UPDATES FISCAL 2023 SALES & EARNINGS
GUIDANCE
BERWYN,
Pa., Aug. 3, 2022 /PRNewswire/ -- Triumph
Group, Inc. (NYSE: TGI) ("TRIUMPH" or the "Company") today reported
financial results for its first quarter of fiscal 2023, which ended
June 30, 2022.
First Quarter Fiscal 2023
- Net sales of $349.4 million
- Operating income of $14.7 million
with operating margin of 4%; adjusted operating income of
$32.6 million with adjusted operating
margin of 9%
- Net loss of $10.3 million, or
($0.16) per share; adjusted net
income of $7.5 million, or
$0.12 per diluted share
- Cash flow used in operations of $93.0
million; core cash used in operations of $72.0 million
Fiscal 2023 Guidance
- Net sales of approximately $1.3
billion
- GAAP earnings per diluted share of between $1.51 - $1.71
- Adjusted earnings per diluted share of between $0.28 - $0.48, down
$0.12 due to a reduction in non-cash
pension income
- 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 generated organic
sales growth in our continuing operations driven by improving
commercial OEM and MRO demand." said Dan
Crowley, TRIUMPH's
chairman, president and chief executive officer. "Our actions to
mitigate supply chain constraints and work with our customers and
suppliers to ensure continuity and affordability continue to
differentiate TRIUMPH. With a growing and profitable backlog,
TRIUMPH is well positioned to
benefit from continued strength across nearly all of our end
markets."
Mr. Crowley continued, "Consistent with our strategic plan,
TRIUMPH recently completed the
divestiture of its last remaining large structures operation.
Our first quarter results keep us on track to achieve our full year
objectives, and with our goal to double profitability over fiscal
years 2022 to 2025, driven by improved OEM production rates,
expanded MRO volumes, enhanced pricing from recent contract
extensions and a lower cost structure. We remain focused on
investing in our people, operations, and products for the benefit
of all stakeholders."
First Quarter Fiscal 2023 Overview
Excluding divestitures and exited programs, sales for the first
quarter of fiscal 2023 were up 1% organically from the prior year
period as increases in commercial narrow-body production offset
decreased military rotorcraft volume.
First quarter operating income of $14.7
million includes $0.7 million
of restructuring costs related to our structures facility exits and
$17.2 million reduction of revenue
for consideration payable to customer related to the Stuart
divestiture. Cost of sales benefited from the Aviation
Manufacturing Jobs Protection Program by $5.0 million in the quarter. Net loss for
the first quarter of fiscal 2023 was $10.3
million, or ($0.16) per share
primarily due to the items noted above. On an adjusted basis,
net income was $7.5 million, or
$0.12 per diluted share.
TRIUMPH's results included the
following:
($ millions
except EPS)
|
|
Pre-tax
|
|
|
After-tax
|
|
|
EPS
|
Income from
Continuing Operations - GAAP
|
|
$
|
(8.6)
|
|
|
$
|
(10.3)
|
|
|
$
|
(0.16)
|
Restructuring costs
(cash)
|
|
|
0.7
|
|
|
|
0.7
|
|
|
|
0.01
|
Consideration payable
to customer related to divestiture^
|
|
|
17.2
|
|
|
|
17.2
|
|
|
|
0.26
|
Adjusted Income from
Continuing Operations - non-GAAP *
|
|
$
|
9.3
|
|
|
$
|
7.5
|
|
|
$
|
0.12
|
^ Recorded in net
sales
|
|
|
|
|
|
|
|
|
* Difference due to
rounding
|
|
|
|
|
|
|
|
|
The number of shares used in computing diluted earnings per
share for the first quarter of 2023 was 65.3 million.
Adjusting for the impact of the Stuart divestiture, backlog,
which represents the next 24 months of actual purchase orders with
firm delivery dates or contract requirements, was $1.53 billion, up 7% from the prior year,
primarily on commercial narrow body platforms.
