TRIUMPH REPORTS FOURTH QUARTER FISCAL 2024 RESULTS
PROVIDES FISCAL YEAR 2025 GUIDANCE
Fourth Quarter Fiscal 2024
- Net sales of
$358.6 million ; organic sales growth of 11% - Operating income of
$44.8 million with operating margin of 12.5%; adjusted operating income of$55.8 million with adjusted operating margin of 15.6% - Net income from continuing operations of
$5.5 million , or$0.07 per diluted share; adjusted net income from continuing operations of$23.3 million , or$0.31 per diluted share - Adjusted EBITDAP of
$58.3 million with Adjusted EBITDAP margin of 16.3% - Cash provided by operations of
$77.7 million and free cash flow of$72.1 million
Fiscal 2024
- Net sales of
$1.19 billion ; organic sales growth of 13% - Operating income of
$86.5 million with operating margin of 7.3%; adjusted operating income of$114.9 million with adjusted operating margin of 9.6% - Net loss from continuing operations of
($34.5) million , or$(0.46) per share; adjusted net loss from continuing operations of($4.4) million , or$(0.06) per share - Adjusted EBITDAP of
$144.3 million with Adjusted EBITDAP margin of 12.1% - Cash provided by operations of
$9.4 million and free cash use of($12.4) million
Fiscal 2025 Guidance
- Net sales of approximately
$1.2 billion - Operating income of approximately
$140.0 million , reflecting operating margin of 12% - Adjusted EBITDAP of approximately
$182.0 million , reflecting Adjusted EBITDAP margin 15% - Earnings per diluted share of approximately
$0.42 - Cash flow from operations of
$30.0 million to$50.0 million , free cash flow of$10.0 million to$25.0 million
"TRIUMPH took important strategic actions during fiscal 2024 to create a more streamlined, value-added and IP-based business with a much stronger balance sheet," said
"We were pleased to report our eighth consecutive quarter of year over year organic growth as aftermarket volume grew rapidly in our remaining OEM businesses. While sales increased in our Interiors business in the fourth quarter, its profit and cash flow continued to lag due to external cost drivers. We expect these headwinds to abate as narrowbody aircraft rates recover. However, TRIUMPH generated positive free cash flow overall and achieved our strongest margins of the fiscal year due to benefits from higher overall sales and strong aftermarket mix."
Fourth Quarter and Full Year Fiscal 2024 Overview
|
|
Three Months Ended |
|
|
Fiscal Year Ended |
|
||||||||||
($ in millions) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Commercial OEM |
|
$ |
139.6 |
|
|
$ |
144.3 |
|
|
$ |
530.3 |
|
|
$ |
541.5 |
|
Military OEM |
|
|
71.2 |
|
|
|
80.2 |
|
|
|
261.9 |
|
|
|
261.1 |
|
Total OEM Revenue |
|
|
210.8 |
|
|
|
224.4 |
|
|
|
792.2 |
|
|
|
802.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial Aftermarket |
|
|
56.4 |
|
|
|
38.4 |
|
|
|
164.0 |
|
|
|
126.1 |
|
Military Aftermarket |
|
|
65.3 |
|
|
|
54.1 |
|
|
|
183.1 |
|
|
|
165.8 |
|
Total Aftermarket Revenue |
|
|
121.6 |
|
|
|
92.5 |
|
|
|
347.1 |
|
|
|
292.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-Aviation Revenue |
|
|
25.4 |
|
|
|
7.8 |
|
|
|
50.0 |
|
|
|
33.6 |
|
Amortization of acquired contract liabilities |
|
|
0.8 |
|
|
|
0.7 |
|
|
|
2.7 |
|
|
|
2.5 |
|
Total |
|
$ |
358.6 |
|
|
$ |
325.5 |
|
|
$ |
1,192.0 |
|
|
$ |
1,130.6 |
|
* Differences due to rounding |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Note> Aftermarket sales include both repair & overhaul services and spare parts sales. |
|
|
|
|
|
|
|
Excluding impacts from divestitures and exited or sunsetting programs, Commercial OEM sales decreased
Aftermarket sales include both repair and overhaul services as well as the sales of spare parts. Commercial Aftermarket sales increased
Military OEM sales decreased
Military aftermarket sales increased
Non-aviation sales include a year-to-date true-up adjustment, primarily from Commercial OEM sales.
