TGI - Earnings call transcript Q3 2022

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Triumph Group Conference Call to discuss our Third Quarter Fiscal Year 2022 Results. This call is being carried live on the internet. There is also a slide presentation included with the audio portion of the webcast. Please ensure that your pop-up blockers disabled, if you're having trouble viewing the slide presentation.

a in currently are listen-only mode. You be by management. will a question-and-answer comments introductory the following session There On the the following behalf to statement. like of company, I now would read the call There Act Reform forward-looking on certain XXXX. the this are statements Securities statements of within meaning Litigation of Private constitute in which achievements future statements forward-looking implied to expressed different any expected factors, be performance and Triumph's or actual or uncertainties and unknown materially forward-looking These cause risks, results results achievements known other involve statements. may the performance or from note that reconciliation be www.triumphgroup.com. company's release in the to at comparable of can measures Please the non-GAAP GAAP found which included website financial on their measures is press

In like Chairman and Inc. McCabe President written J. without Crowley. addition of explicit Jr., company's call not to property ahead, Crowley, At Vice Financial the or Go a Triumph Group, and Officer time, this James introduce rebroadcast please approval. Group, and F. Inc. Senior Daniel of Chief Mr. Triumph I'd note be this Chief is may recorded, Officer; Executive and transcribed,

Daniel Crowley

Earlier improving our Thank Triumph for everyone in fiscal generated most QX encouraging flow It's improving recently core call. cash reopening cases and to signaling XXXX. with see welcome margins third our COVID Australia, quarter an you, results earnings and to coming industry. including reported Triumph's our down, segment. Tom, today, year and we borders outlook support for positive free systems

in our against company. plan deliver a environment. to strategic a continues emerging team new Triumph challenging Our is as

over accelerating and and our the We as leading sale we've of structures in Florida In exited for XXX some is We major fiscal objectives on company. Aerostructures of plan. the in Slide year-to-date our summarize the Stuart, our focus We're the highlights. growth are the our orders transformation business. new is And last is production a large a our and focused billion last Triumph. out systems the winning meeting in quarter's recently aftermarket of paying X the facilities across and milestone meeting off. secured exit On play targets company Stuart announced full-year portfolio per company. laid I our facility a X, on the organic

million cash working and operations free capital. margin events flow yielded Cost lean generated improving mix as programmatic of Systems more and segment. favorable $X a we retirement EBITDAP driven risks reductions, by Support & First, XX% reduced as well in our of sales a

early by of flat due platforms, many the As by our OEM order declined commercial short-term deferrals though experienced partially sales returning to offset on as Triumph, military is orders. supply to organic And supply recovery MRO The slightly fiscal last, wide-body and temporary in expected peers, we lessened mitigate spot chain to to have affordability. and continuity our our the abate constraints ensure partner actions XXXX. impact with in our customers on

up covers XXX and increase. the a context environment. are how Airbus combined are from projected Jim Boeing XXXX, of deliveries to positioning I'd delivered quarter's on In Triumph macro aircraft, rise. are XXXX. we X,XXX Before the XX% on total XX% the aircraft aircraft deliveries commercial results, like Commercial a for to XXX XXX further aircraft in exceed provide XXXX

led up in from the opportunities as Freighters. provide reason markets over XX%. fleets looks also. tailwinds Airbus the of Airbus Boeing to were to OEM X,XXX and up XXX these narrow-body AXXX, up an shipments the XXX beginning XX% OEM our Omicron downturn. XXXX and and the totaled for our both and commercial platforms MAX and marking XX% year-to-date optimism Plans freighter new XXX Narrow-body quarter-over-quarter. substantial to Triumph, in transport The pursue Increases up Both XXX for actuation aftermarket be and as continues opportunities for door paused Triumph the freighter and XXX year, induced provide that for to and for respectively continues benefits actuation by provide for be we by transport Utilization recovery pandemic. cargo variant also XX% Hong on strong book-to-bill aviation through have demand. installation Boeing horizon. net up and strong business. conversions year-over-year. approximately reached commercial service on China, XX% the and market passenger exit return of freighter aviation and ratio wide-body while to XX% AXXX, of Indonesia, upward. December the since and recovery production trajectory Triumph Additionally, conversions The orders the is for the Ethiopia freighter both COVID AXXX planning is X.XX The Backlog content the our with for broad Kong

