Exhibit 99.1
NEWS RELEASE
Contact:
Sheila Spagnolo
Vice President
Phone (610) 251-1000
sspagnolo@triumphgroup.com
TRIUMPH GROUP REPORTS STRONG
FIRST QUARTER FISCAL 2013 EARNINGS;
RAISES FISCAL YEAR 2013 GUIDANCE
• | Net sales for first quarter fiscal year 2013 increased 5% to $887.7 million |
• | Operating income for first quarter fiscal year 2013 increased 34% to $140.9 million, reflecting an operating margin of 16% |
• | Income from continuing operations for first quarter fiscal year 2013 was $76.3 million, or $1.46 per diluted share, which included integration costs of $0.5 million pre-tax ($0.01 per diluted share) and a $1.2 million pre-tax charge ($0.01 per diluted share) for early retirement incentives offered to certain Triumph Aerostructures employees. Excluding integration costs and the early retirement incentives, earnings per share from continuing operations increased 48% to $1.48 per diluted share |
• | Record cash flow from operations for first quarter fiscal 2013 was $127.6 million prior to pension contributions of $25.1 million |
Berwyn, PA - July 26, 2012- Triumph Group, Inc. (NYSE: TGI) today reported that net sales for the first quarter of fiscal year ending March 31, 2013 totaled $887.7 million, a five percent increase from last year's first quarter net sales of $845.1 million. Organic sales growth for the quarter was five percent.
Income from continuing operations for the first quarter of fiscal year 2013 was $76.3 million, or $1.46 per diluted share, versus $50.9 million, or $0.99 per diluted share, for the first quarter of the prior fiscal year. The quarter's results included approximately $0.5 million pre-tax ($0.3 million after tax or $0.01 per diluted share) of integration costs related to the acquisition of Vought Aircraft Industries (now Triumph Aerostructures- Vought Aircraft Division). In addition, the first quarter results included a charge of $1.2 million pre-tax ($0.7 million after tax or $0.01 per diluted share) for early retirement incentives offered to certain Triumph Aerostructures employees. The prior fiscal year's quarter included $0.5 million pre-tax ($0.3 million after tax) of integration costs associated with the Vought acquisition. Excluding integration costs and the early retirement incentives, income from continuing operations for the quarter was $77.4 million, or $1.48 per diluted share.
Income tax expense for the quarter included approximately $2.2 million of additional tax, or $0.04 per diluted share, due to the recapture of domestic production deductions taken in earlier years associated with a refund claim expected to be filed in the second quarter. The number of shares used in computing earnings per share for the first quarter of fiscal year 2013 was 52.3 million shares. During the quarter, the company generated $127.6 million of cash flow from operations before Triumph Aerostructures' pension contribution of $25.1 million; after this contribution, cash flow from operations was $102.5 million.
Segment Results
Aerostructures
The Aerostructures segment reported net sales for the quarter of $669.9 million, compared to $643.3 million in the prior year period, an increase of four percent, all of which was organic. Operating income for the first quarter of fiscal year 2013 was $120.1 million compared to $88.0 million for the prior year period, an increase of thirty-seven percent, and included a net unfavorable cumulative catch-up adjustment on long-term contracts of $1.3 million offset by a favorable $7.0 million settlement of a termination claim. As a result of improved execution, synergy realization, lower pension expense and the favorable termination claim, the segment's operating margin for the quarter was eighteen percent.
Aerospace Systems
The Aerospace Systems segment reported net sales for the quarter of $140.5 million, compared to $133.0 million in the prior year period, an increase of six percent, all of which was organic. Operating income for the first quarter of fiscal year 2013 was $23.5 million compared to $22.4 million for the prior year period, an increase of five percent. Operating margin for the quarter was seventeen percent. The segment's operating results included $1.7 million of legal expenses associated with the previously reported trade secret litigation.
Aftermarket Services
The Aftermarket Services segment reported net sales for the quarter of $80.0 million, compared to $70.4 million in the prior year period, an increase of fourteen percent. Organic sales growth for the quarter was nine percent. Operating income for the first quarter of fiscal year 2013 was $11.8 million compared to $7.0 million for the prior year period, an increase of seventy percent. Operating margin for the quarter was fifteen percent, a 490 basis points improvement over the prior year and a 160 basis points improvement sequentially.