TRIUMPH's results included the following:
($ millions except EPS) |
|
Pre-tax |
|
|
After-tax |
|
|
Diluted EPS |
|
|||
Income from Continuing Operations - GAAP |
|
$ |
9.2 |
|
|
$ |
5.5 |
|
|
$ |
0.07 |
|
Adjustments |
|
|
|
|
|
|
|
|
|
|||
Legal contingencies loss |
|
|
6.0 |
|
|
|
6.0 |
|
|
|
0.08 |
|
Restructuring costs |
|
|
5.0 |
|
|
|
5.0 |
|
|
|
0.06 |
|
Debt extinguishment loss |
|
|
6.8 |
|
|
|
6.8 |
|
|
|
0.09 |
|
|
|
|
|
|
|
|
|
|
|
|||
Adjusted income from continuing operations - non-GAAP* |
|
$ |
27.0 |
|
|
$ |
23.3 |
|
|
$ |
0.31 |
|
*Difference due to rounding. |
|
|
|
|
|
|
|
|
|
Fourth quarter operating income of
The number of shares used in computing diluted income per share for the fourth quarter of 2024 was 77.8 million.
Backlog, which represents the next 24 months of actual purchase orders with firm delivery dates or contract requirements, was
For the fourth quarter of fiscal 2024, cash flow provided by operations was
Conference Call
TRIUMPH will hold a conference call today,
About TRIUMPH
More information about
Forward Looking Statements
Statements in this release which are not historical facts are forward-looking statements under the provisions of the Private Securities Litigation Reform Act of 1995, including statements of expectations of or assumptions about guidance, financial and operational performance, revenues, earnings per share, cash flow or use, cost savings, operational efficiencies and organizational restructurings and our evaluation of potential adjustments to reported amounts, as described above. 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
FINANCIAL DATA (UNAUDITED) ON FOLLOWING PAGES
FINANCIAL DATA (UNAUDITED)
(in thousands, except per share data) |
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
CONDENSED STATEMENTS OF OPERATIONS |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net sales |
|
$ |
358,587 |
|
|
$ |
325,458 |
|
|
$ |
1,192,043 |
|
|
$ |
1,130,562 |
|
Cost of sales (excluding depreciation shown below) |
|
|
250,459 |
|
|
|
221,873 |
|
|
|
869,201 |
|
|
|
809,882 |
|
Selling, general & administrative |
|
|
44,770 |
|
|
|
49,069 |
|
|
|
180,247 |
|
|
|
191,087 |
|
Depreciation & amortization |
|
|
7,563 |
|
|
|
7,786 |
|
|
|
29,625 |
|
|
|
32,259 |
|
Legal contingencies loss |
|
|
6,000 |
|
|
|
— |
|
|
|
7,338 |
|
|
|
— |
|
Restructuring costs |
|
|
4,985 |
|
|
|
2,098 |
|
|
|
6,970 |
|
|
|
3,172 |
|
Loss (gain) on sale of assets and businesses, net |
|
|
— |
|
|
|
1,640 |
|
|
|
12,208 |
|
|
|
(101,523) |
|
Operating income |
|
|
44,810 |
|
|
|
42,992 |
|
|
|
86,454 |
|
|
|
195,685 |
|
Interest expense and other, net |
|
|
28,667 |
|
|
|
31,949 |
|
|
|
123,021 |
|
|
|
115,211 |
|
Debt modification and extinguishment loss |
|
|
6,819 |
|
|
|
31,603 |
|
|
|
1,694 |
|
|
|
33,044 |
|
Warrant remeasurement gain |
|
|
— |
|
|
|
(3,146) |
|
|
|
(8,545) |
|
|
|
(8,683) |
|
Non-service defined benefit expense (income) |
|
|
88 |
|
|
|
6,061 |
|
|
|
(2,372) |
|
|
|
(19,664) |
|
Income tax expense |
|
|
3,775 |
|
|
|
691 |
|
|
|
7,123 |
|
|
|
3,360 |
|
Income (loss) from continuing operations |
|
|
5,461 |
|
|
|
(24,166) |
|
|
|
(34,467) |
|
|
|
72,417 |
|
Income from discontinued operations, net of tax |
|
|
542,284 |
|
|
|
6,623 |
|
|
|
546,851 |
|
|
|
17,176 |
|
Net income (loss) |
|
$ |
547,745 |
|
|
$ |
(17,543) |
|
|
$ |
512,384 |
|
|
$ |
89,593 |
|
Earnings (loss) per share - basic: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings (loss) per share - continuing operations |
|
$ |
0.07 |
|
|
$ |
(0.37) |
|
|
$ |
(0.46) |
|
|
$ |
1.12 |
|
Earnings per share - discontinued operations |
|
|
7.05 |
|
|
|
0.10 |
|
|
|
7.38 |
|
|
|
0.26 |
|
Earnings (loss) per share - basic |
|
$ |
7.12 |
|
|
$ |
(0.27) |
|
|
$ |
6.92 |
|
|
$ |
1.38 |
|