For the first quarter of fiscal 2023, cash flow used in
operations was $93.0 million.
Outlook
The Company's outlook reflects adjustments detailed in the
attached tables.
Based on expected aircraft production rates, and the resulting
demand on each of our facilities, the Company expects net sales for
fiscal 2023 will be approximately $1.3
billion.
The Company expects GAAP fiscal 2023 earnings per diluted share
of $1.51 to $1.71, up $1.11
from prior guidance due to impacts of the Stuart divestiture and
our interim pension re-measurement. The Company expects
adjusted earnings per diluted share of $0.28 - $0.48, down
$0.12 due to a reduction in non-cash
pension income.
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, August 3rd, at
8:30 a.m. (ET) to discuss the first
quarter of fiscal 2023 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 August 3rd to August
10th by calling (877) 344-7529 (Domestic) or (412) 317-0088
(International), passcode #8597845.
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, 2022.
FINANCIAL DATA (UNAUDITED) ON FOLLOWING
PAGES
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH GROUP, INC.
AND SUBSIDIARIES
|
(in thousands,
except per share data)
|
|
|
Three Months
Ended
|
|
|
June
30,
|
CONDENSED STATEMENTS
OF OPERATIONS
|
|
2022
|
|
|
2021
|
Net sales
|
|
$
|
349,384
|
|
|
$
|
396,646
|
Cost of sales
(excluding depreciation shown below)
|
|
|
272,400
|
|
|
|
293,678
|
Selling, general &
administrative
|
|
|
51,745
|
|
|
|
56,251
|
Depreciation &
amortization
|
|
|
9,806
|
|
|
|
15,431
|
Restructuring
costs
|
|
|
699
|
|
|
|
4,485
|
Loss on sale of assets
and businesses, net
|
|
|
—
|
|
|
|
5,969
|
Operating
income
|
|
|
14,734
|
|
|
|
20,832
|
Interest expense and
other, net
|
|
|
31,912
|
|
|
|
38,558
|
Debt extinguishment
loss
|
|
|
—
|
|
|
|
9,689
|
Non-service defined
benefit (income) expense
|
|
|
(8,586)
|
|
|
|
1,722
|
Income tax
expense
|
|
|
1,750
|
|
|
|
1,214
|
Net loss
|
|
$
|
(10,342)
|
|
|
$
|
(30,351)
|
Loss per share -
basic:
|
|
|
|
|
|
Net loss
|
|
$
|
(0.16)
|
|
|
$
|
(0.47)
|
Weighted average common
shares outstanding - basic
|
|
|
64,820
|
|
|
|
64,299
|
Loss per share -
diluted:
|
|
|
|
|
|
Net loss
|
|
$
|
(0.16)
|
|
|
$
|
(0.47)
|
Weighted average common
shares outstanding - diluted
|
|
|
64,820
|
|
|
|
64,299
|
|
|
|
|
|
|
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH GROUP, INC.
