PROVIDES FISCAL YEAR 2024 GUIDANCE
RADNOR,
Pa., May 17, 2023 /PRNewswire/ -- Triumph
Group, Inc. (NYSE: TGI) ("TRIUMPH" or the "Company") today reported
financial results for its fourth quarter and fiscal 2023, which
ended March 31, 2023.
Fourth Quarter Fiscal 2023
- Net sales of $393.3 million
- Operating income of $56.2 million
with operating margin of 14%; adjusted operating income of
$59.9 million with adjusted operating
margin of 15%
- Net loss of ($17.5) million, or
($0.27) per share; adjusted net
income of $34.5 million, or
$0.39 per diluted share
- Adjusted EBITDAP of $68.1 million
with Adjusted EBITDAP margin of 17.3%
- Cash flow generated from operations of $60.0 million; free cash flow of $51.8 million
Fiscal 2023
- Net sales of $1.38 billion
- Operating income of $238.1
million with operating margin of 17%, including $101.5 million gain on sale from our Stuart, Florida business; adjusted operating
income of $158.7 million with
adjusted operating margin of 11%
- Net income of $89.6 million, or
$1.20 per diluted share; adjusted net
income of $55.4 million, or
$0.77 per diluted share
- Adjusted EBITDAP of $195.7
million with Adjusted EBITDAP margin of 14.0%
- Cash flow used in operations of ($52.3)
million; free cash use of ($72.9)
million
- Proactively addressed near term maturities through new
$1.2 billion first lien secured
financing
Fiscal 2024 Guidance
- Net sales of $1.39 billion to
$1.43 billion, reflecting 7 - 10%
organic growth
- Operating income of $165.0
million to $180.0 million,
reflecting operating income margin of 12 - 16%
- Adjusted EBITDAP of $210.0
million to $225.0 million,
reflecting Adjusted EBITDAP margin of 15 - 16%
- Cash flow from operations of $60.0
million to $80.0 million; free
cash flow of $35.0 million to
$50.0 million
"TRIUMPH ended our fiscal year
2023 on an upswing and exceeded both our Net Sales and our adjusted
earnings per share guidance and successfully extending our debt
maturities to enhance liquidity and financial flexibility," said
Dan Crowley, TRIUMPH's chairman, president, and chief
executive officer. "As our markets improve, we generated 21%
organic sales growth from continuing operations in the quarter as a
result of increasing commercial OEM production rates, accelerating
MRO demand, and recovering military volumes. In addition, we
delivered strong cash generation for the quarter and improved
profitability on a year over year basis as supply chain constraints
eased."
Mr. Crowley continued, "As a result of our healthy backlog and
recent wins, we anticipate organic growth of 7 - 10% as well as
continued margin expansion and positive free cash flow generation
in fiscal 2024. We will also maintain our focus on
deleveraging and optimizing our capital structure over time.
As we execute on our financial and operational goals, TRIUMPH remains on track to deliver profitable
growth and enhance shareholder value."
Fourth Quarter and Full Year Fiscal 2023 Overview
|
|
Three Months Ended
March 31,
|
|
|
Year Ended March
31,
|
|
($ in
millions)
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Commercial
OEM
|
|
$
|
140.7
|
|
|
$
|
165.0
|
|
|
$
|
543.5
|
|
|
$
|
645.9
|
|
Military OEM
|
|
|
80.1
|
|
|
|
74.7
|
|
|
|
261.1
|
|
|
|
292.4
|
|
Total OEM
Revenue
|
|
|
220.8
|
|
|
|
239.7
|
|
|
|
804.6
|
|
|
|
938.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Aftermarket
|
|
|
95.6
|
|
|
|
65.6
|
|
|
|
325.5
|
|
|
|
245.0
|
|
Military
Aftermarket
|
|
|
63.9
|
|
|
|
54.6
|
|
|
|
213.0
|
|
|
|
224.4
|
|
Total Aftermarket
Revenue
|
|
|
159.5
|
|
|
|
120.2
|
|
|
|
538.5
|
|
|
|
469.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Aviation
Revenue
|
|
|
12.3
|
|
|
|
24.5
|
|
|
|
33.6
|
|
|
|
46.4
|
|
Amortization of
acquired contract liabilities
|
|
|
0.7
|
|
|
|
2.2
|
|
|
|
2.5
|
|
|
|
5.9
|
|
Total Net
Sales*
|
|
$
|
393.3
|
|
|
$
|
386.7
|
|
|
$
|
1,379.1
|
|
|
$
|
1,459.9
|
|
* Differences due to
rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
Note> Aftermarket
sales include both repair & overhaul services and spare parts
sales.
|
|
|
|
|
|
|
|
Excluding impacts from divestitures and exited or sunsetting
programs, fiscal year organic Commercial OEM sales increased
$104.5 million, or 28.7% with over
half the improvement driven by increased production volumes on the
Boeing 737 program, as well as an increases across other commercial
fixed wing and rotorcraft programs and an intellectual property
transaction.
Military OEM sales decreased $31.3
million, or (10.7)% primarily due to divestitures, as well
as lower sales related to the E2-D and AH-64 programs. The
decreased sales were partially offset by increased sales related to
the CH-53K, and CH-47 programs.
Commercial Aftermarket sales increased $80.6 million, or 32.9%. Excluding impacts
from divestitures, organic Commercial Aftermarket sales increased
$86.9 million, or 36.8%, driven by
the recovery in overall air travel metrics and including increased
sales primarily across Boeing 737 commercial platform fleets.
Military aftermarket sales increased $9.3
million, or 17.1% for the fourth quarter of fiscal 2023
relative to the prior year, partially reversing the headwinds
experienced in this end market from earlier in the fiscal
year.
Increased aftermarket sales improved margins in both the fourth
quarter and full fiscal year.
Fourth quarter operating income of $56.2
million includes $2.1 million
of restructuring costs and $1.6
million reduction of prior period gain on sale assets and
businesses. Net loss for the fourth quarter of 2023 was
($17.5) million or $(0.27) per share and includes $31.6 million in debt extinguishment costs
associated with our recent refinancing, $14.6 million in pension settlement charges
associated with a multi-employer plan obligation and $2.1 for warrant related items.
