EX-99.1 2 a05-19220_1ex99d1.htm EXHIBIT 99.1

Exhibit 99.1

 

Triumph Group, Inc.

 

 

NEWS RELEASE

 

 

Contact:

 

John Bartholdson

 

Senior Vice President,

 

Chief Financial Officer

 

Phone (610) 251-1000

 

jbartholdson@triumphgroup.com

 

 

TRIUMPH GROUP REPORTS

SECOND QUARTER FISCAL 2006 RESULTS

 

•                  Net sales for second quarter fiscal 2006 increased 8% to $183.6 million

 

•                  Operating income in the second quarter fiscal 2006 increased 34% to $13.2 million

 

•                  Income from continuing operations for the second quarter fiscal 2006 increased 44% to $7.0 million

 

•                  Backlog increased 35% over prior year to $756.8 million

 

Wayne, PA – October 28, 2005 – Triumph Group, Inc. (NYSE: TGI) today reported that net sales from continuing operations for the second quarter of the fiscal year ending March 31, 2006 totaled $183.6 million, an eight percent increase from last year’s second quarter net sales from continuing operations of $170.0 million.  Income from continuing operations for the second quarter of fiscal 2006 increased forty-four percent to $7.0 million, or $0.44 per diluted common share, versus $4.9 million, or $0.31 per diluted common share for the second quarter of the prior year.  During the quarter, the company generated $6.0 million of cash flow from operations.

 

Net sales from continuing operations for the first six months of fiscal 2006 were $361.3 million, an eight percent increase over net sales of $335.3 million last year.  Income from continuing operations for the first six months of fiscal 2006 increased 103 percent to $14.2 million, or $0.89 per diluted common share, compared to income from continuing operations of $7.0 million, or $0.44 per diluted common share in the prior year period.  During the six months, the company generated $7.1 million of cash flow from operations.

 

The Aerospace Systems segment reported net sales for the quarter of $140.4 million, compared to $122.1 million in the prior year period, an increase of fifteen percent.  Operating income for the second quarter of fiscal 2006 was $17.2 million, compared to $14.6 million for the prior year period, an eighteen percent increase.  The Aerospace Systems segment increased sales and operating income on both a year-over-year and a sequential quarterly basis, despite lost production due to the work stoppage at Boeing Commercial Aircraft division.

 

-More-

 


 

The Aftermarket Services segment reported net sales for the quarter of $44.0 million, compared to $42.4 million in the prior year period, a four percent increase.  Operating income for the second quarter of fiscal 2006 was a loss of $1.2 million, compared to earnings of $2.3 million for the prior year period.  Core growth in repair and overhaul service companies was offset by losses related to the Northwest Airlines and Delta Air Lines bankruptcies and by costs incurred in developing products associated with new aerospace programs in the castings and manufacturing operations of the Aftermarket Services segment.

 

Richard C. Ill, Triumph’s President and Chief Executive Officer, said, “We are pleased to report increased sales, operating income, and net earnings for the second quarter and the first half of fiscal 2006 in spite of the material impact that the work stoppage at Boeing Commercial Aircraft division had on earnings for the quarter.  Sales and earnings increased on a year-over-year basis and significant cash flow was generated from operating activities, reflecting the quality of our earnings growth.   Moreover, the recovery of our aerospace business is apparent from the significant increase in our backlog, which reflects ramped-up commercial aerospace build schedules as well as initial production orders for the A380.”

 

Commenting on the outlook for the year, Mr. Ill stated, “Based upon continued strength from operations and current market conditions, we expect that fiscal 2006 earnings per share will be in the range of $1.75 to $2.00.”

 

As previously announced, Triumph will hold a conference call today at 8:00 a.m. (EDT) to discuss the fiscal 2006 second 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 October 28th until November 4th by calling (888) 266-2081 (Domestic) or (703) 925-2533 (International), passcode #791424.

 

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 earnings expectations for 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 6 PAGES

 

-More-

 


 

FINANCIAL DATA (UNAUDITED)

 

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(in thousands, except per share data)

 

 

 

Three Months Ended
September 30,

 

Six Months Ended
September 30,

 

CONDENSED STATEMENTS OF INCOME

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

183,633

 

$

169,980

 

$

361,330

 

$

335,333

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

13,218

 

9,880

 

26,947

 

16,327

 

 

 

 

 

 

 

 

 

 

 

Interest Expense and Other

 

3,172

 

3,210

 

6,359

 

6,467

 

Income Tax Expense

 

3,002

 

1,775

 

6,375

 

2,860

 

 

 

 

 

 

 

 

 

 

 

Income from Continuing Operations

 

