CLEVELAND, May 5, 2015 /PRNewswire/ -- TransDigm Group
Incorporated (NYSE: TDG), a leading global designer, producer and
supplier of highly engineered aircraft components, today reported
results for the second quarter ended March
28, 2015 and announces potential financing transactions.
Highlights for the second quarter include:
- Net sales of $619.0 million,
up 4.8% from $590.8 million;
- EBITDA As Defined of $288.1
million, up 9.5% from $263.0
million;
- Net income of $110.9 million,
up 22.7% from $90.4 million;
- Earnings per share of $1.96,
up 31.5% from $1.49;
- Adjusted earnings per share of $2.11, up 12.8% from $1.87; and
- Upward revision to fiscal 2015 financial guidance.
Net sales for the quarter rose 4.8% to $619.0 million from $590.8
million in the comparable quarter a year ago. Organic net
sales grew in the low-single digits with the balance of the
increase from Elektro-Metall (EME).
Net income for the quarter rose 22.7% to $110.9 million, or $1.96 per share, compared to $90.4 million, or $1.49 per share, in the comparable quarter a year
ago. The increase in net income was primarily due to growth in net
sales described above; strength of our proprietary products and
continued productivity efforts; decrease in acquisition-related
costs and amortization expense; and lower effective tax rate.
The increase in net income was partially offset by higher
interest expense as a result of an increase of $1.7 billion in outstanding borrowings primarily
to fund the $25.00 per share dividend
paid in June 2014. The current
quarter included acquisition-related costs of $3.3 million, net of tax, or $0.06 per share. The comparable quarter a
year ago reflected acquisition-related costs of $10.9 million, net of tax, or $0.19 per share.
Earnings per share were reduced in the prior period by
$0.10 per share representing dividend
equivalent payments during the quarter.
Adjusted net income for the quarter rose 12.2% to $119.7 million, or $2.11 per share, from $106.6 million, or $1.87 per share, in the comparable quarter a year
ago.
EBITDA for the quarter increased 12.8% to $275.6 million from $244.4
million for the comparable quarter a year ago. EBITDA
As Defined for the period increased 9.5% to $288.1 million compared with $263.0 million in the quarter a year ago.
EBITDA As Defined as a percentage of net sales for the quarter was
46.5%.
On March 26, 2015, TransDigm
acquired the Telair Cargo Group of businesses for approximately
$725 million in cash, subject to
adjustment. Telair is a global leader in aerospace on-board cargo
loading and handling, restraint systems and unit load devices for a
variety of commercial and military platforms.
Subsequent to the fiscal second quarter end, on March 31, 2015, TransDigm acquired the aerospace
business of Franke Aquarotter GmbH for approximately $75 million. Franke manufactures proprietary
faucets and related products for use on commercial transports and
regional jets.
As previously reported on April 30,
2015, TransDigm entered into a definitive agreement to
acquire the assets of the aerospace business of Pexco LLC ("Pexco
Aerospace"), a portfolio company of Odyssey Investment Partners,
LLC, for approximately $496 million
in cash. The price includes approximately $160 million of tax benefits to be realized over
a 15 year period beginning in 2015. Pexco Aerospace is a global
leader in the manufacturing of extruded plastic interior parts for
use in the commercial aerospace industry.
W. Nicholas Howley, TransDigm
Group's Chairman and Chief Executive Officer, stated, "This has
been a busy 60 days for our team. We closed two acquisitions
for about $800 million in purchase
price in the calendar month of March and announced the execution of
a contract for a third deal last week for approximately another
$500 million of purchase price. All
three of these businesses are primarily commercial transport
focused with significant proprietary and aftermarket content.
All three acquisitions fit well with our consistent strategy and
should yield private equity-like returns for our shareholders."
He continued, "This was a good quarter for the commercial
transport aftermarket, with revenues up about 9.5% versus the prior
year second quarter. However, softness in the business jet and
helicopter aftermarket pulled the overall quarterly commercial
aftermarket increase down to about 7%. We stayed focused on
the details of our value drivers and continued to expand our EBITDA
margins. All in all, a good quarter for intrinsic shareholder value
creation."
Year-to-Date Results
Net sales for the twenty-six week period ended March 28, 2015 rose 7.7% to $1,205.9 million from $1,120.1 million in the comparable period last
year. Organic net sales grew low-single digits. The favorable
contribution from the acquisitions of Airborne and Elektro-Metall
(EME) accounted for the balance of the increase in net sales.