TRIUMPH's results included the
following:
($ millions
except EPS)
|
|
Pre-tax
|
|
|
After-tax
|
|
|
Diluted
EPS
|
|
Loss from Continuing
Operations - GAAP
|
|
$
|
(15.4)
|
|
|
$
|
(17.5)
|
|
|
$
|
(0.27)
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
Warrant related
items
|
|
|
2.1
|
|
|
|
2.1
|
|
|
|
0.09
|
|
Loss on sale of assets
and businesses, net
|
|
|
1.6
|
|
|
|
1.6
|
|
|
|
0.02
|
|
Restructuring
costs
|
|
|
2.1
|
|
|
|
2.1
|
|
|
|
0.02
|
|
Debt extinguishment
losses
|
|
|
31.6
|
|
|
|
31.6
|
|
|
|
0.36
|
|
Spokane withdrawal
liability
|
|
|
14.6
|
|
|
|
14.6
|
|
|
|
0.17
|
|
Adjusted Income from
Continuing Operations - non-GAAP
|
|
$
|
36.7
|
|
|
$
|
34.6
|
|
|
$
|
0.39
|
|
The number of shares used in computing adjusted diluted earnings
per share for the fourth quarter of 2023 was 87.9 million.
Backlog, which represents the next 24 months of actual purchase
orders with firm delivery dates or contract requirements, was
$1.58 billion, up 11% from prior
fiscal year end, after adjusting for the impact of the Stuart divestiture. This increase was
primarily on commercial narrow body platforms.
For the fourth quarter of fiscal 2023, cash flow provided by
operations was $60.0 million.
Outlook
The Company expects net sales for fiscal 2024 will be
$1.39 billion to $1.43 billion, reflecting an organic growth rate
of 7% - 10%, after excluding approximately $77.9 million in fiscal 2023 revenues from exited
businesses.
The Company expects fiscal 2024 operating income of $165.0 million to $180.0
million, and Adjusted EBITDAP of $210.0 million to $225.0
million.
The Company expects fiscal 2024 cash flow from operations of
$60.0 million to $80.0 million and approximately $25.0 million to $30.0
million for capital expenditures, resulting in expected free
cash flow of $35.0 million to
$50.0 million.
Conference Call
TRIUMPH will hold a conference
call today, May 17th, at 8:30 a.m. (ET) to discuss the fourth quarter of
fiscal 2023 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, and the
presentation has been posted on the Company's website at
http://ir.triumphgroup.com/QuarterlyResults. An audio replay will
be available from May 17th to May
24th by calling (877) 344-7529 (Domestic) or (412) 317-0088
(International), passcode #2434836.
About TRIUMPH
TRIUMPH, headquartered in
Radnor, Pennsylvania, designs,
engineers, manufactures, repairs and overhauls a broad portfolio of
aerospace and defense systems and components. The company serves
the global aviation industry, including original equipment
manufacturers and the full spectrum of military and commercial
aircraft operators.
More information about TRIUMPH
can be found on the Company's website at www.triumphgroup.com.
Forward Looking Statements
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 financial and operational
performance, revenues, earnings per share, cash flow or use, cost
savings and operational efficiencies and organizational
restructurings. 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 Group's reports filed with the SEC,
including our Annual Report on Form 10-K for the fiscal year ended
March 31, 2022.
FINANCIAL DATA (UNAUDITED) ON FOLLOWING
PAGES
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH GROUP, INC.
AND SUBSIDIARIES
(in thousands, except per share data)
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
March
31,
|
|
|
March
31,
|
|
CONDENSED STATEMENTS
OF OPERATIONS
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Net sales
|
|
$
|
393,289
|
|
|
$
|
386,651
|
|
|
$
|
1,379,128
|
|
|
$
|
1,459,942
|
|
Cost of sales
(excluding depreciation shown below)
|
|
|
270,936
|
|
|
|
284,722
|
|
|
|
991,599
|
|
|
|
1,073,063
|
|
Selling, general &
administrative
|
|
|
53,998
|
|
|
|
49,295
|
|
|
|
210,430
|
|
|
|
202,070
|
|
Depreciation &
amortization
|
|
|
8,466
|
|
|
|
9,600
|
|
|
|
35,581
|
|
|
|
49,635
|
|
Impairment of
long-lived assets and goodwill
|
|
|
—
|
|
|
|
2,308
|
|
|
|
—
|
|
|
|
2,308
|
|
Restructuring
costs
|
|
|
2,098
|
|
|
|
6,264
|
|
|
|
4,949
|
|
|
|
19,295
|
|
Loss (gain) on sale of
assets and businesses, net
|
|
|
1,640
|
|
|
|
(4,335)
|
|
|
|
(101,523)
|
|
|
|
9,294
|
|
Operating
income
|
|
|
56,151
|
|
|
|
38,797
|
|
|
|
238,092
|
|
|
|
104,277
|
|
Interest expense and
other, net
|
|
|
36,988
|
|
|
|
30,801
|
|
|
|
137,714
|
|
|
|
135,861
|
|
Debt extinguishment
loss
|
|
|
31,603
|
|
|
|
—
|
|
|
|
33,044
|
|
|
|
11,624
|
|
Warrant remeasurement
gain
|
|
|
(3,146)
|
|
|
|
—
|
|
|
|
(8,683)
|
|
|
|
—
|
|
Non-service defined
benefit expense (income)
|
|
|
6,061
|
|
|
|
17,754
|
|
|
|
(19,664)
|
|
|
|
(5,373)
|
|
Income tax
expense
|
|
|
2,188
|
|
|
|
817
|
|
|
|
6,088
|
|
|
|
4,923
|
|
Net (loss)
income
|
|
$
|
(17,543)
|
|
|
$
|
(10,575)
|
|
|
$
|
89,593
|
|
|
$
|
(42,758)
|
|
(Loss) earnings per
share - basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(0.27)
|
|
|
$
|
(0.16)
|
|
|
$
|
1.38
|
|
|
$
|
(0.66)
|
|
Weighted average common
shares outstanding - basic
|
|
|
65,189
|
|
|
|
64,640
|
|
|
|
65,021
|
|
|
|
64,538
|
|
(Loss) earnings per
share - diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(0.27)
|
|
|
$
|
(0.16)
|
|
|
$
|
1.20
|
|
|
$
|
(0.66)
|
|
Weighted average common
shares outstanding - diluted
|
|
|
65,189
|
|
|
|
64,640
|
|
|
|
71,721
|
|
|
|
64,538
|
|
(Continued)
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH GROUP, INC.
