TGI Triumph Group Inc

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 07, 2023

 

 

TRIUMPH GROUP, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware			1-12235	51-0347963
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
555 E Lancaster Avenue Suite 400
Radnor, Pennsylvania				19087
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 610 251-1000

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $.001 per share		TGI		New York Stock Exchange LLC
Purchase rights		N/A		New York Stock Exchange LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

---

 

Item 2.02 Results of Operations and Financial Condition.

On November 7, 2023, Triumph Group, Inc. issued a press release announcing its financial results for the second quarter of the fiscal year ending March 31, 2024 and conducted a conference call to further discuss the financial results. The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit No.		Description
99.1		Press release dated November 7, 2023
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

---

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			Triumph Group, Inc.
Date:	November 7, 2023	By:	/s/ Thomas A. Quigley, III
			Thomas A. Quigley, III, Vice President, Investor Relations, Mergers & Acquisitions, and Treasurer

 

 

---

Exhibit 99.1

 

 

 

NEWS RELEASE

 

Contact: April Harper Director, Marketing & Communications Phone (610) 251-1000 aharper@triumphgroup.com			Thomas A. Quigley, III VP, Investor Relations, Mergers & Acquisition and Treasurer Phone (610) 251-1000 tquigley@triumphgroup.com

 

TRIUMPH REPORTS SECOND QUARTER FISCAL 2024 RESULTS

RAISING NET SALES, EARNINGS AND CASH FLOW GUIDANCE

RADNOR, Pa. – November 7, 2023 – Triumph Group, Inc. (NYSE: TGI) ("TRIUMPH" or the “Company”) today reported financial results for its second quarter of fiscal 2024, which ended September 30, 2023.

 

Second Quarter Fiscal 2024

 

Fiscal 2024 Guidance

 

“TRIUMPH generated its sixth consecutive quarter of year over year organic sales growth driven by continued strong commercial aftermarket demand," said Dan Crowley, TRIUMPH’s chairman, president, and chief executive officer. “Free cash use was in line with our expectations. We continue to expect free cash flow to improve over the course of the year, as the first half working capital build supports our higher second half deliveries. Backlog is at its highest level since March 2020 and TRIUMPH is well positioned to continue to grow organically and improve profitability, while also benefiting from the positive trends across our end markets.”

 

Mr. Crowley continued, "As TRIUMPH focuses on generating free cash flow and deleveraging, we recently redeemed $45 million of our 2025 bonds reducing leverage and interest expense. TRIUMPH remains on track to deliver profitable growth and we are raising our full year guidance as we continue to execute on our financial and operational goals.”

 

 

 

---

Second Quarter Fiscal 2024 Overview

 

		Three Months Ended September 30,
($ in millions)		2023				2022
Commercial OEM		$	131.0			$	127.8
Military OEM			61.1				61.4
Total OEM Revenue			192.0				189.3
Commercial Aftermarket			96.4				65.1
Military Aftermarket			55.8				45.0
Total Aftermarket Revenue			152.2				110.0
Non-Aviation Revenue			9.2				7.4
Amortization of acquired contract liabilities			0.6				0.9
Total Net Sales*		$	354.1			$	307.6
* Differences due to rounding
Note> Aftermarket sales include both repair & overhaul services and spare parts sales.

 

Excluding impacts from divestitures and exited or sunsetting programs, organic Commercial OEM sales increased $5.6 million, or 4.5% primarily on production volumes on Boeing 787 and 737 programs, partially offset by a nonrecurring intellectual property transaction recognized in the prior year.

 

Military OEM sales were largely consistent with the year ago quarter.

Commercial Aftermarket sales increased $31.4 million, or 48.2% driven by the continued improvement in overall air travel metrics, favorably impacting both repair and overhaul services and spare part sales on an equal basis.

Military aftermarket sales increased $10.8 million, or 24.0%, all of which was organic, driven by increased sales across several fixed wing platforms and increased repairs on rotorcraft platforms.