AND SUBSIDIARIES
|
(dollars in
thousands, except share data)
|
BALANCE
SHEETS
|
|
Unaudited
June 30,
2022
|
|
|
Audited
March 31,
2022
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
134,636
|
|
|
$
|
240,878
|
Accounts receivable,
net
|
|
|
168,104
|
|
|
|
178,663
|
Contract
assets
|
|
|
97,394
|
|
|
|
101,828
|
Inventory,
net
|
|
|
379,929
|
|
|
|
361,692
|
Prepaid and other
current assets
|
|
|
26,144
|
|
|
|
19,903
|
Assets held for
sale
|
|
|
78,794
|
|
|
|
60,104
|
Current
assets
|
|
|
885,001
|
|
|
|
963,068
|
Property and equipment,
net
|
|
|
165,670
|
|
|
|
169,050
|
Goodwill
|
|
|
507,988
|
|
|
|
513,722
|
Intangible assets,
net
|
|
|
81,875
|
|
|
|
84,850
|
Other, net
|
|
|
26,927
|
|
|
|
30,476
|
Total assets
|
|
$
|
1,667,461
|
|
|
$
|
1,761,166
|
Liabilities &
Stockholders' Deficit
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
|
2,968
|
|
|
$
|
3,268
|
Accounts
payable
|
|
|
132,734
|
|
|
|
161,534
|
Contract
liabilities
|
|
|
53,914
|
|
|
|
171,763
|
Accrued
expenses
|
|
|
168,818
|
|
|
|
208,059
|
Liabilities related to
assets held for sale
|
|
|
185,096
|
|
|
|
57,519
|
Current
liabilities
|
|
|
543,530
|
|
|
|
602,143
|
Long-term debt, less
current portion
|
|
|
1,587,073
|
|
|
|
1,586,222
|
Accrued pension and
post-retirement benefits, noncurrent
|
|
|
287,621
|
|
|
|
301,303
|
Deferred income taxes,
noncurrent
|
|
|
7,256
|
|
|
|
7,213
|
Other noncurrent
liabilities
|
|
|
47,268
|
|
|
|
51,708
|
Stockholders'
Deficit:
|
|
|
|
|
|
Common stock, $.001
par value, 100,000,000 shares authorized, 64,920,381
and 64,629,279 shares issued
|
|
|
65
|
|
|
|
64
|
Capital in excess of
par value
|
|
|
971,390
|
|
|
|
973,112
|
Treasury stock, at
cost, 0 and 14,897 shares
|
|
|
—
|
|
|
|
(96)
|
Accumulated other
comprehensive loss
|
|
|
(469,251)
|
|
|
|
(463,354)
|
Accumulated
deficit
|
|
|
(1,307,491)
|
|
|
|
(1,297,149)
|
Total stockholders'
deficit
|
|
|
(805,287)
|
|
|
|
(787,423)
|
Total liabilities and
stockholders' deficit
|
|
$
|
1,667,461
|
|
|
$
|
1,761,166
|
|
|
|
|
|
|
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH GROUP, INC.
AND SUBSIDIARIES
|
(dollars in
thousands, except share data)
|
|
|
Three Months Ended
June 30,
|
|
|
2022
|
|
|
2021
|
Operating
Activities
|
|
|
|
|
|
Net loss
|
|
$
|
(10,342)
|
|
|
$
|
(30,351)
|
Adjustments to
reconcile net loss to net cash used in
operating activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
9,806
|
|
|
|
15,431
|
Amortization of
acquired contract liability
|
|
|
(523)
|
|
|
|
(1,214)
|
Loss on sale of assets
and businesses
|
|
|
—
|
|
|
|
5,969
|
Curtailments,
settlements, and special termination benefits loss, net
|
|
|
—
|
|
|
|
16,078
|
Other amortization
included in interest expense
|
|
|
1,562
|
|
|
|
4,002
|
Provision for
(recovery of) credit losses
|
|
|
200
|
|
|
|
(28)
|
Share-based
compensation
|
|
|
1,578
|
|
|
|
2,247
|
Changes in other
assets and liabilities, excluding the effects of
acquisitions and divestitures:
|
|
|
|
|
|
Trade and other
receivables
|
|
|
4,474
|
|
|
|
(1,321)
|
Contract
