Dépêches

Triumph Group Reports Record Fourth Quarter and Full Fiscal Year 2012 Results

Dépèche transmise le 2 mai 2012 par Business Wire

BERWYN, Pa.--(BUSINESS WIRE)--Triumph Group, Inc. (NYSE: TGI) today reported that, for the fourth quarter ended March 31, 2012, net sales were $946.4 million, a three percent increase from last year’s fourth quarter net sales of $919.1 million. Organic sales growth for the quarter was three percent.

“We enter fiscal year 2013 with momentum, a strong balance sheet, and a growing backlog. Even as we face the challenges of uncertainty in U.S. defense spending, we are confident that Triumph is well positioned to continue its profitable growth.”

Income from continuing operations for the fourth quarter of fiscal year 2012 increased ninety-seven percent to $106.3 million, or $2.03 per diluted share, versus $54.0 million, or $1.05 per diluted share, for the fourth quarter of the prior fiscal year. The quarter’s results included approximately $2.6 million pre tax ($1.7 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). The prior fiscal year’s quarter included approximately $1.3 million pre tax ($0.8 million after tax) of integration costs associated with the Vought acquisition. The number of shares used in computing diluted earnings per share for the quarter was 52.3 million shares. The fourth quarter results were favorably impacted by a $40.4 million pre tax ($26.1 million after tax or $0.50 per diluted share) net curtailment gain resulting from amendments made to the Triumph Aerostructures pension plans which was reflected on the face of the income statement, and in the segment reporting, was included in Corporate. Excluding integration costs and the net curtailment gain, earnings per share from continuing operations for the quarter was $1.57 per diluted share.

Full Fiscal Year Highlights

For the fiscal year ended March 31, 2012, net sales totaled $3,407.9 million, a seventeen percent increase from fiscal year 2011 net sales of $2,905.3 billion. Organic sales growth for the fiscal year was seven percent.

Income from continuing operations for fiscal year 2012 increased eighty-five percent to $281.6 million, or $5.43 per diluted share, versus $152.4 million, or $3.21 per diluted share, for fiscal year 2011. The fiscal year’s results included approximately $6.3 million pre tax ($4.1 million after tax or $0.08 per diluted share) of integration costs related to the Vought acquisition as well as the net curtailment gain of $40.4 million pre tax ($0.50 per diluted share). The prior fiscal year included approximately $20.9 million pre tax ($15.7 million after tax) of integration costs associated with the Vought acquisition. Excluding these costs and the net curtailment gain, income from continuing operations for fiscal year 2012 was $259.7 million, or $5.01 per diluted share. The number of shares used in computing diluted earnings per share for fiscal year 2012 was 51.9 million shares.

During the fiscal year, the company generated $349.1 million of cash flow from operations before Triumph Aerostructures’ pension contributions of $121.9 million; after these contributions, cash flow from operations was $227.2 million.

Richard C. Ill, Triumph’s Chairman and Chief Executive Officer, said, “Triumph had a terrific fiscal year 2012 capped by a strong fourth quarter operating performance. Full year and fourth quarter sales, earnings, operating margin and cash flow all were at record levels. We executed across all three of our business segments and delivered significant operating margin expansion. In addition, we continued the successful integration of Triumph Aerostructures, successfully managed our pension obligations, and exceeded our debt reduction goal.”

“We enter fiscal year 2013 with momentum, a strong balance sheet, and a growing backlog. Even as we face the challenges of uncertainty in U.S. defense spending, we are confident that Triumph is well positioned to continue its profitable growth.”

Segments

Aerostructures

The Aerostructures segment reported record net sales for the fourth quarter of fiscal year 2012 of $714.2 million compared to $703.5 million for the prior fiscal year period, an increase of two percent, all of which was organic. For the fiscal year 2012, net sales increased twenty-one percent to a record $2,571.6 million from $2,126.0 million for the prior fiscal year. Organic sales growth for the fiscal year was six percent. For the fourth quarter of fiscal year 2012, operating income increased thirty-one percent to a record $119.0 million versus $91.1 million for the prior fiscal year quarter and included a net favorable cumulative catch-up adjustment on long-term contracts of $7.8 million. Operating income for fiscal year 2012 was a record $403.4 million, compared to $267.8 million for the prior fiscal year, an increase of fifty-one percent. The segment’s operating margin for the quarter was seventeen percent, a 370 basis point improvement over the prior year period.

