Delaware | 1-12235 | 51-0347963 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
899 Cassatt Road, Suite 210 | 19312 | |||
Berwyn, Pennsylvania | (Zip Code) | |||
(Address of principal executive offices) |
Item 2.02 | Results of Operations and Financial Condition. |
• | For the fiscal quarter ended September 30, 2011, sales mix was as follows: commercial was 50% (compared to 48% in the prior full fiscal year), military was 33% (compared to 37% in the prior full fiscal year), business jets were 13% (compared to 11% in the prior full fiscal year), regional jets were 1% (same as the prior full fiscal year) and non-aviation was 3% (compared to 3% in the prior full fiscal year). |
• | The top ten programs represented in the backlog were the 747, G450/G550, 777, V-22, 737 NG, 787, C-17, C-130, UH60 and 767 programs, respectively. |
• | For the fiscal quarter ended September 30, 2011, Boeing commercial, military and space accounted for 46% of net sales. |
• | For the fiscal quarter ended September 30, 2011, OEM sales represented 87% (compared to 85% in the prior full fiscal year), Aftermarket sales represented 11% (compared to 12% in the prior full fiscal year), and Other was 2% (compared to 3% in the prior full fiscal year) |
• | Same store sales for the fiscal quarter ended September 30, 2011 were $792.3 million, an increase of 3% over the comparable quarter in the prior fiscal year. Aerostructures same store sales for the fiscal quarter ended September 30, 2011 were $588.0 million, an increase of 2% over the comparable quarter in the prior fiscal year. Aerospace Systems same store sales for the fiscal quarter ended September 30, 2011 were $133.8 million, an increase of 8% over the comparable quarter in the prior fiscal year. Aftermarket Services same store sales for the fiscal quarter ended September 30, 2011 were $70.5 million, an increase of 3% over the comparable quarter in the prior fiscal year. |
• | Export sales for the fiscal quarter ended September 30, 2011 were $111.8 million, an increase of 12% over the comparable quarter in the prior fiscal year. |
Item 9.01 | Financial Statements and Exhibits. | |
(d) | Exhibits. |
Exhibit No. | Description | |
99.1 | Press Release dated October 31, 2011 |
Date: | November 3, 2011 | TRIUMPH GROUP, INC. | |
By: | /s/ John B. Wright, II | ||
John B. Wright, II | |||
Vice President, General Counsel and Secretary |
Exhibit No. | Description | |
99.1 | Press Release dated October 31, 2011 |
Exhibit No. | Description | |
99.1 | Press Release dated October 31, 2011 |
Contact: | |
Sheila Spagnolo | |
Vice President | |
Phone (610) 251-1000 | |
sspagnolo@triumphgroup.com |
• | Net sales for second quarter fiscal year 2012 increased 3% to $790.5 million |
• | Operating income for second quarter fiscal year 2012 increased 26% to $108.5 million, reflecting an operating margin of 14% |
• | Income from continuing operations for second quarter fiscal year 2012 increased 39% to $59.3 million, or $1.15 per diluted share, excluding integration costs |
• | Year to date cash flow from operations before pension contribution of $61.0 million was $122.1 million |
Three Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
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 | $ | — | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.01 | ) | ||||||
Net income | $ | 1.20 | $ | 0.86 | $ | 2.24 | ^ | $ | 1.26 | ^ | |||||||
Weighted average common shares outstanding - basic | 48,697 | 48,115 | 48,582 | 41,845 | |||||||||||||
Earnings per share - diluted: | |||||||||||||||||
Income from continuing operations | $ | 1.13 | $ | 0.84 | $ | 2.13 | $ | 1.22 | |||||||||