Weighted average common shares outstanding - basic |
|
|
76,919 |
|
|
|
65,189 |
|
|
|
74,149 |
|
|
|
65,021 |
|
Earnings (loss) per share - diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings (loss) per share - continuing operations |
|
$ |
0.07 |
|
|
$ |
(0.37) |
|
|
$ |
(0.46) |
|
|
$ |
0.96 |
|
Earnings per share - discontinued operations |
|
|
6.97 |
|
|
|
0.10 |
|
|
|
7.38 |
|
|
|
0.24 |
|
Earnings (loss) per share - diluted |
|
$ |
7.04 |
|
|
$ |
(0.27) |
|
|
$ |
6.92 |
|
|
$ |
1.20 |
|
Weighted average common shares outstanding - diluted |
|
|
77,817 |
|
|
|
65,189 |
|
|
|
74,149 |
|
|
|
71,721 |
|
(Continued)
FINANCIAL DATA (UNAUDITED)
(dollars in thousands, except share data)
|
||||||||
BALANCE SHEETS |
|
Unaudited |
|
|
Unaudited |
|
||
Assets |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
392,511 |
|
|
$ |
227,403 |
|
Accounts receivable, net |
|
|
138,272 |
|
|
|
156,116 |
|
Contract assets |
|
|
74,289 |
|
|
|
86,740 |
|
Inventory, net |
|
|
317,671 |
|
|
|
309,084 |
|
Prepaid and other current assets |
|
|
16,626 |
|
|
|
14,073 |
|
Assets held for sale |
|
|
— |
|
|
|
140,096 |
|
Current assets |
|
|
939,369 |
|
|
|
933,512 |
|
Property and equipment, net |
|
|
144,287 |
|
|
|
138,622 |
|
|
|
|
510,687 |
|
|
|
509,449 |
|
Intangible assets, net |
|
|
65,063 |
|
|
|
73,898 |
|
Other, net |
|
|
26,864 |
|
|
|
28,697 |
|
Assets held for sale - noncurrent |
|
|
— |
|
|
|
30,666 |
|
Total assets |
|
$ |
1,686,270 |
|
|
$ |
1,714,844 |
|
Liabilities & Stockholders' Deficit |
|
|
|
|
|
|
||
Current portion of long-term debt |
|
$ |
3,200 |
|
|
$ |
3,162 |
|
Accounts payable |
|
|
167,349 |
|
|
|
173,575 |
|
Contract liabilities |
|
|
55,858 |
|
|
|
44,095 |
|
Accrued expenses |
|
|
129,855 |
|
|
|
141,679 |
|
Liabilities related to assets held for sale |
|
|
— |
|
|
|
34,413 |
|
Current liabilities |
|
|
356,262 |
|
|
|
396,924 |
|
Long-term debt, less current portion |
|
|
1,074,999 |
|
|
|
1,688,620 |
|
Accrued pension and post-retirement benefits, noncurrent |
|
|
283,634 |
|
|
|
359,375 |
|
Deferred income taxes, noncurrent |
|
|
7,268 |
|
|
|
7,268 |
|
Other noncurrent liabilities |
|
|
68,521 |
|
|
|
59,988 |
|
Liabilities related to assets held for sale - noncurrent |
|
|
— |
|
|
|
65 |
|
Stockholders' Deficit: |
|
|
|
|
|
|
||
Common stock, |
|
|
77 |
|
|
|
65 |
|
Capital in excess of par value |
|
|
1,107,750 |
|
|
|
964,741 |
|
Accumulated other comprehensive loss |
|
|
(517,069) |
|
|
|
(554,646) |
|
Accumulated deficit |
|
|
(695,172) |
|
|
|
(1,207,556) |
|
Total stockholders' deficit |
|
|
(104,414) |
|
|
|
(797,396) |
|
Total liabilities and stockholders' deficit |
|
$ |
1,686,270 |
|
|
$ |
1,714,844 |
|
(Continued)
FINANCIAL DATA (UNAUDITED)
(dollars in thousands) |
|
|||||||
|
|
|||||||
|
|
Fiscal Year Ended |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Operating Activities |
|
|
|
|
|
|
||
Net income |
|
$ |
512,384 |
|
|
$ |
89,593 |
|
Adjustments to reconcile net income to net cash provided by (used in) |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
33,250 |
|
|
|
35,581 |
|
Amortization of acquired contract liability |
|
|
(2,721) |
|
|
|
(2,500) |
|
(Gain) loss on sale of assets and businesses |
|
|
(556,161) |
|
|
|
(101,523) |
|
Curtailments, settlements, withdrawals, and special termination benefits loss, net |
|
|
— |
|
|
|
14,644 |
|
Loss on modification and extinguishment of debt |
|
|
1,694 |
|
|
|
32,613 |
|
Other amortization included in interest expense |
|
|
5,925 |
|
|
|
6,416 |
|
Provision for credit losses |
|
|
1,136 |
|
|
|
1,594 |
|
Provision for deferred income taxes |
|
|
— |
|
|
|
14 |
|
Warrants remeasurement gain |
|
|
(8,545) |
|
|
|
(9,796) |
|
Share-based compensation |
|
|
9,445 |
|
|
|
8,913 |
|