for delayed & a Our as of compared XXX accounted declined orders short-term were revenues the result up, roughly to balance. the while of Systems sequentially. deliveries accounted military half or the for quarter decline, production Support in and prior-year timing rotorcraft deferments

to aid expect with margin both XXX anticipate headwinds in coming the expansion recently top-line ramp-up coupled these We and of of pricing a in secured quarters. We quarters. the coming shipments, abate resets, will

an wins We've New adding the build a and be in This entire capitalize ducting, innovation, than on year-to-date. incumbency, strength with selected new won the Triumph's prior-year. package, installation from over That's Interiors our current and are our We Order We builds XXXX. platform rate role long-term market to cabinet and goal recently were on anticipated seen cabin increases. installation three leader IP. next supplying orders and of the floor. and recovery to internal by agreements Coupled well-positioned more a sales content. for platforms the and cabin year-to-date products, Boeing new $X Slides systems for set quarter X. the market XX% to sources up on in is these continues on record installation years. competitive Triumph market AXXX to design global expand since to XX% AXXXs our customers of from can is acoustic thermal installation. the X from the win billion business Interior recent

aircraft. Next awards, hydraulic innovative for actuator for Lift electromechanical business, Solutions a Gen provider histories market aerospace Lockheed the four platform, Future Raytheon's contract for Bar build in Our control power design leader finalized solutions for conversion with the actuation is the We for business the a awarded Callidus French light geared the remote applications. and program, also extension And in nuclear Martin suite was Order we and and an valve Holdback Actuation were military of for pack BXXX actuation an in integrated FARA large won attack Mechanical mechanical plant. which Door world, the program. an a undisclosed to Vertical awarded power for business Bay Weapons Jammer, passenger low freighter cables contract gear Rolls-Royce largest precision commercial the third-party system a

times. business dependability, the win Finally, from OEMs Support with XXX quality overhaul with offer XXX the this JV in xCelle CRJ Bombardier turnaround extending Brazilian sell our market competitive to our XXX formerly Support Airline the Collins aftermarket and the and Product consistent Product where continues our to MRO to fleet. launched GOL appreciate their partnerships and on components MAX, while on

by social Pandemic of This levels cross office The been and we against Referred functional needs has tools to and in over three index of respect briefly work. three levels presented created costs and all challenges, joint follow-through more are higher early annual supply in investments tapping but inflationary employing we chain Triumph and deal, help years, and constraints lockstep OEMs adjustments and our Triumph a OEMs speak workforce accelerate materials, flexibility We've importance industry of of underway our and mitigate chain opportunities. performance. also with the the provisions Balancing discussion next bottlenecks members we employees career level as on to recently our rates salaried next adoption we commodities, against we in existing to platforms, demonstrated held team across Supplier the contract indices, general actions across of suppliers pandemic. XX the saw place expected empowered pandemic into reinvent based the the staying the avoid increases given material ramp. and on certain where many hiring to in by protections we protect changes our company. had with importance with about levels. price contracts above our forecasts. delivery the over engagement on price production organization. that material top to sustainably every threshold the encouraged on our preparing employee coming XXXX/XXXX greater cost preferred the the opportunities achieve adopted hourly inflation, for the are both months our labor We because balance we overhead, to to stressed XX to a factory, illustrated renewing include to to our opportunity in new anticipated for ongoing the to and XX the Conference partners, is can the and make CapEx across virtual for to pressures. their teams satisfaction the of and latest risk internally discussed how of the collaboration employees Turning continue company before the supply supply the with market focus chain, Triumph and is

