Exhibit 99.1
| Triumph Group, Inc. |
NEWS RELEASE
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| Contact: |
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| John Bartholdson |
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| Senior Vice President, |
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| Chief Financial Officer |
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| Phone (610) 251-1000 |
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| jbartholdson@triumphgroup.com |
TRIUMPH GROUP REPORTS FIRST QUARTER RESULTS
Wayne, PA – July 29, 2004 – Triumph Group, Inc. (NYSE: TGI) reported today that for the first three months of fiscal 2005, net sales from continuing operations were $165.4 million, an eighteen percent increase from last year’s first quarter sales of $140.6 million. Net income for the first quarter of fiscal 2005 was $2.9 million, or $0.18 per common share, versus $7.1 million, or $0.45 per common share, for the first quarter of the prior year. Income from discontinued operations was $0.8 million for the first three months of fiscal 2005. Income from continuing operations for the first quarter of fiscal 2005 was $2.1 million, or $0.13 per common share, compared to $7.6 million, or $0.48 per common share, for the same period in the prior year. During the quarter, the Company generated $17.2 million of cash flow from operating activities. All references to earnings per share herein are on the diluted basis.
Richard C. Ill, Triumph’s President and Chief Executive Officer, said, “While we are encouraged by our strong revenue growth and solid cash flow, earnings for the quarter were disappointing. We continue to experience growth in our aviation markets but are faced with near-term challenges that have increased our expenses and impacted our results by over $3.0 million this quarter. The primary causes related to increases in health care, regulatory and legal costs. The quarter’s results include an operating loss of $4.4 million related to the IGT activities.”
Commenting on the outlook for the year, Mr. Ill stated, “Although we are concerned about the above-mentioned cost increases, we remain optimistic as to our revenue growth and cash flow. Our military and aviation aftermarket businesses continue to grow, and as commercial build rates begin to ramp up and we lower operating costs, we expect that our results will improve.”
Triumph Group, Inc., headquartered in Wayne, Pennsylvania, designs, engineers, manufactures, repairs and overhauls aircraft components and industrial gas turbine components and accessories.
The Company serves a broad, worldwide spectrum of the aviation industry, including commercial airlines and air cargo carriers, as well as original equipment manufacturers of aircraft and aircraft components and power generation equipment.
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More information about Triumph can be found on the Internet at http://www.triumphgroup.com.
Statements in this that are not historical facts are forward-looking statements under the Private Securities Litigation Reform Act of 1995. 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’s reports filed with the SEC, including our Form 10-K for the fiscal year ended March 31, 2004.
FINANCIAL DATA (UNAUDITED) ON FOLLOWING 3 PAGES
FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(in thousands, except per share data)
CONDENSED STATEMENTS OF INCOME
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| Three Months Ended |
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| 2004 |
| 2003 |
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Net Sales |
| $ | 165,353 |
| $ | 140,629 |
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Operating Income |
| 6,447 |
| 14,673 |
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Interest Expense and Other |
| 3,257 |
| 2,833 |
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Income Tax Expense |
| 1,085 |
| 4,203 |
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Income from Continuing Operations |
| 2,105 |
| 7,637 |
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Income (Loss) from Discontinued Operations |
| 754 |
| (557 | ) | ||
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Net Income |
| $ | 2,859 |
| $ | 7,080 |
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Earnings Per Share - Basic: |
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Income from Continuing Operations |
| $ | 0.13 |
| $ | 0.48 |
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Income (Loss) from Discontinued Operations |
| $ | 0.05 |
| $ | (0.04 | ) |
Net Income |
| $ | 0.18 |
| $ | 0.45 | * |
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Weighted average common shares outstanding - Basic |
| 15,860 |
| 15,835 |
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Earnings Per Share - Diluted: |
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Income from Continuing Operations |
| $ | 0.13 |
| $ | 0.48 |
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Income (Loss) from Discontinued Operations |
| $ | 0.05 |
| $ | (0.04 | ) |
Net Income |
| $ | 0.18 |
| $ | 0.45 | * |
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Weighted average common shares outstanding - Diluted |
| 15,935 |
| 15,883 |
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* Difference due to rounding. |
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OTHER SELECTED INFORMATION |