Second quarter operating income of $34.3 million includes $1.9 million of restructuring costs and a $0.4 million true-up of the gain on sale of assets and businesses. Net loss for the second quarter of 2024 was ($1.3) million or ($0.02) per share and includes $0.7 million in debt extinguishment gain.

 

TRIUMPH's results included the following:

($ millions except EPS)		Pre-tax				After-tax				Diluted EPS
Loss from Continuing Operations - GAAP		$	0.4			$	(1.3	)		$	(0.02	)
Adjustments
Loss on sale of assets and businesses, net			(0.4	)			(0.4	)			(0.01	)
Legal judgment loss			1.3				1.3				0.02
Restructuring costs			1.9				1.9				0.03
Debt extinguishment gain			(0.7	)			(0.7	)			(0.01	)
Adjusted Income from Continuing Operations - non-GAAP		$	2.6			$	0.9			$	0.01

 

The number of shares used in computing diluted income per share for the second quarter of 2024 was 76.6 million.

 

Backlog, which represents the next 24 months of actual purchase orders with firm delivery dates or contract requirements, was $1.82 billion, up 15% from prior fiscal year end. This increase was primarily on commercial OEM platforms.

 

For the second quarter of fiscal 2024, cash flow used in operations was ($32.2) million, which was in line with expectations previously provided and reflects semi-annual interest payments and increased working capital to support higher fiscal 2024 deliveries.

 

 

---

Conference Call

TRIUMPH will hold a conference call today, November 7th, at 8:30 a.m. (ET) to discuss the second quarter of fiscal 2024 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 https://www.triumphgroup.com/filings-financial/quarterly-results. An audio replay will be available from August 2nd to August 9th by calling (844) 344-7529 (Domestic) or (412) 317-0088 (International), passcode #4433038.

 

About TRIUMPH

TRIUMPH, headquartered in Radnor, Pennsylvania, designs, develops, manufactures, repairs and overhauls a broad portfolio of aerospace and defense systems and components. 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, operational efficiencies and organizational restructurings and our evaluation of potential adjustments to reported amounts, as described above. 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, 2023.

FINANCIAL DATA (UNAUDITED) ON FOLLOWING PAGES

 

 

---

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(in thousands, except per share data)

 

		Three Months Ended								Six Months Ended
		September 30,								September 30,
CONDENSED STATEMENTS OF OPERATIONS		2023				2022				2023				2022
Net sales		$	354,061			$	307,600			$	681,206			$	656,984
Cost of sales (excluding depreciation shown below)			261,392				208,062				502,125				480,462
Selling, general & administrative			47,478				60,418				103,131				112,163
Depreciation & amortization			8,042				8,685				16,160				18,491
Legal judgment loss			1,338				—				1,338				—
Restructuring costs			1,942				2,152				1,942				2,851
(Gain) loss on sale of assets and businesses, net			(409	)			(103,883	)			12,208				(103,883	)
Operating income			34,278				132,166				44,302				146,900
Interest expense and other, net			35,884				32,453				74,533				64,365
Debt modification and extinguishment gain			(688	)			—				(4,079	)			—
Warrant remeasurement gain			(544	)			—				(8,545	)			—
Non-service defined benefit income			(820	)			(8,563	)			(1,640	)			(17,149	)
Income tax expense			1,742				1,750				3,492				3,500
Net (loss) income		$	(1,296	)		$	106,526			$	(19,459	)		$	96,184
(Loss) earnings per share - basic:
Net (loss) income		$	(0.02	)		$	1.64			$	(0.27	)		$	1.48
Weighted average common shares outstanding - basic			76,447				65,036				71,368				64,946
(Loss) earnings per share - diluted:
Net (loss) income		$	(0.02	)		$	1.63			$	(0.27	)		$	1.47
Weighted average common shares outstanding - diluted			76,447				65,282				71,368				65,318

 

 

 

---

(Continued)

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands, except share data)

 

