BERWYN, Pa., May 20, 2021 /PRNewswire/ -- Triumph Group,
Inc. (NYSE: TGI) ("Triumph" or the "Company") today reported
financial results for its fourth quarter and full fiscal year 2021,
which ended March 31, 2021.
Fiscal 2021 Highlights
- Delivered positive free cash flow in second half of year as
domestic COVID-19 recovery advances
- Achieved third consecutive quarter of sequential growth in
Systems and Support revenue and margins
- Continued to successfully execute portfolio strategy to
position Triumph for success in the post-COVID landscape
- Exited the G650 and G280 structures programs and announced the
divestiture of three Aerostructure sites: Milledgeville, Georgia; Rayong, Thailand; and Red
Oak, Texas. Completed 19 divestitures since 2016
- Contract wins included systems and MRO content on military
helicopters and engines as well as the renegotiation and extension
of several of its largest commercial transport contracts with
Boeing
- Strengthened balance sheet and enhanced liquidity following
issuance of new $700 million bond
offering and at-the-market equity raise of approximately
$150 million with the issuance of 9.2
million shares
Fourth Quarter Fiscal 2021
- Net sales of $466.8 million
- Operating loss of $46.2 million
with operating margin of (10%); adjusted operating income of
$32.9 million with adjusted operating
margin of 7%
- Net loss of $73.5 million, or
($1.27) per share; adjusted net
income of $5.7 million, or
$0.10 per diluted share
- Cash flow provided by operations of $22.8 million; free cash flow of $16.6 million
Full-Year Fiscal 2021
- Net sales of $1.9 billion
- Operating loss of $326.2 million
with operating margin of (17%); adjusted operating income of
$107.8 million with adjusted
operating margin of 6%
- Net loss of $450.9 million, or
($8.55) per share; adjusted net loss
of $1.6 million, or ($0.03) per share
- Cash flow used in operations of $173.1
million; free cash use of $198.3
million
"As the pandemic recovery progressed, we generated cash for the
second consecutive quarter demonstrating strong management of
working capital, improving margins from our core operations due to
increased efficiencies and the benefits of robust cost reduction
actions," stated Daniel J. Crowley,
Triumph's chairman, president and chief executive officer.
"Profitability on an adjusted basis improved sequentially in the
quarter, showing measurable recovery towards pre-COVID levels
across both business units. As Triumph accelerates our organic
growth, we remain committed to conserving cash and partnering with
our customers to deliver value to all our stakeholders."
Mr. Crowley continued, "For the third consecutive quarter, we
increased revenues in our core Systems & Support business
driven by higher military volumes and continued aftermarket
recovery. Consolidated organic revenue in the quarter
decreased compared to the prior year period due to the exit from
and expected declines in certain Aerospace Structures programs as
part of our portfolio transformation, as well as the ongoing impact
of the COVID-19 pandemic. We continued to hit our
transformation milestones and completed the sale of our Composites
and Military structures operations earlier this month.
Furthermore, our at-the-market equity raise in the fourth quarter
bolstered our liquidity position and provides additional capital to
support growth."
Fourth Quarter Fiscal Year 2021 Overview
After accounting for the impact of the divestitures, sales for
the fourth quarter of fiscal year 2021 were down 29% organically
from the comparable prior year period. The consolidated
decline was driven by planned reductions on sunsetting and
transitioned programs, impacts of the COVID-19 pandemic and
resulting production rate decreases primarily on commercial
programs, partially offset by increases in military programs.
Fourth quarter operating loss of $46.2
million included $58.7 million
loss on held for sale assets and $20.5
million of restructuring costs associated with reduction in
force. Net loss for the fourth quarter of fiscal year 2021
was $73.5 million, or ($1.27) per share. On an adjusted basis,
net income was $5.7 million, or
$0.10 per share.