Loss from discontinued operations | $ | — | $ | (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 of integration expenses associated with the acquisition of Vought, for the three and six months ended September 30, 2011, respectively. | |||
** | Includes $1,283 and $18,650 of acquisition and integration expenses associated with the acquisition of Vought for the three and six months ended September 30, 2010, respectively. |
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 | — | 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 | — | 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 |
Three Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||||
Net Sales: | |||||||||||||||||
Aerostructures | $ | 587,977 | $ | 577,700 | $ | 1,231,283 | $ | 809,035 | |||||||||
Aerospace Systems | 133,775 | 123,500 | 266,785 | 240,933 | |||||||||||||
Aftermarket Services | 70,547 | 68,686 | 140,915 | 128,483 | |||||||||||||
Elimination of inter-segment sales | (1,771 | ) | (1,686 | ) | (3,392 | ) | (3,042 | ) | |||||||||
$ | 790,528 | $ | 768,200 | $ | 1,635,591 | $ | 1,175,409 | ||||||||||
Operating Income (Loss): | |||||||||||||||||
Aerostructures | $ | 92,489 | $ | 69,964 | $ | 180,463 | $ | 106,030 | |||||||||
Aerospace Systems | 22,644 | 17,149 | 45,061 | 35,497 | |||||||||||||
Aftermarket Services | 7,015 | 8,163 | 13,976 | 12,284 | |||||||||||||
Corporate | (13,692 | ) | (9,159 | ) | (25,664 | ) | (34,844 | ) | |||||||||
$ | 108,456 | * | $ | 86,117 | ** | $ | 213,836 | * | $ | 118,967 | ** | ||||||
Depreciation and Amortization: | |||||||||||||||||
Aerostructures | $ | 21,937 | $ | 18,774 | $ | 43,782 | $ | 26,818 | |||||||||
Aerospace Systems | 4,322 | 4,214 | 8,667 | 8,403 | |||||||||||||
Aftermarket Services | 2,341 | 3,043 | 4,771 | 6,086 | |||||||||||||
Corporate | 866 | 190 | 1,713 | 570 | |||||||||||||
$ | 29,466 | $ | 26,221 | $ | 58,933 | $ | 41,877 | ||||||||||
Amortization of Acquired Contract Liabilities: | |||||||||||||||||
Aerostructures | $ | (5,770 | ) | $ | (8,722 | ) | $ | (13,510 | ) | $ | (9,581 | ) | |||||
Capital Expenditures: | |||||||||||||||||
Aerostructures | $ | 12,590 | $ | 17,263 | $ | 21,725 | $ | 22,560 | |||||||||
Aerospace Systems | 3,009 | 3,758 | 6,514 | 6,262 | |||||||||||||
Aftermarket Services | 1,342 | 1,454 | 3,104 | 2,348 | |||||||||||||
Corporate | 1,314 | 1,813 | 2,577 | 10,058 | |||||||||||||
$ | 18,255 | $ | 24,288 | $ | 33,920 | $ | 41,228 |
* | Includes $1,144 and $1,604 of integration expenses associated with the acquisition of Vought, for the three and six months ended September 30, 2011, respectively. | |||
** | Includes $1,283 and $18,650 of acquisition and integration expenses associated with the acquisition of Vought for the three and six months ended September 30, 2010, respectively. |
• | Amortization of acquired contract liabilities may be useful for investors to consider because it represents the non-cash earnings on the fair value of below market contracts acquired through the acquisition of Vought. We do not believe these earnings necessarily reflect the current and ongoing cash earnings related to our operations. |
• | Amortization expenses may be useful for investors to consider because it represents the estimated attrition of our acquired customer base and the diminishing value of product rights and licenses. We do not believe these charges necessarily reflect the current and ongoing cash charges related to our operating cost structure. |
• | Depreciation may be useful for investors to consider because they generally represent the wear and tear on our property and equipment used in our operations. We do not believe these charges necessarily reflect the current and ongoing cash charges related to our operating cost structure. |
