Leading global designer, producer and supplier of highly
engineered aircraft components,
TransDigm Group Incorporated
) reported fourth-quarter fiscal 2013 adjusted earnings per share
of $1.75, which stormed past the Zacks Consensus Estimate of loss
of 18 cents.
Adjusted earnings also improved 1.7% from $1.72 earned in the
prior-year quarter. Adjusted net income for the reported quarter
rose 7.3% to $99.7 million. The increase in adjusted
earnings was partially offset by higher share count in the
However, GAAP net income dropped 4.4% year on year to $84.0
million. GAAP net loss was reported at 20 cents per share, down
from $1.63 per share in the prior-year quarter. This decline was
mainly due to a $95.1 million dividend paid in the quarter and
higher interest expense in the quarter. The company's earnings
were negatively impacted by significant expenses that include
acquisition related costs, certain one-time costs, increased
outstanding borrowings and non-cash compensation costs.
The company reported fiscal 2013 adjusted net income of $380.1
million, or $6.90 per share, up from $359.7 million, or $6.67 per
share, in the comparable period a year ago.
Net sales in the quarter totaled $539.7 million, representing
a year-over-year increase of 16.7%. Organic net sales growth was
up 5.6% from the prior-year period, driven by increase in volumes
from commercial original equipment manufacturer (OEM) and
Growth in acquisitions for the quarter has also increased
driven by positive synergies from the acquisitions of Arkwin,
AmSafe, Aerosonic and Whippany. Revenues also beat the Zacks
Consensus Estimate of $538 million.
The company's fiscal 2013 revenues increased 13.2% to $1,924.4
million from $1,700.2 million in last fiscal. Organic revenues
grew 3.5% in the fiscal.
TransDigm reported Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA) for the quarter at $229.5
million which increased 9.8% from $209.0 million in the
The company's EBITDA in the reported fiscal was up 3.2 % to
$792.7 million versus $768.0 million in the previous fiscal.
Adjusted EBITDA margin was also strong at 46.8%.
Balance Sheet and Cash Flow
Exiting fiscal 2013, TransDigm's cash and cash equivalents
increased to $564.7 million from $440.5 million in the preceding
year. The company's long-term debtincreased 58.4% to $5.7 billion
at the end of fiscal 2013, while the shareholder's deficit came
at $336.4 million.
During the quarter, TransDigm offered $500 million of 7.50%
senior subordinated notes along with the addition of a new loan
that aided the company's special dividend payment of $22.00 per
share in July.
Cash from operating activities in the year was $470.2 million
compared with $413.9 million in fiscal 2012.
expects to reap positive synergies from its three recent
acquisitions and has provided a positive outlook for fiscal 2014.
The company now expects net sales to be in the range of $2.1-$2.2
billion in fiscal 2014 compared to revenues of $1,9 billion in
TransDigm expects fiscal 2014 net income to be in the range of
Additionally, EPS is expected to be in the range of $6.16 to
$6.48 per share after accounting for the increase in the number
of outstanding shares in the quarter. Adjusted earnings per share
are expected to be in the range of $7.00 to $7.32, as compared
with fiscal 2013 earning's of $6.90 per share.
TransDigm currently carries a Zacks Rank #1 (Strong Buy). Some
other stocks in the sector that are worth a look include
Teledyne Technologies Inc.
). While Alliant carries a Zacks Rank #1 (Strong Buy), Hexcel
Corp. and Teledyne Technologies has a Zacks Rank #2 (Buy).
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