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 year ended March 31, 2012, sales mix was as follows: commercial was 52% (compared to 48% in the prior fiscal year), military was 32% (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 2% (compared to 3% in the prior full fiscal year). |
• | The top ten programs represented in the backlog were the 747, 777, G450/G550, V-22, C-17, 737 NG, 787, A330/A340, C-130 and 767 programs, respectively. |
• | For the fiscal year ended March 31, 2012, Boeing commercial, military and space accounted for 46.6% of net sales. |
• | Same store sales for the fiscal year ended March 31, 2012 increased 7% over the prior fiscal year. Aerostructures same store sales for the fiscal year ended March 31, 2012 were $636.9 million, with an increase of 6% over the prior fiscal year. Aerospace Systems same store sales for the fiscal year ended March 31, 2012 was $551.8 million, an increase of 8% over the prior fiscal year. Aftermarket Services same store sales for the fiscal year ended March 31, 2012 was $288.4 million, an increase of 6% over the prior fiscal year. |
• | For the fiscal year ended March 31, 2012, OEM sales represented 87% (compared to 85% in the prior 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) |
• | Export sales for the fiscal year ended March 31, 2012 were $463.9 million, an increase of 17% from the prior fiscal year. Export sales for the fiscal quarter ended March 31, 2012 were $122.1 million, an increase of 8% 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 May 2, 2012 |
Date: | May 4, 2012 | 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 May 2, 2012 |
• | Net sales for fourth quarter fiscal year 2012 increased 3% to $946.4 million |
• | Income from continuing operations for fourth quarter fiscal year 2012 was $106.3 million, or $2.03 per diluted share, which included integration costs of $2.6 million pre tax ($0.03 per diluted share) and a $40.4 million net curtailment gain ($0.50 per diluted share) resulting from amendments made to the Triumph Aerostructures pension plans. Excluding the integration costs and the net curtailment gain, earnings per share from continuing operations increased 46% to $1.57 per diluted share |
• | Record full year revenues and earnings per share from continuing operations of $3,407.9 million and $5.43 per diluted share. Excluding integration costs of $6.3 million pre tax ($0.08 per diluted share) and the $40.4 million net curtailment gain, earnings per share from continuing operations was $5.01 per diluted share |
• | Cash flow from operations for fiscal year 2012 before pension contribution of $121.9 million was $349.1 million |
• | 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 |
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 curtailment gain | 145,483 | 109,662 | 480,657 | 334,938 | |||||||||||||
Acquisition and integration costs | 2,644 | 1,252 | 6,342 | 20,902 | |||||||||||||
Curtailment gain | (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. |
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 | — | 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 | — | 431 | ||||||
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 | (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 |
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 | |||||||||
Aerospace Systems | 4,400 | 4,445 | 17,363 | 17,183 | |||||||||||||
Aftermarket Services | 2,285 | 2,615 | 9,487 | 11,101 | |||||||||||||
Corporate | 1,120 | 506 | 3,761 | 1,922 | |||||||||||||
$ | 30,660 | $ | 32,128 | $ | 119,724 | $ | 99,657 | ||||||||||
Amortization of Acquired Contract Liabilities: | |||||||||||||||||
Aerostructures | $ | (8,180 | ) | $ | (10,389 | ) | $ | (26,684 | ) | $ | (29,214 | ) | |||||
Capital Expenditures: | |||||||||||||||||
Aerostructures | $ | 26,114 | $ | 14,810 | $ | 64,633 | $ | 57,390 | |||||||||
Aerospace Systems | 4,224 | 2,909 | 14,747 | 11,534 | |||||||||||||
Aftermarket Services | 3,078 | 1,454 | 8,682 | 4,656 | |||||||||||||
Corporate | 1,871 | 2,161 | 5,907 | 16,445 | |||||||||||||
$ | 35,287 | $ | 21,334 | $ | 93,969 | $ | 90,025 |
1 | Includes $2,644 and $6,342 of acquisition and integration expenses primarily associated with the acquisition of Vought, for the three and twelve months ended March 31, 2012, respectively. | |||
