BERWYN, Pa., May 28, 2020 /PRNewswire/ -- Triumph Group,
Inc. (NYSE: TGI) ("Triumph" or the "Company")
today reported financial results for its fourth quarter and full
fiscal year 2020, which ended March 31,
2020.
Fourth Quarter Fiscal 2020
- Net sales of $693.1 million
- Operating loss of $40.3 million
with operating margin of (5.8%); adjusted operating income of
$39.4 million with adjusted operating
margin of 5.7%
- Net loss of $75.1 million, or
($1.45) per share; adjusted net
income of $36.0 million, or
$0.69 per diluted share
- Cash flow provided by operations of $57.4 million, and free cash flow of $44.8 million
Full-Year Fiscal 2020
- Net sales of $2.9 billion
- Operating income of $57.9 million
with an operating margin of 2.0%; adjusted operating income of
$204.1 million with adjusted
operating margin of 7.0%
- Loss per share of $0.56; adjusted
earnings per diluted share of $2.71
- Cash provided by operations of $96.7
million, and free cash flow of $56.8
million
"The fourth quarter of fiscal 2020 completed a strong year for
Triumph Group, and we delivered on our commitment to generate
positive free cash flow," stated Daniel J.
Crowley, Triumph's president and chief executive officer.
"Military deliveries helped offset the impacts of the 737 MAX
production slow down and effects of the COVID-19 crisis during the
quarter. Organic revenue decreased by 6% due to expected declines
in Aerospace Structures, and to a lesser extent Systems &
Support. Systems & Support margins, excluding impairments
and restructuring, were in line with the prior year, benefitting
from improved operational efficiencies and cost reduction
initiatives. Importantly, we made strong progress executing
our plan to exit legacy programs in Aerospace Structures, a key
initiative that will benefit Triumph in fiscal 2021 and
beyond."
Mr. Crowley continued, "Triumph improved profitability and cash
flow year-over-year and entered the commercial downturn with
momentum as a more predictable business as a result of the actions
we've taken to de-risk our portfolio and backlog and stabilize our
cash flows. Beyond these proactive steps, we recently amended
our credit facility and implemented cost containment actions by
managing our workforce and supply chain to enhance our liquidity
position and ensure financial flexibility in the current operating
environment while supporting the demands of customers."
Mr. Crowley concluded, "Triumph is focused on protecting the
health and safety of our people, conserving our cash and partnering
with our customers to ensure we are well-positioned for recovery
for the benefit of all our stakeholders."
Fourth Quarter Fiscal Year 2020 Overview
After accounting for the impact of the divestitures, sales for
the fourth quarter of fiscal 2020 were down 6% organically from the
comparable prior year period. The decline was driven by
impacts of the production slow down on 737 MAX and effects of
COVID-19.
Fourth quarter operating loss of $40.3
million included a $66.1
million goodwill impairment charge of the legacy Product
Support reporting unit due to the effects of the COVID-19 crisis on
the overall aviation market; $1.7
million for loss on sale of assets and businesses, and
$11.9 million of restructuring costs
associated with lease terminations and reductions in force.
Net loss for the fourth quarter of fiscal year 2020 was
$75.1 million, or ($1.45) per share. On an adjusted basis,
net income was $36.0 million, or
$0.69 per diluted share.
Triumph's results included the following:
($
millions except EPS)
|
|
Pre-tax
|
|
|
After-tax
|
|
|
Diluted
EPS
|
|
Loss from
Continuing Operations - GAAP
|
|
$
|
(81.7)
|
|
|
$
|
(75.1)
|
|
|
$
|
(1.45)
|
|
Loss on sale of
assets and businesses, net
|
|
|
1.7
|
|
|
|
1.7
|
|
|
|
0.03
|
|
Settlements,
curtailments & special termination, net
|
|
|
28.7
|
|
|
|
28.7
|
|
|
|
0.55
|
|
Goodwill
impairment
|
|
|
66.1
|
|
|
|
66.1
|
|
|
|
1.27
|
|
Transformation
related costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs
(cash)
|
|
|
11.9
|
|
|
|
11.9
|
|
|
|
0.23
|
|
CARES Act tax
adjustment
|
|
|
—
|
|
|
|
2.7
|
|
|
|
0.05
|
|
Adjusted Income
from Continuing Operations - non-GAAP *
|
|
$
|
26.6
|
|
|
$
|
36.0
|
|
|
$
|
0.69
|
|
* Differences due to
rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
The number of shares used in computing diluted earnings per
share for the fourth quarter of 2020 was 52.0 million.
Backlog, which represents the next 24 months of actual purchase
orders with firm delivery dates or contract requirements, was
$3.2 billion, down compared to the
prior year period and on a sequential basis due to sunsetting
programs and recent production rate reductions, but partially
offset by military program increases in Systems &
Support.
For the fiscal year ended March 31,
2020, cash flow provided by operations was $96.7 million, reflecting continued investment in
sunsetting programs and liquidation of approximately $60.0 million in prior period advances against
current period deliveries.
Outlook
The Company is not providing financial guidance for its fiscal
year ending March 31, 2021 at this
time due to the uncertainty around the ultimate impact of COVID-19
on the global market and economic conditions.
Conference Call
Triumph will hold a conference call today, May 28th, at 8:30 a.m. (ET) to discuss the fourth quarter and
full fiscal year 2020 results. The conference call will be
available live and archived on the Company's website
at http://www.triumphgroup.com. A slide presentation
will be included with the audio portion of the webcast, and
the presentation has been posted on the Company's website
at http://ir.triumphgroup.com/QuarterlyResults. An audio
replay will be available from May 28th to
June 4th by calling (855) 859-2056 (Domestic) or (404)
537-3406 (International), passcode #5396837.
About Triumph
Triumph Group, Inc., headquartered in Berwyn, Pennsylvania, designs, engineers,
manufactures, repairs and overhauls a broad portfolio of aerospace
and defense systems, components and structures. The company serves
the global aviation industry, including original equipment
manufacturers and the full spectrum of military and commercial
aircraft operators.