Outlook
Commenting on the company's performance and its outlook for fiscal year 2013, Jeffry D. Frisby, Triumph's President and Chief Executive Officer, said, “Triumph had a strong start to the year highlighted by increased revenues, significant operating income growth and year-over-year operating margin expansion. We generated record cash flow during the quarter and strengthened our balance sheet by reducing our debt as well as increasing the size and extending the term of our revolving credit facility. Our backlog is strong and, on balance, our end markets remain favorable. These key elements position us well to capitalize on new opportunities and to deliver value to our customers and shareholders.”
“Given our performance in the quarter and based on current production rates and a weighted average share count of 52.5 million shares, we are reaffirming our revenue guidance for fiscal year 2013 of $3.5 to $3.7 billion and are raising our full year earnings guidance to earnings per share from continuing operations of approximately $5.65 per diluted share, excluding integration costs and early retirement incentives.”
As previously announced, Triumph Group will hold a conference call tomorrow at 8:30 a.m. (ET) to discuss the fiscal year 2013 first 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 July 27th until August 3rd by calling (888) 266-2081 (Domestic) or (703) 925-2533 (International), passcode #1584666.
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 2013. 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, 2012.
FINANCIAL DATA (UNAUDITED) ON FOLLOWING PAGES
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(in thousands, except per share data)
Three Months Ended | |||||||||
June 30, | |||||||||
CONDENSED STATEMENTS OF INCOME | 2012 | 2011 | |||||||
Net sales | $ | 887,688 | $ | 845,063 | |||||
Operating income, before acquisition and integration costs and early retirement incentives | 142,637 | 105,840 | |||||||
Acquisition and integration costs | 545 | 460 | |||||||
Early retirement incentives | 1,150 | — | |||||||
Operating income | 140,942 | 105,380 | |||||||
Interest expense and other | 17,232 | 26,462 | |||||||
Income tax expense | 47,378 | 28,014 | |||||||
Income from continuing operations | 76,332 | 50,904 | |||||||
Loss from discontinued operations, net of tax | — | (689 | ) | ||||||
Net income | $ | 76,332 | $ | 50,215 | |||||
Earnings per share - basic: | |||||||||
Income from continuing operations | $ | 1.54 | $ | 1.05 | |||||
Loss from discontinued operations | — | (0.01 | ) | ||||||
Net income | $ | 1.54 | $ | 1.04 | |||||
Weighted average common shares outstanding - basic | 49,416 | 48,466 | |||||||
Earnings per share - diluted: | |||||||||
Income from continuing operations | $ | 1.46 | $ | 0.99 | |||||
Loss from discontinued operations | — | (0.01 | ) | ||||||
Net income | $ | 1.46 | $ | 0.98 | |||||
Weighted average common shares outstanding - diluted | 52,271 | 51,299 | |||||||
Dividends declared and paid per common share | $ | 0.04 | $ | 0.02 | |||||
-More-
(Continued)
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands, except per share data)
BALANCE SHEET | Unaudited | Audited | ||||||
June 30, | March 31, | |||||||
2012 | 2012 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 31,996 | $ | 29,662 | ||||
Accounts receivable, net | 364,051 | 440,608 | ||||||
Inventory, net of unliquidated progress payments of $157,330 and $164,450 | 868,300 | 817,956 | ||||||
Rotable assets | 35,419 | 34,554 | ||||||
Deferred income taxes | 60,103 | 72,259 | ||||||
Prepaid and other current assets | 47,921 | 23,344 | ||||||
Current assets | 1,407,790 | 1,418,383 | ||||||
Property and equipment, net | 745,230 | 733,380 | ||||||
Goodwill | 1,544,810 | 1,546,374 | ||||||
Intangible assets, net | 820,825 | 829,676 | ||||||
Other, net | 28,077 | 26,944 | ||||||
Total assets | $ | 4,546,732 | $ | 4,554,757 | ||||
Liabilities & Stockholders' Equity | ||||||||
Current portion of long-term debt | $ | 129,025 | $ | 142,237 | ||||
Accounts payable | 279,724 | 266,124 | ||||||
Accrued expenses | 258,087 | 311,620 | ||||||
666,836 | 719,981 | |||||||
Long-term debt, less current portion | 972,224 | 1,016,625 | ||||||
Accrued pension and post-retirement benefits, noncurrent | 666,248 | 700,125 | ||||||