Triumph's results included the following:
($ millions
except EPS)
|
|
Pre-tax
|
|
|
After-tax
|
|
|
Diluted
EPS
|
|
Loss from
Continuing Operations - GAAP
|
|
$
|
(73.0)
|
|
|
$
|
(73.5)
|
|
|
$
|
(1.27)
|
|
Loss on sale of
assets and businesses, net
|
|
|
58.7
|
|
|
|
58.7
|
|
|
|
1.00
|
|
Transformation
related costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs
|
|
|
20.5
|
|
|
|
20.5
|
|
|
|
0.35
|
|
Adjusted Income
from Continuing Operations - non-GAAP *
|
|
$
|
6.1
|
|
|
$
|
5.7
|
|
|
$
|
0.10
|
|
* Differences due to
rounding
|
The number of shares used in computing diluted earnings per
share for the fourth quarter of 2021 was 58.6 million.
Backlog, which represents the next 24 months of actual purchase
orders with firm delivery dates or contract requirements, was
$1.9 billion, down as expected
compared to the prior year period and on a sequential basis due to
divestitures, sunsetting programs and recent production rate
reductions, but partially offset by military program increases in
Systems & Support.
For the fourth quarter of fiscal year 2021, cash flow provided
by operations was $22.8 million,
reflecting improved working capital and operating margins and which
included liquidation of approximately $10.0
million in prior period advances against current period
deliveries.
Outlook
Due to the uncertainty around the impacts of business
disruptions related to the COVID-19 pandemic on the global market
and general economic conditions, the Company is not providing
financial guidance for its fiscal year ending March 31, 2022 at this time.
Conference Call
Triumph will hold a conference call today, May 20th, at 8:30 a.m.
(ET) to discuss the fourth quarter of fiscal year 2021
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 20th to
May 27th by calling (855) 859-2056 (Domestic) or (404)
537-3406 (International), passcode #5669003.
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, 2020.
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) ON FOLLOWING PAGES
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
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net sales
|
|
$
|
466,833
|
|
|
$
|
693,110
|
|
|
$
|
1,869,719
|
|
|
$
|
2,900,117
|
|
Cost of sales
(excluding depreciation shown below)
|
|
|
359,598
|
|
|
|
556,642
|
|
|
|
1,476,266
|
|
|
|
2,307,393
|
|
Selling, general
& administrative
|
|
|
53,773
|
|
|
|
63,017
|
|
|
|
215,962
|
|
|
|
257,529
|
|
Depreciation &
amortization
|
|
|
20,515
|
|
|
|
34,056
|
|
|
|
93,334
|
|
|
|
138,168
|
|
Impairment of
long-lived assets and goodwill
|
|
|
—
|
|
|
|
66,121
|
|
|
|
252,382
|
|
|
|
66,121
|
|
Restructuring
costs
|
|
|
20,477
|
|
|
|
11,850
|
|
|
|
53,224
|
|
|
|
25,340
|
|
Legal judgment gain,
net of expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(9,257)
|
|
Loss on sale of
assets and businesses, net
|
|
|
58,682
|
|
|
|
1,726
|
|
|
|
104,702
|
|
|
|
56,916
|
|
Operating (loss)
income
|
|
|
(46,212)
|
|
|
|
(40,302)
|
|
|
|
(326,151)
|
|
|
|
57,907
|
|
Interest expense and
other, net
|
|
|
39,053
|
|
|
|
26,060
|
|
|
|
171,397
|
|
|
|
122,129
|
|
Non-service defined