More information about Triumph can be found on the Company's
website at www.triumphgroup.com.
Forward Looking Statements
Statements in this release which are not historical facts are
forward-looking statements under the provisions of the Private
Securities Litigation Reform Act of 1995, including statements of
expectations of or assumptions about financial and operational
performance, revenues, earnings per share, cash flow or use, cost
savings and operational efficiencies and organizational
restructurings. All forward-looking statements involve risks
and uncertainties which could affect the Company's actual results
and could cause its actual results to differ materially from those
expressed in any forward-looking statements made by, or on behalf
of, the Company. Further information regarding the important
factors that could cause actual results to differ from projected
results can be found in Triumph Group's reports filed with the SEC,
including our Annual Report on Form 10-K for the fiscal year ended
March 31, 2019.
Widespread health developments, including the recent global
coronavirus (COVID-19), and the responses thereto (such as
voluntary and in some cases, mandatory quarantines as well as shut
downs and other restrictions on travel and commercial, social and
other activities) could adversely and materially affect, among
other things, the economic and financial markets and labor
resources of the countries in which we operate, our manufacturing
and supply chain operations, commercial operations and sales force,
administrative personnel, third-party service providers, business
partners and customers and the demand for our products, which could
result in a material adverse effect on our business, financial
conditions and results of operations.
FINANCIAL DATA
(UNAUDITED)
TRIUMPH
GROUP, INC. AND SUBSIDIARIES
(in thousands,
except per share data)
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
March
31,
|
|
|
March
31,
|
|
CONDENSED
STATEMENTS OF OPERATIONS
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Net sales
|
|
$
|
693,110
|
|
|
$
|
869,027
|
|
|
$
|
2,900,117
|
|
|
$
|
3,364,930
|
|
Cost of sales
(excluding depreciation shown below)
|
|
|
556,642
|
|
|
|
716,958
|
|
|
|
2,307,393
|
|
|
|
2,924,920
|
|
Selling, general
& administrative
|
|
|
63,017
|
|
|
|
75,354
|
|
|
|
257,529
|
|
|
|
298,386
|
|
Depreciation &
amortization
|
|
|
34,056
|
|
|
|
35,556
|
|
|
|
138,168
|
|
|
|
149,904
|
|
Goodwill
impairment
|
|
|
66,121
|
|
|
|
—
|
|
|
|
66,121
|
|
|
|
—
|
|
Restructuring
costs
|
|
|
11,850
|
|
|
|
12,892
|
|
|
|
25,340
|
|
|
|
31,098
|
|
Legal judgment gain,
net of expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
(9,257)
|
|
|
|
—
|
|
Loss on sale of
assets and businesses, net
|
|
|
1,726
|
|
|
|
217,464
|
|
|
|
56,916
|
|
|
|
235,301
|
|
Operating (loss)
income
|
|
|
(40,302)
|
|
|
|
(189,197)
|
|
|
|
57,907
|
|
|
|
(274,679)
|
|
Interest expense and
other, net
|
|
|
26,060
|
|
|
|
31,104
|
|
|
|
122,129
|
|
|
|
114,619
|
|
Non-service defined
benefit expense (income)
|
|
|
15,386
|
|
|
|
(12,524)
|
|
|
|
(41,894)
|
|
|
|
(62,105)
|
|
Income tax (benefit)
expense
|
|
|
(6,679)
|
|
|
|
(8,165)
|
|
|
|
5,798
|
|
|
|
(5,426)
|
|
Net loss
|
|
$
|
(75,069)
|
|
|
$
|
(199,612)
|
|
|
$
|
(28,126)
|
|
|
$
|
(321,767)
|
|
Earnings per share -
basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(1.45)
|
|
|
$
|
(4.01)
|
|
|
$
|
(0.56)
|
|
|
$
|
(6.47)
|
|
Weighted average
common shares outstanding - basic
|
|
|
51,780
|
|
|
|
49,774
|
|
|
|
50,494
|
|
|
|
49,698
|
|
Earnings per share -
diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(1.45)
|
|
|
$
|
(4.01)
|
|
|
$
|
(0.56)
|
|
|
$
|
(6.47)
|
|
Weighted average
common shares outstanding - diluted
|
|
|
51,780
|
|
|
|
49,774
|
|
|
|
50,494
|
|
|
|
49,698
|
|
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 share data)
|
|
BALANCE
SHEETS
|
|
Unaudited
March
31,
2020
|
|
|
Audited
March
31,
2019
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
485,463
|
|
|
$
|
92,807
|
|
Accounts receivable,
net
|
|
|
359,487
|
|
|
|
373,590
|
|
Contract
assets
|
|
|
244,417
|
|
|
|
326,667
|
|
Inventory,
net
|
|
|
452,976
|
|
|
|
413,560
|
|
Prepaid and other
current assets
|
|
|
19,289
|
|
|
|
34,446
|
|
Current
assets
|
|
|
1,561,632
|
|
|
|
1,241,070
|
|
Property and
equipment, net
|
|
|
418,141
|
|
|
|
543,710
|
|
Goodwill
|
|
|
513,527
|
|
|
|
583,225
|
|
Intangible assets,
net
|
|
|
381,968
|
|
|
|
430,954
|
|
Other, net
|
|
|
105,065
|
|
|
|
55,615
|
|
Total
assets
|
|
$
|
2,980,333
|
|
|
$
|
2,854,574
|
|
Liabilities &
Stockholders' Deficit
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
|
7,336
|
|
|
$
|
8,201
|
|
Accounts
payable
|
|
|
