CLEVELAND, Nov. 12, 2015 /PRNewswire/ -- TransDigm Group
Incorporated (NYSE: TDG), a leading global designer, producer and
supplier of highly engineered aircraft components, today reported
results for the fourth quarter and fiscal year ended
September 30, 2015.
Highlights for the fourth quarter and fiscal year include:
- Fourth quarter net sales of $809.8
million, up 26.1% from $642.2
million;
- Fourth quarter EBITDA As Defined of $363.0 million, up 24.7% from $291.1 million;
- Fourth quarter adjusted earnings per share of $2.83, up 28.1% from $2.21;
- Fiscal 2015 net sales of $2,707.1 million, up 14.1% from $2,372.9 million;
- Fiscal 2015 EBITDA As Defined of $1,233.7 million, up 15.0% from
$1,073.2 million;
- Fiscal 2015 net income of $447.2
million, up 45.7% from $306.9
million;
- Fiscal 2015 earnings per share of $7.84, up 148.1% from $3.16; and
- Fiscal 2015 adjusted earnings per share of $9.01, up 16.1% from $7.76.
Net sales for the quarter rose 26.1%, or $167.6 million, to $809.8
million from $642.2 million in
the comparable quarter a year ago. The acquisitions of the Telair
Cargo Group ("Telair"), the aerospace business of Franke Aquarotter
GmbH ("Franke"), the assets of the aerospace business of Pexco LLC
("Pexco") and PneuDraulics, Inc. contributed approximately
$139.1 million of the increase in net
sales. Organic net sales growth accounted for the balance of the
sales increase.
Net income for the quarter rose 24.0% to $141.7 million, or $2.50 per share, compared to $114.3 million, or $1.91 per share, in the comparable quarter a year
ago. The increase in net income reflects the growth in net sales
described above partially offset by higher interest expense and
higher acquisition-related costs. Interest expense was higher
as a result of an increase of approximately $950 million in outstanding borrowings
primarily to fund the acquisitions of Pexco and Franke in
May 2015. The current quarter
included acquisition-related costs of $12.7
million net of tax, or $0.23
per share. The comparable quarter a year ago reflected
acquisition-related costs of $4.4
million, net of tax, or $0.08
per share.
Earnings per share were reduced in the prior period by
$0.11 per share representing dividend
equivalent payments during the quarter.
Adjusted net income for the quarter rose 27.8% to $160.3 million, or $2.83 per share, from $125.4 million, or $2.21 per share, in the comparable quarter a year
ago.
EBITDA for the quarter increased 20.8% to $338.7 million from $280.4
million for the comparable quarter a year ago. EBITDA
As Defined for the period increased 24.7% to $363.0 million compared with $291.1 million in the quarter a year ago.
EBITDA As Defined as a percentage of net sales for the quarter was
44.8%.
As previously reported, on August 19,
2015, TransDigm acquired 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.
Full Fiscal Year Results
Fiscal 2015 net sales rose 14.1% to $2,707.1 million from $2,372.9 million in the comparable period last
year. Organic net sales growth was in the low single-digit
percentage range. The favorable contribution from the acquisitions
of Airborne, Elektro-Metall, Telair, Franke, Pexco and
PneuDraulics, Inc. accounted for the balance of the increase in net
sales.
Fiscal 2015 net income increased 45.7% to $447.2 million, or $7.84 per share, compared with $306.9 million, or $3.16 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 $2.22 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 partially offset by higher interest expense. Interest
expense was higher as a result of an increase in the weighted
average level of outstanding borrowings to approximately
$7.8 billion from $6.3 billion in the comparable period last year.
The current year included refinancing costs of $12.9 million, net of tax, or $0.23 per share. The prior year also included
refinancing costs of $90.0 million,
net of tax, or $1.58 per share.
Fiscal 2015 adjusted net income rose 15.2% to $509.8 million, or $9.01 per share, from $442.4 million, or $7.76 per share, in the comparable period a year
ago.
Fiscal 2015 EBITDA increased 28.8% to $1,149.3 million from $892.6 million for the comparable period a year
ago. EBITDA As Defined for the period increased 15.0% to
$1,233.7 million compared with
$1,073.2 million in the comparable
period a year ago. EBITDA As Defined as a percentage of net
sales for the period was 45.6%.
"Fiscal 2015 was another good year for TransDigm," stated
W. Nicholas Howley, TransDigm
Group's Chairman and Chief Executive Officer. "We are pleased
with our full year operating results. In total, our
revenues for the core businesses we owned at the beginning of
fiscal 2015 were roughly in alignment with our original
expectations despite softness in the commercial aftermarket.