• | The amount of interest expense and other we incur may be useful for investors to consider and may result in current cash inflows or outflows. However, we do not consider the amount of interest expense and other to be a representative component of the day-to-day operating performance of our business. |
• | Income tax expense may be useful for investors to consider because it generally represents the taxes which may be payable for the period and the change in deferred income taxes during the period and may reduce the amount of funds otherwise available for use in our business. However, we do not consider the amount of income tax expense to be a representative component of the day-to-day operating performance of our business. |
Three Months Ended | Six Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA): | ||||||||||||||||
Income from continuing operations | $ | 58,564 | $ | 41,821 | $ | 109,468 | $ | 53,401 | ||||||||
Add-back: | ||||||||||||||||
Income tax expense | 32,221 | 20,837 | 60,235 | 30,316 | ||||||||||||
Interest expense and other | 17,671 | 23,459 | 44,133 | 35,250 | ||||||||||||
Amortization of acquired contract liabilities | (5,770 | ) | (8,722 | ) | (13,510 | ) | (9,581 | ) | ||||||||
Depreciation and amortization | 29,466 | 26,221 | 58,933 | 41,877 | ||||||||||||
Earnings before Interest, Taxes, Depreciation | ||||||||||||||||
and Amortization ("EBITDA") | $ | 132,152 | $ | 103,616 | $ | 259,259 | $ | 151,263 | ||||||||
Net sales | $ | 790,528 | $ | 768,200 | $ | 1,635,591 | $ | 1,175,409 | ||||||||
EBITDA Margin | 16.7 | % | 13.5 | % | 15.9 | % | 12.9 | % |
Three Months Ended September 30, 2011 | |||||||||||||||||||||
Segment Data | |||||||||||||||||||||
Total | Aerostructurers | Aerospace Systems | Aftermarket Services | Corporate/Eliminations | |||||||||||||||||
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA): | |||||||||||||||||||||
Income from continuing operations | $ | 58,564 | |||||||||||||||||||
Add-back: | |||||||||||||||||||||
Income tax expense | 32,221 | ||||||||||||||||||||
Interest expense and other | 17,671 | ||||||||||||||||||||
Operating income (loss) | $ | 108,456 | $ | 92,489 | $ | 22,644 | $ | 7,015 | $ | (13,692 | ) | ||||||||||
Amortization of acquired contract liabilities | (5,770 | ) | (5,770 | ) | — | — | — | ||||||||||||||
Depreciation and amortization | 29,466 | 21,937 | 4,322 | 2,341 | 866 | ||||||||||||||||
Earnings (Losses) before Interest, Taxes, Depreciation and Amortization (EBITDA): | $ | 132,152 | $ | 108,656 | $ | 26,966 | $ | 9,356 | $ | (12,826 | ) | * | |||||||||
Net sales | $ | 790,528 | $ | 587,977 | $ | 133,775 | $ | 70,547 | $ | (1,771 | ) | ||||||||||
EBITDA Margin | 16.7 | % | 18.5 | % | 20.2 | % | 13.3 | % | n/a |
Six Months Ended September 30, 2011 | |||||||||||||||||||||
Segment Data | |||||||||||||||||||||
Total | Aerostructurers | Aerospace Systems | Aftermarket Services | Corporate/Eliminations | |||||||||||||||||
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA): | |||||||||||||||||||||
Income from continuing operations | $ | 109,468 | |||||||||||||||||||
Add-back: | |||||||||||||||||||||
Income tax expense | 60,235 | ||||||||||||||||||||
Interest expense and other | 44,133 | ||||||||||||||||||||
Operating income (loss) | $ | 213,836 | $ | 180,463 | $ | 45,061 | $ | 13,976 | $ | (25,664 | ) | ||||||||||
Amortization of acquired contract liabilities | (13,510 | ) | (13,510 | ) | — | — | — | ||||||||||||||
Depreciation and amortization | 58,933 | 43,782 | 8,667 | 4,771 | 1,713 | ||||||||||||||||
Earnings (Losses) before Interest, Taxes, Depreciation and Amortization ("EBITDA") | $ | 259,259 | $ | 210,735 | $ | 53,728 | $ | 18,747 | $ | (23,951 | ) | ** | |||||||||
Net sales | $ | 1,635,591 | $ | 1,231,283 | $ | 266,785 | $ | 140,915 | $ | (3,392 | ) | ||||||||||