Changes in other assets and liabilities, excluding the effects of |
|
|
|
|
|
|
||
Trade and other receivables |
|
|
7,879 |
|
|
|
(26,433) |
|
Contract assets |
|
|
9,584 |
|
|
|
(9,055) |
|
Inventories |
|
|
(17,460) |
|
|
|
(28,187) |
|
Prepaid expenses and other current assets |
|
|
(2,919) |
|
|
|
1,970 |
|
Accounts payable, accrued expenses, and contract liabilities |
|
|
13,506 |
|
|
|
(35,733) |
|
Accrued pension and other postretirement benefits |
|
|
(3,916) |
|
|
|
(32,562) |
|
Other, net |
|
|
6,362 |
|
|
|
2,200 |
|
Net cash provided by (used in) operating activities |
|
|
9,443 |
|
|
|
(52,251) |
|
Investing Activities |
|
|
|
|
|
|
||
Capital expenditures |
|
|
(21,827) |
|
|
|
(20,676) |
|
Proceeds from (payments on) sale of assets and businesses |
|
|
713,413 |
|
|
|
(6,220) |
|
Investment in joint venture |
|
|
(1,661) |
|
|
|
(272) |
|
Net cash provided by (used in) investing activities |
|
|
689,925 |
|
|
|
(27,168) |
|
Financing Activities |
|
|
|
|
|
|
||
Proceeds from issuance of long-term debt |
|
|
2,000 |
|
|
|
1,235,000 |
|
Retirement of debt and finance lease obligations |
|
|
(608,701) |
|
|
|
(1,126,501) |
|
Payment of deferred financing costs |
|
|
(2,368) |
|
|
|
(17,097) |
|
Proceeds on issuance of common stock, net of issuance costs |
|
|
79,961 |
|
|
|
4,090 |
|
Premium on redemption of long-term debt |
|
|
(3,600) |
|
|
|
(26,157) |
|
Repurchase of shares for share-based compensation |
|
|
(1,629) |
|
|
|
(3,547) |
|
Net cash (used in) provided by financing activities |
|
|
(534,337) |
|
|
|
65,788 |
|
Effect of exchange rate changes on cash |
|
|
77 |
|
|
|
156 |
|
Net change in cash and cash equivalents |
|
|
165,108 |
|
|
|
(13,475) |
|
Cash and cash equivalents at beginning of period |
|
|
227,403 |
|
|
|
240,878 |
|
Cash and cash equivalents at end of period |
|
$ |
392,511 |
|
|
$ |
227,403 |
|
(CONTINUED)
FINANCIAL DATA (UNAUDITED)
(dollars in thousands) |
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Systems & Support |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net sales to external customer |
|
$ |
310,116 |
|
|
$ |
285,583 |
|
|
$ |
1,027,630 |
|
|
$ |
918,960 |
|
Inter-segment sales (eliminated in consolidation) |
|
|
71 |
|
|
|
90 |
|
|
|
795 |
|
|
|
391 |
|
Segment EBITDAP |
|
|
71,336 |
|
|
|
64,134 |
|
|
|
200,074 |
|
|
|
172,415 |
|
Segment EBITDAP Margin |
|
|
23.1 |
% |
|
|
22.5 |
% |
|
|
19.5 |
% |
|
|
18.8 |
% |
Depreciation & amortization |
|
|
6,468 |
|
|
|
6,655 |
|
|
|
25,273 |
|
|
|
26,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interiors |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net sales to external customer |
|
$ |
48,471 |
|
|
$ |
39,875 |
|
|
$ |
164,413 |
|
|
$ |
211,602 |
|
Inter-segment sales (eliminated in consolidation) |
|
|
14 |
|
|
|
3 |
|
|
|
27 |
|
|
|
45 |
|
Segment EBITDAP |
|
|
1,137 |
|
|
|
3,047 |
|
|
|
(5,000) |
|
|
|
31,937 |
|
Segment EBITDAP Margin |
|
|
2.3 |
% |
|
|
7.6 |
% |
|
|
-3.0 |
% |
|
|
14.0 |
% |
Depreciation & amortization |
|
|
594 |
|
|
|
624 |
|
|
|
2,505 |
|
|
|
3,683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Continued)
FINANCIAL DATA (UNAUDITED)
(dollars in thousands)
Non-GAAP Financial Measure Disclosures
We prepare and publicly release annual audited and quarterly unaudited financial statements prepared in accordance with
We view Adjusted EBITDA and Adjusted EBITDAP as operating performance measures and, as such, we believe that the
Adjusted EBITDA and Adjusted EBITDAP are used by management to internally measure our operating and management performance and by investors as a supplemental financial measure to evaluate the performance of our business that, when viewed with our
(Continued)
FINANCIAL DATA (UNAUDITED)
(dollars in thousands)