The commercial OEM market met our original expectations and the
military markets were better than we expected at the start of the
year. The margins on our core businesses again improved year over
year."
Mr. Howley continued, "In fiscal 2015 we saw an increase in
M&A opportunities. This resulted in the acquisition of four
good proprietary aerospace businesses for approximately
$1.6 billion in purchase price. These
businesses all met our stringent strategic and value creation
requirements. Additionally, we raised about $2 billion of new debt with half of the proceeds
being used to fund the acquisitions and the balance to extend
maturities and lower interest rates. These activities are a good
example of our continued focus on capital allocation and intrinsic
value creation for our shareholders."
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 2016 Outlook
Assuming no acquisition activity and based upon current market
conditions, the Company expects fiscal 2016 financial performance
to be as follows:
- Net sales are anticipated to be in the range of $3,070 million to $3,120 million compared with
$2,707 million in fiscal 2015;
- EBITDA As Defined is anticipated to be in the range of
$1,405 million to $1,425 million
compared with $1,234 million in
fiscal 2015;
- Net income is anticipated to be in the range of $526 million to $540 million compared with
$447 million in fiscal 2015;
- Earnings per share are expected to be in the range of
$9.20 to $9.44 per share based upon
weighted average shares outstanding of 56.8 million compared
with $7.84 per share in fiscal 2015;
and
- Adjusted earnings per share are expected to be in the range of
$10.33 to $10.57 per share compared
with $9.01 per share in fiscal
2015.
Mr. Howley stated, "We are a bit cautious as we head into fiscal
2016. We are assuming revenue growth in our major markets to be
moderate, with our commercial OEM revenues up in the mid
single-digit percentage range, commercial aftermarket revenues up
in the mid to high single-digit percentage range, and defense
revenues up low single-digits. Assuming no additional acquisitions,
we are still expecting a good year with substantial intrinsic value
generation for our shareholders."
Earnings Conference Call
TransDigm Group will host a conference call for investors and
security analysts on November 12,
2015, beginning at 11:00 a.m.,
Eastern Time. To join the call, dial (866) 515-2914 and
enter the pass code 94369466. International callers should
dial (617) 399-5128 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 28978208.
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, 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.
Forward-Looking Statements
Statements in this press release that are not historical facts,
including statements under the heading "Fiscal 2016 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; cyber-security threats and
natural disasters; 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;
increases in costs that cannot be recovered in product pricing;
risks associated with our international sales and operations; 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
WEEK PERIODS AND FISCAL YEARS ENDED
|
|
Table
1
|
SEPTEMBER 30, 2015
AND SEPTEMBER 30, 2014
|
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Thirteen Week
Periods Ended
|
|
Fiscal Year
Ended
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
NET SALES
|
|
$
|
809,792
|
|
|
$
|
642,241
|
|
|
$
|
2,707,115
|
|
|
$
|
2,372,906
|
|
COST OF
SALES
|
|
382,192
|
|
|
293,613
|
|
|
1,257,270
|
|
|
1,105,032
|
|
GROSS
PROFIT
|
|
427,600
|
|
|
348,628
|
|
|
1,449,845
|
|
|
1,267,874
|
|
SELLING AND
ADMINISTRATIVE EXPENSES
|
|
98,270
|
|
|
76,685
|
|
|
321,624
|
|
|
276,446
|
|
AMORTIZATION OF
INTANGIBLE ASSETS
|
|