7,044

 

4,895

 

14,213

 

7,000

 

Income from Discontinued Operations

 

0

 

777

 

0

 

1,531

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

7,044

 

$

5,672

 

$

14,213

 

$

8,531

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share - Basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Continuing Operations

 

$

0.44

 

$

0.31

 

$

0.89

 

$

0.44

 

Income from Discontinued Operations

 

$

0.00

 

$

0.05

 

$

0.00

 

$

0.10

 

Net Income

 

$

0.44

 

$

0.36

 

$

0.89

 

$

0.54

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Basic

 

15,910

 

15,868

 

15,908

 

15,864

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share - Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Continuing Operations

 

$

0.44

 

$

0.31

 

$

0.89

 

$

0.44

 

Income from Discontinued Operations

 

$

0.00

 

$

0.05

 

$

0.00

 

$

0.10

 

Net Income

 

$

0.44

 

$

0.36

 

$

0.89

 

$

0.54

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - Diluted

 

16,056

 

15,942

 

16,031

 

15,939

 

 

-More-

 


 

FINANCIAL DATA (UNAUDITED)

 

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands, except per share data)

 

BALANCE SHEET

 

 

 

September 30,
2005

 

March 31,
2005

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Cash

 

$

5,335

 

$

4,844

 

Accounts Receivable, net

 

124,470

 

127,942

 

Inventory

 

229,200

 

217,234

 

Deferred Income Taxes

 

5,422

 

5,422

 

Prepaid Expenses and Other

 

5,028

 

3,887

 

Current Assets

 

369,455

 

359,329

 

 

 

 

 

 

 

Property and Equipment, net

 

232,076

 

234,123

 

Goodwill

 

273,580

 

273,476

 

Intangible Assets, net

 

52,609

 

56,227

 

Other

 

14,764

 

14,560

 

 

 

 

 

 

 

Total Assets

 

$

942,484

 

$

937,715

 

 

 

 

 

 

 

Liabilities & Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Accounts Payable

 

$

57,419

 

$

65,211

 

Accrued Expenses

 

64,579

 

75,598

 

Income Taxes Payable

 

1,330

 

2,922

 

Current Portion of Long-Term Debt

 

1,662

 

1,740

 

Current Liabilities

 

124,990

 

145,471

 

 

 

 

 

 

 

Long-Term Debt, less current portion

 

170,500

 

156,042

 

Deferred Income Taxes and Other

 

106,542

 

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

 

259,676

 

259,448

 

Treasury Stock, at cost, 117,010 and 123,160 shares

 

(2,905

)

(3,057

)

Accumulated other comprehensive (loss) income

 

(498

)

306

 

Retained earnings

 

284,163

 

269,950

 

Total Stockholders’ Equity

 

540,452

 

526,663

 

 

 

 

 

 

 

Total Liabilities and Stockholders’ Equity

 

$

942,484

 

$

937,715

 

 

-More-

 


 

FINANCIAL DATA (UNAUDITED)

 

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)

 

SEGMENT DATA

 

 

 

Three Months Ended
September 30,

 

Six Months Ended
September 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

Net Sales:

 

 

 

 

 

 

 

 

 

Aerospace Systems

 

$

140,378

 

$

122,090

 

$

274,524

 

$

241,506

 

Aftermarket Services

 

44,039

 

42,421

 

88,199

 

82,162

 

Other

 

0

 

7,467

 

0

 

15,197

 

Elimination of inter-segment sales

 

(784

)

(1,998

)

(1,393

)

(3,532

)

 

 

$

183,633

 

$

169,980

 

$

361,330

 

$

335,333

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss):

 

 

 

 

 

 

 

 

 

Aerospace Systems

 

$

17,226

 

$

14,600

 

$

33,442

 

$

25,909

 

Aftermarket Services

 

(1,229

)

2,295

 

127

 

3,561

 

Other

 

0

 

(3,780

)

0

 

(6,933

)

Corporate

 

(2,779

)

(3,235

)

(6,622

)

(6,210

)

 

 

$

13,218

 

$

9,880

 

$

26,947

 

$

16,327

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization:

 

 

 

 

 

 

 

 

 

Aerospace Systems

 

$

5,489

 

$

4,640

 

$

11,014

 

$

9,337

 

Aftermarket Services

 

2,461

 

2,092

 

4,835

 

4,163

 

Other

 

0

 

745

 

0

 

1,505

 

Corporate

 

32

 

32

 

64

 

75

 

 

 

$

7,982

 

$

7,509

 

$

15,913

 

$

15,080

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures:

 

 

 

 

 

 

 

 

 

Aerospace Systems

 