benefit (income) expense
|
|
|
(12,244)
|
|
|
|
15,438
|
|
|
|
(49,519)
|
|
|
|
(40,587)
|
|
Income tax expense
(benefit)
|
|
|
498
|
|
|
|
(6,679)
|
|
|
|
2,881
|
|
|
|
5,798
|
|
Net loss
|
|
$
|
(73,519)
|
|
|
$
|
(75,121)
|
|
|
$
|
(450,910)
|
|
|
$
|
(29,433)
|
|
Loss per share -
basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(1.27)
|
|
|
$
|
(1.51)
|
|
|
$
|
(8.55)
|
|
|
$
|
(0.58)
|
|
Weighted average
common shares outstanding - basic
|
|
|
57,920
|
|
|
|
49,774
|
|
|
|
52,739
|
|
|
|
50,494
|
|
Loss per share -
diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(1.27)
|
|
|
$
|
(1.51)
|
|
|
$
|
(8.55)
|
|
|
$
|
(0.58)
|
|
Weighted average
common shares outstanding - diluted
|
|
|
57,920
|
|
|
|
49,774
|
|
|
|
52,739
|
|
|
|
50,494
|
|
Dividends declared
and paid per common share
|
|
$
|
—
|
|
|
$
|
0.04
|
|
|
$
|
—
|
|
|
$
|
0.16
|
|
(Continued)
|
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH
GROUP, INC. AND SUBSIDIARIES
|
(dollars in
thousands, except share data)
|
|
BALANCE
SHEETS
|
|
Unaudited
March
31,
2021
|
|
|
Audited
March
31,
2020
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
589,882
|
|
|
$
|
485,463
|
|
Accounts receivable,
net
|
|
|
194,066
|
|
|
|
359,487
|
|
Contract
assets
|
|
|
134,638
|
|
|
|
244,417
|
|
Inventory,
net
|
|
|
400,366
|
|
|
|
452,976
|
|
Prepaid and other
current assets
|
|
|
19,206
|
|
|
|
19,289
|
|
Assets held for
sale
|
|
|
216,276
|
|
|
|
—
|
|
Current
assets
|
|
|
1,554,434
|
|
|
|
1,561,632
|
|
Property and
equipment, net
|
|
|
211,369
|
|
|
|
418,141
|
|
Goodwill
|
|
|
521,638
|
|
|
|
513,527
|
|
Intangible assets,
net
|
|
|
102,453
|
|
|
|
381,968
|
|
Other, net
|
|
|
61,041
|
|
|
|
105,065
|
|
Total
assets
|
|
$
|
2,450,935
|
|
|
$
|
2,980,333
|
|
Liabilities &
Stockholders' Deficit
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
|
5,247
|
|
|
$
|
7,336
|
|
Accounts
payable
|
|
|
179,473
|
|
|
|
457,694
|
|
Contract
liabilities
|
|
|
204,379
|
|
|
|
295,320
|
|
Accrued
expenses
|
|
|
271,160
|
|
|
|
227,403
|
|
Liabilities related
to assets held for sale
|
|
|
58,108
|
|
|
|
—
|
|
Current
liabilities
|
|
|
718,367
|
|
|
|
987,753
|
|
Long-term debt, less
current portion
|
|
|
1,952,296
|
|
|
|
1,800,171
|
|
Accrued pension and
post-retirement benefits, noncurrent
|
|
|
384,256
|
|
|
|
660,065
|
|
Deferred income
taxes, noncurrent
|
|
|
7,491
|
|
|
|
7,439
|
|
Other noncurrent
liabilities
|
|
|
207,378
|
|
|
|
306,169
|
|
Stockholders'
Deficit:
|
|
|
|
|
|
|
|
|
Common stock, $.001
par value, 100,000,000 shares authorized, 64,488,674
and 52,460,920 shares issued
|
|
|
64
|
|
|
|
52
|
|
Capital in excess of
par value
|
|
|
978,272
|
|
|
|
804,830
|
|
Treasury stock, at
cost, 303,673 and 602,831 shares
|
|
|
(12,606)
|
|
|
|
(36,217)
|
|
Accumulated other
comprehensive loss
|
|
|
(530,192)
|
|
|
|
(746,448)
|
|
Accumulated
deficit
|
|
|
(1,254,391)
|
|
|
|
(803,481)
|
|
Total stockholders'
deficit
|
|
|
(818,853)
|
|
|
|
(781,264)
|
|
Total liabilities and
stockholders' deficit
|
|
$
|
2,450,935
|
|
|
$
|
2,980,333
|
|
(Continued)
|