In and the and Support productivity production Triumph of deferrals quarter my stated valuable abate our XXX being and XXXX Short-term In goal our anticipate from in new workforce we will pandemic. approach our the doubling contract in & result, a towards business, lessons engagement view, are Systems of order several grew cash As core margins wins. in our be offset by of profitability. new levels non-recurring to to expected our retired our most fiscal one higher military on are uses. OEM summary,

quarter, flow, while us this and path and support OEM solid margins combined to growth, improved expanded deliver rate the will company cash a in year-over-year. actions on our de-leveraging Our increases, MRO with putting

we're and the results forward, to investing in for more As Triumph that, operations ensure delivers market people, the will value take through in year-over-year. in With Jim? differentiated we shareholder us quarter detail. move enhanced and remains now Jim, our products the

James McCabe

and Dan, good morning, Thanks, everyone.

As I'll adjusted for GAAP quarter cash please to Triumph on the the both this basis. positive refer profitable the review with released I today. results. financial and was adjusted the quarter, results discussing be and posted our earnings presentation

and quarter. presentation operating ago. million XXX On shutdown earnings This Spokane, reflects the income revenue $X the XX% and Systems the facility All adjustments. that offset million revenue. slides platforms half represents from from Revenue up adjusted of between was the makes our difference X% Adjusted our to in only growth from the year. margin, income segment & consolidated income XXX Texas, in Support complete be operating quarter, the of the in a a MRO OEM which press our the by narrow-body third-party results our in total for attributable Grand Systems due reinforcing quarter, smaller, structures million core, of release million our first of see operating is operating Jet all adjustment this combination in which generated shutdown now the Note Interiors in Page short-term So million was for our X, calendar military production the Support year transferability increased getting up adjustments an of and and are in $XX explanation Biz delivery towards revenue please this this rate to a quarter. of increase completed $XXX and Prairie, will GAAP our of facility supplemental revenue and shift to Washington, $XX timing. the million become the Continuing the substantially profitable. $X XX% $XX with year this quarter reductions XX% a & income operating predictably the ago. December,

volume good Staverton million quarter, results measurable the It next on-time on expected timing divesture X, end towards our legacy X, lines OEM X% & for three of and business. increase make Support and delivery the Stuart our Structures was debt. and decreases. a related XX% and Biz their million prior Systems Support. MRO in and rate $XX growth. $XX find certain revenue mix Sale was million, Structures year. Systems to sunsetting we a goal contributed closed XX% of used and the progress product Systems and facility in last towards organically to includes XXX close narrow-body in At the and the & Structures of the military contract highlights. Previously and year our our quarter XXX by quarter increase build-to-print was facility announced net and Turning of we see our the proceeds Structures comprehensive in programs. was you'll of to higher of income of increase our We $XX Page Page licensing year. continue Systems Support shift point last over of to XX% revenue the XX% reduce offset revenue results year of operating quarter. of third-party XX doubling first Systems point half organic a year or That's programs revenue production Support on an divestitures the last early calendar over or a budget. is adjusted XXX exit basis & October. On short-term facility total years. exit Jet platform under & This the EBITDA sale Revenue you'll over complete over on our which to increases is production revenue, the this At manufacturing basis sale highlights. will step XXX excluding up basis. the last & Support EBITDA UK over

our we're quarter. Structures, generated our walk cash insight of supplemental and year-to-date. to additional million XX, Page is going we into forward. exit our free with On Consistent disclosures business evaluating flow quarter free $X the continuing pending the cash Given the of flow in guidance, for provide

QX. non-recurring continue to cash free are We generation flow cash increase that to our reduce track on uses in

million cash of and liquidations, quarter of As expected, previously accrued million million $XX advance drivers, non-recurring included free including this funding cash $X XXX losses. of $XX of flow

and total investment of this and in a expenditures million million Support support schedule full-year Capital of OEM Systems On a the is expect non-recurring uses segment for debt quarter liquidity. of XX, improvements. rising infrastructure $XXX our We detailed demand, supporting the on to of cash in slide. & MRO net as $X our with and Page sustaining increased

lien quarter, million Staverton notes the down During proceeds divestiture. first from our paid we of the by the $XX