2 | Includes $40,400 of net curtailment gain due to defined benefit plan amendments for the three and twelve months ended March 31, 2012. | |||
3 | Includes $1,252 and $20,902 of acquisition and integration expenses associated with the acquisition of Vought for the three and twelve months ended March 31, 2011, 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 | Twelve Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA): | ||||||||||||||||
Income from continuing operations | $ | 106,251 | $ | 54,030 | $ | 281,622 | $ | 152,411 | ||||||||
Add-back: | ||||||||||||||||
Income tax expense | 58,526 | 31,940 | 155,955 | 82,066 | ||||||||||||
Interest expense and other | 18,462 | 22,440 | 77,138 | 79,559 | ||||||||||||
Curtailment gain, net | (40,400 | ) | — | (40,400 | ) | — | ||||||||||
Amortization of acquired contract liabilities | (8,180 | ) | (10,389 | ) | (26,684 | ) | (29,214 | ) | ||||||||
Depreciation and amortization | 30,660 | 32,128 | 119,724 | 99,657 | ||||||||||||
Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") | $ | 165,319 | $ | 130,149 | $ | 567,355 | $ | 384,479 | ||||||||
Net sales | $ | 946,376 | $ | 919,086 | $ | 3,407,929 | $ | 2,905,348 | ||||||||
EBITDA Margin | 17.5 | % | 14.2 | % | 16.6 | % | 13.2 | % |
Three Months Ended March 31, 2012 | |||||||||||||||||||||
Segment Data | |||||||||||||||||||||
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA): | Total | Aerostructures | Aerospace Systems | Aftermarket Services | Corporate/Eliminations | ||||||||||||||||
Income from continuing operations | $ | 106,251 | |||||||||||||||||||
Add-back: | |||||||||||||||||||||
Income tax expense | 58,526 | ||||||||||||||||||||
Interest expense and other | 18,462 | ||||||||||||||||||||
Operating income | $ | 183,239 | $ | 119,004 | $ | 26,351 | $ | 10,966 | $ | 26,918 | |||||||||||
Curtailment gain, net | (40,400 | ) | — | — | — | (40,400 | ) | ||||||||||||||
Amortization of acquired contract liabilities | (8,180 | ) | (8,180 | ) | — | — | — | ||||||||||||||
Depreciation and amortization | 30,660 | 22,855 | 4,400 | 2,285 | 1,120 | ||||||||||||||||
Earnings (Losses) before Interest, Taxes, Depreciation and Amortization (EBITDA): | $ | 165,319 | $ | 133,679 | $ | 30,751 | $ | 13,251 | $ | (12,362 | ) | * | |||||||||
Net sales | $ | 946,376 | $ | 714,247 | $ | 151,724 | $ | 83,120 | $ | (2,715 | ) | ||||||||||
EBITDA Margin | 17.5% | 18.7% | 20.3% | 15.9% | n/a |
Twelve Months Ended March 31, 2012 | |||||||||||||||||||||
Segment Data | |||||||||||||||||||||
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA): | Total | Aerostructures | Aerospace Systems | Aftermarket Services | Corporate/Eliminations | ||||||||||||||||
Income from continuing operations | $ | 281,622 | |||||||||||||||||||
Add-back: | |||||||||||||||||||||
Income tax expense | 155,955 | ||||||||||||||||||||
Interest expense and other | 77,138 | ||||||||||||||||||||
Operating income (loss) | $ | 514,715 | $ | 403,414 | $ | 90,035 | $ | 31,859 | $ | (10,593 | ) | ||||||||||
Curtailment gain, net | (40,400 | ) | — | — | — | (40,400 | ) | ||||||||||||||
Amortization of acquired contract liabilities | (26,684 | ) | (26,684 | ) | — | — | — | ||||||||||||||
Depreciation and amortization | 119,724 | 89,113 | 17,363 | 9,487 | 3,761 | ||||||||||||||||
Earnings (Losses) before Interest, Taxes, Depreciation and Amortization ("EBITDA") | $ | 567,355 | $ | 465,843 | $ | 107,398 | $ | 41,346 | $ | (47,232 | ) | ** | |||||||||
Net sales | $ | 3,407,929 | $ | 2,571,576 | $ | 551,800 | $ | 292,674 | $ | (8,121 | ) | ||||||||||
EBITDA Margin | 16.6% | 18.1% | 19.5% | 14.1% | n/a |
* | Includes $2,644 of acquisition and integration expenses primarily associated with the acquisition of Vought. | |||
* * | Includes $6,342 of acquisition and integration expenses primarily associated with the acquisition of Vought. |
Three Months Ended March 31, 2011 | |||||||||||||||||||||
Segment Data | |||||||||||||||||||||
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA): | Total | Aerostructures | Aerospace Systems | Aftermarket Services | Corporate/Eliminations | ||||||||||||||||
Income from continuing operations | $ | 54,030 | |||||||||||||||||||
Add-back: | |||||||||||||||||||||
Income tax expense | 31,940 | ||||||||||||||||||||
Interest expense and other | 22,440 | ||||||||||||||||||||