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH
GROUP, INC. AND SUBSIDIARIES
|
(dollars in
thousands, except share data)
|
|
|
|
Fiscal Year Ended
March 31
|
|
|
|
2021
|
|
|
2020
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(450,910)
|
|
|
$
|
(29,433)
|
|
Adjustments to
reconcile net loss to net cash (used in) provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
93,334
|
|
|
|
138,168
|
|
Impairment of
long-lived assets
|
|
|
252,382
|
|
|
|
66,121
|
|
Amortization of
acquired contract liability
|
|
|
(38,564)
|
|
|
|
(75,286)
|
|
Loss on sale of assets
and businesses
|
|
|
104,702
|
|
|
|
56,916
|
|
Curtailments and
special termination benefits gain, net
|
|
|
—
|
|
|
|
14,293
|
|
Other amortization
included in interest expense
|
|
|
23,759
|
|
|
|
11,157
|
|
Provision for credit
losses
|
|
|
4,853
|
|
|
|
1,554
|
|
(Benefit) provision
for deferred income taxes
|
|
|
(176)
|
|
|
|
2,823
|
|
Share-based
compensation
|
|
|
12,701
|
|
|
|
11,062
|
|
Changes in other
assets and liabilities, excluding the effects of
acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
Trade and other
receivables
|
|
|
126,294
|
|
|
|
5,001
|
|
Contract
assets
|
|
|
46,841
|
|
|
|
50,440
|
|
Inventories
|
|
|
35,412
|
|
|
|
(48,802)
|
|
Prepaid expenses and
other current assets
|
|
|
(310)
|
|
|
|
16,376
|
|
Accounts payable,
accrued expenses, and contract liabilities
|
|
|
(330,992)
|
|
|
|
(61,338)
|
|
Accrued pension and
other postretirement benefits
|
|
|
(51,692)
|
|
|
|
(66,519)
|
|
Other, net
|
|
|
(753)
|
|
|
|
4,133
|
|
Net cash (used in)
provided by operating activities
|
|
|
(173,119)
|
|
|
|
96,666
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(25,178)
|
|
|
|
(39,834)
|
|
Proceeds from sale of
assets and businesses
|
|
|
15,888
|
|
|
|
47,229
|
|
Net cash (used in)
provided by investing activities
|
|
|
(9,290)
|
|
|
|
7,395
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
Net (decrease)
increase in revolving credit facility
|
|
|
(400,000)
|
|
|
|
185,000
|
|
Proceeds from
issuance of long-term debt
|
|
|
713,900
|
|
|
|
585,580
|
|
Retirement of debt
and finance lease obligations
|
|
|
(160,035)
|
|
|
|
(449,650)
|
|
Payment of deferred
financing costs
|
|
|
(20,716)
|
|
|
|
(17,718)
|
|
Sales of common
stock
|
|
|
145,383
|
|
|
|
—
|
|
Dividends
paid
|
|
|
—
|
|
|
|
(8,078)
|
|
Repurchase of
restricted shares for minimum tax obligations
|
|
|
(1,285)
|
|
|
|
(1,442)
|
|
Net cash provided by
financing activities
|
|
|
277,247
|
|
|
|
293,692
|
|
Effect of exchange
rate changes on cash
|
|
|
9,581
|
|
|
|
(5,097)
|
|
Net change in cash
and cash equivalents
|
|
|
104,419
|
|
|
|
392,656
|
|
Cash and cash
equivalents at beginning of period
|
|
|
485,463
|
|
|
|
92,807
|
|
Cash and cash
equivalents at end of period
|
|
$
|
589,882
|
|
|
$
|
485,463
|
|
(Continued)
|
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH GROUP,
INC. AND SUBSIDIARIES
|
(dollars in
thousands)
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
March
31,
|
|
|
March
31,
|
|
SEGMENT
DATA
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems &
Support
|
|
$