assets
|
|
|
(8,638)
|
|
|
|
(4,426)
|
Inventories
|
|
|
(19,190)
|
|
|
|
(9,354)
|
Prepaid expenses and
other current assets
|
|
|
(7,538)
|
|
|
|
(3,633)
|
Accounts payable,
accrued expenses, and contract liabilities
|
|
|
(56,352)
|
|
|
|
(128,922)
|
Accrued pension and
other postretirement benefits
|
|
|
(8,322)
|
|
|
|
(13,713)
|
Other, net
|
|
|
255
|
|
|
|
(279)
|
Net cash used in
operating activities
|
|
|
(93,030)
|
|
|
|
(149,514)
|
Investing
Activities
|
|
|
|
|
|
Capital
expenditures
|
|
|
(3,044)
|
|
|
|
(2,112)
|
(Payments on) proceeds
from sale of assets and businesses
|
|
|
(2,322)
|
|
|
|
180,478
|
Purchase of facility
related to divested businesses
|
|
|
—
|
|
|
|
(21,550)
|
Net cash (used in)
provided by investing activities
|
|
|
(5,366)
|
|
|
|
156,816
|
Financing
Activities
|
|
|
|
|
|
Retirement of debt and
finance lease obligations
|
|
|
(990)
|
|
|
|
(350,688)
|
Premium on redemption
of First Lien Notes
|
|
|
—
|
|
|
|
(7,489)
|
Repurchase of shares
for share-based compensation
minimum tax obligation
|
|
|
(3,442)
|
|
|
|
(2,336)
|
Net cash used in
financing activities
|
|
|
(4,432)
|
|
|
|
(360,513)
|
Effect of exchange rate
changes on cash
|
|
|
(3,414)
|
|
|
|
815
|
Net change in cash and
cash equivalents
|
|
|
(106,242)
|
|
|
|
(352,396)
|
Cash and cash
equivalents at beginning of period
|
|
|
240,878
|
|
|
|
589,882
|
Cash and cash
equivalents at end of period
|
|
$
|
134,636
|
|
|
$
|
237,486
|
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH GROUP, INC.
AND SUBSIDIARIES
|
(dollars in
thousands)
|
|
|
Three Months
Ended
|
|
|
|
June
30,
|
|
SEGMENT
DATA
|
|
2022
|
|
|
2021
|
|
Net sales:
|
|
|
|
|
|
|
Systems &
Support
|
|
$
|
254,643
|
|
|
$
|
258,413
|
|
Aerospace
Structures
|
|
|
94,753
|
|
|
|
138,252
|
|
Elimination of
intersegment sales
|
|
|
(12)
|
|
|
|
(19)
|
|
|
|
$
|
349,384
|
|
|
$
|
396,646
|
|
Operating income
(loss):
|
|
|
|
|
|
|
Systems &
Support
|
|
$
|
33,151
|
|
|
$
|
35,546
|
|
Aerospace
Structures
|
|
|
(2,301)
|
|
|
|
11,223
|
|
Corporate
|
|
|
(14,538)
|
|
|
|
(23,690)
|
|
Share-based
compensation expense
|
|
|
(1,578)
|
|
|
|
(2,247)
|
|
|
|
$
|
14,734
|
|
|
$
|
20,832
|
|
Operating margin
%
|
|
|
|
|
|
|
Systems &
Support
|
|
|
13.0
|
%
|
|
|
13.8
|
%
|
Aerospace
Structures
|
|
|
(2.4)
|
%
|
|
|
8.1
|
%
|
Consolidated
|
|
|
4.2
|
%
|
|
|
5.3
|
%
|
|
|
|
|
|
|
|
Depreciation and
amortization:
|
|
|
|
|
|
|
Systems &
Support
|
|
$
|
7,521
|
|
|
$
|
8,504
|
|
Aerospace
Structures
|
|
|
1,696
|
|
|
|
6,159
|
|
Corporate
|
|
|
589
|
|
|
|
768
|
|
|
|
$
|
9,806
|
|
|
$
|
15,431
|
|
Amortization of
acquired contract liabilities:
|
|
|
|
|
|
|
Systems &
Support
|
|
$
|
(523)
|
|
|
$
|
(1,202)
|
|
Aerospace
Structures
|
|
|
—
|
|
|
|
(12)
|
|
|
|
$
|
(523)
|
|
|
$
|
(1,214)
|
|
Capital
expenditures:
|
|
|
|
|
|
|
Systems &
Support
|
|
$
|
2,879
|
|
|
$
|
1,102
|
|
Aerospace
Structures
|
|
|
56
|
|
|
|
652
|
|
Corporate
|
|
|
109
|
|
|
|
358
|
|
|
|
$
|
3,044
|
|
|
$
|
2,112
|
|
|
|
|
|
|
|
|
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.