Net income for the twenty-six week period ended March 28, 2015 increased 17.0% to $206.4 million, or $3.59 per share, compared with $176.5 million, or $2.93 per share, in the comparable period last
year. The increase in net income primarily reflects the
increase in net sales described above; strength of our proprietary
products and continued productivity efforts; decrease in
acquisition-related costs and amortization expense; and lower
effective tax rate. The increase in net income was partially offset
by higher interest expense as a result of an increase of
$1.7 billion in outstanding
borrowings primarily to fund the $25.00 per share dividend paid in June 2014.
Earnings per share were reduced in both fiscal 2015 and 2014 by
$0.06 per share and $0.17 per share respectively, representing
dividend equivalent payments made during each fiscal
year.
Adjusted net income for the twenty-six week period ended
March 28, 2015 rose 9.9% to
$221.4 million, or $3.91 per share, from $201.5 million, or $3.53 per share, in the comparable period a year
ago.
EBITDA for the twenty-six week period ended March 28, 2015 increased 12.4% to $538.1 million from $478.8
million for the comparable period a year ago. EBITDA
As Defined for the period increased 10.1% to $557.8 million compared with $506.5 million in the comparable period a year
ago. EBITDA As Defined as a percentage of net sales for the
period was 46.3%.
Please see the attached tables for a reconciliation of net
income to EBITDA, EBITDA As Defined, and adjusted net income; a
reconciliation of net cash provided by operating activities to
EBITDA and EBITDA As Defined, and a reconciliation of earnings per
share to adjusted earnings per share for the periods discussed in
this press release.
Fiscal 2015 Outlook
Mr. Howley continued, "We are increasing the full year fiscal
2015 guidance primarily to reflect the recent acquisitions of
Telair and Franke, improved tax rate and our current expectations
for the second half of our fiscal year. This guidance excludes any
impact from the pending acquisition of Pexco Aerospace."
Assuming no additional acquisitions, the revised guidance is as
follows:
- Net sales are anticipated to be in the range of $2,660 million to $2,690 million compared with
$2,373 million in fiscal 2014;
- EBITDA As Defined is anticipated to be in the range of
$1,195 million to $1,215 million
compared with $1,073 million in
fiscal 2014;
- Net income is anticipated to be in the range of $432 million to $446 million compared with
$307 million in fiscal 2014;
- Earnings per share are expected to be in the range of
$7.56 to $7.82 per share based upon
weighted average shares outstanding of 56.6 million compared with
$3.16 per share in fiscal 2014;
and
- Adjusted earnings per share are expected to be in the range of
$8.49 to $8.75 per share compared
with $7.76 per share in fiscal
2014.
Earnings Conference Call
TransDigm Group will host a conference call for investors and
security analysts on May 5, 2015,
beginning at 11:00 a.m., Eastern
Time. To join the call, dial (866) 700-6067 and enter the
pass code 23018984. International callers should dial (617)
213-8834 and use the same pass code. A live audio webcast can be
accessed online at http://www.transdigm.com. A slide presentation
will also be available for reference during the conference call; go
to the investor relations page of our website and click on
"Presentations."
The call will be archived on the website and available for
replay at approximately 2:00 p.m., Eastern
Time. A telephone replay will be available for two weeks by
dialing (888) 286-8010 and entering the pass code 50858641.
International callers should dial (617) 801-6888 and use the same
pass code.
Potential Financing
TransDigm Group today announced its intention to increase its
existing senior secured credit facility by approximately
$450 million and increase
availability under its revolving credit facility to approximately
$500 million. In addition to
the $450 million of new term
loans, TransDigm Inc. may also seek to raise approximately
$450 million of new subordinated
debt.
TransDigm intends to use the proceeds to finance the pending
acquisition of Pexco Aerospace and replenish cash on the balance
sheet.
In connection with the senior credit facility refinancing,
TransDigm will make a presentation to its lenders on Tuesday, May 5, 2015 beginning at 1:30 p.m., Eastern Time. Additional information
will be available via Credit Suisse Securities (USA) LLC.