|
301,823
|
|
|
$
|
352,066
|
|
|
$
|
1,060,001
|
|
|
$
|
1,357,564
|
|
Aerospace
Structures
|
|
|
165,306
|
|
|
|
345,158
|
|
|
|
814,371
|
|
|
|
1,555,887
|
|
Elimination of
inter-segment sales
|
|
|
(296)
|
|
|
|
(4,114)
|
|
|
|
(4,653)
|
|
|
|
(13,334)
|
|
|
|
$
|
466,833
|
|
|
$
|
693,110
|
|
|
$
|
1,869,719
|
|
|
$
|
2,900,117
|
|
Operating (loss)
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems &
Support
|
|
$
|
39,484
|
|
|
$
|
(22,478)
|
|
|
$
|
113,517
|
|
|
$
|
141,341
|
|
Aerospace
Structures
|
|
|
(13,515)
|
|
|
|
(2,066)
|
|
|
|
(267,702)
|
|
|
|
41,864
|
|
Corporate
|
|
|
(68,566)
|
|
|
|
(12,941)
|
|
|
|
(159,265)
|
|
|
|
(114,236)
|
|
Share-based
compensation expense
|
|
|
(3,615)
|
|
|
|
(2,817)
|
|
|
|
(12,701)
|
|
|
|
(11,062)
|
|
|
|
$
|
(46,212)
|
|
|
$
|
(40,302)
|
|
|
$
|
(326,151)
|
|
|
$
|
57,907
|
|
Operating margin
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems &
Support
|
|
|
13.1
|
%
|
|
|
(6.4)
|
%
|
|
|
10.7
|
%
|
|
|
10.4
|
%
|
Aerospace
Structures
|
|
|
(8.2)
|
%
|
|
|
(0.6)
|
%
|
|
|
(32.9)
|
%
|
|
|
2.7
|
%
|
Consolidated
|
|
|
(9.9)
|
%
|
|
|
(5.8)
|
%
|
|
|
(17.4)
|
%
|
|
|
2.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization^:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems &
Support
|
|
$
|
8,719
|
|
|
$
|
74,184
|
|
|
$
|
33,549
|
|
|
$
|
98,497
|
|
Aerospace
Structures
|
|
|
10,989
|
|
|
|
25,153
|
|
|
|
308,708
|
|
|
|
102,418
|
|
Corporate
|
|
|
807
|
|
|
|
840
|
|
|
|
3,459
|
|
|
|
3,374
|
|
|
|
$
|
20,515
|
|
|
$
|
100,177
|
|
|
$
|
345,716
|
|
|
$
|
204,289
|
|
Amortization of
acquired contract liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems &
Support
|
|
$
|
(3,493)
|
|
|
$
|
(8,360)
|
|
|
$
|
(15,062)
|
|
|
$
|
(34,486)
|
|
Aerospace
Structures
|
|
|
(54)
|
|
|
|
(10,772)
|
|
|
|
(23,502)
|
|
|
|
(40,800)
|
|
|
|
$
|
(3,547)
|
|
|
$
|
(19,132)
|
|
|
$
|
(38,564)
|
|
|
$
|
(75,286)
|
|
Capital
expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems &
Support
|
|
$
|
3,420
|
|
|
$
|
4,786
|
|
|
$
|
15,239
|
|
|
$
|
17,141
|
|
Aerospace
Structures
|
|
|
2,541
|
|
|
|
7,276
|
|
|
|
8,909
|
|
|
|
21,191
|
|
Corporate
|
|
|
229
|
|
|
|
522
|
|
|
|
1,030
|
|
|
|
1,502
|
|
|
|
$
|
6,190
|
|
|
$
|
12,584
|
|
|
$
|
25,178
|
|
|
$
|
39,834
|
|
^ includes goodwill
& long-lived asset impairment charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Continued)
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 expense and nonrecurring asset impairments
(including goodwill, intangible asset impairments, and nonrecurring
rotable inventory impairments) may be useful for investors to
consider because it represents the estimated attrition of our
acquired customer base and the diminishing value of tradenames,
product rights, licenses, or, in the case of goodwill, other assets
that are not individually identified and separately recognized
under U.S. GAAP, or, in the case of nonrecurring asset impairments,
the impact of unusual and nonrecurring events affecting the
estimated recoverability of existing assets. 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.