$

3,237

 

$

5,814

 

$

5,154

 

$

7,874

 

Aftermarket Services

 

2,221

 

1,015

 

5,286

 

1,896

 

Other

 

0

 

17

 

0

 

24

 

Corporate

 

19

 

8

 

33

 

34

 

 

 

$

5,477

 

$

6,854

 

$

10,473

 

$

9,828

 

 

-More-

 


 

Non-GAAP Financial Measure Disclosures

 

Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) for the three months ended September 30, 2005 was $21.2 million with a margin of 11.5%.  EBITDA for the three months ended September 30, 2004 was $17.4 million with a margin of 10.2%.  EBITDA for the six months ended September 30, 2005 was $42.9 million with a margin of 11.9%. EBITDA for the six months ended September 30, 2004 was $31.4 million with a margin of 9.4%.

 

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
September 30,

 

Six Months Ended
September 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Continuing Operations

 

$

7,044

 

$

4,895

 

$

14,213

 

$

7,000

 

 

 

 

 

 

 

 

 

 

 

Add-back:

 

 

 

 

 

 

 

 

 

Income Tax Expense

 

3,002

 

1,775

 

6,375

 

2,860

 

Interest Expense and Other

 

3,172

 

3,210

 

6,359

 

6,467

 

Depreciation and Amortization

 

7,982

 

7,509

 

15,913

 

15,080

 

 

 

 

 

 

 

 

 

 

 

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

 

$

21,200

 

$

17,389

 

$

42,860

 

$

31,407

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

183,633

 

$

169,980

 

$

361,330

 

$

335,333

 

 

 

 

 

 

 

 

 

 

 

EBITDA Margin

 

11.5

%

10.2

%

11.9

%

9.4

%

 

-More-

 


 

FINANCIAL DATA (UNAUDITED)

 

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)

 

 

 

Three Months Ended September 30, 2005

 

 

 

 

 

Segment Data

 

 

 

 

 

Aerospace

 

Aftermarket

 

Corporate /

 

 

 

Total

 

Systems

 

Services

 

Eliminations

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Continuing Operations

 

$

7,044

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add-back:

 

 

 

 

 

 

 

 

 

Income Tax Expense

 

3,002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense and Other

 

3,172

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Expense)

 

$

13,218

 

$

17,226

 

($1,229

)

($2,779

)

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

7,982

 

5,489

 

2,461

 

32

 

 

 

 

 

 

 

 

 

 

 

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

 

$

21,200

 

$

22,715

 

$

1,232

 

($2,747

)

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

183,633

 

$

140,378

 

$

44,039

 

($784

)

 

 

 

 

 

 

 

 

 

 

EBITDA Margin

 

11.5

%

16.2

%

2.8

%

n/a

 

 

 

 

Six Months Ended September 30, 2005

 

 

 

 

 

Segment Data

 

 

 

 

 

Aerospace

 

Aftermarket

 

Corporate /

 

 

 

Total

 

Systems

 

Services

 

Eliminations

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Continuing Operations

 

$

14,213

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add-back:

 

 

 

 

 

 

 

 

 

Income Tax Expense

 

6,375

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense and Other

 

6,359

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Expense)

 

$

26,947

 

$

33,442

 

$

127

 

($6,622

)

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

15,913

 

11,014

 

4,835

 

64

 

 

 

 

 

 

 

 

 

 

 

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

 

$

42,860

 

$

44,456

 

$

4,962

 

($6,558

)

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

361,330

 

$

274,524

 

$

88,199

 

($1,393

)

 

 

 

 

 

 

 

 

 

 

EBITDA Margin

 

11.9

%

16.2

%

5.6

%

n/a

 

 

-More-

 


 

FINANCIAL DATA (UNAUDITED)

 

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)

 

Non-GAAP Financial Measure Disclosures (continued)

 

Net Debt to Capital:

 

Sep-05

 

Mar-05

 

 

 

 

 

 

 

Calculation of Net Debt

 

 

 

 

 

Current Portion

 

$

1,662

 

$

1,740

 

Long term debt

 

170,500

 

156,042

 

Total Debt

 

172,162

 

157,782

 

Less: Cash and cash equivalents

 

5,335

 

4,844

 

Net Debt

 

166,827

 

152,938

 

 

 

 

 

 

 

Calculation of Capital

 

 

 

 

 

Net Debt

 

166,827

 

152,938

 

Stockholders’ equity

 

540,452

 

526,663

 

Total Capital

 

$

707,279

 

$

679,601

 

 

 

 

 

 

 

Percent of net debt to capital

 

23.6

%

22.5

%

 

######