Set forth below are descriptions of the financial items that have been excluded from our income (loss) from continuing operations) to calculate Adjusted EBITDA and Adjusted EBITDAP and the material limitations associated with using these non-GAAP financial measures as compared with income (loss) from continuing operations:
- Gains or losses from sale of assets and businesses may be useful for investors to consider because they reflect gains or losses from sale of operating units or other assets. We do not believe these earnings necessarily reflect the current and ongoing cash earnings related to our operations.
- Warrants remeasurement gains or losses and Warrant-related transaction costs may be useful for investors to consider because they reflect the mark-to-market changes in the fair value of our Warrants and the costs associated with Warrants issuance. We do not believe these earnings necessarily reflect the current and ongoing cash earnings related to our operations.
- Consideration payable to a customer related to a divestiture may be useful for investors to consider because it reflects consideration paid to facilitate the ultimate sale of operating units. We do not believe these charges necessarily reflect the current and ongoing cash earnings related to our operations.
- Shareholder cooperation expenses may be useful for investors to consider because they represent certain costs of corporate governance that may be incurred periodically when reaching cooperative agreements with shareholders. We do not believe these charges necessarily reflect the current and ongoing cash earnings related to our operations.
- Legal loss contingencies, when applicable, may be useful for investors to consider because it reflects gains or losses from legal disputes with third parties. We do not believe these gains or losses reflect the current and ongoing earnings related to our operations.
- Non-service defined benefit income or expense from our pension and other postretirement benefit plans (inclusive of certain pension related transactions such as curtailments, settlements, withdrawal, and early retirement or other incentives) may be useful for investors to consider because they represent the cost of postretirement benefits to plan participants, net of the assumption of returns on the plan's assets and are not indicative of the cash paid for such benefits. We do not believe these earnings necessarily reflect the current and ongoing cash earnings related to our operations.
- Amortization of acquired contract liabilities may be useful for investors to consider because it represents the noncash earnings on the fair value of off-market contracts acquired through acquisitions. We do not believe these earnings necessarily reflect the current and ongoing cash earnings related to our operations.
- Amortization expense and nonrecurring asset impairments (including goodwill and intangible asset impairments) may be useful for investors to consider because it represents the estimated attrition of our acquired customer base and the diminishing value of trade names, product rights, licenses, or, in the case of goodwill, other assets that are not individually identified and separately recognized under
U.S. GAAP, or, in the case of nonrecurring asset impairments, the impact of unusual and nonrecurring events affecting the estimated recoverability of existing assets. We do not believe these charges necessarily reflect the current and ongoing cash charges related to our operating cost structure. - Depreciation may be useful for investors to consider because it generally represents the wear and tear on our property and equipment used in our operations. We do not believe these charges necessarily reflect the current and ongoing cash charges related to our operating cost structure.