AND SUBSIDIARIES (dollars in thousands, except share
data)
|
|
BALANCE
SHEETS
|
|
Unaudited
March 31,
2023
|
|
|
Audited
March 31,
2022
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
227,403
|
|
|
$
|
240,878
|
|
Accounts receivable,
net
|
|
|
196,775
|
|
|
|
178,663
|
|
Contract
assets
|
|
|
103,027
|
|
|
|
101,828
|
|
Inventory,
net
|
|
|
389,245
|
|
|
|
361,692
|
|
Prepaid and other
current assets
|
|
|
17,062
|
|
|
|
19,903
|
|
Assets held for
sale
|
|
|
—
|
|
|
|
60,104
|
|
Current
assets
|
|
|
933,512
|
|
|
|
963,068
|
|
Property and equipment,
net
|
|
|
166,800
|
|
|
|
169,050
|
|
Goodwill
|
|
|
509,449
|
|
|
|
513,722
|
|
Intangible assets,
net
|
|
|
73,898
|
|
|
|
84,850
|
|
Other, net
|
|
|
31,185
|
|
|
|
30,476
|
|
Total assets
|
|
$
|
1,714,844
|
|
|
$
|
1,761,166
|
|
Liabilities &
Stockholders' Deficit
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
|
3,162
|
|
|
$
|
3,268
|
|
Accounts
payable
|
|
|
197,932
|
|
|
|
161,534
|
|
Contract
liabilities
|
|
|
44,482
|
|
|
|
171,763
|
|
Accrued
expenses
|
|
|
151,348
|
|
|
|
208,059
|
|
Liabilities related to
assets held for sale
|
|
|
—
|
|
|
|
57,519
|
|
Current
liabilities
|
|
|
396,924
|
|
|
|
602,143
|
|
Long-term debt, less
current portion
|
|
|
1,688,620
|
|
|
|
1,586,222
|
|
Accrued pension and
post-retirement benefits, noncurrent
|
|
|
359,375
|
|
|
|
301,303
|
|
Deferred income taxes,
noncurrent
|
|
|
7,268
|
|
|
|
7,213
|
|
Other noncurrent
liabilities
|
|
|
60,053
|
|
|
|
51,708
|
|
Stockholders'
Deficit:
|
|
|
|
|
|
|
Common stock, $.001
par value, 100,000,000 shares authorized,
65,432,589
and 64,629,279 shares issued
|
|
|
65
|
|
|
|
64
|
|
Capital in excess of
par value
|
|
|
964,741
|
|
|
|
973,112
|
|
Treasury stock, at
cost, 0 and 14,897 shares
|
|
|
—
|
|
|
|
(96)
|
|
Accumulated other
comprehensive loss
|
|
|
(554,646)
|
|
|
|
(463,354)
|
|
Accumulated
deficit
|
|
|
(1,207,556)
|
|
|
|
(1,297,149)
|
|
Total stockholders'
deficit
|
|
|
(797,396)
|
|
|
|
(787,423)
|
|
Total liabilities and
stockholders' deficit
|
|
$
|
1,714,844
|
|
|
$
|
1,761,166
|
|
(Continued)
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH GROUP, INC.
AND SUBSIDIARIES (dollars in thousands, except share
data)
|
|
|
|
Fiscal Year Ended
March 31
|
|
|
|
2023
|
|
|
2022
|
|
Operating
Activities
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
89,593
|
|
|
$
|
(42,758)
|
|
Adjustments to
reconcile net income (loss) to net cash used in
operating activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
35,575
|
|
|
|
49,635
|
|
Impairment of
long-lived assets
|
|
|
—
|
|
|
|
2,308
|
|
Amortization of
acquired contract liability
|
|
|
(2,500)
|
|
|
|
(5,871)
|
|
(Gain) loss on sale of
assets and businesses
|
|
|
(101,523)
|
|
|
|
9,294
|
|
Curtailments,
settlements, withdrawals, and special termination benefits loss,
net
|
|
|
14,644
|
|
|
|
52,005
|
|
Gain on debt
redemption of 2024 Second Lien Notes
|
|
|
(24,944)
|
|
|
|
—
|
|
Other amortization
included in interest expense
|
|
|
12,872
|
|
|
|
9,047
|
|
Provision for credit
losses
|
|
|
1,594
|
|
|
|
452
|
|
Provision (benefit)
for deferred income taxes
|
|
|
14
|
|
|
|
25
|
|
Warrants remeasurement
gain
|
|
|
(9,796)
|
|
|
|
—
|
|
Share-based
compensation
|
|
|
8,913
|
|
|
|
9,782
|
|
Changes in other
assets and liabilities, excluding the effects of
acquisitions and divestitures:
|
|
|
|
|
|
|
Trade and other
receivables
|
|
|
(26,433)
|
|
|
|
2,822
|
|
Contract
assets
|
|
|
(9,055)
|
|
|
|
702
|
|
Inventories
|
|
|
(28,187)
|
|
|
|
25,642
|
|
Prepaid expenses and
other current assets
|
|
|
1,970
|
|
|
|
(1,122)
|
|
Accounts payable,
accrued expenses, and contract liabilities
|
|
|
15,368
|
|
|
|
(189,412)
|
|
Accrued pension and
other postretirement benefits
|
|
|
(32,562)
|
|
|
|
(58,597)
|
|
Other, net
|
|
|
2,206
|
|
|
|
(970)
|
|
Net cash used in
operating activities
|
|
|
(52,251)
|
|
|
|
(137,016)
|
|
Investing
Activities
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(20,676)
|
|
|
|
(19,660)
|
|
(Payments on) proceeds
from sale of assets and businesses
|
|
|
(6,220)
|
|
|
|
224,518
|
|
Investment in joint
venture
|
|
|
(272)
|
|
|
|
(2,101)
|
|
Purchase of facility
related to divested businesses
|
|
|
—
|
|
|
|
(21,550)
|
|
Net cash (used in)
provided by investing activities
|
|
|
(27,168)
|
|
|
|
181,207
|
|
Financing
Activities
|
|
|
|
|
|
|
Net increase in
revolving credit facility
|
|
|
—
|
|
|
|
—
|
|
Proceeds from issuance
of long-term debt
|
|
|
1,235,000
|
|
|
|
107
|
|
Retirement of debt and
finance lease obligations
|
|
|
(1,101,520)
|
|
|
|
(380,009)
|
|
Payment of deferred
financing costs
|
|
|
(17,097)
|
|
|
|
(400)
|
|
Proceeds on issuance of
common stock, net of issuance costs
|
|
|
4,090
|
|
|
|
—
|
|
Premium on redemption
of Senior Notes
|
|
|
(51,138)
|
|
|
|
(9,108)
|
|
Repurchase of shares
for share-based compensation
minimum tax obligation
|
|
|
(3,547)
|
|
|
|
(3,249)
|
|
Net cash provided by
(used in) financing activities
|
|
|
65,788
|
|
|
|
(392,659)
|
|
Effect of exchange rate
changes on cash
|
|
|
156
|
|
|
|
(536)
|
|
Net change in cash and
cash equivalents
|
|
|
(13,475)
|
|
|
|
(349,004)
|
|
Cash and cash
equivalents at beginning of period
|
|
|
240,878
|
|
|
|
589,882
|
|
Cash and cash
equivalents at end of period
|
|
$
|
227,403
|
|
|
$
|
240,878
|
|
(Continued)
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH GROUP, INC.