BALANCE SHEETS		Unaudited September 30, 2023				Audited March 31, 2023
Assets
Cash and cash equivalents		$	169,885			$	227,403
Accounts receivable, net			164,928				196,775
Contract assets			109,351				103,027
Inventory, net			434,381				389,245
Prepaid and other current assets			18,652				17,062
Current assets			897,197				933,512
Property and equipment, net			166,600				166,800
Goodwill			508,415				509,449
Intangible assets, net			69,434				73,898
Other, net			31,486				31,185
Total assets		$	1,673,132			$	1,714,844
Liabilities & Stockholders' Deficit
Current portion of long-term debt		$	3,108			$	3,162
Accounts payable			154,955				197,932
Contract liabilities			39,773				44,482
Accrued expenses			116,791				151,348
Current liabilities			314,627				396,924
Long-term debt, less current portion			1,655,989				1,688,620
Accrued pension and post-retirement benefits, noncurrent			307,840				359,375
Deferred income taxes, noncurrent			7,268				7,268
Other noncurrent liabilities			55,624				60,053
Stockholders' Deficit:
Common stock, $.001 par value, 200,000,000 and 100,000,000 shares authorized, 76,835,661 and 65,432,589 shares issued and outstanding			77				65
Capital in excess of par value			1,105,673				964,741
Accumulated other comprehensive loss			(546,951	)			(554,646	)
Accumulated deficit			(1,227,015	)			(1,207,556	)
Total stockholders' deficit			(668,216	)			(797,396	)
Total liabilities and stockholders' deficit		$	1,673,132			$	1,714,844

 

 

 

---

(Continued)

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)

 

		Six Months Ended September 30,
		2023				2022
Operating Activities
Net (loss) income		$	(19,459	)		$	96,184
Adjustments to reconcile net (loss) income to net cash used in    operating activities:
Depreciation and amortization			16,160				18,491
Amortization of acquired contract liability			(1,165	)			(1,390	)
Loss (gain) on sale of assets and businesses			12,208				(103,883	)
Gain on modification and extinguishment of debt			(4,079	)			—
Other amortization included in interest expense			2,980				3,140
Provision for credit losses			781				383
Warrants remeasurement gain			(8,532	)			—
Share-based compensation			7,346				5,530
Changes in other assets and liabilities, excluding the effects of    acquisitions and divestitures:
Trade and other receivables			22,131				(5,799	)
Contract assets			(6,426	)			(10,910	)
Inventories			(45,394	)			(39,324	)
Prepaid expenses and other current assets			(1,028	)			756
Accounts payable, accrued expenses, and contract liabilities			(69,795	)			(58,487	)
Accrued pension and other postretirement benefits			(2,386	)			(17,073	)
Other, net			713				6
Net cash used in operating activities			(95,945	)			(112,376	)
Investing Activities
Capital expenditures			(11,028	)			(7,167	)
Payments on sale of assets and businesses			(6,785	)			(6,161	)
Investment in joint venture			(1,527	)			—
Net cash used in investing activities			(19,340	)			(13,328	)
Financing Activities
Proceeds from issuance of long-term debt			2,000				—
Retirement of debt and finance lease obligations			(19,865	)			(1,809	)
Payment of deferred financing costs			(1,578	)			—
Proceeds on issuance of common stock, net of issuance costs			79,961				—
Repurchase of shares for share-based compensation    minimum tax obligation			(1,282	)			(3,490	)
Net cash provided by (used in) financing activities			59,236				(5,299	)
Effect of exchange rate changes on cash			(1,469	)			(5,425	)
Net change in cash and cash equivalents			(57,518	)			(136,428	)
Cash and cash equivalents at beginning of period			227,403				240,878
Cash and cash equivalents at end of period		$	169,885			$	104,450

 

 

 

---

(CONTINUED)

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)

 