- Share-based compensation may be useful for investors to consider because it represents a portion of the total compensation to management and the board of directors. We do not believe these charges necessarily reflect the current and ongoing cash charges related to our operating cost structure.
- The amount of interest expense and other, as well as debt extinguishment gains or losses, we incur may be useful for investors to consider and may result in current cash inflows or outflows. However, we do not consider the amount of interest expense and other and debt extinguishment gains or losses to be a representative component of the day-to-day operating performance of our business.
- Income tax expense may be useful for investors to consider because it generally represents the taxes which may be payable for the period and the change in deferred income taxes during the period and may reduce the amount of funds otherwise available for use in our business. However, we do not consider the amount of income tax expense to be a representative component of the day-to-day operating performance of our business.
Management compensates for the above-described limitations of using non-GAAP measures by using a non-GAAP measure only to supplement our GAAP results and to provide additional information that is useful to gain an understanding of the factors and trends affecting our business.
The following table shows our Adjusted EBITDA and Adjusted EBITDAP reconciled to our income (loss) from continuing operations for the indicated periods (in thousands):
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
Adjusted Earnings before Interest, Taxes, Depreciation, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Income (loss) from continuing operations |
|
$ |
5,461 |
|
|
$ |
(24,166) |
|
|
$ |
(34,467) |
|
|
$ |
72,417 |
|
Add-back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax expense |
|
|
3,775 |
|
|
|
691 |
|
|
|
7,123 |
|
|
|
3,360 |
|
Interest expense and other, net |
|
|
28,667 |
|
|
|
31,949 |
|
|
|
123,021 |
|
|
|
115,211 |
|
Debt modification and extinguishment (gain) loss |
|
|
6,819 |
|
|
|
31,603 |
|
|
|
1,694 |
|
|
|
33,044 |
|
Warrant remeasurement gain |
|
|
— |
|
|
|
(3,146) |
|
|
|
(8,545) |
|
|
|
(8,683) |
|
Legal contingencies loss |
|
|
6,000 |
|
|
|
— |
|
|
|
7,338 |
|
|
|
— |
|
Consideration payable to customer related to divestiture |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17,185 |
|
Shareholder cooperation expenses |
|
|
— |
|
|
|
— |
|
|
|
1,905 |
|
|
|
— |
|
Loss (gain) on sales of assets and businesses, net |
|
|
— |
|
|
|
1,640 |
|
|
|
12,208 |
|
|
|
(101,523) |
|
Share-based compensation |
|
|
657 |
|
|
|
2,493 |
|
|
|
9,445 |
|
|
|
8,913 |
|
Amortization of acquired contract liabilities |
|
|
(756) |
|
|
|
(668) |
|
|
|
(2,721) |
|
|
|
(2,500) |
|
Depreciation and amortization |
|
|
7,563 |
|
|
|
7,786 |
|
|
|
29,625 |
|
|
|
32,259 |
|
Adjusted Earnings before Interest, Taxes, Depreciation |
|
$ |
58,186 |
|
|
$ |
48,182 |
|
|
$ |
146,626 |
|
|
$ |
169,683 |
|
Non-service defined benefit expense (income) (excluding settlements) |
|
|
88 |
|
|
|
6,061 |
|
|
|
(2,372) |
|
|
|
(19,664) |
|
Adjusted Earnings before Interest, Taxes, Depreciation |
|
$ |
58,274 |
|
|
$ |
54,243 |
|
|
$ |
144,254 |
|
|
$ |
150,019 |
|
Net sales |
|
$ |
358,587 |
|
|
$ |
325,458 |
|
|
$ |
1,192,043 |
|
|
$ |
1,130,562 |
|
Income (loss) from continuing operations margin |
|
|
1.5 |
% |
|
|
(7.4) |
% |
|
|
(2.9) |
% |
|
|
6.4 |
% |
Adjusted EBITDAP margin |
|
|
16.3 |
% |
|
|
16.7 |
% |
|
|
12.1 |
% |
|
|
13.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Continued)
FINANCIAL DATA (UNAUDITED)
(dollars in thousands)
Non-GAAP Financial Measure Disclosures (continued)
Adjusted income from continuing operations, before income taxes, adjusted income from continuing operations and adjusted income from continuing operations per diluted share, before non-recurring costs have been provided for consistency and comparability. These measures should not be considered in isolation or as alternatives to income from continuing operations before income taxes, income from continuing operations and income from continuing operations per diluted share presented in accordance with GAAP. The following tables reconcile income from continuing operations before income taxes, income from continuing operations, and income from continuing operations per diluted share, before non-recurring costs.