About TransDigm Group
TransDigm Group, through its wholly-owned subsidiaries, is a
leading global designer, producer and supplier of highly engineered
aircraft components for use on nearly all commercial and military
aircraft in service today. Major product offerings, substantially
all of which are ultimately provided to end-users in the aerospace
industry, include mechanical/electro-mechanical actuators and
controls, ignition systems and engine technology, specialized pumps
and valves, power conditioning devices, specialized AC/DC electric
motors and generators, NiCad batteries and chargers, engineered
latching and locking devices, rods and locking devices, engineered
connectors and elastomers, cockpit security components and systems,
specialized cockpit displays, aircraft audio systems, specialized
lavatory components, seatbelts and safety restraints, engineered
interior surfaces, lighting and control technology and military
personnel parachutes and cargo loading, handling and delivery
systems.
Non-GAAP Supplemental Information
EBITDA, EBITDA As Defined, EBITDA As Defined Margin, adjusted
net income and adjusted earnings per share are non-GAAP financial
measures presented in this press release as supplemental
disclosures to net income and reported results. TransDigm Group
defines EBITDA as earnings before interest, taxes, depreciation and
amortization and defines EBITDA As Defined as EBITDA plus certain
non-operating items, refinancing costs, acquisition-related costs,
transaction-related costs and non-cash charges incurred in
connection with certain employee benefit plans. TransDigm Group
defines adjusted net income as net income plus purchase accounting
backlog amortization expense, effects from the sale on businesses,
refinancing costs, acquisition-related costs, transaction-related
costs and non-cash charges incurred in connection with certain
employee benefit plans. EBITDA As Defined Margin represents EBITDA
As Defined as a percentage of net sales. TransDigm Group defines
adjusted diluted earnings per share as adjusted net income divided
by the total shares for basic and diluted earnings per share. For
more information regarding the computation of EBITDA, EBITDA As
Defined and adjusted net income and adjusted earnings per share,
please see the attached financial tables.
TransDigm Group presents these non-GAAP financial measures
because it believes that they are useful indicators of its
operating performance. TransDigm Group believes that EBITDA is
useful to investors because it is frequently used by securities
analysts, investors and other interested parties to measure
operating performance among companies with different capital
structures, effective tax rates and tax attributes, capitalized
asset values and employee compensation structures, all of which can
vary substantially from company to company. In addition, analysts,
rating agencies and others use EBITDA to evaluate a company's
ability to incur and service debt. EBITDA As Defined is used to
measure TransDigm Inc.'s compliance with the financial covenant
contained in its credit facility. TransDigm Group's management also
uses EBITDA As Defined to review and assess its operating
performance, to prepare its annual budget and financial projections
and to review and evaluate its management team in connection with
employee incentive programs. Moreover, TransDigm Group's management
uses EBITDA As Defined to evaluate acquisitions and as a liquidity
measure. In addition, TransDigm Group's management uses adjusted
net income as a measure of comparable operating performance between
time periods and among companies as it is reflective of changes in
pricing decisions, cost controls and other factors that affect
operating performance.
None of EBITDA, EBITDA As Defined, EBITDA As Defined Margin,
adjusted net income or adjusted earnings per share is a measurement
of financial performance under GAAP and such financial measures
should not be considered as an alternative to net income, operating
income, earnings per share, cash flows from operating activities or
other measures of performance determined in accordance with GAAP.
In addition, TransDigm Group's calculation of these non-GAAP
financial measures may not be comparable to the calculation of
similarly titled measures reported by other companies.
Although we use EBITDA and EBITDA As Defined as measures to
assess the performance of our business and for the other purposes
set forth above, the use of these non-GAAP financial measures as
analytical tools has limitations, and you should not consider any
of them in isolation, or as a substitute for analysis of our
results of operations as reported in accordance with GAAP. Some of
these limitations are:
- neither EBITDA nor EBITDA As Defined reflects the
significant interest expense, or the cash requirements necessary to
service interest payments, on our indebtedness;
- although depreciation and amortization are non-cash
charges, the assets being depreciated and amortized will often have
to be replaced in the future, and neither EBITDA nor EBITDA As
Defined reflects any cash requirements for such
replacements;
- the omission of the substantial amortization expense
associated with our intangible assets further limits the usefulness
of EBITDA and EBITDA As Defined;
- neither EBITDA nor EBITDA As Defined includes the payment
of taxes, which is a necessary element of our operations;
and
- EBITDA As Defined excludes the cash expense we have
incurred to integrate acquired businesses into our operations,
which is a necessary element of certain of our
acquisitions.