Operating income (loss) | $ | 108,410 | $ | 91,146 | $ | 22,359 | $ | 6,996 | $ | (12,091 | ) | ||||||||||
Amortization of acquired contract liabilities | (10,389 | ) | (10,389 | ) | — | — | — | ||||||||||||||
Depreciation and amortization | 32,128 | 24,562 | 4,445 | 2,615 | 506 | ||||||||||||||||
Earnings (Losses) before Interest, Taxes, Depreciation and Amortization ("EBITDA") | $ | 130,149 | $ | 105,319 | $ | 26,804 | $ | 9,611 | $ | (11,585 | ) | * | |||||||||
Net sales | $ | 919,086 | $ | 703,461 | $ | 147,809 | $ | 69,536 | $ | (1,720 | ) | ||||||||||
EBITDA Margin | 14.2% | 15.0% | 18.1% | 13.8% | n/a |
Twelve Months Ended March 31, 2011 | |||||||||||||||||||||
Segment Data | |||||||||||||||||||||
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA): | Total | Aerostructures | Aerospace Systems | Aftermarket Services | Corporate / Eliminations | ||||||||||||||||
Income from continuing operations | $ | 152,411 | |||||||||||||||||||
Add-back: | |||||||||||||||||||||
Income tax expense | 82,066 | ||||||||||||||||||||
Interest expense and other | 79,559 | ||||||||||||||||||||
Operating income (loss) | $ | 314,036 | $ | 267,783 | $ | 75,292 | $ | 28,774 | $ | (57,813 | ) | ||||||||||
Amortization of acquired contract liabilities | (29,214 | ) | (29,214 | ) | — | — | — | ||||||||||||||
Depreciation and amortization | 99,657 | 69,451 | 17,183 | 11,101 | 1,922 | ||||||||||||||||
Earnings (Losses) before Interest, Taxes, Depreciation and Amortization ("EBITDA") | $ | 384,479 | $ | 308,020 | $ | 92,475 | $ | 39,875 | $ | (55,891 | ) | * * | |||||||||
Net sales | $ | 2,905,348 | $ | 2,126,040 | $ | 513,435 | $ | 272,728 | $ | (6,855 | ) | ||||||||||
EBITDA Margin | 13.2% | 14.5% | 18.0% | 14.6% | n/a |
* | Includes $1,252 of integration expenses associated with the acquisition of Vought. | |||
* * | Includes $20,902 of acquisition and integration expenses associated with the acquisition of Vought. |
Three Months Ended | Twelve Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Operating income, before acquisition and integration costs and curtailment gain | $ | 145,483 | $ | 109,662 | $ | 480,657 | $ | 334,938 | ||||||||
Acquisition and integration costs | 2,644 | 1,252 | 6,342 | 20,902 | ||||||||||||
Curtailment gain | (40,400 | ) | — | (40,400 | ) | — | ||||||||||
Operating income | 183,239 | 108,410 | 514,715 | 314,036 | ||||||||||||
Income from continuing operations, before acquisition and integration costs and curtailment gain | 81,898 | 54,816 | 259,648 | 168,090 | ||||||||||||
Acquisition and integration costs, net of tax | 1,705 | 786 | 4,084 | 15,679 | ||||||||||||
Curtailment gain, net of tax | (26,058 | ) | — | (26,058 | ) | — | ||||||||||
Income from continuing operations | $ | 106,251 | $ | 54,030 | $ | 281,622 | $ | 152,411 | ||||||||
Income from continuing operations, before acquisition & integration costs and curtailment gain per diluted share | $ | 1.57 | $ | 1.07 | $ | 5.01 | $ | 3.54 | ||||||||
Acquisition and integration costs per diluted share | (0.03 | ) | (0.02 | ) | (0.08 | ) | (0.33 | ) | ||||||||
Curtailment gain per diluted share | 0.50 | — | 0.50 | — | ||||||||||||
Income from continuing operations per diluted share | $ | 2.03 | $ | 1.05 | $ | 5.43 | $ | 3.21 | ||||||||
^ Difference due to rounding. |
Twelve Months Ended | ||||||||
March 31, | ||||||||
2012 | 2011 | |||||||
Cash provided by operations, before pension contributions | $ | 349,112 | $ | 277,106 | ||||
Pension contributions | 121,907 | 134,802 | ||||||
Cash provided by operations | 227,205 | 142,304 | ||||||
Less: | ||||||||
Capital expenditures | 93,969 | 90,025 | ||||||
Dividends | 6,899 | 3,574 | ||||||
Free cash flow available for debt reduction | $ | 126,337 | $ | 48,705 |
March 31, | March 31, | |||||||
2012 | 2011 | |||||||
Calculation of Net Debt | ||||||||
Current portion | $ | 142,237 | $ | 300,252 | ||||
Long-term debt | 1,016,625 | 1,011,752 | ||||||
Total debt | 1,158,862 | 1,312,004 | ||||||
Less: Cash | 29,662 | 39,328 | ||||||
Net debt | $ | 1,129,200 | $ | 1,272,676 | ||||
Calculation of Capital | ||||||||
Net debt | $ | 1,129,200 | $ | 1,272,676 | ||||
Stockholders' equity | 1,793,369 | 1,632,217 | ||||||
Total capital | $ | 2,922,569 | $ | 2,904,893 | ||||
Percent of net debt to capital | 38.6 | % | 43.8 | % |