Deferred income taxes, noncurrent | 245,623 | 188,370 | ||||||
Other noncurrent liabilities | 128,988 | 136,287 | ||||||
Stockholders' Equity: | ||||||||
Common stock, $.001 par value, 100,000,000 shares authorized, 50,002,759 and 49,590,273 shares issued | 50 | 50 | ||||||
Capital in excess of par value | 838,987 | 833,935 | ||||||
Treasury stock, at cost, 76,994 and 58,533 shares | (13,663 | ) | (1,716 | ) | ||||
Accumulated other comprehensive loss | (3,210 | ) | (9,306 | ) | ||||
Retained earnings | 1,044,649 | 970,406 | ||||||
Total stockholders' equity | 1,866,813 | 1,793,369 | ||||||
Total liabilities and stockholders' equity | $ | 4,546,732 | $ | 4,554,757 | ||||
-More-
(Continued)
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
SEGMENT DATA | Three Months Ended | ||||||||
June 30, | |||||||||
2012 | 2011 | ||||||||
Net Sales: | |||||||||
Aerostructures | $ | 669,853 | $ | 643,306 | |||||
Aerospace Systems | 140,512 | 133,010 | |||||||
Aftermarket Services | 79,977 | 70,368 | |||||||
Elimination of inter-segment sales | (2,654 | ) | (1,621 | ) | |||||
$ | 887,688 | $ | 845,063 | ||||||
Operating Income (Loss): | |||||||||
Aerostructures | $ | 120,138 | $ | 87,974 | |||||
Aerospace Systems | 23,465 | 22,417 | |||||||
Aftermarket Services | 11,807 | 6,961 | |||||||
Corporate | (14,468 | ) | 2 | (11,972 | ) | ||||
$ | 140,942 | 1 | $ | 105,380 | 3 | ||||
Depreciation and Amortization: | |||||||||
Aerostructures | $ | 23,904 | $ | 21,845 | |||||
Aerospace Systems | 4,474 | 4,345 | |||||||
Aftermarket Services | 2,326 | 2,430 | |||||||
Corporate | 1,111 | 847 | |||||||
$ | 31,815 | $ | 29,467 | ||||||
Amortization of Acquired Contract Liabilities: | |||||||||
Aerostructures | $ | (6,993 | ) | $ | (7,740 | ) | |||
Capital Expenditures: | |||||||||
Aerostructures | $ | 30,012 | $ | 9,134 | |||||
Aerospace Systems | 2,789 | 3,505 | |||||||
Aftermarket Services | 4,097 | 1,762 | |||||||
Corporate | 207 | 1,263 | |||||||
$ | 37,105 | $ | 15,664 | ||||||
1 | Includes $545 of acquisition and integration expenses primarily associated with the acquisition of Vought for the three months ended June 30, 2012. | |||
2 | Includes $1,150 of early retirement incentives due to defined benefit plan amendments for the three months ended June 30, 2012. | |||
3 | Includes $460 of acquisition and integration expenses associated with the acquisition of Vought for the three months ended June 30, 2011. | |||
-More-
(Continued)
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 EBITDA, which is our income from continuing operations before interest, income taxes, amortization of acquired contract liabilities, early retirement incentives, depreciation and amortization. We disclose EBITDA on a consolidated and 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 EBITDA as an operating performance measure and, as such, we believe that the GAAP financial measure most directly comparable to it is income from continuing operations. In calculating EBITDA, we exclude from income from continuing operations 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. EBITDA is not a measurement 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 EBITDA as a substitute 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 EBITDA to income from continuing operations 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 EBITDA.
EBITDA 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 15 years expanding our product and service capabilities partially through acquisitions of complementary businesses. Due to the expansion of our operations, which included acquisitions, our income from continuing operations has included significant charges for depreciation and amortization. EBITDA excludes these charges and provides meaningful information about the operating performance of our business, apart from charges for depreciation and amortization. We believe the disclosure of EBITDA helps investors meaningfully evaluate and compare our performance from quarter to quarter and from year to year. We also believe EBITDA 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, 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 EBITDA to provide a financial measure by which to compare our operating performance against that of other companies in our industry.
