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Triumph Group Reports Strong Third Quarter Fiscal 2012 Results; Raises Fiscal Year 2012 Guidance
Dépèche transmise le 30 janvier 2012 par Business Wire
BERWYN, Pa.--(BUSINESS WIRE)--Triumph Group, Inc. (NYSE: TGI) today reported that net sales for the third quarter of fiscal year ending March 31, 2012 totaled $826.0 million, a two percent increase from last year’s third quarter net sales of $810.9 million. Organic sales growth for the quarter was two percent. Adjusting for declines in both non-recurring revenue and the 787 program, sales would have increased five percent.
“Based on our strong performance year to date, current aircraft production rates, a weighted average share count of 52.0 million shares and revenue between $3.35 and $3.4 billion, we are raising our diluted per share earnings guidance from continuing operations for the full year to approximately $4.70 excluding integration costs.”
Income from continuing operations for the third quarter of fiscal year 2012 increased forty-seven percent to $65.9 million, or $1.27 per diluted share, versus $45.0 million, or $0.88 per diluted share, for the third quarter of the prior year. The quarter’s results included $2.1 million pre tax ($1.3 million after tax or $0.03 per diluted share) of integration costs related to the acquisition of Vought Aircraft Industries (now Triumph Aerostructures-Vought Aircraft Division), of which $1.4 million was primarily non-cash costs related to manufacturing moves. The prior fiscal year’s quarter included $1.0 million pretax ($0.7 million after tax) of integration costs associated with the Vought acquisition. Excluding these costs, income from continuing operations for the third quarter of fiscal year 2012 was $67.2 million, or $1.29 per diluted share.
“Interest expense and other” for the third quarter of fiscal 2012 was favorably impacted by a $2.9 million adjustment due to the revaluation of a contingent earnout liability associated with a prior acquisition. The number of shares used in computing diluted earnings per share for the third quarter of fiscal year 2012 was 52.0 million shares.
Net sales for the first nine months of fiscal year 2012 were $2.462 billion, a twenty-four percent increase from net sales of $1.986 billion last fiscal year. Income from continuing operations for the first nine months of fiscal year 2012 increased seventy-eight percent to $175.4 million, or $3.39 per diluted share, versus $98.4 million, or $2.13 per diluted share, in the prior year period. The year to date results included $3.7 million pretax ($2.4 million after tax or $0.05 per diluted share) of integration expenses related to the Vought acquisition. The prior fiscal year’s period included $19.7 million pretax ($14.5 million after tax) of transaction and integration expenses associated with the Vought acquisition. Excluding these costs, income from continuing operations for the first nine months of fiscal 2012 was $177.7 million, or $3.44 per diluted share.
During the nine months ended December 31, 2011, the company generated $241.2 million of cash flow from operations before Triumph Aerostructures’ pension contribution of $97.7 million; after this contribution, cash flow from operations was $143.5 million.
Segments
Aerostructures
The Aerostructures segment reported net sales for the quarter of $626.0 million compared to $613.5 million in the prior year period, an increase of two percent, all of which was organic. Operating income for the third quarter of fiscal year 2012 increased forty-seven percent to $103.9 million versus $70.6 million for the prior year period and included a net favorable cumulative catch-up adjustment on long-term contracts of $8.4 million. As a result of improved execution, synergy realization and lower pension expense, the segment’s operating margin for the quarter increased to seventeen percent, a 510 basis points improvement over the prior year period.
Aerospace Systems
The Aerospace Systems segment reported net sales for the quarter of $133.3 million compared to $124.7 million in the prior year period, an increase of seven percent, all of which was organic. Operating income for the third quarter of fiscal year 2012 was $18.6 million compared to $17.4 million for the prior year period, an increase of seven percent. Operating margin for the quarter was fourteen percent. The segment’s operating results included $0.8 million of legal expenses associated with the ongoing trade secret litigation.
