EX-99.3 6 a05-13917_1ex99d3.htm EX-99.3

Exhibit 99.3

 

Triumph Group, Inc.

 

NEWS RELEASE

 

 

Contact:

 

John Bartholdson

 

Senior Vice President,

 

Chief Financial Officer

 

Phone (610) 251-1000

 

jbartholdson@triumphgroup.com

 

 

TRIUMPH GROUP REPORTS FIRST QUARTER FISCAL 2006 RESULTS

 

•      Net sales for first quarter fiscal 2006 increased 7% to $177.7 million

 

•      Operating income in the first quarter fiscal 2006 increased 113% to $13.7 million

 

•      Net income for the first quarter fiscal 2006 increased 151% to $7.2 million

 

•      Backlog increased 14% during the quarter to $682.2 million

 

Wayne, PA – July 29, 2005 – Triumph Group, Inc. (NYSE: TGI) today reported that net sales from continuing operations for the first quarter of the fiscal year ending March 31, 2006 totaled $177.7 million, a seven percent increase from last year’s first quarter net sales from continuing operations of $165.4 million.  Net income for the first quarter of fiscal 2006 increased one hundred fifty-one percent to $7.2 million, or $0.45 per diluted common share, versus $2.9 million, or $0.18 per diluted common share for the first quarter of the prior year.  During the quarter, the company generated $1.1 million of cash flow from operations.

 

The Aerospace Systems segment reported net sales for the quarter of $134.1 million, a twelve percent increase over the prior year quarter’s sales of $119.4 million.  Operating income for the current quarter increased forty-three percent to $16.2 million, compared to $11.3 million in the prior year period.

 

The Aftermarket Services segment reported net sales for the quarter of $44.2 million, compared to $39.7 million in the prior year period, an eleven percent increase.  Operating income for the first quarter of fiscal 2006 was $1.4 million, compared to $1.3 million for the prior year period, a seven percent increase.

 

-More-

 


 

Richard C. III, Triumph’s President and Chief Executive Officer, said, “We are very pleased with the first quarter results and with the strong operational and financial performance across our businesses.  The fundamental driver to our improving performance was revenue growth, all of which was organic, combined with enhanced operating leverage as a result of these higher operating rates.  Based on the strength of our markets, solid backlog and strong balance sheet, we see continued momentum across our operations for the balance of our fiscal year.”

 

As previously announced, Triumph will hold a conference call today at 10:00 a.m. (EDT) to discuss the fiscal 2006 first quarter results.  The conference call will be available live and archived on the company’s website at http://www.triumphgroup.com.  An audio replay will be available from July 29th until August 5th by calling (888) 266-2081 (Domestic) or (703) 925-2533 (International), passcode #737351.

 

Triumph Group, Inc., headquartered in Wayne, Pennsylvania, designs, engineers, manufactures, repairs and overhauls aircraft components and accessories.  The company serves a broad, worldwide spectrum of the aviation industry, including commercial and regional airlines, air cargo carriers, as well as original equipment manufacturers of commercial, regional, business and military aircraft and aircraft components.

 

More information about Triumph can be found on the Internet 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 concerning the company’s expectations for growth in the fiscal year. 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, 2005.

 

FINANCIAL DATA (UNAUDITED) ON FOLLOWING 4 PAGES

 


 

FINANCIAL DATA (UNAUDITED)

 

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(in thousands, except per share data)

 

CONDENSED STATEMENTS OF INCOME

 

 

 

Three Months Ended

 

 

 

June 30,

 

 

 

2005

 

2004

 

 

 

 

 

 

 

Net Sales

 

$

177,697

 

$

165,353

 

 

 

 

 

 

 

Operating Income

 

13,729

 

6,447

 

 

 

 

 

 

 

Interest Expense and Other

 

3,187

 

3,257

 

Income Tax Expense (Benefit)

 

3,373

 

1,085

 

 

 

 

 

 

 

Income from Continuing Operations

 

7,169

 

2,105

 

Income from Discontinued Operations

 

0

 

754

 

 

 

 

 

 

 

Net Income

 

$

7,169

 

$

2,859

 

 

 

 

 

 

 

Earnings Per Share - Basic:

 

 

 

 

 

 

 

 

 

 

 

Income from Continuing Operations

 

$

0.45

 

$

0.13

 

Income from Discontinued Operations

 

$

0.00

 

$

0.05

 

Net Income

 

$

0.45

 

$

0.18

 

 

 

 

 

 

 

Weighted average common shares outstanding - Basic

 

15,906

 

15,860

 

 

 

 

 

 

 

Earnings Per Share - Diluted:

 

 

 

 

 

 

 

 

 

 

 

Income from Continuing Operations

 

$

0.45

 

$

0.13

 

Income from Discontinued Operations

 

$

0.00

 

$

0.05

 

Net Income

 

$

0.45

 

$

0.18

 

 

 

 

 

 

 

Weighted average common shares outstanding - Diluted

 

16,006

 

15,935

 

 


 