AND SUBSIDIARIES (dollars in thousands)
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
March
31,
|
|
|
March
31,
|
|
SEGMENT
DATA
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems &
Support
|
|
$
|
353,414
|
|
|
$
|
286,969
|
|
|
$
|
1,167,533
|
|
|
$
|
1,030,444
|
|
Interiors (formerly
Aerospace Structures)
|
|
|
39,878
|
|
|
|
99,684
|
|
|
|
211,647
|
|
|
|
429,547
|
|
Elimination of
inter-segment sales
|
|
|
(3)
|
|
|
|
(2)
|
|
|
|
(52)
|
|
|
|
(49)
|
|
|
|
$
|
393,289
|
|
|
$
|
386,651
|
|
|
$
|
1,379,128
|
|
|
$
|
1,459,942
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems &
Support
|
|
$
|
71,306
|
|
|
$
|
49,237
|
|
|
$
|
190,863
|
|
|
$
|
163,450
|
|
Interiors (formerly
Aerospace Structures)
|
|
|
2,424
|
|
|
|
2,666
|
|
|
|
11,069
|
|
|
|
13,982
|
|
Corporate
|
|
|
(15,086)
|
|
|
|
(10,988)
|
|
|
|
45,073
|
|
|
|
(63,373)
|
|
Share-based
compensation expense
|
|
|
(2,493)
|
|
|
|
(2,118)
|
|
|
|
(8,913)
|
|
|
|
(9,782)
|
|
|
|
$
|
56,151
|
|
|
$
|
38,797
|
|
|
$
|
238,092
|
|
|
$
|
104,277
|
|
Operating margin
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems &
Support
|
|
|
20.2
|
%
|
|
|
17.2
|
%
|
|
|
16.3
|
%
|
|
|
15.9
|
%
|
Interiors (formerly
Aerospace Structures)
|
|
|
6.1
|
%
|
|
|
2.7
|
%
|
|
|
5.2
|
%
|
|
|
3.3
|
%
|
Consolidated
|
|
|
14.3
|
%
|
|
|
10.0
|
%
|
|
|
17.3
|
%
|
|
|
7.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization^:
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems &
Support
|
|
$
|
7,334
|
|
|
$
|
7,699
|
|
|
$
|
29,781
|
|
|
$
|
32,464
|
|
Interiors (formerly
Aerospace Structures)
|
|
|
624
|
|
|
|
3,556
|
|
|
|
3,683
|
|
|
|
16,234
|
|
Corporate
|
|
|
508
|
|
|
|
653
|
|
|
|
2,117
|
|
|
|
3,245
|
|
|
|
$
|
8,466
|
|
|
$
|
11,908
|
|
|
$
|
35,581
|
|
|
$
|
51,943
|
|
Amortization of
acquired contract liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems &
Support
|
|
$
|
(668)
|
|
|
$
|
(2,226)
|
|
|
$
|
(2,500)
|
|
|
$
|
(5,859)
|
|
Interiors (formerly
Aerospace Structures)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(12)
|
|
|
|
$
|
(668)
|
|
|
$
|
(2,226)
|
|
|
$
|
(2,500)
|
|
|
$
|
(5,871)
|
|
FINANCIAL DATA (UNAUDITED)
TRIUMPH
GROUP, INC. AND SUBSIDIARIES
(dollars in
thousands)
Non-GAAP Financial Measure Disclosures
We prepare and publicly release annual audited and quarterly
unaudited financial statements prepared in accordance with U.S.
GAAP. In accordance with Securities and Exchange Commission (the
"SEC") rules, we also disclose and discuss certain non-GAAP
financial measures in our public filings and earning releases.
Currently, the non-GAAP financial measures that we disclose are
Adjusted EBITDA, which is our net income (loss) before interest and
gains or losses on debt extinguishment, income taxes, amortization
of acquired contract liabilities, consideration payable to customer
related to divestitures, legal judgments and settlements,
gains/loss on divestitures, gains/losses on warrant remeasurements
and warrant-related transaction costs, share-based compensation
expense, depreciation and amortization (including impairment of
long-lived assets), other non-recurring impairments, and the
effects of certain pension charges such as curtailments,
settlements, withdrawals, and other early retirement incentives;
and Adjusted EBITDAP, which is Adjusted EBITDA, before pension
expense or benefit (excluding pension charges already adjusted in
Adjusted EBITDA). We disclose Adjusted EBITDA on a consolidated and
Adjusted EBITDAP on a consolidated and a reportable 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 with our
previously reported results of operations.
We view Adjusted EBITDA and Adjusted EBITDAP as operating
performance measures and, as such, we believe that the U.S. GAAP
financial measure most directly comparable to such measures is net
income (loss). In calculating Adjusted EBITDA and Adjusted EBITDAP,
we exclude from net income (loss) 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.
