Exhibit 99.1
NEWS RELEASE
Contact: April Harper Director, Marketing & Communications Phone (610) 251-1000 aharper@triumphgroup.com |
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Thomas A. Quigley, III VP, Investor Relations and Controller Phone (610) 251-1000 tquigley@triumphgroup.com |
TRIUMPH REPORTS FIRST QUARTER FISCAL 2023 RESULTS
UPDATES FISCAL 2023 SALES & EARNINGS GUIDANCE
BERWYN, Pa. – August 3, 2022 – 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
Fiscal 2023 Guidance
“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.
1
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 |
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|
EPS |
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|||
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 |
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|
|||
* Difference due to rounding |
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|||
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
2
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
3
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(in thousands, except per share data)
|
|
Three Months Ended |
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|||||
|
|
June 30, |
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|||||
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: |
|
|
|
|
|
|
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Net loss |
|
$ |
(0.16 |
) |
|
$ |
(0.47 |
) |
Weighted average common shares outstanding - diluted |
|
|
64,820 |
|
|
|
64,299 |
|
|
|
|
|
|
|
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4
(Continued)
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands, except share data)
BALANCE SHEETS |
|
Unaudited |
|
|
Audited |
|
||
Assets |
|
|
|
|
|
|
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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 |
|
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507,988 |
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513,722 |
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Intangible assets, net |
|
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81,875 |
|
|
|
84,850 |
|
Other, net |
|
|
26,927 |
|
|
|
30,476 |
|
Total assets |
|
$ |
1,667,461 |
|
|
$ |
1,761,166 |
|
Liabilities & Stockholders' Deficit |
|
|
|
|
|
|
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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: |
|
|
|
|
|
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Common stock, $.001 par value, 100,000,000 shares authorized, 64,920,381 |
|
|
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 |
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(1,307,491 |
) |
|
|
(1,297,149 |
) |
Total stockholders' deficit |
|
|
(805,287 |
) |
|
|
(787,423 |
) |
Total liabilities and stockholders' deficit |
|
$ |
1,667,461 |
|
|
$ |
1,761,166 |
|
|
|
|
|
|
|
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5
(Continued)
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands, except share data)
|
|
Three Months Ended June 30, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Operating Activities |
|
|
|
|
|
|
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Net loss |
|
$ |
(10,342 |
) |
|
$ |
(30,351 |
) |
Adjustments to reconcile net loss to net cash used in |
|
|
|
|
|
|
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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 |
|
|
|
|
|
|
||
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 |
|
|
(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 |
|
6
(Continued)
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 |
|
|
|
|
|
|
|
|
||
7
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.
8
(Continued)
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:
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.
9
Continued)
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, |
|
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 |
|
$ |
51,366 |
|
|
$ |
57,621 |
|
Non-service defined benefit income (excluding pension charges) |
|
|
(8,586 |
) |
|
|
(14,356 |
) |
Adjusted Earnings before Interest, Taxes, Depreciation |
|
$ |
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, |
|
Total |
|
|
Systems & |
|
|
Aerospace |
|
|
Corporate/ |
|
||||
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, |
|
$ |
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 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
10
(Continued)
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, |
|
Total |
|
|
Systems & |
|
|
Aerospace |
|
|
Corporate/ |
|
||||
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, |
|
$ |
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
11
(Continued)
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 |
|
|||||||||
|
|
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 |
|
|||||||||
|
|
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 |
|
|
12
(Continued)
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 |
|
|||||
|
|
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 |
|
|
Fiscal 2023 |
|||||
$ 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.
13