|
|
Three Months Ended |
|
|||||||||
(amounts in '000s, except per share amounts) |
|
Pre-Tax |
|
|
After-Tax |
|
|
Diluted EPS |
|
|||
Income from continuing operations - GAAP |
|
$ |
9,236 |
|
|
$ |
5,461 |
|
|
$ |
0.07 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|||
Legal contingencies loss |
|
|
6,000 |
|
|
|
6,000 |
|
|
|
0.08 |
|
Restructuring costs |
|
|
4,985 |
|
|
|
4,985 |
|
|
|
0.06 |
|
Debt extinguishment loss |
|
|
6,819 |
|
|
|
6,819 |
|
|
|
0.09 |
|
Adjusted income from continuing operations - non-GAAP* |
|
$ |
27,040 |
|
|
$ |
23,265 |
|
|
$ |
0.31 |
|
|
||||||||||||
|
|
Year Ended |
|
|||||||||
|
|
Pre-Tax |
|
|
After-Tax |
|
|
Diluted EPS |
|
|||
Loss from continuing operations - GAAP |
|
$ |
(27,344) |
|
|
$ |
(34,467) |
|
|
$ |
(0.46) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|||
Loss on sale of assets and businesses, net |
|
|
12,208 |
|
|
|
12,208 |
|
|
|
0.16 |
|
Restructuring costs |
|
|
6,970 |
|
|
|
6,970 |
|
|
|
0.09 |
|
Shareholder cooperation expenses |
|
|
1,905 |
|
|
|
1,905 |
|
|
|
0.03 |
|
Debt modification and extinguishment loss |
|
|
1,694 |
|
|
|
1,694 |
|
|
|
0.02 |
|
Legal contingencies loss |
|
|
7,338 |
|
|
|
7,338 |
|
|
|
0.10 |
|
Adjusted loss from continuing operations - non-GAAP* |
|
$ |
2,771 |
|
|
$ |
(4,352) |
|
|
$ |
(0.06) |
|
*Difference due to rounding. |
|
|
|
|
|
|
|
|
|
(Continued)
FINANCIAL DATA (UNAUDITED)
|
||||||||||||
|
||||||||||||
|
|
Three Months Ended |
|
|||||||||
|
|
Pre-Tax |
|
|
After-Tax |
|
|
Diluted EPS |
|
|||
Loss from continuing operations - GAAP |
|
$ |
(23,475) |
|
|
$ |
(24,166) |
|
|
$ |
(0.37) |
|
|
|
|
|
|
|
|
|
|
|
|||
Adjustments: |
|
|
|
|
|
|
|
|
|
|||
Warrant related items |
|
|
2,083 |
|
|
|
2,083 |
|
|
|
0.12 |
|
Loss on sale of assets and businesses, net |
|
|
1,640 |
|
|
|
1,640 |
|
|
|
0.02 |
|
Restructuring costs |
|
|
2,098 |
|
|
|
2,098 |
|
|
|
0.02 |
|
Debt modification and extinguishment loss |
|
|
31,603 |
|
|
|
31,603 |
|
|
|
0.36 |
|
Spokane pension withdrawal |
|
|
14,644 |
|
|
|
14,644 |
|
|
|
0.17 |
|
Adjusted income from continuing operations - non-GAAP |
|
$ |
28,593 |
|
|
$ |
27,902 |
|
|
$ |
0.32 |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Year Ended |
|
|||||||||
|
|
Pre-Tax |
|
|
After-Tax |
|
|
Diluted EPS |
|
|||
Income from continuing operations - GAAP |
|
$ |
75,777 |
|
|
$ |
72,417 |
|
|
|
|
|
GAAP EPS Numerator Adjustments: |
|
|
|
|
|
|
|
|
|
|||
Warrant related items |
|
$ |
(3,626) |
|
|
$ |
(3,626) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
GAAP EPS Numerator: |
|
$ |
72,151 |
|
|
$ |
68,791 |
|
|
$ |
0.96 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|||
Gain on sale of assets and businesses, net |
|
|
(101,523) |
|
|
|
(101,523) |
|
|
|
(1.42) |
|
Restructuring costs |
|
|
3,172 |
|
|
|
3,172 |
|
|
|
0.04 |
|
Consideration payable to customer related to divestiture^ |
|
|
17,185 |
|
|
|
17,185 |
|
|
|
0.24 |
|
Debt modification and extinguishment loss |
|
|
33,044 |
|
|
|
33,044 |
|
|
|
0.46 |
|
Spokane pension withdrawal |
|
|
14,644 |
|
|
|
14,644 |
|
|
|
0.20 |
|
Warrant issuance costs |
|
|
1,113 |
|
|
|
1,113 |
|
|
|
0.02 |
|
Adjusted income from continuing operations - non-GAAP* |
|