Aerospace Systems

The Aerospace Systems segment reported record net sales for the fourth quarter of fiscal year 2012 of $151.7 million compared to $147.8 million for the prior fiscal year period, an increase of three percent, all of which was organic. For the fiscal year 2012, net sales increased eight percent to a record $551.8 million from $513.4 million for the prior fiscal year, all of which was organic. Operating income for the fourth quarter of fiscal year 2012 increased eighteen percent to a record $26.4 million versus $22.4 million for the prior fiscal year quarter. Operating margin for the quarter increased to seventeen percent versus fifteen percent in the prior fiscal year period. Operating income for fiscal year 2012 was a record $90.0 million, compared to $75.3 million for the prior fiscal year, an increase of twenty percent. Operating margin for the fiscal year was sixteen percent. The segment’s fiscal year 2012 and fourth quarter operating results included approximately $3.2 million and $1.3 million, respectively, of legal expenses associated with the ongoing trade secret litigation.

Aftermarket Services

The Aftermarket Services Systems segment reported record net sales for the fourth quarter of fiscal year 2012 of $83.1 million, compared to $69.5 million for the prior fiscal year period, an increase of twenty percent. Organic sales growth for the quarter was fifteen percent. For the fiscal year 2012, net sales increased seven percent to a record $292.7 million from $272.7 million for the prior fiscal year. Organic sales growth for the fiscal year was six percent. Operating income for the fourth quarter of fiscal year 2012 increased fifty-seven percent to $11.0 million versus $7.0 million for the prior fiscal year quarter. Operating margin for the quarter increased to a record thirteen percent driven primarily by strong market growth and improved operating performance. Operating income for fiscal year 2012 was $31.9 million, compared to $28.8 million for the prior fiscal year, an increase of eleven percent. Operating margin for the fiscal year was eleven percent. The segment’s fiscal year 2012 and fourth quarter operating results included expenses associated with the bankruptcies of American Airlines, Pinnacle and Aveos of $1.1 million and $0.5 million, respectively.

Outlook

In commenting on the outlook for fiscal year 2013, Mr. Ill said, “We are entering our new fiscal year with a very strong backlog and a very solid balance sheet. We project sales in the range of $3.5 to $3.7 billion and earnings per share from continuing operations for the fiscal year of $5.45 to $5.55 per diluted share, excluding integration costs. This represents a nine to eleven percent increase over fiscal year 2012 earnings per share from continuing operations, excluding integration costs and the net curtailment gain.” This guidance is based on the following assumptions for fiscal year 2013:

  • the number of shares used in computing diluted earnings per share is 52.5 million
  • $5.0 million of legal expenses associated with the trade secret litigation
  • interest expense of $70 million
  • tax rate of 36.5% reflecting the expiration of the R&D tax credit
  • capital expenditures and investments in major new programs of $130 to $150 million, of which $50.0 million will be reflected in inventory (net of advances)
  • pension income of $27 million and cash contributions to the plan of $110 million
  • OPEB expense of approximately $15 million and cash expenditures of approximately $37 million
  • synergies from the Vought acquisition remain on track for a $50 million annual run rate by June 2013
  • current productions rates – specifically:
    • 777 production at 7 per month trending to 8.3 per month in Q4
    • 737 production rates of 35 per month trending to 38 per month in the second half of the fiscal year
    • 747 production rates of 2 per month
    • the most recent 787 production schedule
    • 767 production rates of 2 per month
    • A330 production of 9 per month trending to 10 per month near the end of Q4
    • C-17 production of 10 units for Triumph Aerostructures
    • other than C-17 mentioned above, production rates for the company’s largest military programs (i.e. V-22, UH 60, CH 47, C130) are planned to remain strong; however, the U.S. Government budget process introduces some risk to this assumption
    • slightly lower sales of G550 and G450
    • at a minimum, early year weakness in Cessna sales
  • the award of the KC-46A tanker to Boeing will create some non-recurring development activities in fiscal year 2013 and will be a positive in the long term
  • continued strength in the Aftermarket Services segment of the business

As previously announced, Triumph Group will hold a conference call tomorrow at 8:30 a.m. (ET) to discuss the fiscal year 2012 fourth quarter and year-end 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 May 3rd to May 10th by calling (888) 266-2081 (Domestic) or (703) 925-2533 (International), passcode #1575402.