(Continued)
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):
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net loss
|
|
$
|
(73,519)
|
|
|
$
|
(75,121)
|
|
|
$
|
(450,910)
|
|
|
$
|
(29,433)
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
|
498
|
|
|
|
(6,679)
|
|
|
|
2,881
|
|
|
|
5,798
|
|
Interest expense and
other, net
|
|
|
39,053
|
|
|
|
26,060
|
|
|
|
171,397
|
|
|
|
122,129
|
|
Settlements,
curtailments & special termination, net
|
|
|
—
|
|
|
|
28,666
|
|
|
|
—
|
|
|
|
14,293
|
|
Union
incentives
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,071
|
|
Loss on sales of
assets and businesses, net
|
|
|
58,682
|
|
|
|
1,726
|
|
|
|
104,702
|
|
|
|
56,916
|
|
Impairment of rotable
inventory
|
|
|
—
|
|
|
|
—
|
|
|
|
23,689
|
|
|
|
—
|
|
Legal judgment gain,
net of expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(9,257)
|
|
Amortization of
acquired contract liabilities
|
|
|
(3,547)
|
|
|
|
(19,132)
|
|
|
|
(38,564)
|
|
|
|
(75,286)
|
|
Depreciation and
amortization ^
|
|
|
20,515
|
|
|
|
100,177
|
|
|
|
345,716
|
|
|
|
204,289
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA")
|
|
$
|
41,682
|
|
|
$
|
55,697
|
|
|
$
|
158,911
|
|
|
$
|
296,520
|
|
Non-service defined
benefit income (excluding settlements)
|
|
|
(12,244)
|
|
|
|
(13,228)
|
|
|
|
(49,519)
|
|
|
|
(54,880)
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation and Amortization, and Pension ("Adjusted
EBITDAP")
|
|
$
|
29,438
|
|
|
$
|
42,469
|
|
|
$
|
109,392
|
|
|
$
|
241,640
|
|
Net sales
|
|
$
|
466,833
|
|
|
$
|
693,110
|
|
|
$
|
1,869,719
|
|
|
$
|
2,900,117
|
|
Net loss
margin
|
|
|
(15.7)
|
%
|
|
|
(10.8)
|
%
|
|
|
(24.1)
|
%
|
|
|
(1.0)
|
%
|
Adjusted EBITDAP
margin
|
|
|
6.4
|
%
|
|
|
6.3
|
%
|
|
|
6.0
|
%
|
|
|
8.6
|
%
|
^ includes goodwill
& long-lived asset impairment charges
|
|
|
(Continued)
|
FINANCIAL DATA
(UNAUDITED)
|
|
TRIUMPH GROUP,
INC. AND SUBSIDIARIES
|
(dollars in
thousands)
|
|
Non-GAAP Financial
Measure Disclosures (continued)
|
|
|
|
Three Months Ended
March 31, 2021
|
|
|
|
|
|
|
|
Segment
Data
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation,
Amortization, and
Pension (EBITDAP):
|
|
Total
|
|
|
Systems
&
Support
|
|
|
Aerospace
Structures
|
|
|
Corporate/
Eliminations*
|
|
Net loss
|
|
$
|
(73,519)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-service defined
benefit income
|
|
|
(12,244)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
other, net
|
|
|
39,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
(46,212)
|
|
|
$
|
39,484
|
|
|
$
|
(13,515)
|
|
|
$
|
(72,181)
|
|
Loss on sales of
assets & businesses, net
|
|
|
58,682
|
|
|
|
—
|
|
|
|
—
|
|
|
|
58,682
|
|
Amortization of
acquired contract liabilities
|
|
|
(3,547)
|
|
|
|
(3,493)
|
|
|
|
(54)
|
|
|
|
—
|
|
Depreciation and
amortization
|
|
|
20,515
|
|
|
|
8,719
|
|
|
|
10,989
|
|
|
|
807
|
|
Adjusted Earnings
(Losses) before Interest, Taxes, Depreciation and Amortization, and Pension
("Adjusted EBITDAP")
|
|
$
|
29,438
|
|
|
$
|
44,710
|
|
|
$
|
(2,580)
|
|
|
$
|
(12,692)
|
|
Net sales
|
|
$
|
466,833
|
|
|
$
|
301,823
|
|
|
$
|
165,306
|
|
|
$
|
(296)
|
|
Adjusted EBITDAP
