Exhibit 99.1
TRANSDIGM ANNOUNCES UPDATED GUIDANCE FOR FISCAL 2002
Richmond Hts., Ohio, September 24, 2002 -- TransDigm Inc. ("TransDigm" or the
"Company") today updated its guidance for the fiscal year ending September 30,
2002. The Company indicated it now expects full year 2002 sales to exceed $245
million and its EBITDA, As Defined 1, to exceed $95 million. This compares to
$258 million in sales and $88 million of EBITDA, as Defined for the year ended
September 30, 2001 (pro forma for acquisitions in 2001 as though all
acquisitions were completed at the beginning of that year). For the nine-month
period ending June 29, 2002 sales were $181 million and EBITDA, as Defined was
$72 million. This compares to $190 million in sales and $65 million in EBITDA,
as Defined for the nine-month period ended June 29, 2001 (pro forma for
acquisitions in 2001 as though all acquisitions were completed at the beginning
of that year).
The Company is experiencing a less severe drop in its overall markets than it
originally used as a planning basis. Through nine months of fiscal 2002,
excluding any acquisitions made in 2001, and compared to the same nine month
period of the prior year, commercial aftermarket sales are down about 10%;
military sales are up almost 10%; and commercial OEM sales are down by about 20%
- - 30% in both the commercial transport and regional/business jet segment. Profit
margins are generally higher in the military and commercial aftermarket segments
than in the OEM segments.
Commercial aftermarket shipments typically approximate 45% of Company revenues.
Commercial OEM makes up about one-third of the Company's revenues, roughly split
equally between commercial transport OEM revenues and regional/business jet OEM
revenues. Military activity (20-25% revenues) makes up most of the balance.
The Company anticipates that due to the strength of its proprietary products,
its niche market positions and focused value generation strategy it will
continue its historical improvements in key operating parameters in fiscal 2002.
New business orders will be up significantly, due primarily to the over $20
million in orders for cockpit door security mechanisms. Productivity and pricing
performance should approximate historical levels.
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1 EBITDA represents earnings before interest, taxes, depreciation and
amortization. EBITDA, As Defined is calculated by adding to EBITDA the
incremental inventory costs associated with the write up of inventory
required by the purchase accounting treatment applied to the acquisitions
of Champion Aerospace Inc. and a product line. EBITDA, As Defined is
presented herein to provide additional information with respect to the
ability of the Company to satisfy its debt service, capital expenditures
and working capital requirements and because certain types of covenants in
TransDigm's borrowing arrangements are tied to similar measures. While
EBITDA-based measures are frequently used as measures of operations and the
ability to meet debt service requirements, they are not necessarily
comparable to other similarly titled captions of other companies due to
differences in methods of calculation. EBITDA and EBITDA, As Defined are
not measurements of financial performance under accounting principals
generally accepted in the United States of America and should not be
considered as an alternative to cash flow from operating activities, as a
measure of liquidity or an alternative to net income as indicators of the
Company's operating performance or any other measures of performance
derived in accordance with accounting principles generally accepted in the
United States of America.
W. Nicholas Howley, President & Chief Executive Officer, commented: "I am proud
of our Company's performance in this difficult market environment. These results
reconfirm the fundamental strength of our proprietary products; niche market
positions and value focused operating strategy. The upcoming year will bring
with it much uncertainty in the economy, the aerospace industry, and in world
events. However, absent any significant disruptive events, we believe we will
generate higher sales and EBITDA in fiscal 2003 than we did in fiscal 2002."
W. Nicholas Howley will be making a presentation at the Deutsche Bank 2002 High
Yield Conference on Thursday, September 26, 2002.
The matters described in this press release include "forward-looking statements"
made in reliance upon the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 including, in particular, the statements about the
Company's plans, strategies, and prospects. The Company's actual results,
performance or achievements may differ materially from those described in
forward-looking statements. Such statements are based on current expectations of
the Company's performance and are subject to a variety of factors not under the
Company's control, which can affect the Company's results of operations,
liquidity or financial condition and cause actual outcomes or results to be
materially different from those projected. These factors, risks and
uncertainties may include, among other things, the Company's access to capital
markets; the impact of general economic conditions in the regions in which the
Company does business; general industry conditions, including competition and
product, raw material and energy prices; changes in currency rates and currency
values; and capital expenditure requirements.
Because the information herein is based solely on data currently available, it
is subject to change as a result of changes in conditions over which the Company
has no control or influence, and should not therefore be viewed as assurance
regarding the Company's future performance. Additionally, the Company is not
obligated to make public indication of such changes unless required under
applicable disclosure rules and regulations.
TransDigm Inc. is a leading supplier of proprietary, highly engineered power
systems and airframe components servicing the aerospace industry. Major products
include ignition systems components, gear pumps, electromechanical controls,
actuators, batteries/chargers, engineered connectors, latches and lavatory
hardware.
TransDigm is a portfolio company of Odyssey Investment Partners LLC. Odyssey
manages a $760 million private equity fund, which invests in middle market
companies that are primarily focused on manufacturing, aerospace and
transportation and financial services.
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FOR FURTHER INFORMATION:
EILEEN FALLON
TRANSDIGM INC.
216-289-4939