Dépêches
Triumph Group Reports Strong Second Quarter Fiscal 2012 Earnings; Raises Fiscal Year 2012 Guidance
Dépèche transmise le 31 octobre 2011 par Business Wire
BERWYN, Pa.--(BUSINESS WIRE)--Triumph Group, Inc. (NYSE: TGI) today reported that net sales for the second quarter of fiscal year ending March 31, 2012 totaled $790.5 million, a three percent increase from last year’s second quarter net sales of $768.2 million, all of which was organic. Net sales for the quarter reflected less non-recurring revenue principally related to development of the Boeing 747 as compared to the prior year quarter. In addition, there were two fewer 747 shipments in the current quarter related to Boeing’s previously announced pause in production. Excluding the impact of both of these items, year over year revenue growth would have been in excess of ten percent. Income from continuing operations for the second quarter of fiscal year 2012 increased forty percent to $58.6 million, or $1.13 per diluted share, versus $41.8 million, or $0.84 per diluted share, for the second quarter of the prior fiscal year. The quarter’s results included $1.1 million pretax ($0.7 million after tax or $0.02 per diluted share) of integration expenses related to the acquisition of Vought Aircraft Industries (now Triumph Aerostructures-Vought Aircraft Division). The prior fiscal year’s quarter included $1.3 million pretax ($0.8 million after tax) of integration costs associated with the Vought acquisition. Excluding these costs, income from continuing operations for the quarter was $59.3 million, or $1.15 per diluted share. The number of shares used in computing diluted earnings per share for the second quarter of fiscal year 2012 was 51.6 million shares and reflected the previously announced two-for-one stock split.
Net sales for the first six months of fiscal year 2012 were $1.636 billion, a thirty-nine percent increase from net sales of $1.175 billion last fiscal year. Income from continuing operations for the first six months of fiscal year 2012 increased 105 percent to $109.5 million, or $2.13 per diluted share, versus $53.4 million, or $1.22 per diluted share, in the prior year period. The year to date results included $1.6 million pretax ($1.0 million after tax or $0.02 per diluted share) of integration expenses related to the Vought acquisition. The prior fiscal year period included $18.7 million pretax ($14.0 million after tax) of transaction and integration expenses associated with the Vought acquisition. Excluding these costs, income from continuing operations for the first six months of fiscal year 2012 was $110.5 million, or $2.15 per diluted share. Net income for the first six months of fiscal year 2012 increased 105 percent to $108.7 million, or $2.11 per diluted share, versus $52.9 million, or $1.21 per diluted share, in the prior year period. During the six months ended September 30, 2011, the company generated $122.1 million of cash flow from operations before Triumph Aerostructures’ pension contribution of $61.0 million; after this contribution, cash flow from operations was $61.1 million. The year to date cash flow was negatively impacted by a $51.0 million contractual payment that was due at the end of September but not received until the beginning of October.
Segment Results
Aerostructures
The Aerostructures segment reported net sales for the quarter of $588.0 million compared to $577.7 million in the prior year period, an increase of two percent, all of which was organic. The segment’s revenue for the quarter reflected less non-recurring revenue principally related to development of the Boeing 747 as compared to the prior year quarter. In addition, there were two fewer 747 shipments in the current quarter related to Boeing’s previously announced pause in production. Excluding the impact of both of these items, year over year revenue growth would have been in excess of ten percent. Operating income for the second quarter of fiscal year 2012 was $92.5 million compared to $70.0 million for the prior year period, an increase of thirty-two percent. The segment’s operating margin for the quarter increased to sixteen percent, a 360 basis points improvement over the prior year period.
Aerospace Systems
The Aerospace Systems segment reported net sales for the quarter of $133.8 million, compared to $123.5 million in the prior year period, an increase of eight percent, all of which was organic. Operating income for the second quarter of fiscal year 2012 was $22.6 million compared to $17.1 million for the prior year period, an increase of thirty-two percent. Operating margin for the quarter was seventeen percent, an increase of 300 basis points over the prior year period. The segment’s operating results included $0.5 million of legal expenses associated with the ongoing trade secret litigation.
Aftermarket Services
The Aftermarket Services segment reported net sales for the quarter of $70.5 million, compared to $68.7 million in the prior year period, an increase of three percent, which brings year to date sales growth to ten percent. All of the segment’s sales were organic. Operating income for the second quarter of fiscal year 2012 was $7.0 million compared to $8.2 million (which included a gain of $0.7 million on the sale of certain intellectual property) for the prior year period. Operating margin for the quarter was ten percent.
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, “This was another strong quarter for Triumph, driven by significant operating income growth and a 250 basis point expansion in year over year operating margin. We are particularly proud of the strong operating margins we generated in our Aerospace Systems segment as well as our Aerostructures segment, both of which were a result of good execution. Our Aerostructures segment margins also benefited from the synergies we realized from the Vought acquisition.”
“Based on our strong year to date performance, current production rates and a weighted average share count of 51.6 million shares, we are reaffirming our revenue guidance for fiscal year 2012 of $3.2 to $3.5 billion and are raising our full year earnings guidance to earnings per share from continuing operations of approximately $4.50 per diluted share 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 second 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 November 1st until November 7th by calling (888) 266-2081 (Domestic) or (703) 925-2533 (International), passcode #1554799.