Because of these limitations, EBITDA and EBITDA As Defined
should not be considered as measures of discretionary cash
available to us to invest in the growth of our business. Management
compensates for these limitations by not viewing EBITDA or EBITDA
As Defined in isolation and specifically by using other GAAP
measures, such as net income, net sales and operating profit, to
measure our operating performance. Neither EBITDA nor EBITDA As
Defined is a measurement of financial performance under GAAP, and
neither should be considered as an alternative to net income or
cash flow from operations determined in accordance with GAAP. Our
calculation of EBITDA and EBITDA As Defined may not be comparable
to the calculation of similarly titled measures reported by other
companies.
Forward-Looking Statements
Statements in this press release that are not historical facts,
including statements under the heading "Fiscal 2015 Outlook,"
are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995.Words such as "believe,"
"may," "will," "should," "expect," "intend," "plan," "predict,"
"anticipate," "estimate," or "continue" and other words and terms
of similar meaning may identify forward-looking statements.
All forward-looking statements involve risks and uncertainties
which could affect TransDigm Group's actual results and could cause
its actual results to differ materially from those expressed or
implied in any forward-looking statements made by, or on behalf of,
TransDigm Group. These risks and uncertainties include but are not
limited to: the sensitivity of our business to the number of flight
hours that our customers' planes spend aloft and our customers'
profitability, both of which are affected by general economic
conditions; future terrorist attacks; our reliance on certain
customers; the U.S. defense budget and risks associated with being
a government supplier; failure to maintain government or industry
approvals; failure to complete or successfully integrate
acquisitions; our substantial indebtedness; potential environmental
liabilities; and other factors. Further information regarding the
important factors that could cause actual results to differ
materially from projected results can be found in TransDigm Group's
Annual Report on Form 10-K and other reports that TransDigm Group
or its subsidiaries have filed with the Securities and Exchange
Commission. Except as required by law, TransDigm Group undertakes
no obligation to revise or update the forward-looking statements
contained in this press release.
Contact: Liza
Sabol
Investor Relations
216-706-2945
ir@transdigm.com
|
TRANSDIGM GROUP
INCORPORATED
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
FOR THE THIRTEEN
AND TWENTY-SIX WEEK PERIODS ENDED
|
MARCH 28, 2015 AND
MARCH 29, 2014
|
(Amounts in
thousands, except per share amounts)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Table 1
|
|
|
|
Thirteen Week
Periods Ended
|
|
Twenty-Six Week
Periods Ended
|
|
|
|
March
28,
|
|
March
29,
|
|
March
28,
|
|
March
29,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
NET SALES
|
|
|
$
619,030
|
|
$
590,761
|
|
$
1,205,928
|
|
$
1,120,083
|
|
|
|
|
|
|
|
|
|
|
COST OF
SALES
|
|
|
277,413
|
|
283,179
|
|
543,138
|
|
528,365
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
|
341,617
|
|
307,582
|
|
662,790
|
|
591,718
|
|
|
|
|
|
|
|
|
|
|
SELLING AND
ADMINISTRATIVE EXPENSES
|
|
|
74,026
|
|
71,488
|
|
141,505
|
|
128,615
|
AMORTIZATION OF
INTANGIBLE ASSETS
|
|
|
11,030
|
|
17,600
|
|
24,056
|
|
33,983
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
|
256,561
|
|
218,494
|
|
497,229
|
|
429,120
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE -
NET
|
|
|
99,892
|
|
82,289
|
|
198,827
|
|
163,142
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
|
156,669
|
|
136,205
|
|
298,402
|
|
265,978
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX
PROVISION
|
|
|
45,775
|
|
45,850
|
|
91,975
