Dépêches
Triumph Group Reports Strong Third Quarter Fiscal 2011 Results
Dépèche transmise le 1 février 2011 par Business Wire
WAYNE, Pa.--(BUSINESS WIRE)--Triumph Group, Inc. (NYSE: TGI) today reported that net sales for the third quarter of the fiscal year ending March 31, 2011 totaled $810.9 million, a 159 percent increase from last year’s third quarter net sales of $313.5 million. Organic sales growth for the quarter was ten percent. Income from continuing operations for the third quarter of fiscal year 2011 increased 149 percent to $45.0 million, or $1.77 per diluted share, versus $18.1 million, or $1.08 per diluted share, for the third quarter of the prior year. The quarter’s results included approximately $1.0 million pre tax ($0.6 million after tax or $0.02 per diluted share) of integration costs related to the acquisition of Vought Aircraft Industries (now Triumph Aerostructures-Vought Aircraft Division). Excluding these integration costs, income from continuing operations for the quarter was $45.6 million, or $1.79 per diluted share. Net income for the third quarter of fiscal year 2011 increased 697 percent to $44.6 million, or $1.75 per diluted share, versus $5.6 million, or $0.34 per diluted share, for the third quarter of the prior year. The tax rate for the quarter was 30.5% and was favorably impacted by the effect of the recently enacted extension of the Research and Development Tax Credit. The tax rate for the remainder of the fiscal year will be approximately 34.5%. The number of shares used in computing diluted earnings per share for the third quarter of fiscal year 2011 increased to 25.5 million shares primarily due to the dilutive effect of the company’s convertible notes. During the quarter, the company used $3.0 million of cash flow from operations.
Net sales for the first nine months of fiscal year 2011 were $1.986 billion, a 111 percent increase from net sales of $942.8 million last fiscal year. Income from continuing operations for the first nine months of fiscal year 2011 increased sixty-three percent to $98.4 million, or $4.26 per diluted share, versus $60.3 million, or $3.62 per diluted share, in the prior year period. The year to date results included approximately $19.7 million pre tax ($14.6 million after tax or $0.63 per diluted share) of transaction and integration expenses related to the Vought acquisition. Excluding the acquisition-related costs, income from continuing operations for the nine months was $113.0 million, or $4.89 per diluted share. Net income for the first nine months of fiscal year 2011 increased 126 percent to $97.6 million, or $4.22 per diluted share, versus $43.1 million, or $2.59 per diluted share, in the prior year period. During the nine months ended December 31, 2010, the company generated $114.7 million of cash flow from operations.
Segments
In connection with the Vought acquisition, the company realigned its organizational structure into three reportable business segments, Aerostructures, Aerospace Systems and Aftermarket Services. Prior year period segment results have been adjusted to reflect this change.
Aerostructures
The Aerostructures segment reported net sales for the quarter of $613.5 million compared to $152.4 million in the prior year period, an increase of 302 percent. Operating income for the third quarter of fiscal year 2011 was $70.6 million compared to $24.2 million for the prior year period, an increase of 192 percent. Operating margin for the segment’s legacy business improved year over year by fifty basis points to sixteen percent.
Aerospace Systems
The Aerospace Systems segment reported net sales for the quarter of $124.7 million compared to $111.8 million in the prior year period, an increase of twelve percent. Organic sales growth for the quarter was seven percent. Operating income for the third quarter of fiscal year 2011 was $17.4 million compared to $14.9 million for the prior year period, an increase of seventeen percent. The segment’s operating results included $0.7 million of legal expenses associated with the ongoing trade secret litigation.
Aftermarket Services
The Aftermarket Services segment reported net sales for the quarter of $74.7 million compared to $51.4 million in the prior year period, an increase of forty-five percent, all of which was organic. Operating income for the third quarter of fiscal year 2011 was $9.5 million compared to $1.4 million for the prior year period, an increase of 583 percent. Operating margin for the quarter increased to thirteen percent, a 370 percent year over year improvement.
Outlook
Commenting on the company’s performance and its outlook for fiscal year 2011, Richard C. Ill, Triumph’s Chairman and Chief Executive Officer, said, “We continued our strong performance during the third quarter with all three of our business segments delivering year over year organic growth in operating income and operating margin. We are proud of the significant cash flow from operations we have generated through nine months, which has exceeded our net income. In addition, our Aftermarket Services Group continues to show robust revenue growth and, even more importantly, significant margin improvement. The integration of Vought remains on track. Therefore, as our end markets and the great majority of our programs continue to strengthen, we are confident in our ability to deliver revenue growth, strong cash flow and earnings expansion throughout the remainder of our fiscal year and beyond."
“Based on current aircraft production rates, our current view of the purchase accounting impact resulting from the Vought acquisition and an increased weighted average share count of 23.7 million shares, we expect that earnings per share from continuing operations for fiscal year 2011 will be approximately $6.75 per diluted share excluding transaction and integration costs. Based on the progress of the Vought integration to date, we now expect to generate annual recurring synergies in excess of $18 million within the first twelve to eighteen months of the acquisition.”
As previously announced, Triumph Group will hold a conference call tomorrow at 8:30 a.m. (ET) to discuss the fiscal year 2011 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 February 1st until February 8th by calling (888) 266-2081 (Domestic) or (703) 925-2533 (International), passcode #1489044.