EBITDA Margin | 15.9 | % | 17.1 | % | 20.1 | % | 13.3 | % | n/a |
* | Includes $1,144 of integration expenses associated with the acquisition of Vought. | |||
* * | Includes $1,604 of integration expenses associated with the acquisition of Vought. |
Three Months Ended September 30, 2010 | |||||||||||||||||||||
Segment Data | |||||||||||||||||||||
Total | Aerostructurers | Aerospace Systems | Aftermarket Services | Corporate/Eliminations | |||||||||||||||||
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA): | |||||||||||||||||||||
Income from continuing operations | $ | 41,821 | |||||||||||||||||||
Add-back: | |||||||||||||||||||||
Income tax expense | 20,837 | ||||||||||||||||||||
Interest expense and other | 23,459 | ||||||||||||||||||||
Operating income (loss) | $ | 86,117 | $ | 69,964 | $ | 17,149 | $ | 8,163 | $ | (9,159 | ) | ||||||||||
Amortization of acquired contract liabilities | (8,722 | ) | (8,722 | ) | — | — | — | ||||||||||||||
Depreciation and amortization | 26,221 | 18,774 | 4,214 | 3,043 | 190 | ||||||||||||||||
Earnings (Losses) before Interest, Taxes, Depreciation and Amortization ("EBITDA") | $ | 103,616 | $ | 80,016 | $ | 21,363 | $ | 11,206 | $ | (8,969 | ) | * | |||||||||
Net sales | $ | 768,200 | $ | 577,700 | $ | 123,500 | $ | 68,686 | $ | (1,686 | ) | ||||||||||
EBITDA Margin | 13.5 | % | 13.9 | % | 17.3 | % | 16.3 | % | n/a |
Six Months Ended September 30, 2010 | |||||||||||||||||||||
Segment Data | |||||||||||||||||||||
Total | Aerostructures | Aerospace Systems | Aftermarket Services | Corporate / Eliminations | |||||||||||||||||
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA): | |||||||||||||||||||||
Income from continuing operations | $ | 53,401 | |||||||||||||||||||
Add-back: | |||||||||||||||||||||
Income tax expense | 30,316 | ||||||||||||||||||||
Interest expense and other | 35,250 | ||||||||||||||||||||
Operating income (loss) | $ | 118,967 | $ | 106,030 | $ | 35,497 | $ | 12,284 | $ | (34,844 | ) | ||||||||||
Amortization of acquired contract liabilities | (9,581 | ) | (9,581 | ) | — | — | — | ||||||||||||||
Depreciation and amortization | 41,877 | 26,818 | 8,403 | 6,086 | 570 | ||||||||||||||||
Earnings (Losses) before Interest, Taxes, Depreciation and Amortization ("EBITDA") | $ | 151,263 | $ | 123,267 | $ | 43,900 | $ | 18,370 | $ | (34,274 | ) | * * | |||||||||
Net sales | $ | 1,175,409 | $ | 809,035 | $ | 240,933 | $ | 128,483 | $ | (3,042 | ) | ||||||||||
EBITDA Margin | 12.9 | % | 15.2 | % | 18.2 | % | 14.3 | % | n/a |
* | Includes $1,283 of integration expenses associated with the acquisition of Vought. | |||
* * | Includes $18,650 of acquisition and integration expenses associated with the acquisition of Vought. |
Six Months Ended | ||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
Cash provided by operations, before pension contributions | $ | 122,063 | $ | 123,616 | ||||
Pension contributions | 60,953 | 5,908 | ||||||
Cash provided by operations | 61,110 | 117,708 | ||||||
Less: | ||||||||
Capital expenditures | 33,920 | 41,228 | ||||||
Dividends | 2,943 | 1,636 | ||||||
Free cash flow available for debt reduction | $ | 24,247 | $ | 74,844 |
September 30, | March 31, | |||||||
2011 | 2011 | |||||||
Calculation of Net Debt | ||||||||
Current portion | $ | 165,451 | $ | 300,252 | ||||
Long-term debt | 1,099,091 | 1,011,752 | ||||||
Total debt | 1,264,542 | 1,312,004 | ||||||
Less: Cash | 34,750 | 39,328 | ||||||
Net debt | $ | 1,229,792 | $ | 1,272,676 | ||||
Calculation of Capital | ||||||||
Net debt | $ | 1,229,792 | $ | 1,272,676 | ||||
Stockholders' equity | 1,740,799 | 1,632,217 | ||||||
Total capital | $ | 2,970,591 | $ | 2,904,893 | ||||
Percent of net debt to capital | 41.4 | % | 43.8 | % |