|
|
89,500
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
$
110,894
|
|
$
90,355
|
|
$
206,427
|
|
$
176,478
|
|
|
|
|
|
|
|
|
|
|
NET INCOME APPLICABLE
TO COMMON STOCK
|
|
|
$
110,894
|
|
$
84,869
|
|
$
203,062
|
|
$
166,853
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share:
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
$
1.96
|
|
$
1.49
|
|
$
3.59
|
|
$
2.93
|
Cash dividends
paid per common share
|
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
56,604
|
|
57,068
|
|
56,603
|
|
57,030
|
|
|
|
|
|
|
|
|
|
|
TRANSDIGM GROUP
INCORPORATED
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF EBITDA,
|
EBITDA AS DEFINED
TO NET INCOME
|
FOR THE THIRTEEN
AND TWENTY-SIX WEEK PERIODS ENDED
|
MARCH 28, 2015 AND
MARCH 29, 2014
|
(Amounts in
thousands)
|
(Unaudited)
|
Table
2
|
|
|
Thirteen Week
Periods Ended
|
|
Twenty-Six
Week
Periods Ended
|
|
|
March 28,
2015
|
|
March 29,
2014
|
|
March 28,
2015
|
|
March 29,
2014
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
110,894
|
|
$
90,355
|
|
$
206,427
|
|
$
176,478
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
19,061
|
|
25,881
|
|
40,846
|
|
49,720
|
Interest expense -
net
|
|
99,892
|
|
82,289
|
|
198,827
|
|
163,142
|
Income tax
provision
|
|
45,775
|
|
45,850
|
|
91,975
|
|
89,500
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
275,622
|
|
244,375
|
|
538,075
|
|
478,840
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Acquisition-related
expenses and adjustments(1)
|
|
5,311
|
|
10,435
|
|
7,006
|
|
16,156
|
Non-cash stock
compensation expense(2)
|
|
7,830
|
|
8,158
|
|
13,594
|
|
12,333
|
Other -
net
|
|
(694)
|
|
-
|
|
(878)
|
|
(804)
|
|
|
|
|
|
|
|
|
|
Gross Adjustments to
EBITDA
|
|
12,447
|
|
18,593
|
|
19,722
|
|
27,685
|
|
|
|
|
|
|
|
|
|
EBITDA As
Defined
|
|
$
288,069
|
|
$
262,968
|
|
$
557,797
|
|
$
506,525
|
EBITDA As Defined,
Margin (3)
|
|
46.5%
|
|
44.5%
|
|
46.3%
|
|
45.2%
|
|
|
|
|
|
|
|
|
|
(1)Represents accounting adjustments to
inventory associated with acquisitions of businesses and product
lines that were charged to cost of sales when the inventory was
sold: costs incurred to integrate acquired businesses and product
lines into TD Group's operations, facility relocation costs and
other acquisition-related costs; transaction-related costs
comprising deal fees; legal, financial and tax due diligence
expenses; and valuation costs that are required to be expensed as
incurred.
|
(2)
Represents the compensation expense recognized by TD Group under
our stock option plans.
|
(3)
The EBITDA As Defined margin represents the amount of EBITDA As
Defined as a percentage of sales.
|
TRANSDIGM GROUP
INCORPORATED
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF
|
REPORTED EARNINGS
PER SHARE TO
|
ADJUSTED EARNINGS
PER SHARE
|
FOR THE THIRTEEN
AND TWENTY-SIX WEEK PERIODS ENDED
|
MARCH 28, 2015 AND
MARCH 29, 2014
|
(Amounts in
thousands, except per share amounts)
|
(Unaudited)
|
|
Table 3
|
|
|
Thirteen Week
Periods Ended
|
|
Twenty-Six
Week
Periods Ended
|
Reported Earnings
Per Share
|
|
March 28,
2015
|
|
March 29,
2014
|
|
March 28,
2015
|
|
March 29,
2014
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
110,894
|
|
$
90,355
|
|
$
206,427
|
|
$
176,478
|
Less: dividends on
participating securities
|
|
-
|
|
(5,486)
|
|
(3,365)
|
|
(9,625)
|
Net income applicable
to common stock - basic and diluted
|
|
$
110,894
|
|
$
84,869
|
|
$
203,062
|
|
$
166,853
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding under
|
|
|
|
|
|
|
|
|
the
two-class method:
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding
|
|
52,915
|
|
52,803
|
|
52,721
|
|
52,745
|
Vested options deemed
participating securities
|
|
3,689
|
|
4,265
|
|
3,882
|
|
4,285
|
Total shares for
basic and diluted earnings per share
|
|
56,604
|
|
57,068
|
|
56,603
|
|
57,030
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share
|
|
$
1.96
|
|
$
1.49
|
|
$
3.59
|
|
$