Adjusted EBITDA and Adjusted EBITDAP are not measurements of
financial performance under U.S. GAAP and should not be considered
as a measure of liquidity, as an alternative to net income (loss),
or as an indicator of any other measure of performance derived in
accordance with U.S. GAAP. Investors and potential investors in our
securities should not rely on Adjusted EBITDA or Adjusted EBITDAP
as a substitute for any U.S. GAAP financial measure, including net
income (loss). In addition, we urge investors and potential
investors in our securities to carefully review the reconciliation
of Adjusted EBITDA and Adjusted EBITDAP to net income (loss) set
forth below, in our earnings releases, and in other filings with
the SEC and to carefully review the U.S. 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 U.S. GAAP
financial information with our Adjusted EBITDA and Adjusted
EBITDAP.
Adjusted EBITDA and Adjusted EBITDAP are 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 U.S. 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 20 years expanding our product and service capabilities,
partially through acquisitions of complementary businesses. Due to
the expansion of our operations, which included acquisitions, our
net income (loss) has included significant charges for depreciation
and amortization. Adjusted EBITDA and Adjusted EBITDAP exclude
these charges and provide meaningful information about the
operating performance of our business, apart from charges for
depreciation and amortization. We believe the disclosure of
Adjusted EBITDA and Adjusted EBITDAP helps investors meaningfully
evaluate and compare our performance from quarter to quarter and
from year to year. We also believe Adjusted EBITDA and Adjusted
EBITDAP are measures of our ongoing operating performance because
the isolation of noncash charges, such as depreciation and
amortization, and nonoperating items, such as interest, income
taxes, pension and other postretirement benefits, 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 Adjusted
EBITDA and Adjusted EBITDAP to provide financial measures by which
to compare our operating performance against that of other
companies in our industry.
(Continued)
FINANCIAL DATA (UNAUDITED)
TRIUMPH
GROUP, INC. AND SUBSIDIARIES
(dollars in
thousands)
Set forth below are descriptions of the financial items that
have been excluded from our net income to calculate Adjusted EBITDA
and Adjusted EBITDAP and the material limitations associated with
using these non-GAAP financial measures as compared with net income
from continuing operations:
- Gains or losses from sale of assets and businesses may be
useful for investors to consider because they reflect gains or
losses from sale of operating units or other assets. We do not
believe these earnings necessarily reflect the current and ongoing
cash earnings related to our operations.
- Warrants remeasurement gains or losses and warrant-related
transaction costs may be useful for investors to consider because
they reflect the mark-to-market changes in the fair value of our
warrants and the costs associated with warrants issuance or
settlement. We do not believe these earnings necessarily reflect
the current and ongoing cash earnings related to our
operations.
- Consideration payable to a customer related to a divestiture
may be useful for investors to consider because it reflects
consideration paid to facilitate the ultimate sale of operating
units. We do not believe these charges necessarily reflect the
current and ongoing cash earnings related to our operations.
- Legal judgments and settlements, when applicable, may be useful
for investors to consider because it reflects gains or losses from
disputes with third parties. We do not believe these earnings
necessarily reflect the current and ongoing cash earnings related
to our operations.
- Non-service defined benefit income or expense from our pension
and other postretirement benefit plans (inclusive of certain
pension related transactions such as curtailments, settlements,
withdrawal, and early retirement or other incentives) may be useful
for investors to consider because they represent the cost of
postretirement benefits to plan participants, net of the assumption
of returns on the plan's assets and are not indicative of the cash
paid for such benefits. We do not believe these earnings
necessarily reflect the current and ongoing cash earnings related
to our operations.
- Amortization of acquired contract liabilities may be useful for
investors to consider because it represents the noncash earnings on
the fair value of off-market contracts acquired through
acquisitions. We do not believe these earnings necessarily reflect
the current and ongoing cash earnings related to our
operations.
- Amortization expense and nonrecurring asset impairments
(including goodwill, intangible asset impairments, and nonrecurring
rotable inventory impairments) may be useful for investors to
consider because it represents the estimated attrition of our
acquired customer base and the diminishing value of trade names,
product rights, licenses, or, in the case of goodwill, other assets
that are not individually identified and separately recognized
under U.S. GAAP, or, in the case of nonrecurring asset impairments,
the impact of unusual and nonrecurring events affecting the
estimated recoverability of existing assets. 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 it
generally represents 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.
- Share-based compensation may be useful for investors to
consider because it represents a portion of the total compensation
to management and the board of directors. 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, as well as debt
extinguishment gains or losses, 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 and debt extinguishment gains or losses 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.