XXXX the We cost securitization $X.X of also extended the quarter, contingent XX% capacity million. maturity liquidity. from our and receivable It of to a a year as end increased November serves million down about of we low billion $XX its a source of At the to of $XXX net debt facility from ago. had

for cash availability, $XXX is which than our projected had also needs. of more sufficient We million

from is next Our maturity now. debt over years X.X

proceeds and by you'll EBITDAP excluding of are We we de-leveraging expanding free and anticipated XXXX businesses. XXXX, fiscal continuing Page approximately fiscal our divestitures aircraft on guidance. from and our by flow expect billion. with for reducing divestitures rates the find in On cash Based potential debt production impacts XX, a $X.X revenue summary of of

of $X.XX approximately EPS to net the We for be expect Cash received, to expected taxes, adjusted diluted are $X.XX year. share. million refunds $X of per

We including expense interest. million continue million, interest to be approximately of cash expect to $XXX a $XXX

resulting in we use operations million capital expect full-year, million $XXX from $XXX expenditures use $XX of approximately approximately million. For the free to in of with a cash cash

We our have in predictability significant improving cash flow. profitability progress and achieve continue of the our made and goals to

operational actions, cash efficiencies, volume reductions, and increases improving flow portfolio will to margins in cost all forward. Our pricing, contribute and moving improved

today We and are the are have and taking. more assistance stronger now Most we primarily is all Support for actions importantly, Company. and Triumph competitive

former higher earn and we of We businesses. IP base it build-to-print in in business includes has couldn't the margins, mix can past. Our than capital spares revenue more than less our

solutions our We which and continue our unique develop to people profitable and growth. invest in results sustainable, in deliver to for customers, valuable

Dan? the call back turn Dan. I'll Now to

Daniel Crowley

momentum business Winning pleased Jim. IP-based new with I'm of work year-to-date the as providing third results, build-to-print business core exit our solid towards fourth our of at with to the a structures are XXXX. market quarter to desired deliver path fiscal Thanks, fiscal continue strong and us our Despite and dynamics, portfolio. we quarter value our

will further both to Looking our enable value forward business to increase stakeholders. any the our ahead, of as the and to take deliver our our our the all by on we our now our partnerships, to look further and diversify which new benefit elements of top as across value to hidden We're pivot I and efforts backlog through we questions. strategic to unlock happy focused wins lines. bottom reporting our progress, demonstrated growth Triumph remain control, on continue for within

Operator

affiliation please your standby Please Instructions]. by your your question. for [Operator first Sheila followed state question. Kahyaoglu,

Sheila Kahyaoglu

revenue finalized? breakeven about Good from morning, EBITDA Dan about revenue your and run and What think rate Jim. about Sheila It's given you the is now Jefferies. to way given talk should Structures margins being sort what this business Can Stuart quarter? its profile on and that we of

Daniel Crowley

large lot metallic it's Structures major and very because it's the unique, parts, XXX, some than to from we've see structures business, business, of divesting Stuart different from Structures, will of then very business contracts proprietary much to to The little contribute that we've the is is comes And didn't a volume and long-term the breakeven. part morning. some there now of. in and Good EBITDA with Interiors which there. it signed returning, of Interiors business back. going just margins a improving seeing OEMs do as business bit smaller benefit Sheila. continuing tailwinds With XXX business we different that with Thanks, it's gotten The content have when is as very been

now. size we the most what's So the to and important in business, Systems terms of really a be company going that is much of are it's And smaller. aftermarket

the of quarter. revenue, is contributing is of Systems size in the of it's the about the size all the of aftermarket So business and shrinking, in Structures profitability but XX%