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 | Six Months Ended | ||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||
| CONDENSED STATEMENTS OF INCOME | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||
| Net sales | $ | 790,528 | $ | 768,200 | $ | 1,635,591 | $ | 1,175,409 | |||||||||||||
| Operating income | 108,456 | * | 86,117 | * * | 213,836 | * | 118,967 | * * | |||||||||||||
| Interest expense and other | 17,671 | 23,459 | 44,133 | 35,250 | |||||||||||||||||
| Income tax expense | 32,221 | 20,837 | 60,235 | 30,316 | |||||||||||||||||
| Income from continuing operations | 58,564 | 41,821 | 109,468 | 53,401 | |||||||||||||||||
| Loss from discontinued operations, net of tax | (76 | ) | (281 | ) | (765 | ) | (489 | ) | |||||||||||||
| Net income | $ | 58,488 | $ | 41,540 | $ | 108,703 | $ | 52,912 | |||||||||||||
| Earnings per share - basic: | |||||||||||||||||||||
| Income from continuing operations | $ | 1.20 | $ | 0.87 | $ | 2.25 | $ | 1.28 | |||||||||||||
| Loss from discontinued operations | (0.00 | ) | (0.01 | ) | (0.02 | ) | (0.01 | ) | |||||||||||||
| Net income | $ | 1.20 | $ | 0.86 | $ | 2.24 | ^ | $ | 1.26 | ^ | |||||||||||
| Weighted average common shares outstanding - basic | 48,697 | 48,115 | 48,562 | 41,845 | |||||||||||||||||
| Earnings per share - diluted: | |||||||||||||||||||||
| Income from continuing operations | $ | 1.13 | $ | 0.84 | $ | 2.13 | $ | 1.22 | |||||||||||||
| Loss from discontinued operations | (0.00 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | |||||||||||||
| Net income | $ | 1.13 | $ | 0.83 | $ | 2.11 | ^ | $ | 1.21 | ||||||||||||
| Weighted average common shares outstanding - diluted | 51,646 | 50,036 | 51,478 | 43,782 | |||||||||||||||||
| Dividends declared and paid per common share | $ | 0.04 | $ | 0.02 | $ | 0.06 | $ | 0.04 | |||||||||||||
| ^ | Difference due to rounding. | |
| * |
Includes $1,144 and $1,604, respectively, of integration expenses associated with the acquisition of Vought for the three and six months ended September 30, 2011. |
|
| * * |
Includes $1,283 and $18,650, respectively, of acquisition and integration expenses associated with the acquisition of Vought for the three and six months ended September 30, 2010. |
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| FINANCIAL DATA (UNAUDITED) | |||||||||||||||
| TRIUMPH GROUP, INC. AND SUBSIDIARIES | |||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||
| BALANCE SHEET | Unaudited | Audited | |||||||||||||
| September 30, | March 31, | ||||||||||||||
| 2011 | 2011 | ||||||||||||||
| Assets | |||||||||||||||
| Cash and cash equivalents | $ | 34,750 | $ | 39,328 | |||||||||||
| Accounts receivable, net | 364,590 | 374,491 | |||||||||||||
| Inventory, net of unliquidated progress payments of $121,389 and $138,206 | 818,126 | 781,714 | |||||||||||||
| Rotable assets | 32,221 | 26,607 | |||||||||||||
| Prepaid and other current assets | 24,958 | 18,141 | |||||||||||||
| Assets held for sale | 0 | 4,574 | |||||||||||||
| Current assets | 1,274,645 | 1,244,855 | |||||||||||||
| Property and equipment, net | 719,949 | 734,879 | |||||||||||||
| Goodwill | 1,531,106 | 1,530,580 | |||||||||||||
| Intangible assets, net | 842,502 | 859,620 | |||||||||||||
| Other, net | 52,717 | 93,303 | |||||||||||||
| Total assets | $ | 4,420,919 | $ | 4,463,237 | |||||||||||
| Liabilities & Stockholders' Equity | |||||||||||||||
| Current portion of long-term debt | $ | 165,451 | $ | 300,252 | |||||||||||
| Accounts payable | 264,762 | 262,716 | |||||||||||||
| Accrued expenses | 284,002 | 313,354 | |||||||||||||
| Deferred income taxes | 99,809 | 78,793 | |||||||||||||
| Liabilities related to assets held for sale | 0 | 431 | |||||||||||||
| Current liabilities | 814,024 | 955,546 | |||||||||||||
| Long-term debt, less current portion | 1,099,091 | 1,011,752 | |||||||||||||
| Accrued pension and post-retirement benefits, noncurrent | 601,964 | 680,754 | |||||||||||||
| Other noncurrent liabilities | 165,041 | 180,462 | |||||||||||||
| Temporary equity | - | 2,506 | |||||||||||||
| Stockholders' Equity: | |||||||||||||||
|
Common stock, $.001 par value, 100,000,000 shares authorized, 49,205,763 and 48,690,606 shares issued |
49 | 49 | |||||||||||||
| Capital in excess of par value | 827,999 | 819,197 | |||||||||||||
| Treasury stock, at cost, 156,903 and 177,184 shares | (4,711 | ) | (5,085 | ) | |||||||||||
| Accumulated other comprehensive income | 114,439 | 120,471 | |||||||||||||
| Retained earnings | 803,023 | 697,585 | |||||||||||||
| Total stockholders' equity | 1,740,799 | 1,632,217 | |||||||||||||
| Total liabilities and stockholders' equity | $ | 4,420,919 | $ | 4,463,237 | |||||||||||