		Three Months Ended								Six Months Ended
		September 30,								September 30,
SEGMENT DATA		2023				2022				2023				2022
Net sales:
Systems & Support		$	318,795			$	274,198			$	609,370			$	528,841
Interiors			35,293				33,410				71,876				128,163
Elimination of inter-segment sales			(27	)			(8	)			(40	)			(20	)
		$	354,061			$	307,600			$	681,206			$	656,984
Operating income (loss):
Systems & Support		$	54,639			$	43,413			$	100,423			$	76,564
Interiors			(3,348	)			5,924				(5,924	)			3,623
Corporate			(13,289	)			86,781				(42,851	)			72,243
Share-based compensation expense			(3,724	)			(3,952	)			(7,346	)			(5,530	)
		$	34,278			$	132,166			$	44,302			$	146,900
Operating margin %
Systems & Support			17.1	%			15.8	%			16.5	%			14.5	%
Interiors			(9.5	%)			17.7	%			(8.2	%)			2.8	%
Consolidated			9.7	%			43.0	%			6.5	%			22.4	%
Depreciation and amortization^:
Systems & Support		$	6,953			$	7,507			$	13,893			$	15,028
Interiors			644				672				1,327				2,368
Corporate			445				506				940				1,095
		$	8,042			$	8,685			$	16,160			$	18,491
Amortization of acquired contract liabilities:
Systems & Support		$	(590	)		$	(867	)		$	(1,165	)		$	(1,390	)
		$	(590	)		$	(867	)		$	(1,165	)		$	(1,390	)

 

 

 

 

---

(Continued)

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC, AND SUBSIDIARES

(dollars in thousands)

 

Non-GAAP Financial Measure Disclosures

We prepare and publicly release annual audited and quarterly unaudited financial statements prepared in accordance with U.S. GAAP. In accordance with Securities and Exchange Commission (the "SEC") rules, we also disclose and discuss certain non-GAAP financial measures in our public filings and earning releases. Currently, the non-GAAP financial measures that we disclose are Adjusted EBITDA, which is our net income (loss) before interest and gains or losses on debt extinguishment, income taxes, amortization of acquired contract liabilities, consideration payable to customer related to divestitures, legal judgments and settlements, gains/loss on divestitures, gains/losses on warrant remeasurements and warrant-related transaction costs, share-based compensation expense, depreciation and amortization (including impairment of long-lived assets), other non-recurring impairments, and the effects of certain pension charges such as curtailments, settlements, withdrawals, and other early retirement incentives; and Adjusted EBITDAP, which is Adjusted EBITDA, before pension expense or benefit (excluding pension charges already adjusted in Adjusted EBITDA). We disclose Adjusted EBITDA on a consolidated and Adjusted EBITDAP on a consolidated and a reportable 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 with our previously reported results of operations.

 

We view Adjusted EBITDA and Adjusted EBITDAP as operating performance measures and, as such, we believe that the U.S. GAAP financial measure most directly comparable to such measures is net income (loss). In calculating Adjusted EBITDA and Adjusted EBITDAP, we exclude from net income (loss) 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 U.S. GAAP and should not be considered as a measure of liquidity, as an alternative to net income (loss), or as an indicator of any other measure of performance derived in accordance with U.S. GAAP. Investors and potential investors in our securities should not rely on Adjusted EBITDA or Adjusted EBITDAP as a substitute for any U.S. GAAP financial measure, including net income (loss). 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 (loss) set forth below, in our earnings releases, and in other filings with the SEC and to carefully review the U.S. 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 U.S. GAAP financial information with our Adjusted EBITDA and Adjusted EBITDAP.

 

Adjusted EBITDA and Adjusted EBITDAP are 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 U.S. 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 (loss) 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 are measures of our ongoing operating performance because the isolation of noncash charges, such as depreciation and amortization, and nonoperating items, such as interest, income taxes, pension and other postretirement benefits, 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 financial measures by which to compare our operating performance against that of other companies in our industry.

 

 

 

---

(Continued)

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)

 

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 these non-GAAP financial measures as compared with net income from continuing operations:

 

 

---

(Continued)

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)

 

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.