Sheila Kahyaoglu

Sure.

a $XXX don't to million? know provided a Stuart And was we willing and but Is $XXX the you're if you think that do to fiscal the to XXXX, if about give divestiture business as that? I million proceeds of sort maybe so size around for follow-up, Interiors

Daniel Crowley

details disclosed Yes. will The the close when in Stuart coming months. transaction of we be the

that we So given haven't yet.

forward, terms can the ballpark, you're the programs. and return the be it of major I the higher moving in Structures of In size think that volumes on given of some of than

Operator

Peter your followed please state your affiliation you. question. Arment, Thank by

Peter Arment

of talk pick you sustain about just we thinking high could into ability margins get quarter, Dan, figure Systems starts Hey of just about maybe volume teens you're but kind to margins kind as the the to how up sustainability, in as XX% XXXX? fiscal high

Daniel Crowley

them our of aftermarket sustain contribution when and the our third-party And into goal recapture and increase versus XXs. tail. their mix OEM to OEM Yes, the OEM. not our to MRO MRO we it's change, one-part that two ago them, MRO increase where businesses That the help to is Peter, our spares years businesses, grow to is started and we path combined

So going that's initiative a that's on us forward. multiyear benefit going to

enabler the that for The cost capital. programs renegotiating exiting weighted margins second have or our below Systems margins

running new And sourcing the to customers, the contracts customer is QX, the so, this OEMs, initiative products. script we going third our case work new products, of for that's markets. out. replace or in to kicking be years XX% from ones either I the revenue in growing meeting continue as point of also cadence that mentioned where my And at over about in those price-ups and making with are another and multiple the comes sales

the those through test hydraulic where have all developed so And I CRAD, are new walked they with is came research customer in what that now, development are pumps and And right have in of where money, a back labs, we from of lot been call pumps, fuel contract development. our products new qualification. the plant, Clemmons, just where this Carolina North that I IP-based

be enhance So margins. as to in, we'll those able our come products

be. to the want Systems we drivers So them combination get it's to really where three those of

Peter Arment

commented approved? on any on details Appreciate provide circling the been that. question sale, just just there had us the follow-up, already you you've can as back Stuart, regarding whether yet customer agreements what to is if And any a or that's

Daniel Crowley

Yes, thanks. Thanks Peter.

Kevin Commercial. Boeing CFO four Stuart, So of Schemm, Boeing dialog with ago, the we with started years three, on

source it. partnership But been It's delivery. of continue partnered become it's as to a It's we're on business improved watch. profitable for right But a so owner. best has invest. there not other long-term Triumph the been area an stable our to are on business us. to has And a trying not that identify the we long-term the It's want buyers.

challenge at race. honor Daher, think, understand committed Boeing, expand went I day and those own But with quality they Boeing the to their in their every have understand We to as both Boeing in was was sections not an for right, would footprint well. and parts content XXX to Triumph and who on it. a freighter, did is the that with smooth tremendous we the wing the desire Gulf the end, and to on We had as and the the Boeing well And transition. time a parties. wasn't that owe OEM I center part there, it I U.S. that's importance a announced understand tank delay going is fulfill I increase meetings, delivery are being intend supplier parts with to a be win Daher And multiple first-tier clear the we to of signing. Stream. prior they produced some a and interested meetings

and will timely have be, basis. early a be So will received begun, confident and close that it on consensus we're will discussions

Operator

your state Seth you. question. by your followed affiliation Seifman, please Thank

Seth Seifman

segments from plan will report? be how the Will there transaction comprised Stuart Seth Seifman or still a Morgan. you business? the there J.P. It's Will morning. there wonder Structures good segments? Hey, is new be Guys once of no solely be I segment Interiors to closed,

Daniel Crowley

Systems, great and kind Yes, can Underneath the million really the analysts each properly. five investors million companies, operating and are with model sales. provide to that there $XXX to question. committed We're visibility transparency $XXX company of

breakout. and discuss involved we're our go to the and here But some there's report do kicking And board Jim? provide in to we're level years April, operate, that work New our of tasks couple plans to with to reporting is in got reporting understand ideas report the start on visibility necessary have goal we commitment working from we to than in you've know that. is let the we We'll on you that manner. a And the in consistent February. investors game But the welcome just kind organize do company. the and rather of around feedback you that, the key that So is back the one it it of to plan a in Year. TSS,

James McCabe

Yes.