Set forth below are descriptions of the financial items that have been excluded from our income from continuing operations to calculate EBITDA and the material limitations associated with using this non-GAAP financial measure as compared to income from continuing operations:
• | Early retirement incentives may be useful to investors to consider because it represents the current period impact of the change in defined benefit obligation due to the reduction in future service costs. We do not believe these charges (gains) necessarily reflect the current and ongoing cash earnings related to our operations. |
-More-
(Continued)
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
Non-GAAP Financial Measure Disclosures (continued)
• | 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. |
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.
The following table shows our EBITDA reconciled to our income from continuing operations for the indicated periods:
Three Months Ended | ||||||||
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA): | June 30, | |||||||
2012 | 2011 | |||||||
Income from continuing operations | $ | 76,332 | $ | 50,904 | ||||
Add-back: | ||||||||
Income tax expense | 47,378 | 28,014 | ||||||
Interest expense and other | 17,232 | 26,462 | ||||||
Early retirement incentives | 1,150 | — | ||||||
Amortization of acquired contract liabilities | (6,993 | ) | (7,740 | ) | ||||
Depreciation and amortization | 31,815 | 29,467 | ||||||
Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") | $ | 166,914 | $ | 127,107 | ||||
Net sales | $ | 887,688 | $ | 845,063 | ||||
EBITDA Margin | 18.8 | % | 15.0 | % | ||||
-More-
(Continued)
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
Non-GAAP Financial Measure Disclosures (continued)
Three Months Ended June 30, 2012 | |||||||||||||||||||||
Segment Data | |||||||||||||||||||||
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA): | Total | Aerostructures | Aerospace Systems | Aftermarket Services | Corporate/Eliminations | ||||||||||||||||
Income from continuing operations | $ | 76,332 | |||||||||||||||||||
Add-back: | |||||||||||||||||||||
Income tax expense | 47,378 | ||||||||||||||||||||
Interest expense and other | 17,232 | ||||||||||||||||||||
Operating income | $ | 140,942 | $ | 120,138 | $ | 23,465 | $ | 11,807 | $ | (14,468 | ) | ||||||||||
Early retirement incentives | 1,150 | — | — | — | 1,150 | ||||||||||||||||
Amortization of acquired contract liabilities | (6,993 | ) | (6,993 | ) | — | — | — | ||||||||||||||
Depreciation and amortization | 31,815 | 23,904 | 4,474 | 2,326 | 1,111 | ||||||||||||||||
Earnings (Losses) before Interest, Taxes, Depreciation and Amortization (EBITDA): | $ | 166,914 | $ | 137,049 | $ | 27,939 | $ | 14,133 | $ | (12,207 | ) | * | |||||||||
Net sales | $ | 887,688 | $ | 669,853 | $ | 140,512 | $ | 79,977 | $ | (2,654 | ) | ||||||||||
EBITDA Margin | 18.8% | 20.5% | 19.9% | 17.7% | n/a | ||||||||||||||||
(Continued)
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
Non-GAAP Financial Measure Disclosures (continued)
Three Months Ended June 30, 2011 | |||||||||||||||||||||
Segment Data | |||||||||||||||||||||
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA): | Total | Aerostructures | Aerospace Systems | Aftermarket Services | Corporate/Eliminations | ||||||||||||||||
Income from continuing operations | $ | 50,904 | |||||||||||||||||||
Add-back: | |||||||||||||||||||||
Income tax expense | 28,014 | ||||||||||||||||||||
Interest expense and other | 26,462 | ||||||||||||||||||||
Operating income (loss) | $ | 105,380 | $ | 87,974 | $ | 22,417 | $ | 6,961 | $ | (11,972 | ) | ||||||||||
Amortization of acquired contract liabilities | (7,740 | ) | (7,740 | ) | — | — | — | ||||||||||||||
Depreciation and amortization | 29,467 | 21,845 | 4,345 | 2,430 | 847 | ||||||||||||||||
Earnings (Losses) before Interest, Taxes, Depreciation and Amortization ("EBITDA") | $ | 127,107 | $ | 102,079 | $ | 26,762 | $ | 9,391 | $ | (11,125 | ) | * * | |||||||||
Net sales | $ | 845,063 | $ | 643,306 | $ | 133,010 | $ | 70,368 | $ | (1,621 | ) | ||||||||||
EBITDA Margin | 15.0% | 15.9% | 20.1% | 13.3% | n/a | ||||||||||||||||
* | Includes $545 of acquisition and integration expenses associated with the acquisition of Vought. | |||
* * | Includes $460 of acquisition and integration expenses associated with the acquisition of Vought. | |||
(Continued)
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
Non-GAAP Financial Measure Disclosures (continued)
Operating income, income form continuing operations and income from continuing operations diluted per share, before acquisition and integration costs and early retirement incentives has been provided for consistency and comparability. These measures should not be considered in isolation or as alternatives to operating income, income from continuing operations and income from continuing operations per diluted share presented in accordance with GAAP. The following table reconciles operating income, income from continuing operations and income from continuing operations per diluted share, before early retirement incentives to the operating income, income from continuing operations and income from continuing operations per diluted share, respectively.