457,694
|
|
|
|
433,783
|
|
Contract
liabilities
|
|
|
295,320
|
|
|
|
293,719
|
|
Accrued
expenses
|
|
|
227,403
|
|
|
|
239,572
|
|
Current
liabilities
|
|
|
987,753
|
|
|
|
975,275
|
|
Long-term debt, less
current portion
|
|
|
1,800,171
|
|
|
|
1,480,620
|
|
Accrued pension and
post-retirement benefits, noncurrent
|
|
|
660,065
|
|
|
|
540,479
|
|
Deferred income
taxes, noncurrent
|
|
|
7,439
|
|
|
|
6,964
|
|
Other noncurrent
liabilities
|
|
|
306,169
|
|
|
|
424,549
|
|
Stockholders'
Deficit:
|
|
|
|
|
|
|
|
|
Common stock, $.001
par value, 100,000,000 shares authorized, 52,460,920
and
52,460,920 shares issued
|
|
|
52
|
|
|
|
52
|
|
Capital in excess of
par value
|
|
|
804,830
|
|
|
|
867,545
|
|
Treasury stock, at
cost, 631,146 and 2,573,652 shares
|
|
|
(36,217)
|
|
|
|
(159,154)
|
|
Accumulated other
comprehensive loss
|
|
|
(719,428)
|
|
|
|
(487,684)
|
|
Accumulated
deficit
|
|
|
(830,501)
|
|
|
|
(794,072)
|
|
Total stockholders'
deficit
|
|
|
(781,264)
|
|
|
|
(573,313)
|
|
Total liabilities and
stockholders' deficit
|
|
$
|
2,980,333
|
|
|
$
|
2,854,574
|
|
FINANCIAL DATA
(UNAUDITED)
TRIUMPH
GROUP, INC. AND SUBSIDIARIES
(dollars in
thousands, except share data)
|
|
|
|
Year ended March
31,
|
|
CASH
FLOWS
|
|
2020
|
|
|
2019
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(28,126)
|
|
|
$
|
(321,767)
|
|
Adjustments to
reconcile net loss to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation &
amortization
|
|
|
138,168
|
|
|
|
149,904
|
|
Goodwill
impairment
|
|
|
66,121
|
|
|
|
—
|
|
Amortization of
acquired contract liabilities
|
|
|
(75,286)
|
|
|
|
(67,314)
|
|
Loss on sale of assets
& businesses, net
|
|
|
56,916
|
|
|
|
235,301
|
|
Curtailment and
special termination benefit gain, net
|
|
|
14,293
|
|
|
|
4,032
|
|
Other amortization
included in interest expense
|
|
|
11,157
|
|
|
|
8,770
|
|
Provision for doubtful
accounts receivable
|
|
|
1,554
|
|
|
|
(495)
|
|
Provision for deferred
income taxes
|
|
|
2,823
|
|
|
|
(7,939)
|
|
Employee stock-based
compensation
|
|
|
11,062
|
|
|
|
10,259
|
|
Changes in assets and
liabilities, excluding the effects of
acquisitions/divestitures:
|
|
|
|
|
|
|
|
|
Trade and other
receivables
|
|
|
5,001
|
|
|
|
(89,728)
|
|
Contract
assets
|
|
|
50,440
|
|
|
|
65,191
|
|
Inventories
|
|
|
(48,802)
|
|
|
|
(15,930)
|
|
Prepaid expenses and
other current assets
|
|
|
16,376
|
|
|
|
(3,144)
|
|
Accounts payable,
accrued expenses and contract liabilities
|
|
|
(61,338)
|
|
|
|
(71,767)
|
|
Accrued pension and
other postretirement benefits
|
|
|
(67,826)
|
|
|
|
(79,911)
|
|
Other
|
|
|
4,133
|
|
|
|
10,118
|
|
Net cash provided by
(used in) operating activities
|
|
|
96,666
|
|
|
|
(174,420)
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(39,834)
|
|
|
|
(47,099)
|
|
Proceeds from sale of
assets
|
|
|
47,229
|
|
|
|
247,647
|
|
Net cash provided by
(used in) investing activities
|
|
|
7,395
|
|
|
|
200,548
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
Net increase in
revolving credit facility
|
|
|
185,000
|
|
|
|
102,113
|
|
Proceeds from
issuance of long-term debt and finance leases
|
|
|
585,580
|
|
|
|
54,600
|
|
Repayment of debt and
finance lease obligations
|
|
|
(449,650)
|
|
|
|
(113,425)
|
|
Payment of deferred
financing costs
|
|
|
(17,718)
|
|
|
|
(1,982)
|
|
Dividends
paid
|
|
|
(8,078)
|
|
|
|
(7,971)
|
|
Repurchase of
restricted shares for minimum tax obligation
|
|
|
(1,442)
|
|
|
|
(860)
|
|
Net cash provided by
financing activities
|
|
|
293,692
|
|
|
|
32,475
|
|
Effect of exchange
rate changes on cash
|
|
|
(5,097)
|
|
|
|
(1,615)
|
|
Net change in
cash
|
|
|
392,656
|
|
|
|
56,988
|
|
Cash and equivalents
at beginning of period
|
|
|
92,807
|
|
|
|
35,819
|
|
Cash and equivalents
at end of period
|
|
$
|
485,463
|
|
|
$
|
92,807
|
|
FINANCIAL DATA
(UNAUDITED)
TRIUMPH GROUP,
INC. AND SUBSIDIARIES
(dollars in
thousands)
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
March
31,
|
|
|
March
31,
|
|
SEGMENT
DATA
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems &
Support
|
|
$
|
352,066
|
|
|
$
|
362,204
|
|
|
$
|
1,357,564
|
|
|
$
|
1,325,017
|
|
Aerospace
Structures
|
|
|
345,158
|
|
|
|
511,314
|
|
|
|
1,555,887
|
|
|
|
2,062,404
|
|
Elimination of
inter-segment sales
|
|
|
(4,114)
|
|
|
|
(4,491)
|
|
|
|
(13,334)
|
|
|
|
(22,491)
|
|
|
|
$
|
693,110
|
|
|
$
|
869,027
|
|
|
$
|
2,900,117
|
|
|
$
|
3,364,930
|
|
Operating (loss)
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems &
Support
|
|
$
|
(22,478)
|
|
|
$
|
55,270
|
|
|
$
|
141,341
|
|
|
$
|
201,094
|
|
Aerospace
Structures
|
|
|
(2,066)
|
|
|
|
(264)
|
|
|
|
41,864
|
|
|
|
(152,407)
|
|
Corporate
|
|
|
(12,941)
|
|
|
|
(242,453)
|
|
|
|
(114,236)
|
|
|
|