We remarks will supplemental provide I look little right but to a the within what in mentioned existing disclosure to go now. my was the deeper, Structure

transparency don't So and we historically. to things for provide to want to want information. But look that to investors we at and create extra work, have especially go

months talk we'll many for So coming make going investors to determination the that over and forward. a

Seth Seifman

talked little Great, that and any good. would be then of if of both aftermarket kind old thanks. of series about XX% thought and today and include but taking XX% how that we bit how in IP and as you of more a of long the and apologize that the mentioned I I about is could you from you now, guess and think XX% there sort Dan, systems? that to to color of along guess that And questions then in proprietary versus talked dig that here, commercial just business and you is of integrated And the that gets about would for & it bit where think get proprietary could historically, putting for maybe a where it that follow-up, being I about are content a you I steels integrated of provide you do far military. the kind you the systems maybe a Systems path? guess, work Support the -- context is about how goal now some

Daniel Crowley

it customers markets. We fiscal second new products, on that the of growing XX% I'll start with our from revenue, initiated XXXX. part, in goal being

sales months that when then XX set that we're adjusting like So that, to into you starts to leads strategy materialize. it. with leads your orders, captures goal it And a and

go So aspiration goal sales step. you to one can't in from to

sources conversion from It's our fuselage our door put good our You press to into that modify some orders it and that. to But when the customers. in to they've really those AXXXs actuation the have freighter mentioned an to say, let's that when and used mentioned quarter, in through and coming the has we pivot XX%. got are engage team I up that. the add sign go made of market, now heavy operator I a new that the we're started acquires, that main pivot releases, provide cargo

interior do to work. modify the have we We that

all which reversers. mostly MRO incoming and all North is AXXXs, Neos, South France, So that repair AXXX focused that's xCelle the And an that the thrust is couple what MAX a with XXX, in with is France/KLM business of new a And work live. example XX,XXX it's the Americas a on will person, services. XXX have example. products, another of working officially now for new been American on years, Air the new we've overhaul on this aircrafts partnership JV cell Air it's

of going business. are our -- and example another after that's new a So platforms third-party partnership MRO currently not that new another in segment, new

And is multiple had really for those last pumps, on to when as we been our that applied we've engine at next-generation to Triumph of actuation, have a IP, what core multiple customer with but been As funded far we're focused GE product R&D. products. the that years, as on four tight heat controls be solution can cash, successful will exchangers, was And and develop benefit products, is And really fuel key platforms. do applications military a the pumps core develop platforms. that's for point one don't helped IP, like that work a that's few very we've and fuel companies problem, is, like shot the

develop both customers, new called to out I XX%. The to how you So higher, with are figure think like we're of that IP and products. all these percentage then it about our trying apply Jim, and partnership

James McCabe

the you can & to segment. when in add as XX% sole like be the that Support Yes, And source, in it IP-driven. it's Systems more business up XX% in

Daniel Crowley

parts. just Triumph And relates other one to to expand go-to-market separate change used to this in we that So to through southeast continue plan is that. companies

on actuators gear, like go-to-market And but that not as us. a developing we side the is well. that the landing now Seattle sites benefit our the good locks can subsystems we for only raise gear company. programs up Now that lower It's sell R&D platform been across multiple OEM where

leadership to knows about will and So that. growth to excited from have we're contraction they of business team divestiture it. key a and be the that IP The part pivot

Operator

Thank Walton, please question. you. by affiliation, state your your followed Myles

