Triumph Group Inc. (
reported strong results for the second quarter of 2013 (ended
September 30, 2012) on October 30, 2012.
Earnings per share from continuing operations, excluding $1.4
million of pre-tax integration costs (or 2 cents per diluted
share) and a $2.0 million pre-tax charge (or 2 cents per diluted
share) related to early retirement incentives to certain
employees, increased 36.5% year over year to $1.57 per diluted
share during the reported quarter. Results surpassed the Zacks
Consensus Estimate of $1.32 per share by 18.9%.
However, including integration costs and early retirement
incentives to certain employees, income from continuing
operations was recorded at $80.2 million, or $1.53 per diluted
In the reported quarter, net sales inched up 18.7% year over year
to $938.2 million, most of which is organic growth. Revenue was
9.3% more than the Zacks Consensus Estimate of $858.0
Segment wise, sales from Aerostructures surged to $714.0
million from $588.0 million in the prior-year comparable quarter.
Aerospace Systems revenue grew 12.2% year over year to $150.1
million, while Aftermarket Services increased to $76.1 million
from $70.5 million in the year-ago quarter.
Operating income in the second quarter escalated 31.8% to $142.9
million compared with $108.5 million in the year-ago quarter.
Operating margin increased to 15.2% in the reported quarter from
13.7% in the second-quarter of 2012.
EBITDA jumped 28.9% year over year to $170.3 million in the
quarter while EBIDTA margin rose to 18.2% from 16.7% in the year-
Exiting the second quarter, Triumph's cash and cash equivalents
were approximately $30.7 million compared to $32.0 million at the
end of the previous quarter. Long-term debt (net of current
portion) was down 0.5% to $967.5 million from $972.2 million in
the previous quarter.
Cash provided by operations, before pension contributions, was
recorded at $61.3 million (including pension contribution of
$30.9 million) in the three-month period ended September 30,
2012; up from $5.8 million in the year-ago period. Capital
expenditures in the reported quarter climbed to $24.1 million
from $18.5 million in the three-month period ended September 30,
Increased revenue across segments, operating income growth and
margin expansion look impressive for the upcoming quarters.
Steady backlog, stronger balance sheet and significant cash flow
generation were the added perks.
Based on the above positives, the company reaffirmed the
revenue guidance range of $3.5 to $3.7 billion for fiscal 2013.
Further, management raised its full-year earnings guidance to
approximately $5.95 per diluted share from continuing operations,
excluding integration costs and early retirement incentives.
Initially, earnings per share were projected to be approximately
$5.65, excluding integration costs.
The company faces stiff competition from its peers, such as
AAR Corp. (
United Technologies Corp. (
Triumph Group holds a Zacks #1 Rank, which translates into a
short-term 'Strong Buy' rating (1-3 months).
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