy structures facilities and programs.

 

Cision 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

Copyright 2022 PR Newswire

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