Myles Walton

on XX% obviously Good fourth UBS. was think to exit color color increase that EPS could to there's manufacturing program in P&L. the for in upside think somewhere source margins wonder EPS? Thanks, about And an of quarter us is the to the the number you I And aviation morning. the I implied give jobs the run and $XX what's -- the XX%. underlying of is still hoping through I million some I left that sort in

James McCabe

in this gets mix the third We over Yes, of the and part recognized MJP got thanks is Myles, period. quarter, of the the is With Jim. [ph] in that that million six quarter million the certainly money, months $XX it's we about $X.X cash. recognized

the in And So strong seasonally course, quarter the fourth ramp Fourth be of there programs. that will we're quarter. quarter. seeing some a on certain of is also

delay that a was in programs benefit We delays benefit. should will military QX. have some in QX in There

is So healthier that lot mix. it's make that And to we sure continues. it. we're that the part But that workforce support of have a providing a pleased the of government's

forward. the ready for we're So ramp moving

Myles Walton

it EBITDA don't it or for the think know XXXX you're $XXX doubling that EBITDAP for Jim to -- less I made? the imagine your that looks then divestitures the EBITDA in Dan the implied or doubling doubling from we're Is on this number year you -- somewhere a XXXX clarification that And that I Is talking about fiscal. based but just of in numbers. I somewhere Okay. range, million like

James McCabe

So a it's target.

will it into continuing So the doubling be business.

there get Of We can't company. $XXX the quarter giving that. and of future if course, the levers that million the $XX to EBITDAP the did fourth look $XX look a guidance you year. strongest full quarter is working we the sold we may think we're target million. we year-to-date, at businesses. But towards EBITDAP the internally. double quarter, have of about million forward And the for towards we're to at see it's quarter in in what the in I But the It's

Operator

Strauss, your question. David by affiliation state your you. followed Thank please

David Strauss

Yes, bucket like that what thank million in Jim, the in Barclays. you, cash XXXX? items $XXX does look non-recurring in

James McCabe

what Well, shipped of the going what's those $X tell this year. is in complete, advances. the some I million in year. funding. is XXX we you quarter, of current $XX some current production liquidation out We XXX on due David. have on shipments of thanks, $XX got Yes, can half million million first of the

on up shouldn't that The wrap $XXX that of about spent some be but were QX. $XX already, be at in the our liquidation large. a XXX, there'll And million end in advances December we've So we've million.

right down timing and in between announced able you we now now closure, liquidation the And at tell the $XXX be. events to when event. point what we're then the the will Stuart this So about of more time million be remaining about we'll

Myles Walton

to going are XXXX? non-recurring cost you than or XXX, On costs the cash cash are in be XXXX higher applying Okay.

James McCabe

shipping to No, no. They're quarter forward. be be close but this residual where and remaining from, only less in and we it there's as moving we're the them some up it'll storing was them factory $X down, million winding going

Myles Walton

million sort million, look Okay, XXXX $XX of I this could got pension that guess early And you're income? look income, year pension what any like in like versus running on it. $XX

James McCabe

what no important forecast right four next to into required the most Yes, of pension part funding put our now. in me funding the trust. And to over have pension the we there's years is

is going up liability. reduce is our to So rate interest going

So change a it's going non-cash exact have change. does, to to not And I it's be it if don't materially. but going number,

Operator

Thank affiliation, question. your Ciarmoli, state your you. please by followed Michael

Michael Ciarmoli

like David's today, did $XX the Stuart, guys. of Stuart on But sort it so I quarter flow can CapEx level give assume will you guess from just of and sense, it what questioning get cash, what things us you not we of still kind cash we any detail year about setting give per sort this to year? contribute then stay morning next Maybe, good free have of can to some million or Thanks, line liquidations. for to a on as without of And to Jim, sounds XXXX. Securities. you're here just Truist walk some should stand going