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.
- Consideration payable to a customer related to a divestiture
may be useful for investors to consider because it reflects
consideration paid to facilitate the ultimate sale of operating
units. We do not believe these charges 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.
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
|
|
|
|
June
30,
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation,
Amortization, and Pension (Adjusted EBITDAP):
|
|
2022
|
|
|
2021
|
|
Net loss
|
|
$
|
(10,342)
|
|
|
$
|
(30,351)
|
|
Add-back:
|
|
|
|
|
|
|
Income tax
expense
|
|
|
1,750
|
|
|
|
1,214
|
|
Interest expense and
other, net
|
|
|
31,912
|
|
|
|
38,558
|
|
Debt extinguishment
loss
|
|
|
—
|
|
|
|
9,689
|
|
Pension
charges
|
|
|
—
|
|
|
|
16,078
|
|
Consideration payable
to customer related to divestiture^
|
|
|
17,185
|
|
|
|
—
|
|
Loss on sale of assets
and businesses, net
|
|
|
—
|
|
|
|
5,969
|
|
Share-based
compensation
|
|
|
1,578
|
|
|
|
2,247
|
|
Amortization of
acquired contract liabilities
|
|
|
(523)
|
|
|
|
(1,214)
|
|
Depreciation and
amortization^
|
|
|
9,806
|
|
|
|
15,431
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation
and Amortization ("Adjusted EBITDA")
|
|
$
|
51,366
|
|
|
$
|
57,621
|
|
Non-service defined
benefit income (excluding pension charges)
|
|
|
(8,586)
|
|
|
|
(14,356)
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation
and Amortization, and Pension ("Adjusted
EBITDAP")
|
|
$
|
42,780
|
|
|
$
|
43,265
|
|
Net sales
|
|
$
|
349,384
|
|
|
$
|
396,646
|
|
Net income (loss)
margin
|
|
|
(3.0)
|
%
|
|
|
(7.7)
|
%
|
Adjusted EBITDAP
margin
|
|
|
11.7
|
%
|
|
|
10.9
|
%
|
^Reported in net
sales
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2022
|
|
|
|
|
|
|
Segment
Data
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation,
Amortization, and Pension (EBITDAP):
|
|
Total
|
|
|
Systems &
Support
|
|
|
Aerospace
Structures
|
|
|
Corporate/
Eliminations
|
|
Net loss
|
|
$
|
(10,342)
|
|
|
|
|
|
|
|
|
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-service defined
benefit income
|
|
|
(8,586)
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
1,750
|
|
|
|
|
|
|
|
|
|
|
Debt extinguishment
loss
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
other, net
|
|
|
31,912
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
14,734
|
|
|
$
|
33,151
|
|
|
$
|
(2,301)
|
|
|
$
|
(16,116)
|
|
Consideration payable
to customer related to divestiture^
|
|
|
17,185
|
|
|
|
—
|
|
|
|
17,185
|
|
|
|
—
|
|
Share-based
compensation
|
|
|
1,578
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,578
|
|
Amortization of
acquired contract liabilities
|
|
|
(523)
|
|
|
|
(523)
|
|
|
|
—
|
|
|
|
—
|
|
Depreciation and
amortization
|
|
|
9,806
|
|
|
|
7,521
|
|
|
|
1,696
|
|
|
|
589
|
|
Adjusted Earnings
(Losses) before Interest, Taxes,
Depreciation and Amortization, and Pension
("Adjusted EBITDAP")
|
|
$
|
42,780
|
|
|
$
|
40,149
|
|
|
$
|
16,580
|
|
|
$
|
(13,949)
|
|
Net sales
|
|
$
|
349,384
|
|
|
$
|
254,643
|
|
|
$
|
94,753
|
|
|
$
|
(12)
|
|
Adjusted EBITDAP
margin
|
|
|
11.7
|
%
|
|
|
15.8
|
%
|
|
|
14.8
|
%
|
|
n/a
|
|
^Reported in net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH GROUP, INC.