Aftermarket Services
The Aftermarket Services segment reported net sales for the quarter of $68.6 million compared to an all time quarter record of $74.7 million in the prior year period. The decrease of eight percent was driven primarily by a reduction in military sales. Operating income for the third quarter of fiscal year 2012 was $6.9 million compared to $9.5 million for the prior year period. Operating margin for the quarter was ten percent. The segment’s operating results included $0.7 million of expense associated with the American Airlines bankruptcy.
Outlook
Commenting on the company’s performance and its outlook for fiscal year 2012, Richard C. Ill, Triumph’s Chairman and Chief Executive Officer, said, “We continued our strong performance during the third quarter delivering increased revenue, record operating income and substantially higher operating margins in our Aerostructures Group. We continued to execute well, contain costs, and generate very strong cash flow. We expect this momentum to carry on into our fourth quarter and are confident in our ability to deliver long term organic growth and strong profitability.”
“Based on our strong performance year to date, current aircraft production rates, a weighted average share count of 52.0 million shares and revenue between $3.35 and $3.4 billion, we are raising our diluted per share earnings guidance from continuing operations for the full year to approximately $4.70 excluding integration costs.”
As previously announced, Triumph Group will hold a conference call tomorrow at 8:30 a.m. (ET) to discuss the fiscal year 2012 third quarter 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. An audio replay will be available from January 31st to February 7th by calling (888) 266-2081 (Domestic) or (703) 925-2533 (International), passcode #1564054.
Triumph Group, Inc., headquartered in Berwyn, Pennsylvania, designs, engineers, manufactures, repairs and overhauls a broad portfolio of aerostructures, aircraft components, accessories, subassemblies and systems. The company serves a broad, worldwide spectrum of the aviation industry, including original equipment manufacturers of commercial, regional, business and military aircraft and aircraft components, as well as commercial and regional airlines and air cargo carriers.
More information about Triumph can be found on the company’s website at http://www.triumphgroup.com.
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 future aerospace market conditions, aircraft production rates, financial and operational performance, revenue and earnings growth, and earnings results for fiscal 2012. 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’s reports filed with the SEC, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2011.
| FINANCIAL DATA (UNAUDITED) | |||||||||||||||||
| TRIUMPH GROUP, INC. AND SUBSIDIARIES | |||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| December 31, | December 31, | ||||||||||||||||
| CONDENSED STATEMENTS OF INCOME | 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Net sales | $ | 825,962 | $ | 810,853 | $ | 2,461,553 | $ | 1,986,262 | |||||||||
| Operating income | 117,640 | * | 86,659 | * * | 331,476 | * | 205,626 | * * | |||||||||
| Interest expense and other | 14,543 | 21,869 | 58,676 | 57,119 | |||||||||||||
| Income tax expense | 37,194 | 19,810 | 97,429 | 50,126 | |||||||||||||
| Income from continuing operations | 65,903 | 44,980 | 175,371 | 98,381 | |||||||||||||
| Loss from discontinued operations, net of tax | 0 | (336 | ) | (765 | ) | (825 | ) | ||||||||||
| Net income | $ | 65,903 | $ | 44,644 | $ | 174,606 | $ | 97,556 | |||||||||
| Earnings per share - basic: | |||||||||||||||||