 

The following table shows our Adjusted EBITDA and Adjusted EBITDAP reconciled to our net income for the indicated periods (in thousands):

		Three Months Ended								Six Months Ended
		September 30,								September 30,
Adjusted Earnings before Interest, Taxes, Depreciation, Amortization, and Pension (Adjusted EBITDAP):		2023				2022				2023				2022
Net (loss) income		$	(1,296	)		$	106,526			$	(19,459	)		$	96,184
Add-back:
Income tax expense			1,742				1,750				3,492				3,500
Interest expense and other, net			35,884				32,453				74,533				64,365
Debt modification and extinguishment gain			(688	)			—				(4,079	)			—
Warrant remeasurement gain			(544	)			—				(8,545	)			—
Legal judgment loss			1,338				—				1,338				—
Consideration payable to customer related to divestiture			—				—				—				17,185
Shareholder cooperation expenses			—				—				1,905				—
(Gain) loss on sales of assets and businesses, net			(409	)			(103,883	)			12,208				(103,883	)
Share-based compensation			3,724				3,952				7,346				5,530
Amortization of acquired contract liabilities			(590	)			(867	)			(1,165	)			(1,390	)
Depreciation and amortization			8,042				8,685				16,160				18,491
Adjusted Earnings before Interest, Taxes, Depreciation    and Amortization ("Adjusted EBITDA")		$	47,203			$	48,616			$	83,734			$	99,982
Non-service defined benefit income (excluding settlements)			(820	)			(8,563	)			(1,640	)			(17,149	)
Adjusted Earnings before Interest, Taxes, Depreciation    and Amortization, and Pension ("Adjusted EBITDAP")		$	46,383			$	40,053			$	82,094			$	82,833
Net sales		$	354,061			$	307,600			$	681,206			$	656,984
Net (loss) income margin			(0.4	%)			34.6	%			(2.9	%)			14.6	%
Adjusted EBITDAP margin			13.1	%			13.1	%			12.1	%			12.3	%

 

 

 

 

---

(Continued)

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)

 

		Three Months Ended September 30, 2023
						Segment Data
Adjusted Earnings before Interest, Taxes, Depreciation, Amortization, and Pension (EBITDAP):		Total				Systems & Support				Interiors				Corporate/ Eliminations*
Net loss		$	(1,296	)
Add-back:
Non-service defined benefit income			(820	)
Income tax expense			1,742
Warrant remeasurement gain			(544	)
Debt extinguishment losses			(688	)
Interest expense and other, net			35,884
Operating income (loss)		$	34,278			$	54,639			$	(3,348	)		$	(17,013	)
Gain on sales of assets & businesses, net			(409	)			—				—				(409	)
Legal judgment loss			1,338				—				—				1,338
Share-based compensation			3,724				—				—				3,724
Amortization of acquired contract liabilities			(590	)			(590	)			—				—
Depreciation and amortization			8,042				6,953				644				445
Adjusted Earnings (Losses) before Interest, Taxes,    Depreciation and Amortization, and Pension    ("Adjusted EBITDAP")		$	46,383			$	61,002			$	(2,704	)		$	(11,915	)
Net sales		$	354,061			$	318,795			$	35,293			$	(27	)
Adjusted EBITDAP margin			13.1	%			19.2	%			(7.7	%)		n/a

 

 

		Six Months Ended September 30, 2023
						Segment Data
Adjusted Earnings before Interest, Taxes, Depreciation, Amortization, and Pension (EBITDAP):		Total				Systems & Support				Interiors				Corporate/ Eliminations*
Net loss		$	(19,459	)
Add-back:
Non-service defined benefit income			(1,640	)
Income tax expense			3,492
Warrant remeasurement gain, net			(8,545	)
Debt extinguishment losses			(4,079	)
Interest expense and other, net			74,533
Operating income (loss)		$	44,302			$	100,423			$	(5,924	)		$	(50,197	)
Loss on sales of assets & businesses, net			12,208				—				—				12,208
Shareholder cooperation expenses			1,905				—				—				1,905
Legal judgment loss			1,338				—				—				1,338
Share-based compensation			7,346				—				—				7,346
Amortization of acquired contract liabilities			(1,165	)			(1,165	)			—				—
Depreciation and amortization			16,160				13,893				1,327				940
Adjusted Earnings (Losses) before Interest, Taxes,    Depreciation and Amortization, and Pension    ("Adjusted EBITDAP")		$	82,094			$	113,151			$	(4,597	)		$	(26,460	)
Net sales		$	681,206			$	609,370			$	71,876			$	(40	)
Adjusted EBITDAP margin			12.1	%			18.6	%			(6.4	%)		n/a