AND SUBSIDIARIES (dollars in thousands)
|
|
Non-GAAP Financial
Measure Disclosures (continued)
|
|
|
Three Months Ended
June 30, 2021
|
|
|
|
|
|
|
Segment
Data
|
|
Adjusted Earnings before Interest, Taxes,
Depreciation,
Amortization, and Pension (EBITDAP):
|
|
Total
|
|
|
Systems &
Support
|
|
|
Aerospace
Structures
|
|
|
Corporate/
Eliminations
|
|
Net loss
|
|
$
|
(30,351)
|
|
|
|
|
|
|
|
|
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-service defined
benefit expense
|
|
|
1,722
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
1,214
|
|
|
|
|
|
|
|
|
|
|
Debt extinguishment
loss
|
|
|
9,689
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
other, net
|
|
|
38,558
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
20,832
|
|
|
$
|
35,546
|
|
|
$
|
11,223
|
|
|
$
|
(25,937)
|
|
Loss on sales of
assets & businesses, net
|
|
|
5,969
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,969
|
|
Share-based
compensation
|
|
|
2,247
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,247
|
|
Amortization of
acquired contract liabilities
|
|
|
(1,214)
|
|
|
|
(1,202)
|
|
|
|
(12)
|
|
|
|
—
|
|
Depreciation and
amortization
|
|
|
15,431
|
|
|
|
8,504
|
|
|
|
6,159
|
|
|
|
768
|
|
Adjusted Earnings
(Losses) before Interest,
Taxes, Depreciation and Amortization,
and Pension ("Adjusted EBITDAP")
|
|
$
|
43,265
|
|
|
$
|
42,848
|
|
|
$
|
17,370
|
|
|
$
|
(16,953)
|
|
Net sales
|
|
$
|
396,646
|
|
|
$
|
258,413
|
|
|
$
|
138,252
|
|
|
$
|
(19)
|
|
Adjusted EBITDAP
margin
|
|
|
10.9
|
%
|
|
|
16.7
|
%
|
|
|
12.6
|
%
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL DATA (UNAUDITED)
TRIUMPH
GROUP, INC. AND SUBSIDIARIES
(dollars in
thousands)
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
June 30, 2022
|
|
|
|
Pre-Tax
|
|
|
After-Tax
|
|
|
EPS
|
|
Loss from continuing
operations - GAAP
|
|
$
|
(8,592)
|
|
|
$
|
(10,342)
|
|
|
$
|
(0.16)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Restructuring
costs
|
|
|
699
|
|
|
|
699
|
|
|
|
0.01
|
|
Consideration payable
to customer related to divestiture^
|
|
|
17,185
|
|
|
|
17,185
|
|
|
|
0.26
|
|
Adjusted income from
continuing operations - non-GAAP*
|
|
$
|
9,292
|
|
|
$
|
7,542
|
|
|
$
|
0.12
|
|
^ Recorded in net
sales
|
|
|
|
|
|
|
|
|
|
* Difference due to
rounding
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30, 2021
|
|
|
|
Pre-Tax
|
|
|
After-Tax
|
|
|
Diluted
EPS
|
|
Loss from continuing
operations - GAAP
|
|
$
|
(29,137)
|
|
|
$
|
(30,351)
|
|
|
$
|
(0.47)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Loss on sale of assets
and businesses, net
|
|
|
5,969
|
|
|
|
5,969
|
|
|
|
0.09
|
|
Restructuring
costs
|
|
|
4,485
|
|
|
|
4,485
|
|
|
|
0.07