16,253
|
|
|
13,223
|
|
|
54,219
|
|
|
63,608
|
|
INCOME FROM
OPERATIONS
|
|
313,077
|
|
|
258,720
|
|
|
1,074,002
|
|
|
927,820
|
|
INTEREST EXPENSE -
NET
|
|
113,162
|
|
|
96,933
|
|
|
418,785
|
|
|
347,688
|
|
REFINANCING
COSTS
|
|
234
|
|
|
132
|
|
|
18,393
|
|
|
131,622
|
|
INCOME BEFORE INCOME
TAXES
|
|
199,681
|
|
|
161,655
|
|
|
636,824
|
|
|
448,510
|
|
INCOME TAX
PROVISION
|
|
58,008
|
|
|
47,400
|
|
|
189,612
|
|
|
141,600
|
|
NET INCOME
|
|
$
|
141,673
|
|
|
$
|
114,255
|
|
|
$
|
447,212
|
|
|
$
|
306,910
|
|
NET INCOME APPLICABLE
TO COMMON STOCK
|
|
$
|
141,673
|
|
|
$
|
108,157
|
|
|
$
|
443,847
|
|
|
$
|
180,284
|
|
Net earnings per
share:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
2.50
|
|
|
$
|
1.91
|
|
|
$
|
7.84
|
|
|
$
|
3.16
|
|
Cash dividends
paid per common share
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
25.00
|
|
Weighted-average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
56,610
|
|
|
56,731
|
|
|
56,606
|
|
|
56,993
|
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
|
|
|
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF EBITDA,
|
|
|
EBITDA AS DEFINED
TO NET INCOME
|
|
|
|
|
FOR THE THIRTEEN
WEEK PERIODS AND FISCAL YEARS ENDED
|
|
Table
2
|
SEPTEMBER 30, 2015
AND SEPTEMBER 30, 2014
|
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Thirteen Week
Periods Ended
|
|
Fiscal Year
Ended
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net income
|
|
$
|
141,673
|
|
|
$
|
114,255
|
|
|
$
|
447,212
|
|
|
$
|
306,910
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
25,896
|
|
|
21,844
|
|
|
93,663
|
|
|
96,385
|
|
Interest expense -
net
|
|
113,162
|
|
|
96,933
|
|
|
418,785
|
|
|
347,688
|
|
Income tax
provision
|
|
58,008
|
|
|
47,400
|
|
|
189,612
|
|
|
141,600
|
|
EBITDA
|
|
338,739
|
|
|
280,432
|
|
|
1,149,272
|
|
|
892,583
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Acquisition-related
expenses and adjustments (1)
|
|
15,940
|
|
|
3,048
|
|
|
36,623
|
|
|
21,345
|
|
Non-cash stock
compensation expense (2)
|
|
8,065
|
|
|
7,483
|
|
|
31,500
|
|
|
26,332
|
|
Refinancing costs
(3)
|
|
234
|
|
|
132
|
|
|
18,393
|
|
|
131,622
|
|
Other, net
|
|
24
|
|
|
3
|
|
|
(2,134)
|
|
|
1,325
|
|
Gross Adjustments to
EBITDA
|
|
24,263
|
|
|
10,666
|
|
|
84,382
|
|
|
180,624
|
|
EBITDA As
Defined
|
|
$
|
363,002
|
|
|
$
|
291,098
|
|
|
$
|
1,233,654
|
|
|
$
|
1,073,207
|
|
EBITDA As Defined,
Margin (4)
|
|
44.8
|
%
|
|
45.3
|
%
|
|
45.6
|
%
|
|
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 September 30, 2015, represents debt issuance
costs expensed in conjunction with the refinancing of our 2013 term
loans in May 2015. For the periods ended September 30, 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
WEEK PERIODS AND FISCAL YEARS ENDED
|
|
Table
3
|
SEPTEMBER 30, 2015
AND SEPTEMBER 30, 2014
|
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Thirteen Week
Periods Ended
|
|
Fiscal Year
Ended
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Reported Earnings
Per Share
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
141,673
|
|
|
$
|
114,255
|
|
|
$
|
447,212
|
|
|
$
|
306,910
|
|
Less: dividends on
participating securities
|
|
—
|
|
|
(6,098)
|
|
|
(3,365)
|
|
|
(126,626)
|
|
Net income applicable
to common stock - basic and diluted
|
|
$
|
141,673
|
|
|
$
|
108,157
|
|
|
$
|
443,847
|
|
|
$
|
180,284
|
|
Weighted-average
shares outstanding under the two-class method
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding
|
|
53,609
|
|
|
52,579
|
|
|
53,112
|
|
|
52,748
|
|
Vested options deemed
participating securities
|
|
3,001
|
|
|
4,152
|
|
|
3,494
|
|
|
4,245
|
|
Total shares for
basic and diluted earnings per share
|
|
56,610
|
|
|
56,731
|
|
|
56,606
|
|
|
56,993
|
|
Basic and diluted
earnings per share
|
|