 

 

 

---

(Continued)

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES

(dollars in thousands)

		Three Months Ended September 30, 2022
						Segment Data
Adjusted Earnings before Interest, Taxes, Depreciation, Amortization, and Pension (EBITDAP):		Total				Systems & Support				Interiors				Corporate/ Eliminations*
Net income		$	106,526
Add-back:
Non-service defined benefit income			(8,563	)
Income tax expense			1,750
Interest expense and other, net			32,453
Operating income		$	132,166			$	43,413			$	5,924			$	82,829
Gain on sales of assets & businesses, net			(103,883	)			—				—				(103,883	)
Share-based compensation			3,952				—				—				3,952
Amortization of acquired contract liabilities			(867	)			(867	)			—				—
Depreciation and amortization			8,685				7,507				672				506
Adjusted Earnings (Losses) before Interest, Taxes,    Depreciation and Amortization, and Pension    ("Adjusted EBITDAP")		$	40,053			$	50,053			$	6,596			$	(16,596	)
Net sales		$	307,600			$	274,198			$	33,410			$	(8	)
Adjusted EBITDAP margin			13.1	%			18.3	%			19.7	%		n/a

 

 

		Six Months Ended September 30, 2022
						Segment Data
Adjusted Earnings before Interest, Taxes, Depreciation, Amortization, and Pension (EBITDAP):		Total				Systems & Support				Interiors				Corporate/ Eliminations*
Net income		$	96,184
Add-back:
Non-service defined benefit income			(17,149	)
Income tax expense			3,500
Interest expense and other, net			64,365
Operating income		$	146,900			$	76,564			$	3,623			$	66,713
Gain on sales of assets & businesses, net			(103,883	)			—				—				(103,883	)
Consideration payable to customer related to divestiture			17,185				—				17,185				—
Share-based compensation			5,530				—				—				5,530
Amortization of acquired contract liabilities			(1,390	)			(1,390	)			—				—
Depreciation and amortization			18,491				15,028				2,368				1,095
Adjusted Earnings (Losses) before Interest, Taxes,    Depreciation and Amortization, and Pension    ("Adjusted EBITDAP")		$	82,833			$	90,202			$	23,176			$	(30,545	)
Net sales		$	656,984			$	528,841			$	128,163			$	(20	)
Adjusted EBITDAP margin			12.3	%			17.1	%			15.9	%		n/a

 

 

 

 

---

(Continued)

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)

 

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 September 30, 2023
(amounts in 000s, except per share amounts)		Pre-Tax				After-Tax				Diluted EPS
Income from continuing operations - GAAP		$	446			$	(1,296	)		$	(0.02	)
Adjustments:
Legal judgment			1,338				1,338				0.02
Gain on sale of assets and businesses, net			(409	)			(409	)			(0.01	)
Restructuring costs			1,942				1,942				0.03
Debt modification and extinguishment gain			(688	)			(688	)			(0.01	)
Adjusted income from continuing operations - non-GAAP		$	2,629			$	887			$	0.01

 

		Six Months Ended September 30, 2023
		Pre-Tax				After-Tax				Diluted EPS
Loss from continuing operations - GAAP		$	(15,967	)		$	(19,459	)		$	(0.27	)
Adjustments:
Loss on sale of assets and businesses, net			12,208				12,208				0.17
Restructuring costs			1,942				1,942				0.03
Shareholder cooperation expenses			1,905				1,905				0.03
Debt extinguishment losses			(4,079	)			(4,079	)			(0.06	)
Legal judgment			1,338				1,338				0.02
											-
Adjusted loss from continuing operations - non-GAAP*		$	(2,653	)		$	(6,145	)		$	(0.09	)

 

 

 

 

---

(Continued)

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)

 

		Three Months Ended September 30, 2022
		Pre-Tax				After-Tax				Diluted EPS
Income from continuing operations - GAAP		$	108,276			$	106,526			$	1.63
Adjustments:
Gain on sale of assets and businesses, net			(103,883	)			(103,883	)			(1.59	)
Restructuring costs (cash based)			2,152				2,152				0.03
Adjusted income from continuing operations - non-GAAP*		$	6,545			$	4,795				0.07
*Difference due to rounding.

