TransDigm Group Reports Record Fiscal 2009 Third Quarter Results
-- Earnings per share up 13.9% to
-- Net sales up 2.1% to
-- Net income up 15.0% to
-- Adjusted earnings per share up 16.0% to
-- EBITDA As Defined up 9.2% to
-- Increase in fiscal 2009 earnings outlook
Net sales for the quarter rose 2.1% to
Net income for the quarter rose 15.0% to
Adjusted net income for the quarter increased 16.3% to
EBITDA for the quarter increased 8.7% to
"We are pleased with our third quarter and year-to-date periods operating
performance in the face of continuing difficult market conditions," stated
As previously reported on
Year-to-Date Results
Net sales for the 39-week period ended
Net income for the 39-week period increased 27.5% to
Adjusted net income for the 39-week period increased 26.9% to
EBITDA for the 39-week period increased 15.4% to
During the 39-week period, the Company purchased 494,100 shares of the
Company's common stock on the open market for approximately
Revision to Fiscal 2009 Outlook
Mr. Howley continued, "The Company is revising full year fiscal 2009 guidance by increasing our earnings range to reflect lower interest and income tax expense as well as the strong margins experienced in the first three quarters of the year, while slightly reducing our revenue expectation. Our organic growth will remain a challenge in this difficult market environment, but the combination of our focused operating strategy and recent acquisitions should allow us to see both organic and acquired growth in our full year earnings."
Based upon current market conditions and assuming no further acquisition activity, the revised guidance is as follows:
-- Revenues are anticipated in the range of $750 million to $758 million
(previously in the range of $750 million to $765 million ) compared
with $714 million in fiscal 2008;
-- Net income is anticipated in the range of $160 million to $163 million
(previously in the range of $152 million to $158 million ) compared
with $133 million in fiscal 2008;
-- EBITDA As Defined is anticipated in the range of $370 million to $374
million (previously in the range of $363 million to $372 million )
compared with $333 million in fiscal 2008;
-- Earnings per share are expected to be in the range of $3.18 to $3.24
per share (previously in the range of $3.01 to $3.13 per share)
compared with $2.65 in fiscal 2008. Weighted-average shares
outstanding are assumed to be 50.4 million; and
-- Adjusted earnings per share are expected to be in the range of $3.36
to $3.42 per share (previously in the range of $3.19 to $3.31 per
share) compared with $2.79 in fiscal 2008.
Please see the attached tables for a reconciliation of net income to EBITDA, EBITDA As Defined, and adjusted net income and a reconciliation of operating cash flow to EBITDA and EBITDA As Defined for the periods discussed in this press release.
Conference Call
About
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.
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, cash flows from operating
activities or other measures of performance determined in accordance with
GAAP. In addition,
Forward-Looking Statements
Statements in this press release that are not historical facts are forward-looking statements under the provisions of the Private Securities Litigation Reform Act of 1995, including expectations of future performance, profitability, growth and earnings. All statements other than statements of historical fact that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements, including, in particular, statements about our plans, objectives, strategies and prospects regarding, among other things, our financial condition, results of operations, and business. We have identified some of these forward-looking statements with words like "believe," "may," "will," "should," "expect," "intend," "plan," "predict," "anticipate," "estimate," or "continue" and other words and terms of similar meaning. Specifically, statements contained under the heading "Revision to Fiscal 2009 Outlook" constitute forward-looking statements.
All forward-looking statements involve risks and uncertainties that could
affect
TRANSDIGM GROUP INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THIRTEEN AND THIRTY-NINE WEEK PERIODS ENDED
JUNE 27, 2009 AND JUNE 28, 2008
(Amounts in thousands, except per share amounts)
(Unaudited)
-------------------------------------------------------------------------
Thirteen Week Thirty-Nine Week
Periods Ended Periods Ended
------------- ----------------
June 27, June 28, June 27, June 28,
2009 2008 2009 2008
-------- -------- -------- --------
NET SALES $189,875 $186,052 $564,198 $524,473
COST OF SALES 82,024 85,570 243,248 241,980
------ ------ ------- -------
GROSS PROFIT 107,851 100,482 320,950 282,493
OPERATING EXPENSES:
Selling and
administrative 19,349 19,317 57,937 55,549
Amortization of
intangibles 3,305 2,747 10,154 8,841
----- ----- ------ -----
Total operating
expenses 22,654 22,064 68,091 64,390
------ ------ ------ ------
INCOME FROM OPERATIONS 85,197 78,418 252,859 218,103
INTEREST EXPENSE - Net 21,226 21,849 64,848 70,371
------ ------ ------ ------
INCOME BEFORE INCOME
TAXES 63,971 56,569 188,011 147,732
INCOME TAX PROVISION 22,583 20,570 66,720 52,595
------ ------ ------ ------
NET INCOME $41,388 $35,999 $121,291 $95,137
======= ======= ======== =======
Net Earnings Per Share:
Basic $0.86 $0.75 $2.51 $2.00
Diluted $0.82 $0.72 $2.41 $1.90
Weighted-Average Shares
Outstanding:
Basic 48,376 48,084 48,411 47,639
Diluted 50,320 50,273 50,356 50,058
TRANSDIGM GROUP INCORPORATED
SUPPLEMENTAL INFORMATION
FOR THE THIRTEEN AND THIRTY-NINE WEEK PERIODS ENDED
JUNE 27, 2009 AND JUNE 28, 2008
(Amounts in thousands)
(Unaudited)
-------------------------------------------------------------------------
Thirteen Week Thirty-Nine Week
Periods Ended Periods Ended
------------- ----------------
June 27, June 28, June 27, June 28,
2009 2008 2009 2008
-------- -------- -------- --------
Net Income $41,388 $35,999 $121,291 $95,137
Depreciation and
amortization 6,741 6,155 20,342 18,649
Interest expense, net 21,226 21,849 64,848 70,371
Income tax provision 22,583 20,570 66,720 52,595
------ ------ ------ ------
EBITDA 91,938 84,573 273,201 236,752
Add: As Defined Adjustments:
Non-cash compensation
and deferred
compensation costs (1) 1,698 1,417 4,487 4,709
Acquisition-related
costs (2) 1,096 765 2,935 2,117
----- --- ----- -----
Gross Adjustments to EBITDA 2,794 2,182 7,422 6,826
----- ----- ----- -----
EBITDA As Defined $94,732 $86,755 $280,623 $243,578
======= ======= ======== ========
EBITDA As Defined Margin (3) 49.9% 46.6% 49.7% 46.4%
(1) Represents the compensation expense recognized by TransDigm Group
under its stock plans and its deferred compensation plans.
