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30.04.2009 22:00

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Triumph Group Reports Strong Fourth Quarter and Record Full Fiscal Year 2009 Results

Triumph Group zu myNews hinzufügen Was ist das?


Triumph Group, Inc. (NYSE:TGI) today reported that, for the fiscal year ended March 31, 2009, net sales totaled $1.240 billion, an eight percent increase from fiscal year 2008 net sales of $1.151 billion. Income from continuing operations for fiscal year 2009 increased twenty-nine percent to $97.8 million, or $5.90 per diluted share, versus $75.7 million, or $4.32 per diluted share, for fiscal year 2008. Net income for fiscal year 2009 increased thirty-eight percent to $93.1 million, or $5.61 per diluted share, versus $67.3 million, or $3.84 per diluted share. The number of shares used in computing diluted earnings per share for fiscal year 2009 decreased to 16.6 million shares. During the fiscal year, the company generated $139.5 million of cash flow from operations.

For the fourth quarter ended March 31, 2009, net sales were $311.2 million, a three percent decrease from last fiscal year’s fourth quarter net sales of $321.2 million. Income from continuing operations for the fourth quarter of fiscal year 2009 increased twelve percent to $23.8 million, or $1.43 per diluted share, versus $21.3 million, or $1.26 per diluted share, for the fourth quarter of the prior fiscal year. Net income for the fourth quarter of fiscal year 2009 increased fourteen percent to $22.1 million, or $1.33 per diluted share, versus $19.4 million, or $1.15 per diluted share, for the fourth quarter of the prior fiscal year. The number of shares used in computing diluted earnings per share for the fourth quarter of fiscal year 2009 was 16.6 million shares. During the quarter, the company generated $62.7 million of cash flow from operations.

Aerospace Systems

The Aerospace Systems segment reported net sales for fiscal year 2009 of $988.4 million, compared to $907.4 million for the prior fiscal year, an increase of nine percent. Organic sales growth for fiscal year 2009 was five percent. For the fourth quarter of fiscal year 2009, net sales decreased three percent to $249.8 million from $256.6 million for the prior fiscal year period. The sales decrease was entirely attributable to the reduction in demand for business jets, the program delay on the 747-8 and 787 aircrafts and the lingering impact of the Boeing strike. Operating income for fiscal year 2009 was $168.0 million, compared to $124.8 million for the prior fiscal year, an increase of thirty-five percent. For the fourth quarter, operating income increased ten percent to $41.2 million versus $37.3 million for the prior fiscal year quarter. Operating income for the quarter included $1.9 million of legal expenses associated with the previously disclosed trade secret litigation resulting in total legal expenses for the full year of $4.7 million.

Aftermarket Services

The Aftermarket Services segment reported net sales for fiscal year 2009 of $254.6 million, compared to $246.6 million for the prior fiscal year, an increase of three percent, all of which was organic. For the fourth quarter of fiscal year 2009, net sales decreased five percent to $62.1 million from $65.5 million for the prior fiscal year period. Operating income for fiscal year 2009 was $10.9 million, compared to $23.5 million for the prior fiscal year, a decrease of fifty-four percent. For the quarter, operating income decreased seventy-one percent to $1.9 million versus $6.4 million for the prior fiscal year quarter. The segment’s results continue to be negatively impacted by losses sustained at the Phoenix APU operations. Excluding these operations, the segment’s year over year revenue growth was six percent for the quarter and seventeen percent for the year with operating margins of nine percent for the quarter and ten percent for the year. In addition, fourth quarter results included $0.6 million of expense incurred to shut down a manufacturing facility in Shannon, Ireland.

Other

During the quarter, the company retired $8.0 million of its convertible notes for $7.2 million cash and recorded a $0.8 million pre-tax gain on the early extinguishment of the debt.

Richard C. Ill, Triumph’s President and Chief Executive Officer, said, "We are proud to report both a strong quarter and record year for Triumph in spite of the challenges that present themselves in this uncertain environment. For the year, our sales, operating income, earnings and cash flow all achieved record levels. Although the quarter was impacted by the challenges associated with the resumption of production following the Boeing strike and a deteriorating business jet market, our Aerospace Systems Group was able to improve operating margins year over year. While the solid performance of our core maintenance, repair and overhaul operations in our Aftermarket Services Group continue to be offset by the losses sustained at the Phoenix APU business, we remain confident that the actions taken will improve profitability and position us for continued future growth. We are also excited about the four new acquisitions we made this year. Each of these businesses enhances our product offerings and enables us to expand our market presence.”

