CLEVELAND, Aug. 4, 2015 /PRNewswire/ -- TransDigm Group
Incorporated (NYSE: TDG), a leading global designer, producer and
supplier of highly engineered aircraft components, today reported
results for the third quarter ended June 27,
2015.
Highlights for the third quarter include:
- Net sales of $691.4 million,
up 13.2% from $610.6
million;
- EBITDA As Defined of $312.9
million, up 13.5% from $275.6
million;
- Net income of $99.1 million,
up 512.6% from $16.2
million;
- Earnings per share of $1.75,
up from a loss per share of $1.66;
- Adjusted earnings per share of $2.26, up 11.9% from $2.02; and
- Upward revision to fiscal 2015 sales, EBITDA As Defined and
adjusted earnings per share guidance.
Net sales for the quarter rose 13.2% to $691.4 million from $610.6
million in the comparable quarter a year ago. The
acquisitions of the Telair Cargo Group ("Telair"), the aerospace
business of Franke Aquarotter GmbH ("Franke") and the assets of the
aerospace business of Pexco LLC ("Pexco") contributed approximately
80% of the increase in net sales. Organic net sales growth
accounted for the balance of the sales increase.
Net income for the quarter rose 512.6% to $99.1 million, or $1.75 per share, compared to $16.2 million, or loss of $1.66 per share, in the comparable quarter a year
ago. Earnings per share were reduced in the prior period by
$1.94 per share representing dividend
equivalent payments during the quarter. The increase in net income
reflects the growth in net sales described above partially offset
by higher interest expense as a result of an increase in the
weighted average level of outstanding borrowings to $7.9 billion from $6.3
billion in the comparable quarter last year. The proceeds
from the May 2015 refinancing were
used primarily to fund the acquisitions of Pexco and Franke as well
as refinance a portion of our senior secured debt. The
current quarter included refinancing costs of $13.0 million, net of tax, or $0.23 per share. The prior period also included
refinancing costs of $88.6 million,
net of tax, or $1.55 per share, of
which proceeds were used primarily to fund a $25.00 per share dividend in June 2014.
Adjusted net income for the quarter rose 10.8% to $128.1 million, or $2.26 per share, from $115.6 million, or $2.02 per share, in the comparable quarter a year
ago.
EBITDA for the quarter increased 104.4% to $272.5 million from $133.3
million for the comparable quarter a year ago. EBITDA
As Defined for the period increased 13.5% to $312.9 million compared with $275.6 million in the quarter a year ago.
EBITDA As Defined as a percentage of net sales for the quarter was
45.2%.
As previously reported, 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 May 14,
2015, TransDigm acquired the assets of the aerospace
business of Pexco LLC for approximately $496
million in cash. Pexco is a global leader in the
manufacturing of extruded plastic interior parts for use in the
commercial aerospace industry.
As previously reported, on July 28,
2015, TransDigm entered into a definitive agreement to
acquire PneuDraulics, Inc. for approximately $325 million in cash. PneuDraulics, Inc.
manufactures proprietary aerospace pneumatic and hydraulic
components and subsystems for commercial transport, regional,
business jet and military applications. The acquisition, subject to
regulatory approvals and customary closing conditions, is expected
to close before the end of fiscal 2015.
W. Nicholas Howley, TransDigm
Group's Chairman and Chief Executive Officer, stated, "Our fiscal
third quarter operating results were right in-line with our
previous guidance in spite of some softness in the commercial
aerospace business. Our defense business continued stronger than
originally anticipated and our focus on value generation at our
operating units continued to pay off."
He continued, "In addition to operating our businesses, we have
been quite busy in the last 180 days with our M&A and financing
activities. During that time, we purchased three strong businesses
for about $1.3 billion in purchase
price and just announced the execution of a contract to buy another
for $325 million. All four of
these businesses fit well with our long term focus on proprietary
aerospace businesses with significant aftermarket and good
opportunities for value creation. Additionally, we raised
$925 million of new debt and
refinanced and extended maturities on approximately $1.1 billion of our existing debt."
Year-to-Date Results
Net sales for the thirty-nine week period ended June 27, 2015 rose 9.6% to $1,897.3 million from $1,730.7 million in the comparable period last
year. Organic net sales grew low-single digits. The favorable
contribution from the acquisitions of Airborne, Elektro-Metall,
Telair, Franke and Pexco accounted for the balance of the increase
in net sales.