(Continued)
FINANCIAL DATA (UNAUDITED)
TRIUMPH
GROUP, INC. AND SUBSIDIARIES
(dollars in
thousands)
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 Adjusted EBITDA and Adjusted
EBITDAP reconciled to our net income for the indicated periods (in
thousands):
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
March
31,
|
|
|
March
31,
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation,
Amortization, and Pension (Adjusted EBITDAP):
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Net (loss)
income
|
|
$
|
(17,543)
|
|
|
$
|
(10,575)
|
|
|
$
|
89,593
|
|
|
$
|
(42,758)
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
2,188
|
|
|
|
817
|
|
|
|
6,088
|
|
|
|
4,923
|
|
Interest expense and
other, net
|
|
|
36,988
|
|
|
|
30,801
|
|
|
|
137,714
|
|
|
|
135,861
|
|
Debt extinguishment
loss
|
|
|
31,603
|
|
|
|
—
|
|
|
|
33,044
|
|
|
|
11,624
|
|
Warrant remeasurement
gain
|
|
|
(3,146)
|
|
|
|
—
|
|
|
|
(8,683)
|
|
|
|
—
|
|
Pension
charges
|
|
|
14,644
|
|
|
|
31,959
|
|
|
|
14,644
|
|
|
|
52,005
|
|
Consideration Payable
to customer related to
divestiture
|
|
|
—
|
|
|
|
—
|
|
|
|
17,185
|
|
|
|
—
|
|
Loss (gain) on sales
of assets and businesses, net
|
|
|
1,640
|
|
|
|
(4,335)
|
|
|
|
(101,523)
|
|
|
|
9,294
|
|
Share-based
compensation
|
|
|
2,493
|
|
|
|
2,118
|
|
|
|
8,913
|
|
|
|
9,782
|
|
Amortization of
acquired contract liabilities
|
|
|
(668)
|
|
|
|
(2,226)
|
|
|
|
(2,500)
|
|
|
|
(5,871)
|
|
Depreciation and
amortization
|
|
|
8,466
|
|
|
|
11,908
|
|
|
|
35,581
|
|
|
|
51,943
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation
and Amortization ("Adjusted EBITDA")
|
|
$
|
76,665
|
|
|
$
|
60,467
|
|
|
$
|
230,056
|
|
|
$
|
226,803
|
|
Non-service defined
benefit income (excluding
settlements)
|
|
|
(8,583)
|
|
|
|
(14,205)
|
|
|
|
(34,308)
|
|
|
|
(57,378)
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation
and Amortization, and Pension ("Adjusted
EBITDAP")
|
|
$
|
68,082
|
|
|
$
|
46,262
|
|
|
$
|
195,748
|
|
|
$
|
169,425
|
|
Net sales
|
|
$
|
393,289
|
|
|
$
|
386,651
|
|
|
$
|
1,379,128
|
|
|
$
|
1,459,942
|
|
Net income
margin
|
|
|
(4.5)
|
%
|
|
|
(2.7)
|
%
|
|
|
6.5
|
%
|
|
|
(2.9)
|
%
|
Adjusted EBITDAP
margin
|
|
|
17.3
|
%
|
|
|
12.0
|
%
|
|
|
14.0
|
%
|
|
|
11.7
|
%
|
(Continued)
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH GROUP, INC.
AND SUBSIDIARIES (dollars in thousands)
|
|
|
|
Three Months Ended
March 31, 2023
|
|
|
|
|
|
|
Segment
Data
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation,
Amortization, and Pension (EBITDAP):
|
|
Total
|
|
|
Systems &
Support
|
|
|
Interiors#
|
|
|
Corporate/
Eliminations*
|
|
Net loss
|
|
$
|
(17,543)
|
|
|
|
|
|
|
|
|
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-service defined
benefit expense
|
|
|
6,061
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
2,188
|
|
|
|
|
|
|
|
|
|
|
Warrant remeasurement
gain
|
|
|
(3,146)
|
|
|
|
|
|
|
|
|
|
|
Debt extinguishment
loss
|
|
|
31,603
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
other, net
|
|
|
36,988
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
56,151
|
|
|
$
|
71,306
|
|
|
$
|
2,424
|
|
|
$
|
(17,579)
|
|
Loss on sales of
assets & businesses, net
|
|
|
1,640
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,640
|
|
Share-based
compensation
|
|
|
2,493
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,493
|
|
Amortization of
acquired contract liabilities
|
|
|
(668)
|
|
|
|
(668)
|
|
|
|
—
|
|
|
|
—
|
|
Depreciation and
amortization
|
|
|
8,466
|
|
|
|
7,334
|
|
|
|
624
|
|
|
|
508
|
|
Adjusted Earnings
(Losses) before Interest, Taxes,
Depreciation and Amortization, and Pension
("Adjusted EBITDAP")
|
|
$
|
68,082
|
|
|
$
|
77,972
|
|
|
$
|
3,048
|
|
|
$
|
(12,938)
|
|
Net sales
|
|
$
|
393,289
|
|
|
$
|
353,414
|
|
|
$
|
39,878
|
|
|
$
|
(3)
|
|
Adjusted EBITDAP
margin
|
|
|
17.3
|
%
|
|
|
22.1
|
%
|
|
|
7.6
|
%
|
|
n/a
|
|
|
|
|
|
Year Ended March 31,
2023
|
|
|
|
|
|
|
Segment
Data
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation,
Amortization, and Pension (EBITDAP):
|
|
Total
|
|
|
Systems &
Support
|
|
|
Interiors#
|
|
|
Corporate/
Eliminations*
|
|
Net income
|
|
$
|
89,593
|
|
|
|
|
|
|
|
|
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-service defined
benefit income
|
|
|
(19,664)
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
6,088
|
|
|
|
|
|
|
|
|
|
|
Warrant remeasurement
gain, net
|
|
|
(8,683)
|
|
|
|
|
|
|
|
|
|
|
Debt extinguishment
loss
|
|
|
33,044
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
other, net
|
|
|
137,714
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
238,092
|
|
|
$
|
190,863
|
|
|
$
|
11,069
|
|
|
$
|
36,160
|
|
Gain on sales of
assets & businesses, net
|
|
|
(101,523)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(101,523)
|
|
Consideration payable
to customer related to
divestiture
|
|
|
17,185
|
|
|
|
—
|
|
|
|
17,185
|
|
|
|
—
|
|
Share-based
compensation
|
|
|
8,913
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8,913
|
|
Amortization of
acquired contract liabilities
|
|
|
(2,500)
|
|
|
|
(2,500)
|
|
|
|
—
|
|
|
|
—
|
|
Depreciation and
amortization
|
|
|
35,581
|
|
|
|
29,781
|
|
|
|
3,683
|
|
|
|
2,117
|
|
Adjusted Earnings
(Losses) before Interest, Taxes,
Depreciation and Amortization, and Pension
("Adjusted EBITDAP")
|
|
$
|
195,748
|
|
|
$
|
218,144
|
|
|
$
|
31,937
|
|
|
$
|
(54,333)
|
|
Net sales
|
|
$
|
1,379,128
|
|
|
$
|
1,167,533
|
|
|
$
|
211,647
|
|
|
$
|
(52)
|
|
Adjusted EBITDAP
margin
|
|
|
14.0
|
%
|
|
|
18.7
|
%
|
|
|
14.0
|
%
|
|
n/a
|
|
(Continued)
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH GROUP, INC.