FINANCIAL DATA (UNAUDITED)

 

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands, except per share data)

 

BALANCE SHEET

 

 

 

June 30,

 

March 31,

 

 

 

2005

 

2005

 

Assets

 

 

 

 

 

Cash

 

$

5,471

 

$

4,844

 

Accounts Receivable, net

 

122,966

 

127,942

 

Inventory

 

226,250

 

217,234

 

Deferred Income Taxes

 

5,422

 

5,422

 

Prepaid Expenses and Other

 

3,275

 

3,887

 

Current Assets

 

363,384

 

359,329

 

 

 

 

 

 

 

Property and Equipment, net

 

233,101

 

234,123

 

Goodwill

 

273,588

 

273,476

 

Intangible Assets, net

 

54,406

 

56,227

 

Other

 

13,748

 

14,560

 

 

 

 

 

 

 

Total Assets

 

$

938,227

 

$

937,715

 

 

 

 

 

 

 

Liabilities & Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Accounts Payable

 

$

62,767

 

$

65,211

 

Accrued Expenses

 

60,353

 

75,598

 

Income Taxes Payable

 

4,569

 

2,922

 

Current Portion of Long-Term Debt

 

1,692

 

1,740

 

Current Liabilities

 

129,381

 

145,471

 

 

 

 

 

 

 

Long-Term Debt, less current portion

 

166,422

 

156,042

 

Deferred Income Taxes and Other

 

109,148

 

109,539

 

 

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

Common Stock, $.001 par value, 50,000,000 shares authorized, 16,027,324 shares issued

 

16

 

16

 

Capital in excess of par value

 

259,575

 

259,448

 

Treasury Stock, at cost, 119,160 and 123,160 shares

 

(2,958

)

(3,057

)

Accumulated other comprehensive (loss) income

 

(476

)

306

 

Retained earnings

 

277,119

 

269,950

 

Total Stockholders’ Equity

 

533,276

 

526,663

 

 

 

 

 

 

 

Total Liabilities and Stockholders’ Equity

 

$

938,227

 

$

937,715

 

 


 

FINANCIAL DATA (UNAUDITED)

 

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)

 

SEGMENT DATA

 

 

 

Three Months Ended

 

 

 

June 30,

 

 

 

2005

 

2004

 

 

 

 

 

 

 

Net Sales:

 

 

 

 

 

Aerospace Systems

 

$

134,146

 

$

119,416

 

Aftermarket Services

 

44,160

 

39,741

 

Other

 

0

 

7,730

 

Elimination of inter-segment sales

 

(609

)

(1,534

)

 

 

$

177,697

 

$

165,353

 

 

 

 

 

 

 

Operating Income (Loss):

 

 

 

 

 

Aerospace Systems

 

$

16,216

 

$

11,309

 

Aftermarket Services

 

1,356

 

1,266

 

Other

 

0

 

(3,153

)

Corporate

 

(3,843

)

(2,975

)

 

 

$

13,729

 

$

6,447

 

 

 

 

 

 

 

Depreciation and Amortization:

 

 

 

 

 

Aerospace Systems

 

$

5,525

 

$

4,697

 

Aftermarket Services

 

2,374

 

2,071

 

Other

 

0

 

760

 

Corporate

 

32

 

43

 

 

 

$

7,931

 

$

7,571

 

 

 

 

 

 

 

Capital Expenditures:

 

 

 

 

 

Aerospace Systems

 

$

1,917

 

$

2,060

 

Aftermarket Services

 

3,065

 

881

 

Other

 

0

 

7

 

Corporate

 

14

 

26

 

 

 

$

4,996

 

$

2,974

 

 


 

FINANCIAL DATA (UNAUDITED)

 

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)

 

Non-GAAP Financial Measure Disclosures

 

Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) for the three months ended June 30, 2005 was $21.7 million with a margin of 12.2%.  EBITDA for the three months ended June 30, 2004 was $14.0 million with a margin of 8.5%.

 

Management believes that EBITDA provides the reader a good measure of cash generated from the operations of the business before any investment in working capital or fixed assets.

 

The following definition is provided for the non-GAAP financial measure identified above, together with a reconciliation of such non-GAAP financial measure to the most directly comparable financial measure calculated and presented in accordance with GAAP.

 

 

 

Three Months Ended

 

 

 

June 30,

 

 

 

2005

 

2004

 

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA):

 

 

 

 

 

 

 

 

 

 

 

Income from Continuing Operations

 

$

7,169

 

$

2,105

 

 

 

 

 

 

 

Add-back:

 

 

 

 

 

Income Tax Expense

 

3,373

 

1,085

 

Interest Expense and Other

 

3,187

 

3,257

 

Depreciation and Amortization

 

7,931

 

7,571

 

 

 

 

 

 

 

Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”)

 

$

21,660

 

$

14,018

 

 

 

 

 

 

 

Net Sales

 

$

177,697

 

$

165,353

 

 

 

 

 

 

 

EBITDA Margin

 

12.2

%

8.5

%

 

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