Outlook

In commenting on the outlook for fiscal year 2010, Mr. Ill said, "We are entering our new fiscal year with a record backlog and strong balance sheet. Based on current aircraft production rates, we project sales in the range of $1.275 to $1.375 billion and earnings per share from continuing operations for the fiscal year of approximately $5.00 per diluted share, computed on 17.2 million shares. Included in this guidance is approximately $9.0 million of legal expenses related to the trade secret litigation, approximately $2.0 million of acquisition related costs resulting from the adoption of SFAS 141(R), approximately $7.0 million of incremental non-cash interest expense associated with changing the accounting for convertible debt interest and approximately $7.5 million of start up costs related to the Mexican facility which is in addition to our investment in capital and infrastructure.”

As previously announced, Triumph Group will hold a conference call tomorrow at 11:00 a.m. (ET) to discuss the fiscal year 2009 fourth quarter and year-end 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 May 1st until May 8th by calling (888) 266-2081 (Domestic) or (703) 925-2533 (International), passcode #1351011.

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 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 expectations of future

aerospace market conditions, aircraft production rates, financial and operational performance, revenue and earnings growth, and sales and earnings results for fiscal 2010. 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, 2008.

       
FINANCIAL DATA (UNAUDITED)
 
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(in thousands, except per share data)
 
 
Three Months Ended Twelve Months Ended
March 31, March 31,
 
CONDENSED STATEMENTS OF INCOME 2009 2008 2009 2008
 
 
Net Sales $ 311,188 $ 321,215 $ 1,240,378 $ 1,151,090
 
Operating Income 35,441 35,502 151,914 126,325
 
Interest Expense and Other 1,297 3,339 11,096 13,422
Gain on Early Extinguishment of Debt (803 ) 0 (2,580 ) 0
Income Tax Expense   11,184     10,857     45,586     37,161  
 
Income from Continuing Operations 23,763 21,306 97,812 75,742
Loss from Discontinued Operations, net of tax   (1,631 )   (1,896 )   (4,745 )   (8,468 )
 
Net Income $ 22,132   $ 19,410   $ 93,067   $ 67,274  
 
Earnings Per Share - Basic:
 
Income from Continuing Operations $ 1.45 $ 1.30 $ 5.97 $ 4.59
Loss from Discontinued Operations   ($0.10 )   ($0.12 )   ($0.29 )   ($0.51 )
Net Income $ 1.35   $ 1.18   $ 5.68   $ 4.08  
 
Weighted average common shares outstanding - Basic   16,392     16,443     16,384     16,497  
 
Earnings Per Share - Diluted:
 
Income from Continuing Operations $ 1.43 $ 1.26 $ 5.90 $ 4.32
Loss from Discontinued Operations   ($0.10 )   ($0.11 )   ($0.29 )   ($0.48 )
Net Income $ 1.33   $ 1.15   $ 5.61   $ 3.84  
 
Weighted average common shares outstanding - Diluted   16,587     16,935     16,584     17,540  
 
Dividends declared and paid per common share $ 0.04   $ 0.04   $ 0.16   $ 0.16  
 
   
FINANCIAL DATA (UNAUDITED)
 
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands, except per share data)
 
BALANCE SHEET
March 31, March 31,
2009 2008
Assets
Cash $ 14,478 $ 13,738
Accounts Receivable, net 209,463 207,975
Inventory 389,348 350,937
Rotable Assets (1) 25,652 23,392
Deferred Income Taxes 10,166 1,450
Assets Held for Sale 27,695 24,763
Prepaid Income Taxes 4,434 0
Prepaid Expenses and Other   6,021     5,207  
Current Assets 687,257 627,462
 
Property and Equipment, net 332,467 311,433
Goodwill 459,541 383,740
Intangible Assets, net 108,350 78,488
Other   13,731     13,712  
 
Total Assets $ 1,601,346   $ 1,414,835  
 
Liabilities & Stockholders' Equity
 
Accounts Payable $ 103,711 $ 120,117
Accrued Expenses 109,580 83,397
Liabilities Related to Assets Held for Sale 4,283 4,587
Income Taxes Payable 0 1,509
Current Portion of Long-Term Debt   89,085     1,010  
Current Liabilities 306,659 210,620
 
Long-Term Debt, less current portion 386,219 418,803
Income Taxes Payable, non-current 2,917 1,437
Deferred Income Taxes and Other 125,901 91,246
 
Stockholders' Equity:

Common Stock, $.001 par value, 50,000,000 shares authorized, 16,763,984 and 16,731,324 shares issued

16 16
Capital in excess of par value 291,304 288,154
Treasury Stock, at cost, 174,417 and 213,950 shares (9,785 ) (12,003 )
Accumulated other comprehensive income (2,233 ) 2,950
Retained earnings   500,348     413,612  
Total Stockholders' Equity   779,650     692,729  
 
Total Liabilities and Stockholders' Equity $ 1,601,346   $ 1,414,835  
 

(1)

 

Rotable assets, which include assets that can be repaired and reused in exchange transactions through our maintenance, repair and overhaul services, of $23,392 as of March 31, 2008, includes $10,730 and $12,662 that were previously reported in inventory and property and equipment, net, respectively.

 
       
FINANCIAL DATA (UNAUDITED)
 
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
 
 
 
SEGMENT DATA Three Months Ended Twelve Months Ended
March 31, March 31,
 
2009 2008 2009 2008
 
Net Sales:
Aerospace Systems $ 249,807 $ 256,560 $ 988,359 $ 907,376
Aftermarket Services 62,082 65,514 254,638 246,609
Elimination of inter-segment sales   (701 )   (859 )   (2,619 )   (2,895 )
$ 311,188   $ 321,215   $ 1,240,378   $ 1,151,090  
 
Operating Income (Loss):
Aerospace Systems $ 41,152 $ 37,253 $ 168,006 $ 124,812
Aftermarket Services 1,874 6,408 10,876 23,480
Corporate   (7,585 )   (8,159 )   (26,968 )   (21,967 )
$ 35,441   $ 35,502   $ 151,914   $ 126,325  
 
Depreciation and Amortization:
Aerospace Systems $ 8,896 $ 7,973 $ 34,784 $ 30,007
Aftermarket Services 3,309 3,441 13,515 12,943
Corporate   121     68     312     265  
$ 12,326   $ 11,482   $ 48,611   $ 43,215  
 
 
Capital Expenditures:
Aerospace Systems $ 10,610 $ 14,886 $ 34,618 $ 40,762
Aftermarket Services 2,128 8,982 8,804 20,652
Corporate   1,431     247     1,999     954  
$ 14,169   $ 24,115   $ 45,421   $ 62,368  
 
 

FINANCIAL DATA (UNAUDITED)

 

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)

 

Non-GAAP Financial Measure Disclosures

 
This press release includes a discussion of Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA”), which is a non-GAAP financial measure. The Company believes this non-GAAP financial measure provides important supplemental information to management and investors. This non-GAAP financial measure reflects an additional way of viewing aspects of Triumph’s operations that, when viewed with the GAAP results and the accompanying reconciliation to corresponding GAAP financial measures, provides a more complete understanding of factors and trends affecting Triumph’s business and results of operations.
 
Management believes EBITDA provides useful information with respect to its overall operating performance and debt service capacity because it assists in comparisons of the Company’s operating performance on a consistent basis by removing the impact of items not directly resulting from core operations. The Company’s credit facility uses EBITDA to measure compliance with covenants such as interest coverage and debt incurrence. EBITDA is also used by us to evaluate and price potential acquisition candidates.
 
However, when analyzing the Company’s operating performance, management uses EBITDA in addition to, and not as an alternative for, net income determined in accordance with GAAP. EBITDA has limitations as an analytical tool, and should not be considered in isolation. Some of these limitations are: (a) EBITDA does not reflect changes in, or cash requirements for, the Company’s working capital needs; (b) EBITDA does not reflect the significant interest expense, or cash requirements necessary to service interest or principal payments, on the Company’s debts; and (c) although depreciation and amortization are non-cash charges, the asset being depreciated and amortized may have to be replaced in the future, and EBITDA does not reflect any cash requirements for such capital expenditures.
 
Because of these limitations, EBITDA should not be considered as a measure of discretionary cash available to invest in the growth of Triumph’s business or as a measure of cash that will be available to Triumph to meet its obligations. Because of these limitations management relies primarily on Triumph’s GAAP results and uses EBITDA only supplementally.
       