(313,107)
|
|
Share-based
compensation expense
|
|
|
(2,817)
|
|
|
|
(1,750)
|
|
|
|
(11,062)
|
|
|
|
(10,259)
|
|
|
|
$
|
(40,302)
|
|
|
$
|
(189,197)
|
|
|
$
|
57,907
|
|
|
$
|
(274,679)
|
|
Operating margin
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems &
Support
|
|
|
(6.4)
|
%
|
|
|
15.3
|
%
|
|
|
10.4
|
%
|
|
|
15.2
|
%
|
Aerospace
Structures
|
|
|
(0.6)
|
%
|
|
|
(0.1)
|
%
|
|
|
2.7
|
%
|
|
|
(7.4)
|
%
|
Consolidated
|
|
|
(5.8)
|
%
|
|
|
(21.8)
|
%
|
|
|
2.0
|
%
|
|
|
(8.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization^:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems &
Support
|
|
$
|
74,184
|
|
|
$
|
8,113
|
|
|
$
|
98,497
|
|
|
$
|
35,373
|
|
Aerospace
Structures
|
|
|
25,153
|
|
|
|
26,543
|
|
|
|
102,418
|
|
|
|
111,431
|
|
Corporate
|
|
|
840
|
|
|
|
900
|
|
|
|
3,374
|
|
|
|
3,100
|
|
|
|
$
|
100,177
|
|
|
$
|
35,556
|
|
|
$
|
204,289
|
|
|
$
|
149,904
|
|
Amortization of
acquired contract liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems &
Support
|
|
$
|
(8,360)
|
|
|
$
|
(8,332)
|
|
|
$
|
(34,486)
|
|
|
$
|
(34,121)
|
|
Aerospace
Structures
|
|
|
(10,772)
|
|
|
|
(10,212)
|
|
|
|
(40,800)
|
|
|
|
(33,193)
|
|
|
|
$
|
(19,132)
|
|
|
$
|
(18,544)
|
|
|
$
|
(75,286)
|
|
|
$
|
(67,314)
|
|
Capital
expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems &
Support
|
|
$
|
4,786
|
|
|
$
|
4,475
|
|
|
$
|
17,141
|
|
|
$
|
15,734
|
|
Aerospace
Structures
|
|
|
7,276
|
|
|
|
7,645
|
|
|
|
21,191
|
|
|
|
30,581
|
|
Corporate
|
|
|
522
|
|
|
|
156
|
|
|
|
1,502
|
|
|
|
784
|
|
|
|
$
|
12,584
|
|
|
$
|
12,276
|
|
|
$
|
39,834
|
|
|
$
|
47,099
|
|
^ includes goodwill
impairment charge
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND
SUBSIDIARIES
(dollars in thousands)
Non-GAAP Financial Measure Disclosures
We prepare and publicly release quarterly unaudited financial
statements prepared in accordance with GAAP. In accordance with
Securities and Exchange Commission (the "SEC") guidance on
Compliance and Disclosure Interpretations, we also disclose and
discuss certain non-GAAP financial measures in our public releases.
Currently, the non-GAAP financial measure that we disclose is
Adjusted EBITDA and Adjusted EBITDAP, which is our net income
before interest, income taxes, amortization of acquired contract
liabilities, curtailments, settlements and special termination
benefits, legal settlements, depreciation and amortization and
Adjusted EBITDA, less pension & other postretirement benefits.
We disclose Adjusted EBITDA and Adjusted EBITDAP on a consolidated
and Adjusted EBITDAP an operating segment basis in our earnings
releases, investor conference calls and filings with the SEC. The
non-GAAP financial measures that we use may not be comparable to
similarly titled measures reported by other companies. Also, in the
future, we may disclose different non-GAAP financial measures in
order to help our investors more meaningfully evaluate and compare
our future results of operations to our previously reported results
of operations.
We view Adjusted EBITDA and Adjusted EBITDAP as operating
performance measure and as such we believe that the GAAP financial
measure most directly comparable to it is net income. In
calculating Adjusted EBITDA and Adjusted EBITDAP, we exclude from
net income the financial items that we believe should be separately
identified to provide additional analysis of the financial
components of the day-to-day operation of our business. We have
outlined below the type and scope of these exclusions and the
material limitations on the use of these non-GAAP financial
measures as a result of these exclusions. Adjusted EBITDA and
Adjusted EBITDAP are not measurements of financial performance
under GAAP and should not be considered as a measure of liquidity,
as an alternative to net income (loss), income from continuing
operations, or as an indicator of any other measure of performance
derived in accordance with GAAP. Investors and potential
investors in our securities should not rely on Adjusted EBITDA or
Adjusted EBITDAP as substitutes for any GAAP financial measure,
including net income (loss) or income from continuing operations.
In addition, we urge investors and potential investors in our
securities to carefully review the reconciliation of Adjusted
EBITDA and Adjusted EBITDAP to net income set forth below, in our
earnings releases and in other filings with the SEC and to
carefully review the GAAP financial information included as part of
our Quarterly Reports on Form 10-Q and our Annual Reports on Form
10-K that are filed with the SEC, as well as our quarterly earnings
releases, and compare the GAAP financial information with our
Adjusted EBITDA and Adjusted EBITDAP.