2.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
110,894
|
|
$
90,355
|
|
$
206,427
|
|
$
176,478
|
|
|
|
|
|
|
|
|
|
Gross adjustments to
EBITDA
|
|
12,447
|
|
18,593
|
|
19,722
|
|
27,685
|
Purchase accounting
backlog amortization
|
|
-
|
|
5,949
|
|
1,966
|
|
9,965
|
Tax
adjustment
|
|
(3,673)
|
|
(8,260)
|
|
(6,685)
|
|
(12,669)
|
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
|
$
119,668
|
|
$
106,637
|
|
$
221,430
|
|
$
201,459
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share under the two-class method
|
|
$
2.11
|
|
$
1.87
|
|
$
3.91
|
|
$
3.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
Per Share to Adjusted Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
1.96
|
|
$
1.49
|
|
$
3.59
|
|
$
2.93
|
|
|
|
|
|
|
|
|
|
Adjustments to
diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inclusion of the dividend equivalent payment
|
|
-
|
|
0.10
|
|
0.06
|
|
0.17
|
|
|
|
|
|
|
|
|
|
Non-cash
stock compensation expense
|
|
0.09
|
|
0.09
|
|
0.16
|
|
0.14
|
|
|
|
|
|
|
|
|
|
Acquisition-related expenses
|
|
0.06
|
|
0.19
|
|
0.10
|
|
0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
2.11
|
|
$
1.87
|
|
$
3.91
|
|
$
3.53
|
|
|
|
|
|
|
|
|
|
TRANSDIGM GROUP
INCORPORATED
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF NET CASH
|
PROVIDED BY
OPERATING ACTIVITIES TO EBITDA, EBITDA AS DEFINED
|
FOR THE TWENTY-SIX
WEEK PERIODS ENDED
|
MARCH 28, 2015 AND
MARCH 29, 2014
|
(Amounts in
thousands)
|
(Unaudited)
|
|
Table 4
|
|
|
Twenty-Six
Week Periods Ended
|
|
|
March 28,
2015
|
|
March 29,
2014
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
182,916
|
|
$
220,488
|
Adjustments:
|
|
|
|
|
Changes in assets and
liabilities, net of effects from acquisitions of
businesses
|
|
53,397
|
|
6,841
|
Net gain on sale of
real estate
|
|
-
|
|
804
|
Interest expense -
net (1)
|
|
190,880
|
|
156,712
|
Income tax provision
- current
|
|
86,447
|
|
95,630
|
Non-cash equity
compensation (2)
|
|
(13,594)
|
|
(12,333)
|
Excess tax benefit
from exercise of stock options
|
|
38,029
|
|
10,698
|
|
|
|
|
|
EBITDA
|
|
538,075
|
|
478,840
|
Adjustments:
|
|
|
|
|
Acquisition-related
expenses(3)
|
|
6,128
|
|
15,352
|
Non-cash stock
compensation expense (2)
|
|
13,594
|
|
12,333
|
EBITDA As
Defined
|
|
$
557,797
|
|
$
506,525
|
|
|
|
|
|
(1)Represents interest expense excluding
the amortization of debt issue costs and note premium and
discount.
|
(2)Represents the compensation expense
recognized by TD Group under our stock option plans.
|
(3)Represents accounting adjustments to
inventory associated with acquisitions of businesses and product
lines that were charged to cost of sales when the inventory was
sold; costs incurred to integrate acquired businesses and product
lines into TD Group's operations, facility relocation costs and
other acquisition-related costs; transaction-related costs
comprising deal fees; legal, financial and tax due diligence
expenses and valuation costs that are required to be expensed as
incurred.
|
TRANSDIGM GROUP
INCORPORATED
|
SUPPLEMENTAL
INFORMATION - BALANCE SHEET DATA
|
(Amounts in
thousands)
|
(Unaudited)
|
|
Table 5
|
|
|
March 28,
2015
|
|
September 30,
2014
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
392,519
|
|
$
819,548
|
Trade accounts
receivable - net
|
|
419,636
|
|
351,307
|
Inventories -
net
|
|
553,057
|
|
459,074
|
|
|
|
|
|
Current portion of
long-term debt
|
|
39,295
|
|
39,295
|
Short-term
borrowings-trade receivable securitization facility
|
|
200,000
|
|
200,000
|
Accounts
payable
|
|
120,656
|
|
115,741
|
Accrued current
liabilities
|
|
253,565
|
|
230,871
|
|
|
|
|
|
Long-term
debt
|
|
7,299,262
|
|
7,233,836
|
|
|
|
|
|
Total stockholders'
deficit
|
|
(1,326,208)
|
|
(1,556,099)
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/transdigm-group-reports-fiscal-2015-second-quarter-results-and-announces-potential-financing-transactions-300077194.html
SOURCE TransDigm Group Incorporated