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 Twelve Months Ended
March 31, March 31,
 
CONDENSED STATEMENTS OF INCOME   2012     2011     2012     2011  
 
 
Net sales $ 946,376 $ 919,086 $ 3,407,929 $ 2,905,348
 

Operating income, before acquisition and integration costs and net curtailment gain

145,483 109,662 480,657 334,938
Acquisition and integration costs 2,644 1,252 6,342 20,902
Curtailment gain, net   (40,400 )   -     (40,400 )   -  
Operating income 183,239 108,410 514,715 314,036
 
Interest expense and other 18,462 22,440 77,138 79,559
Income tax expense   58,526     31,940     155,955     82,066  
 
Income from continuing operations 106,251 54,030 281,622 152,411
Loss from discontinued operations, net of tax   -     (1,687 )   (765 )   (2,512 )
 
Net income $ 106,251   $ 52,343   $ 280,857   $ 149,899  
 
Earnings per share - basic:
 
Income from continuing operations $ 2.16 $ 1.12 $ 5.77 $ 3.39
Loss from discontinued operations $ -   $ (0.03 ) $ (0.02 ) $ (0.06 )
Net income $ 2.16   $ 1.09   $ 5.75   $ 3.33  
 
Weighted average common shares outstanding - basic   49,174     48,214     48,821     45,006  
 
Earnings per share - diluted:
 
Income from continuing operations $ 2.03 $ 1.05 $ 5.43 $ 3.21
Loss from discontinued operations $ -   $ (0.03 ) $ (0.01 ) $ (0.05 )
Net income $ 2.03   $ 1.02   $ 5.41   ^ $ 3.16  
 
Weighted average common shares outstanding - diluted   52,311     51,269     51,873     47,488  
 
Dividends declared and paid per common share $ 0.04   $ 0.02   $ 0.14   $ 0.08  
 
^Difference due to rounding.
   
FINANCIAL DATA (UNAUDITED)
 
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands, except per share data)
 
 
BALANCE SHEET Unaudited Audited
March 31, March 31,
  2012     2011  
Assets
Cash and cash equivalents $ 29,662 $ 39,328
Accounts receivable, net 440,608 374,491
Inventory, net of unliquidated progress payments of $164,450 and $138,206 817,956 770,212
Rotable assets 34,554 26,607
Prepaid and other current assets 24,630 18,141
Assets held for sale   0     4,574  
Current assets 1,347,410 1,233,353
 
Property and equipment, net 733,380 734,879
Goodwill 1,542,008 1,537,711
Intangible assets, net 829,675 859,620
Other, net   53,094     97,674  
 
Total assets $ 4,505,567   $ 4,463,237  
 
Liabilities & Stockholders' Equity
 
Current portion of long-term debt $ 142,237 $ 300,252
Accounts payable 266,124 262,716
Accrued expenses 307,730 313,354
Deferred income taxes 99,809 78,793
Liabilities related to assets held for sale   0     431  
Current liabilities 815,900 955,546
 
Long-term debt, less current portion 1,016,625 1,011,752
Accrued pension and post-retirement benefits, noncurrent 700,127 690,218
Deferred income taxes, noncurrent 43,375 20
Other noncurrent liabilities 136,171 170,978
 
Temporary equity - 2,506
 
Stockholders' Equity:

Common stock, $.001 par value, 100,000,000 shares authorized, 49,590,273 and 48,690,606 shares issued

50 49
Capital in excess of par value 833,935 819,197
Treasury stock, at cost, 58,533 and 177,184 shares (1,716 ) (5,085 )
Accumulated other comprehensive income (loss) (9,306 ) 120,471
Retained earnings   970,406     697,585  
Total stockholders' equity   1,793,369     1,632,217  
 
Total liabilities and stockholders' equity $ 4,505,567   $ 4,463,237  

Business Wire

Les plus belles photos d'avions
Airbus A319-111 (G-EZBT) Airbus A319-111 (G-EZAP) Airbus A320-214 (EI-CVA) Boeing 787-8 Dreamliner (ET-ATK) Airbus A321-231 (G-OZBH) Boeing 737-8AS (EI-DHY)
       
FINANCIAL DATA (UNAUDITED)
 
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
 
 
 
SEGMENT DATA Three Months Ended Twelve Months Ended
March 31, March 31,
 
  2012     2011     2012     2011  
 
Net sales:
Aerostructures $ 714,247 $ 703,461 $ 2,571,576 $ 2,126,040
Aerospace Systems 151,724 147,809 551,800 513,435
Aftermarket Services 83,120 69,536 292,674 272,728
Elimination of inter-segment sales   (2,715 )   (1,720 )   (8,121 )   (6,855 )
$ 946,376   $ 919,086   $ 3,407,929   $ 2,905,348  
 
Operating income (loss):
Aerostructures $ 119,004 $ 91,146 $ 403,414 $ 267,783
Aerospace Systems 26,351 22,359 90,035 75,292
Aftermarket Services 10,966 6,996 31,859 28,774
Corporate   26,918  

2

  (12,091 )   (10,593 )

2

  (57,813 )
$ 183,239  

1

$ 108,410  

3

$ 514,715  

1

$ 314,036  

3

 
Depreciation and amortization:
Aerostructures $ 22,855 $ 24,562 $ 89,113 $ 69,451