| Income from continuing operations | $ | 1.35 | $ | 0.93 | $ | 3.60 | $ | 2.24 | |||||||||
| Loss from discontinued operations | - | (0.01 | ) | (0.02 | ) | (0.02 | ) | ||||||||||
| Net income | $ | 1.35 | $ | 0.93 | ^ | $ | 3.59 | ^ | $ | 2.22 | |||||||
| Weighted average common shares outstanding - basic | 48,912 | 48,155 | 48,692 | 43,956 | |||||||||||||
| Earnings per share - diluted: | |||||||||||||||||
| Income from continuing operations | $ | 1.27 | $ | 0.88 | $ | 3.39 | $ | 2.13 | |||||||||
| Loss from discontinued operations | - | (0.01 | ) | (0.01 | ) | (0.02 | ) | ||||||||||
| Net income | $ | 1.27 | $ | 0.88 | ^ | $ | 3.38 | $ | 2.11 | ||||||||
| Weighted average common shares outstanding - diluted | 51,968 | 50,950 | 51,689 | 46,213 | |||||||||||||
| Dividends declared and paid per common share | $ | 0.04 | $ | 0.02 | $ | 0.10 | $ | 0.06 | |||||||||
| ^ | Difference due to rounding. | |
| * |
Includes $2,095 and $3,699, respectively, of acquisition and integration expenses primarily associated with the acquisition of Vought for the three and nine months ended December 31, 2011. |
|
| * * | Includes $1,000 and $19,650, respectively, of acquisition and integration expenses associated with the acquisition of Vought for the three and nine months ended December 31, 2010. | |
| FINANCIAL DATA (UNAUDITED) | |||||||||||||||
| TRIUMPH GROUP, INC. AND SUBSIDIARIES | |||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||
| BALANCE SHEET | Unaudited | Audited | |||||||||||||
| December 31, | March 31, | ||||||||||||||
| 2011 | 2011 | ||||||||||||||
| Assets | |||||||||||||||
| Cash and cash equivalents | $ | 32,682 | $ | 39,328 | |||||||||||
| Accounts receivable, net | 345,627 | 374,491 | |||||||||||||
| Inventory, net of unliquidated progress payments of $148,351 and $138,206 | 848,555 | 781,714 | |||||||||||||
| Rotable assets | 33,024 | 26,607 | |||||||||||||
| Prepaid and other current assets | 47,908 | 18,141 | |||||||||||||
| Assets held for sale | 0 | 4,574 | |||||||||||||
| Current assets | 1,307,796 | 1,244,855 | |||||||||||||
| Property and equipment, net | 722,332 | 734,879 | |||||||||||||
| Goodwill | 1,533,102 | 1,530,580 | |||||||||||||
| Intangible assets, net | 837,641 | 859,620 | |||||||||||||
| Other, net | 32,702 | 93,303 | |||||||||||||
| Total assets | $ | 4,433,573 | $ | 4,463,237 | |||||||||||
| Liabilities & Stockholders' Equity | |||||||||||||||
| Current portion of long-term debt | $ | 141,535 | $ | 300,252 | |||||||||||
| Accounts payable | 236,134 | 262,716 | |||||||||||||
| Accrued expenses | 320,722 | 313,354 | |||||||||||||
| Deferred income taxes | 49,871 | 78,793 | |||||||||||||
| Liabilities related to assets held for sale | 0 | 431 | |||||||||||||
| Current liabilities | 748,262 | 955,546 | |||||||||||||
| Long-term debt, less current portion | 1,070,520 | 1,011,752 | |||||||||||||
| Accrued pension and post-retirement benefits, noncurrent | 558,470 | 680,754 | |||||||||||||
| Other noncurrent liabilities | 250,045 | 180,462 | |||||||||||||
| Temporary equity | - | 2,506 | |||||||||||||
| Stockholders' Equity: | |||||||||||||||
|
Common stock, $.001 par value, 100,000,000 shares authorized, 49,598,323 and 48,690,606 shares issued |
50 | 49 | |||||||||||||
| Capital in excess of par value | 833,221 | 819,197 | |||||||||||||
| Treasury stock, at cost, 137,911 and 177,184 shares | (4,044 | ) | (5,085 | ) | |||||||||||
| Accumulated other comprehensive income | 110,360 | 120,471 | |||||||||||||
| Retained earnings | 866,689 | 697,585 | |||||||||||||
| Total stockholders' equity | 1,806,276 | 1,632,217 | |||||||||||||
| Total liabilities and stockholders' equity | $ | 4,433,573 | $ | 4,463,237 | |||||||||||