$
|
2.50
|
|
|
$
|
1.91
|
|
|
$
|
7.84
|
|
|
$
|
3.16
|
|
Adjusted Earnings
Per Share
|
|
|
|
|
Net income
|
|
$
|
141,673
|
|
|
$
|
114,255
|
|
|
$
|
447,212
|
|
|
$
|
306,910
|
|
Gross adjustments to
EBITDA
|
|
24,263
|
|
|
10,666
|
|
|
84,382
|
|
|
180,624
|
|
Purchase accounting
backlog amortization
|
|
1,903
|
|
|
2,122
|
|
|
4,704
|
|
|
17,390
|
|
Tax
adjustment
|
|
(7,583)
|
|
|
(1,689)
|
|
|
(26,525)
|
|
|
(62,515)
|
|
Adjusted net
income
|
|
$
|
160,256
|
|
|
$
|
125,354
|
|
|
$
|
509,773
|
|
|
$
|
442,409
|
|
Adjusted diluted
earnings per share under the two-class method
|
|
$
|
2.83
|
|
|
$
|
2.21
|
|
|
$
|
9.01
|
|
|
$
|
7.76
|
|
Diluted Earnings
Per Share to Adjusted Earnings Per Share
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
2.50
|
|
|
$
|
1.91
|
|
|
$
|
7.84
|
|
|
$
|
3.16
|
|
Adjustments to
diluted earnings per share:
|
|
|
|
|
|
|
|
|
Inclusion of the dividend equivalent payments
|
|
—
|
|
|
0.11
|
|
|
0.06
|
|
|
2.22
|
|
Non-cash
stock compensation expense
|
|
0.10
|
|
|
0.11
|
|
|
0.39
|
|
|
0.32
|
|
Acquisition-related expenses
|
|
0.23
|
|
|
0.08
|
|
|
0.51
|
|
|
0.46
|
|
Refinancing costs
|
|
—
|
|
|
—
|
|
|
0.23
|
|
|
1.58
|
|
Other,
net
|
|
—
|
|
|
—
|
|
|
(0.02)
|
|
|
0.02
|
|
Adjusted earnings per
share
|
|
$
|
2.83
|
|
|
$
|
2.21
|
|
|
$
|
9.01
|
|
|
$
|
7.76
|
|
TRANSDIGM GROUP
INCORPORATED
|
|
|
|
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF NET CASH
|
|
Table
4
|
PROVIDED BY
OPERATING ACTIVITIES TO EBITDA,
|
|
EBITDA AS
DEFINED
|
|
FOR THE FISCAL
YEARS ENDED
|
|
SEPTEMBER 30, 2015
AND SEPTEMBER 30, 2014
|
|
|
|
(Amounts in
thousands)
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Fiscal Year
Ended
|
|
|
September 30,
2015
|
|
September 30,
2014
|
Net cash provided by
operating activities
|
|
$
|
520,938
|
|
|
$
|
541,222
|
|
Adjustments:
|
|
|
|
|
Changes in assets and
liabilities, net of effects from acquisitions of
businesses
|
|
24,322
|
|
|
(27,967)
|
|
Net gain on sale of
real estate
|
|
—
|
|
|
804
|
|
Interest expense -
net (1)
|
|
402,988
|
|
|
333,753
|
|
Income tax provision
- current
|
|
188,952
|
|
|
151,016
|
|
Non-cash equity
compensation (2)
|
|
(31,500)
|
|
|
(26,332)
|
|
Excess tax benefit
from exercise of stock options
|
|
61,965
|
|
|
51,709
|
|
Refinancing costs
(4)
|
|
(18,393)
|
|
|
(131,622)
|
|
EBITDA
|
|
1,149,272
|
|
|
892,583
|
|
Adjustments:
|
|
|
|
|
Acquisition-related
expenses (3)
|
|
36,623
|
|
|
21,345
|
|
Non-cash stock
compensation expense (2)
|
|
31,500
|
|
|
26,332
|
|
Refinancing costs
(4)
|
|
18,393
|
|
|
131,622
|
|
Other, net
|
|
(2,134)
|
|
|
1,325
|
|
EBITDA As
Defined
|
|
$
|
1,233,654
|
|
|
$
|
1,073,207
|
|
(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 September 30, 2015, represents debt issuance costs
expensed in conjunction with the refinancing of our 2013 term loans
in May 2015. For the period ended September 30, 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
|
|
Table
5
|
(Amounts in
thousands)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
September 30,
2015
|
|
September 30,
2014
|
Cash and cash
equivalents
|
|
714,033
|
|
|
819,548
|
|
Trade accounts
receivable - net
|
|
444,072
|
|
|
351,307
|
|
Inventories -
net
|
|
591,401
|
|
|
459,074
|
|
Current portion of
long-term debt
|
|
43,840
|
|
|
39,295
|
|
Short-term
borrowings-trade receivable securitization facility
|
|
200,000
|
|
|
200,000
|
|
Accounts
payable
|
|
142,822
|
|
|
115,741
|
|
Accrued current
liabilities
|
|
271,553
|
|
|
230,871
|
|
Long-term
debt
|
|
8,183,502
|
|
|
7,233,836
|
|
Total stockholders'
deficit
|
|
(1,038,306)
|
|
|
(1,556,099)
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/transdigm-group-reports-fiscal-2015-fourth-quarter-and-year-end-results-300177340.html
SOURCE TransDigm Group Incorporated