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Continuing Operations: |
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Depreciation and Amortization |
| $ | 7,571 |
| $ | 6,479 |
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Capital Expenditures |
| $ | 2,974 |
| $ | 7,211 |
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FINANCIAL DATA (UNAUDITED)
TRIUMPH GROUP, INC. AND SUBSIDIARIES
(in thousands)
BALANCE SHEET
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| June 30, |
| March 31, |
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Assets |
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Cash |
| $ | 6,568 |
| $ | 6,766 |
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Accounts Receivable, net |
| 111,448 |
| 122,273 |
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Inventory |
| 207,490 |
| 206,751 |
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Assets held for sale |
| 28,503 |
| 28,296 |
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Income Tax Refund Receivable |
| 3,934 |
| 8,829 |
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Prepaid Expenses and Other |
| 3,633 |
| 3,801 |
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Current Assets |
| 361,576 |
| 376,716 |
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Property and Equipment, net |
| 244,943 |
| 248,626 |
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Goodwill |
| 269,090 |
| 267,621 |
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Intangible Assets, net |
| 26,448 |
| 27,514 |
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Other |
| 16,336 |
| 15,371 |
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Total Assets |
| $ | 918,393 |
| $ | 935,848 |
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Liabilities & Stockholders’ Equity |
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Accounts Payable |
| $ | 50,669 |
| $ | 55,259 |
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Accrued Expenses |
| 46,539 |
| 49,771 |
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Liabilities related to assets held for sale |
| 8,938 |
| 8,809 |
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Income Taxes Payable |
| 2,453 |
| 1,533 |
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Deferred Income Taxes |
| 1,444 |
| 1,444 |
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Current Portion of Long-Term Debt |
| 4,687 |
| 4,884 |
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Current Liabilities |
| 114,730 |
| 121,700 |
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Long-Term Debt, less current portion |
| 207,585 |
| 220,963 |
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Deferred Income Taxes and Other |
| 78,193 |
| 78,069 |
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Stockholders’ Equity: |
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Common Stock, $.001 par value, 50,000,000 shares authorized, 16,027,324 shares issued |
| 16 |
| 16 |
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Capital in excess of par value |
| 259,322 |
| 259,322 |
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Treasury Stock, at cost, 167,260 shares |
| (4,152 | ) | (4,152 | ) | ||
Accumulated other comprehensive income |
| 1,318 |
| 1,408 |
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Retained earnings |
| 261,381 |
| 258,522 |
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Total Stockholders’ Equity |
| 517,885 |
| 515,116 |
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Total Liabilities and Stockholders’ Equity |
| $ | 918,393 |
| $ | 935,848 |
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Non-GAAP Financial Measure Disclosures
Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) for the three months ended June 30, 2004 was $14.0 million with a margin of 8.5%. EBITDA for the three months ended June 30, 2003 was $21.2 million with a margin of 15.0%.
Management believes that EBITDA provides investors with an important perspective on the current underlying performance of the business by identifying non-cash expenses, interest and taxes included in income from continuing operations.
The following definition is provided for the non-GAAP financial measure identified above, together with a reconciliation of such non-GAAP financial measure to the most directly comparable financial measure calculated and presented in accordance with GAAP.
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| Three Months Ended |
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| 2004 |
| 2003 |
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Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA): |
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Income from Continuing Operations |
| 2,105 |
| 7,637 |
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Add-back: |
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Income Tax Expense |
| 1,085 |
| 4,203 |
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Interest Expense and Other |
| 3,257 |
| 2,833 |
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Depreciation and Amortization |
| 7,571 |
| 6,479 |
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Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) |
| 14,018 |
| 21,152 |
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Net Sales |
| 165,353 |
| 140,629 |
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EBITDA Margin |
| 8.5 | % | 15.0 | % |
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