Adjusted EBITDA and Adjusted EBITDAP is used by management to
internally measure our operating and management performance and by
investors as a supplemental financial measure to evaluate the
performance of our business that, when viewed with our GAAP results
and the accompanying reconciliation, we believe provides additional
information that is useful to gain an understanding of the factors
and trends affecting our business. We have spent more than 20
years expanding our product and service capabilities partially
through acquisitions of complementary businesses. Due to the
expansion of our operations, which included acquisitions, our net
income has included significant charges for depreciation and
amortization. Adjusted EBITDA and Adjusted EBITDAP exclude
these charges and provide meaningful information about the
operating performance of our business, apart from charges for
depreciation and amortization. We believe the disclosure of
Adjusted EBITDA and Adjusted EBITDAP helps investors meaningfully
evaluate and compare our performance from quarter to quarter and
from year to year. We also believe Adjusted EBITDA and Adjusted
EBITDAP is a measure of our ongoing operating performance because
the isolation of non-cash income and expenses, such as amortization
of acquired contract liabilities, depreciation and amortization,
and non-operating items, such as interest and income taxes,
provides additional information about our cost structure, and, over
time, helps track our operating progress. In addition, investors,
securities analysts and others have regularly relied on Adjusted
EBITDA and Adjusted EBITDAP to provide a financial measure by which
to compare our operating performance against that of other
companies in our industry.
Set forth below are descriptions of the financial items that
have been excluded from our net income to calculate Adjusted EBITDA
and Adjusted EBITDAP and the material limitations associated with
using this non-GAAP financial measure as compared to net
income:
- Divestitures may be useful for investors to consider because
they reflect gains or losses from sale of operating units. We do
not believe these earnings necessarily reflect the current and
ongoing cash earnings related to our operations.
- Legal settlements may be useful to investors to consider
because they reflect gains or losses from disputes with third
parties. We do not believe that these earnings necessarily reflect
the current and ongoing cash earnings related to our
operations.
- Non-service defined benefit income (inclusive of the adoption
of ASU 2017-07 and certain pension related transactions such as
curtailments, settlements, early retirement or other incentives)
may be useful to investors to consider because they represent the
cost of post-retirement benefits to plan participants, net of the
assumption of returns on the plan's assets and are not indicative
of the cash paid for such benefits. We do not believe these
earnings (expenses) necessarily reflect the current and ongoing
cash earnings related to our operations.
- Amortization of acquired contract liabilities may be useful for
investors to consider because it represents the non-cash earnings
on the fair value of below market contracts acquired through
acquisitions. We do not believe these earnings necessarily reflect
the current and ongoing cash earnings related to our
operations.
- Amortization expenses (including goodwill and intangible asset
impairments) may be useful for investors to consider because it
represents the estimated attrition of our acquired customer base
and the diminishing value of product rights and licenses. We do not
believe these charges necessarily reflect the current and ongoing
cash charges related to our operating cost structure.
- Depreciation may be useful for investors to consider because
they generally represent the wear and tear on our property and
equipment used in our operations. We do not believe these charges
necessarily reflect the current and ongoing cash charges related to
our operating cost structure.
- The amount of interest expense and other we incur may be useful
for investors to consider and may result in current cash inflows or
outflows. However, we do not consider the amount of interest
expense and other to be a representative component of the
day-to-day operating performance of our business.
- Income tax expense may be useful for investors to consider
because it generally represents the taxes which may be payable for
the period and the change in deferred income taxes during the
period and may reduce the amount of funds otherwise available for
use in our business. However, we do not consider the amount of
income tax expense to be a representative component of the
day-to-day operating performance of our business.
Management compensates for the above-described limitations of
using non-GAAP measures by using a non-GAAP measure only to
supplement our GAAP results and to provide additional information
that is useful to gain an understanding of the factors and trends
affecting our business.
FINANCIAL DATA
(UNAUDITED)
TRIUMPH GROUP,
INC. AND SUBSIDIARIES
(dollars in
thousands)
|
|