$ |
39,786 |
|
|
$ |
36,426 |
|
|
$ |
0.51 |
|
*Difference due to rounding. |
|
|
|
|
|
|
|
|
|
|||
^Recorded in net sales. |
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measure Disclosures (continued)
Adjusted Operating Income is defined as GAAP Operating Income, less expenses/gains associated with the Company's transformation, such as restructuring expenses, gains/losses on divestitures, impairments of goodwill and other assets. Management believes that this is useful in evaluating operating performance, but this measure should not be used in isolation. The following table reconciles our Operating income to Adjusted Operating income as noted above.
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Operating income - GAAP |
|
$ |
44,810 |
|
|
$ |
42,992 |
|
|
$ |
86,454 |
|
|
$ |
195,685 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loss (gain) on sale of assets and businesses, net |
|
|
— |
|
|
|
1,640 |
|
|
|
12,208 |
|
|
|
(101,523) |
|
Legal contingencies loss |
|
|
6,000 |
|
|
|
— |
|
|
|
7,338 |
|
|
|
— |
|
Restructuring costs (cash based) |
|
|
4,985 |
|
|
|
2,098 |
|
|
|
6,970 |
|
|
|
3,172 |
|
Shareholder cooperation expenses |
|
|
— |
|
|
|
— |
|
|
|
1,905 |
|
|
|
— |
|
Consideration payable to customer related to divestiture |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17,185 |
|
Adjusted operating income - non-GAAP |
|
$ |
55,795 |
|
|
$ |
46,730 |
|
|
$ |
114,875 |
|
|
$ |
114,519 |
|
Adjusted operating margin - non-GAAP |
|
|
15.6 |
% |
|
|
14.4 |
% |
|
|
9.6 |
% |
|
|
10.0 |
% |
(Continued)
FINANCIAL DATA (UNAUDITED) |
|||
|
|||
|
|
Fiscal 2025 |
|
($ in millions) |
|
Guidance |
|
Income from continuing operations, before taxes |
|
|
|
Adjustments: |
|
|
|
Interest expense and other, net |
|
|
|
Non-service defined benefit expense |
|
|
|
Depreciation & Amortization |
|
|
|
Amortization of acquired contract liabilities |
|
~( |
|
Share-based compensation |
|
|
|
Adjusted EBITDAP - non-GAAP |
|
|
|
Cash provided by operations, is provided for consistency and comparability. We also use free cash flow as a key factor in planning for and consideration of strategic acquisitions and the repayment of debt. This measure should not be considered in isolation, as a measure of residual cash flow available for discretionary purposes, or as an alternative to operating results presented in accordance with GAAP. The following table reconciles cash provided by operations to free cash flow.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
Fiscal Year Ended |
|
|
Fiscal 2025 |
||||||||||
$ in millions |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
||||
Cash provided by (used in) operating activities |
|
$ |
77.7 |
|
|
$ |
60.0 |
|
|
$ |
9.4 |
|
|
$ |
(52.3) |
|
|
$ 30.0 - $ 50.0 |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Capital expenditures |
|
|
(5.6) |
|
|
|
(8.3) |
|
|
|
(21.8) |
|
|
|
(20.7) |
|
|
|
Free cash flow (use)* |
|
$ |
72.1 |
|
|
$ |
51.8 |
|
|
$ |
(12.4) |
|
|
$ |
(72.9) |
|
|
|
* Differences due to rounding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original content:https://www.prnewswire.com/news-releases/triumph-reports-fourth-quarter-fiscal-2024-results-302153570.html
SOURCE