Triumph Group, Inc., headquartered in Wayne, 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 future aerospace market conditions, aircraft production rates, financial and operational performance, revenue and earnings growth, and earnings results for fiscal 2011. 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, 2010.
| 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 | 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Net sales | $810,853 | $313,530 | $1,986,262 | $942,799 | |||||||||||||
| Operating income | 86,659 | * | 32,938 | 205,626 | * * | 107,936 | |||||||||||
| Interest expense and other | 21,869 | 7,768 | 57,119 | 18,595 | |||||||||||||
| Gain on early extinguishment of debt | 0 | 0 | (39 | ) | |||||||||||||
| Income tax expense | 19,810 | 7,117 | 50,126 | 29,088 | |||||||||||||
| Income from continuing operations | 44,980 | 18,053 | 98,381 | 60,292 | |||||||||||||
| Loss from discontinued operations, net of tax | (336 | ) | (12,453 | ) | (825 | ) | (17,202 | ) | |||||||||
| Net income | $44,644 | $5,600 | $97,556 | $43,090 | |||||||||||||
| Earnings per share - basic: | |||||||||||||||||
| Income from continuing operations | $1.87 | $1.10 | $4.48 | $3.66 | |||||||||||||
| Loss from discontinued operations | ($0.01 | ) | ($0.76 | ) | ($0.04 | ) | ($1.05 | ) | |||||||||
| Net income | $1.85 | ^ | $0.34 | $4.44 | $2.62 | ^ | |||||||||||
| Weighted average common shares outstanding - basic | 24,078 | 16,467 | 21,978 | 16,454 | |||||||||||||
| Earnings per share - diluted: | |||||||||||||||||
| Income from continuing operations | $1.77 | $1.08 | $4.26 | $3.62 | |||||||||||||
| Loss from discontinued operations | ($0.01 | ) | ($0.75 | ) | ($0.04 | ) | ($1.03 | ) | |||||||||
| Net income | $1.75 | ^ | $0.34 | ^ | $4.22 | $2.59 | |||||||||||
| Weighted average common shares outstanding - diluted | 25,475 | 16,688 | 23,106 | 16,641 | |||||||||||||
| Dividends declared and paid per common share | $0.04 | $0.04 | $0.12 | $0.12 | |||||||||||||
| * | Includes $1,000 of acquisition-related expenses associated with the acquisition of Vought. | ||||||||||||||||
| * * | Includes $19,650 of acquisition-related expenses associated with the acquisition of Vought. | ||||||||||||||||
| ^ | Difference due to rounding. | ||||||||||||||||
| FINANCIAL DATA (UNAUDITED) | |||||||||||||
| TRIUMPH GROUP, INC. AND SUBSIDIARIES | |||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||
| BALANCE SHEET | Unaudited | Audited | |||||||||||
| December 31, | March 31, | ||||||||||||
| 2010 | 2010 | ||||||||||||
| Assets | |||||||||||||
| Cash and cash equivalents | $33,263 | $157,218 | |||||||||||
| Accounts receivable, net | 275,719 | 214,497 | |||||||||||
| Inventory, net of unliquidated progress payments of $179,592 and $12,701 | 805,755 | 351,224 | |||||||||||
| Rotable assets | 26,788 | 25,587 | |||||||||||
| Prepaid and other current assets | 22,429 | 18,455 | |||||||||||
| Assets held for sale | 4,828 | 5,051 | |||||||||||
| Current assets | 1,168,782 | 772,032 | |||||||||||
| Property and equipment, net | 732,562 | 327,634 | |||||||||||
| Goodwill | 1,480,302 | 502,074 | |||||||||||
| Intangible assets, net | 960,442 | 79,844 | |||||||||||
| Other, net | 91,888 | 18,392 | |||||||||||
| Total assets | $4,433,976 | $1,699,976 | |||||||||||
| Liabilities & Stockholders' Equity | |||||||||||||
| Current portion of long-term debt | $270,554 | $91,929 | |||||||||||
| Accounts payable | 205,789 | 92,859 | |||||||||||
| Accrued expenses | 305,121 | 98,565 | |||||||||||
| Deferred income taxes, current | 9,811 | - | |||||||||||
| Liabilities related to assets held for sale | 839 | 899 | |||||||||||
| Current liabilities | 792,114 | 284,252 | |||||||||||
| Long-term debt, less current portion | 1,035,209 | 413,851 | |||||||||||
| Accrued pension and post-retirement benefits, noncurrent | 954,331 | 1,397 | |||||||||||
| Deferred income taxes, noncurrent | - | 113,640 | |||||||||||
| Other noncurrent liabilities | 207,323 | 26,150 | |||||||||||
| Stockholders' Equity: | |||||||||||||
|
Common stock, $.001 par value, 100,000,000 shares authorized, 24,347,951 and 16,817,931 shares issued |
24 | 17 | |||||||||||
| Capital in excess of par value | 821,986 | 314,870 | |||||||||||
| Treasury stock, at cost, 116,987 and 144,677 shares | (6,715 | ) | (7,921 | ) | |||||||||
| Accumulated other comprehensive (loss) income | (17,064 | ) | 705 | ||||||||||
| Retained earnings | 646,768 | 553,015 | |||||||||||
| Total stockholders' equity | 1,444,999 | 860,686 | |||||||||||
| Total liabilities and stockholders' equity | $4,433,976 | $1,699,976 | |||||||||||