The following table
shows our Adjusted EBITDA and Adjusted EBITDAP reconciled to our
net income for the indicated periods (in thousands):
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
March
31,
|
|
|
March
31,
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation,
Amortization, and
Pension (Adjusted EBITDAP):
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Net loss
|
|
$
|
(75,069)
|
|
|
$
|
(199,612)
|
|
|
$
|
(28,126)
|
|
|
$
|
(321,767)
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)
expense
|
|
|
(6,679)
|
|
|
|
(8,165)
|
|
|
|
5,798
|
|
|
|
(5,426)
|
|
Interest expense and
other, net
|
|
|
26,060
|
|
|
|
31,104
|
|
|
|
122,129
|
|
|
|
114,619
|
|
Settlements,
curtailments & special termination, net
|
|
|
28,666
|
|
|
|
4,165
|
|
|
|
14,293
|
|
|
|
4,165
|
|
Union
incentives
|
|
|
—
|
|
|
|
—
|
|
|
|
7,071
|
|
|
|
—
|
|
Loss on sales of
assets and businesses, net
|
|
|
1,726
|
|
|
|
217,464
|
|
|
|
56,916
|
|
|
|
235,301
|
|
Legal judgment gain,
net of expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
(9,257)
|
|
|
|
—
|
|
Adoption of ASU
2017-07
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
87,241
|
|
Amortization of
acquired contract liabilities
|
|
|
(19,132)
|
|
|
|
(18,544)
|
|
|
|
(75,286)
|
|
|
|
(67,314)
|
|
Depreciation and
amortization
|
|
|
100,177
|
|
|
|
35,556
|
|
|
|
204,289
|
|
|
|
149,904
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation
and
Amortization ("Adjusted EBITDA")
|
|
$
|
55,749
|
|
|
$
|
61,968
|
|
|
$
|
297,827
|
|
|
$
|
196,723
|
|
Non-service defined
benefit income (excluding settlements)
|
|
|
(13,280)
|
|
|
|
(16,689)
|
|
|
|
(56,187)
|
|
|
|
(66,270)
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation
and
Amortization, and Pension ("Adjusted EBITDAP")
|
|
$
|
42,469
|
|
|
$
|
45,279
|
|
|
$
|
241,640
|
|
|
$
|
130,453
|
|
Net sales
|
|
$
|
693,110
|
|
|
$
|
869,027
|
|
|
$
|
2,900,117
|
|
|
$
|
3,364,930
|
|
Net loss
margin
|
|
|
(10.8)
|
%
|
|
|
(23.0)
|
%
|
|
|
(1.0)
|
%
|
|
|
(9.6)
|
%
|
Adjusted EBITDAP
margin
|
|
|
6.3
|
%
|
|
|
5.3
|
%
|
|
|
8.6
|
%
|
|
|
4.0
|
%
|
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH GROUP,
INC. AND SUBSIDIARIES
(dollars in
thousands)
|
|
Non-GAAP Financial
Measure Disclosures (continued)
|
|
|
|
Three Months Ended
March 31, 2020
|
|
|
|
|
|
|
|
Segment
Data
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation,
Amortization, and
Pension (EBITDAP):
|
|
Total
|
|
|
Systems
&
Support
|
|
|
Aerospace
Structures
|
|
|
Corporate/
Eliminations*
|
|
Net loss
|
|
$
|
(75,069)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-service defined
benefit income
|
|
|
15,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(6,679)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
other, net
|
|
|
26,060
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
|
$
|
(40,302)
|
|
|
$
|
(22,478)
|
|
|
$
|
(2,066)
|
|
|
$
|
(15,758)
|
|
Loss on sales of
assets & businesses, net
|
|
|
1,726
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,726
|
|
Amortization of
acquired contract liabilities
|
|
|
(19,132)
|
|
|
|
(8,360)
|
|
|
|
(10,772)
|
|
|
|
—
|
|
Depreciation and
amortization
|
|
|
100,177
|
|
|
|
74,184
|
|
|
|
25,153
|
|
|
|
840
|
|
Adjusted Earnings
(Losses) before Interest, Taxes,
Depreciation and Amortization, and Pension
("Adjusted EBITDAP")
|
|
$
|
42,469
|
|
|
$
|
43,346
|
|
|
$
|
12,315
|
|
|
$
|
(13,192)
|
|
Net sales
|
|
$
|
693,110
|
|
|
$
|
352,066
|
|
|
$
|
345,158
|
|
|
$
|
(4,114)
|
|
Adjusted EBITDAP
margin
|
|
|
6.3
|
%
|
|
|
12.6
|
%
|
|
|
3.7
|
%
|
|
n/a
|
|
|
|
Year Ended March
31, 2020
|
|
|
|
|
|
|
|
Segment
Data
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation,
Amortization, and
Pension (EBITDAP):
|
|
Total
|
|
|
Systems
&
Support
|
|
|
Aerospace
Structures
|
|
|
Corporate/
Eliminations*
|
|
Net loss
|
|
$
|
(28,126)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-service defined
benefit income
|
|
|
(41,894)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
5,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
other, net
|
|
|
122,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
57,907
|
|
|
$
|
141,341
|
|
|
$
|
41,864
|
|
|
$
|
(125,298)
|
|
Loss (gain) on sales
of assets & businesses, net
|
|
|
56,916
|
|
|
|
—
|
|
|
|
(10,121)
|
|
|
|
67,037
|
|
Legal judgment gain,
net of expenses
|
|
|
(9,257)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(9,257)
|
|
Union represented
employee incentives
|
|
|
7,071
|
|
|
|
—
|
|
|
|
7,071
|
|
|
|
—
|
|
Amortization of
acquired contract liabilities
|
|
|
(75,286)
|
|
|
|
(34,486)
|
|
|
|
(40,800)
|
|
|
|
—
|
|
Depreciation and
amortization
|
|
|
204,289
|
|
|
|
98,497
|
|
|
|
102,418
|
|
|
|
3,374
|
|
Adjusted Earnings
(Losses) before Interest, Taxes,
Depreciation and Amortization, and Pension
("Adjusted EBITDAP")
|
|
$
|
241,640
|
|
|
$
|
205,352
|
|
|
$
|
100,432
|
|
|
$
|
(64,144)
|
|
Net sales
|
|
$
|
2,900,117
|
|
|
$
|
1,357,564
|
|
|
$
|
1,555,887
|
|
|
$
|
(13,334)
|
|
Adjusted EBITDAP
margin
|
|
|
8.6
|
%
|
|
|
15.5
|
%
|
|
|
6.6
|
%
|
|
n/a
|
|
FINANCIAL DATA
(UNAUDITED)
TRIUMPH GROUP,
INC. AND SUBSIDIARIES
(dollars in
thousands)
|