James McCabe

sure. Yes,

determined liquidations the closes. next the of advances and of now terms any year to there's be and In those exact store be the will between events year last timing going is

terms business. And margins that's rate, business before our and us to R&D, R&D normalized quarter in $X both continuing going And of improve remaining CapEx mix In I run from run intensive spend intensive. the did our on of the portfolio with actually moving help capital ourselves. the million more and and forward. more we rate customer spending believe we're funding as Remember that much it's less funded

Michael Ciarmoli

year, of was Out CapEx related how Okay. Stuart? to much the this

James McCabe

maybe. million couple [Indiscernible] of dollars

Michael Ciarmoli

revisions revenue And last cash. the the of to downward on okay. one drivers the Okay, low-end the then and guidance, to on the just ranges

Stuart, military assuming in the of still is just orders in I'm you a things there. what sliding XXX the function XXXX? called And deferred of that kind out First, and

James McCabe

still there, in right. close. exactly, guidance Yes, is we actually until the Stuart

Operator

affiliation, question. Thank Mariana your followed you. Mora, Perez your please state by

Mariana Perez Mora

is this Everyone, America. Mariana from Bank of

related a is also How cash target able and One, the variables long-term are are if flow, question. to that? what key should free about to flow. free suddenly we this when to follow-up mid to So you cash Mike's speak and achieve determine it's

James McCabe

margin, what give to positive do think can be The Mariana. flow quarter; actions XX% can can repairs moving it it's and to spares to flow have forward, portfolio has for important, margins forward, has group. higher you determine they're drivers more the what your last this quarter. QX. are. But from tell moved until peer thanks, year's our work, they achieve moving our example, this is So its And important, aftermarket because positive you which cash so third been in cash to XX% our up guidance quarter we you for I is relative these we going business in improving And

been our the in Spokane, going to efficiencies that's last substantially to cash of and flow forward. cash to efficiencies, and supply on that's to that's see away chain back to and of military it The the piece with been being increases in in volumes ability We've programs going on spend are flow as that's XX are our moving a benefits making working up. able of time the and profitability of as previously going going pricing start MAX So return operational core XXX ramp lot to on to margins important reductions on reduced line really now benefits reset be XXX some service and drive the key restructuring we the not focus going well. an to to some And we able normalize with of source have bottom of the be money cost programs; helpful. We've get business operating our restructuring to margins. actions. And we're

predictable profitable to that divestiture It's we'll but the happen there's lot going more tailwinds moving now. give as of the on we're to flow. into not profitability and We've us look forward couple within opcos. much the completed Stuart last that forward path insight a been business years announced So a each for certainly and of closure cash more overnight just have drivers lumpy, of

Mariana Perez Mora

Interior wide-body on is my then the business. mind between and exposure? Should narrow-body discussing what follow-up And the you. Thank is you breakdown

James McCabe

last year this first you XX% tell XX% me that let to is down year. business our Well, OEM

now right by narrow-body for program Airbus is the program, followed largest XXX. Our

XX, a in and So programs you you'll Page they see look and what can of our on of comprise. presentation backlog of the percentage all breakdown

what see That's & coding Structures example, is is is business on Systems and gray what for Support in portion the X% business. So backlog by side. the the AXXX color can you of in and there, the our overall

quality this going backlog I information give like. our look a and what provide people think better ago is what of the insights sales we forward going to of quarters couple So start additional to into to is

Operator

fiscal third This Time Group's Time. today that will conference Standard a replay have further Eastern earnings be XXth XXXX this questions, available no are through there call. XX:XX Eastern will the XX:XX Since year call at AM concludes today's quarter Standard at PM Triumph

day. You dialing entering entering and access Again you the can for X in the (XXX)XXX-XXXX all and you (XXX)XXX-XXXX X can XXXXXXX. report access the participating replay Thank to nice code access have by dial access a XXXXXXX. and code

You disconnect. may now

Triumph (TGI) 9 Feb 222022 Q3 Earnings call transcript