Net income for the thirty-nine week period ended June 27, 2015 increased 58.6% to $305.5 million, or $5.34 per share, compared with $192.7 million, or $1.26 per share, in the comparable period last
year. Earnings per share were reduced in both fiscal 2015 and 2014
by $0.06 per share and $2.11 per share respectively, representing
dividend equivalent payments made during each fiscal year. The
increase in net income reflects the increase in net sales described
above and lower effective tax rate. The increase in net income was
partially offset by higher interest expense as a result of an
increase in the weighted average level of outstanding borrowings to
approximately $7.6 billion from
$6.0 billion in the comparable period
last year. The current year included refinancing costs of
$12.7 million, net of tax, or
$0.22 per share. The prior year also
included refinancing costs of $88.4
million, net of tax, or $1.55
per share.
Adjusted net income for the thirty-nine week period ended
June 27, 2015 rose 10.2% to
$349.5 million, or $6.17 per share, from $317.1 million, or $5.55 per share, in the comparable period a year
ago.
EBITDA for the thirty-nine week period ended June 27, 2015 increased 32.4% to $810.5 million from $612.2
million for the comparable period a year ago. EBITDA
As Defined for the period increased 11.3% to $870.7 million compared with $782.1 million in the comparable period a year
ago. EBITDA As Defined as a percentage of net sales for the
period was 45.9%.
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 sales, EBITDA as Defined and adjusted earnings per share
guidance primarily to reflect the recent acquisition of Pexco and
our current expectations for the fiscal fourth quarter. This
guidance excludes any impact of the pending acquisition of
PneuDraulics, Inc."
Assuming no additional acquisitions, the revised guidance is as
follows:
- Net sales are anticipated to be in the range of $2,688 million to $2,710 million compared with
$2,373 million in fiscal 2014;
- EBITDA As Defined is anticipated to be in the range of
$1,215 million to $1,225 million
compared with $1,073 million in
fiscal 2014;
- Net income is anticipated to be in the range of $426 million to $434 million compared with
$307 million in fiscal 2014;
- Earnings per share are expected to be in the range of
$7.46 to $7.60 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
$8.64 to $8.78 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 August 4, 2015,
beginning at 11:00 a.m., Eastern
Time. To join the call, dial (866) 318-8618 and enter the
pass code 13576657. International callers should dial (617)
399-5137 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.
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 and related components, 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 THIRTY-NINE WEEK PERIODS ENDED
|
|
|
Table
1
|
JUNE 27, 2015 AND
JUNE 28, 2014
|
|
|
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Thirteen Week
Periods Ended
|
|
Thirty-Nine Week
Periods Ended
|
|
|
|
June
27,
|
|
June
28,
|
|
June
27,
|
|
June
28,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
NET SALES
|
|
|
$
691,395
|
|
$
610,582
|
|
$
1,897,323
|
|
$
1,730,665
|
|
|
|
|
|
|
|
|
|
|
COST OF
SALES
|
|
|
331,940
|
|
283,054
|
|
875,078
|
|
811,419
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
|
359,455
|
|
327,528
|
|
1,022,245
|
|
919,246
|
|
|
|
|
|
|
|
|
|
|
SELLING AND
ADMINISTRATIVE EXPENSES
|
|
|
81,849
|
|
71,146
|
|
223,354
|
|
199,761
|
AMORTIZATION OF
INTANGIBLE ASSETS
|
|
|
13,910
|
|
16,402
|
|
37,966
|
|
50,385
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
|
263,696
|
|
239,980
|
|
760,925
|
|
669,100
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE -
NET
|
|
|
106,796
|
|
87,613
|
|
305,623
|
|
250,755
|
REFINANCING
COSTS
|
|
|
18,159
|
|
131,490
|
|
18,159
|
|
131,490
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
|
138,741
|
|
20,877
|
|
437,143
|