|
Non-GAAP Financial
Measure Disclosures (continued)
|
|
|
|
Three Months Ended
March 31, 2019
|
|
|
|
|
|
|
|
Segment
Data
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation,
Amortization, and
Pension (EBITDAP):
|
|
Total
|
|
|
Systems
&
Support
|
|
|
Aerospace
Structures
|
|
|
Corporate/
Eliminations*
|
|
Net loss
|
|
$
|
(199,612)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-service defined
benefit income
|
|
|
(12,524)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(8,165)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
other, net
|
|
|
31,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
|
$
|
(189,197)
|
|
|
$
|
55,270
|
|
|
$
|
(264)
|
|
|
$
|
(244,203)
|
|
Loss on sales of
assets & businesses, net
|
|
|
217,464
|
|
|
|
—
|
|
|
|
—
|
|
|
|
217,464
|
|
Amortization of
acquired contract liabilities
|
|
|
(18,544)
|
|
|
|
(8,332)
|
|
|
|
(10,212)
|
|
|
|
—
|
|
Depreciation and
amortization
|
|
|
35,556
|
|
|
|
8,113
|
|
|
|
26,543
|
|
|
|
900
|
|
Adjusted Earnings
(Losses) before Interest, Taxes,
Depreciation and Amortization, and Pension
("Adjusted EBITDAP")
|
|
$
|
45,279
|
|
|
$
|
55,051
|
|
|
$
|
16,067
|
|
|
$
|
(25,839)
|
|
Net sales
|
|
$
|
869,027
|
|
|
$
|
362,204
|
|
|
$
|
511,314
|
|
|
$
|
(4,491)
|
|
Adjusted EBITDAP
margin
|
|
|
5.3
|
%
|
|
|
15.6
|
%
|
|
|
3.2
|
%
|
|
n/a
|
|
|
|
Year Ended March
31, 2019
|
|
|
|
|
|
|
|
Segment
Data
|
|
Adjusted Earnings before Interest, Taxes,
Depreciation, Amortization, and
Pension (EBITDAP):
|
|
Total
|
|
|
Systems
&
Support
|
|
|
Aerospace
Structures
|
|
|
Corporate/
Eliminations*
|
|
Net loss
|
|
$
|
(321,767)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-service defined
benefit income
|
|
|
(62,105)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(5,426)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
other, net
|
|
|
114,619
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
|
$
|
(274,679)
|
|
|
$
|
201,094
|
|
|
$
|
(152,407)
|
|
|
$
|
(323,366)
|
|
Loss on sales of
assets & businesses, net
|
|
|
235,301
|
|
|
|
—
|
|
|
|
—
|
|
|
|
235,301
|
|
Adoption of ASU
2017-07
|
|
|
87,241
|
|
|
|
—
|
|
|
|
87,241
|
|
|
|
—
|
|
Amortization of
acquired contract liabilities
|
|
|
(67,314)
|
|
|
|
(34,121)
|
|
|
|
(33,193)
|
|
|
|
—
|
|
Depreciation and
amortization
|
|
|
149,904
|
|
|
|
35,373
|
|
|
|
111,431
|
|
|
|
3,100
|
|
Adjusted Earnings
(Losses) before Interest,
Taxes,
Depreciation and Amortization,
and
Pension ("Adjusted EBITDAP")
|
|
$
|
130,453
|
|
|
$
|
202,346
|
|
|
$
|
13,072
|
|
|
$
|
(84,965)
|
|
Net sales
|
|
$
|
3,364,930
|
|
|
$
|
1,325,017
|
|
|
$
|
2,062,404
|
|
|
$
|
(22,491)
|
|
Adjusted EBITDAP
margin
|
|
|
4.0
|
%
|
|
|
15.7
|
%
|
|
|
0.6
|
%
|
|
n/a
|
|
*
Operating loss at Corporate includes share-based compensation
expense.
|
FINANCIAL DATA
(UNAUDITED)
TRIUMPH GROUP,
INC. AND SUBSIDIARIES
(dollars in
thousands, except per share data)
|
|
Non-GAAP Financial
Measure Disclosures (continued)
|
|
Adjusted income from
continuing operations, before income taxes, adjusted income from
continuing operations and adjusted income from continuing
operations per diluted share, before non-recurring costs have been
provided for consistency and comparability. These measures should
not be considered in isolation or as alternatives to income from
continuing operations before income taxes, income from continuing
operations and income from continuing operations per diluted share
presented in accordance with GAAP. The following tables
reconcile income from continuing operations before income taxes,
income from continuing operations, and income from continuing
operations per diluted share, before non-recurring
costs.
|
|
|
|
Three Months
Ended
March 31,
2020
|
|
|
|
Pre-Tax
|
|
|
After-Tax
|
|
|
Diluted
EPS
|
|
Loss from continuing
operations - GAAP
|
|
$
|
(81,748)
|
|
|
$
|
(75,069)
|
|
|
$
|
(1.45)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of
assets and businesses, net
|
|
|
1,726
|
|
|
|
1,726
|
|
|
|
0.03
|
|
Settlements,
curtailments & special termination, net
|
|
|
28,666
|
|
|
|
28,666
|
|
|
|
0.55
|
|
Goodwill
impairment
|
|
|
66,121
|
|
|
|
66,121
|
|
|
|
1.27
|
|
Restructuring
costs
|
|
|
11,850
|
|
|
|
11,850
|
|
|
|
0.23
|
|
CARES Act tax
adjustment
|
|
|
—
|
|
|
|
2,747
|
|
|
|
0.05
|
|
Adjusted income from
continuing operations - non-GAAP
|
|
$
|
26,615
|
|
|
$
|
36,041
|
|
|
$
|
0.69
|
|
|
|
Year
Ended
March 31,
2020
|
|
|
|
Pre-Tax
|
|
|
After-Tax
|
|
|
Diluted
EPS
|
|
Loss from continuing
operations - GAAP
|
|
$
|
(22,328)
|
|
|
$
|
(28,126)
|
|
|
$
|
(0.56)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of
assets and businesses, net
|
|
|
56,916
|
|
|
|
56,916
|
|
|
|
1.12
|
|
Settlements,
curtailments & special termination, net
|
|
|
14,293
|
|
|
|
14,293
|
|
|
|
0.28
|
|
Goodwill
impairment
|
|
|
66,121
|
|
|
|
66,121
|
|
|
|
1.30
|
|
Legal settlement
gain, net of expenses
|
|
|
(9,257)
|
|
|
|
(9,257)
|
|
|
|
(0.18)
|
|
Union
incentives
|
|
|
7,071
|
|
|
|
7,071
|
|
|
|
0.14
|
|
Restructuring
costs
|
|
|
25,340
|
|
|
|
25,340
|
|
|
|
0.50
|
|
Refinancing
cost
|
|
|
3,030
|
|
|
|
3,030
|
|
|
|
0.06
|
|
CARES Act tax
adjustment
|
|