|
|
Pension curtailment
charge
|
|
|
16,078
|
|
|
|
16,078
|
|
|
|
0.25
|
|
Refinancing
cost
|
|
|
9,689
|
|
|
|
9,689
|
|
|
|
0.15
|
|
Adjusted loss from
continuing operations - non-GAAP*
|
|
$
|
7,084
|
|
|
$
|
5,870
|
|
|
$
|
0.09
|
|
* Differences
due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
2023
|
|
|
|
Diluted
EPS
|
|
|
|
Guidance
|
|
Initial earnings per
share guidance range
|
|
$0.40 -
$0.60
|
|
Impact of interim
pension remeasurement
|
|
|
(0.12)
|
|
Restructuring
costs
|
|
|
(0.01)
|
|
Consideration payable
to customer related to divestiture
|
|
|
(0.26)
|
|
Gain on sale of assets
and business (Q2)
|
|
|
1.53
|
|
Curtailment charge
related to divestiture (Q2)
|
|
|
(0.03)
|
|
Updated earnings per
share guidance - GAAP
|
|
$1.51 -
$1.71
|
|
Adjustments:
|
|
|
|
Restructuring
costs
|
|
|
0.01
|
|
Consideration payable
to customer related to divestiture
|
|
|
0.26
|
|
Gain on sale of assets
and business
|
|
|
(1.53)
|
|
Curtailment charge
related to divestiture
|
|
|
0.03
|
|
Adjusted earnings
per share guidance - non-GAAP
|
|
$0.28-$0.48
|
|
FINANCIAL DATA (UNAUDITED)
TRIUMPH
GROUP, INC. AND SUBSIDIARIES
(dollars in
thousands)
Non-GAAP Financial Measure Disclosures (continued)
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
June 30,
|
|
|
|
2022
|
|
|
2021
|
|
Operating income -
GAAP
|
|
$
|
14,734
|
|
|
$
|
20,832
|
|
Adjustments:
|
|
|
|
|
|
|
Loss on sale of assets
and businesses, net
|
|
|
—
|
|
|
|
5,969
|
|
Restructuring
costs
|
|
|
699
|
|
|
|
4,485
|
|
Consideration payable
to customer related to divestiture^
|
|
|
17,185
|
|
|
|
—
|
|
Adjusted operating
income - non-GAAP
|
|
$
|
32,618
|
|
|
$
|
31,286
|
|
Adjusted operating
margin
|
|
|
8.9
|
%
|
|
|
7.9
|
%
|
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.
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.
|
|
Three Months
Ended
June 30,
|
|
|
Fiscal 2023
Guidance
|
$ in
millions
|
|
2022
|
|
|
2021
|
|
|
|
Cash used in operating
activities
|
|
$
|
(93.0)
|
|
|
$
|
(149.5)
|
|
|
$ (40.0) -
$ (30.0)
|
Plus:
|
|
|
|
|
|
|
|
|
Non-core cash
use^
|
|
|
(21.0)
|
|
|
|
—
|
|
|
$ (70.0) -
$ (75.0)
|
Core cash (used in)
provided by operations
|
|
$
|
(72.0)
|
|
|
$
|
(149.5)
|
|
|
$ 30.0 - $
45.0
|
Less:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(3.0)
|
|
|
|
(2.1)
|
|
|
~ $ (30.0)
|
Core free cash (use)
flow
|
|
$
|
(75.1)
|
|
|
$
|
(151.6)
|
|
|
$ -- - $
15.0
|
^ Non-core cash use
estimate includes remaining cash related to the exit or sale of
legacy structures facilities and programs.
|
View original
content:https://www.prnewswire.com/news-releases/triumph-reports-first-quarter-fiscal-2023-results-301598567.html
SOURCE Triumph Group