|
286,855
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX
PROVISION
|
|
|
39,629
|
|
4,700
|
|
131,604
|
|
94,200
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
$
99,112
|
|
$
16,177
|
|
$
305,539
|
|
$
192,655
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
APPLICABLE TO COMMON STOCK
|
|
|
$
99,112
|
|
$
(94,726)
|
|
$
302,174
|
|
$
72,127
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share:
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
$
1.75
|
|
$
(1.66)
|
|
$
5.34
|
|
$
1.26
|
Cash dividends
paid per common share
|
|
|
$
-
|
|
$
25.00
|
|
$
-
|
|
$
25.00
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
56,608
|
|
57,170
|
|
56,605
|
|
57,077
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSDIGM GROUP
INCORPORATED
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF EBITDA,
|
EBITDA AS DEFINED
TO NET INCOME
|
FOR THE THIRTEEN
AND THIRTY-NINE WEEK PERIODS ENDED
|
JUNE 27, 2015 AND
JUNE 28, 2014
|
|
|
Table 2
|
(Amounts in
thousands)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Thirteen Week
Periods Ended
|
|
Thirty-Nine
Week
Periods Ended
|
|
|
June 27,
2015
|
|
June 28,
2014
|
|
June 27,
2015
|
|
June 28,
2014
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 99,112
|
|
$ 16,177
|
|
$ 305,539
|
|
$ 192,655
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
26,921
|
|
24,821
|
|
67,767
|
|
74,541
|
Interest expense -
net
|
|
106,796
|
|
87,613
|
|
305,623
|
|
250,755
|
Income tax
provision
|
|
39,629
|
|
4,700
|
|
131,604
|
|
94,200
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
272,458
|
|
133,311
|
|
810,533
|
|
612,151
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Acquisition-related
expenses and adjustments(1)
|
|
12,271
|
|
2,355
|
|
19,288
|
|
18,297
|
Non-cash stock
compensation expense(2)
|
|
9,841
|
|
6,516
|
|
23,435
|
|
18,849
|
Refinancing
costs(3)
|
|
18,159
|
|
131,490
|
|
18,159
|
|
131,490
|
Other -
net
|
|
126
|
|
1,912
|
|
(763)
|
|
1,322
|
|
|
|
|
|
|
|
|
|
Gross Adjustments to
EBITDA
|
|
40,397
|
|
142,273
|
|
60,119
|
|
169,958
|
|
|
|
|
|
|
|
|
|
EBITDA As
Defined
|
|
$ 312,855
|
|
$ 275,584
|
|
$ 870,652
|
|
$ 782,109
|
EBITDA As Defined,
Margin (4)
|
|
45.2%
|
|
45.1%
|
|
45.9%
|
|
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 incentive plans.
|
(3) For
the periods ended June 27, 2015, represents debt issuance costs
expensed in conjunction with the refinancing of our 2013 term loans
in May 2015. For the periods ended June 28, 2014, represents debt
issuance costs expensed and the premium paid to redeem our 2018
Notes in June 2014.
|
(4) 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 THIRTY-NINE WEEK PERIODS ENDED
|
|
|
Table
3
|
JUNE 27, 2015 AND
JUNE 28, 2014
|
|
|
|
|
(Amounts in
thousands, except per share amounts)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Thirteen Week
Periods Ended
|
|
Thirty-Nine
Week
Periods Ended
|
Reported Earnings
Per Share
|
|
June 27,
2015
|
|
June 28,
2014
|
|
June 27,
2015
|
|
June 28,
2014
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 99,112
|
|
$ 16,177
|
|
$ 305,539
|
|
$ 192,655
|
Less: dividends on
participating securities
|
|
-
|
|
(110,903)
|
|
(3,365)
|
|
(120,528)
|
Net income (loss)
applicable to common stock - basic and diluted
|
|
$ 99,112
|
|
$ (94,726)
|
|
$ 302,174
|
|
$ 72,127
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding under
|
|
|
|
|
|
|
|
|
the two-class
method:
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding
|
|
53,361
|
|
52,915
|
|
52,937
|
|
52,802
|
Vested options deemed
participating securities
|
|
3,247
|
|
4,255
|
|
3,668
|
|
4,275
|
Total shares for
basic and diluted earnings per share
|
|
56,608
|
|
57,170
|
|
56,605
|
|
57,077
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings (loss) per share
|
|
$ 1.75
|
|
$ (1.66)
|
|
$ 5.34
|
|
$ 1.26
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 99,112
|
|
$ 16,177
|
|
$ 305,539
|
|
$ 192,655
|
|
|
|
|
|