|
—
|
|
|
|
2,747
|
|
|
|
0.05
|
|
Adjusted income from
continuing operations - non-GAAP*
|
|
$
|
141,186
|
|
|
$
|
138,135
|
|
|
$
|
2.71
|
|
|
* Differences due to
rounding
|
|
|
Three Months
Ended
March 31,
2019
|
|
|
|
Pre-Tax
|
|
|
After-Tax
|
|
|
Diluted
EPS
|
|
Loss from continuing
operations - GAAP
|
|
$
|
(207,777)
|
|
|
$
|
(199,612)
|
|
|
$
|
(4.01)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on
divestitures
|
|
|
217,464
|
|
|
|
217,464
|
|
|
|
4.37
|
|
Curtailment &
settlement, net
|
|
|
4,165
|
|
|
|
4,165
|
|
|
|
0.08
|
|
E2 Jet program
forward loss reduction
|
|
|
(3,700)
|
|
|
|
(3,700)
|
|
|
|
(0.07)
|
|
G280 program forward
loss charge
|
|
|
26,548
|
|
|
|
26,548
|
|
|
|
0.53
|
|
Restructuring
costs
|
|
|
12,892
|
|
|
|
12,892
|
|
|
|
0.26
|
|
Adjusted income from
continuing operations - non-GAAP
|
|
$
|
49,592
|
|
|
$
|
57,757
|
|
|
$
|
1.15
|
|
FINANCIAL DATA
(UNAUDITED)
TRIUMPH GROUP,
INC. AND SUBSIDIARIES
(dollars in
thousands, except per share data)
|
|
Non-GAAP Financial
Measure Disclosures (continued)
|
|
|
|
Year
Ended
March 31,
2019
|
|
|
|
Pre-Tax
|
|
|
After-Tax
|
|
|
Diluted
EPS
|
|
Loss from continuing
operations - GAAP
|
|
$
|
(327,193)
|
|
|
$
|
(321,767)
|
|
|
$
|
(6.47)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Adoption of ASU
2017-07
|
|
|
87,241
|
|
|
|
87,241
|
|
|
|
1.76
|
|
Loss on sale of
assets and businesses, net
|
|
|
235,301
|
|
|
|
235,301
|
|
|
|
4.73
|
|
Curtailment &
settlement, net
|
|
|
4,165
|
|
|
|
4,165
|
|
|
|
0.08
|
|
Global 7500 forward
loss charge
|
|
|
60,424
|
|
|
|
60,424
|
|
|
|
1.21
|
|
E2 Jet program
forward loss charge
|
|
|
5,462
|
|
|
|
5,462
|
|
|
|
0.11
|
|
G280 program forward
loss charge
|
|
|
29,064
|
|
|
|
29,064
|
|
|
|
0.58
|
|
Reduction of prior
Gulfstream forward loss
|
|
|
(7,624)
|
|
|
|
(7,624)
|
|
|
|
(0.15)
|
|
Restructuring
costs
|
|
|
31,098
|
|
|
|
31,098
|
|
|
|
0.62
|
|
Refinancing
costs
|
|
|
1,281
|
|
|
|
1,281
|
|
|
|
0.03
|
|
Adjusted income from
continuing operations - non-GAAP*
|
|
$
|
119,219
|
|
|
$
|
124,645
|
|
|
$
|
2.49
|
|
|
* Differences due to
rounding
|
Adjusted Operating
Income is defined as GAAP Operating Income, less expenses/gains
associated with the Company's transformation, such as restructuring
expenses, gains/losses on divestitures, defined benefit plan
gains/losses from curtailments, settlements, etc; impairments of
goodwill and other assets. Management believes that this is useful
in evaluating operating performance, but this measure should not be
used in isolation. The following table reconciles our Operating
income to Adjusted Operating income as noted above.
|
|
|
|
Three Months
Ended
March
31,
|
|
|
Year
Ended
March
31,
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Operating (loss)
income - GAAP
|
|
$
|
(40,302)
|
|
|
$
|
(189,197)
|
|
|
$
|
57,907
|
|
|
$
|
(274,679)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adoption of ASU
2017-07
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
87,241
|
|
Loss on sale of
assets and businesses, net
|
|
|
1,726
|
|
|
|
217,464
|
|
|
|
56,916
|
|
|
|
235,301
|
|
Goodwill
impairment
|
|
|
66,121
|
|
|
|
—
|
|
|
|
66,121
|
|
|
|
—
|
|
Global 7500 forward
loss charge
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
60,424
|
|
E2 Jet program
forward loss charge
|
|
|
—
|
|
|
|
(3,700)
|
|
|
|
—
|
|
|
|
5,462
|
|
G280 program forward
loss charge
|
|
|
—
|
|
|
|
26,548
|
|
|
|
—
|
|
|
|
29,064
|
|
Reduction of prior
Gulfstream forward loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(7,624)
|
|
Restructuring
costs
|
|
|
11,850
|
|
|
|
12,892
|
|
|
|
25,340
|
|
|
|
31,098
|
|
Legal judgment gain,
net of expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
(9,257)
|
|
|
|
—
|
|
Union
incentives
|
|
|
—
|
|
|
|
—
|
|
|
|
7,071
|
|
|
|
—
|
|
Adjusted operating
income - non-GAAP
|
|
$
|
39,395
|
|
|
$
|
64,007
|
|
|
$
|
204,098
|
|
|
$
|
166,287
|
|
FINANCIAL DATA
(UNAUDITED)
TRIUMPH GROUP,
INC. AND SUBSIDIARIES
(dollars in
thousands, except per share data)
|
|
Non-GAAP Financial
Measure Disclosures (continued)
|
|
Cash provided by
operations, is provided for consistency and comparability. We also
use free cash flow as a key factor in planning for and
consideration of strategic acquisitions and the repayment of debt.
This measure should not be considered in isolation, as a measure of
residual cash flow available for discretionary purposes, or as an
alternative to operating results presented in accordance with GAAP.
The following table reconciles cash provided by operations to free
cash flow.
|
|
|
|
Three Months
Ended
March
31,
|
|
|
Year
Ended
March
31,
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Cash flow provided by
(used in) operations
|
|
$
|
57,378
|
|
|
$
|
18,696
|
|
|
$
|
96,666
|
|
|
$
|
(174,420)
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(12,584)
|
|
|
|
(12,276)
|
|
|
|
(39,834)
|
|
|
|
(47,099)
|
|
Free cash flow
(use)
|
|
$
|
44,794
|
|
|
$
|
6,420
|
|
|
$
|
56,832
|
|
|
$
|
(221,519)
|
|
View original
content:http://www.prnewswire.com/news-releases/triumph-group-reports-fourth-quarter-fiscal-2020-results-301066834.html
SOURCE Triumph Group