Three Months Ended Twelve Months Ended
March 31, March 31,
2009 2008 2009 2008
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA):
 
Income from Continuing Operations $ 23,763 $ 21,306 $ 97,812 $ 75,742
 
Add-back:
Income Tax Expense 11,184 10,857 45,586 37,161
Gain on Early Extinguishment of Debt (803 ) 0 (2,580 ) 0
Interest Expense and Other 1,297 3,339 11,096 13,422
Depreciation and Amortization   12,326     11,482     48,611     43,215  
 

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

$ 47,767 $ 46,984 $ 200,525 $ 169,540
 
Net Sales $ 311,188   $ 321,215   $ 1,240,378   $ 1,151,090  
 
EBITDA Margin   15.3 %   14.6 %   16.2 %   14.7 %
 
       
FINANCIAL DATA (UNAUDITED)
 
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
 
Non-GAAP Financial Measure Disclosures (continued)
 

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

Three Months Ended March 31, 2009
Segment Data
Total

Aerospace
Systems

Aftermarket
Services

Corporate /
Eliminations

 
Income from Continuing Operations $ 23,763
 
Add-back:
Income Tax Expense 11,184
Gain on Early Extinguishment of Debt (803 )
Interest Expense and Other   1,297  
 
Operating Income (Expense) $ 35,441 $ 41,152 $ 1,874 ($7,585 )
 
Depreciation and Amortization   12,326     8,896     3,309   121  
 

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

$ 47,767   $ 50,048   $ 5,183   ($7,464 )
 
Net Sales $ 311,188   $ 249,807   $ 62,082   ($701 )
 
EBITDA Margin   15.3 %   20.0 %   8.3 % n/a  
 
 
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA): Twelve Months Ended March 31, 2009
Segment Data
Total

Aerospace
Systems

Aftermarket
Services

Corporate /
Eliminations

 
Income from Continuing Operations $ 97,812
 
Add-back:
Income Tax Expense 45,586
Gain on Early Extinguishment of Debt (2,580 )
Interest Expense and Other   11,096  
 
Operating Income (Expense) $ 151,914 $ 168,006 $ 10,876 ($26,968 )
 
Depreciation and Amortization   48,611     34,784     13,515   312  
 

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

$ 200,525   $ 202,790   $ 24,391   ($26,656 )
 
Net Sales $ 1,240,378   $ 988,359   $ 254,638   ($2,619 )
 
EBITDA Margin   16.2 %   20.5 %   9.6 % n/a  
 
       
FINANCIAL DATA (UNAUDITED)
 
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
 
Non-GAAP Financial Measure Disclosures (continued)
 
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA): Three Months Ended March 31, 2008
Segment Data
Total

Aerospace
Systems

Aftermarket
Services

Corporate /
Eliminations

 
Income from Continuing Operations $ 21,306
 
Add-back:
Income Tax Expense 10,857
Interest Expense and Other   3,339  
 
Operating Income (Expense) $ 35,502 $ 37,253 $ 6,408 ($8,159 )
 
Depreciation and Amortization   11,482     7,973     3,441   68  
 

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

$ 46,984   $ 45,226   $ 9,849   ($8,091 )
 
Net Sales $ 321,215   $ 256,560   $ 65,514   ($859 )
 
EBITDA Margin   14.6 %   17.6 %   15.0 % n/a  
 
 
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA): Twelve Months Ended March 31, 2008
Segment Data
Total

Aerospace
Systems

Aftermarket
Services

Corporate /
Eliminations

 
Income from Continuing Operations $ 75,742
 
Add-back:
Income Tax Expense 37,161
Interest Expense and Other   13,422  
 
Operating Income (Expense) $ 126,325 $ 124,812 $ 23,480 ($21,967 )
 
Depreciation and Amortization   43,215     30,007     12,943   265  
 

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

$ 169,540   $ 154,819   $ 36,423   ($21,702 )
 
Net Sales $ 1,151,090   $ 907,376   $ 246,609   ($2,895 )
 
EBITDA Margin   14.7 %   17.1 %   14.8 % n/a  
 
     
FINANCIAL DATA (UNAUDITED)
   
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)
 
Non-GAAP Financial Measure Disclosures (continued)
 
Management believes that "Net Debt to Capital" provides the reader a good measure of financial leverage.
The following table sets forth the computation of Net Debt to Capital:
             
March 31, March 31,
2009 2008
 

Calculation of Net Debt

Current Portion $ 89,085 $ 1,010
Long-term debt   386,219     418,803  
Total Debt 475,304 419,813
Less: Cash   14,478     13,738  
Net Debt $ 460,826   $ 406,075  
 

Calculation of Capital

Net Debt $ 460,826 $ 406,075
Stockholders' equity   779,650     692,729  
Total Capital $ 1,240,476   $ 1,098,804  
 
Percent of Net Debt to Capital 37.1 % 37.0 %
 

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