AND SUBSIDIARIES (dollars in thousands)
|
|
Non-GAAP Financial
Measure Disclosures (continued)
|
|
|
|
Three Months Ended
March 31, 2022
|
|
|
|
|
|
|
Segment
Data
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation,
Amortization, and Pension (EBITDAP):
|
|
Total
|
|
|
Systems &
Support
|
|
|
Interiors#
|
|
|
Corporate/
Eliminations*
|
|
Net loss
|
|
$
|
(10,575)
|
|
|
|
|
|
|
|
|
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-service defined
benefit expense
|
|
|
17,754
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
817
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
other, net
|
|
|
30,801
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
38,797
|
|
|
$
|
49,237
|
|
|
$
|
2,666
|
|
|
$
|
(13,106)
|
|
Gain on sales of
assets & businesses, net
|
|
|
(4,335)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4,335)
|
|
Share-based
compensation
|
|
|
2,118
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,118
|
|
Amortization of
acquired contract liabilities
|
|
|
(2,226)
|
|
|
|
(2,226)
|
|
|
|
—
|
|
|
|
—
|
|
Depreciation and
amortization
|
|
|
11,908
|
|
|
|
7,699
|
|
|
|
3,556
|
|
|
|
653
|
|
Adjusted Earnings
(Losses) before Interest, Taxes,
Depreciation and Amortization, and Pension
("Adjusted EBITDAP")
|
|
$
|
46,262
|
|
|
$
|
54,710
|
|
|
$
|
6,222
|
|
|
$
|
(14,670)
|
|
Net sales
|
|
$
|
386,651
|
|
|
$
|
286,969
|
|
|
$
|
99,684
|
|
|
$
|
(2)
|
|
Adjusted EBITDAP
margin
|
|
|
12.0
|
%
|
|
|
19.2
|
%
|
|
|
6.2
|
%
|
|
n/a
|
|
|
|
|
|
Year Ended March 31,
2022
|
|
|
|
|
|
|
Segment
Data
|
|
Adjusted Earnings before Interest, Taxes,
Depreciation,
Amortization, and Pension (EBITDAP):
|
|
Total
|
|
|
Systems &
Support
|
|
|
Interiors#
|
|
|
Corporate/
Eliminations*
|
|
Net loss
|
|
$
|
(42,758)
|
|
|
|
|
|
|
|
|
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-service defined
benefit income
|
|
|
(5,373)
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
4,923
|
|
|
|
|
|
|
|
|
|
|
Debt extinguishment
loss
|
|
|
11,624
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
other, net
|
|
|
135,861
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
104,277
|
|
|
$
|
163,450
|
|
|
$
|
13,982
|
|
|
$
|
(73,155)
|
|
Loss on sales of
assets & businesses, net
|
|
|
9,294
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9,294
|
|
Share-based
compensation
|
|
|
9,782
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9,782
|
|
Amortization of
acquired contract liabilities
|
|
|
(5,871)
|
|
|
|
(5,859)
|
|
|
|
(12)
|
|
|
|
—
|
|
Depreciation and
amortization
|
|
|
51,943
|
|
|
|
32,464
|
|
|
|
16,234
|
|
|
|
3,245
|
|
Adjusted Earnings
(Losses) before Interest, Taxes,
Depreciation and Amortization, and Pension
("Adjusted EBITDAP")
|
|
$
|
169,425
|
|
|
$
|
190,055
|
|
|
$
|
30,204
|
|
|
$
|
(50,834)
|
|
Net sales
|
|
$
|
1,459,942
|
|
|
$
|
1,030,444
|
|
|
$
|
429,547
|
|
|
$
|
(49)
|
|
Adjusted EBITDAP
margin
|
|
|
11.7
|
%
|
|
|
18.5
|
%
|
|
|
7.0
|
%
|
|
n/a
|
|
(Continued)
FINANCIAL DATA (UNAUDITED)
TRIUMPH
GROUP, INC. AND SUBSIDIARIES
(dollars in
thousands)
Non-GAAP Financial Measure Disclosures (continued)
Adjusted income from continuing operations, before income taxes,
adjusted income from continuing operations and adjusted income from
continuing operations per diluted share, before non-recurring costs
have been provided for consistency and comparability. These
measures should not be considered in isolation or as alternatives
to income from continuing operations before income taxes, income
from continuing operations and income from continuing operations
per diluted share presented in accordance with GAAP. The
following tables reconcile income from continuing operations before
income taxes, income from continuing operations, and income from
continuing operations per diluted share, before non-recurring
costs.
|
|
Three Months
Ended
March 31, 2023
|
|
|
|
Pre-Tax
|
|
|
After-Tax
|
|
|
Diluted
EPS
|
|
Loss from continuing
operations - GAAP
|
|
$
|
(15,355)
|
|
|
$
|
(17,543)
|
|
|
$
|
(0.27)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Warrant related
items
|
|
|
2,083
|
|
|
|
2,083
|
|
|
|
0.09
|
|
Loss on sale of assets
and businesses, net
|
|
|
1,640
|
|
|
|
1,640
|
|
|
|
0.02
|
|
Restructuring
costs
|
|
|
2,098
|
|
|
|
2,098
|
|
|
|
0.02
|
|
Debt extinguishment
loss
|
|
|
31,603
|
|
|
|
31,603
|
|
|
|
0.36
|
|
Spokane pension
withdrawal
|
|
|
14,644
|
|
|
|
14,644
|
|
|
|
0.17
|
|
Adjusted income from
continuing operations - non-GAAP
|
|
$
|
36,713
|
|
|
$
|
34,525
|
|
|
$
|
0.39
|
|
|
|
Year Ended
March 31, 2023
|
|
|
|
Pre-Tax
|
|
|
After-Tax
|
|
|
Diluted
EPS
|
|
Income from continuing
operations - GAAP
|
|
$
|
95,681
|
|
|
$
|
89,593
|
|
|
|
|
GAAP EPS Numerator
Adjustments:
|
|
|
|
|
|
|
|
|
|
Warrant related
items
|
|
$
|
(3,626)
|
|
|
$
|
(3,626)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP EPS
Numerator:
|
|
$
|
92,055
|
|
|
$
|
85,967
|
|
|
$
|
1.20
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Gain on sale of assets
and businesses, net
|
|
|
(101,523)
|
|
|
|
(101,523)
|
|
|
|
(1.42)
|
|
Restructuring
costs
|
|
|
4,949
|
|
|
|
4,949
|
|
|
|
0.07
|
|
Consideration payable
to customer related to divestiture^
|
|
|
17,185
|
|
|
|
17,185
|
|
|
|
0.24
|
|
Debt extinguishment
loss
|
|
|
33,044
|
|
|
|
33,044
|
|
|
|
0.46
|
|
Spokane pension
withdrawal
|
|
|
14,644
|
|
|
|
14,644
|
|
|
|
0.20
|
|
Warrant issuance
costs
|
|
|
1,113
|
|
|
|
1,113
|
|
|
|
0.02
|
|
Adjusted income from
continuing operations - non-GAAP*
|
|
$
|
61,467
|
|
|
$
|
55,379
|
|
|
$
|
0.77
|
|
|
|
Three Months
Ended
March 31, 2022
|
|
|
|
Pre-Tax
|
|
|
After-Tax
|
|
|
Diluted
EPS
|
|
Loss from continuing
operations - GAAP
|
|
$
|
(9,758)
|
|
|
$
|
(10,575)
|
|
|
$
|
(0.16)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Gain on sale of assets
and businesses, net
|
|
|
(4,335)
|
|
|
|
(4,335)
|
|
|
|
(0.07)
|
|
Restructuring costs
(cash based)
|
|
|
6,264
|
|
|
|
6,264
|
|
|
|
0.10
|
|
Restructuring costs
(non-cash - long-lived asset impairment)
|
|
|
2,308
|
|
|
|
2,308
|
|
|
|
0.04
|
|
Pension
charges
|
|
|
31,959
|
|
|
|
31,959
|
|
|
|
0.49
|
|
Adjusted income from
continuing operations - non-GAAP*
|
|
$
|
26,438
|
|
|
$
|
25,621
|
|
|
|
0.39
|
|
(Continued)
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH GROUP, INC.