margin
|
|
|
6.4
|
%
|
|
|
15.0
|
%
|
|
|
(1.6)
|
%
|
|
n/a
|
|
|
|
|
|
Year Ended March
31, 2021
|
|
|
|
|
|
|
|
Segment
Data
|
|
Adjusted Earnings
before Interest, Taxes, Depreciation,
Amortization, and
Pension (EBITDAP):
|
|
Total
|
|
|
Systems
&
Support
|
|
|
Aerospace
Structures
|
|
|
Corporate/
Eliminations*
|
|
Net loss
|
|
$
|
(450,910)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-service defined
benefit income
|
|
|
(49,519)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
2,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
other, net
|
|
|
171,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
(326,151)
|
|
|
$
|
113,517
|
|
|
$
|
(267,702)
|
|
|
$
|
(171,966)
|
|
Loss on sales of
assets & businesses, net
|
|
|
104,702
|
|
|
|
—
|
|
|
|
—
|
|
|
|
104,702
|
|
Amortization of
acquired contract liabilities
|
|
|
(38,564)
|
|
|
|
(15,062)
|
|
|
|
(23,502)
|
|
|
|
—
|
|
Impairment of rotable
inventory
|
|
|
23,689
|
|
|
|
23,689
|
|
|
|
—
|
|
|
|
—
|
|
Depreciation and
amortization ^
|
|
|
345,716
|
|
|
|
33,549
|
|
|
|
308,708
|
|
|
|
3,459
|
|
Adjusted Earnings
(Losses) before Interest, Taxes, Depreciation and Amortization, and Pension
("Adjusted EBITDAP")
|
|
$
|
109,392
|
|
|
$
|
155,693
|
|
|
$
|
17,504
|
|
|
$
|
(63,805)
|
|
Net sales
|
|
$
|
1,869,719
|
|
|
$
|
1,060,001
|
|
|
$
|
814,371
|
|
|
$
|
(4,653)
|
|
Adjusted EBITDAP
margin
|
|
|
6.0
|
%
|
|
|
14.9
|
%
|
|
|
2.2
|
%
|
|
n/a
|
|
* Operating loss at
Corporate includes share-based compensation expense.
|
^ includes long-lived
asset impairment charges in fiscal Q1
|
|
|
(Continued)
|
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
|
|
$
|
(75,121)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-service defined
benefit expense
|
|
|
15,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit
|
|
|
(6,679)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
other, net
|
|
|
26,060
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
$
|
(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
|
|
^ includes goodwill
impairment charges
|
|
|
|
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
|
|
$
|
(29,433)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add-back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-service defined
benefit income
|
|
|
(40,587)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
5,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
other, net
|
|
|
122,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
57,907
|
|
|
$
|
141,341
|
|
|
$
|
41,864
|
|
|
$
|
(125,298)
|
|
Loss 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
|
|
^ includes goodwill
impairment charges
|
(Continued)
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,
2021
|
|
|
|
Pre-Tax
|
|
|
After-Tax
|
|
|
Diluted
EPS
|
|
Loss from continuing
operations - GAAP
|
|
$
|
(73,021)
|
|
|
$
|
(73,519)
|
|
|
$
|
(1.27)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of
assets and businesses, net
|
|
|
58,682
|
|
|
|
58,682
|
|
|
|
1.00
|
|
Restructuring
costs
|
|
|
20,477
|
|
|
|
20,477
|
|
|
|
0.35
|
|
Adjusted income from
continuing operations - non-GAAP*
|
|
$
|
6,138
|
|
|
$
|
5,640
|
|
|
$