|
|
|
|
Gross adjustments to
EBITDA
|
|
40,397
|
|
142,273
|
|
60,119
|
|
169,958
|
Purchase accounting
backlog amortization
|
|
835
|
|
5,303
|
|
2,801
|
|
15,268
|
Tax
adjustment
|
|
(12,257)
|
|
(48,157)
|
|
(18,942)
|
|
(60,826)
|
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
|
$ 128,087
|
|
$ 115,596
|
|
$ 349,517
|
|
$ 317,055
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share under the two-class method
|
|
$ 2.26
|
|
$ 2.02
|
|
$ 6.17
|
|
$ 5.55
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
Per Share to Adjusted Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
$ 1.75
|
|
$ (1.66)
|
|
$ 5.34
|
|
$ 1.26
|
|
|
|
|
|
|
|
|
|
Adjustments to
diluted earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inclusion of the
dividend equivalent payment
|
|
-
|
|
1.94
|
|
0.06
|
|
2.11
|
|
|
|
|
|
|
|
|
|
Non-cash stock
compensation expense
|
|
0.12
|
|
0.08
|
|
0.29
|
|
0.22
|
|
|
|
|
|
|
|
|
|
Acquisition-related
expenses
|
|
0.16
|
|
0.09
|
|
0.27
|
|
0.38
|
|
|
|
|
|
|
|
|
|
Refinancing
costs
|
|
0.23
|
|
1.55
|
|
0.22
|
|
1.55
|
|
|
|
|
|
|
|
|
|
Other, net
|
|
-
|
|
0.02
|
|
(0.01)
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$ 2.26
|
|
$ 2.02
|
|
$ 6.17
|
|
$ 5.55
|
|
|
|
|
|
|
|
|
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF NET CASH
|
|
|
PROVIDED BY
OPERATING ACTIVITIES TO EBITDA, EBITDA AS DEFINED
|
|
|
FOR THE
THIRTY-NINE WEEK PERIODS ENDED
|
|
|
JUNE 27, 2015 AND
JUNE 28, 2014
|
|
Table
4
|
(Amounts in
thousands)
|
|
|
(Unaudited)
|
|
|
|
|
|
Thirty-Nine Week
Periods Ended
|
|
|
June 27,
2015
|
|
June 28,
2014
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$ 373,427
|
|
$ 349,529
|
Adjustments:
|
|
|
|
|
Changes in assets and
liabilities, net of effects from acquisitions of
businesses
|
|
6,766
|
|
34,092
|
Net gain on sale of
real estate
|
|
-
|
|
804
|
Interest expense -
net (1)
|
|
293,634
|
|
240,857
|
Income tax provision
- current
|
|
127,720
|
|
96,727
|
Non-cash equity
compensation (2)
|
|
(23,435)
|
|
(18,849)
|
Excess tax benefit
from exercise of stock options
|
|
50,580
|
|
40,481
|
Refinancing costs
(4)
|
|
(18,159)
|
|
(131,490)
|
|
|
|
|
|
EBITDA
|
|
810,533
|
|
612,151
|
Adjustments:
|
|
|
|
|
Acquisition-related
expenses(3)
|
|
19,288
|
|
18,297
|
Non-cash stock
compensation expense (2)
|
|
23,435
|
|
18,849
|
Refinancing
costs(4)
|
|
18,159
|
|
131,490
|
Other, net
|
|
(763)
|
|
1,322
|
EBITDA As
Defined
|
|
$ 870,652
|
|
$ 782,109
|
|
|
|
|
|
(1)Represents interest expense excluding
the amortization of debt issue costs and premium and discount on
debt.
|
(2)Represents the compensation expense
recognized by TD Group under our stock incentive 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.
|
(4)For the
period ended June 27, 2015, represents debt issuance costs expensed
in conjunction with the refinancing of our 2013 term loans in May
2015. For the period ended June 28, 2014, represents debt issuance
costs expensed and the premium paid to redeem our 2018 Notes in
June 2014.
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
|
SUPPLEMENTAL
INFORMATION - BALANCE SHEET DATA
|
|
|
(Amounts in
thousands)
|
|
|
|
Table
5
|
(Unaudited)
|
|
|
|
|
|
|
June 27,
2015
|
|
September 30,
2014
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$ 915,350
|
|
$ 819,548
|
Trade accounts
receivable - net
|
|
419,955
|
|
351,307
|
Inventories -
net
|
|
574,186
|
|
459,074
|
|
|
|
|
|
Current portion of
long-term debt
|
|
44,195
|
|
39,295
|
Short-term
borrowings-trade receivable securitization facility
|
|
200,000
|
|
200,000
|
Accounts
payable
|
|
129,050
|
|
115,741
|
Accrued current
liabilities
|
|
306,444
|
|
230,871
|
|
|
|
|
|
Long-term
debt
|
|
8,204,862
|
|
7,233,836
|
|
|
|
|
|
Total stockholders'
deficit
|
|
(1,169,025)
|
|
(1,556,099)
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/transdigm-group-reports-fiscal-2015-third-quarter-results-300122691.html
SOURCE TransDigm Group Incorporated