Three Months Ended | ||||||||
June 30, | ||||||||
2012 | 2011 | |||||||
Operating income, before acquisition and integration costs and early retirement incentives | $ | 142,637 | $ | 105,840 | ||||
Acquisition and integration costs | 545 | 460 | ||||||
Early retirement incentives | 1,150 | — | ||||||
Operating income | $ | 140,942 | $ | 105,380 | ||||
Income from continuing operations, before acquisition and integration costs and early retirement incentives | $ | 77,408 | $ | 51,201 | ||||
Acquisition and integration costs, net of tax | 346 | 297 | ||||||
Early retirement incentives, net of tax | 730 | — | ||||||
Income from continuing operations | $ | 76,332 | $ | 50,904 | ||||
Income from continuing operations, before acquisition & integration costs and early retirement incentives per diluted share | $ | 1.48 | $ | 1.00 | ||||
Acquisition and integration costs per diluted share | (0.01 | ) | (0.01 | ) | ||||
Early retirement incentives per diluted share | (0.01 | ) | — | |||||
Income from continuing operations per diluted share | $ | 1.46 | $ | 0.99 | ||||
-More-
(Continued)
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
Non-GAAP Financial Measure Disclosures (continued)
Cash provided by operations, before pension contributions has been provided for consistency and comparability. We also use free cash flow available for debt reduction as a key factor in planning for and consideration of strategic acquisitions, stock repurchases 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, before pension contributions to cash provided by operations, as well as cash provided by operations to free cash flow available for debt reduction.
Three Months Ended | ||||||||
June 30, | ||||||||
2012 | 2011 | |||||||
Cash provided by operations, before pension contributions | $ | 127,624 | $ | 116,251 | ||||
Pension contributions | 25,077 | 25,000 | ||||||
Cash provided by operations | 102,547 | 91,251 | ||||||
Less: | ||||||||
Capital expenditures | 37,105 | 15,664 | ||||||
Dividends | 1,997 | 981 | ||||||
Free cash flow available for debt reduction | $ | 63,445 | $ | 74,606 | ||||
We use "Net Debt to Capital" as a measure of financial leverage. The following table sets forth the computation of Net Debt to Capital:
June 30, | March 31, | |||||||
2012 | 2012 | |||||||
Calculation of Net Debt | ||||||||
Current portion | $ | 129,025 | $ | 142,237 | ||||
Long-term debt | 972,224 | 1,016,625 | ||||||
Total debt | 1,101,249 | 1,158,862 | ||||||
Less: Cash | 31,996 | 29,662 | ||||||
Net debt | $ | 1,069,253 | $ | 1,129,200 | ||||
Calculation of Capital | ||||||||
Net debt | $ | 1,069,253 | $ | 1,129,200 | ||||
Stockholders' equity | 1,866,813 | 1,793,369 | ||||||
Total capital | $ | 2,936,066 | $ | 2,922,569 | ||||
Percent of net debt to capital | 36.4 | % | 38.6 | % | ||||
#######