AND SUBSIDIARIES (dollars in thousands)
|
|
|
|
Year Ended
March 31, 2022
|
|
|
|
Pre-Tax
|
|
|
After-Tax
|
|
|
Diluted
EPS
|
|
Loss from continuing
operations - GAAP
|
|
$
|
(37,835)
|
|
|
$
|
(42,758)
|
|
|
$
|
(0.66)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Loss on sale of assets
and businesses, net
|
|
|
9,294
|
|
|
|
9,294
|
|
|
|
0.14
|
|
Restructuring costs
(cash based)
|
|
|
19,295
|
|
|
|
19,295
|
|
|
|
0.30
|
|
Restructuring costs
(non-cash - long-lived asset impairment)
|
|
|
2,308
|
|
|
|
2,308
|
|
|
|
0.04
|
|
Pension
charges
|
|
|
52,005
|
|
|
|
52,005
|
|
|
|
0.80
|
|
Debt extinguishment
loss
|
|
|
11,624
|
|
|
|
11,624
|
|
|
|
0.18
|
|
Adjusted income from
continuing operations - non-GAAP*
|
|
$
|
56,691
|
|
|
$
|
51,768
|
|
|
$
|
0.79
|
|
Non-GAAP Financial Measure Disclosures (continued)
Adjusted Operating Income is defined as GAAP Operating Income,
less expenses/gains associated with the Company's transformation,
such as restructuring expenses, gains/losses on divestitures,
impairments of goodwill and other assets. Management believes that
this is useful in evaluating operating performance, but this
measure should not be used in isolation. The following table
reconciles our Operating income to Adjusted Operating income as
noted above.
|
|
Three Months
Ended
March 31,
|
|
|
Year Ended
March 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Operating income -
GAAP
|
|
$
|
56,151
|
|
|
$
|
38,797
|
|
|
$
|
238,092
|
|
|
$
|
104,277
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on sale of
assets and businesses, net
|
|
|
1,640
|
|
|
|
(4,335)
|
|
|
|
(101,523)
|
|
|
|
9,294
|
|
Restructuring costs
(cash based)
|
|
|
2,098
|
|
|
|
6,264
|
|
|
|
4,949
|
|
|
|
19,295
|
|
Restructuring costs
(non-cash - long-lived asset
impairment)
|
|
|
—
|
|
|
|
2,308
|
|
|
|
—
|
|
|
|
2,308
|
|
Consideration payable
to customer related to divestiture
|
|
|
—
|
|
|
|
—
|
|
|
|
17,185
|
|
|
|
—
|
|
Adjusted operating
income - non-GAAP
|
|
$
|
59,889
|
|
|
$
|
43,034
|
|
|
$
|
158,703
|
|
|
$
|
135,174
|
|
|
|
Fiscal
2024
|
($ in
millions)
|
|
Guidance
|
Operating
Income
|
|
$165.0 -
$180.0
|
Adjustments:
|
|
|
Depreciation &
Amortization
|
|
$38.0
|
Amortization of
acquired contract liabilities
|
|
($3.0)
|
Share-based
compensation
|
|
$10.0
|
Adjusted EBITDAP -
non-GAAP
|
|
$210.0 -
$225.0
|
(Continued)
FINANCIAL DATA (UNAUDITED)
TRIUMPH
GROUP, INC. AND SUBSIDIARIES
(dollars in
thousands)
Cash provided by operations, is provided for consistency and
comparability. We also use free cash flow as a key factor in
planning for and consideration of strategic acquisitions 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 to free cash flow.
|
|
Three Months
Ended
March 31,
|
|
|
Fiscal Year
Ended
March 31,
|
|
|
Fiscal 2024
Guidance
|
$ in
millions
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
Cash used in operating
activities
|
|
$
|
60.0
|
|
|
$
|
33.0
|
|
|
$
|
(52.3)
|
|
|
$
|
(137.0)
|
|
|
$ 60.0 - $
80.0
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(8.3)
|
|
|
|
(3.9)
|
|
|
|
(20.7)
|
|
|
|
(19.7)
|
|
|
$ (25.0) - $
(30.0)
|
Free cash
use
|
|
$
|
51.8
|
|
|
$
|
29.1
|
|
|
$
|
(72.9)
|
|
|
$
|
(156.7)
|
|
|
$ 35.0 - $
50.0
|
View original
content:https://www.prnewswire.com/news-releases/triumph-reports-fouth-quarter-fiscal-2023-results-301826726.html
SOURCE Triumph Group