 

		Six Months Ended September 30, 2022
		Pre-Tax				After-Tax				Diluted EPS
Income from continuing operations - GAAP		$	99,684			$	96,184			$	1.47
Adjustments:
Income on sale of assets and businesses, net			(103,883	)			(103,883	)			(1.59	)
Restructuring costs (cash based)			2,851				2,851				0.04
Consideration payable to customer related to divestiture^			17,185				17,185				0.26
Adjusted income from continuing operations - non-GAAP*		$	15,837			$	12,337			$	0.19
*Difference due to rounding.
^Recorded in net sales.

 

Non-GAAP Financial Measure Disclosures (continued)

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 September 30,								Six Months Ended September 30,
		2023				2022				2023				2022
Operating income - GAAP		$	34,278			$	132,166			$	44,302			$	146,900
Adjustments:
(Gain) loss on sale of assets and businesses, net			(409	)			(103,883	)			12,208				(103,883	)
Legal judgment loss			1,338				—				1,338				—
Restructuring costs (cash based)			1,942				2,152				1,942				2,851
Shareholder cooperation expenses			—				—				1,905				—
Consideration payable to customer related to divestiture			—				—				—				17,185
Adjusted operating income - non-GAAP		$	37,149			$	30,435			$	61,695			$	63,053
Adjusted operating margin - non-GAAP			10.5	%			9.9	%			9.1	%			9.4	%

 

 

 

---

(Continued)

FINANCIAL DATA (UNAUDITED)

TRIUMPH GROUP, INC. AND SUBSIDIARIES
(dollars in thousands)

 

		Fiscal 2024
($ in millions)		Guidance
Operating Income		$152.0 - $167.0
Adjustments:
Loss on sale of assets and businesses		$13.0
Shareholder cooperation expenses		$2.0
Legal judgment loss		$2.0
Restructuring costs (cash based)		$2.0
Depreciation & Amortization		$38.0
Amortization of acquired contract liabilities		($3.0)
Share-based compensation		$10.0
Adjusted EBITDAP - non-GAAP		$216.0 - $231.0

 

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 September 30,								Six Months Ended September 30,								Fiscal 2024 Guidance
$ in millions		2023				2022				2023				2022
Cash used in operating activities		$	(32.2	)		$	(19.4	)		$	(95.9	)		$	(112.4	)		$ 65.0 - $ 85.0
Less:
Capital expenditures			(4.6	)			(4.2	)			(11.0	)			(7.2	)		$ (25.0) - $ (30.0)
Free cash use*		$	(36.8	)		$	(23.5	)		$	(107.0	)		$	(119.5	)		$ 40.0 - $ 55.0
* Differences due to rounding

 

---

v3.23.3

Document And Entity Information	Nov. 07, 2023
Document And Entity Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 07, 2023
Securities Act File Number	1-12235
Entity Registrant Name	TRIUMPH GROUP, INC.
Entity Central Index Key	0001021162
Entity Tax Identification Number	51-0347963
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	555 E Lancaster Avenue
Entity Address, Address Line Two	Suite 400
Entity Address, City or Town	Radnor
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19087
City Area Code	610
Local Phone Number	251-1000
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Stock [Member]
Document And Entity Information [Line Items]
Security 12b Title	Common Stock, par value $.001 per share
Trading Symbol	TGI
Security Exchange Name	NYSE
Purchase Rights [Member]
Document And Entity Information [Line Items]
Security 12b Title	Purchase rights
No Trading Symbol Flag	true
Security Exchange Name	NYSE

---