|
0.10
|
|
* Differences
due to rounding
|
|
|
Year
Ended
March 31,
2021
|
|
|
|
Pre-Tax
|
|
|
After-Tax
|
|
|
Diluted
EPS
|
|
Loss from continuing
operations - GAAP
|
|
$
|
(448,029)
|
|
|
$
|
(450,910)
|
|
|
$
|
(8.55)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of
assets and businesses, net
|
|
|
104,702
|
|
|
|
104,702
|
|
|
|
1.99
|
|
Impairment of
long-lived assets
|
|
|
252,382
|
|
|
|
252,382
|
|
|
|
4.79
|
|
Impairment of rotable
assets
|
|
|
23,689
|
|
|
|
23,689
|
|
|
|
0.45
|
|
Restructuring
costs
|
|
|
53,224
|
|
|
|
53,224
|
|
|
|
1.01
|
|
Refinancing
cost
|
|
|
15,305
|
|
|
|
15,305
|
|
|
|
0.29
|
|
Adjusted income from
continuing operations - non-GAAP*
|
|
$
|
1,273
|
|
|
$
|
(1,608)
|
|
|
$
|
(0.03)
|
|
* Differences
due to rounding
|
|
|
Three Months
Ended
March 31,
2020
|
|
|
|
Pre-Tax
|
|
|
After-Tax
|
|
|
Diluted
EPS
|
|
Loss from continuing
operations - GAAP
|
|
$
|
(81,800)
|
|
|
$
|
(75,121)
|
|
|
$
|
(1.44)
|
|
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
|
|
$
|
26,563
|
|
|
$
|
35,989
|
|
|
|
0.69
|
|
(1) As
adjusted
|
(Continued)
|
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,
2020
|
|
|
|
Pre-Tax
|
|
|
After-Tax
|
|
|
Diluted
EPS
|
|
Loss from continuing
operations - GAAP
|
|
$
|
(23,635)
|
|
|
$
|
(29,433)
|
|
|
$
|
(0.58)
|
|
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
costs
|
|
|
3,030
|
|
|
|
3,030
|
|
|
|
0.06
|
|
CARES Act tax
adjustment
|
|
|
—
|
|
|
|
2,747
|
|
|
|
0.05
|
|
Adjusted income from
continuing operations - non-GAAP
|
|
$
|
139,879
|
|
|
$
|
136,828
|
|
|
$
|
2.69
|
|
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,
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,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Operating (loss)
income - GAAP
|
|
$
|
(46,212)
|
|
|
$
|
(40,302)
|
|
|
$
|
(326,151)
|
|
|
$
|
57,907
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of
assets and businesses, net
|
|
|
58,682
|
|
|
|
1,726
|
|
|
|
104,702
|
|
|
|
56,916
|
|
Impairment of
long-lived assets and goodwill
|
|
|
—
|
|
|
|
66,121
|
|
|
|
252,382
|
|
|
|
66,121
|
|
Impairment of rotable
inventory
|
|
|
—
|
|
|
|
—
|
|
|
|
23,689
|
|
|
|
—
|
|
Restructuring
costs
|
|
|
20,477
|
|
|
|
11,850
|
|
|
|
53,224
|
|
|
|
25,340
|
|
Legal judgment gain,
net of expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(9,257)
|
|
Union
incentives
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,071
|
|
Adjusted operating
income - non-GAAP
|
|
$
|
32,947
|
|
|
$
|
39,395
|
|
|
$
|
107,846
|
|
|
$
|
204,098
|
|
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,
|
|
|
Fiscal Year
Ended
March
31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Cash provided by
(used in) operating activities
|
|
$
|
22,752
|
|
|
$
|
57,378
|
|
|
$
|
(173,119)
|
|
|
$
|
96,666
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(6,190)
|
|
|
|
(12,584)
|
|
|
|
(25,178)
|
|
|
|
(39,834)
|
|
Free cash flow
(use)
|
|
$
|
16,562
|
|
|
$
|
44,794
|
|
|
$
|
(198,297)
|
|
|
$
|
56,832
|
|
View original
content:http://www.prnewswire.com/news-releases/triumph-group-reports-fourth-quarter-fiscal-2021-results-301295570.html
SOURCE Triumph Group