(2) Represents costs incurred to integrate acquired businesses into
TransDigm Group's operations and purchase accounting adjustments to
inventory that were charged to cost of sales when the inventory was sold.
(3) The EBITDA As Defined margin represents the amount of EBITDA As
Defined as a percentage of net sales.
TRANSDIGM GROUP INCORPORATED
SUPPLEMENTAL INFORMATION
FOR THE THIRTEEN AND THIRTY-NINE WEEK PERIODS ENDED
JUNE 27, 2009 AND JUNE 28, 2008
(Amounts in thousands, except per share amounts)
(Unaudited)
------------------------------------------------------------------------
Thirteen Week Thirty-Nine Week
Periods Ended Periods Ended
------------- ----------------
June 27, June 28, June 27, June 28,
2009 2008 2009 2008
-------- -------- -------- --------
Net Income $41,388 $35,999 $121,291 $95,137
Gross adjustments to
EBITDA 2,794 2,182 7,422 6,826
Purchase accounting backlog
amortization 673 225 2,305 1,597
Tax adjustment (1,224) (887) (3,453) (2,999)
------ ---- ------ ------
Adjusted Net Income $43,631 $37,519 $127,565 $100,561
======= ======= ======== ========
Basic Earnings per Share $0.86 $0.75 $2.51 $2.00
Diluted Earnings per Share $0.82 $0.72 $2.41 $1.90
Adjusted Basic Earnings
per Share $0.90 $0.78 $2.64 $2.11
Adjusted Diluted Earnings
per Share $0.87 $0.75 $2.53 $2.01
Weighted-Average Shares
Outstanding:
Basic 48,376 48,084 48,411 47,639
Diluted 50,320 50,273 50,356 50,058
TRANSDIGM GROUP INCORPORATED
SUPPLEMENTAL INFORMATION
FOR THE THIRTY-NINE WEEK PERIODS ENDED
JUNE 27, 2009 AND JUNE 28, 2008
(Amounts in thousands)
(Unaudited)
---------------------------------------------------------------------
Thirty-Nine Week Periods Ended
------------------------------
June 27, 2009 June 28, 2008
------------- -------------
Net Cash Provided by Operating
Activities $129,017 $149,920
Adjustments:
Changes in assets and liabilities,
net of effects from acquisitions of
businesses 21,115 (42,804)
Interest expense - net (1) 62,411 68,086
Income tax provision - current 61,561 47,607
Non-cash equity compensation (2) (4,214) (3,088)
Excess tax benefit from exercise of
stock options 3,311 17,031
----- ------
EBITDA 273,201 236,752
Adjustments:
Acquisition-related costs (3) 2,935 2,117
Non-cash compensation and
deferred compensation costs (4) 4,487 4,709
----- -----
EBITDA As Defined $280,623 $243,578
======== ========
(1) Represents interest expense excluding the amortization of debt issue costs and note premium.
(2) Represents the compensation expense recognized by TransDigm Group
under its stock plans.
(3) Represents costs incurred to integrate acquired businesses into
TransDigm Group's operations and purchase accounting adjustments to
inventory that were charged to cost of sales when the inventory was sold.
(4) Represents the compensation expense recognized by TransDigm Group
under its stock plans and its deferred compensation plans.
TRANSDIGM GROUP INCORPORATED
SELECTED BALANCE SHEET DATA
(Amounts in thousands)
(Unaudited)
---------------------------------------------------------
June 27, September 30,
2009 2008
---- ----
Cash and cash equivalents $203,648 $159,062
Trade accounts receivable - net 104,529 96,196
Inventories 157,833 144,114
Accounts payable 19,537 25,140
Accrued liabilities 63,093 63,362
Long-term debt 1,356,878 1,357,230
SOURCE
CONTACT:
Web Site: http://www.transdigm.com